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Companies in the Zacks Shoes and Retail Apparel industry are doubling down on brand-building initiatives and promotional efforts to strengthen consumer mindshare. Strong demand for activewear, footwear and wellness-oriented products, underpinned by the broader shift toward healthy lifestyles, continues to drive revenue growth. Industry leaders are capitalizing on this momentum through ongoing product innovation, broader athleisure collections, and deeper investments in e-commerce and omnichannel strategies.
However, the Shoes and Retail Apparel industry faces persistent headwinds. Rising input and logistics costs, lingering supply-chain disruptions, and elevated SG&A expenses from digital and store reinvestments continue to pressure margins. These structural challenges, as well as macroeconomic factors such as currency fluctuations, geopolitical uncertainty, and shifting tax and tariff policies, add complexity. A softer consumer confidence backdrop and a competitive labor market compound the margin strain.
Looking ahead, the path to sustainable growth hinges on continued innovation, digital infrastructure upgrades and stronger consumer engagement. Well-established players, including NIKE Inc. (NKE - Free Report) , Adidas AG (ADDYY - Free Report) , Skechers U.S.A., Inc. (SKX - Free Report) , Birkenstock Holding plc (BIRK - Free Report) and Wolverine World Wide, Inc. (WWW - Free Report) , are strategically positioned to navigate these challenges and capture long-term opportunities.
About the Industry
The Zacks Shoes and Retail Apparel industry comprises companies that design, source and market clothing, footwear and accessories for men, women and children under various brand names. Product offerings of the companies mostly include athletic and casual footwear, fashion apparel and activewear, sports equipment, bags, balls, and other sports and fashion accessories. The companies showcase their products through their branded outlets and websites. Some companies distribute products via other retail stores, such as national chains, online retailers, sporting goods stores, department stores, mass merchandisers, independent retailers and catalogs.
A Look at What's Shaping the Shoes & Retail Apparel Industry's Future
Consumer Demand Trends: Athletic and athleisure brands continue to ride the wave of strong consumer demand, a trend projected to hold steady through 2025. From footwear and yoga wear to jackets and running gear, the category benefits from a growing appetite for both performance and style. The rising influence of fashion in everyday wear is further fueling the demand for innovative apparel and footwear across the United States. To capture this momentum, industry players are leaning on product innovation, targeted marketing, store expansion and e-commerce growth. The health and wellness movement is also shaping buying patterns, with footwear brands expanding into versatile, multi-functional designs that balance performance, comfort and style, making them especially popular among consumers.
E-Commerce Investments: Digital channels remain a major growth engine for the athleisure market. Brands are expanding their reach through websites, social media and digital platforms, catering to consumers who increasingly shop from home. With athletic-inspired apparel gaining traction online, companies that scale their product offerings and strengthen e-commerce capabilities are best positioned for long-term growth. Investments in faster delivery, supply-chain efficiency and fulfillment enhancements are further sharpening competitive edges. At the same time, physical stores are being reimagined through renovations, improved checkout experiences and mobile point-of-sale options, creating a seamless omnichannel journey. These initiatives, across both online and offline touchpoints, are expected to drive more substantial traffic and sustained sales growth.
Cost Headwinds: Industry players continue to wrestle with elevated costs, pressured by both internal reinvestments and external macro forces. Margin pressures stem from persistent commodity price inflation, supply-chain bottlenecks and higher logistics expenses, with transportation costs expected to remain a near-term drag. At the same time, stepped-up spending on marketing, digital platforms and store upgrades is pushing SG&A expenses higher. To sustain brand visibility and consumer engagement, companies are channeling more into promotional campaigns and tech-driven initiatives. Layered onto these structural cost challenges is a backdrop of economic uncertainty, from geopolitical tensions and trade tariffs to currency volatility and shifting tax policies. Weakening consumer sentiment and tight labor markets complicate the operating environment, intensifying pressure on profitability across the sector.
