Core Insights - NIKE, Inc. reported fiscal 2026 second quarter financial results, showing modest growth despite challenges in the operating environment [1][2] - The company is focused on long-term growth and profitability through strategic actions, including team realignment and strengthening partner relationships [2] Financial Performance - Second quarter revenues reached $12.4 billion, a 1% increase on a reported basis and flat on a currency-neutral basis [7][8] - NIKE Brand revenues were $12.1 billion, also up 1% on both reported and currency-neutral bases, driven by growth in North America [8] - Wholesale revenues increased to $7.5 billion, up 8% on both reported and currency-neutral bases, primarily due to North America [8] - NIKE Direct revenues fell to $4.6 billion, down 8% on a reported basis and down 9% on a currency-neutral basis, attributed to a 14% decrease in NIKE Brand Digital [8] - Gross margin decreased by 300 basis points to 40.6%, mainly due to higher tariffs in North America [7][8] - Net income was $0.8 billion, a 32% decline, with diluted earnings per share at $0.53, also down 32% [8][10] Shareholder Returns - The company returned approximately $598 million to shareholders through dividends in the second quarter, marking a 7% increase from the previous year [4] Balance Sheet Overview - As of November 30, 2025, total assets were $37.8 billion, a slight decrease from $37.9 billion the previous year [12] - Cash and equivalents and short-term investments totaled $8.3 billion, down approximately $1.4 billion due to cash dividends, bond repayments, and capital expenditures [8][11] - Inventories decreased by 3% to $7.7 billion, reflecting a reduction in units [8][11] Segment Performance - North America segment revenues increased by 9% to $5.6 billion, driven by footwear and apparel growth [12] - Greater China segment revenues fell by 17% to $1.4 billion, with significant declines in footwear and equipment [12] - Europe, Middle East & Africa segment revenues grew by 3% to $3.4 billion, with mixed performance across categories [12]

Core Insights - NIKE, Inc.'s digital ecosystem is a crucial part of its growth strategy but is currently facing a digital slowdown, with revenues from NIKE Digital down 12% and NIKE Direct down 4% in Q1 fiscal 2026 [1][9] - The company's shift towards full-price sales aims to restore brand health but has not yet compensated for declines in organic traffic, which has fallen in double digits [2][9] - Management does not anticipate NIKE Direct returning to growth in fiscal 2026 due to ongoing traffic pressures [2][9] Digital Strategy and Competition - Personalization is a key strength in NIKE's digital strategy, but increased competition from digitally native brands necessitates a stronger focus on community engagement and seamless omnichannel experiences [3][4] - Competitors like adidas and lululemon are also enhancing their digital capabilities, with adidas investing in e-commerce infrastructure and lululemon focusing on improving omnichannel functionality [5][6][7] Financial Performance and Estimates - NIKE shares have increased by 12.3% over the past six months, outperforming the industry average of 9.4% [8] - The forward price-to-earnings ratio for NIKE is 30.40X, higher than the industry average of 27.47X [10] - The Zacks Consensus Estimate indicates a significant year-over-year earnings decline of 23.6% for fiscal 2026, followed by a projected growth of 56.2% for fiscal 2027 [11]

Core Viewpoint - Lululemon Athletica is experiencing significant changes, including a major investment from Elliott Management and potential leadership shifts, which may impact its market position and future performance [2][3][5]. Company Overview - Lululemon Athletica specializes in high-quality athleisure wear, appealing to both fitness enthusiasts and casual wearers, and competes with major brands like Nike and Under Armour [1]. Stock Performance - Lululemon's stock price is currently $207.87, reflecting a 0.55% increase, with fluctuations between $201.01 and $209.45 during the trading day [4]. - The stock has seen a notable increase of nearly 8% in premarket trading due to Elliott Management's acquisition of a $1 billion stake [3][6]. - Over the past year, Lululemon's stock has experienced highs of $423.32 and lows of $159.25, indicating significant volatility [4]. Analyst Ratings - Jefferies maintains a "Hold" rating for Lululemon and has raised the price target from $170 to $200, reflecting a more optimistic outlook for the company's future performance [2][6]. Strategic Changes - Elliott Management's investment positions it as a major shareholder, advocating for a shake-up in the CEO position to rejuvenate the brand [3][5]. - The current CEO is set to step down in January, and Elliott Management is collaborating with Jane Nielsen, a former Ralph Lauren executive, for the CEO role [5].

