VSCO

Burlington Stores, Inc. BURL reported impressive first-quarter fiscal 2026 results, wherein revenues and earnings grew year over year. Also, the top and bottom lines surpassed the Zacks Consensus Estimate. The off-price retailer benefited from broad-based comparable sales growth, merchandise margin expansion and continued supply-chain productivity improvements, enabling the company to post its 14th consecutive quarter of double-digit earnings growth.Management highlighted strong execution across merchandising, inventory management and store operations, with particular strength in ladies apparel, beauty and accessories. Burlington Stores also benefited from improved allocation and localization capabilities, which helped the company capitalize on warm-weather demand trends during the quarter.Despite the strong performance and an increase in the fiscal 2026 guidance, investors reacted negatively to the results, sending shares down 7.9% following the announcement. The decline likely reflected elevated investor expectations heading into the release, as well as caution surrounding the company's modest fiscal second-quarter comparable sales guidance and broader consumer spending uncertainties. Burlington Stores, Inc. price-consensus-eps-surprise-chart | Burlington Stores, Inc. Quote Burlington Stores reported adjusted earnings of $2.01 per share, comfortably beating the Zacks Consensus Estimate of $1.77. Adjusted EPS increased 25.6% from $1.60 in the year-ago quarter. Total revenues increased 14.1% year over year to $2.86 billion and exceeded the Zacks Consensus Estimate of $2.81 billion. Net sales rose 14% to $2.85 billion from $2.50 billion in the prior-year period.Comparable store sales increased 6%, significantly ahead of management’s guidance of 2-4%. According to management, comps growth was broad-based across merchandise categories and geographic regions, reflecting healthy consumer demand and effective execution of Burlington Stores’ off-price model. Our model anticipated a 3.5% year-over year rise in comparable store sales for the fiscal first quarter. The gross margin expanded 30 basis points year over year to 44.1% in the first quarter of fiscal 2026. This also surpassed our estimate for gross margin of 43.5%. The improvement was driven by a 20-basis-point increase in the merchandise margin and a 10-basis-point reduction in freight expenses as a percenta...

American Eagle Outfitters, Inc. AEO reported solid first-quarter fiscal 2026 results wherein both the top and bottom lines surpassed the Zacks Consensus Estimate. Meanwhile, revenues increased from the prior-year figures.AEO posted earnings of 14 cents per share in the fiscal first quarter, surpassing the Zacks Consensus Estimate of 11 cents. American Eagle Outfitters, Inc. price-consensus-eps-surprise-chart | American Eagle Outfitters, Inc. Quote The company benefited from strong demand across its portfolio, led by continued momentum at Aerie, which delivered standout multi-channel performance and profitability. Management credited compelling product assortments and the ongoing resonance of the “100% Aerie REAL” campaign for deepening customer connection and supporting growth. Total net revenues of $1.20 billion jumped 10% year over year and surpassed the Zacks Consensus Estimate of $1.18 billion. This was backed by consolidated comparable sales (comps) and positive results across Aerie brand. Comps edged up 8% in the quarter. Our model predicted positive comps of 7.4% for the fiscal first quarter.Brand-wise, revenues inched down 2.2% year over year to $678.5 million at the American Eagle brand. Also, comps for the brand declined 2%.Revenues jumped 33.6% year over year to $480.8 million for the Aerie brand. Comps for the Aerie brand rose 25%. We expected sales growth of 4.1% year over year at the American Eagle brand and a 13.3% rise at Aerie for the reported quarter. Gross profit inched up 41% year over year to $456 million. The gross margin of 38.2% expanded 860 basis points (bps) from the prior-year period, reflecting a meaningfully stronger merchandise margin profile and better cost leverage. The gain was mainly driven by a 710-basis-point lift in merchandise margins, largely because the prior-year period included a $75 million inventory write-down. In addition, buying, occupancy and warehousing (BOW) costs improved by 150 bps, helped by higher sales and ongoing cost-optimization efforts.Selling, general and administrative (SG&A) expenses increased 11% year over year to $376 million. As a percentage of sales, SG&A expenses increased 40 bps year over year. The increase was led by planned investments in advertising, somewhat offset by leverage in the rest of the expense base.Operating income came in at $28 million, a notable improvement from an operating...

