Q3 Earnings Roundup: Figs (NYSE:FIGS) And The Rest Of The Apparel and Accessories Segment
As the Q3 earnings season wraps, let’s dig into this quarter’s best and worst performers in the apparel and accessories industry, including Figs (NYSE:FIGS) 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 mixed Q3. As a group, revenues along with next quarter’s revenue guidance were in line with analysts’ consensus estimates.
Luckily, apparel and accessories stocks have performed well with share prices up 13.3% on average since the latest earnings results.
Weakest Q3: 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 $140.2 million, down 1.5% year on year. This print fell short of analysts’ expectations by 2.1%. Overall, it was a disappointing quarter for the company with a significant miss of analysts’ adjusted operating income and EBITDA estimates.
“The third quarter included several key investments to support and scale FIGS, highlighted by our incredible Olympics campaign with the Team USA Medical Team and the completed transition of our fulfillment center to a state-of-the-art, highly-automated facility,” said Trina Spear, Chief Executive Officer and Co-Founder.
Figs Total Revenue
Unsurprisingly, the stock is down 12.1% since reporting and currently trades at $5.86.
Owner of The North Face, Vans, and Supreme, VF Corp (NYSE:VFC) is a clothing conglomerate specializing in branded lifestyle apparel, footwear, and accessories.
VF Corp reported revenues of $2.76 billion, down 5.6% year on year, outperforming analysts’ expectations by 1.6%. The business had a very strong quarter with a solid beat of analysts’ EPS and EBITDA estimates.
VF Corp Total Revenue
The market seems happy with the results as the stock is up 21.8% since reporting. It currently trades at $20.74.
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, falling short of analysts’ expectations by 2.4%. It was a mixed quarter as it posted an impressive beat of analysts’ EBITDA estimates but a miss of analysts’ constant currency revenue estimates.
As expected, the stock is down 17.4% since the results and currently trades at $17.40.
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 $758.5 million, down 4.2% year on year. This print was in line with analysts’ expectations. Zooming out, it was a mixed quarter as it also recorded a solid beat of analysts’ same-store sales estimates but EPS guidance for next quarter missing analysts’ expectations significantly.
The stock is down 15.3% since reporting and currently trades at $55.62.
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 $318.8 million, down 12.6% year on year. This number surpassed analysts’ expectations by 3.9%. Overall, it was an exceptional quarter as it also logged EBITDA guidance for next quarter exceeding analysts’ expectations and an impressive beat of analysts’ EPS estimates.
Stitch Fix pulled off the biggest analyst estimates beat and highest full-year guidance raise, but had the slowest revenue growth among its peers. The stock is down 7.4% since reporting and currently trades at $4.26.
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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