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Chicago, IL – October 6, 2025 – Today, Zacks Equity Research discusses Deckers Outdoor Corp. DECK, Boot Barn Holdings, Inc. BOOT, Zumiez Inc. ZUMZ and Genesco Inc. GCO.
Link: https://www.zacks.com/commentary/2761288/4-best-retail-apparel-shoe-stocks-you-should-buy-now
The Retail - Apparel And Shoes industry continues to demonstrate resilience despite ongoing macroeconomic challenges, supported by evolving consumer preferences and strong brand adaptability. A rising focus on lifestyle-driven purchases, athleisure, and fashion-forward essentials is fueling demand, particularly among younger demographics and digitally engaged shoppers.
Retailers are also capitalizing on e-commerce platforms, omnichannel capabilities, and personalized marketing strategies to capture market share and deepen customer loyalty. At the same time, supply chain efficiencies, disciplined inventory management, and strategic pricing actions are helping to cushion cost pressures. International expansion, innovative product launches, and sustainability-focused initiatives further provide long-term growth levers.
Against this backdrop, companies such as Deckers Outdoor Corp., Boot Barn Holdings, Inc., Zumiez Inc. and Genesco Inc. stand out as attractive investment opportunities. These players combine disciplined execution with digital strength and expanding customer bases, positioning them well to benefit from shifting consumer dynamics and industry tailwinds.
The Retail - Apparel & Shoes industry encompasses the manufacturing, distribution and retailing of clothing, footwear and accessories. The industry is influenced by various factors, including fashion trends, consumer spending habits, economic dynamics and seasonal variations. Companies within the industry range from global apparel giants to domestic brands, each targeting specific market segments.
The industry presents both opportunities and challenges. On one hand, it demands continuous product innovation, brand distinctiveness and effective marketing to attract customers. On the other hand, fierce competition and price sensitivity pose hurdles. Technological advancements and the rise of online retail have revolutionized the industry, with consumers increasingly seeking convenience and personalized shopping experiences.
Consumers' Willingness to Spend: The Retail – Apparel & Shoes industry is closely tied to consumers' purchasing power. U.S. retail sales saw a solid 0.6% increase in August, according to the U.S. Department of Commerce, signaling resilient consumer spending. Notably, sales at clothing and clothing accessories stores rose 1% month over month.
Supporting this trend, the Federal Reserve's recent interest rate cuts have lowered borrowing costs, giving consumers more flexibility to spend on discretionary items and fueling demand across the sector. Moreover, with the holiday season approaching, retailers can expect a further boost in demand as shoppers increase spending on gifts, fashion, and seasonal apparel, creating an opportunity for stronger sales and revenue growth heading into year-end.
Brand Strength & Capital Discipline Fuel Growth: Industry players are increasingly focused on deepening consumer engagement through innovative products, personalized experiences, and enhanced digital and data analytics capabilities. New styles, customization options, and refreshed store environments are helping attract and retain shoppers.
Strengthening brand portfolios through targeted marketing, strategic acquisitions, innovation, and partnerships continues to support growth. At the same time, companies are improving financial discipline by managing inventory efficiently, closing underperforming stores, optimizing capital expenditures, and boosting operational efficiency.
Diversification & Digitization Drive Expansion: As consumer shopping behaviors evolve, companies are integrating in-store and online operations through omnichannel capabilities. Investments in loyalty programs, faster delivery options (curbside pickup, doorstep delivery, BOPIS), store renovations, improved checkout processes, and mobile point-of-sale systems are helping retailers stay relevant. Aligning with digital trends, companies are replenishing shelves with popular merchandise and continuing to expand investments in technology to capture a growing segment of online and hybrid shoppers.
Pressure on Margins to Linger: Competition remains intense, with retailers battling for market share through pricing, product assortment, and speed to market. While investments in digital infrastructure, delivery capabilities, and marketing support sales growth, they also add significant costs. Increased spending on store operations and advertising continues to weigh on margins. Companies are actively mitigating these pressures by streamlining operations, optimizing supply chains, and implementing strategic pricing strategies to balance growth and profitability.
The Zacks Retail - Apparel and Shoes industry is a group within the broader Zacks Retail – Wholesale sector. The industry currently carries a Zacks Industry Rank #80, placing it in the top 33% of more than 250 Zacks industries.
The group's Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates encouraging 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 2 to 1. The industry's position in the top 50% of the Zacks-ranked industries is a result of a positive earnings outlook for the constituent companies in aggregate.
