Caleres Inc. (CAL) came out with quarterly earnings of $0.22 per share, missing the Zacks Consensus Estimate of $0.37 per share. This compares to earnings of $0.88 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -40.54%. A quarter ago, it was expected that this footwear wholesaler and retailer would post earnings of $0.27 per share when it actually produced earnings of $0.33, delivering a surprise of 22.22%.Over the last four ...

Core Viewpoint - NIKE Inc. is experiencing a significant decline in stock performance, with shares dropping below key moving averages, indicating bearish sentiment and concerns over growth prospects [1][5][9]. Stock Performance - On May 23, 2025, NIKE's stock closed at $60.02, below its 50-day simple moving average (SMA) of $60.89, marking a short-term bearish trend [1][3]. - The stock has lost 24.4% over the past three months, underperforming the Zacks Shoes and Retail Apparel industry's decline of 20.2% and the broader Zacks Consumer Discretionary sector's decline of 0.9% [5][6]. - Currently, NIKE's stock trades 38.8% below its 52-week high of $98.04 and 14.8% above its 52-week low of $52.28 [8]. Growth Concerns - The decline in stock price is attributed to concerns regarding NIKE's growth prospects, including weak performance in the lifestyle segment and a drop in digital sales, alongside lower retail traffic in Greater China [9][11]. - Management has indicated potential mid-teen revenue declines due to shipment timing disruptions, adverse foreign exchange rates, and new tariffs on imports [11][12]. Margin and Profitability - NIKE anticipates a gross margin contraction of 400-500 basis points, influenced by prior restructuring charges and ongoing margin pressures [12]. - SG&A expenses are expected to grow in the low to mid-single digits, further squeezing profitability [12]. Earnings Estimates - The Zacks Consensus Estimate for NIKE's fiscal 2025 EPS remains unchanged, while the estimate for fiscal 2026 EPS has decreased by a penny [13]. - For fiscal 2025, revenue and EPS are projected to decline by 10.7% and 45.6%, respectively, with fiscal 2026 estimates indicating further declines of 1.4% and 9.8% [15]. Strategic Initiatives - NIKE is focusing on its "Win Now" strategy, which includes tighter inventory control, accelerated innovation, and strengthened wholesale partnerships to stabilize performance [16][17]. - The company is enhancing its sports-driven identity through faster product development and a shift towards full-price, digitally led sales [17]. Valuation Perspective - NIKE's current forward P/E ratio of 30.86X is significantly higher than the industry average of 24.21X and the S&P 500's average of 21.36X, raising questions about the justification of its premium valuation [18][20]. - Competitors like adidas, Caleres, and Carter's have lower forward P/E ratios, indicating a stretched valuation for NIKE [20]. Long-Term Outlook - Despite near-term challenges, NIKE's long-term potential is supported by its strong brand equity, innovation, and strategic direction aimed at reigniting growth [22]. - The company is well-positioned for long-term, profitable growth, but current market conditions and technical indicators suggest a cautious approach [23][24].

Company Performance - Birkenstock reported quarterly earnings of $0.58 per share, exceeding the Zacks Consensus Estimate of $0.57 per share, and up from $0.44 per share a year ago, representing an earnings surprise of 1.75% [1] - The company posted revenues of $604.17 million for the quarter ended March 2025, which missed the Zacks Consensus Estimate by 3.39%, compared to $522.51 million in the same quarter last year [2] - Over the last four quarters, Birkenstock has surpassed consensus EPS estimates three times and topped consensus revenue estimates two times [2] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.68 on revenues of $720.28 million, and for the current fiscal year, it is $1.85 on revenues of $2.31 billion [7] - The estimate revisions trend for Birkenstock is mixed, resulting in a Zacks Rank 3 (Hold), indicating that shares are expected to perform in line with the market in the near future [6] Industry Context - The Shoes and Retail Apparel industry, to which Birkenstock belongs, is currently in the bottom 11% of over 250 Zacks industries, suggesting potential challenges for stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Birkenstock's stock performance [5]

