Let's get to Jim and stop training. You know, >> Carl, just when you thought that Lulu couldn't go any lower and there was nobody left to downgrade, Edm comes on by to hold. I didn't know anyone was left.It's competitive environment. And the top of Lulu, I've always felt, was when Costco came in against them. Uh, so what can I say.I mean, this company now sells at 11 times earnings. This was the premium. Calvin McDonald, we're still waiting for him to come up with something that makes you feel like you shou ...

Core Insights - H&M is focusing on expanding into emerging markets like Brazil and India due to weakening consumer spending in Europe and U.S. tariffs affecting demand in the U.S. [1][4] Expansion Strategy - The expansion into new territories is part of CEO Daniel Erver's strategy to enhance brand appeal and respond more quickly to fashion trends, aiming to improve profitability and performance [2] - H&M is facing competition from Inditex-owned Zara and Shein, prompting the need for strategic adjustments [2] Brazil Expansion - H&M opened its first store in Brazil in August and plans to open two more by the end of November, with an additional four stores planned for 2026, including locations in Rio de Janeiro [3] - The company sees significant growth opportunities in Brazil and other Latin American markets, as well as in India [3] Store Count and Market Presence - H&M has reduced its global store count by 19% from its peak at the end of 2019, with 4,118 stores worldwide, marking the lowest number since mid-2016 [5] - The company plans to close 200 stores in mature markets by 2025, reflecting a strategic shift in its global footprint [5] Flagship Stores and Market Positioning - H&M has opened flagship stores in key tourist and shopping districts, such as Paris and Shanghai, to attract style-conscious consumers [6] - The premium brand Cos is set to launch in India, targeting the affordable luxury segment, with a store opening in Delhi planned for the fourth quarter [7]

Core Insights - H&M's operating profit for Q3 increased by 40% to SEK4.91 billion, up from SEK3.51 billion in the same quarter last year, with an operating margin of 8.6% [1] - The company launched its brand in Brazil in August, indicating strong potential for growth in the Latin American fashion market [2] - H&M's sales rose by 2% in Q3 when adjusted for currency fluctuations, while gross profit remained stable at SEK30.14 billion, leading to a gross margin increase to 52.9% from 51.1% [2][3] Performance Overview - For the first nine months, H&M reported a 2% rise in net sales in local currencies, with gross profit at SEK88.74 billion and a gross margin of 52.5% [4] - The operating profit for the nine-month period was SEK12.03 billion, with an operating margin of 7.1% [4] - The company expects September 2025 sales to match those of the same month in the previous year [4] Strategic Focus - H&M emphasizes a strong customer offering and cost control to navigate ongoing market uncertainties, aiming for long-term sustainable growth [5]

Core Insights - Hennes & Mauritz reported stronger-than-expected third-quarter earnings, indicating positive momentum in its turnaround strategy [1] Financial Performance - The company's third-quarter earnings exceeded market expectations, leading to a significant increase in its share price [1] Market Reaction - Investors reacted positively to the earnings report, reflecting confidence in the retailer's ongoing recovery efforts [1]

Core Insights - H&M's shares increased by 10% following the release of better-than-expected fiscal third-quarter results, indicating positive market reaction to the company's performance and turnaround strategy [1] - The operating profit for H&M rose by 40% year-on-year, reaching 4.9 billion Swedish krona ($522 million), surpassing analyst expectations of 3.7 billion Swedish krona [1] - Net sales for the same period amounted to 57 billion Swedish krona, slightly exceeding the expected 56.8 billion Swedish krona [2]

Core Insights - H&M reported a larger-than-expected increase in third-quarter operating profit [1] - The company anticipates flat local-currency sales for September [1] Financial Performance - The third-quarter operating profit exceeded market expectations [1] - Specific figures regarding the profit increase were not disclosed in the provided content [1] Sales Outlook - H&M expects local-currency sales to remain flat in September, indicating potential challenges ahead [1]

Financial Data and Key Metrics Changes - For Fiscal Year 2025, net revenue was $1.27 billion, down 3.7% year over year, but revenue for the second half of the year grew 2.5% [19] - Q4 net revenue was $311.2 million, representing a 4.4% year-over-year increase on an adjusted basis [20] - Adjusted EBITDA for FY25 was $49.1 million, or a 3.9% margin, up 170 basis points compared to FY24 [20] - Gross margin for FY25 was 44.4%, the highest annual gross margin since FY21, driven by transportation leverage and operational efficiencies [19][20] - Active clients at the end of Q4 were 2.3 million, down 7.9% year over year [20] Business Line Data and Key Metrics Changes - Both women's and men's lines accelerated revenue growth in Q4, with men's business delivering double-digit revenue growth [6][29] - Average order value (AOV) grew 12% year over year, marking the eighth consecutive quarter of AOV growth [6][20] - The average revenue per active client increased by 3% year over year to $549, indicating higher engagement from retained clients [21] Market Data and Key Metrics Changes - The company gained market share in the U.S. apparel market during Q4, outperforming the overall market growth [5][32] - Demand for footwear in the women's business grew over 35%, with strong performance in denim and athleisure categories [29] Company Strategy and Development Direction - The company is focused on enhancing client experience through investments in generative AI and new features like AI style assistant and Stylist Connect [10][12] - Plans for FY26 include a return to full-year revenue growth and continued improvement in active client growth rates [14][24] - The company aims to deepen client-stylist relationships and strengthen its assortment by adding new brands and leveraging AI in private brand development [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the current macro environment while focusing on sustainable, profitable growth [26] - The company anticipates a challenging holiday season but believes its differentiated business model will allow it to gain market share [32][35] - Management highlighted the importance of client-centric service as a competitive advantage in the retail space [16][41] Other Important Information - The company achieved its highest contribution margin in the last decade and completed FY25 with positive free cash flow and no debt [9][20] - Advertising expenses were 9.5% of revenue in Q4, reflecting a disciplined approach to marketing investments [23] Q&A Session Summary Question: Where is the most growth coming from, and how are tariffs impacting AOV? - Management noted that both women's and men's businesses saw accelerated revenue growth, driven by expansion into non-apparel categories and established brands [28] - Tariffs did not impact the improvement in AUR or AOV, thanks to proactive measures taken by the company [30] Question: How does the company plan for the holiday season amidst a volatile outlook? - The company plans to build on last year's holiday success by enhancing flexibility in its offerings and improving its assortment [34] - Management is confident in its ability to gain market share during the holiday season due to its differentiated business model [35]

