FIGS, Inc.

Сильный индекс, значительно упал. Оптимистичный взгляд на свои позиции резко сменился на неуверенность.

Strong index, significantly down. An optimistic view of his position suddenly changed to uncertainty.

Сильный индекс, незначительно вырос. Рынок не поддерживает быков.

Strong index, slightly up. The market does not support the bulls.

Средний индекс, незначительно вырос. Отток средств из лонгов на высоком уровне.

Medium index, slightly up. Outflow of funds from longs at a high level.

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.
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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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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.
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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.
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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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FIGS, Inc. (FIGS) : Free Stock Analysis Report
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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FIGS, Inc. (FIGS) : Free Stock Analysis Report
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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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Tapestry's Direct-to-Consumer Model Emerges as a Key Growth Driver

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FIGS (FIGS) Q2 2026 Earnings Call Transcript

Tapestry, Inc. TPR reported fourth-quarter fiscal 2026 results, with adjusted earnings beating the Zacks Consensus Estimate while revenues met expectations. The company's bottom line benefited from robust Coach brand momentum, broad-based geographic growth, higher margins and disciplined cost management. Tapestry achieved its Investor Day revenues, operating margin and earnings targets two years ahead of schedule.
TPR posted adjusted earnings of $1.32 per share, which surpassed the Zacks Consensus Estimate of $1.26 by 4.8%. The bottom line increased 26.9% from adjusted earnings of $1.04 reported in the year-ago quarter.
Revenues of $1.88 billion matched the Zacks Consensus Estimate and increased 9% year over year. Excluding the Stuart Weitzman business, pro forma revenues increased 12% year over year on a reported basis and 11% on a constant-currency basis.
The company added more than 2.5 million new consumers globally during the quarter, with approximately 35% of new customers coming from Gen Z. Tapestry continued to benefit from strength in its core leathergoods business. Coach handbag average unit retail (“AUR”) increased at a mid-teens percentage rate during the quarter, reflecting continued pricing and product momentum.
Tapestry, Inc. Price, Consensus and EPS Surprise
Tapestry Leans on Coach as Kate Spade Lags
Coach revenues reached $1.64 billion, met the Zacks Consensus Estimate and rose 15% year over year and 14% in constant currency. Handbag unit volumes were roughly flat, while footwear delivered high-teens growth. The brand also acquired more than 2 million new customers during the quarter.
Kate Spade sales declined 7% to $235.1 million, surpassing the consensus estimate of $232 million. The brand added more than 450,000 new customers, who transacted at higher AURs than the broader customer base. Management cited improving handbag performance and better conversion and average transaction value at lightly renovated stores.
TPR Posts Broad-Based Regional Growth
Regional performance was broad-based. North America revenues increased 7% on a constant-currency basis, while Greater China revenues increased 28%. Europe revenues advanced 19% and Other Asia increased 22%. Japan remained a weak spot, with revenues declining 4% on a constant-currency basis. Coach delivered double-digit revenue growth in every quarter of fiscal 2026, including 14% in the fiscal fourth quarter.
Direct-to-consumer revenues increased 11% on a pro forma constant-currency basis in the quarter. Digital revenues grew at a mid-single-digit rate, while store revenues increased at a mid-teens rate, highlighting continued strength across Tapestry's consumer-facing channels.
TPR Expands Margins Despite Tariff Headwinds
Adjusted gross profit increased 11% year over year to $1.47 billion. The adjusted gross margin expanded 180 basis points to 78.1%, supported by roughly 170 basis points of operational improvement and a 60-basis-point benefit from the Stuart Weitzman divestiture. Tariffs and duties created a 60-basis-point headwind.
Adjusted operating income increased 25% year over year to $362 million. Meanwhile, the adjusted operating margin expanded 250 basis points to 19.3%.
Adjusted SG&A expenses totaled $1.05 billion. As a percentage of sales, adjusted SG&A expenses leveraged 80 basis points year over year. The quarter included a 130-basis-point increase in marketing investment.
