Shops that focus on clothing and fashion — chains selling everyday wear, sportswear and accessories like Zara and H&M.
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Abercrombie & Fitch Fair Value Raised to US$163.55 as Analysts Lift Targets
Abercrombie & Fitch's modeled fair value has been lifted from US$122.00 to US$163.55, a roughly 34% increase, alongside a wave of analyst price target changes. BMO Capital initiated coverage at Outperform with a US$170 target, Argus moved to Buy with a US$162 target after Q2 results, and UBS, Jefferies and Goldman Sachs raised their targets to US$153, US$135 and US$124 respectively. Barclays upgraded to Equal Weight with a US$114 target, citing reduced tariff pressure and healthier promotions, while Raymond James stepped back to Market Perform without a target, flagging mixed same store sales. The updated model raised the revenue growth assumption from 3.68% to 4.84%, the net profit margin assumption from 8.57% to 8.99%, and the future P/E multiple from 11.53x to 12.95x, while cutting the discount rate from 8.84% to 8.67%.
Boot Barn Says BOPIS and Ship-to-Store Lift Store Traffic as E-Commerce Comps Rise 13.4%
Boot Barn Holdings said its buy online, pick up in store and ship-to-store services are driving store traffic and supporting merchandise margins, as e-commerce comparable sales rose 13.4% in its fiscal first-quarter 2027 on double-digit growth on the company's website. Management said a large portion of e-commerce orders are fulfilled from its more than 550 stores, calling omnichannel capabilities a meaningful competitive advantage consistent with its stores-first strategy. In the quarter, consolidated same-store sales increased 4.7% while brick-and-mortar same-store sales grew 3.8%, supported by a 3% increase in average unit retail with transactions approximately flat. The company also said its exclusive-brand websites attract millions of sessions, though it acknowledged that attributing website visits to subsequent store visits is difficult. Separately, American Eagle Outfitters said Aerie was showing strength across stores and digital quarter-to-date, while Deckers Outdoor reported first-quarter direct-to-consumer revenues up 13%, including 17% growth at HOKA and 6% at UGG.
BOOT · Demand · Positive Boot Barn's BOPIS and ship-to-store drove store traffic as e-commerce comps rose 13.4% and consolidated same-store sales grew 4.7%.
AEO · Demand · Positive American Eagle said Aerie was showing strength across stores and digital quarter-to-date.
DECK · Demand · Positive Deckers reported first-quarter direct-to-consumer revenues up 13%, with 17% growth at HOKA and 6% at UGG.
Uniqlo September Same-Store Sales in Japan Rise 10.8% on Strong Autumn/Winter Goods
Fast Retailing announced on the 2nd that Uniqlo's same-store sales in Japan for September rose 10.8% compared with the same month a year earlier. Temperatures fell in September, and sales of autumn/winter goods were strong. While customer traffic slipped 0.5%, the average spend per customer climbed sharply, up 11.3%.
9983.JP · Demand · Positive Uniqlo Japan September same-store sales rose 10.8% on strong autumn/winter goods demand, with average spend per customer up 11.3%.
American Eagle Posts 1% Revenue Rise as Store Traffic Becomes Recovery Focus
American Eagle Outfitters reported a 1% year-over-year increase in total revenues for the second quarter of fiscal 2026, while comparable sales declined 1%, an improvement from the fiscal first quarter. Management said the men's business delivered its fourth consecutive quarter of positive comparable sales, women's bottoms improved, and newer denim fits gained strong customer acceptance, though the namesake brand still had work to do. Store traffic is emerging as a key metric in the recovery, with management noting stores remained on the lower side of performance while digital was stronger, and store trends improved in the fiscal third quarter. The company is shifting marketing spending toward conversion-focused tactics after four quarters of building brand awareness, targeting store traffic and conversion against that traffic, and is working through older seasonal inventory while rebalancing denim toward low-rise and other fits gaining traction. AEO shares have gained 8% over the past six months against the industry's decline of 10.6%, and the stock trades at a forward price-to-earnings ratio of 8.85X versus the industry's average 12.24X, with the Zacks Consensus Estimate implying current fiscal-year earnings growth of 49.3% and a decline of 15.2% next fiscal year.
