Core Insights - Macy's Inc. is implementing a disciplined store rationalization program to enhance returns and long-term profitability through its Bold New Chapter strategy, focusing on high-performing locations and markets [1][5] Sales Performance - In the third quarter of fiscal 2025, total net sales saw a modest decline year over year, attributed entirely to store closures, with 64 non-go-forward stores closed last year, impacting approximately $160 million in sales from the prior year [2][11] - Excluding the impact of store closures, Macy's sales grew by about 2.9%, indicating the strength of the remaining portfolio [2] Comparable Store Sales - Comparable sales for go-forward locations increased by approximately 2.3% during the quarter, outperforming the overall Macy's brand [3][11] - The Reimagine 125 stores achieved a stronger comparable sales growth of roughly 2.7%, demonstrating the effectiveness of focused investments in higher-quality locations [3] Expense Management - Store rationalization has led to a reduction in SG&A expenses by about $40 million year over year, contributing to an improvement in SG&A leverage by nearly 90 basis points [4][11] - The company continues to reinvest in its go-forward business while maintaining cost discipline [4] Strategic Focus - Macy's store rationalization strategy reflects a transition to a leaner, return-driven operating model, enhancing capital efficiency and positioning the business for sustainable long-term growth [5] Valuation and Estimates - Macy's shares have increased by 78.1% over the past six months, outperforming the industry growth of 57.8% [10] - The company is currently trading at a forward 12-month price-to-sales ratio of 0.27X, below the industry average of 0.52X [12] - The Zacks Consensus Estimate for Macy's fiscal 2025 earnings indicates a year-over-year decline of 16.7%, while fiscal 2026 estimates suggest a slight increase of 1.7% [13]

Core Viewpoint - Fossil Group, Inc. has faced significant operational challenges leading to a decline in stock performance and financial metrics, reflecting investor concerns about the retail environment and company strategy [1][2]. Financial Performance - For Q3 fiscal 2025, Fossil reported an adjusted net loss of $0.63 per share, compared to a loss of $0.56 per share in the previous year [2]. - Net sales were $270.2 million, down 6.1% from $287.8 million year-over-year, with a constant currency sales drop of 7.1% [2]. - The company incurred a net loss of $39.9 million, widening from a loss of $32 million in the prior-year period [3]. Profitability Metrics - Gross profit decreased by 6.9% to $132.4 million, with gross margin slightly contracting to 49% from 49.4% [4]. - Operating expenses fell 7.5% year-over-year to $154.1 million, but the operating loss remained substantial at $21.7 million [4]. - On an adjusted constant currency basis, operating loss narrowed to $14.9 million from $22 million in Q3 2024, improving the operating margin to -5.5% from -7.6% [4]. Segment Performance - Net sales in constant currency declined 9% in the Americas and 10% in Europe, while Asia saw a 2% increase [5]. - Traditional watch sales dipped 1%, while leather and jewelry segments experienced declines of 37% and 23%, respectively [5]. - Wholesale sales grew 3% in constant currency, partially offsetting the weakness in direct-to-consumer channels [5]. Management Commentary - CEO Franco Fogliato described the quarter as one of "progress and momentum" in Fossil's turnaround strategy, emphasizing improvements in product margins and a shift to a consumer-centric model [6]. - The completion of balance sheet actions was highlighted as a "pivotal milestone" for long-term growth [6]. Drivers Behind the Numbers - The sales decline was largely attributed to store rationalization efforts and challenges in the direct-to-consumer channel, with store closures accounting for approximately three percentage points of the sales decline [7]. - Increased tariffs and higher licensed brand royalty costs contributed to gross margin compression, though these were partially offset by cost savings from restructuring initiatives [7]. Guidance - Fossil reiterated its full-year 2025 guidance, expecting a mid-teens decline in worldwide net sales and an adjusted operating margin ranging from break-even to slightly positive [9]. - The revenue forecast includes a $45 million headwind from retail store closures, excluding foreign currency fluctuations [9]. Other Developments - Fossil completed a major restructuring of its balance sheet, extending debt maturity by three years and generating $32.5 million in new financing [10]. - The company closed 50 stores during the quarter, reducing the global store count by 19% to 204 from 251 [11].

Core Insights - GrowGeneration Corp. reported a first quarter net sales of $35.7 million, a decrease from $47.9 million in the same period last year, primarily due to the closure of 19 retail locations in 2024 [4][6] - Proprietary brand sales increased to 32.0% of total Cultivation and Gardening revenue, up from 22.6% year-over-year, reflecting the strength of the company's product portfolio [5][6] - The gross profit margin improved to 27.2%, compared to 25.8% in the first quarter of 2024, indicating operational efficiency [7][9] Financial Performance - The company reported a net loss of $9.4 million for the first quarter of 2025, compared to a net loss of $8.8 million in the same quarter of 2024 [9][10] - Adjusted EBITDA loss was $4.0 million, worsening from a loss of $2.9 million in the prior year [10][26] - Cash, cash equivalents, and marketable securities totaled $52.6 million with no debt, providing financial flexibility for future growth initiatives [6][10] Operational Strategy - The company is transitioning to a regional fulfillment center model and focusing on B2B engagement, moving away from same-store sales as a key performance metric [3][12] - Store and other operating expenses decreased by approximately 17.3% to $8.8 million compared to $10.6 million in the first quarter of 2024 [8][9] - The company has withdrawn its full-year 2025 financial outlook due to macroeconomic uncertainties and is exploring strategies to mitigate risks [12] Future Outlook - For the second quarter of 2025, GrowGeneration expects total consolidated net sales to exceed $40 million [13]