The global luxury goods market is witnessing significant growth, driven by increasing disposable incomes in emerging markets and a surge in demand from younger consumers, particularly millennials and Gen Z. So, quality luxury stocks PVH Corp. (PVH), Kontoor Brands, Inc. (KTB), and Hugo Boss AG (BOSSY) could be top picks for the new year. These companies are leveraging innovative product designs and expanding their global footprint to meet the increasing demand for premium luxury goods.

The luxury market is thriving, propelled by influencer marketing, experiential luxury, and international travel. Collaborations with influencers enhance brand visibility and attract younger consumers. A growing preference for experiences over possessions among millennials and Gen Z has led brands to offer immersive services.  Additionally, international travel boosts sales through duty-free channels and tourist purchases.

The global luxury goods market is expected to grow at a CAGR of 6.8% from 2024 to 2030. This offers an attractive opportunity for investors as the sector continues to benefit from global wealth expansion and evolving consumer preferences.

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

Stock #3: PVH Corp. (PVH)

PVH is a global apparel company operating brands like Tommy Hilfiger and Calvin Klein. It designs and markets a wide range of clothing, accessories, and home products through wholesale channels, company-operated stores, and digital platforms worldwide.

On December 18, PVH distributed a quarterly cash dividend of $0.0375 per share to stockholders of record as of November 27. It pays an annual dividend of $0.15, which translates to a dividend yield of 0.14% at the prevailing price levels.

During the fiscal third quarter that ended November 3, 2024, PVH’s total revenue was $ 2.26 billion. Its gross profit was $1.32 billion. In addition, the company’s non-GAAP net income came in at $170.50 million, and non-GAAP EPS at quarter-end was $3.03, up 4.5% over the prior-year quarter.

Street expects PVH’s revenue for the year (ending January 31, 2025) to increase to $ 8.63 billion. Its EPS for the same year is expected to grow 9.7% from the prior year to $11.71. In addition, it surpassed the Streets consensus revenue and EPS estimates in all of the trailing four quarters, which is promising.

Shares of PVH have gained marginally over the past six months to close the last trading session at $105.75.

PVH’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.

PVH has an A grade for Value and a B in Sentiment and Quality. It is ranked #9 out of 59 stocks in the Fashion & Luxury industry.

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

Stock #2: Kontoor Brands, Inc. (KTB)

KTB is a lifestyle apparel company known for its Wrangler and Lee brands, offering denim, apparel, footwear, and accessories. Operating globally, it distributes products through retail stores, e-commerce, and licensed Rock & Republic apparel.

On December 19, KTB distributed a 4% increase in its quarterly cash dividend to $0.52 per share. It pays an annual dividend of $ 2.08, which translates to a dividend yield of 2.44% at the prevailing price levels.

In the fiscal third quarter ended September 28, 2024, KTB’s net revenues increased 2.4% year-over-year to $670.19 million. Its adjusted operating income came in at $107 million, up 8% year-over-year. In addition, the company’s net income reached $70.55 million, up 18.5% from the same quarter last year, and adjusted EPS was $1.37, up 12.3% year-over-year.

Analysts expect KTB’s EPS and revenue for the fourth quarter ending December 31, 2024, to increase 3.6% and 4.1% year-over-year to $1.33 and $ 697.03 million, respectively. It surpassed the Street EPS and revenue estimates in three of the trailing four quarters.

Over the past year, the stock has gained 38.5% to close the last trading session at $85.41. It soared 31.7% in past six months.

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

KTB has a B grade in Quality. It is ranked #5 in the same industry.

To access KTB’s Growth, Value, Momentum, Stability, 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, BOSSY announced the launch of Eightyards, an independent corporation focused on recycling and reusing surplus materials, aligning with its sustainability goals.

It pays an annual dividend of $0.29, which translates to a dividend yield of 3.25% at the prevailing price levels.

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 EUR 0.79 ($0.82), respectively.

Street expects BOSSY’s revenue for the year ending December 31, 2024, to increase to $ 4.40 billion. It surpassed the consensus revenue estimates in three of the trailing four quarters.

Over the past month, the stock has gained 32% to close the last trading session at $9.

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 is ranked #2 in the same industry.

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

What To Do Next?

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PVH shares were trading at $107.28 per share on Thursday morning, up $1.53 (+1.45%). Year-to-date, PVH has gained 1.45%, versus a 0.46% 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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