Looking back on apparel, accessories and luxury goods stocks' Q1 earnings, we examine this quarter's best and worst performers, including Carter's (NYSE:CRI) and its peers.
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 an ok Q1; on average, revenues were in line with analyst consensus estimates. while next quarter's revenue guidance was 2.2% below consensus. Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market was optimistic at the end of 2023 due to cooling inflation. The start of 2024 has been a different story as mixed signals have led to market volatility, but apparel, accessories and luxury goods stocks have shown resilience, with share prices up 5.2% on average since the previous earnings results.
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, exceeding analysts' expectations by 3.3%. Overall, it was a mixed quarter for the company with an impressive beat of analysts' earnings estimates but underwhelming earnings guidance for the next quarter.
“We exceeded our sales and earnings objectives in the first quarter,” said Michael D. Casey, Chairman and Chief Executive Officer.
The stock is down 12.8% since reporting and currently trades at $62.38.
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Best Q1: Stitch Fix (NASDAQ:SFIX) One of the original subscription box companies, Stitch Fix (NASDAQ:SFIX) is an online personal styling and fashion service that curates personalized clothing selections for customers.
Stitch Fix reported revenues of $322.7 million, down 15.8% year on year, outperforming analysts' expectations by 5.4%. It was a very strong quarter for the company with an impressive beat of analysts' earnings estimates and full-year revenue guidance exceeding analysts' expectations.
Stitch Fix scored the biggest analyst estimates beat and highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 67.7% since reporting. It currently trades at $4.46.
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, in line with analysts' expectations. It was a weak quarter for the company with a miss of analysts' earnings estimates and revenue guidance for next quarter missing analysts' expectations.
ThredUp posted the weakest full-year guidance update in the group. Interestingly, the stock is up 9.2% since the results and currently trades at $2.04.
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%. More broadly, it was a mixed quarter for the company with an impressive beat of analysts' earnings estimates but full-year revenue guidance missing analysts' expectations.
The stock is down 16.6% since reporting and currently trades at $26.06.
Hanesbrands (NYSE:HBI) A classic American staple founded in 1901, Hanesbrands (NYSE: HBI) is a clothing company known for its array of basic apparel including innerwear and activewear.
Hanesbrands reported revenues of $1.16 billion, down 16.8% year on year, falling short of analysts' expectations by 1.6%. More broadly, it was a very strong quarter for the company with an impressive beat of analysts' earnings estimates and optimistic earnings guidance for the full year.
Hanesbrands had the slowest revenue growth among its peers. The stock is up 21.8% since reporting and currently trades at $5.42.
This content was originally published on Stock Story