Zacks Industry Rank Indicates Bright Prospects
The Zacks Shoes and Retail Apparel Industry is a 10-stock group within the broader Zacks Consumer Discretionary sector. The industry currently carries a Zacks Industry Rank #58, which places it in the top 24% 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 bright prospects for the near term. 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 positioning in the top 50% of the Zacks-ranked industries is the result of a positive earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are gradually gaining confidence in this group’s earnings growth potential.
Before we present a few stocks that you may want to consider for your portfolio, let us look at the industry’s recent stock market performance and valuation picture.
Industry vs. Sector
The Zacks Shoes and Retail Apparel industry has underperformed the sector and the S&P 500 in the past year.
Stocks in the industry have collectively declined 6.4% in the past year. Meanwhile, the Zacks Consumer Discretionary sector and the Zacks S&P 500 composite have risen 28.1% and 18.3%, respectively.
1-Year Price Performance
Shoes & Retail Apparel Industry's 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 28.96X compared with the S&P 500’s 23.02X and the sector’s 20.24X.
Over the last five years, the industry traded as high as 37.18X and as low as 20.15X, with a median of 27.18X, as the chart below shows.
Price-to-Earnings Ratio (Past 5 Years)
5 Shoes & Retail Apparel Stocks to Watch
Skechers: This Manhattan Beach, CA-based company designs, develops, markets and distributes footwear for men, women and children in the United States and overseas under the SKECHERS name, as well as several unique brand names. Skechers is actively leveraging a multi-brand approach to diversify its portfolio, particularly through comfort-driven footwear, targeting a broad consumer base. Strategic investments are strengthening its infrastructure, including e-commerce and retail, aligning with its omnichannel expansion and DTC growth.
Skechers' international business operations have been a pivotal driver of its overall growth trajectory. SKX has a trailing four-quarter earnings surprise of 12%, on average. The Zacks Consensus Estimate for the company’s 2025 sales indicates growth of 8.2% from the year-ago quarter’s reported figure. The consensus estimate for SKX’s 2025 EPS has increased 1.9% in the past 30 days. Shares of this Zacks Rank #1 (Strong Buy) company have declined 4.8% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
Price & Consensus: SKX
Wolverine: The company is engaged in designing, manufacturing and distributing a wide variety of casual and active apparel and footwear. It also manufactures children’s footwear and specially designed boots and accessories for industrial purposes. Wolverine’s focus on brand structure, increasing efficiency by removing costs, strategic review of its portfolio, improving working capital and lowering leverage bode well. The company continues to focus on strengthening its DTC business. Speed-to-market initiatives, deployment of digital product development tools, expansion of e-commerce platforms and frequent product introductions are steadily contributing to Wolverine’s performance.
The Zacks Consensus Estimate for WWW’s 2025 sales and earnings suggests growth of 6.5% and 46.2%, respectively, from the year-ago quarter’s reported figures. The consensus estimate for WWW’s 2025 EPS has moved up 1.5% in the past 30 days. The company has a trailing four-quarter earnings surprise of 39.1%, on average. Shares of this Zacks Rank #1 company have skyrocketed 127.4% in the past year.
Price & Consensus: WWW
NIKE: The global leader in athletic footwear, apparel and sports accessories is set to benefit from its Consumer Direct Acceleration strategy. NKE is actively repositioning the brand to enhance competitiveness and drive sustainable, long-term growth. The company is sharpening its focus on sports, accelerating product innovation and strengthening its brand storytelling with bold, high-impact messaging. It is advancing its innovation pipeline and refining its marketplace strategy to better align with consumer preferences.
NIKE is shifting its digital platform to a full-price model, reducing reliance on promotions and scaling back performance marketing investments. The Zacks Consensus Estimate for NKE’s fiscal 2026 sales and earnings indicates declines of 1.3% and 21.8%, respectively, from the year-ago quarter’s reported figures. The consensus estimate for NKE’s fiscal 2026 earnings has been unchanged in the past 30 days. NIKE delivered an earnings surprise of 42%, on average, in the trailing four quarters. This Zacks Rank #2 (Buy) stock has declined 5.3% in the past year.
