The world’s most valuable fashion brand  

The Story

A recent study reveals that Nike is the world’s most valuable fashion brand at a whopping $31 billion. H&M comes in second place at $19 billion and Zara is third at $14 billion. Impressive numbers, but are these brands worth investing in?

How does Nike differentiate

Self-lacing sneakers, a plus-sized workout clothing line and high-performance hijabs are just some of Nike’s innovations attracting a range of consumers.

So should I be investing in Nike?

Sportswear is hot right now but ecommerce may be a threat to highstreet stores. In response, Nike are upping their brick-and-mortar game by defining customer experience. When it comes to investing, one of the checks you should have in place is to look at past performance*. Nike’s revenue and profit has grown since 2013, and over five years their share price has climbed from $25, today it’s $55. They also paid out around 1% in dividends each year.  
 
*Past performance does not guarantee future success. You should look at the bigger picture before investing. We have a guide for this. 

What does this mean in real terms?

To buy 40 shares in Nike five years ago would have cost $1000 (40 x $25). Today they would be worth $2,200 (40 x $55), a $1,200 gain. Plus, you would have got $10 to $20 in dividends each year. All in, it’s more than 120 per cent return on the initial $1,000 invested.

How about H&M?

They are investing in IT, expanding their online business. This has helped keep the brand strong. 

When you in invest in H&M (Hennes & Mauritz AB) you're also investing in other brands because they're all part of the same group. These brands include & Other Stories, COS and Cheap Monday. The share price of the group is around 210 Swedish Kroner (£20) which is the same as five years ago and in this time it made a 363 Kroner (£34) high. The dividends have been around 3.5% each year on average. 

MOXI Round-Up 

Fashion brands can be volatile as new trends emerge each season. If you want to be a brand investor, make sure you know the brand well and have reason to believe it will be successful in the future. Also look at the brands performance and financials, we have a guide for that.