Earnings results often indicate what direction a company will take in the months ahead. With Q1 behind us, let’s have a look at Under Armour (NYSE: UAA) and its peers.

The Consumer Discretionary sector, by definition, is made up of companies selling non-essential goods and services. When economic conditions deteriorate or tastes shift, consumers can easily cut back or eliminate these purchases. For long-term investors with five-year holding periods, this creates a structural challenge: the sector is inherently hit-driven, with low switching costs and fickle customers. As a result, only a handful of companies can reliably grow demand and compound earnings over long periods, which is why our bar is high and High Quality ratings are rare. Apparel and accessories companies design, brand, and distribute clothing, handbags, jewelry, and related lifestyle products, often spanning multiple price tiers. Tailwinds include premiumization trends (consumers trading up for perceived quality), international expansion into emerging markets, and growing digital commerce penetration. However, these businesses face headwinds from highly cyclical demand, intense promotional environments, and counterfeit competition undermining brand equity. Tariff volatility and sourcing concentration in a handful of countries add risk. Additionally, rapidly changing fashion cycles and the rise of ultra-fast-fashion digital competitors compress product life cycles and make demand forecasting exceptionally difficult.

The 15 consumer discretionary - apparel and accessories stocks we track reported a strong Q1. As a group, revenues beat analysts’ consensus estimates by 1.6% while next quarter’s revenue guidance was in line.

Luckily, consumer discretionary - apparel and accessories stocks have performed well with share prices up 10.5% on average since the latest earnings results.

Weakest Q1: 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 $1.17 billion, flat year on year. This print was in line with analysts’ expectations, but overall, it was a disappointing quarter for the company with full-year EPS guidance missing analysts’ expectations and a significant miss of analysts’ adjusted operating income estimates.

"Our fiscal 2026 performance reflects the ongoing intentional steps we're taking to reset the business and restore the discipline required to operate as a best-in-class brand," said Kevin Plank, President and CEO of Under Armour.

Interestingly, the stock is up 4.4% since reporting and currently trades at $6.33.

Read our full report on Under Armour here, it’s free.

Best Q1: Movado (NYSE: MOV)

With its watches displayed in 20 museums around the world, Movado (NYSE: MOV) is a watchmaking company with a portfolio of watch brands and accessories.

Movado reported revenues of $142.4 million, up 8.1% year on year, outperforming analysts’ expectations by 5.4%. The business had a stunning quarter with a beat of analysts’ EPS and EBITDA estimates.

The market seems happy with the results as the stock is up 32.2% since reporting. It currently trades at $39.43.

Is now the time to buy Movado? Access our full analysis of the earnings results 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 $613.3 million, up 45% year on year, falling short of analysts’ expectations by 21.3%. It was a slower quarter as it posted a significant miss of analysts’ EPS and adjusted operating income estimates.

Kontoor Brands delivered the fastest revenue growth but had the weakest performance against analyst estimates in the group. Interestingly, the stock is up 11.5% since the results and currently trades at $83.53.

Read our full analysis of Kontoor Brands’s results here.

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 $159.9 million, up 28% year on year. This number surpassed analysts’ expectations by 4.7%. Overall, it was a stunning quarter as it also put up a beat of analysts’ EPS and EBITDA estimates.

The stock is down 24.7% since reporting and currently trades at $11.58.

Read our full, actionable report on Figs here, it’s free.

Carter's (NYSE: CRI)

Rumored to sell more than 10 products for every child born in the United States, Carter's (NYSE: CRI) is an American designer and marketer of children's apparel.

Carter's reported revenues of $681.1 million, up 8.1% year on year. This print beat analysts’ expectations by 3.2%. It was a stunning quarter as it also logged EPS guidance for next quarter exceeding analysts’ expectations and a beat of analysts’ EPS estimates.

The stock is up 27.9% since reporting and currently trades at $42.64.

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

Market Update

Late in 2025 into early 2026, there was hand-wringing around artificial intelligence. For software companies, the fear was that AI would erode pricing power and compress margins as new tools made it easier to replicate what once required expensive enterprise platforms. Crypto investors had their own version of the same anxiety: if AI agents could trade, allocate capital, and manage wallets autonomously, what exactly was the long-term value of today’s crypto infrastructure?

These concerns triggered a noticeable rotation away from these sectors and into safer havens. But markets rarely dwell on one narrative for long. Spring 2026 came, and the focus shifted abruptly from technological disruption to geopolitical risk. The US’ conflict with Iran became the dominant driver of market psychology, and when geopolitics takes center stage, the script changes quickly. Investors stop debating growth rates and start worrying about oil supply, inflation, and global stability.

Want to invest in winners with rock-solid fundamentals? Check out our 9 Best Market-Beating Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.