NEW YORK - In a recent study by T-shirt brand Chummy Tees, Nike (NYSE:NKE) has emerged as the most-listed clothing brand on major online resale platforms eBay (NASDAQ:EBAY) and Depop, with more than 1.1 million listings. The study, which analyzed 100 top brands, found that Ralph Lauren (NYSE:RL), Levi's (NYSE:LEVI), Zara, and Victoria's Secret follow Nike in the ranking, with Ralph Lauren being the most popular brand on eBay.
The data indicates a significant presence of apparel brands in the resale market, reflecting consumer trends and the growing popularity of secondhand fashion. Nike's listings on eBay and Depop are 893,000 and 219,000 respectively, while Ralph Lauren has a combined total of nearly 1.03 million listings, with the majority on eBay. Levi's, in third place, shows a stronger preference among eBay users with over 572,000 listings compared to 74,000 on Depop.
Zara, ranking fourth overall, is particularly favored by younger generations, holding the title of the most-listed brand on Depop. Victoria's Secret rounds out the top five, although its presence on Depop is notably lower than on eBay, suggesting a shift in its popularity among younger shoppers.
The study also highlights Gucci as the most-listed luxury label, ranking 21st with over 205,000 listings. The findings offer insights into the resale market's landscape in 2024, as consumers increasingly turn to online platforms for buying and selling pre-loved clothing, partly due to rising living costs.
Josh Neuman, Founder of Chummy Tees, commented on the results, noting the diverse preferences across eBay and Depop and the importance of understanding the fragmented market to cater to different buyer demographics.
This news is based on a press release statement.
InvestingPro Insights
In light of the recent study showcasing Nike's dominance in the online resale market, it's interesting to note the company's robust financial metrics that may be influencing its market position. According to InvestingPro data, Nike's market capitalization stands at a healthy $1963.12 million USD, signaling strong investor confidence in the brand's value and its ability to maintain a leading role in the apparel industry.
Furthermore, Nike's P/E ratio, which measures its current share price relative to its per-share earnings, is currently at 7.75, with a slight adjustment to 8.05 when looking at the last twelve months as of Q4 2023. This indicates that investors find Nike's stock to be reasonably valued given its earnings performance, which could be a factor in its popularity among both consumers and investors.
An InvestingPro Tip highlights that Nike is trading at a low P/E ratio relative to near-term earnings growth, which suggests that the stock could be undervalued considering its growth potential. Moreover, the company's strong free cash flow yield, as implied by its valuation, is an attractive aspect for investors, aligning with the company's ability to generate cash and potentially reinvest in growth or return value to shareholders.
For those interested in delving deeper into Nike's financial health and market prospects, there are additional InvestingPro Tips available. For instance, it's worth noting that Nike holds more cash than debt on its balance sheet and pays a significant dividend to shareholders, with a notable dividend yield of 10.31% as of early May 2023. These factors contribute to the company's financial stability and appeal to income-focused investors.
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