As the Q1 earnings season wraps, let’s dig into this quarter’s best and worst performers in the apparel and accessories industry, including Tapestry (NYSE: TPR) and its peers.
Thanks to social media and the internet, not only are styles changing more frequently today than in decades past but also consumers are shifting the way they buy their goods, favoring omnichannel and e-commerce experiences. Some apparel and accessories companies have made concerted efforts to adapt while those who are slower to move may fall behind.
The 17 apparel and accessories stocks we track reported a strong Q1. As a group, revenues beat analysts’ consensus estimates by 1.3% while next quarter’s revenue guidance was in line.
In light of this news, share prices of the companies have held steady as they are up 1.2% on average since the latest earnings results.
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 $1.58 billion, up 6.9% year on year. This print exceeded analysts’ expectations by 3.7%. Overall, it was a very strong quarter for the company with a solid beat of analysts’ constant currency revenue estimates and full-year EPS guidance exceeding analysts’ expectations.
“Our strong second quarter outperformance is a testament to our exceptional teams and our collective commitment to disciplined brand building,” said Joanne Crevoiserat, Chief Executive Officer of Tapestry,
Interestingly, the stock is up 13% since reporting and currently trades at $84.50.
Is now the time to buy Tapestry? Access our full analysis of the earnings results here, it’s free.
Best Q1: ThredUp (NASDAQ: TDUP)
Founded to revolutionize thrifting, ThredUp (NASDAQ: TDUP) is a leading online fashion resale marketplace offering a wide selection of gently-used clothing and accessories.
ThredUp reported revenues of $71.29 million, up 10.5% year on year, outperforming analysts’ expectations by 4.4%. The business had an exceptional quarter with a solid beat of analysts’ EBITDA estimates.
ThredUp achieved the fastest revenue growth among its peers. The market seems happy with the results as the stock is up 97.5% since reporting. It currently trades at $8.75.
Is now the time to buy ThredUp? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: Movado (NYSE: MOV)
With its watches displayed in 20 museums around the world, Movado (NYSE: MOV) is a watchmaking company with a portfolio of watch brands and accessories.
Movado reported revenues of $131.8 million, down 1.9% year on year, falling short of analysts’ expectations by 7.3%. It was a disappointing quarter as it posted a significant miss of analysts’ EPS estimates.
Movado delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 13.7% since the results and currently trades at $15.06.
Read our full analysis of Movado’s results here.
Oxford Industries (NYSE: OXM)
The parent company of Tommy Bahama, Oxford Industries (NYSE: OXM) is a lifestyle fashion conglomerate with brands that embody outdoor happiness.
Oxford Industries reported revenues of $392.9 million, down 1.3% year on year. This result beat analysts’ expectations by 2.1%. More broadly, it was a slower quarter as it produced full-year EPS guidance missing analysts’ expectations.
The stock is down 16.7% since reporting and currently trades at $41.69.
Read our full, actionable report on Oxford Industries here, it’s free.
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 $1.70 billion, up 8.3% year on year. This number surpassed analysts’ expectations by 3.2%. It was a strong quarter as it also logged an impressive beat of analysts’ constant currency revenue estimates and a decent beat of analysts’ EPS estimates.
The stock is down 3.7% since reporting and currently trades at $264.16.
Read our full, actionable report on Ralph Lauren here, it’s free.
Market Update
In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.
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