Company Performance - Wolverine World Wide (WWW) reported quarterly earnings of $0.18 per share, exceeding the Zacks Consensus Estimate of $0.11 per share, and showing an increase from $0.05 per share a year ago, representing an earnings surprise of 63.64% [1] - The company posted revenues of $412.3 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 4.29% and increasing from $394.9 million year-over-year [2] - Over the last four quarters, Wolverine has consistently surpassed consensus EPS estimates and revenue estimates [2] Stock Outlook - Wolverine shares have declined approximately 33.3% since the beginning of the year, in contrast to the S&P 500's decline of 4.3% [3] - The current consensus EPS estimate for the upcoming quarter is $0.24 on revenues of $443.98 million, and for the current fiscal year, it is $1.09 on revenues of $1.81 billion [7] Industry Context - The Shoes and Retail Apparel industry, to which Wolverine belongs, is currently ranked in the bottom 16% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Wolverine's stock performance [5]

Company Performance - Steven Madden reported quarterly earnings of $0.60 per share, exceeding the Zacks Consensus Estimate of $0.46 per share, but down from $0.65 per share a year ago, representing an earnings surprise of 30.43% [1] - The company posted revenues of $553.53 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 1.50%, and showing a slight increase from $552.38 million year-over-year [2] - Over the last four quarters, Steven Madden has surpassed consensus EPS estimates four times and topped consensus revenue estimates three times [2] Stock Performance - Steven Madden shares have declined approximately 52.7% since the beginning of the year, in contrast to the S&P 500's decline of 4.7% [3] - The current consensus EPS estimate for the upcoming quarter is $0.41 on revenues of $607.61 million, and for the current fiscal year, it is $2.06 on revenues of $2.66 billion [7] Industry Outlook - The Shoes and Retail Apparel industry, to which Steven Madden belongs, is currently ranked in the bottom 21% of over 250 Zacks industries, indicating potential challenges ahead [8] - The outlook for the industry can significantly impact the performance of Steven Madden's stock, as empirical research shows that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8]

Core Viewpoint - NIKE Inc. is facing significant challenges due to weak performance in its lifestyle segment, declining digital sales, and lower retail traffic in Greater China, leading to slower revenue growth and tighter profit margins [1][10][12]. Group 1: Stock Performance - NIKE's shares have declined by 9.2% in the past month, underperforming the Shoes and Retail Apparel industry and the S&P 500 index, which saw declines of 8.6% and 1.2% respectively [2]. - The current share price of $57.62 is close to its 52-week low of $52.28, reflecting a 41.2% discount from its 52-week high of $98.04 [6]. Group 2: Revenue and Sales Trends - The company reported a 9% decline in sales for the third quarter of fiscal 2025, with a 17% year-over-year decline in Greater China revenues [11][12]. - NIKE's direct-to-consumer sales fell by 11%, while wholesale sales dropped by 18% [13]. Group 3: Outlook and Guidance - NIKE issued cautious guidance for the fourth quarter of fiscal 2025, projecting mid-teen revenue declines and a gross margin contraction of 400-500 basis points [14][15]. - The Zacks Consensus Estimate indicates year-over-year declines of 10.7% in revenues and 45.6% in EPS for fiscal 2025 [16]. Group 4: Competitive Positioning - NIKE is trading at a forward P/E multiple of 29.34X, higher than the industry average of 22.41X and competitors like lululemon and Adidas [17][19]. - Despite ongoing challenges, NIKE is focusing on innovation and strengthening its brand to adapt to shifting consumer preferences [20][21]. Group 5: Strategic Initiatives - The company is implementing a "Speed Lane" product development model to respond to consumer trends more rapidly [22]. - NIKE is shifting its strategy to strengthen wholesale partnerships while enhancing its digital strategy to improve brand positioning and consumer experience [24][26].

Company Performance - Carter's reported quarterly earnings of $0.66 per share, exceeding the Zacks Consensus Estimate of $0.53 per share, but down from $1.02 per share a year ago, representing an earnings surprise of 24.53% [1] - The company posted revenues of $629.83 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 1.37%, but down from $661.49 million year-over-year [2] - Over the last four quarters, Carter's has surpassed consensus EPS estimates four times and topped consensus revenue estimates three times [2] Stock Outlook - Carter's shares have declined approximately 29.5% since the beginning of the year, compared to a decline of 6.8% for the S&P 500 [3] - The current consensus EPS estimate for the upcoming quarter is $0.37 on revenues of $578.83 million, and for the current fiscal year, it is $3.72 on revenues of $2.79 billion [7] Industry Context - The Shoes and Retail Apparel industry, to which Carter's belongs, is currently ranked in the bottom 8% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Carter's stock performance [5]

