09 Jul 2025 01:30:31 ET │ 11 pages China Economics Reflation Now In Sight on Positive CPI and Supply Side Reform 2.0? CITI'S TAKE Year-on-year CPI reading turned to a positive surprise in June, and an earlier policy meeting hinted at potential Supply Side Reform 2.0. Is reflation in sight now for China? We tend to be cautious. The surprise in CPI could be smaller looking at the sequential change. Some small items such as jewelry could have contributed, while underlying momentum for the broader categories in ...

Core Viewpoint - Zynex, Inc. is under investigation for potential claims related to a class action complaint alleging that the company's board of directors breached their fiduciary duties by misleading investors about financial performance and operational practices [1][2]. Summary by Relevant Sections Allegations of Misconduct - The complaint claims that Zynex's management engaged in practices that artificially inflated the company's stock price through false statements regarding financial performance and compliance with insurance reimbursement policies [2]. - It is alleged that Zynex operated a systemic "oversupplying scheme," shipping excessive quantities of supplies to patients and billing insurers significantly more than necessary [2]. Financial Impact and Regulatory Scrutiny - The extent of Zynex's misconduct was revealed on March 11, 2025, when the company announced a revenue shortfall due to slower payments from insurers, particularly Tricare, which accounted for 20-25% of its annual revenue [3]. - Following the announcement, Zynex's stock price fell by $3.59 per share, or 51.3%, closing at $3.41 per share, indicating a severe loss of shareholder value and highlighting the company's exposure to regulatory and financial risks [4].

Firefly Doubles Share Purchase Plan to A$10M in Response to Strong DemandSuccessful completion of the Equity Raising and the SPP will see FireFly emerge with ~A$145M(1) cash and liquid investment position to drive eight-rig drilling strategy and mining studiesJuly 10, 2025 8:12 PM EDT | Source: FireFly Metals Ltd.Perth, Western Australia--(Newsfile Corp. - July 10, 2025) - FireFly Metals Ltd (ASX: FFM) (TSX: FFM) (Company or FireFly) is pleased to advise that it has doubled the size of its rec ...

>> Heaven knows there's been a lot of hand-wringing about the state of consumer loyalty, but maybe we should be a tad less worried. After the closing, Levi Strauss and Company, the denim kingpin, reported Phenomenal Quarter with 9% organic sales growth, trouncing the estimates. The European business is on fire.Direct to consumer strong margins expanded substantially. Put it all together and the company delivered $0.09%. Earnings beat off a 13 cent basis.Not bad. Even better management raised their full year ...

Market Performance - The small-cap Russell 2000 has outperformed major indexes recently, leading for the 4th session in the last 5, with a gain of +0.48% [1] - The Dow increased by +192 points (+0.43%), the S&P 500 rose by +17 points (+0.27%), and the Nasdaq was up by +19 points (+0.09%) [1] - Over the past month, the Russell 2000 has gained +5%, while other major indexes have hovered around +4% [2] Company Earnings - Levi Strauss & Co. reported fiscal Q2 earnings of 22 cents per share, exceeding the estimated 14 cents, with revenues of $1.4 billion surpassing the projected $1.37 billion [4] - The gross margins for Levi Strauss hit a record +62.6% for the quarter, with Americas' comps up +5%, net revenues in Europe up +14%, and Asia flat [4] - Direct-to-Consumer sales increased by +11% in the quarter, contributing to a +7% jump in stock price following the earnings report [4] Economic Outlook - No significant economic reports or earnings reports are expected on the following Friday, with attention turning to the upcoming Consumer Price Index (CPI) data and Q2 earnings from major banks [5] - Major banks are anticipated to perform well, with assets under management at record highs and strong investment banking performance [6] - The CPI Inflation Rate was reported at a 12-month low of +2.3%, with core inflation at +2.8%, close to the Fed's optimal target of +2.0% [6]

Group 1 - Abercrombie & Fitch's stock increased by 1.38% to $88.24, outperforming the S&P 500's gain of 0.28% and the Dow's gain of 0.43% [1] - The stock has risen by 10.16% over the past month, leading the Retail-Wholesale sector's gain of 0.87% and the S&P 500's gain of 4.37% [1] Group 2 - The company is expected to report an EPS of $2.25, reflecting a 10% decrease from the same quarter last year, with quarterly revenue forecasted at $1.18 billion, up 4.12% year-over-year [2] - For the fiscal year, earnings are projected at $10.17 per share and revenue at $5.18 billion, indicating changes of -4.86% and +4.69% respectively from the previous year [3] Group 3 - Recent revisions to analyst forecasts for Abercrombie & Fitch are important as they indicate changing business trends, with upward revisions suggesting positive sentiment towards the company's operations [4] - The Zacks Rank system, which evaluates estimate revisions, currently ranks Abercrombie & Fitch as 5 (Strong Sell), with a 0.05% decrease in the consensus EPS estimate over the past month [6] Group 4 - Abercrombie & Fitch has a Forward P/E ratio of 8.56, which is a discount compared to the industry average Forward P/E of 17.54 [7] - The Retail - Apparel and Shoes industry, part of the Retail-Wholesale sector, has a Zacks Industry Rank of 208, placing it in the bottom 16% of over 250 industries [7]

