Economic growth has launched exponential opportunities for many industries, such as the luxury industry. The luxury market is positioned for continued demand from consumers due to increased disposable income and demand for exclusiveness.
Given this background, high-quality luxury brands Stocks PVH Corp. (PVH), Ralph Lauren Corporation (RL), and Brillise Earth Group, Inc. It may be appropriate to acquire (BRLT).
Before evaluating the basics of these stocks, let’s take a glimpse of current events within the industry.
In the fourth quarter of 2024, US real total national production (GDP) rose at a yearly rate of 2.3% driven by consumer spending and government spending. Additionally, in December 2024, personal income increased by $92 billion or 0.4% per month compared to $60 billion or 0.3% in December 2023.
Disposable personal income increased by $79.7 billion or 0.4%, while consumer spending increased by $133.6 billion or 0.7% in the same month. Factors such as strong economic growth, increased consumer spending and favorable borrowing costs have energized a variety of sectors, including luxury brands and product markets.
As consumers’ spending capacity rises, consumers are leaning more towards luxury items. Common trends in social media, online marketing and e-commerce development have further influenced consumer behavior.
In addition, recently, the robust demand for exclusiveness among consumers has grown, particularly among millennials and Z consumers. So you get luxury brands that will respond to this trend and adapt their strategies to focus on improved experiences, personalized services, and attempts to attract customers at a deeper level.
This is expected to reach an estimated $48.054 billion by 2033, growing at a CAGR of 6.6%. Additionally, in the US, the luxury market revenue is expected to be $101 billion in 2025.
Considering the industry’s facilitating trends, let’s start with the third option and discuss three fashion & luxury stock picks.
Stock #3: PVH Corp. (PVH)
PVH is an international apparel company. Works with 6 segments. Tommy Hilfiger North America. Tommy Hilfiger International. Calvin Klein North America; Calvin Klein International. and wholesale of heritage brands. The company designs and sells apparel and accessories for men, women and children.
On January 21, 2025, Tommy Hilfiger, a wholly owned subsidiary of PVH, will develop, manufacture and distribute new home accessories in the United States, Canada and Mexico, and will be releasing Revman International, Inc. We have signed a license agreement with The home collection will be released in the spring.
New developments will strengthen the Tommy Hilfiger brand in the Home category through promotion and expanded consumer offerings.
On October 30, 2024, the PVH board declared a quarterly cash dividend of $0.0375 per share paid to record shareholders on December 18, 2024 on November 27, 2024.
The shares pay a dividend of $0.15 per share per year. This is a 0.19% yield at the current price. The average dividend yield over the past four years is 0.13%. Its dividend payments also increased at a CAGR of 58.7% over the past three years.
In the third quarter, which ended November 3, 2024, PVH recorded a total revenue of $2.26 billion, total revenue totaling $1.32 billion. The company’s non-GAAP net income reached $170 million, while its non-GAAP net income per common stock rose 4.5% from the previous year to $3.03.
In the fourth quarter of 2024, the company is expected to have a net income per common stock of between $11.55 and $11.70 on a non-GAAP basis. The company also raised its full-year guidance for net income per common stock on a non-GAAP basis from $3.05 to $3.20 from the previous guidance of $2.50.
Street expects PVH revenue and EPS for the fiscal year (ends January 2026) to increase by 0.8% and 3.4% year-on-year to $86.9 billion and $12.10, respectively. The company also outperforms consensus revenue and EPS estimates for all four subsequent quarters, which is noteworthy.
PVH shares have broken over 15.5% in the past six months, closing its final trading session at $78.85.
The strong foundations of PVH are reflected in its Powr evaluation. The Powr rating is calculated by considering 118 different factors, each weighted to an optimal degree.
PVH comes in A grade of value and AB of quality. Ranked 23rd out of 60 shares in fashion and luxury industry with a B rating.
In addition to the Powr ratings mentioned above, there is also a PVH rating for growth, momentum, emotion, and stability. Get all PVH ratings here.
