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 Under Armour (NYSE: UAA) 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 Q2. As a group, revenues beat analysts’ consensus estimates by 2.9% while next quarter’s revenue guidance was 13.1% below.

Thankfully, share prices of the companies have been resilient as they are up 5.6% on average since the latest earnings results.

Under Armour (NYSE: UAA)

Founded in 1996 by a former University of Maryland football player, Under Armour (NYSE: UAA) is an apparel brand specializing in sportswear designed to improve athletic performance.

Under Armour reported revenues of $1.13 billion, down 4.2% year on year. This print was in line with analysts’ expectations, but overall, it was a slower quarter for the company with EPS in line with analysts’ estimates and EPS guidance for next quarter missing analysts’ expectations significantly.

"We are pleased our quarterly results met or exceeded our expectations as we drive a bold transformation – sharpening Under Armour into a brand where sports credibility, innovation and style meet operational discipline," said Under Armour President and CEO Kevin Plank.

Unsurprisingly, the stock is down 28.1% since reporting and currently trades at $4.77.

Read our full report on Under Armour here, it’s free for active Edge members.

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 22.3% since reporting. It currently trades at $8.02.

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

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 4.9% since the results and currently trades at $31.13.

Read our full analysis of Carter’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 $403.1 million, down 4% year on year. This result lagged analysts' expectations by 0.7%. Taking a step back, it was a mixed quarter as it also produced full-year EPS guidance beating analysts’ expectations but EPS guidance for next quarter missing analysts’ expectations significantly.

Oxford Industries had the weakest performance against analyst estimates among its peers. The stock is down 4.7% since reporting and currently trades at $38.54.

Read our full, actionable report on Oxford Industries here, it’s free for active Edge members.

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 $1.54 billion, up 7% year on year. This number beat analysts’ expectations by 2.9%. Overall, it was a strong quarter as it also recorded an impressive beat of analysts’ constant currency revenue estimates and a beat of analysts’ EPS estimates.

The stock is down 12.8% since reporting and currently trades at $21.40.

Read our full, actionable report on Levi's here, it’s free for active Edge members.

Market Update

Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.

Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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