As the Q1 earnings season wraps, let’s dig into this quarter’s best and worst performers in the apparel retailer industry, including Lululemon (NASDAQ: LULU) and its peers.
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 satisfactory Q1. As a group, revenues beat analysts’ consensus estimates by 1% while next quarter’s revenue guidance was in line.
Thankfully, share prices of the companies have been resilient as they are up 7.6% on average since the latest earnings results.
Weakest Q1: Lululemon (NASDAQ: LULU)
Originally serving yogis and hockey players, Lululemon (NASDAQ: LULU) is a designer, distributor, and retailer of athletic apparel for men and women.
Lululemon reported revenues of $2.47 billion, up 4.3% year on year. This print exceeded analysts’ expectations by 1.7%. Despite the top-line beat, it was still a softer quarter for the company with full-year EPS guidance missing analysts’ expectations significantly and EPS guidance for next quarter missing analysts’ expectations.
Lululemon delivered the weakest guidance update and weakest full-year guidance update in the group. The market seems disappointed with the results as the stock is down 4.3% since reporting and currently trades at $119.55.
Is now the time to buy Lululemon? Access our full analysis of the earnings results here, it’s free.
Best Q1: 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 $124.7 million, up 15.9% year on year, outperforming analysts’ expectations by 2.8%. The business had a stunning quarter with EPS guidance for next quarter exceeding analysts’ expectations and an impressive beat of analysts’ gross margin estimates.
Tilly's scored the biggest analyst estimate beat, highest guidance raise, and fastest revenue growth among its peers. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 6.9% since reporting. It currently trades at $4.14.
Is now the time to buy Tilly's? Access our full analysis of the earnings results 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 $193.3 million, up 4.9% year on year, in line with analysts’ expectations. It was a slower quarter as it posted EPS guidance for next quarter missing analysts’ expectations significantly and revenue guidance for next quarter missing analysts’ expectations.
As expected, the stock is down 19.5% since the results and currently trades at $18.90.
Read our full analysis of Zumiez’s results here.
American Eagle (NYSE: AEO)
With a heavy focus on denim, American Eagle Outfitters (NYSE: AEO) is a specialty retailer offering an assortment of apparel and accessories to young adults.
American Eagle reported revenues of $1.20 billion, up 9.7% year on year. This number surpassed analysts’ expectations by 0.9%. It was a strong quarter as it also produced a beat of analysts’ EPS estimates and gross margin in line with analysts’ estimates.
The stock is down 9.1% since reporting and currently trades at $16.29.
Read our full, actionable report on American Eagle here, it’s free.
Urban Outfitters (NASDAQ: URBN)
Founded as a purveyor of vintage items, Urban Outfitters (NASDAQ: URBN) now largely sells new apparel and accessories to teens and young adults seeking on-trend fashion.
Urban Outfitters reported revenues of $1.48 billion, up 11.4% year on year. This result topped analysts’ expectations by 1.4%. Overall, it was a strong quarter as it also recorded a beat of analysts’ EPS estimates and a narrow beat of analysts’ gross margin estimates.
The stock is up 6.7% since reporting and currently trades at $76.45.
Read our full, actionable report on Urban Outfitters here, it’s free.
Market Update
Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership.
Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products.
By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals.
Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
