BOOT

G-III Apparel Group, Ltd. GIII reported second-quarter fiscal 2027 results, with the bottom line surpassing the Zacks Consensus Estimate but the top line missing the same. Adjusted earnings increased year over year, while net sales declined. The company’s go-forward portfolio delivered high-single-digit sales growth, underscoring momentum in its business as G-III transitions away from the Calvin Klein and Tommy Hilfiger licenses. Price increases and a continued shift toward higher-margin owned brands supported substantial gross-margin expansion.Management raised its fiscal 2027 GAAP and adjusted earnings guidance, while maintaining its sales forecast and lowering its adjusted EBITDA outlook. G-III completed the Marc Jacobs acquisition, further advancing its strategic transformation. Management is targeting $1 billion in long-term annual revenues for Marc Jacobs and expects the addition to strengthen the company’s portfolio and global fashion positioning. G-III Apparel Group, LTD. price-consensus-eps-surprise-chart | G-III Apparel Group, LTD. Quote G-III reported adjusted earnings of 26 cents per share, beating the Zacks Consensus Estimate of 25 cents. The bottom line also increased 4% from adjusted earnings of 25 cents per share in the year-ago quarter and exceeded the upper end of management’s prior guidance of 15-25 cents.Net sales declined 9.6% year over year to $554.1 million and missed the Zacks Consensus Estimate of $570 million. Sales came in below management’s prior projection of $570 million. Growth in the go-forward portfolio provided support as the company continued its portfolio transition.Adjusted net income totaled $11.5 million compared with $11.2 million in the prior-year quarter. Net income increased to $20.2 million or 46 cents per share, from $10.9 million or 25 cents per share, a year earlier.The adjusted results exclude tariff-refund benefits and related interest income, Marc Jacobs acquisition expenses and a tax benefit from the release of a valuation allowance. The valuation-allowance release contributed a $9.3-million tax benefit to GAAP results in the quarter. Gross profit was nearly flat year over year at $250.4 million. The gross margin expanded 440 basis points to 45.2% from 40.8%, driven by price increases and a greater mix of higher-margin owned brands. The adjusted gross margin stood at 45.2%.Selling, general and administrative expenses increased 2% year over year to $231.4 million from $226.8 million. As a percentage of net sales, these expenses rose to 41.8% from 37%, reflecting expense deleverage on the lower revenue base.Operating profit declined to $10.8 million from $16.3 million in the year-ago quarter. Adjusted EBITDA decreased 13.1% to $20.2 million from $23.3 million, despite the improvement in gross margin. G-III ended the quarter with cash and cash equivalents of $529.2 million compared with $301.8 million in the prior-year period. Inventories declined 13% year over year to $555 million from $639.8 million.Total debt stood at $7.8 million compared with $15.5 million a year earlier, while stockholders’ equity increased to $1.82 billion from $1.71 billion. Cash less total debt amounted to approximately $521.4 million as of July 31, 2026.The company returned $12.2 million to shareholders during the quarter, comprising $7.9 million in share repurchases and $4.3 million in dividend payments. For the third quarter of fiscal 2027, G-III expects net sales of approximately $870 million compared with $988.6 million in the prior-year quarter.Net income and adjusted net income are each projected between $59 million and $64 million or $1.35-$1.45 per share. These figures compare with net income of $80.6 million, or $1.84 per share and adjusted net income of $83.4 million, or $1.90 per share, in the year-ago period. For fiscal 2027, G-III continues to expect net sales of approximately $2.71 billion compared with $2.96 billion in fiscal 2026. The outlook incorporates a loss of approximately $460 million in sales from Calvin Klein and Tommy Hilfiger products, versus approximately $470 million anticipated previously.The company expects net income between $181 million and $185 million, or $4.10-$4.20 per share, up from its prior forecast of $171-$175 million, or $3.85-$3.95 per share. Fiscal 2026 net income was $67.4 million or $1.51 per share.Adjusted net income is projected between $97 million and $101 million or $2.20-$2.30 per share. This marks an increase from the previous forecast of $95-$99 million or $2.15-$2.25 per share. The company reported adjusted net income of $116.2 million, or $2.61 per share, in fiscal 2026.However, management lowered its adjusted EBITDA outlook to $174-$178 million from the previously projected $178-$182 million. Adjusted EBITDA totaled $192.4 million in fiscal 2026.The fiscal 2027 outlook excludes any impact related to Marc Jacobs, with more specific guidance expected when G-III reports third-quarter earnings. Management expects the acquisition to be slightly dilutive in fiscal 2027 and dilutive during the first 12 months after closing, with accretion expected thereafter. GIII Stock Past Three-Month Performance Image Source: Zacks Investment Research Shares of this Zacks Rank #3 (Hold) company have lost 0.4% over the past three months against the industry’s 2% growth. Urban Outfitters, Inc. URBN is a lifestyle products and services company that sells fashion apparel, accessories, footwear, home goods and related offerings through a portfolio of global consumer brands. The company carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.The Zacks Consensus Estimate for Urban Outfitters’ current fiscal-year earnings and sales suggests growth of 13.1% and 9.1%, respectively, from the year-ago actuals. URBN delivered a trailing four-quarter average earnings surprise of 9.7%.Boot Barn Holdings, Inc. BOOT is the largest lifestyle retailer in the United States, specializing in western and work-related footwear, apparel and accessories. The company also holds a Zacks Rank #2 at present. The Zacks Consensus Estimate for Boot Barn’s current fiscal-year earnings and sales suggests growth of 22.6% and 15.7%, respectively, from the year-ago actuals. BOOT delivered a trailing four-quarter average earnings surprise of 11.4%.Fossil Group, Inc. FOSL is involved in designing, marketing and distributing consumer fashion accessories. It also carries a Zacks Rank #2.The Zacks Consensus Estimate for Fossil Group’s current fiscal-year earnings suggests growth of 96.7% from the year-ago actuals. FOSL delivered a trailing four-quarter average negative earnings surprise of 236.2%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report G-III Apparel Group, LTD. (GIII) : Free Stock Analysis Report Urban Outfitters, Inc. (URBN) : Free Stock Analysis Report Boot Barn Holdings, Inc. (BOOT) : Free Stock Analysis Report Fossil Group, Inc. (FOSL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Boot Barn Holdings, Inc. BOOT reported continued acceleration in its work business following efforts to reinvigorate the category last year. The company improved in-store merchandising, increased its marketing focus on the work business and invested in key third-party brands to strengthen its assortment for work customers. Management cited these initiatives as part of the progress seen in the category. The work boots business delivered high-single-digit comparable sales growth in the first quarter of fiscal 2027. This marked the fifth consecutive quarter of growth for the category and represented its strongest growth in the past few years. The performance also reflected the continued acceleration management has seen in the work business. Management said that the high-single-digit growth in work boots was supported by both Pull-On and Lace-Up styles. Lace-Up boots performed more strongly, but growth was not limited to a single product type. Management also noted that the category's performance was not being driven by oil-related demand. New third-party brands and a broader assortment of successful products from existing third-party brands also supported the category. The work apparel business continued to show improving momentum, with comparable sales strengthening over the last couple of quarters and reaching high-single-digit growth in July. Performance included both Flame Resistant (FR) and non-FR products, which management described as appearing broad-based across the work apparel assortment rather than being driven by a single product category. Overall, Boot Barn's work category continued to demonstrate positive momentum, supported by changes to merchandising, marketing and product assortment, as well as resilient demand from its needs-based customers. Management also said it expects the strength in its third-party work boots business to continue, although the transcript does not provide a specific forecast for the future growth rate of the overall work category. Boot Barn’s shares have lost 8.8% in the past three months compared with the industry’s decline of 6.2%. Image Source: Zacks Investment Research From a valuation standpoint, Boot Barn trades at a forward price-to-earnings ratio of 16.29, higher than the industry’s average of 13.20. BOOT presently carries a Zacks Rank #2 (Buy). Image Source: Zacks Investment Research The Zacks Consensus Estimate for BOOT’s current and next fiscal-year earnings implies year-over-year rallies of 22.6% and 10.5%, respectively. Image Source: Zacks Investment Research Some other top-ranked stocks have been discussed below: Victoria’s Secret & Co. VSXY operates as a specialty retailer of women's intimate apparel and other apparel and beauty products worldwide. At present, VSXY sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. The Zacks Consensus Estimate for VSXY’s current fiscal-year sales and earnings implies growth of 9.2% and 57%, respectively, from the year-ago figures. VSXY has delivered a trailing four-quarter earnings surprise of 81.9%, on average. FIGS, Inc. FIGS operates as a direct-to-consumer healthcare apparel and lifestyle company in the United States and internationally. At present, FIGS carries a Zacks Rank of 2. The Zacks Consensus Estimate for FIGS’s current fiscal-year sales and earnings implies growth of 18.2% and 89.5%, respectively, from the year-ago figures. FIGS has delivered a trailing four-quarter earnings surprise of 201.8%, on average. Fossil Group, Inc. FOSL designs, develops, markets, and distributes consumer fashion accessories in the United States, Europe, Asia, and internationally. At present, FOSL carries a Zacks Rank of 2. The Zacks Consensus Estimate for FOSL’s current fiscal-year sales indicates a decline of 4%, while the same for earnings indicates growth of 96.7% from the year-ago figures. FOSL delivered a trailing four-quarter negative earnings surprise of 236.2%, on average. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Boot Barn Holdings, Inc. (BOOT) : Free Stock Analysis Report Fossil Group, Inc. (FOSL) : Free Stock Analysis Report FIGS, Inc. (FIGS) : Free Stock Analysis Report Victoria's Secret & Co. (VSXY) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

