11 Best Global Luxury Stocks to Buy

In this blog post, we will examine the top 11 luxury stocks worldwide that are worth investing in at the moment. If you're not interested in reading about the luxury goods industry, you can navigate directly to our list of the 5 finest global luxury stocks to purchase.

Based on JPMorgan's analysis, even though Americans are cutting back on spending money on things they don't really need, the demand for high-end products remains strong. The research conducted by the financial services company, based in New York, showed that the luxury goods industry experienced a 7% increase in growth compared to the previous year's fourth quarter, proving its ability to handle challenges. Consumers have been leaning towards purchasing luxury items by using the savings they accumulated during the COVID-19 pandemic. JPMorgan's findings indicate that the extra money saved by people in the US reached its highest point at around $2.1 trillion in the second quarter of 2021, but had dropped to around $800 billion by the second quarter of 2022. These savings are estimated to run out completely by the third quarter of 2023.

Chinese consumers, like their American counterparts, have saved a significant amount of money during the pandemic. According to JPMorgan, the average savings rate in China increased from 29.9% in 2019 to 33.5% in 2022. In the first two months of 2023, retail sales in China saw a significant increase of 17% compared to the previous year, reaching a four-year high. The retail boom was primarily driven by industries such as gold and jewelry, cosmetics, and apparel. Chiara Battistini, the Head of European Luxury and Sporting Goods at JPMorgan, believes that if the strong demand for luxury goods continues, it could result in a sales growth of 35% to 40% in the Chinese market. This growth has sparked interest among investors in luxury brand stocks and luxury stocks ETFs such as the Amundi S&P Global Luxury (GLUX.DE), which tracks the performance of the S&P Global Luxury Index. For more information on the top luxury clothing stocks to invest in, you can visit our blog on the topic.

According to the Altagamma Luxury Study conducted by Bain and Company, Matteo Lunelli, the President and CEO of Ferrari Trento, a well-known producer of sparkling wine, pointed out that the global luxury goods industry made sales of $1.53 trillion (€1.4 trillion) in 2022. Despite the uncertainty in the global economy, there is a general belief that the luxury goods industry will see an increase in sales and market size in the coming years. The study predicts a significant growth in the number of luxury goods consumers, with an estimated increase from 400 million consumers currently to 500 million by the end of this decade. India is expected to become one of the fastest-growing luxury goods markets worldwide, with its industry size projected to grow 3.5 times by the end of this decade due to the changing preferences of younger demographics. Hedge funds suggest that some of the top luxury brands to invest in include PVH Corp. (NYSE:PVH), Tesla, Inc. (NASDAQ:TSLA), and Capri Holdings Limited (NYSE:CPRI).

Here are the top 11 luxury stocks from around the world that you should consider investing in

Image captured by Christian Wiediger on Unsplash

We utilized Insider Monkey's extensive database, which consists of 910 top-tier hedge funds, to compile a lineup of the 11 most promising global luxury stocks to invest in during Q2 2023. This selection also encompasses European luxury stocks. The stocks have been arranged in ascending order based on the extent of hedge fund ownership.

"L'Oréal: A Leading Beauty Brand"

Amount of Hedge Fund Holders: 2

Hedge Fund Holdings Valued at $1,100,734

L'Oréal S.A. is a renowned cosmetics and beauty business headquartered in Clichy, France. They boast an impressive collection of 23 high-end brands, including Lancôme, Giorgio Armani Beauty, Yves Saint Laurent (YSL) Beauty, and Urban Decay.

L'Oréal S.A., which is the largest cosmetics company globally, focuses on the luxury market with its L'Oréal Luxe Division. This division covers skincare, makeup, and fragrance products. In the first quarter of 2023, the division experienced a 7.7% year-on-year increase in sales, reaching $4.09 billion (€3.73 billion). In April 2023, the division made its biggest acquisition to date by purchasing the Australian luxury personal care brand Aesop for $2.5 billion.

"Richemont SA: A Leading Financial Company "

The count of hedge fund investors: 2

Hedge Fund Holdings Worth 1.3 Million Dollars

Richemont SA, headquartered in Bellevue, Switzerland, is a leading luxury goods conglomerate established in 1988. The company predominantly operates in the lucrative sectors of high-end jewelry and watchmaking and boasts an impressive collection of prestigious brands which include Cartier, Montblanc, Van Cleef, Arpels, and Jaeger-LeCoultre.

Luxury goods company Richemont achieved its highest ever sales of $21.91 billion (€20 billion) in the latest financial year, showing a 14% increase compared to the previous year when accounting for currency fluctuations. Additionally, the company saw a substantial rise in operating profit, which grew by 33% to reach $5.48 billion (€5 billion).

LVMH - Luxury Powerhouse

There are presently three hedge fund holders.

The amount of money invested in hedge fund holdings is $1,889,977.

LVMH Moët Hennessy - Louis Vuitton, European Company (OTC:LVMUY) is a multinational conglomerate specializing in luxury goods, headquartered in Paris, France. This company stands out as one of the largest luxury corporations worldwide, boasting a diverse collection of brands spanning numerous industries.

