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 consumers and faster-moving trends.
This space is benefiting from strong premiumization and digital momentum. Consumers are increasingly gravitating toward performance-driven, high-quality products that blend comfort, durability and style, supporting higher price points and stronger brand loyalty.
The Zacks-defined Retail – Apparel and Shoes industry is currently within the top 30% 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 a favorable Zacks Rank for a stable portfolio. These are: Deckers Outdoor Corp. DECK, Abercrombie & Fitch Co. ANF, Levi Strauss & Co. LEVI, Tapestry Inc. TPR and Shoe Carnival Inc. SCVL. Each of our picks currently carries a Zacks Rank #2 (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 in the past month.
Image Source: Zacks Investment Research
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 7.5% and 6.3%, respectively, for the current fiscal year (ending March 2027). The Zacks Consensus Estimate for the current fiscal year’s earnings has improved 0.6% over the last 60 days.
Abercrombie & Fitch Co.
Abercrombie & Fitch has been benefiting from momentum across its Hollister brand and regions, which has been bolstering sales. ANF marked its 13th straight quarter of sales growth, delivering record fourth-quarter and fiscal 2025 net sales, supported by broad-based momentum across regions, brands and channels.
ANF’s continued digital strength, localized merchandising strategies and contribution from new store openings and remodels have been yielding results. For the first quarter of fiscal 2026, ANF projected net sales to rise 1-3% from $1.1 billion recorded in the year-ago period. Our model expects sales to rise 3% for the first quarter and 4.5% for fiscal 2026.
Abercrombie & Fitch has an expected revenue and earnings growth rate of 4.3% and 8.6%, respectively, for the current fiscal year (ending January 2027). The Zacks Consensus Estimate for the current fiscal year’s earnings has improved 0.5% over the last 30 days.
Levi Strauss & Co.
Levi Strauss designs and markets jeans, casual wear and related accessories for men, women and children under the Levi's, Dockers, Signature by Levi Strauss & Co. and Denizen brands. LEVI’s products are sold through chain retailers, department stores, online sites and brand-dedicated retail stores and shop-in-shops.
Levi Strauss has an expected revenue and earnings growth rate of 5.2% and 11.9%, respectively, for the current fiscal year (ending November 2026). The Zacks Consensus Estimate for the current fiscal year’s earnings has improved 2.7% over the last 30 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 11.2% and 26.5%, respectively, for the current year (ending June 2026). The Zacks Consensus Estimate for the current year’s earnings has improved 3.9% over the last 60 days.
Shoe Carnival Inc.
Shoe Carnival is one of the nation's largest family footwear retailers, offering a broad assortment of moderately priced dress, casual and athletic footwear for men, women and children with emphasis on national and regional name brands. SCVL sells its products through www.shoecarnival.com and www.shoestation.com, and through a related mobile app.
SCVL has an expected revenue and earnings growth rate of -0.1% and -21.1%, respectively, for the current year (ending January 2027). The Zacks Consensus Estimate for the current year’s earnings has improved 4.9% over the last 30 days.
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Abercrombie & Fitch Company (ANF): Free Stock Analysis Report
Deckers Outdoor Corporation (DECK): Free Stock Analysis Report
Shoe Carnival, Inc. (SCVL): Free Stock Analysis Report
Tapestry, Inc. (TPR): Free Stock Analysis Report
Levi Strauss & Co. (LEVI): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).