As the Q1 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the apparel and accessories industry, including Movado (NYSE:MOV) 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 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. On average, they are relatively unchanged since the latest earnings results.
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. This print fell short of analysts’ expectations by 7.3%. Overall, it was a disappointing quarter for the company with a significant miss of analysts’ EPS estimates.
Efraim Grinberg, Chairman and Chief Executive Officer, stated, “In the first quarter, we navigated a challenging retail environment with discipline and focus, continuing to invest in our iconic brands while driving operational efficiency. We were pleased to execute against our cost savings initiatives while delivering strong product innovation. Overall, our licensed brand portfolio performed very well, reflecting a renewed vibrancy in the fashion watch category. Our Movado brand received a strong response to our new product introductions during the Mother’s Day holiday.”
Movado Total Revenue
Movado delivered the weakest performance against analyst estimates of the whole group. The stock is down 11.9% since reporting and currently trades at $15.38.
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 an impressive beat of analysts’ EBITDA estimates.
ThredUp Total Revenue
ThredUp pulled off the fastest revenue growth among its peers. The market seems happy with the results as the stock is up 69.3% since reporting. It currently trades at $7.50.
Founded in 1881 by a husband and wife duo, PVH (NYSE:PVH) is a global fashion conglomerate with iconic brands like Calvin Klein and Tommy Hilfiger.
PVH reported revenues of $1.98 billion, up 1.6% year on year, exceeding analysts’ expectations by 2.6%. Still, it was a slower quarter as it posted full-year EPS guidance missing analysts’ expectations and a significant miss of analysts’ EBITDA estimates.
As expected, the stock is down 19.8% since the results and currently trades at $64.78.
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 $124.9 million, up 4.7% year on year. This number surpassed analysts’ expectations by 4.8%. It was an exceptional quarter as it also logged a solid beat of analysts’ adjusted operating income estimates and an impressive beat of analysts’ EBITDA estimates.
Figs scored the biggest analyst estimates beat among its peers. The stock is up 5.7% since reporting and currently trades at $5.31.
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 print topped analysts’ expectations by 0.9%. Overall, 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 16.3% since reporting and currently trades at $32.
As a result of the Fed’s rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed’s 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump’s victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025.
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