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3 Growth Stocks to Invest $1,000 In Right Now
The Motley Foolยท 2025-10-01 07:14
These stocks are rising, and they all are looking at long-term opportunities.Growth stocks tend to lead the market in either direction. When the market is in fine bull form, it's the growth stocks that are out in front, pulling it forward. On the flip side, when the market is down, growth stocks, which are usually riskier than the average stock, tend to fall harder.With the S&P 500 (^GSPC 0.41%) up a brisk 14% this year, growth stocks as a category are enjoying the gains. The Nasdaq-100, a curated selection ...
lululemon Q2 Earnings Beat Estimates, Stock Tumbles on Downbeat View
ZACKSยท 2025-09-05 17:51
Core Insights - lululemon athletica inc. (LULU) reported second-quarter fiscal 2025 results with earnings per share (EPS) of $3.10, which beat the Zacks Consensus Estimate of $2.53, but revenues of $2.5 billion fell short of the expected $2.84 billion, reflecting a year-over-year decline driven by softness in the Americas [1][2][4][7] Financial Performance - The company's EPS declined 1.6% year over year from $3.15 to $3.10, despite surpassing estimates [2] - Quarterly revenues increased 7% year over year to $2.5 billion but missed expectations, with net revenues growing 1% in the Americas and 22% internationally [4][8] - Total comparable sales rose 1% year over year, with a 4% decline in the Americas and a 15% increase internationally [5] - Gross profit improved 5% year over year to $1.48 billion, but gross margin contracted by 110 basis points to 58.5% due to increased markdowns and tariff impacts [10][11] Operational Insights - The company opened 14 net new stores in the second quarter, bringing the total to 784 stores as of August 3, 2025 [14] - For fiscal 2025, lululemon plans to open 40-45 net new stores, with a focus on international markets, particularly China [15][16] Guidance and Outlook - Lululemon lowered its revenue and EPS guidance for fiscal 2025, now expecting net revenues of $10.85-$11 billion, down from the previous estimate of $11.15-$11.3 billion [20][21] - The company anticipates a 300-bps year-over-year decline in gross margin, primarily due to increased tariffs and the removal of the de minimis exemption [23][30] - For the third quarter of fiscal 2025, lululemon expects net revenues of $2.47-$2.5 billion, indicating 3-4% year-over-year growth, with an expected EPS of $2.18-$2.23 [29][32] Inventory and Capital Expenditure - As of the end of the second quarter, lululemon had cash and cash equivalents of $1.6 billion and inventories rose 21% year over year to $1.7 billion [17] - The company expects capital expenditures of $700-$720 million for fiscal 2025, down from earlier estimates [28]
Snap-on Stock Dips 3.4% in a Month: Time to Buy or Red Flag?
ZACKSยท 2025-05-12 18:30
Core Viewpoint - Snap-on Inc. (SNA) experienced a 3.4% decline in share price over the past month, primarily due to disappointing first-quarter 2025 results that missed revenue expectations and showed a year-over-year decline [1][3]. Financial Performance - In Q1 2025, Snap-on reported a 3.5% year-over-year decline in revenues, missing the Zacks Consensus Estimate, attributed to a 2.3% dip in organic sales and a $13.9 million negative impact from unfavorable foreign currency translation [3][4]. - The Tools Group segment, a significant revenue contributor, saw a 7.4% year-over-year sales decline, reflecting reduced U.S. operations and technician reluctance to finance purchases [6][8]. - The Commercial & Industrial Group also faced a 4.4% decline, impacted by decreased military-related demand and softness in the European hand tools market [6][8]. - Despite the overall decline, the Repair Systems & Information Group and Financial Services segment showed positive performance, with the former exceeding expectations due to rising demand from OEM dealerships and independent shops, and the latter achieving a 2.5% revenue increase [7][8]. Margin and Cost Control - Snap-on reported a gross margin expansion of 20 basis points year-over-year to 50.7%, despite a 3.1% decline in gross profit, indicating effective cost control and a favorable product mix [8]. Outlook and Estimates - Management maintains a cautiously optimistic outlook for 2025, focusing on resilience amid macroeconomic uncertainties and aiming to drive growth through established strategic initiatives [10]. - Following the soft Q1 performance, the Zacks Consensus Estimate for SNA's earnings per share has been revised downward by 0.8% for both 2025 and 2026, now projected at $18.76 and $20.04 per share, respectively [11].
