Top 11 Luxury Clothing Stocks to Invest in Now

5. Burberry Group (OTC:BURBY)

Analyst Upside Potential as of September 12, 2024: 26.07%

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

Burberry Group (OTC:BURBY) is a UK-based global luxury goods manufacturer, wholesaler, and retailer. The company also licenses third parties to manufacture and distribute products using the Burberry trademarks. Burberry’s (OTC:BURBY) segments include retail/wholesale and licensing. The retail/wholesale segment specializes in luxury goods sales through Burberry mainline stores, outlets, concessions, and digital commerce, along with multi-brand specialty accounts, Burberry franchisees, and department stores worldwide. The company’s Licensing segment includes royalties from global licensees of eyewear, beauty products, and non-Burberry Japanese trademarks.

Burberry Group (OTC:BURBY) manages the flow of its global product between wholesale and retail channels and its retail region by monitoring and optimizing it at the corporate level. It implements the flow through the company’s inventory hubs, which are situated in the United States, Europe, mainland China, Special Administrative Regions of China, and Hong Kong.

The company is operating against a backdrop of dwindling demand for luxury goods and is impacted by macroeconomic uncertainty. However, it holds the potential to bounce back, with 422 directly operated stores and continuous growth plans. While the Chinese customer group fell in the high teens in Q1 fiscal 2025, it held up better than mainland China. Growth in Japan continued, driven primarily by nearshore Asian customers and strong tourism spending trends.

Burberry (OTC:BURBY) is now looking to make significant changes to drive growth. It is focusing on universal resonance, developing emotional connections with its previous and new customer groups. It is also expanding and enhancing its inclusive offering, with a clear focus on outerwear and other distinct market strengths. Burberry (OTC:BURBY) is also nurturing its customer base, maintaining relevance with fashion-forward customers. Its revenue has undergone an 8.19% compounded annual growth over the past three years. The stocks ranks fifth on our list of the top 11 luxury clothing stocks to invest in now.