Abercrombie & Fitch Plans 130 Net New Store Experiences for Fiscal 2026
Abercrombie & Fitch Co. expects to deliver approximately 130 net new store experiences in fiscal 2026, comprising 50 new stores and 80 remodels and rightsizes against roughly 20 closures. The new stores are expected to be relatively balanced across the Abercrombie and Hollister brands and weighted toward the Americas. Management noted that 2026 marks the company's fifth consecutive year as a net store opener, and said the recently opened Abercrombie SoHo location has performed above expectations, with elements of that concept to be incorporated into additional stores over time. The initiative complements ANF's broader push to expand through digital channels, partnerships and new product categories, though the company said execution will be key as it balances expansion spending with healthy profitability and disciplined capital allocation. Shares of the Zacks Rank #1 (Strong Buy) company have jumped 46% in the past six months, outperforming the industry and the broader Retail-Wholesale sector, which fell 6.1% and 0.7%, respectively.
ANF · Demand · Positive ANF plans ~130 net new store experiences in fiscal 2026, including 50 new stores and 80 remodels, expanding its retail footprint.
Abercrombie & Fitch is rated Zacks Rank #1 (Strong Buy), with the consensus earnings estimate for the current fiscal year at $11.42 per share, up 15.8% year over year and revised 0.3% higher over the last 30 days. For the current quarter, the company is expected to post earnings of $3.01 per share, a year-over-year change of +27.5%, with the Zacks Consensus Estimate up 0.8% over the past month. Next fiscal year's consensus estimate of $12.41 indicates a change of +8.6% from what Abercrombie is expected to report a year ago, and that estimate has moved +0.9% over the past month. Revenue is forecast at $1.37 billion for the current quarter, up 5.9% year over year, while current and next fiscal year sales estimates of $5.52 billion and $5.79 billion each indicate +4.8% changes. In the last reported quarter, Abercrombie posted revenues of $1.27 billion, up 4.8% year over year, and EPS of $2.42 versus $2.32 a year ago, beating the Zacks Consensus revenue estimate of $1.24 billion by 1.94% and the EPS estimate by 24.1%.
Workman September same-store sales rise 20.7% year on year, rain-related products strong
Workman announced on the 1st that its same-store sales in September rose 20.7% compared with the same month a year earlier. Rain-related products such as rainwear performed strongly due to the effects of typhoons and the autumn rain front, and recovery wear, for which the company launched new products, was also solid. Meanwhile, autumn and winter products were sluggish because the rollout was delayed as a measure against the lingering summer heat. Same-store customer traffic rose 6.4% year on year, and spending per customer rose 13.5%.
7564.JP · Demand · Positive September same-store sales rose 20.7% on strong rainwear and recovery wear demand, with traffic up 6.4% and spend per customer up 13.5%.
TJX Adds United Rentals Executive to Board, Declares $0.48 Dividend, Raises Store Target to 7,500
The TJX Companies, Inc. has added Craig A. Pintoff, Executive Vice President and Chief Administrative Officer of United Rentals, Inc., to its Board and Audit and Finance Committee, and declared a US$0.48 per-share quarterly dividend payable on December 3, 2026. Alongside the board refresh and continued dividend payments, TJX is accelerating its global expansion plans by raising its long-term store target by 500 locations to 7,500, underscoring management's confidence in the performance of new store formats across rural, urban, and established markets. The company's narrative projects $74.8 billion in revenue and $7.2 billion in earnings by 2029, requiring 6.3% yearly revenue growth and about a $1.1 billion earnings increase from $6.1 billion today. Some of the most optimistic analysts were expecting TJX to reach about US$78.3 billion in revenue and US$7.3 billion in earnings, a far more upbeat view than consensus. Rising labor and operating costs remain a key risk to margin resilience as the retailer expands its footprint.
Taiyo Yuden and TDK Form Business Alliance; Ito En to Abolish Shareholder Benefits
Among the individual announcements made on the 29th, Taiyo Yuden revealed that it will sign a business alliance agreement with TDK covering joint development of electronic components and other areas. Sekichu raised its standalone operating profit forecast for the fiscal year ending February 2027, while Ito En will abolish its shareholder benefit program. Honey's Holdings posted a sharp profit decline in its consolidated results for the first quarter of the fiscal year ending May 2027, covering June to August 2026. BB Tower won a large order from a global IP company for storage products and maintenance services, with the order value at approximately 3.8 billion yen. Bank Innovate announced a consolidated operating profit forecast of 2.02 billion yen for the fiscal year ending September 2026, down 6.2 percent from the previous year, figures it had previously left undisclosed, and Nifco announced it will cancel treasury shares equivalent to 9.78 percent of its total issued shares, effective October 7.
