Shares of Under Armour got a lift in early Friday trading, after the athletic gear maker turned a surprise quarterly profit and raised its full-year earnings guidance to more than double what it was j... ...

Core Viewpoint - Under Armour anticipates revenue to decline at the lower end of its fiscal 2026 forecast due to ongoing weak demand in key markets and tariff pressures [1] Group 1: Revenue Expectations - The company expects revenue to fall at the milder end of its fiscal 2026 forecast [1] - Weak demand is particularly noted in the North American and Asia-Pacific markets [1] Group 2: Market Conditions - The company continues to face challenges from weak demand in its primary markets [1] - Tariff pressures are expected to persist into the new year, impacting overall performance [1]

Financial Performance - For fiscal 2026, Under Armour expects adjusted earnings per share to range from $0.10 to $0.11, an increase from the prior outlook of $0.03 to $0.05 [1] - The company anticipates a loss per share between $1.24 and $1.25 [1] - Adjusted operating income is projected to be approximately $110 million, compared to the previous outlook of $95 million to $110 million [1] - Revenue is expected to decline by approximately 4 percent, an improvement from the prior outlook of a 4 to 5 percent decline [1] Quarterly Results - In the third quarter, Under Armour reported a net loss of $430.8 million, a significant decrease from a net income of $1.2 million in the previous year [2] - The net loss per share for class A, B, and C common stock was $1.01, compared to breakeven in the prior year [2] - Adjusted operating income for the quarter was $26 million, while adjusted net income per share was $0.09, slightly up from $0.08 [2] - Revenue decreased by 5 percent to $1.33 billion, or down 6 percent on a currency-neutral basis [2] Management Commentary - Under Armour's CEO Kevin Plank stated that the third quarter adjusted operating results exceeded expectations and expressed optimism about the progress in reigniting brand momentum despite some non-recurring impacts [3] Market Reaction - In pre-market trading on NYSE, Under Armour shares increased by 3.26 percent to $6.50 [4]

Core Insights - Under Armour experienced a smaller-than-expected decline in third-quarter revenue, indicating effective turnaround efforts by the company [1] Company Summary - The sportswear maker's initiatives to simplify its product assortment have contributed to stabilizing demand during the crucial holiday season [1]

Core Insights - Under Armour reported a third-quarter revenue decrease of 5% to $1.33 billion, with a 10% decline in North America and a 3% increase in international revenue [6][10]. - The company experienced an operating loss of $150 million, with adjusted operating income of $26 million after excluding certain expenses [6][10]. - The CEO expressed optimism about the company's transformation and brand momentum, indicating that the December quarter marked a challenging phase but expects greater stability moving forward [2][6]. Financial Performance - Revenue decreased 5% to $1.33 billion, with North America revenue down 10% to $757 million and international revenue up 3% to $577 million [6][10]. - Gross margin declined by 310 basis points to 44.4%, primarily due to higher tariffs and pricing headwinds [6][10]. - Selling, general and administrative (SG&A) expenses increased 4% to $665 million, but adjusted SG&A declined 7% to $563 million when excluding litigation and transformation expenses [6][10]. Restructuring and Transformation - The company is undergoing a restructuring plan expected to cost up to $255 million, with $178 million recorded in restructuring and impairment charges to date [7][10]. - The restructuring plan aims to improve financial and operational efficiency, with a focus on better products and disciplined market presence [2][7]. Outlook - For fiscal 2026, revenue is expected to decline approximately 4%, with a projected operating loss of around $154 million [10]. - Adjusted diluted earnings per share are anticipated to range from $0.10 to $0.11, compared to a previous outlook of $0.03 to $0.05 [10]. Inventory and Liquidity - Inventory decreased by 2% to $1.1 billion, indicating improved inventory management [6][10]. - Cash and cash equivalents totaled $465 million at quarter-end, with no borrowings under the $1.1 billion revolving credit facility [6][10].

Core Viewpoint - Tapestry Inc. (NYSE:TPR) has demonstrated strong earnings performance in Q2 FY2026, leading to a significant increase in stock price and a positive growth outlook for the full year [1][3]. Financial Performance - In Q2 FY2026, Tapestry's net income surged by 81% to $561.3 million, up from $310.4 million year-on-year [2]. - Net sales for the same quarter increased by 14% to $2.5 billion, compared to $2.19 billion in the previous year [2]. - For the six-month period, net income rose by 68% to $836.1 million from $497 million, while net sales increased by 13.5% to $4.2 billion from $3.7 billion [3]. Future Outlook - Tapestry is targeting revenues exceeding $7.75 billion, which represents an 11% growth from the previous year [3]. - Diluted earnings per share are projected to be between $6.40 and $6.45, indicating over 25% growth compared to the prior year and surpassing previous guidance of $5.45 to $5.60 [4]. Stock Performance - Tapestry's stock reached an all-time high of $145.42 during intra-day trading, closing up by 10.21% at $143.19 [1].

