On Trend Fashion Stocks to Know

Jul 21, 2021

It is no secret that the global coronavirus pandemic took a heavy toll on the fashion industry. As quickly as March 2020, mere weeks after the COVID-19 epidemic took hold, clothing sales dropped by 34%.

Of course, the decline makes sense. Across the globe, nationwide lockdowns were implemented, forcing citizens to stay home to stem the outbreak. Consequently, it left no room for that age-old fear – nothing to wear? No matter, there’s nowhere to go.

Consumer buying habits weren’t the only issue, though. Supply bottlenecks quickly took hold as distribution centers shut down and borders were closed. Soon enough, the supply had dropped along with the demand.

But, like much of the world, the fashion industry picked itself up by its bootstraps and adapted. Recognising that overproduction and overconsumption were afflicting the industry, many brands began to slow down the pace. If you’re looking for an example of companies streamlining their product offering, consider just how quickly sweatpants were adopted. Shortly after the pandemic took hold, every outlet offered some form of athleisure.

However, as the months of isolation rolled on, consumer fatigue kicked in, and sweatpants no longer cut it. Digital fashion weeks were introduced, and the longing for freedom generated a new buying pattern. Things were picking up.

Not everyone made it out alive. Neiman Marcus Group, J. Crew, and Brooks Brothers were among the companies that filed for Chapter 11 bankruptcy protection. But some were able to get ahead of the situation, and soon enough, the light at the end of the tunnel became visible. Let’s take a look at the fashion stocks that are currently on trend.

5 On Trend Fashion Stocks

  1. Nike (NYSE:NKE)

‘If you have a body, you are an athlete’ reads Nike’s slogan. Inspiring, yes, but also, that simple phrase is telling of the sportswear giant’s target market: everybody.

Nike was founded in 1964 in Eugene, Oregon. Over the years, the brand has grown to become one of the world’s leading sportswear suppliers, known for its Swoosh-emblazoned activewear, partnerships with professional athletes, and limited-edition designs.

After a brief revenue decline at the start of the COVID-19 pandemic, the company is back to comfortably generating sales. Nike forecasts revenue growth percentages in the high single digits to low double digits each year through to 2025.

 

  1. Skechers (NYSE:SKX)

Headquartered in Manhattan Beach, California, all-American brand Skechers is the US’ third-largest athletic footwear label. Its on-trend designs have led to the brand’s global popularity, which enhanced its brand awareness and, as a result, its sales.

Much like its competitors, Skechers struggled as the pandemic took hold but quickly rallied, returning to profit-making status. Its ability to rebound is owed largely to sneaker culture, which is very much alive and well.

 

  1. Farfetch (NYSE:FTCH)

Hailed a rare fashion ‘Unicorn’ back in 2015, Farfetch is the luxury E-tailer that was valued at $1 billion after a fundraising round. The now-public company is known as a carefully curated fashion hub. It’s essentially an extensive global network that connects independent boutiques with shoppers around the world.

Most recently, the company established a joint venture with Alibaba (NYSE:BABA) to bring its marketplace to mainland China – an area where demand for luxury goods is thriving. The company anticipates strong double-digit revenue growth throughout 2021 and beyond.

 

  1. Ralph Lauren Corporation (NYSE:RL)

Beneath the Ralph Lauren Corporation umbrella sits a number of brands, which provide clothing, accessories, and home goods. Ralph Lauren founded his eponymous company in 1967, and over the years, it has gone from strength to strength, adding new subsidiaries along the way.

Viewed as a ‘best-in-breed’ brand, Ralph Lauren Corporation may have experienced a lull in revenue during 2020, but once again, it’s finding its feet. With management working to streamline the business and its fiercely loyal customer base, the brand is expected to rebound nicely.

 

  1. Lululemon Athletica (NASDAQ:LULU)

Founded in Vancouver in 1998, Lululemon Athletica was among the first brands to focus entirely on yoga apparel. Early on, the label recognised a gap in the market for the kind of specialist gear required for more niche sporting pursuits.

It’s no secret that activities like yoga and Pilates, which, combined, have been around for centuries, have become immensely popular as of late. As a result, Lululemon Athletica, which positions itself as a lifestyle brand just as much as an activewear supplier, has experienced great success.

The brand’s double-digit revenue growth is expected to continue as COVID-19 restrictions are lifted, and in-store shopping habits are restored.