Stitch Fix Posts Sixth Straight Quarter of Revenue Growth as Client Base Shrinks
Stitch Fix reported its sixth consecutive quarter of positive revenue growth on September 23, 2026, with fourth-quarter revenue up 4.2% year over year to $324.4 million and full fiscal year revenue of $1.35 billion, up 6.4%. The growth came despite a 1.4% decline in active clients to 2.277 million, as revenue per active client hit a record $592, up 7.8%, and average order value rose 4.9%. Full-year gross margin slipped 70 basis points to 43.7% on freight rates and tariffs, and the company posted a net loss of $12.6 million for the year. Guidance for fiscal 2027 calls for revenue of $1.31 billion to $1.36 billion, with first-quarter revenue guided down 4.1% to 5.6%, while management plans to raise advertising spend to 10% to 11% of revenue from 9.9%. Hedge fund ownership slipped from 25 funds to 23, and short interest sits at 14.08% of the float.
Darden Falls on 1Q Profit Slip; Stitch Fix Tumbles on Weak 2027 Ebitda Forecast
Darden Restaurants shares fell after the company reported first quarter results showing higher sales but lower profits and increased expenses. MGM Resorts shares declined after Barry Diller's People Inc. dropped its plans to acquire the rest of the casino giant. Stitch Fix shares dropped after the online personal styling platform forecast full-year 2027 Ebitda far below what analysts expected, and reported a loss per share from continuing operations of 2.0c for the fourth quarter.
Digital Brands Group's AVO Posts 221% Revenue Growth as Marketing Spend Falls 78%
Digital Brands Group announced that its collegiate licensing brand AVO generated a 221% year-over-year revenue increase from August 1 through September 11, 2026, while cutting digital marketing expenditures by 78% compared with the same period last year. During that period AVO also achieved a 3.65x return on ad spend, and weekly net revenue for universities launched in 2026 rose 442% from Week 1 to Week 6. AVO plans to launch a completely redesigned e-commerce platform in the first week of October, developed by newly appointed board member David, who previously served as growth architect at Vuori during a period of 2400% revenue expansion. CEO Hil Davis said the company is targeting a 5x ROAS, which would provide a foundation to scale digital advertising investment alongside revenue. The commentary also noted that the global luxury apparel market is projected to reach $89.7 billion in 2026 and $106.1 billion by 2030, while the broader global luxury-goods market is estimated at $416 billion in 2026 and nearly $579 billion by 2030, and Grand View Research estimates a $126 billion global premium sportswear market in 2026 that could reach $174.3 billion by 2030.
Stitch Fix reported fourth-quarter GAAP earnings per share of -$0.02, beating estimates by $0.04, on revenue of $324.4M, up 4.2% year over year and in line with expectations. For the first quarter of fiscal 2027, the company guided net revenue to $323M-$328M, down 5.6% to 4.1% year over year and below a consensus of $355.15M, with adjusted EBITDA of $3M-$6M and a 0.9%-1.8% margin. For the full fiscal year 2027, Stitch Fix guided net revenue to $1.31B-$1.36B, down 2.8% to up 0.9% year over year and below a consensus of $1.41B, with adjusted EBITDA of $27M-$42M and a 2.1%-3.1% margin. Shares fell 5.69% following the release.
American Eagle Denim Revamp Lifts Brand Sales 1% in Fiscal Q2 2026
American Eagle Outfitters is seeing sequential improvement at its American Eagle brand as new women's denim fits gain customer acceptance, with American Eagle brand sales up 1% in the second quarter of fiscal 2026 while consolidated sales grew 8%. Management pointed to strong acceptance of new women's denim fits, including wide-leg straight and low-rise styles, with Jennifer Foyle saying the company has seen sequential improvement in denim after pivoting toward the fits that were working and making low-rise a key focus. The repositioned denim assortment also featured in the company's back-to-school marketing launch, and marketing is shifting toward conversion-focused spending alongside efforts to rebalance inventory and work through older and seasonal merchandise. Still, management said further work remains: American Eagle is still working through older denim fits and rebalancing inventory, and while women's bottoms have improved they remain mixed, though pants and cargoes have performed exceptionally well. AEO shares have declined 2.4% in the past six months compared with the industry's decline of 13%, and the company carries a Zacks Rank #3 (Hold), trading at a forward price-to-earnings ratio of 7.98X versus the industry's average 11.90X.
