PVH Corp. (PVH), Michael Kors Holdings Ltd. (KORS), Ralph Lauren Corp. (RL): A Review of Luxury Apparel Industry

       Some analysts believe that the luxury goods sector as recession-proof. This was the case for most of the years after the financial crisis of 2008. But this company really be shielded against the current economic situation? The revenue decline of Chinese influence, most companies in the industry that sales in other regions such as Europe and the U.S. have been sluggish. It is important to choose actions with the business models of high quality. As mentioned in this blog post interesting, leading investors to choose securities with sustainable competitive advantages. As luxury goods companies should look at their business models just in case this situation persists.

Take a look at three companies in the market of luxury clothing: PVH Corp. (NYSE: PVH), Michael Kors Holdings Ltd. (NYSE: KORS) and Ralph Lauren Corporation (NYSE: RL). This may give investors an indication of where the industry is in the middle and lower sales heading if the companies have solutions for this.

PVH: expensive acquisition, but sales growth

PVH Corp. (NYSE: PVH), PVH Corp. (NYSE: PVH) is an American company that sells luxury clothing with a diversified portfolio of brands such as Calvin Klein, Tommy Hilfiger, Van Heusen and Arrow. PVH Warnaco acquired a distributor of smaller clothes in February 2013 for $ 2.9 billion EUR. It struck the costs of HPV, as it spent $ 235 million in integration, restructuring and debt modification Warnaco and a net loss of $ 20 million for the year, compared with a net profit 95.5 million for the year 2012.

However, it is interesting to note that the company's revenues in the fourth quarter 36% to € 1.9 billion compared with the first quarter last year. The takeover of Warnaco is PVH Corp. (NYSE: PVH) a better distribution channel and more control over the Calvin Klein brand. This is a good sign for the market, with PVH Corp. (NYSE: PVH) s' from the increase of more than 8% this week. I think HPV is a great opportunity for future growth and cost Warnaco were used and now he can concentrate on the development of synergies and expand Calvin Klein brand which will surely increase the profits in the short term.

Michael Kors: Impressive Results

Michael Kors Holdings Ltd. (NYSE: KORS) is a brand of luxury clothing with a wide geographical diversification: It has 191 stores in the United States and 46 international stores. Sales is the retail segment (48.1% of total sales) and the Wholesale segment (46.9% of total revenue) is generated. The company has exhibited exceptional growth in sales, from 508 million in 2010 to $ 2.1 billion in 2013, an increase of over 300%.

Recent results also confirm the correct time that the company has: its net profit rose 130% to $ 101 million, compared to the fourth quarter of 2012. In addition, Michael Kors Holdings Ltd. (NYSE: KORS) has large margins, operating income totaled $ 630 million euro with 28.9% of the total turnover meant. The company is certainly not the feeling of an economic downturn. The company's stock has had its ups and downs over the last six months, but it has gained 23% since December 2012. This is another company that could be a great bet for the apparel industry. He controls the cost is an important factor when the sales significantly by itself, which increases its net profit.