Core Insights - The Consumer Discretionary sector is experiencing stronger-than-expected momentum during the earnings season, particularly in lifestyle-driven businesses such as apparel, footwear, fragrances, and accessories [1][5] Industry Overview - The sector is showing renewed strength as consumers prioritize brands that offer authenticity, innovation, and emotional connection over discounts [2] - Companies are tightening inventory and leveraging data analytics to better align supply with demand, enhancing operational efficiency [2][3] Digital Engagement - Digital engagement through direct-to-consumer platforms and influencer marketing is driving growth, allowing brands to deepen customer relationships and capture higher margins [3] - Accessories are particularly benefiting from trend-driven purchases and repeat buying behavior, contributing to both revenue growth and profitability [3] Challenges - Despite the positive trends, the sector faces challenges such as macroeconomic volatility, cautious consumer spending, and currency fluctuations [4] - Fast-changing fashion trends and shorter product cycles increase execution risks, especially for apparel and accessories brands [4] Earnings Expectations - The Consumer Discretionary sector is projected to see year-over-year earnings growth of 4.8% and revenue growth of 5.9% this earnings season [6] Stock Picks - Four lifestyle-focused Consumer Discretionary stocks are highlighted for their potential: Carter's Inc. (CRI), Interparfums, Inc. (IPAR), Savers Value Village, Inc. (SVV), and Cintas Corporation (CTAS) [9] - Carter's is leveraging strategic pricing to sustain profitability amid rising costs, with an Earnings ESP of +3.93% and a Zacks Rank 1 [10][11] - Interparfums is focusing on brand expansion and has an Earnings ESP of +2.56% with a Zacks Rank 2 [12][13] - Savers Value Village is benefiting from steady traffic and operational efficiency, with an Earnings ESP of +1.08% and a Zacks Rank 3 [14][15] - Cintas is positioned for long-term growth with an Earnings ESP of +0.89% and a Zacks Rank 3 [16][17]

Core Viewpoint - The U.S. Supreme Court is set to rule on President Trump's tariff regime, with a low probability of a favorable outcome for the tariffs, which could lead to significant refunds and changes in trade policy [1]. Group 1: Legal Actions and Stakeholders - Costco Wholesale Corp. has initiated a lawsuit for a full refund of duties collected under the International Emergency Economic Powers Act (IEEPA) [2]. - Apple Inc. and Nike Inc., while not directly involved in the lawsuit, are significantly affected due to their reliance on Asian manufacturing [2]. Group 2: Financial Impact - U.S. households are projected to experience an average tax increase of $1,000 in 2025, escalating to $1,300 in 2026 due to the tariffs [3]. - The U.S. Customs and Border Protection (CBP) reported over $200 billion collected in tariffs from January 20 to December 15, 2025, with the Tax Foundation estimating a total customs revenue of $264 billion for 2025, resulting in a net gain of approximately $132 billion after accounting for economic drag [3]. Group 3: Future Projections - Tariffs are expected to generate $171.1 billion in 2026, representing 0.54% of GDP, marking the largest federal tax increase since 1993 [4]. Group 4: Next Steps and Market Reactions - The Supreme Court's oral arguments were heard on November 5, 2025, with a longer-than-usual wait for a decision [5]. - Treasury Secretary Scott Bessent indicated that if the administration loses, it could recreate the tariff structure using various legal authorities, and the ruling may result in a complex outcome regarding what is permissible [5]. - Following the announcement of tariffs in April 2025, the S&P 500 experienced significant declines, with the Nasdaq dropping 1,600 points, marking the worst sell-off since the COVID-19 pandemic began [5].

Core Insights - Southern California-based global lifestyle brand UGG® is set to release a new collection of clogs and mules for Spring 2026, featuring new silhouettes and styles inspired by the popular UGG® Tasman [1] - The brand has enlisted global rap sensation Central Cee and Olympic snowboarding champion Su Yiming as the faces of the new campaign to promote these upcoming products [1] Product Launch - The upcoming collection will include innovative designs that aim to attract consumer interest and capitalize on the popularity of the UGG® Tasman [1] - The campaign is designed to celebrate the new offerings and enhance brand visibility through high-profile endorsements [1]

Core Viewpoint - CANALI launches the new 2026 Spring Capsule Collection to celebrate the Lunar New Year, symbolizing strength, freedom, integrity, and perseverance, aligning with the brand's heritage and future vision [1][3]. Group 1: Cultural Significance - The horse, as a symbol in Chinese culture, embodies perseverance and confidence, reflecting CANALI's brand spirit of "Made in Italy" and refined craftsmanship [3]. - The collection pays homage to tradition through classic elegant red and blue tones, showcasing a contemporary gentleman's attitude while emphasizing CANALI's commitment to quality [5]. Group 2: Visual Narrative and Collaboration - Actor Zhao Youting is featured in the campaign, representing a shared understanding of gentlemanly values between Eastern and Western cultures, highlighting the pursuit of self-improvement and exploration [7]. - The visual narrative of the collection transforms festive celebrations into an artistic expression, using red to symbolize prosperity and the horse to depict the modern gentleman's humility and confidence [7].

The athleisure company's stock falls after more "see-through†complaints surfaced about a new leggings line. ...

