Core Viewpoint - Nike is attempting to implement a turnaround strategy, but the company is facing significant challenges that necessitate this change [1][4]. Group 1: Management Changes - Nike has appointed Aaron Cain, a 21-year veteran of the company, as the new CEO of Converse, replacing Jared Carver [3][4]. - The leadership change at Converse is seen as overdue, with hopes that it may lead to improved business performance [6]. Group 2: Financial Performance - In fiscal 2025, Nike reported a 10% decline in annual revenue and a 12% decline in Q4 sales [5]. - Converse's sales experienced a more severe downturn, with a 19% decline for the year and a 26% decline for the quarter [5]. - Nike's earnings fell by 44% last year, raising concerns about the justification for its high valuation of 34.5 times earnings [6][7]. Group 3: Market Outlook - Analysts project that Nike's earnings growth will not exceed 7% annually over the next five years, leading to skepticism about the stock's current valuation [7].

More than half of Nike’s shoes are made in Vietnam, a country that’s become a key manufacturer for thousands of American companies. Now, it’s a focus of Trump’s trade war. Bloomberg Originals explains why https://t.co/RpZpWgHe6S https://t.co/9cNc5WD5KR ...

A land once devastated by American bombing now accounts for half of Nike’s global shoe production. Hundreds of other American companies and their suppliers have manufacturing bases in Vietnam too. As the Southeast Asian country’s annual GDP climbed, exports to the US grew.Now, Vietnam is one of the countries most dependent on American trade. The United States is Vietnam’s largest export market. Vietnam’s massive trade surplus with the US has made it a key target for Donald Trump.The problem is they charge u ...

Product Focus - Highlights 18 favorite jelly shoes for peak summer vibes [1] External Links - Provides a link to a relevant article: https://t.co/2PNyOJNvD9 [1] - Includes an image link: https://t.co/GAxN7Fr8pH [1]

Core Insights - Wolverine World Wide, Inc. (WWW) started fiscal 2025 with strong momentum, achieving a record gross margin and notable operational efficiency improvements [1][7] - The company reported a 7.3% year-over-year increase in adjusted gross profit, reaching $194.8 million in the first quarter [1] Financial Performance - The adjusted gross margin for the first quarter was 47.3%, an increase of 80 basis points from the previous year, driven by a favorable sales mix, reduced promotional activities, and supply-chain cost-saving initiatives [2][9] - Operating income improved due to stronger top-line results and strict expense control, with the adjusted operating margin rising by 100 basis points to 6% [4] Brand Performance - Significant margin gains were observed in key brands, particularly Saucony and Merrell, which benefited from higher average selling prices and a healthier full-price sales mix [3] - Sweaty Betty, despite a planned revenue decline, achieved a 1,000-basis-point improvement in gross margin by shifting focus from promotions to premium pricing [3] Future Projections - Wolverine anticipates an adjusted operating margin of 7.2% in the second quarter, reflecting a 90-basis-point improvement year-over-year [5] - The company is taking proactive measures to mitigate cost pressures, including diversifying its sourcing footprint and implementing selective price increases [6] Stock Performance - Over the past three months, WWW stock has increased by 75.9%, outperforming the Zacks Shoes and Retail Apparel industry's growth of 31.4% [8] - The stock is currently trading above its 50 and 200-day simple moving averages, indicating a continued uptrend [11] Valuation Metrics - Wolverine trades at a forward price-to-sales ratio of 0.84X, which is below the industry average of 2.01X [12] - The Zacks Consensus Estimate for Wolverine's current financial-year sales and earnings per share indicates year-over-year growth of 3.6% and 15.4%, respectively [15]

RT ForbesWomen (@ForbesWomen)Catarina Macario, a midfielder for the U.S. national team, will be one of the highest-paid players in women's soccer thanks to a new shoe and apparel deal with Nike. (Photo: Robin Alam/ISI Photos via Getty Images) https://t.co/alRRhcZlSO https://t.co/a8788gDgVW ...

