With the gradual demise of skinny jeans, there has been a resurgence in the popularity of loose-fitting and wide-legged jeans as consumers look for more comfortable and relaxing styles. This shift in fashion preference should bolster the growth of leading players in this space—Levi Strauss (NYSE:LEVI), The Gap (GPS), Abercrombie & Fitch (ANF), and Guess? (GES). So read on for a closer examination of these stocks’ prospects.Although the denim industry suffered a decline in sales amid the pandemic as consumers limited their discretionary spending, shifting fashion preferences to more relaxed styles and increasing spending on apparel as people update their wardrobes to resume day-to-day outdoor activities have fueled the industry’s recovery. Jeans lovers are shifting their preference to wide-legged jeans due to their versatility and all-purpose comfort features. According to retail specialist Stephanie Wissink’s analysis, google searches for low-rise jeans with wide-legged and flare jeans have surged 91% over the past six months.
With consumers returning to looser and more comfortable styles and denim brands, the demand for wide-legged jeans should increase. The global market for denim jeans is expected to reach $83.2 billion by 2026, registering a 4.7% CAGR. This trend should give the jeans industry a much-needed boost.
Hence, we think it could be wise to bet on popular denim stocks Levi Strauss & Co. (LEVI), The Gap, Inc. (GPS), Abercrombie & Fitch Co. (ANF), and Guess?, Inc. (GES). We expect these companies to generate substantial sales growth in the coming months.