Core Viewpoint - Under Armour is expected to report a quarterly loss for Q3, contrasting with a profit from the previous year, indicating potential challenges in financial performance [1]. Financial Performance - Analysts predict Under Armour will report a loss of 1 cent per share for the third quarter, compared to a profit of 8 cents per share in the same quarter last year [1]. - The consensus estimate for quarterly revenue is $1.31 billion, down from $1.4 billion reported last year [1]. Recent Developments - On November 6, Under Armour reported fiscal Q2 2026 results that exceeded Wall Street expectations but subsequently lowered its full-year outlook [2]. - Following the Q2 report, Under Armour's shares fell by 5%, closing at $6.28 [2].

Core Insights - The share of Fortune 500 companies publicly outlining their diversity, equity, and inclusion (DEI) commitments has decreased by nearly two-thirds from the previous year, indicating a significant decline in corporate engagement with DEI policies [1][2]. Group 1: Participation in DEI Initiatives - Only 131 Fortune 500 companies participated in the Corporate Equality Index (CEI) this year, a drop from 377 in 2025, with many non-participating companies being federal contractors [2]. - The decline in participation suggests that corporate leaders are recognizing the risks associated with DEI controversies, which can negatively impact share prices [5]. Group 2: Political and Regulatory Context - The Human Rights Campaign (HRC) president noted that unprecedented pressure from the federal government has led some companies to withdraw from DEI initiatives, citing executive orders and threats of investigations [9]. - An executive order signed by former President Donald Trump aimed to end illegal DEI discrimination and encouraged private sector companies to eliminate illicit DEI policies [8]. Group 3: Public Sentiment and Corporate Response - Activists argue that the decline in DEI participation reflects a disconnect between corporate policies and the views of average Americans, suggesting that such policies may not be popular [5][6]. - Companies that maintain transparency and clear communication regarding their DEI policies tend to earn trust and retain talent, with shareholders largely rejecting anti-DEI measures [13].

Core Insights - Alo is accelerating its entry into the Chinese market, starting with a store in Hong Kong instead of Shanghai or Beijing [1][2] - The company has updated multiple job positions on its website for the Asia-Pacific region, indicating a significant commitment to the Chinese market [2][4] - Alo's strategy appears to shift from focusing on professional sports to positioning itself as a fashion lifestyle brand, similar to luxury brands [8][10] Group 1: Market Entry Strategy - Alo has opened a store in K11 MUSEA, Tsim Sha Tsui, Hong Kong, which was previously a Fortnum & Mason store [1] - The company is looking for prime retail locations in Shanghai, particularly in luxury shopping areas, which has slowed down the store selection process [2] - Alo's entry into the Chinese market is expected to be followed by openings in Shanghai and Beijing after the Hong Kong store launch [4] Group 2: Competitive Landscape - Alo faces competition from other high-end sports brands like Vuori and NikeSkims, which are also expanding in China [4][6] - Vuori has recently expanded its team and opened stores in Hangzhou and Beijing, indicating a competitive push in the market [4] - NikeSkims is set to enter the Chinese market in 2026, further intensifying competition for Alo [6] Group 3: Brand Positioning - Alo is shifting its focus from being a yoga apparel brand to a fashion lifestyle brand, drawing parallels with luxury brands like Miu Miu [8][10] - The brand's recent product offerings, including luxury handbags and collaborations, reflect this new direction [8] - Alo's approach contrasts with traditional sports brands, as it aims to capture a segment of the fashion and luxury market rather than just the fitness market [10] Group 4: Challenges and Considerations - Alo faces challenges related to product quality and counterfeit issues in the Chinese market, which could impact brand perception [12][13] - The company may need a strong legal team to address these challenges and ensure brand protection in China [13] - The luxury strategy that has worked in the U.S. may not be easily replicated in China, where the market dynamics differ [15]

Core Viewpoint - Ralph Lauren reported strong third-quarter earnings and revenue, exceeding Wall Street expectations, but shares fell due to margin pressure warnings from tariffs [1][3] Group 1: Earnings and Revenue Performance - The company posted earnings per share of $5.82, slightly above analyst estimates of $5.78 [1] - Revenue rose 12% year over year to $2.41 billion, surpassing expectations of $2.30 billion [1] - On an adjusted basis, earnings per share reached $6.22, up 29% from a year earlier, while reported EPS increased 25% from $4.66 [2] - Revenue grew 10% in constant currency terms, with foreign exchange contributing approximately 220 basis points to growth [2] Group 2: Consumer Demand and Product Performance - Sales were driven by demand for products such as Polo shirts and leather handbags, with affluent consumers continuing to spend on luxury goods despite economic pressures on lower- and middle-income households [2] Group 3: Future Outlook - The company expects fourth-quarter operating margin to contract by approximately 80 to 120 basis points due to higher U.S. tariffs [3] - For fiscal 2026, the company raised its outlook for constant-currency revenue growth to the high-single-digit to low-double-digit range, up from the previous forecast of 5% to 7% [4] - Operating margin expansion is projected at 100 to 140 basis points, compared to an earlier estimate of 60 to 80 basis points [4] - Fourth-quarter revenue is expected to grow at a mid-single-digit rate in constant currency [4]