We-Ge/iStock Unreleased via Getty Images Fashion and apparel in general has been seeing some turbulence lately. To name a few, Burberry ( OTCPK:BURBY ) and Kering ( OTCPK:PPRUF ), in higher fashion, saw just as intense declines as Nike ( NKE ) which has lately reported issues itself, although different in nature - more to do with upstarts taking share . Hugo Boss ( OTC:HUGPF )( OTCPK:BOSSY ) has noticeably overperformed, although still declined particularly from peaks.
Data by YCharts In the case of Boss and the higher end fashion stocks, the situation has been a double-effect of both declining expendable income as the economy resets and rates take their toll. Fashion stocks have also been affected by the fallout from the Chinese economy, where East Asian demand has been an important buoy for these stocks over the past cycle. Part of Hugo Boss' relative outperformance has been the more limited APAC exposure compared to the likes of Kering, which allowed for growth.
All declined on either weak/ decelerating growth or guidance for weaker growth. With a pretty compressed multiple and latent earnings growth from some investments in their brick and mortar presence, we think the stock offers up a decent GARP proposition. Earnings Comments The first thing to call out are the geographies, since the Chinese exposure in this sector the market is important to track.
Geography (PR Q1) Whereas Kering has around 35% of revenue from APAC ex-Japan, Boss has only around 14% of revenue from th.
