Ralph Lauren Corporation (RL), headquartered in New York, designs, markets and distributes luxury lifestyle products. With a market cap of $20.1 billion, the company markets and distributes a wide range of men's, women's, and children's clothing, footwear, accessories, home furnishings, fragrances, and more. Shares of this leading luxury lifestyle company have notably outperformed the broader market over the past year. RL has gained 61.7% over this time frame, while the broader S&P 500 Index ($SPX) has ra ...

Financial Data and Key Metrics Changes - The company reported a 4% year-over-year increase in net sales, reaching $296 million, with Adjusted EBITDA rising 45% to $25 million, marking the highest ever for a third quarter [6][30] - Consolidated gross margin improved to 54.6%, an increase of 347 basis points year-over-year, significantly exceeding guidance [9][31] - Free cash flow more than tripled year-over-year, increasing by $43 million, or 265%, for the nine months ended September 30 [10][34] Business Line Data and Key Metrics Changes - Revolve segment net sales increased by 5%, while Forward segment net sales grew by 3% year-over-year [8][30] - Sales of beauty, men's, and home products saw a healthy double-digit percentage increase year-over-year [12] - The owned brand penetration of Revolve segment net sales increased year-over-year for the third consecutive quarter, contributing to higher gross margins [23][70] Market Data and Key Metrics Changes - Domestic net sales increased by 4%, while international net sales rose by 6% year-over-year [30] - The Middle East and Europe showed strong performance, with Mainland China net sales increasing over 50% year-over-year [12] - Active customers increased by 5% year-over-year, with total orders placed reaching 2.3 million, also a 5% increase [30] Company Strategy and Development Direction - The company is focusing on brand investments, expanding owned brands, and physical retail development as key growth drivers [18][26] - The competitive environment in luxury retail is viewed as an opportunity, with the company planning to capture market share amid challenges faced by competitors [20][21] - The company is leveraging AI technology to enhance operational efficiency and drive growth across various functions [14][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating macroeconomic uncertainties, supported by a strong financial foundation and operational excellence [16][40] - The outlook for gross margin in Q4 2025 is expected to be between 53.1% and 53.6%, indicating a year-over-year increase [37] - Management remains optimistic about the potential for international growth and the impact of new owned brand launches [12][70] Other Important Information - The company has no debt and reported cash and cash equivalents of $315 million, a 25% year-over-year increase [34] - The tariff landscape remains fluid, but the company has made significant progress in mitigating tariff exposure [35][80] Q&A Session Summary Question: Can you size the benefit from the improved markdown algorithm? - Management noted that the markdown margin optimization was the largest driver of gross margin improvement, with positive impacts from promotional strategy shifts and an increase in full-price sales [42][43] Question: What are the trends in October compared to Q3? - October showed mid-single-digit growth, which is encouraging given tougher comparisons, and management is optimistic about the holiday season [46][47] Question: What is the outlook for average order value (AOV)? - AOV is expected to continue increasing slightly due to price increases, with a mix shift impacting overall results [50][51] Question: How is the company addressing higher return rates? - Higher return rates were attributed to mix shifts and higher average unit retail prices, with ongoing efforts to improve return rates in the future [73][74] Question: What is the contribution margin from international sales compared to the U.S.? - The contribution margin gap is closing, with ongoing optimization efforts in last-mile shipping and localized customer experiences [67] Question: What is the expected impact of tariffs going forward? - Management does not anticipate incremental headwinds from tariffs, with potential net benefits from mitigation efforts [79][80]

