15 Most Valuable Clothing Companies in the World

Published on March 13, 2023 at 10:03 am by Sheryar Siddiq in Lists, News

In this article, we discuss the 15 most valuable clothing companies in the world. If you want to read about some more clothing companies, go directly to the 5 Most Valuable Clothing Companies in the World.

After experiencing 18 months of robust growth (early 2021 through mid-2022), the clothing industry faces a challenging climate once again. Hyperinflation and depressed customer sentiments had already resulted in declining growth rates in the second half of 2022, and a slowdown is likely to persist this year. The Russia-Ukraine war has disrupted the chances of global economic recovery from the COVID-19 pandemic, at least in the short term. This has led to economic sanctions on multiple countries, a steep rise in commodity prices, and supply chain disruptions, thus causing inflation across goods and services.

According to a survey conducted by McKinsey, a global management consulting firm, clothing companies are anticipating a spike in their costs on account of inflation, with 97 % of surveyed executives forecasting that their cost of goods sold and selling, general and administrative (SG&A) expenses will rise in 2023. Cotton and cashmere prices, for example, have increased 45% and 30% year-on-year, respectively. The fashion market, excluding the luxury sector, will struggle to deliver significant growth in 2023. McKinsey’s analysis of fashion forecasts projects relatively slow sales growth of between –2% and +3%, weighed down by a contraction in the European market. China and the United States, on the other hand, are expected to fare better.

The clothing industry, also known as the apparel market, includes clothing ranging from sportswear to business wear to daily wear to luxury products. The pandemic has acted as a massive restraint on the apparel manufacturing market in 2022 as supply chains were disrupted due to trade restrictions and consumption declined due to lockdowns imposed by governments globally. Despite this, the global clothing market has endured relatively better compared to other industries, growing from $610.12 billion in 2022 to $652.94 billion in 2023. In terms of future outlooks, the market is further expected to grow to $830.69 billion in 2027 at a CAGR of 6.2%. In global comparison, the United States led the charge with $343.70 billion in revenues. With intense competitive rivalry in the industry, leading companies have continued to provide product differentiation with a dynamic approach to meet the changing trends. Additionally, the increasing demand for online shopping is expected to help the apparel manufacturing market grow.

15 Most Valuable Clothing Companies in the World

Photo by Keagan Henman on Unsplash

Our Methodology

To come up with the 15 most valuable clothing companies in the world, we used stock screeners to identify the biggest clothing companies by market capitalization. The list not only consists of pure play clothing companies, it also includes companies that are part of the apparel industry, namely clothing retailers, as well as companies whose product portfolios make them a part of other related industries as well, including sports.

15. American Eagle Outfitters, Inc. (NYSE:AEO)

Market Capitalization as of March 2: $2.68 billion

American Eagle Outfitters, Inc. (NYSE:AEO), also known as American Eagle, is an American lifestyle, clothing, and accessories retailer headquartered at SouthSide Works in Pittsburgh, Pennsylvania. Boasting fashionable, quality designs with comfort and affordability in mind, American Eagle Outfitters, Inc. (NYSE:AEO) is a power player in the fashion industry whose merchandise is considered “retro/vintage” cost-efficient clothing. According to the company’s Q3 2022 earnings call, American Eagle’s revenue of $1.2 billion was its second highest third quarter in history while its operating profit of $118 million exceeded the third quarter of 2019.

Speaking on the company’s prospective growth, Jay Schottenstein, Executive Chairman and Chief Executive Officer, stated that:

I remain also excited about the potential for Quiet. As we evaluate go-forward plans, we are exploring different options to support future growth. Overall, our third quarter was a strong step in the right direction, yet we remain highly focused on driving further improvement. In an uncertain macro environment, we are leveraging the strength of our operations to control what we can and best position ourselves to respond effectively to changing macro conditions. As the supply chain environment continues to normalize, we are using this to our advantage. We are planning inventories tightly and exercising our capabilities to chase into demand. At the same time, we are also reducing expenses and capital expenditures with a firm focus on improving the bottom line and driving stronger free cash flow.

