FIGS, Inc.

Слабый индекс, значительно вырос. Быки резко повысили уверенность, но она не на высоком уровне.

Weak index, significantly up. Bulls have seen a sharp increase in confidence, but it is not at a high level.

Сильный индекс, без изменений. Рынок на стороне быков.

Strong index, flat. The market is on the bulls' side.

Средний индекс, значительно упал. Отток средств из лонгов резко увеличился и находится на высоком уровне.

Medium index, significantly down. The outflow of funds from longs has increased sharply and is at a high level.

Stitch Fix, Inc. SFIX reported a narrower-than-expected adjusted loss for the fourth quarter of fiscal 2026, while revenues fell slightly short of the Zacks Consensus Estimate. Revenues and revenue per active client increased year over year, but the active-client count declined. Shares fell 17.7% in after-hours trading on Sept. 23, as the company’s cautious fiscal 2027 outlook weighed on sentiment.
Management expects a more challenging consumer environment and higher client acquisition costs to temper growth in fiscal 2027. Its adjusted EBITDA outlook also reflects planned investments in advertising and technology, including artificial intelligence.
Stitch Fix, Inc. Price, Consensus and EPS Surprise
More on Stitch Fix’s Q4 Results
SFIX reported an adjusted loss of 1 cent per share, narrower than the Zacks Consensus Estimate of an adjusted loss of 6 cents and the year-ago adjusted loss of 7 cents. On a GAAP basis, the company reported a loss of 2 cents per share compared with a loss of 7 cents a year earlier.
Net revenues of $324.4 million increased 4.2% from $311.2 million a year earlier, but came in just below the $325 million consensus estimate. The quarter marked the company’s sixth consecutive quarter of year-over-year revenue growth.
Active clients totaled 2.277 million, down 1.4% both year over year and sequentially. Revenue per active client reached a record $592, up 7.8% from the prior-year quarter. Fix average order value rose 4.9%, supported by more items per Fix and a favorable assortment mix. Both the women’s and men’s Fix businesses grew, with the men’s business posting double-digit growth for the fifth consecutive quarter.
Across the women’s and men’s businesses, activewear and athleisure sales increased 21% year over year, while footwear grew 14%. Client retention improved sequentially for the eighth consecutive quarter. Management said higher acquisition costs weighed on its ability to attract and re-engage clients.
Insight Into SFIX’s Margins & Expenses
In the fiscal fourth quarter, this Zacks Rank #3 (Hold) company’s gross profit rose 4.2% year over year to $141.4 million, while gross margin held steady at 43.6%. Stitch Fix said inventory management helped offset higher transportation costs and investments in new merchandise categories.
Selling, general and administrative expenses declined to $145.7 million from $146.9 million a year earlier. Advertising represented 9.9% of revenues. The operating loss narrowed to $4.4 million from $11.2 million.
Adjusted EBITDA increased to $10.8 million from $8.7 million in the prior-year quarter, exceeding the company’s $7-$10 million guidance range. Adjusted EBITDA margin improved to 3.3% from 2.8%. Management attributed the guidance beat largely to lower fixed operating expenses.
SFIX’s Financial Snapshot
Stitch Fix ended fiscal 2026 with $220.9 million in cash, cash equivalents and investments, and no debt. The company generated $9.1 million in operating cash flow and $4.4 million in free cash flow during the fourth quarter.
SFIX repurchased 2.7 million shares for $11.3 million in the fourth quarter. For fiscal 2026, it bought back 7.2 million shares for $26.4 million, leaving $93.6 million under the existing authorization.
SFIX Caps Fiscal 2026 With Better Profitability
Full-year net revenues increased 6.4% to $1.35 billion, marking the company's first full year of revenue growth since fiscal 2021. Gross margin was 43.7%, down 70 basis points year over year.
Adjusted EBITDA increased to $53.4 million from $49.1 million, while adjusted EBITDA margin edged up to 4% from 3.9%. The full-year net loss narrowed to $12.6 million from $28.8 million, and free cash flow increased to $19.8 million from $9.3 million.
Stitch Fix’s FY’27 Guidance
For the first quarter of fiscal 2027, management expects revenues of $323-$328 million, implying a year-over-year decline of 5.6% to 4.1%. Adjusted EBITDA is projected at $3-$6 million.
The first-quarter outlook reflects two temporary factors affecting Fix volume. Some shipments were moved from the first quarter of fiscal 2027 into the fourth quarter of fiscal 2026. An unintended August change to the post-checkout offer flow also limited the number of clients eligible to request another Fix. Management said the issue has been corrected and will not affect results beyond the first quarter.
For fiscal 2027, Stitch Fix expects revenues to be in the range of $1.31-$1.36 billion, representing a year-over-year change ranging from a 2.8% decline to 0.9% growth. Adjusted EBITDA is forecast at $27-$42 million compared with $53.4 million in fiscal 2026. Management expects gross margin of 43-44% and positive free cash flow for the year. The outlook reflects a lower active-client starting point, a more challenging consumer environment and planned growth investments.
SFIX Stock Past Three-Month Performance
SFIX stock has lost 34.4% over the past three months compared with the industry’s 12.8% decline.
Stocks to Consider
Genesco Inc. GCO is a Nashville-based specialty retailer and branded company. It sells footwear and accessories through retail stores. The company flaunts a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Genesco’s current fiscal-year earnings indicates growth of 62.1% from the year-ago actuals. GCO delivered a trailing four-quarter average earnings surprise of 11.2%.
Designer Brands Inc. DBI designs, produces and retails footwear and accessories. It offers shoes, boots, sandals, sneakers, socks, handbags and accessories. It currently carries a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for Designer Brands’ current fiscal-year earnings and sales suggests growth of 225% and 0.6%, respectively, from the year-ago actuals. DBI delivered a trailing four-quarter average earnings surprise of 108.1%.
FIGS, Inc. FIGS is an apparel company focused on the healthcare industry. Its offerings include lab coats, jackets, footwear, bags, socks and other accessories used by healthcare professionals. The company also carries a Zacks Rank #2 at present.
The Zacks Consensus Estimate for FIGS’ current financial-year earnings and sales suggests growth of 89.5% and 19.7%, respectively, from the year-ago actuals. FIGS delivered a trailing four-quarter average earnings surprise of 201.8%.
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FIGS, Inc. (FIGS) : Free Stock Analysis Report

