Allbirds, Inc.

Ulta Beauty, Inc. ULTA maintains its leadership in beauty retail by uniting mass, prestige and luxury products within a dynamic and inclusive shopping experience. The company's ability to generate traffic growth across both its physical stores and digital channels is a testament to its powerful operating model and excellent brand partnerships.
In a recent update, Ulta Beauty has officially announced the opening of its first stores in Mexico, which highlights the brand’s brick-and-mortar international debut and a thrilling milestone in its growth strategy. In collaboration with Axo, Ulta Beauty offers an exclusive retail experience of All Things Beauty. The launch of Ulta Beauty Mexico highlights the company’s strong focus on enhancing its global footprint in new markets worldwide.
With the All in One Place experience, the company enters the Mexican market, offering beauty lovers a curated selection of exclusive brands, best-selling products and fresh discoveries with makeup, skincare, haircare, fragrance and wellness. Such stores will showcase trend-driven displays, beauty services and immersive experiences, all crafted to make beauty feel accessible and enjoyable.
Ulta Beauty’s first store in Mexico was inaugurated on Aug. 21 at Antara Fashion Hall in Mexico City, followed by Galerías Metepec on Aug. 30, with more openings slated to debut across the region throughout the year. The company will celebrate this milestone with a private gala opening on Sept. 18, 2025, at its Antara store, inviting beauty enthusiasts and VIPs to discover its unique products and experiences.
This expansion in Mexico brings 35 beloved beauty brands, comprising Ulta Beauty exclusives Isima by Shakira, Peach & Lily, Orebella, Ulta Beauty Collection and fan favorites like Morphe, Bubble, about-face, Ouai, Half Magic and Kitsch. This will also cover collections of local Mexican beauty labels such as AHAL, AloeVida, Bailando Juntos by Yuya, Sarelly Creativo Lab by Anna Sarelly, among others.
What Else For Ulta Beauty?
Ulta Beauty's unique and differentiated strategy, combined with a commitment to inclusive and welcoming guest experiences, has allowed it to set new standards in consumer expectations while driving significant growth.
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Ulta Beauty's strategic focus on five key areas enhances its growth potential. These include strengthening its product assortment, accelerating social relevance, enhancing digital experiences, leveraging its world-class loyalty program and evolving promotional strategies. Ulta Beauty’s increased efforts in influencer marketing and social media engagement have driven significant growth in earned media value and social impressions, reinforcing brand awareness and customer connection. Hence, shares of this Zacks Rank #3 (Hold) company have rallied 45.7% compared with the industry’s 22.8% growth.
Key Picks
Levi Strauss & Co. LEVI, designer and marketer of jeans, casual wear and related accessories, currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for Levi Strauss’ current financial-year EPS indicates growth of 4% from the year-ago figure. LEVI delivered an average earnings surprise of 25.9% in the trailing four quarters.
Genesco Inc. GCO operates as a retailer and wholesaler of footwear, apparel and accessories, carrying a Zacks Rank #2 (Buy) at present. GCO delivered a trailing four-quarter earnings surprise of 32.4%, on average.
The Zacks Consensus Estimate for Genesco’s current fiscal-year EPS and sales indicates growth of 66% and 1.7%, respectively, from the year-ago period’s reported figures.
Allbirds, Inc. BIRD, a lifestyle brand, currently has a Zacks Rank of 2. The company delivered a trailing four-quarter earnings surprise of 20.7%, on average.
The Zacks Consensus Estimate for BIRD’s current financial-year EPS indicates growth of 18.3% from the year-ago figure.
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ULTA Launches Stores in Mexico, On Track With International Growth

Shares of American Eagle Outfitters, Inc. AEO have jumped more than 24% in after-hours trading yesterday, after it reported solid second-quarter fiscal 2025 results and reinstated guidance for fiscal 2025. The company delivered top and bottom-line beats in the fiscal second quarter, with the latter also increasing year over year.
AEO posted earnings of 45 cents per share in the fiscal second quarter, surpassing the Zacks Consensus Estimate of 20 cents. Also, the bottom line increased 15% from the year-earlier quarter.
Shares of the Zacks Rank #3 (Hold) company have surged 65.7% in the past three months compared with the industry’s growth of 5.9%.
An Insight Into AEO’s Q2 Revenues
Total net revenues of $1.28 billion fell 1% year over year but came above the Zacks Consensus Estimate of $1.23 billion. Consolidated comparable sales (comps) fell 1% in the quarter. A lower average unit price was largely offset by higher transaction volumes, which benefited from positive traffic within the selling channels. The company witnessed demand pick up as the quarter progressed. July was the best month of the reported quarter as AEO introduced the initial back-to-school product collections. Our model predicted negative comps of 3% for the fiscal second quarter.
American Eagle Outfitters, Inc. Price, Consensus and EPS Surprise
Brand-wise, revenues declined 3.3% year over year to $800.4 million at the American Eagle brand. Also, comps for the brand fell 3%.
Revenues jumped 3.2% year over year to $429.1 million for the Aerie brand. Comps for the Aerie brand rose 3%. We expected a sales decline of 4.9% year over year at the American Eagle brand and 4.7% at Aerie in the reported quarter.
An Insight Into AEO’s Margins & Expenses
Gross profit inched up 0.2% year over year to $500 million. The gross margin of 38.9% expanded 30 basis points (bps) from the year-ago quarter, owing to a 50-bps rise in merchandise margins, backed by lower markdowns. Additionally, buying, occupancy and warehousing expenses were flat year over year, deleveraging 20 bps due to lower sales.
Selling, general and administrative (SG&A) expenses dipped 1% year over year to $342.2 million. As a percentage of sales, SG&A expenses were flat year over year. While the company benefited from lower compensation costs, this was partly offset by higher advertising spending.
American Eagle reported an adjusted operating income of $103.1 million, up 2% from the prior-year quarter.
