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 Carter's (NYSE:CRI) and the best and worst performers in the apparel and accessories industry.
Denim clothing company Levi's (NYSE:LEVI) missed Wall Street’s revenue expectations in Q1 CY2025, with sales falling 2% year on year to $1.53 billion. Its non-GAAP profit of $0.38 per share was 35.2% above analysts’ consensus estimates.
Looking back on apparel and accessories stocks’ Q4 earnings, we examine this quarter’s best and worst performers, including G-III (NASDAQ:GIII) and its peers.
Donald Trump’s sweeping tariffs, announced last week, have added pressure to an already soft business, weighed down by intense competition and weak consumer spending.
Shares of denim clothing company Levi's (NYSE:LEVI)
fell 13.2% in the afternoon session after President Trump announced "reciprocal tariffs" on all US imports, set at a minimum rate of 10%. From clothing brands and electronics makers to the e-commerce sites that move their goods, companies built on global supply chains took the biggest hit.
Stocks with heavy exposure to Asia were especially hard-hit, as the new tariffs threatened the growth and profits of firms with factories in the region. Vietnam, central to many companies' production plans, faced a 46% tariff. Cambodia and Indonesia were also in the crosshairs, with tariff rates of 49% and 32%. These measures could significantly erode the competitiveness of goods produced in those regions. For example, reduced production volumes would negatively affect the sales growth of all companies benefiting from these manufacturing hubs.
Levi's is set to release its Q1 FY25 earnings on April 7, with analysts expecting EPS growth to $0.28. Revenue is projected to decline 1.3% YoY to $1.537 billion. Despite FX headwinds, LEVI remains well-positioned for long-term growth.
Levi's has gotten torched over the last six months - since September 2024, its stock price has dropped 23.3% to $16.01 per share. This may have investors wondering how to approach the situation.
Most consumer discretionary businesses succeed or fail based on the broader economy. Lately, it seems like demand trends have worked in their favor as the industry has returned 8.1% over the past six months,
similar to the S&P 500.
