The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Zumiez (NASDAQ: ZUMZ) and the rest of the apparel retailer stocks fared in Q2.

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.

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. This print fell short of analysts’ expectations by 1.5%. Overall, it was a disappointing quarter for the company with revenue guidance for next quarter missing analysts’ expectations significantly.

"Second quarter results came in below last year driven by weaker performance in the U.S., which was primarily driven by continued softness in footwear as well as lower traffic levels," said Rick Brooks, Chief Executive Officer of Zumiez Inc. "The decline in the U.S. business was partially offset by continued growth across our other regions, underscoring the strength and diversification of our global business. Our back-to-school trend was similar to our second quarter results with the U.S. being our toughest performing market after two years of low double digit comparable store sales growth for the same periods, partially offset by comparable sales gains internationally. As we look forward to the holiday season, we remain focused on refining our merchandise assortments and deepening our customer experience initiatives to improve the trajectory."

The market seems disappointed with the results as the stock is down 14.9% since reporting and currently trades at $14.23.

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

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, outperforming analysts’ expectations by 4.1%. The business had an incredible quarter with EPS guidance for next quarter exceeding analysts’ expectations.

Tilly's achieved the biggest analyst estimate beat and highest guidance raise of the whole group. The market seems happy with the results as the stock is up 18.1% since reporting. It currently trades at $4.50.

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

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, falling short of analysts’ expectations by 1.7%. It was a softer quarter as it posted full-year EPS guidance missing analysts’ expectations and revenue guidance for next quarter missing analysts’ expectations significantly.

Lululemon delivered the weakest performance against analyst estimates, weakest guidance update, and slowest revenue growth among its peers. As expected, the stock is down 18.7% since the results and currently trades at $99.01.

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 $3.65 billion, down 2% year on year. This result lagged analysts’ expectations by 0.9%. Taking a step back, it was still a satisfactory quarter as it put up full-year EPS guidance topping analysts’ expectations.

The stock is up 3.5% since reporting and currently trades at $21.52.

Read our full, actionable report on Gap 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. This number topped analysts’ expectations by 1.8%. Overall, it was an exceptional quarter as it also produced EPS guidance for next quarter exceeding analysts’ expectations and a beat of analysts’ EPS estimates.

The stock is up 34.8% since reporting and currently trades at $146.85.

Read our full, actionable report on Abercrombie and Fitch 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 Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.