Investing in the K-Shaped Recovery (NYSE: CPRI) (OTC US: SKDI) (NYSE: SIG)
March 03, 2021 at 07:53 AM EST
It’s sad but true: the recovery from the pandemic crisis and its associated deep recession has been about as uneven as any in modern history.
The government keeps sending money out the door, but the result has been far from equitable, with the “haves” benefitting from rising asset prices and the “have-nots” suffering from deep cuts to services and poor jobs growth.
From the perspective of cold-blooded investment analysis, the endgame is a reality where expensive goods and exclusive services are riding high. That puts luxury goods stocks front and center as a major investment theme as another $1.9 trillion in stimulus gets ready to roll out the door, likely fueling a further rise in asset values and ramping demand for luxury goods.
With that in mind, we take a look at a few interesting luxury goods stocks with momentum and active catalysts: Capri Holdings Ltd (NYSE:CPRI), Sun Kissed Industries Inc (OTCMKTS:SKDI), and Signet Jewelers Ltd (NYSE:SIG).
Capri Holdings Ltd (NYSE: CPRI) bills itself as a global fashion luxury group, consisting of iconic brands that are industry leaders in design, style and craftsmanship.
Its brands cover the full spectrum of fashion luxury categories including women’s and men’s accessories, footwear and ready-to-wear as well as wearable technology, watches, jewelry, eyewear and a full line of fragrance products. The Company’s goal is to continue to extend the global reach of its brands while ensuring that they maintain their independence and exclusive DNA.
Capri Holdings Ltd (NYSE: CPRI) most recently announced the appointment of Alejandro Martinez-Galindo as Chief Information Officer of Capri Holdings, reporting to Thomas Edwards, EVP, Chief Financial Officer and Chief Operating Officer. His start date is March 8, 2021.
Mr. Edwards said, “Alejandro brings significant experience leading global retail digital transformations, large-scale enterprise systems implementations and data analytics innovation. His strong track record over a broad range of industries and focus on driving business results will help accelerate Capri Holdings continued digital and ecommerce evolution.”
And the stock has been acting well over recent days, up something like 4% in that time. Shares of the stock have powered higher over the past month, rallying roughly 86% in that time on strong overall action.
Capri Holdings Ltd (NYSE: CPRI) pulled in sales of $835K in its last reported quarterly financials, representing top line growth of 159.6%. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($17.7M against $1.1M).
Sun Kissed Industries Inc. (OTCMKTS: SKDI) is now doing business as SFLMaven, a high-end online jewelry retailer that brought in sales of nearly $11 million in 2019 and over $130 million since 2004 on a proven track record featuring strong revenues over seventeen years. One is told to expect a FINRA name change soon.
SFLMaven is actually a very interest luxury jewelry online ecommerce auction distributor with MM revenues for nearly two decades. The company also appears to have knocked the ball out of the park last year during a very difficult macro context, which is impressive and suggests this name deserves to be on the radar despite its sub-penny per-share price tag.
Sun Kissed Industries Inc. (OTCMKTS: SKDI) – aka SFLMaven – most recently announced another strong result in its latest “Famous Thursday Night Auction” event. According to the release, SFLMaven’s “Famous Thursday Night Auction” events take place every Thursday evening. SFLMaven has been closing all its auctions on Thursday nights for the past 18 years.
For the week ended Thursday, February 25, the Company booked a total of $197,905 in gross sales, which was primarily the result of its Thursday Night Auction event. Thursday’s auction was highlighted by the sale of the Gia Certified Platinum 7.30ct no-heat Ceylon Sapphire and Diamond Cocktail Ring, which sold for more than $4,700.
“Thursday’s auction was another very strong result concluding another strong week of sales for SFLMaven,” commented Joseph Ladin, CEO of SFLMaven. “We will keep interested shareholders in the loop on a weekly basis going forward, so make sure to pay close attention to our social media feed. 2021 is off to a great start and we look forward to another successful ‘Famous Thursday Night Auction’ event later this week.”
Sun Kissed Industries Inc .(OTCMKTS: SKDI) looks to have roped in over $7.5 million in sales last year. The company is steadily growing, with some powerful growth potential, especially relative to current market valuation, and especially given the context, which is favoring luxury goods sellers. Keeping an eye on its Thursday Night Auction results may offer an edge with material payoff for traders and investors in the space.
Signet Jewelers Ltd (NYSE: SIG) bills itself as the world’s largest retailer of diamond jewelry, and it represents the parent company to most of the world’s top jewelers.
The company operates approximately 2,900 stores primarily under the name brands of Kay Jewelers, Zales, Jared, H.Samuel, Ernest Jones, Peoples, Piercing Pagoda, and JamesAllen.com as well as digital marketplaces under multiple websites.
Signet Jewelers Ltd (NYSE: SIG) recently announced the appointments of André Branch and Dontá Wilson to its board of directors, effective immediately. Their appointments will expand Signet’s board to 12 from 10 members, 11 of whom are independent, and will further position the company’s goal to reinvent how people browse, shop and purchase jewelry for all occasions.
“We’re thrilled to welcome André and Dontá to the Signet Board of Directors,” said H. Todd Stitzer, Board Chairman. “These dynamic, transformative leaders with incredible backgrounds and track records join Signet at an exciting time, and embody what we seek from our directors – agile mindsets, proven leadership and innovative thinking. I’m confident they will help fuel our work accelerating Signet’s digital-first, omnichannel transformation under CEO Gina Drosos’ leadership.”
And the stock has been acting well over recent days, up something like 6% in that time.
Signet Jewelers Ltd. (NYSE: SIG) generated sales of $1.3B, according to information released in the company’s most recent quarterly financial report. That adds up to a sequential quarter-over-quarter growth rate of 46.4% on the top line. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($1.3B against $1.7B, respectively).
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