Investors interested in Retail - Apparel and Shoes stocks are likely familiar with Victoria's Secret (VSCO) and On Holding (ONON) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.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 Zacks Rank favors stocks with strong earnings est ...

Core Insights - Torrid Holdings, listed as CURV on the NYSE, specializes in plus-size fashion within the apparel and shoes industry, targeting a niche market despite facing competition from larger retail players [1] Financial Performance - Telsey Advisory set a price target of $2 for CURV, indicating a potential upside of approximately 76.21% from the current trading price of $1.14 [2][5] - The company reported a quarterly loss of $0.06 per share, significantly missing the Zacks Consensus Estimate of a $0.01 loss per share, resulting in a negative surprise of 500% [2][5] - Revenue for the quarter ending October 2025 was $235.15 million, falling short of the Zacks Consensus Estimate by 2.29% and declining from $263.77 million in the same quarter the previous year [3][5] Stock Performance - The stock price of CURV has fluctuated significantly, with a 52-week high of $7.19 and a low of $1.08; currently priced at $1.14, it has decreased by 13.03%, reflecting a drop of $0.17 [4] - The trading volume today is 284,694 shares, and the company has a market capitalization of approximately $118.3 million [4]

Core Insights - The holiday sales season for 2025-26 in the U.S. is crucial, with Thanksgiving and Black Friday being key days for consumer spending [2] - Despite a challenging economic environment, holiday sales are expected to grow, albeit at a muted rate, leading to recommendations for five apparel and shoe stocks with strong short-term upside potential [3][10] Industry Overview - Consumer spending is the largest component of U.S. GDP, and the holiday season represents the peak period for this spending [3] - The apparel and footwear industry is facing challenges as consumers shift towards value-driven purchases, impacting demand [6] - The Zacks Retail – Apparel and Shoes industry ranks in the top 26% of Zacks Industry Rank, indicating potential for outperformance in the next three to six months [7] Company Highlights Crocs Inc. (CROX) - Crocs has a Zacks Rank of 1 and is experiencing significant growth in brand awareness through collaborations and product innovations [11] - The company is refreshing its product lines and has an expected revenue growth rate of 0.4% and earnings growth rate of 3.9% for the next year [14] - The short-term average price target for CROX indicates an 11.2% increase from its last closing price of $83.07 [14] On Holding AG (ONON) - On Holding also holds a Zacks Rank of 1, focusing on ultralight footwear and sports apparel [15] - The expected revenue growth rate is 21.2% and earnings growth rate is 79.8% for the next year [16] - The short-term average price target suggests a 45.3% increase from the last closing price of $41.78 [16] Ralph Lauren Corp. (RL) - Ralph Lauren has a Zacks Rank of 2 and has outperformed the industry due to its strategic "Next Great Chapter: Accelerate Plan" [17] - The company is investing in digital transformation, with expected revenue growth of 9.5% and earnings growth of 25% for the current year [20] - The short-term average price target indicates a 3.3% increase from the last closing price of $364.50 [20] Kontoor Brands Inc. (KTB) - Kontoor Brands, with a Zacks Rank of 2, operates lifestyle apparel brands like Wrangler and Lee [22] - The expected revenue growth rate is 11.3% and earnings growth rate is 5.3% for the next year [23] - The short-term average price target suggests a 31% increase from the last closing price of $73.69 [23] Boot Barn Holdings Inc. (BOOT) - Boot Barn Holdings has a Zacks Rank of 2 and focuses on western and work-related footwear and apparel [24] - The expected revenue growth rate is 16.2% and earnings growth rate is 20.5% for the current year [25] - The short-term average price target indicates a 15% increase from the last closing price of $195.76 [25]

