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While the global economy is taking longer than we'd like to land a full recovery, there are retail stocks to buy right now to benefit from better times ahead.
And now – since the stock market is always anticipatory – we're seeing some interesting opportunities in the luxury goods sector.
Not since the era of nighttime soaps Dynasty and Falcon Crest have we seen such demand for luxury goods. And that shopping trend already is paying dividends to investors holding luxury retail stocks.
The Dow Jones Luxury Index has risen 18% year to date. That's just shy of the broader market, with the Dow up 18% and the S&P 500 up 19%.
Though luxury shares have been choppy for the last few months, a confluence of factors will soon start luxury stocks higher. Investors just need to know the right retail stocks to buy now…
Retail Stocks: M&A and IPOs Unlock Profits in 2013
The market's climb this year has given birth to a flurry of mergers and acquisitions of luxury goods retailers, including the latest rumor – the $6 billion purchase of Neiman Marcus by Ares Management and a Canadian pension plan. Neiman is currently owned by Warburg Pincus and TPG Capital, who actually filed to take the company public last spring.
During the summer, Canada's Hudson's Bay Company (TSE: HBC), which owns department stores Lord & Taylor and Hudson's Bay, announced an all-cash $2.4 billion agreement to buy Saks Inc. (NYSE: SKA). The deal immediately sent Saks' shares up 4.18%.
French luxury conglomerate Kering (EPA: KER) – designer of Alexander McQueen, Gucci, and Balenciaga brands – recently reported that it has bought a minority share in Altuzarra, the label by French-American designer Joseph Altuzarra.
And just last week, Italian luxury-goods designer Gianni Versace SpA announced plans for a private sale of a minority stake in the company – a prelude to a possible initial public offering in three to five years.
Rumors are also swirling – although denied by the company – that Salvatore Ferragamo SpA (BIT: SFER) may be a buyout target.
This urge to merge and to go public is driven by three primary catalysts…