Core Insights - Tapestry, Inc.'s Coach brand reported strong performance in Q3 of fiscal 2025, with net sales reaching $1.29 billion, marking a 13% year-over-year increase on a reported basis and 15% growth on a constant-currency basis, reinforcing its leadership in the accessible luxury segment [1][9] Financial Performance - Coach achieved a record gross margin of 79% in Q3, driven by operational efficiency and premium pricing power, with Average Unit Retail (AUR) growing in the mid-teens and now approximately 70% higher than in 2019 [2][9] - The leather goods segment experienced strong double-digit growth, particularly from the Tabby and New York collections, with key products selling out quickly [3][9] Strategic Initiatives - The "One Coach" strategy, which aligns product and pricing across outlet and full-price channels, has enhanced consumer engagement and margin expansion [3] - Tapestry has upgraded its fiscal 2025 revenue guidance to $6.95 billion, indicating a 4% growth from the previous year, surpassing earlier expectations of 3% growth [4] Regional Performance - Sales growth expectations include 3-4% in North America, around 30% in Europe, low-single digits in Greater China, and high-single digits in other parts of Asia, with an anticipated operating margin expansion of 100 basis points year-over-year [5] Earnings Forecast - Earnings per share are projected to be $5.00, reflecting high-teens percentage growth from the previous year, exceeding earlier estimates of $4.85-$4.90 [5] - The Zacks Consensus Estimate for the current fiscal year's earnings has increased to $5.05 per share, indicating year-over-year growth of 17.7% [12] Stock Performance - Tapestry's shares have increased by 27.1% over the past six months, outperforming the broader Retail-Apparel and Shoes industry, which declined by 16.8% [6] - The stock is currently trading above its 50 and 200-day simple moving averages, indicating positive market sentiment and investor confidence [10]

Core Insights - Urban Outfitters Inc. (URBN) reported a strong start to fiscal 2026, with gross profit rising 19.8% year over year to a record $489.1 million, resulting in a gross margin of 36.8%, an expansion of 278 basis points from the prior year [1][9] - The company achieved a core margin increase of 204 basis points, driven by lower markdowns in the Retail segment and reduced delivery costs [2] - Operating income surged 72% to $128.2 million, with the operating margin increasing 340 basis points to 9.6% of sales, supported by strong full-price selling and disciplined inventory management [3] Financial Performance - Management expects the second-quarter gross margin to improve by 50-100 basis points year over year, with confidence in achieving a 10% operating margin goal for fiscal 2026 [4] - URBN's shares have rallied 38.4% in the past three months, outperforming the broader Retail-Wholesale sector and the S&P 500 index [6] - The stock is currently trading 10.3% below its 52-week high of $75.80, with technical indicators showing strong performance [9][10] Valuation and Estimates - URBN is trading at a forward 12-month price-to-sales ratio of 0.99, below the industry average of 1.65, indicating potential for investors [13] - The Zacks Consensus Estimate for earnings has been revised upward, with current fiscal year estimates at $4.96 per share, reflecting year-over-year growth of 22.2% [15] - Sales estimates for the current and next fiscal years are pegged at $6.02 billion and $6.42 billion, implying year-over-year growth of 8.5% and 6.6%, respectively [17]

Company Performance - Canada Goose (GOOS) shares decreased by 3.84% to $11.02, underperforming the S&P 500's daily loss of 1.13% [1] - Over the last month, Canada Goose's shares increased by 26.21%, outperforming the Retail-Wholesale sector's loss of 1.63% and the S&P 500's gain of 3.55% [1] Upcoming Earnings - Analysts expect Canada Goose to report earnings of -$0.61 per share, reflecting a year-over-year decline of 5.17% [2] - The consensus estimate for quarterly revenue is $66.96 million, which represents a 3.99% increase from the previous year [2] Annual Forecast - Zacks Consensus Estimates project earnings of $0.88 per share and revenue of $1 billion for the year, indicating changes of +10% and +2.89% respectively compared to the previous year [3] - Recent analyst estimate revisions suggest optimism regarding Canada Goose's business and profitability [3] Analyst Ratings - The Zacks Rank system, which evaluates estimated changes, currently ranks Canada Goose at 2 (Buy) [5] - Over the past month, there has been a 1.74% increase in the Zacks Consensus EPS estimate [5] Valuation Metrics - Canada Goose has a Forward P/E ratio of 13.1, which is lower than the industry average Forward P/E of 17.13 [6] - The company has a PEG ratio of 0.73, compared to the industry average PEG ratio of 1.92 [6] Industry Context - The Retail - Apparel and Shoes industry, which includes Canada Goose, has a Zacks Industry Rank of 168, placing it in the bottom 32% of over 250 industries [7] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]