Bath & Body Works BBWI posted first-quarter fiscal 2026 results, wherein the top and bottom lines surpassed the Zacks Consensus Estimate. However, sales and adjusted earnings declined year over year, reflecting persistent pressure from cautious consumer spending, category mix challenges and tariff-related cost inflation. Management noted that underlying business trends remained consistent with the softness seen in recent quarters.Despite the pressured environment, the company highlighted encouraging progress from its Consumer First Formula strategy, which is designed to drive sustainable long-term growth. The initiative focuses on strengthening hero categories, accelerating disruptive product innovation, modernizing the brand, improving digital and marketplace capabilities, and operating with greater speed and efficiency.Management stated that early proof points from these efforts are beginning to resonate with consumers and expects momentum to build through the remainder of 2026 and into 2027. As a result, BBWI shares gained 9.7% yesterday. Bath & Body Works, Inc. price-consensus-eps-surprise-chart | Bath & Body Works, Inc. Quote Bath & Body Works reported adjusted earnings of 32 cents per share in the fiscal first quarter, surpassing the Zacks Consensus Estimate of 29 cents. However, adjusted earnings declined 34.7% from 49 cents in the year-ago quarter.Net sales declined 3.2% year over year to $1,378 million but exceeded the Zacks Consensus Estimate of $1,370 million. Performance reflected softer demand trends across several categories, partially offset by growth in soaps, sanitizers and international markets.Net sales for Stores - U.S. and Canada declined 4.3% year over year to $1.06 billion, which met the Zacks Consensus Estimate. Direct - U.S. and Canada net sales slipped 1.5% year over year to $246 million, surpassing the consensus estimate of $228.3 million. Management noted that normalized for the free shipping threshold change, stores and digital performed comparably during the first quarter. Buy Online, Pickup In Store represented approximately 20% of the total direct demand.International and Other net sales increased 9% year over year to $70 million, which includes domestic third-party wholesale revenues. This surpassed the Zacks Consensus Estimate of $68.1 million. International net sales increased 5%, while system-wide retail sales rose 11% dur...

Dollar Tree, Inc. DLTR posted solid first-quarter fiscal 2026 results, wherein the top and bottom lines surpassed the Zacks Consensus Estimate. Both metrics increased year over year. Quarterly results benefited from stronger comparable-store sales and improved margins, supported by better product markups, lower freight costs and reduced shrinkage.Dollar Tree’s adjusted earnings per share (EPS) from continuing operations jumped 38% year over year to $1.74 and beat the Zacks Consensus Estimate of $1.53. Dollar Tree, Inc. price-consensus-eps-surprise-chart | Dollar Tree, Inc. Quote Shares of Dollar Tree climbed more than 15% in the pre-market session following stronger-than-expected first-quarter results and upbeat investor sentiment around margin improvement and comparable-store sales growth. Shares of this Zacks Rank #3 (Hold) company have gained 5.9% in the past year compared with the industry’s 12.6% growth. Image Source: Zacks Investment Research Net sales increased 7.2% year over year to $4.97 billion and surpassed the Zacks Consensus Estimate of $4.96 billion. Same-store sales (comps) grew 3.5% year over year. The company’s comps benefited from a 4.5% increase in the average ticket, partly offset by 1% lower traffic.Profitability improved meaningfully as gross profit margin expanded 120 basis points (bps) year over year. Management attributed the increase primarily to higher mark-on, lower freight costs and lower shrink, which more than offset higher tariff costs and higher markdowns. We estimated a year-over-year increase of 6.5% in gross profit and a 20-bps contraction in the gross margin.Selling, general and administrative (SG&A) costs were 27.8% of sales, up 50 bps from the year-earlier quarter. The increase was mainly reflecting higher marketing and general liability spending as well as greater depreciation, partly offset by lower payroll costs. On an adjusted basis, SG&A, including net transition services agreement income, increased 10 basis points as a share of total revenue.Adjusted operating income jumped 22% year over year to $473.3 million. The operating margin rose 110 basis points to 9.5%. Dollar Tree ended the fiscal first quarter with cash and cash equivalents of $1 billion, no borrowings under its credit facilities and no commercial paper outstanding. It had a net long-term debt, excluding the current portion, of $2.93 billion and shareho...