Stitch Fix Stock Falls 18% Despite Narrower Q4 Loss & Higher Revenues

Chipotle Mexican Grill, Inc. CMG is strengthening its restaurant leadership pipeline as it works toward its long-term goal of operating 7,000 restaurants across the United States and Canada. With more than 4,200 restaurants as of June 30, 2026, the company expects to open 350-370 new restaurants in 2026 and aims to place an Apprentice in each company-owned restaurant by the end of 2027. Apprentices currently support roughly three-quarters of Chipotle’s restaurants.
The expanded Apprentice program is strategically important as Chipotle scales its footprint. Apprentices provide additional leadership during peak periods, develop Crew Members for future management roles and help General Managers distribute responsibilities more effectively. They also support training and digital execution, while restaurants with Apprentices generally achieve better operational scores. More than 85% of Chipotle’s restaurant managers began their careers as Crew Members, highlighting the company’s emphasis on developing leaders internally.
Chipotle is further strengthening its talent pipeline through its Cultivate Education program with Guild. Nearly 25,000 employees have enrolled over the past decade, while participants experience substantially lower turnover and are promoted more frequently than non-participants. The initiative complements the Apprentice program by helping build the management bench needed to support continued restaurant expansion.
Chipotle’s Expansion Strategy Gains Scale
Chipotle continues to support unit growth through investments in operations, technology and talent. In the second quarter of 2026, it opened 100 company-owned restaurants, while new restaurant productivity remained around 80% and year-two cash-on-cash returns were approximately 60%. These economics reinforce management’s confidence in the long-term opportunity to operate at least 7,000 restaurants across North America.
Chipotle is also reinforcing restaurant execution through enhanced training and more strategic deployment of General Managers and Apprentices during busy dayparts. These efforts have contributed to higher guest-satisfaction scores, improved digital on-time performance and fewer refunds, while General Manager turnover remains at a multiyear low.
Shares of CMG have gained 9.3% in the past three months, outperforming the Zacks Retail - Restaurants industry’s 7.2% decline. The company’s second-quarter results benefited from positive transaction growth, menu innovation, the revamped Rewards program and targeted restaurant investments. However, inflation, higher marketing expenses, wage pressure and continued investments in the guest experience weighed on restaurant-level margins.
CMG’s Zacks Rank & Key Picks
Chipotle currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Zacks Retail-Wholesale sector have been discussed below.
Cracker Barrel Old Country Store, Inc. CBRL currently sports a Zacks Rank #1 (Strong Buy). The company delivered a trailing four-quarter earnings surprise of 128.6%, on average. CBRL stock has surged 77.8% year to date. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Cracker Barrel's 2026 sales and EPS indicates a year-over-year decline of 5.3% and 97.8%, respectively, from the prior-year levels.
Five Below, Inc. FIVE currently sports a Zacks Rank #1. The company delivered a trailing four-quarter earnings surprise of 68.3%, on average. FIVE stock has gained 25.4% year to date.
The Zacks Consensus Estimate for Five Below’s fiscal 2027 sales and EPS indicates growth of 19.4% and 55.6%, respectively, from the year-ago period’s levels.
FIGS, Inc. FIGS has a Zacks Rank #2 (Buy) at present. The company delivered a trailing four-quarter earnings surprise of 201.8%, on average. FIGS stock has risen 16.9% year to date.
The Zacks Consensus Estimate for FIGS’ 2026 sales and EPS indicates growth of 19.7% and 89.5%, respectively, from the prior-year levels.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This innovative software-as-a-service firm upped its user base +22% year over year. That rate is increasing and margins are expanding as AI efficiencies take effect. Of course, all our elite picks aren't winners, but this one could far surpass earlier Zacks' Stocks Set to Double like D-Wave Quantum, which shot up +680.1%.
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FIGS, Inc. (FIGS) : Free Stock Analysis Report

