As Q2 earnings season comes to a close, take a deep dive into this quarter’s best- and worst-performing companies in the Apparel, Accessories, and Luxury industry, including Guess (NYSE:GES) and its peers. Let’s.
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 1.3% below analysts’ consensus estimates, and the company’s revenue outlook for the next quarter was 12.6% below.
Overall, the Federal Reserve has a dual mission of inflation and employment. The former had been on an upward trend from 2021 to 2022, but has recently cooled towards the central bank’s 2% target. In response, the Fed lowered its policy interest rate by 50bps (0.5%) in September 2024. Markets will be weighing this rate cut and future rate cuts given recent employment data that suggests the US economy may be unstable (the Fed has signaled further cuts to policy rates) in 2024. and coming in 2025) is either the right move at the right time, or too little, too late for an already cooling macro.
Thankfully, apparel, accessories, and luxury goods stocks have been resilient, with shares up an average of 5.5% since the latest earnings release.
Best Q2: Guess (NYSE:GES)
With its iconic inverted triangle logo and question mark, Guess (NYSE:GES) is a global fashion brand known for its trendy clothing, accessories, and denim wear.
Guess reported revenue of $732.6 million, up 10.2% year over year. The results were in line with analysts’ expectations, but overall it was a mixed quarter for the company, with full-year profit expectations underwhelming.
CEO Carlos Alberini commented: This performance was driven by the Rag & Bone acquisition and strong wholesale performance in our European and American operations. Sales increased in all segments except Asia. Our bottom line results compare to last year’s spending on marketing to support the international expansion of our brands, including our core Guess brand and new additions to our portfolio, Guess Jean and rag &bone. reflects our decision to significantly increase our investments. ”
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Guess achieved the fastest revenue growth of the entire group. Despite having a great quarter compared to the same quarter, the market appears to be dissatisfied with the results. The stock has fallen 38.8% since the report and is currently trading at $2.29.
Read the full report on Guess here. It’s free.
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. The quarter was a weaker quarter as analysts’ operating margin expectations were missed and next quarter’s revenue outlook was also lower than analysts expected.
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 38.8% since the announcement. Current price is $2.29.
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 announced earnings guidance for next quarter that was below analysts’ expectations and also below analysts’ revenue estimates.
As expected, the stock has fallen 52.5% since earnings and is currently trading at $0.82.
Click here for a complete analysis of ThredUp’s results.
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, an increase of 4.4% year over year. This figure was 1.4% higher than analysts expected. It was a very strong quarter, exceeding analysts’ earnings estimates by a wide margin.
The stock has increased 18% since the report and is currently trading at $6.74.
Read the full practical report on Figs for free here.
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 result was 4.2% below analysts’ expectations. It was also a disappointing quarter as the next quarter’s revenue forecast was lower than analysts’ expectations, and the next quarter’s profit forecast was also overwhelmingly lower.
The stock has increased 1.3% since the report and is currently trading at $84.67.
Read the full practical report on Oxford Industries for free here.
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