The textile apparel industry is gaining from a significant number of stocks putting up a stellar show. The trend is likely to last as textile-apparel players will continue gaining from their robust brand management initiatives, solid international gains and constant efforts to keep pace with consumers’ evolving preferences.
To this end, focus on expanding digital capacities is likely to remain a major driver for the textile-apparel stocks that are also practicing stringent cost-containment to boost their performance. Apart from this, consumers’ rising inclination for sports and fitness activities bodes well for various players in this space.
While intense competition remains a headwind, the textile-apparel industry continues to be a bright spot, given the effective strategies, along with a favorable market scenario. Americans are way more confident now, thanks to a robust job market as evident from a fall in the number of people claiming unemployment benefits and jobless rate hovering at an 18-year low. These are likely to propel consumer spending.
Together these factors are likely to keep the textile-apparel stocks on the growth trajectory. Moreover, encouraging views by various players in the space point to a bright future and add to the optimism surrounding it.
Industry Outperforms Shareholder Returns
Constant efforts to enrich consumers’ experiences and optimize costs have been driving the better-than-expected performance of a sizeable number of stocks in the space. This clearly seems to be a treat to investors as evident from shareholder returns in the past year.
The Zacks Textile – Apparel Industry within the broader Zacks Consumer Discretionary Sector has outperformed both the S&P 500 and its own sector over the past year.