Leslie's, Boot Barn, Sally Beauty, Abercrombie and Fitch, and Victoria's Secret Stocks Trade Down, What You Need To Know

Wrapping up Q3 earnings, we look at the numbers and key takeaways for the apparel retailer stocks, including Urban Outfitters 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.

Luckily, apparel retailer stocks have performed well with share prices up 13.4% on average since the latest earnings results.

Urban Outfitters

Founded as a purveyor of vintage items, Urban Outfitters 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 print exceeded analysts’ expectations by 2.6%. Overall, it was a very strong quarter for the company with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ revenue estimates.

“We are pleased to report record revenues, profits, and earnings per share for the quarter,” said Richard A. Hayne, Chief Executive Officer.

Urban Outfitters pulled off the fastest revenue growth of the whole group. Unsurprisingly, the stock is up 2.1% since reporting and currently trades at $69.74.

Best Q3: Zumiez

With store associates called “Zumiez Stash Members”, Zumiez 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 a solid beat of analysts’ EBITDA estimates.

Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 9.4% since reporting. It currently trades at $24.70.

Weakest Q3: Torrid

Promoting a message of body positivity and inclusiveness, Torrid Holdings 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 4.3% since the results and currently trades at $1.22.

Read our full analysis of Torrid’s results here.

Victoria's Secret

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

Victoria's Secret reported revenues of $1.47 billion, up 9.2% year on year. This result surpassed analysts’ expectations by 4.5%. Overall, it was an exceptional quarter as it also put up a beat of analysts’ EPS estimates and an impressive beat of analysts’ gross margin estimates.

Victoria's Secret scored the biggest analyst estimates beat but had the weakest full-year guidance update among its peers. The stock is up 49.5% since reporting and currently trades at $62.15.

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

Tilly's

With an emphasis on skate and surf culture, Tilly’s 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 number beat analysts’ expectations by 2%. It was an exceptional quarter as it also recorded EPS guidance for next quarter exceeding analysts’ expectations and a beat of analysts’ EPS estimates.

The stock is down 6.9% since reporting and currently trades at $1.69.

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

Let’s dig into the relative performance of American Eagle and its peers as we unravel the now-completed Q3 apparel retailer earnings season.

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.

Luckily, apparel retailer stocks have performed well with share prices up 13.1% on average since the latest earnings results.

American Eagle

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

American Eagle reported revenues of $1.36 billion, up 5.7% year on year. This print exceeded analysts’ expectations by 3.1%. Overall, it was an exceptional quarter for the company with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ revenue estimates.

“I’m extremely pleased with the significant trend change across our business reflecting decisive steps taken from merchandising to marketing to operations—all having a positive impact. Record third quarter revenue was highlighted by Aerie’s double-digit comparable sales increase and positive growth at American Eagle, contributing to results that exceeded expectations,” commented Jay Schottenstein, Executive Chairman of the Board and Chief Executive Officer, AEO Inc.

Interestingly, the stock is up 22.9% since reporting and currently trades at $25.70.

Best Q3: Zumiez

With store associates called “Zumiez Stash Members”, Zumiez 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 and EBITDA estimates.

Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 7.1% since reporting. It currently trades at $25.34.

Weakest Q3: Torrid

Promoting a message of body positivity and inclusiveness, Torrid Holdings 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 6.2% since the results and currently trades at $1.20.

Read our full analysis of Torrid’s results here.

Gap

Operating under the Gap, Old Navy, Banana Republic, and Athleta brands, Gap is an apparel and accessories retailer selling casual clothing to men, women, and children.

Gap reported revenues of $3.94 billion, up 3% year on year. This result beat analysts’ expectations by 0.8%. Overall, it was a very strong quarter as it also logged a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ gross margin estimates.

The stock is up 13.4% since reporting and currently trades at $26.12.

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

Victoria's Secret

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

Victoria's Secret reported revenues of $1.47 billion, up 9.2% year on year. This number topped analysts’ expectations by 4.5%. It was an exceptional quarter as it also recorded a beat of analysts’ EPS estimates and a solid beat of analysts’ gross margin estimates.

Victoria's Secret pulled off the biggest analyst estimates beat but had the weakest full-year guidance update among its peers. The stock is up 49.5% since reporting and currently trades at $62.16.