DICK'S Sporting Goods, Inc. DKS posted first-quarter fiscal 2026 results, wherein the top line beat the Zacks Consensus Estimate and increased year over year. However, earnings missed the consensus mark and declined from the prior-year quarter. The company delivered a strong first-quarter fiscal 2026 performance, with net sales rising sharply year over year and beating the Zacks Consensus Estimate, supported by continued momentum in the core DICK’S business and contributions from the Foot Locker acquisition. However, profitability was softer, as non-GAAP earnings declined from the prior-year quarter and missed estimates despite healthy comparable sales growth across the business.The company reported adjusted earnings of $2.90 per share in the fiscal first quarter, lagging the Zacks Consensus Estimate of $2.91 and declining from $3.37 recorded in the year-ago quarter. DICK'S Sporting Goods, Inc. price-consensus-eps-surprise-chart | DICK'S Sporting Goods, Inc. Quote Net sales of $5.17 billion increased 62.7% year over year and surpassed the consensus estimate of $5.06 billion. The upside was driven by the addition of the Foot Locker business, along with continued strength in the core DICK’S business. Consolidated comps for DICK'S Business grew 6% year over year, on growth in average ticket and transactions and broad-based momentum across footwear, apparel and hardlines.Results reflected the inclusion of the Foot Locker business and the dilutive impact of shares issued for the acquisition, while core demand stayed healthy. Pro forma consolidated comparable sales increased 4.1% in the quarter. Gross profit rose 44.5% year over year to $1.68 billion and came in line with our estimates. Meanwhile, the gross margin contracted 411 bps.The SG&A expense rate of 22.5% fell 220 bps year over year. SG&A expenses, in dollar terms, grew almost 48.2% year over year to $1.16 billion and were lower than our estimate of $1.31 billion. DICK’S Sporting ended the fiscal first quarter with cash and cash equivalents of $998.3 million. Inventories totaled $5.42 billion, up 52%, reflecting the addition of Foot Locker inventory, while long-term debt and financing lease obligations stood at $1.91 billion.This Zacks Rank #3 (Hold) company repurchased 0.7 million shares under its share repurchase program for $141.2 million in the first quarter of fiscal 2026. It had $3 billion remaining...

Capri Holdings Limited CPRI delivered fourth-quarter fiscal 2026 results, with revenues missing the Zacks Consensus Estimate and declining year over year. However, earnings surpassed the consensus estimate and improved significantly from the prior-year quarter. Management highlighted that strategic initiatives introduced last year are gaining traction, with improving trends visible across both Michael Kors and Jimmy Choo. The company noted that actions taken to strengthen product innovation, brand desirability and consumer engagement are resonating well with consumers, providing early validation of its transformation efforts. Capri Holdings also emphasized that fiscal 2026 was focused on stabilizing the business and building a stronger foundation for long-term growth. Looking ahead, management expressed confidence in returning to revenue and earnings growth in fiscal 2027, projecting low-single-digit revenue growth and nearly 40% earnings-per-share growth. Longer term, the company aims to grow Michael Kors revenues to $4 billion and Jimmy Choo revenues to $800 million while significantly improving profitability and delivering sustainable long-term shareholder value. Capri Holdings Limited price-consensus-eps-surprise-chart | Capri Holdings Limited Quote Capri Holdings reported adjusted earnings of 22 cents per share for the fourth quarter, which surpassed the Zacks Consensus Estimate of 11 cents. The bottom line improved significantly from an adjusted loss of $4.55 per share reported in the year-ago period. On a reported basis, the company posted a loss of one cent per share compared with a loss of $4.90 in the prior-year quarter. Total revenues came in at $796 million, missing the Zacks Consensus Estimate of $804 million. The top line declined 3.7% year over year on a reported basis and 7% on a constant-currency basis.By geography, The Americas remained the largest region but was also the main drag, with revenues of $433 million compared with $493 million in the year-ago quarter. EMEA improved to $246 million from $223 million, while Asia edged up to $117 million from $111 million, partially offsetting softness in the Americas.Gross profit increased to $516 million from $495 million in the year-ago quarter. Gross margin expanded 490 basis points to 64.8%, aided by a $40 million reduction in the cost of goods sold tied to estimated IEEPA tariff refunds. Oper...

