Fashion stocks: Companies, risks & performance

It can be a luxurious venture, but you need to be a savvy investor. Here’s what you should know about the benefits and risks of investing in fashion stocks.

What are fashion stocks?

The fashion industry generally includes all companies that sell clothing, apparel, accessories, body products and anything you wear to presumably enhance your appearance. Apparel includes online and offline wholesalers and retailers that sell clothing, footwear and accessories.
Fashion has existed as a commodity for centuries. Think of kings and queens, and you’d conjure up images of luxurious robes, jewel-studded crowns and material objects that would make heads turn. The same may be said about today’s celebrities and other trendsetters, so some investors may find it lucrative to seek fashion stocks.

Why invest in fashion stocks?

The fashion industry involves many well-known brands. You hear these names on TV, the internet and across social media. They’re promoted by the biggest names in entertainment.
But the fashion industry isn’t limited to designer handbags and dresses. Think about how many clothing and apparel stores you walk by daily. How many have you been to either in person or online in the last year? After all, people need clothes.
In fact, a report by Statista projects the global apparel market to grow from $1.3 trillion in 2015 to about $1.5 trillion by 2020’s end.
But fashion stocks aren’t limited to clothing and accessories. They also include stocks of makeup companies. According to a report by Grand View Research, the global skincare products market was valued at $134.8 billion in 2018 and is projected to keep growing at a compound annual growth rate (CAGR) of 4.4% up until 2025. The study attributed most of this to the expanding cosmetics industry.
But you can also look at the smaller picture when considering investing in fashion stocks. It may give you an opportunity to invest in the products you buy or the brands you like. This isn’t necessarily a bad idea, but you have to carefully study those brands to make sure they’re performing consistently well. And here is where it can get tricky.

Risks of investing in fashion stocks

One of the biggest fashion stock risks may be volatility. Much of the fashion industry is driven by consumer taste at any given time. Taste can be immensely unpredictable. A clothing trend, for example, may be “in” today and “out” tomorrow. And if the companies that promote this image don’t adapt, they could be in big trouble. So could their investors.
To add another layer of risk, the fashion space indirectly relies on other complex industries. Think about the market for gold, platinum and other precious metals needed to make luxury goods. You also must consider the markets involved in making fashion products. Foreign tensions could impact the exports of raw materials used to make items like clothing and footwear. This includes cotton, wool, silk and other fabrics. For instance, China in October 2020 demanded that its mills stop buying Australian cotton due to speculation that Australia was about to place a hefty tariff on Chinese cotton. This could affect the production of cotton-based products made in China and exported around the world.
Another factor that can contribute to volatility is consumer backlash. While the fashion industry has devout followers, it also has its share of people who aren’t their biggest fans. We’ve all seen “Fur is murder” somewhere. And you’ve probably seen a social media post about why your friend wants you to boycott a certain cosmetics brand over animal testing. If these sentiments were to grip the public consciousness on a massive scale, some fashion industry companies may suffer losses.
It’s important to keep a keen eye on the status of the fashion stocks you’re considering.

Fashion stocks

Because the fashion industry is so vast, there are several companies you can invest in. Here is a list of fashion stocks that may interest you. See how the following stocks are performing, and view details like market capitalization, the price-to-earnings (P/E) ratio, price/earnings-to-growth (PEG) ratio and dividend yield.

