In 2024, the overall apparel market delivered global revenue of $1.8 trillion, a roughly 3.5% increase from the previous year, with the U.S. accounting for 20% of the total market share. While the broader market showed growth, some segments, like fast fashion and luxury, faced challenges,5 even as consignment and thrift apparel saw increased spending.
Trends such as e-commerce and athletic-inspired attire are reshaping the status quo. While apparel stocks are certainly subject to cyclicality, these businesses do benefit from long-term trends in consumer spending. Apparel companies with robust omnichannel businesses and/or a unique value proposition to provide to consumers are most likely to succeed through and beyond economic slowdowns.
Clothing is a basic staple, so this isn't an industry benefiting from prevailing secular trends. The best apparel companies are much more than just clothing manufacturers.
Apparel stocks to watch in 2026
Here are the top apparel stocks to buy in 2026 and beyond:
| Name and ticker | Market cap | Dividend yield | Industry |
|---|---|---|---|
| Nike (NYSE:NKE) | $96.6 billion | 2.47% | Textiles, Apparel and Luxury Goods |
| Lululemon Athletica Inc. (NASDAQ:LULU) | $24.9 billion | 0.00% | Textiles, Apparel and Luxury Goods |
| Stitch Fix (NASDAQ:SFIX) | $683.1 million | 0.00% | Specialty Retail |
| TJX Companies (NYSE:TJX) | $175.7 billion | 1.04% | Specialty Retail |
| Target (NYSE:TGT) | $48.1 billion | 4.25% | Food and Staples Retailing |
1. Nike
Nike (NKE +1.01%) needs little introduction. The global footwear and apparel leader has been a major part of sports and pop culture for decades and remains a household name in fashion, athletic gear, and everyday street clothing. While Nike's growth has been resilient through the decades, the last few years have brought challenges for the business.
NYSE: NKE
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NASDAQ: LULU
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Lululemon continues to innovate its product offerings, expanding beyond yoga into categories like running and training and offering footwear. The company is aggressively expanding internationally, particularly in China and Europe, and is also targeting significant growth in men's and digital channels.
Lululemon could be an intriguing way for investors to capitalize on the athleisure boom worldwide, as well as the growth of the fitness industry.
3. Stitch Fix
Stitch Fix (SFIX -2.16%) has made a name for itself in the online personal styling space. Founded in 2011, this company has quickly grown to be a leader in online retail.
NASDAQ: SFIX
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It uses machine learning on information collected from customers to help stylists curate personalized clothing and accessory options. Customers keep what they like and send back what they don't want, giving Stitch Fix's artificial intelligence (AI) software algorithms more data to make the service even better.
The company has branched out and now offers its customers the ability to shop and buy from its clothing collections directly, rather than just receive curated items. The service, called Stitch Fix Freestyle, could expand on the company's appeal to consumers.
NYSE: TJX
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TJX operates under a unique off-price retail model, focusing on selling brand-name and designer merchandise at deep discounts. It sources its merchandise from various channels, including department store cancellations, manufacturer overstocks, and end-of-season closeouts, and that constantly rotating inventory keeps customers engaged.
TJX cultivates strong relationships with vendors, often purchasing incomplete assortments of stock and not requiring return privileges. This allows them to acquire merchandise at attractive prices and enables a streamlined supply chain that ensures stores are well stocked with in-demand merchandise. TJX stock is another long-term value play among apparel stocks, and it pays a decent dividend to boot.
5. Target
Yes, big-box store Target (TGT -0.67%) is an apparel company. In fact, it's a fast-growing clothier. Consumers regularly rely on the retail chain for everyday items, including clothes. The last few years have brought some challenges for Target, including headwinds from decreases in discretionary consumer spending and inventory shrinkage due to increases in retail theft.
NYSE: TGT
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Target stores are widely accessible, with most of the U.S. population living within a few miles of one. Shoppers can find everything they need in just a single trip (or click), and the company's shipping and delivery operations are a further differentiator.
When the trajectory of consumer spending recovers, Target could be well positioned to benefit. Despite its struggles the last few years, Target has maintained its commitment to its dividend throughout that time and clocked 54 years of consecutive dividend increases in 2025, making it part of an elite group of companies known as Dividend Kings.
What to consider before investing in apparel stocks
The apparel industry isn't entirely discretionary, but it's still highly sensitive to overall economic conditions, consumer confidence, and purchasing power. Economic downturns or high inflation can quickly reduce demand for nonessential clothing items, which impacts sales and profits. It's important to be comfortable with this level of cyclicality before you put your capital to work in apparel stocks.
In a highly competitive market, a strong brand identity and customer loyalty are vital for sustained success. Brands that resonate with specific demographics or niche markets can often command higher price points and enjoy more stable demand than general merchandisers, and this can translate to durable gains for retail investors.
A seamless integration of online and in-store operations is essential for an apparel company to meet evolving consumer shopping habits, and a subpar shopping experience can quickly erode financial growth. The quality of the company's management team is a key qualitative factor to consider, particularly their ability to adapt to changing industry dynamics, invest in innovation, and maintain operational efficiency.
As with any stock investment, analyze a company's core financial metrics, such as gross margins, revenue, earnings, and debt levels, to assess its financial health and determine whether the business is a good fit for your personal portfolio.
Should you add apparel stocks to your portfolio?
The apparel industry isn't the most exciting one out there. Still, it's being disrupted like never before by digital commerce trends and a shopping populace that increasingly favors athleisure and athletic-inspired attire.
- The apparel industry encompasses a wide variety of segments, including luxury, activewear, and fast fashion, allowing for diversification within the sector if you're an investor who wants to put money to work in this space.
- People consistently buy clothes, even in challenging economic times, lending some resilience to apparel companies even during market downturns.
- Driven by evolving fashion trends and increasing global consumer demand, the industry offers growth opportunities for companies that can maintain innovative brands, which can translate to gains for long-term investors.
- The growing popularity of online shopping provides a significant opportunity for apparel companies with a strong digital presence and strategies.
Investors interested in buying apparel stocks should focus on the companies with strong financials and durable opportunities for long-term growth.
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How to invest in apparel stocks
If you want to invest in shares of any apparel stock, here are the steps you need to follow.
- Open your brokerage app: Log in to your brokerage account where you handle your investments.
- Search for the stock: Enter the ticker or company name into the search bar to bring up the stock's trading page.
- Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.
- Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
- Submit your order: Confirm the details and submit your buy order.
- Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly
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