Goldman Sachs maintains a Neutral rating on VF Corp (NYSE:VFC), raising its price target from $16 to $18.VF Corp reports strong third-quarter earnings, with earnings of $0.58 per share and revenue of $2.88 billion, surpassing Wall Street expectations.The company's gross margin improved to 56.6%, and operating income increased to $289 million.VF Corp (NYSE:VFC), the parent company of well-known brands like The North Face, Vans, and Timberland, is a major player in the apparel and footwear industry. On Januar ...

By Sanskriti Shekhar Jan 28 (Reuters) - Apparel and footwear maker VF Corp forecast fourth-quarter revenue above analysts' estimate on Wednesday, but shares dropped 7% ​after executives said tariffs were "just starting to hit" its business. The Vans ‌parent, which sources about 85% of its products for sale in the U.S. through Southeast Asia ‌and Central and South America, has taken several steps to mitigate the impact of tariffs, including ramping up production and shipments, working with suppliers to lo ...

Core Viewpoint - Nike plans to cut 775 employees primarily from its distribution centers in Tennessee and Mississippi to enhance operational efficiency and improve growth and margins [1][2] Group 1: Operational Changes - The layoffs are part of Nike's strategy to accelerate the use of automation in its distribution operations [1][2] - The company aims to strengthen and streamline operations to better serve athletes and consumers, focusing on advanced technology and automation [3] - Nike's distribution centers and staff expanded under former CEO John Donahoe's direct-to-consumer strategy, but current CEO Elliott Hill is shifting back to wholesale partnerships [3] Group 2: Recent Layoffs and Financial Performance - Last summer, Nike cut 1,000 corporate jobs, which was less than 1% of its corporate staff, following a previous layoff of over 1,500 jobs in February 2024 [4][5] - Nike's Direct sales were down 12% and consolidated digital sales down 15%, while wholesale sales experienced a more muted decline [4] - The company is repositioning its digital strategy by reducing promotional days and markdown rates, shifting closeout liquidation to factory stores [4]

Under Armour is shaking up its C-suite. On Thursday, the Baltimore-based company named Kara Trent chief merchandising officer and said that Yassine Saidi, chief product officer, will transition to become a senior adviser to the company. More from WWD Succeeding Trent as president, Americas, her former position, will be Adam Peake. The moves, which are effective Feb. 2, are intended to “accelerate the company’s transformation by sharpening execution, reinforcing operational discipline, and aligning prod ...

Core Viewpoint - Speculation arises regarding Nike's potential sale of the Converse brand due to its precarious underlying health, as indicated by recent financial challenges [1]. Financial Performance - Converse experienced a 28 percent decline in revenues in Q1, followed by a further 31 percent drop in Q2, resulting in negative EBIT for the second quarter [2]. - The gross margin for Converse deteriorated from a decline of 620 basis points in Q1 to 700 basis points in Q2, attributed to lower average selling prices and higher product costs [3]. Demand and Marketing - Demand creation expenses for Converse declined by 44 percent year-over-year, a significant drop compared to a 6 percent decline in Q1, raising concerns about the brand's market presence [3][4]. - The reduction in demand creation suggests that Nike may be evaluating strategic alternatives for Converse, including a potential divestiture [4]. Strategic Implications - A divestiture of Converse would mark the completion of Nike's divestiture of all acquired brands, highlighting the challenges associated with brand acquisitions [4]. - The potential sale could represent a 3 percent headwind to Nike's top line for fiscal year 2027, although the exact implications are difficult to quantify due to dis-synergies [4]. Earnings Outlook - The expectation for Converse to achieve $3 in earnings per share by fiscal 2028 appears increasingly unlikely, reflecting ongoing challenges within the brand [5].

