Wrapping up Q2 earnings, we look at the numbers and key takeaways for the apparel and accessories stocks, including G-III (NASDAQ: GIII) 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 Q2. As a group, revenues beat analysts’ consensus estimates by 3.1% while next quarter’s revenue guidance was 13% below.
In light of this news, share prices of the companies have held steady as they are up 4.4% on average since the latest earnings results.
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 $613.3 million, down 4.9% year on year. This print exceeded analysts’ expectations by 7.4%. Despite the top-line beat, it was still a slower quarter for the company with revenue guidance for next quarter missing analysts’ expectations significantly and EPS guidance for next quarter missing analysts’ expectations.
Morris Goldfarb, G-III’s Chairman and Chief Executive Officer, said, “In the second quarter, we exceeded expectations across both net sales and earnings, driven by the strong momentum of our go-forward portfolio, led by DKNY, Donna Karan, Karl Lagerfeld, and Vilebrequin. These results highlight our ability to execute on our strategic priorities and leverage our powerful corporate platform to maximize the full potential of our globally recognized brands.”
G-III achieved the biggest analyst estimates beat but had the slowest revenue growth and slowest revenue growth of the whole group. Still, the market seems discontent with the results. The stock is down 0.6% since reporting and currently trades at $26.61.
Read our full report on G-III here, it’s free.
Best Q2: Figs (NYSE: FIGS)
Rising to fame via TikTok and founded in 2013 by Heather Hasson and Trina Spear, Figs (NYSE: FIGS) is a healthcare apparel company known for its stylish approach to medical attire and uniforms.
Figs reported revenues of $152.6 million, up 5.8% year on year, outperforming analysts’ expectations by 5.5%. The business had a stunning quarter with a beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $6.60.
Is now the time to buy Figs? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: Carter's (NYSE: CRI)
Rumored to sell more than 10 products for every child born in the United States, Carter's (NYSE: CRI) is an American designer and marketer of children's apparel.
Carter's reported revenues of $585.3 million, up 3.7% year on year, exceeding analysts’ expectations by 3.4%. Still, it was a softer quarter as it posted a significant miss of analysts’ adjusted operating income estimates and a significant miss of analysts’ EBITDA estimates.
As expected, the stock is down 12.7% since the results and currently trades at $28.56.
Read our full analysis of Carter’s results here.
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 $403.1 million, down 4% year on year. This number came in 0.7% below analysts' expectations. Zooming out, it was a mixed quarter as it also recorded full-year EPS guidance beating analysts’ expectations but EPS guidance for next quarter missing analysts’ expectations significantly.
Oxford Industries had the weakest performance against analyst estimates among its peers. The stock is up 2.3% since reporting and currently trades at $41.35.
Read our full, actionable report on Oxford Industries here, it’s free.
Hanesbrands (NYSE: HBI)
A classic American staple founded in 1901, Hanesbrands (NYSE: HBI) is a clothing company known for its array of basic apparel including innerwear and activewear.
Hanesbrands reported revenues of $991.3 million, up 1.8% year on year. This print surpassed analysts’ expectations by 1.9%. It was a very strong quarter as it also put up a solid beat of analysts’ constant currency revenue estimates and EPS guidance for next quarter exceeding analysts’ expectations.
The stock is up 58% since reporting and currently trades at $6.59.
Read our full, actionable report on Hanesbrands 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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