Core Viewpoint - lululemon athletica inc. (LULU) is experiencing a downtrend due to expectations of higher expenses and uncertainty from increased tariffs on imports from China and Mexico, leading to a subdued outlook for fiscal 2025 [1][15] Financial Performance - LULU's forward 12-month price-to-earnings (P/E) multiple is 14.88X, which is a premium compared to the Zacks Textile – Apparel industry's average of 11.35X, indicating the stock is expensive from a valuation perspective [2][4] - The price-to-sales (P/S) ratio for lululemon is 2.32X, which is below the industry's 1.6X, contributing to investor expectations [2] - In the past three months, LULU shares have declined by 17.3%, underperforming the broader industry decline of 0.7% and the Zacks Consumer Discretionary sector's growth of 16.8% [5][7] Market Dynamics - The current share price of LULU is $223.93, which is 47.1% below its 52-week high of $423.32 and 1.8% above its 52-week low of $219.97, indicating bearish sentiment as it trades below its 50 and 200-day moving averages [9][10] - The decline in stock price is attributed to investor concerns over multiple headwinds, including softness in the U.S. market and cautious consumer behavior, which has impacted sales growth [11][15] Operational Challenges - LULU is facing margin pressures due to increased tariffs and higher import costs, which are affecting near-term profitability [7][14] - The company has lowered its EPS guidance for the second quarter to $2.85-$2.90, with an expected decline in operating margin of nearly 380 basis points [16] - Despite reaffirming fiscal 2025 revenue guidance, the company has seen downward revisions in EPS estimates for fiscal 2025 and 2026, indicating a loss of confidence in growth potential [17][18] Investment Sentiment - The combination of high valuation and subdued fundamentals suggests that investors may remain cautious until there are clearer signs of a rebound in U.S. demand and margin stability [20]

Core Insights - Stellantis N.V. has published preliminary and unaudited financial information for the first half of 2025, indicating a net loss of €2.3 billion and net revenues of €74.3 billion [3][4]. Financial Performance - Estimated net revenues for the first half of 2025 are €74.3 billion, with a net loss of €2.3 billion and adjusted operating income of €0.5 billion [3]. - Cash flows from operating activities are reported at (€2.3) billion, while industrial free cash flows stand at (€3.0) billion [3]. Shipment Volumes - Global consolidated shipments for Q2 2025 are estimated at 1.4 million units, reflecting a 6% decline year-over-year [5][6]. - North America experienced a significant decline in shipments, down 25% year-over-year, totaling approximately 322 thousand units [12]. - In Enlarged Europe, shipments decreased by 6% year-over-year, with a decline of approximately 50 thousand units [12]. - Other regions, including Middle East & Africa and South America, saw increases in shipments, with 30% and 20% growth year-over-year, respectively [12]. Factors Impacting Performance - The decline in shipments is attributed to North American tariff-related production pauses and adverse impacts from product transitions in Enlarged Europe [6][7]. - Approximately €3.3 billion of pre-tax net charges were incurred, primarily related to program cancellations and platform impairments [7]. - The early effects of US tariffs resulted in €0.3 billion of net tariffs incurred, affecting planned production [7]. Upcoming Events - Stellantis will release detailed financial results for the first half of 2025 on July 29, 2025, followed by a conference call hosted by CEO Antonio Filosa and CFO Doug Ostermann [4][9].

