Sunday, November 03, 2013

Innovations in the Apparel Industry: Top Clothing Stocks

Many innovations are taking place in the apparel industry. For example, Chinese designers are using 3D fitting systems. Amazon (AMZN) just built a 40,000-square-foot photo and video studio for its Fashion group. And more clothing retailers are now starting to target plus-size buyers.

There are numerous stocks in the clothing and apparel field, several of which pay dividends, according to the free list at An example is Hanesbrands Inc. (HBI), which sells underwear to hosiery to bras. The brands include Hanes, Champion, Playtex, Just My Size, L’eggs, Wonderbra, and Zorba. The stock trades at 17.8 times trailing earnings and 14.8 times future earnings. The price to earnings growth ratio is a reasonable 1.15, and the stock sports a yield of 1.3%. Recently announced earnings showed an increase of 14% on relatively flat revenues.

Ralph Lauren Corporation (RL) pays a yield of 1.0%. It markets various apparel products including men’s, women’s, and children’s clothing, footwear, and eyewear. The stock has a price to earnings ratio of 20.9 and a forward PE of 16.5. The PEG ratio is 1.65.

Oxford Industries (OXM)  designs, and distributes apparel products through four primary groups: Tommy Bahama, Lilly Pulitzer, Lanier Clothes, and Ben Sherman. Brands include Kenneth Cole, Dockers, and Geoffrey Beene. The stock has a fairly high PE at 31.4 and a forward PE of 19.9. The stock yields 1.0%.

 Columbia Sportswear Company (COLM), which designs, produces, and sells outdoor apparel and footwear, yields 1.4%.

For a list of all the  clothing and apparel stocks, which includes over two dozen companies, go to

Disclosure: Author didn't own any of the above at the time the article was written. 


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