The steady rise in global wealth has created fertile ground for the expansion of luxury brands, as affluent consumers and a growing middle-class drive demand for premium products and experiences.

We present top luxury stocks, Industria de Diseño Textil, S.A. (IDEXY), H & M Hennes & Mauritz AB (HNNMY), and Hugo Boss AG (BOSSY), which are strategically positioned to capitalize on these trends. These stocks leverage innovative marketing strategies, influencer collaborations, and a focus on experiential luxury to meet evolving consumer expectations and sustain growth.

The global luxury goods market is witnessing remarkable expansion, driven by rising disposable incomes and the growing affluence in emerging economies. Millennials and Generation Z are leading this surge in demand by favoring contemporary, experiential luxury products that resonate with their lifestyles. Additionally, the influence of social media and influencer marketing has amplified the appeal and visibility of luxury brands among younger demographics.

The global luxury goods market is projected to grow at a CAGR of 6.8% until 2030. This growth trajectory presents a compelling investment opportunity as luxury brands continue to adapt to changing consumer preferences and expand their global footprints.

With a potential growth perspective ahead, let’s explore the Fashion & Luxury stocks in more detail:

Stock #3: Industria de Diseño Textil, S.A. (IDEXY)

IDEXY, also known as Inditex, is a global retail leader offering clothing, footwear, accessories, and household products under renowned brands like Zara, Pull & Bear, and Massimo Dutti. Serving fashion-conscious individuals and households worldwide, the company operates across Europe, the Americas, Asia, and beyond.

IDEXY’s revenue has grown at a CAGR of 13.8% over the past three years and its net income has risen at a CAGR of 25% over the same time frame.

In the fiscal nine months ended October 31, 2024, IDEXY’s net sales increased 7% year-over-year to EUR 27.42 million ($28.25 million). Its gross profit grew 7.2% from the year-ago value to EUR16.29 million ($16.78 million). In addition, the company’s net profit attributable to the controlling company and EPS stood at EUR4.45 million ($4.58 million) and EUR1.47, up 8.5% and 8.1%, respectively from the prior-year period.

Street expects IDEXY’s revenue for the fiscal fourth quarter (ending January 31, 2025) to increase 2.7% year-over-year to $11.62 billion.

Over the past year, the stock has gained 24.8% and 5.6% over the past six months to close the last trading session at $ 26.13.

IDEXY’s POWR Ratings reflect its robust outlook. The stock has an overall rating of B, equating to a Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 distinct factors, with each factor weighted to an optimal degree.

IDEXY has an A grade for Quality and a B in Stability. It is ranked #12 out of 59 stocks in the B-rated Fashion & Luxury industry.

Beyond what we have stated above, we also have given IDEXY grades for Growth, Value, Momentum, and Sentiment. Get all the IDEXY’s ratings here.

Stock #2: H & M Hennes & Mauritz AB (publ) (HNNMY)

Sweden-based HNNMY is a global fashion and lifestyle brand, offers a diverse range of clothing, accessories, footwear, beauty products, and homeware for women, men, and children. Operating under renowned brands like H&M, COS, and Monki, the company also champions sustainability through platforms like Sellpy for second-hand fashion and Looper Textile for garment recycling.

HNNMY’s revenue has grown at a CAGR of 6.5% over the past three years and its net income has risen at a CAGR of 4.5% over the same time frame.

In the fiscal third quarter ended August 31, 2024, HNNMY’s net sales were SEK59.01 billion ($5.29 billion). Its operating income came in at SEK3.51 billion ($314.28 milllion). In addition, the company’s profit attributable to the shareholders of H & M Hennes & Mauritz AB reached SEK2.32 billion ($207.81 million), and EPS was SEK1.44.

Analysts expect HNNMY’s revenue for the fourth quarter ending December 31, 2024, to increase to $5.75 billion, respectively.

Over the past six months, the stock has plunged 18.7% to close the last trading session at $2.57.

HNNMY’s POWR Ratings reflect its robust outlook. The stock has an overall rating of A, equating to a Strong Buy in our proprietary rating system.

HNNMY has an A grade in Stability and Quality. It is ranked #5 in the same industry.

To access HNNMY’s Growth, Value, Momentum, and Sentiment ratings, click here.

Stock #1: Hugo Boss AG (BOSSY)

BOSSY is headquartered in Metzingen, Germany, designs and markets apparel, footwear, and accessories under its BOSS and HUGO brands. It also offers licensed products like fragrances and eyewear, distributing through stores, franchises, and online platforms globally.

On December 11, announced the launch of Eightyards, an independent corporation focused on recycling and reusing surplus materials, aligning with its sustainability goals.

BOSSY’s revenue has grown at a CAGR of 19.8% over the past three years and its net income has risen at a CAGR of 66.8% over the same time frame.

BOSSY’s sales increased marginally year-over-year to EUR1.03 billion ($1.07 billion) in the fiscal third quarter that ended on September 30, 2024. Its gross profit came in at EUR619 million ($642.12 million). In addition, the company’s net income attributable to shareholders reached EUR55 million ($56.98 million) and EPS reached EUR0.79, respectively.

Street expects BOSSY’s revenue for the fiscal four quarter ending on December 31, 2024, to increase to $1.24 billion. It surpassed the consensus revenue estimates in three of the trailing four quarters.

Over the past month, the stock has gained 8.5% to close the last trading session at $9.17.

BOSSY’s POWR Ratings reflect its robust outlook. The stock has an overall rating of A, equating to a Strong Buy in our proprietary rating system.

It has an A grade for Value and a B for Growth, Stability, and Quality. It tops the same industry.

Click here to see BOSSY’s ratings for Momentum and Sentiment.

What To Do Next?

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IDEXY shares were trading at $25.65 per share on Friday morning, down $0.48 (-1.84%). Year-to-date, IDEXY has gained 0.55%, versus a -1.06% rise in the benchmark S&P 500 index during the same period.

About the Author: Kritika Sarmah

Her interest in risky instruments and passion for writing made Kritika an analyst and financial journalist. She earned her bachelor's degree in commerce and is currently pursuing the CFA program. With her fundamental approach, she aims to help investors identify untapped investment opportunities. More...

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