As the Q4 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the apparel retailer industry, including Gap (NYSE: GAP) and its peers.

Apparel sales are not driven so much by personal needs but by seasons, trends, and innovation, and over the last few decades, the category has shifted meaningfully online. Retailers that once only had brick-and-mortar stores are responding with omnichannel presences. The online shopping experience continues to improve and retail foot traffic in places like shopping malls continues to stall, so the evolution of clothing sellers marches on.

The 9 apparel retailer stocks we track reported a satisfactory Q4. As a group, revenues were in line with analysts’ consensus estimates while next quarter’s revenue guidance was 1.6% below.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 12.9% since the latest earnings results.

Best Q4: Gap (NYSE: GAP)

Operating under the Gap, Old Navy, Banana Republic, and Athleta brands, Gap (NYSE: GAP) is an apparel and accessories retailer selling casual clothing to men, women, and children.

Gap reported revenues of $4.15 billion, down 3.5% year on year. This print exceeded analysts’ expectations by 1.9%. Overall, it was a very strong quarter for the company with a solid beat of analysts’ EPS and EBITDA estimates.

"We ended the year delivering another successful quarter, exceeding financial expectations and gaining market share for the 8th consecutive quarter," said President and Chief Executive Officer, Richard Dickson.

Interestingly, the stock is up 16.2% since reporting and currently trades at $22.66.

Is now the time to buy Gap? Access our full analysis of the earnings results here, it’s free.

Urban Outfitters (NASDAQ: URBN)

Founded as a purveyor of vintage items, Urban Outfitters (NASDAQ: URBN) now largely sells new apparel and accessories to teens and young adults seeking on-trend fashion.

Urban Outfitters reported revenues of $1.64 billion, up 9.4% year on year, in line with analysts’ expectations. The business had a very strong quarter with a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ gross margin estimates.

Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 2.2% since reporting. It currently trades at $51.82.

Is now the time to buy Urban Outfitters? Access our full analysis of the earnings results here, it’s free.

Weakest Q4: Abercrombie and Fitch (NYSE: ANF)

Founded as an outdoor and sporting brand, Abercrombie & Fitch (NYSE: ANF) evolved to become a specialty retailer that sells its own brand of fashionable clothing to young adults.

Abercrombie and Fitch reported revenues of $1.58 billion, up 9.1% year on year, exceeding analysts’ expectations by 1.2%. Still, it was a slower quarter as it posted EPS guidance for next quarter missing analysts’ expectations and a miss of analysts’ gross margin estimates.

As expected, the stock is down 23% since the results and currently trades at $74.

Read our full analysis of Abercrombie and Fitch’s results here.

Victoria's Secret (NYSE: VSCO)

Spun off from L Brands in 2020, Victoria’s Secret (NYSE: VSCO) is an intimate clothing and beauty retailer that sells its own brands of lingerie, undergarments, and personal fragrances.

Victoria's Secret reported revenues of $2.11 billion, up 1.1% year on year. This print topped analysts’ expectations by 1%. It was a strong quarter as it also put up a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ EPS estimates.

Victoria's Secret had the weakest full-year guidance update among its peers. The stock is down 12.1% since reporting and currently trades at $19.50.

Read our full, actionable report on Victoria's Secret here, it’s free.

Tilly's (NYSE: TLYS)

With an emphasis on skate and surf culture, Tilly’s (NYSE: TLYS) is a specialty retailer that sells clothing, footwear, and accessories geared towards fashion-forward teens and young adults.

Tilly's reported revenues of $147.3 million, down 14.9% year on year. This result missed analysts’ expectations by 7.9%. It was a slower quarter as it also recorded revenue guidance for next quarter missing analysts’ expectations and a significant miss of analysts’ EPS estimates.

Tilly's had the weakest performance against analyst estimates and slowest revenue growth among its peers. The stock is down 66% since reporting and currently trades at $1.11.

Read our full, actionable report on Tilly's here, it’s free.

Market Update

Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.

Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

Join Paid Stock Investor Research

Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here.