Let’s dig into the relative performance of Abercrombie and Fitch (NYSE: ANF) and its peers as we unravel the now-completed Q1 apparel retailer earnings season.

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 Q1. As a group, revenues beat analysts’ consensus estimates by 1% while next quarter’s revenue guidance was in line.

Thankfully, share prices of the companies have been resilient as they are up 5.5% on average since the latest earnings results.

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 $1.11 billion, up 1.5% year on year. This print fell short of analysts’ expectations by 0.8%. Overall, it was a mixed quarter for the company with a solid beat of analysts’ EBITDA estimates but EPS guidance for next quarter missing analysts’ expectations significantly.

Fran Horowitz, Chief Executive Officer, said, “We delivered record first quarter net sales and our 14th consecutive quarter of growth, reflecting our teams’ consistent execution for our customers amid a dynamic global environment. Results were driven by continued growth in the Americas, led by Abercrombie Brands, along with strong growth in APAC. In EMEA, demand softened as the Middle East conflict ramped up, particularly impacting Hollister Brands, and we are proactively managing inventory and marketing to support the region. Our bottom-line results reflect discipline and consistency, with both operating margin and earnings per diluted share exceeding our outlook. We continued to invest in stores and marketing to strengthen our brands and customer experiences, while also returning $105 million to shareholders through share repurchases, supported by our strong balance sheet.

Interestingly, the stock is up 41.1% since reporting and currently trades at $105.53.

Is now the time to buy Abercrombie and Fitch? Access our full analysis of the earnings results here, it’s free.

Best Q1: 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 $124.7 million, up 15.9% year on year, outperforming analysts’ expectations by 2.8%. The business had a stunning quarter with EPS guidance for next quarter exceeding analysts’ expectations and a solid beat of analysts’ gross margin estimates.

Tilly's pulled off the biggest analyst estimate beat, highest guidance raise, and fastest revenue growth of the whole group. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 10.9% since reporting. It currently trades at $3.96.

Is now the time to buy Tilly's? Access our full analysis of the earnings results here, it’s free.

Weakest Q1: 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 $2.47 billion, up 4.3% year on year, exceeding analysts’ expectations by 1.7%. Still, it was a softer quarter as it posted full-year EPS guidance missing analysts’ expectations.

Lululemon delivered the weakest guidance update and weakest full-year guidance update in the group. As expected, the stock is down 4.4% since the results and currently trades at $119.45.

Read our full analysis of Lululemon’s results here.

Gap (NYSE: GAP)

Operating under the Gap, Old Navy, Banana Republic, and Athleta brands, Gap (NYSE: GAP) is an apparel and accessories retailer selling casual clothing to men, women, and children.

Gap reported revenues of $3.50 billion, flat year on year. This number came in 0.8% below analysts’ expectations. Taking a step back, it was a mixed quarter as it also recorded full-year EPS guidance slightly topping analysts’ expectations but EPS in line with analysts’ estimates.

Gap had the weakest performance against analyst estimates and slowest revenue growth among its peers. The stock is down 19.2% since reporting and currently trades at $20.19.

Read our full, actionable report on Gap 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 $1.20 billion, up 9.7% year on year. This result beat analysts’ expectations by 0.9%. Overall, it was a strong quarter as it also produced a beat of analysts’ EPS estimates and gross margin in line with analysts’ estimates.

The stock is down 7.6% since reporting and currently trades at $16.55.

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 Hidden Gem Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.