Best Clothing & Apparel Stocks

Take a look at these top-performing clothing and apparel stocks you may want to add to your portfolio.

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Contributor, Benzinga
December 21, 2024

Express, Inc. (OTC:EXPR)

Express, Inc. is a United States-based specialty apparel retailer. It offers apparel and accessories for work, casual, jeanswear, and going-out. The company also sells the products through its e-commerce website and mobile app, as well as through franchisees who operate company locations in Latin America according to the franchise agreements. It derives revenue from the sales of apparel, accessories and other products, of which a majority of the revenue from the sale of apparel.

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Children's Place (NASDAQ:PLCE)

As one of the largest kids’ clothing manufacturers, The Children’s Place designs apparel for children that focuses on quality, value and style. The company also has a subsidiary brand, Gymboree. It began selling toys, apparel and accessories before it decided that apparel had the most growth potential.

The company stock has an EPS of $4.76 and a P/E ratio of 7.82. It has a market cap of $541 million and has high liquidity with over 1 million shares traded per day. The Children’s Place has an annual dividend yield of 6.09%. It generated total revenue of $1.9 billion in 2019.

In February 2020, The Children’s Place relaunched its brand, Gymboree, that includes 8 collections for kids. Gymboree has an enhanced loyalty program that rewards customers on every purchase they make in-store, online or on the mobile app.

$10.26
-0.19[-1.82%]
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Vol / Avg.297.219K / 707.781KMkt Cap131.852M
Day Range10.130 - 10.72052 Wk Range4.770 - 38.030

Nike (NYSE:NKE)

Thanks to its incredible brand power, Nike Inc. needs no justification for its investment thesis. Even when the company courted political criticism for its stance on social justice, the partisan controversy did not hurt NKE stock over the long run. Indeed, such frontrunning decisions may have helped the brand even more.

Sure enough, the pandemic attempted but ultimately failed to slow Nike down. In its quarter ended Nov. 30, 2020, the company delivered revenue of $11.2 billion, up nearly 9% from the year-ago period.

$76.94
-0.16[-0.21%]
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Open75.960Close76.940
Vol / Avg.49.883M / 12.389MMkt Cap114.248B
Day Range74.859 - 78.00052 Wk Range70.750 - 123.392

Under Armour (NYSE:UA)

Under Armour develops, markets, and distributes athletic apparel, footwear, and accessories in North America and other territories. Consumers of its apparel include professional and amateur athletes, sponsored college and professional teams, and people with active lifestyles. The company sells merchandise through wholesale and direct-to-consumer channels, including e-commerce and more than 400 total factory house and brand house stores. Under Armour also operates a digital fitness app called MapMyFitness. The Baltimore-based company was founded in 1996.

$7.78
0.22[2.91%]
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Vol / Avg.4.527M / 3.623MMkt Cap3.360B
Day Range7.450 - 7.89052 Wk Range6.020 - 10.620

Ralph Lauren (NYSE:RL)

Founded in 1967 by Ralph Lauren, Ralph Lauren Corp. designs, markets, and distributes lifestyle products in North America, Europe, and Asia. Its products include apparel, footwear, eyewear, jewelry, leather goods, home products, and fragrances. The company’s brands include Polo Ralph Lauren, Lauren Ralph Lauren, Chaps, Double RL, and Club Monaco. Distribution channels for Ralph Lauren include wholesale (including department stores and specialty stores), retail (including company-owned retail stores and e-commerce), and licensing

$230.28
7.82[3.52%]
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Vol / Avg.1.629M / 659.160KMkt Cap14.276B
Day Range221.510 - 233.27052 Wk Range134.900 - 237.160

The American fashion industry is a billion-dollar industry for good reason with retail stores packing every American city. Certain companies don’t even stock clothing, opting for online stores, websites and even customization. The online fashion industry has enjoyed consistent growth, even through the COVID-19 pandemic. As a result, eCommerce outlets account for nearly 30% of fashion sales, and the compound annual growth rate (CAGR) in the fashion world will grow and it’s possible that new companies could emerge in this sector at any time. Here’s a guide to help you identify the best clothing stock to add to your portfolio. 

Quick Look at the Best Clothing & Apparel Stocks:

Overview: Clothing Stock

From regular pajamas to flashy clothes, everyone needs to buy clothing. Fashion brands dominate the market with new designs every season. Clothing stocks earn their revenue from domestic and international sales and expose your portfolio to a global market. You can even find many clothing stocks under $10

VF Corporation (NYSE: VFC) makes 35% of its revenues from direct-to-consumer sales and a massive 45% of its revenues from sales outside the U.S. For example, Tapestry (NYSE: TPR) has over 1,500 retail outlets around the world that stock clothing. It makes about 60% of its revenue from sales in North America and around 30% of its revenue from sales in Asia. 

On the other hand, there are online outfits like Stitch Fix (NASDAQ: SFIX) that offer customization options and an “on-to-go” shopping experience. The company offers direct support to consumers, building wardrobes and custom looks. At the same time, the consumer never needs to visit the store.

Still, other firms have both a robust online and retail presence. For example, Express, Inc. (NYSE: EXPR) has a massive fleet of retail locations, selling both men’s and women’s clothing. At the same time, the company has a powerful app and website where consumers can peruse the same selections they would find in stores along with exclusives and a clearance section.

Best Online Brokers for Clothing Stock

Online brokers let you easily trade stocks and manage your financial portfolio. These platforms also provide tons of educational resources to help you improve your trading strategy. 

Here’s a glimpse of the best online brokers on the market right now. 

Features to Look for in Clothing Stock

Take a look at the following as you evaluate which clothing stop option to add to your portfolio:

  1. Earnings per share (EPS) is calculated by dividing the total income of a company by its total number of outstanding shares. Negative EPS scores may indicate that the company is operating under losses. 
  2. The price-to-earnings (P/E) ratio can help you determine if the clothing stock is undervalued or overpriced. The lower a company’s P/E ratio, the more undervalued it is. Penny stocks under $5 often have the lowest P/E ratios.
  3. Check the dividend yield. Plenty of clothing stocks reward their shareholders with quarterly or annual dividends. These dividends can be issued in cash or equity, depending on the company. If a company has announced it’ll cut back on its dividends or stop them temporarily, it might indicate that the company is in bad financial health. 

No One Strategy Fits All

Just as in fashion, there isn’t a single unified investment strategy that’s one size fits all. Invest in clothing stocks that fit your financial needs. Fashion has a cyclical business model and seasonal shopping trends can spike the price quote of clothing stocks. Moreover, trends can push certain companies from one end of the spectrum to the other—one day they stock clothing, and they’re an online-only outfit the next. Review trends carefully throughout the year and buy clothing stocks at an opportune time to earn the most you can. 

Q

What are clothing stocks?

A

Clothing stock is shares from a company that sells clothing.

Q

Are clothing stocks a good global investment?

A

Because many clothing retailers sell their products globally, clothing stock is a great global investment.

Q

Are clothing stocks expensive?

A

You can find clothing stocks in all price ranges.