The Shoes and Retail Apparel industry is benefiting from strong momentum in premiumization, performance innovation and digital expansion. The Zacks-defined Retail – Apparel and Shoes industry is currently within the top 26% of the Zacks Industry Rank. Since it is ranked in the top half of the Zacks Ranked Industries, we expect it to outperform the market over the next three to six months.

Growing consumer preference for functional, comfortable and durable products, supported by rising health awareness and active lifestyles, is fueling the demand for technical footwear, athleisure and versatile apparel. Advances in materials, cushioning, sustainability and customization are also strengthening brand differentiation and pricing power.

Here, we recommend five apparel and shoes stocks with a favorable Zacks Rank that have surged year to date. Investment in these stocks should be prudent for the rest of 2026. These stocks are: Abercrombie & Fitch Co. (ANF Quick QuoteANF - Free Report) , Genesco Inc. (GCO Quick QuoteGCO - Free Report) , Tilly's Inc. (TLYS Quick QuoteTLYS - Free Report) , Fossil Group Inc. (FOSL Quick QuoteFOSL - Free Report) and FIGS Inc. (FIGS Quick QuoteFIGS - Free Report) .

Each of our picks currently carries either a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The chart below shows the price performance of our five picks year-to-date.

Image Source: Zacks Investment Research

Abercrombie & Fitch Co.

Zacks Rank #1 Abercrombie & Fitch is benefiting from broad-based sales growth, better product acceptance and disciplined inventory management. Abercrombie brand momentum has strengthened, while Hollister remains supported by new channels, categories and back-to-school demand. 

ANF raised its fiscal 2026 sales, margin and earnings outlook, and continued share repurchases underscore balance-sheet flexibility. Store expansion, digital investments and partnerships should support ANF’s longer-term growth.

Abercrombie & Fitch has an expected revenue and earnings growth rate of 4.6% and 12.7%, respectively, for the current year (ending January 2027). The Zacks Consensus Estimate for the current year’s earnings has improved 5.1% in the last 30 days.

Genesco Inc.

Zacks Rank #1 Genesco is a specialty retail and branded company that sells footwear and accessories in retail stores throughout the United States, Canada, the United Kingdom and the Republic of Ireland. GCO sells products principally under the brand names Journeys, Journeys Kidz, Little Burgundy, Schuh, Schuh Kids, and Johnston & Murphy. 

GCO also offers products on various websites. In addition, GCO sells footwear at wholesale under its Johnston & Murphy brand, the licensed Levi's brand, the licensed Dockers brand, the licensed Bass brand, and other brands.

Genesco has an expected revenue and earnings growth rate of -0.1% and 67.1%, respectively, for the current year (ending January 2027). The Zacks Consensus Estimate for the current year’s earnings has improved 4.4% over the last seven days.

Tilly's Inc.

Zacks Rank #2 Tilly's is a specialty retailer in the action sports industry selling clothing, shoes and accessories. TLYS distributes T-shirts, sweatshirts, jackets, shorts, pants, jeans, sweaters, swimwear, shoes and accessories for men, women and kids through its website. 

TLYS sells denim apparel and cologne for guys, boys and juniors and apparel, footwear and accessories for juniors and girls under RSQ, Full Tilt, Blue Crown and Infamous brand names. TLYS sells its merchandise through its stores and e-commerce website. 

Tilly’s has an expected revenue and earnings growth rate of 6.6% and more than 100%, respectively, for the current year (ending January 2027). The Zacks Consensus Estimate for the current year’s earnings has improved more than 100% over the last seven days.

Fossil Group Inc.

Zacks Rank #2 Fossil Group is involved in the design, marketing and distribution of consumer fashion accessories. FOSL’s product portfolio includes men's and women's watches, handbags, belts, small leather goods, jewelry, sunglasses, hats, gloves and scarves, jeans, outerwear, fashion tops and bottoms, T-shirts as well as optical frames. 

FOSL operates in four different segments: the North America Wholesale segment, the Europe Wholesale segment, the Asia Pacific Wholesale segment and the Direct-to-Consumer segment. 

FOSL serves the market through department stores, specialty retail stores, specialty watch and jeweler stores, retail and outlet stores, mass market stores, clothing stores as well as through its catalogs and website.

Fossil Group has an expected revenue and earnings growth rate of -4% and 96.7%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved more than 100% over the last 30 days.

FIGS Inc.

Zacks Rank #2 FIGS is strengthening its growth profile through broad momentum across categories, geographies and channels, supported by resilient healthcare demand and brand engagement. FIGS’ product expansion beyond core scrubs is increasing share-of-wallet opportunities through adjacent apparel and footwear, while international markets are emerging as a long-term growth vector. 

Continued fit and fabric innovation and collaborations are enhancing customer appeal and expanding the addressable market. Strong full-price selling, lower returns and operating leverage are supporting FIGS’ margin expansion. Effective inventory management and a solid cash position provide flexibility to reinvest in FIGS’ growth projects.

FIGS has an expected revenue and earnings growth rate of 18.2% and 89.5%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 38.5% over the last 60 days.