After nearly two years of supply-chain disruptions and poor demand, the global fashion industry is finding its footing again. McKinsey Fashion Scenario Tips Global fashion sales will reach 103-108% of 2019 levels in 2022, Sales are expected to pick up this year due to slowdown in demand.
Given the dynamics of the apparel industry, the integration of technological innovations such as Artificial Intelligence (AI), Augmented Reality (AR), Virtual Reality (VR), and data analytics is driving the growth of the industry. Additionally, with sustainability dominating the fashion agenda lately, companies are aggressively expanding their sustainable assortment and up the supply chain.
Given this background, the fashion stocks Hugo Boss AG (cow), Chico’s FAS, Inc. ,CHS), Nordstrom, Inc. ,JWN), Macy’s, Inc. ,M), and Dillards, Inc. ,DDS), which are currently trading at a discount to their peers, can be solid additions to one’s portfolio.
Hugo Boss AG (cow,
Headquartered in Metzingen, Germany, Bossi develops, markets and distributes clothing, footwear and accessories for men and women worldwide.
BOSSY sales increased 55.3% year-on-year to €772 million ($813.44 million) for the fiscal quarter ended March 2022. Gross profit 58.7% to €476 million ($501.55 million) from a year ago price. Net income increased 425% year-on-year to €26 million ($27.40 million). In addition, its EPS came in at €0.35, up 369.2% from the prior-year quarter.
Analysts expect BOSSY’s revenue to come in at $787.59 million for the fiscal quarter ending June 2022, indicating year-over-year growth of 5.8%. Also, the company’s revenue is expected to grow 10.4% year-on-year to $3.38 billion in the current fiscal. It exceeded consensus EPS estimates in three of the last four quarters.
In terms of its forward EV/EBITDA, BOSSY is currently trading at 6.20x, 22.6% lower than the industry average of 8.01x. Its trailing-12-month value/cash flow multiplier of 4.59 is 55.6% below the industry average of 10.33.
BOSSY rose 3% intraday to close yesterday’s trading session at $10.66.
BOSSY’s strong fundamentals are reflected in its power rating, The stock has an overall rating of A, which translated to strong buys in our POWR rating system. The POWR rating is calculated by considering 118 different factors, each factor weighted to an optimum degree.
BOSSY also has an A grade in Growth and Quality and a B in Value. It’s B-rated. Ranked #2 out of 68 stocks in fashion and luxury industry.
In addition to what’s said above, we’ve also rated the BOSY for momentum, sentiment, and stability. get all bossy ratings Here,
Chico’s FAS, Inc. ,CHS,
CHS operates as an omnichannel specialty retailer of women’s privately branded casual-to-dressy clothing, intimates and complementary accessories.
In March 2022, CHS announced the advancement of digital-first capabilities with new mobile shopping apps across the company’s brands to integrate customers’ omnichannel shopping. These enhanced digital capabilities should help it expand its market reach.
For the fiscal quarter ended April 30, 2022, CHS’s total net sales increased 39.4% year-over-year to $540.92 million. Its income from operations increased 703.5% from a year ago value to $45.41 million. Net income for the quarter stood at $34.93 million, representing an increase of 491.2% year-over-year. In addition, its net income per share was $0.28, up 450% from the prior-year quarter.
The Street expects CHS revenue to come in at $543.90 million for the quarter ended July 2022, indicating year-over-year growth of 15.2%. Its EPS is expected to improve 19.1% year-on-year to $0.25. CHS also outperformed consensus EPS estimates in each of the last four quarters.
In terms of its forward EV/EBITDA, CHS is currently trading at 6.51x, 18.7% lower than the industry average of 8.01x. Its forward price/sales multiple is 0.33, which is 61.4% lower than the industry average of 0.86.
Shares of CHS are up 21.3% over the past month to close the previous trading session at $5.24.
The solid fundamentals of CHS are reflected in its POWR rating. The stock has an overall rating of B, which is equivalent to Buy in our POWR rating system.
The company has an A grade in quality and a B in value and development. Ranked #4 in Fashion & Luxury industry. To get the CHS rating for Momentum and Sentiment, click here,
Nordstrom, Inc. ,JWN,
JWN, a fashion retailer, provides apparel, footwear, beauty, accessories and home goods for women, men, young adults and children.
On April 26, JWN announced its plans to open a new Nordstrom Rack in the spring of 2023, which will be located in NoHo West, a mixed-use complex in the North Hollywood neighborhood of Los Angeles, CA. JWN expects the new location to help the company strengthen its network and serve its customers better by bringing their favorite brands at the best prices.
