Top 11 Luxury Clothing Stocks to Invest in Now

3. LVMH (OTC:LVMUY)

Analyst Upside Potential as of September 12, 2024: 30.9%

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

Louis Vuitton-Moët-Hennessy (OTC:LVMUY), more commonly known as LVMH, is one of the largest luxury companies in the world, with a market cap of around 306.058 billion. This France-based luxury group operates in six segments: Fashion and Leather Goods, Wines and Spirits, Watches and Jewellery, Perfumes and Cosmetics, and Selective Retail and Other Activities. These sectors give the Group ownership of several globally popular luxury brands, including Louis Vuitton, Christian Dior, Givenchy, Moet & Chandon, Benefit Cosmetics, Bulgari, Chamet and Fred, Sephora, Miami Cruiseline, and several others. The Group also partakes in Other activities, including the acquisition of the Pendemonte Group, a notable jewelry producer, and arts brands such as Cheval Blanc and others.

The Group has around 75 brands and operates more than 6,000 stores. In the past years, much of the Group’s growth has stemmed from mainland China, primarily because of the emerging upper class in the country. In addition, it continues to increase its global reputation and presence with an increase in a culture of conspicuous consumption. It ranks third on our list of the top 11 luxury clothing stocks to invest in now.

Despite the uncertain economic and geopolitical environment, LVMH (OTC:LVMUY) remained resilient. It recorded revenues of €41.7 billion in the first half of 2024, experiencing a 2% organic growth over the period. The United States and Europe underwent growth on a constant currency basis and consolidation scope. Similarly, Japan experienced a double-digital revenue growth, with the rest of Asia reflecting strong growth in spending as well, primarily due to Chinese customers in Japan and Europe. The Japanese market, in particular, underwent exceptional growth because Chinese customers made purchases in Japan due to the weakening yen. Organic revenue growth for the Group in Q2 2024 stood at 1%.

LVMH (OTC:LVMUY) boasts a robust profitability model, which is further strengthened by the global reputation of its numerous brands. The Group’s profit from recurring operations reached €10.7 billion for the first half of 2024, significantly exceeding pre-COVID operating margins. Overall, the Group experienced strong resilience across its six segments, solidifying its position as a world leader and highlighting its long-term roadmap for profitability. It also experienced a significant increase in its operating free cash flow, which exceeded €3 billion.