Fashion and Stocks: Everything To Know Before Investing
As investors plan their next move when it comes to either buying or selling their stocks, the thought of buying a share towards a fashion company is often not considered. For those not familiar with the stock market, it is indexes of investments towards sharing ownership in a company. Technology companies and big brands such as Amazon, Tesla, Apple, Paypal, Shopify and more are all what these investors normally strive towards. But what about the fashion market and the constant growing of consumers everyday who rely on these companies? Some of the most successful fashion brands such as LuLuLemon is not only an expensive stock but it is at the top of the list for several fashion stocks. Ranging from yoga, loungewear, lifestyle and fitness, this stock has continued to grow to about 90% since last year. Another strong stock in this industry is Nike. Being such a popular and valuable apparel company, there is no doubt that they continue to sky-rocket every year when it comes to sales and revenue. Despite not being a cheap stock being priced at almost $100, it is inevitable that even the highest priced stocks will continue to dip in the midst of the pandemic.
Even luxury brands such as Burberry, Louis Vuitton, Christian Dior and more continue to remain steady in their sales and profit. The most important question regarding all of these brands is, are fashion stocks worth the price? It can be a risky investment due to the fact that a lot of people have been switching their shopping habits from fast fashion to more sustainable and ethical ways. It is okay to invest in a brand you know a lot about and consistently shop at but you need to be aware of the risks that you are taking when doing so. Some of the essential tips you should know is doing deep research on the brand itself. Look at their quality, how much people shop there, how much they make, gross margin, sales data, growth rates, earnings, and their competition.
If you invest into a fashion brand but then there is a competitor that can slide your stock off the market, then it will affect how much you’ve put into the stock. Once figuring out the research of the brand and their success, it is based on personal judgement whether you should make this investment or find another company.
Photo Sources: capital.com, currency.com, ig.com
Report: Pamela Valdez
At the rise of Covid-19 many of us first questioned the timeline of fashion week and would we see the regular calendar continue - the question weighed over many of us for months! It was refreshing to see design houses and designers across the globe take advantage of the uncertainty and plow into production mode - thus my interest in Jerri Reid New York - The Black Designer based in Brooklyn New York wow’d instagram with his latest collection paying homage to the Black Is King film which debuted earlier this year in July. I was taken aback at quick of a turn round the young designer produced and released his well crafted designs reflecting some of the films most memorable moments.