Wrapping up Q1 earnings, we look at the numbers and key takeaways for the apparel and accessories stocks, including Guess (NYSE: GES) 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 1.7% 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 4.1% on average since the latest earnings results.
Guess (NYSE: GES)
Flexing the iconic upside-down triangle logo with a question mark, Guess (NYSE: GES) is a global fashion brand known for its trendy clothing, accessories, and denim wear.
Guess reported revenues of $647.8 million, up 9.4% year on year. This print exceeded analysts’ expectations by 2.4%. Overall, it was a strong quarter for the company with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
Carlos Alberini, Chief Executive Officer, commented, “We are encouraged by our first quarter performance, which came in ahead of expectations across key metrics. Revenue grew 9% in U.S. dollars and 12% in constant currency, reflecting the successful integration of rag & bone and continued momentum in our wholesale businesses across Europe and the Americas. Disciplined expense management, combined with the better than expected top-line performance, enabled us to report operating results ahead of our guidance range, narrowing our loss for the quarter.”
Interestingly, the stock is up 14.9% since reporting and currently trades at $12.70.
Is now the time to buy Guess? Access our full analysis of the earnings results here, it’s free.
Best Q1: Levi's (NYSE: LEVI)
Credited for inventing the first pair of blue jeans in 1873, Levi's (NYSE: LEVI) is an apparel company renowned for its iconic denim products and classic American style.
Levi's reported revenues of $1.45 billion, up 6.4% year on year, outperforming analysts’ expectations by 5.8%. The business had an exceptional quarter with an impressive beat of analysts’ constant currency revenue estimates and a solid beat of analysts’ EPS estimates.
Levi's achieved the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 8.4% since reporting. It currently trades at $21.39.
Is now the time to buy Levi's? 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 4.6% since the results and currently trades at $16.65.
Read our full analysis of Movado’s results here.
G-III (NASDAQ: GIII)
Founded as a small leather goods business, G-III (NASDAQ: GIII) is a fashion and apparel conglomerate with a diverse portfolio of brands.
G-III reported revenues of $583.6 million, down 4.3% year on year. This result topped analysts’ expectations by 0.6%. Aside from that, it was a mixed quarter as it also logged a solid beat of analysts’ EPS estimates but EPS guidance for next quarter missing analysts’ expectations significantly.
The stock is down 15.4% since reporting and currently trades at $23.40.
Read our full, actionable report on G-III here, it’s free.
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 number surpassed analysts’ expectations by 2.1%. Aside from that, it was a slower quarter as it logged full-year EPS guidance missing analysts’ expectations significantly and EPS guidance for next quarter missing analysts’ expectations significantly.
The stock is down 9.6% since reporting and currently trades at $45.25.
Read our full, actionable report on Oxford Industries here, it’s free.
Market Update
As a result of the Fed’s rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed’s 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump’s victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025.
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