Company Performance - American Eagle Outfitters (AEO) closed at $10.69, reflecting a +1.52% change from the previous day, outperforming the S&P 500's gain of 0.63% [1] - Over the past month, AEO shares have declined by 16.76%, underperforming the Retail-Wholesale sector's loss of 0.09% and the S&P 500's loss of 0.7% [1] Earnings Expectations - Analysts expect AEO to report earnings of $0.11 per share, representing a year-over-year decline of 67.65% [2] - The consensus estimate for revenue is $1.08 billion, indicating a 5.35% decrease from the same quarter last year [2] Full Year Projections - For the full year, Zacks Consensus Estimates project earnings of $1.50 per share and revenue of $5.22 billion, reflecting changes of -13.79% and -1.98% respectively from the previous year [3] Analyst Forecast Revisions - Recent revisions to analyst forecasts for AEO are crucial as they indicate changing near-term business trends, with positive revisions suggesting analyst optimism regarding the company's profitability [4] Zacks Rank and Valuation - AEO currently holds a Zacks Rank of 4 (Sell), with a 0.08% decrease in the consensus EPS estimate over the last 30 days [6] - The Forward P/E ratio for AEO is 7.04, which is a discount compared to the industry's average Forward P/E of 13.41 [7] - AEO has a PEG ratio of 0.75, while the Retail - Apparel and Shoes industry has an average PEG ratio of 1.39 [7] Industry Context - The Retail - Apparel and Shoes industry is ranked 146 in the Zacks Industry Rank, placing it within the bottom 41% of over 250 industries [8]

Investors interested in Retail - Apparel and Shoes stocks are likely familiar with Canada Goose (GOOS) and Deckers (DECK) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies with p ...

Group 1 - Chewy (CHWY) has shown a year-to-date performance increase of approximately 11.1%, outperforming the Retail-Wholesale sector, which has returned an average of -3.5% [4] - Chewy is currently ranked 2 (Buy) in the Zacks Rank, indicating strong analyst sentiment and an improving earnings outlook, with a 0.8% increase in the consensus estimate for full-year earnings over the past quarter [3] - The Internet - Commerce industry, to which Chewy belongs, has seen an average decline of 6.4% this year, further highlighting Chewy's relative strength within its industry [5] Group 2 - The Retail-Wholesale sector consists of 210 individual stocks and is currently ranked 11 in the Zacks Sector Rank [2] - Another stock in the Retail-Wholesale sector, Industria de Diseno Textil SA (IDEXY), has also outperformed the sector with a year-to-date increase of 7.5% [4] - The Retail - Apparel and Shoes industry, which includes Industria de Diseno Textil SA, is ranked 153 and has experienced a significant decline of -23.1% this year [6]

American Eagle Outfitters (AEO) closed the latest trading day at $11.04, indicating a -1.43% change from the previous session's end. The stock fell short of the S&P 500, which registered a gain of 0.06% for the day. At the same time, the Dow added 0.28%, and the tech-heavy Nasdaq lost 0.1%.Shares of the teen clothing retailer have depreciated by 1.93% over the course of the past month, outperforming the Retail-Wholesale sector's loss of 2.65% and the S&P 500's loss of 4.29%.The investment community will be ...

For those looking to find strong Retail-Wholesale stocks, it is prudent to search for companies in the group that are outperforming their peers. Has CHOW TAI FOOK (CJEWY) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out.CHOW TAI FOOK is one of 210 individual stocks in the Retail-Wholesale sector. Collectively, these companies sit at #12 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Ra ...

