Markus Andrews

Due to the federal government shutdown, the Social Security 2026 cost-of-living adjustment announcement has been pushed to Oct. 24.
Social Security is one of the few retirement income streams that comes with inflation adjustments.
Yet there’s a debate as to whether those annual changes could be more accurately calculated.

People shop in Bayonne, New Jersey on April 8, 2025.
Charly Triballeau | Afp | Getty Images

Social Security and Supplemental Security Income beneficiaries will soon find out how much their benefit checks will increase next year.
Due to the federal government shutdown, the Social Security 2026 cost-of-living adjustment announcement, initially scheduled for Oct. 15, has been postponed to Friday. Nearly 75 million beneficiaries will see the COLA reflected in their January checks.

Experts have estimated the Social Security COLA for 2026 may be in the range of 2.7% to 2.8%, based on the latest available consumer price index data. That’s in line with the long-term average. But for retirees and other beneficiaries who rely on their benefit payments to cover essential expenses, the size of the increase might not ease their struggle with higher prices.
“I just wish it would be more,” said Kathryn Bailey, 74, of Washington, D.C.

Bailey, a retired oncology researcher, remembers when the 8.7% cost-of-living adjustment was put in place in 2023 in response to the post-pandemic spike in inflation. That COLA set a four-decade record for the inflation adjustment.
The approximate $135 monthly increase Bailey received then “helped, but I used it all,” she said.
The projected increase for 2026 “won’t do anything,” she said, citing high health care, rent, food and other cost increases.

Retirees’ costs have outpaced inflation

Experts estimate the anticipated 2.7% to 2.8% possible increase for 2026 would add about $54 more to the average monthly retirement benefit check.
The size of the Social Security COLA is calculated each year based on the pace of inflation. So if the rate of inflation is higher, so is the COLA. And when inflation is lower, the annual adjustment is lower. In some years — most recently in 2016 — it has even been zero if there is no inflation increase from one year to the next.

Because the rate of inflation has come down in recent years, retirees and other Social Security beneficiaries have seen more modest cost-of-living adjustments. In 2024, the COLA was 3.2% and this year it was 2.5%.
The average COLA over the past 20 years has been 2.6%, according to The Senior Citizens League, a nonpartisan senior group.
The cost of retirement has outpaced inflation, according to recent research from Goldman Sachs Asset Management. While retirees’ spending increased at a 3.6% annual rate from 2000 to 2023, the consumer price index went up by 2.6% over that time, according to the firm.

While in recent years the pace of inflation has subsided overall from post-pandemic highs, some prices have stayed elevated.
The measurement used to calculate the COLA – the Consumer Price Index for Urban Wage Earners and Clerical Workers, or CPI-W – shows that year-to-date increases for certain categories like household energy, motor vehicle maintenance and motor vehicle insurance have outpaced the average.

COLA provides ‘significant increases’ over time

Yet some experts say the Social Security cost-of-living adjustment provides inflation protection that is difficult to match elsewhere.
“A 20% lift over four years is life changing, even though it might not match the economy itself,” David Freitag, a financial planning consultant and Social Security expert at MassMutual, said of the recent cost-of-living adjustments.
“These are significant increases that make a difference in people’s lives,” Freitag said.
Very few pension-type income streams offer similar types of annual adjustments, Freitag said. Annuities that offer similar features are “incredibly expensive,” he said.

Starting at age 62, the cost-of-living adjustments are built into benefits, Freitag said. Prospective retirees do not have to claim benefits then in order for those increases to be recognized in their benefit checks once they do eventually claim, he said.
The COLA plays a “crucial role” in helping retirement income keep pace with inflation and is a “lifeline of independence and dignity” for older Americans, AARP CEO Dr. Myechia Minter-Jordan said in a statement.
“Yet even with the COLA, 77% of older adults still face challenges covering basic expenses,” Minter-Jordan said, citing forthcoming AARP research.

Proposals suggest other ways to measure future COLAs

Some experts and advocates have questioned whether another formula would be better suited to measure the inflation retirees experience.
Advocacy groups including The Senior Citizens League have lobbied to have the measure for the COLA changed to the Consumer Price Index for the Elderly, or CPI-E. That index puts greater emphasis on categories like medical care, housing and recreation, according to the Bipartisan Policy Center.
Other proposals have called for changing the calculation to be based on the Chained CPI, which takes into account the substitutions consumers make in response to inflation, such as opting to buy chicken when beef prices rise.

