Q2 Apparel, Accessories and Luxury Goods Earnings: Movado (NYSE:MOV) Impresses
As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q2. Today, we are looking at apparel, accessories and luxury goods stocks, starting with Movado (NYSE:MOV).
Within apparel and accessories, not only do styles change more frequently today than decades past as fads travel through social media and the internet but consumers are also shifting the way they buy their goods, favoring omnichannel and e-commerce experiences. Some apparel, accessories, and luxury goods companies have made concerted efforts to adapt while those who are slower to move may fall behind.
The 17 apparel, accessories and luxury goods stocks we track reported a slower Q2. As a group, revenues missed analysts’ consensus estimates by 1.4% while next quarter’s revenue guidance was 12.6% below.
The Fed cut its policy rate by 50bps (half a percent) in September 2024, the first in roughly four years. This marks the end of its most pointed inflation-busting campaign since the 1980s. While CPI (inflation) readings have been supportive lately, employment measures have bordered on worrisome. The markets will be assessing whether this rate cut's timing (and more potential ones in 2024 and 2025) is ideal for supporting the economy or a bit too late for a macro that has already cooled too much.
In light of this news, apparel, accessories and luxury goods stocks have held steady with share prices up 3.6% on average since the latest earnings results.
Best Q2: 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 $159.3 million, flat year on year. This print exceeded analysts’ expectations by 5.9%. Despite the top-line beat, it was still a softer quarter for the company with full-year revenue guidance missing analysts’ expectations and a miss of analysts’ earnings estimates.
Efraim Grinberg, Chairman and Chief Executive Officer, stated, “While increased marketing investment coupled with our initiatives to enhance retail performance drove improvement in our sales trend from the first quarter, second quarter sales and earnings were below our expectations due to the challenging consumer spending environment compounded by increased expenses to support future growth.
Movado Total Revenue
Movado achieved the biggest analyst estimates beat of the whole group. Even though it had a great quarter relative to its peers, the market seems discontent with the results. The stock is down 27.9% since reporting and currently trades at $2.70.
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 $319.6 million, down 12.4% year on year, in line with analysts’ expectations. The business performed better than its peers, but it was unfortunately a softer quarter with a miss of analysts’ operating margin estimates and revenue guidance for next quarter missing analysts’ expectations.
Stitch Fix Total Revenue
Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 27.9% since reporting. It currently trades at $2.70.
Founded to revolutionize thrifting, ThredUp (NASDAQ:TDUP) is a leading online fashion resale marketplace that offers a wide selection of gently-used clothing and accessories.
ThredUp reported revenues of $79.76 million, down 3.5% year on year, falling short of analysts’ expectations by 3.3%. It was a disappointing quarter as it posted revenue guidance for next quarter missing analysts’ expectations and a miss of analysts’ earnings estimates.
As expected, the stock is down 52.7% since the results and currently trades at $0.82.
Originally founded as a necktie company, Ralph Lauren (NYSE:RL) is an iconic American fashion brand known for its classic and sophisticated style.
Ralph Lauren reported revenues of $1.51 billion, up 1% year on year. This result topped analysts’ expectations by 1.5%. Overall, it was a strong quarter as it also recorded a solid beat of analysts’ constant currency revenue estimates and a decent beat of analysts’ earnings estimates.
The stock is up 17.9% since reporting and currently trades at $194.57.
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 $1.52 billion, flat year on year. This number missed analysts’ expectations by 2.4%. It was a slower quarter as it also produced a miss of analysts’ constant currency revenue estimates and underwhelming earnings guidance for the full year.
The stock is down 8.5% since reporting and currently trades at $19.26.
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