Chipotle Expands Apprentice Program to Support 7,000-Restaurant Goal

Last Friday, the three benchmark stock indexes on Wall Street closed a losing week. The Dow Jones Industrial Average, the S&P 500 and the Nasdaq Composite slipped 1.6%, 0.8% and 0.7% respectively.
The weekly decline was primarily due to a sharp rise in oil prices amid escalating Middle East tensions, which heightened inflation concerns and pushed Treasury yields higher. The 10-year yield approached 5%, increasing fears that the Fed could maintain a restrictive stance despite an expected September rate hike.
Technology stocks showed relative resilience, helped by strength in AI-related shares, while Friday's retreat in crude and in-line CPI data sparked a broad rebound.
Regardless of market conditions, we, here at Zacks, provide investors with unbiased guidance on how to beat the market.
As usual, Zacks Research guided investors over the past three months with its time-tested methodologies. Given the prevailing market uncertainty, you may want to look at our feats to prepare better for your next action.
Here are some of our key achievements:
FIGS and Charles River Laboratories Surge Following Zacks Rank Upgrade
Shares of FIGS, Inc. FIGS have gained 33.5% (versus the S&P 500’s 2% increase) since it was upgraded to a Zacks Rank #2 (Buy) on July 14.
Another stock, Charles River Laboratories International, Inc. CRL, which was also upgraded to a Rank #2 on July 14, has returned 21.1% since then.
A portfolio of Zacks # 1 Rank (Strong Buy) stocks has outperformed the S&P 500 index by 2.3 percentage points this year. Through August 3rd this year, the Zacks # 1 Rank portfolio returned +12.08%, which compares to a +9.78% gain for the S&P 500 index and a +10.41% gain for the equal-weight version of the index in the same time period.
Since its inception in 1988, this portfolio of Zacks # 1 Rank stocks has outperformed the market by 12.4 percentage points. The average annual return for this portfolio of Zacks # 1 Rank stocks since inception in 1988 was +23.9% through August 3rd, which compares to a +11.5% gain for the S&P 500 index and a +11.3% gain for the equal-weight version of the index.
Check FIGS’ historical EPS and Sales here>>>
Check Charles River’s historical EPS and Sales here>>>
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Zacks Recommendation Upgrades Grupo Cibest and Amphenol
Shares of Grupo Cibest S.A. CIB and Amphenol Corporation APH have surged 28.4% and 9.6% (versus the S&P 500’s 1.8% rise), respectively, since their Zacks Recommendation was upgraded to Outperform on June 26 and July 17.
While the Zacks Rank is our short-term rating system that is most effective over the one- to three-month holding horizon, the Zacks Recommendation aims to predict performance over the next 6 to 12 months. However, just like the Zacks Rank, the foundation for the Zacks Recommendation is trends in earnings estimate revisions.
The Zacks Recommendation classifies stocks into three groups — Outperform, Neutral and Underperform. While these recommendations are determined quantitatively, our analysts have the flexibility to override them for the 1100+ stocks they closely follow based on their better judgment of factors such as valuation, industry conditions and management effectiveness than the quantitative model.
To access our research reports with Zacks Recommendations for the 1100+ stocks we cover, click here>>>
Zacks Focus List Stocks Microsoft, CACI International Shoot Up
Shares of Microsoft Corporation MSFT, which belongs to the Zacks Focus List, have soared 26.8% over the past 12 weeks. The stock was added to the Focus List on February 1, 2016. Another Focus-List holding, CACI International Inc. CACI, which was added to the list on December 2, 2015, has returned 19.6% over the past 12 weeks. The S&P 500 has advanced 3.1% over this period.
The 50-stock Focus List portfolio returned +19.86% in the year-to-date period (through August 31, 2026) vs. +13.14% for the S&P 500 index and +15.59% for the equal-weight version of the index.
The portfolio returned +22.1% in 2025 vs. +17.9% for the S&P 500 index and +11.4% for the equal-weight version of the index.
The Zacks Focus List portfolio returned +18.41% in 2024 vs. +25.04% for the S&P 500 index and +13% for the equal-weight S&P 500 index. The portfolio had returned +29.54% in 2023 vs. +26.28% for the S&P 500 index and +13.61% for the equal-weight S&P 500 index. In 2022, the portfolio returned -15.2% vs. the S&P 500 index’s -17.96%.
Through August 31, 2026, the portfolio’s rolling returns on a one-year, three-year, five-year, ten-year, and since 2004 have been +28.7% (vs. +20.4% for the S&P 500 index), +24.1% (vs. +21.1%), +13.6% (vs. +12.8%), +17.1% (vs. +15.4%) and +12.7% vs. (+11%), respectively.
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Zacks ECAP Stocks Automatic Data Processing & Accenture Gain Significantly
Automatic Data Processing, Inc. ADP, a component of our Earnings Certain Admiral Portfolio (ECAP), has jumped 18.6% over the past 12 weeks. Accenture plc ACN followed Automatic Data with 8% returns.
The Zacks Earnings Certain Admiral Portfolio (ECAP), which consists of 30 concentrated, ultra-defensive, long-term Buy-and-Hold stocks, returned -9.4% in the first half of 2026 (through June 30th) vs. +10.2% for the S&P 500 index.
For 2025, the portfolio returned -1.67% vs. a +17.9% gain for the S&P 500 index. For the year 2024, the portfolio returned +16.26% vs. +24.89% for the S&P 500 index (SPY ETF). In 2023, the portfolio returned +12.17% vs. +26.28% for the S&P 500 index. The portfolio returned -4.7% in 2022 vs. the S&P 500 index’s -17.96%.
With little to no turnover and annual rebalance periodicity, ECAP seeks to minimize capital loss by holding shares of companies whose earnings streams exhibit a proven 20+ year track record of surviving recessionary periods with minimal impact on aggregate earnings growth relative to the overall S&P 500.
The ECAP and many other model portfolios are available as part of Zacks Advisor Tools, a cloud-based solution to access Zacks award-winning stock, mutual fund and ETF research. Click here to schedule a demo.
Zacks ECDP Stocks Paychex & Intercontinental Exchange Outperform Peers
Paychex, Inc. PAYX, which is part of our Earnings Certain Dividend Portfolio (ECDP), has returned 15.1% over the past 12 weeks. Another ECDP stock, Intercontinental Exchange, Inc. ICE, has climbed 12% over the same time frame. Of course, the inclination of investors toward quality dividend stocks to secure an income stream amid heightened market volatility contributed to this performance.
With an extremely low beta and a history of minimum earnings variability over the last 20+ years, this 25-stock portfolio helps significantly mitigate risk.
The Zacks Earnings Certain Dividend Portfolio (ECDP) returned -1.7% in the first half of 2026 (through June 30th) vs. +10.2% for the S&P 500 index and +9.03% for the Dividend Aristocrats ETF (NOBL).
The portfolio returned -0.6% in 2025 vs. a +6.8% gain for the Dividend Aristocrats ETF. For the full year 2024, the portfolio returned +6.95% vs. +24.89% for the S&P 500 index and +6.72% for NOBL. The portfolio returned -0.9% in 2023 vs. +26.28% for the S&P 500 index and +8.11% for NOBL. The portfolio returned -2.3% in 2022 vs. -17.96% for the S&P 500 index and -8.34% for NOBL.
Click here to access this portfolio on Zacks Advisor Tools.
Zacks Top 10 Stock FirstCash Delivers Solid Returns
FirstCash Holdings, Inc. FCFS, from the Zacks Top 10 Stocks for 2025, has jumped 45.7% since January 5, 2026, compared with the S&P 500 Index’s 11.9% increase.
The Top 10 portfolio returned +15% in the year-to-date 2026 period (through August 31st) vs. +12.9% for the S&P 500 index and +14.8% for the equal-weight version of the index.
The Top 10 portfolio returned +22.6% in 2025 vs. +17.9% for the S&P 500 index and +11.4% for the equal-weight version of the index.
The Top 10 portfolio returned +62.98% in 2024, vs. +25.04% for the S&P 500 index and +13% for the equal-weight version of the index. The portfolio had returned +25.15% in 2023 vs. +26.28% for the S&P 500 index.
Through the end of August 2026, the Top 10 portfolio has produced a cumulative return of +2,881.3% since 2012 vs. +648.5% for the S&P 500 index and +481.7% for the equal-weight version of the index. The portfolio has produced an average annual return of +25.8% in the period 2012 through August 31, 2026, vs. +13.6% for the S&P 500 index and +11.3% for the equal-weight version of the index.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
Of course, all our elite picks aren't winners, but this one could far surpass earlier Zacks' Stocks Set to Double like D-Wave Quantum, which shot up +680.1%.
Free: See Our Top Stock And 4 Runners Up
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
FIGS, Inc. (FIGS) : Free Stock Analysis Report