A month has gone by since the last earnings report for Boot Barn (BOOT). Shares have added about 0.8% in that time frame, underperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is Boot Barn due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important catalysts. Boot Barn Holdings, Inc. reported first-quarter fiscal 2027 results, wherein both top and bottom lines surpassed the Zacks Consensus Estimate and increased year over year. The western and workwear retailer benefited from strong new-store productivity, same-store sales growth, robust e-commerce demand and merchandise margin expansion. Management also raised its fiscal 2027 outlook, reflecting confidence in continued execution despite a softer start to the second quarter.The quarterly earnings of $2.29 per share beat the Zacks Consensus Estimate of $1.69 and increased 31.6% from $1.74 reported in the year-ago quarter. Net sales rose 17.7% year over year to $593.5 million, surpassing the Zacks Consensus Estimate of $582 million. Sales growth was driven by new-store expansion and positive comparable sales across both retail stores and e-commerce. Consolidated same-store sales increased 4.7% during the quarter. Retail store same-store sales rose 3.8%, supported by a 3% increase in average unit retail, while transactions remained approximately flat. E-commerce same-store sales jumped 13.4%, driven by double-digit growth at bootbarn.com, underscoring continued strength in the company's omnichannel strategy.Boot Barn opened 27 new stores during the quarter compared with 14 in the prior-year period, ending the quarter with 566 stores across 49 states. Management continues to expect 70 new store openings in fiscal 2027 and reiterated its long-term opportunity to expand to approximately 1,200 U.S. locations. New locations are projected to generate average annual sales of about $3.2 million, with an investment payback period of less than two years.Across merchandise categories, men's western boots posted mid-single-digit growth, while women's western boots declined at a mid-single-digit rate against difficult prior-year comparisons. Men's and women's apparel increased at a high-single-digit pace, led by double-digit denim growth. Work boots delivered high-single-digit growth, marking the category's fifth consecutive quarter of positive growth, aided by improved merchandising, stronger marketing support and investments in key third-party brands. Gross profit increased 21.6% to $239.9 million, with the gross margin expanding about 130 basis points to 40.4%. Merchandise margin expanded by 220 basis points, including a 250-basis-point benefit from $14.7 million of tariff refunds and 60 basis points of product-margin expansion. These gains were partly offset by a 90-basis-point freight headwind.SG&A expenses rose 18.1% to $149.4 million and represented 25.2% of sales, up roughly 10 basis points. Operating income climbed 28% to $90.5 million, while the operating margin expanded to 15.3% from 14% in the prior-year quarter. Operating cash flow rose to $83.8 million from $73.9 million a year earlier. Capital expenditures increased to $51.1 million from $31.5 million as the retailer continued investing in its store base and infrastructure. The company expects capital expenditures, net of estimated landlord-tenant allowances, between $125 million and $130 million for fiscal 2027.BOOT ended the quarter with $139.3 million in cash and no borrowings under its revolving credit facility. The company repurchased more than 158,451 shares for $25 million during the quarter. It also doubled its revolving credit capacity to $500 million and extended the facility’s maturity to 2031. Backed by its better-than-expected first-quarter performance, Boot Barn raised its fiscal 2027 outlook. Management now expects earnings in the range of $8.80-$9.23 per share, up from the previous guidance of $8.21-$8.64, including an estimated 46-cent benefit from tariff refunds. Total sales are projected to be between $2.580 billion and $2.625 billion, while consolidated same-store sales are expected to increase 2-4% for the year, with retail store same-store sales growth of 1-3% and e-commerce same-store sales growth of 11-13%. The company had earlier total sales in the band of $2.578-$2.623 billion. The merchandise margin rate is now expected to reach approximately 52.2% of sales, up 130 basis points year over year. The expansion includes 70 basis points from tariff refunds, 50 basis points from product-margin improvement and 10 basis points from lower freight costs. BOOT forecasts gross profit between $993 million and $1,016 million, or approximately 38.5% to 38.7% of sales.For the second quarter, Boot Barn expects net sales of $572-$582 million, suggesting year-over-year growth of 13-15%. Consolidated same-store sales are projected to range from flat to up 2%, with retail store same-store sales between down 1% and up 1% and e-commerce same-store sales growth of 10% to 12%. Management expects earnings in the range of $1.55-$1.65 per share, including an estimated 6-cent benefit from tariff refunds.Boot Barn expects second-quarter merchandise margin between $297 million and $302 million, or approximately 51.8% of sales, up 140 basis points year over year. The outlook includes an estimated $2.4 million benefit from tariff refunds. Gross profit is projected in the range of $208-$213 million, implying about 36.3%-36.6% of sales.Management noted that consolidated same-store sales were approximately flat during the first four weeks of the second quarter. The moderation reflected fewer Western lifestyle stadium events and concerts, along with temporary traffic disruptions tied to World Cup broadcasts. Despite the softer July performance, management said the consumer remained healthy, reaffirmed confidence in its outlook for the balance of the year and maintained that Boot Barn was well positioned to deliver another year of profitable growth. In the past month, investors have witnessed a downward trend in estimates revision. At this time, Boot Barn has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Charting a somewhat similar path, the stock has a grade of B on the value side, putting it in the top 40% for this investment strategy. Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Boot Barn has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Boot Barn Holdings, Inc. (BOOT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

The Gap, Inc. GAP reported adjusted earnings of 52 cents per share for the second quarter of fiscal 2026, down 8.8% year over year but came above the Zacks Consensus Estimate of 50 cents. Revenues of $3.65 billion declined 2% year over year and missed the consensus mark of $3.72 billion by 1.9%. Comparable sales fell 1%, while gross margin strength helped the company exceed profit expectations. Gap delivered a 10% comparable-sales increase, while Old Navy declined 4% and Athleta fell 12%. Management highlighted disciplined pricing, inventory management and stronger execution at key brands as drivers of profitability.As a result, Gap’s shares have jumped nearly 15% in after-hours trading yesterday. This Zacks Rank #3 (Hold) stock has dipped 0.8% in the past three months compared with the industry’s 9.5% decline. Store sales decreased 3%, while online sales declined 1% and represented 35% of total net sales. The Gap brand remained the strongest performer in the portfolio. Net sales reached $844 million, up 9% year over year, while comparable sales increased 10%. Management attributed the performance to culturally relevant storytelling and strength in destination categories such as denim, fleece, and kids and baby. Our model had expected Gap brand's sales of $833.9 million for the reported quarter. The Gap, Inc. price-consensus-chart | The Gap, Inc. Quote Old Navy generated second-quarter net sales of $2.1 billion, down 4% year over year, with comparable sales also declining 4%. Management said weaker women’s seasonal assortments and an unexpected slowdown in traffic pressured results. Banana Republic delivered improvement, with net sales of $478 million, up 1%, and comparable sales up 3%. The brand benefited from stronger assortment, marketing and storytelling, with balanced performance across men’s and women’s categories. Athleta remained under pressure, with second-quarter net sales of $264 million declining 12% and comparable sales falling 12%. Management said the brand is focused on disciplined execution, improving inventory productivity and rebuilding customer engagement through stronger product and storytelling. We had anticipated sales of $2.1 billion for Old Navy, $476.5 million for Banana Republic and $280.5 million for Athleta. Gap reported a gross margin of 52.8%, benefiting from adjustment related to the expected recovery of tariffs previously imposed under the International Emergency Economic Powers Act. Adjusted gross margin, excluding this benefit, was 41.4%, up 20 basis points year over year. Adjusted merchandise margin expanded 80 basis points, supported by the Gap brand and tariff mitigation strategies. However, higher promotional activity at Old Navy partially offset gains. Adjusted operating margin was 7.1%, while adjusted earnings per share came in at $0.52. Gap ended the quarter with $2.5 billion in cash, cash equivalents and short-term investments, while year-to-date net cash from operating activities totaled $550 million. Free cash flow reached $261 million year to date. The company returned $262 million to shareholders during the quarter through share repurchases and dividends. Year to date, Gap has returned $726 million to shareholders, including $601 million of share repurchases and $125 million of dividends. Gap updated its fiscal 2026 outlook, expecting full-year net sales growth of 1-1.5%, compared with the prior forecast of 1-2%. The company now expects Gap comparable sales growth in the high-single to low-double-digit range and Old Navy comparable sales to be flat to down 1%.The company raised its adjusted operating margin outlook to 7.4-7.6% from 7.3-7.5% previously. Adjusted earnings per share guidance increased to $2.35-$2.45, supported by improved gross margin expectations and a lower weighted average share count following repurchase activity. We have highlighted three better-ranked stocks, namely, Target Corporation TGT, American Eagle Outfitters AEO and Boot Barn Holdings, Inc. BOOT.Target offers guests fashionable, differentiated merchandise and everyday essentials at discounted prices. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for Target’s current financial-year sales and EPS indicates growth of 4.4% and 11.4%, respectively, from the year-ago reported numbers. TGT delivered a trailing four-quarter earnings surprise of 10.5%, on average.American Eagle is a specialty retailer of casual apparel, accessories and footwear. The company currently carries a Zacks Rank #2 (Buy). The consensus estimate for AEO’s current financial-year sales and EPS indicates growth of 5.7% and 17.3%, respectively, from the year-ago reported numbers. AEO delivered a trailing four-quarter earnings surprise of 48.5%, on average.Boot Barn is a leading lifestyle retailer in the United States, specializing in western and work-related footwear, apparel and accessories. It currently has a Zacks Rank of 2.The Zacks Consensus Estimate for Boot Barn’s current financial-year sales and EPS is expected to rise 15.7% and 22.6%, respectively, from the year-ago reported figures. BOOT delivered a trailing four-quarter earnings surprise of 11.4%, on average. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Gap, Inc. (GAP) : Free Stock Analysis Report Target Corporation (TGT) : Free Stock Analysis Report American Eagle Outfitters, Inc. (AEO) : Free Stock Analysis Report Boot Barn Holdings, Inc. (BOOT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Best Buy Co., Inc. BBY reported better-than-expected second-quarter fiscal 2027 results, with both the top and bottom lines rising year over year. Both metrics surpassed the Zacks Consensus Estimates. BBY posted adjusted earnings of $1.48 per share, which increased 70.1% from 87 cents a year ago and beat the Zacks Consensus Estimate of $1.37 by 8%. Best Buy Co., Inc. price-consensus-eps-surprise-chart | Best Buy Co., Inc. Quote Revenues rose 3.6% to $9.78 billion from $9.44 billion, topping the consensus mark of $9.56 billion by 2.2%. The performance reflected broad category growth and improved profitability. Enterprise comparable sales increased 4.1% compared with growth of 1.6% in the year-ago quarter. Domestic comparable sales advanced 4.5% in the second quarter compared with 1.1% growth a year ago. Computing and mobile phones comps increased 6.8% compared with 3.8%, while consumer electronics rose 5.6% compared to a 5.2% decline in the prior-year quarter. Services comparable sales grew 6.4% versus 3.7%, and appliances edged up 0.2% compared with a 9.2% decline a year ago. Entertainment fell 6.3% after increasing 39.3% in the prior-year period. Management identified computing, home theater and emerging categories such as AI glasses and trading cards as the largest weighted growth drivers, partly offset by weakness in traditional gaming. Domestic revenues increased 4.3% to $9.07 billion from $8.70 billion in the year-ago quarter. Domestic comparable online sales rose 5.1% in the second quarter, matching the rate recorded a year earlier. Online sales represented 33.1% of domestic revenues compared with 32.8% previously. Domestic gross profit increased to $2.18 billion from $2.03 billion in the reported quarter, while the gross profit rate expanded to 24% from 23.4%. The improvement reflected growth in Marketplace and Best Buy Ads and approximately $34 million of IEEPA tariff refunds, partly offset by lower product margin rates. Consolidated gross profit rose to $2.34 billion from $2.19 billion, with gross margin improving to 23.9% from 23.2%. SG&A expenses increased to $1.92 billion from $1.83 billion and represented 19.7% of revenues compared with 19.4% a year earlier. Operating income increased to $421 million from $251 million, while the operating margin expanded to 4.3% from 2.7%. Adjusted operating income rose to $417 million from $369 million, with the adjusted margin increasing to 4.3% from 3.9%. BBY recorded a $6 million reduction in restructuring charges compared with $114 million of charges a year ago. International revenues declined 4.2% to $709 million from $740 million in the second-quarter. Comparable sales decreased 1.8% compared with growth of 7.6% in the year-ago quarter. The company attributed the revenues decline primarily to lower comparable sales and the negative impact of foreign exchange rates. International gross profit declined to $158 million compared with $161 million, though the gross profit rate improved to 22.3% from 21.8%. Adjusted SG&A increased to $145 million from $143 million and represented 20.5% of revenues versus 19.3%. Adjusted operating income declined to $13 million from $18 million, while the corresponding margin fell to 1.8% from 2.4%. For the first six months of fiscal 2027, cash provided by operating activities increased to $1.30 billion from $783 million a year ago. Additions to property and equipment were $344 million compared with $341 million in the prior-year period. Cash and cash equivalents stood at $2.26 billion at quarter end compared with $1.46 billion a year earlier. Merchandise inventories increased to $6.30 billion from $5.82 billion. During the first six months, BBY paid $405 million in dividends versus $403 million a year ago and spent $36 million on share repurchases compared with $165 million. Best Buy raised its fiscal 2027 revenue guidance to $42.3-$42.8 billion from its prior forecast of $41.2-$42.1 billion. Comparable sales are now expected to increase 1.9-3% compared with the previous outlook ranging from a 1% decline to 1% growth. The company increased its adjusted earnings outlook to $6.70-$6.90 per share from $6.30-$6.60 and raised its adjusted operating income rate forecast to 4.4-4.5% from 4.3-4.4%. Capital expenditures remain projected at approximately $750 million, unchanged from the prior outlook. Management attributed the higher annual guidance to strong first-half performance and momentum entering the second half. This Zacks Rank #3 (Hold) company’s shares have gained 17% over the past three months, in line with the industry's growth. Image Source: Zacks Investment Research Some better-ranked stocks have been discussed below: FIGS, Inc. FIGS operates as a direct-to-consumer healthcare apparel and lifestyle company in the United States and internationally. The company currently carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. The Zacks Consensus Estimate for FIGS’ current fiscal-year sales and earnings implies growth of 18.2% and 89.5%, respectively, from the year-ago figures. FIGS has delivered a trailing four-quarter earnings surprise of 201.8%, on average. Fossil Group, Inc. FOSL designs, develops, markets and distributes consumer fashion accessories in the United States, Europe, Asia and internationally. At present, FOSL carries a Zacks Rank of 2. The Zacks Consensus Estimate for FOSL’s current fiscal-year sales indicates a decline of 4%, while the consensus mark for earnings indicates growth of 96.7% from the year-ago figures. FOSL delivered a trailing four-quarter negative earnings surprise of 236.2%, on average. Boot Barn Inc. BOOT operates specialty retail stores in the United States and internationally. Boot Barn currently carries a Zacks Rank of 2. The consensus estimate for Boot Barn’s current fiscal-year sales and earnings implies growth of 15.7% and 22.6%, respectively, from the year-ago figures. BOOT delivered a trailing four-quarter earnings surprise of 11.4%, on average. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Best Buy Co., Inc. (BBY) : Free Stock Analysis Report Boot Barn Holdings, Inc. (BOOT) : Free Stock Analysis Report Fossil Group, Inc. (FOSL) : Free Stock Analysis Report FIGS, Inc. (FIGS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Urban Outfitters, Inc. URBN reported strong second-quarter fiscal 2027 results, with earnings matching the Zacks Consensus Estimate, while revenues surpassed the consensus mark. Also, both metrics improved from the prior-year quarter’s reported figures. The company delivered record second-quarter sales and profits, marking its eighth consecutive quarter of record performance. As a result, shares of URBN increased 9.5% yesterday.Management highlighted broad-based momentum across the Retail, Subscription and Wholesale segments, along with continued customer engagement and disciplined execution. All Retail segment brands posted positive comparable sales growth, while Nuuly continued to scale rapidly on strong subscriber growth. The Wholesale segment delivered robust double-digit gains, led by the FP Group. Urban Outfitters, Inc. price-consensus-eps-surprise-chart | Urban Outfitters, Inc. Quote This lifestyle specialty retailer delivered adjusted earnings per share of $1.72, in line with the Zacks Consensus Estimate. Adjusted earnings increased 8.9% year over year. The company’s earnings per share were $2.78 compared with $1.58 in the prior-year quarter.Net sales increased 10.4% year over year to $1,661.9 million, beating the consensus mark of $1,648 million. The sales performance benefited from strength across Retail, Wholesale and Subscription operations. Total Retail segment net sales rose 8% year over year to $1.39 billion, while comparable Retail segment sales increased 6.2%. Growth in comparable sales was driven by high-single-digit gains in digital channel sales and mid-single-digit growth in retail store sales. Comparable Retail segment sales increased 10% at FP Group, 8.4% at Urban Outfitters and 3% at Anthropologie. We estimated the Retail segment’s sales to increase 7.4% year over year.Within the FP Group, total sales increased 15% year over year to $478.1 million, driven by continued momentum across both Retail and Wholesale operations. Free People and FP Movement continued to benefit from strong customer demand, while the FP Group Wholesale segment delivered a 19% increase in revenues. Urban Outfitters posted an 8% comparable-sales increase, supported by strength across North America and Europe.The Wholesale segment posted net sales growth of 18.6%, driven by a 19.2% increase in FP Group wholesale sales due to higher sales to specialty customers and department stores.Nuuly, the company’s women’s apparel subscription rental service, continued to witness strong momentum. Subscription segment net sales increased 28.6% year over year to $178.6 million, primarily driven by a 30.4% increase in average active subscribers. Average active subscribers reached 484,000 during the quarter, while the subscriber base crossed 500,000 in early June. We estimated the Nuuly segment’s sales to rise 18.7% year over year. Gross profit rose 27.4% year over year to $721.6 million in the fiscal second quarter, mainly driven by higher net sales during the period. However, the reported gross margin increased 580 basis points year over year to 43.4%, which beat our estimate of 37.4% and benefited from a $95.7-million IEEPA tariff refund. Adjusted gross margin increased 4 basis points to 37.7%. The improvement was primarily driven by benefits from store occupancy costs from higher comparable Retail store sales and leverage in delivery expenses from initiatives that helped offset fuel-surcharge costs. These benefits were partly offset by higher Retail markdowns at Anthropologie and the negative impacts of tariffs and inbound freight fuel surcharges on initial merchandise costs.Selling, general and administrative (SG&A) expenses increased 10.5% year over year to approximately $433 million. Our model estimated SG&A expenses to increase 8.8% year over year in the fiscal second quarter. The increase was primarily driven by higher marketing investments to support customer growth and increased sales in the Retail and Subscription segments, along with higher store payroll expenses. These increases were partly offset by leverage in store payroll expenses resulting from higher Retail store sales. The company continued to invest in artificial intelligence technology to support its current and future operations. As a percentage of net sales, SG&A expenses remained flat at 26%, which met our estimate. URBN reported adjusted operating income of $193.1 million, up 11% from $174.4 million in the prior-year quarter. The adjusted operating margin improved 3 basis points year over year to 11.6%, reflecting the increase in adjusted gross margin. In the first six months of fiscal 2027, the company opened 23 stores and closed six stores. Store openings included four Anthropologie, seven Free People, 10 FP Movement and two Urban Outfitters stores, while closures included one Anthropologie, one FP Movement, three Urban Outfitters and one Menus & Venues location.As of July 31, 2026, URBN operated 252 Urban Outfitters stores, 257 Anthropologie stores and 284 FP Group stores, including 97 FP Movement locations. The company operated eight Menus & Venues restaurants and nine franchisee-owned stores. As of July 31, 2026, Urban Outfitters had cash and cash equivalents of $598.8 million, up from $332.2 million in the prior-year period. Marketable securities totaled $346.8 million, while total shareholders’ equity stood at $2.85 billion at the quarter-end.As of July 31, 2026, total inventory increased 11.8% year over year to $778.5 million. Total Retail segment inventory rose 12%, while comparable Retail segment inventory increased 8.4%. Wholesale segment inventory increased 10%. The increase in Retail inventory was primarily due to higher net sales and the timing of inventory receipts, while the increase in Wholesale inventory reflected higher sales.During the first six months of fiscal 2027, the company repurchased and retired 4.6 million shares for approximately $300 million. As of July 31, 2026, 10 million common shares remained authorized for repurchase under the existing program. Urban Outfitters’ management expects third-quarter fiscal 2027 total company sales to grow in the high-single-digit range, supported by continued momentum across the Retail, Wholesale and Subscription businesses.The Retail segment’s comparable sales are projected to increase in the mid-single-digit range, driven by high-single-digit growth at FP Group, mid-single-digit growth at Urban Outfitters and low-to-mid-single-digit growth at Anthropologie. Nuuly is expected to post high-twenties revenue growth, while the Wholesale segment is projected to generate low-teens growth.For the fiscal third quarter, URBN expects the gross profit margin to increase 25-50 basis points year over year. The anticipated improvement primarily reflects higher initial merchandise margins due to lower tariffs and leverage in occupancy costs, partly offset by higher fuel surcharges.Management anticipates fuel surcharges to continue affecting the business through the remainder of fiscal 2027. The company noted that these surcharges are expected to create an unfavorable impact through higher inbound freight and delivery expenses.Management expects third-quarter SG&A expenses to grow in line with or slightly below sales growth, reflecting continued investments in marketing, technology and AI initiatives while benefiting from leverage in store payroll and occupancy expenses. For fiscal 2027, management maintains its expectation for positive high-single-digit total company sales growth. The outlook reflects continued momentum across the portfolio, with Retail comparable sales expected to grow in the mid-single-digit range, Nuuly revenues projected to increase in the high-20% range and Wholesale revenues anticipated to grow in the low-teens range.URBN expects fiscal 2027 gross margin to expand by approximately 25 basis points year over year. Management sees an incremental margin opportunity in the second half, primarily from improved initial merchandise margins as tariff pressures moderate. However, fuel surcharges are expected to remain a headwind through the remainder of the fiscal year.For the full year, SG&A is expected to grow in line with sales, while inventory growth is expected to remain at or below sales growth as the company continues to focus on improving product turns. Management also plans to continue investing in marketing, technology and AI initiatives to support customer acquisition and long-term growth.Capital expenditures for fiscal 2027 are planned at approximately $475 million. Approximately 35% of spending is expected to be allocated to retail store expansion and support, 50% to logistics investments and the remaining 15% to technology investments and home-office expansion. The logistics investments are intended to expand capacity and automation across the Subscription and Retail businesses.URBN expects to open approximately 54 new stores and close approximately 18 stores during fiscal 2027. Net new store growth is expected to be primarily driven by FP Movement. The company plans to open 21 FP Movement, 12 Free People, 12 Anthropologie and eight Urban Outfitters stores during the year. URBN Stock Past Three-Month Performance Image Source: Zacks Investment Research Management expressed confidence as it enters the second half, citing double-digit sales and profit growth at Free People and FP Movement, positive comparable sales at Anthropologie and high-single-digit comparable sales at Urban Outfitters in both North America and Europe. Management also emphasized URBN’s multi-brand strategy and structural diversification across brands, demographics, product categories, distribution channels and geographies.Shares of the Zacks Rank #2 (Buy) company have gained 10.8% in the past three months against the industry’s 11.7% decline. FIGS, Inc. FIGS is an apparel company focused on the healthcare industry. Its offerings include lab coats, jackets, footwear, bags, socks and other accessories used by healthcare professionals. The company carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.The Zacks Consensus Estimate for FIGS’ current financial-year earnings and sales suggests growth of 89.5% and 18.2%, respectively, from the year-ago actuals. FIGS delivered a trailing four-quarter average earnings surprise of 201.8%.Boot Barn Holdings, Inc. BOOT is the largest lifestyle retailer in the United States, specializing in western and work-related footwear, apparel and accessories. The company also holds a Zacks Rank #2 at present. The Zacks Consensus Estimate for Boot Barn’s current fiscal-year earnings and sales suggests growth of 22.6% and 15.7%, respectively, from the year-ago actuals. BOOT delivered a trailing four-quarter average earnings surprise of 11.4%.American Eagle Outfitters Inc. AEO is a specialty retailer of casual apparel, accessories and footwear. It carries a Zacks Rank of 2 at present.The Zacks Consensus Estimate for American Eagle's current fiscal-year earnings and sales suggests growth of 17.3% and 5.7%, respectively, from the year-ago actuals. AEO delivered a trailing four-quarter average earnings surprise of 48.5%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Urban