COLUMBUS, Ohio (AP) — COLUMBUS, Ohio (AP) — Bath & Body Works, Inc. (BBWI) on Wednesday reported fiscal first-quarter earnings of $183 million. On a per-share basis, the Columbus, Ohio-based company said it had net income of 90 cents. Earnings, adjusted for non-recurring gains and pretax gains, came to 32 cents per share. The results topped Wall Street expectations. The average estimate of seven analysts surveyed by Zacks Investment Research was for earnings of 29 cents per share. The owner of Victoria's Secret, Bath & Body Works and other chain stores posted revenue of $1.38 billion in the period, which also topped Street forecasts. Five analysts surveyed by Zacks expected $1.36 billion. Bath & Body Works expects full-year earnings in the range of $2.40 to $2.65 per share. Bath & Body Works shares have decreased 12% since the beginning of the year. The stock has decreased 41% in the last 12 months. _____ This story was generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on BBWI at https://www.zacks.com/ap/BBWI

Bath & Body Works (BBWI) came out with quarterly earnings of $0.32 per share, beating the Zacks Consensus Estimate of $0.29 per share. This compares to earnings of $0.49 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +10.80%. A quarter ago, it was expected that this owner of Victoria's Secret, Bath & Body Works and other chain stores would post earnings of $1.77 per share when it actually produced earnings of $2.05, delivering a surprise of +15.82%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Bath & Body Works, which belongs to the Zacks Retail - Miscellaneous industry, posted revenues of $1.38 billion for the quarter ended April 2026, surpassing the Zacks Consensus Estimate by 1.01%. This compares to year-ago revenues of $1.42 billion. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Bath & Body Works shares have lost about 11.7% since the beginning of the year versus the S&P 500's gain of 9.8%. While Bath & Body Works has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Bath & Body Works was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market i...

Victoria's Secret (VSCO) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended April 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price. The earnings report, which is expected to be released on June 2, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower. While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise. This retailer of lingerie, pajamas and beauty products is expected to post quarterly earnings of $0.29 per share in its upcoming report, which represents a year-over-year change of +222.2%. Revenues are expected to be $1.53 billion, up 12.9% from the year-ago quarter. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model'...

Ross Stores, Inc. ROST reported first-quarter fiscal 2026 results, with earnings and sales surpassing the Zacks Consensus Estimate. Net sales and earnings per share (EPS) also increased from the prior-year period.Ross Stores posted first-quarter earnings of $2.02 per share, beating the Zacks Consensus Estimate of $1.70 and exceeding the company’s guidance of $1.60 to $1.67. The bottom line rose 37% from $1.47 per share in the prior-year period. Ross Stores, Inc. price-consensus-eps-surprise-chart | Ross Stores, Inc. Quote Total sales reached $6 billion, rising 21% year over year and beating the Zacks Consensus Estimate of $5.6 billion. Comparable store sales (comps) increased 17% year over year, driven by an increase in the number of transactions.We expected comps growth of 5% in the first quarter of fiscal 2026.Ross Stores' stock gained more than 5% in after-hours trading yesterday following the off-price retailer's report of better-than-expected first-quarter fiscal 2026 results, and it raised its full-year outlook. Investor sentiment was boosted by the company’s strong earnings beat and improved fiscal 2026 EPS guidance. The upbeat results reflected strong customer traffic, compelling merchandise assortments, successful Spring product transitions, effective marketing initiatives and an enhanced in-store shopping experience, signaling continued momentum in ROST’s underlying business fundamentals.Shares of the Zacks Rank #3 (Hold) company have gained 7.6% in the past three months compared with the industry's 4% growth. Image Source: Zacks Investment Research Cost of goods sold (COGS) rose 18.1% year over year to $4.2 billion. COGS, as a percentage of sales, declined 145 basis points (bps) year over year. The company’s merchandise margin improved by 85 basis points, while occupancy costs as a percentage of sales decreased by 60 basis points due to strong sales growth.Our model predicted COGS to increase 7.8% year over year and contract 10 bps to 71.7%, as a percentage of sales, in the fiscal first quarter.Distribution and domestic freight costs fell by 15 and 10 bps, respectively. However, these gains were partly offset by a 25-basis-point increase in buying costs and SG&A expenses, mainly due to higher incentive compensation following the company’s strong earnings performance. Marketing and store-related costs improved as a percentage of sales.The company’s...