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While Social Security’s chief actuary has estimated that using the CPI-E would increase future annual COLAs by about 0.2 percentage points, the Bipartisan Policy Center gauges that opting for the Chained CPI would reduce future annual COLAs by about 0.3 percentage points.
Increasing or reducing future COLAs would impact the solvency of Social Security’s trust funds, which already are projected to run out in 2034. At that point, 81% of benefits will be payable unless Congress enacts changes sooner, according to the latest annual report from Social Security’s trustees.
Another suggested change is limiting the size of the COLAs for individuals who receive the largest benefits. The Committee for a Responsible Federal Budget estimates that one model of such a proposal could close one-tenth of Social Security’s solvency gap while still providing full inflation protection for most beneficiaries.
D.C.-based retiree Bailey said she would like to see the COLA calculated another way to match the actual increases showing up in areas like health care, mortgage, rent and utility costs.
“I wish they would sit down and consider the percentage of things that have gone up,” Bailey said. More

As the government shutdown stretches on, some states have warned that they may need to suspend SNAP benefits.
Local food banks are often the next line of defense for families facing food insecurity.
But those nonprofit organizations are also struggling to access funding amid the ongoing partisan fight in Washington.

Some states have warned that families who rely on the Supplemental Nutrition Assistance Program, or SNAP, may soon miss out on benefits due to the federal government shutdown.
“Starting October 16, SNAP benefits will not be paid until the federal government shutdown ends and funds are released to PA,” according to a notice on Pennsylvania’s state website dated Oct. 17. The Texas Health and Human Services site notes, “SNAP benefits for November won’t be issued if the federal government shutdown continues past Oct. 27.”

Nevada, North Dakota, New Jersey and New York, among others, have issued similar announcements about potential delays or missed benefits.
A pop-up notice on New Jersey’s Department of Human Services site also noted that “it is unclear if SNAP benefits loaded on your Families First EBT card prior to October 31, 2025 will be able to be used after November 1, 2025.”
The SNAP program, formerly known as food stamps, is run by the U.S. Department of Agriculture and provides basic assistance to more than 40 million people. For families in need, local food banks are often the next line of defense. However, these nonprofits are also under pressure as federal funding remains on hold. For those families already stretched too thin, experts say, the gap could cause significant hardship.
The USDA did not immediately return a request for comment.

Read more CNBC personal finance coverage

Due to provisions in President Donald Trump’s “big beautiful” reconciliation package, the federal food stamps program was facing “the largest cut to SNAP in history,” according to the Center on Budget and Policy Priorities. Some of those benefit cuts and new eligibility requirements are already going into effect as states implement Trump’s legislation.

Those changes will cause 22.3 million families to lose some or all of their SNAP benefits, the Urban Institute, a nonpartisan provider of policy research, estimated in a July report.

Local food banks left to bridge the gap

Recent and upcoming cuts to SNAP, along with the current funding freeze as the shutdown stretches into the third week, put additional strain on local food banks and nonprofits, which are often needed to fill the gap in communities when federal assistance falls short.
Many of these organizations rely on federal grant aid to run their operations, and some of that funding is now delayed. Due to a lapse in appropriations, nonprofits are also facing a potential shortfall, said Sarah Saadian, senior vice president of public policy and campaigns at the National Council of Nonprofits, an industry association.
“The longer it continues, the harder it is for nonprofits to continue services in their communities,” Saadian said of the partisan battle in Washington. “Most nonprofits are small and have limited budgets that they stretch and try to make work; they are not sitting on a large cushion of resources.”

‘We may not be able to meet that emergency need’

At Michigan Community Action, which is an anti-poverty organization that supports food, transportation, child care and housing assistance agencies throughout the state, operations are in a “wait-and-see mode,” according to Brian McGrain, the executive director.
“If [SNAP] benefits go unfunded, where are people going to turn? We know that a wave could be coming and we may not be able to meet that emergency need,” McGrain said.
In Michigan, the prevalence rate of food insecurity in recent years has been about 13%, just above the national average of 12.2%. As with many local nonprofits, “we typically dip into our own emergency reserves, but if the shutdown continues, it’s going to be even more difficult,” McGrain said.