Core Insights - Ralph Lauren Corporation's margin expansion reflects successful brand elevation and disciplined execution, resulting in financial gains despite macroeconomic challenges [1][4] - The company achieved strong performance in Q3 of fiscal 2026, surpassing revenue and profitability expectations [1][4] Financial Performance - Adjusted gross margin increased by 140 basis points to 69.8%, while adjusted operating margin rose by 200 basis points to 20.7% on a constant-currency basis [2][9] - The margin expansion was driven by strong full-price selling, reduced discounting, and a favorable channel and product mix, which offset higher U.S. tariffs and labor costs [2][9] - Average unit retail (AUR) increased by 18% year over year, significantly contributing to gross margin improvement [2][9] Sales Strategy - Full-price demand was consistent across regions, with Asia showing particularly strong consumer appetite in China and Japan [3] - In North America and Europe, the company reduced discounts without sacrificing comparable-store sales growth, enhancing the quality of sales [3] - Management emphasized that margin expansion is driven by structural brand strength rather than short-term cost benefits [3] Future Outlook - The sustainability of margin expansion depends on maintaining full-price momentum amid ongoing tariff pressures and a volatile consumer environment [4] - Management remains optimistic, citing strong brand appeal, new customer acquisition, and data-driven pricing strategies [4] - Margins may face near-term pressure in Q4 due to tariffs and marketing timing, but the Q3 performance indicates that full-price demand is a core driver of long-term profitability [4] Valuation and Estimates - Ralph Lauren's shares have increased by 7.1% over the past three months, compared to the industry's 9.1% growth [7] - The company trades at a forward price-to-earnings ratio of 20.80X, higher than the industry average of 16.38X [8] - The Zacks Consensus Estimate for fiscal 2026 and fiscal 2027 EPS indicates year-over-year growth of 30.5% and 9.9%, respectively, with recent upward revisions in estimates [10][11]

Group 1 - Pershing Square announced new positions in Hertz (HTZ), Amazon.com (AMZN), and Meta Platforms (META) during its annual investor presentation [1] - The firm exited positions in Chipotle (CMG), Canadian Pacific Kansas City (CP), and Nike (NKE) in 2025, and Hilton (HLT) shares in 2026 [1] - Concerns regarding Meta's AI-related spending are viewed as underestimating the company's long-term upside potential from AI [1] Group 2 - Hertz is identified as a leading vehicle rental provider in the early stages of a turnaround with asymmetric upside potential [1] - Amazon is recognized for operating two of the world's great, category-defining franchises [1]

Core Insights - Donna Karan New York is launching "The Edit," a fashion campaign featuring three influential women, Adriana Lima, Joan Smalls, and Grace Elizabeth, who curate and style pieces from the collection, emphasizing individuality and personal expression [1][5][9] Company Overview - Donna Karan New York, established in 1984, revolutionized women's fashion with the introduction of "Seven Easy Pieces," promoting effortless and empowering dressing [10] - The brand is currently owned by G-III Apparel Group, Ltd., which acquired it in 2016, and is undergoing a relaunch in 2024 while maintaining its original vision [10] Campaign Details - "The Edit" campaign blends storytelling with fashion, showcasing the distinct styles of the three women, each reflecting confidence and individuality through their curated selections [5][9] - Adriana Lima's edit features powerful yet restrained pieces, including a belted trench and lightweight suiting in light gray, projecting an intuitive confidence [6] - Joan Smalls focuses on constructed silhouettes in muted tones, combining city polish with everyday style, emphasizing line and proportion [7] - Grace Elizabeth's edit draws from the Donna Karan Weekend collection, featuring contemporary, streamlined looks in a light color palette, designed for comfort and movement [8] Product Availability - The Spring 2026 collection will be available in select North American retailers and on DonnaKaran.com starting February 12, 2026 [10] Brand Evolution - The campaign illustrates how Donna Karan New York evolves through the women who wear its designs, resonating authentically with modern consumers [9] - The brand aims to inspire confidence with timeless, versatile pieces that integrate seamlessly into daily life, expanding its distribution to reach a broader audience [10]

Core Viewpoint - Wolverine World Wide, Inc. (NYSE:WWW) is considered an overlooked small-cap stock with potential investment opportunities despite recent downgrades from analysts [1][2]. Group 1: Analyst Ratings - Mauricio Serna from UBS reiterated a Buy rating on Wolverine World Wide with a price target of $26 [1]. - John Staszak from Argus Research downgraded the stock from Buy to Hold on January 22, without providing a price target [1]. - Argus Research's cautious rating is attributed to trade policy uncertainties and declining sales in the company's Lifestyle category [2]. Group 2: Financial Performance - In fiscal Q3 2025, Wolverine World Wide reported a 2.9% year-over-year decline in Work Group revenue and a 6.5% decline in Other revenue [2]. - The company is expected to report approximately $510.74 million in revenue and a GAAP EPS of $0.40 for fiscal Q4 2025, with results set to be released on February 26 [4]. Group 3: Business Overview - Wolverine World Wide designs, manufactures, sources, markets, licenses, and distributes a variety of branded footwear, apparel, and accessories [5]. - The company also engages in sourcing operations, direct-to-consumer retail, and licensing for brands such as Stride Rite and Hush Puppies [5]. Group 4: Long-term Outlook - Despite the near-term downgrade, Argus Research maintains a long-term Buy rating for the next five years [4].

Group 1 - The company, Steven Madden, Ltd., plans to release its fourth quarter and fiscal year end 2025 earnings results on February 25, 2026 [1] - A conference call will be hosted by management at 8:30 a.m. Eastern Time to review the earnings results [1] - The live webcast of the management call can be accessed through the company's investor relations website [2] Group 2 - Participants can register for the conference call to receive the dial-in number and a unique PIN [3] - An online archive of the broadcast will be available on the company's investor relations website [3] Group 3 - Steven Madden designs, sources, and markets fashion-forward footwear, accessories, and apparel under various brands [4] - The company has a diverse distribution network that includes department stores, mass merchants, and online retailers [4] - Steven Madden also operates brick-and-mortar retail stores and e-commerce websites, and licenses certain brands to third parties [4]