Company Performance - MINISO Group Holding Limited Unsponsored ADR (MNSO) closed at $17.22, reflecting a +1.29% change from the previous day, which is lower than the S&P 500's gain of 2.03% [1] - Over the last month, MNSO shares decreased by 9.43%, underperforming the Retail-Wholesale sector's loss of 2.36% and the S&P 500's loss of 5.07% [1] Upcoming Earnings - The upcoming earnings disclosure is highly anticipated, with consensus estimates predicting revenue of $624.52 million, a 21.1% increase compared to the same quarter last year [2] Full Year Estimates - For the full year, analysts expect earnings of $1.35 per share and revenue of $2.93 billion, representing increases of +17.39% and +24.25% respectively from the previous year [3] Analyst Estimates - Recent changes to analyst estimates for MNSO should be monitored, as positive revisions indicate optimism about the company's business outlook [4] - Estimate revisions are correlated with near-term share price momentum, which can be leveraged by investors using the Zacks Rank system [5] Zacks Rank and Valuation - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), currently ranks MNSO at 4 (Sell), with a 1.1% decline in the Zacks Consensus EPS estimate over the past month [6] - MNSO is trading at a Forward P/E ratio of 12.59, which is lower than the industry average of 12.91, suggesting it is trading at a discount [7] PEG Ratio and Industry Context - MNSO has a PEG ratio of 0.7, compared to the average PEG ratio of 1.29 in the Retail - Apparel and Shoes sector, indicating potential undervaluation based on projected earnings growth [8] - The Retail - Apparel and Shoes industry is ranked 139 in the Zacks Industry Rank, placing it in the bottom 44% of over 250 industries [8]

Core Viewpoint - Urban Outfitters (URBN) and Deckers Outdoor Corporation (DECK) are competing in the Retail - Apparel and Shoes industry, each with distinct strategies and brand portfolios, facing similar challenges such as weather-related sales volatility and changing consumer preferences [1][2]. Urban Outfitters (URBN) - URBN has shown consistent performance across its diverse brand portfolio, including Anthropologie and Free People, with effective inventory management and merchandising strategies leading to higher margins [3]. - The Comparable Retail segment reported net sales growth of 8.3% for Anthropologie and 8% for Free People in the fourth quarter of fiscal 2025 [4]. - The Wholesale segment experienced strong growth, particularly driven by Free People's full-price selling strategy, while the Nuuly rental platform saw a 78.4% increase in net sales, achieving $13 million in operating profit for its first full year [5]. - URBN plans to open 58 new stores in fiscal 2026, focusing on high-productivity locations and aiming to expand FP Movement to 300 stores across North America [6]. - For fiscal 2026, URBN anticipates mid-single-digit sales growth, with positive retail comps expected at Free People and Anthropologie [7]. - Nuuly is projected to achieve double-digit revenue growth, supported by increasing subscriber numbers [8]. Deckers Outdoor Corporation (DECK) - DECK is experiencing growth through its UGG and HOKA brands, with UGG leading in the premium lifestyle footwear market and HOKA growing in the high-performance segment [9]. - DECK expects a 15% year-over-year increase in fiscal 2025 net sales to $4.9 billion, with HOKA projected to grow by 24% and UGG by 10% [10]. - The company is focusing on innovation, with new product releases for HOKA and diversification of UGG's offerings beyond winter footwear [11]. - International expansion is a key strategy for DECK, particularly in high-potential markets like China [12]. - The direct-to-consumer segment has seen significant growth, supported by strong digital performance and an expanding retail presence [13]. - DECK faces near-term challenges, including inventory constraints and rising costs, which may impact fiscal performance [14]. Comparative Analysis - The Zacks Consensus Estimate indicates URBN's fiscal 2026 sales and EPS growth of 6.6% and 14.5%, respectively, while DECK's fiscal 2025 estimates suggest 15.4% sales growth and 21% EPS growth [15][16]. - Stock performance has diverged, with DECK shares declining 36.6% over the past six months, while URBN shares have increased by 42.8% [17]. - Valuation metrics show URBN's forward P/E at 10.61X, below its three-year median, while DECK's forward P/E is at 16.23X, also below its median [18]. - URBN is viewed as a more attractive investment opportunity due to its diversified growth strategies and favorable valuation compared to DECK, which is currently facing operational pressures [22][23].

Core Insights - Deckers (DECK) is positioned to potentially continue its earnings-beat streak, particularly in the upcoming report, as it has a history of exceeding earnings estimates [1] - The company has achieved an average surprise of 22.86% over the last two quarters, indicating strong performance [1] Earnings Performance - In the last reported quarter, Deckers posted earnings of $3 per share, surpassing the Zacks Consensus Estimate of $2.60 per share, resulting in a surprise of 15.38% [2] - For the previous quarter, the company exceeded expectations by reporting earnings of $1.59 per share against an estimate of $1.22 per share, delivering a surprise of 30.33% [2] Earnings Estimates and Predictions - Recent estimates for Deckers have been trending upward, with a positive Earnings ESP (Expected Surprise Prediction) indicating a strong likelihood of another earnings beat [5][8] - The current Earnings ESP for Deckers is +6.75%, suggesting that analysts have become more optimistic about the company's earnings prospects [8] Zacks Rank and Predictive Metrics - Deckers holds a Zacks Rank of 3 (Hold), which, when combined with a positive Earnings ESP, suggests a high probability of beating consensus estimates, with historical data showing nearly 70% success in such cases [6][8] - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate reflecting the latest analyst revisions [7]