AEO’s Financial Health Snapshot
American Eagle ended the fiscal second quarter with cash and cash equivalents of $126.8 million, with a net long-term debt of $203 million. Total shareholders’ equity was $1.54 billion as of Aug. 2, 2025. The company had a total liquidity of roughly $400 million. It drew down $200 million from its revolver to aid the buyback program and seasonal cash needs. By year-end, it projects repaying the majority of outstanding debt and starting to rebuild cash. Inventory increased 8% year over year to $718.3 million at the end of the reported quarter.
Capital expenditures were $71 million in the fiscal second quarter, with a year-to-date spend of $133 million. The company anticipates incurring capital expenditures of $275 million for fiscal 2025.
In the fiscal second quarter, American Eagle completed its $200-million accelerated share repurchase agreement (ASR), which represents an aggregate repurchase of nearly 18 million shares. Year-to-date, it has repurchased $231 million, reducing the number of shares by 20 million, which is approximately 10% of the outstanding diluted shares. AEO also paid $21 million as quarterly cash dividends, bringing year-to-date dividends of $43 million.
What to Expect From AEO Ahead?
For the third quarter of fiscal 2025, the company expects comps to rise in the low single digits. The gross margin is projected to be down year over year, while SG&A dollars are expected to rise in the high single digits. Depreciation and amortization are estimated at $54 million, and operating income is anticipated to be $95-$100 million, including nearly $20 million of higher tariff costs. The effective tax rate is expected to be around 25% and the weighted average share count is projected at 172 million shares. Buying, occupancy and warehousing costs are likely to increase due to store growth for Aerie, both offline and online, and higher digital penetration, leading to slight deleverage. SG&A is forecast to rise in the high single digits, thanks to investments in advertising.
For the fourth quarter of fiscal 2025, the company expects comps to rise in the low single digits. The gross margin is projected to be down year over year, while SG&A dollars are forecast to remain flat to down slightly year over year. Depreciation and amortization are anticipated at $56 million, and operating income is anticipated to be $125-$130 million, including approximately $40-$50 million of tariff impact in the fiscal fourth quarter. SG&A is likely to drop slightly in the quarter. The effective tax rate is expected to be around 25% and the weighted average share count is projected at 172 million shares.
The company is prioritizing investments across its digital channel, with foundational improvements to the shopping experience. It is focused on optimizing its store fleet to ensure the best locations, offering a seamless customer experience and tapping additional growth opportunities. This year, the company is on track to open roughly 30 Aerie and offline locations and remodel 40-50 AE stores for a modern design. It anticipates shutting down 35-40 American Eagle locations by the end of the year.
Management is impressed by the progress made in the reported quarter. The company is focused on building upon its sales momentum, managing costs and making continued improvements to deliver profitability. The outlook reflects projected tariffs based on the latest trade policies. For fiscal 2025, AEO expects comps to stay flat year over year. The gross margin is projected to be down year over year, while SG&A dollars are forecast to be up year over year. Depreciation and amortization are anticipated at $217 million and adjusted operating income is anticipated to be $255-$265 million. The effective tax rate is expected to be around 25%, and the weighted average share count is projected at 174 million shares.
Eye These Solid Picks in Retail
Levi Strauss & Co. LEVI, designer and marketer of jeans, casual wear and related accessories, currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for Levi Strauss’ current financial-year EPS indicates growth of 4% from the year-ago figure. LEVI delivered an average earnings surprise of 25.9% in the trailing four quarters.
Genesco Inc. GCO operates as a retailer and wholesaler of footwear, apparel and accessories, carrying a Zacks Rank #2 (Buy) at present. GCO delivered a trailing four-quarter earnings surprise of 32.4%, on average.
The Zacks Consensus Estimate for Genesco’s current fiscal-year EPS and sales indicates growth of 66% and 1.7%, respectively, from the year-ago period’s reported figures.
Allbirds, Inc. BIRD, a lifestyle brand, currently has a Zacks Rank of 2. The company delivered a trailing four-quarter earnings surprise of 20.7%, on average.
The Zacks Consensus Estimate for BIRD’s current financial-year EPS indicates growth of 18.3% from the year-ago figure.
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American Eagle Surges on Solid Q2 Earnings, Aerie Comps Rise 3%

Best Buy Co., Inc. BBY reported second-quarter fiscal 2026 results, wherein revenues and earnings surpassed the Zacks Consensus Estimate and the former also rose year over year. The company reiterated its guidance for fiscal 2026.
Best Buy remains committed to its strategic roadmap, which focuses on elevating the omnichannel experience of customers, scaling revenue streams, such as its Best Buy Marketplace and Best Buy Ads, and boosting operational efficiency to fund long-term investments and offset external pressures.
Insight Into BBY’s Quarterly Performance
Adjusted earnings of $1.28 per share surpassed the Zacks Consensus Estimate of $1.22. However, the bottom line fell from $1.34 per share reported in the year-ago period.
Enterprise revenues were $9,438 million, surpassing the consensus mark of $9,202 million and jumping 1.6% from the prior-year quarter's figure of $9,288 million. Enterprise comparable sales rose 1.6% year over year.
Best Buy Co., Inc. Price, Consensus and EPS Surprise
Gross profit edged up 0.4% to $2,194 million, while the gross margin fell 30 basis points (bps) to 23.2%. We had projected adjusted gross margin to remain flat year over year.
Adjusted operating income was $369 million, down 3.1% from the year-ago quarter. The adjusted operating margin of 3.9% fell 20 bps from the prior-year period. We had expected the adjusted operating margin to shrink 50 bps.
Adjusted selling, general and administrative (SG&A) expenses were $1,825 million, up 1.1% year over year. Adjusted SG&A, as a percentage of revenues, were down 10 bps to 19.3%. We had estimated adjusted SG&A expenses to deleverage 50 bps.