Beat the Market the Zacks Way: FIGS, Microsoft, Amphenol in Focus

American Eagle Outfitters, Inc. AEO posted second-quarter fiscal 2026 earnings of 79 cents per share, up 75.6% year over year and above the Zacks Consensus Estimate of 21 cents by 276.2%. Net revenues rose 7.5% to $1.38 billion and beat the consensus mark of $1.37 billion by 1%.
The earnings beat was aided by tariff-refund benefits, while Aerie and OFFLINE momentum supported sales growth. Consolidated comparable sales increased 6%, and American Eagle showed sequential improvement from the first quarter.
American Eagle’s shares have lost 8.5% in the past three months compared with the industry’s 17.3% decline.
AEO's Brand Sales Show Uneven Momentum
Aerie revenues increased 25% year over year to $535.8 million, while comparable sales advanced 19%. Management cited broad-based strength across channels and categories, including core apparel, intimates and activewear. OFFLINE also benefited from demand for Cloud Fleece, sports bras and bottoms.
American Eagle brand revenues rose 0.7% to $805.9 million, but comparable sales declined 1%. Men's delivered its fourth consecutive quarter of positive comps. Women's fashion bottoms and newer denim fits gained traction, though the company is still rebalancing older and seasonal inventory.
We had expected Aerie revenues to grow 19.4% year over year to $512.5 million, while AE revenues to dip 1% to $792.1 million.
American Eagle Outfitters, Inc. Price, Consensus and EPS Surprise
American Eagle's Margins Get Refund Boost
Gross profit climbed 34.4% year over year to $672.1 million, while gross margin expanded 980 basis points to 48.7%. A net $179 million tariff-refund benefit in gross profit contributed 1,300 basis points to the margin expansion. Merchandise margins deleveraged 330 basis points, with Aerie improvement offset by American Eagle markdowns.
Selling, general and administrative expenses increased 19% to $408.4 million and rose 290 basis points, as a percentage of sales, to 29.6%. The quarter included $18 million of tariff refund-related incentive compensation expense. The remaining increase primarily reflected planned advertising investments.
Operating income rose 105.1% year over year to $211.4 million, while operating margin increased 730 basis points to 15.3%. The quarter included a $161 million net operating income benefit from tariff refunds.
American Eagle's Balance Sheet Shows Inventory Build
This Zacks Rank #1 (Strong Buy) company ended the quarter with $148 million in cash and cash equivalents. Total liquidity, including the revolver, was $783 million. Merchandise inventory was $817.9 million, up 13.9% year over year, while units increased 9%.
Capital expenditures were $66 million in the quarter. The company also returned $21 million to shareholders through its quarterly cash dividend of 12.5 cents per share.
AEO's Q3 Guide Points to Continued Aerie Growth
For the fiscal third quarter, AEO expects comparable sales growth in the mid-to-high single digits. Management sees Aerie and OFFLINE comps in the high teens to 20% range, while American Eagle is expected to be approximately flat.
Gross margin is projected to be roughly flat year over year, with SG&A expenses rising in the high-single digits. Operating income is forecast between $110 million and $115 million.
American Eagle's Fiscal 2026 Outlook Includes Refunds
For fiscal 2026, the company expects comparable sales to increase in the mid-single digits and gross margin to rise year over year. SG&A expenses are projected to grow in the low-double digits, while depreciation and amortization is expected to be about $215 million.
Operating income is forecast between $540 million and $550 million, inclusive of tariff-refund benefits, with a weighted average share count in the low 170 million range. Capital expenditures are expected between $250 million and $260 million.
More Key Picks in Retail
FIGS, Inc. FIGS is an apparel company focused on the healthcare industry. Its offerings include lab coats, jackets, footwear, bags, socks and other accessories used by healthcare professionals. The company carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for FIGS’ current financial-year earnings and sales suggests growth of 89.5% and 18.2%, respectively, from the year-ago actuals. FIGS delivered a trailing four-quarter average earnings surprise of 201.8%.
Boot Barn Holdings, Inc. BOOT is the largest lifestyle retailer in the United States, specializing in western and work-related footwear, apparel and accessories. The company also carries a Zacks Rank of 2 at present.
The Zacks Consensus Estimate for Boot Barn’s current fiscal-year earnings and sales suggests growth of 22.6% and 15.7%, respectively, from the year-ago actuals. BOOT delivered a trailing four-quarter average earnings surprise of 11.4%.
Fossil Group, Inc. FOSL is involved in designing, marketing and distributing consumer fashion accessories. It also carries a Zacks Rank of 2.
The Zacks Consensus Estimate for Fossil Group’s current fiscal-year earnings suggests growth of 96.7% from the year-ago actuals. FOSL delivered an earnings surprise of 55.2% in the last reported quarter.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
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FIGS, Inc. (FIGS) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).

American Eagle Q2 Earnings Beat on Tariff Refunds, Aerie Strength

Victoria’s Secret & Company’s VSXY PINK grew at a high-single-digit rate, marking its fifth consecutive quarter of growth, with increasing strength across its core categories, including bras, panties and apparel. The company sees significant opportunity to build on this momentum through the back half and beyond, with PINK representing the focus of its next strategic pillar. Efforts to sharpen PINK’s identity are gaining traction, as the brand builds a clearer personality, stronger brand codes and a deeper connection with customers.
The company’s renewed confidence in PINK is supported by signs of stronger customer resonance. Management said that it has a clearer understanding of what customers want from PINK: products that are comfortable, expressive and connected to meaningful moments. The approach starts with PINK’s established icons, which are being refreshed through new silhouettes, fabrics, colors and fashion. This keeps the core familiar while continuing to introduce newness and maintain customer interest.
PINK is using customer insights to create new growth opportunities, with Marshmallow serving as a strong example. The product addresses demand for all-day comfort while remaining fun and fashionable. Its four new frames, with features like easy sizing, wireless support and soft fabrication, were launched digitally through a broad network of creators. The combination drove outsized results following the launch, reinforcing management’s view that bras can become an increasingly important growth engine for PINK. Apparel has also delivered eight consecutive quarters of growth, with management expecting intimates and apparel to reach an approximately 50-50 mix over time.
Overall, PINK’s stronger customer resonance, progress across key product categories and continued brand development give management confidence in the opportunity ahead. With multiple product categories contributing to growth and significant runway still available, the company sees room to build further on PINK’s recent momentum.
The Zacks Rundown for VSXY
Shares of this Zacks Rank #1 (Strong Buy) company have gained 57.1% in the past three months against the industry’s decline of 9.5%.
From a valuation standpoint, VSXY trades at a forward price-to-earnings ratio of 14.01, higher than the industry’s average of 12.73.
The Zacks Consensus Estimate for VSXY’s current and next fiscal year earnings implies a year-over-year rise of 57.3% and 23.8%, respectively.
Other Stocks to Consider
Some other top-ranked stocks have been discussed below:
FIGS, Inc. FIGS operates as a direct-to-consumer healthcare apparel and lifestyle company in the United States and internationally. At present, FIGS carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for FIGS’s current fiscal-year sales and earnings implies growth of 18.2% and 89.5%, respectively, from the year-ago figures. FIGS has delivered a trailing four-quarter earnings surprise of 201.8%, on average.
Fossil Group, Inc. FOSL designs, develops, markets, and distributes consumer fashion accessories in the United States, Europe, Asia, and internationally. At present, FOSL carries a Zacks Rank of 2.
The Zacks Consensus Estimate for FOSL’s current fiscal-year sales indicates a decline of 4%, while the same for earnings indicates growth of 96.7% from the year-ago figures. FOSL delivered a trailing four-quarter negative earnings surprise of 236.2%, on average.
Boot Barn Holdings, Inc. BOOT operates specialty retail stores in the United States and internationally. At present, Boot Barn carries a Zacks Rank of 2.
The consensus estimate for Boot Barn’s current fiscal-year sales and earnings implies growth of 15.7% and 22.6%, respectively, from the year-ago figures. BOOT delivered a trailing four-quarter earnings surprise of 11.4%, on average.
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 >>
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FIGS, Inc. (FIGS) : Free Stock Analysis Report

Can Victoria's Secret Keep PINK Growing After Five Strong Quarters?