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

As the Q3 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the specialty retail industry, including Sportsman's Warehouse and its peers.

Some retailers try to sell everything under the sun, while others—appropriately called Specialty Retailers—focus on selling a narrow category and aiming to be exceptional at it. Whether it’s eyeglasses, sporting goods, or beauty and cosmetics, these stores win with depth of product in their category as well as in-store expertise and guidance for shoppers who need it. E-commerce competition exists and waning retail foot traffic impacts these retailers, but the magnitude of the headwinds depends on what they sell and what extra value they provide in their stores.

The 9 specialty retail stocks we track reported a mixed Q3. As a group, revenues missed analysts’ consensus estimates by 2.7%.

Thankfully, share prices of the companies have been resilient as they are up 5.3% on average since the latest earnings results.

Sportsman's Warehouse

A go-to destination for individuals passionate about hunting, fishing, camping, hiking, shooting sports, and more, Sportsman's Warehouse is an American specialty retailer offering a diverse range of active gear, equipment, and apparel.

Sportsman's Warehouse reported revenues of $331.3 million, up 2.2% year on year. This print was in line with analysts’ expectations, but overall, it was a slower quarter for the company with full-year EBITDA guidance missing analysts’ expectations significantly.

“This quarter we delivered our third consecutive period of positive same-store sales growth, driven by strong performance in our hunting, fishing, firearms, and personal protection categories, while continuing to gain share in a highly promotional and challenging retail environment,” said Paul Stone, Chief Executive Officer of Sportsman’s Warehouse.

The stock is down 41.8% since reporting and currently trades at $1.42.

Read our full report on Sportsman's Warehouse here, it’s free.

Best Q3: Ulta

Offering high-end prestige brands as well as lower-priced, mass-market ones, Ulta Beauty is an American retailer that sells makeup, skincare, haircare, and fragrance products.

Ulta reported revenues of $2.86 billion, up 12.9% year on year, outperforming analysts’ expectations by 5.2%. The business had an exceptional quarter with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ revenue estimates.

Ulta achieved the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 24% since reporting. It currently trades at $664.70.

Weakest Q3: Dick's

Started as a hunting supply store, Dick’s Sporting Goods is a retailer that sells merchandise for traditional sports as well as for fitness and outdoor activities.

Dick's reported revenues of $4.17 billion, up 36.3% year on year, falling short of analysts’ expectations by 10.2%. It was a disappointing quarter as it posted full-year revenue guidance missing analysts’ expectations significantly and a significant miss of analysts’ revenue estimates.

Dick's delivered the fastest revenue growth but had the weakest full-year guidance update in the group. Interestingly, the stock is up 4.2% since the results and currently trades at $214.95.

Read our full analysis of Dick’s results here.

Academy Sports

Founded in 1938 as a tire shop before expanding into fishing equipment, Academy Sports & Outdoor sells a broad selection of sporting goods but is still known for its outdoor activity merchandise.

Academy Sports reported revenues of $1.38 billion, up 3% year on year. This number missed analysts’ expectations by 1.3%. Zooming out, it was a satisfactory quarter as it also logged an impressive beat of analysts’ gross margin estimates but a slight miss of analysts’ revenue estimates.

Academy Sports achieved the highest full-year guidance raise among its peers. The stock is up 19% since reporting and currently trades at $58.15.

Read our full, actionable report on Academy Sports here, it’s free.

Sally Beauty

Catering to both everyday consumers as well as salon professionals, Sally Beauty is a retailer that sells salon-quality beauty products such as makeup and haircare products.

Sally Beauty reported revenues of $947.1 million, up 1.3% year on year. This print beat analysts’ expectations by 1.6%. It was a very strong quarter as it also logged a solid beat of analysts’ EBITDA and EPS estimates.

The stock is up 5.7% since reporting and currently trades at $15.51.

Read our full, actionable report on Sally Beauty here, it’s free.

What Happened?

Shares of pool products retailer Leslie’s fell 4.8% in the morning session after Morgan Stanley downgraded the stock to Underweight from an Equal-Weight rating and sharply cut its price target. 

The firm lowered its price outlook on Leslie's shares to $1.50 from $3.50. The downgrade reflected concerns about the company's limited visibility for sustained sales growth, declining unit growth, and restricted financial flexibility for necessary reinvestments. Analysts also pointed to the company's significant debt load and its lack of profitability over the previous twelve months as reasons for the negative outlook.

