As the Q2 earnings season wraps, let’s dig into this quarter’s best and worst performers in the apparel and accessories industry, including Movado (NYSE: MOV) 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 16 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 15.4% below.
Luckily, apparel and accessories stocks have performed well with share prices up 10.2% on average since the latest earnings results.
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 $161.8 million, up 3.1% year on year. This print exceeded analysts’ expectations by 3.2%. Despite the top-line beat, it was still a slower quarter for the company with a significant miss of analysts’ EPS estimates.
Efraim Grinberg, Chairman and Chief Executive Officer, stated, “We are pleased with our second quarter results, which were highlighted by increased net sales, a healthy gross margin despite tariff impacts, and a significant increase in operating income year over year. Our growth in a challenging environment reflects the power of our iconic portfolio of watch and jewelry brands, our compelling innovation, and the discipline with which we execute. International markets led our performance, driven by our licensed brands, with particular strength in our women’s watch collections and men’s jewelry. We also experienced growth in our global digital business. We concluded the quarter with $180.5 million in cash and no debt, positioning us well to invest in our growth initiatives and continue to return value to shareholders. We are also pleased to announce that our Board declared a quarterly dividend payment of $0.35 per share.”
Interestingly, the stock is up 13.6% since reporting and currently trades at $19.91.
Read our full report on Movado 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.
The market seems happy with the results as the stock is up 11.1% since reporting. It currently trades at $7.29.
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 9% since the results and currently trades at $29.77.
Read our full analysis of Carter’s results here.
Tapestry (NYSE: TPR)
Originally founded as Coach, Tapestry (NYSE: TPR) is an American fashion conglomerate with a portfolio of luxury brands offering high-quality accessories and fashion products.
Tapestry reported revenues of $1.72 billion, up 8.3% year on year. This print beat analysts’ expectations by 2.6%. Aside from that, it was a mixed quarter as it also recorded an impressive beat of analysts’ constant currency revenue estimates but a significant miss of analysts’ EPS estimates.
The stock is down 5.9% since reporting and currently trades at $106.87.
Read our full, actionable report on Tapestry 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 result topped analysts’ expectations by 1.9%. Overall, it was a very strong quarter as it also logged a solid beat of analysts’ constant currency revenue estimates and EPS guidance for next quarter exceeding analysts’ expectations.
The stock is up 52.8% since reporting and currently trades at $6.37.
Read our full, actionable report on Hanesbrands here, it’s free.
Market Update
In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.
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