Key Takeaways URBN retail sales rose 6.4% y/y as stores and digital posted positive comps, led by regular-price sales. Anthropologie drove a 6.9% comps gain, aided by traffic, resort wear and lifestyle category expansion. Urban Outfitters posted positive comps, with Europe up 14%, aided by collaborations and turnaround efforts.Urban Outfitters Inc. (URBN) retail segment delivered strong results in first-quarter fiscal 2026. Total net sales in the Retail segment rose 6.4% year over year, with comparable ne ...

Core Insights - Tapestry, Inc. (TPR) shares reached a new 52-week high of $102.31, closing at $102.16, with a stock rise of 56.4% compared to a 12.3% decline in the Zacks Retail-Apparel and Shoes industry [1] - The company's diversified business model and strong omnichannel presence position it to outperform the broader Retail Wholesale sector and the S&P 500 index [1] Stock Performance - Tapestry is currently trading above its 50-day and 200-day simple moving averages of $84.69 and $69.85, indicating price stability and long-term bullish trends [2][4] - The technical strength reflects positive market sentiment and growing investor confidence in TPR's financial health and growth potential [2] Growth Drivers - Tapestry's leadership in the global affordable luxury market is driven by focused brand strategies, strong customer engagement, and operational excellence [5] - The Coach brand is a key growth driver, posting a 15% year-over-year revenue increase and achieving a record 79% gross margin [6][10] - Coach added 900,000 new North American customers, with nearly 70% from Gen Z and Millennials [8][9] International Performance - International markets contributed significantly, with Europe's revenues growing 35% at constant currency and Asia-Pacific rising 4%, including a 5% gain in Greater China [11] - The omnichannel model remains a competitive advantage, with direct-to-consumer sales up 9% [11] Financial Health - Tapestry returned over $2 billion to shareholders through dividends and share repurchases in fiscal 2025, supported by strong free cash flow [12] - The company maintains a gross leverage of 1.6 times adjusted EBITDA, well below the target of under 2.5 times, indicating financial flexibility [12] Future Outlook - For fiscal 2025, Tapestry raised its full-year guidance, expecting net sales of approximately $6.95 billion, representing about 4% year-over-year growth [13] - Earnings per share are projected at $5, indicating high-teens growth over the prior year [13] - Regional sales growth is expected to be 3-4% in North America, approximately 30% in Europe, and low-single-digit growth in Greater China [14] Profitability Expectations - The company anticipates operating margin expansion of about 100 basis points year-over-year, driven by gross margin improvements [15] - Free cash flow for fiscal 2025 is forecasted to be approximately $1.3 billion, supporting continued investments in store enhancements and digital infrastructure [15]

Core Insights - Tapestry, Inc.'s omnichannel strategy enhances customer engagement and drives revenue growth and profitability through the integration of digital and physical retail channels [1][6] Financial Performance - In Q3 of fiscal 2025, direct-to-consumer sales increased by 9% year-over-year, with digital sales growing in the mid-teens and brick-and-mortar sales seeing mid-single-digit growth [2] - Total net sales reached $1,584.6 million, marking a 6.9% year-over-year increase and an 8% growth on a constant-currency basis [2] Customer Engagement - The omnichannel model improves customer experience and captures full-price demand across various touchpoints, particularly appealing to Gen Z consumers through innovative retail formats [3] - Tapestry acquired over 1.2 million customers in North America in Q3, with two-thirds being Gen Z and Millennials, indicating strong future lifetime value [5] Marketing Strategy - Marketing investments have increased to nearly 10% of sales, up from 3-4% pre-pandemic, focusing on effective media planning and emotional storytelling [4] Valuation Metrics - Tapestry is currently trading at a forward P/E multiple of 16.93X, which is lower than the Retail-Apparel and Shoes industry's average of 17.99X and the Retail-Wholesale sector's average of 24.97X [7] Stock Performance - Tapestry's shares have risen by 44.3% over the past three months, outperforming the Zacks industry growth of 25.5% and the S&P 500 index's growth of 18.2% during the same period [11] - The stock closed at $92.21, near its 52-week high of $93.48, and is trading above its 50 and 200-day SMAs of $80.65 and $67.92, respectively [14] Earnings Estimates - The Zacks Consensus Estimate for Tapestry's earnings has increased by seven cents to $5.05 per share for the current fiscal year, indicating a year-over-year growth of 17.7% [16]