TPR’s Fiscal Q4 Store Update
As of the end of the fiscal fourth quarter, the company operated 336 Coach stores and 178 Kate Spade stores in North America. Internationally, the store count stood at 637 for Coach and 148 for Kate Spade stores.
Tapestry Converts Profit to Cash & Returns Capital
Cash generation strengthened, supported by higher profitability and working-capital discipline. The operating cash flow was $522.2 million in the fiscal fourth quarter. The adjusted free cash flow totaled $492.6 million in the quarter, while capital expenditures amounted to $53.2 million.
At fiscal year-end, cash, cash equivalents and short-term investments totaled $1.15 billion, compared with total borrowings of $2.38 billion. Inventory ended fiscal 2026 at $826.2 million compared with $860.7 million a year earlier. Tapestry's gross-debt-to-adjusted-EBITDA leverage ratio was 1.1X, reflecting its balance-sheet position following a year of stronger earnings and cash generation.
Tapestry returned $1.7 billion to its shareholders during fiscal 2026 through dividends and share repurchases. The company paid $326 million in dividends and repurchased $1.35 billion of common stock, buying back about 11.5 million shares at an average price of approximately $118.
The board approved a 16% dividend increase, lifting the quarterly payout to 46.25 cents per share and the anticipated annual rate to $1.85. TPR expects to repurchase another $1.35 billion of common stock in fiscal 2027.
TPR’s Q1 Fiscal 2027 Outlook
For the first quarter of fiscal 2027, Tapestry expects revenues to grow at a high-single-digit rate on both a nominal and constant-currency basis compared with the prior-year pro forma revenues. Foreign currency is expected to provide a 30-basis-point tailwind to revenue growth. By brand, Coach revenues are expected to increase at a low-teens rate, while Kate Spade revenues are projected to decline at a low-double-digit rate.
Gross margin is expected to expand approximately 120 basis points, while operating margin is expected to remain in line with the prior-year period. SG&A expense deleverage is expected to be entirely attributable to increased marketing investments. Adjusted EPS is expected to be approximately $1.55, representing a low-teens increase compared with the prior year.
TPR’s Fiscal 2027 Financial Outlook
For fiscal 2027, Tapestry expects revenues to be in the range of $8.4-$8.5 billion, representing mid-single-digit growth on a nominal and constant-currency basis. Foreign currency is expected to provide a 40-basis-point tailwind to revenue growth.
By brand, Coach revenues are expected to grow at a high-single-digit rate, while Kate Spade revenues are projected to decline at a high-single-digit rate. Gross margin is expected to increase approximately 30 basis points, while SG&A is projected to provide approximately 20 basis points of leverage. As a result, operating margin is expected to expand 50 basis points. At the brand level, Coach is expected to maintain an operating margin of nearly 36%, while Kate Spade is projected to report a modest operating loss.
Tapestry expects adjusted EPS of $7.80-$7.90, representing low-double-digit growth compared with the prior year. Adjusted free cash flow is expected to approach $1.7 billion, with CapEx and cloud computing costs in the area of $300 million, or approximately 3% to 4% of revenues.
The outlook excludes the impact of the 53rd week, which is expected to contribute an additional percentage point to annual revenue growth while having a neutral impact on operating margin for the full fiscal year. It embeds a mid-20% tariff rate on U.S. inventory receipts, resulting in a neutral net impact from tariffs year over year. Tapestry assumes no material worsening of inflationary pressures or consumer confidence. The fiscal 2027 outlook remains consistent with the company’s long-term commitment to deliver mid-single-digit revenue growth and low-double-digit EPS growth.
TPR Stock Past Three-Month Performance
Image Source: Zacks Investment Research
Shares of the company have gained 18.3% over the past three months compared with the industry’s 8.6% growth.
Zacks Rank & Key Picks
The company currently has a Zacks Rank of 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 (Buy) 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 indicates growth of 57.9% 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 implies 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%.
The Gap, Inc. GAP is a premier international specialty retailer offering a diverse range of clothing, accessories and personal care products. It carries a Zacks Rank #2.
The Zacks Consensus Estimate for Gap’s current fiscal-year earnings and sales indicates growth of 9.9% and 1.1%, respectively, from the year-ago actuals. GAP delivered a trailing four-quarter average earnings surprise of 2%.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Tapestry Q4 Earnings Beat on Coach Growth & Margin Expansion

