The end of earnings season is a great time to discover new stocks and evaluate how companies are handling the current business environment. Let’s take a look at the second quarter performance of VF Corp (NYSE:VFC) and other apparel, accessories, and luxury goods stocks.
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 saw slower second-quarter results. Groupwide revenue was 1.4% below analysts’ consensus estimates, and the company’s revenue outlook for the next quarter was 12.6% below.
In September 2024, the Federal Reserve lowered its policy interest rate by 50bps (0.5%) for the first time in about four years. This marks the end of the sharpest campaign to defeat inflation since the 1980s. Recent CPI (inflation) statistics are supportive, but employment measures are a cause for concern. Markets will be waiting to see whether the timing of this rate cut (and potentially 2024 and 2025) is the ideal time to support the economy, or whether it’s a bit too late for already too cool macros. Probably.
Apparel, accessories, and luxury goods stocks performed well on the news, with stocks up an average of 3.7% since the most recent earnings release.
Q2 Best: VF Corp (NYSE:VFC)
VF Corp (NYSE:VFC), which owns The North Face, Vans, and Supreme, is a clothing conglomerate specializing in branded lifestyle apparel, footwear, and accessories.
VF Corp. reported revenue of $1.77 billion, down 10.1% year-over-year. The result was 4.1% below analysts’ expectations. Overall, it was a decent quarter for the company, beating analysts’ fixed-currency revenue estimates.
Interestingly, the stock price has increased 20.8% since the report and is currently trading at $19.84.
Is Now the Time to Buy VF Corp? A complete analysis of our financial results is available 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, in line with analyst expectations. Although the business performed better than its peers, it unfortunately had a weak quarter and its revenue outlook for the next quarter was below analysts’ expectations.
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Although it was a strong quarter compared to the same quarter, the market appears to be dissatisfied with the results, as the stock is down 27.9% since the announcement. Current price is $2.70.
Is now the time to buy Stitch Fix? 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 disappointing quarter as the company announced earnings guidance for next quarter that was below analysts’ expectations and also below analysts’ profit estimates.
As expected, the stock has fallen 52.7% since earnings and is currently trading at $0.82.
Click here for a complete analysis of ThredUp’s results.
Under Armor (NYSE:UAA)
Founded in 1996 by a former University of Maryland football player, Under Armor (NYSE:UAA) is an apparel brand focused on sportswear designed to improve athletic performance.
Under Armor reported sales of $1.18 billion, down 10.1% year over year. The print result beat analysts’ expectations by 3.9%. Overall, it was a very strong quarter as the company significantly beat analysts’ earnings expectations.
The stock has increased 32% since the report and is currently trading at $8.55.
Read the full, actionable report on Under Armor for free here.
Kontoor Brand (NYSE:KTB)
Founded in 2019 from VF Corporation, Kontoor Brands (NYSE:KTB) is a clothing company known for its high-quality denim products.
Kontoor Brands reported revenue of $606.9 million, down 1.5% year over year. This figure was 2.3% higher than analysts expected. It was a strong quarter as the company significantly beat analysts’ constant currency sales estimates and also significantly beat analysts’ earnings estimates.
Kontoor Brands achieved the highest full-year guidance hike among its peers. The stock has increased 13.3% since the report and is currently trading at $79.55.
Read the full practical report on the Kontoor brand for free here.
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