AEO · Demand · Positive American Eagle brand sales rose 1% in fiscal Q2 2026 on strong customer acceptance of new women's denim fits like wide-leg straight and low-rise styles.
Abercrombie & Fitch $1000 Investment a Decade Ago Now Worth $8,088
A $1000 investment in Abercrombie & Fitch made in September 2016 would be worth $8,088.48 as of September 23, 2026, a 708.85% gain excluding dividends, according to Zacks Investment Research calculations. Over the same period, the S&P 500 gained 256.64% and gold rose 213.61%. The retailer operates roughly 850 stores across North America, Europe, Asia and the Middle East and reports under three geographic segments: Americas; Europe, the Middle East and Africa; and Asia-Pacific. Management raised its fiscal 2026 sales, margin and earnings outlook, and the stock has jumped 25.08% over the past four weeks, with the consensus fiscal 2026 estimate moving higher as no estimate went lower in the past two months against three that rose. The outlook is tempered by flat overall comparable sales, negative comps at Hollister and EMEA, freight and operating-cost burdens, and reliance on tariff refunds for part of margin expansion.
Gap Launches Fashiontainment Platform With JYT Partnership
Gap Inc. announced a multi-year partnership with American boy band Just Your Type, known as JYT, under its new Fashiontainment platform. The collaboration spans a co-produced docuseries, a national mall tour, a co-designed capsule collection and social content aimed at connecting the brand with younger audiences. The deal marks an early test of Gap's push to blend entertainment, content and fashion as a way to build deeper, fandom-style customer relationships across its portfolio, with JYT serving as the flagship partner for the launch. The near-term financial impact of the partnership remains unclear and does not yet change the key risk around margin pressure from discounting and cost inflation. The launch follows the recent appointment of venture investor Kirsten Green to Gap's board, whose background backing consumer brands that connect closely with changing behavior sits alongside Fashiontainment as investors watch whether Gap can keep lifting engagement without sacrificing pricing power or returning to heavy promotions.
GAP · Demand · Positive Gap launched its Fashiontainment platform with a multi-year JYT partnership spanning a docuseries, mall tour, and capsule collection to build fandom-style customer relationships with younger audiences.
Stitch Fix to Report Q4 Earnings Wednesday With $324.65M Revenue Expected
Stitch Fix is scheduled to announce its Q4 earnings results on Wednesday, September 23rd, after market close. The consensus EPS estimate is -$0.06, while the consensus revenue estimate is $324.65M, up 4.3% year over year. Over the last year, Stitch Fix has beaten EPS estimates 75% of the time and revenue estimates 100% of the time. Over the past three months, EPS estimates have seen no upward revisions and one downward revision, while revenue estimates have seen no upward revisions and two downward revisions.
SFIX · Capital · Neutral Stitch Fix is set to report Q4 earnings with consensus EPS -$0.06 and revenue $324.65M, with recent downward estimate revisions.
Victoria's Secret Q2 Net Sales Rise 10% to $1,611 Million on Path to Potential
Victoria's Secret & Co. reported second-quarter fiscal 2026 net sales of $1,611 million, up 10% year over year, as its Path to Potential strategy delivered broad-based growth across its Victoria's Secret, PINK and Beauty brands and across channels. Adjusted operating income rose 125% to $124 million, and the quarter marked the company's fifth consecutive quarter of positive comparable sales. Within the Victoria's Secret brand, the bra business grew mid-teens and contributed roughly half of the brand's mid-teens growth, while panties grew high-teens and sleep mid-teens; PINK grew high single digits for its fifth straight quarter, apparel posted its eighth consecutive quarter of growth, and Beauty grew mid-single digits for a 12th consecutive quarter. The customer file increased mid-single digits with new-customer acquisition up high single digits, regular-price selling rose low double digits, and international sales grew 20%, led by China and the European digital business. The Zacks Rank #3 (Hold) stock has gained 3.6% over the past three months against a 14.7% decline for the industry, and the Zacks Consensus Estimate implies earnings growth of 56.3% for the current fiscal year and 22.7% for the next.
VSCO · Demand · Positive Q2 net sales rose 10% with broad-based growth across Victoria's Secret, PINK and Beauty brands and channels, plus mid-single-digit customer file growth.