分组1 - Zacks Premium offers various tools for investors to enhance their stock market confidence and knowledge, including daily updates, research reports, and stock screens [1] - The Zacks Style Scores are designed to help investors select stocks with the highest potential to outperform the market within a 30-day timeframe, rated from A to F based on value, growth, and momentum characteristics [2][6] 分组2 - The Value Score identifies attractive and discounted stocks using financial ratios such as P/E and Price/Sales, appealing to value investors [3] - The Growth Score focuses on a company's future prospects by analyzing projected and historical earnings, sales, and cash flow, catering to growth investors [4] - The Momentum Score assists investors in capitalizing on price trends by evaluating recent price changes and earnings estimate revisions [5] 分组3 - The VGM Score combines all three Style Scores, providing a comprehensive indicator for investors who utilize multiple investment strategies [6] - The Zacks Rank, a proprietary stock-rating model, relies on earnings estimate revisions to simplify portfolio building, with 1 (Strong Buy) stocks achieving an average annual return of +23.81% since 1988, significantly outperforming the S&P 500 [7][8] 分组4 - To maximize returns, investors should target stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B, while also considering stocks with a 3 rank if they possess high Style Scores [9] - The direction of earnings estimate revisions is crucial when selecting stocks, as a stock with a low rank but high Style Scores may still face downward price pressure [10] 分组5 - Wolverine World Wide, Inc. specializes in designing, manufacturing, and distributing a variety of footwear and apparel, recognized for brands like Merrell and Hush Puppies [11] - Currently, Wolverine World Wide holds a 3 (Hold) Zacks Rank with a VGM Score of A, and a Momentum Style Score of A, having seen a 9.1% increase in shares over the past four weeks [12] - With positive earnings estimate revisions and a strong earnings surprise average of +31.8%, Wolverine World Wide is positioned as a noteworthy investment opportunity [12][13]

Core Insights - The collaboration among Eileen Fisher, Everlane, and Reformation aims to co-fund decarbonization initiatives in the textile supply chain, particularly focusing on deeper tiers of suppliers [1][2][3] - The partnership seeks to streamline efforts to reduce regulatory fatigue and enhance energy efficiency in factories by pooling resources and capital [2][4] - The Apparel Impact Institute (Aii) plays a crucial role in facilitating this collaboration, suggesting strategic suppliers and emissions-reduction programs [3][5] Group 1: Collaboration and Strategy - The brands are working together to access deeper tiers of the supply chain, which is essential for effective decarbonization [2][3] - This initiative is not a marketing strategy but a genuine effort to address climate goals in the supply chain [4] - The collaboration is seen as a potential blueprint for the industry to achieve climate targets amid financial constraints [4][5] Group 2: Emission Reduction Goals - Eileen Fisher aims to reduce Scope 1 and 2 emissions by 100% and Scope 3 emissions by 25% by year-end, while Everlane and Reformation have set their own ambitious targets for emissions reduction [6] - The material processing phase (Tier 2) is identified as the highest source of pollution, contributing 55% of total greenhouse gases in the supply chain [7] Group 3: Supplier Engagement - Engaging multiple brands simultaneously allows for a stronger case for decarbonization initiatives at the supplier level [9][10] - Suppliers are more likely to agree to a decarbonization roadmap when key buyers align on sustainability approaches [10][12] - The collaboration aims to reduce data fatigue for suppliers by streamlining requests and assessments [11] Group 4: Future Opportunities - The brands express a desire to invite more companies to join the collaboration to expand the impact of decarbonization projects [12] - The initiative is expected to create broader social and environmental benefits across the industry, reinforcing the importance of shared supply chains [12][13]

