Company Overview - Gildan Activewear Inc. is a leading manufacturer of everyday basic apparel, offering products such as activewear, underwear, socks, and intimates to a diverse customer base including wholesale distributors, screenprinters, retailers, and global lifestyle brand companies [4] - The company markets its products across North America, Europe, Asia Pacific, and Latin America under a diversified portfolio of brands including Gildan, Hanes, Comfort Colors, and Champion, among others [4] Manufacturing and ESG Practices - Gildan operates vertically integrated, large-scale manufacturing facilities primarily located in Central America, the Caribbean, North America, and Asia [5] - The company is committed to industry-leading labor, environmental, and governance practices throughout its supply chain, in line with its comprehensive ESG program embedded in its long-term business strategy [5] Upcoming Financial Results - Gildan will report its 2025 fourth quarter and full year results on February 26, 2026, with a press release issued before market opening [1] - A conference call to discuss the results will take place on the same day at 8:30 AM ET, featuring key executives including the President and CEO, Chief Commercial Officer, and Chief Financial Officer [2]

Core Insights - J.C. Penney experienced declines in both net sales and net income in Q3, but noted progress in customer engagement and marketing efforts [3][4][7] - The retailer's marketing initiatives led to a 1% increase in trip frequency, marking the 18th consecutive month of improvement in this metric [4] - Celebrity partnerships, including those with Shaquille O'Neal and Ashley Graham, are expected to continue as part of the brand's strategy [3] Financial Performance - Total Q3 net sales decreased by 3.8% year over year to $1.36 billion, while total revenues fell 5.4% to just over $1.4 billion [7] - The net loss for Q3 widened by 488% to $100 million, although consolidated adjusted EBITDA for the first nine months of the fiscal year rose significantly to $172 million from $66 million in 2024 [7] - Gross margin contracted from 38.7% to 38%, with improvements noted in beauty, home, and children's categories [7] Market Position and Strategy - J.C. Penney gained 20% more loyalty customers and outperformed rivals in store traffic by approximately 180 basis points in Q3 [4] - The company aims to be a key shopping destination for diverse working families, despite challenges faced by its target demographic [5] - Analysts suggest that while a 3.8% sales decline positions J.C. Penney lower in the department store sector, the trend indicates potential stabilization in sales [6]

Core Viewpoint - Citi Trends is positioned as the only off-price retailer specifically targeting African-American customers, offering styles and brands at competitive prices for an underserved demographic [1][7]. Company Overview - Citi Trends is an off-price retailer specializing in family apparel, accessories, and home categories, headquartered in Savannah, Georgia, with 591 stores across 33 states [2][22]. - The average store size is approximately 12,000 square feet, with a strong presence in the Southeast [2]. Sales Performance - The company has shown consistent quarter-over-quarter sales performance over the past five quarters, with holiday comparable store sales increasing by 9.3%, building on a 7.1% increase from the previous year, resulting in a two-year stack of 16.4% [3][4]. - Citi Trends has achieved "industry-leading comparable sales growth" since the current CEO took over 19 months ago, driven by transaction increases and broad-based product strength [4][7]. Financial Position and Growth Strategy - Citi Trends operates with a debt-free balance sheet and has approximately $140 million in total liquidity, planning $45 million in capital spending for remodels and new stores in 2026-27 [6][16]. - The company targets approximately $45 million in EBITDA by 2027, with projected sales of about $900 million and around 650 stores by the end of 2027 [6][24]. - Management aims for annual store sales gains of 6-8% and category expansion, including footwear and plus sizes [19]. Customer Demographics - The core customer base has an average age of around 40, with over one-third shopping weekly or biweekly, and household incomes ranging from $75,000 to $150,000 [8]. - The company employs a three-tier product strategy to cater to different income levels, aiming to grow the extreme value segment to represent an additional 10% of total sales [7][10]. Marketing and Community Engagement - During the holiday season, Citi Trends launched a marketing campaign that garnered over 12 million viral views, emphasizing community connection and trust [11]. - The company positions its stores as "community anchors," enhancing local engagement and customer loyalty [11]. Store Expansion and Technology - Citi Trends plans to open 25 new stores in 2026 and at least 40 stores annually starting in 2027, utilizing AI-driven site selection to replicate successful store profiles [13][15]. - The company has refreshed 62 high-volume stores and expects to remodel about 50 stores per year as part of ongoing market investment [12]. Long-term Financial Goals - The company aims for a gross profit rate expansion of about 400 basis points to 42% and SG&A leverage improvement of 200 basis points by fiscal 2027 [24]. - Long-term financial goals include restoring foundational practices and optimizing inventory management through AI-based systems [18].