Financial Data and Key Metrics Changes - Total company revenues increased by 9% in U.S. dollars to $648 million, with a 12% increase in constant currency, primarily driven by the acquisition of Rag and Bone, which contributed nine points to constant currency growth [42][43] - Adjusted operating loss totaled $26 million, with an adjusted operating margin of negative 4%, reflecting a decline of 270 basis points compared to the previous year [50] - Adjusted loss per share was $0.44, an improvement from an adjusted loss per share of $0.27 in the prior year [50] Business Line Data and Key Metrics Changes - The core Guess business grew by 3% in constant currency, with wholesale businesses in Europe and The Americas offsetting negative comps from direct businesses [42][43] - In the Americas wholesale segment, revenues increased by 63% in U.S. dollars to $101 million, driven by the addition of Rag and Bone and higher shipments [47] - The European retail segment saw a constant currency comp decrease of 4%, while the Americas retail segment experienced a 10% decline in constant currency comps [8][46] Market Data and Key Metrics Changes - The European wholesale business posted mid-teen growth rates, while the Asian market faced significant challenges, with revenues declining over 20% [6][9] - In Asia, revenues decreased by 20% in U.S. dollars to $58 million, with retail comps declining by 20% in constant currency [48] - Licensing segment revenues declined by 14% to $25 million, with royalties from fragrances and footwear decreasing [49] Company Strategy and Development Direction - The company is focusing on improving retail productivity, enhancing brand awareness, and optimizing its business model to improve profitability [15][24] - Strategic initiatives include increasing marketing investments, launching a customer loyalty program, and rebalancing product assortments to address pricing sensitivity [18][22] - The company is also examining its store portfolio and plans to reduce its North America store fleet by approximately 20 stores [27][28] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential for improved retail trends in the second half of the year, driven by marketing and productivity initiatives [36][59] - The company expects full-year revenue growth in the range of 5.5% to 7.4%, with adjusted operating margins between 4.4% and 5.1% [36][57] - Management acknowledged ongoing challenges in traffic and sales, particularly in Asia, but noted improvements in conversion rates and average unit retail [73][78] Other Important Information - The company ended the quarter with $638 million in inventory, a 15% increase compared to the previous year, primarily due to proactive measures to mitigate supply chain disruptions [51][94] - The transition to a new Chief Financial Officer, Alberto Toney, is expected to enhance operational efficiency and long-term value creation [38] Q&A Session Summary Question: Can you discuss Rag and Bone's organic growth expectations and the trajectory of the Americas retail business? - Management expressed satisfaction with Rag and Bone's performance, expecting it to exceed $320 million in revenue this year, driven by new store openings and strong wholesale growth [66][67] - For the Americas retail business, management noted ongoing traffic challenges but highlighted improvements in conversion rates and product assortment strategies [73][74] Question: How should we think about inventories for the rest of the year? - Management indicated that the 15% increase in inventory was intentional to support business needs and mitigate supply chain challenges, with plans to streamline inventory levels over the medium term [93][95] Question: Update on Guess? Jeans? - Management reported positive developments in the Guess? Jeans business, particularly in Europe, with ongoing improvements in product offerings and distribution [99]

Tanger (SKT) 2025 Conference Summary Company Overview - Tanger is a retail-focused Real Estate Investment Trust (REIT) with 44 years of history, 32 years listed on NYSE, and a significant presence in the outlet sector with 37 outlets in the U.S. and 2 in Canada [3][4] - The company has expanded into the open-air lifestyle business with three centers located in Huntsville, Alabama, Little Rock, Arkansas, and Cleveland, Ohio [4] Financial Highlights - Tanger has an equity value of approximately $4 billion and an enterprise value of $5.7 billion, with a low leverage ratio of about 5x debt to EBITDA [4] - The company has delivered same-center Net Operating Income (NOI) growth of approximately 5% over the last four years, with guidance for 2025 set at 2% to 4% [7] - Funds From Operations (FFO) growth guidance for 2025 is between 4% to 8%, which would be the highest in the retail sector [7] - A recent dividend increase of 6.5% aligns with free cash flow, maintaining a low payout ratio of 60% compared to the sector average of 75% [7] Growth Strategy - The growth strategy is based on three pillars: internal growth through remerchandising, intensifying existing real estate, and external growth through acquisitions [5][6] - Over the last 18 months, Tanger has invested approximately $650 million into five new assets, including a new outlet center in Nashville, Tennessee [6] Retail Environment Insights - Retailers