Q3 Earnings Roundup: Kontoor Brands (NYSE:KTB) And The Rest Of The Apparel and Accessories Segment

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 and accessories industry, including PVH and its peers.

Thanks to social media and the internet, not only are styles changing more frequently today than in decades past but also consumers are shifting the way they buy their goods, favoring omnichannel and e-commerce experiences. Some apparel and accessories companies have made concerted efforts to adapt while those who are slower to move may fall behind.

The 16 apparel and accessories stocks we track reported a 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 5.4% on average since the latest earnings results.

PVH

Founded in 1881 by a husband and wife duo, PVH is a global fashion conglomerate with iconic brands like Calvin Klein and Tommy Hilfiger.

PVH reported revenues of $2.29 billion, up 1.7% year on year. This print exceeded analysts’ expectations by 0.5%. Despite the top-line beat, it was still a mixed quarter for the company with a decent beat of analysts’ adjusted operating income estimates but EPS guidance for next quarter missing analysts’ expectations.

The stock is down 14.9% since reporting and currently trades at $74.50.

Is now the time to buy PVH? Access our full analysis of the earnings results here, it’s free for active Edge members.

Best Q3: Figs

Rising to fame via TikTok and founded in 2013 by Heather Hasson and Trina Spear, Figs is a healthcare apparel company known for its stylish approach to medical attire and uniforms.

Figs reported revenues of $151.7 million, up 8.2% year on year, outperforming analysts’ expectations by 6.4%. The business had an incredible quarter with a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

The market seems happy with the results as the stock is up 59.4% since reporting. It currently trades at $11.98.

Is now the time to buy Figs? Access our full analysis of the earnings results here, it’s free for active Edge members.

Movado

With its watches displayed in 20 museums around the world, Movado is a watchmaking company with a portfolio of watch brands and accessories.

Movado reported revenues of $186.1 million, up 3.1% year on year, in line with analysts’ expectations. It was a softer quarter as it posted a significant miss of analysts’ EPS estimates.

Interestingly, the stock is up 11.7% since the results and currently trades at $21.71.

Read our full analysis of Movado’s results here.

Ralph Lauren

Originally founded as a necktie company, Ralph Lauren is an iconic American fashion brand known for its classic and sophisticated style.

Ralph Lauren reported revenues of $2.01 billion, up 16.5% year on year. This print surpassed analysts’ expectations by 6.5%. Overall, it was a very strong quarter as it also put up a solid beat of analysts’ constant currency revenue estimates and a solid beat of analysts’ revenue estimates.

Ralph Lauren achieved the biggest analyst estimates beat among its peers. The stock is up 17.3% since reporting and currently trades at $371.69.

Read our full, actionable report on Ralph Lauren here, it’s free for active Edge members.

Guess

Flexing the iconic upside-down triangle logo with a question mark, Guess is a global fashion brand known for its trendy clothing, accessories, and denim wear.

Guess reported revenues of $791.4 million, up 7.2% year on year. This number topped analysts’ expectations by 2.5%. It was an exceptional quarter as it also produced a beat of analysts’ EPS estimates and a solid beat of analysts’ adjusted operating income estimates.

The stock is down 1.6% since reporting and currently trades at $16.77.

Read our full, actionable report on Guess here, it’s free for active Edge members.

Stitch Fix delivered a quarter that outpaced Wall Street’s revenue expectations, with management attributing the performance to a combination of new client engagement features, expanded product assortment, and increasing use of generative AI. CEO Matt Baer emphasized that both women’s and men’s businesses saw accelerated growth, aided by strong seasonal demand and expanded offerings in categories like sneakers and outerwear. Management cited the success of new brands and innovative shopping experiences as key drivers. CFO David Aufderhaar highlighted improvements in average order value and repeated that disciplined operational execution is fueling sustainable growth.

Is now the time to buy SFIX? Find out in our full research report (it’s free for active Edge members).

Stitch Fix (SFIX) Q3 CY2025 Highlights:

• Revenue: $342.1 million vs analyst estimates of $337.2 million (7.3% year-on-year growth, 1.5% beat)
• Adjusted EPS: -$0.02 vs analyst estimates of -$0.04 ($0.02 beat)
• Adjusted EBITDA: $1.93 million vs analyst estimates of $10.1 million (0.6% margin, 80.9% miss)
• The company lifted its revenue guidance for the full year to $1.34 billion at the midpoint from $1.31 billion, a 2.3% increase
• EBITDA guidance for the full year is $43 million at the midpoint, above analyst estimates of $36.97 million
• Operating Margin: -2.5%, in line with the same quarter last year
• Active Clients: 2.31 million, down 127,000 year on year
• Market Capitalization: $727.4 million

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Stitch Fix’s Q3 Earnings Call

• Dylan Carden (William Blair) asked about metrics used to gauge new client stickiness. CEO Matt Baer emphasized nine consecutive quarters of improving lifetime value for new clients and highlighted a reduction in dormancy rates.
• Aneesha Sherman (Bernstein) inquired about market share gains and the impact of new gifting features. Baer noted Stitch Fix is gaining share from retailers that lack personalization and described family accounts as a key driver of holiday gifting engagement.
• David Bellinger (Mizuho) requested insights into early adoption of AI visualization tools. Baer reported that Stitch Fix Vision has exceeded initial expectations for client engagement and is driving organic sharing and acquisition.
• David Bellinger (Mizuho) also followed up on gross margin trends. CFO David Aufderhaar explained that higher transportation costs and category mix shifts, especially into lower-margin footwear, played major roles, while tariffs had a smaller impact.
• Jay Sole (UBS) questioned what makes the platform attractive to third-party brands and the drivers of revenue per active client. Baer detailed how the closed ecosystem benefits brands, and Aufderhaar cited higher order values and improved new client LTVs as drivers of revenue per client.