LVMH, a prominent multinational company, possesses a range of prestigious luxury labels such as Louis Vuitton, Christian Dior, TAG Heuer, Hublot, and Sephora. Furthermore, approximately two years ago, LVMH Moët Hennessy - Louis Vuitton, Société Européenne (OTC:LVMUY) successfully completed the acquisition of Tiffany, an esteemed American jewelry brand, for a staggering $16 billion.

During the second quarter of 2023, Fisher Asset Management emerged as the top hedge fund investor in LVMH Moët Hennessy - Louis Vuitton, Société Européenne (OTC:LVMUY).

Ralph Lauren Corp

Amount of Hedge Fund Investors: 25

The amount of money invested in hedge fund assets is valued at $323,263,320.

Ralph Lauren Corporation, a luxury fashion and lifestyle brand established in 1967, is located in New York. This company covers a wide range of products, including garments, accessories, perfumes, and household items.

Bank of America identified Ralph Lauren Corporation (NYSE:RL) as one of the top 10 stocks with good value in July 2023. John Kernan from TD Cowen also raised the target price for Ralph Lauren Corporation (NYSE:RL) shares from $141 to $150 while affirming an optimistic rating on the stock on June 21. In the fourth quarter of fiscal year 2023, Ralph Lauren Corporation (NYSE:RL) witnessed a significant 30% increase in sales in China.

Stellantis N.V.: Exciting Stock On NYSE

Amount of Hedge Fund Holders: 27

Hedge Fund Holdings Equate to a Whopping $468,156,280 in Dollar Value

Stellantis N.V., listed on the New York Stock Exchange under the ticker symbol STLA, is a multinational automotive corporation headquartered in Hoofddorp, a city in the Netherlands. This conglomerate was formed through the merging of two prominent automobile companies: Fiat Chrysler Automobiles (FCA), an Italian-American automaker, and the PSA Group from France.

Stellantis N.V., a company that owns various luxury car brands including Alfa Romeo and Maserati, is considering the option of separating from its Italian luxury automotive brand Maserati. Maserati, which was established in 1914, is being evaluated by Stellantis before any decision is made. The company aims for Maserati to achieve an operating margin of 15% within the next year, an improvement from its current margin of 8.7% in 2022. This is part of a larger plan to reach a long-term operating margin of 20% by the end of the decade.

In its investor letter for the third quarter of 2022, Miller Value Partners expressed its perspective on Stellantis N.V. (NYSE:STLA). Here is the firm's statement:

We have taken an initial position in Stellantis N.V., a company that manufactures Jeep, Dodge, and Fiat vehicles. The company offers a dividend yield of almost 8%, and its balance sheet shows enough net cash to cover the dividend for nearly five years. The market seems to anticipate a decrease in cash flow, as evidenced by the company's 1.7x operating profits. However, we believe that the shares are undervalued and have potential for significant growth. Management also shows a strong commitment to stockholders, owning 14% of the company. They share our belief in the appealing valuation and intend to repurchase approximately 3% of outstanding shares this year.

"Ferrari N.V. : The Ultimate Dream Car"

There are 30 hedge fund investors.

Hedge Fund Holdings Valued at $848,926,430

Ferrari N.V., a renowned luxury sports car manufacturer hailing from Maranello, Italy, saw its inception in 1939 under the guidance of Enzo Ferrari. The company has successfully cultivated a reputation for designing top-tier, prestigious sports cars that embody opulence, meticulous craftsmanship, and state-of-the-art advancements.

In July 7, Adam Jonas at Morgan Stanley raised the predicted value of Ferrari N.V. (NYSE:RACE) from $310 to $340 and maintained a positive rating on the stock. Moreover, Ferrari N.V. (NYSE:RACE) took the place of Tesla, Inc. (NASDAQ:TSLA) as the favored choice at Morgan Stanley in March 2023. This switch was due to Ferrari N.V.'s perceived resilience to the potential consequences of an economic downturn.

Ensemble Capital Management provided their insights on Ferrari N.V. (NYSE:RACE) in their investor letter for the first quarter of 2023.

"Ferrari N.V. (NYSE:RACE) (+26.48%): The highly anticipated Purosangue by the renowned luxury car manufacturer has been so well-received that they have announced the cessation of accepting new orders. The demand for this four-door, four-seater vehicle is so tremendous that all available units have been sold out until 2024. Unlike other luxury carmakers' generic sports utility vehicles, the Purosangue is crafted as a genuine Ferrari that caters to the practical transportation needs of their dedicated fan base. Typically, Ferraris are seldom driven, accumulating just a few thousand miles annually, making them more akin to mechanical masterpieces than mere modes of transport. However, with the advent of the Purosangue, Ferrari enthusiasts now have a vehicle that caters to their transportation needs while preserving the exceptional, upscale experience expected from a vehicle priced at approximately $500,000."

Aside from Ferrari N.V. (NYSE:RACE), several top luxury stocks to consider for purchase are PVH Corp. (NYSE:PVH), Tesla, Inc. (NASDAQ:TSLA), and Capri Holdings Limited (NYSE:CPRI).

Click here to read on and discover the top 5 luxury stocks worldwide that are worth investing in.

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Disclaimer: Not applicable. The article titled "Top 11 Luxury Stocks to Invest in Worldwide" was first published on Insider Monkey.