“The uncertainty around the SNAP benefits will continue to put a strain on our food banks,” said Kelley Kuhn, president and CEO of the Michigan Nonprofit Association. But it’s a “double whammy,” she added.
Organizations that address food insecurity will be “immediately impacted as a result of the government shutdown,” Kuhn said — just when there is “an increase in demand for those services.”
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The top five companies in the S&P 500 — all tech giants — now represent nearly 30% of the S&P 500, raising questions about true diversification.
Some investors view the AI concentration as a growth opportunity, while others see elevated risk in relying on so few companies.
Diversifying across company size, sectors and global markets can help mitigate the volatility tied to AI and big tech dominance.

If you own an S&P 500 index fund, artificial intelligence is already a major part of your investment strategy.
In recent years, the stock market’s gains have been fueled largely by a small group of tech giants that are aggressively investing in AI.

Nvidia, Microsoft, Apple, Google parent company Alphabet and Amazon — the five biggest names in the S&P 500 — now represent nearly 30% of the entire index. And that concentration is reshaping the way investors experience diversification.

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“Many people aren’t aware how their retirement portfolio performance or taxable account portfolio performance is really dependent upon the success of these five companies,” said certified financial planner Kamila Elliott, CEO of wealth management firm Collective Wealth Partners in Atlanta. She is also a member of the CNBC Financial Advisor Council.

‘Set-it-and-forget-it’ strategy is ‘no longer applicable’

For decades, investing in exchange-traded funds or mutual funds that follow the S&P 500 was seen as a relatively low-risk way to grow wealth over time. Market legends like Warren Buffett and Vanguard founder Jack Bogle famously endorsed “set-it-and-forget-it” strategies using low-cost index funds.
But that approach may not be as diversified as it once was.
“I think ‘set-it-and-forget-it’ is no longer as applicable,” said Elliott. “If your entire portfolio for retirement is in the S&P 500, regardless of what’s happening in the AI market, it really isn’t well diversified.”

“The S&P 500 is still diverse for sure,” said CNBC FA Council member John Mullen, president and CEO of Parsons Capital Management in Providence, Rhode Island. The firm ranked No. 1 on CNBC’s Financial Advisor 100 list for 2025.
“You still have 500 names that make up the index,” he said. “It is, however, much more concentrated than it has been throughout most of its history.”
That shift is largely due to the index’s structure. The S&P 500 is market-cap weighted, meaning companies with larger valuations carry more influence over the index’s performance. As stock prices for AI-linked companies soar, their market caps grow.
While some strategists see that trend as a potential risk to investors, others view it as an opportunity.
“I think tech continues to lead the market higher and that ultimately has really changed the game for investors,” said Dan Ives, managing director at Wedbush Securities.
“We’re living in a fourth industrial revolution, and I think the market is starting to reflect that,” Ives added. “It’s an exciting time to be an investor in U.S. tech.”
Watch the video above to learn how to navigate the S&P 500’s historic concentration in AI stocks and how you can diversify your portfolio. More

The Fed cut interest rates in September, and another cut is expected to follow later this month.
In a rate-cutting cycle, there are some moves investors can make to maximize returns, according to advisors on CNBC’s Financial Advisor 100 list for 2025.

Compassionate Eye Foundation/Steven Errico

The Federal Reserve cut its benchmark rate in September, and is now expected to announce two more cuts before the end of the year.
In prior rate-cutting cycles, there has been plenty of upside potential for investors to boost earnings and balance risk as the Fed adjusts its policy stance.

Still, “all in all this is a much different cutting cycle than what we saw in ’08 and ’09, or during Covid,” said Brian Brady, a certified financial planner and vice president at Obermeyer Wealth Partners, referring to the periods after the 2008 financial crisis and at the start of the 2020 pandemic when rates were rapidly slashed to near rock bottom. Obermeyer Wealth Partners ranked No. 13 on CNBC’s Financial Advisor 100 list for 2025.

