Consumers are increasingly moving away from "soft luxury" items like handbags and accessories. Even iconic bags are starting to lose some of their resale momentum. The average resale premium for Hermes Birkin and Kelly bags fell from about 2.2% times retail in 2022 to around 1.4% times by late last year.At the same time, there's been a trend toward "hard luxury" purchases like watches and fine jewelry. Part of the reason the jewelry market has been more resilient is because these high end pieces contain pre ...

Core Insights - Fossil Group, Inc. reported a fiscal Q4 2025 revenue of $280.5 million, a 19.8% year-over-year decline, but exceeded consensus estimates by $31.22 million. The EPS was -$0.15, missing consensus by $0.15 [1][2]. Financial Performance - The revenue decline was attributed to the adoption of a full-price selling model and reduced discounts to protect brand value. Store closures contributed approximately 4% to the revenue decline as part of rationalization efforts [2]. - Gross margins for the quarter were reported at 57.4%, reflecting a 350 basis points increase year-over-year, driven by full-price selling and operational improvements [2]. Future Outlook - The company forecasts revenue between $945 million and $965 million for the upcoming period, indicating a 4% to 6% decline, which includes a $21 million impact from store closures [4]. - Fossil Group focuses on lifestyle accessories, including watches, jewelry, handbags, small leather goods, belts, and sunglasses [4].

Financial Data and Key Metrics Changes - In Q4 2025, Macy's, Inc. reported net sales of $7.6 billion, exceeding guidance of $7.35-$7.5 billion, but down from $7.8 billion last year [22] - Comparable sales rose 1.8%, significantly above guidance of down 2.5% to flat, with go-forward business comparable sales growth of 2% [23] - Adjusted diluted EPS was $1.67, exceeding the guidance range of $1.35-$1.55, despite a tariff impact of approximately $0.13 [26] Business Line Data and Key Metrics Changes - Macy's nameplate achieved 0.6% go-forward comparable sales growth, a 190 basis points improvement year-over-year [10] - Bloomingdale's saw a remarkable 9.9% comparable sales growth, marking its best holiday result on record [23] - Bluemercury achieved 1.6% annual comparable sales growth, driven by strong performance in dermatological skincare and fragrances [15] Market Data and Key Metrics Changes - Macy's digital channel represents approximately one-third of annual sales, benefiting from a modernized online presence [11] - The company reported a strong performance in holiday destination categories, including fragrances, jewelry, and handbags, which outperformed expectations [9] - The Macy's Thanksgiving Day Parade drew over 34 million viewers, generating significant social media impressions, which were leveraged into retail offerings [9] Company Strategy and Development Direction - The "A Bold New Chapter" strategy focuses on sustainable profitable growth, with a strong emphasis on customer engagement and operational efficiency [7][39] - The company plans to expand the Reimagine program to 200 locations, which will account for approximately 60% of the go-forward Macy's store base [17] - Macy's is committed to enhancing its omnichannel experience and investing in local market strengths to drive customer engagement [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate macroeconomic uncertainties while building on recent momentum [20] - The company is taking a prudent approach to guidance, reflecting both optimism about its strategy and caution regarding external factors [20] - Management highlighted the importance of maintaining a balanced approach to pricing and promotions to appeal to a diverse consumer base [56] Other Important Information - Macy's achieved a free cash flow yield of over 15%, with operating cash flow of $1.4 billion for the year [26] - The company returned $448 million to shareholders, including $197 million in cash dividends, marking a 27% increase in annual payout since 2021 [28] - The company is focused on leveraging AI across various operational areas to enhance customer experience and drive efficiencies [31] Q&A Session Summary Question: How does Macy's plan to remain resilient amidst consumer volatility? - Management expressed confidence in the company's growth across all nameplates and highlighted a healthy balance sheet and inventory levels as key strengths [42][43] Question: What are the expectations for AUR versus units in the upcoming year? - Management noted that AUR has been growing, reflecting improved assortments and customer engagement, while overall basket size is increasing despite a slight decline in units [44] Question: What actions are being taken to appeal to price-sensitive consumers? - Management emphasized a balanced promotional strategy that caters to both value-seeking and brand-conscious consumers, leveraging a diverse product portfolio [56] Question: What drove upside performance in Q4 and thoughts on private brands? - Management highlighted strong growth in women's contemporary apparel and fine jewelry, while private brands remain a focus for improvement and expansion [73] Question: What are the plans for store closures and openings? - Management indicated that approximately 65 store closures will be extended through 2028, with a focus on optimizing the store fleet to support the omnichannel business [67]