Breakfast News: Week in Review
1. The Cheapest AI Yet Squeezes the Companies Selling It
Tokens serve as the billing unit that AI models use for their services. On Monday, a million tokens could be purchased for $0.97. That's a record low, and less than half the summer high, according to Silicon Data's index of token prices. Low-priced tokens benefit anyone executing queries but create difficulties for those selling the resulting answers.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Prices fall; bills don't: Cheap Chinese open-source models and price cuts at the biggest labs helped drive the slide. Those labs' computing bills are already committed, so they don't shrink when a query gets cheaper.
Two of those labs want to sell shares: Anthropic and OpenAI both filed confidentially for initial public offerings this summer. Each has to pitch investors on a business whose price per unit is falling.
Microsoft will soon make volume visible: For the first time, Microsoft (NASDAQ: MSFT) will report revenue in dollars for Azure, the computing power it rents to other companies. That number moves with how much customers actually use.
The build-out pays off in the future only if usage increases faster than the price per unit declines. Microsoft's new Azure line will show whether that's happening.
2. Nvidia Is Spending Like the Easy Years Are Over
Nvidia (NASDAQ: NVDA) confirmed on Thursday that it will spend $13 billion to buy Hugging Face, the hub where developers publish and test open-source AI models. Nvidia once sold every chip it made to buyers with no alternative. Now those buyers have one, so Nvidia is spending to stay central anyway.
The seller made the first call: Hugging Face CEO Clément Delangue said he approached Nvidia over the summer, not the reverse; even a thriving platform felt it needed a giant's backing. The deal is expected to close in the first half of 2027, pending regulatory approval.
Nvidia wrote another check on Monday: It put $3.5 billion into Taiwanese chip designer MediaTek, whose parts will plug into Nvidia systems. That keeps Nvidia in the chain even when a buyer picks a rival chip.
Nvidia holds the lease under someone else's deal: Hut 8 (NASDAQ: HUT) will develop the Texas data center behind the $35 billion Anthropic-Lambda deal. Nvidia backs Lambda, leases the site, and sells the chips that fill it.
More of Nvidia's sales now come from customers it helped fund. Owning it from here means trusting Nvidia to earn its keep across the whole stack.
3. Nvidia's Beat and a Telling Purchase
Nvidia (NASDAQ: NVDA) beat again. Revenue topped $96 billion, more than double a year ago, and the stock is up 9% since reporting. What lifted its shares? The CFO guiding for 70% revenue growth in 2028. But our analyst Emily Flippen calls Nvidia "a lagging indicator of the AI buildout, not a leading one." Its reported revenue just confirms spending that the market already knew about. But the more revealing news came Thursday, when Nvidia revealed what's on its shopping list.
The deal: Nvidia reportedly agreed to buy Hugging Face, the open-source hub where developers publish and test AI models, for about $13 billion. It's Nvidia's largest acquisition ever, at roughly 86 times the target's sales.
Why that price isn't incredibly high: Nothing is expensive against Nvidia's scale. Flippen notes Nvidia could buy Hugging Face seven times over using cash already set aside to repurchase its own stock. She also flags this as a defensive hedge. Nvidia's biggest customers are starting to design their own chips. Whoever owns the platform developers download models from can steer them toward rival hardware. Nvidia is paying to keep that door shut.
We've recommended Nvidia more than 30 times and never sold. In fact, a $10,000 stake invested in 2005, when we first recommended Nvidia in Stock Advisor, is worth about $13 million today. But the build-out that made it can't grow forever, and this deal is a tell that Nvidia knows the easy years are behind it. What we're watching now is whether it can defend its lead as well as it once extended it.
3. Snowflake, Sezzle, and FIGS All Sounded Like Bad Ideas
Three of this week's Breakfast News statements went back to an earlier recommendation. We issued each one before the market came around.
Snowflake went nowhere for five years. Our first Rule Breakers recommendation of Snowflake (NYSE: SNOW), May 2021 at $245.15, is up 45% and trails the S&P 500. Hidden Gems recommended it in June 2022 at $138.24. That call is up about 158%. It's still a Buy in Hidden Gems and Rule Breakers.
Sezzle carried its industry's stigma. Wall Street treated buy now, pay later as a subprime accident waiting to happen. We first recommended Sezzle (NASDAQ: SEZL) in August 2024 at $21.32, and shares have more than quintupled. It turns 61% of revenue into free cash flow, a software-like rate.
FIGS is the newest of the three. Scrubs maker FIGS (NYSE: FIGS) disappointed for years after its 2021 IPO. We recommended it in Rule Breakers in June 2026 at $12.22. Revenue rose nearly 29% year over year in the second quarter.
Sezzle paid for its industry's reputation. Snowflake and FIGS had their own bad years. None of that told you what any of those businesses is worth today.
4. Uber Is Lobbying Against the Robotaxis It's Funding
Uber (NYSE: UBER) said Wednesday that it will cut 10% of its workforce, roughly 3,300 jobs, to flatten management. CEO Dara Khosrowshahi framed it as freeing capacity for a planned $10 billion-plus push into autonomous vehicles. He didn't blame AI, unlike most tech CEOs who cut staff this year.
Then Uber lobbied to slow robotaxis down: It joined driver unions in New Jersey and Washington, D.C., to push for rules that keep human drivers in most self-driving rides. In New Jersey, it wants at least 85% of rides to have a person behind the wheel. Alphabet's (NASDAQ: GOOG) Waymo says the 85% minimum solves a problem that doesn't exist.
The rule would bite Waymo hardest: One tracker counts just over 200 Tesla (NASDAQ: TSLA) vehicles registered as unsupervised, against Waymo's 4,000 across 14 cities. Tesla teased a Cybercab event Wednesday, and shares rose 5.5% that day.
The Rule Breakers recommendation is outperforming the S&P 500 by more than 250% since July 2022. Uber is spending $10 billion on a fleet it doesn't have yet. The thesis needs the rules to slow Waymo down long enough for Uber to close that gap.
5. MongoDB Beat, Raised Guidance, and Fell 15%
MongoDB (NASDAQ: MDB) sells the database where applications keep their data. Its Atlas cloud service is now where AI coding agents read and write live data, too. Our Rule Breakers recommendation reported Tuesday night. The quarter beat estimates, management raised its full-year outlook, and shares fell almost 15%.
Growth accelerated, and margins followed: Revenue rose 30% year over year in the fiscal second quarter, the best in several years. Adjusted operating margin reached 24%, up from 15%.
Then management forecast a slower third quarter: That gave investors an excuse to sell after a string of blowout quarters.
The payoff runs a step behind the build-out. Software like MongoDB's gets used after the servers are installed. It launched a service connecting coding agents like Claude Code and OpenAI's Codex to live Atlas data. Contracted future revenue climbed 91% to $1.52 billion, so the demand is booked.
These results show that the market has stopped paying in advance for AI demand. It wants revenue collected rather than contracted. Holding MongoDB means trusting those signed commitments to arrive on schedule.
6. The Week Ahead
The August jobs report landed this morning. Strong hiring makes a rate hike more likely, and higher rates hit expensive AI stocks hardest. Those stocks are priced on profits that won't arrive for years. Federal Reserve Governor Christopher Waller said on Thursday that he'd lean toward holding steady this month. Odds of a September hike fell to 50.4% from 63.2% a day earlier, close to a coin flip.
Oil keeps inflation in the picture: Crude near $92 keeps the pressure on, and consumer and producer price reports land next week.
Then management forecast a slower third quarter: That gave investors an excuse to sell after a string of blowout quarters.
Four recommendations report: Chewy (NYSE: CHWY) reports on Wednesday morning and AeroVironment (NASDAQ: AVAV) on Wednesday afternoon. Oracle (NYSE: ORCL) and Adobe (NASDAQ: ADBE) follow on Thursday afternoon.
7. Your Take
MongoDB beat estimates this week, and its stock fell 15% anyway. When a company's payoff keeps sliding further out, how do you decide whether to keep holding or revisit your thesis?
Debate with friends and family, or become a member to hear what your fellow Fools are saying!
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The Motley Fool has positions in and recommends Adobe, AeroVironment, Alphabet, Chewy, Figs, Microsoft, MongoDB, Nvidia, Oracle, Sezzle, Snowflake, and Tesla. The Motley Fool recommends Uber Technologies and recommends the following options: long January 2028 $330 calls on Adobe and short January 2028 $340 calls on Adobe. The Motley Fool has a disclosure policy.
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

