Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Ralph Lauren (NYSE:RL) and the best and worst performers in the apparel, accessories and luxury goods industry.
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 16 apparel, accessories and luxury goods stocks we track reported a mixed Q2. As a group, revenues missed analysts’ consensus estimates by 1.4% while next quarter’s revenue guidance was 13.1% below.
Inflation progressed towards the Fed’s 2% goal at the end of 2023, leading to strong stock market performance. On the other hand, 2024 has been a bumpier ride as the market switches between optimism and pessimism around rate cuts and inflation. However, apparel, accessories and luxury goods stocks have held steady amidst all this with average share prices relatively unchanged since the latest earnings results.
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 $1.51 billion, up 1% year on year. This print exceeded analysts’ expectations by 1.5%. Overall, it was a strong quarter for the company with a solid beat of analysts’ constant currency revenue estimates and a decent beat of analysts’ earnings estimates.
"We delivered a solid start to the year, with first quarter performance exceeding our expectations on the top- and bottom-line led by our direct-to-consumer and international businesses," said Patrice Louvet, President and Chief Executive Officer.
Interestingly, the stock is up 6.2% since reporting and currently trades at $175.36.
Is now the time to buy Ralph Lauren? Access our full analysis of the earnings results here, it’s free.
Best Q2: 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 $144.2 million, up 4.4% year on year, outperforming analysts’ expectations by 1.4%. The business had a very strong quarter with an impressive beat of analysts’ earnings estimates.
Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 5.4% since reporting. It currently trades at $5.40.
Is now the time to buy Figs? 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 53% since the results and currently trades at $0.81.
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 $1.18 billion, down 10.1% year on year. This number surpassed analysts’ expectations by 3.9%. It was a very strong quarter as it also recorded an impressive beat of analysts’ earnings estimates.
Under Armour had the slowest revenue growth among its peers. The stock is up 13.1% since reporting and currently trades at $7.32.
Read our full, actionable report on Under Armour here, it’s free.
Tapestry (NYSE:TPR)
Originally founded as Coach, Tapestry (NYSE:TPR) is an American fashion conglomerate with a portfolio of luxury brands offering high-quality accessories and fashion products.
Tapestry reported revenues of $1.59 billion, down 1.8% year on year. This print topped analysts’ expectations by 1.1%. More broadly, it was a weak quarter as it recorded a miss of analysts’ earnings estimates and full-year revenue guidance missing analysts’ expectations.
The stock is up 10.9% since reporting and currently trades at $42.09.
Read our full, actionable report on Tapestry here, it’s free.
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