Below we presented the list of 5 Best Fashion and Apparel Stocks to Invest In. For our detailed discussion and a more comprehensive list please see 10 Best Fashion and Apparel Stocks to Invest In.
5. Capri Holdings Limited (NYSE:CPRI)
No of HFs: 36
Total Value of HF Holdings: $426 Million
The top hedge fund holder of this stock is Ricky Sandler’s Eminence Capital which had $133 million invested in the stock at the end of September. An insider recently purchased a 50,178 share at around $28 in August 2019. The stock is up 46% since then. Avory & CO mentioned a few of their comments on CPRI in its 4Q 2020 investor letter:
“John Idol, was amongst the most nimble and resilient CEOs in 2020. Capri, as most of the retail sector, faced various challenges; 1) Supply disruptions in their leather goods as a result of the large impact covid had on Italy, 2) Dwindling demand as brick and mortar locations were forced to shut down globally and 3) Debt due in December of 2020. John acted quickly and reduced his cost base through global furloughs, delayed reopenings, turned to social selling and clienteling, was able to refinance all the debt in 2020 and pushed it out multiple years, along with getting their three brands, Jimmy Choo, Versace, and Michael Kors to positive or mid negative single-digit comparable sales by August. Coming out of Covid Capri is a leaner business. Versace is realizing positive sales, and they now expect 2020 to be a profitable year. We believe that this type of management execution can and should totally transform the narrative around this company for many years to come.”
4. Cintas Corporation (NASDAQ:CTAS)
No of HFs: 38
Total Value of HF Holdings: $741 Million
Diamond Hill Capital mentioned a few of their comments in the stock in its Q1 2020 investor letter:
“Cintas Corp. provides U.S. businesses with uniform rental services and restroom cleaning, first aid, safety and fire protection goods and services. We re-initiated a short position in Cintas as we believe the stock price does not reflect the likelihood its results will be hard hit by increases in unemployment caused by the COVID-19 pandemic.”
3. Tapestry, Inc. (NYSE:TPR)
No of HFs: 39
Total Value of HF Holdings: $670 Million
TPR is the 3rd best fashion and apparel stock to invest in. The top hedge fund holder of this stock is Ken Griffin’s Citadel Investment Group which had $118 million invested in the stock at the end of September. An insider recently purchased 12,980 shares at around $15 in August 2019. The stock is up 106% since then. The company is known to be the first new work based house of modern luxury lifestyle brands. They were recently named as the “Best Place to Work for LGBTQ Equality” in Human Rights Campaign’s 2021 Corporate Equality Index. Joanne Crevoiserat, Chief Executive Officer of Tapestry, Inc said,
“We strive to foster an inclusive culture and to champion the individuality and diverse perspectives of our people. We are incredibly proud to receive this recognition for the seventh consecutive year, and will continue to take action on our commitment to ensuring that all of our employees feel respected, supported and valued.”
2. Under Armour, Inc. (NYSE:UAA)
No of HFs: 48
Total Value of HF Holdings: $846 Million
UAA is known for its game-changing sports apparel, athletic shirts, shoes, and accessories. The company recently announced their mutual agreement with Southampton FC to part ways. In a statement,
“Under Armour and Southampton FC have valued the relationship over the last four years and will continue to celebrate the on and off-pitch accomplishments shared together. The club thanks Under Armour for being a great partner and wishes them continued success in their future endeavors.”
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1. Lululemon Athletica (NASDAQ:LULU)
No of HFs: 50
Total Value of HF Holdings: $1.27 Billion
The top fashion and apparel stock to invest in is LULU. At the end of September, a total of 50 hedge funds tracked by Insider Monkey were long this stock. The top hedge fund holder of this stock is Ken Griffin’s Citadel Investment Group which had $264 invested in the stock at the end of September. LULU was mentioned as one of the 12 Best Fitness Stocks to Buy Now. Brown Advisory mentioned a few of its comments on LULU in its Q2 2020 investor letter:
“The recent market volatility afforded us the opportunity to swap out of our position in TJX Companies into Lululemon Athletica. While nothing at TJX was broken, our action was purely an upgrade from one good business model into an even better one, in our view. We believe Lululemon has an exceptional business model within the athleisure apparel space. The company has complete control over its product line distribution, which is rather unique for an apparel company. This gives the company a favorable margin structure, coupled with a fast-growing top line. As compared to TJX, Lululemon also benefits from a higher percentage of sales from e-commerce, which is becoming more important in the near and long term.”
Please also see 10 Most Expensive Fashion Brands In the World and 10 Underperforming Stocks Targeted By Short Sellers.
