Core Insights - Investing in stocks based on valuation metrics, particularly the price-to-sales (P/S) ratio, can identify opportunities with strong upside potential, especially for unprofitable or early-stage growth companies [1][2] Valuation Metrics - The P/S ratio provides a clearer picture of value when earnings are minimal or volatile, making it particularly valuable for assessing companies in recovery or growth phases [2][5] - A P/S ratio below 1 indicates a good bargain, as investors pay less than a dollar for each dollar of revenue generated [6] - The P/S ratio is preferred over the price-to-earnings (P/E) ratio due to the difficulty of manipulating sales figures compared to earnings [7] Investment Opportunities - Low P/S stocks can offer compelling opportunities, often trading below intrinsic value, making them attractive for investors seeking upside potential [3] - Companies with low P/S ratios and strong fundamentals, such as Hamilton Insurance Group, Macy's Inc., G-III Apparel Group, California Water Service Group, and UFP Industries, are highlighted as having potential for higher returns [4][12] Company Profiles - **Hamilton Insurance Group, Ltd. (HG)**: A specialty insurance and reinsurance company benefiting from strong execution and disciplined capital management, with gross premiums written rising significantly [12][13] - **Macy's Inc. (M)**: Undergoing a transformation with its "Bold New Chapter" program, focusing on digital initiatives and omnichannel retailing, currently holds a Zacks Rank 1 and Value Score of A [14][15] - **G-III Apparel Group (GIII)**: Focuses on product differentiation and international expansion, with owned brands generating higher margins, currently holds a Value Score of A and Zacks Rank 2 [16][17] - **California Water Service Group (CWT)**: One of the largest investor-owned water utilities in the U.S., focusing on expansion through acquisitions and high-quality service delivery, currently holds a Value Score of B and Zacks Rank 2 [18][20] - **UFP Industries (UFPI)**: A holding company benefiting from long-term business plans and product innovation, with a focus on acquisitions to solidify its product portfolio, currently holds a Value Score of A and Zacks Rank 2 [21][22]

Group 1 - Levi's is leveraging Super Bowl week to promote San Francisco as a cultural hub, emphasizing its significance beyond just sports [2][3] - The company is launching a Starter collaboration of NFL team jackets in select Bay Area stores, with more collaborative releases planned throughout the week [3] - Levi's has been focusing on collaborations with celebrities and retailers, including a marketing campaign with Beyoncé and a partnership with Nike for footwear and apparel [4] Group 2 - In Q4, Levi's reported a 1% year-over-year revenue increase to $1.8 billion, with a 7% decline in U.S. revenue, while DTC revenue grew by 8% and wholesale dropped by 5% [5] - The company anticipates revenue growth of 5% to 6% for fiscal 2026 [5] - An immersive pop-up experience called "Home Turf" will be held in San Francisco, featuring live music, exclusive sneaker collaborations, and discussions related to the company's initiatives [6]

Core Insights - The company reported a strong third quarter performance, exceeding expectations, with a focus on strategic initiatives for long-term brand success [1][4][20] - The sale of Versace was completed to strengthen financial foundations and reduce debt, ending the quarter with $80 million in net debt [4][25] - Total company revenue decreased by 4% year-over-year to $1.025 billion, with underlying gross margins expanding by 70 basis points due to improved full-price sell-throughs [4][21][23] Financial Performance - Total revenue for the third quarter was $1.025 billion, a decrease of 4% compared to the previous year [4][21] - Earnings per share increased approximately 30% to 81 cents [4] - Gross margin was reported at 60.8%, a decline of 230 basis points, but underlying gross margin expanded by 70 basis points [23][24] Brand Performance - Michael Kors revenue decreased by 5.6% year-over-year, with a modest sequential improvement in retail sales trends [5][22] - Jimmy Choo revenue increased by 5% year-over-year, driven by strong brand momentum and improved retail sales [14][22] - Retail sales for Michael Kors in Europe increased mid-single digits, while The Americas and Asia saw declines [6][22] Strategic Initiatives - The company is focused on enhancing brand desirability through storytelling and luxury product offerings [1][14] - A significant reduction in promotional activity has led to healthier sales mixes and higher average unit retail prices (AURs) [6][11] - The store renovation plan aims to redefine the luxury retail experience, with plans to renovate approximately 50% of the store fleet over the next three years [13] Consumer Engagement - The company has leveraged advanced data analytics to strengthen consumer engagement, resulting in an 8% year-over-year increase in the Michael Kors global consumer database [10] - Influencer-driven content has significantly increased, contributing to a nearly 300% rise in impressions and engagement [10][17] - Jimmy Choo's holiday campaign reached approximately 150 million consumers across social media platforms, enhancing brand awareness [16] Future Outlook - The company anticipates a return to growth in fiscal 2027, supported by strategic initiatives and improved retail trends [20][27] - Revenue guidance for fiscal 2026 is set between $3.45 billion and $3.475 billion, with expectations for gross margin expansion [26][27] - The focus remains on disciplined expense management and leveraging brand strengths to drive sustainable growth [27][79]

Earning season is still rolling on and this is a busy week with a lot of hot names. Now, we are getting a couple of MAG Sevens, but I'm not going to cover those because I've covered them many times in Zack's uh Market Edge podcast and other places recently. So, go check them out there.But it's not the only thing happening this week. So, I brought five top names. They're in all different kinds of industries.These are ones that are going to be on everybody's radar. Let's see what they are. So, the first one i ...

