Most consumer discretionary businesses succeed or fail based on the broader economy. Over the past six months, it seems like demand trends are working against their favor as the industry
has tumbled by 5.8%. This drawdown was worse than the S&P 500’s 1% decline.
While strong cash flow is a key indicator of stability, it doesn’t always translate to superior returns.
Some cash-heavy businesses struggle with inefficient spending, slowing demand, or weak competitive positioning.
Barclays analyst Paul Kearney initiated coverage on Gildan Activewear, Macy's, Columbia Sportswear, Carter's and Kohl's, with mixed ratings and price forecasts. Despite strong U.S. consumer trends, Kearney remains cautious, citing market volatility and tariff risks impacting apparel sales into 2026.
Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at PVH (NYSE:PVH) and the best and worst performers in the apparel and accessories industry.
Retail sector momentum is building as some global brands show improving visibility, while diversified specialty retailers benefit from operational gains and product mix strength.
A number of stocks fell in the afternoon session after markets gave up early gains with optimism over progress in US-China trade talks quickly fading as the Trump administration announced plans to raise tariffs on all Chinese imports to well above 100%.
Goldman Sachs analyst Brooke Roach warns that U.S. tariff hikes will significantly impact retail, with China's tariff rate soaring to 54% and key sourcing nations like Vietnam (46%) and Cambodia (49%) facing steep increases. Apparel and footwear tariffs will average 38%, forcing brands to adjust pricing and negotiate costs.
Shares of fashion conglomerate PVH (NYSE:PVH)
jumped 18.7% in the morning session after the company reported impressive fourth quarter 2024 results, with sales and earnings exceeding Wall Street's expectations. In North America, sales remained steady, supported by the benefit of earlier wholesale shipments. Meanwhile, European sales declined as planned, reflecting the company's deliberate strategy to prioritize quality over volume.
Investors and traders are closely monitoring the gap up and gap down stocks in today's session on Tuesday. Let's explore the market movements and identify the stocks with significant gaps.
PVH shares are trading higher on Tuesday after the company reported fourth-quarter earnings on Monday after the market closed, which included beats on both revenue and EPS.