Deckers Outdoor Corporation DECK reported fourth-quarter fiscal 2026 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate. DECK reported earnings of 96 cents per share, down 4% year over year but surpassed the Zacks Consensus Estimate of 81 cents by 18.5%. Net sales increased 9.6% year over year to $1,119.4 million and topped the consensus estimate of $1,082 million by 3.4%. On a constant-currency basis, net sales grew 7.7% year over year.The company delivered record fourth-quarter revenues driven by continued momentum in the HOKA brand, strong UGG demand, robust international growth and disciplined full-price selling across channels. Management highlighted that strategic investments in innovation, brand marketing and marketplace execution continue to strengthen Deckers’ competitive positioning while supporting long-term profitable growth. As a result, shares of the company gained 4.6% yesterday. Deckers Outdoor Corporation price-consensus-eps-surprise-chart | Deckers Outdoor Corporation Quote The HOKA brand continued to deliver strong momentum in the fourth quarter, with net sales increasing 14.5% year over year to $671.2 million, exceeding our projected $665.5 million. Growth was driven by robust demand across both direct-to-consumer and wholesale channels, supported by healthy gains in the U.S. and international markets. Management highlighted that the performance reflected growing consumer adoption of HOKA’s innovative performance and lifestyle offerings, continued success of franchise families such as Bondi, Clifton and Mafate, as well as disciplined marketplace management that supported high levels of full-price selling. The brand also benefited from strong international demand and accelerating consumer awareness globally.The UGG brand also delivered solid fourth-quarter results, with net sales increasing 9.2% year over year to $408.6 million, beating our estimate of $373.2 million. Growth was primarily driven by strength in the direct-to-consumer channel, seasonal product extensions and continued traction from newer categories including sneakers, sandals and clogs. Management noted strong consumer engagement across the global marketplace, supported by successful product launches such as the Lowmel sneaker and Golden collection, which further reinforced UGG’s positioning as a premium lifestyle brand.Meanwhile, net sales fo...

Victoria's Secret’s 32.2% return over the past six months has outpaced the S&P 500 by 19%, and its stock price has climbed to $44.69 per share. This was partly due to its solid quarterly results, and the run-up might have investors contemplating their next move. Is there a buying opportunity in Victoria's Secret, or does it present a risk to your portfolio? Get the full breakdown from our expert analysts, it’s free. We’re glad investors have benefited from the price increase, but we're sitting this one out for now. Here are three reasons there are better opportunities than VSCO and a stock we'd rather own. A company’s long-term sales performance can indicate its overall quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Over the last three years, Victoria's Secret grew its sales at a sluggish 1.1% compounded annual growth rate. This was below our standards. Operating margin is an important measure of profitability for retailers as it accounts for all expenses necessary to run a store, including wages, inventory, rent, advertising, and other administrative costs. Victoria's Secret’s operating margin has generally stayed the same over the last 12 months, averaging 4.5% over the last two years. This profitability was lousy for a consumer retail business and caused by its suboptimal cost structureand low gross margin. Analyzing the long-term change in earnings per share (EPS) shows whether a company's incremental sales were profitable – for example, revenue could be inflated through excessive spending on advertising and promotions. Sadly for Victoria's Secret, its EPS declined by 16.2% annually over the last three years while its revenue grew by 1.1%. This tells us the company became less profitable on a per-share basis as it expanded. Victoria's Secret’s business quality ultimately falls short of our standards. With its shares beating the market recently, the stock trades at 12.9× forward P/E (or $44.69 per share). This valuation is reasonable, but the company’s shakier fundamentals present too much downside risk. We're pretty confident there are more exciting stocks to buy at the moment. We’d suggest looking at one of our top digital advertising picks. WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don't just beat the market once. They do it again. And again. Robust revenue growth...