In this article, we will take a look at the top 5 luxury clothing stocks to buy. To see more such companies, go directly to Top 10 Luxury Clothing Stocks to Buy.
5. PVH Corp. (NYSE:PVH)
Number of Hedge Fund Holders: 37
New York-based PVH Corp. (NYSE:PVH) is behind some of the world’s most famous clothing brands, including Calvin Klein and Tommy Hilfiger. It also licenses top brands like Kenneth Cole New York and Michael Kors. PVH Corp. (NYSE:PVH) jumped last month after the company posted strong Q4 earnings and gave an upbeat guidance. PVH Corp. (NYSE:PVH) received bullish comments from several analysts after the quarterly report. UBS analyst Jay Sole said in his note that PVH Corp. (NYSE:PVH)’s CEO Stefan Larsson has “only just begun executing his plan to improve PVH’s profitability” and the analyst believes there are “major margin unlocks that will play out over the new few years.”
The analyst reaffirmed his Buy rating on PVH Corp. (NYSE:PVH) and a $92 price target.
Bank of America’s Christopher Nardone also gave positive comments on PVH Corp. (NYSE:PVH) with a $100 price target.
A total of 37 hedge funds tracked by Insider Monkey had stakes in PVH Corp. (NYSE:PVH) as of the end of the fourth quarter.
Longleaf Partners Fund made the following comment about PVH Corp. (NYSE:PVH) in its Q4 2022 investor letter:
“PVH Corp. (NYSE:PVH) – Apparel company PVH, which owns brands Tommy Hilfiger and Calvin Klein, is a new position that has quickly rebounded from 3Q lows after it was kicked out of the S&P 500 in September. The company reported solid revenue growth and increased guidance for the full year. PVH has repurchased shares at a 12% annualized pace, and both the CEO and CFO have bought shares personally in the second half, indicating their confidence in the company.”
4. Tapestry, Inc. (NYSE:TPR)
Number of Hedge Fund Holders: 38
The owner of Coach, Kate Spade New York and Stuart Weitzman, Tapestry, Inc. (NYSE:TPR) ranks 4th in our list of the top luxury clothing stocks to buy according to hedge funds. As of the end of the fourth quarter of 2022, 38 hedge funds tracked by Insider Monkey had stakes in Tapestry, Inc. (NYSE:TPR). The net worth of these hedge funds’ stakes was $559 million. The biggest stakeholder of Tapestry, Inc. (NYSE:TPR) was Aaron Cowen’s Suvretta Capital Management which owns an $83 million stake in the company.
Tapestry, Inc. (NYSE:TPR) is a strong dividend stock. Tapestry, Inc. (NYSE:TPR) made it to the list of dividend stocks shared by UBS earlier this year. The firm said that these dividend stocks were picked up by its machine learning model. UBS added that these stocks are based on “strong relative dividend growth prediction over the next 6 months according to our machine learning model.”
3. Capri Holdings Limited (NYSE:CPRI)
Number of Hedge Fund Holders: 53
Capri Holdings Limited (NYSE:CPRI) is behind some of the world’s most famous luxury brands, including Michael Kors, Versace and Jimmy Choo. Capri Holdings Limited (NYSE:CPRI) saw a huge rise in interest from hedge funds in the last quarter of 2022. Insider Monkey’s database of 943 hedge funds shows that 53 hedge funds had stakes in Capri Holdings Limited (NYSE:CPRI), compared to 44 hedge funds in the previous quarter. The collective value of these hedge funds’ stakes is $1.3 billion. The biggest stakeholder of Capri Holdings Limited (NYSE:CPRI) is Richard Mashaal’s Rima Senvest Management which owns a $391 million stake in the firm.
In February, Capri Holdings Limited (NYSE:CPRI) lost a lot of value after posting weak Q3 results. However, Citi said in a note that the selloff was overblown. While Citi’s Paul Lejuez acknowledged that the quarterly results and guidance cut were a “disappointment,” he believes the 25% decline in Capri Holdings Limited (NYSE:CPRI) price was “unwarranted.” The analyst thinks “Kors’ retail channel supports the underlying health of the brand.”
The analyst reaffirmed a Buy rating on Capri Holdings Limited (NYSE:CPRI) but cut his price target to $63 from $75.
2. Lululemon Athletica Inc. (NASDAQ:LULU)
Number of Hedge Fund Holders: 65
Lululemon Athletica Inc. (NASDAQ:LULU) is an athletic apparel brand. Some of Lululemon Athletica Inc. (NASDAQ:LULU)’s products are high-end and qualify the company to be included in the list of top luxury clothing brands. In 2019 Lululemon Athletica Inc. (NASDAQ:LULU) launched its luxury streetwear label called “Lab.” Lab products are usually priced 30% higher than existing Lululemon products.
As of the end of the last quarter of 2022, 65 hedge funds tracked by Insider Monkey reported having stakes in Lululemon Athletica Inc. (NASDAQ:LULU), up from 57 hedge funds in the previous quarter. The biggest stakeholder of Lululemon Athletica Inc. (NASDAQ:LULU) was Paul Marshall and Ian Wace’s Marshall Wace LLP which owns a $323 million stake.
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.”
You can also take a peek at 25 Highest Paying Jobs in the World and Top 50 Perfume Brands in the World.
