CLOTHING STOCK TIPS

Here are some tips worth considering before you go investing in clothing stocks:

Visit the Stores

Visit the store; check the look and feel of the products for yourself. Use your judgment. (Peter Lynch actually discovered Hanes stock because his wife came home from the store freaking over egg-shaped containers of stockings, called L’Eggs!) While visiting, analyze their promotional activities. Is the company promoting its merchandise to drive foot traffic or earnings? When companies desperately sell their products at deep discounts at the end of a season, margins and earnings are often negatively affected.

Examine Gross Margin Trends

A decline in gross margins (either sequentially or year-over-year) should be a serious red for an investor. Examine gross margins and make sure they are growing before investing.

Examine Same-Store-Sales Data

This data reveals how a store fares on a period-to-period basis and is arguably the most important metric in retail sales analysis.

Examine Inventory/Receivable Trends

When inventories grow at a faster rate than revenues, it’s likely due to the company’s inability to sell certain merchandise. Investors should be checking in on sequential and year-over-year trends in both inventories   and   accounts receivable to ensure that they are growing at the same pace as revenues.

Compare P/E Ratios Vs. Expected Earnings Growth Rates

“Cheap” companies are those that trade at an earnings multiple that is less than the expected growth rate. These companies may be worth a further look.

---

*** UPDATE -- Thursday, April 17, 2025 -- MOTLEY FOOL STOCK ADVISOR AVERAGE RETURN OF ALL 500+ STOCK PICKS IS 902% VS THE S&P500'S 173% ****

The Fool investing philosophy is hold stocks for at least 5 years, invest regularly, and ride out the dips. Here is just a sample of some recent picks:

• SHOP picked again June, 2024 and it is up 78%
• TSLA picked again May, 2023 and it is up 155%
• CRWD picked March, 2023 and it is up 193%
• NOW picked January, 2023 and it is up 190%
• TTD picked again Dec, 2022 and it is up 141%
• AMZN again Nov, 2022 and it is up 138%

Also, the Motley Fool just launched a special promotion: $100 off (see the link below).

Here is their release schedule of their upcoming stock picks:

• April 3, 2025 - New Stock Recommendation
• April 10, 2025 - List of 5 Best Stocks to Buy Now List
• April 17, 2025 - New Stock Recommendation
• April 24, 2025 - List of 5 Best Stocks to Buy Now

So, if you have a few hundred dollars to invest each month and plan on staying invested for at least 5 years, we haven't found any better source of stock picks.

New Pricing: Motley Fool has slashed it price $100 for its top stock picking service.

---