Outfitters, Inc. (URBN) : Free Stock Analysis Report American Eagle Outfitters, Inc. (AEO) : Free Stock Analysis Report Boot Barn Holdings, Inc. (BOOT) : Free Stock Analysis Report FIGS, Inc. (FIGS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Abercrombie & Fitch Co. ANF delivered second-quarter fiscal 2026 results that topped expectations. It reported earnings per share (EPS) of $2.42 and adjusted EPS of $4.17. The Zacks Consensus Estimate is pegged at $1.95. Revenues rose 4.8% year over year to $1.27 billion, beating the consensus estimate of $1.24 billion by 1.9%.The quarter benefited from record net sales, broad-based regional growth and a strong operating performance. Comparable sales were flat on a constant-currency basis, while both Abercrombie and Hollister brands posted record second-quarter sales.As a result, ANF’s shares have gained 35.7% during trading hours yesterday. This Zacks Rank #2 (Buy) company stock has surged 51.8% in the past six months against the industry’s 14.4% decline. Image Source: Zacks Investment Research Abercrombie reported net sales of $1.27 billion in the second quarter of fiscal 2026, up 5% year over year. The company marked its 15th consecutive quarter of growth, supported by higher sales across regions and brands.The Americas remained the largest contributor, with sales increasing 5% year over year to $1.02 billion and comparable sales rising 1%. APAC sales climbed 19% to $44.2 million, with comparable sales up 13%, while EMEA sales grew 2% to $202 million despite comparable sales declining 4%. Abercrombie brand generated net sales of $596.8 million, up 8% year over year, with comparable sales increasing 4%. Hollister sales reached $669.9 million, up 2%, although comparable sales declined 3%. We had expected sales to rise 2.1% year over year to $563.7 million for Abercrombie and 4% to $683.1 million for Hollister. The brand performance highlighted continued strength in the company’s core lifestyle offerings. Management noted that both brands achieved record second-quarter net sales, with Abercrombie brands leading overall growth. Abercrombie & Fitch Company price-consensus-eps-surprise-chart | Abercrombie & Fitch Company Quote ANF posted adjusted operating income of $252.7 million, up 50.3% from the year-ago quarter. Adjusted operating margin improved to 19.9% from 13.9%. The company benefited from approximately $100 million of IEEPA tariff refunds, which reduced cost of sales and supported profitability.Selling expense increased to $444 million, up 18.3% from the year-ago quarter, while general and administrative expense rose to $204.8 million, up 16.8% from the year-ago quarter. Higher investments in stores, marketing and payroll partially offset the benefit from stronger sales and tariff refunds. ANF ended the quarter with cash and equivalents of $627.7 million and total liquidity of approximately $1.1 billion, including available borrowing capacity under its ABL facility. Inventory stood at $591.7 million compared with $593 million in the prior-year period.The company continued returning capital to shareholders, repurchasing 2 million shares for approximately $177 million during the quarter. Year to date, ANF repurchased 3.2 million shares for $282 million, reducing shares outstanding by 7% from the beginning of the year. Abercrombie raised its fiscal 2026 outlook, now expecting net sales growth of around 5% compared with the prior forecast of 3-5%. The company also increased its operating margin outlook to 14.5-15% from 12-12.5%.For the fiscal year, ANF expects net income per diluted share of $13.10-$13.60 and share repurchases of at least $500 million. Capital expenditures are projected at around $250 million, while the company continues to plan approximately 30 net store openings, 80 remodels and rightsizes, and 20 closures. We have highlighted three other top-ranked stocks, namely, Target Corporation TGT, American Eagle Outfitters AEO and Boot Barn Holdings, Inc. BOOT.Target offers guests fashionable, differentiated merchandise and everyday essentials at discounted prices. It currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for Target’s current financial-year sales and EPS indicates growth of 4.4% and 11.4%, respectively, from the year-ago reported numbers. TGT delivered a trailing four-quarter earnings surprise of 10.5%, on average.American Eagle is a specialty retailer of casual apparel, accessories and footwear. The company currently carries a Zacks Rank of 2. The consensus estimate for AEO’s current financial-year sales and EPS indicates growth of 5.7% and 17.3%, respectively, from the year-ago reported numbers. AEO delivered a trailing four-quarter earnings surprise of 48.5%, on average.Boot Barn is a leading lifestyle retailer in the United States, specializing in western and work-related footwear, apparel, and accessories, which currently has a Zacks Rank of 2.The Zacks Consensus Estimate for Boot Barn’s current financial-year sales and EPS is expected to rise 15.7% and 22.6%, respectively, from the year-ago reported figures. BOOT delivered a trailing four-quarter earnings surprise of 11.4%, on average. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Abercrombie & Fitch Company (ANF) : Free Stock Analysis Report Target Corporation (TGT) : Free Stock Analysis Report American Eagle Outfitters, Inc. (AEO) : Free Stock Analysis Report Boot Barn Holdings, Inc. (BOOT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Boot Barn Holdings stock has delivered strong gains over the past few years, yet the broader valuation checks currently point to a market price that looks rich rather than obviously cheap. For investors, the question is how to weigh that longer term share price strength against signals that suggest the stock is not priced as a bargain today. Over the past 5 years, Boot Barn Holdings has returned about 79%, which keeps longer term shareholders firmly in positive territory even though the stock has been under pressure more recently. Expectations for continued store expansion and consistent merchandise execution can support the current valuation. However, any slowdown in customer demand or pressure on operating margins may weigh on what investors are willing to pay for the stock. The broader valuation checks lean expensive, with the stock screening as attractive in only 1 of 6 measures, so this is not a clear bargain on the current numbers. The issue now is whether Boot Barn Holdings shares offer enough potential reward at this price to compensate for the risks implied by that richer valuation profile. Spot other retailers that currently screen as more attractively priced by comparing Boot Barn Holdings with 49 high quality undervalued stocks, which is built to highlight companies combining solid cash flows with stronger value signals. The P/E ratio works reasonably well for Boot Barn Holdings because the company reports positive earnings that give investors a clear anchor for comparison. On this measure, the stock trades on about 19.9x earnings, which is above both the Specialty Retail industry average of roughly 18.8x and the peer group average of about 16.0x. The fair P/E ratio estimated for Boot Barn Holdings is about 16.9x, which is lower than where the stock currently trades. That gap suggests investors are paying a premium relative to what the model implies based on the company’s profile, including its sector, profitability and risk characteristics. On this P/E yardstick, Boot Barn Holdings stock currently appears overvalued. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives for Boot Barn Holdings connect the current valuation puzzle with the future that would need to unfold for the stock to look meaningfully higher or lower than today's price, based on factors like growth, margins and earnings. Where a single ratio or model gives you one number, these narratives spell out the underlying assumptions so you can keep an eye on whether those conditions are actually playing out over time on Simply Wall St's Community page. One of the top community narratives on Boot Barn Holdings: 18% undervalued Read one of the top narratives on Boot Barn Holdings Do you think there's more to the story for Boot Barn Holdings? Head over to our Community to see what others are saying! Boot Barn Holdings currently looks overvalued on the main market multiple checks, with the P/E premium implying investors are already paying up for its profile. For you as a potential shareholder, the key question is whether earnings growth and margins can support that richer multiple instead of leaving you reliant on further re rating. The crux of the debate from here is simple: if Boot Barn Holdings can sustain solid customer demand and protect profitability, today’s valuation may prove reasonable over time. However, if those supports weaken, the downside risk from a de rating grows. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include BOOT. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Dillard's Inc. DDS delivered a mixed second-quarter fiscal 2026 performance, with earnings comfortably surpassing the Zacks Consensus Estimate despite a modest revenue miss. Improving retail sales, positive comparable-store sales and gross-margin expansion supported the bottom line, while a sizable tariff refund provided an additional boost. The department-store operator also exited the quarter with more than $1.2 billion in cash and short-term investments after reducing debt.Dillard's shares have gained 11.6% over the past three months compared with the Retail - Regional Department Stores industry's 12.1% rise. Image Source: Zacks Investment Research Dillard's reported second-quarter fiscal 2026 earnings of $6.25 per share, which increased 34.1% from $4.66 in the year-ago quarter and surpassed the Zacks Consensus Estimate of $4.04 by 54.7%. Net income increased to $97.7 million from $72.8 million a year earlier.Net sales of $1.508 billion declined slightly from $1.514 billion in the prior-year quarter and missed the Zacks Consensus Estimate by roughly 0.7%. However, the company's core retail business remained resilient. Total retail sales, which exclude the CDI Contractors construction business, increased 1% to $1.455 billion, while comparable-store sales also advanced 1%.Performance across merchandise categories was mixed. Ladies' accessories and lingerie registered significant sales growth, while home and furniture posted moderate increases. Shoes, men's apparel and accessories, and cosmetics recorded slight gains. Conversely, juniors' and children's apparel and ladies' apparel witnessed moderate declines.Profitability was one of the major highlights of the quarter. Retail gross margin expanded to 40.9% of sales from 38.1% in the prior-year quarter. However, the improvement received a substantial 260-basis-point benefit from $37.2 million in refunds associated with International Emergency Economic Powers Act tariffs. Dillard's does not expect additional significant IEEPA tariff refunds.Dillard's financial position remains one of the strongest elements of its investment case. The company ended the fiscal second quarter with $763.1 million in cash and cash equivalents and $497.7 million in short-term investments, bringing combined liquidity from these two categories to roughly $1.26 billion. Dillard's continues to demonstrate resilience despite an uncertain consumer environment. A 1% increase in both total retail sales and comparable-store sales indicates that demand remains stable, even as performance varies across merchandise categories. Management described the consumer as "somewhat resilient," with sales growth and higher gross margin supporting cash generation during the quarter.The company's merchandise strategy also remains positive. Significant sales growth in ladies' accessories and lingerie, along with gains in home and furniture, shoes, men's apparel and accessories, and cosmetics, demonstrates that Dillard's continues to find pockets of demand across its assortment.Another important strength is Dillard's track record of earnings outperformance. Following the second-quarter beat, the company has surpassed consensus earnings estimates in each of the past several quarters. The latest quarter delivered a 54.7% positive earnings surprise, following a 58.3% beat in the fiscal first quarter.Dillard's cash-heavy balance sheet adds another layer of protection. More than $1.2 billion in cash and short-term investments, combined with ongoing debt reduction, gives management considerable flexibility to navigate an uneven retail environment while continuing to invest in the business. Despite the encouraging second-quarter performance, several risks warrant attention.First, the quality of the gross-margin improvement requires some caution. The $37.2 million tariff refund boosted retail gross margin by 260 basis points and added $1.82 per share to fiscal second-quarter earnings. Since management does not expect additional significant IEEPA refunds, Dillard's will need underlying merchandising and pricing performance to carry a greater share of profit growth in upcoming quarters.Second, operating costs are rising. SG&A expenses increased 2.2% year over year, while operating expenses as a percentage of sales increased 70 basis points to 29.4%. Continued increases in payroll and related costs could pressure operating leverage if sales growth remains modest.Inventory also deserves attention. Merchandise inventories increased roughly 5% year over year compared with just 1% growth in quarterly retail sales. If consumer demand slows, elevated inventory levels could result in heavier promotional activity and create pressure on future gross margins.Finally, broader risks remain, including inflation, shifts in consumer spending, competitive pressure from specialty, off-price and online retailers, higher labor costs, tariffs and potential disruptions to international trade and supply chains. Dillard's exited the fiscal second quarter with several positives working in its favor. Comparable sales remained positive, retail gross margin improved, earnings comfortably topped expectations and the company maintained an exceptionally strong liquidity position while paying down debt.The investment case is not without risks. A meaningful portion of fiscal second-quarter profit improvement came from a tariff refund that is unlikely to recur, while inventory growth and higher payroll expenses warrant monitoring. Uneven category trends and continued uncertainty surrounding consumer spending also limit the visibility of sustained top-line acceleration.Still, Dillard's healthy balance sheet, resilient retail demand, strong earnings-surprise history, reasonable forward valuation and improving earnings outlook provide a favorable risk-reward setup. With DDS currently carrying a Zacks Rank #2 (Buy), the stock appears worth buying for investors seeking exposure to a financially strong retailer while keeping a close watch on underlying gross margins and inventory trends in the quarters ahead. Macy's Inc. M is an omnichannel retail organization operating stores, websites and mobile applications under three nameplates: Macy’s, Bloomingdale’s and Bluemercury. The company currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.The Zacks Consensus Estimate for Macy's current financial-year sales and earnings indicates a decline of 0.01% and 5.6%, respectively, from the year-ago numbers. Macy's delivered a trailing four-quarter earnings surprise of 211%, on average.Urban Outfitters Inc. URBN is a lifestyle products and services company that sells fashion apparel, accessories, footwear, home goods and related offerings through a portfolio of global consumer brands. The company currently carries a Zacks Rank of 2.The Zacks Consensus Estimate for Urban Outfitters’ current financial-year sales and earnings indicates growth of 8.8% and 12.7%, respectively, from the year-ago reported numbers. URBN delivered a trailing four-quarter earnings surprise of 12.2%, on average.Boot Barn Holdings, Inc. BOOT is the largest lifestyle retailer in the United States, specializing in western and work-related footwear, apparel and accessories. The company currently carries a Zacks Rank of 2.The Zacks Consensus Estimate for Boot Barn’s current financial-year sales and earnings is expected to rise 15.7% and 22.6%, respectively, from the year-ago reported figures. BOOT delivered a trailing four-quarter earnings surprise of 11.4%, on average. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report Macy's, Inc. (M) : Free Stock Analysis Report Urban Outfitters, Inc. (URBN) : Free Stock Analysis Report Boot Barn Holdings, Inc. (BOOT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Wolverine World Wide, Inc. WWW delivered solid second-quarter 2026 results, with revenues exceeding the high end of its outlook and adjusted earnings per share rising year over year. Growth was led by Merrell and Saucony, while disciplined cost management helped improve profitability.The company continued to make progress with its brand-building strategy and delivered its seventh consecutive quarter of year-over-year growth. Management raised its fiscal 2026 outlook across key financial metrics, reinforcing confidence in the company’s growth trajectory. Investors have rewarded the improving execution. In the past three months, Wolverine’s stock has jumped 38.2% compared with the Zacks Shoes and Retail Apparel industry’s 0.9% growth. Image Source: Zacks Investment Research Wolverine reported second-quarter revenues of $506.4 million, up 6.8% year over year and 6.1% on a constant currency basis. Revenues exceeded the high end of the company’s outlook, driven by better-than-expected performance across the Active Group and Work Group.Growth was led by the Active Group, whose revenues increased 9.3% to $388.4 million. Merrell revenues increased 11.1% to $175.5 million, while Saucony revenues rose 9.9% to $158.6 million. However, Sweaty Betty revenues declined 2.4% to $40.3 million, while Work Group revenues decreased 1.6% to $105.8 million.International markets remained an important growth driver. International revenues increased 10.9% to $277.2 million, while direct-to-consumer revenues were essentially flat at $111.7 million. Wolverine revenues climbed 6.6% to $39.6 million, supported by stronger key franchises and marketplace improvements.The company delivered healthy earnings growth. Adjusted operating margin increased 80 basis points to 10%, while adjusted earnings per share rose 14.3% to 40 cents from 35 cents in the prior-year quarter. Reported earnings per share increased 15.6% to 37 cents.Wolverine has strengthened its financial position. Cash and cash equivalents increased 12.4% to $158.5 million, while inventory declined 17% to $269.3 million. Net debt decreased 22% to $443 million, providing the company with greater financial flexibility. Management raised its 2026 outlook following stronger-than-expected first-half performance. The company expects revenues to be in the range of $1.98 billion to $2 billion, compared with its previous outlook of $1.96 billion to $1.985 billion. Active Group revenues are expected to increase at a high-single-digit rate, up from the prior mid-single-digit outlook.Saucony’s revenue growth outlook was raised to the mid-teens from the prior low-to-mid-teens range, reflecting continued momentum across categories. Merrell is expected to grow mid-single-digits, while Sweaty Betty is expected to decline at a low-single-digit rate and Wolverine is expected to remain approximately flat.Gross margin is expected to be approximately 46.9% compared with the prior outlook of 46.4%. Adjusted operating margin guidance was raised to approximately 9.9% from 9.5%. Adjusted EPS is projected in the range of $1.55 to $1.65 compared with the previous outlook of $1.43 to $1.58. Operating free cash flow is expected to be $115 million to $130 million, up from $105 million to $120 million previously. Despite the stock's impressive rally, Wolverine continues to trade at an attractive valuation relative to its industry. WWW currently trades at a trailing price-to-sales ratio of 0.88X, below the industry