Price & Consensus: NKE
Adidas: This leading manufacturer and seller of athletic and sports lifestyle products in Europe, the Middle East, Africa, North America, Greater China, the Asia Pacific and Latin America is poised to gain from strong demand, compelling products and the robust performance of its online business. Adidas has been benefiting from improved sell-through of all Adidas products in the market. The company has been witnessing improved margins, driven by the recently implemented price increases and an improved channel mix.
The Zacks Consensus Estimate for ADDYY’s 2025 sales and earnings indicates growth of 13.8% and 86.5%, respectively, from the year-ago quarter’s reported figures. The consensus estimate for ADDYY’s 2025 EPS has moved up 1.7% in the past seven days. Adidas delivered a negative earnings surprise of 43.6%, on average, in the trailing four quarters. This Zacks Rank #3 (Hold) stock has dipped 14.2% in the past year.
Price & Consensus: ADDYY
Birkenstock: This London-based company manufactures and sells footwear, including sandals, shoes, closed-toe styles, skincare products and accessories. While renowned for its cork-based sandals, Birkenstock has expanded into higher-priced designs. It benefits from strategic pricing, a focus on high-quality products and growth in direct-to-consumer (DTC) channels. A balanced distribution strategy across B2B (wholesale) and DTC has driven its success. There is significant growth potential in Asia, the Middle East and Africa.
Despite inflation and cautious consumer spending, Birkenstock has sustained strong demand, with its premium lines, such as closed-toe styles and the Big Buckle sandal, performing well. BIRK has a trailing four-quarter earnings surprise of 12%, on average. The Zacks Consensus Estimate for the company’s fiscal 2025 sales and earnings indicates growth of 26.9% and 39.6%, respectively, from the year-ago quarter’s reported figures. The consensus estimate for BIRK’s fiscal 2025 EPS has moved up 4.3% in the past 30 days. Shares of this Zacks Rank #3 company have risen 0.9% in the past year.
Price & Consensus: BIRK
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5 Shoes & Retail Apparel Stocks Positioned for Growth Amid Athleisure Boom
Companies in the Zacks Shoes and Retail Apparel industry are doubling down on brand-building initiatives and promotional efforts to strengthen consumer mindshare. Strong demand for activewear, footwear and wellness-oriented products, underpinned by the broader shift toward healthy lifestyles, continues to drive revenue growth. Industry leaders are capitalizing on this momentum through ongoing product innovation, broader athleisure collections, and deeper investments in e-commerce and omnichannel strategies.
However, the Shoes and Retail Apparel industry faces persistent headwinds. Rising input and logistics costs, lingering supply-chain disruptions, and elevated SG&A expenses from digital and store reinvestments continue to pressure margins. These structural challenges, as well as macroeconomic factors such as currency fluctuations, geopolitical uncertainty, and shifting tax and tariff policies, add complexity. A softer consumer confidence backdrop and a competitive labor market compound the margin strain.
Looking ahead, the path to sustainable growth hinges on continued innovation, digital infrastructure upgrades and stronger consumer engagement. Well-established players, including NIKE Inc. (NKE - Free Report) , Adidas AG (ADDYY - Free Report) , Skechers U.S.A., Inc. (SKX - Free Report) , Birkenstock Holding plc (BIRK - Free Report) and Wolverine World Wide, Inc. (WWW - Free Report) , are strategically positioned to navigate these challenges and capture long-term opportunities.
About the Industry
The Zacks Shoes and Retail Apparel industry comprises companies that design, source and market clothing, footwear and accessories for men, women and children under various brand names. Product offerings of the companies mostly include athletic and casual footwear, fashion apparel and activewear, sports equipment, bags, balls, and other sports and fashion accessories. The companies showcase their products through their branded outlets and websites. Some companies distribute products via other retail stores, such as national chains, online retailers, sporting goods stores, department stores, mass merchandisers, independent retailers and catalogs.
