5 Top-Ranked Retail Apparel and Shoe Stocks for a Stable Portfolio

The Retail - Apparel and Shoes industry entered 2026 on a relatively stable note despite a volatile macroeconomic environment, with demand increasingly shaped by more selective, value-conscious consumer and faster-moving trend cycles.

The Zacks-defined Retail – Apparel and Shoes industry is currently within the top 15% of the Zacks Industry Rank. Since it is ranked in the top half of the Zacks Ranked Industries, we expect it to outperform the market over the next three to six months.

Here, we recommend five apparel and shoes stocks with top Zacks Rank for a stable portfolio. These are: Deckers Outdoor Corp. DECK, On Holding AG ONON, Tapestry Inc. TPR, American Eagle Outfitters Inc. AEO and FIGS Inc. FIGS. Each of our picks currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The chart below shows the price performance of our five picks year to date.

Deckers Outdoor Corp.

Deckers Outdoor continues to demonstrate solid momentum, driven by strong execution across its HOKA and UGG brands. HOKA remains the key growth engine, supported by expanding global demand, balanced channel performance and continued market share gains, while UGG is delivering steady growth off a larger base through disciplined marketplace management and brand relevance. 

DECK’s international markets are accelerating growth and diversification, strengthening long-term earnings visibility beyond the United States. At the same time, pricing discipline, cost controls and supply-chain efficiencies are supporting margin resilience despite external pressures. 

With a strong balance sheet, ongoing share repurchases and continued investment in product innovation and brand building, DECK is well-positioned to sustain growth, and create long-term shareholder value.

Deckers Outdoor has an expected revenue and earnings growth rate of 8.6% and 8.7%, respectively, for the current fiscal year (ending March 2026). The Zacks Consensus Estimate for the current year’s earnings has improved 0.7% over the last seven days.

On Holding AG

On Holding provides footwear and sports apparel products including ultralight and stretchable fabrics and accessories. ONON offers its products through independent retailers and distributors, online and stores.

On Holding has an expected revenue and earnings growth rate of 21% and 82.8%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 0.6% over the last 60 days.

Tapestry Inc.

Tapestry continues to strengthen its position as a leading global house of brands, driven by the strong performance of Coach. The core brand is effectively attracting Gen Z consumers, achieving growth in both unit volume and pricing power. This demand, along with a more focused portfolio after the strategic divestiture of lower-margin segments, is fueling TPR’s gross margin expansion and strong operating leverage. 

TPR’s adjusted gross margin rose 110 basis points in the second quarter of fiscal 2026. International markets, especially Greater China and Europe, are providing further opportunities for sustained growth. 

Supported by a strong balance sheet and higher capital returns, TPR is effectively resetting its earnings base. Management has raised its fiscal 2026 view, projecting revenues above $7.75 billion and EPS between $6.40 and $6.45.

Tapestry has an expected revenue and earnings growth rate of 9.6% and 23.7%, respectively, for the current year (ending June 2026). The Zacks Consensus Estimate for the current year’s earnings has improved 1.6% over the last seven days.

American Eagle Outfitters Inc.

American Eagle Outfitters has been gaining from brand strength and solid demand driven by products that resonated with customers. A better-than-expected holiday season and broad-based demand across brands and channels have prompted AEO to raise its operating income view, reinforcing confidence in its brand strength and execution. 

AEO’s brand-level performance was a key highlight. Comparable sales also benefited from healthy consumer engagement through the peak holiday period. Performance was balanced across channels, with both stores and digital contributing to the upside. 

Sustained demand for AEO’s core assortments and successful merchandising strategies have been acting as a tailwind. AEO’s investments in digital, automation, and supply chain diversification, coupled with Aerie’s strong momentum, category expansion, fresh assortments, and cost discipline, are driving growth.

American Eagle Outfitters has an expected revenue and earnings growth rate of 3.4% and 23.1%, respectively, for the current year (ending January 2027). The Zacks Consensus Estimate for the current year’s earnings has improved 3% over the last 30 days.

FIGS Inc.

FIGS is a direct-to-consumer healthcare apparel and lifestyle brand. FIGS creates technically advanced apparel and products for healthcare professionals. FIGS markets and sells its products to healthcare professionals through its direct-to-consumer digital platform comprising a website, mobile app, and B2B business, and retail stores.

FIGS has an expected revenue and earnings growth rate of 5.4% and 1.5%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings remained flat over the last 30 days.

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

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