Looking back on apparel and accessories stocks’ Q3 earnings, we examine this quarter’s best and worst performers, including Stitch Fix (NASDAQ:SFIX) and its peers.
Thanks to social media and the internet, not only are styles changing more frequently today than in decades past but also consumers are shifting the way they buy their goods, favoring omnichannel and e-commerce experiences. Some apparel and accessories companies have made concerted efforts to adapt while those who are slower to move may fall behind.
The 17 apparel and accessories stocks we track reported a mixed Q3. As a group, revenues along with next quarter’s revenue guidance were in line with analysts’ consensus estimates.
Luckily, apparel and accessories stocks have performed well with share prices up 16.7% on average since the latest earnings results.
Best Q3: 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 $318.8 million, down 12.6% year on year. This print exceeded analysts’ expectations by 3.9%. Overall, it was an exceptional quarter for the company with EBITDA guidance for next quarter exceeding analysts’ expectations and an impressive beat of analysts’ EPS estimates.
“Our fiscal year is off to a strong start. We exceeded our expectations in the first quarter on the top and bottom lines,” said Matt Baer, Chief Executive Officer, Stitch Fix.
Stitch Fix achieved the biggest analyst estimates beat and highest full-year guidance raise, but had the slowest revenue growth of the whole group. Unsurprisingly, the stock is up 2.6% since reporting and currently trades at $4.72.
Is now the time to buy Stitch Fix? Access our full analysis of the earnings results here, it’s free.
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 $2.76 billion, down 5.6% year on year, outperforming analysts’ expectations by 1.6%. The business had a very strong quarter with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
The market seems happy with the results as the stock is up 36.5% since reporting. It currently trades at $23.24.
Is now the time to buy VF Corp? Access our full analysis of the earnings results here, it’s free.
Weakest Q3: 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 $140.2 million, down 1.5% year on year, falling short of analysts’ expectations by 2.1%. It was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income estimates.
As expected, the stock is down 13.3% since the results and currently trades at $5.78.
Read our full analysis of Figs’s results here.
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 $1.09 billion, up 1.8% year on year. This print lagged analysts' expectations by 1.1%. Aside from that, it was a mixed quarter as it also produced an impressive beat of analysts’ adjusted operating income estimates but full-year revenue guidance missing analysts’ expectations.
G-III had the weakest full-year guidance update among its peers. The stock is down 3.2% since reporting and currently trades at $30.55.
Read our full, actionable report on G-III here, it’s free.
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 $937.1 million, down 2.5% year on year. This number was in line with analysts’ expectations. It was a very strong quarter as it also produced EPS guidance for next quarter exceeding analysts’ expectations.
The stock is up 19.7% since reporting and currently trades at $8.50.
Read our full, actionable report on Hanesbrands here, it’s free.
Market Update
Thanks to the Fed's series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market has thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% each in November and December), and a notable surge followed Donald Trump's presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by the pace and magnitude of future rate cuts as well as potential changes in trade policy and corporate taxes once the Trump administration takes over. The path forward is marked by uncertainty.
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