As the Q1 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the apparel retailer industry, including Gap (NYSE: GAP) 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 8 apparel retailer stocks we track reported a satisfactory Q1. As a group, revenues beat analysts’ consensus estimates by 1% while next quarter’s revenue guidance was in line.
Luckily, apparel retailer stocks have performed well with share prices up 10.7% on average since the latest earnings results.
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 $3.50 billion, flat year on year. This print fell short of analysts’ expectations by 0.8%. Overall, it was a mixed quarter for the company with full-year EPS guidance slightly topping analysts’ expectations but EPS in line with analysts’ estimates.
"In the first quarter, Gap Inc. delivered continued progress against our strategic priorities, including further market share gains and achieving our ninth consecutive quarter of positive comparable sales," said President and Chief Executive Officer, Richard Dickson.
Gap delivered the weakest performance against analyst estimates and slowest revenue growth among its peers. The market seems disappointed with the results as the stock is down 17.9% since reporting and currently trades at $20.52.
Is now the time to buy Gap? Access our full analysis of the earnings results here, it’s free.
Best Q1: Tilly's (NYSE: TLYS)
With an emphasis on skate and surf culture, Tilly’s (NYSE: TLYS) is a specialty retailer that sells clothing, footwear, and accessories geared towards fashion-forward teens and young adults.
Tilly's reported revenues of $124.7 million, up 15.9% year on year, outperforming analysts’ expectations by 2.8%. The business had a stunning quarter with EPS guidance for next quarter exceeding analysts’ expectations and a solid beat of analysts’ gross margin estimates.
Tilly's delivered the biggest analyst estimate beat, highest guidance raise, and fastest revenue growth in the group. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 7.7% since reporting. It currently trades at $4.10.
Is now the time to buy Tilly's? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: 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 $2.47 billion, up 4.3% year on year, exceeding analysts’ expectations by 1.7%. Still, it was a softer quarter as it posted full-year EPS guidance missing analysts’ expectations significantly and EPS guidance for next quarter missing analysts’ expectations significantly.
Lululemon delivered the weakest guidance update and weakest full-year guidance update of the whole group. The stock is flat since the results and currently trades at $124.83.
Read our full analysis of Lululemon’s results here.
Victoria's Secret (NYSE: VSXY)
Spun off from L Brands in 2020, Victoria’s Secret (NYSE: VSXY) is an intimate clothing and beauty retailer that sells its own brands of lingerie, undergarments, and personal fragrances.
Victoria's Secret reported revenues of $1.56 billion, up 15.3% year on year. This number surpassed analysts’ expectations by 2.6%. It was an exceptional quarter as it also produced a beat of analysts’ EPS estimates and a solid beat of analysts’ gross margin estimates.
Victoria's Secret scored the highest full-year guidance raise among its peers. The stock is up 72% since reporting and currently trades at $93.40.
Read our full, actionable report on Victoria's Secret here, it’s free.
Abercrombie and Fitch (NYSE: ANF)
Founded as an outdoor and sporting brand, Abercrombie & Fitch (NYSE: ANF) evolved to become a specialty retailer that sells its own brand of fashionable clothing to young adults.
Abercrombie and Fitch reported revenues of $1.11 billion, up 1.5% year on year. This result came in 0.8% below analysts’ expectations. More broadly, it was a mixed quarter as it also logged an impressive beat of analysts’ EBITDA estimates but EPS guidance for next quarter missing analysts’ expectations significantly.
The stock is up 47.8% since reporting and currently trades at $110.51.
Read our full, actionable report on Abercrombie and Fitch here, it’s free.
Market Update
Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership.
Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products.
By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals.
Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
