ARM - ARM's shares are lower, but not as much as pre-market indications suggested, with adjusted EPS at 43 cents, beating the expected 41 cents [2] - Revenue was in line with expectations at approximately $1.24 billion, matching consensus [2] - Despite solid earnings, concerns arise from missed expectations in licensing revenue, which is crucial for future growth, particularly due to smartphone exposure [3][4] Estee Lauder - Estee Lauder's shares are under significant pressure, down 15%, despite better-than-expected adjusted EPS of 89 cents compared to the expected 83 cents [5][6] - Revenue was $4.229 billion, slightly above the expected $4.219 billion, but non-adjusted profit fell below expectations due to a major restructuring program [6][7] - Tariff pressures are expected to reduce profits by about $100 million, leading to anticipated contraction in operating margins [8] Tapestry - Tapestry, the parent company of Coach and Kate Spade, reported strong results with shares rallying 9% [10] - Adjusted earnings were $2.69 per share, with revenue at $2.5 billion, both better than expected [11] - Coach sales surged by 25%, driven by strong demand, while Kate Spade continues to struggle in recovery [12][13]

Core Insights - Macy's sales have reached their highest level in over three years, indicating significant progress in its turnaround strategy initiated in 2024 [1] - The latest report shows that sales at stores planned to remain open increased for the second consecutive quarter, while overall sales across the Macy's brand grew at the fastest rate in 13 quarters [1] Group 1: Sales Performance - Bloomingdale's and Bluemercury, also owned by Macy's Inc., continued to show growth, with Bloomingdale's achieving five straight quarters of comparable-store sales growth and Bluemercury reaching 19 consecutive quarters of growth [2] - Strong demand for "giftable" categories such as sweaters, pajamas, sneakers, and handbags has been noted, with Coach bags being particularly popular during Black Friday, mostly selling at full price [5] - Retailers, including Macy's, have maintained promotions at the same or lower levels than the previous year, allowing for more new products to be sold at full price due to healthier inventories [8] Group 2: Strategic Initiatives - Macy's is implementing a strategy that includes closing about 150 underperforming stores by the end of 2026 to achieve sustainable and profitable sales [9] - The company has faced challenges in adapting to rapid industry changes and competition, which has historically impacted its performance [11] - To attract younger customers, there is a need for Macy's to enhance product offerings and create engaging in-store events, as emphasized by industry experts [13][14]

E.L.F. Beauty Analysis - E.L.F. is increasing product costs by approximately $1 [2] - Core E.L.F. brand growth is moderating to around 2-5% in the second half, previously around 20% [3] - Retailers are destocking and facing tough comparisons, impacting E.L.F.'s core brand growth [5] - Consumption trends in the market are attractive, around 7-10% [5] Tapestry (Coach & Kate Spade) Analysis - Coach is experiencing strong growth, up 21%, driven by capturing Generation Z customers and offering good value [7] - Coach bags are priced around $300-$500, offering value compared to luxury brands like Louis Vuitton and Cartier ($2,000-$3,000+) [8] - Kate Spade is still a work in progress [8] - High expectations were set for Tapestry coming into the quarter [9] Consumer & Retail Trends - Higher-income spenders are increasingly important to companies [11] - Retailers with a middle-income positioning, like department stores, face a tougher environment [12] - The US consumer has been resilient with low unemployment [13] - Consumers are prioritizing value and low price points [13] Canada Goose Analysis - Direct-to-consumer comps are up 10% [15] - Marketing expenses were higher than Wall Street expected, impacting EBIT [15]