As the Q2 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the apparel, accessories and luxury goods industry, including ThredUp (NASDAQ:TDUP) 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 slower Q2. As a group, revenues missed analysts’ consensus estimates by 1.3% while next quarter’s revenue guidance was 12.6% below.
Inflation progressed towards the Fed's 2% goal recently, leading the Fed 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 lately, employment measures have bordered on worrisome. The markets will be debating whether this rate cut's timing (and more potential ones in 2024 and 2025) is ideal for supporting the economy or a bit too late for a macro that has already cooled too much.
In light of this news, apparel, accessories and luxury goods stocks have held steady with share prices up 2.6% on average since the latest earnings results.
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. This print fell short of analysts’ expectations by 3.3%. Overall, it was a disappointing quarter for the company with revenue guidance for next quarter missing analysts’ expectations and a miss of analysts’ earnings estimates.
“While this quarter presented challenges in both the U.S. and Europe, we have emerged with a renewed focus,” said ThredUp CEO and co-founder James Reinhart.
Unsurprisingly, the stock is down 52.5% since reporting and currently trades at $0.82.
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Best Q2: 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 $319.6 million, down 12.4% year on year, in line with analysts’ expectations. The business performed better than its peers, but it was unfortunately a softer quarter with revenue guidance for next quarter missing analysts’ expectations.
Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 38.8% since reporting. It currently trades at $2.29.
Oxford Industries (NYSE:OXM) The parent company of Tommy Bahama, Oxford Industries (NYSE:OXM) is a lifestyle fashion conglomerate with brands that embody outdoor happiness.
Oxford Industries reported revenues of $419.9 million, flat year on year, falling short of analysts’ expectations by 4.2%. It was a disappointing quarter as it posted revenue guidance for next quarter missing analysts’ expectations and underwhelming earnings guidance for the next quarter.
Interestingly, the stock is up 1.3% since the results and currently trades at $84.67.
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 $644.8 million, down 2.3% year on year. This number met analysts’ expectations. Zooming out, it was a mixed quarter as it also produced an impressive beat of analysts’ earnings estimates but a miss of analysts’ Retail revenue estimates.
The stock is up 20% since reporting and currently trades at $30.05.
Ralph Lauren (NYSE: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 $1.51 billion, up 1% year on year. This number surpassed analysts’ expectations by 1.5%. It was a strong quarter as it also logged a solid beat of analysts’ constant currency revenue estimates and a decent beat of analysts’ earnings estimates.
The stock is up 18.1% since reporting and currently trades at $195.01.
This content was originally published on Stock Story