Jack in the Box Inc. JACK posted operating earnings of 96 cents per share in the third quarter of fiscal 2026, down 7.7% from $1.04 a year ago, but beat the Zacks Consensus Estimate of 90 cents by 6.7%. Restaurant-level margin edged lower amid commodity inflation and a shift in restaurant mix.
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Quarterly revenues fell 1.8% year over year to $257.7 million, missing the consensus mark of $260 million by 0.9%. Systemwide same-store sales declined 1.1%, as lower transactions were partly offset by higher pricing.
JACK's Same-Store Sales Show a Smaller Decline
Comparable sales remained negative, but the decline was smaller than in the prior-year quarter. Franchise same-store sales fell 1.2% versus a 7.2% decline a year ago, while company-operated comps decreased 0.9% compared with a 6.4% drop.
At company-operated restaurants, average check rose 1%, while transactions declined 1.9%. Menu price increases were approximately 3.5% in the quarter. Systemwide restaurant sales fell to $944.1 million from $957.8 million a year earlier, with franchised restaurant sales decreasing to $847.8 million from $863.7 million.
Jack in the Box Revenue Mix Shows Franchise Pressure
Company restaurant sales increased 2.3% to $96.3 million from $94.1 million. Franchise rental revenues declined 4.6% to $73 million, while franchise royalties and other revenues fell 3.4% to $43.1 million.
Lower percentage rent, fewer franchised restaurants and lower lease termination fees weighed on rental revenues. Franchise-level margin was $60.4 million, or 37.4% of franchise revenues, versus $66.15 million, or 39.3%, a year ago, reflecting lower sales, fewer restaurants and higher bad debt expense. The system ended the fiscal third quarter with 2,115 restaurants after four openings and 17 closures.
JACK's Restaurant Margins Reflect Commodity Inflation
Restaurant-level margin was $16.99 million, or 17.6% of company restaurant sales, compared with $16.86 million, or 17.9%, a year earlier. Food and packaging costs rose to 29.3% of sales from 28.6%, as commodity inflation reached 5.4%, led by beef, tacos, produce and beverages.
Payroll and employee benefit costs improved to 33.7% of sales from 34.5%, driven primarily by the rollover of additional federal unemployment taxes in California, partly offset by restaurant mix and 1.8% labor inflation. Occupancy and other costs rose 30 basis points to 19.3%, reflecting sales deleverage, higher rent and increased third-party delivery fees.
Jack in the Box SG&A Falls on Legal Reversal
Selling, general and administrative expenses declined to $17 million from $20.5 million. Lower legal costs from a litigation reversal and lower stock-based compensation due to forfeitures more than offset an unfavorable $4.20 million swing in company-owned life insurance policy values and higher incentive compensation.
Other operating income, net, was $3.1 million versus other operating expense of $4.5 million a year ago, primarily backed by higher gains on real estate sales. Adjusted EBITDA increased to $61.20 million from $57.15 million.
JACK's Balance Sheet Focus Stays on Debt Reduction
Debt management remained a key capital allocation priority. During the quarter, JACK prepaid $110 million of its Series 2019-1 Class A-2-II notes using excess company-owned life insurance funding and cash on hand. The company also issued $500 million of Series 2026-1 Class A-2 notes and used the proceeds to refinance portions of existing securitized debt.
Total debt stood at $1.43 billion at quarter-end. Cash and restricted cash totaled $71.8 million. Year-to-date cash flow from operating activities was $56.6 million compared with $118.2 million a year earlier, while capital expenditures totaled $44.1 million.
Jack in the Box Updates FY26 Outlook
Management updated fiscal 2026 guidance to a restaurant count of approximately 2,100, including about 25 openings and 50 to 60 closures, most of them franchised. Company-owned restaurant-level margin is projected at approximately 16.5%, incorporating mid-single-digit commodity inflation and low-single-digit wage inflation.
Franchise-level margin is expected to be approximately $265 million. SG&A is forecast at $112 million to $115 million, while adjusted EBITDA is projected at $225 million to $230 million. The company maintained its low-single-digit same-store sales decline outlook and capital expenditure guidance of $45 million to $55 million.
JACK’s Zacks Rank & Key Picks
Jack in the Box currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Zacks Retail-Wholesale sector have been discussed below.
BJ's Restaurants, Inc. BJRI currently sports a Zacks Rank #1 (Strong Buy). The company delivered a trailing four-quarter earnings surprise of 127.9%, on average. BJRI stock has surged 76.2% year to date. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for BJ's Restaurants’ 2026 sales and EPS indicates year-over-year growth of 4% each.
Five Below, Inc. FIVE presently carries a Zacks Rank #2 (Buy). The company delivered a trailing four-quarter earnings surprise of 70.1%, on average. FIVE stock has gained 29.6% year to date.
The Zacks Consensus Estimate for Five Below’s 2027 sales and EPS indicates growth of 15.1% and 36.1%, respectively, from the year-ago period’s levels.
FIGS, Inc. FIGS has a Zacks Rank #2 at present. The company delivered a trailing four-quarter earnings surprise of 201.8%, on average. FIGS stock has risen 26.8% year to date.
The Zacks Consensus Estimate for FIGS’ 2026 sales and EPS indicates growth of 18.2% and 57.9%, respectively, from the prior-year levels.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

