Core Insights - The Canadian clothing retailer reported a profit of $100.2 million, indicating strong financial performance [1] - Sales in the U.S. experienced a significant increase of 54%, highlighting robust market demand [1] Company Performance - The profit of $100.2 million reflects the company's successful strategies and operational efficiency [1] - The substantial 54% sales growth in the U.S. market suggests effective marketing and product appeal [1]

The Canadian Jewellers Association (CJA) National Retail Report for December 2025 data, published in early January 2026, indicates muted overall retail sales growth in Canada, while jewellery and related discretionary categories continue to outperform. The monthly retail performance bulletin, prepared by the J.C. Williams Group and released by the trade association, offers insights valuable to global retail observers, market analysts and industry decision-makers. National retail snapshot: subdued growth ...

China’s retail sales growth was the weakest since Covid while investment slumped further, underlining growing risks to the economy after several months of deterioration https://t.co/pQgGcMd6C8 ...

US retail sales growth likely moderated a touch in September, capping an otherwise solid quarter of spending by consumers who are nonetheless frustrated by high prices and anxious about their jobs https://t.co/tQZX0v9E05 ...

Financial Data and Key Metrics Changes - Net income for the third quarter was $48.7 million, or $0.96 per share, compared to $44.2 million, or $0.88 per share, for the same period last year, representing a year-over-year increase of 10.1% in net income [3] - Year-to-date net income was $128.9 million, or $2.55 per share, compared to $118.3 million, or $2.35 per share, for the prior year, reflecting a year-over-year increase of 8.5% [8] - Net sales for the third quarter increased by 9.3% to $320.8 million, compared to $293.6 million for the same period last year [3] Business Line Data and Key Metrics Changes - Women's merchandise sales increased by approximately 19%, representing about 51% of total sales, compared to 47% last year [11] - Men's merchandise sales were up about 1%, accounting for approximately 49% of total sales, down from 53% in the prior year [12] - Accessory sales increased approximately 7.5%, while footwear sales remained flat, accounting for about 10% and 4.5% of third quarter net sales, respectively [13] Market Data and Key Metrics Changes - Comparable store sales for the quarter increased by 8.3% compared to the same period last year [4] - Online sales increased by 13.6% to $53 million for the quarter [4] - Year-to-date net sales increased by 7.2% to $898.7 million, compared to $838.5 million for the prior year [4] Company Strategy and Development Direction - The company continues to focus on enhancing its women's business, particularly in the denim category, which has shown strong growth [11] - The company opened two new stores and completed six full store remodels during the quarter, with plans for additional remodeling projects [9] - The company aims to maintain a strong merchandise margin despite slight fluctuations due to tariffs and other costs [22] Management's Comments on Operating Environment and Future Outlook - Management noted that there has not been a significant change in consumer behavior, with a slight caution observed in units per sale [17] - The company remains optimistic about the women's denim business and believes the men's denim segment is solid as well [18] - Management expressed confidence in the sustainability of growth in the women's business, particularly in denim [17] Other Important Information - Gross margin for the quarter was 48%, a 30 basis point increase from the previous year [5] - Selling general administrative expenses for the quarter were 29% of net sales, slightly down from 29.1% in the prior year [5] - The company ended the quarter with inventory of $165.8 million, up 11% from the same time last year [8] Q&A Session Summary Question: What is the health of the U.S. consumer coming into the holiday season? - Management indicated that there has not been a significant change in consumer behavior, with excitement about products remaining strong, although there is slight caution in units per sale [17] Question: Can you elaborate on the denim business and its sustainability? - Management expressed optimism about the women's denim business and noted that the men's denim segment is also performing well, with private label brands showing good sell-throughs [18] Question: What were the factors behind the merchandise margin trend this quarter? - Management explained that merchandise margins were down 10 basis points due to a decrease in private label business and slight increases in costs related to tariffs [22][23]

Group 1 - U.S. retail sales excluding motor vehicles and parts likely posted further gains in September [1] - The rise in retail sales probably reflected higher prices [1]

Core Insights - U.S. retail sales increased by 0.6% in August 2025, matching the revised growth from July and exceeding expectations of 0.2% [1] - Sales excluding certain categories rose by 0.7%, surpassing the anticipated 0.4% [1] Winning Areas - **Online Retailers**: Nonstore retailers experienced a 2% sequential increase and a 10.1% year-over-year gain [3] - ProShares Online Retail ETF (ONLN) tracks online retailers and charges 58 bps in fees [3] - Amazon.com (AMZN) is a major player in e-commerce with a Zacks Rank 3 (Hold) [4] - **Clothing Stores**: Sales rose by 1% sequentially and 8.3% year over year in August 2025 [5] - SPDR S&P Retail ETF (XRT) provides exposure to U.S. retail stocks, with apparel retail comprising about 21% of the fund and a fee of 35 bps [5] - Genesco (GCO) is a specialty retail company with a Zacks Rank 1 (Strong Buy) [5] - **Sporting Goods, Hobby, Musical Instrument, & Books**: This segment saw a 0.8% sequential gain and a 4.7% year-over-year increase [6] - Consumer Discretionary Select Sector SPDR ETF (XLY) and VanEck Retail ETF (RTH) are suitable for investment in this sector [6] - DICK'S Sporting Goods (DKS) operates as a sporting goods retailer with a Zacks Rank 3 [7] - **Food Services & Drinking Places**: Sales increased by 0.7% sequentially and 6.5% year over year [8] - AdvisorShares Restaurant ETF (EATZ) invests primarily in restaurant-related companies and charges 99 bps in fees [8] - BJ's Restaurants (BJRI) operates high-end casual dining restaurants and holds a Zacks Rank 1 [9]