3Q Fiscal Year 2026 Earnings Presentation February 3, 2026 THIRD QUARTER FISCAL 2026 HIGHLIGHTS For a reconciliation of GAAP to Non-GAAP financial information, see appendix. • Revenue and earnings per share exceeded expectations • Revenue decreased 4.0% (-5.9% constant currency) • Gross margin of 60.8% • Adjusted operating margin of 7.7% • Adjusted EPS increased ~30% to $0.81 • Increased consumer database by 8% versus prior year • Significantly reduced debt with proceeds from Versace sale • Net debt of ~$80 ...

Core Insights - Capri Holdings exceeded Wall Street's earnings estimates for the third quarter and matched revenue expectations, with significant improvements in its balance sheet [1][2] Financial Performance - Capri's net income reached $57 million, while adjusted profits increased by 32% to $79 million, or 81 cents per share, surpassing analysts' projections of 78 cents [4] - Revenues for the quarter ending December 27 fell by 4% to $1 billion, with a 5.9% decline in constant currencies [5] - Adjusted operating margins decreased to 7.7% from 9.1% year-over-year [5] Debt Management - The sale of Versace for approximately $1.5 billion significantly reduced Capri's net debt to $80 million from $1.6 billion at the end of September, providing more flexibility for growth in its Michael Kors and Jimmy Choo divisions [2] Strategic Outlook - CEO John Idol indicated that the company aims to return to growth in fiscal 2027, starting at the end of March [3] - The company is focusing on enhancing brand desirability through compelling storytelling and luxury product offerings, supported by advanced data analytics and consumer insights [4] Brand Performance - Michael Kors' revenues decreased by 5.6% to $858 million, with a 7.3% decline in constant currencies, while Jimmy Choo's revenues increased by 5% to $167 million, or 1.9% in constant currencies [5] - The company acknowledged that some strategies are exerting near-term pressure on revenue but are intended to build a stronger foundation for future growth [6]

Core Insights - Arc'teryx has appointed Avery Baker as its first chief brand officer to enhance its global brand strategy and expand market reach [3][8] - The company aims for long-term growth across North America, EMEA, Asia-Pacific, and Greater China, leveraging Baker's experience with iconic brands [3][8] Executive Appointments - Avery Baker will oversee global brand strategy, marketing, communications, and the establishment of a consumer experience team [8] - Tobia Prevedello has been appointed as general manager for Europe, the Middle East, and Africa, succeeding Sven Radtke [4][8] - Recent executive additions also include Matt Bolte as chief merchandising officer and Marissa Pardini as general manager of Veilance [5] Financial Performance - Amer Sports, Arc'teryx's parent company, reported a 30% year-over-year revenue increase to nearly $1.8 billion in Q3 [6] - Technical apparel revenue rose by 31% to $683 million, outdoor performance increased by 36% to $724 million, and ball and racket sports grew by 16% to $350 million [6] - Arc'teryx was recognized as one of the fastest-growing outdoor specialty brands in a Circana report less than two years ago [6] IPO and Future Growth - Amer Sports plans to file for an IPO in early 2024, having raised nearly $1.4 billion from its initial public offering to support brand expansion [7]

Core Insights - Capri Holdings Limited reported its financial results for the third quarter of Fiscal 2026, indicating a performance that exceeded expectations, particularly for its brands Michael Kors and Jimmy Choo [2][3]. Financial Performance - Total revenue for the third quarter was $1.025 billion, a decrease of 4.0% compared to the previous year, and a 5.9% decrease on a constant currency basis [5][6]. - Gross profit was $623 million, with a gross margin of 60.8%, down from $674 million and 63.1% in the prior year [6]. - Income from operations was $46 million, resulting in an operating margin of 4.5%, compared to $26 million and 2.4% in the prior year [6][22]. - Net income was $57 million, or $0.47 per diluted share, compared to $6 million, or $0.05 per diluted share, in the prior year [6][22]. - Adjusted net income was $98 million, or $0.81 per diluted share, compared to $74 million, or $0.63 per diluted share, in the prior year [6]. Brand Performance - Michael Kors revenue was $858 million, a decrease of 5.6% on a reported basis and 7.3% on a constant currency basis [11][21]. - Jimmy Choo revenue increased by 5.0% to $167 million on a reported basis and 1.9% on a constant currency basis [11][21]. Strategic Initiatives - The company completed the sale of Versace, which was aimed at strengthening its financial foundation and reducing debt levels, ending the quarter with $80 million of net debt [2][3]. - The management expressed confidence that ongoing strategic initiatives will support a return to growth in fiscal 2027 and establish a foundation for sustainable performance [2][3]. Outlook - The company provided guidance for Fiscal Year 2026, expecting total revenue of approximately $3.45 to $3.475 billion and diluted earnings per share of approximately $1.30 to $1.40 [12].

U.S. Commerce Secretary Howard Lutnick declared a major victory for the Donald Trump administration's trade agenda on Tuesday, pointing to a surprisingly strong rebound in factory activity as definitive proof that protectionist policies are delivering results.Historic ReboundThe Institute for Supply Management (ISM) reported that the manufacturing sector expanded in January for the first time in over two years, snapping a historic streak of contraction.The Manufacturing PMI surged to 52.6%, up from 47.9% in ...

One of the fastest-growing brands in apparel and footwear isn’t in fast fashion or athleisurewear. It is a company making safety-compliant workboots and water-resistant cargo pants. 🔗: https://t.co/nGiClIGrMk https://t.co/ChGfk2vF1X ...