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Spotting Winners: Under Armour (NYSE:UAA) And Apparel and Accessories Stocks In Q3

UAA Cover Image

The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Under Armour (NYSE:UAA) and the rest of the apparel and accessories stocks fared in Q3.

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 mixed Q3. As a group, revenues along with next quarter’s revenue guidance were in line with analysts’ consensus estimates.

Luckily, apparel and accessories stocks have performed well with share prices up 24.7% 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 $1.40 billion, down 10.7% year on year. This print exceeded analysts’ expectations by 1.1%. Overall, it was a strong quarter for the company with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

Under Armour Total Revenue

Unsurprisingly, the stock is down 2.8% since reporting and currently trades at $8.51.

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

Best Q3: 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 $318.8 million, down 12.6% year on year, outperforming analysts’ expectations by 3.9%. The business had an exceptional quarter with EBITDA guidance for next quarter exceeding analysts’ expectations and an impressive beat of analysts’ EPS estimates.

Stitch Fix Total Revenue

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 13.1% since reporting. It currently trades at $5.20.

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

Weakest Q3: 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 $140.2 million, down 1.5% year on year, falling short of analysts’ expectations by 2.1%. It was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income estimates.

As expected, the stock is down 11.5% since the results and currently trades at $5.90.

Read our full analysis of Figs’s results here.

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 $937.1 million, down 2.5% year on year. This number met analysts’ expectations. Overall, it was a very strong quarter as it also produced EPS guidance for next quarter exceeding analysts’ expectations and full-year EPS guidance exceeding analysts’ expectations.

The stock is up 17.3% since reporting and currently trades at $8.33.

Read our full, actionable report on Hanesbrands here, it’s free.

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 $2.76 billion, down 5.6% year on year. This result topped analysts’ expectations by 1.6%. It was a very strong quarter as it also put up an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.

The stock is up 45.7% since reporting and currently trades at $24.80.

Read our full, actionable report on VF Corp here, it’s free.

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% each in November and December), 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 the pace and magnitude of future rate cuts as well as potential changes in trade policy and corporate taxes once the Trump administration takes over. The path forward is marked by uncertainty.

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

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