Top 3 American luxury goods stocks for 2022
- American luxury goods companies are smaller than their European rivals.
- The industry is expected to bounce back in 2022.
- Besides, too much wealth has already been created in the past two years.
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Luxury goods stocks have done well in 2021 as demand for their products has risen globally. Besides, more wealth has been created in the past two years more than at any time in history. That’s because most assets like cryptocurrencies and stocks have surged helped by low-interest rates. This article looks at the top 3 American luxury goods stocks to invest in.
Capri Holdings (NYSE: CPRI) is one of the biggest American luxury goods companies. It owns brands like Michael Kors, Jimmy Choo, and Versace. The firm has a market capitalization of more than $9 billion and annual revenue of more than $542 million.
Capri Holdings stock is a good investment for several reasons. First, it has the momentum considering that it has risen by more than 50% this year. Second, the company owns some of the best-known brands in the luxury segment.
Third, it is growing its Asian business at a relatively fast rate. Fourth, it is a relatively cheap stock considering that the firm is trading at a multiple of 11. Finally, the company is seen as a good acquisition target by its bigger rivals like Kering and LVMH.
Tapestry (NYSE: TPR) is another well-known American luxury goods stocks. The company owns popular brands like Kate Spade, Coach, and Stuart Weitzman. The firm has a market capitalization of more than $11 billion and annual revenue of more than $5.7 billion.
Most of this income comes from Coach followed by Kate Spade. After making a big loss in 2020, the company’s net profit has bounced back as demand for its products has risen.
The Tapestry stock price has risen by more than 38% in 2021 and there is a possibility that it will keep doing well in the coming years. It has a small portfolio of brands that are also seeing strong digital growth.
Its revenue declined to more than $7 billion in 2020 amid the Covid-19 pandemic but it is expected to do well. Indeed, it has risen to more than $8 billion in the trailing 12 months. Its net income has also grown to more than $503 million this year.
The PVH stock price has risen by more than 7% this year and is expected to do well as the global economy reopens.