American Eagle Outfitters, Inc. operates as a multi-brand specialty retailer in the United States and internationally. The company provides jeans, apparel and accessories, and personal care products for women and men under the American Eagle brand; and intimates, apparel, activewear, and swim collections under the Aerie and OFFLINE by Aerie brands. It also offers menswear products under the Todd Snyder New York brand; and fashion clothing and accessories under the Unsubscribed brand. The company sells its products through own and licensed retail stores; concession-based shops-within-shops; and digital channels, such as www.ae.com, www.aerie.com, www.toddsnyder.com, and www.unsubscribed.com. American Eagle Outfitters, Inc. was founded in 1977 and is headquartered in Pittsburgh, Pennsylvania.

American Eagle Outfitters, Inc.

Helicopters Are Out; eVTOLs Are In?

Stitch Fix, Inc. SFIX reported first-quarter fiscal 2026 results, wherein the bottom line matched the Zacks Consensus Estimate while the top line beat. The top line also increased from the year-earlier quarter.
Detailing Stitch Fix’s Q1 Results
SFIX reported an adjusted loss of five cents per share, which met the Zacks Consensus Estimate. The metric also remained flat with the year-ago quarter’s reported figure. The company recorded net revenues of $342.1 million, which surpassed the consensus estimate of $336 million. Also, the metric increased 7.3% from the year-ago quarter. SFIX’s commitment to client engagement and operational discipline bolstered revenues and market share gains.
The number of active clients engaged in ongoing operations was 2,307,000, marking a year-over-year dip of 5.2% and 0.1% quarter over quarter. The average net revenues generated per active client (RPAC) from ongoing operations were $559, representing an increase of 5.3% from the previous year, surpassing our estimate of $558. This marks the seventh straight quarter of year-over-year revenue per active customer growth, underscoring the strong engagement of clients who are joining and staying with the platform.
Fix average order value (AOV) increased roughly 10% year over year, marking the ninth consecutive quarter of growth. This growth was fueled by a larger fix offerings and enhanced assortment resonating with clients that better serve their outfitting needs. The company is seeing gains from the disciplined execution of its transformation strategy. SFIX is leveraging the latest in generative AI technology, the expertise of human stylists and its assortment of key brands to offer the most client-centric and personalized shopping experience. It is reinforcing its competitive position and expanding market share in its core apparel business. The company’s strategic expansion into non-apparel categories is further aiding growth.
The company is experiencing broad-based growth in both its women's and men's businesses. In women's, it witnessed a solid start to fall sales in key seasonal categories like sweaters, coats, jackets and vests, which together rose 19% year over year. Sneakers, which surged 63% year over year, backed by New Balance, Gola and adidas, and Wide leg Denim increased 217%, thanks to outsized performance in Dave's Denim, Pistola and Madewell.
Seasonal categories, including fleece, sweaters and outerwear, grew 57% on a combined basis, while denim rose 30% and sneakers jumped 24% year over year. Brands such as Travis Matthew and Vuori registered outsized growth and were client favorites for style, versatility and quality. The new brands like Katon, Industry and NN07 were introduced with more style and trend into the assortment. SFIX’s expanded relevance in activewear and athleisure, footwear and accessories positions it to capture meaningful wallet share. Based on the current client base, management expects a fair share in these categories to represent roughly $1 billion of incremental revenues.
Insight Into SFIX’s Margins & Expenses
In the fiscal second quarter, this Zacks Rank #2 (Buy) company’s gross profit rose 3.1% to $149.3 million from $142.5 million in the year-ago period. Also, the gross margin decreased 180 basis points (bps) year over year to 43.6%. We expected the gross profit to rise 2% year over year to $147.6 million.
Stitch Fix, Inc. Price, Consensus and EPS Surprise
Selling, general and administrative expenses (SG&A) rose 2.7% to $157.9 million from the prior-year quarter. SG&A expenses, as a percentage of net revenues, were 46.2%, down 200 bps from 48.2% in the prior-year quarter. We anticipated SG&A expenses to grow 2.2% year over year in the fiscal first quarter.
Advertising expense represented 9.9% of revenues in the first quarter, up 50 basis points from the prior-year period, reflecting the company’s broader reinvestment in revenues and active client growth.
Stitch Fix reported an adjusted EBITDA of $13.4 million compared with $13.5 million in the year-ago quarter, reflecting its ongoing cost-management discipline. We note that the adjusted EBITDA margin declined 30 bps year over year to 3.9% in the quarter under review.
SFIX’s Financials: Cash, Inventory & Equity Overview
The company ended the fiscal first quarter with cash and cash equivalents of $114.5 million, short-term investments of $129.7 million, no debt, net inventory of $141.5 million and shareholders’ equity of $204.1 million.
The net cash provided by operating activities was $10.9 million and the free cash was $5.6 million in the fiscal first quarter.
Stitch Fix’s Q2 & FY26 Guidance
Management raised fiscal 2026 guidance, reflecting the positive business trends. For fiscal 2026, it projects total revenues in the range of $1.32-$1.35 billion, reflecting growth of 4.2-6.5% from the last fiscal. The total adjusted EBITDA is likely to be between $38 million and $48 million, with a margin of 2.9-3.6%. It expects positive free cash flow for the fiscal year. Fiscal 2026 gross margin is likely to be roughly 43-44% and advertising costs are expected to be between 9% and 10% of revenues.
For Q2, Stitch Fix expects total revenues of $335-$340 million, representing year-over-year growth of 7.3-8.9%. It forecasts adjusted EBITDA between $10 million and $13 million, with a margin of 3-3.8% for the fiscal second quarter. Resilience in client demand will continue to act as a tailwind. It expects active client year-over-year growth rates to continue improving in the fiscal second quarter. It remains on track to deliver a sequential rise in net adds in Q3 FY'26.
Given the existing trends in consumer confidence and the inflation impacts on discretionary spend, management assumes certain headwinds in the back half. The company will also witness tough AOV comps as it starts lapping the double-digit growth seen in the second half of fiscal 2025.
Management is confident in its strategy, which prioritizes sustainable growth. The company is investing in AI and innovation, which is likely to boost solid client engagement and retention in time.
Eye These Solid Picks in Retail Too
American Eagle Outfitters AEO, a specialty retailer of casual apparel, accessories and footwear, sports a Zacks Rank #1 (Strong Buy) at present. AEO delivered a trailing four-quarter earnings surprise of 35.1%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for AEO’s current fiscal-year sales indicates growth of 1.5%, from the year-ago period’s reported figures.
Five Below FIVE, a specialty value chain retailer, currently carries a Zacks Rank of 2. FIVE delivered an average earnings surprise of 62.1% in the last four quarters.
The Zacks Consensus Estimate for Five Below’s current financial-year sales indicates growth of 19.7% from the year-ago figure.
Ulta Beauty ULTA, a lifestyle brand, currently has a Zacks Rank of 2. The company delivered a trailing four-quarter earnings surprise of 15.7%, on average.
The Zacks Consensus Estimate for ULTA’s current financial-year sales indicates growth of 6.9% from the year-ago figure.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