Breakfast News: Week in Review

Best Buy Co., Inc. BBY reported better-than-expected second-quarter fiscal 2027 results, with both the top and bottom lines rising year over year. Both metrics surpassed the Zacks Consensus Estimates.
BBY posted adjusted earnings of $1.48 per share, which increased 70.1% from 87 cents a year ago and beat the Zacks Consensus Estimate of $1.37 by 8%.
Best Buy Co., Inc. Price, Consensus and EPS Surprise
Revenues rose 3.6% to $9.78 billion from $9.44 billion, topping the consensus mark of $9.56 billion by 2.2%. The performance reflected broad category growth and improved profitability. Enterprise comparable sales increased 4.1% compared with growth of 1.6% in the year-ago quarter.
BBY's Category Trends Support Sales Momentum
Domestic comparable sales advanced 4.5% in the second quarter compared with 1.1% growth a year ago. Computing and mobile phones comps increased 6.8% compared with 3.8%, while consumer electronics rose 5.6% compared to a 5.2% decline in the prior-year quarter.
Services comparable sales grew 6.4% versus 3.7%, and appliances edged up 0.2% compared with a 9.2% decline a year ago. Entertainment fell 6.3% after increasing 39.3% in the prior-year period. Management identified computing, home theater and emerging categories such as AI glasses and trading cards as the largest weighted growth drivers, partly offset by weakness in traditional gaming.
Best Buy's Domestic Business Drives Growth
Domestic revenues increased 4.3% to $9.07 billion from $8.70 billion in the year-ago quarter. Domestic comparable online sales rose 5.1% in the second quarter, matching the rate recorded a year earlier. Online sales represented 33.1% of domestic revenues compared with 32.8% previously.
Domestic gross profit increased to $2.18 billion from $2.03 billion in the reported quarter, while the gross profit rate expanded to 24% from 23.4%. The improvement reflected growth in Marketplace and Best Buy Ads and approximately $34 million of IEEPA tariff refunds, partly offset by lower product margin rates.
BBY's Profitability Improves Despite Higher Expenses
Consolidated gross profit rose to $2.34 billion from $2.19 billion, with gross margin improving to 23.9% from 23.2%. SG&A expenses increased to $1.92 billion from $1.83 billion and represented 19.7% of revenues compared with 19.4% a year earlier.
Operating income increased to $421 million from $251 million, while the operating margin expanded to 4.3% from 2.7%. Adjusted operating income rose to $417 million from $369 million, with the adjusted margin increasing to 4.3% from 3.9%. BBY recorded a $6 million reduction in restructuring charges compared with $114 million of charges a year ago.
Best Buy's International Business Softens
International revenues declined 4.2% to $709 million from $740 million in the second-quarter. Comparable sales decreased 1.8% compared with growth of 7.6% in the year-ago quarter. The company attributed the revenues decline primarily to lower comparable sales and the negative impact of foreign exchange rates.
International gross profit declined to $158 million compared with $161 million, though the gross profit rate improved to 22.3% from 21.8%. Adjusted SG&A increased to $145 million from $143 million and represented 20.5% of revenues versus 19.3%. Adjusted operating income declined to $13 million from $18 million, while the corresponding margin fell to 1.8% from 2.4%.
BBY's Cash Flow and Liquidity Strengthen
For the first six months of fiscal 2027, cash provided by operating activities increased to $1.30 billion from $783 million a year ago. Additions to property and equipment were $344 million compared with $341 million in the prior-year period.
Cash and cash equivalents stood at $2.26 billion at quarter end compared with $1.46 billion a year earlier. Merchandise inventories increased to $6.30 billion from $5.82 billion. During the first six months, BBY paid $405 million in dividends versus $403 million a year ago and spent $36 million on share repurchases compared with $165 million.
Best Buy Raises Fiscal 2027 Outlook
Best Buy raised its fiscal 2027 revenue guidance to $42.3-$42.8 billion from its prior forecast of $41.2-$42.1 billion. Comparable sales are now expected to increase 1.9-3% compared with the previous outlook ranging from a 1% decline to 1% growth.
The company increased its adjusted earnings outlook to $6.70-$6.90 per share from $6.30-$6.60 and raised its adjusted operating income rate forecast to 4.4-4.5% from 4.3-4.4%. Capital expenditures remain projected at approximately $750 million, unchanged from the prior outlook. Management attributed the higher annual guidance to strong first-half performance and momentum entering the second half.
This Zacks Rank #3 (Hold) company’s shares have gained 17% over the past three months, in line with the industry's growth.
Stocks to Consider
Some better-ranked stocks have been discussed below:
FIGS, Inc. FIGS operates as a direct-to-consumer healthcare apparel and lifestyle company in the United States and internationally. The company currently carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for FIGS’ current fiscal-year sales and earnings implies growth of 18.2% and 89.5%, respectively, from the year-ago figures. FIGS has delivered a trailing four-quarter earnings surprise of 201.8%, on average.
Fossil Group, Inc. FOSL designs, develops, markets and distributes consumer fashion accessories in the United States, Europe, Asia and internationally. At present, FOSL carries a Zacks Rank of 2.
The Zacks Consensus Estimate for FOSL’s current fiscal-year sales indicates a decline of 4%, while the consensus mark for earnings indicates growth of 96.7% from the year-ago figures. FOSL delivered a trailing four-quarter negative earnings surprise of 236.2%, on average.
Boot Barn Inc. BOOT operates specialty retail stores in the United States and internationally. Boot Barn currently carries a Zacks Rank of 2.
The consensus estimate for Boot Barn’s current fiscal-year sales and earnings implies growth of 15.7% and 22.6%, respectively, from the year-ago figures. BOOT delivered a trailing four-quarter earnings surprise of 11.4%, on average.
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This article originally published on Zacks Investment Research (zacks.com).

