Core Insights - Donna Karan New York is launching "The Edit," a fashion campaign featuring three influential women, Adriana Lima, Joan Smalls, and Grace Elizabeth, who curate and style pieces from the collection, emphasizing individuality and personal expression [1][5][9] Company Overview - Donna Karan New York, established in 1984, revolutionized women's fashion with the introduction of "Seven Easy Pieces," promoting effortless and empowering dressing [10] - The brand is currently owned by G-III Apparel Group, Ltd., which acquired it in 2016, and is undergoing a relaunch in 2024 while maintaining its original vision [10] Campaign Details - "The Edit" campaign blends storytelling with fashion, showcasing the distinct styles of the three women, each reflecting confidence and individuality through their curated selections [5][9] - Adriana Lima's edit features powerful yet restrained pieces, including a belted trench and lightweight suiting in light gray, projecting an intuitive confidence [6] - Joan Smalls focuses on constructed silhouettes in muted tones, combining city polish with everyday style, emphasizing line and proportion [7] - Grace Elizabeth's edit draws from the Donna Karan Weekend collection, featuring contemporary, streamlined looks in a light color palette, designed for comfort and movement [8] Product Availability - The Spring 2026 collection will be available in select North American retailers and on DonnaKaran.com starting February 12, 2026 [10] Brand Evolution - The campaign illustrates how Donna Karan New York evolves through the women who wear its designs, resonating authentically with modern consumers [9] - The brand aims to inspire confidence with timeless, versatile pieces that integrate seamlessly into daily life, expanding its distribution to reach a broader audience [10]

Core Concept - Hailey Bieber returns as the global face of DKNY, continuing the brand's narrative with a new campaign for Spring 2026 that emphasizes creativity and reinvention [1][6] Campaign Overview - The Spring 2026 campaign draws inspiration from the disruptive art scene of downtown New York in the 1960s, featuring Hailey Bieber in a black-and-white photo series showcasing the latest collection [4] - The campaign is set in an artist's loft, symbolizing a creative environment, with Hailey styled in various outfits that reflect a blend of contemporary and nostalgic New York fashion [5] Collection Details - The collection includes a range of styles such as a trench coat, denim shirt, tailored pants, and the "Naked Dress" in black, along with relaxed jeans and a blazer, all embodying a '90s attitude [5] - The color palette features monochromatic tones of black, white, beige, and denim, complemented by strong eyewear and signature bags to enhance the New York aesthetic [5] Brand Representation - Jeff Goldfarb, EVP of G-III Apparel Group, highlights Hailey Bieber's influence as a style leader and her authentic alignment with DKNY's brand energy, making her a natural choice for global representation [6] Marketing Strategy - The campaign launches globally across DKNY's social channels and includes a diverse media mix such as social, digital, outdoor, print, and influencer partnerships [7] - The collection is available for purchase on DKNY.com and select retailers worldwide, indicating a broad distribution strategy [7] Company Background - DKNY, founded in 1989, is synonymous with New York and aims to reflect the city's energy and attitude through its designs, evolving into a global lifestyle brand [8] - G-III Apparel Group, the parent company, is a global fashion leader with a portfolio of over 30 brands, including DKNY, and focuses on design, sourcing, distribution, and marketing [9]

Core Viewpoint - G-III Apparel Group, Ltd. has initiated a quarterly dividend of $0.10 per share, indicating a strategic shift towards returning capital to shareholders while maintaining a strong brand portfolio and financial position [2][5]. Group 1: Financial Performance - G-III reported a strong third quarter with gross margins and earnings exceeding expectations, driven by a higher mix of full-price sales and effective tariff management [3]. - The company has raised its fiscal 2026 earnings guidance due to better-than-expected third-quarter performance, while remaining cautious about consumer spending and potential margin pressures from tariffs [4]. Group 2: Strategic Initiatives - G-III's management believes that its brand portfolio and operating model position the company well to achieve its fiscal 2026 goals, allowing for capital returns through dividends while retaining flexibility for strategic investments [5]. - The company’s brands have shown strong consumer connection, with steady demand expected to continue into the holiday season [3]. Group 3: Company Overview - G-III Apparel Group is a global fashion company involved in design, sourcing, distribution, and marketing, owning and licensing over 30 brands, each with distinct positioning and consumer reach [6].

Company Overview - Betterware de Mexico SAPI de C (BWMX) is currently ranked 1 (Strong Buy) in the Zacks Rank system, indicating a strong potential for outperforming the market in the near term [3] - The stock has shown a year-to-date return of 36.8%, significantly outperforming the average loss of 0.5% in the Consumer Discretionary sector [4] Earnings Outlook - The Zacks Consensus Estimate for BWMX's full-year earnings has increased by 38% over the past quarter, reflecting improved analyst sentiment and a more positive earnings outlook [4] - Betterware de Mexico SAPI de C is part of the Consumer Products - Discretionary industry, which has an average loss of 0.9% this year, further highlighting BWMX's strong performance [6] Industry Context - The Consumer Discretionary sector, which includes 261 individual stocks, is currently ranked 12 in the Zacks Sector Rank [2] - In comparison, G-III Apparel Group (GIII), another stock in the Consumer Discretionary sector, has returned 0.7% year-to-date and has a Zacks Rank of 2 (Buy) [5] - The Textile - Apparel industry, to which G-III belongs, has experienced a decline of 12.9% this year, contrasting with the performance of Betterware de Mexico SAPI de C [7]

Group 1: G-III Apparel Group Ltd - G-III Apparel Group Ltd has shown strong performance in the apparel sector, with significant revenue growth reported in the latest quarter [1] - The company is expanding its brand portfolio, which is expected to enhance market presence and drive future sales [1] Group 2: ePlus Inc - ePlus Inc has experienced an increase in demand for its technology solutions, leading to improved financial results [1] - The company is focusing on strategic partnerships to enhance its service offerings and market reach [1] Group 3: Carnival Corporation - Carnival Corporation is recovering from previous operational challenges, with a notable increase in passenger bookings and revenue [1] - The cruise line is implementing new health and safety protocols to attract customers and ensure a safe travel experience [1] Group 4: Tutor Perini Corporation - Tutor Perini Corporation has secured several new contracts, contributing to a positive outlook for future revenue growth [1] - The company is investing in technology to improve project efficiency and reduce costs [1]

Core Viewpoint - G-III Apparel Group reported mixed third-quarter fiscal 2026 results, with net sales missing estimates while earnings per share exceeded expectations, leading to a revised positive outlook for the fiscal year despite ongoing tariff pressures [2][3]. Financial Performance - Adjusted earnings per share (EPS) for the third quarter were $1.90, surpassing the Zacks Consensus Estimate of $1.60, but down 26.6% from $2.59 in the same quarter last year [5]. - Net sales decreased by 9% year over year to $988.6 million, falling short of the consensus estimate of $1,011 million [5]. - Gross profit declined 11.7% year over year to $381.5 million, with gross margin decreasing by 120 basis points to 38.6% [6]. - Adjusted EBITDA fell 28.4% year over year to $124.9 million, with the adjusted EBITDA margin down 340 basis points to 12.6% [7]. Financial Position - As of the end of the fiscal third quarter, G-III Apparel had cash and cash equivalents of $184.1 million and total debt of $10.6 million, with total stockholders' equity at $1.79 billion [8]. - Inventory increased by 3% year over year to $547.1 million [8]. Fiscal 2026 Guidance - The company revised its fiscal 2026 guidance, projecting net sales of $2.98 billion, down from a previous estimate of $3.02 billion, and net income between $121 million and $126 million [10][11]. - Adjusted net income is expected to be between $125 million and $130 million, with adjusted EPS forecasted at $2.80 to $2.90 [12]. - The projected gross tariff impact is now $135 million, with $65 million expected to remain unmitigated [9]. Market Sentiment - Since the earnings release, there has been a downward trend in estimates, with the consensus estimate shifting down by 16.18% [14]. - G-III Apparel currently holds a Zacks Rank 2 (Buy), indicating expectations for above-average returns in the coming months [16].

Core Insights - Investing in stocks based on valuation metrics, particularly the price-to-sales (P/S) ratio, can identify opportunities with strong upside potential, especially for companies that are unprofitable or in early growth phases [1][2] Group 1: Price-to-Sales Ratio - The P/S ratio provides a clearer picture of value when earnings are minimal or volatile, as it compares a company's market capitalization to its revenues [2][5] - A stock with a P/S ratio below 1 is considered a good bargain, indicating that investors pay less than a dollar for each dollar of revenue generated [6] - The P/S ratio is preferred over the price-to-earnings ratio because sales are harder to manipulate, making it a more reliable metric [7] Group 2: Screening Parameters - Stocks with a P/S ratio less than the median for their industry are highlighted as better investment opportunities [9][10] - The screening process pairs low P/S ratios with solid balance sheets to avoid valuation traps associated with excessive debt [10] Group 3: Company-Specific Insights - Hamilton Insurance Group (HG) is benefiting from strong execution and a clear growth roadmap, with gross premiums written rising significantly, reflecting momentum in various insurance lines [12][13] - Macy's Inc. (M) is undergoing a transformation under its Bold New Chapter program, focusing on digital initiatives and omnichannel retailing, which has led to consistent outperformance [14][15] - GIII Apparel Group (GIII) is driving growth through product differentiation and strengthening direct-to-consumer channels, with owned brands generating higher margins [16][17] - Green Dot (GDOT) is well-positioned for growth with a strong balance sheet and significant cash reserves, expanding its addressable market through Banking-as-a-Service programs [18][20] - Gibraltar Industries (ROCK) is benefiting from operational improvements and a focus on its Three-Pillar Strategy, with high demand in its Residential segment and agricultural facilities [21][22]