BBY’s Domestic & International Operations
Domestic revenues of $8,698 million inched up 0.9% year over year due to a comparable sales rise of 1.1%. From a merchandising perspective, the major drivers on a weighted basis were gaming, computing and mobile phones, somewhat offset by declines in home theater, appliances, tablets and drones. We had projected Domestic revenues of $8,539.5 million and a comparable sales decline of 0.6%.
Domestic online revenues of $2.86 billion increased 5.1% on a comparable basis, and as a percentage of total Domestic revenues, online revenues were 32.8%, higher than 31.5% last year.
The domestic gross margin fell 10 bps to 23.4%, due to lower product margin rates, which were partly offset by rate improvement in the services category. The lower product margin rates were mainly owing to an increased sales mix of lower-margin categories. The segment’s adjusted operating income was $351 million, down 3.6% from $364 million recorded last year. As a percentage of revenues, the metric contracted 20 bps to 4%.
International revenues of $740 million increased 11.3% year over year due to a comparable sales rise of 7.6% and revenues from Best Buy Express locations opened in Canada after year-earlier quarter. We had projected International revenues of $660.9 million and a comparable sales decline of 0.4%.
International gross margin contracted 210 basis points to 21.8%, primarily due to lower product margin rates. The segment’s adjusted operating income was $18 million, up 5.9% from $17 million recorded in the year-ago quarter. As a percentage of revenues, the metric contracted 20 bps year over year to 2.4%.
BBY’s Financial Snapshot
Best Buy ended the quarter with cash and cash equivalents of $1,456 million, long-term debt of $1,164 million and a total equity of $2,716 million.
During the quarter under review, the company returned $266 million to shareholders, comprising $201 million in dividends and $65 million in share repurchases. On a year-to-date basis, BBY returned $568 million to shareholders via dividends of $403 million and share repurchases of $165 million. The company anticipates spending roughly $300 million on share repurchases during FY26.
The company’s board has authorized the payment of a regular quarterly cash dividend of 95 cents per share, payable Oct. 9, 2025, to shareholders of record as on Sept. 18, 2025.
Best Buy Maintains FY26 View
For the fiscal third quarter, BBY expects comparable sales growth to remain similar to the reported quarter and the adjusted operating margin to be similar to the year-earlier quarter’s 3.7% rate.
Management is confident about the plans for the back half of the fiscal year. Given the uncertainty surrounding potential tariff impacts in the back half, both on consumers and business, it reiterated fiscal 2026 view. At this point, the company believes that it is trending toward the higher end of its sales range.
Management still expects revenues between $41.1 billion and $41.9 billion. BBY continues to forecast comparable sales in a range of down 1% to up 1%.
It foresees adjusted operating margin to be approximately 4.2%, with an adjusted effective income tax rate of nearly 25%. Best Buy continues to envision adjusted earnings per share between $6.15 and $6.30. Capital expenditures are still projected at around $700 million for the fiscal year.
Over the past six months, this Zacks Rank #3 (Hold) company has lost 18.3% compared with the industry’s 21.7% drop.
Key Picks
Levi Strauss & Co. LEVI, designer and marketer of jeans, casual wear and related accessories, currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for Levi Strauss’ current financial-year EPS indicates growth of 4% from the year-ago figure. LEVI delivered an average earnings surprise of 25.9% in the trailing four quarters.
Genesco Inc. GCO operates as a retailer and wholesaler of footwear, apparel and accessories, carrying a Zacks Rank #2 (Buy) at present. GCO delivered a trailing four-quarter earnings surprise of 32.4%, on average.
The Zacks Consensus Estimate for Genesco’s current fiscal-year EPS and sales indicates growth of 66% and 1.7%, respectively, from the year-ago period’s reported figures.
Allbirds, Inc. BIRD, a lifestyle brand, currently has a Zacks Rank of 2. The company delivered a trailing four-quarter earnings surprise of 20.7%, on average.
The Zacks Consensus Estimate for BIRD’s current financial-year EPS indicates growth of 18.3% from the year-ago figure.
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Best Buy's Q2 Earnings Beat, Enterprise Comparable Sales Up 1.6% Y/Y

The TJX Companies, Inc. (TJX) posted second-quarter fiscal 2026 results, wherein the top and bottom lines surpassed the Zacks Consensus Estimate. Both metrics also increased from the year-ago quarter.
TJX's Quarterly Metrics: Key Insights
The TJX Companies’ earnings per share (EPS) were $1.10, up 15% from the year-ago quarter. The metric also exceeded the Zacks Consensus Estimate of $1.01 per share.
Net sales came in at $14.4 billion, registering an increase of 7% year over year and surpassing the Zacks Consensus Estimate of $14.1 billion.
In the Marmaxx (United States) division, the company’s net sales were $8,841 million, up 5% year over year. Net sales amounted to $2,286 million, up 9% year over year, in the HomeGoods (United States) division. TJX Canada’s net sales were $1,381 million, up 11% from the figure reported in the year-ago period. TJX International’s (Europe & Australia) net sales were $1,893 million, up 13% year over year.
The company witnessed a 4% jump in consolidated comparable store sales. This growth was primarily driven by higher customer transactions. Comparable store sales rose 3% at Marmaxx (United States), 5% at HomeGoods (United States), 9% at TJX Canada and 5% at TJX International (Europe & Australia).
The TJX Companies, Inc. Price, Consensus and EPS Surprise
The TJX Companies’ pretax profit margin was 11.4%, up 0.5 percentage points from the year-ago quarter’s level. The gross profit margin was 30.7%, up 0.3 percentage points year over year, mainly due to favorable hedges. Merchandise margin remained flat in spite of increased tariff costs year over year.
The company’s selling, general and administrative (SG&A) costs, as a percent of sales, were 19.5%, a 0.3 percentage point decrease, due to operational efficiencies and gains from the timing of certain expenses.
