Top 12 Luxury Clothing Stocks to Buy According to Hedge Funds

5. Nordstrom, Inc. (NYSE:JWN)

Number of Hedge Fund Holders: 32

Nordstrom, Inc. (NYSE:JWN) offers luxury, private-label merchandise for women, men, and children, with a primary focus on apparel, beauty, shoes, accessories, home goods, and more items.

Nordstrom and Nordstrom Rack delivered a 4% comparable sales growth in fiscal Q3 2024, which supported the company in surpassing $3.3 billion in net sales for the quarter. Another driver of this momentum was its online business, which underwent more than 6% digital sales growth. Much of this growth was attributed to the newness Nordstrom, Inc. (NYSE:JWN) has introduced in its brands. Customers are increasingly relating to the company’s offerings, driving positive company net sales growth for the fourth consecutive quarter.

Nordstrom, Inc. (NYSE:JWN) has several primary priorities for the year to continue this positive momentum. These include operational optimization, Nordstrom banner growth, and continued momentum growth at Nordstrom Rack. Nordstrom, Inc. (NYSE:JWN) also made substantial progress in its supply chain, reducing operating expenses and expanding its focus to increasing speed. It is prioritizing quick order deliveries to its customers and is moving products efficiently through its network to provide freshness and relevance. For instance, the company’s initiatives for faster delivery of items and fulfillment drove an improvement of more than 40% in the speed of customer returns in fiscal Q3 2024.