are optimistic despite concerns about tariffs, with over 90% indicating a focus on supply chain diversity post-COVID [10][11] - The outlet business is evolving, with retailers using it to clear excess inventory and as a utility for brand exposure [14][31] - The company sees a shift in consumer behavior, with local customers becoming increasingly important due to remote work trends [17] Customer Experience and Remerchandising - Tanger has adapted its centers to enhance customer experience by adding food and beverage options, entertainment venues, and experiential retail [18][22] - The Nashville center exemplifies this shift, featuring a community gathering space and a mix of local food and beverage options [21] Tenant Management and Leasing Strategy - The company is proactive in managing its tenant portfolio, replacing underperforming tenants like Forever 21 with brands that align with current consumer trends [26] - Food and beverage now represent 7.5% of the shopping center area, indicating a strategic pivot towards diverse tenant categories [25] Market Position and Competitive Advantage - Tanger's open-air format allows for lower operational costs compared to traditional malls, with a CapEx load of about 15% of NOI, significantly lower than other retail formats [30][32] - The company benefits from a lack of new retail development in the U.S., making existing spaces more valuable [24][42] Acquisition Strategy and Financial Capacity - Recent acquisitions have yielded initial returns of 8% to 8.5%, with a focus on properties that can enhance the overall portfolio [42] - Tanger has a low leverage ratio and significant forward equity capacity, allowing for continued investment in unique acquisition opportunities [43] Conclusion - Tanger is well-positioned in the retail real estate market, leveraging its unique outlet format, proactive tenant management, and strategic growth initiatives to drive value for shareholders [39][43]

Financial Data and Key Metrics Changes - First quarter net sales reached $4.6 billion, exceeding guidance of $4.4 billion to $4.5 billion [9][29] - Comparable owned plus licensed plus marketplace sales declined by 1.2%, better than the guidance of a decline of 4.5% to 2.5% [9][29] - Adjusted diluted EPS was $0.16, above the guidance range of $0.12 to $0.15, compared to $0.27 last year [11][33] - Gross margin was $1.8 billion or 39.2% of net sales, flat compared to the prior year [32] Business Line Data and Key Metrics Changes - Macy's net sales were down 6.5%, with comparable sales down 2.1% [30] - Bloomingdale's net sales increased by 2.6%, with comparable sales rising by 3.8% [31] - Blue Mercury net sales were up 0.8%, with comparable sales increasing by 1.5% [31] - Backstage outperformed the total Macy's fleet, while Marketplace achieved approximately 40% GMV growth [12] Market Data and Key Metrics Changes - International tourism negatively impacted comparable sales by about 30 basis points [10] - The go-forward business comps outperformed total, declining by 0.9% [10] - The luxury segment showed resilience, with Bloomingdale's and Blue Mercury continuing their positive comp trends [14][15] Company Strategy and Development Direction - The company is focused on its "Bold New Chapter" strategy, emphasizing omni-channel performance and reimagining store locations [8][9] - The strategy includes strengthening Macy's, differentiating luxury offerings, and modernizing operations [15][16] - The company aims to leverage generative AI to modernize its supply chain and improve inventory allocation [9][12] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the second quarter, noting improved performance in May compared to earlier months [43][44] - The company is navigating uncertainties related to tariffs and consumer behavior, with a focus on maintaining flexibility in inventory commitments [22][23] - Management highlighted the importance of strategic pricing decisions to offset tariff impacts while remaining competitive [45][46] Other Important Information - The company closed 64 underperforming locations as part of its strategy [25] - The impact of tariffs is estimated to affect annual gross margin by roughly 20 to 40 basis points [20] - The company plans to invest in customer-facing initiatives funded by savings from closed locations [32][38] Q&A Session Summary Question: Sales guidance and consumer pressure - Management reaffirmed annual sales guidance, noting stronger performance in March and April compared to February, with cautious optimism for the rest of the year [43][44] Question: Strategic pricing decisions - Pricing adjustments are being made selectively, with a focus on maintaining value for customers while managing tariff impacts [45][46] Question: Impact of tariffs on pricing and consumer willingness - Pricing is gradually being integrated into the system, with limited increases observed in the second quarter [51][52] Question: Actions to capture market share - The company is enhancing product offerings, improving marketing quality, and enhancing in-store experiences to capture market share [65][66] Question: Reimagine 125 performance and future plans - Management remains optimistic about the Reimagine 125 initiative, with improvements noted in March and May [75][76] Question: SG&A guidance range - The SG&A guidance range provides flexibility to navigate various scenarios amid uncertainty [78][79] Question: Consumer health and category performance - Consumer health remains under pressure, but there is a positive response to newness and value [114][115]

