The fashion industry, long criticized for its substantial environmental impact, is undergoing a major transformation. Recognized for contributing 10% of global greenhouse gas emissions and being a major water consumer, the sector is shifting gears towards sustainable fashion technology. This shift towards sustainability isn’t just good for the planet; it’s aligning with environmental, social, and governance criteria, indicative of the potential for long-term sustainable fashion stocks.
Sustainable fashion stocks are emerging as a promising investment avenue, and the innovation in the sphere spans from creative design and manufacturing processes to the use of eco-friendly materials, enhancing consumer engagement. This technological revolution is changing how we produce, consume, and interact with fashion, presenting a compelling long-term case for investors. The journey, though fraught with challenges, presents a dual opportunity for environmental stewardship and financial gain.
PVH (PVH)
PVH (NYSE:PVH) stands as a beacon in sustainable fashion. Housing high-profile brands, including Tommy Hilfiger and Calvin Klein, the enterprise extends its influence through licensing deals with companies such as Kenneth Cole New York and Michael Kors. Amidst the consumer discretionary sector’s flux, the company has remained steadfast, in maintaining financial health but in pioneering sustainable practices.
PVH’s latest financial reports reflect a resilient performance despite the market challenges, with its quarterly sales rising 3.6% to $2.36 billion in the third quarter, slightly outpacing analyst predictions. This uptick underscores PVH’s adeptness at navigating market volatility. The company’s strategic approach to inventory management also points to a careful balance of profitability and prudence, particularly as it prepares for the fourth quarter.
What truly sets PVH apart, however, is its unwavering commitment to sustainability, encapsulated in its “Forward Fashion” strategy. By achieving 60% renewable energy use in its operations and committing $10 million to the Fashion Climate Fund, PVH is not just talking the talk but walking the walk in eco-conscious fashion. Moreover, its focus on global mentorship with an emphasis on diversity aligns with its vision for a more sustainable future.
Levi Strauss (LEVI)
Levi Strauss (NYSE:LEVI) isn’t just a legacy in denim but a luminary in sustainable fashion, making it a compelling long-term choice for ESG-focused investors—the firm’s significant strides in reducing environmental impact place it at the forefront of eco-conscious apparel. Since 2016, Levi’s has cut supply chain greenhouse gas emissions by an impressive 23%, setting its sights on a 40% reduction by 2025.
Levi’s journey towards sustainability is marked by a notable shift to renewable energy, significantly lowering emissions in company-operated facilities while looking for 100% renewable electricity by 2025. In its most recent financial showing, Levi’s third-quarter earnings slightly surpassed expectations, posting an EPS of 28 cents against a forecasted 27 cents per share, despite sales falling marginally short at $1.51 billion. This shift, combined with its sustainable and circular fashion endeavors, positions Levi Strauss as a powerful company with a clear vision for growth and responsibility.
Lululemon (LULU)
Lululemon (NASDAQ:LULU) stands as a shining example of a stock offering incredible long-term rewards, at over 50% year-to-date. The athletic apparel company boasts a powerful retail footprint with 14 new stores, totaling 686 outlets while leveraging its online platform to boost sales. Especially popular among younger consumers, Lululemon is outpacing many of its rivals, including industry giant Nike, with a remarkable 19% year-over-year revenue increase in the third quarter. The company’s recent announcement of a $1 billion stock repurchase program signals a strong commitment to rewarding its investors. This move, coupled with Lululemon Athletica’s robust financials, including double-digit profit margins, positions the company as a highly attractive bet. Such financial prowess, combined with a clear focus on increasing investor value, underscores the company’s appeal to shareholders. This makes it one of those sustainable fashion stocks to consider.
Beyond financial success, Lululemon’s dedication to sustainability adds another layer to its attractiveness as an investment. The company’s efforts in reducing supply chain greenhouse gas emissions align with global climate commitments, including the Paris Agreement. Moreover, these initiatives, woven together with Lululemon’s strong market position and financial performance, present the firm as not just a profitable but also a responsibly forward-thinking investment choice.
On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines
