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Do you have $ 4,000? These 4 fashion stocks are good buys

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While the fashion industry saw declining sales and profits last year due to the COVID-19 pandemic, the industry is moving forward with new trends and ideas this year. Its efforts to strengthen digital platforms have made a powerful contribution to the revival of the industry this year. In addition, increasing consumer spending along with improving labor market and pent-up demand are the main drivers of fashion market growth. According to a Statista report, fashion segment revenue is expected to reach 898.67 billion dollars in 2021.

Fashion companies’ reshaped business models, streamlined operations and refined customer propositions are fueling industry growth. Moreover, with the constant increased vaccination rates and the next holiday season, the industry is expected to see a significant increase in physical store sales.

Given this background, if you have $ 4,000 in throwaway cash, we think we’re betting it on Signet Jewelers Limited (GIS), Oxford Industries, Inc. (OXM), Caleres, Inc. (CAL) and Movado Group, Inc. (mov) could be rewarding. These fashion stocks are expected to generate significant returns in the short term due to their strong market positions and the diversity of portfolios.

Bookmark Jewelers Limited (GIS)

Based in Hamilton, Bermuda, SIG is a retailer of diamond jewelry and other diamond products. The company operates through three segments: North America; International; and other. It operates approximately 2,800 stores, primarily under the Kay Jewelers, Zales, Jared, H. Samuel, Ernest Jones, Peoples, Piercing Pagoda, Rocksbox and JamesAllen.com banners. In addition, SIG’s segments offer the conversion of rough diamonds into polished stones.

This month, SIG agreed to acquire Diamonds Direct USA Inc, a non-mall jeweler in the United States. Diamonds Direct’s distinct bride-focused shopping experience should add a new entry point to SIG. Additionally, this acquisition is expected to help SIG meet its revenue target of $ 9 billion over time and increase shareholder value.

SIG’s sales for its fiscal second quarter, ended July 31, 2021, increased 101.4% year-on-year to $ 1.79 billion. The company’s operating profit was $ 223 million, compared to an operating loss of $ 41.7 million in the previous year quarter. Its EPS was $ 3.57, down from a loss of $ 1.13 per share in its second fiscal quarter of 2020. In addition, the company’s gross margin increased 220.2% year-on-year to reach $ 717.6 million.

SIG’s consensus estimate of $ 7.14 billion in revenue for its fiscal year ending 2022 represents a 36.6% year-over-year increase. The company has exceeded consensus EPS in each of the past four quarters. In addition, its EPS is expected to increase by 382% in the current year. Additionally, the stock has gained 148.1% in progress in the past nine months and 266.3% in the past year.

SIG’s strong fundamentals are reflected in its POWR odds. The stock has an overall A rating, which equates to a strong buy in our proprietary rating system. POWR ratings evaluate stocks based on 118 distinct factors, each with its own weight.

In addition, the stock has an A rating for growth, momentum and quality. We also rated SIG for stability, sentiment and value. Click here to access all SIG notations. SIG is ranked n ° 3 out of 63 stocks in the A ranking Fashion & Luxury industry.

Oxford Industries, Inc. (OXM)

OXM is a clothing company that designs, sources, markets and distributes lifestyle brands and other brands around the world. The Atlanta, Georgia, The company offers men’s, women’s and children’s clothing, athletic wear and related products and accessories under the Tommy Bahama, Lilly Pulitzer and Southern Tide lifestyle brands, among other brands. Its distribution channel consists of approximately 187 brand-specific retail stores, e-commerce websites, 20 Tommy Bahama food and beverage stores, and 35 Tommy Bahama outlet stores.

In its fiscal second quarter, ended July 31, 2021, OXM’s net sales increased 71.2% year-on-year to $ 328.67 million. The company’s gross profit rose 100.1% from its value a year ago to $ 209.63 million. His operating result amounted to $ 67.99 million for the quarter, compared with an operating loss of $ 8.02 million in the prior year quarter. In addition, the company’s net profit was $ 51.46 million, compared to a net loss of $ 6.09 million in the last year quarter.

