Top 5 Luxury Clothing Stocks to Buy

1. NIKE, Inc. (NYSE:NKE)

Number of Hedge Fund Holders: 71

NIKE, Inc. (NYSE:NKE) offers a variety of high-end products targeting wealthy customers. NIKE, Inc. (NYSE:NKE)’s management recently said it plans to continue targeting Generation Z customers in China. These young customers usually come from wealthy backgrounds and NIKE, Inc. (NYSE:NKE) has seen a strong response to its high-end products from this demographic, despite rising inflation. NIKE, Inc. (NYSE:NKE) is one of the most popular luxury clothing stocks among the elite hedge funds tracked by Insider Monkey. As of the end of the fourth quarter, 71 hedge funds reported owning stakes in NIKE, Inc. (NYSE:NKE). The biggest stakeholder of NIKE, Inc. (NYSE:NKE) was Terry Smith’s Fundsmith LLP which owns a $787 million stake.

ClearBridge All Cap Growth Strategy made the following comment about NIKE, Inc. (NYSE:NKE) in its Q4 2022 investor letter:

“NIKE, Inc. (NYSE:NKE) has been pressured by an uneven global recovery that led to surplus inventory. We added to the position earlier in the year with the view that its inventory write-down should not derail the company’s long-term high-single-digit revenue growth or the margin expansion from its enhanced focus on the direct-to-consumer business. While near-term earnings estimates may have some risk, much of the multiple contraction is in the current value of Nike shares and sentiment has shifted, with the shares bouncing 40% higher during the quarter. Netflix is another earnings reset name that has taken decisive actions, developing an ad-supported subscription tier and cracking down on password sharing, that have helped its shares rerate strongly.”

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