Financial Data and Key Metrics Changes - In Q4 2025, Macy's, Inc. reported net sales of $7.6 billion, exceeding guidance of $7.35-$7.5 billion, compared to $7.8 billion last year [23] - Comparable sales rose 1.8%, significantly above guidance for a decline of 2.5% to flat [24] - Adjusted diluted EPS was $1.67, exceeding the guidance range of $1.35-$1.55 [27] - For the full year 2025, adjusted diluted EPS was $2.32, well above the guidance of $2-$2.20 [10] Business Line Data and Key Metrics Changes - Macy's nameplate achieved 0.6% go-forward comparable sales growth, a 190 basis points improvement year-over-year [10] - Bloomingdale's saw a remarkable 9.9% growth in comparable sales, marking its best holiday result on record [24] - Bluemercury's comparable sales increased by 1.6%, driven by strong performance in dermatological skincare and fragrances [15] Market Data and Key Metrics Changes - Macy's digital channel represents approximately one-third of annual sales, benefiting from a modernized online presence [11] - The company reported a 17.1% increase in credit card revenue, totaling $205 million, driven by a healthy credit portfolio [25] - Macy's Media Network revenue was $72 million, up 12.5% [25] Company Strategy and Development Direction - The "Bold New Chapter" strategy focuses on sustainable profitable growth, with significant progress made in 2025 [7][8] - The company is expanding its Reimagine program to 200 locations, which is expected to drive further growth [17] - Investments in staffing, localized events, and improved assortments are key components of the strategy [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate macroeconomic uncertainties while building on recent momentum [21] - The guidance for 2026 reflects a prudent approach, considering potential macroeconomic and geopolitical factors [36] - The company anticipates net sales of approximately $21.4 billion to $21.65 billion for 2026, with comparable sales expected to range from -0.5% to +0.5% [37] Other Important Information - The company achieved a free cash flow yield of over 15%, with operating cash flow of $1.4 billion for the year [28] - Capital expenditures for 2025 were $740 million, down from $882 million in 2024, reflecting the completion of several long-term projects [30] - The company returned $448 million to shareholders, including $197 million in cash dividends [31] Q&A Session Summary Question: How does Macy's plan to remain resilient amidst consumer volatility? - Management expressed confidence in the growth across all nameplates and the strength of the balance sheet, despite external uncertainties [43][44] Question: What are the expectations for AUR versus units? - Management noted that AUR continues to grow, reflecting improved assortments and a positive consumer response [46] Question: Can you elaborate on Bloomingdale's recent performance? - Management highlighted broad-based growth across various categories and strong vendor support, indicating a positive outlook for Bloomingdale's [51] Question: What actions are being taken to appeal to price-sensitive consumers? - The company maintains a balance of promotional offerings and high-quality brands to cater to different consumer segments [58][60] Question: What are the core operational drivers of gross margin improvement? - Management indicated that improving assortments and enhancing the omni-channel experience are key drivers of gross margin performance [61]

Macy’s (NYSE:M) Q4 2026 Earnings call March 18, 2026 08:00 AM ET Speaker8Greetings, and welcome to the Macy's, Inc. fourth quarter 2025 earnings conference call. At this time, all participants are on a listen-only mode. A question-and-answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this call is being recorded. I would now like to turn the call over to Pam Quintiliano, Vice ...