The rate-setting Federal Open Market Committee has set a path for more reductions, but the scope remains unclear. At the same time, President Donald Trump has been highly critical of Fed policy, repeatedly suggesting that rates should be sharply lower.
While analysts expect cuts, it’s not a given that rates will continue to fall. Last week, Fed Chair Jerome Powell indicated that a softening labor market kept the door open to additional easing, but said it was “difficult” balance with inflation concerns still lingering.
“The Fed is cutting into a relatively strong underlying economy, but that can change,” Brady said. “We find all of this to be a balance of humility and optimism even in the face of uncertainty.”

The ‘sweet spot where bonds are attractive’

To that end, “investors can capture higher yields now but also not take undo risk,” he said.

On the fixed income side, that might include locking in U.S. Treasury bonds in “the intermediate range,” with maturities of three, five, and seven years, Brady said. “There is a sweet spot where bonds are attractive,” he said.

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Victoria Trumbower, a certified financial planner and managing member at Trumbower Financial Advisors in Bethesda, Maryland, which ranked No. 20 on this year’s CNBC’s FA 100, has a “very defensive” approach already in place with bond ladders, a strategy that entails holding bonds with staggered maturities to the end of their term.
In this case, Trumbower suggests an allocation of bonds with maturities between one and four years with rates in the 4% to 5% range, which she calls “bulletproof in terms of credit risk.”
However, “we are not trying to live on the interest component,” Trumbower said. “If rates go down, the rest of my portfolio can be invested in equities and assume risk.”

A well-diversified portfolio is key

When it comes to stocks, “we stay diversified across asset classes,” she said. “We don’t try to adjust the portfolio in terms of industry concentration.”
Although “small caps are starting to show signs of life” and “tend to do better in lower rate environments,” Trumbower said, “we are not loading up there.”
Maintaining a well-diversified portfolio takes discipline, she added. “You don’t know when the tides are going to turn and what’s going to outperform, you just want to be there when that happens — if you go chasing after the highfliers, it’s a losing battle.”
Disclosure: CNBC receives no compensation from placing financial advisory firms on our Financial Advisor 100 list. Additionally, a firm or an advisor’s appearance on our ranking does not constitute an individual endorsement by CNBC of any firm or advisor. More

As the government shutdown nears the three-week mark, federal student loan borrowers who can’t get help with their accounts at the Education Department have other options.
Borrowers can get assistance with their loan servicer, local organizations and possibly their state student loan ombudsman.

Fotostorm | E+ | Getty Images

As the federal government shutdown drags on, student loan borrowers may be worried about getting help with their student loans. But there are still resources available.
The stalemate over funding in Washington comes at a challenging time for the more than 40 million Americans carrying education debt.

President Donald Trump’s “big beautiful bill” phases out several affordable repayment plans and other relief options for borrowers. Staffing challenges and court orders have contributed to long waits for borrowers trying to access a new plan. The Trump administration has also resumed collection activity on student loan holders who fall behind on their bills, after a roughly five-year hiatus due to the Covid pandemic.
Even before the shutdown, student loan defaults have been mounting, and experts have said the current situation may exacerbate the problem.
While the Education Department is shuttered, here are some resources borrowers can turn to for assistance.

Visit Studentaid.gov for many services

Even during the government shutdown, the U.S. Department of Education may still be helpful. To reach the Federal Student Aid Information Center, you call 1-800-4FED-AID, or 1-800-433-3243.
“Some of the Federal Student Aid call centers are still operational as they are actually staffed by contractors rather than direct employees of the federal government,” said Nancy Nierman, assistant director of the Education Debt Consumer Assistance Program in New York.

At the Education Department’s Studentaid.gov, student loan borrowers can take many steps on their own, including applying for a new repayment plan or a loan consolidation and requesting debt cancellation, said higher education expert Mark Kantrowitz.

Read more CNBC personal finance coverage

Those pursuing Public Service Loan Forgiveness can still submit the form to verify their employment and get a pretty quick count of their qualifying payments, Nierman said. PSLF allows certain not-for-profit and government employees to have their federal student loans scrubbed after 120 payments.
But most loan forgiveness is on hold for now, she said, as the Education Department’s staff has to approve those requests.

