Target's Universal Thread brand has been improved with better fits, more fashion and reupped quality.John HaynesTarget Corp.’s $1 billion-plus owned denim brand, Universal Thread, today is relaunching its assortment, with new fits, washes and elevated fabrics. The reboot applies not only to the products themselves, but also to the merchandising and display of the collection with a new in-store denim wall that makes nabbing the perfect pair easier than ever by organizing jeans by rise and fabric. With seven ...

Core Insights - A significant percentage of parents are facing financial difficulties, with 59% going into debt to meet their children's needs and 42% carrying credit card debt averaging $14,556 [1][2]. Company Overview - Carter's, a well-known children's clothing retailer, is planning to close 150 stores following disappointing financial results [4][5]. - The company operates over 1,000 retail locations across North America and Mexico and owns several popular brands, including OshKosh B'gosh [4]. Financial Performance - In the third fiscal quarter, Carter's net sales decreased by 0.1% to $757.8 million compared to $758.5 million the previous year [5]. - Net income fell sharply to $11.6 million, down from $58.3 million year-over-year [5]. - Diluted EPS dropped to $0.32 from $1.62 in Q3 2024, while adjusted diluted EPS was $0.74 compared to $1.64 in Q3 2024 [7]. Store Closures and Restructuring - The majority of the store closures will occur in the U.S., with some in Canada and Mexico, and approximately 100 stores are expected to close during fiscal years 2025 and 2026 [6]. - The company is also undergoing a corporate restructuring that will result in 300 office employees losing their jobs [5][6]. - Carter's CEO emphasized the need to refine the physical store fleet [6].

Carter's, the children's clothing retailer that also the popular OshKosh B’gosh brand, will be closing 150 stores and cutting 300 jobs over the next three years. Carter's announced plans to shutter "low-margin" stores in its fiscal third-quarter report and during a call on Oct. 27, saying that roughly 100 of the stores will be shuttered by 2026. The brand also suspended new openings of U.S. locations that use its current store model, along with plans to reduce its product offerings by 20-30%. Tariffs wer ...

Core Insights - Carter's plans to close 150 stores across North America by 2028 due to financial strain from tariffs [1][5] - The company will reduce its office workforce by 300, representing a 15% cut, by the end of 2025 [1] - The annual gross pre-tax impact of additional import duties is estimated to be between $200 million and $250 million [2] Financial Performance - In the third quarter of 2025, net sales decreased by 0.1% to $757.8 million, down from $758.5 million in the same period of the previous fiscal year [2] - The US wholesale segment saw a decline of 5.1%, while gains were noted in US retail and international segments [3] - Operating income fell by 62.2% to $29.1 million, with operating margin shrinking to 3.8% from 10.2% a year earlier [3] Net Income and Future Outlook - Net income for the quarter was $11.6 million, or $0.32 per diluted share, compared to $58.3 million, or $1.62 per diluted share, in the third quarter of 2024 [4] - The company anticipates additional charges in the fourth quarter related to severance and outplacement services, estimated between $4 million to $5 million [5] - Planned store closures are expected to impact stores contributing approximately $110 million in annual net sales [6] Strategic Adjustments - Carter's is adjusting its sourcing strategy, with countries like Vietnam, Cambodia, Bangladesh, and India expected to account for 75% of product sourcing spend in fiscal 2025, while China's share will drop to less than 3% [6]

Core Insights - Lululemon Athletica (LULU) stock is currently trading within a support zone of $172.32 to $190.46, where it has historically recovered, generating an average peak return of 85.2% over the past decade [2] - The fundamentals of LULU appear favorable, with significant revenue growth and strong cash generation metrics, making it an appealing investment opportunity [5] Financial Performance - Revenue growth for Lululemon is reported at 9.2% for the last twelve months (LTM) and an average of 15.8% over the past three years [5] - The company has a free cash flow margin of almost 10.7% and an operating margin of 22.9% LTM [5] - LULU stock is currently trading at a price-to-earnings (PE) ratio of 12.1, which is lower compared to the S&P 500, while offering higher revenue growth and superior operating margins [5] Historical Stock Performance - Lululemon's stock has experienced significant declines during major market events, including a nearly 92% drop during the Global Financial Crisis and a 47% decline during the Covid pandemic [6] - The stock also faced a 31% reduction during the 2018 correction and a 46% drop due to the inflation shock in 2022, indicating vulnerability to market reactions despite solid fundamentals [6] Investment Strategy - The Trefis High Quality (HQ) Portfolio, which includes LULU, has a track record of outperforming benchmarks like the S&P 500, S&P mid-cap, and Russell 2000 indices, providing superior returns with reduced risk [8]