Abercrombie & Fitch Co. to Report First Quarter 2025 Results on May 28, 2025
GlobeNewswire News Roomยท 2025-05-02 12:00
Group 1 - Abercrombie & Fitch Co. will host its quarterly earnings conference call on May 28, 2025, at 8:30 a.m. ET, with a press release on first quarter results expected at 7:30 a.m. ET [1] - Participants must register to obtain a dial-in phone number and access code for the conference call [2] - A live webcast of the call will be available on the company's investor relations website, with a replay accessible shortly after the call ends [7] Group 2 - Abercrombie & Fitch Co. is a global, digitally led omnichannel specialty retailer of apparel and accessories, targeting kids through millennials [4] - The company operates approximately 790 stores across North America, Europe, Asia, and the Middle East, along with several e-commerce sites [5] - The family of brands includes Abercrombie and Hollister, focusing on quality and comfort for their customers [5]
5 Bargain Picks With Low Price-to-Sales Ratios & High Upside Potential
ZACKSยท 2025-04-16 12:35
Core Insights - Investing in stocks based on valuation metrics, particularly the price-to-earnings (P/E) and price-to-sales (P/S) ratios, is a strategic approach to identify potential investment opportunities [1][3] Price-to-Sales Ratio - The price-to-sales ratio is particularly useful for evaluating unprofitable companies or those in early growth stages, as it reflects how much investors pay for each dollar of revenue generated [3][4] - A P/S ratio below 1 indicates a good bargain, as investors pay less than a dollar for a dollar's worth of revenue, making it a more attractive investment compared to stocks with higher P/S ratios [4][5] - The P/S ratio is preferred over the P/E ratio because sales are harder to manipulate than earnings, providing a more reliable measure of a company's value [5] Screening Parameters - Companies with a P/S ratio less than the median for their industry, a P/E ratio below the industry median, and a price-to-book ratio lower than the industry median are considered better investment opportunities [7] - A debt-to-equity ratio below the industry median is also favorable, as it indicates a more stable P/S ratio [8] - Stocks must be trading at a minimum price of $5 and have a Zacks Rank of 1 (Strong Buy) or 2 (Buy) to qualify for investment consideration [8] Company Highlights - G-III Apparel Group (GIII) focuses on digital growth and omnichannel strategies, enhancing its e-commerce platforms and partnerships, and currently holds a Value Score of A with a Zacks Rank of 2 [10][11] - PCB Bancorp (PCB) offers a range of banking products and services, with strategic expansion positioning it for sustained growth, also holding a Value Score of A and a Zacks Rank of 2 [12][13] - Gibraltar Industries (ROCK) benefits from operational improvements and a focus on its 80/20 initiatives, which enhance its performance and growth potential, currently holding a Value Score of A and a Zacks Rank of 2 [14][15] - PRA Group (PRAA) is expanding its services beyond debt collection, with strategic acquisitions and partnerships enhancing its growth prospects, currently holding a Value Score of B and a Zacks Rank of 1 [16][17] - Pampa Energia S.A. (PAM) operates in the energy sector in Argentina, engaging in electricity generation and oil and gas production, with a Zacks Rank of 2 and a Value Score of A [18][19]
Chinese TikTok users mock tariffs, telling people to buy brands like Nike direct
Fox Businessยท 2025-04-15 19:58
Core Insights - Recent TikTok videos from Chinese users are encouraging American consumers to buy fashion items directly from Chinese factories, highlighting lower prices and quality of Chinese manufacturing [1][2][4] - This campaign appears to be a strategic move to counteract U.S. tariffs on Chinese goods, promoting the idea that purchasing directly from China is more desirable despite ongoing trade tensions [4] Group 1: TikTok Campaign - TikTok videos suggest that brands like Nike and Lululemon source products from Chinese factories, urging consumers to bypass U.S. retail prices [1][2] - The videos claim that consumers will be surprised by the lower prices available directly from Chinese manufacturers [3] Group 2: Trade Relations - The U.S. has increased tariffs on Chinese imports to 145%, while China has raised its tariffs on U.S. goods to 125% amid ongoing trade disputes [5] - The TikTok campaign is seen as an attempt to undermine President Trump's tariff policies by promoting Chinese manufacturing as a cheaper alternative [4]
