A Look Back at Apparel Retailer Stocks’ Q3 Earnings: Gap (NYSE:GAP) Vs The Rest Of The Pack

As the Q3 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the apparel retailer industry, including Gap (NYSE:GAP) and its peers.

Apparel sales are not driven so much by personal needs but by seasons, trends, and innovation, and over the last few decades, the category has shifted meaningfully online. Retailers that once only had brick-and-mortar stores are responding with omnichannel presences. The online shopping experience continues to improve and retail foot traffic in places like shopping malls continues to stall, so the evolution of clothing sellers marches on.

The 9 apparel retailer stocks we track reported a satisfactory Q3. As a group, revenues were in line with analysts’ consensus estimates while next quarter’s revenue guidance was 2.1% below.

While some apparel retailer stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 3% since the latest earnings results.

Gap (NYSE:GAP)

Gap reported revenues of $3.83 billion, up 1.6% year on year. This print exceeded analysts’ expectations by 0.6%. Overall, it was an exceptional quarter for the company with a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ EPS estimates.

"I'm proud that Gap Inc. delivered another successful quarter, growing net sales for the 4th consecutive quarter and gaining market share across all brands while meaningfully expanding operating margin," said President and Chief Executive Officer, Richard Dickson.

The stock is up 3.9% since reporting and currently trades at $22.90.

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Best Q3: Urban Outfitters (NASDAQ:URBN)

Urban Outfitters reported revenues of $1.36 billion, up 6.3% year on year, outperforming analysts’ expectations by 1.7%. The business had an exceptional quarter with an impressive beat of analysts’ gross margin estimates and a solid beat of analysts’ EBITDA estimates.

The market seems happy with the results as the stock is up 38.6% since reporting. It currently trades at $55.65.

Weakest Q3: Torrid (NYSE:CURV)

Torrid reported revenues of $263.8 million, down 4.2% year on year, falling short of analysts’ expectations by 6.6%. It was a disappointing quarter as it posted full-year EBITDA guidance missing analysts’ expectations.

Torrid delivered the weakest performance against analyst estimates and weakest full-year guidance update in the group. Interestingly, the stock is up 34.6% since the results and currently trades at $6.23.

Lululemon (NASDAQ:LULU)

Lululemon reported revenues of $2.4 billion, up 8.7% year on year. This print surpassed analysts’ expectations by 1.6%. It was a satisfactory quarter as it also put up a solid beat of analysts’ EBITDA estimates.

Lululemon pulled off the highest full-year guidance raise among its peers. The stock is up 8% since reporting and currently trades at $372.77.

Abercrombie and Fitch (NYSE:ANF)

Abercrombie and Fitch reported revenues of $1.21 billion, up 14.4% year on year. This result topped analysts’ expectations by 2.1%. It was a very strong quarter as it also recorded an impressive beat of analysts’ EBITDA estimates and a decent beat of analysts’ EPS estimates.

Abercrombie and Fitch delivered the fastest revenue growth among its peers. The stock is down 27% since reporting and currently trades at $113.

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This content was originally published on Stock Story