The fashion apparel, accessories and luxury goods segment is big business — really big.
According to an analysis by WWD of the 563 constituent companies that comprise the Standard and Poor’s apparel, accessories and luxury goods segment of global, public companies, the total market capitalization is $639.9 billion, while annual revenues add up to $376 billion.
And the top 25 companies within the segment generate $228 billion in annual sales and have a total market cap of $448 billion. LVMH Moët Hennessy Louis Vuitton SA, Compagnie Financière Richemont SA and Hermès International Société are the top firms when ranked by market capitalization.
The apparel, accessories and luxury goods segment is a component of the consumer discretionary sector, which is made up of eight segments that also include: specialty apparel retailers; department stores; specialty stores; footwear; general merchandise; catalogue, and Internet retailers. The classifications are determined by the S&P and are based on various factors including industry codes. For example, while Adidas AG is in the apparel, accessories and luxury goods segment, competitor Nike Inc. is listed under footwear.
It’s also important to note that stock values globally in the consumer discretionary sector have performed well for the most part this past year, but many companies within the fashion apparel and accessories segment struggled. Michael Kors Holdings Ltd., for example, came in at number 18 on the list of top 25 companies by market cap with $7.5 billion. But the company has shed nearly 50 percent of its market cap over the past year.
Currently, there are more declining stocks in the sector than there are gainers. A challenging retail environment coupled with a strong dollar and economic woes in China, which has hurt tourism spending abroad, have made it hard for many firms.
Top 25 Apparel, Accessories and Luxury Goods Companies Ranked by Market Capitalization
|Company:||Market Cap (in $U.S. millions):|
|1. LVMH Moët Hennessy Louis Vuitton SA||$80,710|
|2. Compagnie Financière Richemont SA||$41,140|
|3. Hermès International Société||$35,821|
|4. Luxottica Group SpA||$32,095|
|5. Christian Dior SE||$31,159|
|6. VF Corporation||$26,913|
|7. Kering SA||$22,102|
|8. Adidas AG||$19,928|
|9. The Swatch Group AG||$18,966|
|10. Under Armour Inc.||$17,751|
|11. Pandora A/S||$14,821|
|12. Hanesbrands Inc.||$11,512|
|13. Ralph Lauren Corp.||$9,654|
|14. Heilan Home Co. Ltd.||$9,498|
|15. Coach Inc.||$9,158|
|16. Prada S.p.A||$7,990|
|17. Burberry Group plc||$7,892|
|18. Michael Kors Holdings Ltd.||$7,548|
|19. Lululemon Athletica Inc.||$7,256|
|20. Gildan Activewear Inc.||$7,058|
|21. PVH Corp.||$6,089|
|22. Hugo Boss AG||$5,843|
|23. Jiangsu Sanyou Group Co. Ltd.||$5,696|
|24. Li & Fung Ltd.||$5,690|
|25. Youngor Group Co. Ltd.||$5,661|
Source: S&P Capital IQ as of the market close on December 29, 2015.