Company summary
LVMH Moët Hennessy - Louis Vuitton, Société Européenne operates as a luxury goods company worldwide. The company offers wines, and spirits under the domaine des Lambrays, Château d'Yquem, Dom Pérignon, Ruinart, Moët & Chandon, Hennessy, Veuve Clicquot, Château Galoupet, Ardbeg, Château Cheval Blanc, Glenmorangie, Krug, Mercier, Chandon, Joseph Phelps, Newton Vineyard, Cloudy Bay, Belvedere, Colgin Cellars,Terrazas de los Andes, Bodega Numanthia, Cheval des Andes, Woodinville, Ao Yun, Clos19, Volcan de mi Tierra, and Eminente brands; and fashion and leather products under the Loewe, Moynat, Louis Vuitton, Berluti, RIMOWA, Patou, Loro Piana, FENDI, Celine, Christian Dior, Emilio Pucci, Givenchy, Kenzo, and Marc Jacobs brands. It also provides perfumes and cosmetics under the Stella by Stella Mccartney, Officine Universelle Buly, Guerlain, Acqua di Parma, Parfums Christian Dior, Givenchy Parfums, Perfumes Loewe, Benefit Cosmetics, Make Up For Ever, Kenzo Parfums, Fresh, KVD Beauty, Maison Francis Kurkdjian, Cha Ling, Fenty Beauty by Rihanna, and Olehenriksen brands; watches and jewelry under the Chaumet, Tiffany & Co., TAG Heuer, Zenith, Bulgari, Fred, Hublot, and Repossi brands; and custom-designed yachts under the Feadship brand and hotels under the Cheval Blanc brand names, as well as designs and builds luxury yachts under the Royal Van Lent brand. In addition, the company offers daily newspapers under the Les Échos brand; Belmond, a luxury tourism service; home other activities under the Cova, Jardin d'Acclimatation, Le Parisien, Connaissance des Arts, Investir, and Radio Classique brands; and selective retailing products under the DFS, La Grande Epicerie de Paris, Le Bon Marché Rive Gauche, Sephora, and Starboard Cruise Services brands, as well as operates Jardin d'Acclimatation, a leisure and theme park. LVMH Moët Hennessy - Louis Vuitton, Société Européenne was founded in 1365 and is headquartered in Paris, France.
Historical performance
Stock information
- Market capitalization: $428656984064
- P/E ratio: 26.5255
- PEG ratio: 2.5423
- Dividend yield: 0.0163%
Company summary
The Gap, Inc. operates as an apparel retail company. The company offers apparel, accessories, and personal care products for men, women, and children under the Old Navy, Gap, Banana Republic, and Athleta brands. Its products include adult apparel and accessories; and fitness and lifestyle products for use in yoga, training, sports, travel, and everyday activities for women and girls. The company offers its products through company-operated stores, franchise stores, websites, and third-party arrangements. It has franchise agreements to operate Old Navy, Gap, Banana Republic, and Athleta stores and websites in Asia, Europe, Latin America, the Middle East, and Africa. The Gap, Inc. was incorporated in 1969 and is headquartered in San Francisco, California.
Historical performance
Stock information
- Market capitalization: $7511346688
- P/E ratio: 15.0075
- PEG ratio: 4.1492
- Dividend yield: 0.0287%
Get more detailed information and learn how to buy GPS.US stock
Company summary
L Brands, Inc. operates as a specialty retailers of body care, home fragrance products, soaps, and sanitizers. The company sells its products under the Bath & Body Works, White Barn, C.O. Bigelow, and other brand names. It operates approximately 1,750 Bath & Body Works stores in the United States and Canada, as well as online at BathandBodyWorks.com. In addition, the company has approximately 295 stores in 30 other countries operating under franchise, license, and wholesale arrangements. L Brands, Inc. was founded in 1963 and is headquartered in Columbus, Ohio.
Historical performance
Stock information
- Market capitalization: $21158739968
- P/E ratio: 15.9712
- PEG ratio: 1.6078
- Dividend yield: 0%
Get more detailed information and learn how to buy LB.US stock
Company summary
American Eagle Outfitters, Inc. operates as a multi-brand specialty retailer in the United States and internationally. The company provides jeans, apparel and accessories, and personal care products for women and men under the American Eagle brand; and intimates, apparel, activewear, and swim collections under the Aerie and OFFLINE by Aerie brands. It also offers menswear products under the Todd Snyder New York brand; and fashion clothing and accessories under the Unsubscribed brand. The company sells its products through own and licensed retail stores; concession-based shops-within-shops; and digital channels, such as www.ae.com, www.aerie.com, www.toddsnyder.com, and www.unsubscribed.com. American Eagle Outfitters, Inc. was founded in 1977 and is headquartered in Pittsburgh, Pennsylvania.
Historical performance
Stock information
- Market capitalization: $4461662720
- P/E ratio: 26.314
- PEG ratio: 38.27
- Dividend yield: 0.0221%
Get more detailed information and learn how to buy AEO.US stock
Company summary
Under Armour, Inc., together with its subsidiaries, develops, markets, and distributes performance apparel, footwear, and accessories for men, women, and youth. The company provides its apparel in compression, fitted, and loose fit types. It also offers footwear products for running, training, basketball, cleated sports, recovery, and outdoor applications. In addition, the company provides accessories, which include gloves, bags, headwear, and sports masks; and digital subscription, advertising, and other digital business services. It primarily offers its products under the UNDER ARMOUR, HEATGEAR, COLDGEAR, HOVR, UA, PROTECT THIS HOUSE, I WILL, UA Logo, ARMOUR FLEECE, and ARMOUR BRA brands. The company sells its products through wholesale channels, including national and regional sporting goods chains, independent and specialty retailers, department store chains, mono-branded Under Armour retail stores, institutional athletic departments, and leagues and teams, as well as independent distributors; and directly to consumers through a network of 439 Brand and Factory House stores, as well as through e-commerce websites. It operates in the United States, Canada, Europe, the Middle East, Africa, the Asia-Pacific, and Latin America. Under Armour, Inc. was incorporated in 1996 and is headquartered in Baltimore, Maryland.
Historical performance
Stock information
- Market capitalization: $2932909824
- P/E ratio: 7.427
- PEG ratio: 1.6017
- Dividend yield: N/A%
Company summary
Lululemon Athletica Inc., together with its subsidiaries, designs, distributes, and retails athletic apparel, footwear, and accessories under the lululemon brand for women and men. It offers pants, shorts, tops, and jackets for healthy lifestyle, such as yoga, running, training, and other activities. It also provides fitness-inspired accessories. The company sells its products through a chain of company-operated stores; outlets; interactive workout platform; yoga and fitness studios, university campus retailers, and other partners; license and supply arrangements; and temporary locations, as well as through mobile apps and lululemon.com e-commerce website. It has operations in the United States, Canada, Mainland China, Australia, South Korea, Hong Kong, Japan, New Zealand, Taiwan, Singapore, Malaysia, Macau, Thailand, the Asia Pacific, the United Kingdom, Germany, France, Ireland, Spain, the Netherlands, Sweden, Norway, Switzerland, Europe, the Middle East, and Africa. Lululemon Athletica Inc. was founded in 1998 and is based in Vancouver, Canada.
Historical performance
Stock information
- Market capitalization: $45952557056
- P/E ratio: 29.86
- PEG ratio: 1.2653
- Dividend yield: N/A%
Get more detailed information and learn how to buy LULU.US stock
Company summary
Abercrombie & Fitch Co., through its subsidiaries, operates as an omnichannel retailer in the United States, Europe, the Middle East, Asia, the Asia-Pacific, Canada, and internationally. The company offers an assortment of apparel, personal care products, and accessories for men, women, and kids under the Abercrombie & Fitch, abercrombie kids, Hollister, and Gilly Hicks brands. It sells products through its stores, various wholesale. franchise, and licensing arrangements, as well as e-commerce platforms. The company was founded in 1892 and is headquartered in New Albany, Ohio.
Historical performance
Stock information
- Market capitalization: $5631384064
- P/E ratio: 17.7428
- PEG ratio: -24.52
- Dividend yield: N/A%
Get more detailed information and learn how to buy ANF.US stock

