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Reflecting On Apparel Retailer Stocks’ Q3 Earnings: Tilly's (NYSE:TLYS)

TLYS Cover Image

Looking back on apparel retailer stocks’ Q3 earnings, we examine this quarter’s best and worst performers, including Tilly's (NYSE: TLYS) and its peers.

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 very strong Q3. As a group, revenues beat analysts’ consensus estimates by 2% while next quarter’s revenue guidance was in line.

Thankfully, share prices of the companies have been resilient as they are up 7.6% on average since the latest earnings results.

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 $139.6 million, down 2.7% year on year. This print exceeded analysts’ expectations by 2%. Overall, it was an exceptional quarter for the company with EPS guidance for next quarter exceeding analysts’ expectations and a beat of analysts’ EPS estimates.

Tilly's Total Revenue

Unsurprisingly, the stock is down 17.8% since reporting and currently trades at $1.48.

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

Best Q3: Zumiez (NASDAQ: ZUMZ)

With store associates called “Zumiez Stash Members”, Zumiez (NASDAQ: ZUMZ) is a specialty retailer of street and skate apparel, footwear, and accessories.

Zumiez reported revenues of $239.1 million, up 7.5% year on year, outperforming analysts’ expectations by 2%. The business had an exceptional quarter with a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

Zumiez Total Revenue

Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 10.1% since reporting. It currently trades at $24.51.

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

Weakest Q3: Torrid (NYSE: CURV)

Promoting a message of body positivity and inclusiveness, Torrid Holdings (NYSE: CURV) is a plus-size women’s apparel and accessories retailer.

Torrid reported revenues of $235.2 million, down 10.8% year on year, falling short of analysts’ expectations by 2%. It was a disappointing quarter as it posted full-year EBITDA guidance missing analysts’ expectations significantly and a significant miss of analysts’ EBITDA estimates.

Torrid delivered the highest full-year guidance raise but had the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 11.8% since the results and currently trades at $1.16.

Read our full analysis of Torrid’s results here.

Abercrombie and Fitch (NYSE: ANF)

Founded as an outdoor and sporting brand, Abercrombie & Fitch (NYSE: ANF) evolved to become a specialty retailer that sells its own brand of fashionable clothing to young adults.

Abercrombie and Fitch reported revenues of $1.29 billion, up 6.8% year on year. This result topped analysts’ expectations by 0.9%. Taking a step back, it was a satisfactory quarter as it also produced full-year EPS guidance beating analysts’ expectations but EPS guidance for next quarter slightly missing analysts’ expectations.

The stock is up 48% since reporting and currently trades at $97.12.

Read our full, actionable report on Abercrombie and Fitch 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 $1.53 billion, up 12.3% year on year. This number surpassed analysts’ expectations by 2.6%. It was a very strong quarter as it also recorded an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ revenue estimates.

Urban Outfitters delivered the fastest revenue growth among its peers. The stock is up 3.5% since reporting and currently trades at $70.70.

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


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