Allbirds, Inc.

Tractor Supply Company TSCO reported third-quarter 2025 results, wherein the bottom line surpassed the Zacks Consensus Estimate. Also, net sales and earnings increased from the year-ago period.
Tractor Supply has posted earnings of 49 cents per share, which beat the Zacks Consensus Estimate of 48 cents. Also, the bottom line increased 8.6% from the figure reported in the prior-year quarter.
Net sales grew 7.2% year over year to $3.72 billion and came in line with the Zacks Consensus Estimate. The increase in sales can be attributed to store openings, gains from Allivet and an increase in comparable store sales.
Tractor Supply Company Price, Consensus and EPS Surprise
Comparable store sales (comps) grew 3.9% year over year, reversing the 0.2% drop registered in the prior year’s third quarter. The improvement reflects a 2.7% rise in average transaction count and a 1.2% increase in average ticket. Comps growth was fueled by strength in spring and summer seasonal products, as well as momentum in core categories like consumable, usable and edible products.
Tractor Supply’s Costs & Margins
Gross profit rose 7.7% year over year to $1.39 billion. The gross margin improved 15 basis points (bps) year over year to 37.4%, primarily driven by effective product cost management and the continued execution of its everyday low-price strategy. However, the improvement was partially offset by tariff costs and increased transportation expenses. Our model predicted gross profit to increase 8.1% and the gross margin to expand 40 bps to 37.6%.
Selling, general and administrative (SG&A) expenses, including depreciation and amortization, rose 8.4% to $1.05 billion from $965.8 million in the third quarter of 2024. As a percentage of net sales, SG&A increased to 28.1% from 27.8% seen in the year-ago quarter. This increase was largely due to planned investments and the timing of the rise in incentive compensation as TSCO lapped lower accruals in the last year and a lower sale-leaseback benefit. Such factors were partly offset by its focus on productivity and leveraged fixed costs. Our model predicted SG&A expenses to increase 8% and as a percentage of sales, this metric was anticipated to expand 20 bps to 24.8%.
Operating income for the quarter grew 5.6% year over year to $342.7 million. Meanwhile, the operating margin fell 20 bps to 9.2%. We estimated operating income to increase 6.6% and the operating margin to contract 10 bps to 9.3%.
TSCO’s Financial Position
Tractor Supply ended the quarter with cash and cash equivalents of $184.6 million, long-term debt of $1.74 billion and total stockholders’ equity of $2.57 billion. In the nine months ended Sept. 27, 2025, net cash provided by operating activities was $1.31 billion. In the same period, the company incurred a capital expenditure of $629.2 million.
In the third quarter, Tractor Supply returned $197.3 million to shareholders. This included the repurchase of 1.3 million shares of its common stock for $75.4 million and the payment of $121.9 million in quarterly cash dividends.
In the third quarter of 2025, the company continued to expand its footprint by opening 29 Tractor Supply stores. One Petsense by Tractor Supply store was closed during the period.
Sneak Peek Into TSCO’s Outlook
Following the year-to-date performance and comps view of up 1-5% for the fourth quarter, management has revised its guidance for 2025.
The company now expects net sales growth of 4.6-5.6% and comps growth of 1.4-2.4%. It had earlier anticipated net sales growth of 4-8% and comps rise of 0-4%.
The operating margin rate is projected between 9.5% and 9.7%. Net income is expected to be between $1.09 billion and $1.14 billion, with earnings per share (EPS) anticipated to be $2.06-$2.13. The operating margin rate was earlier projected between 9.5% and 9.9%. Net income was then expected to be between $1.07 billion and $1.17 billion, with EPS to be $2.00-$2.18.
This Zacks Rank #3 (Hold) company’s shares have gained 11.9% in the past three months compared with the industry’s 22.3% growth.
Eye These Solid Picks in Retail
Urban Outfitters URBN, a lifestyle specialty retailer that offers fashion apparel and accessories, currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Urban Outfitters’ current financial-year sales indicates growth of 5.5% from the year-ago figure. URBN delivered an average earnings surprise of 24.8% in the last four quarters.
Genesco Inc. GCO operates as a retailer and wholesaler of footwear, apparel and accessories, sporting a Zacks Rank of 1 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 #2 (Buy). 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.
Radical New Technology Could Hand Investors Huge Gains
Quantum Computing is the next technological revolution, and it could be even more advanced than AI.
While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.
Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.
Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.
See Top Quantum Stocks Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Tractor Supply's Q3 Earnings Beat Mark, Sales Rise on Solid Comps

