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Q1 Earnings Highlights: Carter's (NYSE:CRI) Vs The Rest Of The Apparel, Accessories and Luxury Goods Stocks


Kayode Omotosho /
2024/06/24 4:16 am EDT

Earnings results often indicate what direction a company will take in the months ahead. With Q1 now behind us, let’s have a look at Carter's (NYSE:CRI) 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. Inflation progressed towards the Fed's 2% goal at the end of 2023, leading to strong stock market performance. The start of 2024 has been a bumpier ride, as the market switches between optimism and pessimism around rate cuts due to mixed inflation data, and apparel, accessories and luxury goods stocks have held roughly steady amidst all this, with share prices up 3.2% on average since the previous earnings results.

Carter's (NYSE:CRI)

Rumored to sell more than 10 products for every child born in the United States, Carter's (NYSE:CRI) is an American designer and marketer of children's apparel.

Carter's reported revenues of $661.5 million, down 4.9% year on year, topping analysts' expectations by 3.3%. It was an ok quarter for the company, with an impressive beat of analysts' earnings estimates but underwhelming earnings guidance for the next quarter.

“We exceeded our sales and earnings objectives in the first quarter,” said Michael D. Casey, Chairman and Chief Executive Officer.

Carter's Total Revenue

The stock is down 8.9% since the results and currently trades at $65.17.

Is now the time to buy Carter's? Access our full analysis of the earnings results here, it's free.

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 and an impressive beat of analysts' operating margin estimates.

Figs Total Revenue

The stock is down 21.8% since the results and currently trades at $4.4.

Is now the time to buy Figs? Access our full analysis of the earnings results here, it's free.

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 pulled off the fastest revenue growth but had the weakest full-year guidance update in the group. The stock is down 9.1% since the results and currently trades at $1.7.

Read our full analysis of ThredUp's results here.

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.

Read our full, actionable report on Under Armour 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 $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% since the results and currently trades at $3.83.

Read our full, actionable report on Stitch Fix here, it's free.

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