Try your loan servicer for most requests

You can likely get most of your questions answered with your student loan servicer, Nierman said.
“Loan servicers are government contractors and have funding to keep operating during a shutdown,” Nierman said. “Billing, payments and processing of certain applications, such as forbearance and deferment, should continue as normal.”
If you don’t know which company is managing your student loans on behalf of the Education Department, you can find out at Studentaid.gov.

Other options for student loan help

Borrowers can look for organizations and nonprofits in their area that help people with student loan-related issues, consumer advocates said. For example, in New York, there’s EDCAP.
At the national level, there are groups like The Institute of Student Loan Advisors, a nonprofit offering advice and dispute resolution assistance. More

Many financial planners complete Roth individual retirement account conversions around year-end.
Roth conversions typically require precise current-year income projections to avoid possible tax consequences.
However, some advisors also recommend Roth conversions during periods of stock market volatility to reduce upfront taxes.

Prasit photo | Moment | Getty Images

As the calendar winds down, some investors may be eyeing Roth individual retirement account conversions, depending on long-term goals. Experts say there’s good reason that now is the season for Roth conversions, with some exceptions.
The strategy transfers your pretax or nondeductible IRA funds to a Roth IRA to kickstart future tax-free growth. But the trade-off is you’ll owe upfront taxes on the converted balance.

Roth conversions are popular among younger retirees because they can often convert funds in lower income tax brackets than during their working years. Plus, earnings are typically reduced for retirees before claiming Social Security and starting required withdrawals.
There’s a reason year-end Roth conversions are popular: The strategy requires precise current-year income estimates, which can be more difficult before the fourth quarter. Conversions also often involve multi-year tax projections.

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Tax uncertainty in 2025

Many provisions of the 2017 Tax Cuts and Jobs Act were initially set to expire at the end of 2025. That left investors unsure about future tax brackets before Republicans enacted President Donald Trump’s “big beautiful bill” in July.
And now, many financial advisors are watching as Congress debates Affordable Care Act health insurance subsidies amid the government shutdown. The outcome is important for younger retirees considering a Roth conversion, since more income can impact eligibility for ACA premium subsidies.
Plus, many investors are still waiting for estimates for year-end mutual fund distributions, which typically hit brokerage accounts in November or December. 

“This is why we do tax planning at the end of the year,” said Tommy Lucas, a certified financial planner at Moisand Fitzgerald Tamayo in Orlando, Florida. His firm is ranked No. 69 on CNBC’s Financial Advisor 100 list for 2025.

Some advisors argue it’s better to complete Roth conversions earlier in the year to start tax-free growth sooner. But others say early-year conversions can be a mistake before you have a solid estimate of current-year income. 
“You have no idea what’s going to happen before December,” Lucas said.
Incurring more income than expected can be an issue because it could trigger phaseouts of other tax benefits. 

Look for other Roth conversion ‘opportunities’

While many advisors wait until year-end for Roth conversions, there can be other times when the strategy makes sense, according to Tyson Sprick, a CFP and managing partner at Caliber Wealth Management in Overland Park, Kansas.
For example, some advisors leverage a market downturn to convert a smaller balance and pay less upfront taxes. Investors can then see tax-free growth in Roth accounts when the market recovers. 
Sprick’s firm used this strategy amid tariff volatility earlier in 2025. For certain clients, they used about half of the year’s projected Roth conversions budget when the market dipped, with plans to finalize the remaining 2025 conversions in December.
“While we’re certainly not market timers or advocates of getting too cute, there are opportunities throughout the year,” he said. More

The Trump administration has agreed to forgive student debt under income-driven repayment programs it had partially blocked.
The outcome is the result of an agreement between the American Federation of Teachers and the U.S. Department of Education.
More than 2.5 million borrowers are in either the original Income-Contingent Repayment plan or the Pay as You Earn plan, according to an estimate by higher education expert Mark Kantrowitz.

U.S. President Donald Trump speaks with Secretary of Education Linda McMahon during an executive order signing ceremony in the Roosevelt Room of the White House on July 31, 2025 in Washington, DC.
Anna Moneymaker | Getty Images

The Trump administration has agreed to cancel student debt under programs it had partially blocked, reopening a path to student loan forgiveness for millions of borrowers.
The outcome is the result of an agreement reached on Friday between the U.S. Department of Education and the American Federation of Teachers, a union.

