The Rise of Amazon as the Leading Clothing Retailer in America
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 01 2025
0mins
Source: CNBC
Amazon's Apparel Market Dominance: Amazon's market share in the apparel and footwear segment reached nearly 13% in 2024, with sales exceeding $67 billion, significantly outpacing Walmart's $32 billion. The company is projected to surpass $72 billion in sales by 2025.
Shift in Private Label Strategy: Initially focused on expanding its private label offerings, Amazon has scaled back its in-house clothing line due to declining sales, now primarily offering basic items under the Amazon Essentials brand.
Challenges with Seller Relationships: The FTC has filed a lawsuit against Amazon over antitrust concerns, alleging that the company penalizes sellers who list products at lower prices elsewhere, which could lead to anti-competitive practices.
Impact of Returns on Profitability: High return rates in the apparel sector, where customers often buy multiple sizes, pose profitability challenges for sellers, as many returned items cannot be resold, affecting both seller margins and Amazon's overall business model.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy VFC?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on VFC
Wall Street analysts forecast VFC stock price to fall
18 Analyst Rating
3 Buy
13 Hold
2 Sell
Hold
Current: 20.180
Low
10.00
Averages
16.09
High
25.00
Current: 20.180
Low
10.00
Averages
16.09
High
25.00
About VFC
V.F. Corp is a global apparel, footwear and accessories company. The Company designs, procures, markets and distributes a variety of branded products, including backpacks, luggage and accessories for consumers of all ages. Its products are marketed under VF-owned brand names. Its portfolio of outdoor, active and workwear brands includes The North Face, Vans, Timberland, Altra, Smartwool, Icebreaker, Kipling, Napapijri, Eastpak, JanSport, and Timberland PRO. Its segments include Outdoor, Active, and Work. The Outdoor segment is a group of outdoor-based lifestyle brands. Product offerings include performance and performance-inspired outdoor apparel, footwear, equipment and accessories. The Active segment is a group of activity-based lifestyle brands. Product offerings include active apparel, footwear, backpacks, luggage and accessories. The Work segment consists of performance and lifestyle workwear brands with product offerings that include apparel, footwear and accessories.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Eddie Bauer Files for Voluntary Chapter 11 Bankruptcy Protection Amid Operational Pressures
- Bankruptcy Filing: Eddie Bauer LLC announced on Monday that it has filed for voluntary Chapter 11 bankruptcy protection, primarily due to tariff uncertainty and mounting operational pressures, highlighting the severe financial challenges the company faces.
- Restructuring Agreement: The company has entered into a Restructuring Support Agreement with its secured lenders and commenced voluntary bankruptcy proceedings in the U.S. Bankruptcy Court for the District of New Jersey, aiming to maintain operations and seek a buyer through restructuring.
- Retail Operations Continuity: Despite entering bankruptcy, Eddie Bauer's stores in the U.S. and Canada will remain open for liquidation sales, maximizing asset value while searching for a going-concern buyer, indicating a strategic approach to asset management during financial distress.
- E-commerce Business Stability: Eddie Bauer's e-commerce and wholesale operations, which transitioned to Outdoor 5, LLC in January, remain unaffected by the bankruptcy process, suggesting that the company has managed to stabilize part of its business during this transition.
See More
2016 Nostalgia Sparks Retail Revival Potential
- Social Media Surge: Since January 1, user-generated '2016' playlists on Spotify have surged by 790%, indicating a strong nostalgic sentiment among young consumers that could drive sales for brands associated with that era.
- Return to Brick-and-Mortar: Young consumers are rediscovering the joy of in-store shopping, reflecting a longing for the carefree atmosphere of 2016, which may lead to improved performance for retailers.
- Brand Opportunities: Brands like Abercrombie & Fitch could leverage this nostalgia wave to reshape their image, particularly if they successfully distance themselves from past controversies, potentially attracting more young consumers.
- Market Outlook: Retail trends typically last about 18 months, and this nostalgia cycle is expected to persist through the midterm elections this year, possibly extending into next year, providing long-term market opportunities for related brands.
See More
Gen Z's Nostalgia for 2016 and Its Impact on Retail
- Nostalgia Trend Emergence: Gen Z's nostalgia for 2016 has rapidly spread across social media, with Spotify user-generated '2016' playlists soaring by 790% since January 1, indicating a strong yearning for the cultural elements of that time, potentially driving a revival for related brands.
