|
|
|
|
|||||
|
|
|
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.
4 Trends Shaping the Future of the Textile - Apparel Industry
Consumer Caution & Focus on Value: The U.S. apparel industry faces a muted demand backdrop as inflation, tariffs and broader macro uncertainty weigh on discretionary spending. Consumers are leaning toward value-driven purchases, which is straining demand across the textile and apparel sector, as brands struggle to adapt to evolving priorities in a cost-conscious and unpredictable economic landscape.
Persistent Cost Pressures: The textile–apparel industry remains squeezed by elevated input and labor costs, rising SG&A from marketing and channel investments, ongoing freight and tariff volatility, and heavier reliance on promotions. Even with efforts to streamline operations and make supply chains more efficient, costs in many cases are rising faster than sales, leaving the sector under ongoing margin pressure in an already cautious consumer environment.
Digital and AI Transformation Unlocking Efficiencies: A key growth driver lies in companies’ focus on digital and AI-driven transformation. AI and digital tools are reshaping how companies forecast demand, manage inventory and connect with consumers. At the same time, omnichannel strategies — blending online convenience with in-store experiences — are becoming standard. Over time, these initiatives are expected to improve efficiency, reduce excess inventory risk and drive sustainable margin expansion, positioning the textile-apparel space for stronger long-term profitability.
Brand Strength: A key tailwind for the industry is the ongoing focus on brand strength. Apparel companies are increasingly positioning themselves not just as product makers but as lifestyle curators. Through global campaigns, design innovation and cultural alliances, brands are helping keep these brands front and center, especially with younger shoppers. That kind of connection supports premium pricing and helps soften the impact of a weaker spending environment.
Zacks Industry Rank Indicates Dim Prospects
The Zacks Textile – Apparel industry is housed within the broader Zacks Consumer Discretionary sector. The industry currently carries a Zacks Industry Rank #191, which places it in the bottom 22% of more than 250 Zacks industries.
The group’s Zacks Industry Rank, which is the average of the Zacks Rank of all member stocks, indicates drab 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.
The industry’s position in the bottom 50% of the Zacks-ranked industries is a result of a negative aggregate earnings outlook for its constituent companies. Since the beginning of June 2025, the industry’s consensus earnings estimate for the current financial year has declined 8.6%.
Let’s look at the industry’s performance and current valuation.
Industry vs. Broader Market
The Zacks Textile - Apparel industry has underperformed the broader Zacks Consumer Discretionary sector and the S&P 500 Composite over the past year.
The industry has declined 16.6% against the broader sector and the S&P 500’s growth of 23.9% and 19.8%, respectively.
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 11.25X compared with the S&P 500’s 23.36X and the sector’s 19.98X.
Over the past five years, the industry has traded as high as 29.97X and as low as 10.07X, with the median being 13.32X, as the chart shows.
4 Must-Watch Textile - Apparel Stocks
Ralph Lauren: The Zacks Rank #2 (Buy) company continues to strengthen its position as a global lifestyle brand through focus on brand elevation, product innovation and cultural relevance. The company’s investments in digital ecosystems, key city activations, and supply-chain automation are enhancing consumer engagement and operational efficiency. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
With a disciplined strategy centered on timeless design and premium brand experiences, Ralph Lauren is well-positioned to drive long-term growth and sustain its leadership in the luxury lifestyle space. The Zacks Consensus Estimate for Ralph Lauren’s current fiscal-year EPS has moved up 8.4% in the past 60 days to $14.77. Shares of RL have rallied 36.3% in the past six months.
Hanesbrands: The company engages in the design, manufacture, sourcing and sale of apparel essentials for men, women and children. It currently carries a Zacks Rank #2. Hanesbrands is executing a focused transformation centered on innovation, portfolio optimization and cost discipline. New category launches, coupled with stronger marketing and technology-driven efficiencies, are helping the company reinvigorate its core brands and broaden its consumer reach.
As Hanesbrands continues to streamline operations and invest in growth platforms, it is well-placed to enhance profitability and build a more resilient foundation for the future. The Zacks Consensus Estimate for HBI’s current financial-year EPS has risen 24.5% in the past 60 days to 66 cents. Shares of Hanesbrands have rallied 3.5% in the past six months.
Guess?: The company is advancing its global growth strategy by balancing brand elevation with accessibility, expanding into new categories and improving operational agility. Guess?’s efforts to diversify sourcing, strengthen product innovation, and enhance its store clustering model are creating a leaner and more consumer-responsive business.
With a strong focus on building brand and executing disciplined growth initiatives, the Zacks Rank #2 company is positioned to capture new opportunities and sustain momentum in a dynamic retail landscape. The Zacks Consensus Estimate for GES’ current financial-year EPS has jumped 8.1% in the past 60 days to $1.60. Shares of Guess? have surged 36.1% in the past six months.
PVH Corp.: The company is unlocking growth by revitalizing its core brands, Calvin Klein and Tommy Hilfiger, through bold marketing campaigns, global collaborations and sharper product assortments. The Zacks Rank #3 (Hold) company’s emphasis on its key product growth, digital-first engagement and international expansion is driving stronger consumer resonance across key markets. With a focus on brand strength and operational agility, PVH is strategically positioned to deliver sustained value creation and long-term shareholder returns.
The Zacks Consensus Estimate for PVH Corp.’s current fiscal EPS has increased by 2 cents over the past 60 days to 84 cents. Shares of PVH have jumped 28.8% over the past six months.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
This article originally published on Zacks Investment Research (zacks.com).
| 4 hours | |
| 5 hours | |
| 14 hours | |
| Sep-17 | |
| Sep-17 | |
| Sep-17 | |
| Sep-17 | |
| Sep-17 | |
| Sep-17 | |
| Sep-16 | |
| Sep-16 | |
| Sep-16 | |
| Sep-16 | |
| Sep-16 | |
| Sep-16 |
Join thousands of traders who make more informed decisions with our premium features. Real-time quotes, advanced visualizations, backtesting, and much more.
Learn more about FINVIZ*Elite