As the Q2 earnings season wraps, let’s dig into this quarter’s best and worst performers in the apparel and accessories industry, including Columbia Sportswear (NASDAQ:COLM) 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 strong Q2. As a group, revenues beat analysts’ consensus estimates by 2.9% while next quarter’s revenue guidance was 13% below.
In light of this news, share prices of the companies have held steady as they are up 3.6% on average since the latest earnings results.
Columbia Sportswear (NASDAQ:COLM)
Originally founded as a hat store in 1938, Columbia Sportswear (NASDAQ:COLM) is a manufacturer of outerwear, sportswear, and footwear designed for outdoor enthusiasts.
Columbia Sportswear reported revenues of $605.2 million, up 6.1% year on year. This print exceeded analysts’ expectations by 2.8%. Despite the top-line beat, it was still a mixed quarter for the company with an impressive beat of analysts’ constant currency revenue estimates but EPS guidance for next quarter missing analysts’ expectations significantly.
Chairman, President and Chief Executive Officer Tim Boyle commented, “Second quarter and first half financial results reflect sustained momentum in our international markets. While business trends in our U.S. business remain soft, we continue to take steps to re-energize the Columbia brand through our ACCELERATE growth strategy. In the coming days, we will launch one of the most impactful components of this strategy, our new highly differentiated Columbia brand voice and marketing campaign.
Unsurprisingly, the stock is down 8.9% since reporting and currently trades at $51.50.
Is now the time to buy Columbia Sportswear? Access our full analysis of the earnings results here, it’s free for active Edge members.
Best Q2: 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 $152.6 million, up 5.8% year on year, outperforming analysts’ expectations by 5.5%. 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 10.8% since reporting. It currently trades at $7.27.
Is now the time to buy Figs? Access our full analysis of the earnings results here, it’s free for active Edge members.
Weakest Q2: 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 $585.3 million, up 3.7% year on year, exceeding analysts’ expectations by 3.4%. Still, it was a softer quarter as it posted a significant miss of analysts’ adjusted operating income estimates.
As expected, the stock is down 4.7% since the results and currently trades at $31.18.
Read our full analysis of Carter’s results here.
Levi's (NYSE:LEVI)
Credited for inventing the first pair of blue jeans in 1873, Levi's (NYSE:LEVI) is an apparel company renowned for its iconic denim products and classic American style.
Levi's reported revenues of $1.54 billion, up 7% year on year. This result beat analysts’ expectations by 2.9%. It was a strong quarter as it also put up an impressive beat of analysts’ constant currency revenue estimates and a beat of analysts’ EPS estimates.
The stock is down 12.4% since reporting and currently trades at $21.50.
Read our full, actionable report on Levi's here, it’s free for active Edge members.
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 $613.3 million, down 4.9% year on year. This print surpassed analysts’ expectations by 7.4%. Zooming out, it was a slower quarter as it produced full-year revenue guidance missing analysts’ expectations.
G-III pulled off the biggest analyst estimates beat but had the slowest revenue growth among its peers. The stock is down 2.1% since reporting and currently trades at $26.53.
Read our full, actionable report on G-III here, it’s free for active Edge members.
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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