In the agreement, the Trump administration said it will again process student loan forgiveness for eligible borrowers in two income-driven repayment plans — the original Income-Contingent Repayment plan and the Pay as You Earn plan — as long as those programs remain in effect.
President Donald Trump’s “big beautiful bill” will phase out ICR and PAYE as of July 1, 2028.

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“This is a tremendous win for borrowers,” said Winston Berkman-Breen, the legal director for Protect Borrowers, which served as the AFT’s counsel. “The U.S. Department of Education has agreed to follow the law and deliver Congressionally mandated affordable payments and debt relief to hard-working public service workers across the country.”
The Education Department did not immediately respond to a request for comment.
More than 2.5 million borrowers are in either ICR or PAYE, according to an estimate by higher education expert Mark Kantrowitz.

Why student loan forgiveness was blocked

The AFT, which represents some 1.8 million union members, filed a lawsuit against Trump officials in March, accusing them of blocking federal student loan holders from programs mandated in their original borrowing terms.
Earlier this year, the Trump administration had paused student loan forgiveness under some income-driven repayment plans, and said that it was doing so in response to court orders. IDR plans set a borrower’s monthly bill at a share of their discretionary income and cancel any remaining debt after a certain period, usually 20 years or 25 years.

The Education Department under Trump said that a court order that halted the Saving on a Valuable Education, or SAVE, plan — a Biden administration era program — had implications for other IDR plans.
Consumer advocates had argued that that was too broad a reading of the court order. And it left borrowers with just one repayment plan available that led to student loan cancellation: the Income-Based Repayment plan, or IBR. For a period, the Trump administration also paused IBR loan cancellation, though it has since resumed processing that aid.
In the agreement with the AFT, the Trump administration also clarified that borrowers who become eligible for student loan forgiveness in 2025 won’t owe federal taxes on the relief. A law that provides tax-free treatment on the federal level for canceled education debt expires at the end of this year. More

Comfort Colors has seen demand take off for its shirts in recent years.
The Gildan-owned brand is planning an expansion to other categories such as hats and bags.

Comfort Colors t-shirts are seen on Oct. 16, 2025.
Danielle DeVries | CNBC

When looking through Wyatt Cannon’s T-shirt collection, there’s a common theme: the Comfort Colors label.
Growing up, Cannon would often find Comfort Colors apparel when looking for souvenirs during family trips. In college, Cannon convinced his a cappella group to screen print on the company’s blank shirts. When the 24-year-old has made tie-dye T-shirts for himself, it’s with Comfort Colors product.

“I’ve loved this brand my whole life,” said Cannon, who estimates around half of his shirts are Comfort Colors. “This kind of material and texture and vibe of T-shirt should just be more of the standard.”
Cannon is part of a loyal and growing base of consumers driving demand for the half-century-old, Gildan-owned shirt brand. The label’s ballooning success in recent years can help explain Gildan’s stock outperformance and has led to plans for an expansion into additional product categories.

Comfort Colors t-shirts.
Courtesy: Watt Cannon

Gildan is tight-lipped about specific brand performance and declined to share Comfort Colors’ sales data with CNBC. But company executives have said Comfort Colors took off, especially over the last year, and has become a leading brand within Gildan, which also sells apparel under its namesake label and American Apparel.
“Comfort Colors is probably the fastest-growing fashion brand,” Glenn Chamandy, Gildan’s co-founder and CEO, said during a call with analysts earlier this year. “When you walk into a souvenir store today, you’ll see Comfort Colors on every single one of those tables where you used to see fashion brands before.”

‘Knocking it out of the box’

Gildan acquired Comfort Colors for around $100 million in 2015 in hopes of expanding within the basics category of North America’s printwear market, according to a press release announcing the deal. At the time, Gildan called the Vermont-based apparel maker “one of the most recognized brands” in places like college bookstores and resorts.

