Core Insights - Manhattan Associates (MANH) announced enhancements to its Manhattan Active Omni platform aimed at helping retailers optimize both in-store and online sales while improving customer experiences across various touchpoints [1] Group 1: Product Enhancements - The new capabilities include embedded agentic AI designed for store associates and customer service teams, providing real-time sales and fulfillment insights [1] - Manhattan introduced three new AI agents: a Store Associate Agent, a Contact Center Agent, and an OMS Configuration Agent, all integrated within the Manhattan Active Omni user interface [1]

ATLANTA--(BUSINESS WIRE)--Manhattan announces major enhancements to Manhattan Active® Omni. ...

Core Insights - UK retailers are projected to face a £1.05 billion returns challenge post-Christmas, with an estimated 52 million gifts expected to be returned [1] - The overall return rate has decreased from 43% to 33% year-on-year, but the total value of returns remains significant, with an average returned gift valued at £57 [1] Retailer Challenges - The scale of returns places immense logistical and financial pressure on retailers, highlighting the importance of effective returns management to build long-term customer trust and loyalty [2] - Retailers are experiencing a clash between consumer expectations for seamless and free returns and the operational realities of processing returns and managing inventory [7] Shopping Trends - There is a notable shift towards hybrid shopping, with 31% of consumers planning to shop half in-store and half online, and 26% intending to shop mostly in-store but partly online [2] - Only 5% of consumers plan to do all their shopping online, indicating a rebound from the post-COVID e-commerce surge [2] Generational Differences - A significant generational divide exists in shopping and returns behavior, with 23% of those aged 65+ planning to shop entirely in-person compared to only 10% of those aged 18-24 [3] - Older consumers (65+) are less likely to return gifts, with 87% not returning any gifts last Christmas, while 53% of shoppers aged 18-24 admitted to returning at least one gift [6] Returns by Product Category - Clothing and footwear are the most returned items, with 39% of consumers returning clothing and 37% returning shoes/footwear [3] - The return rate for footwear has surged from 21% to 37%, while jewellery/watches and cosmetics also feature prominently with a 12% return rate each [3] Customer Experience Preferences - A strong preference for human store associates over digital assistants exists, with 81% of consumers favoring human support for returns, primarily due to trust [5] - The findings emphasize the need for a blended approach in customer experience, where technology complements rather than replaces human interaction [5]

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Core Insights - Manhattan Associates, Inc. is considered one of the top logistics-tech stocks to invest in currently, with approximately two-thirds of analysts rating it as Buy or equivalent, despite underperforming the broader market year to date [1] - The consensus 1-year median price target for the stock is $234.50, indicating a potential upside of nearly 31% [1] Financial Performance - For Q3, Manhattan Associates reported total revenue of $238 million, reflecting a 20% year-over-year increase, and adjusted EPS of $1.03, which surpassed analyst expectations [3] - Software license revenue increased by 44% to $17.5 million, while cloud subscriptions rose by 41% to $84.5 million [3] - The company raised its full-year revenue and EPS guidance, citing strong customer pipelines and ongoing momentum in its cloud transition [3] Analyst Ratings - Barclays reaffirmed its Overweight rating on Manhattan Associates, slightly lowering the 12-month price target from $244 to $239, reflecting an updated model post-Q3 earnings [2][4] - The updated price target considers the near-term momentum while maintaining a bullish outlook on the company's growth trajectory [4]

Core Insights - Manhattan Associates Inc. announced the successful deployment of its Manhattan Active® Point of Sale (POS) solution at Pacsun, a prominent youth fashion retailer [1] - The implementation of the POS solution took place across over 300 stores within an eight-week timeframe following a five-month pilot project [1] - The cloud-native POS solution enhances in-store sales and service by integrating digital convenience with personalized retailing [1] Company Summary - Pacsun is recognized as a leading retailer in the youth fashion sector [1] - The collaboration with Manhattan Associates aims to modernize Pacsun's retail operations through advanced technology [1] Industry Impact - The deployment of cloud-native solutions like Manhattan's POS is indicative of a broader trend in the retail industry towards digital transformation and enhanced customer experience [1] - The rapid rollout of the POS system reflects the increasing demand for efficient and flexible retail solutions in a competitive market [1]

Core Insights - Manhattan Associates has appointed Greg Betz as Chief Operating Officer, bringing extensive experience in leading international organizations [1][9] - Betz previously led Microsoft FastTrack, managing over 1,000 engineers across 35 countries [2] - The appointment is part of Manhattan Associates' strategy to enhance operational frameworks and accelerate cloud adoption [3] Company Overview - Manhattan Associates is a global technology leader in supply chain and omnichannel commerce, focusing on uniting information across enterprises [5] - The company aims to drive top-line growth and bottom-line profitability through its software and platform technology [5] - Manhattan Associates is headquartered in Atlanta, Georgia, and has over 4,000 employees [8] Future Outlook - Betz expressed enthusiasm for working with the team to accelerate revenue and business expansion, highlighting the need for innovative solutions in the supply chain [4] - The company is committed to expanding its partner model across Global System Integrators and Technology partners [3]

Revenue and Performance Obligations - For the three months ended September 30, 2025, the company recognized $49.8 million in revenue from deferred revenue, and for the nine months, it recognized $255.0 million[40]. - As of September 30, 2025, the company has approximately $2.1 billion in remaining performance obligations, with over 98% representing cloud native subscriptions with a non-cancelable term greater than one year[41]. - The company expects to recognize revenue on approximately 38% of remaining performance obligations over the next 24 months[41]. - Total revenue for the three months ended September 30, 2025, was $275.8 million, a 3.9% increase from $266.7 million in the same period of 2024[69]. - Cloud subscriptions revenue for the nine months ended September 30, 2025, reached $299.6 million, up 21.3% from $246.9 million in 2024[69][70]. - Revenue from international sales for the three months ended September 30, 2025, was approximately $96.6 million, an increase from $88.0 million in 2024[69]. Income and Earnings - Net income for the three months ended September 30, 2025, was $58,633,000, a decrease of 7.5% compared to $63,781,000 for the same period in 2024[58]. - Total net income for the nine months ended September 30, 2025, was $167,995,000, slightly down from $170,348,000 in 2024, indicating a decrease of 1.3%[58]. - Basic earnings per share for the three months ended September 30, 2025, was $0.97, down from $1.04 in 2024, while diluted earnings per share was $0.96 compared to $1.03 in 2024[58]. - Diluted earnings per share for the nine months ended September 30, 2025, was $2.75, compared to $2.74 in 2024, showing a marginal increase[58]. Expenses and Costs - Equity-based compensation expense related to restricted stock units (RSUs) was $27.6 million for the three months ended September 30, 2025, compared to $23.9 million for the same period in 2024[51]. - The company recorded a restructuring expense of approximately $2.9 million in the nine months ended September 30, 2025, primarily for employee severance and outplacement services[71]. - Cost of revenue for the nine months ended September 30, 2025, was $350.6 million, a decrease from $357.9 million in 2024[69]. - The Americas segment's costs include all research and development expenses, including those associated with operations in India, which are critical for product development[67]. Assets and Liabilities - The company had cash and cash equivalents of $172.8 million as of September 30, 2025, with no short-term or long-term investments[48]. - Deferred commissions amounted to $45.3 million as of September 30, 2025, with $34.2 million included in other assets and $11.1 million in prepaid expenses[46]. - Total assets as of September 30, 2025, were $768.8 million, compared to $757.6 million as of December 31, 2024[69]. - Goodwill, net, as of September 30, 2025, was $62.2 million, slightly up from $62.2 million as of December 31, 2024[69]. - The company recorded a credit loss reserve of $0.9 million as of September 30, 2025, unchanged from December 31, 2024[44]. Legal and Regulatory Matters - The company is currently involved in multiple legal proceedings, including a consolidated class action lawsuit alleging violations of the Securities Exchange Act, which may impact financial outcomes[63][64]. - The company maintains insurance that may cover liabilities arising from ongoing litigation, subject to policy limits and conditions[64]. Geographic Segments - The company operates through three geographic segments: Americas, EMEA, and APAC, all focused on supply chain commerce solutions[66]. - The Americas segment generated royalty fees of approximately $6.5 million for the three months ended September 30, 2025, compared to $4.8 million in 2024, reflecting a 35.4% increase[67]. - The company eliminated approximately 100 positions in January 2025 to align services capacity with customer demand, impacting the Americas segment[71]. Taxation - The effective tax rate for the three months ended September 30, 2025, was 25.2%, an increase from 16.5% in the same period of 2024[52]. - The company has reinstated 100% bonus depreciation and allows immediate deductions for domestic research and development expenditures under the OBBBA, which will reduce cash taxes owed for 2025[55]. Software Licenses - The company recognized revenue for perpetual software licenses, which accounted for approximately 2% of total revenue[37]. - The majority of software license revenue (over 85%) for the three months ended September 30, 2025, was derived from the warehouse management product group[70]. - The company granted 99,649 RSUs during the three months ended September 30, 2025, compared to 1,273 RSUs in the same period of 2024[49].

