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The apparel stock sector experienced a significant upswing on Thursday following the release of strong earnings reports from Ralph Lauren (NYSE:RL) and Tapestry (TPR). These stellar financial performances helped assuage concerns among investors regarding a potentially lackluster holiday quarter and apprehensions of cautious guidance from companies.
Ralph Lauren (RL) surpassed FQ3 estimates with 6% revenue growth, notably bolstered by stronger-than-anticipated international sales and a dramatic reduction in freight costs. The New York-based company also cited the positive impact of Taylor Swift’s choice to wear an all-American Ralph Lauren attire for the cover of Time Magazine as the 2023 Person of the Year. Swift’s public appearances in Ralph Lauren clothing at events such as the Kansas City Chiefs have effectively amplified interest in the brand on Google search. Meanwhile, Tapestry (TPR) was buoyed by a solid quarter for the Coach business and experienced mid-teens growth in sales to Chinese consumers globally, including continued expansion with Chinese tourists.
Ralph Lauren (RL) saw a notable upsurge of 17.85% at 2:59 p.m. Tapestry (TPR) also experienced a substantial rise of 7.88%. Other prominent apparel stocks that made significant gains included PVH Corp. (PVH) +7.30%, Victoria’s Secret (VSCO) +6.00%, Wolverine World Wide (WWW) +5.70%, Hanesbrands (HBI) +5.25%, Kontoor Brands (KTB) +5.20%, Birkenstock (BIRK) +5.15%, Allbirds (BIRD) +4.86%, G-III Apparel (GIII) +4.66%, Designer Brands (DBI) +4.67%, Levi Strauss (LEVI) +4.62%, Kohl’s (KSS) +4.39%, Nordstrom (JWN) +4.05%, Lululemon Athletica (LULU) +3.85%, and Delta Apparel (DLA) +3.83%.