Core Viewpoint - Momentum investing focuses on "buying high and selling higher" rather than traditional strategies of "buying low and selling high" to maximize returns in a shorter time frame [1] Group 1: Momentum Investing Strategy - Momentum investors often face challenges in determining the right entry point, as stocks may lose momentum if their valuations exceed future growth potential [2] - A safer approach involves investing in bargain stocks that exhibit recent price momentum, utilizing tools like the Zacks Momentum Style Score to identify such opportunities [3] Group 2: G-III Apparel Group (GIII) Analysis - G-III Apparel Group has shown a four-week price change of 1.1%, indicating growing investor interest [4] - The stock has gained 10.9% over the past 12 weeks, with a beta of 1.3, suggesting it moves 30% more than the market [5] - GIII has a Momentum Score of A, indicating a favorable time to invest based on momentum [6] Group 3: Earnings Estimates and Valuation - GIII has received a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which typically attract more investor interest [7] - The stock is trading at a Price-to-Sales ratio of 0.41, suggesting it is undervalued at 41 cents for each dollar of sales [7] Group 4: Additional Investment Opportunities - Besides GIII, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting further investment opportunities [8] - Investors can explore over 45 Zacks Premium Screens tailored to different investing styles to identify potential winning stocks [9]

Core Insights - The performance of cyclical stocks is closely tied to the economy's health, with prices rising during expansions and falling during downturns [2] - Despite facing inflation, labor market slack, and supply chain issues, the U.S. economy shows resilience, rebounding from a 0.6% GDP contraction in Q1 to a 3.8% growth in Q2 [3][4] - The Federal Reserve's rate cuts and easing monetary policies are expected to benefit cyclical stocks by reducing borrowing costs and stimulating demand [5] Company Summaries - **Crocs, Inc. (CROX)**: A leading footwear brand focusing on comfort and style, with a Zacks Rank 1. The company aims to exceed $5 billion in annual revenues by 2026, representing a CAGR of over 17% [8][9]. Recent earnings estimates for 2025 and 2026 have improved by 1.6% and 8.6%, respectively, despite a 19.5% decline in shares over the past year [10] - **G-III Apparel Group, Ltd. (GIII)**: A global fashion entity with a Zacks Rank 2, transitioning towards higher-margin owned brands. The company expects significant growth in its Donna Karan brand, with sales projected to grow nearly 40% in fiscal 2026 [13][14]. Earnings estimates for fiscal 2026 and 2027 have increased by 6.3% and 3.4%, respectively, with shares rebounding 48.6% in the past six months [15] - **Dover Corp. (DOV)**: An industrial conglomerate with a Zacks Rank 2, experiencing healthy booking growth across most segments. The company has reported year-over-year booking growth in seven of the past eight quarters, driven by strong demand and operational resilience [17][18]. Earnings estimates for 2025 and 2026 have increased by 1.3% and 1.1%, respectively, with shares gaining 11.4% in the past six months [19]

Core Insights - The Zacks Textile - Apparel industry is experiencing growth through enhanced omnichannel frameworks, integrating physical retail with digital platforms to improve customer engagement [1][2] - Companies are focusing on strategic brand investments, product innovation, and disciplined pricing strategies to maintain resilience amid near-term margin challenges [2] Industry Overview - The Zacks Textile - Apparel industry encompasses companies that manufacture, design, distribute, and sell apparel, footwear, and accessories for both men and women [3] - The industry includes various segments such as fashion apparel, intimate apparel, and fitness-related accessories, operating through direct-to-consumer, wholesale, and licensing channels [4] Trends Impacting the Industry - Improved store traffic and strong digital trends are prompting companies to enhance customer experiences across all channels, leading to upgrades in digital platforms and mobile applications [5] - Companies are expanding fulfillment capabilities and adopting AI technologies to optimize customer interactions and improve operational efficiency [6] - Brand-enhancing strategies, including diverse marketing efforts and product innovation, are crucial for maintaining competitiveness [7] Cost and Profitability Concerns - Companies face challenges from elevated input costs and increased selling, general, and administrative expenses, which may impact profitability [8] - Shipping disruptions and a competitive labor market further threaten profit margins [9] Industry Performance and Valuation - The Zacks Textile - Apparel industry ranks 46, placing it in the top 19% of over 243 Zacks industries, indicating positive near-term prospects [10][11] - The industry's consensus earnings estimate has improved by 1% since October 2025, reflecting a positive aggregate earnings outlook [12] - The industry has underperformed the broader Zacks Consumer Discretionary sector and the S&P 500 over the past six months, declining 6.9% compared to the sector's 2.2% drop and the S&P 500's 17.3% increase [13] - Currently, the industry trades at a forward 12-month price-to-earnings (P/E) ratio of 16.39X, lower than the S&P 500's 23.35X and the sector's 18.56X [14] Notable Companies in the Industry - **Crocs, Inc.**: Ranked 1 (Strong Buy), focusing on sustainable growth and brand relevance through product innovation and market expansion [15][16][17] - **G-III Apparel Group, Ltd.**: Ranked 2 (Buy), emphasizing brand portfolio strength and operational flexibility to drive long-term value [19][20][21] - **Ralph Lauren Corp.**: Ranked 3 (Hold), pursuing a strategy to enhance digital and omnichannel capabilities while aiming to exceed revenue and profit goals [22][23][24] - **V.F. Corp.**: Also ranked 3, implementing a transformation program to improve operational performance and brand building [25][26][27]