- Return to Brick-and-Mortar: Young consumers are rediscovering the appeal of in-store shopping after years dominated by e-commerce, reflecting a longing for the carefree and familiar comfort of 2016, which could stimulate a retail resurgence.
- Brand Opportunities Arise: Brands like Abercrombie & Fitch and Levi Strauss, which held significant cultural relevance in 2016, may leverage this nostalgia wave to regain market traction, especially as consumers show renewed interest in classic styles.
- Market Strategy Adjustments: As nostalgia rises, brands must adjust their market strategies to align with Gen Z's desire for authenticity and less intentionality, with successful brands likely to harness this emotional connection to reshape their cultural relevance.
See More
Significant Stock Movements Among Major Companies
- Intel Stock Surge: Intel's stock rose over 11% following a DigiTimes report indicating that Nvidia will shift chip production to Intel by 2028, enhancing its competitive position in the semiconductor market.
- AT&T Profit Guidance Upgrade: AT&T's stock increased by 5% after raising its annual profit guidance, expecting free cash flow to exceed $21 billion in 2028, surpassing analysts' estimates of $19.61 billion, indicating robust financial health.
- Seagate Strong Earnings Boost: Seagate's stock soared 19% after reporting adjusted earnings of $3.11 per share, exceeding the expected $2.81, reflecting strong performance in the storage infrastructure sector.
- Stride Earnings Beat Expectations: Stride's stock surged 21% after reporting adjusted earnings of $2.50 per share, significantly above analysts' expectations of $2.01, showcasing strong demand in the virtual education market.
See More
V.F. Corporation Reports Strong Q3 2026 Earnings Growth
- Revenue Growth: V.F. Corporation reported Q3 revenue of $2.8 billion, up 2% year-on-year, exceeding expectations and indicating a recovery in the U.S. market, particularly driven by strong digital sales performance that revitalized overall business.
- Brand Performance: The North Face brand achieved a 5% revenue increase with all product categories rising, especially in performance apparel and footwear, reflecting strong brand recognition and competitive positioning in the market.
- Financial Health: The adjusted operating margin reached 12.1%, up 30 basis points year-over-year, while net debt decreased by $500 million, demonstrating effective measures in reducing liabilities and enhancing profitability.
- Outlook: Management anticipates Q4 revenue to be flat to up 2%, with plans to achieve a gross margin of over 54.5% in the future, indicating confidence in sustained growth and market share expansion.
See More
VF Corporation Reports Strong Q3 2026 Earnings, Beats Estimates
- Earnings Beat: VF Corporation reported adjusted earnings per share of 56 cents for Q3 2026, surpassing the analyst consensus of 45 cents, indicating strong performance during the holiday season, particularly from The North Face and Timberland brands.
- Sales Growth: Quarterly sales reached $2.876 billion, exceeding the market expectation of $2.768 billion, driven by robust performance in the direct-to-consumer channel and the Americas region.
- Operating Income Increase: Adjusted operating income totaled $341 million, up from $318 million a year ago, with operating margin expanding by 30 basis points to 12.1%, reflecting successful cost control and efficiency improvements.
- Optimistic Outlook: VF expects fourth-quarter revenue to range between $2.140 billion and $2.183 billion, exceeding analysts' average estimate of $2.095 billion, showcasing the company's confidence in future performance.
See More
Eddie Bauer Files for Voluntary Chapter 11 Bankruptcy Protection Amid Operational Pressures
- Bankruptcy Filing: Eddie Bauer LLC announced on Monday that it has filed for voluntary Chapter 11 bankruptcy protection, primarily due to tariff uncertainty and mounting operational pressures, highlighting the severe financial challenges the company faces.
- Restructuring Agreement: The company has entered into a Restructuring Support Agreement with its secured lenders and commenced voluntary bankruptcy proceedings in the U.S. Bankruptcy Court for the District of New Jersey, aiming to maintain operations and seek a buyer through restructuring.
- Retail Operations Continuity: Despite entering bankruptcy, Eddie Bauer's stores in the U.S. and Canada will remain open for liquidation sales, maximizing asset value while searching for a going-concern buyer, indicating a strategic approach to asset management during financial distress.
- E-commerce Business Stability: Eddie Bauer's e-commerce and wholesale operations, which transitioned to Outdoor 5, LLC in January, remain unaffected by the bankruptcy process, suggesting that the company has managed to stabilize part of its business during this transition.
