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4 Hot Stocks From the Sizzling Luxury Apparel Industry
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“Innovation in fashion’’ remains a key phrase for the Textile-Apparel industry, as new and trend-setting ideas are its lifeblood. Ever-changing consumer taste and preference call for new designs in clothing to stay ahead in competition.
Notably, the U.S. Textile-Apparel industry (Luxury Apparel) has been witnessing an uptrend since the start of 2018 and continues to be among investors’ favorites. Over the course of the past 12 months, the Textile-Apparel industry has rallied 36.6%, significantly outperforming the sector’s growth of 10.7% and the S&P 500’s rise of 16.7%. The industry, which forms part of the Consumer Discretionary sector, is currently among the top 11% (29 of 256) of all Zacks industries.
Additionally, an 18-year high consumer confidence, steady labor market, gradual wage acceleration and higher business investments are working in favor of the industry. Rise in disposable income is further acting as a catalyst, thus lifting consumers’ spending appetite and resulting in higher demand for luxury items, including premium apparel, accessories and others.
The key players in the industry are performing extremely well backed by their solid growth strategies and financial performances. Robust omni-channel capabilities, including enhancement of physical and digital foothold, effective marketing strategies, improving merchandise offerings, global expansion, solid brand-enhancing activities and strategic cost-containment efforts are the major propellants for the players in this space. However, stiff competition and tariff related issues remain major headwinds.
The industry’s upbeat trend can be attributed to a host of key players in the space who are consistently putting up a robust show. Interestingly, these companies remain investors’ favorite and have outperformed the industry as well as the broader market in a year.
4 Top Textile-Apparel Stocks
Here, we discuss four Textile-Apparel stocks that look well-positioned based on solid fundamentals and a Zacks Rank #1 (Strong Buy) and 2 (Buy). These companies also have an impressive surprise history and long-term expected earnings growth rates. Moreover, the future plans outlined by these companies suggest that there is more room for the stocks’ upward run.
Topping the list is lululemon athletica inc. (LULU - Free Report) , which has been riding high on progress pertaining to its strategy for 2020, and stringent focus on digital and international growth. Moreover, the company is gaining from broad-based growth across all categories, channels and geographies. Management expects the solid momentum to continue in fiscal 2018 as well, evident from its raised guidance for the year. In second-quarter fiscal 2018, lululemon reported the sixth consecutive earnings beat and 11th straight positive sales surprise. Additionally, shares of this yoga-inspired athletic apparel company have skyrocketed 157.2% in the past year. The company’s long-term earnings growth rate of 18.7% also highlights its growth potential. Currently, lululemon sports a Zacks Rank #1. You can seethe complete list of today’s Zacks #1 Rank stocks here.
Michael Kors Holdings Limited , the global luxury lifestyle company, is also a solid bet. It delivered positive earnings and sales surprises for the sixth quarter in row, when it posted first-quarter fiscal 2019 results. Michael Kors has been constantly deploying resources to expand product offerings, opening new stores and upgrade e-commerce platform. The company’s project Runway 2020 strategic plan, which focuses on product innovation, brand engagement and customer experience, is also commendable. Notably, it is witnessing robust performance at Michael Kors and Jimmy Choo brands, which are aiding results. Management provided an upbeat view for the fiscal 2019 as well. Impressively, this Zacks Rank #1 stock has registered growth of 63.6% in the past year. Michael Kors’ expected long-term earnings growth rate of 6.8% too drives optimism in the stock.
G-III Apparel Group, Ltd. (GIII - Free Report) , the leading manufacturer and designer of apparel and accessories, has been benefiting from acquisitions and partnerships. Moreover, its efforts to build e-commerce and expand international operations are likely to aid the company’s quarterly performance. While management remains optimistic about the DKNY brand’s potential for international growth, it also sees significant opportunity for product licensees. At present, G-III Apparel is on track to improve retail operations by returning the Bass and Wilsons brands to profitability. In second-quarter fiscal 2019, the company reported third straight quarter of positive sales surprise and sixth consecutive earnings beat. Management raised its view for the fiscal 2019 as well. Shares of this Zacks Rank #1 company have surged 59.4% in a year’s time. Its long-term earnings growth rate of 15% speaks well for its improved bottom-line prospects.
Lastly, we have Ralph Lauren Corporation (RL - Free Report) , a major designer and marketer of premium lifestyle products. It has a marvelous earnings history with 14 straight quarters of beat and boasts an expected long-term earnings growth rate of 9.6%. Further, the company outpaced the sales estimates in three of the trailing four quarters, including first-quarter fiscal 2019. The company’s Way Forward Plan, which is focused on bolstering digital and international presence, is likely to drive long-term growth. Management also remains confident about Ralph Lauren’s performance based on its efforts related to global brand reorganization and constant infrastructural investments. This Zacks Rank #2 stock has soared 46.1% in a year.
Best Electric Car Stock? You'll Never Guess It.
Zacks Research has released a report that may shock many investors. One stock stands out as the best way to invest in the surge to electric cars. And it's not the one you may think!
Much like petroleum 150 years ago, lithium battery power is set to shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge. With battery prices plummeting and charging stations set to multiply, revenues that were already at $31 billion in 2016 are expected to blast to over $67 billion by the end of 2022.