14. The Gap, Inc. (NYSE:GPS)

Market Capitalization as of March 2: $4.67 billion

The Gap, Inc. (NYSE:GPS), commonly known as Gap Inc. or Gap, is an American worldwide clothing and accessories retailer that was founded in 1969 by Donald Fisher and Doris F. Fisher. Operating four primary divisions: Gap, Banana Republic, Old Navy, and Athleta, the company merchandises apparel, accessories and personal care products for men, women and children through its retail stores, franchised stores, and e-commerce portals. Operating of 2835 stores worldwide, the clothing retailer had net sales amounting to about $16.67 billion in 2021. This represented an increase of more than $2.5 billion when compared to the previous year.

13. Skechers U.S.A., Inc. (NYSE:SKX)

Market Capitalization as of March 2: $7.13 billion

The third largest footwear brand in the United States, Skechers U.S.A., Inc. (NYSE:SKX) is an American multinational footwear company. Focused on trendy, casual styles aimed primarily at men and women from the ages of 19 to 40, the company designs and markets more than 900 different styles of shoes, which are sold in major department stores such as Macy’s and Nordstrom alongside 38 of the company’s own freestanding boutiques. In 2022, the global net sales of Skechers amounted to approximately $7.4 billion, marking an increase of approximately $1.1 billion from the previous year.

12. Ralph Lauren Corporation (NYSE:RL)

Market Capitalization as of March 2: $7.81 billion

Ralph Lauren Corporation (NYSE:RL) is an American publicly traded fashion company that was founded in 1967 by American fashion designer Ralph Lauren. The company is headquartered in New York City, producing products ranging from the mid-range to the luxury segments. The company is a global leader in the design, marketing and distribution of premium lifestyle products in five categories: apparel, footwear & accessories, home, fragrances and hospitality. The company’s revenue amounted to $6.2 billion in the financial year that ended April 2022. This was a significant increase compared to the previous year when many fashion and clothing companies suffered financial losses in the wake of the pandemic.

According to Jane Nielsen, the company’s Chief Operating Officer and Chief Financial Officer:

Exiting the quarter, we continue to leverage the strength of our balance sheet, which has served us well through times of uncertainty. We believe our elevated brand, clear strategy and targeted investments combined with our culture of operating discipline and fortress foundation enablers, put us in a position of strength to continue to drive long-term value creation. Let me take you through our third quarter financial highlights. Total company revenues increased 7% in constant currency, above our low to mid-single-digit outlook, led by double-digit growth in Asia and Europe. Guidance and results included a timing shift with the week between Christmas and New Year’s moving back into the third quarter from the fourth quarter last year due to the 53rd week in fiscal ’22.

11. Tapestry, Inc. (NYSE:TPR)

Market Capitalization as of March 2: $10.36 billion

Originally named Coach, Inc., Tapestry, Inc. (NYSE:TPR) is an American multinational luxury fashion holding company that designs, develops, and sells a range of fashion products, including handbags, accessories, and apparel, and it operates a number of retail stores and e-commerce websites around the world. Founded in 1941 and based in New York City, the company’s portfolio of brands includes Coach, Kate Spade, and Stuart Weitzmanm, with the former raking in around $4.9 billion in net sales for the fiscal year 2022.

Speaking on the Tapestry, Inc. (NYSE:TPR)’s Q3 2022 financial results, Scott Rowe, the company’s Chief Financial Officer and Chief Operating Officer, stated that:

We delivered solid results in the face of a volatile backdrop as we focused on the factors within our control. We achieved revenue of over $2 billion, while realizing the operating margin ahead of expectations and grew earnings per share 10% against last year, excluding $0.11 of currency pressure. At the same time, we returned $272 million to shareholders, demonstrating our commitment to enhancing long-term value. Turning to the details of the quarter, I’ll start with revenue, which will be shared on a constant currency basis, unless otherwise noted. Sales declined 2%, which included pressure in Greater China as a result of the COVID-19 pandemic. Excluding Greater China, revenue increased 1%, led by outperformance in the balance of our international regions.

