4 Textile-Apparel Stocks to Watch as Industry Trends Strengthen

Companies in the Zacks

industry are benefiting from improving store traffic and continued digital growth. To enhance customer engagement and meet evolving consumer expectations, industry players are investing in e-commerce platforms, mobile applications, omnichannel fulfillment and AI-driven tools. These initiatives are helping companies integrate physical and digital channels, improve convenience and product discovery, and boost operational efficiency across the customer journey.

Textile-apparel companies are also strengthening brand equity through product innovation, marketing initiatives, licensing agreements, strategic partnerships and portfolio expansion. However, cost pressures, tariffs and geopolitical uncertainties remain challenges, prompting companies to emphasize sourcing efficiencies, supply-chain diversification, inventory discipline and cost controls. These trends position Ralph Lauren Corporation

, Crocs, Inc.

, Columbia Sportswear Company

and G-III Apparel Group, Ltd.

to capitalize on favorable industry dynamics.

About the Industry

The Zacks Textile - Apparel industry includes companies and lifestyle brands that manufacture, design, distribute, source, market and sell apparel, footwear and accessories for men and women. These include fashion apparel like dresses, pants, skirts, shorts, shirts, jackets, blouses and knitwear, and intimate apparel like underwear and shapewear. The industry also comprises companies offering apparel for a healthy lifestyle and athletic activities, such as yoga, running and training. Some companies also deal with fitness-related accessories like gloves, bags, headwear and sports masks. The industry participants operate through direct-to-consumer (brick-and-mortar and online), wholesale and licensing distribution channels. Most players operate through stores and digital networks in the United States and internationally.

3 Trends Shaping the Future of the Textile-Apparel Industry

Improved Store Traffic and Strong Digital Trends: As consumers increasingly shift between physical and digital channels, textile-apparel companies are reimagining the end-to-end customer journey. Brands are prioritizing investments to enhance experiences across every touchpoint, revitalizing in-store engagement while capitalizing on the continued growth of e-commerce. This dual focus is driving upgrades to digital platforms, mobile applications and payment systems, along with tighter integration between online and offline operations. To meet rising expectations for convenience and speed, companies are expanding fulfillment capabilities and offering flexible options such as buy online, pick up in-store and curbside delivery. Meanwhile, AI adoption is enhancing customer engagement, product discovery, inventory management and operational efficiency, enabling greater agility across channels. 

Brand-Enhancing Initiatives: Textile-apparel companies continue to strengthen brand equity through diversified marketing efforts, licensing agreements, strategic acquisitions and partnerships. Product innovation remains a key growth driver, with companies introducing new collections, categories and collaborations to stay relevant and meet evolving consumer preferences. Companies are also expanding into new categories, geographies and channels to increase brand reach. Strong brands with differentiated offerings are better positioned to drive customer loyalty, expand market share and support sustainable growth.

Cost and Trade Headwinds: Textile-apparel companies continue to operate in an environment marked by cost pressures and trade-related uncertainty. Fluctuations in sourcing expenses, labor costs, transportation rates and tariffs remain areas of concern. In addition, evolving trade policies and geopolitical tensions can increase operating costs and create complexities across global supply chains, weighing on pricing and margin visibility. To navigate these challenges, companies are emphasizing supply-chain diversification, sourcing efficiencies, inventory discipline, automation and cost-control initiatives while continuing to invest in growth.

Zacks Industry Rank Indicates Bright Prospects

The Zacks Textile – Apparel industry is housed within the broader Zacks Consumer Discretionary sector. The industry currently carries a Zacks Industry Rank #93, which places it in the top 38% of more than 246 Zacks industries.

The group’s Zacks Industry Rank, which is the average of the Zacks Rank of all member stocks, indicates bright near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than two to one.

Let’s look at the industry’s performance and current valuation.

Industry vs. Broader Market

The Zacks Textile - Apparel industry has outperformed the broader Zacks Consumer Discretionary sector but lagged the S&P 500 composite over the past year.

The industry has declined 4.8% compared with the broader sector’s fall of 13.9%. Meanwhile, the S&P 500 has increased 21.3%.