Core Insights - Stitch Fix, Inc. (SFIX) reported a strong start to fiscal 2026, with Revenue per Active Client (RPAC) reaching $559, a 5.3% year-over-year increase, marking the seventh consecutive quarter of growth [1][8] - Average Order Value (AOV) rose nearly 10% this quarter, indicating the ninth consecutive period of year-over-year growth, attributed to a reimagined client experience [1][8] - The company closed the fiscal first quarter with 2.3 million active clients, reaching the high end of expectations, while management emphasized a disciplined approach to rebuilding the active client base [3][8] Financial Performance - The improvement in RPAC reflects increased spending per active client, supporting Stitch Fix's ability to capture a greater share of wallet from its existing client base [2] - The Zacks Consensus Estimate indicates year-over-year earnings growth of 9.1% for the current year and 56.7% for the next year [12] Competitive Landscape - Designer Brands, Inc. (DBI) reported a 3.2% decline in net sales but improved profitability with gross profit increasing to $339.6 million [5] - GAP, Inc. (GAP) posted net sales of $3.9 billion, a 3% year-over-year increase, but faced pressure on profitability with a gross margin decline to 42.4% [6] Market Position - Stitch Fix's shares have gained 28.3% in the past six months, outperforming the industry's rise of 12%, and currently holds a Zacks Rank 2 (Buy) [7] - From a valuation perspective, SFIX trades at a forward price-to-sales ratio of 0.5, significantly lower than the industry's average of 1.98 [10]

Core Insights - Lululemon's CEO succession plans are under scrutiny, with founder Chip Wilson highlighting the presence of several qualified candidates for the role [3] - Elliott Investment Management has acquired a stake exceeding $1 billion in Lululemon and is advocating for Jane Nielsen, a former executive at Ralph Lauren, to become the new CEO [4][7] - Analysts, including those from Needham, view Nielsen as a strong candidate due to her successful track record in revitalizing brands, although they note that Lululemon's challenges differ from those faced by Ralph Lauren and Coach [5][6] Company Developments - CEO Calvin McDonald is set to step down, prompting the search for a new leader who can drive growth and transformation [7] - CFO Meghan Frank will co-lead the company in the interim, emphasizing the need for experience in growth and transformation for the next CEO [7] Market Reactions - Elliott's push for Nielsen is based on her strategic experience and past successes in improving share price, gross margin, and earnings per share at Ralph Lauren [4] - Analysts recognize Nielsen's turnaround capabilities but caution that Lululemon's issues stem from product missteps and increased competition, rather than the distribution challenges faced by her previous companies [5][6]

Industry Overview - The Zacks Shoes and Retail Apparel industry is facing persistent pressures from higher input and freight costs, supply-chain inefficiencies, and elevated selling, general and administrative (SG&A) expenses related to digital and store investments, which are negatively impacting margins [1][5] - The industry is also affected by currency volatility, geopolitical uncertainty, and evolving trade and tariff policies, alongside a softer consumer backdrop and a tight labor market [1][5] Consumer Demand Trends - Demand for activewear, footwear, and wellness-focused products remains strong, driven by a broader shift towards healthier lifestyles [2][6] - Companies are leveraging this trend through product innovation, expanded athleisure assortments, and enhanced e-commerce and omnichannel capabilities [2][6] E-Commerce Investments - Digital channels are a major growth engine for the athleisure market, with brands expanding their reach through websites and social media [7] - Investments in faster delivery, supply-chain efficiency, and fulfillment enhancements are sharpening competitive edges, while physical stores are being reimagined to create a seamless omnichannel experience [7] Industry Performance - The Zacks Shoes and Retail Apparel industry has underperformed the broader Zacks Consumer Discretionary sector and the S&P 500 over the past year, with a collective decline of 18.9% [12] - The industry's current Zacks Industry Rank is 180, placing it in the bottom 25% of over 250 Zacks industries, indicating dull prospects for the near term [9][10] Valuation Metrics - The industry is currently trading at a forward 12-month price-to-earnings (P/E) ratio of 26.34X, compared to the S&P 500's 23.44X and the sector's 18.19X [13] - Over the last five years, the industry's P/E ratio has ranged from a high of 38.15X to a low of 20.83X, with a median of 27.10X [13] Key Companies - **Steven Madden**: Positioned for durable upside through a strategic shift towards higher-margin direct-to-consumer channels, with a focus on online and owned-store growth [17][18] - **NIKE**: Set to benefit from its Consumer Direct Acceleration strategy, focusing on sports and product innovation while reducing reliance on promotions [20][22] - **Adidas**: Poised for growth due to strong demand and improved margins from price increases and a better channel mix [24][25] - **Wolverine**: Focused on brand structure and efficiency improvements, with a strong emphasis on direct-to-consumer business [28][29] - **Caleres**: Improving investment case supported by strong brand momentum and cost discipline, with a focus on inventory management [32][33]

