Industry Overview - The Zacks Textile – Apparel industry is currently facing challenges due to persistent inflation, supply-chain disruptions, and high selling, general and administrative (SG&A) expenses, which are impacting profitability [1][5] - The industry includes companies that manufacture, design, distribute, and sell apparel, footwear, and accessories for men and women, operating through various distribution channels [3] Current Trends - Consumer caution and a focus on value are evident as inflation and macroeconomic uncertainty lead to muted demand, straining the textile and apparel sector [4] - Persistent cost pressures from elevated input and labor costs, rising SG&A, and freight and tariff volatility are causing ongoing margin pressure [5] - Digital and AI-driven transformation is becoming a key growth driver, with companies leveraging these technologies to improve efficiency and connect with consumers [6] - Brand strength is increasingly important, with companies positioning themselves as lifestyle curators to maintain premium pricing and appeal to younger shoppers [7] Industry Performance - The Zacks Textile – Apparel industry ranks 191, placing it in the bottom 22% of over 250 Zacks industries, indicating dim near-term prospects [8] - The industry's consensus earnings estimate has declined by 8.6% since June 2025, reflecting a negative aggregate earnings outlook [9] - Over the past year, the industry has underperformed the broader Zacks Consumer Discretionary sector and the S&P 500, declining by 16.6% compared to the sector's and S&P 500's growth of 23.9% and 19.8%, respectively [10] Valuation Metrics - The industry is currently trading at a forward 12-month price-to-earnings (P/E) ratio of 11.25X, significantly lower than the S&P 500's 23.36X and the sector's 19.98X [13] Notable Companies - **Ralph Lauren Corporation (RL)**: Focused on brand elevation and digital ecosystems, with a Zacks Rank of 2. The consensus EPS estimate has increased by 8.4% to $14.77, and shares have rallied 36.3% in the past six months [16][17] - **Hanesbrands Inc. (HBI)**: Engaging in a transformation centered on innovation and cost discipline, with a Zacks Rank of 2. The consensus EPS estimate has risen by 24.5% to $0.66, and shares have increased by 3.5% [20][21] - **Guess?, Inc. (GES)**: Advancing a global growth strategy with a focus on brand elevation and operational agility, holding a Zacks Rank of 2. The consensus EPS estimate has jumped by 8.1% to $1.60, with shares surging 36.1% [24][25] - **PVH Corp. (PVH)**: Revitalizing core brands through marketing and international expansion, with a Zacks Rank of 3. The consensus EPS estimate has increased by $0.02 to $0.84, and shares have jumped 28.8% [28][29]