Looking at the aggregate earnings estimate revisions, it appears that analysts are gaining confidence in this group's earnings growth potential. Since the beginning of September 2025, the industry's earnings estimate has risen roughly 0.7%.
Before we present a few stocks that you may want to consider for your portfolio, let's take a look at the industry's recent stock-market performance and valuation picture.
The Zacks Retail - Apparel and Shoes industry has underperformed both the broader Zacks Retail-Wholesale sector and the Zacks S&P 500 composite over the past year.
The industry has declined 2.9% over this period against the S&P 500's growth of 18.9%. Meanwhile, the broader sector has risen 12.7%.
Based on the forward 12-month price-to-earnings (P/E), which is commonly used for valuing retail stocks, the industry is currently trading at 17.9X compared with the S&P 500's 23.36X and the sector's 24.82X.
Over the last five years, the industry has traded as high as 24.64X and as low as 10.42X, with the median being 16.78X.
Genesco: Genesco is benefiting from strong momentum at Journeys, where a refreshed product mix, vibrant brand storytelling, and upgraded store formats are driving share gains among style-conscious teens. Johnston & Murphy is also regaining momentum as it shifts into a broader lifestyle brand with new product innovation and brand repositioning efforts. Strategic investments in loyalty programs, store remodels, and new partnerships further bolster the portfolio. With a focused approach on product, brand identity, and customer experience, Genesco is positioning itself for sustainable growth and long-term market leadership.
The Zacks Consensus Estimate for Genesco's current financial-year sales and EPS suggests growth of 3.7% and 71.3%, respectively, from the year-ago period. This footwear company, with more than 1,250 retail stores and branded e-commerce websites, has an average trailing four-quarter earnings surprise of 28.1%. Shares of this Zacks Rank #1 (Strong Buy) company have risen 6.3% in the past year. You can see the complete list of today's Zacks #1 Rank stocks here.
Zumiez: Zumiez continues to demonstrate resilience with consistent comparable sales growth, supported by a strong North American business and an expanding private label portfolio that enhances margins. Its ability to introduce new and exclusive brands while deepening customer connections across digital and physical channels underscores its competitive differentiation. With a disciplined financial foundation and proven adaptability across market cycles, Zumiez is well-positioned to capitalize on consumer demand and sustain profitable growth going forward.
This leading specialty retailer of apparel, footwear, equipment, and accessories for young men and women has an average trailing four-quarter earnings surprise of 35.4%. The Zacks Consensus Estimate for Zumiez's current financial-year sales and EPS suggests growth of 3.4% and 566.7%, respectively, from the year-ago period. Shares of this Zacks Rank #1 company have plunged 10.7% in the past year.
Boot Barn Holdings: Boot Barn's growth trajectory is fueled by strong new store performance, broad-based category strength, and accelerating omnichannel momentum. The company's focus on expanding exclusive brands, driving merchandise margin improvements, and leveraging AI-powered retail innovation enhances both profitability and customer engagement. With significant white space for expansion and a clear path to doubling its store base, Boot Barn is positioned to maintain leadership in western and work lifestyle retail while compounding long-term shareholder value.
This leading lifestyle retailer of western and work-related footwear, apparel, and accessories delivered a trailing four-quarter earnings surprise of 3.7%, on average. The Zacks Consensus Estimate for Boot Barn's current financial-year sales and EPS suggests growth of 13.3% and 12.2%, respectively, from the year-ago period. Shares of this Zacks Rank #2 (Buy) company have risen 2.5% in the past year.
Deckers: Deckers continues to deliver standout performance through its powerhouse brands HOKA and UGG, both gaining market share globally while maintaining premium brand positioning. HOKA's innovation-led growth and international expansion, combined with UGG's year-round relevance and successful product diversification, highlight the strength of its portfolio. With disciplined execution, strong financial flexibility, and brand-led strategies, Deckers is strategically placed to sustain global growth and reinforce its leadership in the premium footwear and lifestyle market.
This global leader in designing, marketing, and distributing innovative footwear, apparel, and accessories has an average trailing four-quarter earnings surprise of 39.5%. The Zacks Consensus Estimate for Deckers' current financial-year sales suggests growth of 9% from the year-ago period. Shares of this Zacks Rank #2 company have fallen 37.8% in the past year.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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This article originally published on Zacks Investment Research (zacks.com).
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