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Ross Stores, Inc. (NASDAQ:ROST) is included among the 12 Best Retail Dividend Stocks to Buy Now. Ross Stores’ (ROST) Dividend Growth: A Key Highlight in Retail Dividend Stocks Ross Stores, Inc. (NASDAQ:ROST) operates a large off-price retail network across the US, offering clothing, home goods, shoes, and accessories at lower prices than traditional department and specialty stores. Its two main chains, Ross Dress for Less and dd’s DISCOUNTS, appeal to budget-conscious shoppers seeking brand-name products ...

The discount shoe company Shoe Carnival (NASDAQ: SCVL ) might look like a value trap at first glance. Its flagship Shoe Carnival brand provides an entertaining shoe shopping experience for low-income customers. And because of economic weakness, it appears that many of its customersI am a freelance business writer. I formerly wrote articles for the Motley Fool Blogging Network, where I won several editor's choice awards. After that, I wrote articles for the main Motley Fool site. I typically focus on restaur ...

Company History and Development - The company started in 1987 under the name Rundi Enterprise, later known as Lur [4] - In the early 1990s, the company participated in shoe exhibitions in Germany but initially received no orders for three consecutive years [4][5][6] - The company achieved a breakthrough by securing two international orders from Japan and Lebanon at a GDS exhibition [6] - By 1997, after 10 years of OEM business, selling to 40 countries, the company launched its own brand, Lur [7] Sustainable Fashion Initiatives - The company is exploring the use of oil palm waste to create wood for high heel shoes [12][13] - The company is also utilizing pineapple leather (Piñatex) for sustainable shoe production [14][15] - KL Green Fashion was formed to promote sustainability and green fashion, using materials like pineapple leather, apple leather, oyster shells, and recycled PET bottles [17][18][19] - The fashion industry faces challenges with 92 million tons of textile waste being burned or dumped annually, with only 1% being recycled [16] Collaborations and Recognition - The company collaborated with Jimmy Choo, which provided significant learning opportunities and exposure [6][7][8] - The company designed shoes for Kate Middleton as a national present from the Queen in 2014 [9] - The company has designed for Malaysian queens and collaborated with top designers at London Fashion Week from 2010 to 2012 [10] - In 2017, the company designed a pair of shoes valued at 5 million MYR, recognized by the Malaysia Book of Records [11]

Nike (NKE) closed at $73.00 in the latest trading session, marking a -1.79% move from the prior day. The stock trailed the S&P 500, which registered a daily loss of 0.05%. Elsewhere, the Dow lost 0.59%, while the tech-heavy Nasdaq added 0.45%. Shares of the athletic apparel maker witnessed a loss of 2.7% over the previous month, trailing the performance of the Consumer Discretionary sector with its gain of 5.91%, and the S&P 500's gain of 3.44%.The investment community will be paying close attention to the ...

Group 1: IPO Insights - A significant IPO is taking place with a market value estimated at $15 billion at opening [1] - The underwriters aimed for a lower initial pricing to create a larger pop, contrasting with the company's desire for a higher valuation [2] Group 2: Nike's Market Position - There is a positive shift in sentiment towards Nike, with suggestions that it is time to buy the stock due to improved inventory levels [3] - The partnership with Foot Locker is viewed favorably, indicating potential for growth [3] - Elliot Hill's return to Nike is seen as a revitalizing force, bringing back the brand's traditional values and emotional connection [4][5]