A Look at What's Shaping the Shoes & Retail Apparel Industry's Future
Consumer Demand Trends: Athletic and athleisure brands continue to ride the wave of strong consumer demand, a trend projected to hold steady through 2025. From footwear and yoga wear to jackets and running gear, the category benefits from a growing appetite for both performance and style. The rising influence of fashion in everyday wear is further fueling the demand for innovative apparel and footwear across the United States. To capture this momentum, industry players are leaning on product innovation, targeted marketing, store expansion and e-commerce growth. The health and wellness movement is also shaping buying patterns, with footwear brands expanding into versatile, multi-functional designs that balance performance, comfort and style, making them especially popular among consumers.
E-Commerce Investments: Digital channels remain a major growth engine for the athleisure market. Brands are expanding their reach through websites, social media and digital platforms, catering to consumers who increasingly shop from home. With athletic-inspired apparel gaining traction online, companies that scale their product offerings and strengthen e-commerce capabilities are best positioned for long-term growth. Investments in faster delivery, supply-chain efficiency and fulfillment enhancements are further sharpening competitive edges. At the same time, physical stores are being reimagined through renovations, improved checkout experiences and mobile point-of-sale options, creating a seamless omnichannel journey. These initiatives, across both online and offline touchpoints, are expected to drive more substantial traffic and sustained sales growth.
Cost Headwinds: Industry players continue to wrestle with elevated costs, pressured by both internal reinvestments and external macro forces. Margin pressures stem from persistent commodity price inflation, supply-chain bottlenecks and higher logistics expenses, with transportation costs expected to remain a near-term drag. At the same time, stepped-up spending on marketing, digital platforms and store upgrades is pushing SG&A expenses higher. To sustain brand visibility and consumer engagement, companies are channeling more into promotional campaigns and tech-driven initiatives. Layered onto these structural cost challenges is a backdrop of economic uncertainty, from geopolitical tensions and trade tariffs to currency volatility and shifting tax policies. Weakening consumer sentiment and tight labor markets complicate the operating environment, intensifying pressure on profitability across the sector.
Zacks Industry Rank Indicates Bright Prospects
The Zacks Shoes and Retail Apparel Industry is a 10-stock group within the broader Zacks Consumer Discretionary sector. The industry currently carries a Zacks Industry Rank #58, which places it in the top 24% 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 bright prospects for the near term. 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 positioning in the top 50% of the Zacks-ranked industries is the result of a positive earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are gradually gaining confidence in this group’s earnings growth potential.
Before we present a few stocks that you may want to consider for your portfolio, let us look at the industry’s recent stock market performance and valuation picture.
Industry vs. Sector
The Zacks Shoes and Retail Apparel industry has underperformed the sector and the S&P 500 in the past year.
Stocks in the industry have collectively declined 6.4% in the past year. Meanwhile, the Zacks Consumer Discretionary sector and the Zacks S&P 500 composite have risen 28.1% and 18.3%, respectively.
1-Year Price Performance
Shoes & Retail Apparel Industry's 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 28.96X compared with the S&P 500’s 23.02X and the sector’s 20.24X.
Over the last five years, the industry traded as high as 37.18X and as low as 20.15X, with a median of 27.18X, as the chart below shows.
Price-to-Earnings Ratio (Past 5 Years)
5 Shoes & Retail Apparel Stocks to Watch
Skechers: This Manhattan Beach, CA-based company designs, develops, markets and distributes footwear for men, women and children in the United States and overseas under the SKECHERS name, as well as several unique brand names. Skechers is actively leveraging a multi-brand approach to diversify its portfolio, particularly through comfort-driven footwear, targeting a broad consumer base. Strategic investments are strengthening its infrastructure, including e-commerce and retail, aligning with its omnichannel expansion and DTC growth.
