Tim Beyers: It is a thing that is going on. We hope the market is up. There is hope. If you haven't followed it, there is hope for the ending of the government shutdown, lots of things that political pundits will tell you about. We're going to tell you about some stocks. Let's start with Axon Enterprise. Emily, we're looking at three earnings reports that surprised and disappointed. Axon was one of them. What we want to do is break down what the street didn't like, what we think, and whether we think now is ...

Financial Data and Key Metrics Changes - Net revenue grew 15.2% year over year to $221.7 million, driven by a 20% increase in retail revenue [4][24] - Adjusted gross margin was 54.2%, slightly down from 54.6% in the previous year [29] - Adjusted EBITDA increased approximately 50% to $25.7 million, representing an adjusted EBITDA margin of 11.6% [4][32] Business Line Data and Key Metrics Changes - Glasses revenue grew 13% year over year, while contact lenses increased by 21% and eye exams surged by 41% [25][26] - Retail revenue accounted for 73% of total revenue, with a 20% year-over-year growth driven by new store openings [24][26] - The average revenue per customer rose 4.8% year over year to $320 [11][25] Market Data and Key Metrics Changes - Active customers reached 2.7 million, reflecting a 9.3% increase on a trailing 12-month basis [11][25] - The retail channel remains the primary growth engine, with strong customer acquisition through stores [11][12] - Contacts represented 11.5% of revenue, consistent with the prior quarter but below the industry average [21][26] Company Strategy and Development Direction - The company is entering its "third act," focusing on innovation through AI, including the development of AI glasses and enhanced customer experiences [6][8] - Plans to leverage partnerships with Google and Samsung to create intelligent eyewear [6][7] - The strategy includes expanding the retail footprint and enhancing the omnichannel experience while maintaining operational discipline [8][20] Management's Comments on Operating Environment and Future Outlook - Management noted a mixed shift in consumer behavior, particularly among younger customers, impacting average selling prices [4][40] - The company is taking a more conservative view on revenue for the remainder of the year due to current macroeconomic conditions [33][63] - Confidence remains in the long-term growth algorithm, with expectations for continued customer growth and EBITDA expansion [41][43] Other Important Information - The company completed a major system upgrade in its optical labs to support future growth and faster delivery times [9] - The decision to retire the Scout brand and Home Try-On program reflects a focus on aligning with customer preferences and simplifying operations [21][70] - The Pupils Project continues to provide free eyeglasses to students in need, expanding its reach significantly [22][23] Q&A Session Summary Question: Can you provide more details on the mix shift between single vision and progressives? - Management noted that younger consumers are more impacted by economic uncertainty, leading to a shift towards lower-priced frames, while progressive customers remain resilient [40] Question: How should we think about the growth algorithm moving forward? - The company maintains confidence in its long-term growth algorithm, expecting continued high growth and EBITDA expansion [41][43] Question: What is the early performance of the Target shop-in-shops? - Early performance is in line with expectations, and the company plans to continue expanding this initiative [53] Question: How is optometrist retention and recruitment tracking? - The company reports improved retention and recruitment of optometrists, aided by a strong employer reputation and supportive culture [58] Question: What impact has the sunset of the Home Try-On program had on e-commerce? - The company has seen strong growth in direct e-commerce purchases, offsetting the decline from the Home Try-On program [70]

Core Insights - Mothercare's worldwide retail sales decreased by 18% to £230.6 million ($310.2 million) due to ongoing uncertainty in the Middle East and a reduction in sales arrangements in the UK [1] - The Group's Franchise Partners reported total retail sales of £80.7 million in the first 23 weeks of FY26, down from £107.7 million in FY25 [1] - Adjusted EBITDA for the 52-week period ending March 29 fell to £3.5 million from £6.9 million the previous year, while adjusted operating profit dropped 69% to £2 million [2] Financial Performance - The decline in retail sales is expected to lead to significantly reduced profitability for the Group [1] - The current business model is capable of supporting higher volumes, which could lead to increased income primarily benefiting the bottom line [2] Strategic Focus - Mothercare is in discussions with various parties to restore critical mass, particularly in the UK market [3] - The company aims to monetize operational gearing by enhancing its product offerings and leveraging the strength of the Mothercare brand [5] Historical Context - In 2019, Mothercare entered administration in the UK and closed all 79 stores, shifting focus to international operations and adopting a franchise model in the Middle East [4] - In 2023, the company formed a joint venture with India's Reliance Brands to franchise its brand in parts of Asia [4]

Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying those with true potential can be challenging due to associated risks and volatility [1] Group 1: Company Overview - Bath & Body Works (BBWI) is currently recommended as a growth stock by the Zacks Growth Style Score system, which evaluates a company's real growth prospects beyond traditional metrics [2] - The company has a favorable Growth Score and a top Zacks Rank, indicating strong investment potential [2][10] Group 2: Earnings Growth - Earnings growth is a critical factor for growth investors, with double-digit growth being particularly desirable [4] - Bath & Body Works has a projected EPS growth of 5.7% this year, significantly higher than the industry average of 2.9% [5] Group 3: Asset Utilization - The asset utilization ratio, or sales-to-total-assets (S/TA) ratio, is an important metric for assessing efficiency in generating sales [6] - Bath & Body Works has an S/TA ratio of 1.49, outperforming the industry average of 1.28, indicating better efficiency [7] Group 4: Sales Growth - The company is also well-positioned for sales growth, with an expected increase of 2.4% this year compared to the industry average of 1.2% [7] Group 5: Earnings Estimate Revisions - Positive trends in earnings estimate revisions are correlated with stock price movements [8] - Bath & Body Works has seen upward revisions in current-year earnings estimates, with a 0.7% increase in the Zacks Consensus Estimate over the past month [8] Group 6: Investment Positioning - Bath & Body Works has achieved a Growth Score of A and a Zacks Rank of 2 due to positive earnings estimate revisions, positioning it well for potential outperformance [10]

Core Insights - Williams-Sonoma Inc. (WSM) reported first-quarter fiscal 2025 results with earnings and net revenues exceeding the Zacks Consensus Estimate, showing a year-over-year increase in the top line and positive comparable sales [1][3] Financial Performance - Earnings per share (EPS) were reported at $1.85, surpassing the Zacks Consensus Estimate of $1.76 by 5.1%, although down from $1.99 in the prior-year quarter [3] - Net revenues reached $1.73 billion, exceeding the consensus mark of $1.67 billion by 3.7% and growing 4.2% year over year [3] - Comparable sales increased by 3.4%, a significant improvement from a negative 4.9% in the year-ago period [3] Segment Performance - Comparable sales at Williams-Sonoma increased by 7.3% compared to 0.9% in the year-ago quarter [4] - West Elm's comparable sales gained 0.2%, recovering from a 4.1% decline in the previous year [4] - Pottery Barn Kids and Teens saw a 3.8% increase in comparable sales, up from 2.8% in the year-ago quarter, while Pottery Barn's comparable sales inched up 2% from a 10.8% decline [4] Operating Metrics - Gross margin was reported at 44.3%, down from the projected 44.5%, and contracted 60 basis points year over year [5] - Selling, general and administrative expenses were 27.5% of net revenues, better than the projected 28.1%, reflecting a 130 basis points improvement year over year [6] - Operating margin expanded by 70 basis points to 16.8%, exceeding the model's prediction of 16.4% [6] Cash Flow and Shareholder Returns - As of May 4, 2025, cash and cash equivalents stood at $1.05 billion, down from $1.21 billion at the end of fiscal 2024 [7] - Net cash from operating activities totaled $118.9 million, compared to $226.8 million a year ago, allowing the company to return nearly $165 million to shareholders through stock repurchases and dividends [7] Future Guidance - For fiscal 2025, WSM projects annual net revenues to range from -1.5% to +1.5%, with comparable brand revenue growth expected to be flat to +3.0% [8] - Operating margin guidance is set between 17.4% and 17.8% [8] - Long-term expectations include mid-to-high single-digit revenue growth and operating margins in the mid-to-high teens [9]

Group 1 - Wheaton City Council unanimously approved a drive-thru addition to the restaurant space at 811 E. Butterfield Rd, previously occupied by Chipotle [1] - The property spans 4.1 acres and includes two commercial buildings measuring 9,920 square feet and 13,438 square feet, housing multiple tenants such as Oberweis Dairy and Pearle Vision [2] - The site has 192 parking spaces, which will be reduced to 166 to accommodate the drive-thru, allowing for a counterclockwise traffic flow around the larger building with space for five cars in line [3]

Core Viewpoint - Momentum investing focuses on "buying high and selling higher," contrasting with traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Strategy - Momentum investing can be risky as stocks may lose momentum when their valuations exceed future growth potential [1] - Investing in bargain stocks with recent price momentum may be a safer approach [2] Group 2: National Vision (EYE) Stock Analysis - National Vision (EYE) has shown a four-week price change of 0.9%, indicating growing investor interest [3] - EYE gained 17.8% over the past 12 weeks, demonstrating its ability to deliver positive returns over a longer timeframe [4] - EYE has a beta of 1.51, suggesting it moves 51% higher than the market in either direction [4] - EYE has a Momentum Score of B, indicating a favorable time to invest [5] - EYE holds a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which attract more investors [6] - EYE is trading at a Price-to-Sales ratio of 0.54, indicating it is reasonably valued at 54 cents for each dollar of sales [6] Group 3: Additional Investment Opportunities - Besides EYE, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen [7] - Zacks offers over 45 Premium Screens to help identify potential winning stock picks based on various investing styles [8]