As the Q3 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 G-III (NASDAQ:GIII) 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.
Thankfully, share prices of the companies have been resilient as they are up 9.9% on average since the latest earnings results.
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 $1.09 billion, up 1.8% year on year. This print fell short of analysts’ expectations by 1.1%. Overall, it was a mixed quarter for the company with a solid beat of analysts’ adjusted operating income estimates but full-year revenue guidance missing analysts’ expectations.
Morris Goldfarb, G-III’s Chairman and Chief Executive Officer, said, “I am very pleased with our strong third quarter results, with earnings per diluted share exceeding our expectations, driven by over 30% organic growth of our key owned brands DKNY, Karl Lagerfeld, Donna Karan and Vilebrequin. The power of our transforming business model is delivering margin expansion and bottom-line outperformance. Our teams continue to demonstrate strong execution despite a challenging consumer environment, unseasonable weather and supply chain disruptions. As we have progressed into the fourth quarter, we have experienced strengthening sell-throughs across our brands, and our inventories are well-positioned to support demand for the remaining holiday and early Spring season.”
G-III delivered the weakest full-year guidance update of the whole group. The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $31.54.
Is now the time to buy G-III? Access our full analysis of the earnings results here, it’s free.
Best Q3: Stitch Fix (NASDAQ:SFIX)
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, outperforming analysts’ expectations by 3.9%. The business had an exceptional quarter with EBITDA guidance for next quarter exceeding analysts’ expectations and an impressive beat of analysts’ EPS estimates.
Stitch Fix scored the biggest analyst estimates beat and highest full-year guidance raise among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 8% since reporting. It currently trades at $4.23.
Is now the time to buy Stitch Fix? Access our full analysis of the earnings results here, it’s free.
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, falling short of analysts’ expectations by 2.1%. It was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income estimates.
As expected, the stock is down 12.6% since the results and currently trades at $5.83.
Read our full analysis of Figs’s results here.
Under Armour (NYSE:UAA)
Founded in 1996 by a former University of Maryland football player, Under Armour (NYSE:UAA) is an apparel brand specializing in sportswear designed to improve athletic performance.
Under Armour reported revenues of $1.40 billion, down 10.7% year on year. This number beat analysts’ expectations by 1.1%. Overall, it was a strong quarter as it also recorded a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
The stock is down 7.3% since reporting and currently trades at $8.12.
Read our full, actionable report on Under Armour here, it’s free.
Hanesbrands (NYSE:HBI)
A classic American staple founded in 1901, Hanesbrands (NYSE: HBI) is a clothing company known for its array of basic apparel including innerwear and activewear.
Hanesbrands reported revenues of $937.1 million, down 2.5% year on year. This result was in line with analysts’ expectations. It was a very strong quarter as it also produced EPS guidance for next quarter exceeding analysts’ expectations.
The stock is up 13.1% since reporting and currently trades at $8.03.
Read our full, actionable report on Hanesbrands here, it’s free.
Market Update
Thanks to the Fed's series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market has thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% each in November and December), and a notable surge followed Donald Trump's presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by the pace and magnitude of future rate cuts as well as potential changes in trade policy and corporate taxes once the Trump administration takes over. The path forward is marked by uncertainty.
Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
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