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, accessories and luxury goods stocks fared in Q1, starting with G-III (NASDAQ:GIII).
Within apparel and accessories, not only do styles change more frequently today than decades past as fads travel through social media and the internet but consumers are also shifting the way they buy their goods, favoring omnichannel and e-commerce experiences. Some apparel, accessories, and luxury goods companies have made concerted efforts to adapt while those who are slower to move may fall behind.
The 17 apparel, accessories and luxury goods stocks we track reported a mixed Q1; on average, revenues beat analyst consensus estimates by 0.5%. while next quarter's revenue guidance was 2.2% below consensus. Stocks, especially growth stocks where cash flows further in the future are more important to the story, had a good end of 2023. But the beginning of 2024 has seen more volatile stock performance due to mixed inflation data, and apparel, accessories and luxury goods stocks have held roughly steady amidst all this, with share prices up 2.3% on average since the previous earnings results.
G-III (NASDAQ:GIII) Founded as a small leather goods business, G-III (NASDAQ:GIII) is a fashion and apparel conglomerate with a diverse portfolio of brands.
G-III reported revenues of $609.7 million, flat year on year, falling short of analysts' expectations by 1.1%. It was a decent quarter for the company, with an impressive beat of analysts' earnings estimates.
Morris Goldfarb, G-III’s Chairman and Chief Executive Officer, said, “We had a strong start to fiscal 2025, delivering first quarter earnings per diluted share well ahead of our expectations. Our performance was driven by double-digit increases in DKNY and Karl Lagerfeld along with a successful relaunch of Donna Karan, reflecting our commitment to investing in our owned brands and our ability to meet the ever-changing needs of our consumers. I am also excited to announce our partnership and investment in AWWG, a global fashion group and premier platform for iconic international brands, which furthers a number of our strategic priorities. Looking ahead, we remain cautiously optimistic and are reaffirming our fiscal year 2025 net sales and raising our guidance for net income per diluted share.”
The stock is down 15.1% since the results and currently trades at $26.54.
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Best Q1: 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 $119.3 million, down 0.8% year on year, outperforming analysts' expectations by 1.6%. It was a very strong quarter for the company, with an impressive beat of analysts' earnings and operating margin estimates.
The stock is down 13.1% since the results and currently trades at $4.89.
ThredUp (NASDAQ:TDUP) Founded to revolutionize thrifting, ThredUp (NASDAQ:TDUP) is a leading online fashion resale marketplace that offers a wide selection of gently-used clothing and accessories.
ThredUp reported revenues of $79.59 million, up 4.8% year on year, falling short of analysts' expectations by 0.9%. It was a weak quarter for the company, with a miss of analysts' revenue and earnings estimates.
ThredUp scored the fastest revenue growth but had the weakest full-year guidance update in the group. The stock is down 1.6% since the results and currently trades at $1.84.
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 $661.5 million, down 4.9% year on year, surpassing analysts' expectations by 3.3%. It was a mixed quarter for the company, with an impressive beat of analysts' earnings estimates but underwhelming earnings guidance for the next quarter.
The stock is down 10.5% since the results and currently trades at $64.05.
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 $591.9 million, up 3.9% year on year, surpassing analysts' expectations by 3%. It was a mixed quarter for the company, with a miss of analysts' operating margin estimates.
The stock is down 9.9% since the results and currently trades at $21.06.