Financial Data and Key Metrics Changes - Subscription revenue for Q1 FY 2026 was $132.9 million, exceeding the guidance range of $129 million to $132 million, with a year-over-year growth of 1.1% on a constant currency basis [14] - Total revenue for Q1 was $152.6 million, reflecting a 1% increase compared to the prior year [15] - Non-GAAP gross profit was $102.4 million, a slight decrease of 0.2% year-over-year, with a non-GAAP gross margin of 67.1% [15] - Adjusted EBITDA for Q1 was $52.2 million, representing a margin of 34.2%, compared to $50.7 million and a margin of 33.6% in the prior year [16] - Net loss for Q1 was $15.5 million, significantly improved from a net loss of $42.8 million in the same period last year [16] - Adjusted operating cash flow was $48 million, with cash at the end of Q1 totaling $230.2 million, an increase of $33 million from the previous quarter [17] Business Line Data and Key Metrics Changes - Professional services and other revenue for Q1 was $19.7 million, showing a year-over-year decline of 0.1%, indicating stabilization in that business [14] Company Strategy and Development Direction - The company is focused on returning to organic growth and enhancing client retention through improved management and long-term partnerships [6] - E2Open is set to combine with WiseTech Global, which will expand its capabilities in supply chain logistics and enhance its market position [8][10] - The strategic partnership aims to leverage both companies' strengths in software innovation and client service [9][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to grow and innovate despite a volatile business environment [7] - The acquisition by WiseTech is expected to create new opportunities and enhance the value offered to clients [8][19] - The company anticipates closing the acquisition by the end of the calendar year, with ongoing operations as independent entities until then [12] Other Important Information - The company will not provide quarterly guidance moving forward but will maintain full-year guidance [2] - The focus remains on operational efficiency and cost discipline to support growth [16] Summary of Q&A Session Questions and Answers - There was no live Q&A session conducted due to the pending acquisition, and no individual discussions with analysts or investors were held [2]

Financial Data and Key Metrics Changes - The company reported a 9% increase in organic net revenue for Q2, marking the third consecutive quarter of high single-digit growth [7][33] - Gross margin reached a record 62.6%, expanding 140 basis points year-over-year, driven by lower product costs and a favorable channel mix [36][38] - Adjusted diluted EPS increased by 37% year-over-year to $0.22 [38] Business Line Data and Key Metrics Changes - Direct-to-consumer (DTC) sales grew by 10%, with 13 consecutive quarters of positive comparable sales growth [7][22] - The wholesale business also saw growth, up 7%, with notable performance in Europe [7][33] - Women's business grew by 13%, while men's business increased by 6% [33] Market Data and Key Metrics Changes - The Americas net revenues were up 9%, with operating margins increasing to 20.5% [39] - Europe experienced a 15% increase in net revenues, with a 17.2% operating margin [40] - Asia's net revenues were flat due to strategic actions taken to improve structural economics, but DTC grew double digits in several markets [41] Company Strategy and Development Direction - The company is transitioning to a DTC-first model, with over half of its business now coming from owned and operated channels [9][11] - A focus on becoming a full head-to-toe apparel lifestyle brand is evident, with significant growth in lifestyle categories [9][10] - The company is narrowing its focus by divesting from non-core brands like Dockers, allowing for a more concentrated effort on the Levi's brand [10][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating a challenging global operating environment, citing strong brand equity and consumer connection [11][30] - The company raised its full-year guidance for organic net revenue growth to 4.5% to 5.5% [45] - Despite uncertainties around tariffs, the company believes it is well-positioned to manage potential impacts [44][50] Other Important Information - The company opened 16 net new stores in Q2, expanding its global store network [24] - The loyalty program has nearly 40 million members, contributing to increased consumer engagement and higher average unit retail (AUR) [25] - The company expects to return at least $100 million from the net proceeds of the Dockers sale to shareholders through share repurchases [42] Q&A Session Summary Question: Drivers of demand strength and market share gains - Management noted broad-based growth across all business segments and maintained a top market share position globally and in the U.S. [53][56] Question: Clarification on organic wholesale revenues - Management indicated a prudent approach to wholesale, expecting it to remain flat to slightly positive for the year, with growth driven by digital channels and premium customers [66][70] Question: Marketing initiatives and price increases - The company is investing in brand marketing and has exciting campaigns planned for the fall, with room for further AUR growth across categories [75][80] Question: Margin profile of DTC business - DTC margins have improved significantly, with a focus on revenue per square foot and cost management contributing to this positive trend [95][99] Question: Tariff assumptions and pricing strategy - The company has factored in additional tariffs into its guidance and is implementing strategies to mitigate their impact [103][44]