JWN’s net sales grew 18.7% year-over-year to $3.47 billion for the fiscal quarter ended April 30, 2022. Its net income rose 112% from a year-ago value to $20 million, while its EPS improved 112.4 percent year-over-year. -Years up to $0.13.
JWN’s revenue is expected to grow 8.9% year-over-year to $3.98 billion for the fiscal quarter ending July 2022. The consensus EPS estimate of $0.81 for the same quarter reflects 65.9% year-over-year growth.
In terms of its forward EVs/sales, JWN is trading at 0.51x, 49.8% lower than the industry average of 1.02x. Its forward price/sales multiple is 0.24, which is 71.5% lower than the industry average of 0.86.
Shares of JWN are up 3.2% year-over-year to close the last trading session at $23.34. This.
The company has an overall B rating, which translates to Buy in our proprietary rating system. JWN is rated A in value and B in quality and development. within that Industry, it is ranked #13.
click here To see additional POWR ratings for stability, speed and sentiment for the JWN.
Macy’s, Inc. ,M,
M, an omnichannel retail organization, operates stores, websites and mobile applications. The company sells a wide variety of merchandise such as apparel and accessories for men, women and children; Cosmetics; home furnishings; and other consumer goods.
On March 31, Am announced its plans to open a new 1.4 million-square-foot, automated direct-to-consumer fulfillment center in North Carolina in 2024 to meet the growing demands of its omnichannel business. “This state-of-the-art facility is an important milestone for Macy’s, Inc. as we invest in strengthening our omnichannel ecosystem. It will support the growth of our business as a leading omnichannel retailer,” said Denise Mullahy, Macy’s, Inc.’s chief supply chain officer said.
M’s net sales grew 13.6% year-over-year to $5.35 billion in the fiscal first quarter of 2022. Its net income rose 177.7% year-over-year to $286 million, while its adjusted EBITDA and EPS increased 44.6% and 176.9% from its year-ago values to $684 million and $1.08, respectively.
Analysts expect M’s revenue for the fiscal year ending January 2023 to be $24.58 billion, indicating modest year-over-year growth. M also outperformed consensus EPS estimates in all the previous four quarters, which is impressive.
In terms of its forward P/E, M is currently trading at 4.47x, 62.2% lower than the industry average of 11.82x. Its forward EV/sales multiple is 0.44, which is 57.4% lower than the industry average of 1.02.
The stock is up 4.8% over the past year to close the previous trading session at $23.34.
It should come as no surprise that M has an overall rating of B, which is on par with Buy in our power rating system. Price in stock and A grade in quality. In the fashion & luxury industry, M is ranked #14.
In addition to the Power Rating grade, which I just highlighted, you can view M’s ratings for Momentum, Growth, Sentiment, and Stability. Here,
Dillards, Inc. ,DDS,
DDS operates retail department stores in the United States. Its stores offer merchandise for women, men and children including fashion apparel, accessories, cosmetics, home goods and other consumer goods.
DDS net sales grew 21.3% year-on-year to $1.61 billion for the fiscal quarter ended April 30, 2022. Its net income rose 58.7% from a year-ago price to $251.10 million, while its EPS rose 88.7% year-over-year. -Years to $13.68. In addition, its net cash provided by operating activities was $365.20 million, up 20.8% from the prior-year quarter.
DDS revenue is expected to grow 0.14% year-on-year to $6.63 billion in the fiscal year ending January 2023. It also beat consensus EPS estimates in each of the last four quarters.
In terms of its upfront price/sales, DDS is currently trading at 0.73x, which is 14.7% lower than the industry average of 0.86x. Its forward P/E multiple is 10.11 which is 14.5% lower than the industry average of 11.82.
The stock is up 60.2% over the past year to close the previous trading session at $258.95.
The power rating of DDS reflects this promising outlook. The company has an overall rating of B, which translates to Buy in our proprietary rating system. DDS is rated A in price and quality. Ranked #17 in stock Fashion and luxury industry.
click here To view additional power ratings for Momentum, Growth, Stability and Sentiment for DDS.
BOSSY shares were trading at $10.66 per share, up $0.31 (+3.00%) on Thursday morning. Year-on-year, BOSSY has declined -10.07%, while the benchmark S&P 500 index has gained -20.23% during the same period.
About the Author: Komal Bhattari
Komal’s passion for the stock market and financial analysis inspired her to pursue investment research as a career. His fundamental approach to analyzing stocks helps investors identify the best investment opportunities. More…