Updated: Nov 1, 2021
On a recent trip to my hair salon, I had a fun, engaging young gentleman for my stylist. We had a blast discussing random things. He told me about his wife (Yes, he was straight!) and all the weddings they had to attend in the near future. He's in that age bracket where many of his friends are engaged; however, the pandemic had put the actual wedding on the backburner.
As we spoke of blowouts, hair products, and football (we were both huge Steeler Fans), I thought of all the pent-up demand there must be for weddings at this time.
Love is in the air as we recover from the pandemic. Dating app usage is up and babies are everywhere (I'll be talking more about this in the upcoming weeks). So it seems logical that there would be a post-pandemic wedding surge, too ….which brings to mind a whole new batch of stocks!
Drum roll… It's time for Jessica Perrone to go down her Rabbit Hole…
I began to research wedding-related investments and stumbled upon a website named GuruFocus.com. It has a plethora of interesting facts about the wedding industry.
There are 2.4 million weddings annually. That's roughly 44,230 per weekend.
The average cost of a wedding is $35,329.
This does not include the average number of 141 guests who spend approximately $703 throughout the wedding weekend. (Think of gifts, lodging, food, and travel.)
The average engagement ring costs $6,163.
A collective of $72 billion is spent on weddings each year.
Can you believe it?! That's a huge industry!
Now think about the kind of impact Covid had on the wedding industry. I know some people tried to get creative and utilize apps like Zoom. However, I think a significant number of couples chose to postpone their weddings. Now that couples can actually have in-person attendees, some will spare no expense!
Considering all these factors, let's look at stocks that could be at the core of the post-pandemic wedding boom:
Moet, Hennessy, Louis Vuitton (Ticker: LVMH).
Tiffany's When we mention weddings, engagement rings come to mind first, right? Considering that the average ring is approximately SIX GRAND, Tiffany's could be in a great position to benefit from this! Maybe that is what LVMH was thinking when they recently acquired Tiffany's for $15.8 Billion!
Moet What's a wedding without a champagne toast?
Louis Vuitton Let's not forget a demand for luggage by jet-setting honeymooners and guests. Hello, Louis Vuitton!
As Moet flows, money is trickling down to other liquor and spirit vendors as well like Diageo (Ticker: DEO) and Constellation Brands, Inc., (Ticker: STZ) Who here hasn't had maybe a drink too many at a wedding?!?
Williams and Sonoma (Ticker: WSM) During the engagement period, couples typically spend a total of $4 billion on furniture. Pottery Barn and West Elm are both owned by Williams and Sonoma. So those companies may be profiting from billions spent on furniture and other houseware.
Other companies that offer Wedding Registries include Target (Ticker: TGT ), Wayfair (Ticker: W), Amazon (Ticker: AMZN)
Urban Outfitters (Ticker: URBN). What does Urban Outfitters have to do with weddings, you wonder? It has been a while since I had to buy a wedding dress; and the next wedding dress I look at will probably be for a sibling or daughter. I found that one of the popular dress labels out there for Millenials is BHLDN©. Has anyone heard about this label? I don't even know how you pronounce it, but nonetheless, it is Anthropologie's wedding brand and one of the major hallmarks around today. Anthropologie is owned by Urban Outfitters.
Who knew? See what happens when you get a little bit interested and discover more things around you?
Macy's (Ticker: M) When I continued my wedding dress research, I came across Bloomingdale's wedding shop. In addition to tuxedos, wedding dresses, and bridesmaid dresses, both Bloomingdale's and Macy's Inc sell home furnishings, cosmetics, and accessories. I think that certainly checks off a lot of boxes on the wedding planning list!
Pinterest (Ticker: PINS) When I got married, I went to Barnes & Noble, looked at magazines, and tore pages out to compile my own little "look books". But that's not what brides-to-be do these days. What do they do today, you ask? One way is by creating look books on Pinterest! There you can assemble a vision board of how you want your table, flowers, dresses, hair, and makeup styles to look!
As you can tell, a lot of money is spent on weddings. Yes, the memories of the special day and the experiences are unforgettable. But if you think about it, $35,000 seems to be an excessive amount of money to spend on an event. Looking at that number, I couldn't help but think, "Wow! What if that went into a house? What if that money was deposited into an investment account?" It could be advantageous for these couples to spend less money on flowers and decorations that typically get discarded by the end of the party, right?
As couples get caught up planning for the perfect wedding celebration, it's to be expected that they may not be the most cost-conscious. A wedding is a big deal, so it's understandable to splurge on a few things. However, if you or someone you know is planning, it doesn't hurt to point out how companies benefit from sensationalizing the perfect wedding. Instead of spending all of your hard-earned cash on every bell and whistle, maybe scale back to a few less luxuries. Sure, a wedding is great, but it's JUST ONE DAY. Imagine what could happen if you use the saved money to invest.
These are just a few ideas I put together inspired by my recent run-in at my local hair salon. As a reminder, I encourage you to research this stuff on your own. Just because I mention specific securities doesn't mean there aren't other fantastic options out there that you could stumble upon yourself! Some of the stocks in my newsletters could be trading at recent or all-time highs, which is a great time to just bookmark those stocks, add them to your "Identifying Investments" worksheet, get to know them, and wait for an opportunity to get involved!
🤷♀️Want to hear more? 🙋♀️ Watch the replay of Thursday's Facebook Live Events where I go more in-depth.
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Disclaimer: Jessica Perrone is not a registered investment professional nor a financial advisor. This content is for educational purposes only and is not investment, tax, or financial advice. Always do your own research. You are solely responsible for all investment, tax, and financial decisions that you make. Please read the full disclaimer here.