Market Overview - U.S. equities reached record highs driven by optimism regarding trade negotiations between Washington and Beijing, with the Dow Jones Industrial Average increasing by 337.47 points (0.71%) to close at 47,544.59, the S&P 500 rising by 1.23% to 6,875.16, and the Nasdaq Composite leading the rally with a 1.86% jump to 23,637.46 [1] Interest Coverage Ratio Importance - The interest coverage ratio is crucial for assessing a company's ability to meet its debt obligations, with a higher ratio indicating better financial health [2][5] - This ratio is calculated as Earnings before Interest & Taxes (EBIT) divided by Interest Expense, providing insight into how many times a company can cover its interest payments from earnings [6][7] Company Analysis - Stride, Inc. (LRN), Ralph Lauren Corporation (RL), Encompass Health Corporation (EHC), and Boot Barn Holdings, Inc. (BOOT) are highlighted for their strong interest coverage ratios, indicating robust financial health [4][11] - Stride has a projected EPS growth of 8.8% and a stock price increase of 67.6% over the past year [14] - Ralph Lauren is projected to have a 21.7% EPS growth and a stock price increase of 65.8% over the past year [15] - Encompass Health is expected to see a 19% EPS growth with a stock price rise of 27.2% over the past year [16] - Boot Barn is projected to achieve a 12.9% EPS growth and a stock price increase of 56.2% over the past year [17] Investment Strategy - A successful investment strategy should include companies with an interest coverage ratio above the industry average, a favorable Zacks Rank, and a VGM Score of A or B [9][12] - Stocks with a strong historical EPS growth and substantial trading volume are also recommended for better investment outcomes [10][12]

This story was originally published on Retail Dive. To receive daily news and insights, subscribe to our free daily Retail Dive newsletter. Dive Brief: Carter’s, which runs its namesake and OshKosh B’gosh brands, will lay off about 300 corporate employees, or 15% of that workforce, by the end of the year, the company said Monday. This is expected to garner annualized savings of about $35 million, starting next year. The children’s apparel retailer also plans to close about 150 North American stores ov ...

Core Insights - TCP has increased its stake in Weird Fish from 69% to 80%, gaining full decision-making control over the company [1] - Weird Fish is now part of Auralis, a new group established by TCP, which is preparing a £50 million fund for further acquisitions of high street brands [1][2] - Weird Fish recorded revenues of £42.6 million in 2024, a year-on-year increase of £4.4 million, with pre-tax profits growing from £1.3 million to £2.9 million [3] Company Overview - Weird Fish operates 36 stores across the UK and sells through its own retail channels and wholesale partnerships, with products stocked by retailers like Tu and Debenhams [3][5] - The company has been expanding under the leadership of David Butler, who aims to grow the store portfolio to between 80 and 90 locations in the coming years [4] - TCP initially acquired a majority stake in Weird Fish in 2017 and has since supported operational changes and growth initiatives [5]

Core Insights - Carter's Inc. shares fell over 14% in pre-market trading after reporting third-quarter results that missed revenue expectations and suspended its 2025 guidance due to tariff-related uncertainty [1] - The company reported adjusted earnings per share of $0.74, slightly above analyst expectations of $0.72, but revenue of $758 million fell short of the consensus forecast of $771.17 million and remained flat compared to the prior-year quarter [1] Financial Performance - Adjusted operating income decreased by 48.9% to $39.4 million, with operating margin dropping to 5.2% from 10.2% a year earlier [2] - Management attributed the decline in profitability to higher tariff costs, investments in product quality, and expenditures on new store openings [2] Cost-Saving Initiatives - The company announced cost-saving measures aimed at improving efficiency, including the reduction of approximately 300 office-based positions, representing 15% of its corporate workforce, by the end of 2025 [3] - Carter's plans to close around 150 North American stores over the next three years, with these actions expected to generate $35 million in annual savings starting in 2026 [3]

Carter's, Inc. (NYSE: CRI ) reported Q3 '25 results , showing a similar trend to the rest of the fiscal year: resilience in revenues (helped by AUR, down in volumes), but a significant impact on operating margins and profits (downLong-only investment, evaluating companies from an operational, buy-and-hold perspective.Quipus Capital does not focus on market-driven dynamics and future price action. Instead, our articles focus on operational aspects, understanding the long-term earnings power of companies, the ...