Spotting Winners: Tapestry (NYSE:TPR) And Apparel, Accessories and Luxury Goods Stocks In Q4
Wrapping up Q4 earnings, we look at the numbers and key takeaways for the apparel, accessories and luxury goods stocks, including Tapestry (NYSE:TPR) 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 18 apparel, accessories and luxury goods stocks we track reported a weaker Q4; on average, revenues missed analyst consensus estimates by 1.1%. while next quarter's revenue guidance was 4.2% below consensus. Inflation progressed towards the Fed's 2% goal at the end of 2023, leading to strong stock market performance. The start of 2024 has been a bumpier ride, as the market switches between optimism and pessimism around rate cuts due to mixed inflation data, and apparel, accessories and luxury goods stocks have had a rough stretch, with share prices down 12.9% on average since the previous earnings results.
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 $2.08 billion, up 2.9% year on year, topping analyst expectations by 1.4%. It was a mixed quarter for the company, with optimistic earnings guidance for the full year but a miss of analysts' earnings estimates.
Joanne Crevoiserat, Chief Executive Officer of Tapestry, Inc., said, “Our second quarter results exceeded expectations, highlighting the power of brand building and disciplined execution. During the key holiday season, our passionate teams delivered for our customers, fueling brand magic through innovative product, engaging storytelling, and operational excellence. Importantly, we drove record revenue and EPS, while advancing our strategic agenda. Based on these results, we are raising our EPS outlook for the fiscal year.”
The stock is up 1.9% since the results and currently trades at $41.14.
Is now the time to buy Tapestry? Access our full analysis of the earnings results here, it's free.
Best Q4: 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 Q4: 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 27.8% since the results and currently trades at $12.25.
Read our full analysis of VF Corp's results here.
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.
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 $764.8 million, down 10.5% year on year, falling short of analyst expectations by 6.4%. It was a weak quarter for the company, with a miss of analysts' revenue estimates.
The stock is down 10.7% since the results and currently trades at $27.12.
Read our full, actionable report on G-III here, it's free.
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