Quarterly results are a good time to see how a company is progressing, especially compared to its competitors in the same sector. Today, we’ll be looking at PVH (NYSE:PVH) and the best and worst performing companies in the apparel, accessories, and luxury goods industry.
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 earnings outlook for the next quarter was 12.6% below.
Recently, the Fed decided to cut its policy rate by 50 bps (0.5%) in September 2024 as inflation moved towards the Fed’s 2% target. This is the first reduction in four years. Recent CPI (inflation) statistics are supportive, but employment measures are a cause for concern. Markets will debate whether the timing of this rate cut (and more likely in 2024 and 2025) is ideal to support the economy, or whether it’s a bit too late for an already chilled macro. Probably.
Apparel, accessories, and luxury goods stocks performed well on the news, with stocks up an average of 2.9% since the most recent earnings release.
Q2 Best: PVH (NYSE:PVH)
Founded in 1881 by a husband-and-wife duo, PVH (NYSE:PVH) is a global fashion conglomerate with iconic brands such as Calvin Klein and Tommy Hilfiger.
PVH’s revenue was $2.07 billion, down 6% year over year. The results were in line with analyst expectations, and overall it was a satisfactory quarter for the company, well above analysts’ revenue expectations.
“With disciplined execution of our PVH+ plan, we delivered on our top and bottom line commitments and exceeded our second quarter earnings expectations,” said CEO Stefan Larsson. For both companies, we drove strong consumer engagement, continued product enhancements, and improved assortment freshness, resulting in increased full-price sales and end-of-season inventory clearance. Sales were reduced, driving significant gross profit growth.”
Unsurprisingly, the stock has fallen 9.8% since the report and is currently trading at $94.30.
Is now the time to buy PVH? A complete analysis of our financial results is available for free here.
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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.
Although it was a strong quarter compared to the same quarter, the market appears to be dissatisfied with the results, as the stock has fallen 30.5% since the announcement. Current price is $2.60.
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 revenue was $79.76 million, down 3.5% year over year, and 3.3% below analysts’ expectations. It was a disappointing quarter as the company’s revenue outlook for next quarter was below analysts’ expectations.
As expected, the stock has fallen 54.4% since earnings and is currently trading at $0.79.
Click here for a complete analysis of ThredUp’s results.
Oxford Industries (NYSE:OXM)
Tommy Bahama’s parent company, Oxford Industries (NYSE:OXM), is a lifestyle fashion conglomerate with brands that embody outdoor happiness.
Oxford Industries reported sales of $419.9 million, flat year-over-year. This figure was 4.2% lower than analysts expected. Overall, this was a disappointing quarter as the company’s revenue outlook for the next quarter was below analysts’ expectations and the revenue outlook for the next quarter was also underwhelming.
The stock has fallen 7% since the report and is currently trading at $77.70.
Read the full practical report on Oxford Industries 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. Overall, 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 salary increase among its peers. The stock price has increased 11.3% since the report and is currently trading at $78.21.
Read the full practical report on the Kontoor brand for free here.
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