Top 12 Apparel Stocks by Marvin Scores
Marvin's rules picked 12 apparel stocks across retail, manufacturers and footwear. Buckle, Kontoor Brands and Weyco Group have the highest Overall scores, which compare each company with others in its own industry.
Apparel companies design, make or sell clothing, shoes and accessories. This list covers three parts of that business: stores that sell clothes, brands that make them, and footwear and accessory makers. Marvin's rules chose 12 companies from these groups.
The scores describe how each company compares with other companies in its own industry today. A retailer is scored against retailers and a shoemaker against shoemakers, so scores are not a straight comparison across the whole list.
Keep the figures in each pick in mind too. Margins show how much of each sale a company keeps, growth shows whether sales are rising, and debt-to-equity shows how much a company relies on borrowing. Some figures are missing for certain companies, and the blurbs say so.
The list
How Marvin ranked these stocks
Marvin included companies above a minimum size cutoff and ranked them by Marvin scores, which run from zero to one hundred and are relative to each company's own industry. The list covers three related industries: Apparel - Footwear & Accessories, Apparel - Manufacturers and Apparel - Retail. Each industry contributes at most four companies, and the highest Overall score comes first.
Companies above about $300 million in size, ranked by Marvin scores (0-100, relative to each company's own industry). The 3 related industries in this group (Apparel - Footwear & Accessories, Apparel - Manufacturers, Apparel - Retail), highest Overall score first; at most 4 per industry.
The stocks, one by one
The Buckle, Inc. BKE
The Buckle has the top Overall score on the list at 95. An operating margin of 20.8% and return on equity of 45.2% point to strong profitability. Caution: revenue growth of 6.6% is modest, and debt-to-equity data is not available.
Kontoor Brands, Inc. KTB
Kontoor Brands grew revenue 20.9% last fiscal year, the fastest on the list, and keeps a free cash flow margin of 12.3%. Caution: debt-to-equity of 2.06 is higher than any other company here that reports it, so borrowing is worth watching.
Weyco Group, Inc. WEYS
Weyco Group converts sales into cash well, with a free cash flow margin of 16.2% and an operating margin of 15.3%. Caution: revenue changed by -4.9% last fiscal year, meaning sales shrank, and return on equity of 13.6% is modest.
Ross Stores, Inc. ROST
Ross Stores has a quality score of 93, with return on equity of 39.4% and moderate debt-to-equity of 0.70. Caution: its gross margin of 29.7% is thinner than most peers here, and its opportunity score of 61 is lower.
Urban Outfitters, Inc. URBN
Urban Outfitters grew revenue 11.1% and earns an operating margin of 11.3%, a healthy showing for a retailer. Caution: its free cash flow margin of 4.6% is thin, so less of each sale turns into spare cash. Debt-to-equity data is not available.
Abercrombie & Fitch Co. ANF
Abercrombie & Fitch has the highest opportunity score on the list at 92, with an operating margin of 13.7% and return on equity of 39.6%. Caution: revenue growth of 6.4% is moderate, and gross margin and debt figures are not available.
Deckers Outdoor Corporation DECK
Deckers Outdoor shows very strong profitability, with an operating margin of 22.7%, a free cash flow margin of 20.2% and a quality score of 94. Caution: its opportunity score of 50 is the lowest in the top half, and debt data is not available.
Ralph Lauren Corporation RL
Ralph Lauren has a high gross margin of 70.3% and grew revenue 14.6%, with debt-to-equity of 1.10. Caution: its free cash flow margin is not available, so how much cash it keeps from sales cannot be judged here.
Steven Madden, Ltd. SHOO
Steven Madden carries little debt, with debt-to-equity of 0.40, and grew revenue 11.0%. Caution: its operating margin of 7.5% and return on equity of 15.5% are thinner than most others on this list.
Levi Strauss & Co. LEVI
Levi Strauss has a high gross margin of 62.8% and return on equity of 24.4%, with debt-to-equity of 0.97. Caution: revenue growth of 4.1% is slow, and its opportunity score of 56 is on the lower side.
Crocs, Inc. CROX
Crocs has strong margins, with an operating margin of 20.7% and a free cash flow margin of 17.4%. Caution: revenue changed by -1.5% last fiscal year, meaning sales slipped, and debt-to-equity of 1.22 is on the higher side.
Columbia Sportswear Company COLM
Columbia Sportswear keeps a free cash flow margin of 9.4% and a gross margin of 52.2%. Caution: revenue growth of 0.9% is almost flat, its operating margin of 7.5% is thin, and it has the lowest Overall score here at 75.
Common questions
Which apparel stock on this list grew revenue the fastest?
Kontoor Brands grew revenue 20.9% in its last fiscal year, the highest on the list. Ralph Lauren was next at 14.6%. Weyco Group and Crocs saw sales decline.
What does Marvin's Overall score mean?
The Overall score runs from zero to one hundred and shows how a company compares with others in its own industry today. It is a comparison tool, not a prediction or a recommendation to buy or sell.
Why are some figures missing for certain companies?
A figure is left out when the data needed to calculate it is not available for that company. In those cases the blurb says so rather than guessing, and it is worth looking at the company's own financial reports for the missing detail.
Keep reading
- Top 15 Retail Apparel Stocks by Marvin Score
- Top 15 Consumer Cyclical Stocks by Marvin Opportunity Score
- Top 15 Consumer Cyclical Stocks Right Now
- Top 15 Consumer Cyclical Companies by Business Quality
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Marvin's scores (0-100) compare each company with others in its industry today. Growth and margin figures come from SEC filings. This is general information, not personal investment advice or a recommendation to buy or sell anything. Do your own research.