Under Armour & 4 Other Top Consumer Apparel Stocks Set for Growth

27.01.25 15:32 Uhr

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The consumer discretionary sector continues to be an attractive space for investors seeking growth opportunities. While companies in this category are sensitive to economic cycles, many have shown remarkable adaptability, innovation and a strong focus on customer engagement. Among the standouts, Under Armour, Inc. UAA shines with its strong brand presence and strategic growth initiatives.Under Armour’s Strategy for GrowthUnder Armour is strategically positioning itself for sustained growth by refining its product offerings and advancing its premiumization objectives. Through a careful streamlining of its product line and the removal of redundant SKUs, the company is sharpening its focus on key products, enhancing the consumer experience, and ensuring a more cohesive market presence. Shares of this Zacks Rank #1 (Strong Buy) company have gained 21.7% in the past six months.The company’s direct-to-consumer (DTC) channel has become a significant revenue driver. Under Armour is making aggressive investments in its DTC channels to strengthen its brand presence and achieve premium positioning. The shift from heavy discounting to a curated, full-price assortment has resulted in a notable increase in average order value and a rise in full-price e-commerce sales, accounting for approximately 50% of online revenues in the second quarter of fiscal 2025. Under Armour's UA Rewards loyalty program has experienced strong growth, reaching nearly 13 million members in the United States and 28 million globally as of the second quarter of fiscal 2025. During this period, the company added 6 million members to its ua.com platform. Active members now account for around 50% of U.S. DTC revenues, generating approximately 50% higher revenue per customer and nearly doubling the repurchase rate compared to non-members.Under Armour is making strategic inroads into high-potential international markets by tailoring marketing campaigns to regional preferences and forming key partnerships, successfully broadening its reach and appealing to diverse consumer bases.Past Six Months Stock Price Performance of UAA, VFC, RL, COLM and GIIIImage Source: Zacks Investment Research4 Other Consumer Discretionary PicksWhile Under Armour leads with its transformative growth initiatives, several other apparel companies are also executing effective strategies to capitalize on market trends.V.F. Corporation VFC emerges as a compelling investment choice due to its strategic Reinvent transformation program, which focuses on brand-building and enhancing operating performance. The initiative targets four key objectives: improving performance in North America, executing a turnaround for Vans, reducing costs and strengthening the company’s balance sheet.V.F. Corp engages in the design, procurement, marketing and distribution of branded lifestyle apparel, footwear and accessories for men, women, and children. VFC delivered an earnings surprise of 46.3% in the last reported quarter. VFC shares have rallied 61.2% in the past six months. The company currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.Ralph Lauren Corporation RL focuses on achieving its top and bottom-line targets through the 'Next Great Chapter: Accelerate Plan.' This comprehensive strategy includes streamlining its global organizational structure and enhancing technological capabilities. The plan is built around three key pillars: elevating and energizing the lifestyle brand, driving the core and expanding for more, and winning key cities with its consumer ecosystem.Ralph Lauren designs, markets, and distributes lifestyle products and currently carries a Zacks Rank #2 (Buy). RL has a trailing four-quarter earnings surprise of 9.1%, on average. The Zacks Consensus Estimate for Ralph Lauren’s current fiscal-year sales and earnings indicates growth of 3.4% and 14%, respectively, from the prior-year reported levels. RL shares have gained 47.6% in the past six months.See the Zacks Earnings Calendar to stay ahead of market-making news.Columbia Sportswear Company COLM is strengthening its market position with its new growth strategy, ACCELERATE, which aims to elevate the brand and attract younger, more active consumers. The company is enhancing operational efficiency and safeguarding profitability through its multi-year Profit Improvement Program. Columbia is also investing in brand-building and unique marketing initiatives that not only drive sales but also reinforce its presence in the competitive apparel industry. Staying on track with its strategic priorities, Columbia continues to focus on demand-creation investments to increase brand awareness and support long-term growth.Columbia Sportswear designs, develops, markets and distributes outdoor, active, and everyday lifestyle apparel, footwear, accessories, and equipment. The Zacks Consensus Estimate for Columbia Sportswear’s current quarter sales suggests growth of 1.8% from the year-ago reported figure. This Zacks Rank #2 company has a trailing four-quarter earnings surprise of 36.5%, on average. COLM has gained 13.1% in the past six months.  G-III Apparel Group, Ltd. GIII is well-positioned for sustained growth, driven by strong sales across its key brands, including DKNY, Karl Lagerfeld, Donna Karan and Vilebrequin. Collectively, these brands grew more than 30% in the third quarter of fiscal 2025, significantly outperforming the company’s overall revenue growth of 1.8%. As these brands become an increasingly important part of the portfolio, the company is seeing higher sales, improved gross margins, and increased licensing income. G-III’s focus on international expansion, particularly in Europe, remains a key priority as it strengthens its global platform.G-III Apparel designs, sources, and markets women's and men's apparel. The Zacks Consensus Estimate for G-III Apparel’s current financial-year sales and EPS suggests growth of 1.7% and 3%, respectively, from the year-ago reported figures. This Zacks Rank #2 company has a trailing four-quarter earnings surprise of 113.4%, on average. GIII has gained 18.1% in the past six months.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report V.F. Corporation (VFC): Free Stock Analysis Report Columbia Sportswear Company (COLM): Free Stock Analysis Report Ralph Lauren Corporation (RL): Free Stock Analysis Report G-III Apparel Group, LTD. (GIII): Free Stock Analysis Report Under Armour, Inc. (UAA): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks

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Analysen zu Under Armour Inc.

DatumRatingAnalyst
28.01.2025Under Armour BuyUBS AG
17.12.2024Under Armour BuyUBS AG
13.12.2024Under Armour UnderweightJP Morgan Chase & Co.
08.11.2024Under Armour BuyUBS AG
08.11.2024Under Armour UnderweightJP Morgan Chase & Co.
DatumRatingAnalyst
28.01.2025Under Armour BuyUBS AG
17.12.2024Under Armour BuyUBS AG
08.11.2024Under Armour BuyUBS AG
24.10.2024Under Armour BuyUBS AG
08.10.2024Under Armour BuyUBS AG
DatumRatingAnalyst
16.01.2024Under Armour NeutralJP Morgan Chase & Co.
24.10.2023Under Armour NeutralJP Morgan Chase & Co.
08.08.2023Under Armour NeutralJP Morgan Chase & Co.
09.05.2023Under Armour NeutralJP Morgan Chase & Co.
13.03.2023Under Armour NeutralJP Morgan Chase & Co.
DatumRatingAnalyst
13.12.2024Under Armour UnderweightJP Morgan Chase & Co.
08.11.2024Under Armour UnderweightJP Morgan Chase & Co.
08.08.2024Under Armour UnderweightJP Morgan Chase & Co.
16.05.2024Under Armour UnderweightJP Morgan Chase & Co.
27.07.2018Under Armour SellB. Riley FBR

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