Core Insights - CarMax, Inc. is identified as an oversold mid-cap stock with potential buying interest from hedge funds despite recent challenges [1] - Morgan Stanley has lowered its price target for CarMax from $80 to $56 while maintaining an Overweight rating, indicating a cautious outlook [1][3] - The firm highlighted execution risks related to CarMax's omni-channel strategy, particularly in integrating digital and physical sales amid increasing competition, especially from Carvana [2] Company Performance - CarMax's stock has recently fallen to an all-time low due to disappointing Q2 earnings, reflecting investor concerns over the normalization of the used-car market [3] - Despite the downgrade, Morgan Stanley recognizes CarMax's fundamental strengths, suggesting that the path to realizing these strengths may be more challenging than previously anticipated [3] - The stock has exhibited volatility, influenced by uncertainties regarding CarMax's ability to scale its hybrid model without further margin erosion [4] Market Position - CarMax is the largest used-vehicle retailer in the U.S., operating over 240 stores and a growing online platform that supports a no-haggle, customer-centric sales model [5]

Financial Performance & Outlook - Tapestry's Q3 revenue reached $1.58 billion, with an 8% increase compared to the previous year on a constant currency basis[58] - Coach brand experienced a 15% revenue growth on a constant currency basis[50, 58] - The company raised its FY25 revenue outlook to approximately $6.95 billion, a 4% increase versus the prior year on a reported basis[69] - Diluted adjusted EPS is projected to be around $5.00, representing a high-teens percentage growth compared to last year[69] - Adjusted free cash flow is expected to be approximately $1.3 billion[69] Brand Performance - Coach's operating income margin was 32.4% [58] - Kate Spade's revenue declined by 12%[58, 62] - Stuart Weitzman's net sales were $46 million, a decrease of 17%[58] - Tapestry has entered into an agreement to sell Stuart Weitzman to Caleres[66] Strategic Initiatives & Global Presence - North America accounted for 65% of revenue, while International accounted for 35%[71] - The company acquired over 12 million new customers in North America[50] - Digital channels accounted for 29% of sales[33] - The company expects to return over $2 billion to shareholders in FY25[78]