OXM’s revenue is expected to grow 47.8% year-over-year to $ 1.11 billion in its 2022 fiscal year. Additionally, the company has an impressive record of surprising earnings. ; it has beaten consensus EPS estimates in three of the past four quarters. Its EPS is expected to increase by 470.7% in the current year. Over the past nine months, the stock has climbed 28.9% in price and has returned 102.8% in the past year.

OXM’s POWR ratings reflect this promising outlook. The stock has an overall A rating, which equates to a strong buy in our proprietary rating system. In addition, the stock has an A rating for quality and growth and a B rating for value.

In addition to the POWR ratings that I just highlighted, we can see the OXM ratings for stability, feeling and momentum. here. OXM is ranked # 7 in the Fashion & Luxury industry.

Caleres, Inc. (CAL)

CAL in Saint Louis, Missouri, is a global footwear company that operates through the Famous Footwear and Brand Portfolio segments. The company offers licensed, branded and private label athletic, casual and dress shoes for women, men and children. Its brands are spread across the global market, including over 1,200 branded retail outlets, department and specialty stores, branded e-commerce sites, and numerous third-party retail sites.

CAL’s net sales increased 34.7% year-on-year to $ 675.53 million for its second quarter ended July 31, 2021. The company’s gross profit increased 76.5% from its value from a year ago to reach $ 322.29 million. Its operating profit was $ 62.79 million, compared to an operating loss of $ 24.14 million in the second quarter of 2020. In addition, its net profit was 38.15 million, compared to a net loss of $ 30.67 million in the previous year quarter.

For its 2022 fiscal year, analysts expect CAL revenue to grow 28.5% year-over-year to $ 2.72 billion. It has beaten consensus EPS estimates in each of the past four quarters. The company’s EPS is expected to grow 342.9% in the current year. The stock has gained 39.3% in progress in the last nine months and 145.8% in the last year.

It’s no surprise that CAL has an overall A rating, which equates to a strong buy in our POWR rating system. Additionally, the stock has an A rating for momentum and growth.

Click here to see additional POWR ratings for CAL (quality, stability, value and sentiment). In the Fashion & Luxury industry, CAL is ranked # 6.

Movado Group, Inc. (mov)

MOV designs, sources, markets and distributes watches globally. The Paramus, New Jersey the company operates in two segments: watch and accessory brands; and corporate stores. It offers its products under the Movado, EBEL, Concord, Oliva Burton, MVMT, Coach Watches, HUGO BOSS Watches, Lacoste Watches, Tommy Hilfiger Watches and Scuderia Ferrari Watches brands.

This month, MOV kicked off its next Artist Series with famous 106-year-old Cuban-American artist Carmen Herrera. The Carmen Herrera X MOVADO Artist Series includes five distinct styles inspired by some of Herrera’s key works and recreated through the prism of Movado’s famous museum dial.

For its fiscal second quarter, ended July 31, 2021, MOV’s net sales increased 96.4% year-on-year to $ 173.87 million. The company’s gross profit rose 117.1% from its value a year ago to $ 98.45 million. Its operating profit was $ 24.63 million, compared to an operating loss of $ 8.92 million in the second quarter of 2020. In addition, the company’s net profit was $ 19.41 million for the quarter, compared to a net loss of $ 6.62 million in the previous year quarter. .

Analysts expect MOV revenue to grow 41.4% year-on-year to $ 716.2 million in fiscal 2022. The Company Has an Impressive History of Surprising Profits; it has beaten the consensus EPS in each of the past four quarters. Its EPS is expected to increase by 220.7% in the current year. Additionally, the stock has gained 72.8% in progress in the past nine months and 178% in the past year.

MOV’s strong fundamentals are reflected in its POWR ratings. The stock has an overall A rating, which equates to a strong buy in our POWR rating system. In addition, the stock has an A rating for quality and value and a B for growth.

We also rated MOV for Momentum, Stability, and Sentiment. Click here to access all MOV notes. In the same industry, MOV is ranked # 1.


SIG shares were trading at $ 89.82 per share on Tuesday morning, down $ 1.49 (-1.63%). Year-to-date, SIG has gained 230.29%, compared to a 23.57% increase in the benchmark S&P 500 over the same period.

About the Author: Priyanka Mandal

Priyanka is an avid investment analyst and financial journalist. After earning a master’s degree in economics, her interest in financial markets motivated her to embark on her career in investment research. Following…

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