Calling all creators. Gap Inc. has launched a “creator affiliate and advocacy” platform to elevate the profile of creators who through social media will help amplify the retailer’s brands and their campaigns, and connections to culture. More from WWD The new platform marks “the next step in the company’s digital-first strategy and brand reinvigoration journey,” the San Francisco-based specialty retailer said in a statement Wednesday morning. For years Gap Inc. lost customers and market share but has rec ...

Core Insights - Lululemon's share price has decreased by 66% since its peak in December 2023, leading to a bearish market sentiment despite potential long-term growth opportunities [1][3] - The current valuation of Lululemon is under 12 times trailing-12-month earnings per share, significantly lower than the S&P 500 index, indicating a potential upside of over 100% if the stock aligns with broader market valuations [3][4] - Lululemon has demonstrated strong financial performance, with revenue and net income increasing by 183% and 197% respectively over the past six years, alongside a gross margin of 58.5% and a debt-free balance sheet [4][5] Valuation and Market Sentiment - The stock is currently trading at a bargain valuation, reflecting low market expectations and a significant disconnect from its historical performance [3][6] - The investment community's negative outlook has contributed to the stock's depressed valuation, despite the company's strong fundamentals [3][4] Competitive Landscape and Future Outlook - While competitive factors and macroeconomic headwinds may pressure near-term results, the company is still considered a quality business with strong pricing power [4][5] - Long-term investors are encouraged to consider the potential for recovery and growth in Lululemon's stock price [5][6]

Core Insights - The article discusses "monster stocks," referring to companies with extraordinary performance and potential for long-term growth [1] Company Summaries Lululemon Athletica - Lululemon Athletica (NASDAQ: LULU) has shown an average annual gain of about 15% over the past 15 years, but has experienced average annual losses of 11.6% over the past five years [3][4] - The company is perceived as potentially undervalued due to its international growth, particularly in China, and a partnership with American Express that could enhance growth [4] - Lululemon possesses strong pricing power and a solid balance sheet, although concerns about tariffs and slowing growth exist [5] Amazon.com - Amazon.com (NASDAQ: AMZN) has achieved average annual gains of nearly 25% over the past 15 years and is recognized for its leadership in cloud computing through Amazon Web Services (AWS) [6][7] - The company's revenue primarily comes from its online marketplace, which has lower profit margins, while its digital advertising and AWS segments are higher-margin operations [7] - With a forward-looking price-to-earnings (P/E) ratio of 28.2, significantly below its five-year average of 45.5, Amazon's stock appears attractively valued, supported by investments in AI technology and expansion of its AWS platform [9]

Core Insights - Three apparel stocks have shown significant deterioration in momentum this week, indicating a shift in investor sentiment and market trends [1][3]. Company Summaries - **Allbirds Inc. (NASDAQ:BIRD)**: The momentum percentile dropped from 50.12 to 34.19, a decline of 15.93 points. Despite a year-to-date increase of 92.37% and an 82.61% rise over the past year, the stock exhibits a weaker price trend across all time frames and holds a poor growth ranking [6]. - **Neo-Concept International Group Holdings Ltd. (NASDAQ:NCI)**: The momentum percentile fell from 14.63 to 10.34, a decrease of 4.29 points. The stock is down 36.50% year-to-date and 28.11% over the past year, showing a stronger short-term price trend but weaker medium and long-term trends [7]. - **Shoe Carnival Inc. (NASDAQ:SCVL)**: The momentum score decreased from 11.62 to 11.07, a drop of 0.55 points. The stock has declined 36.95% year-to-date and 47.77% over the past year, with weaker price trends across all time frames and a moderate growth ranking [7].