Financial Data and Key Metrics Changes - Macy's Inc. achieved comparable sales growth of 1.9%, with adjusted EPS of $0.41, exceeding guidance of $0.15 to $0.20 [5][6][23] - Net sales were $4.8 billion, down 2.5% year-over-year, primarily due to the closure of 64 non-GoForward stores [18][19] - Gross margin was 39.7% of net sales, slightly better than expectations, impacted by proactive markdowns and tariffs [21][22] Business Line Data and Key Metrics Changes - Macy's comparable sales grew by 1.2%, driven by GoForward Macy's which rose 1.5% [6][19] - Bloomingdale's achieved a 5.7% increase in comparable sales, marking its fourth consecutive quarter of growth [11][12] - Bluemercury reported a 1.2% increase in comparable sales, its 18th consecutive quarter of gains [13] Market Data and Key Metrics Changes - The luxury segment, particularly Bloomingdale's, is gaining market share, with strong performances in ready-to-wear, fine jewelry, and fragrances [12][81] - The overall consumer remains resilient, with a notable portion of Macy's customer base earning over $100,000 household income [47] Company Strategy and Development Direction - The "Bold New Chapter" strategy focuses on enhancing customer experience, improving product offerings, and leveraging a multi-brand, multi-channel approach [5][14] - The company is committed to closing underperforming locations while investing in growth areas, particularly in the GoForward business and digital initiatives [11][15] - Future growth will be supported by expanding private brands and enhancing partnerships with existing brands [52][56] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the consumer's resilience but acknowledged the uncertainty surrounding tariffs and their impact on demand [14][46] - The company plans to reinvest savings from closed stores into initiatives that support long-term growth aspirations [25][29] - Management remains focused on maintaining a healthy balance sheet and improving operational efficiencies [24][29] Other Important Information - The company recognized $16 million in asset sale gains during the quarter [22] - Year-to-date operating cash flow was $255 million, significantly improved from $137 million last year [23] Q&A Session Summary Question: Drivers of sequential improvement in same-store sales - Management noted strong growth across various categories, with July being the strongest month, driven by back-to-school shopping [33][34] Question: Learnings from Reimagined 125 stores and expansion plans - Positive performance was noted in both the first and next 75 Reimagined stores, with local empowerment being a key factor [39][40] Question: Consumer sentiment and pricing strategies amid tariffs - Management indicated a cautious approach to pricing, with surgical price increases based on category and brand performance [41][42] Question: SG&A savings and growth opportunities - SG&A was down nearly $30 million, with continued focus on cost management while reinvesting in growth initiatives [60][61] Question: Bloomingdale's performance amid luxury market pressures - Bloomingdale's has maintained growth and market share, with strong leadership and strategic brand partnerships [81][82] Question: Tariff impacts and mitigation strategies - Tariffs had a notable impact in Q2, with management focused on mitigating future impacts through negotiations and strategic sourcing [83][84] Question: Investments in service and SG&A leverage - Management emphasized the importance of balancing investments in customer-facing initiatives with maintaining operational efficiency [95][96]

Core Viewpoint - Analysts forecast a quarterly loss of $0.22 per share for Kohl's, indicating an 8.3% year-over-year increase in losses, with revenues expected to be $3.2 billion, a decline of 5.2% compared to the previous year [1] Earnings Estimates - The consensus EPS estimate has been revised upward by 9.1% over the past 30 days, reflecting analysts' reappraisal of their initial projections [2] - Changes in earnings estimates are crucial for predicting investor reactions, with empirical studies showing a strong correlation between earnings estimate revisions and short-term stock price performance [3] Revenue Projections - Analysts predict 'Other revenue' at $179.90 million, down 11.8% from the prior year [5] - 'Net Sales' are expected to reach $2.99 billion, reflecting a year-over-year decline of 6% [5] - 'Revenue Recognition- Accessories' is forecasted at $635.98 million, showing a 2.9% increase from the previous year [5] - 'Revenue Recognition- Children's' is projected at $319.26 million, down 7.2% year-over-year [6] - 'Revenue Recognition- Footwear' is expected to be $246.51 million, a decline of 18.1% from the prior year [6] - 'Revenue Recognition- Men's' is forecasted at $592.47 million, indicating a slight decrease of 1.3% [6] - 'Revenue Recognition- Women's' is expected to be $858.60 million, down 7% from the previous year [7] - 'Revenue Recognition- Home' is projected at $387.74 million, reflecting a decrease of 1.1% [7] Store Metrics - Analysts predict the total number of stores will reach 1,152, an increase from 1,100 in the previous year [7] Stock Performance - Kohl's shares have increased by 15.4% over the past month, outperforming the Zacks S&P 500 composite, which rose by 10.7% [8] - With a Zacks Rank of 3 (Hold), Kohl's is expected to mirror overall market performance in the near future [8]