Market Overview - The U.S. stock market opened with slight declines across major indices, including S&P 500 (-0.04%), Russell 2000 (-0.11%), Dow (-0.14%), and Nasdaq (-0.18%) [2] Earnings Reports - Intuitive Surgical reported strong earnings, leading to a significant increase in its stock price by 17.76%. Other notable gainers include Vertiv (+7.1%) and Hilton (+3.1%) [3] - Pegasystems saw a rise of 12.5%, while Capital One and Haliburton increased by 4.12% and 2.77%, respectively, benefiting from positive earnings sentiment from the previous day [3] - Conversely, Texas Instruments experienced a sharp decline of 7.9% following weaker after-hours results, alongside other laggards like Manhattan Associates (-7.9%), Netflix (-7.4%), and Newmont (-4.77%) [4] - Mattel's stock fell by 5.5% after missing earnings expectations and reporting a decline in North American sales [4] Upcoming Earnings - Major earnings reports expected later today include Tesla, SAP, and IBM, which will be released after the market closes [8] Economic Indicators - The 10-Year Treasury yield decreased by 1.9 points to 3.944%, while the Continuous Gold Contract fell by 1.76% to $4,036.80 [6]

Core Insights - Manhattan Associates reported revenue of $275.8 million for Q3 2025, a year-over-year increase of 3.4%, with an EPS of $1.36 compared to $1.35 a year ago, exceeding the Zacks Consensus Estimate of $271.32 million by 1.65% and delivering an EPS surprise of 15.25% [1] Revenue Breakdown - Cloud subscriptions revenue was $104.85 million, surpassing the five-analyst average estimate of $104.52 million, reflecting a year-over-year increase of 21.2% [4] - Maintenance revenue was $30.49 million, below the five-analyst average estimate of $31.96 million, showing a year-over-year decline of 11.6% [4] - Hardware revenue reached $6.09 million, slightly below the estimated $6.28 million, but marked a year-over-year increase of 23.4% [4] - Software license revenue was $1.36 million, below the five-analyst average estimate of $1.67 million, indicating a significant year-over-year decline of 64% [4] - Services revenue totaled $133.01 million, exceeding the average estimate of $126.89 million, but reflecting a year-over-year decrease of 2.9% [4] - Combined revenue from Cloud Subscriptions, Maintenance, and Services was $268.35 million, compared to the average estimate of $263.37 million [4] Stock Performance - Shares of Manhattan Associates have returned -7.3% over the past month, contrasting with the Zacks S&P 500 composite's +1.2% change, and the stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance in the near term [3]