SFIX Q1 Loss Meet, Revenues Beat on Robust Client Engagement

The Kroger Co. KR reported third-quarter fiscal 2025 results, wherein the bottom line increased year over year and beat the Zacks Consensus Estimate, while sales fell short of the consensus mark. The performance was driven by strength in e-commerce and pharmacy, supported by operational efficiencies and a focus on customer experience. KR’s brands had a strong quarter with premium lines like Simple Truth and Private Selection being the strongest performers.
Kroger’s Quarterly Performance: Key Insights
Kroger posted adjusted earnings of $1.05 per share, surpassing the Zacks Consensus Estimate of $1.04 and improving from 98 cents in the prior-year quarter. The GAAP loss per share was $2.02, against the earnings per share of 84 cents in the year-ago period.
The Kroger Co. Price, Consensus and EPS Surprise
Total sales for the quarter stood at $33.9 billion, which increased from $33.6 billion in the previous year period, but fell short of the Zacks Consensus Estimate of $34.3 billion. However, excluding fuel and the Kroger Specialty Pharmacy business, sales advanced 2.6% year over year. Identical sales without fuel rose 2.6% year over year, reflecting strong momentum in key growth categories. E-commerce sales jumped 17% year over year.
Gross margin came in at 22.8%, up from 22.4% in the year-ago quarter. The gross margin expansion was mainly driven by the sale of Kroger Specialty Pharmacy, the company’s “Our Brands” performance, reduced shrinkage and lower supply chain costs, though partially offset by higher pharmacy sales and price investments. The FIFO gross margin rate, excluding rent, depreciation and amortization, and fuel, jumped 49 basis points year over year.
The Operating, General and Administrative rate, excluding fuel and adjustment items, rose 27 basis points year over year. The increase can be attributed to the sale of Kroger Specialty Pharmacy, along with investments in associate wages and benefits, somewhat negated by reduced incentive plan costs and better productivity.
Adjusted FIFO operating profit reached $1,089 million, up from $1,017 million recorded in the year-ago period. GAAP operating loss was $1,541 million against an operating profit of $828 million delivered last year.
KR’s Financial Snapshot
Kroger ended the third quarter with cash and temporary cash investments of $3,956 million, total debt of $18,010 million and shareowners’ equity of $7,039 million.
Kroger’s net total debt-to-adjusted EBITDA ratio stood at 1.73 compared with 1.21 a year ago, comfortably below the firm’s 2.30-2.50 target range, signaling financial flexibility to support investments and shareholder returns.
Kroger started a $5 billion accelerated share buyback in the fourth quarter of fiscal 2024 and concluded it during the third quarter of fiscal 2025. This ASR was concluded as part of the company’s $7.5 billion buyback plan. Kroger is now buying back the remaining $2.5 billion worth of shares in the open market and expects to close it by the end of fiscal 2025.
The company reaffirmed its fiscal 2025 capital expenditure outlook of $3.6-$3.8 billion and adjusted free cash flow guidance of $2.8-$3 billion.
Sneak Peek Into Kroger’s Guidance
Kroger narrowed the guidance range and expects identical sales without fuel to grow 2.8%-3.0% compared with the prior estimate of 2.7-3.4%.
The company continues to see FIFO operating profit in the range of $4.8-$4.9 billion. Management now envisions adjusted EPS between $4.75 and $4.80 compared with the previously guided range of $4.70-$4.80.
Shares of this Zacks Rank #3 (Hold) company have risen 4% over the past year compared with the industry’s growth of 19.7%.
Image Source: Zacks Investment Research
Picks You Can’t Miss Out On
American Eagle Outfitters, Inc. AEO operates as a multi-brand specialty retailer in the United States and internationally. At present, American Eagle sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for AEO’s current fiscal-year sales and earnings implies a decline of 0.1% and 30.5%, respectively, from the year-ago figures. AEO delivered a trailing four-quarter earnings surprise of 35.1%, on average.
Boot Barn Holdings, Inc. BOOT operates specialty retail stores in the United States and internationally. At present, Boot Barn holds a Zacks Rank of 2 (Buy).
The Zacks Consensus Estimate for Boot Barn’s current fiscal-year sales and earnings implies growth of 16.2% and 20.5%, respectively, from the year-ago figures. BOOT delivered a trailing four-quarter earnings surprise of 5.4%, on average.
Amazon.com, Inc. AMZN engages in the retail sale of consumer products, advertising, and subscription services through online and physical stores in North America and internationally. At present, Amazon holds a Zacks Rank of 2.
The Zacks Consensus Estimate for Amazon’s current fiscal-year sales and earnings implies growth of 11.9% and 29.7%, respectively, from the year-ago figures. AMZN delivered a trailing four-quarter earnings surprise of 22.5%, on average.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Kroger Q3 Earnings Beat Estimates, E-Commerce Sales Jump 17%

