Unpacking Q4 Earnings: Ralph Lauren (NYSE:RL) In The Context Of Other Apparel and Accessories Stocks
As the Q4 earnings season wraps, let’s dig into this quarter’s best and worst performers in the apparel and accessories industry, including Ralph Lauren (NYSE:RL) 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 16 apparel and accessories stocks we track reported a strong Q4. As a group, revenues beat analysts’ consensus estimates by 2.5% while next quarter’s revenue guidance was in line.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 17.7% since the latest earnings results.
Ralph Lauren (NYSE:RL)
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 $2.14 billion, up 10.8% year on year. This print exceeded analysts’ expectations by 6.5%. Overall, it was a very strong quarter for the company with a solid beat of analysts’ constant currency revenue and adjusted operating income estimates.
"Our teams around the world executed very well across geographies, channels, and categories this holiday to deliver on our long-term, Next Great Chapter: Accelerate strategy," said Patrice Louvet, President and Chief Executive Officer.
Ralph Lauren Total Revenue
Ralph Lauren achieved the fastest revenue growth of the whole group. Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 19.3% since reporting and currently trades at $200.91.
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 $2.83 billion, up 1.9% year on year, outperforming analysts’ expectations by 1.2%. The business had a stunning quarter with a solid beat of analysts’ constant currency revenue and EPS estimates.
VF Corp Total Revenue
The stock is down 56.9% since reporting. It currently trades at $11.46.
Flexing the iconic upside-down triangle logo with a question mark, Guess (NYSE:GES) is a global fashion brand known for its trendy clothing, accessories, and denim wear.
Guess reported revenues of $932.3 million, up 4.6% year on year, exceeding analysts’ expectations by 2.9%. Still, it was a slower quarter as it posted full-year EPS guidance missing analysts’ expectations.
As expected, the stock is down 1% since the results and currently trades at $9.98.
The parent company of Tommy Bahama, Oxford Industries (NYSE:OXM) is a lifestyle fashion conglomerate with brands that embody outdoor happiness.
Oxford Industries reported revenues of $390.5 million, down 3.4% year on year. This result surpassed analysts’ expectations by 1.7%. However, it was a slower quarter as it produced full-year EPS guidance missing analysts’ expectations.
The stock is down 14.1% since reporting and currently trades at $53.85.
Originally founded as Coach, Tapestry (NYSE:TPR) is an American fashion conglomerate with a portfolio of luxury brands offering high-quality accessories and fashion products.
Tapestry reported revenues of $2.20 billion, up 5.3% year on year. This number topped analysts’ expectations by 4.2%. It was a very strong quarter as it also logged an impressive beat of analysts’ constant currency revenue estimates and full-year EPS guidance exceeding analysts’ expectations.
The stock is down 12.7% since reporting and currently trades at $64.03.
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.
Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
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