Fashion stocks thriving in economic drought

Fashion stocks thriving in economic drought

Stocks of some of the leading apparel and accessories makers reached records this week as investors continued to take heart that the global economic drought was not drying up demand for fashion goods.

Luxury watchmaker Movado Group Inc. (US:MOV)  and PVH Corp. (US:PVH) , which markets the Calvin Klein and Tommy Hilfiger labels, were the latest to join the growing group. Shares of both companies rallied Tuesday after they reported strong-than-expected quarterly earnings and raised their outlooks.

Movado, which also sells watches under brand names such as Concord and Coach, saw its shares shoot up 17% to $35.41 on Tuesday, on track to close at a record. The stock has soared 43% over the past 30 days and is up 95% since the beginning of the year.

PVH, which markets the Calvin Klein and Tommy Hilfiger labels, has also been on a roll, climbing 5% Tuesday, also heading for a record closing level. PVH shares have risen 15% over the past 30 days, and 32% since the start of 2012.


Michael Kors Holdings Ltd. (US:KORS)  has also been basking in the sun. Shares of the fashion house hit their 52-week peak of $54.92 on Monday, helped by a strong earnings report released on Aug. 12. Kors shares have rocketed almost 100% since early January.

Fifth & Pacific Companies Inc. (US:FNP), formerly Liz Claiborne, has also enjoyed a brisk run, with shares leaping 50% year-to-date. The company released an improved earnings report in July, helped by strong sales growth for its trendier brands: Lucky Brand, kate spade, and Juicy Couture.

Ralph Lauren Corp., (US:RL)  meanwhile, has still seen gains, despite warning in early August that demand in Europe could soon weaken. The stock is still up 16% since January, with shares climbing 8% over the past 30 days.

Swatch watchmaker Fossil Inc. (US:FOSL)  has seen its shares advance 14% over the past 30 days and 10% since the start of the year. The stock hit a 52-week high of $139.20 on April 5, but plunged nearly 40% in early May over fears that European sales were slipping. The company’s latest earnings report helped alleviate those concerns, sending shares soaring over 30% shortly after its release on Aug. 7.