Nine fashion, including three e-commerce companies, announced their first quarter performance over March to May. Together they delivered four strong, two moderate and three weak performances, overall tilting towards the ‘strong’ side of growth. Two out of three strong results among e-commerce companies meant no ‘moderation’ in e-commerce space.
Strong: Growth in both sales & profits
LEVIS (NYSE: LEVI)
In an early April announcement, San Francisco-headquartered Levi Strauss & Co.’s net revenues for the first quarter, $1.7 billion, increased 14 per cent on reported basis and 9 per cent on an organic basis versus Q1, 2025. The respective increase in the Americas was 9 per cent and 7 per cent, with revenue in the US market increasing by 4 per cent. On reported basis, Europe increased 24 per cent and Asia 13 per cent, whereas DTC and wholesale businesses grew 16 per cent and 12 per cent, respectively.
Operating margin stood at 11.4 per cent, compared to 12.5 per cent in Q1 2025; adjusted EBIT margin stood at 12.5 per cent, compared to 13.4 per cent reflecting the impact of tariffs and planned increases in advertising. Gross margin dropped to 61.9 per cent from 62.1 per cent primarily due to the impact of tariffs, partially offset by price increases and less promotional activity.
Net income from continuing operations improved to $177 million compared to $140 million in Q1 2025, while adjusted net income gained $17 billion over $150 million in Q1 2025, commanding a ‘strong’ classification.
In the guidance for the year ending November 29, 2026, the company raised net revenues growth to 5.5 to 6.5 per cent, up from earlier 5 to 6 per cent, and organic net revenues growth to 4.5 to 5.5 per cent, up from 4 to 5 per cent; gross margin now raised to flat to slightly up to prior year, up from flat to prior year; and, adjusted diluted EPS raised to $1.42 to $1.48, up from $1.40 to $1.46, including an approximate $0.04 headwind from a higher tax rate.
Levis Strauss designs and markets jeans, casual wear and related accessories for men, women and children under the Levi’s, Levi Strauss Signature, and Beyond Yoga brands, and sells its products in approximately 120 countries worldwide through a combination of chain retailers, department stores, online sites, and a global footprint of approximately 3,300 retail stores and shop-in-shops.
AMAZON.COM (NASDAQ: AMZN)
World’s largest e-commerce player Amazon.com, Inc. ended first quarter on March 31, 2026, and reported the result in late April. The highlights of the result were net sales of $181.5 billion, growing 17 per cent over $155.7 billion in the first quarter of 2025; operating income of $23.9 billion compared with $18.4 billion last year; and, net income reaching $30.3 billion, or $2.78 per diluted share versus $17.1 billion, or $1.59 per diluted share of last year.
A ‘strong’ performer among e-commerce companies, Amazon also provided second quarter guidance for 2026. The guidance expects net sales to be between $194.0 and $199.0 billion, or to grow 16 to 19 per cent compared with Q2, 2025, anticipating an unfavourable impact of approximately 10 basis points from foreign exchange rates. Operating income is expected to be between $20.0 and $24.0 billion, compared with $19.2 billion in Q2 of 2025.
This guidance assumes Prime Day will occur in the second quarter, and further assumes no additional business acquisitions, restructurings, or legal settlements will be concluded.
ZALANDO SE (ETR: ZAL)
Zalando, Europe’s leading technology platform for fashion and lifestyle, reported a ‘strong’ start to 2026, with sales and profits further strengthening during the first quarter, driven by the deployment of AI and the acquisition of ABOUT YOU delivering growth and efficiencies across B2C and B2B, the company said.
On a reported basis, group GMV (Gross Merchandise Volume) grew 21.7 per cent to €4.3 ($5.01) billion, group revenue gained 23.8 per cent to €3.0 ($3.49) billion and adjusted EBIT climbed 38.7 per cent y-o-y to €65 ($75.67) million, with synergies from ABOUT YOU acquisition contributing €10 million.
Group adjusted EBIT margin increased from 1.9 to 2.2 per cent.
Zalando had issued its full-year outlook in early March, amidst a volatile geopolitical situation and a subdued macro-economic environment, which the company confirmed yet again. For the 2026 fiscal year, GMV and revenue growth are projected between 12 to 17 per cent on a reported basis, with adjusted EBIT expectation staying between €660 million and €740 million.
Founded in Berlin in 2008, Zalando is the leading European technology platform for fashion and lifestyle, that connects 62 million active customers with more than 7,000 brands across 29 markets.
MARIMEKKO (HEL: MEKKO)
In a mid-May interim report for the January to March (Q1, 2026) period, Marimekko reported a 5 per cent increase in net sales amounting €41.4 ($48.1) million, up from €39.6 ($46) million for the Q1, 2025. Net sales were boosted in particular by increased wholesale sales in Scandinavia and Finland, with international sales increasing 9 per cent.
Operating profit improved by 20 per cent and amounted to €5.1 ($5.93) million versus €4.3 ($5.0) million of last year. Comparable operating profit totalled €5.3 million equalling to 12.7 per cent of net sales, compared with prior year’s €4.4 million at 11.1 per cent of net sales. Although operating profit increased due to improved relative sales margin and the growth of net sales, the negative impact of increased fixed costs on operating profit could not be offset.
The guidance for 2026 remained unchanged with the Marimekko Group expecting net sales for 2026 to grow from the previous year’s €189.6 million. Comparable operating profit margin is projected to be approximately some 16 to 19 per cent against 17.1 per cent of 2025. However, different disruptions in global supply chains can cause volatility to this outlook, the company added.