Core Viewpoint - Carter's, Inc. is expected to report a decline in both revenue and earnings for the first quarter of 2025, influenced by challenging macroeconomic conditions and reduced consumer demand [1][3][4]. Revenue and Earnings Estimates - The Zacks Consensus Estimate for first-quarter revenues is $621.3 million, reflecting a 6.1% decrease from the previous year [2]. - The consensus estimate for quarterly earnings is 53 cents per share, indicating a 48% decline from the year-ago quarter [2]. - Carter's has a trailing four-quarter earnings surprise of 45.7%, with the last quarter's earnings beating the Zacks Consensus Estimate by 39% [2]. Market Conditions and Challenges - The company faces persistent inflation and high interest rates, which are significant hurdles for its core demographic of families with young children [3]. - Consumer demand for Carter's products has weakened due to reduced discretionary income and the absence of pandemic-era financial support [3]. - The retail segment is expected to experience continued softness in consumer spending, while the wholesale business shows some resilience [4]. Financial Performance Expectations - Carter's projected net sales for the first quarter of 2025 are between $615 million and $625 million, down from $661 million in the previous year [7]. - Adjusted earnings are expected to be between 45 and 55 cents per share, a decline from $1.04 reported in the prior-year quarter [7]. - The company anticipates adjusted operating income of $30 million to $35 million, down from $55 million in the year-ago quarter, with an expected adjusted operating income of $31.4 million, representing a 43% year-over-year decrease [7]. Sales Projections - Total sales in the U.S. Retail business are expected to decline in the mid-single-digit to high-single-digit range [8]. - U.S. Wholesale sales are anticipated to decrease by high-single digits year-over-year, while international sales are expected to dip in the mid-single digits [8]. - Comparable sales in the U.S. Retail business are projected to be down mid- to high-single digits, with a model predicting a 6% decline in U.S. Retail and a 6.9% decline in U.S. Wholesale [8]. Cost and Margin Pressures - The company has been experiencing higher selling, general and administrative expenses (SG&A) as a percentage of sales, due to fixed cost deleverage from lower sales and increased distribution and transportation costs [5]. - The higher SG&A expense rate is expected to strain operating margins and reduce profitability [5]. Strategic Initiatives - Carter's is focusing on strategic initiatives to improve long-term performance, including enhancing merchandise assortments and refining inventory management [9]. - The company is implementing measures such as improved pricing and optimized inventory management, along with strengthening its e-commerce capabilities [9]. Valuation Perspective - From a valuation standpoint, Carter's is trading at a forward 12-month price-to-earnings ratio of 9.89X, which is below its five-year high of 21.14X and the industry average of 21.58X, presenting an attractive opportunity for investors [12]. - CRI's shares have lost 30.5% in the past three months, compared to a 24.5% decline in the industry [13].

Company Performance - Skechers (SKX) closed at $47.63, marking a +1.97% move from the prior day, outperforming the S&P 500's gain of 0.13% [1] - Over the past month, Skechers shares have lost 18.72%, significantly underperforming the Consumer Discretionary sector's loss of 7.24% and the S&P 500's loss of 6.3% [1] Upcoming Earnings - The upcoming earnings release is scheduled for April 24, 2025, with an expected EPS of $1.18, indicating an 11.28% decline compared to the same quarter last year [2] - Revenue is predicted to be $2.44 billion, reflecting an 8.31% increase compared to the same quarter of the previous year [2] Full Year Estimates - For the full year, earnings are projected at $4.42 per share and revenue at $9.72 billion, showing changes of +6.25% and +8.42% respectively from the preceding year [3] - Recent changes to analyst estimates indicate a positive outlook for the company's business and profitability [3] Valuation Metrics - Skechers is currently trading at a Forward P/E ratio of 10.57, which is a premium compared to its industry's Forward P/E of 9.54 [6] - The company has a PEG ratio of 0.75, lower than the average PEG ratio of 0.83 for the Shoes and Retail Apparel industry [7] Industry Context - The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector and currently holds a Zacks Industry Rank of 226, placing it in the bottom 9% of over 250 industries [8] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]