Earnings results often indicate what direction a company will take in the months ahead. With Q1 behind us, let’s have a look at Hanesbrands (NYSE: HBI) 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 1.7% while next quarter’s revenue guidance was 0.5% below.
Thankfully, share prices of the companies have been resilient as they are up 6.2% on average since the latest earnings results.
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 $760.1 million, up 2.1% year on year. This print was in line with analysts’ expectations, and overall, it was a strong quarter for the company with a solid beat of analysts’ constant currency revenue and EPS estimates.
“We delivered another strong quarter, including revenue, operating profit and earnings per share that exceeded our expectations as we continue to see the benefits of our growth strategy and prior transformation initiatives,” said Steve Bratspies, CEO.
Hanesbrands delivered the weakest full-year guidance update of the whole group. Unsurprisingly, the stock is down 7.8% since reporting and currently trades at $4.50.
Is now the time to buy Hanesbrands? Access our full analysis of the earnings results here, it’s free.
Best Q1: Levi's (NYSE: LEVI)
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 $1.45 billion, up 6.4% year on year, outperforming analysts’ expectations by 5.8%. The business had an exceptional quarter with an impressive beat of analysts’ constant currency revenue estimates and a solid beat of analysts’ EPS estimates.
Levi's delivered the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 5.1% since reporting. It currently trades at $20.75.
Is now the time to buy Levi's? Access our full analysis of the earnings results here, it’s free.
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, falling short of analysts’ expectations by 7.3%. It was a disappointing quarter as it posted a significant miss of analysts’ EPS estimates.
Movado delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 7% since the results and currently trades at $16.23.
Read our full analysis of Movado’s results here.
ThredUp (NASDAQ: TDUP)
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. This result surpassed analysts’ expectations by 4.4%. It was an exceptional quarter as it also produced an impressive beat of analysts’ EBITDA estimates and an impressive beat of analysts’ adjusted operating income estimates.
ThredUp delivered the fastest revenue growth among its peers. The stock is up 89.6% since reporting and currently trades at $8.40.
Read our full, actionable report on ThredUp here, it’s free.
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 $124.9 million, up 4.7% year on year. This number beat analysts’ expectations by 4.8%. Overall, 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.
The stock is up 22.8% since reporting and currently trades at $6.17.
Read our full, actionable report on Figs here, it’s free.
Market Update
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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