Core Insights - Fossil Group, Inc. reported financial performance exceeding guidance for 2025, with worldwide net sales reaching $1 billion and a gross margin expansion of 390 basis points to 56.1% [1][4] - The company unveiled the next phase of its turnaround plan aimed at returning to top-line growth and improving profitability [2] Financial Performance - For the fourth quarter of 2025, net sales were $280.5 million, a decrease of 18.1% year-over-year, primarily due to a shift to a full-price selling model and store rationalization initiatives [3] - Gross profit for the fourth quarter was $161.0 million, with a gross margin of 57.4%, an increase from 53.9% in the previous year [3] - Operating income was $0.9 million, compared to an operating loss of $16.3 million in the fourth quarter of 2024, resulting in an operating margin of 0.3% [3][17] Yearly Overview - For the full year 2025, net sales totaled $1.0 billion, down 12.3% from $1.1 billion in 2024, with declines across all regions [4][5] - The company achieved a gross profit of $563.1 million for the year, with a gross margin increase to 56.1% from 52.2% [4][5] - Operating loss for the year was $19.1 million, an improvement from a loss of $103.9 million in 2024, with an operating margin of (1.9)% [4][5] Balance Sheet and Cash Flow - As of January 3, 2026, the company had $95.8 million in cash and cash equivalents, with total debt at $177.8 million [6] - Inventories decreased by 15.0% year-over-year to $151.8 million [6] Turnaround Plan and Future Outlook - The next evolution of the Turnaround Plan includes three pillars: returning to profitable growth, optimizing the operating model, and building shareholder value [7] - For 2026, the company expects worldwide net sales to decline by 4% to 6%, with a return to growth anticipated in the fourth quarter [12]

Financial Data and Key Metrics Changes - In Q4 2025, the company achieved $616 million in GMV, representing a 22% growth year-over-year, with an Adjusted EBITDA margin of 11% [5][15] - Full year GMV reached $2.13 billion, a 16% increase compared to the previous year, with revenue of $693 million, up 15% [18][19] - Adjusted EBITDA for the full year was $42 million, or 6.1% of total revenue, reflecting a 450 basis points increase year-over-year [19][20] Business Line Data and Key Metrics Changes - Q4 total revenue was $194 million, an 18% increase, with consignment revenue up 16% and direct revenue up 39% year-over-year [15][16] - Active buyer growth accelerated to 9% on a trailing 12-month basis, with orders up 10% and average order value increasing by 11% [16] Market Data and Key Metrics Changes - The company noted that 47% of consumers consider resale value when making purchases in the primary market, indicating a shift in consumer behavior towards luxury resale [6] - The company is capitalizing on trends in high-value categories like fine jewelry and watches, which have shown strong growth [16][61] Company Strategy and Development Direction - The company is focused on three strategic pillars: growth playbook, operational excellence, and obsessing over service [8] - The growth playbook aims to unlock supply by meeting customers where they are, while operational excellence focuses on profitability through technology and automation [10][11] - The company is evolving its My Closet feature to provide customers with tools to track and capitalize on the value of their closet [12][73] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory, projecting full year GMV growth of 12%-15% and revenue growth of 10%-13% for 2026 [20][21] - The company anticipates continued margin expansion, with Adjusted EBITDA expected to be in the range of $57 million-$65 million for 2026 [20][21] Other Important Information - The company ended Q4 with $166 million in cash equivalents and restricted cash, with free cash flow of $43 million, up $23 million year-over-year [18][19] - The company has reduced total indebtedness by over $80 million over the past two years, strengthening its balance sheet [19] Q&A Session Summary Question: Can you provide an update on Athena and its impact on operational efficiency? - Management confirmed that 35% of units are processed through Athena, which has driven operating leverage and will be extended to mid-value items in 2026 [27][28] Question: What gives confidence in the Q1 guidance of 19%-22% GMV growth? - Management noted resilience in buyer and seller engagement, with improvements in sales team efficiency and marketing strategies contributing to growth [35][36] Question: How is the testing of dropshipping progressing? - Management indicated that dropshipping is expanding into new categories and international markets, though it is not the main driver of growth [44] Question: What initiatives are in place to drive incremental supply? - Management highlighted several initiatives, including Smart Sales, referrals, and affiliate programs, which are expected to scale up [46] Question: What is the outlook for Athena's contribution in 2026? - Management expects Athena's processing percentage to continue increasing, leveraging AI and data to enhance efficiency [53][54] Question: How is the company managing operating expenses to achieve margin expansion? - Management emphasized the importance of operational efficiencies and fixed cost leverage as key drivers for margin expansion [82][83]