Key Points
American Eagle's stock has surged in 2025 as earnings momentum returned.
Recent results highlight strong Aerie and Offline growth, as well as improving American Eagle comps.
The stock is no longer cheap. But it isn't expensive either.
American Eagle Outfitters (NYSE: AEO) has been one of 2025's retail standouts, with shares climbing more than 45% this year as its business regains momentum. Fresh third-quarter results added fuel, showing revenue back to healthy growth and prompting management to lift its outlook for the important holiday period.
The company operates the namesake denim-focused American Eagle chain along with Aerie and Offline, intimate and activewear concepts that have turned into powerful traffic drivers. Third-quarter comparable sales improved across the three brands, led by double-digit gains at Aerie and a return to positive territory for the legacy American Eagle stores.
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With better trends and growing marketing buzz heading into 2026, optimism around the stock is understandable.
But is it too late to buy into this growth story?
A reinvigorated business
American Eagle's third-quarter revenue rose 6% year over year to $1.36 billion -- a quarterly record for the business, as comparable sales increased 4%. Aerie impressively delivered an 11% comparable-sales gain in the period, while the core American Eagle banner managed a 1% increase. Total comparable sales had been negative earlier in 2025, so this pivot back to growth represents a meaningful inflection.
Profitability also looked solid despite heavier tariff headwinds. Third-quarter gross profit grew 5% year over year to $552 million. Though American Eagle's gross margin slipped 40 basis points year over year to 40.5% -- in large part because of $20 million of tariffs. Operating income reached $113 million, better than the company's earlier guidance of $95 million to $100 million, and operating margin stayed near 8%. Earnings per share came in at $0.53, up 29% from a year earlier, while adjusted earnings per share increased about 10%.
Importantly, American Eagle CEO Jay Schottenstein said in the company's third-quarter earnings release that its momentum "has continued into the fourth quarter, including an excellent start to the holiday season."
Reflecting this momentum, management raised fourth-quarter operating income guidance to between $155 million and $160 million, based on expected comparable sales growth of 8% to 9%. It also boosted its full-year adjusted operating income guidance to a range of $303 million to $308 million -- up from prior guidance of $255 million to $265 million.
Key catalysts
Underneath the surface, there's a lot to be optimistic about.
Much of the company's current momentum rests on Aerie and its newer concepts. On theearnings call management noted that Aerie is approaching $2 billion in annual revenue and still holds less than 5% market share in its core categories, leaving ample room for expansion as the brand gains awareness.
Additionally, marketing has become a key lever. Recent campaigns featuring Sydney Sweeney and Travis Kelce have generated more than 44 billion impressions. And a holiday push with Martha Stewart is extending its positive marketing momentum into the peak shopping period.
That kind of buzz is driving near-term traffic, but it can be costly to maintain. Selling, general, and administrative expenses (SG&A) rose 10% year over year in Q3, driven by advertising. Still, management seems pleased with the reach of its advertising campaigns, noting in its third-quarterearnings callthat its fall season campaigns have been the company's "most impactful advertising campaigns ever, which are delivering results."
With the company's accelerated business momentum and its strong advertising results in mind, the stock's valuation looks reasonable even after its run-up. As of this writing, shares trade at 21 times earnings and 16 times forward earnings. These metrics are well below the S&P 500's price-to-earnings ratio of 25. In addition, American Eagle investors get access to an attractive dividend yield of 2.1%.
But even though the valuation is reasonable, I would keep any position in the stock small. Fashion is a fickle and difficult-to-predict business, with trends shifting quickly. The risks of sales trends reversing in an unexpected way, therefore, is always high. Overall, though, I do think the stock is attractive today given American Eagle's incredible business momentum and the visibility management has into the holiday season.
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Daniel Sparks and his clients have no position in any of the stocks mentioned. The Motley Fool recommends American Eagle Outfitters. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

American Eagle Stock Has Been a Big Winner This Year. Can It Soar Even Higher in 2026?

