The growing demand for online marketing, social media and e-commerce platforms that offer new avenues for brand exposure and sales is driving the luxury market. Given the industry’s tailwinds, investors can consider buying a fundamentally healthy luxury stock. Ralph Lauren Corporation (RL), … Abercrombie & Fitch Co. (Anf), … and Hugo Boss AG (boss) amidst global demand.
The luxury market has experienced a major move towards sustainable practices driven primarily by young, socially aware consumers who value sustainability and ethical consumption. Therefore, the global luxury market is 6.6% CAGR by 2033.
moreover, Increased wealth in emerging economies Consumption of luxury goods has increased significantly, especially in regions such as Asia-Pacific, Africa and Latin America. As disposable incomes increase and the middle class expand, consumer demand is changing, and countries like China are spending on high-end products.
Considering these encouraging trends, let’s look at three basics Best Fashion and luxury Stocks starting from #3.
Stock #3: Ralph Lauren Corporation (RL)
RL is engaged in the design, marketing and distribution of internationally luxurious lifestyle products, including apparel, footwear & accessories, home, fragrances, eyewear, luxury jewelry, hospitality and more. The company operates through three segments. North America. Europe; and Asia.
RL’s 12-month trailing net profit margin and EBIT margin are 10.15% and 12.42%.
For the second quarter of 2025, which ended September 28th, RL net revenue increased 5.7% year-on-year to $1.73 billion, while the net revenue for the Asia segment was 300 million from the previous year’s value. Improved by 9.1% to $80 million. Its gross profit rose 8% year-on-year to $1.16 billion. Additionally, the company’s net income reached $2.31 per share ($2.31 per share), reflecting an increase of 0.7% and 5.5% year-on-year, respectively.
Analysts expect RL revenue to rise 4.1% year-on-year to $2.010 billion for the third quarter, which ended December 2024. That EPS is expected to grow to 8.5% year-on-year to $4.53. The company surpassed its revenue and EPS estimates for each of its four quarters, which is promising.
RL shares have closed its last trading session at $246.85, up 67.1% over the past year.
RL Powr rating Please reflect that positive outlook. The stock has an overall valuation of B, which corresponds to purchases under our own rating system. The Powr ratings are calculated taking into account 118 different factors, each factor being weighted to an optimal degree.
Stocks have A grade of quality and AB of sentiment. Ranked 14th out of 59 stocks Fashion and luxury industry.
Beyond the above, we also value RL for growth, momentum, stability and value. Get all RL ratings here.
Stock #2: Abercrombie & Fitch Co. (ANF)
ANF is a global specialty retailer offering apparel, personal care products and accessories for men, women and children. The company operates under the Abercrombie & Fitch, Abercrombie Kids, Hollister and Gilly Hicks brands, providing high quality, comfortable products that meet the needs of a diverse range of lifestyles.
On December 4, 2024, ANF announced its strategic multi-year franchise partnership with Myntra Jabong India Private Ltd., Myntra’s business-to-business wholesale division. The collaboration aims to strengthen the global presence of ANF by leveraging India’s growing e-commerce market to promote brand accessibility and revenue growth.
ANF’s 12-month trailing gross profit margin of 64.66% is 71% higher than the industry average of 37.82%. That trailing EBIT margin of 14.84% is 84% higher than the industry average of 8.06%. Similarly, the 12-month trailing 50.86% common stock return rate is compared favorably with the industry average of 10.63%.
In the third quarter, which ended November 2, 2024, ANF net sales increased 14.4% year-on-year to $1.21 billion. Adjusted operating income rose 25.4% year-on-year to $17,928 million. Its net income reached $133.86 million, reflecting a 37% increase from the previous year’s quarter. Furthermore, company adjustments EPS It appeared at $2.50, up 31.6% from the previous year.
Analysts expect ANF’s EPS and revenue for the fourth quarter, which ended January 31, 2025, to $3.55 and $1.57 billion, respectively, from 19.6% and 7.8% year-on-year. The company has an impressive history of surprises, surpassing each of its four-quarter consensus revenue and EPS estimates.
Over the past year, the stock has won 4.9% and its final trading session has ended at $114.80.
ANF’s Powr rating reflects a positive outlook. The stock has an overall valuation of B, which corresponds to purchases under our own rating system.
ANF has A grade of quality and AB of emotions. Ranked 7th in the same industry.
In addition to the Powr ratings highlighted above, you can access ANF’s ratings for momentum, stability, growth and value here.
Stock #1: Hugo Boss AG (Boss)
Bossy is headquartered in Metzingen, Germany, and is located in designs and market apparel, footwear and accessories under the Boss and Hugo brand. It also distributes licensed products such as fragrances and eyewear, stores, franchises and online platforms worldwide.
On December 11th, Bossy announced Eighting Corporation, an independent company focused on recycling and reuse, aligned with sustainability goals.
Bossy’s 12-month trailing asset turnover rate is 23% higher than the 1x industry average. The trailing EBIT margin of 8.30% is 3% higher than the industry average of 8.06%.
Bossy’s revenue rose to just 1.03 billion euros ($1.07 billion) year-on-year in the third quarter, which ended September 30, 2024. Furthermore, the company’s net income attributable to shareholders reached 55 million euros ($56.88 million), with EPS reaching 0.79 euros each.
Street expects Bossy’s revenue to be $1.25 billion for the fourth quarter, which ended December 31, 2024. Three of the following four quarters surpassed consensus revenue estimates.
Over the past month, the stock has won 1.6% and has finished its last trading session at $9.12.
Bossy’s strong foundation is reflected in its Powr rating. There is an overall rating of A, which is equivalent to a strong buy in our own rating system.
There is A grade for value and AB for growth, stability, and quality. Ranked 2nd in the same industry.
click here Access additional boss ratings (momentum and emotion).
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RL shares traded at $248.97 per share on Wednesday afternoon, up $2.12 (+0.86%). Since the start of the year, RL has scored 7.79%, a 2.92% increase in the benchmark S&P 500 index over the same period.
About the author: Nidhi Agarwal
Nidhi is passionate about capital markets and asset management, and has now pursued a career as an investment analyst. She holds a bachelor’s degree in finance and marketing and pursues a CFA program. Her basic approach to analyzing stocks helps investors identify the best investment opportunities. more…
