For some couples, weddings are a joyous celebration of their love, life together, and the start of bigger things to come. For others, it’s a costly, tiresome event that only pleases everyone attending the wedding except the bride and groom.
One thing is certain, however: unless you’re getting married by a ship’s captain or a judge, having a wedding is inevitable expense for all couples who want to take the next step. In fact, weddings are so popular that they’ve become a $300 billion worldwide industry, with people spending an average of $26,645 for their big day.
Why does this matter to you? Sure, it means chances are high that you’ll both attend multiple weddings and shell out the cost for your own one. As an investor, however, you can actually make a profit on the millions of weddings held each year. Here’s how.
The Knot is the most popular wedding website/brand in America. It’s also a publicly traded company.
As part of XO Group ($XOXO), The Knot helps couples plan everything and anything about their wedding. From managing the guest list to building a website, The Knot takes the hassle out of planning a wedding while charging users a small fee for their services. As a stock, $XOXO increased by over 141% in the last five years and over 32% in the last year alone, causing investors to be relatively happy about the stock’s performance.
Several publicly traded retailers make a killing on helping couples set up their wedding registries.
Wedding guests love buying gifts for the bride and groom, which is why most couples set up wedding registries. Kitchenware and linens are the usual go-to products to include on one’s registry, and retailers like Bed Bath and Beyond ($BBBY), Macy’s/Bloomingdale’s ($M), Lord and Taylor/Saks Fifth Avenue ($HBC), and Williams-Sonoma ($WSM) are among the most popular places to have a registry. While each company performs differently from the other, they all receive a nice percentage of their business from weddings.
You can’t have a wedding without rings, and these jewelry retailers make a considerable amount from wedding jewelry.
While many people opt to go to small, family-owned jewelers for their wedding bands and engagement rings (including yours truly), millions of couples go to name-brand jewelry chains. Zale, Kay Jewelers, and Jared are all owned by Signet Jewelers LTD. ($SIG), a company raking in over $6.5 billion a year from jewelry sales. Tiffany & Co ($TIF) is also famous for their extravagantly designed (and priced) engagement rings.
Retailers specializing in wedding dresses, however, are mostly privately owned.
Buying stock in David’s Bridal would totally make sense in this instance, but the company is unfortunately privately owned. Some brides opt to get their dresses and accessories from Nordstrom ($JWN), but most couples opt for smaller bridal shops that specialize in wedding wear.
Should you invest in wedding-related stocks? The U.S. wedding industry is a $72 billion market, according to IBISWorld. This is up from $55 billion from an earlier report, meaning the industry is actually growing. This means spending on the aforementioned items isn’t going to slow down any time soon.
If you want to position your portfolio to take advantage of all this spending, consider research each individual stock before you invest. Mind the fact that no single company holds a significant percentage of the wedding market share, as each company specializes in its own thing. If you’d rather invest in an industry where there’s a clear market leader, however, you might want to invest elsewhere.