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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Madharry who wrote (77999)	8/30/2025 4:26:50 PM
From: Paul Senior	Read Replies (1) \| Respond to of 78498

OT. This clothing stuff is sometimes a mush in my mind, and I often can't seem to separate my preference for some stocks from my views about my personal clothing preferences. The value aspect "We are value investors" and spending money on clothes/fashion is the least of our concerns. (Perhaps this is you and Harshu.). Back in the day, my sister saw Warren Buffett several times in the investment office where she worked. Described as a cheap suit guy. The typical value investor? Perhaps there are two categories or maybe a range. The people who are price-conscious and buy to replace their wardrobes. Versus people who are tend to be on the other side - fashion conscious and maybe even you-are-what-you-wear types. For the first category, maybe its TJX, COST, WMT (not sure, don't shop there). Maybe in the middle- AMZN (wide variety/links to specialty mfgrs). Maybe also TGT (trying to come back into more fashionable merchandise now). Perhaps Designer Brands (DBI, large losing position here). On the other far end maybe Ralph Lauren, French retailers, Jimmy Choo (CPRI, tracking position for me), Coach (small position), others. Of all, none are value plays, imo. For a growth type clothing retailer, I'd say it would be TJX (tracking position) with its good history. For me, I am in the you-are-what-you wear school: I'm much more fashion-conscious and much less price-conscious. I don't expect to see the demand for fashion clothes (mid level fashion or high level) really diminish. Enough people will still cough up money to "look good" maybe a little different or a little better than the majority. --- Or maybe I'm too involved with my own proclivities. Because I like to buy stocks of the products I own, I'll sometimes do that even though the stocks are not value buys. Which leads me to say, fwiw, I will reenter ONON with a tracking positon on Tuesday. finance.yahoo.com ===== Well my days of buying clothes and shoes from China at great prices seem to have come to an end. I've more than a closet's worth, but still would've liked to shop for more. The de minimis is ending for all countries starting August 29, 2025. Goods from China and Hong Kong valued at or under $800 became subject to an ad valorem rate of duty or a postal fee starting May 2, 2025, at 12:01 a.m. ET.

To: Madharry who wrote (77999)	8/30/2025 5:33:36 PM
From: E_K_S	Read Replies (2) \| Respond to of 78498

Below are my two positions in the apparel sector based on their "Value Proposition" & brands. Both you and Paul discuss different appareal/clothing companies but I see none of the value metrics. Here are two I own (my 'basket') and have made many buys over months/year to build. The basket totals a 1% portfolio position. 1) Kontoor Brands Inc (KTB) Kontoor Brands Inc. is an apparel company. It designs, manufactures and distributes products. The company's brand consists of Wrangler(R), Lee(R) and Rock & Republic(R). Kontoor Brands Inc. is based in Greensboro, United States. 14.87x PE; 2.74x Debt/Equity; ROE 68.76% also pays a 2,7% dividend 4 Buys in 2023; 9 Buys in 2025 avg cost $54.38/share 0.66% portfolio position +42% total return to date (excluding div) 2) American Eagle Outfitters (AEO) American Eagle Outfitters Inc. is a specialty retailer of casual apparel, accessories, outerwear and footwear for men and women. It, along with its subsidiaries, engages in the designing and marketing of casual clothing. The company operates under the American Eagle (AE) Brand, Aerie by American Eagle and an online retailing channel, AEO Direct. AE Brand: Under this brand, the company sells latest fashion apparel and accessories for men and women in the age group of 15-25 years. Aerie by American Eagle: Aerie is a lifestyle brand providing simple and stylish apparel, especially for young girls. The company sells apparel through its standalone Aerie stores across the U.S. and Canada, and globally through its online channel, aerie.com. AEO Direct: Through this online retail channel, it sells a wide range of apparel and accessories from its different brands. It merchandises its products through e-commerce websites, ae.com and aerie.com. 11.76x PE; Debt/Equity 0.07x; ROE 13.34% also pays a 3.86% div 10 Buys in 2025; avg cost $10.27/share 0.32% portfolio position +26% total return to date (excluding div) -------------------------------------------------------------------------- KTB was a Motley Fools reccomended longterm buy & hold. That motivated my Buys in 2023. I see my costs range from $41/share (all buys in 2023 were in low $40's) to a high of $67/share (range from $52-$67 in 2025). AEO was one I sold at $20.93/share in 8/2024 and started new position in 2025 at/below $10/share I had built a nice position in 6/2022 through 6/2023 w/ avg price around $11.50/share and netted a +81% gain. So, when I had the chance to accumulate AEO shares below $10/share, it appear a bargain based on the 5 year reversion to the mean. However s Paul says, these companies are cyclical, some new tariff issues and fashion challenges, I still think their model works fine if you can get at value price. KTB is a different business w/ jeans is more established. KTB products are sold internationally in regions including the U.S., Europe, the Middle East, Africa, and Asia-Pacific. A significant portion of its owned manufacturing is located in the Western Hemisphere, with a major hub in the Yucatán Peninsula, Mexico. Kontoor Brands has also collaborated with textile mills in other countries, such as a facility in India, for its water-saving initiatives. ---------------------------------------------------------------------- Reason for such high Debt/Equity for KTB - Helly Hansen Acquisition: The most significant reason for the high debt load is the company's planned acquisition of the global outdoor and workwear brand, Helly Hansen. This deal is valued at approximately $900 million and is being financed with a large amount of debt—around $700 million—and cash. This has caused a substantial increase in Kontoor's debt, and its debt-to-EBITDA ratio is expected to rise considerably as a result. --------------------------------------------------------------------- Peers of KTB: Levi Strauss & Co. (LEVI): A direct competitor in the denim market, LEVI's P/E ratio is typically in the range of 19.6x to 22.3x. This is generally higher than KTB's, suggesting investors may have higher growth expectations for Levi. PVH Corp. (PVH): A diversified apparel company that owns brands like Calvin Klein and Tommy Hilfiger, PVH's P/E ratio is often lower, around 9x to 12x, reflecting different market dynamics and growth profiles. Skechers USA, Inc. (SKX): As a footwear and apparel company, Skechers has a P/E ratio around 14x to 15x, which is comparable to or slightly lower than KTB's. SKX announced a "Take-Private" deal by private equity firm 3G Capital last week. ( The official date for the transaction to close and for Skechers to become a private company is September 12)