The retail apparel and footwear industry has demonstrated remarkable resilience amidst shifting consumer preferences and macroeconomic challenges. Through innovation and strategic execution, certain companies have emerged as compelling investment opportunities. Deckers Outdoor Corporation (DECK Quick QuoteDECK - Free Report) stands out, fueled by its strong brand portfolio and steady financial performance.

DECK’s Strategy Ensures a Bright Future

At the heart of Deckers’ success lie its flagship brands, HOKA and UGG, both integral to the company’s expansion strategy. HOKA has experienced phenomenal global success, particularly in international markets where its market share continues to grow rapidly. Meanwhile, UGG remains a cornerstone of Deckers’ brand portfolio, consistently capturing consumer interest through innovation, including seasonal color updates and platform variations.

Beyond the strength of its products, Deckers’ growth is fueled by operational excellence and an effective marketplace strategy. The company has demonstrated strength across both direct-to-consumer and wholesale channels, supported by strong partnerships and the enduring popularity of HOKA and UGG.

At the core of this success are four guiding principles that define Deckers’ strategy: a consumer-first mindset driven by insights, a brand-led philosophy that amplifies each brand's unique identity, an innovation-forward approach with cutting-edge products and a global strategy that emphasizes international expansion. These principles not only drive current success but also lay the foundation for sustained growth in the future.

Shares of this Zacks Rank #1 (Strong Buy) company have gained 64.1% in the past year compared with the Retail - Apparel and Shoes sector’s growth of 40.1%.

Past-Year Stock Price Performance of DECK, ANF, GAP, GCO & URBN

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4 Other Top Retail Apparel and Shoe Stocks

Apart from Deckers, here are four other stocks you can invest in.

Abercrombie & Fitch Co. (ANF Quick QuoteANF - Free Report) stands out as a strong investment choice. The company excels in integrating digital and physical retail channels, offering a seamless shopping experience and driving higher customer satisfaction and loyalty. In addition, Abercrombie & Fitch recently announced an upward revision in its net sales outlook for the fourth quarter and fiscal 2024, reflecting the success of the holiday sales season. The company now expects fourth-quarter net sales growth of 7% to 8%, up from the prior forecast of 5% to 7%. Full fiscal year net sales are projected to grow approximately 15% compared with the earlier range of 14-15%.

ANF is a global, digitally led, omnichannel specialty retailer of apparel and accessories catering to kids through millennials with assortments curated for their specific lifestyle needs. ANF has a trailing four-quarter earnings surprise of 14.8%, on average. The Zacks Consensus Estimate for Abercrombie & Fitch’s current financial-year sales and earnings per share (EPS) suggests growth of 15.1% and 69.4%, respectively, from the year-ago period. The company currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Gap, Inc. (GAP Quick QuoteGAP - Free Report) has been successfully strengthening its market position through a focused strategy centered on its four key priorities: driving financial and operational rigor, reinvigorating the brands, reinforcing its operating platform, and energizing its culture. The company is actively working on brand revitalization to ensure its portfolio remains relevant and appealing to consumers. Gap is also optimizing its operations by simplifying its structure, increasing spans of control, and reducing management layers to enhance decision-making speed and quality. 

GAP is the largest specialty apparel company in the United States, and it houses iconic brands like Old Navy, Gap, Banana Republic and Athleta. The Zacks Consensus Estimate for Gap’s current financial-year sales and EPS suggests growth of 0.8% and 41.3%, respectively, from the year-ago reported figures. This Zacks Rank #1 company has a trailing four-quarter earnings surprise of 101.2%, on average.

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Genesco Inc. (GCO Quick QuoteGCO - Free Report) is strategically focused on product innovation, brand growth, and enhancing the consumer experience to solidify its market leadership. The company recently reported a strong performance with a 10% increase in comparable sales for the fourth-quarter-to-date period ended Dec. 28, 2024. Same-store sales rose by 6%, while e-commerce sales saw a remarkable 20% increase, showcasing the effectiveness of Genesco's omnichannel strategy.

Genesco is a footwear-focused company with distinctively positioned retail and lifestyle brands. The Zacks Consensus Estimate for Genesco’s current financial-year sales and EPS suggests growth of 1.5% and 67.9%, respectively, from the year-ago reported figures. This Zacks Rank #1 company has a trailing four-quarter earnings surprise of 36.9%, on average. 

Urban Outfitters, Inc. (URBN Quick QuoteURBN - Free Report) is positioned for sustained growth supported by solid sales across its brands, enhanced operational efficiency and significant margin improvements. Recently, Urban Outfitters reported strong holiday sales, with total company net sales for the two months ending Dec. 31, 2024, rising 10% compared to the same period in 2023. The Retail segment saw net sales increase by 7%, with comparable Retail segment net sales growing by 6%.

URBN is a leading lifestyle products and services company that operates a portfolio of global consumer brands, including the Anthropologie, Free People, FP Movement, Urban Outfitters and Nuuly brands. The Zacks Consensus Estimate for Urban Outfitters’ current financial-year sales and EPS suggests growth of 7.1% and 20%, respectively, from the year-ago reported figures. This Zacks Rank #1 company has a trailing four-quarter earnings surprise of 22.8%, on average.