Wrapping up Q1 earnings, we look at the numbers and key takeaways for the apparel, accessories and luxury goods stocks, including Kontoor Brands (NYSE:KTB) 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 a mixed Q1; on average, revenues beat analyst consensus estimates by 0.5%. 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, and apparel, accessories and luxury goods stocks have held roughly steady amidst all this, with share prices up 3.6% on average since the previous earnings results.
Kontoor Brands (NYSE:KTB) Founded in 2019 after separating from VF Corporation (NYSE:VFC), Kontoor Brands (NYSE:KTB) is a clothing company known for its high-quality denim products.
Kontoor Brands reported revenues of $631.2 million, down 5.4% year on year, topping analysts' expectations by 3.8%. It was a strong quarter for the company, with an impressive beat of analysts' earnings and constant currency revenue estimates.
“Our first quarter results were stronger than expected, driven by higher revenue, gross margin, and cash flow,” said Scott Baxter (NYSE:BAX), President, Chief Executive Officer and Chair of Kontoor Brands.
The stock is up 9.9% since the results and currently trades at $68.22.
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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 estimates.
The stock is down 13.7% since the results and currently trades at $4.86.
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' operating margin and earnings estimates.
ThredUp achieved the fastest revenue growth but had the weakest full-year guidance update in the group. The stock is down 7.5% since the results and currently trades at $1.73.
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, surpassing 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 achieved the biggest analyst estimates beat and highest full-year guidance raise among its peers. The stock is up 44.7% since the results and currently trades at $3.85.
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 $1.33 billion, down 4.7% year on year, in line with analysts' expectations. It was a weak quarter for the company, with underwhelming earnings guidance for the full year and a miss of analysts' operating margin estimates.
The stock is up 1.9% since the results and currently trades at $6.92.
