If you’ve visited any mall in America recently, you’ve likely stepped into one, or all, of these clothing companies' shops. These stores can outfit a person for every occasion imaginable. Let’s look at the top six most profitable clothing retailers.
Nordstrom (JWN) is a higher-end store that has just recently started to expand internationally. Despite being limited to one country at the moment, Nordstrom’s revenues and net income are high enough to call it a top profitable clothing retailer. In its Q1 2015 results, Nordstrom posted revenue of over $3 billion and a profit of $128 million. While sales were up compared to Q1 2014, expanding to Canada is pricey -- a lesson Target (TGT) learned the hard way in 2013.
L Brands Inc.
You may have never heard of L Brands Inc. (LB), but you have likely shopped at one of its stores. With brands like Victoria’s Secret, La Senza and Bath & Body Works, it’s almost guaranteed that somewhere in every American house, there is an L Brands product. The company posted sales of over $2.5 billion and a net income of $181.5 million in Q1 2015.
Ralph Lauren Corporation
The fashion powerhouse, which is named after its founder, was started in the 1960s and now designs clothes and accessories that can be purchased at Ralph Lauren (RL) stores and department stores worldwide. In its Q3 fiscal 2015, Ralph Lauren posted a 1% increase in year-over-year sales to $2 billion. The company had a net income of $215 million, or earnings of $2.57 per share, and increased its dividend by 11%.
The Gap Inc.
An American household name, The Gap Inc. (GPS) owns three stores that cover every budgetary range: the Gap, Old Navy and Banana Republic. In 2014, the company spent over $1.3 billion in rent to operate its 3 700 retail locations. The Gap had $3.66 billion in sales and netted $239 million or $0.56 per share in Q1 2015. Unfortunately, these figures were lower than the revenue and income figures from 2014 Q1, but with margins of nearly 40%, there’s still a lot of room for The Gap Inc. to make money.
The TJX Companies Inc.
TJX – known to American consumers as T.J.Maxx, Marshalls and HomeGoods and to international clientele as Winners, HomeSense and T.K.Maxx – has had a spectacular year so far. Its Q1 fiscal 2016 earnings show a 6% and 8% increase in sales and net income, respectively, with its 2,500 American stores accounting for over $5 billion in sales. Net income for the international company was $475 million, or $0.69 per share.
The ultimate company in sports apparel has a logo that is instantly recognizable worldwide and was named the most valuable brand in the world in 2014. Nike Inc. (NKE) has exploded since opening its first retail store in 1966, and in its latest quarterly earnings, had revenue of over $7 billion from its Nike products and almost $500 million from its Converse line. From that $7.5 billion, Nike had a net income of $655 million, or $0.74 per share.
The Bottom Line
Despite other clothing retailers posting losses or profits in the low double-digits, these six companies are at the top of the American retail world, with net incomes ranging from $125 million to over $500 million in the first few months of 2015.