Earnings results often indicate what direction a company will take in the months ahead. With Q2 behind us, let’s have a look at Levi's (NYSE: LEVI) 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 15.4% below.

Luckily, apparel and accessories stocks have performed well with share prices up 10.2% on average since the latest earnings results.

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 $1.45 billion, up 6.4% year on year. This print exceeded analysts’ expectations by 5.8%. Overall, it was an exceptional quarter for the company with a solid beat of analysts’ constant currency revenue and EPS estimates.

Interestingly, the stock is up 12% since reporting and currently trades at $22.10.

Is now the time to buy Levi's? 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 estimates and an impressive beat of analysts’ EBITDA estimates.

The market seems happy with the results as the stock is up 11.1% since reporting. It currently trades at $7.29.

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 9% since the results and currently trades at $29.77.

Read our full analysis of Carter’s results here.

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 number met analysts’ expectations. Taking a step back, it was a slower quarter as it produced EPS in line with analysts’ estimates and EPS guidance for next quarter missing analysts’ expectations significantly.

The stock is down 24.2% since reporting and currently trades at $5.03.

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

Kontoor Brands (NYSE: KTB)

Founded in 2019 after separating from VF Corporation, Kontoor Brands (NYSE: KTB) is a clothing company known for its high-quality denim products.

Kontoor Brands reported revenues of $658.3 million, up 8.5% year on year. This print beat analysts’ expectations by 3.7%. Overall, it was an exceptional quarter as it also produced a solid beat of analysts’ constant currency revenue estimates and a beat of analysts’ EPS estimates.

The stock is up 47.3% since reporting and currently trades at $83.56.

Read our full, actionable report on Kontoor Brands 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% 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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