What Is The Market Telling Us

Leslie’s shares are extremely volatile and have had 96 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 11 days ago when the stock gained 11.5% on the news that the White House announced a one-year delay on planned tariff hikes for many home goods, including furniture and cabinets. 

The decision kept the current 25% tariff rate in place, averting a scheduled increase to as high as 50% for items like kitchen cabinets and bathroom vanities that was set to take effect on New Year's Day. This move provided significant relief for retailers, as higher tariffs typically lead to increased costs. Companies would have faced the difficult choice of absorbing the extra expense, which hurts profitability, or passing it on to customers through higher prices, which could reduce sales. The news was met with investor optimism, sparking a rally in the sector.

Leslie's is down 6.4% since the beginning of the year, and at $1.62 per share, it is trading 96.4% below its 52-week high of $44.80 from February 2025. Investors who bought $1,000 worth of Leslie’s shares 5 years ago would now be looking at an investment worth $2.75.

Check out the companies making headlines this week:

Newmark : Real estate services firm Newmark rose by 4.4% on Thursday after the company brokered the $425 million sale of The Shops at Skyview, a large retail center in Queens, New York. See our full article here.

ManpowerGroup : Workforce solutions provider ManpowerGroup rose by 2.7% on Wednesday after BMO Capital upgraded the company's stock to Outperform from Market Perform. See our full article here.

Fluence Energy : Electricity storage and software provider Fluence rose by 11.3% on Thursday after the company announced it would supply its advanced energy storage solution for the 1,200 MWh Pioneer Clean Energy Center project in Arizona. See our full article here.

Abercrombie and Fitch : Young adult apparel retailer Abercrombie & Fitch fell by 19% on Monday after the company lowered its annual sales growth forecast and flagged pressure from increased tariffs. See our full article here.

Sprout Social : Social media management platform Sprout Social rose by 4.7% on Wednesday after the company's CEO, Ryan Paul Barretto, disclosed a significant purchase of company stock, signaling strong insider confidence. See our full article here.

As the Q3 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the apparel retailer industry, including Abercrombie and Fitch 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.

Luckily, apparel retailer stocks have performed well with share prices up 17.2% on average since the latest earnings results.

Abercrombie and Fitch

Founded as an outdoor and sporting brand, Abercrombie & Fitch 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 print exceeded analysts’ expectations by 0.9%. Overall, it was a satisfactory quarter for the company with full-year EPS guidance beating analysts’ expectations but EPS guidance for next quarter slightly missing analysts’ expectations.

Fran Horowitz, Chief Executive Officer, said, “We achieved three years of consecutive quarterly sales growth, delivering record third quarter net sales, with 7% growth to last year. Hollister brands grew 16% on a strong finish to back-to-school and fall seasonal transition. Abercrombie brands made sequential progress in-line with our expectations, and we are tightly managing inventory as we aim for fourth quarter brand net sales to be approximately flat to last year’s record. On the bottom line, we delivered a 12.0% operating margin including important investments in marketing, digital and technology, in addition to 210 basis points of adverse tariff impact. We exceeded our expectations on earnings per share, while also returning $100 million to shareholders in the third quarter, our seventh consecutive quarter of share repurchases.

Interestingly, the stock is up 64.1% since reporting and currently trades at $108.13.

Best Q3: Zumiez

With store associates called “Zumiez Stash Members”, Zumiez 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.

Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 5.1% since reporting. It currently trades at $25.88.

Weakest Q3: Torrid

Promoting a message of body positivity and inclusiveness, Torrid Holdings 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. Interestingly, the stock is up 2% since the results and currently trades at $1.31.

Read our full analysis of Torrid’s results here.

American Eagle

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

American Eagle reported revenues of $1.36 billion, up 5.7% year on year. This result beat analysts’ expectations by 3.1%. Overall, it was an exceptional quarter as it also produced an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ revenue estimates.

The stock is up 24.1% since reporting and currently trades at $25.96.

Read our full, actionable report on American Eagle here, it’s free.

Urban Outfitters

Founded as a purveyor of vintage items, Urban Outfitters 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 logged an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ revenue estimates.

Urban Outfitters achieved the fastest revenue growth among its peers. The stock is up 3.3% since reporting and currently trades at $70.56.

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