TJX’s Financial Health Snapshot
During second-quarter fiscal 2026, the Zacks Rank #3 (Hold) company’s store count increased by 13, ending the quarter with 5,134 stores.
The TJX Companies ended the quarter with cash and cash equivalents of $4.6 billion, long-term debt of $2.9 billion and shareholders’ equity of $8.9 billion. It generated an operating cash flow of $2.2 billion during the first half of the fiscal year.
During the quarter, the company returned $1 billion to its shareholders. The TJX Companies repurchased and retired 4.1 million shares. It paid out $474 million in dividends in the same quarter. During the reported quarter, the company completed the $1.1-billion that remained as of Feb. 1, 2025, from the earlier-announced stock repurchase program. In February 2025, management approved a new stock repurchase program, authorizing up to an additional $2.5 billion in share buybacks. As of Aug. 2, 2025, TJX had approximately $2.4 billion remaining under this stock repurchase authorization.
Consolidated inventories (on a per-store basis) as of Aug. 2, 2025, increased 10% year over year on a reported and constant currency basis. The TJX Companies is capitalizing on strong merchandise availability in the marketplace and is well-positioned to deliver fresh assortments to its stores and online platforms throughout the fall and holiday season.
What to Expect From TJX Moving Forward?
For fiscal 2026, The TJX Companies still expects consolidated comparable store sales growth of 3%. The full-year pretax profit margin is projected to range between 11.4% and 11.5%, reflecting flat to down 0.1 percentage point compared with 11.5% in the prior year and the earlier expected range of 11.3-11.4%. In addition, fiscal 2026 EPS is forecasted to be between $4.52 and $4.57, marking a 6-7% increase from the previous year’s $4.26 EPS and the earlier guidance of $4.34-$4.43. Foreign exchange headwinds are expected to have a slight negative impact on EPS growth in fiscal 2026.
For the third quarter of fiscal 2026, management expects consolidated comparable store sales to grow 2-3%. The company projects a pretax profit margin between 12% and 12.1%, reflecting a decline of 0.2-0.3 percentage points from 12.3% in the prior-year quarter. The quarterly EPS is expected in the bracket of $1.17-$1.19, representing a year-over-year increase of 3-4% compared with $1.14 in the year-ago period.
The TJX Companies’ third-quarter and fiscal 2026 guidance assumes that existing U.S. tariffs on imports into the US, as of Aug. 20, 2025, will stay in place through the rest of the fiscal year.
Shares of the company have gained 4.5% in the past three months compared with the industry’s growth of 5.9%.
Key Picks
We have highlighted three better-ranked stocks, namely Urban Outfitters (URBN), Canada Goose (GOOS) and Allbirds, Inc. (BIRD).
Urban Outfitters, a fashion lifestyle specialty retailer, currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for Urban Outfitters’ current financial-year sales indicates growth of 8.6% from the year-ago figure. URBN delivered an average earnings surprise of 29% in the trailing four quarters.
Canada Goose, a designer and retailer of premium outerwear, currently carries a Zacks Rank #2 (Buy). GOOS delivered an average earnings surprise of 54.8% in the trailing four quarters.
The consensus estimate for Canada Goose’s current financial-year sales indicates a rise of 8.2% from the year-ago figure.
Allbirds, a lifestyle brand, currently has a Zacks Rank of 2. The company delivered a trailing four-quarter earnings surprise of 20.7%, on average.
The Zacks Consensus Estimate for BIRD’s current financial-year EPS indicates growth of 18.3% from the year-ago figure.
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TJX's Q2 Earnings and Sales Beat Estimates, Comparable Sales Up 4%

Tapestry, Inc. TPR continues to drive its growth strategy through international expansion. In third-quarter fiscal 2025, the company reported an 8% increase in international revenues at constant currency, reflecting strong performance across key global markets.
Europe was the standout region, with a 35% revenue growth rate, driven by robust local consumer demand and significant customer acquisition, especially among Gen Z. Tapestry views Europe as an underpenetrated market and expects 30% growth for the year, signaling opportunities for expansion.
In the Asia-Pacific region, TPR recorded a 4% revenue increase, with Greater China showing 5% growth despite broader category declines in the market. The company’s success in China is largely due to its targeted approach toward younger consumers, particularly Gen Z, and its strong brand positioning. Tapestry emphasized that it has not observed any adverse impacts of anti-American sentiment, and consumer engagement with its brands remains healthy. The company remains confident in China’s long-term growth potential and continues to invest in the region to capture opportunities.
TPR’s agile and diversified supply chain plays a key role in supporting its international growth. Approximately 70% of its manufacturing is based outside China, mainly in Vietnam, Cambodia and the Philippines. This geographic diversity helps mitigate geopolitical risks and tariff-related impacts. Tapestry has also taken proactive steps like inventory pull-forward and supply-chain optimizations to minimize potential disruptions while maintaining its focus on quality and brand integrity.
TPR’s Digital Strength & Global Expansion
Digital expansion is another cornerstone of Tapestry’s international growth strategy. Digital sales grew at a mid-teens rate and now account for roughly 30% of total revenues. This complements strong performance in brick-and-mortar retail, wherein global sales grew at a mid-single-digit rate. The omnichannel approach allows TPR to engage with international customers across both digital and physical platforms, enhancing its reach and customer experience worldwide.
The Coach brand remains a key driver of TPR’s international momentum. The popularity of collections like Tabby and New York has resonated strongly with global consumers, particularly Gen Z. The company’s marketing strategy blends global brand consistency with localized relevance, ensuring strong consumer connections in each market. Experiential retail initiatives, like Coach Play concept stores, are strengthening engagement and driving repeat visits.