Core Insights - Ararat Capital Management reduced its stake in Gildan Activewear by 137,548 shares, amounting to a decrease of approximately $4.9 million, leaving it with 217,685 shares valued at $12.6 million as of September 30 [2][10] - Gildan's third-quarter revenue reached a record $911 million, although net earnings fell to $120.2 million from $131.5 million year-over-year, indicating cyclical challenges in the core business [10] - The completion of the HanesBrands acquisition is expected to double Gildan's scale and introduce at least $200 million in run-rate cost synergies, transforming Gildan into a broader global powerhouse [9][10] Company Overview - Gildan Activewear is a leading global manufacturer of basic apparel, focusing on high-volume, high-quality activewear and hosiery, with a strong portfolio of recognized brands [5][8] - The company's market capitalization is $10.9 billion, with a trailing twelve months (TTM) revenue of $3.4 billion and net income of $475.1 million [4] - Gildan's competitive advantages include operational efficiency, extensive distribution, and vertical integration across multiple geographies [5][8] Investment Position - Ararat Capital's stake in Gildan now represents 6.7% of its assets under management (AUM), ranking as its fifth-largest position [3][10] - Gildan's shares have increased by approximately 17% over the past year, outperforming the S&P 500, which rose nearly 13% in the same period [3]

Core Insights - Gildan Activewear Inc. has completed the acquisition of HanesBrands Inc., establishing itself as a global leader in the apparel industry [1][2] - The acquisition is expected to double Gildan's scale and enhance its capabilities in activewear and innerwear, providing a strong platform for innovation and growth [2] Company Overview - Gildan is a prominent manufacturer of everyday basic apparel, offering products such as activewear, underwear, socks, and intimates to a diverse customer base including wholesale distributors and global lifestyle brands [3] - The company markets its products under a variety of owned brands, including Gildan, Hanes, and Champion, across multiple regions including North America, Europe, Asia Pacific, and Latin America [3] Manufacturing and ESG Practices - Gildan operates large-scale, vertically integrated manufacturing facilities primarily located in Central America, the Caribbean, North America, and Asia [4] - The company is committed to industry-leading labor, environmental, and governance practices, which are integral to its long-term business strategy and ESG initiatives [4] Integration and Synergies - Gildan aims to achieve at least $200 million in run-rate cost synergies from the integration of HanesBrands, emphasizing the importance of a seamless and collaborative integration process [2]

All right, welcome back everybody. Black Friday is in full swing this morning and our next guest is powering many of those sales. Harley Finkelstein is the president of Shopify.And Harley, thank you for coming in today. >> Great to be here. >> You've got data that is not just up to the hour, but up to the almost minute.>> We do. Yeah, we have we have uh minute minutes to minute data. Right now, as we talked about, we have about 12% of all US e-commerce on Shopify.Obviously, most people think that we support ...

Core Insights - American Eagle Outfitters, Inc. (AEO) is anticipated to show revenue growth in its third-quarter fiscal 2025 results, with a consensus estimate of $1.32 billion, reflecting a 2.3% increase year-over-year [1] - The earnings consensus estimate stands at 43 cents per share, indicating a 10.4% decline from the previous year, although it has seen a slight increase in the last 30 days [2] Sales Performance - AEO's sales performance is expected to benefit from brand strength, particularly at Aerie, and positive demand in categories such as intimates, soft dressing, sleepwear, and activewear [3] - The company has made significant investments in digital channels, store optimization, and marketing campaigns, which are likely to support top-line growth [4] Cost and Profitability Challenges - AEO faces challenges from a tough operating environment, including weak consumer sentiment and inflation, which may impact profitability [5] - Increased costs related to selling, general and administrative (SG&A) expenses, advertising, and tariffs are expected to weigh on the company's profitability for the quarter [6] Earnings Prediction - The Zacks model indicates a strong likelihood of an earnings beat for AEO, supported by a positive Earnings ESP of +1.55% and a Zacks Rank of 2 (Buy) [7] Valuation and Stock Performance - AEO's forward 12-month price-to-earnings ratio is 15.27X, which is below the industry average of 16.62X, suggesting it offers compelling value for investors [10] - The stock has experienced a significant increase of 82.6% over the past six months, outperforming the industry, which saw a decline of 0.7% [10]