Even with rising inflation, supply chain disruptions and increased consumer spending, the industry should be able to generate strong sales for the holiday season, thanks to a improving job market and lifting travel bans. Therefore, we think fundamentally strong apparel retailers Levi Strauss & Co. (NYSE:), Under Armour (NYSE:) (UAA), Capri Holdings ()RL and Ralph Lauren (RL), could both be good bets. Let’s discuss.Most apparel companies established or strengthened their digital presence amid the COVID-19 pandemic to offset the decline in sales caused by lower foot traffic at their brick-and-mortar stores and outright store closures. In spite of rising inflation, supply chain disruptions, and solid progress made on the vaccine front, there has been decent sales growth in the apparel industry. Apparel companies should be able to expand this holiday season by introducing new apparel that keeps up with changing consumer trends.

The lifting of travel bans affecting various nations should further drive apparel companies’ sales ahead of the holiday season. According to the National Retail Federation (NRF), holiday retail sales will rise by 8.5%-10.5% in November and December, according to NRF. The global apparel market will grow 7.5% to $797.30 Billion by 2025, according to the NRF.

Given this backdrop, we think fundamentally sound apparel retailers Levi Strauss & Co. (LEVI), Under Armour, Inc. (UAA), Capri Holdings Limited (CPRI), and Ralph Lauren Corporation (NYSE:) could be solid bets now.

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