Core Insights - The company is focusing on enhancing emotional connections with Gen Z and millennial consumers through integrated marketing strategies and trend-right products, resulting in a 10% year-over-year increase in online searches for the Steve Madden brand in Q4 [1][2] - After experiencing revenue declines in Q2 and Q3, the Steve Madden brand returned to growth in Q4, with expectations for mid- to high-single-digit revenue growth in 2026 [1][2] Financial Performance - For Q4 2025, consolidated revenue reached $753.7 million, a 29.4% increase compared to 2024, although revenue excluding the newly acquired Kurt Geiger decreased by 1.4% [10] - The company reported a total revenue of $2.5 billion for 2025, an 11% increase from $2.3 billion in 2024, but a 6.6% decline when excluding Kurt Geiger [15] - Net income for Q4 was $34.3 million, or $0.48 per diluted share, down from $39.3 million, or $0.55 per diluted share in 2024 [14] Brand Performance - The acquisition of Kurt Geiger, which closed on May 6, 2025, is expected to be a significant growth driver, with pro forma revenue growth of 11% anticipated for 2026 [4][5] - The Dolce Vita brand has shown strong growth, with expectations for high single-digit revenue growth in 2026, building on its success in the U.S. footwear market and expanding into international markets and adjacent categories [6] Market Challenges - The company anticipates significant pressure in its private label segment, which saw a 15% revenue decline in 2025, with expectations for a nearly 20% decline in 2026 due to tariff impacts [7] - Operating expenses are expected to rise due to the normalization of incentive compensation and restoration of senior executive salaries, alongside ongoing tariff-related pressures [8] Strategic Outlook - The company expects revenue growth of 9% to 11% for the full year 2026, with Q1 2026 revenue projected to increase by 15% to 17% [18] - The branded wholesale footwear and accessories segments are expected to show mid- to high-single-digit growth, while private label is projected to decline significantly [70][71]

Group 1 - Steven Madden has withheld its 2026 earnings forecast due to recent tariff uncertainty following a Supreme Court ruling that struck down President Trump's tariffs [1][2] - The U.S. has implemented a temporary new 10% global import tariff, with plans to increase it to 15%, impacting consumer companies significantly [2] - Analysts from Telsey Advisory Group noted the limited visibility in the U.S. tariff environment, which has led to a forecasted revenue increase of only 9% to 11% for Steven Madden, compared to an 11% rise in 2025 [3] Group 2 - Steven Madden has shifted a significant portion of its production out of China due to high tariffs, currently sourcing about 40% of its products from China, up from 30% in fall 2025 [4] - The company is diversifying its production to other regions, including Cambodia, Vietnam, Mexico, and Brazil, to mitigate tariff impacts [5] - In the fourth quarter, Steven Madden reported revenue of $753.7 million, slightly below estimates of $753.9 million [5]

Core Insights - The mid-market fashion sector has become the primary driver of sector value, surpassing the luxury category [1] - Brands have implemented significant price increases and restructured promotional activities in response to macroeconomic factors such as inflation and international tariffs [1] Price Increases - Mid-market fashion brands increased prices by 50% in Europe and even "doubling them" in the US relative to 2024 [2] - Denim prices rose by 9% in Europe and 20% in the US, indicating resilience in its timeless appeal [2] - Winter footwear prices increased by 9% in Europe and 19% in the US, driven by growth in the mass market segment [3] - Coats and jackets saw price increases of 11% in Europe and 13% in the US [3] - Handbags recorded the largest increases, rising by 33% in Europe and 38% in the US, influenced by luxury fashion trends [3] - Accessories and lucky charms rose by 15% in Europe and 16% in the US [4] Promotional Strategies - Brands are offering lower average discounts while extending the duration of promotions [4] - In Europe, the average discount rate and the proportion of discounted products declined between September and December 2025 compared to previous years [4] Economic Pressures - UK consumer price inflation reached 3.4% in December 2025, contributing to cautious spending patterns [5] - US tariffs between 15% and 50% have raised import costs for brands, prompting selective price hikes that could constrain demand [5] Market Dynamics - The current environment is described as a "K-economy," where high-income consumers maintain or increase spending while others reduce it [6] - Brands are tailoring pricing and promotions more precisely to different consumer segments [6] - Brand strategies reflect market challenges, with streamlined product ranges and curated collections [7] - Discounting strategies are shifting, with decreasing discount rates and longer promotional periods to preserve pricing power [7]