Gap Inc. Launches First Fashiontainment Partnership With Boy Band JYT
Gap Inc. announced a multi-year partnership with the five-member American boy band Just Your Type, known as JYT, marking the first collaboration under the company's new Fashiontainment platform. The platform, led by Chief Entertainment Officer Pam Kaufman, uses Gap Inc.'s brands to create content, licensing, partnerships and experiences that build fandom. JYT was developed by Grammy-nominated songwriter and producer Freddy Wexler and is signed to Wexler Records/Republic Records, and has generated more than 450 million views over the past 90 days and built an audience of more than 2 million followers across social platforms. The collaboration includes a multi-episode docuseries co-produced by Gap, a national mall tour starting next month, a Gap capsule collection co-designed with the five members of JYT that drops in fall 2026 in stores and on gap.com, and social content across music and culture platforms. JYT is Recker Eans, Toby Green, Caden Adamonis, Bryan Chan and Tyler George.
GAP · Demand · Positive Gap launches a multi-year Fashiontainment partnership with JYT including a capsule collection and mall tour, driving product/fandom demand.
Jim Cramer said he is buying the pullback in The TJX Companies, telling a caller on Mad Money that he and Jeff Marks pulled the trigger on September 17 as the stock fell from its $170 high to around $126, $123 and $120. The call came after TJX reported second-quarter fiscal 2027 revenue of $15.2 billion, beating consensus by $20 million, with consolidated comparable sales up 4% year over year. HomeGoods posted a 7% comparable sales gain and international operations also rose 7%, while Marmaxx comparable sales increased just 1%. Management raised its full-year profit guidance and lifted its long-term store growth potential by 500 stores to 7,500 locations, though it guided to moderating sales and lower sequential margin expansion in the second half as adjusted SG&A worsened by 20 basis points on higher store wages and payroll costs. Insider Monkey tracking data showed 80 hedge funds held the stock in the second quarter, down from 83, while short interest stood at 1.98% of the public float.
TJX · Capital · Positive TJX beat on Q2 revenue, raised full-year profit guidance, and lifted long-term store growth target, prompting Cramer to buy the pullback
The Cato Corporation plans to close about 120 stores, roughly 15% of its retail base, after reporting a 6% drop in second-quarter sales. The women's apparel chain posted net income of $1.1 million for the second quarter, down from $6.8 million a year earlier, while sales fell to $163.9 million from $174.7 million, driven by a 3.7% same-store sales decrease. CEO John Cato blamed continued pressure on customers' discretionary income from persistent inflation, higher fuel prices and elevated interest rates, and said the back half of 2026 will be challenging. Cato added 70 new closures to its previously announced list, bringing total planned shutdowns to 120, all at locations with expiring leases that will come off the books by the end of 2026. Rivals have fared better: Ross Dress for Less reported a 13% sales increase with comparable store sales up 10%, while TJX's TJ Maxx and Marshalls posted a 1% same-store sales increase and a 3% jump in overall sales.
The RealReal to Open Glendale Store on October 1 as Vintage Demand Jumps 432%
The RealReal Inc. will open a new store in Glendale, California, on October 1, expanding its retail footprint in Southern California. The company's Chief Merchandising Officer, Samantha McCandless, said Glendale is already a destination where people come to discover fashion and luxury, and that The RealReal adds thousands of one-of-one pieces shoppers cannot find anywhere else. The launch follows a 432% jump in consumer demand for vintage items since 2020, as reported in The RealReal's 2026 Resale Report, with Gen Z and Millennials now accounting for more than half of the company's customer base. The new location will offer authentication expertise, one-on-one consignment support, and a curated selection of women's and men's apparel, handbags, fine jewelry, watches and accessories. The expansion carries risks, including high leasing and staffing costs, exposure to pullbacks in discretionary luxury spending, competition from other resale players and conventional retailers, and the need for a steady stream of quality consigned goods. In the second quarter, GAAP net loss widened to $27 million from $11 million a year earlier, or $0.23 per diluted share versus $0.13, while non-GAAP basic and diluted net loss narrowed to $0.01 per share from $0.06.
REAL · Capital · Negative Q2 GAAP net loss widened to $27 million from $11 million a year earlier.
REAL · Demand · Positive Opening a Glendale store amid a 432% jump in consumer demand for vintage items and Gen Z/Millennial customers now over half its base.
