What clothing categories are most in demand right now? Which brands managed to strike a chord with shoppers, and which faced hurdles? The most recent quarter of fiscal year FY’24/25 revealed exciting insights into the fashion industry’s evolving dynamics. From the dominance of athleisure to the steadfast appeal of denim and challenges posed by weather disruptions, this quarter’s results uncover what’s trending and what’s not.
Dive into the brand-specific highlights below to discover what’s working in today’s market, how brands are adapting to challenges, and their future outlook for the ever-competitive fashion landscape.
Let’s explore the performance and strategies of some of the biggest names in fashion during the recent quarter.
Kohl’s: Banking on Intimates (Q3/FY’24)
Region: US
Segment: Men’s & Women’s
What Worked: Intimate apparel remained a bright spot for Kohl’s.
Challenges: Slower traffic in stores and a lack of impactful private-label campaigns hindered overall performance.
Focus: The brand is focusing on inventory realignment and marketing efforts to improve traffic and boost categories.
Outlook: Sales are expected to increase by 7%–8%.
Gap/Banana Republic/Old Navy/Athleta: Athleisure Dominance (Q3/FY’24)
Region: US
Segment: Men’s & Women’s
What Worked: Men’s business, driven by tailored styles and athleisure, saw a 4% uptick.
Challenges: Hurricanes and unseasonal weather affected product delivery.
Focus: Gap is sharpening its focus on consistent category winners and optimizing marketing.
Outlook: Growth forecasted at 1.5%–2.5%.
American Eagle (AEO): Denim’s Steadfast Appeal (Q3/FY’24)
Region: US
Segment: Men’s & Women’s
What Worked: Denim sales were strong, and activewear categories also performed well.
Challenges: Intense competition in retail weighed down growth.
Focus: Aerie plans to expand with 45 new stores, while the brand enhances its offerings to attract a younger demographic.
Outlook: Revenues expected to grow by 15%.
PVH (Calvin Klein/Tommy Hilfiger): Reviving Classics (Q3/FY’24)
Region: US
Segment: Men’s & Women’s
What Worked: Heritage items like Tommy Oxford shirts, polos, and Calvin Klein underwear delivered solid sales.
Challenges: International sales were down by 2% due to market challenges.
Focus: Control inventory levels and strengthen the appeal of its core product lines.
Outlook: Sales may decline 6%–7% YoY.
Ralph Lauren: Keeping It Preppy (Q3/FY’24)
Region: US
Segment: Men’s & Women’s
What Worked: Cashmere sweaters, mesh polos, and outerwear stood out.
Challenges: None explicitly reported, but consumer loyalty remains critical.
Focus: Continue leveraging its premium image for better category traction.
Outlook: Sales expected to grow 3%–4%.
Levi’s: Denim for All Seasons (Q3/FY’24)
Region: US
Segment: Women & Men
What Worked: Denim remains Levi’s cornerstone, with women’s business growing 11%.
Challenges: Weakness in the Signature and Dockers categories impacted performance.
Focus: Streamline inventory and enhance marketing to support consistent sales growth.
Outlook: Projected 10% revenue growth.
Macy’s: Tailored Approach in Tough Times (Q3/FY’24)
Region: US
Segment: Men’s & Women’s
What Worked: Advanced contemporary apparel and tailored men’s clothing led the way.
Challenges: Warm weather reduced demand for seasonal apparel.
Focus: Revamp customer experiences through omnichannel strategies and robust execution.
Outlook: Sales to decline 1% to $22.3–$22.5 billion.
Victoria’s Secret: Comfort Meets Innovation (Q3/FY’24)
Region: US
Segment: Women
What Worked: The PINK line and casual sleepwear were top performers.
Challenges: Scaling operations to support new store formats remains key.
Focus: Open 17 new stores and enhance co-location strategies for Victoria’s Secret and PINK.
Outlook: Revenue growth expected at 1%–2%.
Abercrombie & Fitch: Resurging Demand for Comfortwear (Q3/FY’24)
Region: US
Segment: Men’s & Women’s
What Worked: Fleece, sweaters, and fall collections drove solid sales for Abercrombie.
Challenges: European store openings slowed due to economic uncertainty.
Focus: Accelerate North American growth with new products and improved consumer engagement.
Outlook: Growth forecasted at 14%–15%.
Lululemon: Athleisure Keeps Things Flat (Q3/FY’24)
Region: US
Segment: Women & Men
What Worked: Skirts, leggings, and men’s “in-space” categories performed consistently.
Challenges: US revenues were flat this quarter.
Focus: Improve inventory alignment to better capture shifting demand.
Outlook: FY24 revenue expected at $9.51–$9.57 billion.
Walmart: Affordable Apparel Steals the Show (Q3/FY’24)
Region: US
Segment: Apparel
What Worked: Walmart’s value-driven apparel line continued to attract customers amidst inflationary pressures.
Challenges: Inflation remained a drag on overall consumer sentiment.
Focus: Promote affordable fashion and ensure operational efficiency to drive growth.
Outlook: Sales to grow 2.5%–3%.
Inditex (Zara): Navigating Weather Challenges (Q3/FY’24)
Region: EU
Segment: Apparel
What Worked: Inditex rebounded with strong fall/winter collections after weather delays in earlier seasons.
Challenges: Extreme weather events disrupted the supply chain.
Focus: Strengthen logistics and increase store efficiency to avoid future bottlenecks.
Outlook: Revenue to increase 8%–10%.
H&M: Cost Pressures Weighing Heavy (Q3/FY’24)
Region: EU
Segment: Apparel
What Worked: Consumer sentiment leaned toward affordability, with limited traction on high-margin products.
Challenges: High inventory levels and operational inefficiencies created headwinds.
Focus: Reassess pricing strategies and better align with consumer demand.
Outlook: Modest improvement remains challenging amidst an unpredictable market.
Hugo Boss: Luxury in the Balance (Q3/FY’24)
Region: EU
Segment: Men’s & Women’s
What Worked: Menswear staples like tailored suits and casualwear from the Boss brand gained traction.
Challenges: Consumer sentiment remained fragile, especially in the luxury segment.
Focus: Stabilize performance across premium categories and focus on emerging markets.
Outlook: Revenue growth expected at 4%–5%.
Information Source: Respective company financials/ Yahoofinance/Motleyfool