Core Viewpoint - Lululemon Athletica Inc and Nike Inc are experiencing similar consumer slowdowns, yet the stock market is valuing them differently, with Lululemon trading like a premium franchise and Nike like a value stock despite Lululemon's stronger margins and execution [1][3]. Valuation Comparison - Lululemon's stock is down significantly year-to-date but has shown a rebound recently, while Nike's stock has declined less and trades closer to its annual range [3]. - Lululemon trades at approximately 14x trailing earnings and 16x forward earnings, with an EV/EBITDA around 8.5x, whereas Nike trades at over 33x trailing earnings and more than 40x forward earnings, with an EV/EBITDA exceeding 23x [4]. - The valuation gap is stark, with Lululemon having higher operating margins and stronger returns on capital, yet Nike commands a premium multiple [4][5]. Market Perception - The market seems to view Lululemon's growth challenges as structural, despite the company maintaining industry-leading profitability and balance-sheet flexibility [5]. - Nike continues to hold a premium valuation despite facing margin pressures and a complex turnaround narrative [5]. Elliott Management's Influence - Elliott Management's $1 billion stake in Lululemon reframes the company as a candidate for re-rating rather than a struggling growth story, highlighting potential improvements through leadership changes, buybacks, and expansion in underpenetrated markets [2][6]. - If Lululemon successfully leverages these opportunities, justifying the valuation gap relative to Nike may become increasingly difficult [6].

Core Viewpoint - Lululemon Athletica Inc and Nike Inc are experiencing similar consumer slowdowns, yet the stock market is valuing them differently, with Lululemon trading like a premium franchise and Nike like a value stock despite Lululemon's stronger margins and execution [1][3]. Valuation Comparison - Lululemon's stock is down significantly year-to-date but has rebounded recently, while Nike's stock has seen a milder decline and trades closer to its annual range [3]. - Lululemon trades at approximately 14x trailing earnings and 16x forward earnings, with an EV/EBITDA around 8.5x, whereas Nike trades at over 33x trailing earnings and more than 40x forward earnings, with an EV/EBITDA exceeding 23x [4]. - The valuation gap is stark, with Lululemon generating higher operating margins and stronger returns on capital, yet Nike commands a premium multiple based on richer growth assumptions [4][5]. Market Perception - The market appears to price Lululemon as facing structural growth challenges, despite its industry-leading profitability and balance-sheet flexibility [5]. - Nike continues to maintain a premium valuation despite facing margin pressures and a complex turnaround narrative [5]. Elliott Management's Influence - Elliott Management's $1 billion stake in Lululemon reframes the company as a candidate for re-rating rather than a struggling growth story, highlighting potential improvements through leadership changes, buybacks, and expansion in underpenetrated markets [2][6]. - If Lululemon successfully leverages these improvements, justifying the valuation gap relative to Nike may become increasingly difficult [6].

Core Insights - lululemon athletica inc. (LULU) and Guess? Inc. (GES) are positioned differently in the global apparel market, with LULU focusing on premium athleisure and GES as a heritage lifestyle brand [2][3] Group 1: lululemon (LULU) - LULU has achieved a 7% revenue growth in Q3 of fiscal 2025, with international revenues increasing by 33% and China Mainland revenues up by 46% in constant currency [5][6] - The company's "Power of Three x2" plan aims to double men's, digital, and international revenues by 2026, emphasizing product innovation and category expansion [6] - Despite its premium positioning, LULU faces challenges from rising trade and tariff pressures, which have impacted gross margins [7][8] - LULU's stock trades at a forward P/E of 15.97X, which is below its 3-year median of 37.04X but above GES's 9.7X [21][22] Group 2: Guess (GES) - GES has a strong international presence, particularly in Europe and Asia, and focuses on categories like denim and handbags [9][10] - In Q3 of fiscal 2026, GES reported improved gross margins due to lower promotions and better inventory discipline, despite macro pressures [13] - GES's stock has shown a total return of 47.4% over the past six months, outperforming LULU's decline of 9% [19] - The company is prioritizing margin expansion and cash generation, with ongoing investments in digital platforms and omni-channel capabilities [12][13] Group 3: Comparative Analysis - The Zacks Consensus Estimate for GES suggests an 8% year-over-year sales growth for fiscal 2026, while LULU's estimate indicates a 4.5% growth [14][16] - Recent estimate revisions for GES reflect growing investor confidence, while LULU's estimates show a decline in EPS [14][18][26] - Overall, GES is viewed as a more compelling investment choice due to its attractive valuation, steady international growth, and disciplined cost management [25][26]

