Apparel, Accessories and Luxury Goods Stocks Q2 Teardown: Hanesbrands (NYSE:HBI) Vs The Rest
Looking back on apparel, accessories and luxury goods stocks’ Q2 earnings, we examine this quarter’s best and worst performers, including Hanesbrands (NYSE:HBI) 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 17 apparel, accessories and luxury goods stocks we track reported a satisfactory 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 4% on average since the latest earnings results.
Hanesbrands (NYSE:HBI)
A classic American staple founded in 1901, Hanesbrands (NYSE: HBI) is a clothing company known for its array of basic apparel including innerwear and activewear.
Hanesbrands reported revenues of $995.4 million, down 3.8% year on year. This print fell short of analysts’ expectations by 26.4%. Overall, it was a slower quarter for the company with underwhelming earnings guidance for the next quarter.
“We delivered solid second-quarter results in a challenging consumer and apparel market, including better-than-expected U.S. innerwear performance and margin expansion,” said Steve Bratspies, CEO.
Hanesbrands achieved the highest full-year guidance raise but had the weakest performance against analyst estimates of the whole group. Unsurprisingly, the stock is up 39.3% since reporting and currently trades at $7.23.
Read our full report on Hanesbrands 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 estimates and an impressive beat of analysts’ operating margin estimates.
The market seems happy with the results as the stock is up 13.8% since reporting. It currently trades at $6.50.
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 slower quarter as it posted a miss of analysts’ earnings estimates.
As expected, the stock is down 53.1% since the results and currently trades at $0.81.
Read our full analysis of ThredUp’s results here.
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 number topped analysts’ expectations by 1.1%. More broadly, it was a satisfactory quarter as it also recorded full-year revenue guidance exceeding analysts’ expectations but a miss of analysts’ earnings estimates.
The stock is up 19.2% since reporting and currently trades at $45.27.
Read our full, actionable 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. This number was in line with analysts’ expectations. Taking a step back, it was a mixed quarter as it also produced full-year revenue guidance exceeding analysts’ expectations but a miss of analysts’ operating margin estimates.
Stitch Fix had the slowest revenue growth among its peers. The stock is down 25.9% since reporting and currently trades at $2.77.
Read our full, actionable report on Stitch Fix here, it’s free.
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