The jurie is till out on this point. I like the idea of going skyclad, or naked, but unfortunately I have not found any place here in the crowded Northeastern U.S. that is private enough for this. I think in an ideal Heathen society, its members should be free to walk around naked if they wish, but only if they have good-looking physiques. It would be a good, natural way for our healthiest young men and women to check out each other, and it would thus promote good eugenic mating to help improve the quality of our Folk. The Gods are still here with us in the present time.
Ritual garb is different to fancy dress.
I find a modest cape and hood suffices. However I don't wear these things all the time. One doesn't necessarily need the ritual garbs, but ritual tools I think are a must. I like to wear ritual garb because it makes me feel my authentic and more closely tuned in with less distraction when I am in my ritual space doing galdr, seidhr, blots, sumbles ect. Ofcourse you can always internalize the runes in the Armarnen style by visualizing the runes inside you from your head to your feet rather than wear the ritual garb, but that's your choice.