Core Insights - Tapestry, Inc.'s omnichannel strategy enhances customer engagement and drives revenue growth and profitability through the integration of digital and physical retail channels [1][6] Financial Performance - In Q3 of fiscal 2025, direct-to-consumer sales increased by 9% year-over-year, with digital sales growing in the mid-teens and brick-and-mortar sales seeing mid-single-digit growth [2] - Total net sales reached $1,584.6 million, marking a 6.9% year-over-year increase and an 8% growth on a constant-currency basis [2] Customer Engagement - The omnichannel model improves customer experience and captures full-price demand across various touchpoints, particularly appealing to Gen Z consumers through innovative retail formats [3] - Tapestry acquired over 1.2 million customers in North America in Q3, with two-thirds being Gen Z and Millennials, indicating strong future lifetime value [5] Marketing Strategy - Marketing investments have increased to nearly 10% of sales, up from 3-4% pre-pandemic, focusing on effective media planning and emotional storytelling [4] Valuation Metrics - Tapestry is currently trading at a forward P/E multiple of 16.93X, which is lower than the Retail-Apparel and Shoes industry's average of 17.99X and the Retail-Wholesale sector's average of 24.97X [7] Stock Performance - Tapestry's shares have risen by 44.3% over the past three months, outperforming the Zacks industry growth of 25.5% and the S&P 500 index's growth of 18.2% during the same period [11] - The stock closed at $92.21, near its 52-week high of $93.48, and is trading above its 50 and 200-day SMAs of $80.65 and $67.92, respectively [14] Earnings Estimates - The Zacks Consensus Estimate for Tapestry's earnings has increased by seven cents to $5.05 per share for the current fiscal year, indicating a year-over-year growth of 17.7% [16]

Core Insights - Urban Outfitters Inc. (URBN) reported record first-quarter sales of $1.33 billion for fiscal 2026, reflecting a year-over-year increase of 10.7% with all five brands achieving positive comparable sales [1][9] - The company's operating profit surged by 71.8% to $128.2 million, moving closer to its long-term goal of a 10% operating margin [1] Sales Performance - Free People led the sales growth with an 11% increase, driven by retail and wholesale gains, including a 3.1% rise in retail comparable sales and a 25.6% increase in wholesale revenue [2] - Nuuly, the apparel rental subscription service, added over 110,000 subscribers year-over-year, surpassing 380,000 subscribers, resulting in a 59.5% revenue increase for the brand [4] - Anthropologie achieved its 10th consecutive quarter of double-digit operating profit growth, supported by a 6.9% retail comparable sales increase [6] Brand Developments - The Urban Outfitters brand recorded a 2.1% global retail comparable sales increase, with a notable 14% gain in Europe, which offset a 4% decline in North America [7] - The company opened 43 new locations under Free People and FP Movement over the past year, with expectations of mid-single-digit retail comparable gains in the upcoming fiscal quarter [3] Financial Outlook - URBN projects high-single-digit sales growth for the fiscal second quarter, with an anticipated gross margin improvement of 50-100 basis points for the year [8] - The Zacks Consensus Estimate for URBN's earnings has been revised upward, indicating year-over-year growth of 22.2% for the current fiscal year and 9.9% for the next fiscal year [16] Stock Performance - URBN shares have rallied 40% in the past three months, outperforming the Zacks Retail-Apparel and Shoes industry's growth of 18.9% [10] - The stock is currently trading 6.8% below its 52-week high, with technical indicators suggesting a continued uptrend [11] Valuation Metrics - URBN is considered a compelling value play, trading at a forward 12-month price-to-sales ratio of 1.02, below the industry average of 1.77 [12]

Core Viewpoint - The current stock market cycle is heavily influenced by the popularity of artificial intelligence and semiconductor sectors, while the retail sector, particularly On Holding, presents significant investment opportunities due to its recent performance and growth potential [2][10]. Group 1: Market Performance - The SPDR S&P Retail ETF (XRT) has experienced a rally of up to 24% over the past quarter, indicating bullish momentum in the retail sector [2]. - On Holding's stock trades at approximately 85% of its 52-week high, while competitors like Lululemon and Nike are at 59% and 82% of their respective highs [5][6]. Group 2: Company Comparison - On Holding has a market capitalization of $17.1 billion, significantly smaller than Nike's $112 billion, which offers a better risk-to-reward ratio for growth potential [6]. - On Holding's price-to-book (P/B) ratio is at 20.0x, compared to Nike's 8.0x, suggesting that the market is willing to pay a premium for expected outperformance [8]. Group 3: Financial Performance - On Holding reported a 43% annual growth in revenue, attributed to its increasing market share [10]. - The company's gross profit margin reached 59.9%, one of the highest in the industry, with its wholesale division contributing 38.1% to net revenue [12]. - Despite a reported net loss due to currency exchange rates, On Holding would have delivered a significant earnings beat on an adjusted basis, leading to a positive market reaction [13][14].

Core Insights - Deckers Outdoor Corporation (NYSE: DECK) has reported strong financials but has seen mediocre stock performance since its Q3 earnings release at the end of January, which included guidance that was lower than Wall Street expectations [1] Financial Performance - The company posted its Q3 earnings at the end of January, indicating robust financial health [1] Market Reaction - Following the Q3 earnings report, the stock price has not performed well, attributed to the lower-than-expected guidance provided by the company [1]