3 Luxury Clothing Brand Stocks You Need To Trade

This influx of buying and mass marketing has seen these brands hit all time highs but is this train about to stop?

The world is going through so many changes with major investors such as Michael Burry and Cathie Wood warning of possible pullbacks and recessions these are the exact companies that often take the biggest hit. Also with the Chinese Evergrande $300Billion debt scandal looming, the Asian shoppers are tightening their purse strings and sales are slowing.

3 Luxury clothing brand stocks you need to trade:

MC.PA: LVMH

Owned by Brenard Arnault the super company owns Louis Vuitton, Moet, Hennessy and many other luxury brand companies and has seen their stock hit an all time high of $715.75 with the worst of it going down to $394 during the pandemic. This shows the damage that can be caused with markets pulling back. Near 50% downsides with unknown upsides. When trading this stock make sure you look at short opportunities.

Courtesy of Finance.Yahoo.com

BRBY.: Burberry Group

Founded in 1856 by Thomas Burberry. The Burberry brand has become instantly recognizable thanks to their check patterns and beige/brown design and is considered to be at the top of the luxury goods market. With yearly revenue of $2.34Billion the stock has hit all time highs of $2263 but has recently pulled back all the way down to $1895 (as of Oct 27th 2021) which perhaps has shown signs of what will follow for the other brands in this list.

Resisting at $1800 the stock continues to bounce up and down from $2000 but with consumers slowing down their spending, supply chain issues and covid still casting uncertainty on retail in general we might see the $1300 lows we have experienced in the past 52 weeks again.

Courtesy of Finance.Yahoo.com

RMS: Hermes International

Currently trading at it’s all time highs of $1364 per share the Hermes International brand has continued to grow at a higher rate than most of its competitors. Hermes is still way less known than it’s rivals of LV, Gucci etc so why is this stock continuing to rise? Revenue and great reports is the answer. $8.14B revenue, EPS of 21.2614 and a market cap of $141.22B makes this company one of the worlds giants.

The question is can Hermes continue to grow especially with the majority of their clientele being from China? We don’t think so and we expect to see some sharp pullbacks to the $1100 region within the 1st quarter of 2022.