Shares for JD Sports Fashion dipped over 6 percent on Thursday after the retailer warned on profits heading into the end of the year. The U.K.-based company reported group revenue declined 1.7 percent in the third quarter to 2.95 billion pounds. More from WWD By region, revenue in North America in Q3 dipped 1.7 percent to 1.08 billion pounds, Europe declined 1.1 percent to 1.03 billion pounds, and the U.K. dropped 3.3 percent to 718 million pounds. The company’s revenue in the Asia Pacific region grew 3. ...

I'm now joined by Lorraine Hutchinson, the senior retail analyst over at BFA Securities. Lorraine, this holiday shopping season could be one that is impacted more severely by tariffs. Just how important is this SCOTA's decision on the retail universe that you cover. >> The decision is really, really important.Uh it may be a little too late for the holiday season though. Uh most retailers right now have already received the product that they'll sell for holiday. So they have paid tariffs on those and they ha ...

Core Insights - Genesco is focusing on consolidating its teen brands, particularly enhancing the performance of Journeys, which has seen a 9% comp growth in Q2 [2][5] - The company aims to tap into a significantly larger teen market, which is estimated to be six to seven times bigger than Journeys' historical reach [2] - Leadership changes have been made, with Andy Gray appointed as CEO of the Journeys Global Retail Group and Chris Santaella as chief merchant [5] Company Strategy - Genesco has initiated a revamp at Journeys, including store renovations, product elevation, and marketing efforts to improve brand awareness and consumer reach [2][4] - The company views Journeys, Schuh, and Little Burgundy as key retailers for young, style-led females and sees opportunities for growth in all markets [4] Market Performance - The footwear category is facing challenges, with U.S. footwear dollar sales down 1% and units sold down 2% in the first half of the year, although the average selling price increased by 2% [6] - Despite market challenges, analysts from Jefferies indicate a favorable setup for the holiday season, with Journeys expected to drive top-line growth [6][7]

Core Insights - Designer Brands Inc. is expected to report a quarterly loss of 6 cents per share for the first quarter, a decline from a profit of 8 cents per share in the same period last year [1] - Projected quarterly revenue is $732.82 million, down from $746.6 million a year earlier [1] - The company's shares fell 2.4% to close at $3.73 [2] Financial Performance - The anticipated loss of 6 cents per share contrasts with the previous year's profit of 8 cents per share, indicating a significant downturn in profitability [1] - Revenue projections for the quarter are set at $732.82 million, reflecting a decrease of approximately 1.04% from the prior year's revenue of $746.6 million [1] Analyst Ratings - Telsey Advisory Group analyst Dana Telsey maintains a Market Perform rating with a price target of $5 for 2025, with an accuracy rate of 60% [6] - UBS analyst Jay Sole has a Neutral rating and has raised the price target from $4 to $4.5, with an accuracy rate of 73% [6]

Financial Data and Key Metrics Changes - Revenue increased by 17% in Q3 fiscal 2025, with consolidated same store sales growth of 8.6% [6][15] - Earnings per diluted share reached $2.43, up from $1.81 in the prior year period, exceeding guidance by $0.36 [7][19] - Gross profit increased by 20% to $239 million, with a gross profit rate of 39.3%, reflecting a 100 basis point increase [15][16] Business Line Data and Key Metrics Changes - Same store sales in brick-and-mortar increased by 8.2%, while e-commerce sales grew by 11.1% [6][15] - Merchandise margin expanded by 130 basis points, driven by supply chain efficiencies and better buying economies [7][13] - Exclusive brand penetration increased by 180 basis points, contributing to merchandise margin expansion [13][19] Market Data and Key Metrics Changes - The company opened 13 new stores in Q3, bringing the total to 438 stores across 46 states [8][9] - The company plans to open 21 additional stores in Q4, aiming for a total of 60 new stores for the fiscal year [9][20] - Active customers in loyalty programs increased to 9.4 million, a 15% increase year-over-year [12] Company Strategy and Development Direction - The company is focused on expanding its store base, driving same store sales, strengthening omnichannel leadership, and expanding merchandise margins [8][10][12] - The company believes it has the potential to double its store count in the U.S. over the next several years [9] - The new Chief Digital Officer is expected to enhance the company's digital strategy and e-commerce performance [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the current business tone and the start of Q4, with same store sales growth continuing [14] - The company raised its full-year guidance, expecting total sales to reach $1.92 billion, representing a 15% growth over fiscal 2024 [19] - Management noted that inventory levels are healthy, with no significant markdown risks anticipated [37] Other Important Information - The company experienced a $0.22 benefit related to the CEO transition included in Q3 earnings per diluted share [8] - SG&A expenses decreased as a percentage of sales due to the forfeiture of incentive-based compensation related to the CEO transition [16][90] Q&A Session Summary Question: Can you elaborate on traffic and demand in January? - Management noted an acceleration in both men's and women's Western categories, with a strong start to Q4 expected to continue [26][27] Question: What are the drivers of merchandise margin? - Management expects Q4 merchandise margin to increase by 120 basis points, driven by supply chain efficiencies and exclusive brand penetration [29][30] Question: How is inventory positioned for future sales? - Management expressed confidence in inventory levels, stating markdown inventory is lower than previous years and pre-COVID times [37][38] Question: What is the company's exposure to tariffs? - The company has 30% of orders from China and 25% from Mexico, with plans to negotiate pricing with vendors if tariffs increase [51][53] Question: How does the company view store density and cannibalization? - Management indicated that store placement depends on market density, with successful openings within close proximity in urban areas [59][60] Question: What are the opportunities in private label? - The company sees potential in its exclusive brands, particularly in work boots, with plans to expand offerings [70][71] Question: What are the expectations for SG&A expenses next year? - Management anticipates a flat lease expense and potential benefits from reduced incentive-based compensation next year [73][74]