We recently published a list of the top 12 luxury clothing stocks to buy according to hedge funds. In this article, Nike, Inc., according to hedge funds. We’ll see where (NYSE:NKE) faces other high-end clothing stocks.
According to a report by Mordor Intelligence, the luxury goods market is $103 billion as of 2024. It is expected to grow at a combined annual growth rate (CAGR) by 2029. Market Insight Finance, published on Yahoo!, shows that the luxury packaging market is valued at $17.2 billion in 2023. It is also expected to grow by the end of 2032 to reach $25.8 billion.
The main reasons behind this growth include increased disposable income and wealth in various regions around the world, particularly emerging markets such as India and China. Additionally, younger customers such as Millennials and Gen Z have entered the luxury market, and the rise of influencer marketing and the rise of social media has further improved the desirability of these products.
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However, analysts expect 2025 to be a challenging year for the luxury sector. The private luxury market has declined for the first time since 2008, except for 2020 due to the impact of the Covid-19 pandemic. According to the Bain-Altagamma Luxury Goods World Wide Wide market research in the fall of 2024, the market fell from a historic high of $387 billion in 2023 to about $381 billion. However, Bain highlighted the “long-term solid foundation” of the industry, saying that the luxury market can “return to solid growth.”
According to Bain & Company’s annual luxury report, consumer spending in the private luxury market has been affected by macroeconomic uncertainty and China’s slowdown. Due to rising customer loyalty and costs, consumers will avoid high-end brands in 2024 and cut down the company’s profits. These consumer spending patterns are expected to shrink the sector by an estimated 2% over the full year period. The report also recorded modest growth with overall luxury spending in 2024 flatter than last year, with around $1.59 billion in other segments such as travel, fine wine and automobiles. It showed that it should be done.
However, not all conditions are dark. According to the hedge fund, a recently published article on luxury stocks discussed consumer spending and the luxury market. This is an excerpt from the article.
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On December 17th, Simeon Siegel, a senior retail and e-commerce analyst at BMO Capital Markets, appeared on CNBC to discuss consumer status during the current holiday shopping season. He said US consumers are overly resilient. In the current scenario, the market sees winners grow and fall behind. This trend is in the opposite direction to the market dynamics of Covid-19, where all companies have grown. Siegel saw further views that consumers still spend. Better yet, even worse, consumers are afraid that they don’t have anything under the Christmas tree this year.
We sifted through stock screeners, online rankings and ETFs to compile a list of 20 premium clothing stocks. It then selected the top 12 most popular stocks among elite hedge funds as of the third quarter of 2024. Hedge fund sentiment data was sourced from InsiderMonkey’s database. The list is sorted in ascending order of hedge fund sentiment.
Why do we care about what hedge funds do? The reason is easy. Our research shows that mimic the top stock picks of the best hedge funds can outperform the market. Quarterly Newsletter’s strategy has chosen 14 small and large caps per quarter, returning 275% since May 2014, breaking the benchmark by 150 percentage points (see more here).
Is Nike Inc. (NKE) in Bill Ackman’s portfolio stocks?
A team of trainers and athletes displaying a wide range of athletic and casual footwear.
Number of hedge fund holders: 75
Nike, Inc. (NYSE: NKE) designs, markets and distributes premium athletic shoes, accessories, equipment and services for sports and fitness activities. The company also designs products exclusively for the Converse and Jordan brands. Some of its products are valued at thousands of dollars.
Nike, Inc. (NYSE:NKE) reported an 8% decline in revenue on a reporting basis and a 9% decline on a currency neutral basis for the second quarter of 2025. When it’s repairing that operation. The company is building premium brands and avoiding markdowns, focusing on inventory scale back. This strategy is Nike, Inc. It is expected to bring (NYSE:NKE) back into the game and help with recovery.
With the continued growth of the sports industry, the stock bull case is also strong, with athletes signing a million dollar trading and booming sports broadcasting. Euromonitor, Nike, Inc. (NYSE:NKE) data shows that it owns 16.4% of the global sportswear market, with Adidas taking second place with 9%. This is Nike, Inc. in this growing industry. It reflects the strong presence of (NYSE:NKE).
The company also saw momentum in the second quarter of 2025 with positive physical and digital traffic. Black Friday Week has proven to be the biggest demand week ever on Nike Digital, with sales rising double digits. Similarly, sales on 11/11 exceeded Great Fahrenheit’s corporate plans. Thus, 2025 fiscal quarter reflects advances in key sectors and has received consumer support.
Clearbridge’s large-scale cap growth strategy is Nike, Inc. In its second quarter investor letter (NYSE:NKE), it stated:
“Other movements throughout the quarter include sales of United Parcel Service (UPS) and Nike, Inc. (NYSE:NKE). Nike is overly dependent on major platforms like Jordan. , revenue growth is lagging in innovation in areas like running, while Nike faces ongoing revenue and profit pressure as it reinvigorates innovation and invests in bringing the business back to wholesale stores. That’s why we’re looking for a better way to participate in the global consumer recovery of businesses whose revenue estimates have already been reset.”
Overall, NKE is ranked first on the list of the top 12 luxury clothing stocks, according to hedge funds. We acknowledge the potential of NKE, but our belief is that AI stocks provide higher returns and hold a greater promise to do so within a shorter time frame. there is. If you’re looking for AI stocks that are more promising than NKE, but trade less than five times the revenue, check out our report on the cheapest AI stocks.
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Disclosure: None. This article was originally published on Insider Monkey.