average of 1.39X. The company carries a Value Score of A, suggesting that the stock remains reasonably valued despite its recent gains. Image Source: Zacks Investment Research Wolverine’s diversified portfolio provides a solid foundation for long-term growth, with Merrell, Saucony, Wolverine and Sweaty Betty spanning outdoor, running, work and women’s activewear. Merrell and Saucony together represent approximately two-thirds of the company’s business, while the broader portfolio gives Wolverine exposure to multiple footwear and apparel categories. The company has focused resources on brands aligned with favorable consumer and category trends.Merrell has significant room to expand its outdoor and lifestyle opportunity through product innovation and stronger brand relevance. Its Moab 3 and Moab Speed 2 franchises provide a strong product foundation, while the brand is extending its reach through its key-city strategy and broader lifestyle positioning. Merrell has recorded triple-digit basis-point market share gains in the U.S. hike category, highlighting its potential to capture additional share as it continues to modernize its product portfolio.Saucony offers another meaningful growth opportunity by combining its established running heritage with a broader lifestyle proposition. The brand is expanding its performance portfolio through products such as the Endorphin Elite 3, Triumph 24 and Hurricane 26, while collaborations and lifestyle initiatives are increasing its relevance beyond core running. The planned expansion into apparel, including a women’s capsule collection, could further broaden Saucony’s addressable market and create additional avenues for growth.International expansion represents another structural growth driver, with Wolverine’s brands marketed across approximately 170 countries and territories through owned operations, retailers, distributors, licensees and joint ventures. This extensive distribution infrastructure provides a scalable platform for increasing penetration in underpenetrated markets. The company’s international expertise and partnerships can also support brand expansion without requiring the same level of company-owned infrastructure.The company’s financial flexibility provides additional support for its long-term growth strategy. Wolverine generated $3.4 million in operating cash flow in the first half of 2026 compared with an operating cash outflow of $39.2 million in the prior-year period, while capital expenditures were $4.1 million. The company continues to make debt repayments and maintain dividend payments, providing scope to balance investment in its brands with disciplined capital allocation. The Zacks Consensus Estimate for Wolverine’s current financial year earnings implies year-over-year growth of 20.9%, while the estimate for the next financial year suggests another 13.5% increase.Analysts have become more optimistic following the company’s strong execution. Earnings estimates for 2026 and 2027 have been revised upward by 6 cents each over the past seven days to $1.62 and $1.84, respectively, reflecting improving expectations for the company’s earnings trajectory. Image Source: Zacks Investment Research Wolverine World Wide's strong second-quarter execution, raised 2026 outlook and continued momentum at Merrell and Saucony position the company favorably for continued expansion. Its leading brands provide a solid foundation, while international growth, innovation and improving marketplace execution offer additional avenues for growth.The stock's recent gains demonstrate strong investor interest, while its below-industry price-to-sales multiple and upward earnings estimate revisions provide further support to the investment case. With improving fundamentals, multiple long-term growth opportunities and favorable earnings revisions, Wolverine remains an attractive investment opportunity. The company currently carries a Zacks Rank #2 (Buy). FIGS, Inc. FIGS is an apparel company focused on the healthcare industry. Its offerings include lab coats, jackets, footwear, bags, socks and other accessories used by healthcare professionals. The company carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.The Zacks Consensus Estimate for FIGS’ current financial-year earnings and sales suggests growth of 57.9% and 18.2%, respectively, from the year-ago actuals. FIGS delivered a trailing four-quarter average earnings surprise of 201.8%.Boot Barn Holdings, Inc. BOOT is the largest lifestyle retailer in the United States, specializing in western and work-related footwear, apparel and accessories. The company also holds a Zacks Rank #2 at present. The Zacks Consensus Estimate for Boot Barn’s current fiscal-year earnings and sales suggests growth of 22.6% and 15.7%, respectively, from the year-ago actuals. BOOT delivered a trailing four-quarter average earnings surprise of 11.4%.Fossil Group, Inc. FOSL is involved in designing, marketing and distribution of consumer fashion accessories. It also carries a Zacks Rank #2.The Zacks Consensus Estimate for Fossil Group’s current fiscal-year earnings suggests growth of 96.7% from the year-ago actuals. FOSL delivered a trailing four-quarter average negative earnings surprise of 236.2%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Wolverine World Wide, Inc. (WWW) : Free Stock Analysis Report Boot Barn Holdings, Inc. (BOOT) : Free Stock Analysis Report Fossil Group, Inc. (FOSL) : Free Stock Analysis Report FIGS, Inc. (FIGS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Wolverine World Wide, Inc. WWW reported solid second-quarter 2026 results, with both the top and bottom lines surpassing the Zacks Consensus Estimate. Revenues and earnings increased year over year.The company continued to benefit from strong momentum at its two largest brands, Merrell and Saucony, while progress at Wolverine and Sweaty Betty supported broader portfolio improvement. Management highlighted stronger brand execution, increased consumer demand and market share gains across key categories. The company raised its 2026 outlook, reflecting confidence in its growth trajectory and operating performance. As a result, shares of WWW increased 10% yesterday. Wolverine World Wide, Inc. price-consensus-eps-surprise-chart | Wolverine World Wide, Inc. Quote The company posted adjusted earnings of 40 cents a share, which beat the Zacks Consensus Estimate of 38 cents by 5.3%. The figure improved 14.3% from adjusted earnings of 35 cents in the prior-year quarter. At constant currency, earnings per share were 38 cents, up 8.6% from 35 cents in the prior-year quarter.Total revenues were $506.4 million, up 6.8% year over year on a reported basis. The top line surpassed the Zacks Consensus Estimate of $502 million by 0.8%. Growth was led by Merrell and Saucony, while wholesale revenues advanced 8% on a constant-currency basis.Direct-to-consumer revenues were $111.7 million, essentially flat year over year. WWW’s international business revenues increased 10.9% to $277.2 million.Regarding segments, Active Group revenues increased 9.3% year over year to $388.4 million. However, the segment’s revenues lagged the Zacks Consensus Estimate of $390.8 million. Work Group revenues declined 1.6% to $105.8 million and beat the consensus estimate of $105.7 million. Revenues of the Other segment increased 8.9% to $12.2 million. Also, the metric surpassed the consensus estimate of $11.2 million. Merrell revenues increased 11.1% year over year to $175.5 million or 10.3% on a constant-currency basis. Management cited healthy sell-through in core franchises, including the Moab 3, Moab Speed 2 and Agility Peak 6, along with strong international gains.Saucony revenues increased 9.9% to $158.6 million. The brand gained market share at U.S. run specialty and continued to build momentum across performance and lifestyle categories.Wolverine revenues climbed 6.6% to $39.6 million, supported by stronger key franchises and marketplace improvements.Sweaty Betty revenues declined 2.4% to $40.3 million amid the planned reset of its U.S. business, though management said the brand grew about 3% excluding that reset.The Zacks Consensus Estimate for revenues was pegged at $170.5 million for Merrell, $170.3 million for Saucony, $36.4 million for Wolverine and $39.2 million for Sweaty Betty. Gross profit was $235.3 million, up 5% year over year. Gross margin was 46.5%, down 70 basis points from 47.2% in the prior-year quarter. The decline primarily reflected the impact of higher U.S. tariffs, partially offset by price increases and other tariff mitigation initiatives.Adjusted operating costs increased 2.4% year over year to $184.9 million. As a percentage of revenues, adjusted operating expenses leveraged 40 basis points year over year.Adjusted operating profit increased 14.3% year over year to approximately $50.6 million, while the adjusted operating margin improved 80 basis points to 10%. Cash and cash equivalents were $158.5 million at quarter-end, compared with $141 million a year earlier. Net debt fell 22% year over year to $443 million, while long-term debt stood at $547.1 million.Inventory declined 17% year over year to $269.3 million. For the first half of fiscal 2026, operating cash flow was $3.4 million compared with an outflow of $39.2 million in the prior-year period. For the third quarter, revenues are projected to be between $495 million and $500 million, indicating approximately 5.8% reported growth at the midpoint versus the prior-year quarter. On a constant-currency basis, revenues are expected to increase 6.5% at the midpoint. The Active Group is anticipated to deliver high-single-digit growth, while the Work Group is expected to remain approximately flat year over year.The third-quarter gross margin is expected to be approximately 47.4%, down 10 basis points from the prior year. The outlook reflects an estimated unmitigated tariff impact of 180 basis points and a modest headwind from higher oil prices on freight costs. These pressures are expected to be largely offset by mitigation actions and other business initiatives.The adjusted