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 Under Armour (NYSE:UAA).
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 7.2% on average since the previous earnings results.
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. Overall, it was a slower quarter for the company with underwhelming earnings guidance for the full year and a miss of analysts' constant currency revenue estimates.
"Amid a challenging retail environment in fiscal 2024 that included high inventories and a consistent drumbeat of promotions – we demonstrated disciplined expense control and delivered results that were aligned with our previous outlook," said Under Armour President and CEO Kevin Plank.
The stock is up 1.9% since reporting and currently trades at $6.92.
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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 achieved 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 76.8% since reporting. It currently trades at $4.70.
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 8.6% since the results and currently trades at $2.03.
Ralph Lauren (NYSE:RL) Originally founded as a necktie company, Ralph Lauren (NYSE:RL) is an iconic American fashion brand known for its classic and sophisticated style.
Ralph Lauren reported revenues of $1.57 billion, up 1.8% year on year, in line with analysts' expectations. Revenue aside, it was an ok quarter for the company with a narrow beat of analysts' constant currency revenue estimates.
The stock is up 3.4% since reporting and currently trades at $169.72.
Kontoor Brands (NYSE: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, surpassing analysts' expectations by 3.8%. Zooming out, it was a strong quarter for the company with an impressive beat of analysts' earnings and constant currency revenue estimates.
The stock is up 12% since reporting and currently trades at $69.52.
This content was originally published on Stock Story