Financial Data and Key Metrics Changes - The Q1 2025 AFFO per share was $0.34, in line with expectations, despite lapping unusually high counter-cyclical inventory levels from the previous year [18] - The board approved a 5% increase in the quarterly dividend to $0.23 per share, reflecting confidence in operational resilience and cash flow generation [18] Business Line Data and Key Metrics Changes - Same store economic occupancy declined approximately 270 basis points sequentially from Q4 2024, reflecting a return to normal seasonality and ongoing market softness [10] - Rent and storage revenue from fixed commitment contracts increased to 60%, achieving a goal set three years ago when it was under 40% [10][22] - Same store rent and storage revenue per economic occupied pallet increased approximately 2% year-over-year, while same store services revenue per throughput pallet increased over 3% [13][20] Market Data and Key Metrics Changes - The Michigan consumer sentiment index is now below levels seen during the 2008 financial crisis, indicating a significant drop in consumer confidence [8] - Economic occupancy is expected to range from negative 200 basis points to flat compared to 2024, with throughput volume expected to be in the range of negative 1% to positive 1% [32][33] Company Strategy and Development Direction - The company is focused on four key operational priorities and continues to execute well despite near-term challenges [9] - A high-quality, low-risk development pipeline of about $1 billion is being managed, with several projects announced, including expansions in Canada and New Zealand [14][15][30] - The company aims to creatively deploy capital to unlock customer growth opportunities, as seen in the recent acquisition in Houston [17][25] Management's Comments on Operating Environment and Future Outlook - Management noted that while direct impacts from tariffs are modest, indirect impacts on consumer confidence are significant, leading to a revised outlook for the year [9][47] - The macroeconomic environment is changing, with higher tariffs and lower consumer confidence affecting demand and inventory levels [32][47] - Despite challenges, management remains confident in the company's operational model and ability to create long-term value [40] Other Important Information - The company completed a public bond offering of $400 million with an interest rate of 5.6%, which will be used to repay a portion of revolver borrowings [38] - The company is strategically exiting five facilities this year, consolidating business into owned locations to reduce costs [36] Q&A Session Summary Question: Impact of tariffs on demand - Management acknowledged that while direct impacts from tariffs are modest, indirect impacts on consumer confidence are significant, leading to a slowdown in expansion plans [47] Question: Pricing strategy amidst demand headwinds - Management expressed confidence in maintaining pricing due to the value provided to customers, despite competitive pricing pressures [48][50] Question: Monitoring the spread between physical and economic occupancy - Management noted that fixed commitments have grown, indicating continued customer engagement despite the gap between physical and economic occupancy [55][56] Question: Guidance comparison and inventory levels - Q1 results were in line with expectations, and the change in guidance was due to overall seasonality and timing of new business rather than Q1 operations [70][71] Question: Customer churn and inventory management - Management reported that customer churn remained low, with a general lowering of inventory across the system due to decreased demand [81][82] Question: Sales pipeline execution amidst customer caution - Management indicated strong execution on the sales pipeline, with approximately 50% of opportunities closed, although transitioning inventory may take longer in the current environment [94][95]

Financial Data and Key Metrics Changes - Organic sales declined by 1.2% compared to Q1 last year, consistent with the full-year outlook [10][26] - Adjusted gross margin was 60%, down 20 basis points year-over-year [30] - Adjusted operating margin contracted by 220 basis points to 19.8% due to increased brand support investments [30][37] - Adjusted net income was $465 million, with adjusted diluted EPS of $0.24, reflecting a $0.02 headwind from currency [31] Business Line Data and Key Metrics Changes - In Self Care, organic sales grew by 0.3%, driven by allergy, digestive health, and smoking cessation franchises [11][27] - Skin Health and Beauty saw organic sales decline by 4.8%, impacted by destocking in China and a soft sun season in Latin America [14][28] - Essential Health's organic sales were flat, with growth in Wound Care offset by declines in Women's Health and Oral Care [19][29] Market Data and Key Metrics Changes - EMEA region showed strength with organic sales growth for the twelfth consecutive quarter, driven by double-digit growth in the Avino brand [16] - In the U.S., sequential consumption