The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Stitch Fix (NASDAQ: SFIX) and the rest of the apparel and accessories stocks fared in Q1.
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 strong Q1. As a group, revenues beat analysts’ consensus estimates by 1.3% while next quarter’s revenue guidance was in line.
In light of this news, share prices of the companies have held steady as they are up 1.6% on average since the latest earnings results.
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 $325 million, flat year on year. This print exceeded analysts’ expectations by 3.3%. Overall, it was a strong quarter for the company with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ adjusted operating income estimates.
“Stitch Fix delivered strong third quarter results, marked by our overall return to year-over-year revenue growth,” said Matt Baer, CEO, Stitch Fix.
The stock is down 22% since reporting and currently trades at $3.75.
Is now the time to buy Stitch Fix? Access our full analysis of the earnings results here, it’s free.
Best Q1: ThredUp (NASDAQ: TDUP)
Founded to revolutionize thrifting, ThredUp (NASDAQ: TDUP) is a leading online fashion resale marketplace offering a wide selection of gently-used clothing and accessories.
ThredUp reported revenues of $71.29 million, up 10.5% year on year, outperforming analysts’ expectations by 4.4%. The business had an exceptional quarter with a solid beat of analysts’ EBITDA estimates.
ThredUp pulled off the fastest revenue growth among its peers. The market seems happy with the results as the stock is up 80.4% since reporting. It currently trades at $7.99.
Is now the time to buy ThredUp? Access our full analysis of the earnings results here, it’s free.
Weakest 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 $131.8 million, down 1.9% year on year, falling short of analysts’ expectations by 7.3%. It was a disappointing quarter as it posted a significant miss of analysts’ EPS estimates.
Movado delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 12.1% since the results and currently trades at $15.34.
Read our full analysis of Movado’s results here.
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 $1.18 billion, down 11.4% year on year. This print surpassed analysts’ expectations by 1.3%. Overall, it was a strong quarter as it also recorded EPS guidance for next quarter exceeding analysts’ expectations and a solid beat of analysts’ EBITDA estimates.
Under Armour had the slowest revenue growth among its peers. The stock is up 9.4% since reporting and currently trades at $6.80.
Read our full, actionable report on Under Armour 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 $629.8 million, down 4.8% year on year. This number topped analysts’ expectations by 0.9%. It was a strong quarter as it also produced a solid beat of analysts’ EPS estimates and a narrow beat of analysts’ same-store sales estimates.
The stock is down 18.5% since reporting and currently trades at $31.15.
Read our full, actionable report on Carter's here, it’s free.
Market Update
In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.
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