Here are five stocks added to the Zacks Rank #1 (Strong Buy) List today:
Expeditors International of Washington, Inc. EXPD: This logistics services company has seen the Zacks Consensus Estimate for its current year earnings increasing 7.6% over the last 60 days.
Expeditors International of Washington, Inc. Price and Consensus
Expeditors International of Washington, Inc. price-consensus-chart | Expeditors International of Washington, Inc. Quote
Cirrus Logic, Inc. CRUS: This fabless semiconductor company has seen the Zacks Consensus Estimate for its current year earnings increasing 9.3% over the last 60 days.
Cirrus Logic, Inc. Price and Consensus
Credo Technology Group Holding Ltd CRDO: This connectivity solutions provider has seen the Zacks Consensus Estimate for its current year earnings increasing 7.4% over the last 60 days.
Credo Technology Group Holding Ltd. Price and Consensus
American Eagle Outfitters, Inc. AEO: This specialty retail company has seen the Zacks Consensus Estimate for its current year earnings increasing 9% over the last 60 days.
American Eagle Outfitters, Inc. Price and Consensus
McGraw Hill, Inc. MH: This education solutions provider has seen the Zacks Consensus Estimate for its current year earnings increasing 43% over the last 60 days.
McGraw Hill, Inc. Price and Consensus
You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

EXPD, CRUS, and More Are Now Strong Buy Stocks (Dec. 5)

Here are three stocks with buy rank and strong income characteristics for investors to consider today, Dec. 5:
Radian Group Inc. RDN: This real estate company has witnessed the Zacks Consensus Estimate for its current year earnings increasing 6.9% over the last 60 days.
Radian Group Inc. Price and Consensus
This Zacks Rank #1 company has a dividend yield of 2.9%, compared with the industry average of 1.5%.
Radian Group Inc. Dividend Yield (TTM)
American Eagle Outfitters, Inc. AEO: This specialty retail company has witnessed the Zacks Consensus Estimate for its current year earnings increasing 9% over the last 60 days.
American Eagle Outfitters, Inc. Price and Consensus
This Zacks Rank #1 company has a dividend yield of 2.1%, compared with the industry average of 0.0%.
American Eagle Outfitters, Inc. Dividend Yield (TTM)
American Eagle Outfitters, Inc. dividend-yield-ttm | American Eagle Outfitters, Inc. Quote
Expeditors International of Washington, Inc. EXPD: This logistics services company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 7.6% over the last 60 days.
Expeditors International of Washington, Inc. Price and Consensus
Expeditors International of Washington, Inc. price-consensus-chart | Expeditors International of Washington, Inc. Quote
This Zacks Rank #1 company has a dividend yield of 1.0%, compared with the industry average of 0.0%.
Expeditors International of Washington, Inc. Dividend Yield (TTM)
Expeditors International of Washington, Inc. dividend-yield-ttm | Expeditors International of Washington, Inc. Quote
See the full list of top ranked stocks here.
Find more top income stocks withsome of our great premium screens.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Best Income Stocks to Buy for Dec. 5