Core Insights - The Gap, Inc. is anticipated to show growth in both revenue and earnings for the second quarter of fiscal 2025, with revenues expected to reach $3.7 billion, reflecting a 0.5% increase year-over-year [1][9] - The earnings per share estimate stands at 55 cents, indicating a 1.9% rise from the previous year [2][9] Financial Performance - The company has demonstrated consistent earnings performance, with a trailing four-quarter earnings surprise average of 33.2% [3] - In the last reported quarter, Gap's earnings exceeded the Zacks Consensus Estimate by 15.9% [3] Earnings Expectations - The current Earnings ESP for Gap is +1.52%, but it holds a Zacks Rank of 5 (Strong Sell), indicating uncertainty regarding an earnings beat this quarter [4] - Management has guided for flat sales year-over-year, with mixed brand performance, although strength in Old Navy and Gap provides some confidence [7] Strategic Initiatives - Gap's second-quarter results are expected to benefit from strong execution, brand momentum, and financial discipline, with a focus on market share growth and brand revival [5][6] - The company is enhancing its digital commerce presence, ranking as the 1 branded apparel e-commerce business in the U.S., with nearly 1.5 billion visitors to its platforms over the past year [8] Cost Management and Supply Chain - Gap is targeting $150 million in cost savings for fiscal 2025, which will help reinvest in growth initiatives while protecting margins [10] - The company has diversified its sourcing to mitigate tariff impacts, reducing reliance on China to under 3% of total sourcing [11] Margin Outlook - For the fiscal second quarter, gross margin is expected to remain similar to the first quarter, with an implied year-over-year decline due to the absence of last year's credit card agreement benefit [10] - Adjusted gross margin is projected to increase by 20 basis points, while adjusted operating expenses as a percentage of sales are expected to decline by 30 basis points year-over-year [12] Market Position and Valuation - Gap shares have underperformed recently, losing 24.7% in the past three months compared to the industry’s 3.4% growth [13] - The stock is trading at a forward price-to-earnings ratio of 9.7X, significantly below the industry average of 18.22X, presenting a potentially attractive investment opportunity [16]

Core Viewpoint - The Gap, Inc. is anticipated to report growth in both revenue and earnings for the first quarter of fiscal 2025, with revenues expected to reach $3.4 billion, reflecting a 0.9% increase year-over-year, and earnings estimated at 44 cents per share, indicating a 7.3% rise from the previous year [1][2]. Revenue and Earnings Expectations - The Zacks Consensus Estimate for first-quarter revenues is $3.4 billion, marking a 0.9% increase from the same quarter last year [1]. - The earnings estimate for the first quarter is 44 cents per share, which is a 7.3% increase compared to the prior year [2]. Performance Trends - The company has shown a positive trend in earnings surprises over the last four quarters, with an average surprise of 77.5% [2]. - The last reported quarter saw earnings exceed the Zacks Consensus Estimate by 50% [2]. Strategic Initiatives - Gap is focusing on enhancing its merchandise assortment, improving customer relations through marketing, and advancing its digital commerce strategy [4]. - The company aims to achieve $150 million in cost savings for fiscal 2025, which will be partially reinvested in growth initiatives [8]. Market Position and Brand Performance - Gap's diverse brand portfolio, including Old Navy, Banana Republic, and Athleta, positions it well in the apparel industry [5]. - The company expects sales growth to be driven primarily by the Old Navy and Gap brands, with Banana Republic stabilizing and Athleta recovering [6]. Supply Chain and Cost Management - Gap has improved supply-chain efficiency and diversified sourcing to mitigate tariff impacts, with less than 10% of products sourced from China [9]. - The gross margin is expected to rise slightly from 41.2% in the prior year, with adjusted operating margins projected to increase by 30 basis points to 6.4% [10][11]. Stock Performance and Valuation - Over the past year, Gap's shares have increased by 35.7%, outperforming the industry and the S&P 500 [12]. - The stock is currently trading at a forward price-to-earnings ratio of 12.01X, below the industry average of 17.68X, indicating attractive valuation [18]. Long-term Growth Outlook - The company is positioned for long-term growth through strategic marketing, digital initiatives, and operational efficiency [21]. - Despite macroeconomic challenges, Gap's disciplined cost management and brand diversification are expected to yield positive results [22].

Core Insights - The article compares Canada Goose (GOOS) and Deckers (DECK) to determine which stock offers better value for investors [1] Valuation Metrics - Canada Goose has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while Deckers has a Zacks Rank of 3 (Hold) [3] - GOOS has a forward P/E ratio of 9.72, significantly lower than DECK's forward P/E of 17.16, suggesting GOOS may be undervalued [5] - The PEG ratio for GOOS is 0.65, compared to DECK's 1.13, indicating GOOS has a better expected EPS growth relative to its price [5] - GOOS has a P/B ratio of 2.22, while DECK's P/B ratio is 6.39, further supporting the notion that GOOS is more attractively valued [6] - GOOS has a Value grade of A, whereas DECK has a Value grade of C, highlighting the relative undervaluation of GOOS [6] Conclusion - Overall, GOOS shows stronger estimate revision activity and more attractive valuation metrics than DECK, making it a more appealing option for value investors [7]