The company raised its financial outlook for fiscal 2025. It expects revenues of $6.95 billion, indicating 4% growth from the prior year on a reported basis. This revised forecast is ahead of the previous guidance of 3% growth. Regionally, the company expects sales to grow 3-4% in North America, 30% in Europe, in the low-single digits in Greater China and the high-single digits in other parts of Asia, along with a mid-single-digit decline in Japan. TPR remains confident that international expansion will continue to fuel its long-term growth and market leadership.
Tapestry’s Valuation Picture
TPR is currently trading at a forward 12-month price-to-earnings (P/E) multiple of 16.08X, which positions it at a discount compared with the Retail-Apparel and Shoes industry’s average of 17.41X. Also, TPR is priced lower than the Retail-Wholesale sector’s average of 24.33X.
Image Source: Zacks Investment Research
TPR’s Stock Performance
Shares of this Zacks Rank #3 (Hold) company have rallied 18.4% in the past three months compared with the Zacks industry’s 7.3% growth. This leading lifestyle specialty retailer’s ongoing strategic initiative and operational efficiencies have enabled it to outperform the broader sector and the S&P 500 index’s growth of 3.2% and 5.2%, respectively, during the same period.
Image Source: Zacks Investment Research
Closing at $87.26 as of yesterday, the TPR stock is trading 4% below its 52-week high of $90.85 attained on Feb. 18, 2025. The stock is trading above its 50 and 200-day SMAs (simple moving averages) of $76.37 and $65.83, respectively, highlighting a continued uptrend.
Image Source: Zacks Investment Research
Upward Estimate Revisions Favor Tapestry Stock
The positive sentiment surrounding TPR is reflected in the upward revisions in the Zacks Consensus Estimate for earnings. In the past 60 days, the consensus estimate has moved up 13 cents to $5.05 per share for the current fiscal year and by 12 cents to $5.43 for the next fiscal year, indicating year-over-year growth of 17.7% and 7.6%, respectively. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
The Zacks Consensus Estimate for the current and the next fiscal year’s sales is pegged at $6.96 billion and $7.17 billion, implying year-over-year growth of 4.3% and 3%, respectively.
Image Source: Zacks Investment Research
Key Picks
Some better-ranked stocks are Urban Outfitters Inc. URBN, Canada Goose GOOS and Allbirds Inc. BIRD.
Urban Outfitters is a lifestyle specialty retailer that offers fashion apparel and accessories, footwear, home decor and gift products. It currently flaunts 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 URBN’s fiscal 2026 earnings and sales implies growth of 22.2% and 8.5%, respectively, from the year-ago actuals. URBN delivered a trailing four-quarter average earnings surprise of 29%.
Canada Goose is a global outerwear brand. GOOS is a designer, manufacturer, distributor and retailer of premium outerwear for men, women and children. It carries a Zacks Rank #2 at present.
The Zacks Consensus Estimate for Canada Goose’s current fiscal year’s earnings and sales implies growth of 10% and 2.9%, respectively, from the year-ago actuals. Canada Goose delivered a trailing four-quarter average earnings surprise of 57.2%.
Allbirds is a lifestyle brand that uses naturally derived materials to make footwear and apparel products. It carries a Zacks Rank of 2 at present.
The Zacks Consensus Estimate for Allbirds’ current financial year’s earnings implies growth of 16.1% from the year-ago actual. The company delivered a trailing four-quarter average earnings surprise of 21.3%.
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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.

Is TPR's International Expansion the Key to Its Long-Term Success?

Tapestry, Inc.’s TPR Coach brand delivered exceptional performance in the third quarter of fiscal 2025, achieving net sales of $1.29 billion, reflecting a 13% year-over-year increase on a reported basis and 15% growth on a constant-currency basis. The results reinforce Coach's leadership in the accessible luxury segment. Coach continues to thrive as Tapestry’s top-performing brand, driven by strong brand equity, product innovation and deep engagement with consumers.
Coach achieved a record 79% gross margin in the fiscal third quarter, supported by operational efficiency and premium pricing power. Average Unit Retail (AUR) grew in the mid-teens, with AUR in North America now approximately 70% higher than in 2019. The brand has raised AUR in 18 of the last 20 quarters not only by simply raising prices but also by delivering perceived customer value through compelling products and emotional storytelling.
Coach’s leather goods business saw strong double-digit growth in the fiscal third quarter, led by the Tabby and New York collections. Several key products, such as the Kiss Lock Bag, sold out within minutes. Footwear also contributed to growth, led by the Soho and Highline sneakers, designed for younger, fashion-forward consumers. The “One Coach” strategy, which aligns product and pricing across both outlet and full-price channels, drove engagement and margin expansion.
Looking ahead, Coach is central to Tapestry’s upgraded fiscal 2025 guidance. The company expects revenues of $6.95 billion, indicating 4% growth from the prior year on a reported basis. This revised forecast is ahead of the previous guidance, which called for 3% growth.
Regionally, the company expects sales to grow 3-4% in North America, around 30% in Europe, in the low-single digits in Greater China and the high-single digits in other parts of Asia. The operating margin is expected to expand 100 basis points year over year. Earnings per share are forecast to be $5.00, implying high-teens percentage growth from the prior year’s actual and exceeding the earlier mentioned $4.85-$4.90. With a clear focus on customer acquisition, product excellence and omnichannel experience, Coach is well-positioned for continued sustainable growth andglobal marketshare expansion.
TPR’s Zacks Rank & Share Performance Details
Shares of this Zacks Rank #3 (Hold) company have rallied 27.1% in the past six months compared with the Zacks Retail-Apparel and Shoes industry’s sharp 16.8% decline. This leading lifestyle specialty retailer’s ongoing strategic initiative and operational efficiencies have enabled it to outperform the broader Retail-Wholesale sector and the S&P 500 index’s decline of 0.1% and growth of 1.3%, respectively, during the same period.
