Apparel brands are likely to see mixed but slightly positive earnings during the rest of Q1 2026. Top-line growth is forecast to slow due to fragile demand, but there could be some margin tailwinds and clear outperformance for a subset of strong brands and value players.

Consumer confidence remains weak across major developed markets, with cost-of-living pressure and softening labor markets limiting discretionary spend and pushing shoppers toward lower-priced and private-label goods.