The chief executive of American Eagle Outfitters resisted pressure on social media to pull its provocative ad campaign featuring Sydney Sweeney — telling his charges to remain calm in the face of accusations that the brand was promoting racist and sexist tropes, according to a report.In the weeks that followed, the campaign proved to be a hit — bringing in almost a million new customers to American Eagle between July and September, according to the Wall Street Journal. The company’s stock surged and sales o ...

Core Insights - Diamond Hill Capital's "Select Strategy" reported a positive but underperforming return of 7.31% (net) in Q2 2025 compared to the Russell 3000 Index's 10.99% [1] - The overall market saw a rebound with the Russell 3000 Index rising approximately 11%, driven primarily by large-cap stocks [1] Company Performance - Lululemon Athletica Inc. (NASDAQ:LULU) experienced a one-month return of -10.54% and a 52-week decline of 32.78%, closing at $179.11 per share with a market capitalization of $20.907 billion on September 29, 2025 [2] - The company faced a challenging quarter with slowed sales both in the US and internationally, contributing to its status as a bottom performer in the portfolio [3] Investment Sentiment - Despite recent struggles, Diamond Hill Capital believes Lululemon remains a relevant brand and is trading at an attractive discount to its intrinsic value [3] - Lululemon is not among the top 30 most popular stocks among hedge funds, although the number of hedge funds holding its shares increased from 48 to 55 in the last quarter [4]

Several American apparel brands and retailers are seeing a dip in their Growth metrics in Benzinga’s Edge Stock Rankings over the past week. 3 Apparel Stocks With Dropping Growth MetricsIn Benzinga’s Edge Rankings, the Growth metric is calculated based on the pace at which a company’s revenue and earnings grow, with importance given to both long-term trends as well as recent performances. See Also: Forget Nvidia And Arm, These 3 Chip Stocks Are Flashing Bullish SignalsA surge in the growth score essentially ...

Core Viewpoint - Opendoor Technologies has gained significant attention as a meme stock, experiencing a dramatic rise from a low of $0.51 in June, driven by retail investor interest and hopes for recovery [1][2] Company Overview: Opendoor Technologies - The stock has increased over 1,500% from its June low, but has faced declines recently [2] Company Overview: Stitch Fix - Stitch Fix is seen as a potential turnaround stock, having previously been a promising player in retail apparel but currently facing challenges [3][6] - The company utilizes AI algorithms to personalize clothing selections for clients, offering a unique shopping experience [5] - Despite initial success during the COVID-19 pandemic, growth has stagnated, and the company has struggled to regain momentum [6] Financial Performance: Stitch Fix - For the fiscal fourth quarter of 2025, Stitch Fix reported an 8% decrease in active clients, which is critical for future growth [10] - The company has no debt, providing some financial stability [9] - Revenue adjusted for an extra week increased by 4.4% year over year, with revenue per active client (RPAC) rising 3% to $549 [15] - Average order value for fixes increased by 12% year over year, marking the eighth consecutive quarter of growth [15] - Loss per share improved to $0.07 from $0.29 the previous year [15] Market Environment - The retail environment is challenging, with consumers reducing discretionary spending, complicating the company's recovery efforts [11] - Management is implementing changes to align with consumer demand, including adding new categories and leveraging AI capabilities [13] Investment Sentiment - Despite a stock drop following fourth-quarter results, Stitch Fix's stock is up 9% this year, but it trades at a low price-to-sales ratio of 0.5, indicating potential value traps [14] - There is speculation that retail investors could rally around Stitch Fix similar to Opendoor, but caution is advised until there are signs of improvement [12][14]

We recently published 15 Stocks Jim Cramer Mentioned As He Said Quantum Computing Worried Him. lululemon athletica inc. (NASDAQ:LULU) is one of the stocks Jim Cramer recently discussed. lululemon athletica inc. (NASDAQ:LULU) made the news earlier this month after its shares closed 18.6% lower on September 5th. Media reports attributed the dip to the firm’s latest earnings release. As for Cramer, he has frequently discussed lululemon athletica inc. (NASDAQ:LULU)’s legal troubles with Costco. The firm has s ...

This audio is auto-generated. Please let us know if you have feedback Banana Republic is looking to the late 20th century — when it was still selling safari hats and other accoutrements of adventure — to help reinvigorate sales.At its website and some stores, the Gap Inc. brand is offering "Banana Republic Archive," a collection of apparel from the ’70s, ’80s and ’90s that also features limited drops. And last week it acquired Abandoned Republic, a trove of catalogs, store signage and other marketing mater ...

Core Viewpoint - Lululemon Athletica (LULU) is currently rated as a Zacks Rank 5 (Strong Sell) despite recently reporting a solid earnings beat, indicating underlying issues that have led to a stock sell-off [1]. Company Overview - Lululemon Athletica, Inc. specializes in designing, distributing, and retailing technical athletic apparel, footwear, and accessories, operating through segments such as Company-Operated Stores, Direct to Consumer, and Other [2]. Earnings History - The company has consistently beaten the Zacks Consensus Estimate in the last four quarters, with the most recent quarter reporting an EPS of $3.10 against a consensus of $2.84, resulting in a positive earnings surprise of 9.15% [4][5]. Earnings Estimates - Recent trends show a decline in earnings estimates for Lululemon, with the current fiscal year consensus dropping from $14.72 to $13.01 and the next fiscal year estimate falling from $15.89 to $13.22 over the past 60 days, contributing to its Zacks Rank of 5 [6]. Market Context - A broader trend in the Zacks universe indicates that many stocks are experiencing negative earnings estimate revisions, which is affecting their rankings, including Lululemon [7].