TPR Stock Past 6-Month Performance
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Closing at $84.26 as of yesterday, the TPR stock is trading 7.3% below its 52-week high of $90.85 attained on Feb. 18, 2025. Technical indicators support Tapestry’s strong performance. The stock is trading above its 50 and 200-day SMAs (simple moving averages) of $74.23 and $64.73, respectively, highlighting a continued uptrend. This technical strength, along with sustained momentum, indicates positive market sentiment and investors’ confidence in TPR’s financial health and growth prospects.
TPR Trades Above 50 & 200-Day Moving Averages
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Upward Estimate Revisions Favor Tapestry Stock
The positive sentiment surrounding TPR is reflected in the upward revisions in the Zacks Consensus Estimate for earnings. In the past 60 days, the consensus estimate has moved up 13 cents to $5.05 per share for the current fiscal year and by 10 cents to $5.43 for the next fiscal year, indicating year-over-year growth of 17.7% and 7.5%, respectively. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
The Zacks Consensus Estimate for the current and the next fiscal year’s sales is pegged at $6.96 billion and $7.17 billion, respectively, implying year-over-year growth of 4.3% and 3%.
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Key Picks
Some better-ranked stocks are Stitch Fix SFIX, Canada Goose GOOS and Allbirds Inc. BIRD.
Stitch Fix delivers customized shipments of apparel, shoes and accessories for women, men and kids. It carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Stitch Fix’s current fiscal year’s earnings implies growth of 69.7% from the year-ago actuals. SFIX delivered a trailing four-quarter average earnings surprise of 51.4%.
Canada Goose is a global outerwear brand. GOOS is a designer, manufacturer, distributor and retailer of premium outerwear for men, women and children. It carries a Zacks Rank #2 at present.
The Zacks Consensus Estimate for Canada Goose’s current fiscal year’s earnings and sales indicates growth of 10% and 2.9%, respectively, from the year-ago actuals. Canada Goose delivered a trailing four-quarter average earnings surprise of 57.2%.
Allbirds is a lifestyle brand that uses naturally derived materials to make footwear and apparel products. It carries a Zacks Rank of 2 at present.
The Zacks Consensus Estimate for BIRD’s current financial-year earnings implies growth of 16.1% from the year-ago actual. The company delivered a trailing four-quarter average earnings surprise of 21.3%.
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Canada Goose Holdings Inc. (GOOS) : Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).
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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.
Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

Coach Powers Tapestry's Momentum: Find Out What's Driving it

Ralph Lauren Corporation RL posted impressive fourth-quarter fiscal 2025 results, wherein the top and bottom lines increased year over year and surpassed the Zacks Consensus Estimate. The fiscal fourth-quarter results put an emphasis on the company’s strong brand momentum, operational discipline and strategic execution. The results mark a successful close to the Next Great Chapter: Accelerate plan, while setting the stage for continued growth in fiscal 2026 through diversified category, geographic and channel expansion.
RL reported adjusted earnings per share of $2.27, which surpassed the consensus estimate of $2.00. Also, the bottom line increased 32.7% from $1.71 per share in the year-earlier quarter. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Ralph Lauren Corporation Price, Consensus and EPS Surprise
Ralph Lauren Corporation price-consensus-eps-surprise-chart | Ralph Lauren Corporation Quote
Net revenues grew 8% year over year to $1,697 million and beat the Zacks Consensus Estimate of $1,635 million. On a constant-currency (cc) basis, revenues were up 10% from the year-ago quarter. The top line witnessed growth across all regions, driven by brand strength, pricing efforts and continued strategic investments.
Global direct-to-consumer comparable store sales (comps) jumped 13%, backed by continued brand elevation, high single-digit growth in average unit retail (AUR) and positive retail comps at all regions and channels. The top line was negatively impacted by 210 basis points (bps) from foreign currency rates.
Shares of this Zacks Rank #3 (Hold) company have gained 24.9% in the past six months compared with the industry’s decline of 10.2%.
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Ralph Lauren’s Segmental Details
North America: The segment’s revenues were up 6% year over year to $705 million. Comps for North America’s retail channel rose 9% year over year, while those for brick-and-mortar stores and digital commerce moved up 9% and 8%, respectively. Revenues from the North America wholesale business rose 1% year over year.
Europe: The segment’s revenues rose 12% year over year to $526 million. The metric was up 16% on a currency-neutral basis. Comps for the retail channel in Europe were up 18%, while brick-and-mortar stores grew 16% year over year. Digital sales witnessed a 25% rise. Revenues for the segment’s wholesale business increased 10% on a reported basis and rose 14% on a cc basis, supported by solid reorder activity and favorable timing shifts, highlighting strong demand and execution across channels.
Asia: The segment’s revenues increased 9% year over year to $432 million on a reported basis and 13% on a currency-neutral basis. Comps in Asia were up 15%, backed by 13% growth in brick-and-mortar stores and a 27% increase in the digital business.
A Look at RL’s Margins & Costs
Ralph Lauren's adjusted gross profit margin expanded 200 bps year over year to 68.6%. This was mainly driven by favorable geographic, channel, and product mix, AUR growth, and lower cotton costs offsetting higher pressure from non-cotton product costs.
Adjusted operating expenses rose 9% from the year-ago period to $990 million. Adjusted operating expenses, as a percentage of sales, expanded 60 bps to 58.4%.
The company’s adjusted operating income was $175 million for the reported quarter. The adjusted operating margin increased 160 bps year over year to 10.3%.
Ralph Lauren’s Financials
Ralph Lauren ended fiscal 2025 with cash and short-term investments of $2.1 billion, total debt of $1.1 million, and total shareholders’ equity of $2.6 billion. Inventory gained 5% year over year to $950 million at the end of fiscal 2025.
The company reported $216 million in capital expenditures for fiscal 2025, up from $165 million in the prior year, primarily driven by investments in new store openings, renovations, digital enhancements, and technology.
