Despite rising inflation and supply chain disruptions, rising consumer spending should help the apparel industry generate solid sales this holiday season. Therefore, fundamentally strong apparel manufacturers Ralph Lauren Corporation (NYSE:RL) and V.F. Corporation (VFC) are well-positioned to grow substantially. But which of these stocks is a better buy now? Read more to find out.Ralph Lauren Corporation (RL) and V.F. Corporation (VFC) are two prominent companies in the apparel manufacturers industry. RL designs, markets, and distributes apparel, accessories, home furnishings, fragrances, and hospitality internationally. On the other hand, VFC is engaged in the design, production, distribution, and marketing of branded lifestyle apparel, footwear, and accessories internationally. Both the companies sell their products primarily to specialty stores, department stores, national chains, and direct-to-consumer operations.
Owing to pandemic-led travel restrictions and lower foot traffic, clothing and clothing accessories sales in the United States fell more than 24% year-over-year in 2020. However, rising e-commerce sales and the introduction of new fashion trends to keep pace with the changing consumer trends enabled most apparel companies to rebound gradually.
Despite rising inflation and supply chain disruptions affecting production, the wide availability of COVID-19 vaccines, and rising consumer spending ahead of the holiday season, the apparel industry is witnessing sales growth. The National Retail Federation (NRF) forecasts holiday retail sales to rise between 8.5% -10.5% during November and December. The global apparel market is expected to grow at 7.5% CAGR to $797.30 billion by 2025. So, both RL and VFC should benefit from these tailwinds in the coming months.