Earnings results often indicate what direction a company will take in the months ahead. With Q1 behind us, let’s have a look at Under Armour NYSE:UAA and its peers.
The Consumer Discretionary sector, by definition, is made up of companies selling non-essential goods and services. When economic conditions deteriorate or tastes shift, consumers can easily cut back or eliminate these purchases. For long-term investors with five-year holding periods, this creates a structural challenge: the sector is inherently hit-driven, with low switching costs and fickle customers. As a result, only a handful of companies can reliably grow demand and compound earnings over long periods, which is why our bar is high and High Quality ratings are rare.Apparel and accessories companies design, brand, and distribute clothing, handbags, jewelry, and related lifestyle products, often spanning multiple price tiers. Tailwinds include premiumization trends (consumers trading up for perceived quality), international expansion into emerging markets, and growing digital commerce penetration. However, these businesses face headwinds from highly cyclical demand, intense promotional environments, and counterfeit competition undermining brand equity. Tariff volatility and sourcing concentration in a handful of countries add risk. Additionally, rapidly changing fashion cycles and the rise of ultra-fast-fashion digital competitors compress product life cycles and make demand forecasting exceptionally difficult.
The 15 consumer discretionary - apparel and accessories stocks we track reported a strong Q1. As a group, revenues beat analysts’ consensus estimates by 1.6% while next quarter’s revenue guidance was in line.
Luckily, consumer discretionary - apparel and accessories stocks have performed well with share prices up 10.5% on average since the latest earnings results.
Weakest Q1: 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 $1.17 billion, flat year on year. This print was in line with analysts’ expectations, but overall, it was a disappointing quarter for the company with full-year EPS guidance missing analysts’ expectations and a significant miss of analysts’ adjusted operating income estimates.
"Our fiscal 2026 performance reflects the ongoing intentional steps we're taking to reset the business and restore the discipline required to operate as a best-in-class brand," said Kevin Plank, President and CEO of Under Armour.
Interestingly, the stock is up 4.4% since reporting and currently trades at $6.33.
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Best Q1: Movado NYSE:MOV
With its watches displayed in 20 museums around the world, Movado NYSE:MOV is a watchmaking company with a portfolio of watch brands and accessories.
Movado reported revenues of $142.4 million, up 8.1% year on year, outperforming analysts’ expectations by 5.4%. 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 32.2% since reporting. It currently trades at $39.43.
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 $613.3 million, up 45% year on year, falling short of analysts’ expectations by 21.3%. It was a slower quarter as it posted a significant miss of analysts’ EPS and adjusted operating income estimates.
Kontoor Brands delivered the fastest revenue growth but had the weakest performance against analyst estimates in the group. Interestingly, the stock is up 11.5% since the results and currently trades at $83.53.
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 $159.9 million, up 28% year on year. This number surpassed analysts’ expectations by 4.7%. Overall, it was a stunning quarter as it also put up a beat of analysts’ EPS and EBITDA estimates.
The stock is down 24.7% since reporting and currently trades at $11.58.
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 $681.1 million, up 8.1% year on year. This print beat analysts’ expectations by 3.2%. It was a stunning quarter as it also logged EPS guidance for next quarter exceeding analysts’ expectations and a beat of analysts’ EPS estimates.
The stock is up 27.9% since reporting and currently trades at $42.64.
Read our full, actionable report on Carter's here, it’s free.