improved in Q1 compared to Q4, particularly for Neutrogena and Aveeno brands [17][18] - The U.S. market experienced destocking in April, affecting sales performance [52] Company Strategy and Development Direction - The company is focused on accelerating profitable growth through a new operating model, optimizing cost structures, and enhancing performance culture [8][9] - Strategic priorities include leveraging superior science, launching insights-led innovation, and driving seamless commerce [8] - The company plans to maintain its organic sales growth outlook for 2025 in the range of 2% to 4% despite macroeconomic challenges [32][33] Management's Comments on Operating Environment and Future Outlook - Management acknowledged significant macro shifts and seasonal variability but expressed confidence in navigating the complex environment [7] - The company expects to see stronger top-line performance in the second half of the year as headwinds dissipate [32][37] - Management remains focused on increasing household penetration and gaining market share despite external pressures [55][60] Other Important Information - A CFO transition was announced, with Amit Banati set to join as the new Chief Financial Officer [23][24] - The company is implementing measures to mitigate the impact of tariffs, estimating a gross impact of $150 million for 2025 [36][94] Q&A Session Summary Question: Innovation plans in the current environment - Management confirmed strong innovation plans for 2025, with adjustments to ensure value and presence in stores [41][45] Question: Phasing of organic growth in Q2 - Management indicated that Q2 organic sales growth will continue to be burdened by destocking and strategic price investments [48][52] Question: Confidence in skin health and beauty initiatives - Management expressed optimism about consumption trends and the effectiveness of marketing campaigns, though acknowledging more work is needed [62][65] Question: Balancing promotional activity with marketing investment - Management plans to continue investing in marketing while monitoring ROI closely [68][70] Question: Impact of tariffs and supply chain concerns - Management discussed the relatively small exposure to China and ongoing efforts to enhance supply chain resilience [82][86]

Perrigo (PRGO) reported adjusted earnings of 60 cents per share in the first quarter of 2025, beating the Zacks Consensus Estimate of 56 cents. The reported figure increased 107% year over year, primarily driven by improved margins and lower variable expenses.Net sales declined 3.5% year over year to $1.04 billion, missing the Zacks Consensus Estimate of $1.08 billion. The downside was due to the loss of sales stemming from exited businesses and product lines, and unfavorable currency movements.During the q ...

Financial Data and Key Metrics Changes - The company reported adjusted property EBITDA of $223.4 million for Wynn Las Vegas on operating revenue of $625.3 million, resulting in an EBITDA margin of 35.7% [17] - Total casino revenues increased by 4% year-over-year, despite the absence of the Super Bowl in 2025 [12] - Adjusted property EBITDA for Macau operations was $252.1 million on operating revenue of $865.9 million, yielding an EBITDA margin of 29.1% [19] Business Line Data and Key Metrics Changes - In Las Vegas, adjusted EBITDA was down approximately $11 million when adjusted for hold, with slot business showing strong performance [12][18] - Encore Boston Harbor generated $57.5 million of adjusted property EBITDA on revenue of $209.2 million, with an EBITDA margin of 27.5% [19] - Macau's mass drop was up year-over-year, while VIP turnover increased significantly, although lower VIP hold impacted EBITDA by over $38 million [14][20] Market Data and Key Metrics Changes - In Las Vegas, RevPAR for April was slightly up from 2024, with slot handle also increasing [10] - Macau's mass drop during Golden Week was up from the previous year, with full hotel occupancy reported [11] - The company noted a healthy demand outlook for group and convention business in Las Vegas, with visibility into forward demand appearing stable [10] Company Strategy and Development Direction - The company is focused on maximizing EBITDA and maintaining a healthy margin profile amidst competitive pressures in Macau [14] - Significant CapEx projects have been delayed due to tariff impacts, with $375 million in projects, including the Encore Tower remodel, currently on hold [9][23] - The company is committed to returning capital to shareholders, having repurchased $200 million in stock during Q1 and an additional $100 million in Q2 [22] Management's Comments on Operating Environment and Future Outlook - Management acknowledged uncertainty in the operating environment due to tariffs but noted that the business in Las Vegas and Macau is holding up well [11] - The company expressed confidence in its ability to navigate competitive dynamics in Macau and highlighted the importance of service quality and product offerings [42][46] - Management remains optimistic about future growth opportunities, particularly with the upcoming opening of Wynn on Marjan Islands [15][16] Other Important Information - The company has a strong liquidity position with $3.2 billion in global cash and revolver availability as of March 