Best Buy Q2 Earnings Beat Estimates as Comparable Sales Rise 4.1%

Urban Outfitters, Inc. URBN reported strong second-quarter fiscal 2027 results, with earnings matching the Zacks Consensus Estimate, while revenues surpassed the consensus mark. Also, both metrics improved from the prior-year quarter’s reported figures. The company delivered record second-quarter sales and profits, marking its eighth consecutive quarter of record performance. As a result, shares of URBN increased 9.5% yesterday.
Management highlighted broad-based momentum across the Retail, Subscription and Wholesale segments, along with continued customer engagement and disciplined execution. All Retail segment brands posted positive comparable sales growth, while Nuuly continued to scale rapidly on strong subscriber growth. The Wholesale segment delivered robust double-digit gains, led by the FP Group.
Urban Outfitters, Inc. Price, Consensus and EPS Surprise
URBN’s Quarterly Performance
This lifestyle specialty retailer delivered adjusted earnings per share of $1.72, in line with the Zacks Consensus Estimate. Adjusted earnings increased 8.9% year over year. The company’s earnings per share were $2.78 compared with $1.58 in the prior-year quarter.
Net sales increased 10.4% year over year to $1,661.9 million, beating the consensus mark of $1,648 million. The sales performance benefited from strength across Retail, Wholesale and Subscription operations.
URBN Delivers Record Revenues on Segment Momentum
Total Retail segment net sales rose 8% year over year to $1.39 billion, while comparable Retail segment sales increased 6.2%. Growth in comparable sales was driven by high-single-digit gains in digital channel sales and mid-single-digit growth in retail store sales. Comparable Retail segment sales increased 10% at FP Group, 8.4% at Urban Outfitters and 3% at Anthropologie. We estimated the Retail segment’s sales to increase 7.4% year over year.
Within the FP Group, total sales increased 15% year over year to $478.1 million, driven by continued momentum across both Retail and Wholesale operations. Free People and FP Movement continued to benefit from strong customer demand, while the FP Group Wholesale segment delivered a 19% increase in revenues. Urban Outfitters posted an 8% comparable-sales increase, supported by strength across North America and Europe.
The Wholesale segment posted net sales growth of 18.6%, driven by a 19.2% increase in FP Group wholesale sales due to higher sales to specialty customers and department stores.
Nuuly, the company’s women’s apparel subscription rental service, continued to witness strong momentum. Subscription segment net sales increased 28.6% year over year to $178.6 million, primarily driven by a 30.4% increase in average active subscribers. Average active subscribers reached 484,000 during the quarter, while the subscriber base crossed 500,000 in early June. We estimated the Nuuly segment’s sales to rise 18.7% year over year.
Urban Outfitters Expands Gross Margin on Sales Growth
Gross profit rose 27.4% year over year to $721.6 million in the fiscal second quarter, mainly driven by higher net sales during the period. However, the reported gross margin increased 580 basis points year over year to 43.4%, which beat our estimate of 37.4% and benefited from a $95.7-million IEEPA tariff refund.
Adjusted gross margin increased 4 basis points to 37.7%. The improvement was primarily driven by benefits from store occupancy costs from higher comparable Retail store sales and leverage in delivery expenses from initiatives that helped offset fuel-surcharge costs. These benefits were partly offset by higher Retail markdowns at Anthropologie and the negative impacts of tariffs and inbound freight fuel surcharges on initial merchandise costs.
Selling, general and administrative (SG&A) expenses increased 10.5% year over year to approximately $433 million. Our model estimated SG&A expenses to increase 8.8% year over year in the fiscal second quarter. The increase was primarily driven by higher marketing investments to support customer growth and increased sales in the Retail and Subscription segments, along with higher store payroll expenses. These increases were partly offset by leverage in store payroll expenses resulting from higher Retail store sales. The company continued to invest in artificial intelligence technology to support its current and future operations. As a percentage of net sales, SG&A expenses remained flat at 26%, which met our estimate.
URBN reported adjusted operating income of $193.1 million, up 11% from $174.4 million in the prior-year quarter. The adjusted operating margin improved 3 basis points year over year to 11.6%, reflecting the increase in adjusted gross margin.
Urban Outfitters Showcases Store Growth
In the first six months of fiscal 2027, the company opened 23 stores and closed six stores. Store openings included four Anthropologie, seven Free People, 10 FP Movement and two Urban Outfitters stores, while closures included one Anthropologie, one FP Movement, three Urban Outfitters and one Menus & Venues location.
As of July 31, 2026, URBN operated 252 Urban Outfitters stores, 257 Anthropologie stores and 284 FP Group stores, including 97 FP Movement locations. The company operated eight Menus & Venues restaurants and nine franchisee-owned stores.
Urban Outfitters’ Financial Health Snapshot
As of July 31, 2026, Urban Outfitters had cash and cash equivalents of $598.8 million, up from $332.2 million in the prior-year period. Marketable securities totaled $346.8 million, while total shareholders’ equity stood at $2.85 billion at the quarter-end.
As of July 31, 2026, total inventory increased 11.8% year over year to $778.5 million. Total Retail segment inventory rose 12%, while comparable Retail segment inventory increased 8.4%. Wholesale segment inventory increased 10%. The increase in Retail inventory was primarily due to higher net sales and the timing of inventory receipts, while the increase in Wholesale inventory reflected higher sales.
During the first six months of fiscal 2027, the company repurchased and retired 4.6 million shares for approximately $300 million. As of July 31, 2026, 10 million common shares remained authorized for repurchase under the existing program.
URBN Lays Out Q3 2027 Targets
Urban Outfitters’ management expects third-quarter fiscal 2027 total company sales to grow in the high-single-digit range, supported by continued momentum across the Retail, Wholesale and Subscription businesses.
The Retail segment’s comparable sales are projected to increase in the mid-single-digit range, driven by high-single-digit growth at FP Group, mid-single-digit growth at Urban Outfitters and low-to-mid-single-digit growth at Anthropologie. Nuuly is expected to post high-twenties revenue growth, while the Wholesale segment is projected to generate low-teens growth.
For the fiscal third quarter, URBN expects the gross profit margin to increase 25-50 basis points year over year. The anticipated improvement primarily reflects higher initial merchandise margins due to lower tariffs and leverage in occupancy costs, partly offset by higher fuel surcharges.
Management anticipates fuel surcharges to continue affecting the business through the remainder of fiscal 2027. The company noted that these surcharges are expected to create an unfavorable impact through higher inbound freight and delivery expenses.
Management expects third-quarter SG&A expenses to grow in line with or slightly below sales growth, reflecting continued investments in marketing, technology and AI initiatives while benefiting from leverage in store payroll and occupancy expenses.
URBN’s FY’27 Outlook
For fiscal 2027, management maintains its expectation for positive high-single-digit total company sales growth. The outlook reflects continued momentum across the portfolio, with Retail comparable sales expected to grow in the mid-single-digit range, Nuuly revenues projected to increase in the high-20% range and Wholesale revenues anticipated to grow in the low-teens range.
URBN expects fiscal 2027 gross margin to expand by approximately 25 basis points year over year. Management sees an incremental margin opportunity in the second half, primarily from improved initial merchandise margins as tariff pressures moderate. However, fuel surcharges are expected to remain a headwind through the remainder of the fiscal year.
For the full year, SG&A is expected to grow in line with sales, while inventory growth is expected to remain at or below sales growth as the company continues to focus on improving product turns. Management also plans to continue investing in marketing, technology and AI initiatives to support customer acquisition and long-term growth.
Capital expenditures for fiscal 2027 are planned at approximately $475 million. Approximately 35% of spending is expected to be allocated to retail store expansion and support, 50% to logistics investments and the remaining 15% to technology investments and home-office expansion. The logistics investments are intended to expand capacity and automation across the Subscription and Retail businesses.
URBN expects to open approximately 54 new stores and close approximately 18 stores during fiscal 2027. Net new store growth is expected to be primarily driven by FP Movement. The company plans to open 21 FP Movement, 12 Free People, 12 Anthropologie and eight Urban Outfitters stores during the year.
URBN Stock Past Three-Month Performance
Management expressed confidence as it enters the second half, citing double-digit sales and profit growth at Free People and FP Movement, positive comparable sales at Anthropologie and high-single-digit comparable sales at Urban Outfitters in both North America and Europe. Management also emphasized URBN’s multi-brand strategy and structural diversification across brands, demographics, product categories, distribution channels and geographies.
Shares of the Zacks Rank #2 (Buy) company have gained 10.8% in the past three months against the industry’s 11.7% decline.
Other Stocks to Consider
FIGS, Inc. FIGS is an apparel company focused on the healthcare industry. Its offerings include lab coats, jackets, footwear, bags, socks and other accessories used by healthcare professionals. The company carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for FIGS’ current financial-year earnings and sales suggests growth of 89.5% and 18.2%, respectively, from the year-ago actuals. FIGS delivered a trailing four-quarter average earnings surprise of 201.8%.
Boot Barn Holdings, Inc. BOOT is the largest lifestyle retailer in the United States, specializing in western and work-related footwear, apparel and accessories. The company also holds a Zacks Rank #2 at present.
The Zacks Consensus Estimate for Boot Barn’s current fiscal-year earnings and sales suggests growth of 22.6% and 15.7%, respectively, from the year-ago actuals. BOOT delivered a trailing four-quarter average earnings surprise of 11.4%.
American Eagle Outfitters Inc. AEO is a specialty retailer of casual apparel, accessories and footwear. It carries a Zacks Rank of 2 at present.
The Zacks Consensus Estimate for American Eagle's current fiscal-year earnings and sales suggests growth of 17.3% and 5.7%, respectively, from the year-ago actuals. AEO delivered a trailing four-quarter average earnings surprise of 48.5%.
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This article originally published on Zacks Investment Research (zacks.com).

