Fashion stocks can be one of the most challenging. This is mainly due to the fact that fashion styles are constantly rising and falling.
The brand, which today is considered the pinnacle of coolness, may be obsolete in a year. On the other hand, a company that has been written off for years as an antique can suddenly be considered retro-great by a young demographic.
In addition, clothing is unique in that it is a “substantial good” and is considered a status symbol. All needs: buy clothes, but some people end up spending a lot more than others.
As a result, it is difficult to predict clothing trends when events such as the COVID-19 epidemic occur. Will people cut back on their clothing costs to save money? Or will they treat themselves to new comfortable shoes that they will wear at home instead?
With all that said, let’s take a look at the top four fashion buying stocks. There are several reasons why these should be considered…
OE SHADROTYON. I’m not a financial advisor և I just offer information և comments. Please make a diligent effort before making a decision.
The best fashion stocks to buy
Nike (NYSE: NKE)
“What is Nike?” This is not a question you will ever really hear someone ask. Nike, unfortunately, is not the first company that comes to mind when you think of the words “fashion stocks”. But there is no doubt that “sports” (sports-entertainment) has become a fashion style for many. This is especially true in today’s world of remote work in the face of the “one more quarantine” threat, which is always in the corner.
Despite dominating the sportswear industry with about $ 45 billion in revenue, Nike is still growing at an impressive annual rate. Over the past 13 years, earnings per share (EPS) have grown by an average of 16.9% per year.
Nike Swash alone is valued at more than $ 32 billion by 2020. If you have any doubts about Nike as the best-selling stock of fashion, all you have to do is visit any shoe reselling site. Some sell thousands of Nike sneakers.
The stock of these garments was hit hard at the beginning of the COVID-19 crisis, but gathered until 2020. It has also grown by about 20% year-on-year.
Louis Vuitton (OTC: LVMUY)
Note: This stock is traded on the Paris Stock Exchange, so you need an international account to buy it directly. You can also buy shares LVMUY ADR:which: traces stock price.
The second company on this list of fashion stocks is Louis Vuitton Moët Hennessy. If you are unfamiliar with LVMH, most of the luxury brands you know belong to a number of brands. Its range includes cosmetics, jewelry, fashion: alcoholic beverages. Some of their biggest brands are Dom Perignon, Christian Dior, Fendi, Marc Jacobs, Rihanna’s Fenty Beauty, Tag Heuer, Hublot and of course Louis Vuitton. In total, he owns about 60 brands.
It is no secret that the bank accounts of the richest people in the world have grown over the past year. The inequality program estimates that the world’s 2.365 billionaires will earn $ 4 trillion in 2020.
Over the next few months or years, these billionaires will look for places to spend their newly discovered wealth. And when they do, they can turn to LVMH products. Because the profitability of luxury items is unbelievably high, this increase in costs may increase the LVMH finish line.
Whether this luxury stock epidemic hit the beginning of the epidemic has shown that 2020 is over. It has also increased by more than 20% annually.
Lululemon (Nasdaq: LULU)
One third of the best fashion stocks to consider is another sports company, Lululemon. It was a surprise beneficiary of the epidemic. Since everyone stayed at home most of the year, many preferred Lululemon’s comfortable workout outfit to khaki or jeans. This led to a 92% increase in Lulu online sales in the fourth quarter of 2020.
Lululemon’s business has been growing steadily for years. Its revenues have grown by an average of 16% per year over the past five years (even taking into account the epidemic).
In addition, while Lululemon has traditionally been more “free” than “athlete”, it is beginning to alienate athletes from competitors like Nike. Olympic runner Colin Quigley is one of the athletes who recently jumped from Nike to Lululemo. He said that Lululemon values himself more as a person, not just as a deal.
This clothing fund also invests in environmental, social management (ECG) projects. This is something that more and more investors are paying attention to. To do this, they recently invested in Genomatica to create vegetable nylon for their clothing.
By 2020, Lululemon was enjoying about 50% of the race, up from about 15% so far.
Tapestry (NYSE: TPR)
The ultimate selection of the best fashion stocks to buy is Tapestry. He owns the coaches, Kate Spade and Stuart Weitzman. Prior to the epidemic, tapestry was reported to have seen steady annual revenue growth. However, the stock of these garments has definitely had some high և low prices over the last decade.
The main story of Tapestry right now is the potential revival of its Coach brand. Champ’s just like Champion shirts were $ 10 at Walmart, but now at $ 45 at Urban Outfitters, Coach bags can go through the same transition.
Coaches’ handbags used to be incredibly popular, but in recent years they have ceased to be recognized. However, it seems that the tide is turning again.
To prove it, we need to look at social media, where the hashtag #CoachComeback is trendy. The hashtag has become a trend on TikTok, where it has been used in less than 80,000 videos. Users create videos praising the brand new handbags. These videos have received hundreds of thousands of likes and thousands of comments.
Tapestry has already reported a strong increase in sales after the epidemic. As a result, its reserves are about 30% per annum. If the coach really comes back, it could be a huge tailgate for Tapestry sales.
I hope you enjoyed this short list of fashion stocks that you should consider adding to your portfolio. If you are looking for more investment opportunities, consider some of these areas և some of the shares…
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About Teddy Stavetsky
University of Miami graduate Teddy studied marketing and finance while playing for a football team for four years. He has always had a business passion, using his experience in several personal projects to become one of the top business rankings on Fiverr.com. When he does not tap the words on the paper, you may find that he plays the piano or travels randomly.