Ross Stores Adds Bransten and Johnson to Board as Garrett Retires
Ross Stores, Inc. announced changes to its Board of Directors effective October 1, 2026, with Shelley H. Bransten and Christian B. Johnson elected to join the Board and long-time member Sharon D. Garrett planning to retire. Ms. Bransten brings over 25 years of experience as a senior technology and consumer industry executive, currently serving as Corporate Vice President, Frontier Industry Advisory, Microsoft Frontier Company, and previously holding senior roles at Salesforce.com, Inc. and The Gap, Inc. Mr. Johnson has more than two decades of experience investing in consumer-facing businesses and has been a Partner at Freeman Spogli since 2016, after joining the firm in 2006. Chairman K. Gunnar Bjorklund welcomed both new directors, citing Bransten's expertise across technology, retail, and consumer-focused businesses and Johnson's track record in business strategy and growing consumer businesses. Bjorklund also thanked Garrett, who joined the Board in 2000, for her counsel over the past two and a half decades in guiding the Company through a period of significant growth.
Abercrombie & Fitch Earns Zacks Rank #1 as Estimates Climb
Abercrombie & Fitch has been rated Zacks Rank #1 (Strong Buy) on the strength of recent upward revisions to consensus earnings estimates. The teen clothing retailer is expected to post earnings of $3.01 per share for the current quarter, a year-over-year change of +27.5%, with the Zacks Consensus Estimate up +7.6% over the last 30 days. For the current fiscal year, the consensus earnings estimate of $11.42 indicates a year-over-year change of +15.8% and has risen +7.7% over the past month, while the next fiscal year's estimate of $12.41 points to a +8.6% change and has moved +8.1% in the same period. Revenue is forecast at $1.37 billion for the current quarter, up +5.9% year over year, with fiscal-year consensus sales estimates of $5.52 billion and $5.79 billion, each implying a +4.8% change. In its last reported quarter, Abercrombie posted revenues of $1.27 billion, up +4.8% year over year, and EPS of $2.42 versus $2.32 a year earlier, beating the Zacks Consensus revenue estimate of $1.24 billion by +1.94% and the EPS estimate by +24.1%.
Abercrombie & Fitch Files $98.65 Million ESOP Shelf Registration
Abercrombie & Fitch Co. has filed a shelf registration for about US$98.65 million of Class A common stock, covering 687,271 shares for an ESOP-related offering. The employee stock ownership plan-linked filing highlights how the retailer is using equity participation to align its workforce with long-term business performance. The ESOP shelf registration looks modest against Abercrombie & Fitch's recent buyback activity, with over US$733.37 million spent to retire about 18.24% of shares since March 2025. The company's investment narrative projects $5.9 billion in revenue and $504.8 million in earnings by 2029, requiring 3.7% yearly revenue growth and about an $11.2 million earnings increase from $493.6 million today. Some of the lowest ranked analysts assume revenue of about US$6.1 billion and earnings of roughly US$577.0 million by 2029, raising questions about whether heavy store dependence and changing shopper habits could matter more than the consensus expects.
Abercrombie & Fitch Files $98.65 Million ESOP Shelf for 687,271 Class A Shares
Abercrombie & Fitch has put a new $98.65 million shelf registration in place covering 687,271 Class A shares tied to its employee stock ownership plan. The retailer's shares trade at $139.89, with a 1 month share price return of 33.03% and a 90 day share price return of 60.35%, while the 1 year total shareholder return stands at 63.82% and the 5 year total shareholder return at 260.36%. The most followed narrative pegs fair value at $122, implying the stock is 14.7% overvalued, and 89 investors see it as 15% overvalued. On multiples, the shares trade at an 11.1x P/E against a fair ratio of 13x, below the US Specialty Retail average of 15.7x and the peer group at 12.1x. Tariff pressure projected at a $90 million net impact in 2025 and softer Abercrombie brand comps are cited as risks to the bullish case.