One-Year Price Performance

Industry's Current Valuation

On the basis of forward 12-month price-to-earnings (P/E), commonly used for valuing consumer discretionary stocks, the industry is currently trading at 14.86X compared with the S&P 500’s 20.37X and the sector’s 16.63X.

Over the past five years, the industry has traded as high as 23.46X and as low as 12.87X, with the median being 16.98X, as the chart shows.

Price-to-Earnings Ratio (Past 5 Years)

4 Must-Watch Textile-Apparel Stocks

Crocs: The designer, developer, manufacturer, marketer and distributor of casual lifestyle footwear and accessories currently carries a Zacks Rank #2 (Buy). Crocs continues to leverage its iconic clog franchise while diversifying the product portfolio across sandals, lifestyle, recovery and other categories, alongside expanding personalization, bags and accessories. The company supports brand engagement through product innovation, collaborations, social and digital marketing, social commerce and direct-to-consumer channels, while maintaining a broad wholesale and marketplace presence. Crocs is also expanding its international footprint and strengthening presence across key global markets through localized products, digital engagement and an expanding network of stores and distribution channels. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for Crocs’ current fiscal-year EPS has remained unchanged in the past seven days at $13.85. The stock has advanced 45.8% in the past year.

Price and Consensus: CROX

Ralph Lauren: This Zacks Rank #3 (Hold) company is a leading designer, marketer and distributor of premium lifestyle products. Ralph Lauren continues to execute the “Next Great Chapter: Drive” strategy, focused on elevating and energizing the lifestyle brand, strengthening its core offerings while expanding into high-potential categories, and building consumer ecosystems in key cities worldwide. The company leverages its broad lifestyle portfolio, distinctive brand storytelling and immersive experiences to deepen consumer engagement and reinforce brand desirability. Ralph Lauren also continues to expand the direct-to-consumer, digital commerce and quality wholesale channels, while investing in technology, analytics and AI capabilities to enhance consumer experiences and support its global growth.

The Zacks Consensus Estimate for Ralph Lauren’s current fiscal-year EPS has remained unchanged in the past seven days at $18.79.  Shares of RL have rallied 29% in the past year.

Price and Consensus: RL

Columbia Sportswear: This Zacks Rank #3 company designs, sources, markets and distributes outdoor, active and lifestyle apparel, footwear and accessories through wholesale and direct-to-consumer channels. The company leverages a portfolio of outdoor brands and focuses on product innovation, performance technologies and elevated design to strengthen its competitive positioning. Its Columbia brand is guided by the multiyear ACCELERATE strategy, which emphasizes outdoor activities, performance, lifestyle versatility and footwear while leveraging the brand’s outdoor heritage. Columbia Sportswear also invests in digital and e-commerce capabilities, international markets, marketing and brand-building initiatives to enhance consumer engagement and support growth. In addition, the company continues to pursue operational efficiencies and disciplined cost management across its business.

The Zacks Consensus Estimate for Columbia Sportswear’s current fiscal-year earnings per share (EPS) has moved down 11 cents in the past seven days to $3.58. Shares of COLM have gained 8.4% in the past year.

Price and Consensus: COLM

G-III Apparel: This Zacks Rank #3 company designs, sources and markets women’s and men’s apparel and accessories through a diversified portfolio of owned and licensed brands. The company is evolving from a primarily licensed model toward a balanced global fashion portfolio, with greater emphasis on building and scaling owned brands while maintaining select licensing partnerships. G-III focuses on brand building, category expansion and international growth, leveraging its global wholesale platform and retail relationships alongside direct-to-consumer channels. The company also continues to invest in digital capabilities, data, AI and omnichannel infrastructure to enhance consumer engagement and profitability. In addition, G-III emphasizes disciplined inventory management, operational efficiency and strategic sourcing to support sustainable growth.

The Zacks Consensus Estimate for GIII’s current fiscal-year EPS has remained unchanged in the past seven days at $2.24. Shares of G-III Apparel have surged 26.5% in the past year.

Price and Consensus: GIII

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This article originally published on Zacks Investment Research (zacks.com).

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