Apparel, Accessories and Luxury Goods Stocks Q1 Recap: Benchmarking Oxford Industries (NYSE:OXM)

The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how apparel, accessories and luxury goods stocks fared in Q1, starting with Oxford Industries (NYSE:OXM).

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 18 apparel, accessories and luxury goods stocks we track reported a weaker Q1; on average, revenues missed analyst consensus estimates by 1.1%. while next quarter's revenue guidance was 4.2% below consensus. Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, though the market was optimistic at the end of 2023 due to cooling inflation. The start of 2024 has been a different story as mixed signals have led to market volatility, and apparel, accessories and luxury goods stocks have had a rough stretch, with share prices down 11.4% on average since the previous earnings results.

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 $404.4 million, up 5.7% year on year, falling short of analyst expectations by 0.9%. It was a weaker quarter for the company, with underwhelming earnings guidance for the next quarter. In addition, revenue and EPS fell below analysts' expectations during the quarter.

Tom Chubb, Chairman and CEO, commented, “Fiscal 2023 was highlighted by the second strongest earnings year in our 82-year history and concluded a five-year period during which we delivered compound annual adjusted EPS growth exceeding 18 percent. This strong performance included generating $244 million in cash flow from operations in fiscal 2023, allowing us to invest in both organic growth and acquisitions, return capital to our shareholders via our quarterly dividend and opportunistic share repurchases, and pay down almost all our outstanding debt.

The stock is down 6.5% since the results and currently trades at $105.05.

Read our full report on Oxford Industries here, it's free.

Best Q1: Ralph Lauren (NYSE:RL)

Originally founded as a necktie company, Ralph Lauren (NYSE:RL) is an iconic American fashion brand known for its classic and sophisticated style.

Ralph Lauren reported revenues of $1.93 billion, up 5.6% year on year, outperforming analyst expectations by 3.4%. It was a very strong quarter for the company, with an impressive beat of analysts' revenue and EPS expectations, driven by strong outperformance in its Europe ($522 million of revenue vs estimates of $471 million) and Asia ($446 million of revenue vs estimates of $428 million) segments.

The stock is up 8.8% since the results and currently trades at $160.07.

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

Weakest Q1: VF Corp (NYSE:VFC)

Owner of The North Face, Vans, and Supreme, VF Corp (NYSE:VFC) is a clothing conglomerate specializing in branded lifestyle apparel, footwear, and accessories.

VF Corp reported revenues of $2.96 billion, down 16.2% year on year, falling short of analyst expectations by 8.9%. It was a weak quarter for the company, with revenue, operating margin, and EPS fall below analysts' expectations. This underperformance was driven by declines at The North Face ($1.2 billion of revenue vs estimates of $1.3 billion) and Vans ($668 million of revenue vs estimates of $720 million).

VF Corp had the weakest performance against analyst estimates in the group. The stock is down 26.5% since the results and currently trades at $12.48.

Read our full analysis of VF Corp's results here.

Under Armour (NYSE:UAA)

Founded in 1996 by a former University of Maryland football player, Under Armour (NYSE:UAA) is an apparel brand specializing in sportswear designed to improve athletic performance.

Under Armour reported revenues of $1.49 billion, down 6% year on year, falling short of analyst expectations by 1.3%. It was a mixed quarter for the company, with an impressive beat of analysts' earnings estimates but a miss of analysts' constant currency revenue estimates.

The stock is down 12.6% since the results and currently trades at $6.74.

Read our full, actionable report on Under Armour here, it's free.

Stitch Fix (NASDAQ:SFIX)

One of the original subscription box companies, Stitch Fix (NASDAQ:SFIX) is an online personal styling and fashion service that curates personalized clothing selections for customers.

Stitch Fix reported revenues of $330.4 million, down 17.5% year on year, falling short of analyst expectations by 0.6%. It was a weak quarter for the company, with full-year revenue guidance missing analysts' expectations. Furthermore, its cash burn and EPS loss were much worse than expected.

Stitch Fix had the slowest revenue growth among its peers. The stock is down 29.6% since the results and currently trades at $2.31.

Read our full, actionable report on Stitch Fix here, it's free.

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