Skechers' international business operations have been a pivotal driver of its overall growth trajectory. SKX has a trailing four-quarter earnings surprise of 12%, on average. The Zacks Consensus Estimate for the company’s 2025 sales indicates growth of 8.2% from the year-ago quarter’s reported figure. The consensus estimate for SKX’s 2025 EPS has increased 1.9% in the past 30 days. Shares of this Zacks Rank #1 (Strong Buy) company have declined 4.8% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
Price & Consensus: SKX
Wolverine: The company is engaged in designing, manufacturing and distributing a wide variety of casual and active apparel and footwear. It also manufactures children’s footwear and specially designed boots and accessories for industrial purposes. Wolverine’s focus on brand structure, increasing efficiency by removing costs, strategic review of its portfolio, improving working capital and lowering leverage bode well. The company continues to focus on strengthening its DTC business. Speed-to-market initiatives, deployment of digital product development tools, expansion of e-commerce platforms and frequent product introductions are steadily contributing to Wolverine’s performance.
The Zacks Consensus Estimate for WWW’s 2025 sales and earnings suggests growth of 6.5% and 46.2%, respectively, from the year-ago quarter’s reported figures. The consensus estimate for WWW’s 2025 EPS has moved up 1.5% in the past 30 days. The company has a trailing four-quarter earnings surprise of 39.1%, on average. Shares of this Zacks Rank #1 company have skyrocketed 127.4% in the past year.
Price & Consensus: WWW
NIKE: The global leader in athletic footwear, apparel and sports accessories is set to benefit from its Consumer Direct Acceleration strategy. NKE is actively repositioning the brand to enhance competitiveness and drive sustainable, long-term growth. The company is sharpening its focus on sports, accelerating product innovation and strengthening its brand storytelling with bold, high-impact messaging. It is advancing its innovation pipeline and refining its marketplace strategy to better align with consumer preferences.
NIKE is shifting its digital platform to a full-price model, reducing reliance on promotions and scaling back performance marketing investments. The Zacks Consensus Estimate for NKE’s fiscal 2026 sales and earnings indicates declines of 1.3% and 21.8%, respectively, from the year-ago quarter’s reported figures. The consensus estimate for NKE’s fiscal 2026 earnings has been unchanged in the past 30 days. NIKE delivered an earnings surprise of 42%, on average, in the trailing four quarters. This Zacks Rank #2 (Buy) stock has declined 5.3% in the past year.
Price & Consensus: NKE
Adidas: This leading manufacturer and seller of athletic and sports lifestyle products in Europe, the Middle East, Africa, North America, Greater China, the Asia Pacific and Latin America is poised to gain from strong demand, compelling products and the robust performance of its online business. Adidas has been benefiting from improved sell-through of all Adidas products in the market. The company has been witnessing improved margins, driven by the recently implemented price increases and an improved channel mix.
The Zacks Consensus Estimate for ADDYY’s 2025 sales and earnings indicates growth of 13.8% and 86.5%, respectively, from the year-ago quarter’s reported figures. The consensus estimate for ADDYY’s 2025 EPS has moved up 1.7% in the past seven days. Adidas delivered a negative earnings surprise of 43.6%, on average, in the trailing four quarters. This Zacks Rank #3 (Hold) stock has dipped 14.2% in the past year.
Price & Consensus: ADDYY
Birkenstock: This London-based company manufactures and sells footwear, including sandals, shoes, closed-toe styles, skincare products and accessories. While renowned for its cork-based sandals, Birkenstock has expanded into higher-priced designs. It benefits from strategic pricing, a focus on high-quality products and growth in direct-to-consumer (DTC) channels. A balanced distribution strategy across B2B (wholesale) and DTC has driven its success. There is significant growth potential in Asia, the Middle East and Africa.
Despite inflation and cautious consumer spending, Birkenstock has sustained strong demand, with its premium lines, such as closed-toe styles and the Big Buckle sandal, performing well. BIRK has a trailing four-quarter earnings surprise of 12%, on average. The Zacks Consensus Estimate for the company’s fiscal 2025 sales and earnings indicates growth of 26.9% and 39.6%, respectively, from the year-ago quarter’s reported figures. The consensus estimate for BIRK’s fiscal 2025 EPS has moved up 4.3% in the past 30 days. Shares of this Zacks Rank #3 company have risen 0.9% in the past year.
Price & Consensus: BIRK