The company repurchased nearly $425 million of Class A Common Stock in fiscal 2025, with $352 million remaining under its existing plan. Additionally, the board authorized a new $1.5 billion share repurchase program, reinforcing confidence in RL’s financial strength and long-term value creation.
RL returned about $625 million to its shareholders via dividends and repurchases of Class A common stock. The fourth quarter results also emphasized Ralph Lauren’s continued commitment to shareholder returns, as the board approved a 10% increase in the regular quarterly cash dividend to $0.9125 per share, bringing the annual dividend to $3.65 per share. The next dividend is scheduled for July 11, 2025, to shareholders of record at the close of business on June 27.
Ralph Lauren’s Store Update
As of March 29, 2025, Ralph Lauren had 564 directly operated stores and 671 concession shops globally. The directly operated stores included 252 Ralph Lauren and 312 Outlet stores. The company operated 116 licensed partner stores globally as of the same date.
RL’s Outlook for Q1 & FY26
The fiscal fourth-quarter results also reflect Ralph Lauren’s cautious yet optimistic outlook for fiscal 2026. Despite ongoing macroeconomic and geopolitical uncertainties, including inflation, tariffs, and supply chain disruptions, the company anticipates low-single-digit revenue growth in constant currency, with momentum expected to be stronger in the first half of the fiscal year.
For 2026, management now expects the operating margin to expand modestly in constant currency, primarily driven by operating expense leverage. Gross margin is projected to remain approximately flat, as AUR growth, lower cotton costs, and a favorable mix offset headwinds from higher tariffs and non-cotton material costs. Foreign currency impact is expected to be minimal across revenues and margins based on current exchange rates.
Management expects capital expenditure to be in the range of 4% to 5% of revenues for fiscal 2026. The fiscal 2026 tax rate is likely to be 20-22%.
For the fiscal first quarter, management anticipates revenues to grow in high single digits compared to last year on a constant currency basis. Operating margin is likely to expand around 150-200 bps in cc driven by gross margin expansion and slight operating expense leverage. Foreign currency is anticipated to hurt gross and operating margins at a minimal rate. The quarterly tax rate is likely to be 20-21%.
Key Picks
Some better-ranked stocks in the same space are Canada Goose GOOS, Allbirds Inc. BIRD and Stitch Fix SFIX.
Canada Goose is a global outerwear brand. GOOS is a designer, manufacturer, distributor and retailer of premium outerwear for men, women and children. It carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Canada Goose’s current fiscal year’s earnings and sales implies growth of 7.5% and 0.68%, respectively, from the year-ago actuals. GOOS delivered a trailing four-quarter average earnings surprise of 57.2%.
Allbirds is a lifestyle brand with naturally derived materials to make footwear and apparel products. It carries a Zacks Rank of 2 at present.
The Zacks Consensus Estimate for Allbirds’ current financial year’s earnings implies growth of 16.1% from the year-ago actual. The company delivered a trailing four-quarter average earnings surprise of 21.3%.
Stitch Fix delivers customized shipments of apparel, shoes and accessories for women, men and kids. It currently has a Zacks Rank of 2.
The Zacks Consensus Estimate for SFIX’s fiscal 2025 earnings implies growth of 64.7% from the year-ago actual. SFIX delivered a trailing four-quarter average earnings surprise of 48.9%.
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Canada Goose Holdings Inc. (GOOS) : Free Stock Analysis Report
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Allbirds, Inc. (BIRD) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Ralph Lauren Q4 Earnings & Sales Beat Estimates, Dividend Up 10%

Urban Outfitters, Inc. URBN reported impressive results for first-quarter fiscal 2026, wherein the top and bottom lines surpassed the Zacks Consensus Estimate. Also, both metrics improved from the prior-year quarter’s reported figure. As a result, shares of this Philadelphia, PA-based player rose 17.5% in the after-market trading session yesterday.
The company reported a highly successful quarter, showcasing strong performance across all its brands and business segments. The Retail segment’s comparable sales grew, with stores outperforming digital, reflecting strong in-store traffic and improved customer experiences.
Anthropologie and Free People continued to deliver robust growth, supported by product expansion and effective marketing. Urban Outfitters made notable progress with improved profitability and customer engagement. The Nuuly rental business stood out with rapid subscriber growth and increasing profitability, indicating its potential for scale.
Management emphasized prudent planning amid tariff uncertainties, strategic inventory and sourcing decisions, and a focus on profitability through lower markdowns and operational efficiencies.
Urban Outfitters, Inc. Price, Consensus and EPS Surprise
Urban Outfitters, Inc. price-consensus-eps-surprise-chart | Urban Outfitters, Inc. Quote
URBN’s Quarterly Performance: Key Metrics & Insights
This lifestyle specialty retailer delivered earnings per share of $1.16, surpassing the Zacks Consensus Estimate of 81 cents. Also, the bottom line increased 78.5% from the prior-year quarter. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Total net sales increased 10.7% year over year to $1,329.5 million, surpassing the consensus estimate of $1,286 million.
Total net sales in the Retail segment rose 6.4%, with comparable net sales in this segment increasing 4.8%. This growth was primarily fueled by mid-single-digit positive gains in digital channel sales and sales from retail stores. Within the segment, comparable net sales rose 3.1% at Free People, 6.9% at Anthropologie and 2.1% at Urban Outfitters. We estimated the Retail segment’s sales to increase 4.5% year over year.
In the Wholesale segment, net sales grew 24.2% year over year due to a 25.6% rise in Free People's wholesale sales, which was attributed to increased sales to department stores and specialty customers. We estimated the Wholesale segment’s sales to rise 29.9% year over year.
Nuuly, a women’s apparel subscription rental service, saw a significant 59.5% increase in net sales due to a 52.9% rise in average active subscribers from the prior-year quarter.
