Top US Publicly Traded Fashion Companies for Investing

If you're looking to invest in the fashion industry, there are several US publicly traded fashion companies worth considering.

Among the top contenders is Ralph Lauren Corporation, with a market capitalization of over $10 billion and a strong brand portfolio that includes Polo, Ralph Lauren, and Chaps.

Another notable player is PVH Corp., which owns Calvin Klein, Tommy Hilfiger, and Van Heusen, among other brands.

With a market capitalization of over $8 billion, PVH Corp. is a significant player in the US publicly traded fashion landscape.

Nike is a household name with a diverse selection of stocks to choose from, including its core Nike brand and other subsidiaries like Converse and Hurley. This strong brand recognition and customer loyalty can mean stable returns and dividends.

Some notable publicly traded fashion companies include Nike, Ross Stores, VF Corp, Tapestry, ASOS, JD Sports, lululemon athletica, Target, LVMH, and Inditex. These companies have a presence in various markets and offer a range of products, from athletic wear to luxury goods.

Here are some key statistics about these companies:

Nike is a household name and a leader in sporting apparel, with a strong brand recognition and customer loyalty that can lead to stable returns and dividends. Its growth has been impressive, with revenue and earnings continuing to increase, and it's even supplementing dividend payments with share buybacks.

One of the primary drivers of Nike's growth is its attempt to sell more goods directly to consumers rather than through a middle-man. This strategy has been successful, with Nike expecting digital sales to account for half of its total sales by fiscal year 2025.

Skechers is another athletic shoemaker that has struggled at the start of the pandemic but quickly rallied. The company is returning to producing double-digit percentage revenue growth and has been successful at increasing brand awareness outside of the U.S.

Lululemon athletica is a pioneer of sorts with women's yoga attire and has significantly helped to popularize athletic-inspired apparel for everyday wear. The company has been producing double-digit revenue growth and has even directly entered the fitness industry with its $500 million acquisition of the at-home health tech company Mirror.

Target is a fast-growing clothier that has seen its apparel sales soar in 2020 and is doing the same again in 2021. The retailer's shipping and delivery operations are a further differentiator, making it a successful player in the apparel industry.

Here are some US companies in the publicly traded fashion space:

LVMH is widely regarded as the leader in luxury, with a diverse portfolio of 75 brands including fashion houses Louis Vuitton and Givenchy.

Fashion and leather goods account for about 40% of LVMH's sales, making it a significant contributor to the company's revenue.

The US and Asia (excluding Japan) account for over half of LVMH's total sales, with the remaining revenue broadly split across other regions.

LVMH's revenue, margins, and profit have all increased over recent years, with the dividend increasing by €1 a year between 2016-2018.

Richemont is a diverse global group that makes most of its money selling jewellery and watches rather than clothing, with jewellery accounting for over half of its sales.

Cartier is one of the leading brands in Richemont's jewellery division, and Jaeger LeCoultre is a notable player in the watch market.

Richemont has seen significant growth in recent years, with its annual revenue increasing by over one-third in the year to the end of March 2019.

Kering is a luxury fashion group that has transformed itself over the past decade, with nearly two-thirds of its revenue now coming from Gucci. The company's revenue is broadly split between North America, Europe, and Asia.

Leather goods are the best-selling product for Kering, followed by shoes. Revenue in the first nine months of 2019 grew over 17% year-on-year, a significant increase.

Kering's dividend has grown steadily since 2013, with a 75% leap in its most recent financial year. The payout ratio remains at around 47%.

French firm Artémis, owned by François-Henri Pinault, the owner of Christie’s auction house, owns 40% of the business.

Investing in fashion can be a great way to diversify your portfolio, with the global fashion industry forecast to grow at an annual rate of around 11.5% to reach over $900 billion by 2023.

To invest in fashion stocks, you can open a share dealing account with a platform like IG, which allows you to trade CFDs or spread betting on the price of these stocks without taking ownership of the underlying asset.

You can also consider investing in exchange-traded funds (ETFs), investment trusts and funds, or index funds that allocate a significant portion of their portfolio to fashion stocks, providing broader exposure while also spreading out risk.

Some popular fashion stocks to watch include Ted Baker, The Buckle, and TJX Companies, which are part of the top 5 US fashion stocks, according to Statista.

Here are some alternatives to investing directly in individual fashion stocks:

Investing in luxury stocks can be a lucrative option for those who want to tap into the high-end fashion market.

High-end products that people want, not need, make up this sector. The fashion industry offers a variety of choices for investors, from luxury brands to budget-friendly retailers.

