Apparel, Accessories and Luxury Goods Q2 Earnings: PVH (NYSE:PVH) is the Best in the Biz
Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at PVH (NYSE:PVH) and the best and worst performers in the apparel, accessories and luxury goods industry.
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.
Inflation progressed towards the Fed's 2% goal recently, leading the Fed to reduce its policy rate by 50bps (half a percent or 0.5%) in September 2024. This is the first cut in four years. While CPI (inflation) readings have been supportive lately, employment measures have bordered on worrisome. The markets will be debating 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 2.9% on average since the latest earnings results.
Best Q2: PVH (NYSE:PVH)
Founded in 1881 by a husband and wife duo, PVH (NYSE:PVH) is a global fashion conglomerate with iconic brands like Calvin Klein and Tommy Hilfiger.
PVH reported revenues of $2.07 billion, down 6% year on year. This print was in line with analysts’ expectations, and overall, it was a satisfactory quarter for the company with an impressive beat of analysts’ earnings estimates.
Stefan Larsson, Chief Executive Officer, commented, “We delivered on our top- and bottom-line commitments and beat our earnings guidance for the second quarter, led by our disciplined execution of the PVH+ Plan. For both Calvin Klein and Tommy Hilfiger, we drove strong consumer engagement and continued to increase product strength and improve newness in our assortment, leading to more full-priced selling and less end-of-season clearance sales, which fueled significant gross margin expansion.”
Unsurprisingly, the stock is down 9.8% since reporting and currently trades at $94.30.
Is now the time to buy PVH? Access our full analysis of the earnings results here, it’s free.
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 $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 revenue guidance for next quarter missing analysts’ expectations.
Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 30.5% since reporting. It currently trades at $2.60.
Is now the time to buy Stitch Fix? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: ThredUp (NASDAQ:TDUP)
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.
As expected, the stock is down 54.4% since the results and currently trades at $0.79.
Read our full analysis of ThredUp’s results here.
Oxford Industries (NYSE:OXM)
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 $419.9 million, flat year on year. This number came in 4.2% below analysts' expectations. Overall, it was a disappointing quarter as it also produced revenue guidance for next quarter missing analysts’ expectations and underwhelming earnings guidance for the next quarter.
The stock is down 7% since reporting and currently trades at $77.70.
Read our full, actionable report on Oxford Industries here, it’s free.
Kontoor Brands (NYSE:KTB)
Founded in 2019 after separating from VF Corporation, Kontoor Brands (NYSE:KTB) is a clothing company known for its high-quality denim products.
Kontoor Brands reported revenues of $606.9 million, down 1.5% year on year. This number topped analysts’ expectations by 2.3%. Overall, it was a strong quarter as it also put up an impressive beat of analysts’ constant currency revenue estimates and a decent beat of analysts’ earnings estimates.
Kontoor Brands scored the highest full-year guidance raise among its peers. The stock is up 11.3% since reporting and currently trades at $78.21.
Read our full, actionable report on Kontoor Brands here, it’s free.
Join Paid Stock Investor Research
Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here.