Economic Outlook - Economists expect September payrolls to rise by just 39,000, with the unemployment rate remaining steady at 3.9% and average hourly earnings increasing by 0.3% [4] - Job growth has significantly slowed, averaging only 29,000 in the three months through August, while the unemployment rate has risen to 4.3% in August, the highest in nearly four years [5] - The weak jobs market was a key reason for the Fed's recent rate cut, but inflation remains a concern with the core PCE price index at an annual rate of 2.9%, above the 2% target [5] Federal Reserve and Political Dynamics - The odds of two Fed rate cuts this year have decreased to 65% from about 80% as longer-term Treasury yields rose, reflecting Powell's reluctance to ease rates further [6] - President Trump has indicated intentions to remove Fed Governor Lisa Cook, raising concerns about central bank independence, as no president has previously removed a Fed governor [7] - A brief filed with the Supreme Court argues against Cook's removal and supports Fed independence, signed by notable former Fed Chairs and Treasury Secretaries [8] Government Shutdown Implications - A potential government shutdown could impact the release of economic data, with a shutdown expected to begin if Congress fails to reach an agreement [9] - Trump has agreed to meet with congressional leaders to discuss funding, with the odds of a shutdown fluctuating between 64% and 83% in prediction markets [10] Corporate Earnings Reports - Nike (NKE) is set to report earnings on Tuesday, with expectations of EPS at $0.27 on revenue of $10.99 billion, focusing on China sales and inventory management [11] - Other companies reporting include Carnival (CCL), Jefferies Financial (JEF), Paychex (PAYX), and Lamb Weston (LW) [11] Mergers and Acquisitions - Electronic Arts (EA) stock surged nearly 15% after reports of a group of investors, including Silver Lake and Saudi Arabia's sovereign wealth fund, looking to take the company private, potentially valuing EA at $50 billion [12][13] - The largest leveraged buyout in history could be in play, surpassing previous top deals [13] Corporate Spin-offs - Versant Media Group has filed for a Nasdaq listing as it spins off from Comcast (CMCSA), holding assets from various cable networks and digital platforms [14] - The new entity will maintain a dual-class stock structure, with Class A shares controlling two-thirds of voting power [15] Analyst Coverage Changes - Wedbush has dropped coverage of GameStop (GME), leaving the stock without a Wall Street rating, with a previous target price of $13.50, nearly 50% below current levels [16][17] - GameStop's stock performance has been challenging for traditional analysis, focusing on cash reserves and crypto investments rather than fundamentals [18]

Core Insights - Lululemon Athletica is experiencing a challenging period, but the underlying business remains promising with a strong brand following and potential for growth [1][15] Group 1: Business Model and Market Position - Lululemon sells luxury athletic wear, which positions it differently from basic clothing brands, allowing for higher margins but requiring adherence to higher fashion standards [2] - The brand's popularity can lead to volatility in financial performance, influenced by changing consumer preferences, economic conditions, and potential customer fatigue [5] Group 2: Growth Strategies - Lululemon's growth can be attributed to two main methods: improving same-store sales and expanding its store count, with 14 new stores opened in Q2 2025, increasing the total to 784 [10] - Despite a 4% decline in same-store sales in the Americas, overall revenue in that region increased by 1% due to new store openings [10] - Internationally, Lululemon saw a 15% increase in same-store sales and a 22% rise in overall sales, indicating strong growth potential in that segment [11] Group 3: Valuation and Investment Considerations - The stock has lost approximately two-thirds of its value since late 2023, which is significant but not unprecedented for Lululemon, as it has experienced similar declines in the past [12] - Current valuation metrics, including price-to-sales, price-to-earnings, and price-to-book-value ratios, are below their five-year averages, suggesting the stock may be undervalued [13] - Long-term investors who can tolerate the volatility of a high-end, fashion-driven retailer may find Lululemon an attractive investment opportunity [15]

Core Viewpoint - Nike is set to report its fiscal first quarter results on September 30, amid challenges from high inflation and a cost-conscious consumer, leading to a decline in stock performance [1][2] Group 1: Financial Expectations - Nike's Q1 sales are expected to decline by 5% to $11 billion compared to $11.59 billion in the same quarter last year [5] - The company's Q1 EPS is projected to fall to $0.28, down from $0.70 per share a year ago, indicating a steeper decline in profitability [5] - Nike's total sales are anticipated to dip 1% in fiscal 2026 but are projected to rebound with a 6% increase in FY27 to $48.41 billion [10] Group 2: Strategic Focus - Investor sentiment is improving as Nike plans to refocus on product innovation, storytelling marketing, and wholesale distribution after previously alienating partners [2] - The decline in revenue is partly attributed to tariff headwinds, especially in China, with a projected 14% drop in quarterly revenue from the Greater China segment [6][9] - Nike has a mature supply chain and a diverse global manufacturing infrastructure, which positions it better to handle tariff impacts compared to competitors [9] Group 3: Market Performance - Nike's stock has recovered from a 52-week low of $52 but remains over 20% below its one-year high of $90 [2] - The company has exceeded the Zacks EPS Consensus for eight consecutive quarters, with an average earnings surprise of 41.99% in the last four quarterly reports [6][7] - Nike's stock currently trades at a premium to the broader market at 41X forward earnings, making favorable guidance crucial for its continued rebound [12]