Intimate apparel is currently in rebuilding mode following a recession last year. The expansion of digital platforms, increase in consumer spending and pent-up demand for customized and comfortable products have been fueling the intimate apparel industry’s growth. Gildan Activewear (NYSE) are fundamentally sound stocks in the space. Hanesbrands These are the stocks to bet on (NYSE:). Victoria’s Secret, VSCO and Naked Brand (NAKD), aren’t well-positioned for the industry’s opportunities. We think these companies’ bleak financials make their stocks best avoided now. Let’s discuss.The intimate apparel market, or lingerie industry, offers a wide range of necessary and fashionable products. Due to the closing of many physical shops due to pandemics, and decrease in consumers spending on fashion products, this sector saw its sales decline last year. However, efforts to strengthen digital platforms, customized product innovations, a wide range of designer products based on various outfits and body types, rising consumer spending, and pent-up demand for comfortable and hygienic intimate apparel have been driving the market’s growth since. By 2026, the global lingerie market will experience a 7.8% compound annual growth rate.

It is expected that this industry will experience a major increase in brick-and-mortar and ecommerce sales. We believe that intimate clothing stocks are fundamentally sound. Gildan Activewear Inc . Hanesbrands Inc. and (GIL), could both be good bets right now.

However, amid remote lifestyles, consumers’ preferences are shifting from fashionable intimate wear toward more comfortable and necessary products. Therefore, we think fundamentally weak companies in this space, Victoria’s Secret & Co. (VSCO) and Naked Brand Group Limited (NAKD), might struggle to stay afloat.

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