American Eagle Outfitters, Inc. AEO is expected to register top-line growth when it reports third-quarter fiscal 2025 results on Dec. 2, after market close. The Zacks Consensus Estimate for revenues is pegged at $1.32 billion, which indicates a rise of 2.3% from the year-ago figure.
The consensus estimate for quarterly earnings is pegged at 43 cents per share, indicating a 10.4% drop from the year-ago quarter's number. However, the consensus estimate for earnings has moved up a penny in the past 30 days.
The company’s earnings beat the consensus estimate by 125% in the last reported quarter. AEO delivered an earnings surprise of 30.3% in the trailing four quarters, on average.
Key Factors Likely to Impact AEO’s Q3 Results
American Eagle’s fiscal third-quarter sales performance is expected to have benefited from brand strength, particularly at Aerie, and positive demand across categories like intimates, soft dressing, sleepwear and activewear collections at offline. AEO’s compelling products, expansion into new markets and exciting marketing campaigns have been favoring. Investments in digital, automation and supply chain diversification, coupled with Aerie’s strong momentum, category expansion, and fresh assortments have been driving growth.
AEO has been prioritizing investments in its digital channels, making foundational improvements to enrich the overall shopping experience. The company is also focused on optimizing its store fleet to ensure locations align with customer demand and deliver a best-in-class in-store experience. Innovations, solid omnichannel capabilities and inventory-optimization efforts are likely to have boosted the company’s top-line performance. For the third quarter of fiscal 2025, management had predicted comparable sales (comps) to rise in the low single digits compared with our model anticipation of 1.1% growth.
However, a tough operating landscape, including weak consumer sentiment and inflation, is concerning. The company has been witnessing challenges in its shorts category for a while. In addition, higher costs, including selling, general and administrative (SG&A) expenses and elevated advertising spending, are likely to have acted as deterrents. Although the company has been making mitigation efforts, higher costs with respect to tariffs have also been concerns. These expenses are likely to have weighed on the company’s profitability in the to-be-reported quarter.
On its lastearnings call management had expected gross margin to decline year over year, while SG&A dollars are likely to rise in the high single digits, mainly owing to investments in advertising. It estimated operating income to be $95-$100 million, including nearly $20 million of higher tariff costs. AEO had forecast buying, occupancy and warehousing costs to increase owing to new store growth for Aerie and offline, and higher digital penetration leading to slight deleverage. We project SG&A costs to rise 7.3% for the fiscal third quarter.
What the Zacks Model Unveils for AEO
Our proven model conclusively predicts an earnings beat for American Eagle this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
American Eagle currently has an Earnings ESP of +1.55% and a Zacks Rank of 2.
American Eagle Outfitters, Inc. Price and EPS Surprise
AEO’s Valuation Picture & Price Performance
With a forward 12-month price-to-earnings ratio of 15.27X, below the high level of 18.22X and the Retail - Apparel and Shoes industry’s average of 16.62X, the stock offers compelling value for investors seeking exposure to the sector. Additionally, the stock currently has a Value Score of A, further validating its appeal.
AEO stock has surged 82.6% in the past six months, outperforming the industry’s 0.7% drop.
Other Stocks With the Favorable Combination
Here are a few more companies, which according to our model, have the right combination of elements to post an earnings beat this season:
Dollar General DG currently has an Earnings ESP of +5.45% and a Zacks Rank of 3. The company is likely to register growth in the top line when it reports third-quarter fiscal 2025 results. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus mark for DG’s quarterly revenues is pegged at $10.61 billion, which indicates a 4.2% rise from the figure reported in the prior-year quarter. The consensus mark for Dollar General’s quarterly earnings has fallen a penny in the past 30 days to 92 cents per share. The consensus estimate indicates a rise of 3.4% from the year-ago quarter’s actual. DG has an average trailing four-quarter earnings surprise of 11.3%.
Dollar Tree DLTR currently has an Earnings ESP of +0.30% and a Zacks Rank of 3. The company is likely to register top and bottom-line declines when it reports third-quarter fiscal 2025 results. The consensus mark for DLTR’s quarterly revenues is pegged at $4.74 billion, which indicates a decline of 37.3% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Dollar Tree’s earnings has moved up a penny to $1.09 per share in the past 30 days. The consensus estimate indicates a drop of 2.7% from the year-ago quarter’s actual. DLTR has an average trailing four-quarter earnings surprise of 27.5%.
lululemon athletica LULU currently has an Earnings ESP of +0.17% and a Zacks Rank of 3. LULU is likely to register top-line growth when it reports third-quarter fiscal 2025 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $2.49 billion, which indicates 3.7% growth from the prior-year quarter.
The consensus estimate for earnings has been stable in the past 30 days at $2.22 per share, which implies a 22.7% decrease from the year-ago quarter's actual. LULU has an average trailing four-quarter earnings surprise of 5.3%.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

American Eagle Set for Q3 Earnings: What Surprise Awaits Investors?

