Spotting Winners: PVH (NYSE:PVH) And Apparel, Accessories and Luxury Goods Stocks In Q1
Earnings results often indicate what direction a company will take in the months ahead. With Q1 now behind us, let’s have a look at PVH (NYSE:PVH) and its peers.
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 an ok Q1; on average, revenues were in line with analyst consensus estimates. while next quarter's revenue guidance was 2.2% below consensus. Inflation progressed towards the Fed's 2% goal at the end of 2023, leading to strong stock market performance. The start of 2024 has been a bumpier ride, as the market switches between optimism and pessimism around rate cuts due to mixed inflation data, but apparel, accessories and luxury goods stocks have shown resilience, with share prices up 5.2% on average since the previous earnings results.
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 $1.95 billion, down 9.5% year on year, in line with analysts' expectations. Overall, it was a mixed quarter for the company with a decent beat of analysts' earnings estimates but a miss of analysts' Calvin Klein revenue estimates.
Stefan Larsson, Chief Executive Officer, commented, “We delivered on our revenue expectations, led by growth in our direct-to-consumer business, and beat our earnings guidance for the first quarter. We further strengthened our brand positioning and pricing power in the marketplace, and as planned we generated growth for Calvin Klein and Tommy Hilfiger combined in both North America and Asia Pacific in constant currency, while successfully driving strategic quality of sales initiatives in Europe.”
The stock is down 14.9% since reporting and currently trades at $101.47.
Read our full report on PVH here, it's free.
Best Q1: 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 $322.7 million, down 15.8% year on year, outperforming analysts' expectations by 5.4%. It was a very strong quarter for the company with an impressive beat of analysts' earnings estimates and full-year revenue guidance exceeding analysts' expectations.
Stitch Fix pulled off the biggest analyst estimates beat and highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 67.7% since reporting. It currently trades at $4.46.
Is now the time to buy Stitch Fix? Access our full analysis of the earnings results here, it's free.
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 $79.59 million, up 4.8% year on year, in line with analysts' expectations. It was a weak quarter for the company with a miss of analysts' earnings estimates and revenue guidance for next quarter missing analysts' expectations.
ThredUp posted the weakest full-year guidance update in the group. Interestingly, the stock is up 9.2% since the results and currently trades at $2.04.
Read our full analysis of ThredUp's results here.
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 $1.44 billion, up 7.8% year on year, in line with analysts' expectations. Taking a step back, it was a decent quarter for the company with an impressive beat of analysts' earnings estimates but underwhelming earnings guidance for the full year.
Levi's scored the fastest revenue growth among its peers. The stock is down 19.2% since reporting and currently trades at $18.74.
Read our full, actionable report on Levi's here, it's free.
Tapestry (NYSE:TPR)
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 $1.48 billion, down 1.8% year on year, falling short of analysts' expectations by 1.1%. Revenue aside, it was a weaker quarter for the company with full-year revenue guidance missing analysts' expectations and a miss of analysts' earnings estimates.
The stock is up 6.9% since reporting and currently trades at $41.69.
Read our full, actionable report on Tapestry here, it's free.
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