Stock #2: Ralph Lauren Corporation (RL)
RL designs, markets and distributes lifestyle products internationally. We offer apparel, footwear, accessories, household products and fragrances. The company sells apparel and accessories under brands such as the Ralph Lauren Collection, Ralph Lauren Purple Label, Polo Ralph Lauren, Double RL, Lauren Ralph Lauren, Polo Golf Ralph Lauren, and Ralph Lauren Golf.
On December 13, 2024, the RL board of directors declared a regular quarterly dividend of $0.825 per share on common stock. Dividends were paid to record shareholders at the end of business on January 10, 2025 on December 27, 2024.
RL pays an annual dividend of $3.30. This converts to a yield of 1.23% at the current stock price. The average dividend yield over the past four years is 1.88%. Additionally, the company’s dividend payments have increased at a CAGR of 16.1% over the past three years.
RL net revenue for the third quarter ended December 28, 2024 increased 10.8% year-on-year to $2.14 billion. The company’s adjusted gross profit rose 14.1% from the previous year to $1.47 billion. Adjusted operating income rose 26.6% year-on-year to $419 million.
Additionally, the company’s adjusted net income was $307.9 million and $4.82 per share, up 11.9% and 15.6% from the previous year’s quarter, respectively.
Street expects RL revenue and EPS for the fourth quarter (ends March 2025) to increase from 4.7% and 19.1% year-on-year to $1.64 billion and $2.04, respectively. Additionally, the company surpassed consensus EPS and revenue estimates for each of the following four quarters.
Over the past six months, the stock has won 68.7% and 82.8% over the past year, ending its final trading session at $268.95.
RL’s bright outlook is reflected in its Powr rating. The stock has an overall rating of B, which leads to purchases under its own rating system.
The stocks come in A grade of quality and B grade for growth. Within the B-rate fashion and luxury industry, RL ranks 12th out of 60 shares.
Click here to access additional RL ratings for sentiment, momentum, stability and value.
Stock #1: Brillise Earth Group, Inc. (BRLT)
BRLT designs, sources and sells diamonds, gems and gems internationally. The company’s assortment of products and products consist of a collection of diamond engagement rings, wedding and anniversary rings, jewelry rings and premium jewelry.
On November 12, 2024, BRLT opened its first street-level showroom in New York City, located at 255 Elizabeth Street in Norita. The showroom has expanded its retail footprint to four locations in the New York metropolitan area, expanding the entire BRLT showroom to 39.
Also, on September 19, 2024, the company opened two new street-level showrooms in Boston, completing renovations to its Newbury Street location. The strategic expansion of the retail fleet will provide customers with a personalized shopping experience and expand their customer base.
In the third quarter ended September 30, 2024, BRLT had net revenue of $99.87 million, with gross profit of $60.77 million for the quarter. The company’s adjusted net income and adjusted EPS were $1.49 million and $0.02 for the quarter, respectively.
Additionally, our cash and cash equivalents and total assets were $152.65 million and $273.25 million as of September 30, 2024.
Analysts expect BRLT revenues to increase by 1% year-on-year to $428 million for the fiscal year (ends December 2025), while EPS is up 17.7% year-on-year. It is expected to be $0.08. Additionally, the company surpassed consensus EPS estimates for each of the following four quarters.
BRLT stocks fell 21.8% over the past month, closing their last trading session at $1.58.
The optimistic foundations of BRLT are reflected in its Powr ratings. The stock has an overall valuation of B, which is equivalent to purchases under its own rating system.
Stocks come in A grades of value. There is also a B grade for emotion and quality. BRLT ranks seventh among 60 stocks in the B-rated fashion and luxury industry.
Click here to access our additional BRLT assessments of growth, stability and momentum.
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RL shares were trading at $0.10 (-0.04%) at $268.85 per share on Monday afternoon. Since the start of the year, RL has scored 16.40%, a 3.26% increase in the benchmark S&P 500 index over the same period.
About the author: Rjkumari Saxena
Rajkumari began her career as a writer, but gradually shifted her focus to financial journalism, leveraging the educational background of commerciality. Fascinated by the interaction between stock business and economic change, she aims to evolve as an analyst. With her knack for simplifying complex financial concepts, her mission is to empower investors with insights that lead to profitable decisions. more…
