Many experts say the AI trade has become volatile and are recommending that people include some non-AI stocks in their portfolios. Experts like Goldman Sachs have already suggested alternative stocks to AI this year.
Jim Cramer just did that, too.
On his October 15 Mad Money show, Cramer pointed viewers to two clothing stocks: VF Corp (VFC) and Kontoor Brands (KTB).
Those names may not sound familiar, but if you’ve ever worn Vans sneakers or Wrangler jeans, you’ve already used products from these two companies.
Both brands were initially under the same company, but Kontoor was spun off from VF Corp in May 2019, allowing VF to focus on sneakers and outdoor gear while Kontoor took over the jeans business.
Now Cramer is recommending both stocks.
Why Cramer is pointing people away from AI stocks
On Thursday, Cramer gave a reason for his call, saying, “Normally, I’d hesitate to recommend apparel stocks at this point in the business cycle, but VF Corp and Kontoor have already come down dramatically from their highs, and they’re trading at depressed valuations.”
Also read: Jim Cramer says he’s willing to stick his neck out for this stock
The host has previously said some positive things about KTB. “There’s a lot to like with Kontoor Brands,” Cramer said in a July 2025 Mad Money segment, pointing to the company’s steady cash flow and strong brands, according to CNBC.
Both stocks have had varying performances this year. VF Corp closed at $17.00 on October 16. It jumped more than 33% in the past month after falling for most of the year. Kontoor finished the same day at $72.94, up about 18.6% so far this year.
What VF Corp and Kontoor actually sell
VF Corp owns Vans, The North Face, and Timberland. VF Corp just started bouncing back after falling for most of the year, and the reason for that drop is Vans. Young shoppers have been picking other brands over it for a while now, and its sales have slowed as a result.
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Kontoor owns Wrangler, Lee, and the outdoor brand Helly Hansen. You might have also seen some of these brands at Walmart and Amazon when shopping. In May 2026, Kontoor agreed to sell Lee to Authentic Brands Group for up to $1 billion, so it can focus on Wrangler and Helly Hansen, Traders Union reported.
Kontoor has done well financially this year. Its second-quarter sales increased by 19%, and the company raised its full-year forecast after its strong results, Yahoo Finance confirmed.
Why Wall Street is suddenly bullish on both
A few big firms also made moves on both stocks this week. Truist and Piper Sandler both upgraded VF Corp to a Buy, with a $20 price target. Piper Sandler also runs a yearly survey of American teens, and its latest survey found that Vans is climbing back up the list of favorite shoe brands among teenage boys. That is a strong sign that Vans is slowly getting its “cool factor” back.
More Retail Stocks:
- Nike has a long road ahead to win customers back
- Levi’s CEO admits the company missed the biggest jeans trend of the year
- Procter & Gamble could face new cost problem
Jefferies upgraded Kontoor to a Buy from a Hold with an $89 price target. The firm likes the comeback in denim fashion right now and the company’s $400 million share buyback program, which is worth close to 10% of the whole company.
What everyday investors should think about
Both stocks still carry real risks. I think VF Corp’s debt is the bigger worry because higher current interest rates make it more expensive to pay off. The Vans comeback could also stall if the brand fails to win over more young buyers.
Kontoor has its own test too. Selling Lee and folding Helly Hansen into its outdoor business could take 12 to 18 months. If any issues occur during that period, it could affect the company’s profits. On top of that, the economy is prompting many shoppers to cut back on items like clothing, which could also hurt KTB’s near-term profits.
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