operating margin is projected to be approximately 10.4%, an improvement of 130 basis points year over year, as revenue growth and disciplined cost management are expected to more than offset the impact of higher tariffs and elevated oil prices on gross margin. As a result, adjusted earnings per share are expected to range from 42 cents to 45 cents compared with 36 cents in the prior-year quarter. Wolverine Worldwide raised its 2026 revenue outlook to $1.98-$2 billion from the previous range of $1.96-$1.985 billion. The updated guidance represents reported revenue growth of approximately 6.2% at the midpoint. The company maintained its foreign currency assumption of an estimated $14 million benefit compared with the prior year.Fiscal 2025 included a 53rd week in the fourth quarter, which contributed approximately 70 basis points to full-year revenue growth, primarily within the direct-to-consumer business. Excluding the 53rd week and on a constant-currency basis, WWW expects revenues to increase approximately 6.1% at the midpoint. On a constant-currency basis, Active Group revenues are expected to increase at a high-single-digit rate, up from the prior mid-single-digit growth outlook. Work Group revenues are expected to remain approximately flat compared with 2025.At the brand level, the company raised its Saucony growth outlook to the mid-teens compared with the high end of its previous low- to mid-teens range. The company continues to expect Merrell revenues to grow at a mid-single-digit rate, while Sweaty Betty is expected to decline at a low-single-digit rate and Wolverine is projected to remain approximately flat compared with 2025.Gross margin is expected to be approximately 46.9%, up from the prior outlook of 46.4%. The improvement primarily reflects stronger marketplace execution, supply chain efficiencies and modestly lower tariffs. The updated guidance assumes existing tariff rates remain in place for the balance of 2026, reducing the estimated unmitigated tariff impact by approximately $2 million compared with the previous outlook. The guidance excludes any refund related to the $36 million of IEEPA tariffs previously paid. Adjusted operating margin is projected to be approximately 9.9%, compared with the prior outlook of 9.5%. The improvement reflects higher gross margin and meaningful operating leverage, partly offset by strategic investments in brands and key capabilities. As a result, adjusted earnings per share are expected to range from $1.55 to $1.65 compared with the previous range of $1.43-$1.58. WWW raised its operating free cash flow outlook to $115-$130 million from $105-$120 million previously. Capital expenditures are expected to remain approximately $20 million. WWW Stock Past Three-Month Performance Image Source: Zacks Investment Research Over the past three months, shares of this Zacks Rank #3 (Hold) company have gained 30.3% compared with the industry’s 1.3% growth. FIGS, Inc. FIGS is an apparel company focused on the healthcare industry. Its offerings include lab coats, jackets, footwear, bags, socks and other accessories used by healthcare professionals. The company carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.The Zacks Consensus Estimate for FIGS’ current financial-year earnings and sales suggests growth of 57.9% and 18.2%, respectively, from the year-ago actuals. FIGS delivered a trailing four-quarter average earnings surprise of 201.8%.Boot Barn Holdings, Inc. BOOT is the largest lifestyle retailer in the United States, specializing in western and work-related footwear, apparel and accessories. The company also holds a Zacks Rank #2 at present. The Zacks Consensus Estimate for Boot Barn’s current fiscal-year earnings and sales suggests growth of 22.6% and 15.7%, respectively, from the year-ago actuals. BOOT delivered a trailing four-quarter average earnings surprise of 11.4%.Deckers Outdoor Corporation DECK is a designer, producer and brand manager of footwear, apparel and accessories for outdoor sports, performance activities and lifestyle use. It also carries a Zacks Rank #2.The Zacks Consensus Estimate for Deckers’ current fiscal-year earnings and sales suggests growth of 6.8% and 7.9%, respectively, from the year-ago actuals. DECK delivered a trailing four-quarter average earnings surprise of 15.2%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Wolverine World Wide, Inc. (WWW) : Free Stock Analysis Report Deckers Outdoor Corporation (DECK) : Free Stock Analysis Report Boot Barn Holdings, Inc. (BOOT) : Free Stock Analysis Report FIGS, Inc. (FIGS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Dillard's Inc. DDS delivered second-quarter fiscal 2026 results, wherein it surpassed the Zacks Consensus Estimate for earnings but fell slightly short on revenues. The company reported second-quarter fiscal 2026 earnings of $6.25 per share, which beat the Zacks Consensus Estimate of $4.04 by 54.7% and increased 34.1% year over year from $4.66.Net sales declined 0.4% year over year to $1.51 billion and missed the consensus mark of $1.52 billion by 0.7%.Shares of the Zacks Rank #3 (Hold) company have risen 13.9% in the past three months compared with the industry's 25.9% rally. Image Source: Zacks Investment Research DDS generated total retail sales of $1.455 billion in the fiscal second quarter compared with $1.447 billion in the prior-year quarter. Comparable store sales increased 1% for the same period. Our model had anticipated comps to rise 0.7% for the fiscal second quarter.Sales growth varied across merchandise categories. Ladies’ accessories and lingerie posted significant increases, while home and furniture delivered moderate growth. Shoes, men’s apparel and accessories, and cosmetics recorded slight increases, whereas juniors’ and children’s apparel and ladies’ apparel declined moderately. The company continued operating its store network of 272 Dillard’s locations, including 28 clearance centers, across 30 states, along with its internet store. Dillard's, Inc. price-consensus-eps-surprise-chart | Dillard's, Inc. Quote Dillard’s posted net income of $97.7 million, up from $72.8 million in the year-ago quarter. The company benefited from a retail gross margin of 40.9% of sales compared with 38.1% in the prior-year period.The retail gross margin included a positive impact of 260 basis points (bps) from $37.2 million in refunds related to International Emergency Economic Powers Act tariffs. Management does not expect additional significant IEEPA tariff refunds.The company’s consolidated gross margin improved to 39.7% of sales from 36.6% a year ago. The improvement helped offset higher operating expenses in the period. Our model anticipated a 20-bps expansion in the consolidated gross margin to 36.8%. Dillard’s reported operating expenses (SG&A) of $443.6 million compared with $434.2 million in the year-ago quarter. As a percentage of sales, operating expenses increased 70 bps year over year to 29.4% from 28.7% in the year-ago quarter.The increase was primarily driven by higher payroll and payroll-related expenses. Despite the cost pressure, stronger merchandise margins supported profitability and helped the company expand net income.We had expected a 130-bps increase in operating expenses, as a percentage of sales. DDS ended the quarter with cash and cash equivalents of $763.1 million, and short-term investments of $497.7 million. The company also reported merchandise inventories of $1.28 billion, up from $1.22 billion a year ago.The company paid off $96 million in debt in the first half of fiscal 2026. Long-term debt stood at $145.7 million at the end of the quarter compared with $225.6 million in the prior-year period.Stockholders’ equity increased to $2.12 billion from $1.92 billion a year ago. The stronger balance sheet provides additional financial flexibility as the company continues its operations and capital investments. Dillard’s maintained its fiscal 2026 outlook for certain financial statement items. The company expects depreciation and amortization of $175 million, rentals of $18 million, and net interest and debt income of $9 million for the 52 weeks ending Jan. 30, 2027.Capital expenditure is projected to be $120 million for fiscal 2026, whereas it reported $93 million in fiscal 2025. The company continues to evaluate spending plans based on current operating conditions. Macy's Inc. M is an omnichannel retail organization operating stores, websites and mobile applications under three nameplates: Macy’s, Bloomingdale’s and Bluemercury. The company currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. The Zacks Consensus Estimate for Macy's current financial-year sales and earnings indicates a decline of 0.01% and 5.6%, respectively, from the year-ago numbers. Macy's delivered a trailing four-quarter earnings surprise of 211%, on average.Urban Outfitters Inc. URBN is a lifestyle products and services company that sells fashion apparel, accessories, footwear, home goods and related offerings through a portfolio of global consumer brands. The company currently carries a Zacks Rank of 2. The Zacks Consensus Estimate for Urban Outfitters’ current financial-year sales and earnings indicates growth of 8.8% and 12.7%, respectively, from the year-ago reported numbers. URBN delivered a trailing four-quarter earnings surprise of 12.2%, on average. Boot Barn Holdings, Inc. BOOT is the largest lifestyle retailer in the United States, specializing in western and work-related footwear, apparel and accessories. The company currently carries a Zacks Rank of 2.The Zacks Consensus Estimate for Boot Barn’s current financial-year sales and earnings is expected to rise 15.7% and 22.6%, respectively, from the year-ago reported figures. BOOT delivered a trailing four-quarter earnings surprise of 11.4%, on average. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report Macy's, Inc. (M) : Free Stock Analysis Report Urban Outfitters, Inc. (URBN) : Free Stock Analysis Report Boot Barn Holdings, Inc. (BOOT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). 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