As the Q3 earnings season wraps, let’s dig into this quarter’s best and worst performers in the apparel retailer industry, including Abercrombie and Fitch (NYSE: ANF) 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 Q3. As a group, revenues were in line with analysts’ consensus estimates while next quarter’s revenue guidance was 2.1% below.

While some apparel retailer stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 3.6% since the latest earnings results.

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 $1.21 billion, up 14.4% year on year. This print exceeded analysts’ expectations by 2.1%. Overall, it was a very strong quarter for the company with an impressive beat of analysts’ EBITDA estimates and a decent beat of analysts’ EPS estimates.

Fran Horowitz, Chief Executive Officer, said, “For the sixth consecutive quarter, our global team delivered double-digit net sales growth. This great sales performance led to better-than-expected results on both the top and bottom lines. With broad-based growth across regions and brands, we continue to execute at a high level, leveraging our regional playbooks and operating model."

Abercrombie and Fitch achieved the fastest revenue growth of the whole group. Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 29% since reporting and currently trades at $109.81.

We think Abercrombie and Fitch is a good business, but is it a buy today? Read our full report here, it’s free.

Best Q3: 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 $1.36 billion, up 6.3% year on year, outperforming analysts’ expectations by 1.7%. The business had an exceptional quarter with an impressive beat of analysts’ gross margin estimates and a solid beat of analysts’ EBITDA estimates.

The market seems happy with the results as the stock is up 43.8% since reporting. It currently trades at $57.72.

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

Weakest Q3: Torrid (NYSE: CURV)

Promoting a message of body positivity and inclusiveness, Torrid Holdings (NYSE: CURV) is a plus-size women’s apparel and accessories retailer.

Torrid reported revenues of $263.8 million, down 4.2% year on year, falling short of analysts’ expectations by 6.6%. It was a disappointing quarter as it posted full-year EBITDA guidance missing analysts’ expectations.

Torrid delivered the weakest performance against analyst estimates and weakest full-year guidance update in the group. Interestingly, the stock is up 29.8% since the results and currently trades at $6.01.

Read our full analysis of Torrid’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 $1.35 billion, up 6.5% year on year. This number surpassed analysts’ expectations by 4.6%. It was an exceptional quarter as it also logged an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ EPS estimates.

Victoria's Secret achieved the biggest analyst estimates beat among its peers. The stock is down 28.3% since reporting and currently trades at $30.86.

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 $143.4 million, down 13.8% year on year. This print came in 2.3% below analysts' expectations. Overall, it was a slower quarter as it also produced revenue guidance for next quarter missing analysts’ expectations.

Tilly's had the slowest revenue growth among its peers. The stock is down 9.7% since reporting and currently trades at $3.90.

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

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