Group 1 - Ralph Lauren outlined new three-year targets for mid-single-digit sales growth and 100–150 basis points of operating margin expansion, with a 16% margin outlook not seen as a ceiling [1] - Growth is expected to be driven by strong performance in Asia and Europe, along with gains in women's apparel, handbags, and an expanded store footprint in APAC and EMEA [1] - Bank of America Securities noted that the updated plan reflects the company's previous successful strategy and highlights potential for gross margin improvement [2] Group 2 - Key drivers for growth include continued pricing power through higher average unit retail (AUR), easing input costs like cotton, and productivity gains in supply chain and inventory management [3] - A new $400 million cost savings program has been initiated, split between gross margin and SG&A, following a similar initiative from fiscal 2022 to 2025 [4] - Ralph Lauren's second-half guidance may be conservative, with stable consumer demand trends and opportunities in the women's category, particularly in handbags [5] Group 3 - In the first quarter of fiscal 2026, Ralph Lauren reported a 14% increase in revenue to $1.72 billion, exceeding the consensus estimate of $1.64 billion, and adjusted EPS of $3.77, surpassing forecasts of $3.43 [6] - For fiscal 2026, the company projects low- to mid-single-digit revenue growth at constant currency [6] - Analyst Christopher Nardone identified upside risks from faster sales recovery and cost savings, while downside risks include weakness in wholesale and global macro headwinds [7]

Core Insights - Torrid Holdings reported quarterly earnings of $0.02 per share, missing the Zacks Consensus Estimate of $0.04 per share, and down from $0.08 per share a year ago, representing an earnings surprise of -50.00% [1] - The company posted revenues of $262.81 million for the quarter ended July 2025, surpassing the Zacks Consensus Estimate by 1.24%, but down from $284.64 million year-over-year [2] - Torrid Holdings shares have declined approximately 54.9% year-to-date, contrasting with the S&P 500's gain of 9.6% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.03 on revenues of $255.37 million, and for the current fiscal year, it is $0.14 on revenues of $1.04 billion [7] - The estimate revisions trend for Torrid Holdings was favorable prior to the earnings release, resulting in a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The Retail - Apparel and Shoes industry, to which Torrid Holdings belongs, is currently ranked in the bottom 39% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Another company in the same industry, Stitch Fix, is expected to report a quarterly loss of $0.13 per share, reflecting a year-over-year change of -8.3%, with revenues projected at $301.33 million, down 5.7% from the previous year [9]

Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings and revenues for Torrid Holdings in the upcoming earnings report, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - Torrid Holdings is expected to report quarterly earnings of $0.04 per share, reflecting a 50% decrease year-over-year, with revenues projected at $259.59 million, down 8.8% from the previous year [3]. - The consensus EPS estimate has been revised 20% higher in the last 30 days, indicating a reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP for Torrid Holdings is +71.43%, suggesting a strong likelihood of beating the consensus EPS estimate, supported by a Zacks Rank of 2 (Buy) [12]. - Historical performance shows that Torrid Holdings has beaten consensus EPS estimates three out of the last four quarters, with a recent surprise of +20% [13][14]. Industry Context - In the broader retail apparel and shoes industry, American Eagle Outfitters is also expected to report a decline in earnings, with a consensus EPS estimate of $0.20 per share, down 48.7% year-over-year, and revenues expected at $1.23 billion, down 4.5% [18][19].

Core Viewpoint - Torrid Holdings reported quarterly earnings of $0.06 per share, exceeding the Zacks Consensus Estimate of $0.05 per share, but down from $0.12 per share a year ago, indicating a 20% earnings surprise [1][2] Financial Performance - The company posted revenues of $265.97 million for the quarter ended April 2025, missing the Zacks Consensus Estimate by 1.36% and down from $279.77 million year-over-year [2] - Over the last four quarters, Torrid Holdings has surpassed consensus EPS estimates three times and topped consensus revenue estimates two times [2] Stock Performance - Torrid Holdings shares have declined approximately 2.7% since the beginning of the year, while the S&P 500 has gained 1.5% [3] - The current consensus EPS estimate for the upcoming quarter is $0.08 on revenues of $279.17 million, and for the current fiscal year, it is $0.15 on revenues of $1.09 billion [7] Industry Outlook - The Retail - Apparel and Shoes industry, to which Torrid Holdings belongs, is currently ranked in the bottom 42% of over 250 Zacks industries, which may impact stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that investors should monitor these revisions closely [5][6]