The global luxury goods market is experiencing significant growth due to rising disposable income in emerging markets and surging demand from younger consumers, especially Millennials and Gen Z. That’s why the high-quality luxury goods stock PVH Corp. (PVH), Kontoor Brands, Inc., is in the spotlight. (KTB) and Hugo Boss AG (BOSSY) could be the top contenders in the new year. These companies are leveraging innovative product design and expanding their global footprint to meet the growing demand for premium luxury goods.
The luxury market is thriving, driven by influencer marketing, experiential luxury goods, and international travel. Collaborating with influencers increases brand visibility and attracts younger consumers. As Millennials and Gen Z increasingly seek experiences over possessions, brands are turning to immersive services. Additionally, international travel boosts sales through duty-free channels and tourist purchases.
The global luxury goods market is expected to grow at a CAGR of 6.8% from 2024 to 2030. The sector continues to benefit from rising global wealth and evolving consumer preferences, which presents an attractive opportunity for investors.
Let’s take a closer look at Fashion & Luxury stocks in light of their potential future growth prospects.
Stock #3: PVH Corp. (PVH)
PVH is a global apparel company that operates brands such as Tommy Hilfiger and Calvin Klein. We design and sell a wide range of clothing, accessories and homewares through wholesale channels, retail stores and digital platforms around the world.
On December 18, PVH distributed a quarterly cash dividend of $0.0375 per share to shareholders of record as of November 27. The annual dividend is $0.15, which corresponds to a dividend yield of 0.14% at the prevailing price level.
PVH’s total revenue for the fiscal third quarter ended November 3, 2024 was $2.26 billion. Gross profit was $1.32 billion. Additionally, the company’s non-GAAP net income was $170.5 million, and quarter-end non-GAAP EPS of $3.03, an increase of 4.5% year-over-year.
Street expects PVH’s revenue to increase to $8.63 billion for the current fiscal year, which ends Jan. 31, 2025. EPS for the year is expected to be $11.71, up 9.7% year over year. Additionally, Streets has surpassed consensus revenue and EPS estimates in each of the trailing four quarters, which is encouraging.
PVH stock has risen modestly over the past six months, last trading at $105.75.
PVH’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, with each factor weighted to the best degree.
PVH has an A grade for Value and a B grade for Sentiment and Quality. Ranked #9 out of 59 stocks in the Fashion & Luxury industry.
In addition to the above, we also give PVH grades for growth, momentum, and stability. All PVH ratings are available here.
Stock #2: Kontoor Brands, Inc. (KTB)
KTB is a lifestyle apparel company known for its Wrangler and Lee brands, offering denim, apparel, footwear, and accessories. We operate worldwide and sell our products through retail stores, e-commerce, and licensed Rock & Republic apparel.
On December 19, KTB increased its quarterly cash dividend by 4% to $0.52 per share. The annual dividend is $2.08, which translates to a dividend yield of 2.44% at prevailing price levels.
KTB’s net revenue for the fiscal third quarter ended September 28, 2024 was $670.19 million, an increase of 2.4% from the same period last year. Adjusted operating income was $107 million, an increase of 8% from the same period last year. Additionally, the company’s net income increased 18.5% year over year to $70.55 million, and adjusted EPS increased 12.3% year over year to $1.37.
Analysts expect KTB’s EPS and revenue for the fourth quarter ending December 31, 2024 to be $1.33 million and $697.03 million, up 3.6% and 4.1% year over year, respectively. I am doing it. It beat Street EPS and revenue estimates in three of the subsequent four quarters.
Shares rose 38.5% over the past year, closing at $85.41. It has risen 31.7% in the past six months.
KTB’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.
KTB quality is B grade. It ranks 5th in the industry.
Click here to access KTB’s Growth, Value, Momentum, Stability 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, BOSSY announced the launch of Eightyards, an independent corporation focused on recycling and reusing surplus materials, in line with its sustainability goals.
The annual dividend is $0.29, which translates to a dividend yield of 3.25% at prevailing price levels.
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 ($0.82).
Mr. Street expects BOSSY’s sales to increase to $4.4 billion for the year ending December 31, 2024. It beat consensus revenue estimates in three of the subsequent four quarters.
Shares have risen 32% over the past month, closing at $9.
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 ranked 2nd in the industry.
Click here to see BOSSY’s Momentum and Sentiment ratings.
What should I do next?
Get this special report on three low-priced companies with strong upside potential, even in today’s volatile markets.
3 stocks that will double this year >
Want more great investment ideas?
3 stocks that will double this year
PVH stock was trading at $107.28 per share Thursday morning, up $1.53 (+1.45%). Year-to-date, PVH has increased by 1.45%. In comparison, the benchmark S&P 500 index rose 0.46% 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…
