Apparel, Accessories and Luxury Goods Stocks Q2 Earnings Review: VF Corp (NYSE:VFC) Shines
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 VF Corp (NYSE:VFC) 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.
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 3.7% on average since the latest earnings results.
Best Q2: 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 $1.77 billion, down 10.1% year on year. This print fell short of analysts’ expectations by 4.1%. Overall, it was a decent quarter for the company with an impressive beat of analysts’ constant currency revenue estimates.
Interestingly, the stock is up 20.8% since reporting and currently trades at $19.84.
Is now the time to buy VF Corp? Access our full analysis of the earnings results 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 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 27.9% since reporting. It currently trades at $2.70.
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 52.7% since the results and currently trades at $0.82.
Read our full analysis of ThredUp’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 $1.18 billion, down 10.1% year on year. This print topped analysts’ expectations by 3.9%. Overall, it was a very strong quarter as it also logged an impressive beat of analysts’ earnings estimates.
The stock is up 32% since reporting and currently trades at $8.55.
Read our full, actionable report on Under Armour here, it’s free.
Kontoor Brands (NYSE:KTB)
Founded in 2019 after separating from VF Corporation, Kontoor Brands (NYSE:KTB) is a clothing company known for its high-quality denim products.
Kontoor Brands reported revenues of $606.9 million, down 1.5% year on year. This number surpassed analysts’ expectations by 2.3%. It was a strong quarter as it also produced an impressive beat of analysts’ constant currency revenue estimates and a decent beat of analysts’ earnings estimates.
Kontoor Brands achieved the highest full-year guidance raise among its peers. The stock is up 13.3% since reporting and currently trades at $79.55.
Read our full, actionable report on Kontoor Brands here, it’s free.
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