Nike Q2 Revenue Falls 1.1% to $10.97 Billion, Beats Estimates
Nike reported second-quarter revenues of $10.97 billion, down 1.1% year on year but exceeding analysts' expectations by 1.1%, as the seven consumer discretionary footwear stocks tracked by the report collectively beat consensus revenue estimates by 1.3%. Steven Madden posted the group's best quarter, with revenues of $665.9 million, up 19.1% year on year and 4.8% above expectations, while Caleres delivered the weakest performance against estimates, reporting revenues of $695.5 million, up 5.6% but missing by 1%, alongside next-quarter and full-year EPS guidance that fell significantly short of expectations. Deckers reported revenues of $1.02 billion, up 5.7% and in line with expectations, and Crocs reported revenues of $1.18 billion, up 2.6% and 2.7% above expectations, though its next-quarter EPS guidance missed. Despite the broad revenue beats, footwear share prices have fallen 6.3% on average since the results, with Nike down 11.8% to $36.21, Deckers down 19.3% to $77.69, Crocs down 16.5% to $111.46, and Steven Madden down 6.8% to $40.46, while Caleres has risen 2.5% to $12.33.
CAL · Capital · Negative Caleres missed revenue estimates by 1% and its next-quarter and full-year EPS guidance fell significantly short of expectations.
CROX · Capital · Neutral Crocs beat revenue estimates by 2.7% but its next-quarter EPS guidance missed, a mixed result.
DECK · Capital · Neutral Deckers revenue rose 5.7% and was in line with expectations, with no clear positive or negative surprise.
NKE · Capital · Positive Nike Q2 revenue of $10.97 billion beat analysts' expectations by 1.1%.
SHOO · Capital · Positive Steven Madden posted the group's best quarter, with revenue up 19.1% and 4.8% above expectations.
American Eagle Outfitters Touts Amazon Shipping as Top Carrier
American Eagle Outfitters has become an early adopter of Amazon Shipping and now counts the third-party parcel service among its best-performing carriers, company executives said Tuesday at Parcel Forum 26 in Orlando, Florida. American Eagle, which operates 1,170 stores across North America, four distribution centers and fulfills e-commerce orders from about 700 stores, pilot tested Amazon Shipping in the spring of 2025 and quickly folded the carrier into its transportation network in time for the peak holiday season. Brandon Friez, senior vice president of global logistics and supply chain intelligence, said Amazon Shipping solved the retailer's biggest pain points with seven-day-per-week delivery and price predictability, and that concerns about Prime Day delays never materialized, helping cut overall delivery time by 16%. Amazon's contact per order ratio is the best among the dozen carriers American Eagle uses, Friez added, and the retailer delivered its best peak ever for consumers. Amazon Shipping began a soft launch three years ago and has operated in Europe for five years, part of Amazon's broader push into third-party logistics that led the company earlier this year to launch Amazon Supply Chain Services as its go-to market brand. Theresa Uthurralt, director of business development for Amazon Shipping, said Amazon's internal data shows 85% of customers will not return to a seller after a bad delivery experience.
AEO · Supply · Positive American Eagle adopted Amazon Shipping as a top carrier, cutting overall delivery time by 16% and achieving its best peak ever.
AMZN · Demand · Positive American Eagle's adoption of Amazon Shipping highlights growing third-party logistics demand for Amazon's parcel service.
TJX Closes at Least Four TJ Maxx Stores in 2026 While Expanding Overall Footprint
The TJX Companies has closed at least four TJ Maxx stores in 2026, according to Inc., even as the off-price retailer continues to grow its overall store base. The closures include locations in Gilbert, Arizona; Boston, Massachusetts; Silver Spring, Maryland; and Cumberland, Maryland. TJX CFO John Klinger said on the company's latest earnings call that strong comparable growth has given the retailer the ability to place stores closer together than previously thought, and that smaller-format stores allow expansion in densely populated urban areas. During the second quarter of fiscal 2027, TJX reported net sales climbed 5% year over year, consolidated comparable sales increased 4%, and diluted earnings per share rose 24% to $1.36. In the fiscal quarter ended Aug. 1, 2026, TJX increased its total store count by 23 locations to 5,285 stores and grew total square footage by 0.4% compared with the prior quarter, and it plans to accelerate store openings to 4% beginning next year with a long-term goal of 7,500 locations globally.
TJX · Capital · Positive TJX reported Q2 FY2027 net sales up 5%, comps up 4%, and diluted EPS up 24% to $1.36, alongside accelerating store openings toward a 7,500-store goal.