Core Insights - Urban Outfitters Inc. (URBN) reported record first-quarter sales of $1.33 billion for fiscal 2026, reflecting a year-over-year increase of 10.7% with all five brands achieving positive comparable sales [1][9] - The company's operating profit surged by 71.8% to $128.2 million, moving closer to its long-term goal of a 10% operating margin [1] Sales Performance - Free People led the sales growth with an 11% increase, driven by retail and wholesale gains, including a 3.1% rise in retail comparable sales and a 25.6% increase in wholesale revenue [2] - Nuuly, the apparel rental subscription service, added over 110,000 subscribers year-over-year, surpassing 380,000 subscribers, resulting in a 59.5% revenue increase for the brand [4] - Anthropologie achieved its 10th consecutive quarter of double-digit operating profit growth, supported by a 6.9% retail comparable sales increase [6] Brand Developments - The Urban Outfitters brand recorded a 2.1% global retail comparable sales increase, with a notable 14% gain in Europe, which offset a 4% decline in North America [7] - The company opened 43 new locations under Free People and FP Movement over the past year, with expectations of mid-single-digit retail comparable gains in the upcoming fiscal quarter [3] Financial Outlook - URBN projects high-single-digit sales growth for the fiscal second quarter, with an anticipated gross margin improvement of 50-100 basis points for the year [8] - The Zacks Consensus Estimate for URBN's earnings has been revised upward, indicating year-over-year growth of 22.2% for the current fiscal year and 9.9% for the next fiscal year [16] Stock Performance - URBN shares have rallied 40% in the past three months, outperforming the Zacks Retail-Apparel and Shoes industry's growth of 18.9% [10] - The stock is currently trading 6.8% below its 52-week high, with technical indicators suggesting a continued uptrend [11] Valuation Metrics - URBN is considered a compelling value play, trading at a forward 12-month price-to-sales ratio of 1.02, below the industry average of 1.77 [12]

Core Insights - Tapestry, Inc.'s Coach brand reported strong performance in Q3 of fiscal 2025, with net sales reaching $1.29 billion, marking a 13% year-over-year increase on a reported basis and 15% growth on a constant-currency basis, reinforcing its leadership in the accessible luxury segment [1][9] Financial Performance - Coach achieved a record gross margin of 79% in Q3, driven by operational efficiency and premium pricing power, with Average Unit Retail (AUR) growing in the mid-teens and now approximately 70% higher than in 2019 [2][9] - The leather goods segment experienced strong double-digit growth, particularly from the Tabby and New York collections, with key products selling out quickly [3][9] Strategic Initiatives - The "One Coach" strategy, which aligns product and pricing across outlet and full-price channels, has enhanced consumer engagement and margin expansion [3] - Tapestry has upgraded its fiscal 2025 revenue guidance to $6.95 billion, indicating a 4% growth from the previous year, surpassing earlier expectations of 3% growth [4] Regional Performance - Sales growth expectations include 3-4% in North America, around 30% in Europe, low-single digits in Greater China, and high-single digits in other parts of Asia, with an anticipated operating margin expansion of 100 basis points year-over-year [5] Earnings Forecast - Earnings per share are projected to be $5.00, reflecting high-teens percentage growth from the previous year, exceeding earlier estimates of $4.85-$4.90 [5] - The Zacks Consensus Estimate for the current fiscal year's earnings has increased to $5.05 per share, indicating year-over-year growth of 17.7% [12] Stock Performance - Tapestry's shares have increased by 27.1% over the past six months, outperforming the broader Retail-Apparel and Shoes industry, which declined by 16.8% [6] - The stock is currently trading above its 50 and 200-day simple moving averages, indicating positive market sentiment and investor confidence [10]

Core Insights - Urban Outfitters Inc. (URBN) reported a strong start to fiscal 2026, with gross profit rising 19.8% year over year to a record $489.1 million, resulting in a gross margin of 36.8%, an expansion of 278 basis points from the prior year [1][9] - The company achieved a core margin increase of 204 basis points, driven by lower markdowns in the Retail segment and reduced delivery costs [2] - Operating income surged 72% to $128.2 million, with the operating margin increasing 340 basis points to 9.6% of sales, supported by strong full-price selling and disciplined inventory management [3] Financial Performance - Management expects the second-quarter gross margin to improve by 50-100 basis points year over year, with confidence in achieving a 10% operating margin goal for fiscal 2026 [4] - URBN's shares have rallied 38.4% in the past three months, outperforming the broader Retail-Wholesale sector and the S&P 500 index [6] - The stock is currently trading 10.3% below its 52-week high of $75.80, with technical indicators showing strong performance [9][10] Valuation and Estimates - URBN is trading at a forward 12-month price-to-sales ratio of 0.99, below the industry average of 1.65, indicating potential for investors [13] - The Zacks Consensus Estimate for earnings has been revised upward, with current fiscal year estimates at $4.96 per share, reflecting year-over-year growth of 22.2% [15] - Sales estimates for the current and next fiscal years are pegged at $6.02 billion and $6.42 billion, implying year-over-year growth of 8.5% and 6.6%, respectively [17]