JACK Q3 Earnings Top Estimates, Revenues Miss as Same-Store Sales Fall

On Holding AG ONON reported second-quarter 2026 results, with both earnings and revenues missing the Zacks Consensus Estimate. On a year-over-year basis, adjusted earnings improved and net sales increased, supported by strong direct-to-consumer (“DTC”) growth, robust Asia-Pacific momentum and continued apparel strength. The company raised its 2026 gross margin outlook while maintaining its adjusted EBITDA margin guidance.
ONON reported adjusted earnings of 35 cents per share, missing the Zacks Consensus Estimate of 44 cents by 20.5%. Net sales came in at CHF 850.3 million, below the consensus estimate of CHF 1,114 million by 23.7%. Net sales increased 13.5% year over year and rose 21.6% on a constant-currency basis. Adjusted EPS Class A (CHF) improved to 35 cents from a loss of 9 cents in the year-ago quarter.
On Holding AG Price, Consensus and EPS Surprise
ONON's Quarterly Performance: Key Metrics & Insights
The company continued to witness strong momentum in its DTC business. DTC revenues increased 26% year over year to CHF 388.4 million, or 34.3% on a constant-currency basis, with growth exceeding expectations across every region. The DTC business reached a second-quarter high of 45.7% of total net sales, supported by continued strength across On's own retail stores and expanding global store network.
Wholesale revenues increased 4.8% year over year to CHF 461.9 million, or 12.7% on a constant-currency basis. The company continued to emphasize disciplined full-price selling and premium brand positioning amid a promotional marketplace.
Global brand awareness rose to 30%, while consumers under age 34 represented more than one-third of the customer base. On Holding recently opened its first stores in São Paulo and Copenhagen, extending its network of premium retail locations.
On Holding’s Profitability Improves Despite Tariffs
Gross profit increased 20.6% year over year to CHF 555.7 million. Gross margin expanded 390 basis points to 65.4% from 61.5%, despite the company fully absorbing higher U.S. import tariffs and excluding any tariff refunds. Selling, general and administrative expenses increased to CHF 436.3 million from CHF 368 million. Adjusted EBITDA increased 23.5% year over year to CHF 168.1 million, while adjusted EBITDA margin expanded 160 basis points to 19.8% from 18.2%.
Net income was CHF 105 million against a loss of CHF 40.9 million in the year-ago quarter, with net income margin improving to 12.3% from negative 5.5%. Adjusted net income was CHF 117.6 million against a loss of CHF 29.7 million a year ago.
ONON's Regional Performance
Asia-Pacific delivered the strongest performance, with revenues increasing 43.1% year over year to CHF 170.5 million, or 54.7% on a constant-currency basis. The region again represented more than 20% of total company sales, supported by standout momentum across Japan, South Korea and Greater China.
EMEA revenues increased 15.4% year over year to CHF 228.2 million, or 20.5% on a constant-currency basis, reflecting continued growth across the region.
Americas revenues increased 4.5% year over year to CHF 451.6 million. On a constant-currency basis, sales increased 13%.
ONON Product Performance Reflects Broad Consumer Demand
Footwear remained the largest contributor to sales, with revenues increasing 10.9% year over year to CHF 781.6 million. On a constant-currency basis, footwear sales rose 18.9%.
Apparel revenues increased 47.7% to CHF 54.2 million, or 56.2% at constant currency. Accessories revenues climbed 88.3% to CHF 14.5 million, with constant-currency growth of 102.2%, underscoring faster expansion outside the core footwear category.
The company is also advancing its running innovation pipeline. It recently launched the Cloudboom Strike 2 and plans to debut its new SURREAL superfoam in the Cloudsurfer 3 later this year, while expanding LightSpray technology into additional core franchises.
ONON's Financial Position
The company ended the second quarter with cash and cash equivalents of CHF 1.21 billion compared with CHF 1.02 billion at the end of 2025. Net working capital increased 11.5% to CHF 635.9 million from CHF 570.3 million.
For the first six months of 2026, cash inflow from operating activities increased to CHF 255 million from CHF 89.1 million a year earlier. Investing activities used CHF 47.2 million, while financing activities used CHF 43.3 million.
What to Expect From ONON in 2026?
Following a strong first half of 2026, management expects constant-currency net sales growth in the low-20% range for the year. At current spot rates, this implies reported net sales of CHF 3.47 billion to CHF 3.56 billion. The company expects DTC to strongly outperform wholesale in the second half as it deliberately manages wholesale sell-in to protect full-price integrity and create a clean runway for upcoming breakthrough innovations.
On Holding raised its gross margin outlook to at least 65%, reflecting a favorable DTC mix, full-price discipline and operational efficiencies. The outlook excludes any benefits from anticipated tariff refunds in the second half of the year.
Management reiterated its adjusted EBITDA margin guidance of 19.5% to 20% while continuing to invest in future growth opportunities. The company remains focused on pursuing high-quality growth while maintaining its premium positioning.
ONON Stock Past Three-Month Performance
Image Source: Zacks Investment Research
Shares of this Zacks Rank 3 (Hold) company have risen 14.6% over the past three months compared with the industry’s 15.6% growth.
Key Picks
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 (Strong Buy) stocks here.
The Zacks Consensus Estimate for FIGS’ current financial-year earnings and sales suggests growth of 42.1% and 18.2%, respectively, from the year-ago actuals. FIGS delivered a trailing four-quarter average earnings surprise of 201.8%.
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