10 Best Clothing Stocks To Invest In Now

6. The Gap, Inc. (NYSE:GAP)

Analyst Upside: 21.80%

Number of Hedge Fund Holders: 39

The Gap, Inc. is a specialty apparel company in the US that offers apparel, accessories, and personal care products for women, men, and children. The company’s brand portfolio includes Old Navy, Gap, Banana Republic, and Athleta brands. The Gap brand offers adult apparel and accessories, Gap Maternity, GapKids, babyGap, GapBody, and GapFit collections. Banana Republic is a lifestyle retailer that offers womenswear, menswear, and home designs.

The company’s net sales grew for the fourth consecutive quarter in fiscal Q3 2024. It also attained an expanded gross margin and delivered its highest Q3 operating margin in seven years. The company also gained market share for the seventh consecutive quarter. This growth is attributed to the execution of The Gap, Inc.’s strategic priorities, notably its discipline and rigor in implementing its brand reinvigoration playbook.

The Gap, Inc.’s campaigns and collaborations are attracting a new generation to the company while simultaneously reinforcing the brand for its existing customers. It executed the Get Loose campaign in fiscal Q3 2024, which featured Troye Sivan and was rooted in Denim. The campaign was amplified by the relevant storytelling around the Loose Trend, earning the company a share increase in Denim with positive customer feedback on both the communications and the product. It takes the sixth spot on our list of the 10 best clothing stocks to invest in now.