The steady rise in global wealth has created fertile ground for the expansion of luxury brands, with affluent consumers and a growing middle class driving demand for premium products and experiences.
We are strategically positioned to take advantage of these trends, including leading high-end luxury stocks Industria de Diseño Textiles SA (IDEXY), H&M Hennes & Mauritz AB (HNNMY) and Hugo Boss AG (BOSSY). ). These stocks leverage innovative marketing strategies, influencer collaborations, and a focus on experiential luxury to meet evolving consumer expectations and sustain growth.
The global luxury goods market is experiencing remarkable expansion due to rising disposable incomes and growing affluence in emerging countries. Millennials and Gen Z are leading this surge in demand by favoring modern, experiential luxury products that resonate with their lifestyles. Furthermore, the influence of social media and influencer marketing has amplified the appeal and visibility of luxury brands among young people.
The global luxury goods market is projected to grow at a CAGR of 6.8% until 2030. This growth trajectory presents attractive investment opportunities as luxury brands continue to adapt to changing consumer tastes and expand their global footprint.
Let’s take a closer look at Fashion & Luxury stocks in light of their potential future growth prospects.
Stock #3: Industria de Diseño Textil, SA (IDEXY)
IDEXY, also known as Inditex, is a global retail giant offering clothing, footwear, accessories and homewares under well-known brands such as Zara, Pull & Bear and Massimo Dutti. The company serves fashion-conscious individuals and households around the world, with operations in Europe, the Americas, Asia and beyond.
IDEXY’s revenue has grown at a CAGR of 13.8% over the past three years, and its net income has grown at a CAGR of 25% over the same period.
For the nine months ended October 31, 2024, IDEXY’s net sales increased 7% year over year to €27.42 million ($28.25 million). Gross profit increased 7.2% year-on-year to 16.29 million euros ($16.78 million). In addition, the company’s net income and EPS attributable to controlled companies amounted to 4.45 million euros ($4.58 million) and 1.47 euros, representing increases of 8.5% and 8.1%, respectively, from the same period last year.
Street expects IDEXY’s fiscal fourth quarter sales (ending January 31, 2025) to increase 2.7% year over year to $11.62 billion.
The stock price has increased 24.8% over the past year and 5.6% over the past six months, closing at $26.13.
IDEXY’s POWR rating reflects its solid outlook. The stock has an overall rating of B, which equates to a Buy according to our proprietary rating system. POWR ratings are calculated by considering 118 different factors, each factor being weighted to the best degree.
IDEXY has an A grade for quality and a B grade for stability. Ranked 12th out of 59 stocks in the Fashion & Luxury industry with a B rating.
In addition to the above, we also give IDEXY grades for Growth, Value, Momentum, and Sentiment. See all IDEXY reviews here.
Stock #2: H&M Hennes & Mauritz AB (Publisher) (HNNMY)
Headquartered in Sweden, HNNMY is a global fashion and lifestyle brand offering a wide range of clothing, accessories, footwear, beauty products and homeware for women, men and children. The company, which owns well-known brands such as H&M, COS and Monki, also promotes sustainability through platforms such as Sellpy for used fashion and Looper Textile for clothing recycling.
HNNMY’s revenue has grown at a CAGR of 6.5% over the past three years, and its net income has also grown at a CAGR of 4.5% over the same period.
HNNMY’s net sales for the third quarter of the fiscal year ended August 31, 2024 were SEK 59.01 billion ($5.29 billion). Operating profit was SEK 3.51 billion ($314.28 million). Furthermore, the company’s profit attributable to H&M Hennes & Mauritz AB shareholders amounted to SEK 2.32 billion ($207.81 million), with EPS of SEK 1.44.
Analysts expect HNNMY’s revenue to increase to $5.75 billion for the fourth quarter ending December 31, 2024, respectively.
Shares have fallen 18.7% over the past six months, closing at $2.57.
HNNMY’s POWR Rating reflects its solid outlook. The stock has an overall rating of A, which equates to a “Strong Buy” according to our proprietary rating system.
HNNMY has earned an A grade for stability and quality. It ranks 5th in the industry.
Click here to access HNNMY’s Growth, Value, Momentum and Sentiment ratings.
Stock #1: Hugo Boss AG (BOSSY)
Headquartered in Metzingen, Germany, BOSSY designs and sells apparel, footwear and accessories under the BOSS and HUGO brands. We also offer licensed products such as fragrances and eyewear, which we sell through our stores, franchises and online platforms around the world.
On December 11, we announced the launch of Eightyards, an independent corporation focused on recycling and reusing surplus materials in line with our sustainability goals.
BOSSY’s revenue has grown at a CAGR of 19.8% over the past three years, and its net income has also grown at a CAGR of 66.8% over the same period.
BOSSY’s sales increased slightly year-over-year to €1.03 billion ($1.07 billion) in the third quarter of the fiscal year ended September 30, 2024. Gross profit amounted to 619 million euros ($642.12 million). Additionally, the company’s net income attributable to shareholders amounted to 55 million euros ($56.98 million) and EPS amounted to 0.79 euros.
Mr. Street expects BOSSY’s revenue to increase to $1.24 billion for the fiscal fourth quarter ending December 31, 2024. It beat consensus revenue estimates in three of the subsequent four quarters.
Shares have increased 8.5% over the past month, closing at $9.17.
BOSSY’s POWR rating reflects its solid outlook. The stock has an overall rating of A, which equates to a “Strong Buy” according to our proprietary rating system.
It has an A grade for value and a B grade for growth, stability, and quality. It is the top in its industry.
Click here to see BOSSY’s Momentum and Sentiment ratings.
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IDEXY stock was trading at $25.65 per share Friday morning, down $0.48 (-1.84%). Year-to-date, IDEXY has gained 0.55%, while the benchmark S&P 500 Index has gained -1.06% during the same period.
About the author: Kritika Sarma
An interest in risky financial products and a passion for writing led Kritika to become an analyst and financial journalist. She has a Bachelor’s degree in Commerce and is currently enrolled in the CFA program. She aims to help investors identify untapped investment opportunities through a fundamental approach. more…