Urban Outfitters, Inc. URBN reported impressive results in third-quarter fiscal 2026, wherein the top and bottom lines beat the Zacks Consensus Estimate. Also, both metrics improved from the prior-year quarter’s reported figure.
Shares of this Philadelphia, PA-based player jumped 18.7% in the after-market trading session yesterday as investors reacted to its exceptionally strong third-quarter momentum, broad-based comp strength across all brands, sharp improvement at Urban Outfitters globally and continued rapid growth at Nuuly.
Management also reinforced confidence with robust fiscal fourth-quarter expectations and plans for full-year margin expansion despite tariff headwinds, which collectively boosted sentiment and fueled the sharp after-hours surge.
Urban Outfitters, Inc. Price, Consensus and EPS Surprise
URBN’s Quarterly Performance: Key Metrics & Insights
This lifestyle specialty retailer delivered earnings per share of $1.28, surpassing the Zacks Consensus Estimate of $1.19. Also, the bottom line increased 16.3% from the prior-year quarter.
Total net sales increased 12.3% year over year to $1,529.4 million, surpassing the consensus estimate of $1,493 million.
Total net sales in the Retail segment rose 9.6%, with comparable net sales in this segment increasing 8%. The growth in comparable Retail sales was driven by high single-digit increases across both digital channel and brick-and-mortar store sales. Within the segment, comparable Retail segment net sales grew 12.5% at Urban Outfitters, 7.6% at Anthropologie and 4.1% at Free People. We estimated the Retail segment’s sales to increase 6.3% year over year.
In the Wholesale segment, net sales rose 7.6%, driven by an 8.4% increase in Free People Wholesale revenues, largely attributable to higher sales to specialty customers. We estimated the Wholesale segment’s sales to rise 5.3% year over year.
Nuuly, a women’s apparel subscription rental service, saw a significant 48.7% increase in net sales, primarily reflecting a 42.2% increase in average active subscribers compared with the same quarter last year. We estimated the Nuuly segment’s sales to rise 47.7% year over year.
Margin & Cost Insights of Urban Outfitters
Gross profit rose 13.3% from the prior-year quarter to $563.3 million. Also, the gross margin expanded 31 basis points (bps) to 36.8%. The gross margin improvement was driven by improved Retail segment markdowns, reflecting reduced markdown activity at Urban Outfitters and Free People, as well as leverage in store occupancy expenses resulting from higher comparable Retail segment net sales.
These benefits were partially offset by deleverage in initial merchandise costs. Management estimates that the tariff impact reduced third-quarter gross margin by approximately 60 bps. The rise in gross profit was driven by both increased net sales and margin expansion. We estimated the gross margin to be 36.5%. During the quarter, the company recorded $2 million in store impairment charges.
Selling, general and administrative (SG&A) expenses rose 13.7% year over year to $419 million. This increase was mainly due to higher marketing expenses to support customer growth and stronger sales in the Retail and Subscription segments, along with increased store payroll to support Retail segment store sales growth. Our model estimated SG&A expenses to increase 11.8% year over year in the fiscal third quarter.
As a percentage of net sales, SG&A deleveraged 32 bps to 27.4% in the quarter under review, which lagged our estimate of 27.7%. This increase was primarily driven by higher marketing spend to support customer growth and increased sales in the Retail and Subscription segments, partially offset by leverage in store payroll expenses resulting from Retail segment stores’ net sales growth.
URBN recorded an operating income of $144.3 million, up 12.1% from $128.7 million in the prior-year quarter. As a rate of sales, the operating margin remained flat year over year at 9.4%.
URBN’s Store Update
In the fiscal third quarter, this Zacks Rank #3 (Hold) company opened 27 retail locations, which included five Urban Outfitters stores, seven Anthropologie stores and 15 Free People stores (including eight FP Movement stores). Also, it closed two Free People stores and four Urban Outfitters stores.
As of Oct. 31, 2025, URBN operated 258 Urban Outfitters stores across the United States, Canada and Europe, along with associated websites. The company also operated 248 Anthropologie Group stores in these regions, supported by catalogs and websites. Additionally, there were 253 Free People stores, including 76 FP Movement stores, in the United States, Canada and Europe, accompanied by catalogs and websites. URBN further operated nine Menus & Venues restaurants, seven Urban Outfitters franchisee-owned stores and two Anthropologie Group franchisee-owned stores.
Urban Outfitters’ Financial Health Snapshot
URBN ended the fiscal third quarter with cash and cash equivalents of $306.6 million and a total shareholders’ equity of $2.70 billion. As of Oct. 31, 2025, total inventory increased 5.9% year over year. Retail segment inventory increased 6.3%, with comparable Retail segment inventory up 7.4%, while Wholesale segment inventory remained flat. The increase in the Retail segment inventory was driven by higher sales.
Urban Outfitters generated net cash of $312.2 million from operating activities in the nine months ended Oct. 31, 2025. During this period, the company repurchased and subsequently retired 3.3 million shares for approximately $152 million. As of Oct. 31, 2025, 14.7 million common shares were available for repurchase under the program.
URBN’s Fiscal Q4 Outlook
The company expects strong performance in the fiscal fourth quarter, planning for total sales to grow in the high single digits. Within the retail segment, comparable sales are expected to grow mid-single-digit positive, led by high single-digit retail segment comps at the Urban Outfitters brand, mid-single-digit comps at Anthropologie and low to mid-single-digit comps at Free People.
Nuuly is anticipated to continue delivering mid-double-digit revenue growth, supported by ongoing momentum in subscriber additions, while the Wholesale segment is expected to grow mid-single digits.
The company anticipates fiscal fourth-quarter gross margins to expand nearly 25-50 basis points, supported by fewer markdowns, primarily at Urban Outfitters, but moderated by tariff-related declines in initial merchandise margins. Management estimates a 75-basis-point tariff impact during the fiscal fourth quarter.
SG&A expenses are expected to grow in line with sales in the fiscal fourth quarter, driven mainly by increased marketing spend and labor associated with store openings. Inventory levels are expected to grow in line with sales as the company focuses on improving product turns.
Urban Outfitters’ Fiscal 2026 Guidance
For fiscal 2026, the company currently believes that full-year gross margins could improve by approximately 100 basis points, with the back half of the year exceeding the prior year by about 50 basis points. SG&A expenses are expected to grow roughly in line with sales for the full year.
Management is planning for roughly 100 basis points of operating margin improvement for the full year, which would bring the company very close to its long-term goal of a 10% operating margin.
Capital expenditures for fiscal 2026 are planned at approximately $300 million. Capital project spend is allocated as follows: approximately 45% is dedicated to retail store expansion and support, around 35% is designated for technology and logistics investments and the remaining 20% is allocated to home office expansion to support the company’s growing businesses.
The company expects to open approximately 69 new stores and close 17, with most new openings coming from FP Movement, Free People and Anthropologie.
URBN Stock Past Three-Month Performance
Image Source: Zacks Investment Research
Shares of this company have lost 12.4% in the past three months compared with the industry’s 6.3% decline.
Key Picks
We have highlighted three better-ranked stocks, namely, Steven Madden, Ltd. SHOO, Boot Barn Holdings, Inc. BOOT and American Eagle Outfitters Inc. AEO.
Steven Madden designs, sources, markets and sells fashion-forward branded and private-label footwear, accessories, handbags and apparel. It currently holds a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
The Zacks Consensus Estimate for Steven Madden’s current financial-year earnings and revenues implies a decline of 40.1% and growth of 10.3%, respectively, from the year-ago actuals. SHOO delivered a trailing four-quarter average earnings surprise of 3.3%.
Boot Barn operates as a lifestyle retail chain devoted to western and work-related footwear, apparel and accessories. It currently carries a Zacks Rank of 2.
The Zacks Consensus Estimate for Boot Barn’s fiscal 2026 earnings and sales implies growth of 20.5% and 16.2%, respectively, from the year-ago actuals. Boot Barn delivered a trailing four-quarter average earnings surprise of 5.4%.
American Eagle is a specialty retailer of casual apparel, accessories and footwear. It carries a Zacks Rank of 2 at present.
The Zacks Consensus Estimate for American Eagle's current fiscal-year earnings and sales indicates declines of 35.1% and 0.1%, respectively, from the year-ago actuals. AEO delivered a trailing four-quarter average earnings surprise of 30.3%.
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URBN Stock Surges 19% After Q3 Earnings Beat & Strong Q4 Outlook