Catalysts in Upcoming Quarters

In the coming quarters, our analysts will monitor (1) the pace of active client recovery and the effectiveness of retention initiatives, (2) adoption and monetization of new AI-powered features such as Vision and the AI style assistant, and (3) continued progress in expanding the assortment and onboarding new brands. We will also track the impact of macroeconomic trends on discretionary consumer spending.

Stitch Fix currently trades at $5.39, up from $4.69 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it’s free for active Edge members).

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What Happened?

A number of stocks fell in the afternoon session after new economic data intensified market agitation ahead of the Federal Reserve's policy decision later in the week. 

According to the Bureau of Economic Analysis, real consumer spending, which is adjusted for inflation, stalled in September, marking its weakest performance in four months. Compounding the issue, the University of Michigan's consumer sentiment index, while slightly improved, remained gloomy, with one economist noting that many households faced affordability issues forcing them to be more cautious. This pressure on consumers was reflected in the market, where the Consumer Discretionary sector was among the leading decliners. The broader economic picture showed other signs of caution, as new orders for U.S. factory goods also increased less than anticipated. These indicators collectively suggest a widening slowdown across both consumer and industrial sectors as the Federal Reserve prepared to announce its final policy actions for the year.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Among others, the following stocks were impacted:

• Gaming Solutions company PlayStudios fell 2.6%. Is now the time to buy PlayStudios? Access our full analysis report here, it’s free for active Edge members.
• Apparel and Accessories company Oxford Industries fell 3.3%. Is now the time to buy Oxford Industries? Access our full analysis report here, it’s free for active Edge members.
• Travel and Vacation Providers company Marriott Vacations fell 3.3%. Is now the time to buy Marriott Vacations? Access our full analysis report here, it’s free for active Edge members.
• Toys and Electronics company Mattel fell 3.9%. Is now the time to buy Mattel? Access our full analysis report here, it’s free for active Edge members.
• Apparel and Accessories company Kontoor Brands fell 3.6%. Is now the time to buy Kontoor Brands? Access our full analysis report here, it’s free for active Edge members.

Zooming In On Mattel (MAT)

Mattel’s shares are not very volatile and have only had 8 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.

The previous big move we wrote about was 5 days ago when the stock gained 4.8% on the news that the company presented at the Morgan Stanley Global Consumer & Retail Conference, where its leadership shared business updates. The company's Executive Chairman & CEO, Ynon Kreiz, and its Chief Financial Officer, Paul Ruh, participated in the event. Presentations at such conferences often contain forward-looking statements that can influence investor views on a company's future performance. This news followed Mattel's re-introduction of Uno Braille a day earlier. The new edition of the popular card game was designed so that blind or low-vision players could enjoy it, showing the company's commitment to making its products more accessible to everyone.

Mattel is up 15.3% since the beginning of the year, and at $20.44 per share, it is trading close to its 52-week high of $21.94 from February 2025. Investors who bought $1,000 worth of Mattel’s shares 5 years ago would now be looking at an investment worth $1,267.

What Happened?

A number of stocks fell in the afternoon session after new economic data intensified market agitation ahead of the Federal Reserve's policy decision later in the week. 

According to the Bureau of Economic Analysis, real consumer spending, which is adjusted for inflation, stalled in September, marking its weakest performance in four months. Compounding the issue, the University of Michigan's consumer sentiment index, while slightly improved, remained gloomy, with one economist noting that many households faced affordability issues forcing them to be more cautious. This pressure on consumers was reflected in the market, where the Consumer Discretionary sector was among the leading decliners. The broader economic picture showed other signs of caution, as new orders for U.S. factory goods also increased less than anticipated. These indicators collectively suggest a widening slowdown across both consumer and industrial sectors as the Federal Reserve prepared to announce its final policy actions for the year.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Among others, the following stocks were impacted:

• Wireless, Cable and Satellite company Cable One fell 4.4%. Is now the time to buy Cable One? Access our full analysis report here, it’s free for active Edge members.
• Leisure Products company Ruger fell 5%. Is now the time to buy Ruger? Access our full analysis report here, it’s free for active Edge members.
• Apparel and Accessories company Movado fell 4%. Is now the time to buy Movado? Access our full analysis report here, it’s free for active Edge members.
• Education Services company Strategic Education fell 4.2%. Is now the time to buy Strategic Education? Access our full analysis report here, it’s free for active Edge members.

Zooming In On Ruger (RGR)

Ruger’s shares are not very volatile and have only had 6 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.

The previous big move we wrote about was 17 days ago when the stock gained 2.6% on the news that comments from a key Federal Reserve official bolstered hopes for an interest rate cut. New York Federal Reserve President John Williams stated he sees “room for a further adjustment” in the near term, sparking a significant market rally. Following his remarks, the probability of the central bank cutting rates at its December meeting jumped from 39% to over 73%, according to the CME FedWatch tool. This positive sentiment provided relief to markets amid concerns over high valuations, particularly in AI-related stocks.

Ruger is down 6.5% since the beginning of the year, and at $32.59 per share, it is trading 30.9% below its 52-week high of $47.13 from October 2025. Investors who bought $1,000 worth of Ruger’s shares 5 years ago would now be looking at an investment worth $531.13.