Core Viewpoint - BofA Securities highlights rising caution in specialty retail and department store stocks due to tariff concerns, despite solid first-quarter earnings [1] Group 1: Earnings and Market Sentiment - First-quarter earnings were solid, and consumer resilience was noted, but management teams are increasingly uneasy about the second half due to tariff uncertainties [2] - The caution is reflected in conservative sales outlooks across the sector, with a shift in focus towards tariff policy as earnings season concludes [3] Group 2: Tariff Impact and Production Shifts - Most specialty retail and department store stocks have priced in current tariffs of 10% and 30% from China, with further increases potentially leading to significant cuts across the group [1] - Apparel and footwear brands have moved much of their production out of China, making Southeast Asia a new area of concern [3] Group 3: Company-Specific Insights - Ross Stores, Inc. has withdrawn guidance, which analysts view as overly cautious rather than a negative signal [6][7] - Gap, Inc. faces a projected 150 basis-point margin hit in the second half, indicating limited room for price hikes, which aligns with its budget-conscious customer base [7] - Levi Strauss & Co. is expected to see tariff impacts on gross margins starting in the third quarter, while Ralph Lauren Corp anticipates a more significant impact in the second half [7]

Core Viewpoint - Amer Sports has experienced a significant stock price increase of approximately 187% since its public offering in February 2024, positioning it as a leading name in the consumer discretionary sector [1][2] Financial Performance - The company reported a strong Q1 earnings performance, with sales growth exceeding 23%, surpassing analyst expectations of just under 17% [3] - Adjusted diluted earnings per share (EPS) more than doubled from $0.11 to $0.27, significantly exceeding forecasts [4] - Amer Sports raised its full-year EPS guidance midpoint by over 4% and increased its revenue growth guidance from 14% to 16%, both ahead of analyst expectations [4] Brand and Market Position - Amer Sports' success is largely attributed to its key brand, Arc'teryx, known for high-end outdoor clothing, particularly lightweight waterproof jackets priced between $400 and $900 [6] - The technical apparel segment, which includes Arc'teryx, saw the fastest revenue growth at 28%, contributing 45% to total revenue [7] - Sales in Greater China grew by 43%, accounting for around 25% of total revenue, while the U.S. market contributed 26% with a 12% growth rate [7][8] Direct-to-Consumer Strategy - The company's direct-to-consumer (DTC) sales grew by 39%, significantly outpacing the 12% growth in its wholesale channel, indicating a positive trend for higher margins [8] Segment Performance - The Outdoor Performance segment, which includes Salomon footwear and apparel, saw its growth rate nearly double to 25%, making up 34% of total revenue [9] - Salomon generated $1 billion in revenue in 2024, capturing less than 1% of the global $180 billion sneaker market, with plans for further product launches [10] Valuation and Analyst Ratings - Analysts have raised their price targets for Amer Sports, with an average target just under $41, indicating a potential upside of 6% from recent closing prices [11] - The stock's price-to-earnings ratio stands at nearly 49x, significantly above the industry average of 29x, reflecting its strong earnings and sales growth profile [12] Future Outlook - The company is viewed as having high growth potential, particularly in the footwear segment, but expectations for continued outperformance will need to be managed [13]

Core Viewpoint - An analyst downgraded Nike's stock recommendation, leading to a 2% decline in share price, contrasting with a slight increase in the S&P 500 index [1] Group 1: Analyst Downgrade - Wells Fargo analyst Ike Boruchow downgraded Nike's recommendation from overweight (buy) to equal weight (hold) and reduced the price target from $75 to $55 per share [2] - The downgrade was part of a broader update on U.S. apparel and footwear stocks, not limited to Nike [2] Group 2: Economic Concerns - The analyst expressed concerns about the impact of "punitive" tariffs imposed by the Trump administration on companies importing goods from China [3] - Expectations of a mild recession in the U.S. were factored into the analysis, attributed to the ongoing trade war [4] Group 3: Business Strategy Challenges - Nike's efforts to reestablish good relations with retailers after a focus on direct-to-consumer selling are taking longer than expected [4] - The management's strategy shift is likened to turning a battleship, indicating a slow and challenging process [5] - Investors are becoming impatient for more significant improvements in Nike's performance despite the company's strong marketing capabilities [5]

Core Viewpoint - Lululemon Athletica has shown strong revenue and earnings growth but faces challenges due to slowing growth, economic concerns, and competitive pressures Group 1: Financial Performance - Lululemon's fiscal 2024 fourth quarter revenue increased by 13% year over year to $3.6 billion, with diluted EPS rising by 16% to $6.14 [1] - The company's growth in fiscal 2024 was the lowest revenue gain in at least a decade, and management's guidance for fiscal 2025 fell below Wall Street estimates [2] - Lululemon's stock currently trades at a price-to-earnings ratio of 19.1, which is a slight discount to the S&P 500 index and near the lowest valuation in 10 years [7] Group 2: Economic and Competitive Environment - The U.S. economy is facing challenges, including record credit card debt of $1.2 trillion and the lowest consumer confidence in almost three years, which may lead to reduced consumer spending [3] - Lululemon's premium positioning in the market means that consumers may delay purchases during economic uncertainty [4][5] - The competitive landscape is intense, with Lululemon facing competition from both high-end and low-end market segments, and changing fashion trends affecting consumer spending [5][6] Group 3: Future Outlook - Consensus analyst estimates project Lululemon's revenue and EPS to grow at compound annual rates of 7.2% and 8.3%, respectively, between fiscal 2024 and fiscal 2027, which is disappointing compared to historical performance [8] - Despite the weaker economic outlook and fierce competition, the current valuation presents a potential buying opportunity for investors willing to take on risk [9]

Table of Contents As filed with the Securities and Exchange Commission on October 4, 2023. Registration No. 333-274483 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Amendment No. 3 to FORM F-1 REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 Birkenstock Holding plc (Exact name of Registrant as specified in its charter) Not Applicable (Translation of Registrant's name into English) Jersey 3140 Not Applicable (State or other jurisdiction of incorporation or organization) (Prim ...

Table of Contents As filed with the Securities and Exchange Commission on October 2, 2023. Registration No. 333-274483 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Amendment No. 2 to FORM F-1 REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 Birkenstock Holding Limited* (Exact name of Registrant as specified in its charter) Not Applicable (Translation of Registrant's name into English) (State or other jurisdiction of incorporation or organization) Jersey 3140 Not Applicable ...

Table of Contents As filed with the Securities and Exchange Commission on September 15, 2023. Registration No. 333-274483 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Amendment No. 1 to FORM F-1 REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 Birkenstock Holding Limited* Not Applicable (Translation of Registrant's name into English) Jersey 3140 Not Applicable (State or other jurisdiction of incorporation or organization) (Primary Standard Industrial Classification Code Num ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM F-1 REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 Birkenstock Holding Limited* (Exact name of Registrant as specified in its charter) Not Applicable (Translation of Registrant's name into English) Table of Contents As filed with the Securities and Exchange Commission on September 12, 2023 Registration No. 333- 1-2 Berkeley Square London W1J 6EA United Kingdom +44 1534 835600 (Address, including zip code, and telephone num ...