UBS: AI is seen as a key driver of growth for apparel and footwear companies.

UBS analysts stated in a report that artificial intelligence has been providing assistance to the soft goods industry, but the market does not seem to be aware of this trend. These analysts said that since 2024, the productivity of employees in soft goods companies has increased, which may be due to their rapid adoption of AI. However, these analysts mentioned that Wall Street may be skeptical of this correlation because companies are not willing to share data on the return on their AI investments, as this data is competitive and difficult to determine. They further mentioned that companies with stronger AI adoption capabilities, such as Stitch Fix and Carrots, are showing the best unit employee sales growth. They said, "This reinforces our belief that AI is at least part of the reason driving the recent increase in employee productivity."