Unpacking Q3 Earnings: Tilly's (NYSE:TLYS) In The Context Of Other Apparel Retailer Stocks

Quarterly earnings results are a good time to check in on a company’s progress, especially compared to other peers in the same sector. Today we are looking at Tilly's (NYSE:TLYS), and the best and worst performers in the apparel retailer group.

Apparel sales are not driven so much by personal needs but by seasons, trends, and innovation, and over the last few decades, the category has shifted meaningfully online. Retailers that once only had brick-and-mortar stores are responding with omnichannel presences. The online shopping experience continues to improve and retail foot traffic in places like shopping malls continues to stall, so the evolution of clothing sellers marches on.

The 8 apparel retailer stocks we track reported a strong Q3; on average, revenues beat analyst consensus estimates by 3.6% while next quarter's revenue guidance was 3.4% above consensus. Investors abandoned cash-burning companies to buy stocks with higher margins of safety, but apparel retailer stocks held their ground better than others, with the share prices up 11% on average since the previous earnings results.

Tilly's (NYSE:TLYS)

With an emphasis on skate and surf culture, Tilly’s (NYSE:TLYS) is a specialty retailer that sells clothing, footwear, and accessories geared towards fashion-forward teens and young adults.

Tilly's reported revenues of $166.5 million, down 6.4% year on year, falling short of analyst expectations by 1%. It was a weak quarter as same-store sales missed, leading to a revenue miss. Looking ahead, while next quarter's revenue guidance was fine, EPS guidance came in below expectations, suggesting weaker margins.

"Our third quarter results represent a sequential improvement over the first and second quarters of the fiscal year. We continue to work towards protecting product margins, managing inventories and controlling operating expenses amid a continuing difficult economic environment, particularly for our young customer demographic," commented Ed Thomas, President and Chief Executive Officer.

Tilly's delivered the weakest performance against analyst estimates of the whole group. The stock is down 8.2% since the results and currently trades at $7.58.

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

Best Q3: Gap (NYSE:GPS)

Operating under The Gap, Old Navy, Banana Republic, and Athleta brands, The Gap (NYSE:GPS) is an apparel and accessories retailer that sells its own brand of casual clothing to men, women, and children.

Gap reported revenues of $3.77 billion, down 6.7% year on year, outperforming analyst expectations by 4.4%. It was an incredible quarter for the company, with an impressive beat of analysts' earnings estimates.

The stock is up 35.7% since the results and currently trades at $18.53.

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

Victoria's Secret (NYSE:VSCO)

Spun off from L Brands in 2020, Victoria’s Secret (NYSE:VSCO) is an intimate clothing and beauty retailer that sells its own brands of lingerie, undergarments, and personal fragrances.

Victoria's Secret reported revenues of $1.27 billion, down 4% year on year, falling short of analyst expectations by 0.4%. It was a weak quarter for the company, with a miss of analysts' earnings and revenue estimates.

The stock is up 3.9% since the results and currently trades at $24.49.

Read our full analysis of Victoria's Secret's results here.

Torrid (NYSE:CURV)

Promoting a message of body positivity and inclusiveness, Torrid Holdings (NYSE:CURV) is a plus-size women’s apparel and accessories retailer.

Torrid reported revenues of $275.4 million, down 8.3% year on year, surpassing analyst expectations by 12%. It was an exceptional quarter for the company, with an impressive beat of analysts' earnings and revenue estimates.

Torrid scored the biggest analyst estimates beat and highest full-year guidance raise among its peers. The stock is up 42% since the results and currently trades at $5.92.

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

Zumiez (NASDAQ:ZUMZ)

With store associates called “Zumiez Stash Members”, Zumiez (NASDAQ:ZUMZ) is a specialty retailer of street and skate apparel, footwear, and accessories.

Zumiez reported revenues of $216.3 million, down 8.9% year on year, surpassing analyst expectations by 1.3%. It was an exceptional quarter for the company, with an impressive beat of analysts' earnings estimates and revenue guidance for next quarter exceeding analysts' expectations.

Zumiez had the slowest revenue growth among its peers. The stock is down 5.3% since the results and currently trades at $17.92.

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

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The author has no position in any of the stocks mentioned