Fashion ETFs

Individual fashion stocks aren’t your only options. You can also buy shares of exchange-traded funds (ETFs) that invest in various fashion companies. ETFs are diversified and professionally managed portfolios of various securities like stocks and bonds. Here are some examples of fashion stock ETFs.

Amplify Online Retail ETF (IBUY)
SPDR S&P Retail ETF (XRT)
VanEck Vectors Retail ETF (RTH)

Direxion Daily Retail Bull 3X Shares (RETL)
Amundi ETF S&P Global Luxury (GLUX)
Amundi ETF S&P Global Luxury UCITS ETF (LUXU)

Compare trading platforms

Regardless of which fashion stock you might invest in, you need a brokerage account. You can easily open one online, but make sure to compare your options.

1 - 6 of 6

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Bottom line

Fashion stocks can be lucrative investments. But watch out for risks like volatility, changing consumer consciousness, external markets like precious metals and more. Before you start investing, compare stock trading platforms to see which one fits.

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Javier Simon is a freelance finance writer at Finder and a certified educator in personal finance (CEPF). He’s featured on NerdWallet, Bankrate, Yahoo Finance and Fox Business, where he’s shared his expertise on personal finance topics, such as investing, retirement planning, taxes, budgeting and savings. He has also covered breaking news, such as student loan forgiveness initiatives, the housing market and inflation’s impact on consumers’ wallets. His passion is turning complex financial concepts into actionable content that can help people improve their financial lives. Javier holds a bachelor’s degree in multimedia journalism from SUNY Plattsburgh.

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Investing in fashion stocks

Eye-catching but subject to volatility

What are fashion stocks?

Why invest in fashion stocks?

Risks of investing in fashion stocks

Fashion stocks

Company summary

Historical performance

Stock information

Company summary

Historical performance

Stock information

Company summary

Historical performance

Stock information

Company summary

Historical performance

Stock information

Company summary

Historical performance

Stock information

Company summary

Historical performance

Stock information

Company summary

Historical performance

Stock information

Fashion ETFs

Compare trading platforms

Bottom line

Javier Simon

Read more on this topic

Ask a Question

Investing in fashion stocks

Eye-catching but subject to volatility

What are fashion stocks?

Why invest in fashion stocks?

Risks of investing in fashion stocks

Fashion stocks

LVMH Moet Hennessy Louis Vuitton SA ADR (LVMUY.US)

Gap (GPS.US)

L Brands (LB.US)

American Eagle Outfitters (AEO.US)

Under Armour Inc C (UA.US)

Lululemon Athletica (LULU.US)

Abercrombie-and-Fitch Company (ANF.US)

Fashion ETFs

Compare trading platforms

Bottom line

Javier Simon

Read more on this topic

Ask a Question

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