The COVID-19 pandemic had a significant impact on the wedding industry. Due to government restrictions and social distancing, many people had to postpone, slim down, or virtualize their weddings in 2020.
Because of that, the average cost of a wedding declined by almost $10,000 in 2020, falling to $19,000, according to The Knot Real Weddings Study. However, that number will likely rise significantly in the future due to fewer health risks and restrictions, along with demand-driven inflation. That makes it a great time to consider investing in companies benefiting from the wedding industry.
Top wedding industry stocks in 2024
The wedding industry is very fragmented. Many of the high-dollar wedding-related items come from local shops, service providers, and venues. Consequently, there aren't any big-name wedding stocks out there.
However, several companies in the consumer discretionary sector benefit from the wedding industry, including:
| Wedding Industry Stock | Ticker symbol | Market Cap | Company Description |
|---|---|---|---|
| (NYSE:PINS) | $17.6 billion | An idea-sharing social media site. | |
| Etsy | (NASDAQ:ETSY) | $17.2 billion | An online marketplace where people can buy and sell unique goods. |
| Urban Outfitters | (NASDAQ:URBN) | $2.5 billion | A trendy clothing and decor retailer. |
| Signet Jewelers | (NYSE:SIG) | $3.4 billion | A specialty retail jeweler. |
| LVMH | (OTC:LVMHF) | $430.9 million | The world's largest luxury goods company. |
Here's a closer look at how these companies benefit from the wedding industry.
1. Pinterest
Pinterest is a social media platform for virtual sharing, search, and discovery of images and ideas. The company had 454 million active monthly users in the middle of 2021, up 9% year over year. It's generating an increasing amount of revenue per user as it works on generating revenue from all those eyeballs.
Pinterest is also a wedding planner's best friend. The platform features more than 38 million boards dedicated to weddings where people planning or dreaming of their big day can discover unique ideas to make it extra-special. These are highly engaged users, which Pinterest is increasingly monetizing, making it a great way to invest in the rebound of the wedding industry.
2. Etsy
Etsy is an e-commerce platform that allows people to buy and sell unique and creative goods. It connects millions of buyers and sellers from almost every country in the world. The company focuses on featuring special items that inject "joy into the everyday."
What's more special than a wedding? That makes Etsy a great place for those planning a wedding to find unique items for their special day, including jewelry, bachelorette party favors, or other decorative items for the wedding cake or venue. The platform allows someone planning a wedding to find something unique to make it stand out.
3. Urban Outfitters
Urban Outfitters is a retailer with several brands, including Urban Outfitters and Anthropologie, focused on lifestyle-oriented general merchandise and consumer products. While the pandemic affected the company, it delivered record sales and profits during the second quarter of 2021, showing its staying power and operating success.
Urban Outfitters doesn't focus specifically on weddings. However, its Anthropologie brand is becoming a go-to destination for wedding-related clothing purchases. It sells everything from wedding and maid of honor dresses for the bridal party to other dresses and suits for those attending a wedding. As more people start planning and attending weddings, Urban Outfitters should benefit.
4. Signet Jewelers
Signet Jewelers is the world's largest diamond jewelry retailer and the biggest specialty jewelry retailer in the U.S., U.K., and Canada. It operates roughly 2,800 stores under the Kay Jewelers, Zales, Jared, H. Samuel, Ernest Jones, Peoples Jewellers, Banter by Piercing Pagoda, Rocksbox, and James Allen brands. It sells more than $5 billion in jewelry, watches, and associated services each year.
Signet's focus on diamond jewelry makes it one of the closest things to a pure-play wedding industry stock. The company sells an assortment of engagement and wedding rings. Its differentiated brands allow it to cater to different customer segments, including those on a budget or looking for more fancy, higher-quality diamonds and metals.
5. LVMH
LVMH Moët Hennessy Louis Vuitton is the world's leading luxury products group with more than 75 brands. It also has a vast retail network of more than 5,000 stores worldwide. The company focuses on six different sectors: wines and spirits, fashion and leather goods, perfumes and cosmetics, watches and jewelry, selective retailing, and other activities.
LVMH has everything needed to make a wedding really special. For example, it acquired Tiffany & Co. in early 2021, bringing the luxury jeweler into its iconic brand portfolio and giving it another avenue to benefit from increased engagement and wedding ring sales. Meanwhile, it makes high-end wedding dresses via its Givenchy and Louis Vuitton brands, as well as top-tier wine and spirits such as Dom Perignon Champagne. As a result, LVMH has the brands to turn any wedding into a memorable event.
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These stocks will benefit from the wedding industry's recovery
The pandemic forced many couples to tone down their wedding plans in 2020. However, with vaccines rolling out and new therapeutics available, the pandemic is becoming more manageable, allowing more couples to proceed with larger weddings. That trend toward bigger weddings should continue in the coming years, making now a great time to consider investing in companies that will benefit from the associated uptick in wedding-related spending.
