Apparel and Accessories Stocks Q2 In Review: Ralph Lauren (NYSE:RL) Vs Peers

As the Q2 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 Ralph Lauren (NYSE:RL) 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 16 apparel and accessories stocks we track reported a strong Q2. As a group, revenues beat analysts’ consensus estimates by 3.1% while next quarter’s revenue guidance was 14.9% below.

Thankfully, share prices of the companies have been resilient as they are up 8.5% on average since the latest earnings results.

Ralph Lauren (NYSE:RL)

Originally founded as a necktie company, Ralph Lauren (NYSE:RL) is an iconic American fashion brand known for its classic and sophisticated style.

Ralph Lauren reported revenues of $1.72 billion, up 13.7% year on year. This print exceeded analysts’ expectations by 3.6%. Overall, it was a strong quarter for the company with an impressive beat of analysts’ constant currency revenue and adjusted operating income estimates.

"We delivered strong first quarter results across geographies, channels and consumer segments," said Patrice Louvet, President and Chief Executive Officer.

Interestingly, the stock is up 4% since reporting and currently trades at $315.

Is now the time to buy Ralph Lauren? Access our full analysis of the earnings results here, it’s free.

Best Q2: 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 $152.6 million, up 5.8% year on year, outperforming analysts’ expectations by 5.5%. The business had a stunning quarter with a beat of analysts’ EPS and EBITDA estimates.

The market seems happy with the results as the stock is up 11.7% since reporting. It currently trades at $7.33.

Is now the time to buy Figs? Access our full analysis of the earnings results here, it’s free.

Weakest Q2: Carter's (NYSE:CRI)

Rumored to sell more than 10 products for every child born in the United States, Carter's (NYSE:CRI) is an American designer and marketer of children's apparel.

Carter's reported revenues of $585.3 million, up 3.7% year on year, exceeding analysts’ expectations by 3.4%. Still, it was a softer quarter as it posted a significant miss of analysts’ adjusted operating income estimates.

As expected, the stock is down 2.9% since the results and currently trades at $31.77.

Read our full analysis of Carter’s results here.

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 $1.72 billion, up 8.3% year on year. This print topped analysts’ expectations by 2.6%. More broadly, it was a mixed quarter as it also produced a solid beat of analysts’ constant currency revenue estimates but a significant miss of analysts’ EPS estimates.

The stock is down 3.2% since reporting and currently trades at $109.88.

Read our full, actionable report on Tapestry 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 $991.3 million, up 1.8% year on year. This result surpassed analysts’ expectations by 1.9%. It was a very strong quarter as it also recorded an impressive beat of analysts’ constant currency revenue estimates and EPS guidance for next quarter exceeding analysts’ expectations.

The stock is up 51.9% since reporting and currently trades at $6.34.

Read our full, actionable report on Hanesbrands 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 Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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