As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q4. Today, we are looking at apparel and accessories stocks, starting with Figs (NYSE:FIGS).
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 25% since the latest earnings results.
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 $151.8 million, up 4.8% year on year. This print exceeded analysts’ expectations by 8.6%. Despite the top-line beat, it was still a mixed quarter for the company with a solid beat of analysts’ EBITDA estimates.
“We finished the year with solid momentum, as our fourth quarter results exceeded our expectations and were powered by an impactful flow of product newness driving repeat frequency,” said Trina Spear, Chief Executive Officer and Co-Founder.
Figs pulled off the biggest analyst estimates beat of the whole group. Still, the market seems discontent with the results. The stock is down 62.8% since reporting and currently trades at $3.59.
Is now the time to buy Figs? Access our full analysis of the earnings results here, it’s free.
Best Q4: VF Corp (NYSE:VFC)
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 an impressive beat of analysts’ constant currency revenue and EPS estimates.
The stock is down 62.8% since reporting. It currently trades at $9.89.
Is now the time to buy VF Corp? Access our full analysis of the earnings results here, it’s free.
Slowest Q4: Guess (NYSE:GES)
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 14.5% since the results and currently trades at $8.62.
Read our full analysis of Guess’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 $67.27 million, up 9.5% year on year. This number lagged analysts' expectations by 2.4%. More broadly, it was actually a strong quarter as it recorded a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ adjusted operating income estimates.
ThredUp achieved the highest full-year guidance raise but had the weakest performance against analyst estimates among its peers. The stock is up 33.4% since reporting and currently trades at $2.99.
Read our full, actionable report on ThredUp here, it’s free.
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 $839.5 million, up 9.8% year on year. This result beat analysts’ expectations by 4%. More broadly, it was a mixed quarter as it also logged a solid beat of analysts’ adjusted operating income estimates but a miss of analysts’ Wholesale revenue estimates.
The stock is down 10.3% since reporting and currently trades at $22.73.
Read our full, actionable report on G-III here, it’s free.
Market Update
The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.
Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
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