Financial Data and Key Metrics Changes - Macy's reported strong second quarter results, exceeding guidance for sales, margin, revenue, EBITDA, and EPS, marking the best quarter in 12 quarters for the company [8][19] - The company achieved a 1.4% comp performance in the reimagined 125 stores, while overall comp growth was only 0.1% [19][20] - SG&A expenses were reduced by approximately $30 million year-over-year, contributing to improved profitability [20] Business Line Data and Key Metrics Changes - The Macy's brand saw growth in both digital and physical sales, with a notable increase in the R125 stores [8][10] - Bloomingdale's experienced its fourth consecutive quarter of growth, with a comp increase of over 5.7% [8] - Bluemercury achieved its 18th consecutive quarter of growth, indicating strong performance across all business lines [8] Market Data and Key Metrics Changes - The company closed 64 underproductive stores last year, generating nearly $300 million in cash proceeds from asset sales [22] - The recapture rate of customers from closed stores was better than expected, contributing positively to overall sales [22] Company Strategy and Development Direction - The "Bold New Chapter" strategy aims to improve the quality of the enterprise over three years, focusing on reimagining the Macy's nameplate and enhancing customer experience [10][11] - The strategy includes closing underperforming stores, increasing staffing in key areas, and leveraging AI for operational efficiency [13][19] - The company is committed to being a multi-category, multi-brand, and multi-price point retailer to adapt to changing consumer preferences [15] Management's Comments on Operating Environment and Future Outlook - Management acknowledged uncertainty in the macro environment but expressed confidence in the execution of their strategy [14] - The company expects a more choiceful consumer in the upcoming seasons, embedding prudency in their guidance for the fall [36] - Management believes that the current environment will likely lead to market share consolidation, with Macy's positioned as a healthier retailer [40] Other Important Information - The company is focusing on enhancing its private brand portfolio, with new brands introduced and existing ones refreshed [57][58] - Macy's is actively managing inventory levels, with a 1% decrease in inventory in Q2, positioning itself well for future sales [54] Q&A Session Summary Question: Can you discuss the impact of the Bold New Chapter strategy? - The strategy has led to positive comp growth and improved customer experience, with a focus on staffing and store presentation [10][11] Question: What are the expectations for the environment into the back half of 2025? - Management expects a more choiceful consumer and has embedded a prudent guide for the fall season [36] Question: How do you expect tariffs to impact profitability? - Tariffs are expected to have a 40 to 60 basis point impact on gross margin, with ongoing efforts to mitigate these costs [43][44] Question: What trends are seen in the off-price business? - The off-price business remains healthy, with no signs of trade down among consumers [31] Question: How is the company managing inventory? - Inventory was down 1% in Q2, with a focus on maintaining a clean composition and responding to consumer demand [54] Question: What are the plans for pricing in the remainder of the year? - Pricing will be managed judiciously, with a focus on serving the customer while considering cost pressures [48][60]

Core Insights - The back-to-school and college shopping season in the U.S. is experiencing a significant increase in early shopping, with 67% of shoppers starting their purchases by early July, up from 55% last year, marking the highest level since 2018 [1][2] Spending Trends - K-12 shoppers have an average budget of $295.81 for electronics, totaling $13.5 billion, $249.36 for clothing and accessories ($11.4 billion), $143.77 for school supplies ($6.6 billion), and $169.13 for shoes ($7.8 billion [3] - College students and parents are expected to spend an average of $309.50 on electronics ($20.7 billion), $191.39 on dorm furnishings ($12.28 billion), $166.07 on clothing and accessories ($11.1 billion), $140.24 on food ($9.4 billion), and $117.95 on shoes ($7.9 billion) [4] Company Insights - Costco Wholesale (COST) operates membership warehouses selling food and general merchandise at discounted prices, holding a Zacks Rank of 3 (Hold) and a VGM Score of B [5] - Lowe's Companies (LOW) is a leading home improvement retailer with a Zacks Rank of 3 and an upbeat VGM Score of A, offering essentials for back-to-campus needs [6] - Ambarella (AMBA) develops semiconductors for video compression and image processing, holding a Zacks Rank of 3 [7] - Amazon.com (AMZN) is a major e-commerce provider with a Zacks Rank of 3 [8] ETF Insights - ProShares Online Retail ETF (ONLN) tracks online retailers and charges 58 bps in fees with a yield of 0.65% annually [9] - VanEck Retail ETF (RTH) tracks the performance of various retail companies and charges 35 bps in fees with a yield of 0.70% annually [10][11] - Invesco Food & Beverage ETF (PBJ) focuses on U.S. food and beverage companies, charging 62 bps in fees with a yield of 1.68% annually [12] - VanEck Semiconductor ETF (SMH) tracks semiconductor companies and charges 35 bps in fees with a yield of 0.37% annually [13]

