12 Best Apparel Stocks to Invest In

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

Number of Hedge Fund Holders: 39

The Gap, Inc. (NYSE:GAP) is a specialty retailer in the US that offers apparel, accessories, and personal care products for women, men, and children. Its brand portfolio includes Old Navy, Gap, Banana Republic, and Athleta brands.

The company gained market share for the eighth consecutive quarter in fiscal Q4 2024, reflecting the increasing popularity of its brands among consumers. It attained one of the highest gross margins in the last 20 years, increasing its operating income by more than $500 million and operating margin by 330 basis points versus last year’s adjusted rate. In addition, The Gap, Inc. (NYSE:GAP) delivered a full-year EPS of $2.20, the highest since 2018, demonstrating its earnings power.

On January 27, The Gap, Inc. (NYSE:GAP) announced an expanded partnership with Sean Wotherspoon, its global vintage curator, to release GapVintage and bring the company’s iconic product archive directly to customers across the globe. The company will include seasonal and themed drops, taking control of its vintage products as the secondhand market continues to grow and resonate among younger generations.