OMAHA, Neb.--(BUSINESS WIRE)--Payments leaders remain confident about the pace of industry innovation, but many risk falling behind as expectations accelerate. New global research from ACI Worldwide (NASDAQ: ACIW) and Globant reveals a widening gap between confidence and readiness that could define industry leadership in 2026 and beyond. The report Payments in Transition: Leadership in an era of transformation, based on a survey of 500 industry leaders across North America, Europe, Latin Americ. ...

Financial Performance - Net sales for Q3 fiscal 2025 increased by $113 million, or 3%, compared to Q3 fiscal 2024[84] - Gross profit for Q3 fiscal 2025 was $1.67 billion, with a gross margin of 42.4%, down from 42.7% in Q3 fiscal 2024[84] - Operating income for Q3 fiscal 2025 was $334 million, compared to $355 million in Q3 fiscal 2024[84] - Net income for Q3 fiscal 2025 was $236 million, down from $274 million in Q3 fiscal 2024[84] - Diluted earnings per share for Q3 fiscal 2025 was $0.62, compared to $0.72 in Q3 fiscal 2024[84] Sales and Inventory - Merchandise inventory as of Q3 fiscal 2025 increased by 5% compared to Q3 fiscal 2024[84] - Comparable sales for Old Navy Global increased by 6% in Q3 fiscal 2025, while Athleta Global saw a decline of 11%[91] Operating Expenses - Operating expenses for Q3 fiscal 2025 were $1.34 billion, representing 33.9% of net sales, up from 33.4% in Q3 fiscal 2024[100] - Cost of goods sold increased by 0.7 percentage points as a percentage of net sales in Q3 fiscal 2025, primarily due to tariff costs[99] Taxation - The effective income tax rate for Q3 fiscal 2025 was 30.0%, compared to 24.1% in Q3 fiscal 2024[84] - For the third quarter of fiscal 2025, the effective tax rate increased to 30.0% from 24.1% in the same quarter of fiscal 2024, primarily due to changes in jurisdictional earnings[104] - The increase in the effective tax rate for the first three quarters of fiscal 2025 was also influenced by less favorable impacts of stock-based compensation[105] Cash Flow and Liquidity - Net cash provided by operating activities decreased by $263 million during the first three quarters of fiscal 2025 compared to the same period in fiscal 2024, resulting in $607 million for fiscal 2025[110] - Free cash flow for the first three quarters of fiscal 2025 was $280 million, down from $540 million in the same period of fiscal 2024[115] - Net cash used for financing activities increased by $165 million in the first three quarters of fiscal 2025, primarily due to $152 million in common stock repurchases[111] - As of November 1, 2025, the company had cash and cash equivalents of $2.26 billion and short-term investments of $255 million[107] - The company has no borrowings under the ABL Facility as of November 1, 2025, indicating strong liquidity management[107] Dividends and Investments - The company paid a dividend of $0.165 per share during the third quarter of fiscal 2025 and authorized the same amount for the fourth quarter[116] - Net cash used for investing activities decreased by $249 million during the first three quarters of fiscal 2025, mainly due to $246 million fewer net purchases of short-term investments[110] Contractual Obligations - There have been no material changes to the company's contractual obligations and commercial commitments since the last annual report[118]

Core Viewpoint - Momentum investing focuses on "buying high and selling higher," contrasting with traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Strategy - Momentum investing can be risky as stocks may lose momentum when their valuations exceed future growth potential [1] - Identifying the right entry point for momentum stocks is challenging, and investors may end up with expensive shares that have limited upside [1] Group 2: Bargain Stocks with Momentum - Investing in bargain stocks that have recently shown price momentum may be a safer strategy [2] - The Zacks Momentum Style Score is useful for identifying strong momentum stocks, while the 'Fast-Paced Momentum at a Bargain' screen helps find attractively priced fast-moving stocks [2] Group 3: Case Study - Gap (GAP) - Gap (GAP) has shown a four-week price change of 3.7%, indicating growing investor interest [3] - Over the past 12 weeks, GAP's stock gained 12.5%, and it has a beta of 2.17, suggesting it moves 117% higher than the market [4] - GAP has a Momentum Score of B, indicating a favorable time to invest [5] - The stock has a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which attract more investors [6] - GAP is trading at a Price-to-Sales ratio of 0.60, meaning investors pay 60 cents for each dollar of sales, indicating a reasonable valuation [6] Group 4: Additional Opportunities - Besides GAP, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, suggesting further investment opportunities [7] - Zacks offers over 45 Premium Screens tailored to different investing styles, which can help identify winning stock picks [8]

Core Viewpoint - The article discusses the investment potential of GAP, highlighting its current market position and future growth opportunities. Group 1: Company Performance - GAP has shown a beneficial long position in its shares, indicating confidence in its stock performance [1] - The company is actively engaging with investors and analysts to communicate its growth strategy and financial health [1] Group 2: Market Context - The broader market conditions are influencing GAP's performance, with retail sector trends impacting consumer behavior and sales [1] - Analysts are closely monitoring the retail industry for signs of recovery and growth, which could benefit GAP in the long term [1]

Let's stay on top of retail as we gear up for Black Friday this week. Our next guest already seeing strong traffic for the first half of November, anticipates a robust holiday season. Joining us now is Tango President and CEO Steven Yalof.Great to have you back. Welcome. >> Thank you for having me back.>> So, this is kind of counter to some of the doom that we see in some of these retail stocks and reports of what's going on with the consumer. What are you seeing. >> The consumer shopping. I think the consu ...

Market Overview - The market is experiencing volatility with major indices showing mixed movements, including the Dow up about 0.21%, Nasdaq up about 1%, and S&P 500 up about 0.61% [1] - Bitcoin has seen a significant decline, down approximately 24% over the last two months, with a recent drop of about 6% in the past week [1][3] - The total capitalization of the crypto market has fallen by about 24% since its October peak, equating to over $1 trillion in value lost [1] Consumer Spending and Retail - The National Retail Federation anticipates that consumers will spend over $1 trillion this holiday season, marking a strong consumer sentiment [2] - Recent retail earnings reports have shown mixed results, with companies like Gap and TJ Maxx performing well, while Home Depot's results were less favorable [2] - High-income consumers are driving spending, while low-income consumers remain under pressure [2] AI and Technology Sector - Goldman Sachs suggests that the narrative around AI capital expenditures (capex) is crucial for market stability, with expectations of continued growth in technology demand [2][3] - Nvidia's recent performance is seen as a key indicator for the tech sector, with any weakness potentially impacting broader market sentiment [2][3] Cryptocurrency Insights - Institutional investors are currently sidelined, with Bitcoin ETF outflows reaching $3.5 billion in November, the largest since February [4] - The correlation between Bitcoin and the NASDAQ suggests that stabilization in crypto prices may be necessary for broader market recovery [5][6] - Analysts express caution regarding a V-shaped recovery for Bitcoin, citing the need for more dovish Fed commentary and institutional participation [4][5] Company-Specific Developments - Moderna has faced significant stock price declines, down 43% this year, and is currently the most shorted stock in the S&P 500, with 20% of shares shorted [28][30] - Pfizer is diversifying its business into weight loss drugs and other areas, contrasting with Moderna's struggles to adapt post-COVID vaccine demand [29][30] - Analysts highlight the need for Moderna to diversify its product offerings beyond COVID vaccines to regain investor confidence [31][35]

Group 1: Financial Performance - Gap reported a net sales of $3.9 billion for the third quarter, marking a 3% year-over-year increase and achieving positive same-store sales growth for seven consecutive quarters [6] - LuxExperience, the largest luxury e-commerce group, experienced a 4.3% decline in GMV to €589 million and a 4.2% drop in net sales to €557.2 million, with an adjusted EBITDA loss of €28.1 million [7] - Swiss watch exports fell by 4.4% year-over-year in October, totaling CHF 2.2 billion (approximately $2.7 billion), with a significant 47% drop in exports to the U.S. due to tariffs [5] Group 2: Market Trends - The luxury market in China shows signs of recovery, with Swiss watch exports to China increasing for the second consecutive month by 13% [5] - The auction by Phillips achieved a total sales of over HKD 304 million, setting a record for the highest permanent watch auction in Asia [4] - The opening of Vhernier's first Asian boutique in Hong Kong indicates a resurgence of luxury retail in the region [8] Group 3: Company Strategies and Changes - EssilorLuxottica is preparing to acquire 5%-10% of Giorgio Armani's shares, positioning itself as a financial investor without involvement in daily operations [3] - Harrods announced the closure of its Shanghai private members' club and tea room, indicating a strategic shift to focus on more impactful experiences in other regions of China [12] - Triumph's brand, Dianafen, will close all offline and online stores in mainland China by December 2025, reflecting challenges in adapting to local market demands [9] Group 4: New Initiatives - Kering SA plans to establish a venture capital department named House of Dreams to adapt to technological changes and evolving consumer demands [13] - Marriott International's luxury brand launched a new dining project "Table Stories," blending art and cuisine to create a unique luxury experience [10]

Group 1 - Bank of America has raised the target price for Gap from $23 to $27 while maintaining a "Neutral" rating [1]

Core Insights - American consumer spending remains robust, particularly at retailers like Walmart, Gap, and TJX, indicating a healthy holiday shopping season [2][3] - The National Retail Federation projects retail sales for November and December to grow between 3.7% and 4.2%, reaching approximately $1.01 trillion to $1.02 trillion [4] - Despite economic pressures, households with stable incomes continue to drive U.S. economic activity, while those living paycheck to paycheck are tightening budgets [5][6] Retailer Performance - Walmart's incoming CEO noted that U.S. customers are still spending, reflecting ongoing consumer confidence [3] - Gap is experiencing growth across all income levels, with an increase in full-price sales expected to boost holiday performance [3] - Target's recent earnings report indicated a 2.7% decline in comparable sales, highlighting strain among middle-income consumers [6][7] Consumer Behavior - Two-thirds of American adults live paycheck to paycheck, with 42% doing so out of necessity, indicating a significant portion of the population faces income instability [6] - Target's Chief Commercial Officer mentioned that consumers are focusing on essentials and seeking discounts, consistent with the behavior of paycheck-to-paycheck households [7]

Core Insights - Gap has struggled since the departure of former CEO Millard "Mickey" Drexler in 2002, with attempts to revitalize the brand failing, including a controversial logo change in 2010 that was quickly reversed due to customer backlash [1][4] Company History and Evolution - Under Drexler's leadership, Gap expanded significantly, increasing its store count from approximately 1,100 in 1990 to 2,548 by 2000, and successfully launched Old Navy and Banana Republic to cater to diverse consumer demographics [2][3] - The brand initially targeted young adults with Levi's jeans but shifted focus to khakis and shirts in the 1990s, adapting to changing fashion trends [3][6] Current Challenges - Gap has faced declining foot traffic and sales, leading to the closure of 80% of its namesake stores to concentrate on more successful brands like Old Navy [4][13] - The rise of e-commerce and competition from low-cost retailers such as H&M and Walmart has further complicated Gap's market position [5][8][9] Recent Performance and Strategy - Gap's "Power Plan 2023" aims to pivot away from Gap stores towards Old Navy and Athleta, resulting in a significant reduction of Gap stores from 2,505 in 2000 to 472 currently [13][21] - Old Navy has emerged as a leading apparel retailer, with over 1,300 stores globally and a 6% increase in comparable store sales [15][16] Financial Results - The company reported a 5% increase in overall comparable store sales, the fastest growth in four years, with total revenue rising to $3.9 billion [19] - Despite challenges, Gap remains financially stable, generating 62 cents per share in profit and holding $2.5 billion in cash at the end of the third quarter [21] Future Outlook - Gap plans to enhance its product offerings, including a push for beauty products at Old Navy, while facing challenges with Athleta, which saw an 11% decline in comparable sales [20][21]