31 [21] - The board has recommended an increase in the final dividend for 2024 to $125 million, subject to shareholder approval [22] - The Gourmet Pavilion Food Hall at Wynn Palace has already driven significant incremental visitation since its opening [15] Q&A Session Summary Question: Changes in promotions and discounts in Las Vegas - Management confirmed that the decrease in promotions correlates with ADR, particularly influenced by the Super Bowl comparison [26] Question: CapEx deployment cadence - Management indicated that CapEx will follow the usual construction curve, deploying funds over the remainder of the year and into next year [27] Question: International visitation impact - Management noted that international visitation is currently about 9% of Las Vegas room nights, with minimal impact from decreases in visitation from Canada and Mexico [32] Question: Competitive environment in Macau - Management described the competitive landscape as stable but noted the importance of service quality and product offerings to remain competitive [42][46] Question: CapEx impact from tariffs - The majority of delayed CapEx is related to the Encore Tower remodel, with management emphasizing that the timing of rescheduling is uncertain [58][74] Question: Group business outlook - Management stated that they are not experiencing softening in group demand, with strong pacing for 2026 driven by large events [61] Question: Development opportunities in Japan - Management expressed interest in Japan but emphasized the need for favorable conditions before pursuing opportunities there [66] Question: OpEx management with new openings - Management indicated that OpEx per day remained flat year-over-year, with careful management of costs to offset new expenses [80]

Financial Data and Key Metrics Changes - The company reported adjusted property EBITDA of $223.4 million for Wynn Las Vegas on operating revenue of $625.3 million, resulting in an EBITDA margin of 35.7% [16] - Total casino revenues increased by 4% year-over-year, excluding the Super Bowl impact [11] - Adjusted property EBITDA for Macau operations was $252.1 million on operating revenue of $865.9 million, with an EBITDA margin of 29.1% [17] Business Line Data and Key Metrics Changes - In Las Vegas, slot volumes increased by approximately 3%, contributing to overall revenue growth [12] - Encore Boston Harbor generated $57.5 million in adjusted property EBITDA on revenue of $209.2 million, with an EBITDA margin of 27.5% [17] - Macau's mass drop was up year-over-year, while VIP turnover increased significantly, although lower VIP hold impacted EBITDA by about $38 million [13][18] Market Data and Key Metrics Changes - In Las Vegas, RevPAR for April was slightly up from 2024, with healthy group activity and slot handle [9] - Macau's mass drop during Golden Week showed improvement compared to the previous year, with full hotel occupancy [10] - The company noted that international visitation to Las Vegas is currently at 9% of room nights, which can be backfilled easily [32] Company Strategy and Development Direction - The company is focused on maximizing EBITDA and maintaining a healthy margin profile despite competitive pressures in Macau [13] - The opening of the Gourmet Pavilion Food Hall at Wynn Palace has driven increased visitation, with 2,400 additional daily restaurant covers [14] - The company is committed to returning capital to shareholders, having repurchased $200 million in stock during Q1 and an additional $100 million in Q2 [21][22] Management's Comments on Operating Environment and Future Outlook - Management acknowledged uncertainty in the operating environment due to tariffs but noted that the business in Vegas and Macau is holding up well [10] - The company remains optimistic about future demand, particularly in group and convention business, despite short booking windows [9][34] - Management expressed confidence in the upcoming Wynn on Marjan Islands project, viewing it as a compelling development opportunity [15] Other Important Information - The company expects total CapEx spend in 2025 to range between $250 million to $300 million, with a significant portion related to concession commitments [20] - The company has a strong liquidity position with $3.2 billion in global cash and revolver availability as of March 31 [20] Q&A Session Summary Question: Changes in promotions and discounts in Las Vegas - Management indicated that the observed changes correlate strongly with ADR, particularly influenced by the Super Bowl comparison [25] Question: Thoughts on international inbound and VIP exposure - Management noted that high-end visitation remains stable, while international visitation has decreased but does not significantly impact the business [32] Question: Competitive environment in Macau - Management described the competitive landscape as stable but emphasized the importance of service quality and product offerings to remain competitive [44][108] Question: CapEx projects on hold due to tariffs - The majority of the delayed CapEx is related to the Encore Tower remodel, with a total of $375 million impacted [59] Question: Group business outlook for 2026 - Management reported strong demand for group bookings in 2026, attributing it to large events scheduled for that year [62]