Abercrombie & Fitch (ANF) came out with quarterly earnings of $2.36 per share, beating the Zacks Consensus Estimate of $2.14 per share. This compares to earnings of $2.5 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +10.28%. A quarter ago, it was expected that this teen clothing retailer would post earnings of $2.27 per share when it actually produced earnings of $2.32, delivering a surprise of +2.2%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Abercrombie, which belongs to the Zacks Retail - Apparel and Shoes industry, posted revenues of $1.29 billion for the quarter ended October 2025, surpassing the Zacks Consensus Estimate by 1.26%. This compares to year-ago revenues of $1.21 billion. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Abercrombie shares have lost about 56.1% since the beginning of the year versus the S&P 500's gain of 14%.
What's Next for Abercrombie?
While Abercrombie has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Abercrombie was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $3.55 on $1.66 billion in revenues for the coming quarter and $9.63 on $5.25 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Retail - Apparel and Shoes is currently in the top 24% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, American Eagle Outfitters (AEO), has yet to report results for the quarter ended October 2025. The results are expected to be released on December 2.
This teen clothing retailer is expected to post quarterly earnings of $0.43 per share in its upcoming report, which represents a year-over-year change of -10.4%. The consensus EPS estimate for the quarter has been revised 0.4% lower over the last 30 days to the current level.
American Eagle Outfitters' revenues are expected to be $1.32 billion, up 2.3% from the year-ago quarter.
Should You Invest in Abercrombie & Fitch Company (ANF)?
Before you invest in Abercrombie & Fitch Company (ANF), want to know the best stocks to buy for the next 30 days? Check out Zacks Investment Research for our free report on the 7 best stocks to buy.
Zacks Investment Research has been committed to providing investors with tools and independent research since 1978. For more than a quarter century, the Zacks Rank stock-rating system has more than doubled the S&P 500 with an average gain of +24.08% per year. (These returns cover a period from January 1, 1988 through May 6, 2024.)
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Abercrombie & Fitch (ANF) Q3 Earnings and Revenues Beat Estimates