Some fashion companies are household names, enjoying widespread recognition and steadfast loyalty from customers. This brand strength translates into consistent sales or profit margins for these companies.

For example, luxury brands like Ted Baker and TJX Companies have a strong brand presence, which can lead to consistent sales and profit margins.

Investing in luxury stocks can provide exposure to global markets, offering potential protection against regional economic downturns.

Many fashion stocks, including luxury brands, pay dividends, providing a source of passive income for investors.

However, it's essential to remember that dividend payments are never guaranteed and depend on the performance of the business.

Some luxury companies have diversified from completely unrelated areas, like Primark-owner AB Foods or Marks & Spencer.

Investing in fashion stocks comes with its own set of risks. Trends dependency is a major concern, as companies that rely on specific trends can struggle once they fade.

Fashion spending often takes a hit during economic downturns, making non-essential fashion segments vulnerable to decreased sales.

Sustainability pressures are also a challenge for fashion brands, as they try to meet demands for more sustainable and ethical practices without losing value for their shareholders.

Some fashion stocks have pricing power, allowing them to raise prices in response to inflation, but this may not be the case for all companies.

Lower-end, budget options have fared well in recent years due to their ability to raise prices in response to inflation, but this may not be the case for luxury goods.

In 2024, lower inflation and lower interest rates could be beneficial for non-essential fashion stocks, but this is not a guarantee of success.

Always remember that investing in fashion stocks is a long-term game, and the value of your investments can go up and down.

The average dividend yield of 50 global apparel stocks is around 2.12%, according to a study released in early 2019 by the NYU Stern's School of Business. This can be a useful starting point for evaluating dividend yields in the fashion industry.

To find the best dividend yields, you'll need to compare the dividend yield of each stock with its share price. This is done by dividing the annual dividend by the share price and presenting it as a percentage.

The dividend yield varies wildly depending on the industry, so only compare yields with other fashion or clothing stocks. For example, if a stock has paid an annual dividend of £1 and has a share price of £100, then its dividend yield is 1%.

Here are some key statistics to consider when evaluating dividend yields in fashion stocks:

A good dividend yield is not the only factor to consider when evaluating fashion stocks. Cash generative stocks are also important, as they have a history of consistent payouts and a strong track record of paying dividends.

The largest clothing companies in the publicly traded fashion industry are truly massive.

VF Corporation, for example, is a global leader with over $11.8 billion in revenue in 2020, making it one of the largest clothing companies in the world.

The company's portfolio includes popular brands like The North Face, Wrangler, and Lee, which are known for their high-quality denim and outdoor apparel.

VF Corporation's success can be attributed to its diverse range of brands and its ability to adapt to changing consumer trends.

The largest clothing companies in the world are truly massive, with some having a presence in over 100 countries.

Inditex, the parent company of Zara, is the largest clothing company in the world by revenue, with sales of over $29 billion in 2020.

H&M, another well-known fast-fashion retailer, has over 5,000 stores in more than 75 countries.

Gap Inc. operates some of the most recognizable clothing brands in the world, including Gap, Banana Republic, and Old Navy.

VF Corporation, the parent company of Wrangler and Lee, has a portfolio of over 30 brands and generates over $11 billion in revenue each year.

Nike, one of the most valuable brands in the world, generates over $32 billion in revenue annually.

5 European clothing companies are among the largest in the world.

H&M, a Swedish company, has over 4,800 stores across the globe.

Inditex, the parent company of Zara, is headquartered in Spain and operates over 7,500 stores worldwide.

Zara's fast fashion business model allows it to quickly respond to changing trends and consumer demand.

Fast Retailing, the parent company of Uniqlo, is a Japanese company with a significant presence in Europe, operating over 2,000 stores across the continent.

Zara's global sales exceed those of H&M, making it the largest clothing company in Europe.

To invest in fashion stocks, you can choose a platform that suits your needs and open a share trading account. This will allow you to trade CFDs or spread betting on the price of these stocks, or even own the shares outright.

You can start trading by opening a live account with a reputable broker, such as IG. This will give you access to a wide range of fashion stocks and allow you to speculate on their future movement in share price.

To own the shares outright, you'll need to invest in fashion or clothing stocks, which means you'll benefit from any appreciation in the share price and any dividends that are paid. This is in contrast to trading, where you're speculating on the future movement in share price without actually owning the shares.

To get started, you'll need to open a share dealing account and fund it with money. You can then research and choose fashion stocks to invest in, using tools like company name or ticker symbol to find the best options.

Here are the basic steps to invest in fashion stocks:

By following these steps, you can become an investor in the fashion industry and potentially benefit from the growth and dividends of fashion stocks.