UBS says to buy these 10 apparel stocks as US consumers show signs of strength

• The holidays may be over, but UBS expects the US consumer to remain strong heading into 2026.
• Analyst Jay Sole recently shared his top picks for apparel stocks to buy as the new year unfolds.
• He's bullish on a wide range of companies, from Ralph Lauren to Birkenstock.

The Christmas season is over, but that doesn't the US consumer is ready to fade.

UBS analyst Jay Sole recently released his top apparel stock picks for the coming year, predicting growth ahead for retailers that cater toward a wide variety of consumers, ranging from Ralph Lauren to less upscale names such as TJX Companies and Burlington Stores.

"We see few Softline companies missing consensus 4Q EPS expectations," Sole said. "This, plus the prospect of US fiscal stimulus starting to drive Softline industry sales growth rate acceleration early in 2026, likely keep Softline stock momentum going at least through January."

Most of Sole's top apparel stocks have enjoyed a strong trading year but the analyst maintains they are primed for more growth in early 2026. He sees the most opportunity in companies that he to be structural leaders in the apparel industry with growth potential and earnings durability that investors may be underestimating.

Here are ten of his firm's top picks for the sector:

On Holding: -13% year-to-date.
Ralph Lauren: +52%
Gildan Activewear: +36%
Levi Strauss & Co: +21%
Amer Sports: +36%
Birkenstock Holding: -27%
The TJX Companies: +29%
Burlington Stores: +0.4%
Deckers Outdoor Corporation: -49%
Signet Jewelers: +5%

After a standout year marked by rising demand and a popularity resurgence as younger shoppers have embraced it, Ralph Lauren is the list's top performer. The preppy fashion retailer has also embraced AI as a growth-driving tool, managing to maintain its classic image while showing investors it can adapt to a new market.

Sole praises both Ralph Lauren and On Holding, an athletic clothing retailer, as two of the best "go it alone" companies, which he sees as a clear advantage in the current market.

"Companies that can go it alone don't need malls or many other third parties to drive consumer engagement and sales growth," he said. "We believe these companies are likely to take market share and become the industry "winners".'

The report doesn't provide much rationale for the other individual stocks, most of whom sell either casual everyday wear, such as TJX or Burlington's retail chains or athletic/outdoor wear, including Gildan and Amer Sports. While Birkenstock's casual sandals have risen in popularity in recent years, the company has struggled this year amid tariff-driven costs.

Deckers, primarily an outdoor equipment and apparel producer, has struggled in 2025 but it has also been praised by UBS as a top utilities stock to buy for 2026. The bank maintains that the company is an undervalued growth play on multiple markets.