Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at American Eagle (NYSE: AEO) and the best and worst performers in the apparel retailer industry.

Apparel sales are not driven so much by personal needs but by seasons, trends, and innovation, and over the last few decades, the category has shifted meaningfully online. Retailers that once only had brick-and-mortar stores are responding with omnichannel presences. The online shopping experience continues to improve and retail foot traffic in places like shopping malls continues to stall, so the evolution of clothing sellers marches on.

The 9 apparel retailer stocks we track reported a strong Q4. As a group, revenues beat analysts’ consensus estimates by 1.4% while next quarter’s revenue guidance was in line.

Luckily, apparel retailer stocks have performed well with share prices up 14.3% on average since the latest earnings results.

American Eagle (NYSE: AEO)

With a heavy focus on denim, American Eagle Outfitters (NYSE: AEO) is a specialty retailer offering an assortment of apparel and accessories to young adults.

American Eagle reported revenues of $1.76 billion, up 9.7% year on year. This print exceeded analysts’ expectations by 1.2%. Overall, it was a strong quarter for the company with a beat of analysts’ EPS and EBITDA estimates.

Jay Schottenstein, Executive Chairman of the Board and Chief Executive Officer, AEO Inc., commented, “I am extremely pleased with the strong execution in the back half of the year, which reignited growth across our brands and channels. Building on the improved trends beginning last summer, we achieved a record fourth quarter and holiday period, with double digit growth at Aerie and OFFLINE and solid, positive performance at American Eagle. Compelling new product collections, supported by fresh marketing campaigns, led to higher demand trends in the quarter. I want to thank our associates for their resilience and outstanding execution to deliver a strong finish to 2025.”

The stock is down 25% since reporting and currently trades at $16.84.

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

Best Q4: Tilly's (NYSE: TLYS)

With an emphasis on skate and surf culture, Tilly’s (NYSE: TLYS) is a specialty retailer that sells clothing, footwear, and accessories geared towards fashion-forward teens and young adults.

Tilly's reported revenues of $155.1 million, up 5.3% year on year, outperforming analysts’ expectations by 4.3%. The business had an incredible quarter with EPS guidance for next quarter exceeding analysts’ expectations and a beat of analysts’ EPS estimates.

Tilly's scored the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 156% since reporting. It currently trades at $4.18.

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

Slowest Q4: Lululemon (NASDAQ: LULU)

Originally serving yogis and hockey players, Lululemon (NASDAQ: LULU) is a designer, distributor, and retailer of athletic apparel for men and women.

Lululemon reported revenues of $3.64 billion, flat year on year, exceeding analysts’ expectations by 1.8%. Still, it was a slower quarter as it posted EPS guidance for next quarter missing analysts’ expectations significantly and full-year EPS guidance missing analysts’ expectations.

As expected, the stock is down 2.1% since the results and currently trades at $155.96.

Read our full analysis of Lululemon’s results here.

Victoria's Secret (NYSE: VSCO)

Spun off from L Brands in 2020, Victoria’s Secret (NYSE: VSCO) is an intimate clothing and beauty retailer that sells its own brands of lingerie, undergarments, and personal fragrances.

Victoria's Secret reported revenues of $2.27 billion, up 7.8% year on year. This print topped analysts’ expectations by 2%. It was a very strong quarter as it also logged revenue guidance for next quarter exceeding analysts’ expectations and an impressive beat of analysts’ EBITDA estimates.

Victoria's Secret had the weakest full-year guidance update among its peers. The stock is down 23.3% since reporting and currently trades at $46.00.

Read our full, actionable report on Victoria's Secret here, it’s free.

Urban Outfitters (NASDAQ: URBN)

Founded as a purveyor of vintage items, Urban Outfitters (NASDAQ: URBN) now largely sells new apparel and accessories to teens and young adults seeking on-trend fashion.

Urban Outfitters reported revenues of $1.80 billion, up 10.1% year on year. This number beat analysts’ expectations by 0.6%. Overall, it was a very strong quarter as it also put up a solid beat of analysts’ EBITDA estimates and a beat of analysts’ EPS estimates.

Urban Outfitters scored the fastest revenue growth among its peers. The stock is down 1.4% since reporting and currently trades at $64.55.

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

Market Update

Late in 2025 into early 2026, there was hand wringing around artificial intelligence. For software companies, the fear was that AI would erode pricing power and compress margins as new tools made it easier to replicate what once required expensive enterprise platforms. Crypto investors had their own version of the same anxiety: if AI agents could trade, allocate capital, and manage wallets autonomously, what exactly was the long-term value of today’s crypto infrastructure?

These concerns triggered a noticeable rotation away from these sectors and into safer havens. But markets rarely dwell on one narrative for long. Spring 2026 came, and the focus shifted abruptly from technological disruption to geopolitical risk. The US’ conflict with Iran became the dominant driver of market psychology, and when geopolitics takes center stage, the script changes quickly. Investors stop debating growth rates and start worrying about oil supply, inflation, and global stability.

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.