Core Insights - Stitch Fix, Inc. has launched Stitch Fix Vision, a generative AI-powered tool aimed at enhancing client experiences in fashion discovery and personalization [1][9] - The tool allows users to upload photos and visualize themselves in curated outfits, integrating advanced AI with stylist creativity for a personalized shopping experience [2][3] Product Features - Clients can upload selfies and full-length photos to receive realistic images of themselves styled in customized outfits, which are fully shoppable [3][9] - Vision offers ready-to-shop looks and weekly inspiration through a personalized gallery, making shopping effortless and enjoyable [4][9] Additional Enhancements - Alongside Vision, Stitch Fix is introducing Stylist Connect for direct client-stylist communication and Family Accounts for household styling [5][9] - The company is also launching new themed collections and expanding brand offerings as part of its holiday lineup [5] Financial Performance - Stitch Fix shares have increased by 49.8% over the past six months, outperforming the industry growth of 39.1% [6] - The company trades at a forward price-to-sales ratio of 0.42X, significantly lower than the industry average of 1.85X, indicating potential value [7]

We recently published 10 Stocks Investors Are Dumping. American Eagle Outfitters, Inc. (NYSE:AEO) is one of the worst performers on Monday. American Eagle fell for a 6th straight day on Monday, slashing 6.97 percent to close at $15.76 apiece as investors shifted funds into higher-yielding assets such as artificial intelligence stocks amid the company’s lack of fresh catalysts to spark buying appetite. However, a technical buying is expected to occur by Friday, October 10—the last day to own shares to be ...

Group 1 - Guess?, Inc. (NYSE:GES) is considered one of the most undervalued retail stocks, with UBS raising its price target to $16.75 from $13, maintaining a Neutral rating [1] - Telsey Advisory also raised the price target for Guess?, Inc. to $16.75 from $13, keeping a Market Perform rating, following the announcement of a go-private agreement valued at $1.4 billion with Authentic Brands [2] - The company is involved in the design, marketing, licensing, and distribution of contemporary apparel and accessories for women, men, and children, with operations divided into segments: Americas Retail, Americas Wholesale, Europe, Asia, and Licensing [3]

Group 1 - Carter's, Inc. reported net sales of $585 million in fiscal Q2 2025, a 4% increase from $564 million in the same period last year [1] - Adjusted EPS for the quarter was $0.01, a significant decline from $0.76 in fiscal Q2 2024 [1] - The company manufactures and sells apparel and related accessories for babies and kids under various brands, including Carter's and OshKoshB'gosh [3] Group 2 - Following the earnings release, Citi analyst Paul Lejuez maintained a Hold rating and reduced the price target from $33 to $28 [2] - Barclays also maintained a Sell rating, cutting the price target from $25 to $22 [2] - UBS analyst Jay Sole reiterated a Hold rating while lowering the price target from $32 to $26 [2]

Group 1 - Abercrombie & Fitch Co. (NYSE:ANF) is considered one of the most undervalued retail stocks, with analysts maintaining a Buy rating and setting price targets of $125.00 and $120.00 from Telsey Advisory and BTIG respectively [1][2] - The analyst consensus rating for Abercrombie & Fitch Co. is a Moderate Buy, with a median price target of $85.76, indicating a potential upside of 39.93% from current levels [2] - Abercrombie & Fitch Co. operates as a global omnichannel retailer, offering a variety of apparel, personal care products, and accessories for women, men, and kids, under its brand portfolio which includes Abercrombie brands and Hollister brands [3]

Group 1 - Victoria's Secret & Co. (NYSE:VSCO) is considered one of the most undervalued retail stocks, with a price target raised from $24 to $29 by Telsey Advisory while maintaining a Market Perform rating [1] - The company showed strong momentum in H1 2025, highlighted by a solid Q2 earnings beat, indicating early signs of progress under new leadership and stabilization under the Path to Potential strategy [2] - Victoria's Secret & Co. operates under multiple brands including Victoria's Secret, Victoria's Secret PINK, and Adore Me, offering a range of products such as sleepwear, loungewear, swimwear, athleisure, lingerie, prestige fragrances, and body care [3]