US apparel and footwear sales are expected to grow between six per cent and seven per cent this year and between four per cent and five per cent in 2019. Operating profit growth is expected to be in the range of eight to nine per cent this year.

Nike, PVH and VF are examples of large US companies that are active in the apparel and footwear sector that is seeing concurrent growth after a rocky two years. Nike’s progress with direct-to-consumer revenues and international expansion are seen as strong evidence that the company will shortly be posting solid profit growth. PVH is noted for its product offering and marketing. VF is expected to see continued growth in its Vans and The North Face brands as well as in its work wear business.

The positive outlook for the US apparel and footwear industry reflects faster-than-anticipated revenue and profit growth. Nearly all rated companies are expected to show some form of profit growth next year as they realize benefits from cost-saving initiatives, acquisition synergies, new product introductions and targeted marketing as well as improved macroeconomic conditions.

Many brands are focusing on direct-to-consumer sales channels as a driver of growth. This allows companies to more closely control brand messaging and the overall shopping experience.