Core Insights - Five stocks have been added to the Zacks Rank 1 (Strong Buy) List, indicating strong potential for investment returns Company Summaries - **PVH (PVH)**: Specializes in designing and marketing branded apparel, with a Zacks Consensus Estimate for current year earnings increasing by 8.3% over the last 60 days [1] - **Maximus (MMS)**: Operates global government health and human services programs, with a Zacks Consensus Estimate for current year earnings increasing by 6.7% over the last 60 days [2] - **Allianz (ALIZY)**: Provides property-casualty insurance, life/health insurance, and asset management services, with a Zacks Consensus Estimate for current year earnings increasing by 6.3% over the last 60 days [2] - **Popular (BPOP)**: Offers a comprehensive suite of banking and financial services, with a Zacks Consensus Estimate for current year earnings increasing by 4.8% over the last 60 days [3] - **Agilysys (AGYS)**: A leading provider of IT solutions for corporate and public-sector customers, with a Zacks Consensus Estimate for current year earnings increasing by 4.4% over the last 60 days [4]

Core Insights - Topgolf Callaway Brands Corp. has successfully completed the sale of its Jack Wolfskin business to ANTA Sports for $290 million, subject to customary closing adjustments [1][2] - The transaction, effective May 31, 2025, marks a significant milestone for the company as it refocuses on its core businesses and enhances financial flexibility ahead of the planned separation of Topgolf from its core operations [2][3] - The President and CEO of Topgolf Callaway Brands expressed confidence in ANTA Sports to maintain the integrity of the Jack Wolfskin brand and acknowledged the contributions of Jack Wolfskin employees [3] Company Overview - Topgolf Callaway Brands Corp. is a tech-enabled Modern Golf and active lifestyle company, offering golf equipment, apparel, and entertainment, with a portfolio that includes Topgolf, Callaway Golf, TravisMathew, Odyssey, and OGIO [4]

Core Viewpoint - lululemon athletica inc. (LULU) is expected to report growth in both sales and earnings for the first quarter of fiscal 2025, with sales estimated at $2.35 billion, reflecting a 6.6% increase year-over-year [1] Financial Performance - The consensus estimate for fiscal fourth-quarter earnings is $2.58 per share, indicating a 1.6% growth from the previous year [2] - lululemon has a trailing four-quarter earnings surprise average of 6.6%, suggesting a strong performance trend [2] - The company anticipates EPS for the first quarter to be between $2.53 and $2.58, compared to $2.54 in the prior-year quarter [10] Growth Drivers - Continued business momentum is expected in Q1, driven by positive consumer response, increased in-store traffic, and robust online performance [4] - The company is benefiting from strong international market performance, particularly in Mainland China, with a predicted 2.3% year-over-year revenue increase [6] - lululemon's Power of Three x2 growth plan focuses on product innovation, guest experience, and market expansion, which are crucial for brand awareness and customer loyalty [5][19] Challenges - The company faces challenges from inflation and higher interest rates, leading to soft discretionary spending and struggles in the women's category in the Americas [7][18] - Tariff dynamics are expected to negatively impact margins due to elevated costs, with management expressing concerns over rising tariffs on imports from Mexico and China [8] - The gross margin is expected to remain flat year-over-year, with a decline in operating margin anticipated [9][10] Market Performance - lululemon's shares have declined 8.9% over the past three months, underperforming the industry and broader market indices [11] - The stock currently trades at a forward 12-month P/E multiple of 20.74X, above the industry average of 12.72X, indicating strong investor expectations but potential overvaluation [15][17] Long-term Outlook - Despite near-term challenges, lululemon's long-term growth strategy remains intact, with a goal to double net revenues to $12.5 billion by 2026 [19] - The company aims to quadruple international revenues, targeting nearly 50% of total sales from these markets [20] - lululemon's strategic initiatives and international growth are expected to drive sustained value over time, making it a fundamentally strong business [21][22]