URBN Q2 Earnings Meet Estimates, Stock Up 9.5% on Broad-Based Growth

Tapestry, Inc. TPR is strengthening its consumer reach through a strong direct-to-consumer (DTC) platform spanning stores, outlets and digital channels. DTC represented approximately 87% of total net sales in fiscal 2026, underscoring its importance to the company’s business model. In the fourth quarter, DTC revenues increased 11% on a pro forma constant-currency basis, while digital revenues grew at a mid-single-digit rate and store revenues increased at a mid-teens rate, highlighting continued strength across Tapestry’s consumer-facing channels.
The company’s DTC performance was complemented by broad-based geographic momentum during the quarter. Pro forma revenues increased 11% on a constant-currency basis, while North America revenues grew 7%, Europe advanced 19% and total Asia-Pacific revenues increased 19%. Greater China was particularly strong, with revenues rising 28% on a constant-currency basis.
Tapestry is leveraging its direct consumer relationships to improve decision-making. Management highlighted data, decision intelligence and AI as differentiated strengths that enable the company to translate consumer insights into action at scale. This approach supports more informed decisions across the business and strengthens Tapestry’s connection with consumers.
The company is continuing to expand its digital reach across major markets. Tapestry operates e-commerce sites across North America, Greater China, Japan and Europe, while leveraging third-party digital platforms. Its global digital infrastructure provides additional avenues to reach consumers and complements its physical retail presence.
Management expects continued growth in fiscal 2027. Tapestry projects revenues to be in the range of $8.4-$8.5 billion, representing mid-single-digit growth, while adjusted EPS is expected to be $7.80-$7.90, reflecting low-double-digit growth. Operating margin is expected to expand by approximately 50 basis points, supporting the company’s outlook for continued profitable growth.
TPR’s Price Performance, Valuation & Estimates
Shares of Tapestry have risen 35.5% over the past year, significantly outperforming the industry, which has remained unchanged during the period.
From a valuation standpoint, TPR trades at a forward price-to-earnings ratio of 16.56X, above the industry’s average of 13.21X. It has a Value Score of A.
The Zacks Consensus Estimate for Tapestry’s fiscal 2027 earnings implies year-over-year growth of 12.2%, whereas the same for fiscal 2028 indicates an uptick of 9.8%. Earnings estimates for fiscal 2027 and 2028 have been increased by 13 cents and decreased by 8 cents, respectively, over the past seven days.
TPR’s Zacks Rank & Key Picks
Tapestry currently carries a Zacks Rank #3 (Hold).
FIGS, Inc. FIGS is an apparel company focused on the healthcare industry. Its offerings include lab coats, jackets, footwear, bags, socks and other accessories used by healthcare professionals. The company carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for FIGS’ current financial-year earnings and sales suggests growth of 89.5% and 18.2%, respectively, from the year-ago actuals. FIGS delivered a trailing four-quarter average earnings surprise of 201.8%.
Boot Barn Holdings, Inc. BOOT is the largest lifestyle retailer in the United States, specializing in western and work-related footwear, apparel and accessories. The company also holds a Zacks Rank #2 at present.
The Zacks Consensus Estimate for Boot Barn’s current fiscal-year earnings and sales suggests growth of 22.6% and 15.7%, respectively, from the year-ago actuals. BOOT delivered a trailing four-quarter average earnings surprise of 11.4%.
Fossil Group, Inc. FOSL is involved in designing, marketing and distributing consumer fashion accessories. It also carries a Zacks Rank #2.
The Zacks Consensus Estimate for Fossil Group’s current fiscal-year earnings suggests growth of 96.7% from the year-ago actuals. FOSL delivered a trailing four-quarter average negative earnings surprise of 236.2%.
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FIGS, Inc. (FIGS) : Free Stock Analysis Report

Tapestry's Direct-to-Consumer Model Emerges as a Key Growth Driver

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Indicator	Feb 26	Mar 26	Jun 26	Aug 26	Sep 26	TTM	Median
P/E	155.43	66.95	—	—	—	66.95	17.39
Price/Sales	4.64	4.04	2.80	—	—	2.80	0.66
P/B	6.14	5.72	3.83	5.75	5.19	5.19	1.68
P/FCF	—	67.81	19.47	29.19	26.37	26.37	12.74

Indicator	Feb 26	Mar 26	Jun 26	Aug 26	Sep 26	TTM	Median
ROE	—	9.77	14.39	—	—	14.39	15.36
ROA	—	7.44	10.92	—	—	10.92	4.97
ROI	—	0.00	0.00	—	—	0.00	8.47
Net Worth	—	2.90	2.00	2.99	—	2.99	0.82
Quick Ratio	—	3.65	—	—	—	3.65	0.85
Current Ratio	—	5.39	4.96	—	—	4.96	1.38

Indicator	Feb 26	Mar 26	Jun 26	Aug 26	Sep 26	TTM	Median
Net Profit Margin	—	6.15	8.72	—	—	8.72	5.79
Operating Margin	—	6.45	9.56	—	—	9.56	8.36
Gross Margin	—	66.42	68.78	—	—	68.78	39.57
Return on tangible equity	—	9.77	14.39	—	—	14.39	22.12

Indicator	Feb 26	Mar 26	Jun 26	Aug 26	Sep 26	TTM	Median
EPS	0.10	—	—	0.11	—	0.11	0.52
EPS Forecast	0.02	—	—	0.07	—	0.07	0.51
Revenue	—	160.00M	—	—	—	160.00M	193.00M
Gross Profit	—	108.00M	148.00M	—	—	148.00M	—
EBITDA	—	8.00M	38.00M	—	—	38.00M	—

FIGS, Inc.

Recent quarterly and TTM performance

Valuation

Debts

Efficiency

Other ratios

Revenue