Moderate: Growth in either sales or profits
HENNES & MAURITZ (H&M) (STO: HM-B)
With no growth in sales but earnings after tax (EAT), Swedish multi-brand fashion group H&M delivered a ‘moderate’ performance.
Ending first quarter of 2026 on February 28, 2026, the fashion group reported net sales of SEK 49,607 ($5,308) million for the quarter, declining 1 per cent in local currencies from last year’s SEK 55,333 ($5,921) million. The reported quarter ended with around 4 per cent fewer stores compared with the same point in time last year.
Though comparable gross profit declined from SEK 27,169 ($2,907) million to SEK 25,138 ($2,690) million, gross margin improved from 49.1 per cent to 50.7 per cent, marked by decreased costs of markdowns.
Announced in March-end, the EAT increased to SEK 704 ($819.61) million against SEK 579 million in 2025, corresponding to SEK 0.45 per share, surpassing SEK 0.37 per share of last year.
Founded in 1947 and listed on Nasdaq Stockholm, H&M group owns brands H&M (including H&M Home, H&M Move and H&M Beauty), COS, Weekday (including Cheap Monday and Monki), & Other Stories, ARKET, Singular Society and Sellpy.
DELTA GALIL INDUSTRIES (TLV: DELT)
Delta Galil Industries, the global designer, manufacturer and marketer of branded and private label intimate, activewear, loungewear and denim apparel for ladies, men and kids, reported financial results for Q1, 2026 ended March 31, 2026, according to which the sales increased across all geographies and business segments by 15 per cent (10 per cent in constant currency) to a first quarter record of $573.0 million, compared to $498.7 million in Q1, 2025.
Growth in profitability was reflected by an 18 per cent increase in gross profit to a first quarter record of $238.8 million compared to $202.6 million in the same quarter of 2025. Gross margin also increased, by 110-basis points to 41.7 per cent.
However, net income amounting $16.4 million (excluding non-core items, net of tax) for the quarter remained almost unchanged compared to $17.6 million for the first quarter last year, making it a ‘moderate’ performance.
The company reaffirmed its 2026 guidance: sales in the range of $2,294 – $2,328 million, EBIT to stay between $204 and $212 million, EBITDA of $324 – $332 million, and net income to stay $116 – $123 million, with a diluted EPS yield of $4.00 – $4.23.
Weak: No growth in sales & profits
WINMARK CORP (NASDAQ: WINA)
In its mid-April announcement, Winmark Corporation reported net income, for the quarter ended March 28, 2026, of $9.2 million or $2.50 per share diluted compared to net income of $9.96 million or $2.71 per share diluted in 2025. The results included $2.2 million of leasing income from the settlement of customer litigation.
Total revenue (unaudited) for the quarter for the Nasdaq-listed company amounted to $20.85 million, down from $21.92 million in Q1, 2025, delivering a ‘weak’ performance.
Winmark, a US-based franchisor focused on sustainability and small business formation, provides resale franchises of Plato’s Closet, Once Upon A Child, Play It Again Sports, Style Encore and Music Go Round. As of March 28, 2026, it operated 1,383 franchises, with additional 79 franchises awarded but not opened.
LUDWIG BECK AM RATHAUSECK (ETR: ECK)
Munich-based fashion group Ludwig Beck ended Q1, 2026 with a 2.0 per cent decline in sales, while the industry as a whole saw a 4.0 per cent decline over the same period, according to TextilWirtschaft.
The company shared its observation of the business environment prevalent in Q1, 2026: German retail sector, and brick-and-mortar fashion retailers in particular, faced significant economic and geopolitical pressures, including an unusually long winter, delaying the start of the spring season, massive strikes and public transport closures throughout the reported quarter causing severe restrictions on access to the city centre in Munich in particular, with the US-Israel and Iran conflict also weighing on the results.
The Ludwig Beck Group generated gross sales of €17.9 ($20.80) million versus previous year’s €18.3 ($21.26) million in the first three months of the FY2025. Sales in the textiles segment dropped to €13.7 million from previous year’s €14.2million.
The slight decline in sales had a corresponding impact on gross profit that declined from €7.0 million in the previous year to €6.8 million in the reporting year. Due to higher markdowns resulting from an extended clearance sale of AW (autumn-winter) merchandise, the gross profit margin declined from 45.6 per cent to 45.1 per cent.
The earnings before tax (EBT) amounted to € -2.0 ($-2.32) million (previous year: € -1.8 million), and earnings after tax (EAT) were € -2.1 ($-2.44) million (previous year: € -1.9 million).
SHOWROOMPRIVE GROUP (XPAR: SRP)
Both revenue and GMV for Showroomprivé Group, a leading European player in online flash sales, known for its innovation and specialisation in fashion, declined 5.8 per cent in Q1 2026.
The group generated a GMV worth €179.2 ($208.63) million in the first three months of FY2026, consolidating its market share at 14.5 per cent among flash sale platforms. In this, GMV for its fashion division declined 2 per cent.
Additionally, the Board of Directors approved the 2025 consolidated results: GMV reached €893 million, down 10.6 per cent y-o-y; revenue stood at €559 million, down 13.5 per cent; EBITDA plunged to € -27.7 million (-5 per cent of revenue) due to the decline in business activity; and, net income stood at € -31 million.
Founded in 2006, Showroomprivé offers a daily selection of over 3,000 partner brands via its mobile apps and website in France and six other countries.
Fibre2Fashion News Desk (SB)
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