Core Insights - Bath & Body Works (BBWI) reported strong first-quarter fiscal 2025 results, with net sales meeting estimates and earnings surpassing expectations, showing year-over-year improvement [1][3] Financial Performance - Adjusted earnings were 49 cents per share, beating the Zacks Consensus Estimate of 47 cents, and increased by 28.9% from 38 cents in the prior year [3] - Net sales rose 2.9% year over year to $1,424 million, marking the strongest underlying sales performance since fiscal 2021, driven by successful product innovation and collaboration with Disney [3] - U.S. and Canada store net sales increased 4.3% to $1.11 billion, exceeding the consensus estimate of $1.09 billion, while direct sales fell 4.3% to $250 million, missing the estimate [4] Margin Analysis - Gross profit increased 6.6% year over year to $646 million, with gross margin expanding 160 basis points to 45.4% [5] - Operating income rose 11.8% to $209 million, with operating margin increasing 120 basis points to 14.7% [6] Store Operations - The company ended the quarter with 1,900 stores, including 1,787 in the U.S. and 113 in Canada, opening 13 and closing 8 stores during the quarter [8] - Internationally, partners opened 14 stores and closed 19, ending with 524 stores, with plans for at least 30 net new store openings in fiscal 2025 [9] Financial Health - Cash and cash equivalents stood at $636 million, with long-term debt of $3.89 billion and long-term operating lease liabilities of $895 million [10] - Total inventory increased by 7% year over year, attributed to tariffs and strategic inventory management [11] Future Outlook - For Q2 fiscal 2025, net sales are expected to be flat to up 2% year over year, with a gross margin forecast of 41% [12][14] - Fiscal 2025 net sales growth is projected at 1-3%, with a gross margin of 44% and full-year earnings per share estimated between $3.25 and $3.60 [16][18] - Free cash flow is projected between $750 million and $850 million, with an annual dividend of 80 cents per share and $300 million planned for share repurchases [19]

Core Viewpoint - Deckers Outdoor has experienced significant stock losses in 2025, with a nearly 50% decline year-to-date, contrasting with slight gains in the S&P 500, yet the company's fundamentals remain strong, making it appealing for long-term investors [1][8] Financial Performance - Deckers reported mixed fiscal Q4 results, surpassing earnings expectations with Q4 revenue climbing 6.5% to over $1 billion and EPS rising to $1.00 from $0.82, driven by strong brand performance from HOKA and UGG [2] - HOKA saw a 10% increase in Q4 and 23.6% for the total year, while UGG rose by 3.6% and 13.1%, respectively [2] - Management anticipates Q1 sales between $890–$910 million, representing an 8%–10% year-over-year increase [2] Valuation and Fundamentals - DECK is currently trading at a price-to-earnings ratio of about 17x, down from over 32 at the close of 2024, significantly below the S&P 500's current P/E of 26 [3] - The company generates over $1 billion in annual cash flow with a market capitalization of $16 billion, equating to a 6% cash yield, alongside a 16% revenue growth in the past year [4] Growth and Profitability - Revenue has surged at an impressive annual rate of 16.4% over the last three years, more than triple the pace of the S&P 500, with operating margins at 24.9% and net income margins at 19.4% [5] Financial Strength - Deckers has a solid balance sheet with only $276 million in debt and $2.2 billion in cash, resulting in a debt-to-equity ratio of 1.3%, significantly lower than the average S&P 500 company [6] Downturn Resilience - Historically, Deckers has experienced sharper declines than the S&P 500 during market downturns but has shown robust recovery potential, rebounding significantly after past crises [7] Overall Assessment - Deckers is characterized as a high-quality growth company facing temporary challenges, with strong fundamentals, robust brands, a healthy balance sheet, and attractive valuation [8][10]

Group 1 - The company has approved the 2024 stock option and restricted stock incentive plan, which includes the draft and management measures [1][2] - The incentive plan's object list was publicly announced, and no objections were raised during the public notice period [2] - The first extraordinary shareholders' meeting of 2024 approved the incentive plan, granting the board the authority to determine the grant dates for stock options and restricted stocks [2][3] Group 2 - The company completed the initial registration of stock options on July 15, 2024, with a total of 18.071 million options granted [3] - The company also announced the grant of 3.3531 million restricted stocks on July 19, 2024 [3] - On March 27, 2025, the company approved the cancellation of stock options and repurchase of restricted stocks held by certain departed incentive objects [4] Group 3 - The reserved rights for 1.569 million stock options have expired as the company did not identify the incentive objects within 12 months after the plan's approval [5]