Market Overview - Global equities showed resilience after four days of gains, driven by expectations that the Federal Reserve will cut interest rates more quickly than previously anticipated [1] - The MSCI All Country World Index reduced its November decline to 0.4%, recovering from a nearly 4% drop earlier in the month [1] - US markets were closed for Thanksgiving, while European and Asian benchmarks experienced modest movements [1] Investor Sentiment - There is a noticeable return of risk appetite, as evidenced by Bitcoin trading above $91,000 for the first time in a week [2] - Gold prices fluctuated, and the US dollar paused its two-day decline [2] Federal Reserve Expectations - Money markets are pricing in an approximately 80% chance of a quarter-point interest rate cut next month, with expectations for three additional cuts by the end of 2026 [3] - This marks a shift from just over a week ago when traders anticipated only three cuts in total [3] - The market sentiment reflects renewed optimism following concerns over high tech valuations that previously impacted equities [3] Year-End Rally Outlook - EFG Asset Management Switzerland's CEO expressed optimism for a classic year-end rally, supported by a stable macro environment and a decent corporate earnings outlook [4] - The anticipated lagged effects of rate cuts are expected to provide additional support to the market [4] Regional Market Performance - Japanese and South Korean equities outperformed their regional counterparts, with technology shares leading the gains [4] - In Europe, Germany's DAX index increased by 0.3%, driven by a 13% rise in Puma SE due to takeover interest from multiple bidders [4] UK Market Reaction - UK gilts experienced a pullback after a rally following the Autumn budget, where the Chancellor of the Exchequer announced a larger fiscal buffer [5] - Despite the positive sentiment, the tax-raising measures introduced may overshadow economic growth prospects [5] - The pound and FTSE 100 remained relatively unchanged [5] Fiscal Policy Insights - ABN AMRO's head of macro research noted that the UK government took necessary steps to maintain bond market confidence, despite risks associated with the fiscal consolidation [6] - The current measures build upon previous significant efforts in fiscal policy [6]

Core Insights - The global fashion industry is facing significant challenges in 2026, primarily due to geopolitical instability, macroeconomic uncertainty, and high U.S. tariffs, which have become the top concern for executives [1][2] Industry Overview - U.S. tariffs on apparel and footwear imports surged from approximately 13% in early 2025 to 54% after government announcements in April, with a mid-October weighted average tariff rate of 36%, significantly above historical norms [2] - 76% of fashion executives believe that responses to trade disruptions and tariffs will be the most critical factor shaping the industry in 2026 [2] Key Trends - The report highlights major issues for 2026, including "tariff turbulence" and emerging shopper preferences such as a focus on resale, wellbeing in purchases, and the influence of artificial intelligence [3] Company Strategies - Brands are adjusting pricing, shifting sourcing, and improving efficiency to mitigate tariff impacts, with larger suppliers optimizing operations and smaller players facing increased pressure [5] - Levi Strauss & Co. has adopted a strategic tariff playbook, leveraging its international business (60% of sales) to reduce tariff burdens compared to domestic competitors [6] - Levi's pricing strategy includes targeted price increases, reduced discounts, and pricing for innovation, with 55% of executives expecting further price hikes in 2026 due to tariffs [6][9] Operational Adjustments - Levi's is focusing on internal operational improvements, streamlining business processes, and reducing inventory complexity, increasing product commonality across global stores from less than 10% to about 40% [9] - The company reported a 7% year-on-year increase in quarterly sales in October 2025, marking its fourth consecutive quarter of high-single-digit growth [9] Sourcing and Supplier Relationships - 35% of executives in the industry plan to shift sourcing to markets with more favorable trade agreements, emphasizing the importance of strategic supplier partnerships for agility in a volatile trade environment [10]

Core Insights - Under Armour and Curry Brand have officially ended their 13-year partnership, which significantly elevated Under Armour's profile in athletic sponsorships [1][2] - Under Armour has faced substantial challenges, with its stock down 40% this year and a total decline of 76%, prompting the company to refocus on its core UA brand [2][4] - Steph Curry retains sole ownership of the Curry Brand and is free to seek new partnerships, while Under Armour will maintain contracts with athletes under the Curry Brand but with the right of first refusal for Curry [2][3] Company Performance - Under Armour's recent struggles are evident in its revenue and branding, leading to a strategic decision to concentrate on its primary brand [2] - The decline in Under Armour's stock price reflects broader issues within the company, necessitating a reevaluation of its partnerships and branding strategies [4] Future Prospects - Steph Curry is expected to remain a prominent figure in the NBA for several more years, making him a valuable asset for potential new partnerships [6] - Curry's brand is characterized by an underdog image, raising questions about how this identity will be maintained with future collaborations, especially considering his previous rejection of Nike in favor of Under Armour [6][7] - There is speculation about Curry's potential transition into golf, which could open new partnership opportunities as he considers future endeavors [5]