Tapestry (NYSE:TPR): Strongest Q2 Results from the Apparel, Accessories and Luxury Goods Group

The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Tapestry (NYSE:TPR) and the rest of the apparel, accessories and luxury goods stocks fared in Q2.

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 17 apparel, accessories and luxury goods stocks we track reported a slower Q2. As a group, revenues missed analysts’ consensus estimates by 1.4% while next quarter’s revenue guidance was 12.6% below.

After much suspense, the Federal Reserve cut its policy rate by 50bps (half a percent) in September 2024. This marks the central bank’s first easing of monetary policy since 2020 and the end of its most pointed inflation-busting campaign since the 1980s. Inflation had begun to run hot in 2021 post-COVID due to a confluence of factors such as supply chain disruptions, labor shortages, and stimulus spending. While CPI (inflation) readings have been supportive lately, employment measures have prompted some concern. Going forward, the markets will debate whether this rate cut (and more potential ones in 2024 and 2025) is perfect timing to support 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 3.7% on average since the latest earnings results.

Best Q2: 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 $1.59 billion, down 1.8% year on year. This print exceeded analysts’ expectations by 1.1%. Despite the top-line beat, it was still a slower quarter for the company with a miss of analysts’ earnings estimates and full-year revenue guidance missing analysts’ expectations.

Interestingly, the stock is up 20.6% since reporting and currently trades at $45.80.

Read our full report on Tapestry 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 $319.6 million, down 12.4% year on year, in line with analysts’ expectations. The business performed better than its peers, but it was unfortunately a softer quarter with a miss of analysts’ operating margin estimates and revenue guidance for next quarter missing analysts’ expectations.

Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 30.5% since reporting. It currently trades at $2.60.

Is now the time to buy Stitch Fix? 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 54.4% since the results and currently trades at $0.79.

Read our full analysis of ThredUp’s results here.

Columbia Sportswear (NASDAQ:COLM)

Originally founded as a hat store in 1938, Columbia Sportswear (NASDAQ:COLM) is a manufacturer of outerwear, sportswear, and footwear designed for outdoor enthusiasts.

Columbia Sportswear reported revenues of $570.2 million, down 8.2% year on year. This result met analysts’ expectations. Zooming out, it was a mixed quarter as it also produced an impressive beat of analysts’ constant currency revenue estimates but underwhelming earnings guidance for the full year.

The stock is up 8.7% since reporting and currently trades at $83.92.

Read our full, actionable report on Columbia Sportswear here, it’s free.

PVH (NYSE:PVH)

Founded in 1881 by a husband and wife duo, PVH (NYSE:PVH) is a global fashion conglomerate with iconic brands like Calvin Klein and Tommy Hilfiger.

PVH reported revenues of $2.07 billion, down 6% year on year. This print was in line with analysts’ expectations. It was a satisfactory quarter as it also logged an impressive beat of analysts’ earnings estimates.

The stock is down 9.8% since reporting and currently trades at $94.30.

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

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