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 Q2, starting with Levi's (NYSE:LEVI).
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 16 apparel, accessories and luxury goods stocks we track reported a mixed Q2. As a group, revenues missed analysts’ consensus estimates by 1.4% while next quarter’s revenue guidance was 13.1% below.
Inflation progressed towards the Fed's 2% goal recently, leading the central bank to reduce its policy rate by 50bps (half a percent or 0.5%) in September 2024. This is the first cut in four years. While CPI (inflation) readings have been supportive as of late, employment measures bordered on worrisome. The markets will be assessing whether this rate cut (and more potential ones in 2024 and 2025) are ideal timing to support the economy or a bit too late for a macro that has already cooled too much.
Levi's (NYSE:LEVI) Credited for inventing the first pair of blue jeans in 1873, Levi's (NYSE:LEVI) is an apparel company renowned for its iconic denim products and classic American style.
Levi's reported revenues of $1.44 billion, up 7.8% year on year. This print was in line with analysts’ expectations, and overall, it was a strong quarter for the company with an impressive beat of analysts’ earnings and operating margin estimates.
The stock is down 13.7% since reporting and currently trades at $20.
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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 $144.2 million, up 4.4% year on year, outperforming analysts’ expectations by 1.4%. The business had a very strong quarter with an impressive beat of analysts’ earnings and operating margin estimates.
However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $5.67.
Weakest Q2: 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 $79.76 million, down 3.5% year on year, falling short of analysts’ expectations by 3.3%. It was a disappointing quarter as it posted revenue guidance for next quarter missing analysts’ expectations and a miss of analysts’ earnings estimates.
As expected, the stock is down 42% since the results and currently trades at $1.
Tapestry (NYSE:TPR) Originally founded as Coach, Tapestry (NYSE:TPR) is an American fashion conglomerate with a portfolio of luxury brands offering high-quality accessories and fashion products.
Tapestry reported revenues of $1.59 billion, down 1.8% year on year. This print surpassed analysts’ expectations by 1.1%. Overall, it was a strong quarter as it produced a miss of analysts’ earnings estimates and full-year revenue guidance missing analysts’ expectations.
The stock is up 14.8% since reporting and currently trades at $43.59.
Movado (NYSE:MOV) With its watches displayed in 20 museums around the world, Movado (NYSE:MOV) is a watchmaking company with a portfolio of watch brands and accessories.
Movado reported revenues of $159.3 million, flat year on year. This print beat analysts’ expectations by 5.9%. Zooming out, it was a weak quarter as it produced full-year revenue guidance which missed analysts’ expectations.
Movado scored the biggest analyst estimates beat among its peers. The stock is down 13.1% since reporting and currently trades at $19.60.
This content was originally published on Stock Story
