Q3 Earnings Roundup: Lululemon (NASDAQ:LULU) And The Rest Of The Apparel Retailer Segment

Wrapping up Q3 earnings, we look at the numbers and key takeaways for the apparel retailer stocks, including Lululemon (NASDAQ:LULU) and its peers.

Apparel sales are not driven so much by personal needs but by seasons, trends, and innovation, and over the last few decades, the category has shifted meaningfully online. Retailers that once only had brick-and-mortar stores are responding with omnichannel presences. The online shopping experience continues to improve and retail foot traffic in places like shopping malls continues to stall, so the evolution of clothing sellers marches on.

The 9 apparel retailer stocks we track reported a satisfactory Q3. As a group, revenues were in line with analysts’ consensus estimates while next quarter’s revenue guidance was 2.1% below.

In light of this news, share prices of the companies have held steady as they are up 1.2% on average since the latest earnings results.

Lululemon (NASDAQ:LULU)

Lululemon reported revenues of $2.40 billion, up 8.7% year on year. This print exceeded analysts’ expectations by 1.6%. Overall, it was a satisfactory quarter for the company with an impressive beat of analysts’ EBITDA estimates.

Calvin McDonald, Chief Executive Officer, stated: "Our performance in the third quarter shows the enduring strength of lululemon globally, as we saw continued momentum across our international markets and in Canada. Looking to the future, we are pleased with the start to our holiday season, and we remain focused on accelerating our U.S. business and growing our brand awareness around the world. Thank you to our dedicated teams for continuing to deliver for our guests and stakeholders. "

Lululemon scored the highest full-year guidance raise of the whole group. The stock is up 19.5% since reporting and currently trades at $412.27.

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Best Q3: Urban Outfitters (NASDAQ:URBN)

Urban Outfitters reported revenues of $1.36 billion, up 6.3% year on year, outperforming analysts’ expectations by 1.7%. The business had an exceptional quarter with an impressive beat of analysts’ gross margin estimates and a solid beat of analysts’ EBITDA estimates.

The market seems happy with the results as the stock is up 43.5% since reporting. It currently trades at $57.60.

Weakest Q3: Torrid (NYSE:CURV)

Torrid reported revenues of $263.8 million, down 4.2% year on year, falling short of analysts’ expectations by 6.6%. It was a disappointing quarter as it posted full-year EBITDA guidance missing analysts’ expectations.

Torrid delivered the weakest performance against analyst estimates and weakest full-year guidance update in the group. Interestingly, the stock is up 37.6% since the results and currently trades at $6.37.

Zumiez (NASDAQ:ZUMZ)

Zumiez reported revenues of $222.5 million, up 2.8% year on year. This number met analysts’ expectations. It was a strong quarter as it also recorded a solid beat of analysts’ EPS and EBITDA estimates.

The stock is down 20.9% since reporting and currently trades at $15.91.

Abercrombie and Fitch (NYSE:ANF)

Abercrombie and Fitch reported revenues of $1.21 billion, up 14.4% year on year. This result beat analysts’ expectations by 2.1%. Overall, it was a very strong quarter as it also logged a solid beat of analysts’ EBITDA estimates and a decent beat of analysts’ EPS estimates.

Abercrombie and Fitch pulled off the fastest revenue growth among its peers. The stock is down 22.6% since reporting and currently trades at $119.78.

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This content was originally published on Stock Story