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Amazon Files Trademark Applications, Boosts Fashion Presence


Amazon.com Inc. AMZN is making great endeavors to rule every sphere of the retail sector. Recently, Amazon intends to upend the fashion industry, in a bid to become a bigger fashion destination.

Reportedly, the company has filed U.S. trademark applications for eight clothing brands, which include outerwear and children’s gear.

The e-commerce giant already has a big collection of clothing in its e-commerce platform. The latest effort will allow the company to bring in more apparel options that are high in demand.

This move is in sync with the company’s strategy to mark its presence in the fashion world. This will expand the product offerings of the company, helping it to attract more customers to its platform. Consequently, this will expand its customer base, in turn driving top-line growth.

Shares of Amazon have outperformed its industry on a 12-month basis. The stock has registered a gain of 98.3% compared with the industry’s growth of 36.2% in the said period.

Fashion Retail Holds Promise

Per a recent data from Statista, the U.S. fashion e-commerce market is expected to generate revenues of $103 billion in 2018.

Further, it is anticipated to witness a CAGR of 7.5% between 2018 and 2022 and reach $137.8 billion by 2022. The apparel segment remains a key growth driver.

Vast portfolio of apparels and other fashion items, Prime Wardrobe and other benefits of Prime will continue to aid the company’s growth in the fashion market.

Bottom Line

Amazon’s vast and efficient e-commerce platform has already overwhelmed the brick & mortar stores in the retail sector.

The company has gained a competitive advantage over many companies via offering a shopping service similar to Prime Wardrobe.

Recently, Amazon announced its plans to enhance product offerings by bringing a wide variety of fashion apparels and active sportswear ranging from designer Reinaldo Lourenco’s collection to Alpargatas’ Havaianas flip flops to Levi’s Jeans. The company intends to sell these product offerings through its e-commerce platform in Brazil and have them delivered via third-party vendors.

The latest effort should further aid Amazon to grab a significant hold in the fashion market, given all the above-mentioned Prime benefits and other endeavors.

Zacks Rank & Other Stocks to Consider

Amazon currently carries a Zacks Rank #2 (Buy). Other top-ranked stocks in the same industry include Infineon Technologies AG IFNNY, ON Semiconductor Corporation ON and Rambus Inc. RMBS, each carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Long-term earnings growth for Infineon Technologies, ON Semiconductor and Rambus is currently projected to be 7.5%, 13.2% and 10%, respectively.

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