Core Insights - The VanEck Retail ETF (RTH) has reached a 52-week high, increasing by 23.6% from its 52-week low price of $204.16 per share, indicating strong momentum in the retail sector [1][4] Group 1: ETF Overview - RTH tracks the MVIS US Listed Retail 25 Index, which includes companies involved in various retail distribution channels such as wholesalers, online retailers, and specialty retailers [2] - The ETF charges an annual fee of 35 basis points [2] Group 2: Retail Sales Performance - Retail sales in the United States rose by 0.5% month-over-month in July, totaling $726.3 billion, following a revised increase of 0.9% in June [3] - Year-over-year, retail sales increased by 3.9%, with the back-to-school season contributing to positive market sentiment [3] Group 3: Future Outlook - The ETF RTH is expected to maintain its strong performance in the near term, supported by a positive weighted alpha of 22.95, suggesting potential for further gains [4]

Retail Sales Overview - Retail sales in the United States increased by 0.5% sequentially in July 2025, following a revised 0.9% rise in June, aligning with market expectations [1] - The largest increases were in sales at motor vehicle & parts dealers (1.6%) and furniture & home furnishing stores (1.4%) [1] - Other notable gains included sporting goods, hobby, musical instrument, & book stores (0.8%), nonstore retailers (0.8%), clothing & clothing accessories stores (0.7%), and gasoline stations (0.7%) [1] Online Sales - Nonstore retailers experienced a 0.8% sequential increase and an 8.0% yearly gain [3] - ProShares Online Retail ETF (ONLN) tracks retailers primarily selling online or through non-store channels, with a fee of 58 basis points [3] - Amazon.com (AMZN) is highlighted as a major e-commerce provider with a Zacks Rank of 3 (Hold) [4] Clothing Stores - Sales in clothing stores rose by 0.7% sequentially in July and 5% year over year [5] - SPDR S&P Retail ETF (XRT) provides exposure to U.S. retail stocks, with apparel retail comprising about 21% of the fund, charging 35 basis points in fees [5] - Levi Strauss & Co. (LEVI) is noted for designing and marketing jeans and casual wear, holding a Zacks Rank of 1 (Strong Buy) [5] Furniture & Home Furnishing Stores - Sales for furniture & home furnishing stores increased by 1.4% sequentially and 5.1% year over year [6] - iShares U.S. Consumer Focused ETF (IEDI) focuses on U.S. companies related to consumer spending, charging 18 basis points in fees [6] - Home Depot (HD) is recognized as the world's largest home improvement specialty retailer, with a Zacks Rank of 3 [6] Health & Personal Care Stores - Sales for health & personal care stores rose by 0.4% sequentially and 5.6% year over year [7] - iShares U.S. Healthcare Providers ETF (IHF) aims to match the performance of the Dow Jones U.S. Select Health Care Providers Index, charging 40 basis points in fees [7] - CVS Health (CVS) is identified as a pharmacy innovation company with a Zacks Rank of 2 (Buy) [7]

Retail Sector Overview - The retail sector has demonstrated significant resilience despite rising prices and inflation, with retail sales increasing by 0.5% in July after a 0.9% rise in June, and a year-over-year increase of 3.9% [1][3] - The growth in July was primarily driven by a 1.6% increase in motor vehicle sales at auto dealerships, following a 1.4% rise in the previous month [3] Online and Specific Retail Sales - Online sales rose by 0.8% in July, building on a 0.9% increase in June, while clothing stores and furniture outlets saw sales increases of 0.7% and 1.4%, respectively [4] - Households are reportedly spending less and saving more due to concerns over a weak labor market and potential inflation from tariffs [4] Impact of Tariffs and Federal Reserve Policy - Tariffs imposed by the Trump administration have contributed to rising prices, which in turn have influenced retail sales positively, potentially leading the Federal Reserve to maintain interest rates at 4.25-4.5% for an extended period [5] - Despite a hawkish stance, some Federal Reserve officials have indicated plans for two 25-basis-point rate cuts before year-end, with markets pricing in an 83.1% chance of a cut in September, which would benefit the retail sector and the economy overall [6] Selected Retail Stocks - Four retail stocks are highlighted for investment: Levi Strauss & Co. (LEVI), Walmart, Inc. (WMT), Dutch Bros Inc. (BROS), and Wayfair Inc. (W), all of which have seen positive earnings estimate revisions in the past 60 days and carry favorable Zacks Ranks [2][10] Levi Strauss & Co. - Levi Strauss & Co. has an expected earnings growth rate of 4% for the current year, with a Zacks Consensus Estimate improvement of 5.7% over the past 60 days, and holds a Zacks Rank 1 [8] Walmart - Walmart's expected earnings growth rate for the current year is also 4%, with a 0.4% improvement in the Zacks Consensus Estimate over the past 60 days, and it holds a Zacks Rank 2 [11] Dutch Bros Inc. - Dutch Bros Inc. is projected to have a 34.7% earnings growth rate next year, with an 8.2% improvement in the current-year earnings estimate over the past 60 days, and carries a Zacks Rank 2 [12] Wayfair Inc. - Wayfair Inc. is expected to see earnings growth of over 100% for the current year, with the Zacks Consensus Estimate improving by more than 100% in the past 60 days, and holds a Zacks Rank 2 [14]