Top 11 Luxury Clothing Stocks to Invest in Now

8. Hermes (OTC:HESAY)

Analyst Upside Potential as of September 12, 2024: 17.44%

No. of Hedge Funds as of Q2 2024: N/A

Hermes (OTC:HESAY) is a France-based company that specializes in the design, manufacture, and marketing of luxury products. It operates its business through multiple segments, including Leather and Saddler, Ready-to-wear and Accessories, and Other Hermes, which includes jewelry and Hermes home products. The Other product segment also includes production activities that are held on behalf of non-group brands, as well as the John Lobb, Puiforcat, Saint-Louis, and Shang Xia products. It also manufactures the globally popular Birkin bags, which are not put on display in its stores and are only available to an elite segment of its consumers. Although the company is centered in France, Hermes International SCA manages operations in other countries in Europe, Asia, and the Americas, among others.

It recently reopened its renovated store in Melbourne, Australia, along with a renovated and expanded store in Nantes, an expanded store in Hong Kong, and a new store in Mitsukoshi Ginza, Tokyo, between June and September 2024. Hermes (OTC:HESAY) also reinforced its position in Mumbai, India, by opening a new store in April. Since the beginning of 2024, the company has regularly expanded its market presence by opening new stores and renovating and expanding previously existing ones.

Hermes (OTC:HESAY) is also continuing to invest in its production capacity, highlighting its strong plans for growth and increased profitability. On September 13, the company inaugurated its 23rd leather goods workshop in a completely renovated industrial heritage building in Riom, France, creating 280 local jobs in the process.

According to its half-year 2024 report, the Group’s consolidated revenue reached €7.5 billion, growing by 15% at constant exchange rates. All geographical areas experienced double-digital growth. Asia, excluding Japan, underwent a 10% growth in all countries of the region, while the Americas and Europe, excluding France, experienced growth of 13% and 18%, respectively. Japan’s local clients led a 22% growth, while France’s reached 15% due to customer loyalty and dynamic tourist flows.

Sales in the second quarter reached €3.7 billion, growing 13% at constant exchange rates and showing the company’s increasing profitability. Despite the challenging macroeconomic conditions, the loyalty of customers worldwide drove momentum across all regions except Asia, which was affected by an inflection in Greater China’s traffic. Hermes (OTC:HESAY) has a unique business model and is pursuing its long-term development strategies that build on maintaining control over know-how and boosting creativity. The stock ranks 8th on our list of the top 11 luxury clothing stocks to invest in now.