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4 Hot Stocks From the Sizzling Luxury Apparel Industry
“Innovation in fashion’’ remains a key phrase for the Textile-Apparel industry, as new and trend-setting ideas are its lifeblood. Ever-changing consumer taste and preference call for new designs in clothing to stay ahead in competition.
Notably, the U.S. Textile-Apparel industry (Luxury Apparel) has been witnessing an uptrend since the start of 2018 and continues to be among investors’ favorites. Over the course of the past 12 months, the Textile-Apparel industry has rallied 36.6%, significantly outperforming the sector’s growth of 10.7% and the S&P 500’s rise of 16.7%. The industry, which forms part of the Consumer Discretionary sector, is currently among the top 11% (29 of 256) of all Zacks industries.
Additionally, an 18-year high consumer confidence, steady labor market, gradual wage acceleration and higher business investments are working in favor of the industry. Rise in disposable income is further acting as a catalyst, thus lifting consumers’ spending appetite and resulting in higher demand for luxury items, including premium apparel, accessories and others.
The key players in the industry are performing extremely well backed by their solid growth strategies and financial performances. Robust omni-channel capabilities, including enhancement of physical and digital foothold, effective marketing strategies, improving merchandise offerings, global expansion, solid brand-enhancing activities and strategic cost-containment efforts are the major propellants for the players in this space. However, stiff competition and tariff related issues remain major headwinds.
The industry’s upbeat trend can be attributed to a host of key players in the space who are consistently putting up a robust show. Interestingly, these companies remain investors’ favorite and have outperformed the industry as well as the broader market in a year.
4 Top Textile-Apparel Stocks
Here, we discuss four Textile-Apparel stocks that look well-positioned based on solid fundamentals and a Zacks Rank #1 (Strong Buy) and 2 (Buy). These companies also have an impressive surprise history and long-term expected earnings growth rates. Moreover, the future plans outlined by these companies suggest that there is more room for the stocks’ upward run.
Topping the list is lululemon athletica inc. (LULU - Free Report) , which has been riding high on progress pertaining to its strategy for 2020, and stringent focus on digital and international growth. Moreover, the company is gaining from broad-based growth across all categories, channels and geographies. Management expects the solid momentum to continue in fiscal 2018 as well, evident from its raised guidance for the year. In second-quarter fiscal 2018, lululemon reported the sixth consecutive earnings beat and 11th straight positive sales surprise. Additionally, shares of this yoga-inspired athletic apparel company have skyrocketed 157.2% in the past year. The company’s long-term earnings growth rate of 18.7% also highlights its growth potential. Currently, lululemon sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Michael Kors Holdings Limited , the global luxury lifestyle company, is also a solid bet. It delivered positive earnings and sales surprises for the sixth quarter in row, when it posted first-quarter fiscal 2019 results. Michael Kors has been constantly deploying resources to expand product offerings, opening new stores and upgrade e-commerce platform. The company’s project Runway 2020 strategic plan, which focuses on product innovation, brand engagement and customer experience, is also commendable. Notably, it is witnessing robust performance at Michael Kors and Jimmy Choo brands, which are aiding results. Management provided an upbeat view for the fiscal 2019 as well. Impressively, this Zacks Rank #1 stock has registered growth of 63.6% in the past year. Michael Kors’ expected long-term earnings growth rate of 6.8% too drives optimism in the stock.
G-III Apparel Group, Ltd. (GIII - Free Report) , the leading manufacturer and designer of apparel and accessories, has been benefiting from acquisitions and partnerships. Moreover, its efforts to build e-commerce and expand international operations are likely to aid the company’s quarterly performance. While management remains optimistic about the DKNY brand’s potential for international growth, it also sees significant opportunity for product licensees. At present, G-III Apparel is on track to improve retail operations by returning the Bass and Wilsons brands to profitability. In second-quarter fiscal 2019, the company reported third straight quarter of positive sales surprise and sixth consecutive earnings beat. Management raised its view for the fiscal 2019 as well. Shares of this Zacks Rank #1 company have surged 59.4% in a year’s time. Its long-term earnings growth rate of 15% speaks well for its improved bottom-line prospects.
Lastly, we have Ralph Lauren Corporation (RL - Free Report) , a major designer and marketer of premium lifestyle products. It has a marvelous earnings history with 14 straight quarters of beat and boasts an expected long-term earnings growth rate of 9.6%. Further, the company outpaced the sales estimates in three of the trailing four quarters, including first-quarter fiscal 2019. The company’s Way Forward Plan, which is focused on bolstering digital and international presence, is likely to drive long-term growth. Management also remains confident about Ralph Lauren’s performance based on its efforts related to global brand reorganization and constant infrastructural investments. This Zacks Rank #2 stock has soared 46.1% in a year.
Best Electric Car Stock? You'll Never Guess It.
Zacks Research has released a report that may shock many investors. One stock stands out as the best way to invest in the surge to electric cars. And it's not the one you may think!
Much like petroleum 150 years ago, lithium battery power is set to shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge. With battery prices plummeting and charging stations set to multiply, revenues that were already at $31 billion in 2016 are expected to blast to over $67 billion by the end of 2022.
See Zacks Best EV Stock Free >>