Margin & Cost Insights of Urban Outfitters
Gross profit rose 19.8% from the prior-year quarter to $489.1 million. Also, the gross margin expanded 278 basis points (bps) to 36.8%. The gross margin benefited from a non-recurring gain of $4.8 million recorded in the current year quarter, representing 36 basis points, as well as the absence of $4.6 million in store impairment and lease abandonment charges, which represented 38 basis points in the prior-year quarter.
The remaining increase of 204 basis points in the gross margin was primarily driven by improved markdown performance in the Retail segment, especially at Urban Outfitters. Additional contributions came from cost leverage in delivery expenses due to lower carrier rates and fewer packages per order, as well as improved leverage in store occupancy costs resulting from higher comparable Retail segment net sales. The rise in gross profit was driven by increased net sales and gross margin. We estimated the gross margin to be 35.4%.
Selling, general and administrative (SG&A) expenses rose 8.1% year over year to $360.8 million. This increase was mainly due to higher marketing costs aimed at supporting customer growth and increased sales in the Retail and Subscription segments, along with higher store payroll expenses to support net sales growth in the Retail segment. Our model estimated SG&A expenses to increase 6.1% year over year in the fiscal first quarter. As a percentage of net sales, SG&A leveraged 65 bps to 27.1% in the quarter under review, driven by lower litigation costs in the fiscal first quarter than in the same quarter last year.
URBN recorded an operating income of $128.2 million, up 71.8% from $74.6 million in first-quarter fiscal 2025. As a rate of sales, the operating margin increased 340 bps year over year to 9.6%.
URBN’s Store Update
In the fiscal first quarter, this Zacks Rank #3 (Hold) company opened 13 retail locations, which included two Urban Outfitters stores, two Anthropologie stores and nine Free People stores (including five FP Movement stores). Also, it closed two Free People stores.
As of April 30, 2025, URBN operated 257 Urban Outfitters stores across the United States, Canada and Europe, along with associated websites. The company also operated 241 Anthropologie Group stores in these regions, supported by catalogs and websites. Additionally, there were 237 Free People stores, including 68 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 quarter with cash and cash equivalents of $189.4 million and a total shareholders’ equity of $2.43 billion. As of April 30, 2025, the total inventory grew 14.6% year over year. Total inventory in the Retail segment rose by 13.2%, whereas comparable inventory within the Retail segment increased 12.6%. Inventory in the Wholesale segment jumped 30.6%. The increase in inventory across both segments was driven by higher sales and the timing of early merchandise receipts.
Urban Outfitters provided net cash of $33 million from operating activities as of April 30, 2025. In the three months ended April 30, 2025, the company repurchased and subsequently retired 3.3 million shares for $152 million. As of the same date, 14.7 million common shares were available for repurchase under the program.
URBN Stock Past Three-Month Performance
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URBN’s 2Q26 Outlook
Urban Outfitters expects total company sales to grow in the high-single-digit range for the fiscal second quarter. In the Retail segment, comparable sales are projected to grow in the mid-single digits, driven by mid-single-digit growth at Anthropologie and Free People, and low-single-digit growth at Urban Outfitters. Nuuly is expected to deliver mid-double-digit revenue growth, supported by continued increases in active subscribers. The Wholesale segment is projected to achieve low-double-digit revenue growth.
The gross margin for the second quarter of fiscal 2026 is anticipated to improve 50-100 basis points from the prior year. This will be driven by lower markdowns and occupancy leverage, though partially offset by reduced initial product margins due to higher U.S. tariffs.
SG&A expenses are expected to grow in line with sales for the fiscal 2026, based on current sales performance and plans. The projected increase in SG&A is primarily due to higher marketing investments aimed at driving customer and sales growth, as well as elevated store labor costs associated with the opening of store locations. The company maintains a target of 10% operating margin for fiscal 2026.
In fiscal 2026, Urban Outfitters plans to open 64 stores and close 17. The majority of the net new store openings will come from FP Movement, Free People, and Anthropologie. Specifically, the company plans to open 25 FP Movement locations, 15 Free People stores and 16 Anthropologie stores. Capital expenditure for fiscal 2026 is expected to be 240 million, with 50% going toward retail store expansion and support, 25% toward technology and logistics investments, and the remaining 25% to fund the expansion of home office facilities to accommodate business growth.
Shares of this company have gained 10.3% in the past three months compared with the industry’s 4.2% growth.
Key Picks
Some better-ranked stocks are Sprouts Farmers SFM, Stitch Fix SFIX and Allbirds Inc. BIRD.
Sprouts Farmers is engaged in the retailing of fresh, natural and organic food products. It currently sports a Zacks Rank #1 (Strong Buy). SFM has a trailing four-quarter earnings surprise of 16.5%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Sprouts Farmers’ current financial-year sales and earnings implies growth of 13.7% and 35.5%, respectively, from the year-ago reported numbers.
Stitch Fix delivers customized shipments of apparel, shoes and accessories for women, men and kids. It currently has a Zacks Rank of 2 (Buy).
The Zacks Consensus Estimate for SFIX’s fiscal 2025 earnings implies growth of 64.7% from the year-ago actual. SFIX delivered a trailing four-quarter average earnings surprise of 48.9%.
Allbirds is a lifestyle brand that uses naturally derived materials to make footwear and apparel products. It carries a Zacks Rank of 2 at present.
The Zacks Consensus Estimate for Allbirds’ current financial year’s earnings implies growth of 16.1% from the year-ago actual. The company delivered a trailing four-quarter average earnings surprise of 21.3%.
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Urban Outfitters, Inc. (URBN) : Free Stock Analysis Report
Sprouts Farmers Market, Inc. (SFM) : Free Stock Analysis Report
Stitch Fix, Inc. (SFIX) : Free Stock Analysis Report
Allbirds, Inc. (BIRD) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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