Apparel, Accessories and Luxury Goods Stocks Q2 Teardown: G-III (NASDAQ:GIII) Vs The Rest
Looking back on apparel, accessories and luxury goods stocks’ Q2 earnings, we examine this quarter’s best and worst performers, including G-III (NASDAQ:GIII) and its peers.
Within apparel and accessories, not only do styles change more frequently today than decades past as fads travel through social media and the internet but consumers are also shifting the way they buy their goods, favoring omnichannel and e-commerce experiences. Some apparel, accessories, and luxury goods companies have made concerted efforts to adapt while those who are slower to move may fall behind.
The 16 apparel, accessories and luxury goods stocks we track reported a mixed Q2. As a group, revenues missed analysts’ consensus estimates by 1.4% while next quarter’s revenue guidance was 13.1% below.
The Fed cut its policy rate by 50bps (half a percent) in September 2024, the first in roughly four years. This marks the end of its most pointed inflation-busting campaign since the 1980s. While CPI (inflation) readings have been supportive lately, employment measures have bordered on worrisome. The markets will be assessing whether this rate cut's timing (and more potential ones in 2024 and 2025) is ideal for supporting the economy or a bit too late for a macro that has already cooled too much.
In light of this news, apparel, accessories and luxury goods stocks have held steady with share prices 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 $644.8 million, down 2.3% year on year. This print was in line with analysts’ expectations, and overall, it was a satisfactory quarter for the company with an impressive beat of analysts’ earnings estimates.
Morris Goldfarb, G-III’s Chairman and Chief Executive Officer, said, “We delivered a strong first half of the year. Our second quarter non-GAAP net income per diluted share of $0.52 exceeded our expectations, led by our owned brands. DKNY and Karl Lagerfeld collectively grew double-digits and the Donna Karan relaunch has been incredibly successful, in addition to continued solid performance with healthy sell-throughs across the rest of our business.”
Interestingly, the stock is up 26.6% since reporting and currently trades at $31.71.
Is now the time to buy G-III? Access our full analysis of the earnings results 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 $144.2 million, up 4.4% year on year, outperforming analysts’ expectations by 1.4%. The business had a very strong quarter with an impressive beat of analysts’ earnings and operating margin estimates.
Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 1.1% since reporting. It currently trades at $5.65.
Is now the time to buy Figs? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: ThredUp (NASDAQ:TDUP)
Founded to revolutionize thrifting, ThredUp (NASDAQ:TDUP) is a leading online fashion resale marketplace that offers a wide selection of gently-used clothing and accessories.
ThredUp reported revenues of $79.76 million, down 3.5% year on year, falling short of analysts’ expectations by 3.3%. It was a disappointing quarter as it posted revenue guidance for next quarter missing analysts’ expectations and a miss of analysts’ earnings estimates.
As expected, the stock is down 48.4% since the results and currently trades at $0.89.
Read our full analysis of ThredUp’s results here.
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 $1.44 billion, up 7.8% year on year. This print met analysts’ expectations. It was a strong quarter as it also produced an impressive beat of analysts’ earnings and operating margin estimates.
The stock is down 12.6% since reporting and currently trades at $20.25.
Read our full, actionable report on Levi's here, it’s free.
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 $159.3 million, flat year on year. This print beat analysts’ expectations by 5.9%. Zooming out, it was a weaker quarter as it logged full-year revenue guidance missing analysts’ expectations.
Movado achieved the biggest analyst estimates beat among its peers. The stock is down 12% since reporting and currently trades at $19.86.
Read our full, actionable report on Movado here, it’s free.
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.