Core Insights - Stitch Fix, Inc. reported better-than-expected fourth-quarter results, leading to a rise in share price [1] - The company provided fiscal 2026 guidance that exceeded analyst estimates [4] Financial Performance - Quarterly losses were reported at seven cents per share, beating the consensus estimate of ten cents [1] - Quarterly revenue reached $311.22 million, surpassing the Street estimate of $305.83 million [2] - Net revenue decreased by 2.6% year-over-year, but adjusted for an extra week in the previous fiscal year, it increased by 4.4% [5] - Active clients totaled 2.309 million, reflecting a decrease of 1.9% quarter-over-quarter and 7.9% year-over-year [5] - Revenue per active client (RPAC) was $549, marking a 3% increase year-over-year [5] - Gross margin stood at 43.6%, down 100 basis points year-over-year due to transportation deleverage and lower product margins [5] Future Outlook - For the first quarter, Stitch Fix anticipates revenue between $333 million and $338 million, compared to the analyst estimate of $293.12 million [4] - The company expects fiscal 2026 revenue to be in the range of $1.28 billion to $1.33 billion, exceeding the $1.26 billion estimate [4]

Core Viewpoint - Momentum investing focuses on "buying high and selling higher" rather than traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Strategy - Momentum investors often face challenges in determining the right entry point for fast-moving stocks, which can lead to limited upside or downside risks [2] - A safer approach involves investing in bargain stocks that exhibit recent price momentum, utilizing tools like the Zacks Momentum Style Score to identify these opportunities [3] Group 2: Tilly's (TLYS) Stock Analysis - Tilly's has shown a price increase of 9.9% over the past four weeks, indicating growing investor interest [4] - The stock has gained 22.1% over the past 12 weeks, demonstrating its ability to deliver positive returns over a longer timeframe [5] - TLYS has a Momentum Score of B, suggesting it is an opportune time to invest in the stock [6] - The stock has received a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which typically attract more investors [7] - TLYS is trading at a Price-to-Sales ratio of 0.11, indicating it is relatively undervalued, as investors pay only 11 cents for each dollar of sales [7] Group 3: Additional Investment Opportunities - Besides TLYS, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting further investment opportunities [8] - The Zacks Premium Screens offer over 45 different strategies tailored to help investors find winning stock picks [9]

Core Viewpoint - Lululemon has faced significant macroeconomic and competitive challenges, leading to a substantial decline in its stock price from record highs, raising questions about its future growth potential and investment attractiveness [1][2]. Company Overview - Lululemon, founded in 1998, initially gained a strong foothold in the premium yoga and athleisure market through brand loyalty initiatives like free yoga classes and an expansion of its online and physical store presence [4]. - The company experienced setbacks, including a recall of see-through yoga pants in 2013 and leadership changes that impacted its stability [5][6]. Growth Strategy - In 2019, Lululemon launched the "Power of Three" plan aimed at doubling digital and men's revenue and quadrupling international revenue over five years, which it achieved ahead of schedule despite pandemic-related store closures [6][7]. - A subsequent "Power of Three x2" plan was introduced in 2022, targeting similar growth goals, including increasing total revenue from $6.3 billion to $12.5 billion by fiscal 2026 [9]. Financial Performance - Lululemon's revenue growth has slowed, with year-over-year growth rates dropping from 30% in FY 2022 to an expected 4% to 6% in FY 2024, while comparable sales growth has also decreased significantly [11][12]. - The company's gross margin peaked at 59.2% in FY 2024 but has faced pressure due to increased markdowns and inflation-related costs [11][12]. Market Position and Challenges - Lululemon's largest market, North America, has seen a slowdown in women's apparel sales amid tough macroeconomic conditions and increased competition from brands like Nike and Under Armour [11]. - The abrupt resignation of the chief product officer in May 2025 raised concerns about the company's ability to maintain its competitive edge [11]. Stock Valuation - At a stock price of $166, Lululemon is considered undervalued at 12 times next year's earnings, but this discount reflects a significant gap between its near-term outlook and Wall Street expectations [13]. - Analysts project modest revenue growth of 5% to $11.5 billion, with earnings per share expected to increase by 4%, indicating cautious sentiment regarding the company's recovery [12][13].