Core Insights - The holiday season has become chaotic for small retailers like Loftie due to import tariffs on Chinese goods disrupting their supply chains [1][2] - Small businesses are facing significant challenges in managing inventory levels, with many operating at dangerously low stock ahead of peak shopping periods [3][4] Supply Chain Disruptions - Loftie has reduced its inventory to about 10% of what is needed due to tariff uncertainties and supply chain disruptions [2] - The fluctuation in tariffs, including a potential increase to 180%, forced Loftie to consider shifting production to Thailand, but ultimately, the higher costs led them to remain with Chinese manufacturers [3] Impact on Retailers - November and December typically account for one-third of annual profits for U.S. retailers, making inventory management critical during this period [4] - Other small businesses, like Lo & Sons, also faced challenges in balancing inventory and supplier changes, leading to low stock levels [4][5] Financial Strain on Small Retailers - Operating margins for small retailers with total assets under $50 million have dropped to negative 20.7%, with 36% at high risk of bankruptcy compared to 12% of larger retailers [6] - The uncertainty caused by tariffs has prevented small businesses from placing purchase orders, exacerbating their inventory issues [5][6]

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market engagement and confidence [1] - The Zacks Style Scores provide a unique rating system for stocks based on value, growth, and momentum, aiding investors in selecting securities with high potential for market outperformance [2] Zacks Style Scores Overview - Stocks are rated from A to F based on their value, growth, and momentum characteristics, with A being the highest score indicating better chances of outperforming the market [3] - The Style Scores are categorized into four types: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [3][4][5][6] Value Score - The Value Score targets value investors by identifying stocks trading below their intrinsic value using various financial ratios [3] Growth Score - The Growth Score focuses on a company's financial health and future growth potential, analyzing historical and projected earnings, sales, and cash flow [4] Momentum Score - The Momentum Score assists momentum traders in capitalizing on price trends, utilizing recent price changes and earnings estimate adjustments [5] VGM Score - The VGM Score combines all three Style Scores, providing a comprehensive rating that highlights stocks with attractive value, strong growth forecasts, and positive momentum [6] Zacks Rank Integration - The Zacks Rank, based on earnings estimate revisions, is a proprietary model that has historically delivered a +23.81% average annual return since 1988, significantly outperforming the S&P 500 [7] - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal returns [9] Company Spotlight: Tapestry, Inc. - Tapestry, Inc., formerly known as Coach, Inc., is a designer and marketer of lifestyle products, operating under three segments: Coach (79.9% of fiscal 2025 sales), Kate Spade (17.1%), and Stuart Weitzman (3.1%) [11] - Tapestry holds a Zacks Rank of 3 (Hold) with a VGM Score of B, and a Momentum Style Score of B, reflecting a 6.6% increase in shares over the past four weeks [12] - The company has seen a positive revision in earnings estimates, with the Zacks Consensus Estimate for fiscal 2026 increasing to $5.46 per share, alongside an average earnings surprise of +10.3% [12][13]