Top 5 Luxury Clothing Stocks to Invest in Now

3. Lululemon Athletica Inc. (NASDAQ:LULU)

Number of Hedge Fund Holders: 52

Lululemon Athletica Inc. (NASDAQ:LULU) is engaged in the design and distribution of luxury athletic apparel, footwear, and accessories. The stock is among the top luxury clothing stocks to invest in now. Lululemon Athletica Inc. (NASDAQ:LULU) has a consensus Buy rating among 17 analysts, and its average price target of $487.81 implies an upside of 33.46% from current levels, as of April 24.

In the fourth quarter of 2023, 52 hedge funds held positions in Lululemon Athletica Inc. (NASDAQ:LULU), and their stakes amounted to $1.339 billion. D E Shaw is the most dominant shareholder in the company and has a position worth $306.97 million, as of December 31, 2023.

Ithaka Group stated the following regarding Lululemon Athletica Inc. (NASDAQ:LULU) in its first quarter 2024 investor letter:

“Lululemon Athletica Inc. (NASDAQ:LULU) is principally a designer, distributor, and retailer of healthy lifestyle inspired athletic apparel. It‘s moat is almost entirely based on its intangible brand asset. Of late, the company has benefited from both the longstanding athleisure fashion trend and the more recent pandemic-induced, work-from-home trend toward more casual attire. Approximately 45% of sales are generated across ~700 company-owned stores, 45% of sales (and growing rapidly) are generated online (lululemon.com), and ~10% of sales are generated by wholesale partners, which primarily comprise fitness studios. The stock’s underperformance was concentrated around the F4Q earnings announcement, which saw the company meet expectations for the current quarter but provide cautious commentary regarding tepid US consumer spending behavior.”