AI Seen as a Key Growth Driver for Apparel, Footwear Companies -- Market Talk

Dow Jones04-07

1921 ET - Artificial intelligence is already providing a boost for the softline industry, a trend the market doesn't seem to realize, UBS analysts say in a note. Softline companies have improved their employee productivity since 2024, likely due to their rapidly growing use of AI, the analysts say. However, Wall Street is likely skeptical of the correlation since companies are hesitant to share data on the returns of their AI investments since it's competitively sensitive and tough to determine, the analysts say. But companies that have demonstrated stronger AI adoption, like Stitch Fix and Crocs, are showing the best sales-per-employee gains, they say. "This reinforces our conviction AI is a factor at least partly driving the recent step up in employee productivity," they say. (kelly.cloonan@wsj.com)

(END) Dow Jones Newswires

April 06, 2026 19:21 ET (23:21 GMT)

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