Core Viewpoint - Stitch Fix, Inc. (SFIX) has shown significant stock performance, with a 38.2% increase over the past year, contrasting with a 10% decline in the Zacks Retail-Apparel and Shoes industry [1][2]. Performance Metrics - The company has outperformed the broader Retail-Wholesale sector and the S&P 500 index, which grew by 9.1% and 4.6% respectively during the same period [2]. - Average order value (AOV) has increased for six consecutive quarters, with a 9% year-over-year rise in the second quarter of fiscal 2025, and a notable 16% spike on January 25 [9]. - Revenue per active client rose to $537, reflecting a 4.3% increase from the previous year [9]. Valuation Insights - Stitch Fix is currently trading at a low price-to-sales (P/S) ratio of 0.31, compared to the industry and sector ratios of 1.28 and 1.43 respectively, indicating potential for attractive entry points for investors [5]. - The company's Value Score of B further emphasizes its investment appeal [5]. Operational Efficiency - Gross margin reached 44.5% in the fiscal second quarter, up 110 basis points from the prior year, attributed to higher AOV and improved product margins [10]. - Contribution margin was reported at 33%, exceeding the historical range of 25-30% for the fourth consecutive quarter [11]. Client Engagement and Personalization - Stitch Fix's client-first approach has led to increased engagement, with customer requests for the same stylist reaching a five-year high [8]. - Keep rates for new styles have increased by 7% year over year, indicating a stronger product-market fit [12]. Market Expansion and Brand Differentiation - The company has revitalized underperforming segments, particularly men's and Freestyle categories, with cashmere sales growing by 400% year-over-year [13]. - New in-house brands like The Commons have emerged as top revenue drivers, enhancing customer appeal and improving margins [14]. Investment Opportunity - Stitch Fix is positioned for sustainable growth through ongoing business transformation, operational efficiency, and brand differentiation, making it an attractive option for investors seeking long-term value [15].

Core Viewpoint - Nordstrom, Inc. has demonstrated strong stock performance, significantly outperforming the broader retail sector and S&P 500 index, while focusing on digital growth and operational efficiency to enhance customer engagement and profitability [1][10]. Group 1: Stock Performance - Nordstrom's shares have surged 38.4% over the past year, compared to a 12.9% increase in the Retail-Wholesale sector and a 9.3% rise in the S&P 500 index [1]. - The Zacks Retail - Apparel and Shoes industry has seen a decline of 7.9% in the same period [1]. Group 2: Strategic Focus - The company is enhancing its digital capabilities to drive growth and customer engagement, with a focus on Nordstrom banner growth and optimizing operations at Nordstrom Rack [2][3]. - Nordstrom aims to capitalize on its digital-first platform, expand its market share, and deliver profitable growth by focusing on key markets and enhancing digital capabilities [3][4]. Group 3: Operational Efficiency - The company is leveraging technology to streamline operations, improve inventory management, and provide a seamless shopping experience, with efforts to enhance order fulfillment speed [4]. - Nordstrom is working to improve Rack's productivity, reduce transportation costs and delivery times, and enhance services through faster delivery [5]. Group 4: Earnings Estimates - The Zacks Consensus Estimate for fiscal 2025 and fiscal 2026 has seen upward revisions, reflecting positive sentiment around the stock [6]. - The earnings per share (EPS) estimate for the current fiscal year has risen by 0.9% to $2.15, while the estimate for fiscal 2026 has increased by 3.5% to $2.37, indicating a year-over-year earnings dip of 0.9% for the current year and growth of 10.4% for the next [7]. Group 5: Valuation - Nordstrom stock is trading at a forward price/earnings ratio of 10.96, which is lower than the industry average of 13.77 and its median of 11.98, indicating an attractive valuation [9]. - The company holds a Value Score of A, further strengthening its investment appeal [9]. Group 6: Conclusion - Nordstrom's robust strategies, including strong momentum at the Rack banner and digital initiatives, position it for success, with confidence in brand strength and profitable growth [10].