Financial Data and Key Metrics Changes - Subscription revenue for Q1 FY 2026 was $132.9 million, exceeding the guidance range of $129 million to $132 million, with a year-over-year growth of 1.1% on a constant currency basis [15] - Total revenue for Q1 FY 2026 was $152.6 million, reflecting a 1% increase compared to the prior year [16] - Non-GAAP gross profit was $102.4 million, a slight decrease of 0.2% year-over-year, with a non-GAAP gross margin of 67.1% compared to 67.8% in the previous year [16] - Adjusted EBITDA for Q1 was $52.2 million, representing a margin of 34.2%, compared to $50.7 million and a margin of 33.6% in the prior year [17] - Net loss for Q1 FY 2026 was $15.5 million, significantly improved from a net loss of $42.8 million in the same period last year [17] - Adjusted operating cash flow was $48 million, with cash at the end of Q1 totaling $230.2 million, an increase of $33 million from the previous quarter [18] Business Line Data and Key Metrics Changes - Professional services and other revenue for Q1 was $19.7 million, showing a year-over-year decline of 0.1%, indicating stabilization in that business area [15] Company Strategy and Development Direction - The company is focused on returning to organic growth and enhancing client retention through improved management and prioritizing long-term partnerships [6][9] - E2Open is set to be acquired by WiseTech Global, which is expected to enhance its capabilities in supply chain logistics and broaden its client base [9][10] - The combination with WiseTech aims to create a comprehensive suite of supply chain solutions, extending from sourcing to fulfillment [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning for future growth, emphasizing the importance of customer satisfaction and operational efficiency [6][12] - The acquisition process is on schedule, with expectations for completion by the end of the calendar year [11][12] - The company anticipates continued innovation and value creation for clients post-acquisition [20] Other Important Information - The company will not provide quarterly guidance moving forward due to the pending acquisition [2] - Management highlighted the importance of their skilled workforce and existing client relationships as key assets in the acquisition [10][11] Summary of Q&A Session Questions and Answers - There was no live Q&A session conducted during this earnings call due to the pending acquisition [2]

Financial Data and Key Metrics Changes - The company reported a 9% organic net revenue growth in Q2, marking the third consecutive quarter of high single-digit growth [9][35] - Gross margin reached a record 62.6%, expanding 140 basis points year-over-year, driven by lower product costs and a favorable channel mix [38] - Adjusted diluted EPS increased by 37% to $0.22 compared to the prior year [40] Business Line Data and Key Metrics Changes - Direct-to-consumer (DTC) sales grew by 10%, with 13 consecutive quarters of positive comparable sales growth [9][32] - The wholesale business also saw growth, up 7%, marking its third consecutive quarter of growth [32][35] - Women's business grew by 13%, while men's business increased by 6% [35] Market Data and Key Metrics Changes - The Americas net revenues were up 9%, with operating margins increasing to 20.5% [41] - Europe experienced a 15% increase in net revenues, with a 17.2% operating margin [42] - Asia's net revenues were flat, but DTC grew double digits, indicating strong performance in specific markets like Japan and Turkey [44] Company Strategy and Development Direction - The company is transitioning to a DTC-first model, with over half of its business now coming from owned and operated channels [10][12] - Strategic focus has shifted towards the Levi's brand, with the sale of Dockers and exiting the Denizen and footwear businesses [11][30] - The company aims to become a $10 billion company, emphasizing growth in lifestyle categories beyond denim [12][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating a challenging global operating environment, citing strong brand equity and consumer connection [12][54] - The company raised its full-year guidance for organic net revenue growth to 4.5% to 5.5% [48] - Management highlighted the importance of brand marketing and collaborations, such as with Nike and Beyoncé, to maintain cultural relevance [14][82] Other Important Information - The company generated free cash flow of $146 million and declared an 8% increase in dividends to $0.14 per share [45] - Inventory levels increased by 15%, primarily to support holiday sales and mitigate tariff impacts [46] Q&A Session Summary Question: Drivers of demand strength and market share gains - Management noted broad-based growth across DTC and wholesale, with strong performance in both men's and women's categories [58][64] Question: Gross margin inflection and structural changes - Management highlighted that higher DTC sales, focus on women's products, and exiting less profitable lines contributed to improved gross margins [65][68] Question: Organic wholesale revenues and growth expectations - Management indicated a prudent approach to wholesale growth, expecting it to remain flat to slightly positive for the year [73][75] Question: Marketing initiatives and AUR growth - Management discussed ongoing marketing efforts, including collaborations and campaigns, which are expected to drive brand strength and AUR growth [82][84] Question: DTC margin profile and SG&A rate - Management confirmed that DTC growth is no longer a drag on EBIT margins, with significant improvements in revenue per square foot and cost management [99][100]