Financial Data and Key Metrics Changes - Total sales grew by 10% in Q2, following a 13% growth last year, indicating strong market share gains [10] - Comparable store sales increased by 5%, consistent with the previous year's growth [10] - Operating margin expanded by 120 basis points year-over-year, driven by stronger merchandise margins and expense efficiencies [11][27] - Earnings per share (EPS) reached $1.72, exceeding guidance by $0.42 and representing a 39% increase compared to the prior year [11][27] Business Line Data and Key Metrics Changes - The company reported strong performance across various categories, with beauty, accessories, and shoes showing the strongest growth, while home performance was softer [111] - The company opened 23 net new stores, bringing the total store count to 1,138 [30] Market Data and Key Metrics Changes - Traffic remained flat in Q2, with comp sales driven by higher transaction sizes and an increase in average unit retail [25] - Reserve inventory constituted 50% of total inventory, up from 41% last year, reflecting proactive purchasing strategies to mitigate tariff impacts [28] Company Strategy and Development Direction - The company is focused on "Burlington 2.0" initiatives, which include improvements in merchandising and store experiences, aimed at enhancing customer engagement and operational efficiency [15][19] - The company plans to continue opening 100 net new stores in fiscal 2025, indicating a commitment to expansion [30] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns about external risks in the second half of the year, including weather variations and macroeconomic factors such as inflation and unemployment [12][42] - Despite strong Q2 performance, management is maintaining a cautious approach and is prepared to adapt to changing market conditions [34][44] Other Important Information - The company raised $500 million in additional term loan debt to fund a new distribution center and enhance liquidity [29][84] - The company has a total liquidity of approximately $1.7 billion, consisting of cash and availability on its asset-based lending facility [30] Q&A Session Summary Question: How to interpret the back half guidance after a strong Q2 comp? - Management indicated that the conservative guidance is part of their standard playbook, allowing flexibility to chase stronger trends if they arise [39][40] Question: Can you elaborate on the impact of tariffs on guidance? - Management acknowledged incremental tariff risks but emphasized their ability to offset most of the pressure through various strategies [45][46] Question: What trends are observed among different demographic groups? - Comp performance was broad-based, with lower-income customers performing above the chain average, while Hispanic customer trends were slightly above average excluding Puerto Rico [62][66] Question: How is merchandise availability and tariff-related cost pressure being managed? - Overall merchandise availability is strong, with proactive purchasing strategies in place to mitigate tariff impacts [68][70] Question: Can you provide insights on inventory levels and composition? - Comparable store inventory was down 8%, while reserve inventory increased significantly due to strategic purchasing ahead of tariffs [77][80] Question: What improvements have been made in store standards? - Significant improvements in store standards and customer service scores have been achieved through enhanced leadership and accountability [91][93] Question: How is the back-to-school business performing? - Early back-to-school sales were strong, with a deliberate strategy to capture market share among value-conscious families [105][107]

Financial Data and Key Metrics Changes - In Q2 2025, net revenue was approximately $81.5 million, a decrease of 11% year over year, driven by a 16% decrease in total orders placed, partially offset by a 1% increase in average order value [26] - Adjusted EBITDA for Q2 was approximately $500,000 compared to a loss of $200,000 in Q2 2024, with an adjusted EBITDA margin of 0.6% versus negative 0.2% in the prior year period [27] - The net loss for Q2 improved to $3 million from $10.8 million in the same period last year [27] - Free cash flow during Q2 was negative $1.9 million, reflecting a $4.9 million decrease year over year [28] - Net debt was $4.2 million at the end of Q2, a reduction from $8.6 million at the end of Q4 2024 [28] Business Line Data and Key Metrics Changes - Special occasion and bridesmaids categories were key growth drivers, while casualwear and footwear businesses continued to show softness [6][8] - Product margins improved for the third consecutive quarter, increasing by roughly 170 basis points compared to the prior year period [11] - Gross margin for the quarter was 45.3%, down 20 basis points year over year, but expanded sequentially from 40.3% in Q1 2025 [26] Market Data and Key Metrics Changes - Active customers were lower year over year, but the Love Rewards loyalty program membership saw double-digit growth, driving an overall increase in total membership [19] - Improved average order values in Q2 contributed to continued comp improvements through May [19] Company Strategy and Development Direction - The company is focused on executing strategic priorities to drive cost efficiency, optimize for long-term growth, and expand customer reach [9] - Ongoing refinements to the reorder funnel and merchandising strategy are aimed at aligning offerings with core brand identity and occasion wear [13] - The company is actively negotiating a new asset-based revolving credit facility to strengthen liquidity [29] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about growth potential in wholesale and expects strong growth in this business throughout 2025 and beyond [12] - The company remains committed to maintaining positive year-to-date cash flow and investing in long-term objectives despite macroeconomic challenges [17] - Management highlighted the positive outcomes of cost management and overall business strategy amid a dynamic macroeconomic environment [31] Other Important Information - The company implemented targeted cost savings initiatives, resulting in a 15% year-over-year decline in operating expenses [14] - The transition of the CFO role is ongoing, with the current CEO serving as interim CFO while a search for a new finance leader is conducted [17] Q&A Session Summary Question: What are the expectations for the third quarter? - The company expects to generate positive adjusted EBITDA in Q3 and is confident in strengthening its liquidity position while focusing on business success [29] Question: How is the company addressing challenges in the casualwear and footwear segments? - The company is refining its merchandising strategy and has seen early signs of improvement in these categories [13] Question: What is the status of the company's credit facility negotiations? - The company is actively negotiating a new asset-based revolving credit facility and will provide updates as appropriate [9]