Consumer Stocks That Have Weathered the Storm

Frank
July 22, 2017
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While their competitors blamed weaker-than-expected results to the consumer goods macro environment in the first quarter, these companies came out unscathed. How were they able to prosper in recent months while their rivals did not? A closer look at four of the winners:

Estee Lauder

Cosmetics giant Estee Lauder Companies Inc. (EL) has seen its shares jump 5.5% since posting earnings last week, in contrast to industry peer Revlon Inc. (REV), whose stock is down almost 25% on Q1 results Monday.

The New York City-based makeup company leveraged its premium brand image and strong online presence to target Millennial shoppers, as young consumers demand makeup to support the “athleisure” trend. (See also: How Estee Lauder Lured in Millennials.)

PVH Corp

While apparel makers combat a harsh retail environment due to a surge in ecommerce and declining brick-and-mortar sales, PVH Corp. (PVH) managed to offer investors a sigh of relief in the most recent quarter.

Analysts attributed the New York City-based owner of Tommy Hilfiger and Calvin Klein better-than-expected results to strong brand recognition, product diversity and international growth as U.S. apparel makers doubles down on ecommerce and direct-to-consumer initiatives

Hasbro

Pawtucket, R.I.-based toy company turned entertainment giant Hasbro Inc. (HAS) saw its shares reach all-time highs on Q1 results, in stark contrast to rival toymaker Mattel Inc. (MAT), down 12.4% after earnings.

The company behind both Nerf and Monopoly said solid results were driven by a new digital focus, as the company sets forward new initiatives for its popular franchises across platforms such as film and online.

Adidas

Shares of German footwear giant Adidas AG (ADDYY) hover near all-time highs, up about 56% in the most recent 12-month period as North American shoe trends help to revive the European company ahead of its struggling American peers Nike Inc. (NKE) and Under Armour Inc. (UAA). The sportswear company has successfully targeted Millennials as it improves corporate culture, boosts ecommerce and leverages a mix of celebrity endorsements to create “sustainable brand loyalty” in the U.S.

Other peers that have managed to secure strong returns for shareholders in Q1 include Adidas’ German peer Puma SE (PMMAF) and Nelsonville, Ohio-based footwear maker Rocky Brands Inc. (RCKY). (See also: Adidas Stomps Nike in North America and China.)

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