10. H & M Hennes & Mauritz AB (STO:HM-B)

Market Capitalization as of March 2: $18.37 billion

H & M Hennes & Mauritz AB (STO:HM-B), also known simply as H&M Group, is a multinational clothing company based in Sweden that focuses on fast-fashion clothing for men, women, teenagers, and children. It comprises the fashion brands H&M, COS, Weekday, Cheap Monday, & Other Stories, and Monki, in addition to the H&M Home brand. In 2021, H & M Hennes & Mauritz AB (STO:HM-B) total sales amounted to around $22.04 billion, with Europe being the company’s biggest market.

9. adidas AG (ETR:EDS)

Market Capitalization as of March 2: $27.45 billion

adidas AG (ETR:ADS) is a German multinational corporation, founded and headquartered in Herzogenaurach, Bavaria, that designs and manufactures shoes, clothing and accessories. It is the largest sportswear manufacturer in Europe, and the second largest sportswear brand in the world, after Nike. The company’s global net sales amounted to about $22.29 billion in 2021, signifying an increase on the prior year, which saw lower sales caused by the pandemic.

8. Lululemon Athletica Inc. (NASDAQ:LULU)

Market Capitalization as of March 2: $39.77 billion

Founded in 1998, Lululemon Athletica Inc. (NASDAQ:LULU) is a Canadian athleisure company that designs, develops, and sells a range of athletic apparel, footwear, and accessories. From signature fabrics, to hidden pockets and reversible styles, the company boasts a variety of sports clothing products with cleverly incorporated features. Although the company is predominantly known for its up-market women’s leggings and yoga pants, Lululemon Athletica Inc. (NASDAQ:LULU) also markets a menswear range, swimwear goods, and yoga equipment. The company’s revenue has been growing steadily with each consecutive year since 2008 and reached approximately $6.3 billion in 2021, a jump of nearly two billion compared to the previous year.

7. Kering SA (EPA:KER)

Market Capitalization as of March 2: $74.42 billion

Kering SA (EPA:KER) is a French-based multinational corporation specializing in luxury goods that started out in 1962 as a wood trade negotiator under the name Etablissements Pinault, after the owner François Pinault. The company designs, develops, and sells a range of high-end fashion products, including clothing, footwear, and accessories, and operates a number of retail stores and e-commerce websites around the world. A global leader in luxury goods, Kering owns the brands Balenciaga, Bottega Veneta, Gucci, Alexander McQueen and Yves Saint Laurent, with the Gucci brand generating a global revenue of about $11.14 billion in 2022.

6. The TJX Companies, Inc. (NYSE:TJX)

Market Capitalization as of March 2: $88.64 billion

The TJX Companies, Inc. (NYSE:TJX) is an American multinational off-price department store corporation, headquartered in Framingham, Massachusetts. It was formed as a subsidiary of Zayre Corp. in 1987, and became the legal successor to Zayre Corp. following a company reorganization in 1989. Boasting more than 4,500 stores in nine countries, and it is the largest off-price retailer in the U.S. and worldwide, with merchandise including clothing, footwear, bedding, furniture, jewelry, beauty products, and housewares. In the fiscal year ended January 29, 2022, The TJX Companies, Inc. (NYSE:TJX) generated net sales of approximately $48.55 billion, up from about $32.14 billion registered a year earlier.

In its Q4 2022 Earnings Call, Ernie Herrman, Chief Executive Officer and President of The TJX Companies, Inc. (NYSE:TJX) said:

Unfortunately, we had an outsized shrink charge in the fourth quarter that resulted in pretax profit margin coming in below our plan. For the full year, total sales were nearly $50 billion. Profitability improved over last year, and adjusted earnings per share grew 9%. I want to again recognize all of our talented associates around the world for the excellent execution of our flexible off-price business model throughout the year. Their collective efforts drove outstanding value on our assortment, excitement in our stores and the satisfaction of our customers. Moving to 2023, the first quarter is off to a strong start. We are excited about our plans to drive sales and customer traffic and are laser-focused on initiatives to drive profitability this year and beyond.

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