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 consumer discretionary - apparel and accessories stocks fared in Q2, starting with VF Corp (NYSE: VFC).

The Consumer Discretionary sector, by definition, is made up of companies selling non-essential goods and services. When economic conditions deteriorate or tastes shift, consumers can easily cut back or eliminate these purchases. For long-term investors with five-year holding periods, this creates a structural challenge: the sector is inherently hit-driven, with low switching costs and fickle customers. As a result, only a handful of companies can reliably grow demand and compound earnings over long periods, which is why our bar is high and High Quality ratings are rare. Apparel and accessories companies design, brand, and distribute clothing, handbags, jewelry, and related lifestyle products, often spanning multiple price tiers. Tailwinds include premiumization trends (consumers trading up for perceived quality), international expansion into emerging markets, and growing digital commerce penetration. However, these businesses face headwinds from highly cyclical demand, intense promotional environments, and counterfeit competition undermining brand equity. Tariff volatility and sourcing concentration in a handful of countries add risk. Additionally, rapidly changing fashion cycles and the rise of ultra-fast-fashion digital competitors compress product life cycles and make demand forecasting exceptionally difficult.

The 15 consumer discretionary - apparel and accessories stocks we track reported a mixed Q2. As a group, revenues beat analysts’ consensus estimates by 1.2% while next quarter’s revenue guidance was 4.7% below.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 17.1% since the latest earnings results.

VF Corp (NYSE: VFC)

Owner of The North Face, Vans, and Supreme, VF Corp (NYSE: VFC) is a clothing conglomerate specializing in branded lifestyle apparel, footwear, and accessories.

VF Corp reported revenues of $1.67 billion, up 1.3% year on year. This print exceeded analysts’ expectations by 2%. Despite the top-line beat, it was still a slower quarter for the company with a significant miss of analysts’ EPS estimates.

The market seems disappointed with the results as the stock is down 22.5% since reporting and currently trades at $14.15.

Read our full report on VF Corp here, it’s free.

Best Q2: Figs (NYSE: FIGS)

Rising to fame via TikTok and founded in 2013 by Heather Hasson and Trina Spear, Figs (NYSE: FIGS) is a healthcare apparel company known for its stylish approach to medical attire and uniforms.

Figs reported revenues of $196.6 million, up 28.8% year on year, outperforming analysts’ expectations by 5.6%. The business had a stunning quarter with a beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.

Figs achieved the biggest analyst estimate beat and fastest revenue growth in the group. The market seems happy with the results as the stock is up 18.2% since reporting. It currently trades at $13.29.

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

Weakest Q2: Stitch Fix (NASDAQ: SFIX)

One of the original subscription box companies, Stitch Fix (NASDAQ: SFIX) is an online personal styling and fashion service that curates personalized clothing selections for customers.

Stitch Fix reported revenues of $324.4 million, up 4.2% year on year, in line with analysts’ expectations. It was a softer quarter as it posted full-year EBITDA guidance missing analysts’ expectations significantly and a significant miss of analysts’ EBITDA estimates.

Stitch Fix delivered the weakest guidance update and weakest full-year guidance update of the whole group. As expected, the stock is down 23.8% since the results and currently trades at $2.17.

Read our full analysis of Stitch Fix’s results here.

Movado (NYSE: MOV)

With its watches displayed in 20 museums around the world, Movado (NYSE: MOV) is a watchmaking company with a portfolio of watch brands and accessories.

Movado reported revenues of $169.8 million, up 4.9% year on year. This number surpassed analysts’ expectations by 3.4%. It was an exceptional quarter as it also logged a beat of analysts’ EPS estimates.

The stock is down 2.5% since reporting and currently trades at $34.10.

Read our full, actionable report on Movado here, it’s free.

Levi's (NYSE: LEVI)

Credited for inventing the first pair of blue jeans in 1873, Levi's (NYSE: LEVI) is an apparel company renowned for its iconic denim products and classic American style.

Levi's reported revenues of $1.56 billion, up 8% year on year. This result beat analysts’ expectations by 2.9%. Taking a step back, it was a satisfactory quarter as it also produced a beat of analysts’ EPS estimates but full-year EPS guidance slightly missing analysts’ expectations.

The stock is down 19.2% since reporting and currently trades at $19.69.

Read our full, actionable report on Levi's 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 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.