Why BURL Could be an Undervalued Gem: Key Insights for Investors
ZACKSยท 2025-03-28 13:40
Core Viewpoint - Burlington Stores, Inc. (BURL) is currently undervalued compared to its industry peers, presenting an attractive investment opportunity due to its low price-to-sales multiple and strong value score [1][2][16]. Valuation and Performance - BURL is trading at a forward 12-month price-to-sales (P/S) ratio of 1.33, lower than the industry average of 1.70 and the sector average of 1.51 [1]. - The stock is currently 17.8% below its 52-week high of $298.89, reached on November 25, 2024, and has gained 5.8% over the past year, slightly underperforming the industry growth of 6.7% [5]. Strategic Initiatives - The implementation of the Burlington 2.0 strategy has improved the company's market adaptability by refining its product mix and enhancing customer engagement [8][9]. - Burlington's agile merchandising strategy has allowed it to respond effectively to market changes, providing a competitive edge in the off-price retail segment [9]. Expansion Plans - In fiscal 2024, Burlington added 101 net new stores, exceeding its target of 100, and plans to continue this aggressive expansion with at least 100 net new stores in fiscal 2025 and 2026 [10][11]. - The company has capitalized on real estate opportunities from the closure of other retailers, enhancing its market presence [11]. Financial Outlook - For fiscal 2025, Burlington expects total sales growth of 6-8% and a comparable sales increase of 0-2%, with an anticipated improvement in adjusted EBIT margin by 30 basis points year over year [12][13]. - Adjusted earnings per share (EPS) is forecasted to be between $8.70 and $9.30, up from $8.35 in the previous year [13]. Cost Considerations - Adjusted selling, general and administrative costs rose 4% year over year to $745.6 million in the fiscal fourth quarter, with expectations for a 7.6% increase in fiscal 2025 [14][15].
3 Soaring Stocks I'd Buy Now With no Hesitation
The Motley Foolยท 2025-03-20 08:51
Group 1: Market Overview - The S&P 500 is currently down in 2025, presenting a potential buying opportunity as economic uncertainty drives investor fear [1] - Despite market conditions, many companies are performing well and have significant growth opportunities [1] Group 2: MercadoLibre - MercadoLibre stock has increased by 41% over the past year and is the only stock on the list that is up in 2025 [3] - The company operates an e-commerce platform in Latin America, which is still underpenetrated at about 13% compared to 24% in the U.S., benefiting from a growing customer base [4] - Revenue for MercadoLibre increased by 96% year over year in Q4 2024, with gross merchandise volume (GMV) up 56% [4] - The company has developed a fintech infrastructure that supports digital payments, with total payment volume increasing by 49% year over year in Q4 [6] - MercadoLibre is the leading fintech company in three of its four largest markets by monthly active users [6] - The company is positioned for significant growth as it drives a digital revolution in its region [7] Group 3: Shopify - Shopify stock has risen by 25% over the past year, with strong growth and increasing profitability [8] - The company has expanded beyond e-commerce websites to become a full commerce platform, with most sales now coming from payment processing [9] - International sales grew by 33% year over year in 2024, accounting for 30% of total revenue [10] - Shopify has reported seven consecutive quarters of revenue growth of at least 25%, with a free-cash-flow margin reaching 22% in Q4 [11] - The company has substantial long-term opportunities and is rolling out more services in international markets [10][11] Group 4: On Holding - On Holding stock has increased by 45% over the past year, recognized for its unique sneaker soles and growing brand presence [12] - The company reported a 41% year-over-year revenue increase in Q4 2024, driven by a 48% rise in direct-to-consumer sales [14] - On's gross margin expanded from 60.4% to 62.1% year over year in Q4, with net income increasing by 435% [14] - The management has a four-pillar strategy focused on brand awareness, omnichannel strategy, product assortment expansion, and operational efficiency [15]