Dollar Tree, Inc. DLTR continues to implement strategic initiatives aimed at elevating customers’ shopping experience and driving overall growth.
The company is focused on its operational strategy while highlighting financial guidance at its 2025 Investor Day. This will involve discussions about its products, customers, stores, supply chain and workforce, as well as a vision for growth at Dollar Tree as a standalone banner. Let’s discover more.
More on DLTR’s Latest Announcement
At the event, the executive team’s presentations will include aspects like developing a more relevant assortment, a new era for the company, establishing a highly-connected customer store experience, evolving the supply chain and delivering disciplined growth and returns.
The session will also feature the company’s three-year financial view, generating 12-15% compounded annual growth rate in earnings per share (EPS) for fiscal years 2026-2028. This is based on an underlying yearly EPS growth rate of 8-10%, bolstered by the elimination of discrete cost items associated with the tariff mitigation, multi-price store conversions, lost distribution capacity and the divestiture of Family Dollar.
For fiscal 2026, EPS is likely to grow by a high-teens percentage, thanks to the timing of some discrete cost benefits. For the third-quarter-to-date, comparable same-store sales (comps) grew 3.8% and DLTR bought back 2.8 million shares for $271 million. Dollar Tree has reaffirmed its third-quarter and fiscal 2025 guidance, issued on Sept. 3.
For fiscal 2025, it continues to project net sales from continuing operations of $19.3-$19.5 billion, supported by comps growth of 4-6%. Adjusted EPS from continuing operations was then projected to be $5.32-$5.72, including the year-to-date share repurchase impacts. For the third quarter of fiscal 2025, Dollar Tree had envisioned adjusted EPS being similar to the third quarter of fiscal 2024. Management cited that the company’s EPS view for the third quarter and the current fiscal year has not been adjusted for gains from third-quarter share repurchases.
Image Source: Zacks Investment Research
Dollar Tree’s progress on optimizing its store portfolio through store openings, renovations, re-banners and closings bodes well. It is benefiting from higher traffic trends and market share gains. The company has unveiled its new partnership with Uber Eats, highlighting a strategic move in meeting customers’ needs and facilitating the way they want to shop. This collaboration provides access to Uber Eats' 25 million customers, which is a newer demographic that the company has yet to completely tap into. In addition, the company is executing on growth, productivity and cost control. Shares of this current Zacks Rank #2 (Buy) company have gained 21.3% in the past six months compared with the industry’s growth of 2%.
Eye These Solid Picks in Retail Too
Urban Outfitters URBN, a lifestyle specialty retailer that offers fashion apparel and accessories, currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Urban Outfitters’ current financial-year sales indicates growth of 5.5% from the year-ago figure. URBN delivered an average earnings surprise of 24.8% in the last four quarters.
Genesco Inc. GCO operates as a retailer and wholesaler of footwear, apparel and accessories, sporting a Zacks Rank of 1 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.
Free Report: Profiting from the 2nd Wave of AI Explosion
The next phase of the AI explosion is poised to create significant wealth for investors, especially those who get in early. It will add literally trillion of dollars to the economy and revolutionize nearly every part of our lives.
Investors who bought shares like Nvidia at the right time have had a shot at huge gains.
But the rocket ride in the "first wave" of AI stocks may soon come to an end. The sharp upward trajectory of these stocks will begin to level off, leaving exponential growth to a new wave of cutting-edge companies.
Zacks' AI Boom 2.0: The Second Wave report reveals 4 under-the-radar companies that may soon be shining stars of AI’s next leap forward.
Access AI Boom 2.0 now, absolutely free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Dollar Tree Reaffirms FY25 View, Strategic Initiatives Seem Encouraging