Core Viewpoint - Deckers Outdoor Corporation (DECK) has experienced a significant decline in stock price, dropping 49% over the past six months, which is substantially worse than the broader retail and market indices [1][4][9] Group 1: Stock Performance - DECK shares have underperformed compared to the Zacks Retail-Apparel and Shoes industry, which fell by 15.7%, and the Retail-Wholesale sector's decline of 3.4% [1][4] - The stock closed at $107.70, nearly 51.9% below its 52-week high of $223.98 reached on January 30, 2025, and is trading below its 50 and 200-day moving averages [6][9] - Compared to peers, Boot Barn's shares increased by 9.6%, while Adidas and Nike saw declines of 7.3% and 18.7%, respectively [5] Group 2: Growth Challenges - The decline in DECK's stock price is attributed to slowing growth and increased competition in the footwear and accessories market, alongside weaker direct-to-consumer (DTC) sales in the U.S. for HOKA [4][9] - Management anticipates up to $150 million in additional costs due to new tariffs, which will impact gross margins that reached a record 57.9% in fiscal 2025 but are expected to decline in fiscal 2026 [15][20] - The company has opted not to provide formal revenue or earnings guidance for fiscal 2026 due to uncertainties in global trade policies and consumer sentiment [19] Group 3: Strategic Initiatives - Deckers is focusing on sustainable growth through global expansion, innovation, and a balanced channel strategy, with HOKA and UGG deriving 34% and 39% of revenues from international markets in fiscal 2025 [21] - The company is investing in innovation, with five HOKA franchises generating over $100 million annually, and is adapting to consumer preferences through digital-first strategies [22] Group 4: Valuation Concerns - DECK is currently trading at a forward 12-month price-to-sales (P/S) ratio of 2.96, significantly higher than the industry average of 1.74 and the sector average of 1.61, raising concerns about its elevated valuation amid current challenges [10][11]

Core Insights - Urban Outfitters Inc. (URBN) shares reached a 52-week high of $75.57, closing at $75.26, with a year-to-date stock rally of 37.1% compared to a 12.3% decline in the Zacks Retail-Apparel and Shoes industry [1] - The company's strategic initiatives and operational efficiencies have allowed it to outperform the broader Retail-Wholesale sector and the S&P 500 index, which saw growth of 0.6% and a decline of 1.8%, respectively [1] Stock Performance - URBN is trading above its 50-day and 200-day simple moving averages (SMA) of $53.43 and $47.65, indicating a continued uptrend and positive market sentiment [4] - The stock's strong performance is supported by sustained momentum and investor confidence in URBN's financial health and growth prospects [4] Strategic Growth Initiatives - URBN's strategic approach balances innovation with operational excellence, allowing the company to shape industry shifts rather than merely react to them [6] - The diversified brand portfolio and data-informed expansion strategy are advancing in high-growth areas while reinforcing core strengths [6] Operational Efficiency - In Q1 of fiscal 2026, URBN achieved a gross margin expansion of 278 basis points due to favorable cost shifts and sustainable operational enhancements [7] - Logistics initiatives, such as reducing package numbers per order and transitioning shipments from air to sea, have led to significant delivery expense leverage [8] Brand Performance - Each of URBN's brands, particularly Anthropologie and Free People, is showing notable strength, with Anthropologie achieving 10 consecutive quarters of double-digit operating profit growth [9] - Free People and FP Movement are key growth drivers, with FP Movement posting 29% total sales growth in the fiscal first quarter [10] Future Outlook - URBN anticipates high-single-digit growth across total sales for the fiscal second quarter, with mid-single-digit growth in the Retail segment and low-double-digit growth in the Wholesale segment [11] - The subscription rental business, Nuuly, is expected to deliver mid-double-digit revenue growth, supported by an increase in active subscribers [11] Valuation Metrics - URBN is trading at a forward 12-month price-to-sales ratio of 1.15, below the industry average of 1.76 and the sector average of 1.59, indicating potential for investors [12] - The Zacks Consensus Estimate for URBN's earnings has been revised upward, indicating year-over-year growth of 20% for the current fiscal year and 8.7% for the next fiscal year [15] Investment Appeal - URBN is characterized as a strong value pick, backed by disciplined operations, diversified growth channels, and consistent brand performance [18] - Positive earnings revisions and attractive valuation further highlight URBN's investment appeal, making it a compelling choice for long-term growth-focused investors [18]

Stitch Fix, Inc. (SFIX) has demonstrated strong upward momentum, trading above its 50-day and 200-day simple moving averages (SMA). SFIX closed Friday’s trading session at $4.17, ahead of its 50-day and 200-day SMA of $3.48 and $3.88, respectively. This technical strength, along with sustained momentum, reflects positive market sentiment and investor confidence in SFIX's financial health and growth prospects.SFIX Trades Above 50 & 200-Day Moving AveragesImage Source: Zacks Investment ResearchShares of the c ...

As Deckers Outdoor Corporation (DECK) prepares to announce its fourth-quarter fiscal 2025 earnings results on May 22, after the market closes, investors are keen to assess the company's performance amid ongoing market challenges and opportunities. Deckers, known for its portfolio, including UGG and HOKA brands, has been navigating a dynamic landscape with strategic initiatives to sustain growth. The Zacks Consensus Estimate for revenues is pegged at $985.6 million, which indicates an improvement of 2.7% fro ...