We look back at second-quarter earnings for apparel, accessories, and luxury goods stocks, and examine the best and worst performers of the quarter, including Hanes Brands (NYSE:HBI) and its peers.
In apparel and accessories, not only are styles changing more frequently today than in past decades, as trends are transmitted through social media and the internet, but consumers are also changing the way they purchase products, becoming omnichannel. and e-commerce experience. While some apparel, accessories, and luxury goods companies are making a concerted effort to adapt, slow-moving companies may fall behind.
The 17 apparel, accessories, and luxury goods stocks we track reported satisfactory results in the second quarter. Groupwide revenue was 1.4% below analysts’ consensus estimates, and the company’s earnings outlook for the next quarter was 12.6% below.
After much doubt, the Federal Reserve cut interest rates by 50 bps (0.5 percent) in September 2024. This is the central bank’s first monetary policy easing since 2020 and marks the end of its sharpest campaign to curb inflation since the 1980s. In 2021, post-COVID-19, a combination of factors including supply chain disruptions, labor shortages, and economic stimulus meant that inflation began to heat up. Recent CPI (inflation) statistics have been supportive, but employment measures are causing some concern. Going forward, markets will debate whether this rate cut (and the possibility of further cuts in 2024 and 2025) is the perfect time to support the economy, or whether it’s a bit too late for an already cooling macroeconomy. It will be.
Apparel, accessories, and luxury goods stocks performed well on the news, with stocks up an average of 4% since the most recent earnings release.
Hanes Brands (NYSE:HBI)
A classic American staple founded in 1901, Hanes Brands (NYSE: HBI) is a clothing company known for its wide selection of basic apparel, including innerwear and activewear.
Hanesbrands’ sales were $995.4 million, down 3.8% year over year. This result was 26.4% below analysts’ expectations. Overall, it was a weak quarter for the company, and its earnings outlook for next quarter was less than impressive.
“We delivered strong second-quarter results in a challenging consumer and apparel market, including better-than-expected results and margin expansion in U.S. innerwear,” said CEO Steve Bratzpeace.
Hanesbrands achieved the highest guidance hike of the year, but performed the weakest compared to analyst expectations across the group. Unsurprisingly, the stock has increased 39.3% since the report and is currently trading at $7.23.
Read the full report on Hanesbrands for free here.
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Best Q2: Figs (NYSE:FIGS)
Figs (NYSE:FIGS), which rose to fame through TikTok and was founded in 2013 by Heather Hasson and Trina Spear, is a healthcare apparel company known for its stylish approach to medical attire and uniforms.
Figs reported revenue of $144.2 million, up 4.4% year-over-year and beating analyst expectations by 1.4%. The business had a very strong quarter, exceeding analysts’ revenue expectations and exceeding analysts’ operating margin expectations.
The market seems satisfied with this result, with the stock price up 13.8% since the announcement. Current price is $6.50.
Is now the time to buy figs? A complete analysis of our financial results is available for free here.
Weakest in Q2: ThredUp (NASDAQ:TDUP)
Founded to revolutionize thrifting, ThredUp (NASDAQ:TDUP) is the leading online fashion resale marketplace offering a wide selection of gently used clothing and accessories.
ThredUp reported that sales were $79.76 million, down 3.5% year over year, and 3.3% below analysts’ expectations. It was a weak quarter as the company missed analysts’ profit expectations.
As expected, the stock has fallen 53.1% since earnings and is currently trading at $0.81.
Click here for a complete analysis of ThredUp’s results.
Tapestry (NYSE:TPR)
Tapestry (NYSE:TPR), originally founded as Coach, is an American fashion conglomerate with a portfolio of luxury brands offering high-quality accessories and fashion products.
Tapestry’s revenue was $1.59 billion, down 1.8% year over year. This figure was 1.1% higher than analysts expected. More broadly, it was a satisfying quarter, as the company also posted full-year revenue guidance that beat analysts’ expectations, but missed analysts’ profit estimates.
The stock has increased 19.2% since the report and is currently trading at $45.27.
Read the full practical report on Tapestry for free here.
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 a personalized clothing selection for its customers.
Stitch Fix reported revenue of $319.6 million, down 12.4% year over year. This number was in line with analyst expectations. Taking a step back, it was a mixed quarter as full-year sales guidance also exceeded analysts’ expectations, but fell short of analysts’ operating margin expectations.
Stitch Fix had the slowest revenue growth among its peers. The stock has fallen 25.9% since the report and is currently trading at $2.77.
Read the full practical report on Stitch Fix for free here.
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