In this article, we will take a look at the 5 best global luxury stocks to buy now. If you want to read our discussion on the luxury goods industry, go to the 11 Best Global Luxury Stocks to Buy.
5. PVH Corp. (NYSE:PVH)
Number of Hedge Fund Holders: 31
Dollar Value of Hedge Fund Holdings: $1,441,627,300
PVH Corp. (NYSE:PVH), previously known as the Phillips-Van Heusen Corporation, is a New York-based apparel company that owns luxury brands like Calvin Klein and Tommy Hilfiger. In an update issued to investors on June 1, Dana Telsey at Telsey Advisory Group reiterated a target price of $102 along with an Outperform rating on PVH Corp. (NYSE:PVH) stock.
Pzena Investment Management was the leading hedge fund investor in PVH Corp. (NYSE:PVH) during Q2 2023, with a stake of over $591.7 million.
Longleaf Partners shared its stance on PVH Corp. (NYSE:PVH) in its Q1 2023 investor letter. Here’s what the firm said:
“PVH Corp. (NYSE:PVH) – Apparel company PVH, which owns brands Tommy Hilfiger and Calvin Klein, was another strong performer in the quarter. PVH was a new purchase in 2022 when it was thrown out with industry weakness driven by inferior companies, and this was exacerbated when the company was kicked out of the S&P 500. CEO Stefan Larsson, whom we previously got to know at Ralph Lauren, is doing a great job streamlining the company and growing margins and FCF per share. Tommy Hilfiger and Calvin Klein are strong global brands, though they are not earning what they should in the US. The stock has significant additional upside from the current single-digit multiple of FCF power for a company that is relatively resistant to fashion trend risk with a management team that we believe will continue to deliver on operating margin growth from here.”
4. Capri Holdings Limited (NYSE:CPRI)
Number of Hedge Fund Holders: 37
Dollar Value of Hedge Fund Holdings: $389,488,600
Capri Holdings Limited (NYSE:CPRI) is another New York-based luxury fashion holding company on our list of the 11 best global luxury stocks to buy. The company owns luxury brands like Michael Kors, Versace, and Jimmy Choo and is focused on designing, manufacturing, and distributing high-end fashion products and accessories. Capri Holdings Limited (NYSE:CPRI) intends to revamp its 100 stores in the North American region in the coming years. Rima Senvest Management is the biggest hedge fund holder of Capri Holdings Limited (NYSE:CPRI) stock, with a stake of $102.8 million as of Q2 2023.
3. Tapestry, Inc. (NYSE:TPR)
Number of Hedge Fund Holders: 40
Dollar Value of Hedge Fund Holdings: $467,659,000
Tapestry, Inc. (NYSE:TPR) is a New York luxury fashion holding company with the ownership of renowned brands like Coach, Kate Spade New York, and Stuart Weitzman.
During the three months that ended on April 1, Tapestry, Inc. (NYSE:TPR) reported a 5% YoY increase in sales to $1.51 billion. The revenue growth was driven by the international segment, as the Chinese market reported a greater-than-anticipated recovery in sales by nearly 20%. Tapestry, Inc. (NYSE:TPR) also saw its net profit increase from $123 million a year earlier to $187 million. You can read Tapestry, Inc.’s (NYSE:TPR) Q4 2023 earnings call transcript here.
2. The Estée Lauder Companies Inc. (NYSE:EL)
Number of Hedge Fund Holders: 44
Dollar Value of Hedge Fund Holdings: $1,639,856,100
The Estée Lauder Companies Inc. (NYSE:EL) is a New York-based cosmetics company that was founded in 1946 and operates in the luxury segment of the beauty industry. Along with the namesake brand, some of the luxury brands under the company’s ownership are La Mer, Tom Ford, and Jo Malone London. The company is focused on developing anti-aging skincare products, as the market is expected to compound at an average rate of 7.5% and reach a size of $120 billion by the end of this decade.
Here’s what ClearBridge Investments said about The Estée Lauder Companies Inc. (NYSE:EL) in its Q2 2023 investor letter:
We have refreshed our whiteboard and will look to take advantage of such downside earnings revisions among early cycle recovery plays in industrials and consumer discretionary. We are targeting quality themes in the consumer space where estimates have been partly de-risked, similar to the scenario that prompted the purchase of The Estée Lauder Companies Inc. (NYSE:EL) in the fourth quarter. Such names should be well-positioned to deliver improved earnings on the other side of an eventual recession.
1. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 79
Dollar Value of Hedge Fund Holdings: $6,517,644,300
Tesla, Inc. (NASDAQ:TSLA) is an Austin, Texas-based luxury car brand founded by Elon Musk. Some of the luxury vehicle variants offered by Tesla, Inc. (NASDAQ:TSLA) are the Tesla Model S and Tesla Model X.
Earning recognition from Kelley Blue Book (KBB), the California-based vehicle valuation and automotive research corporation, Tesla, Inc. (NASDAQ:TSLA) secured the title of the best overall luxury brand in April 2023. On a global scale, Tesla, Inc. (NASDAQ:TSLA) is the leading seller of electric vehicles (EVs). The company delivered 1.3 million EVs in 2022, reflecting a YoY growth of 40%.
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