Core Thesis - Levi Strauss & Co. is positioned to benefit from a structural shift towards premium denim, with strong consumer demand supported by search data indicating durability rather than fleeting fashion trends [2][3] Company Performance - Levi Strauss & Co. operates in over 110 countries, generating approximately $6.2 billion in annual revenue through various channels including wholesale, direct-to-consumer, and e-commerce [2] - The company's Q3 2025 results showed revenue of $1.54 billion, a 7% year-over-year increase, with gross margins expanding to 61.7% and EPS of $0.34, surpassing consensus expectations [4] Consumer Interest and Market Trends - Consumer interest in denim has significantly rebounded, with Google searches for Levi's jeans increasing by 59% year-over-year, overall brand searches up 52%, and category-level denim searches up 25%, all reaching five-year highs [3] - High-intent e-commerce indicators show Amazon searches for Levi's up 47% year-over-year and Google Shopping searches surging 94%, indicating strong conversion intent [4] Strategic Initiatives - Levi's premium positioning and culturally resonant marketing campaigns, such as the "REIIMAGINE" campaign featuring Beyoncé, have resulted in a 12% growth in women's denim [5] - Management's decision to raise full-year guidance reflects confidence in sustained momentum and operational performance [5] Future Outlook - The breadth and intensity of consumer search growth provide a buffer against execution risks, supporting a probability-weighted outlook for continued outperformance into mid-2026 [5]

Lululemon, famous for its luxury athletic wear, is struggling to emerge from a rough patch with consumers, who have switched gears in recent months. As many consumers face financial strain amid inflation and higher costs of living, Lululemon, which sells apparel at prices exceeding $100, has been struggling to boost its sales. During the third quarter of this year, foot traffic in Lululemon stores increased by 4.2% year over year, according to recent data from Placer.ai. However, Lululemon revealed in i ...

Core Insights - lululemon athletica inc. (LULU) is implementing its "Power of Three x2" strategy, aiming to double men's, digital, and international revenues by fiscal 2026, amidst mixed operating conditions, particularly in the U.S. market [2] Financial Performance - In Q3 fiscal 2025, lululemon achieved a 7% year-over-year revenue growth, driven by a 33% increase in international revenues, with China showing a remarkable 46% growth [3][10] - U.S. revenues, however, declined by 3% in the same quarter due to cautious consumer behavior and increased promotional activities [4][10] Strategic Initiatives - To counteract U.S. challenges, lululemon is executing a three-pillar action plan focused on product creation, activation, and enterprise efficiency, including initiatives to enhance new-style penetration and refresh major product lines [4] Margin Pressures - The company experienced a 290-basis-point decline in gross margin in Q3 due to higher tariffs and markdowns, with expectations of continued margin pressures into fiscal 2026 [5][10] Market Position and Competitors - lululemon's international growth and disciplined financial management suggest that the "Power of Three x2" strategy remains viable, with 2026 being a critical year for proving its effectiveness [6] - Competitors Crocs Inc. (CROX) and Ralph Lauren Corporation (RL) are also navigating similar market conditions, with both companies showing resilience and effective execution of their growth strategies [7][8][9] Valuation and Earnings Estimates - lululemon's shares have increased by 22.6% over the past three months, contrasting with a 0.1% decline in the industry [11] - The company trades at a forward price-to-earnings ratio of 15.97X, which is lower than the industry average of 16.43X [12] - Earnings estimates for fiscal 2025 and 2026 indicate expected declines of 11% and 0.7%, respectively, with recent adjustments showing mixed trends [14]

Kering - Statement Number of Shares and voting rights - 15.12.2025 KeringSociété anonyme with a share capital of €493,683,112Head office: 40, rue de Sèvres – 75007 PARIS552 075 020 RCS PARIS December 18, 2025 Monthly statement on the total number of shares and voting rights (articles L.233-8 of the French Commercial Code and 223-16 of the General Regulation of the French Financial Markets Authority (AMF – Autorité des Marchés Financiers) Date Total number ofsharesTotal number of voting rightstheoretical 1 ...