Ross Stores, Inc. ROST continues to strengthen its presence by introducing new stores and enhancing its operational capabilities. The company is expanding across the existing and new markets while investing in infrastructure to drive long-term growth. In the latest development, ROST has concluded its store-expansion plans for fiscal 2025 by opening 40 stores recently.
The company has inaugurated 36 Ross Dress for Less (Ross) and four dd's DISCOUNTS outlets in 17 various states this September and October. Including the latest openings, ROST has added 90 new stores in the current fiscal year. Together, Ross Dress for Less and dd's DISCOUNTS currently operate a total of 2,273 locations in 44 states, the District of Columbia, Guam and Puerto Rico, and 364 dd's DISCOUNTS stores across 22 states.
At Ross Dress for Less, the company expanded its footprint in the Midwest and the Northeast, with store openings in Michigan, New Jersey and New York, alongside enhancing its presence in the sunbelt states. At dd's, ROST bolstered its footprint across the core markets of California and Texas. The company continues to benefit from positive customer response for its merchandise across both banners, recording broad-based strength across nearly all merchandise categories and most regions.
Such openings underscore ROST’s commitment to driving growth via store expansion while enhancing overall sales and profitability. These have also been boosting comparable store sales (comps). In second-quarter fiscal 2025, the company’s top line improved 5% year over year, supported by a 2% gain in comps. For the third and fourth quarters of fiscal 2025, it anticipates comps growth of 2-3% each. Our model projects comparable sales growth of 2.9% in the third quarter and 2.0% in the fourth quarter of fiscal 2025.
Ross Stores had earlier raised its store-expansion targets for the long term. With such robust store openings, management is confident of accomplishing at least 2,900 Ross Dress for Less and 700 dd's DISCOUNTS stores over time. Combined with its resilient off-price retail model, such efforts are expected to drive incremental sales and enhance overall profitability.
Image Source: Zacks Investment Research
Shares of this Zacks Rank #3 (Hold) company have gained 21.3% against the industry’s 0.3% drop in the past three months.
Eye These Solid Picks in Retail
Urban Outfitters URBN, a lifestyle specialty retailer that offers fashion apparel and accessories, currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Urban Outfitters’ current financial-year sales indicates growth of 5.5% from the year-ago figure. URBN delivered an average earnings surprise of 24.8% in the last four quarters.
Genesco Inc. GCO operates as a retailer and wholesaler of footwear, apparel and accessories, sporting a Zacks Rank of 1 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 #2 (Buy). 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.
Zacks Names #1 Semiconductor Stock
This under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.
See This Stock Now for Free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Will Ross Stores' Store-Expansion Strategy Help Boost Profitability?

Why Did Direct-to-Consumer Retailers Stumble?

Underappreciated Rule-Breaking Small-Cap Stocks

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.
Image Source: Zacks Investment Research
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.
#1 Semiconductor Stock to Buy (Not NVDA)
The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.
One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.
See This Stock Now for Free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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.
Radical New Technology Could Hand Investors Huge Gains
Quantum Computing is the next technological revolution, and it could be even more advanced than AI.
While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.
Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.
Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.
See Top Quantum Stocks Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
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 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.
Quantum Computing Stocks Set To Soar
Artificial intelligence has already reshaped the investment landscape, and its convergence with quantum computing could lead to the most significant wealth-building opportunities of our time.
Today, you have a chance to position your portfolio at the forefront of this technological revolution. In our urgent special report, Beyond AI: The Quantum Leap in Computing Power, you'll discover the little-known stocks we believe will win the quantum computing race and deliver massive gains to early investors.
Access the Report Free Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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.
#1 Semiconductor Stock to Buy (Not NVDA)
The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.
One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.
See This Stock Now for Free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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%.
Only $1 to See All Zacks' Buys and Sells
We're not kidding.
Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.
Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.
See Stocks Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.