5 Best Clothing Stocks To Buy Now

4. Farfetch Limited (NYSE:FTCH)

Number of Hedge Fund Holders: 50

Farfetch Limited (NYSE:FTCH) is a London-based provider of an online marketplace for luxury fashion goods in the United States, the United Kingdom, and internationally. It operates through three segments – Digital Platform, Brand Platform, and In-Store. Farfetch Limited (NYSE:FTCH) is one of the premier clothing stocks to monitor. 

On November 21, investment advisory Societe Generale maintained a Buy recommendation on Farfetch Limited (NYSE:FTCH) but lowered the firm’s price target on the shares to $11 from $12. Analyst Abhinav Sinha issued the ratings update. 

According to the third quarter database of Insider Monkey, Gavin Baker’s Atreides Management is a prominent position holder in the company, with approximately 11 million shares worth $81.30 million. Overall, 50 hedge funds were long Farfetch Limited (NYSE:FTCH) at the end of Q3 2022, up from 39 funds in the earlier quarter. 

Here is what Polen U.S. Small Company Growth Fund has to say about Farfetch Limited (NYSE:FTCH) in its Q1 2022 investor letter:

“We also initiated a position in global luxury fashion e-commerce marketplace Farfetch in the first quarter and took advantage of meaningful weakness in the company’s share price during the period. Farfetch previously had too large a market cap for the Portfolio, but it has since moved to a level where it’s appropriate to own it – both in this Portfolio and in our smid-cap strategy. The company’s fundamentals remain attractive as indicated by the compelling results Farfetch reported in February.

The company remains an early mover with “the world’s only truly global marketplace for luxury at scale”. Farfetch has a broader reach around the world with a diversity of brands that is much larger than its competitors. Many of the items it sells are exclusive. Our research shows that its brand assortment, brand image, geographic breadth, an inventory-light business model, a more compelling offering for luxury partners, and artificial intelligence are all competitive edges for the company. We believe Farfetch is well-positioned for the continued market share shift from offline to online in this category. The personal luxury goods market has trailed other categories in online penetration, but consumer behaviors and preferences shifted as a result of the pandemic creating more comfort with purchasing goods like this online. Changed behavior and the general shift to a higher portion of Millennial and Gen Z luxury shoppers supports this continued shift as does the growth in emerging market demand.”