During the COVID-19 pandemic, apparel brands like Lululemon Athletica Inc. (LULU) and Stitch Fix, Inc. (SFIX) were among the standout winners, as consumers gravitated toward LULU's athleisure vibe and SFIX's stay-at-home styling options. While both stocks are down from their pandemic highs, both LULU and SFIX are back on the radar, having rallied sharply after their most recent earnings reports.
Lululemon, renowned for quality athleisure wear, stands poised for success amid projections of the global athletic apparel market reaching $21.2 billion by 2032, expanding at a 3.1% compound annual growth rate (CAGR). Stitch Fix, famed for personalized styling services, could also prosper, given forecasts of the global custom apparel market expanding at a 6.4% CAGR, reaching $70.9 billion by 2028.
