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Ralph Lauren Corp (RL), Columbia Sportswear Company (COLM), Under Armour Inc (UA): Fashion Brands Look to Capitalize on Emerging Markets

NIKE, Inc. (NYSE:NKE) is consistently developing new products that are attracting widespread appeal, and it will be difficult for Under Armour Inc (NYSE:UA) to match its development efforts. This is due to Nike’s tremendous amount of free cash flow that it can invest (see chart below).

UA Free Cash Flow data by YCharts

Invest in the internationally established firms

Investing in the developing world is not something short- or even medium-term investors should be doing. These economies are very unstable, but they do have massive long-term potential. It often takes many years before companies start turning a profit overseas, and this means that investors need to be patient. All of these firms offer an incredible amount of profit potential from emerging markets, but I believe that Ralph Lauren Corp (NYSE:RL) and Nike already have some footing that will allow them to capitalize when these markets begin to surge. Columbia Sportswear Company (NASDAQ:COLM) and Under Armour Inc (NYSE:UA) are like a miniature windup car that is ready to take off, but they are less likely to turn profitable overseas in the near-term.

The article Fashion Brands Look to Capitalize on Emerging Markets originally appeared on and is written by Phillip Woolgar.

Phillip Woolgar has no position in any stocks mentioned. The Motley Fool recommends Nike and Under Armour. The Motley Fool owns shares of Nike and Under Armour.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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