The end of the earnings season is always a good time to take a step back and see who shined (and who didn’t). Let’s take a look at how apparel retailer stocks fared in Q2, starting with Tilly's (NYSE: TLYS).
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 8 apparel retailer stocks we track reported a satisfactory Q2. As a group, revenues were in line with analysts’ consensus estimates while next quarter’s revenue guidance was 0.7% below.
In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.
Best Q2: 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 $163.5 million, up 8.1% year on year. This print exceeded analysts’ expectations by 4.1%. Overall, it was an incredible quarter for the company with EPS guidance for next quarter exceeding analysts’ expectations and a beat of analysts’ EPS estimates.
Tilly's scored the biggest analyst estimate beat and highest guidance raise of the whole group. Unsurprisingly, the stock is up 12.1% since reporting and currently trades at $4.27.
Is now the time to buy Tilly's? Access our full analysis of the earnings results here, it’s free.
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 $1.27 billion, up 4.8% year on year, outperforming analysts’ expectations by 1.8%. The business had an exceptional quarter with EPS guidance for next quarter exceeding analysts’ expectations and a beat of analysts’ EPS estimates.
The market seems happy with the results as the stock is up 26.7% since reporting. It currently trades at $137.94.
Is now the time to buy Abercrombie and Fitch? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: 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 $209 million, down 2.5% year on year, falling short of analysts’ expectations by 1.5%. It was a disappointing quarter as it posted revenue guidance for next quarter missing analysts’ expectations significantly and EPS guidance for next quarter missing analysts’ expectations significantly.
As expected, the stock is down 20.3% since the results and currently trades at $13.31.
Read our full analysis of Zumiez’s results here.
Lululemon (NASDAQ: LULU)
Originally serving yogis and hockey players, Lululemon (NASDAQ: LULU) is a designer, distributor, and retailer of athletic apparel for men and women.
Lululemon reported revenues of $2.42 billion, down 4.3% year on year. This print came in 1.7% below analysts’ expectations. Overall, it was a softer quarter as it also logged full-year EPS guidance missing analysts’ expectations significantly and revenue guidance for next quarter missing analysts’ expectations significantly.
Lululemon had the weakest performance against analyst estimates, weakest guidance update, and slowest revenue growth among its peers. The stock is down 17.2% since reporting and currently trades at $100.84.
Read our full, actionable report on Lululemon here, it’s free.
American Eagle (NYSE: AEO)
With a heavy focus on denim, American Eagle Outfitters (NYSE: AEO) is a specialty retailer offering an assortment of apparel and accessories to young adults.
American Eagle reported revenues of $1.38 billion, up 7.5% year on year. This result topped analysts’ expectations by 0.7%. Overall, it was a very strong quarter as it also put up a beat of analysts’ EPS estimates.
The stock is down 2.5% since reporting and currently trades at $16.47.
Read our full, actionable report on American Eagle here, it’s free.
Market Update
Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership.
Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products.
By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals.
Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
