Looking back on apparel, accessories and luxury goods stocks’ Q2 earnings, we examine this quarter’s best and worst performers, including Columbia Sportswear (NASDAQ:COLM) 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 1.4% while next quarter’s revenue guidance was 12.6% below.
The Fed cut its policy rate by 50bps (half a percent) in September 2024, the first in roughly four years. This marks the end of its most pointed inflation-busting campaign since the 1980s. While CPI (inflation) readings have been supportive lately, employment measures have bordered on worrisome. The markets will be assessing 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 3.7% on average since the latest earnings results.
Best Q2: Columbia Sportswear (NASDAQ:COLM)
Originally founded as a hat store in 1938, Columbia Sportswear (NASDAQ:COLM) is a manufacturer of outerwear, sportswear, and footwear designed for outdoor enthusiasts.
Columbia Sportswear reported revenues of $570.2 million, down 8.2% year on year. This print was in line with analysts’ expectations, but overall, it was a mixed quarter for the company with an impressive beat of analysts’ constant currency revenue estimates but underwhelming earnings guidance for the full year.
Chairman, President and Chief Executive Officer Tim Boyle commented, “Second quarter results were generally in line with expectations. We are working to maximize sales in a challenging U.S. marketplace. Most international markets, including China and Europe-direct, continue to see strong demand."
Interestingly, the stock is up 8.7% since reporting and currently trades at $83.92.
Is now the time to buy Columbia Sportswear? Access our full analysis of the earnings results here, it’s free.
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 30.5% since reporting. It currently trades at $2.60.
Is now the time to buy Stitch Fix? Access our full analysis of the earnings results here, it’s free.
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 54.4% since the results and currently trades at $0.79.
Read our full analysis of ThredUp’s results here.
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 $1.52 billion, flat year on year. This number missed analysts’ expectations by 2.4%. It was a slower quarter as it also produced a miss of analysts’ constant currency revenue estimates and underwhelming earnings guidance for the full year.
The stock is down 10.7% since reporting and currently trades at $18.80.
Read our full, actionable report on Levi's here, it’s free.
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 $1.18 billion, down 10.1% year on year. This number topped analysts’ expectations by 3.9%. It was a very strong quarter as it also produced an impressive beat of analysts’ earnings estimates.
The stock is up 31.6% since reporting and currently trades at $8.52.
Read our full, actionable report on Under Armour here, it’s free.
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