The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how apparel retailer stocks fared in Q3, starting with Zumiez (NASDAQ:ZUMZ).
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 very strong Q3. As a group, revenues beat analysts’ consensus estimates by 2% while next quarter’s revenue guidance was in line.
Luckily, apparel retailer stocks have performed well with share prices up 11.4% on average since the latest earnings results.
Best Q3: Zumiez (NASDAQ:ZUMZ)
With store associates called “Zumiez Stash Members”, Zumiez (NASDAQ:ZUMZ) is a specialty retailer of street and skate apparel, footwear, and accessories.
Zumiez reported revenues of $239.1 million, up 7.5% year on year. This print exceeded analysts’ expectations by 2%. Overall, it was an exceptional quarter for the company with a beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
“We achieved our best third quarter in several years,” said Rick Brooks, Chief Executive Officer of Zumiez Inc.
Unsurprisingly, the stock is down 8.3% since reporting and currently trades at $25.01.
Is now the time to buy Zumiez? Access our full analysis of the earnings results here, it’s free.
American Eagle (NYSE:AEO)
With a heavy focus on denim, American Eagle Outfitters (NYSE:AEO) is a specialty retailer offering an assortment of apparel and accessories to young adults.
American Eagle reported revenues of $1.36 billion, up 5.7% year on year, outperforming analysts’ expectations by 3.1%. The business had an exceptional quarter with a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ revenue estimates.
The market seems happy with the results as the stock is up 19.7% since reporting. It currently trades at $24.94.
Is now the time to buy American Eagle? Access our full analysis of the earnings results here, it’s free.
Weakest Q3: Torrid (NYSE:CURV)
Promoting a message of body positivity and inclusiveness, Torrid Holdings (NYSE:CURV) is a plus-size women’s apparel and accessories retailer.
Torrid reported revenues of $235.2 million, down 10.8% year on year, falling short of analysts’ expectations by 2%. It was a disappointing quarter as it posted full-year EBITDA guidance missing analysts’ expectations significantly and a significant miss of analysts’ EBITDA estimates.
Torrid delivered the highest full-year guidance raise but had the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 10.3% since the results and currently trades at $1.18.
Read our full analysis of Torrid’s results here.
Lululemon (NASDAQ:LULU)
Originally serving yogis and hockey players, Lululemon (NASDAQ:LULU) is a designer, distributor, and retailer of athletic apparel for men and women.
Lululemon reported revenues of $2.57 billion, up 7.1% year on year. This number beat analysts’ expectations by 3.7%. Overall, it was a strong quarter as it also recorded an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ revenue estimates.
The stock is down 4% since reporting and currently trades at $179.53.
Read our full, actionable report on Lululemon here, it’s free.
Gap (NYSE:GAP)
Operating under the Gap, Old Navy, Banana Republic, and Athleta brands, Gap (NYSE:GAP) is an apparel and accessories retailer selling casual clothing to men, women, and children.
Gap reported revenues of $3.94 billion, up 3% year on year. This print topped analysts’ expectations by 0.8%. It was a very strong quarter as it also produced an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ gross margin estimates.
The stock is up 24.1% since reporting and currently trades at $28.63.
Read our full, actionable report on Gap here, it’s free.
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