Core Viewpoint - Gap is anticipating that new tariffs will significantly impact its business, estimating costs between $250 million to $300 million if tariffs remain in effect, leading to a more than 15% drop in shares after earnings announcement [1][3] Financial Performance - For the fiscal first quarter, Gap reported a net income of $193 million (51 cents per share), an increase from $158 million (41 cents per share) a year earlier [4][9] - Sales rose to $3.46 billion, up approximately 2% from $3.39 billion a year earlier [4] - Comparable sales grew 2%, aligning with expectations of 1.8% [8] Guidance and Expectations - Gap's full-year sales growth is expected to be between 1% and 2%, slightly below the consensus expectation of 1.3% [5] - The company anticipates flat sales for the current quarter, compared to expectations of 0.2% growth [5] - Gross margin is projected at 41.8%, lower than the expected 42.5% [5] Supply Chain Strategy - To mitigate tariff impacts, Gap plans to diversify its supply chain and reduce exposure to China, aiming to limit the cost impact to $100 million to $150 million [2] - Currently, Gap manufactures less than 10% of its products in China, with expectations to reduce this to less than 3% by year-end [6] Brand Performance - Old Navy, Gap's largest brand, achieved sales of $2 billion, up 3% year-over-year, exceeding expectations [8][10] - The Gap brand saw sales of $724 million, up 5% compared to last year, also surpassing expectations [10] - Banana Republic experienced a 3% decline in sales to $428 million, while Athleta's sales fell 6% to $308 million, indicating challenges in these brands [10]

Group 1 - Superior Group of Companies, Inc. will participate in the Noble Capital Markets 2025 Emerging Growth Virtual Equity Conference on June 5, 2025 [1] - The company's Chairman, President, and CEO Michael Benstock, along with CFO Mike Koempel, will be featured in a fireside chat during the event [1] - A video replay of the presentation will be available on the company's Investor Relations website after the event [1] Group 2 - Superior Group of Companies was established in 1920 and operates in three business segments: Healthcare Apparel, Branded Products, and Contact Centers [2] - Each segment targets large, fragmented, and growing addressable markets, enhancing brand engagement experiences for customers and employees [2] - The company focuses on organic growth and strategic acquisitions to enhance shareholder value [2]

Core Viewpoint - Growth investors are increasingly focused on stocks with above-average financial growth, but identifying stocks that can sustain this growth is challenging [1] Group 1: Company Overview - Kontoor Brands (KTB) is highlighted as a recommended stock with a favorable Growth Score and a top Zacks Rank [2] - The company is known for its Wrangler and Lee apparel brands [3] Group 2: Earnings Growth - Kontoor's historical EPS growth rate is 13.6%, with projected EPS growth of 9.5% this year, significantly outperforming the industry average of 0.4% [5] Group 3: Asset Utilization - Kontoor has an asset utilization ratio (sales-to-total-assets ratio) of 1.58, indicating it generates $1.58 in sales for every dollar in assets, compared to the industry average of 1.19 [6] Group 4: Sales Growth - The company's sales are expected to grow by 1.1% this year, while the industry average is stagnant at 0% [7] Group 5: Earnings Estimate Revisions - There has been a positive trend in earnings estimate revisions for Kontoor, with the Zacks Consensus Estimate for the current year increasing by 2.9% over the past month [9] Group 6: Investment Potential - Kontoor has achieved a Growth Score of B and a Zacks Rank of 2, indicating it is a solid choice for growth investors and a potential outperformer [11]

Economic Overview - U.S. consumers have regained confidence in the economy following a trade truce between the United States and China, leading to a sharp market rebound [1][2] - Consumer confidence jumped to 98 in May, up 12.3 points from April, significantly exceeding the consensus estimate of 87 [4] - The present situation index increased by 4.8 points to 135.9, while the expectations index surged by 17.4 points to 72.8 [5] Consumer Sentiment - Positive sentiment is attributed to the easing of trade tensions, with 44% of investors believing stocks will rise over the next 12 months, a 6.4% increase from April [5][6] - The labor market outlook improved, with 19.2% expecting more job availability in the next six months [5] Stock Recommendations - Recommended consumer discretionary stocks include Netflix, Inc. (NFLX), JAKKS Pacific, Inc. (JAKK), Kontoor Brands, Inc. (KTB), Fox Corporation (FOX), and Charter Communications, Inc. (CHTR) due to positive earnings estimate revisions [2][3] - Each of these stocks carries a Zacks Rank 2 (Buy) or 1 (Strong Buy) [3] Company Insights - **Netflix, Inc. (NFLX)**: Expected earnings growth rate of 27.7% for the current year, with a 3% improvement in earnings estimates over the past 60 days [8][9] - **JAKKS Pacific, Inc. (JAKK)**: Expected earnings growth rate of 12.7%, with a 3.1% improvement in earnings estimates [10][11] - **Kontoor Brands, Inc. (KTB)**: Expected earnings growth rate of 9.6%, with a 2.9% improvement in earnings estimates [12][13] - **Fox Corporation (FOX)**: Expected earnings growth rate of 32.36%, with a 2% improvement in earnings estimates [14] - **Charter Communications, Inc. (CHTR)**: Expected earnings growth rate of 13.2%, with a 4.5% improvement in earnings estimates [15][16]