Ross Stores, Inc. ROST reported third-quarter fiscal 2025 results, showcasing strong financial performance as both earnings and sales surpassed the Zacks Consensus Estimate. Net sales and earnings per share also increased compared with the prior-year period.
Ross Stores, a leading off-price apparel retailer, posted earnings of $1.58 per share, exceeding the Zacks Consensus Estimate of $1.40. The fiscal third-quarter earnings per share (EPS) included a 5-cent per share negative impact from tariff-related costs.
Total sales reached $5.6 billion, up 10% year over year and well above the Zacks Consensus Estimate of $5.41 billion. Comparable store sales (comps) improved 7% year over year. The company highlighted that its merchants delivered a compelling assortment of brand-name values, contributing to broad-based strength across all major merchandise categories. Additionally, new marketing campaigns helped drive higher consumer engagement and increased traffic.
In the fiscal third quarter, cosmetics, shoes, and ladies were the strongest merchandise areas, while children’s and men’s remained relatively in line with the chain. Region-wise, the Southeast and Midwest saw broad-based strength. However, performance for the bigger markets, like California, Florida, and Texas, was in line with the chain.
Shares of the Zacks Rank #3 (Hold) company have gained 6.1% in the past three months, outpacing the industry's 1.7% growth.
Image Source: Zacks Investment Research
Insight Into ROST’s Q3 Performance
COGS increased 35 basis points (bps) year over year. Distribution costs rose 60 bps, driven by the new distribution centre opened early this year and higher tariff-related processing costs. Merchandise margin deleveraged 10 bps, while buying expenses were flat versus last year. These pressures were partly negated by 25 bps lower domestic freight and 10 bps reduced occupancy costs.
SG&A remained flat year over year, despite the CEO transition-related cost headwinds. The company’s operating margin of 11.6% was down 35 bps year over year due to tariff-related costs.
Ross Stores, Inc. Price, Consensus and EPS Surprise
Sneak Peek Into ROST’s Other Financials
Ross Stores ended the fiscal third quarter with cash and cash equivalents of $3.8 billion, after funding business growth and capital requirements. The company has a long-term debt of $1.02 billion and a total shareholders’ equity of $5.7 billion.
In the fiscal third quarter, Ross Stores repurchased 1.7 million shares for an aggregate cost of $262 million. The company is on track to buy back a total of $1.05 billion worth of shares in fiscal 2025.
ROST’s Store Update
In third-quarter fiscal 2025, the company opened 36 Ross stores and four dd’s DISCOUNTS stores. With this, the company completed its targeted expansion program of opening 90 locations in fiscal 2025, including 80 Ross stores and 10 dd’s. The company noted that performance was strong across stores opened this fall, particularly in new markets, like the New York Metro area.
For the fourth quarter of fiscal 2025, the company plans to close or relocate 10 locations and expects to end fiscal 2025 with 1,903 Ross stores and 360 dd’s locations.
What ROST Expects for Q4 & FY25
Looking ahead, Ross Stores is confident about its growing business momentum as it moves into the crucial holiday period. The company is strongly positioned to offer an engaging and differentiated merchandise assortment throughout its store network.
For the fourth quarter of fiscal 2025, the company raised its comps growth outlook. It expects comps growth of 3-4% in the fiscal fourth quarter, with total sales estimated to increase 6-7% year over year.
Operating margin is expected to be in the range of 11.5-11.8%, compared with 12.4% last year, primarily due to the prior-year benefit from the sale of a packaway facility. The company anticipates net interest income of $30 million for the fiscal fourth quarter, with a tax rate of 24%. ROST expects average shares outstanding to be 322 million at the end of the fourth quarter of fiscal 2025.
Earnings per share are projected to be in the range of $1.77-$1.85 for the fiscal fourth quarter, including an estimated impact of 3 cents per share from the timing of packaway expenses. As a result, the company raised its EPS outlook for fiscal 2025. ROST now anticipates EPS of $6.38–$6.46 for fiscal 2025 compared with $6.32 reported in fiscal 2024. The fiscal year outlook includes a negative impact of 16 cents per share from tariffs.
Stocks to Consider
American Eagle Outfitters, Inc. AEO operates as a multi-brand specialty retailer in the United States and internationally. At present, American Eagle holds a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for AEO’s current fiscal-year sales and earnings implies a decline of 0.1% and 35.6%, respectively, from the year-ago figures. AEO delivered a trailing four-quarter earnings surprise of 30.3%, on average.
Boot Barn Holdings, Inc. BOOT operates specialty retail stores in the United States and internationally. At present, Boot Barn holds a Zacks Rank of 2.
The Zacks Consensus Estimate for Boot Barn’s current fiscal-year sales and earnings implies growth of 16.2% and 20.5%, respectively, from the year-ago figures. BOOT delivered a trailing four-quarter earnings surprise of 5.4%, on average.
Amazon.com, Inc. AMZN engages in the retail sale of consumer products, advertising, and subscription services through online and physical stores in North America and internationally. At present, Amazon holds a Zacks Rank of 2.
The Zacks Consensus Estimate for Amazon’s current fiscal-year sales and earnings implies growth of 11.9% and 29.7%, respectively, from the year-ago figures. AMZN delivered a trailing four-quarter earnings surprise of 22.5%, on average.
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Indicator	TTM Median
P/E	18.07 20.78
Price/Sales	0.66 0.70
P/B	2.21 1.92
P/FCF	18.49 16.34

Indicator	TTM Median
ROE	12.06 14.59
ROA	5.12 5.09
ROI	23.65 8.66
Net Worth	3.23 0.90
Quick Ratio	0.71 0.88
Current Ratio	1.62 1.45

Indicator	TTM Median
Net Profit Margin	3.74 5.81
Operating Margin	5.05 8.45
Gross Margin	36.98 38.39
Return on tangible equity	13.98 21.83

Indicator	TTM Median
EPS	0.29 0.44
EPS Forecast	0.25 0.40
Revenue	1.28B 185.00M
Gross Profit	500.00M —
EBITDA	0.00 —

American Eagle Outfitters, Inc.

TTM metrics for the latest quarter under IFRS and their historical dynamics

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