The brand publicizes that its shirts are 100% cotton from the U.S. Its “pigment pure” dyeing system creates the shirts’ “signature faded look” and requires less energy and water use than other comparable processes, Gildan says.
Comfort Colors’ popularity exploded in 2024 with around 40% year-over-year growth, company executives have said on earnings calls. That helped drive sales in Gildan’s broader activewear category up 6% in the same period.
Chamandy told analysts in late July that Comfort Colors is “knocking it out of the box again this year” and helped drive the activewear category up 12% in the second quarter. The brand is planning to expand into hats, bags and women-specific clothing in 2026 as it rings in its 50th anniversary, Howard Upchurch, marketing and merchandise chief at Gildan, said in a statement to CNBC.
Gildan, which announced earlier this year it was acquiring Hanesbrands as it further builds out its basic apparel business, is expected to report earnings at the end of this month.
U.S.-listed shares of Gildan, which is a Canadian-based company, have surged more than 175% over the last five years. That’s almost double the widely followed S&P 500’s return over the same period.

Stock chart icon

Gildan vs. S&P 500, 5-year chart

Though Gildan has touted Comfort Colors as a success story within its larger empire, consumers haven’t necessarily made the connection.
Cannon said he views Comfort Colors as “crunchy” and “granola,” while Gildan feels like the “peak of consumption capitalism.” The Connecticut-based marketing manager said Comfort Colors’ unique tag of woven fabric is one quality that makes the brand feel more “homey.”

A ‘good spot’

On Etsy, printers hawk Comfort Colors shirts with various designs and some even allow shoppers to upload their own. The brand has also gotten a boost from TikTok, where content creators share videos of their Comfort Colors products that viewers can purchase via the platform’s shopping feature.
Relative search volume for Comfort Colors in the U.S. spiked to all-time highs on Google this year, underscoring the brand’s growing awareness among consumers. On the other hand, Gildan has tumbled in search popularity from a peak in 2023.

Comfort Colors has amassed a “very loyal” base made up particularly of Gen Z customers, according to Sheng Lu, an associate professor at the University of Delaware whose research focuses on the apparel industry.
These young shoppers value comfort and vintage flair, both of which align with Comfort Colors’ products, Lu said. Comfort Colors’ emphasis on sustainability can also bode well with a customer base that’s conscious of their environmental footprint.
“This brand definitely is in a very good spot,” Lu said.
Comfort Colors’ rise is particularly interesting given that the brand focuses more on selling in bulk than directly to consumers, unlike other T-shirt makers like Nike, Lu said. He explained that since Comfort Colors is mainly selling product via middlemen who can screen print on them, the shirts end up appearing more unique — which is another desirable quality for Gen Z shoppers.
Behind the scenes, Gildan is likely benefiting from Comfort Colors’ sourcing in the Western Hemisphere, Lu said. While countries in this region have been hit by President Donald Trump’s tariffs, the levies have typically been less steep than those slapped on Asia, he said.
Because shoppers tend to view T-shirts as a staples, these items may show stability even when consumer sentiment falls, Lu said.

Frats to folk

Plus, across the country, Comfort Colors shirts are outfitting social groups and sitting on merchandise stands at events. Musical acts including Maggie Rogers and Mumford & Sons printed tour merchandise on Comfort Colors shirts. Brands ranging from Coors Light to Star Trek sell its apparel, as do local bars and eateries. Women’s soccer team Gotham Football Club has several official Comfort Colors spirit wear shirts.
When Chelsea Green opened The Yard Milkshake Bar, she already knew of Comfort Colors from seeing the brand on college campuses. She said it’s the most popular type of merchandise for The Yard Milkshake Bar, particularly with younger shoppers who are familiar the brand and sometimes use the shirts for sleepwear or as beach coverups.
“I knew that I had Comfort Colors T-shirts already in my closet,” Green said. “I was like, ‘that’s what I want.’ I didn’t even research it.”

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To be sure, Green acknowledged that the shirts can be pricier than some competitors’ and she at times ran into supply shortages during the Covid-19 pandemic. However, the color options and quality have made overcoming these obstacles worthwhile, she said.
Social organizations such as Cannon’s collegiate a cappella group have also turned to Comfort Colors. Similarly, fraternity Sigma Chi and sorority Pi Beta Phi each sell dozens of Comfort Colors shirts in their online shops.
On a fraternity-focused Reddit forum, a user asked what T-shirt brands people used for screen printing. One respondent said Comfort Colors is their “go-to.” Use Comfort Colors, another said, “or you’re at risk of getting tar and feathered.” More