In the exhilarating investment realm, luxury stocks to buy are shining again on the radars of savvy investors. Inflation has taken a backseat, and with recessionary blues fading, the affluent are once again loosening their purse strings. Moreover, with its niche and fiercely loyal clientele, luxury brands are poised for long-term growth, making luxury stocks a tantalizing proposition.
Though a seismic dip in consumer spending can leave a mark, the affluent aren’t quite as tethered to the economic pendulum as most. Hence, owning a slice of luxury through stocks might be the golden ticket for investors looking to cash in on the trend. Now, let’s delve deep into some of the crème de la crème in the luxury stocks segment.
LVMH Moet Hennessy Louis Vuitton (LVMUY)
In the illustrious luxury space, LVMH Moet Hennessy Louis Vuitton (OTCMKTS:LVMUY) stands out as a true titan, with a legacy echoing through time. Crafting timeless products with lofty price tags but for its discerning clientele, it’s less about the cost and more about unparalleled craftsmanship and historical prominence.
Even against the backdrop of a fickle economy, the firm continues to turn heads with its solid performances, showcasing a robust 17% bump in its fashion and leather goods revenue in the first half of 2023. Furthermore, its selective retailing division also witnessed an impressive 26% ascent. Its top and bottom-line growth has effectively eclipsed historical metrics by comfortable margins. Forward revenue and EBITDA estimates stand at a mighty impressive 13.2% and 12.8%, respectively.
Hence, with the rich tapestry of iconic brands under its umbrella and a long-standing tradition of serenading the world’s elite, Louis Vuitton will continue to dominate the luxury panorama.
Estee Lauder (EL)
Estee Lauder (NYSE:EL) holds a distinguished spot in the pantheon of beauty giants, not just for its iconic brands but for its meteoric global ascent each year. With various products that transcend merely skincare, Estee Lauder proudly flaunts a diversified portfolio, affirming its status as a beauty conglomerate. While current market tremors might have caused a temporary dip, seasoned investors will likely treat it as a blip in its long-term upward trajectory.
Adding to this optimism, JP Morgan delivered a vote of confidence, suggesting that Estee Lauder’s stock has bottomed out. The firm highlighted the brand’s resilience, particularly in its ability to navigate the challenges in the travel retail segment, especially within China’s Hainan province.
Moreover, Estee Lauder’s recent fourth-quarter results have been nothing short of impressive. The company reported a non-GAAP earnings-per-share of seven cents, exceeding expectations by 11 cents, and revenue of $3.61 billion, up 1.4% year-over-year. Also, with a projected net sales increase of 5% to 7% in fiscal year 2024, Estee Lauder continues to paint a promising picture of growth and resilience.
Industria de Diseno Textil (IDEXY)
Industria de Diseno Textil (OTCMKTS:IDEXY), the global behemoth in apparel retail, boasts a staggering presence with over 7,200 stores sprawled across 93 markets globally. Though it’s recognized primarily for its flagship brand, Zara, its grandeur is further highlighted by other popular brands, including Pull&Bear and Bershka — to name a few. Its formidable success stems from an innovative business model with a vertically integrated supply chain. This unique approach ensures nimbleness, seamlessly empowering the firm to ride various fashion trends.
Despite the tremors in the European retail landscape, IDEXY remains unfazed, delivering impressive first-quarter earnings and a buoyant outlook for the upcoming quarters. The Spanish retailer’s recent performance gleams with robustness, delivering a 15% sales bump in constant currency, a 14% uptick in gross profits and EBITDA, and a remarkable 54% surge in net income year-over-year. Given the ecstatic reception of its spring/summer collection and expectations of stable gross margins, Inditex is poised for an exhilarating journey ahead.
On the date of publication, Muslim Farooque did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