Core Viewpoint - Deckers Outdoor Corporation (DECK) has experienced a significant decline in stock price, dropping 49% over the past six months, which is substantially worse than the broader retail and market indices [1][4][9] Group 1: Stock Performance - DECK shares have underperformed compared to the Zacks Retail-Apparel and Shoes industry, which fell by 15.7%, and the Retail-Wholesale sector's decline of 3.4% [1][4] - The stock closed at $107.70, nearly 51.9% below its 52-week high of $223.98 reached on January 30, 2025, and is trading below its 50 and 200-day moving averages [6][9] - Compared to peers, Boot Barn's shares increased by 9.6%, while Adidas and Nike saw declines of 7.3% and 18.7%, respectively [5] Group 2: Growth Challenges - The decline in DECK's stock price is attributed to slowing growth and increased competition in the footwear and accessories market, alongside weaker direct-to-consumer (DTC) sales in the U.S. for HOKA [4][9] - Management anticipates up to $150 million in additional costs due to new tariffs, which will impact gross margins that reached a record 57.9% in fiscal 2025 but are expected to decline in fiscal 2026 [15][20] - The company has opted not to provide formal revenue or earnings guidance for fiscal 2026 due to uncertainties in global trade policies and consumer sentiment [19] Group 3: Strategic Initiatives - Deckers is focusing on sustainable growth through global expansion, innovation, and a balanced channel strategy, with HOKA and UGG deriving 34% and 39% of revenues from international markets in fiscal 2025 [21] - The company is investing in innovation, with five HOKA franchises generating over $100 million annually, and is adapting to consumer preferences through digital-first strategies [22] Group 4: Valuation Concerns - DECK is currently trading at a forward 12-month price-to-sales (P/S) ratio of 2.96, significantly higher than the industry average of 1.74 and the sector average of 1.61, raising concerns about its elevated valuation amid current challenges [10][11]

Group 1: Allbirds, Inc. (BIRD) - Allbirds, Inc. shares increased by 12.1% to close at $11.82, with a significant trading volume compared to normal sessions, and a total gain of 57.3% over the past four weeks [1] - The company is focusing on brand marketing, product innovation, and customer experience, which is expected to drive top-line momentum in the second half of the year [1] - The consensus EPS estimate for the upcoming quarter has been revised 5.2% higher, indicating a positive trend that may lead to price appreciation [3] Group 2: Levi Strauss (LEVI) - Levi Strauss' consensus EPS estimate for the upcoming report remains unchanged at $0.13, reflecting an 18.8% decrease compared to the previous year [4] - The stock closed at $17.10, with a 1.3% decline in the last trading session and a return of -1.1% over the past month [3][4] - Levi Strauss currently holds a Zacks Rank of 3 (Hold), indicating a neutral outlook [4]

Momentum investing revolves around the idea of following a stock's recent trend in either direction. In the 'long' context, investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.Even though momentum is a popular stock char ...

Momentum investing revolves around the idea of following a stock's recent trend in either direction. In the 'long' context, investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.While many investors like to look for moment ...

Vera Bradley (VRA) came out with a quarterly loss of $0.36 per share versus the Zacks Consensus Estimate of a loss of $0.13. This compares to loss of $0.21 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -176.92%. A quarter ago, it was expected that this handbag and accessories company would post earnings of $0.10 per share when it actually produced a loss of $0.30, delivering a surprise of -400%.Over the last four quarters, t ...

Victoria's Secret (VSCO) came out with quarterly earnings of $0.09 per share, in line with the Zacks Consensus Estimate. This compares to earnings of $0.12 per share a year ago. These figures are adjusted for non-recurring items.A quarter ago, it was expected that this retailer of lingerie, pajamas and beauty products would post earnings of $2.30 per share when it actually produced earnings of $2.60, delivering a surprise of 13.04%.Over the last four quarters, the company has surpassed consensus EPS estimat ...

Designer Brands (DBI) came out with a quarterly loss of $0.26 per share versus the Zacks Consensus Estimate of $0.01. This compares to earnings of $0.08 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -2,700%. A quarter ago, it was expected that this footwear and accessories retailer would post a loss of $0.47 per share when it actually produced a loss of $0.44, delivering a surprise of 6.38%.Over the last four quarters, the c ...