CNBC's Jim Cramer said Thursday that investors looking beyond the struggling artificial intelligence trade should consider apparel stocks VF Corp and Kontoor Brands.

VF Corp is the parent company of Vans, The North Face and Timberland. Kontoor, which actually spun out of VF Corp in 2019, is behind the Wrangler, Lee, and Helly Hansen brands.

The recommendations come at an unlikely time for consumer stocks, with rising interest rates and oil prices threatening to squeeze household budgets. "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," Cramer said. "I think the environment's baked in."

Cramer also said compelling new research suggests shifting fashion trends could breathe new life into both companies, creating buying opportunities that investors may be overlooking. "These upgrades have changed my mind about VF Corp and Kontoor," he added. "Down here, I think both stocks are buys."

Truist and Piper Sandler both raised their ratings on VF Corp to buy — and coincidentally, both shops set $20 price targets, implying roughly 17% upside to Thursday's close.

Cramer was particularly encouraged Tuesday by Piper Sandler's note, which accompanied the firm's fall teen survey. The readthrough on what young consumers like showed a growing interest in non-athletic footwear. That could be welcome news for Vans, whose sales have declined for four consecutive fiscal years, including double-digit drops in each of the past three.

Piper Sandler's survey offered signs that Vans may finally be stabilizing — ranking as the seventh-most-popular footwear brand among male teens after years of sinking in the rankings and climbing to ninth among upper-income male teens. The struggling skateboarding sneaker brand has been the biggest obstacle to VF Corp's turnaround under CEO Bracken Darrell, who took over in July 2023. Vans' sales have dropped nearly 50% since fiscal 2022, while The North Face and Timberland have performed considerably better.

Speaking of those other brands, Timberland entered the top 10 footwear brands among upper-income teens for the first time in the survey's history, while The North Face returned to the top 10 athletic clothing brands among that group. "If the teen survey says buy VF Corp, then I have to say [buy, buy, buy]," the "Mad Money" host said.

Truist similarly expects Vans to benefit as consumers shift away from athletic footwear toward more fashion-oriented styles. With VF Corp trading at roughly 16 times 2027 earnings estimates, Cramer said that "if Vans is finally improving, then this one's definitely a winner."

As for Kontoor, Jefferies upgraded the stock to buy from hold and raised its price target to $89, implying 22% upside from Thursday's close.

The analysts argued that a recent resurgence in denim popularity could prove to be a lasting shift. They identified Kontoor as one of two biggest potential beneficiaries, with Wrangler well positioned to capitalize on the trend.

According to Jefferies, Kontoor's planned $400 million accelerated share repurchase program provides another reason to like the stock. The buyback represents roughly 10% of the company's market cap.

Cramer also highlighted Kontoor's acquisition of Helly Hansen last year as an underappreciated growth opportunity. The outdoor apparel brand should become a larger part of the company's business once Kontoor completes its planned sale of denim brand Lee to Authentic Brands. The deal, valued at up to $1 billion, was announced in May and is expected to close later this year.

With Kontoor trading at roughly 14 times 2026 EPS estimates, Cramer said the stock offers an attractive way to capitalize on the denim revival without paying a premium valuation. "That's a smart investment," he said.

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