See More
2016 Nostalgia Sparks Retail Revival Potential
- Social Media Surge: Since January 1, user-generated '2016' playlists on Spotify have surged by 790%, indicating a strong nostalgic sentiment among young consumers that could drive sales for brands associated with that era.
- Return to Brick-and-Mortar: Young consumers are rediscovering the joy of in-store shopping, reflecting a longing for the carefree atmosphere of 2016, which may lead to improved performance for retailers.
- Brand Opportunities: Brands like Abercrombie & Fitch could leverage this nostalgia wave to reshape their image, particularly if they successfully distance themselves from past controversies, potentially attracting more young consumers.
- Market Outlook: Retail trends typically last about 18 months, and this nostalgia cycle is expected to persist through the midterm elections this year, possibly extending into next year, providing long-term market opportunities for related brands.
See More
Gen Z's Nostalgia for 2016 and Its Impact on Retail
- Nostalgia Trend Emergence: Gen Z's nostalgia for 2016 has rapidly spread across social media, with Spotify user-generated '2016' playlists soaring by 790% since January 1, indicating a strong yearning for the cultural elements of that time, potentially driving a revival for related brands.
- Return to Brick-and-Mortar: Young consumers are rediscovering the appeal of in-store shopping after years dominated by e-commerce, reflecting a longing for the carefree and familiar comfort of 2016, which could stimulate a retail resurgence.
- Brand Opportunities Arise: Brands like Abercrombie & Fitch and Levi Strauss, which held significant cultural relevance in 2016, may leverage this nostalgia wave to regain market traction, especially as consumers show renewed interest in classic styles.
- Market Strategy Adjustments: As nostalgia rises, brands must adjust their market strategies to align with Gen Z's desire for authenticity and less intentionality, with successful brands likely to harness this emotional connection to reshape their cultural relevance.
See More
Significant Stock Movements Among Major Companies
- Intel Stock Surge: Intel's stock rose over 11% following a DigiTimes report indicating that Nvidia will shift chip production to Intel by 2028, enhancing its competitive position in the semiconductor market.
- AT&T Profit Guidance Upgrade: AT&T's stock increased by 5% after raising its annual profit guidance, expecting free cash flow to exceed $21 billion in 2028, surpassing analysts' estimates of $19.61 billion, indicating robust financial health.
- Seagate Strong Earnings Boost: Seagate's stock soared 19% after reporting adjusted earnings of $3.11 per share, exceeding the expected $2.81, reflecting strong performance in the storage infrastructure sector.
- Stride Earnings Beat Expectations: Stride's stock surged 21% after reporting adjusted earnings of $2.50 per share, significantly above analysts' expectations of $2.01, showcasing strong demand in the virtual education market.
See More
V.F. Corporation Reports Strong Q3 2026 Earnings Growth
- Revenue Growth: V.F. Corporation reported Q3 revenue of $2.8 billion, up 2% year-on-year, exceeding expectations and indicating a recovery in the U.S. market, particularly driven by strong digital sales performance that revitalized overall business.
- Brand Performance: The North Face brand achieved a 5% revenue increase with all product categories rising, especially in performance apparel and footwear, reflecting strong brand recognition and competitive positioning in the market.
- Financial Health: The adjusted operating margin reached 12.1%, up 30 basis points year-over-year, while net debt decreased by $500 million, demonstrating effective measures in reducing liabilities and enhancing profitability.
- Outlook: Management anticipates Q4 revenue to be flat to up 2%, with plans to achieve a gross margin of over 54.5% in the future, indicating confidence in sustained growth and market share expansion.
See More
VF Corporation Reports Strong Q3 2026 Earnings, Beats Estimates
- Earnings Beat: VF Corporation reported adjusted earnings per share of 56 cents for Q3 2026, surpassing the analyst consensus of 45 cents, indicating strong performance during the holiday season, particularly from The North Face and Timberland brands.
- Sales Growth: Quarterly sales reached $2.876 billion, exceeding the market expectation of $2.768 billion, driven by robust performance in the direct-to-consumer channel and the Americas region.
- Operating Income Increase: Adjusted operating income totaled $341 million, up from $318 million a year ago, with operating margin expanding by 30 basis points to 12.1%, reflecting successful cost control and efficiency improvements.
- Optimistic Outlook: VF expects fourth-quarter revenue to range between $2.140 billion and $2.183 billion, exceeding analysts' average estimate of $2.095 billion, showcasing the company's confidence in future performance.
See More
