The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how apparel and accessories stocks fared in Q2, starting with Guess (NYSE: GES).
Thanks to social media and the internet, not only are styles changing more frequently today than in decades past but also consumers are shifting the way they buy their goods, favoring omnichannel and e-commerce experiences. Some apparel and accessories companies have made concerted efforts to adapt while those who are slower to move may fall behind.
The 17 apparel and accessories stocks we track reported a strong Q2. As a group, revenues beat analysts’ consensus estimates by 2.9% while next quarter’s revenue guidance was 13% below.
In light of this news, share prices of the companies have held steady as they are up 3.6% on average since the latest earnings results.
Guess (NYSE: GES)
Flexing the iconic upside-down triangle logo with a question mark, Guess (NYSE: GES) is a global fashion brand known for its trendy clothing, accessories, and denim wear.
Guess reported revenues of $772.9 million, up 5.5% year on year. This print exceeded analysts’ expectations by 1%. Overall, it was a very strong quarter for the company with a beat of analysts’ EPS estimates and an impressive beat of analysts’ adjusted operating income estimates.
The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $16.87.
Is now the time to buy Guess? Access our full analysis of the earnings results here, it’s free for active Edge members.
Best Q2: Figs (NYSE: FIGS)
Rising to fame via TikTok and founded in 2013 by Heather Hasson and Trina Spear, Figs (NYSE: FIGS) is a healthcare apparel company known for its stylish approach to medical attire and uniforms.
Figs reported revenues of $152.6 million, up 5.8% year on year, outperforming analysts’ expectations by 5.5%. The business had a stunning quarter with a beat of analysts’ EPS and EBITDA estimates.
The market seems happy with the results as the stock is up 10.8% since reporting. It currently trades at $7.27.
Is now the time to buy Figs? Access our full analysis of the earnings results here, it’s free for active Edge members.
Weakest Q2: Carter's (NYSE: CRI)
Rumored to sell more than 10 products for every child born in the United States, Carter's (NYSE: CRI) is an American designer and marketer of children's apparel.
Carter's reported revenues of $585.3 million, up 3.7% year on year, exceeding analysts’ expectations by 3.4%. Still, it was a softer quarter as it posted a significant miss of analysts’ adjusted operating income estimates.
As expected, the stock is down 4.7% since the results and currently trades at $31.18.
Read our full analysis of Carter’s results here.
Under Armour (NYSE: UAA)
Founded in 1996 by a former University of Maryland football player, Under Armour (NYSE: UAA) is an apparel brand specializing in sportswear designed to improve athletic performance.
Under Armour reported revenues of $1.13 billion, down 4.2% year on year. This print was in line with analysts’ expectations. Taking a step back, it was a slower quarter as it logged EPS in line with analysts’ estimates and EPS guidance for next quarter missing analysts’ expectations significantly.
The stock is down 26.1% since reporting and currently trades at $4.90.
Read our full, actionable report on Under Armour here, it’s free for active Edge members.
ThredUp (NASDAQ: TDUP)
Founded to revolutionize thrifting, ThredUp (NASDAQ: TDUP) is a leading online fashion resale marketplace offering a wide selection of gently-used clothing and accessories.
ThredUp reported revenues of $77.66 million, up 16.4% year on year. This result surpassed analysts’ expectations by 4%. Overall, it was a stunning quarter as it also produced an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ adjusted operating income estimates.
ThredUp pulled off the fastest revenue growth among its peers. The stock is down 3.1% since reporting and currently trades at $9.41.
Read our full, actionable report on ThredUp here, it’s free for active Edge members.
Market Update
The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.
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