Tilly's Returns to Profit After Closing 40 Stores in Two Years
Tilly's, the 44-year-old mall retailer, reported second quarter fiscal 2026 net sales of $163.5 million, up 8.1% from a year earlier, and projected its first profitable full year since 2022 after closing 40 stores over roughly two years. Comparable net sales rose 12.1% for the quarter, with physical store net sales of $129.0 million, up 5.1%, and e-commerce net sales of $34.5 million, up 20.9%. Gross profit was $58.1 million, or 35.5% of net sales, compared with $49.1 million, or 32.5%, last year, while net income reached $8.4 million, or $0.27 per diluted share, versus $3.2 million, or $0.10 per diluted share, in 2025. The Irvine, California-based chain ended the quarter with 220 total stores, down 12 stores or 5.2% from 232 a year earlier, and expects to finish the fiscal year with 218 stores before targeting 5 to 8 new openings in fiscal 2027. CEO Nate Smith said the company is encouraged by its progress but "not finished," and management plans to launch an AI-driven smart inventory allocation tool and roll out RFID technology in stores starting in early 2027.
TLYS · Capital · Positive Tilly's returned to profit with Q2 net income of $8.4M and projected its first profitable full year since 2022 after closing 40 stores.
TLYS · Demand · Positive Comparable net sales rose 12.1% with e-commerce up 20.9%, showing stronger end-customer demand.
TJX Raises Fiscal 2027 Outlook After Q2 Earnings Beat
The TJX Companies raised its fiscal 2027 profit and earnings outlook after second-quarter results exceeded plan. Adjusted second-quarter earnings rose 11% year over year to $1.22 per share, beating the Zacks Consensus Estimate of $1.18, while net sales increased 5% to $15.18 billion and consolidated comparable sales advanced 4%. Adjusted gross margin increased 70 basis points to 31.4% and adjusted pretax profit margin expanded 50 basis points to 11.9%. TJX lifted its fiscal 2027 adjusted pretax profit margin outlook to 12% to 12.1% from 11.9% to 12%, and moved adjusted earnings guidance to $5.15 to $5.20 per share from $5.08 to $5.15, while continuing to expect consolidated comparable sales growth of 3% to 4% and sales of $63.4 billion to $63.8 billion. Marmaxx was the quarter's weakest division with comparable sales up 1%, offset by HomeGoods up 7%, TJX Canada up 6% and TJX International up 7%, and the company ended the quarter with 5,285 stores while raising its long-term global store target by 500 locations to 7,500.
TJX Lifts Fiscal 2027 Guidance and Store Target as Valuation Stays Rich
TJX Companies raised its fiscal 2027 adjusted earnings guidance to $5.15 to $5.20 per share from $5.08 to $5.15, alongside expectations for comparable sales growth of 3% to 4% and consolidated sales of $63.4 billion to $63.8 billion, up 5% to 6%. The off-price retailer also lifted its long-term global store target by 500 locations to 7,500 and plans to accelerate annual store growth to 4% beginning in fiscal 2028. Operating cash flow reached $3.3 billion in the first half of fiscal 2027, up from $2.2 billion a year earlier, and TJX returned $2.4 billion to shareholders in the first half, including $1.4 billion of share repurchases and $1 billion of dividends, while management continues to expect fiscal 2027 repurchases of about $2.75 billion to $3 billion. The growth case faces execution and cost risks: Marmaxx comparable sales rose just 1% in the second quarter, and adjusted selling, general and administrative costs were 19.7% of sales, 20 basis points unfavorable year over year on higher store wage and payroll costs, with third-quarter adjusted gross margin projected at 32.1% to 32.2%, down 40-50 basis points on higher fuel costs. TJX's forward 12-month price-to-sales ratio of 2.06 sits above the Zacks sub-industry's 1.58 and the stock's five-year median of 1.95, and its first-year forward P/E is 33.41, leaving the investment case tied to earnings delivery, Marmaxx improvement and progress toward the larger store target.
TJX Shares Fall 17.4% in a Month Despite Earnings Beat and Raised Outlook
TJX shares have dropped 17.4% over the past month even after second-quarter fiscal 2027 adjusted earnings of $1.22 per share beat the Zacks Consensus Estimate of $1.18 and management raised its full-year adjusted earnings outlook to $5.15 to $5.20 per share. The selloff centers on Marmaxx, TJX's largest division, where comparable sales rose just 1% in the second quarter, below management's expectations, on a higher average basket partly offset by a small decline in customer transactions; management called the shortfall self-inflicted and tied to merchandise mix, and said trends improved early in the third quarter. The weakness at Marmaxx was offset by the rest of the company, as consolidated comparable sales rose 4% and net sales climbed 5% to $15.18 billion, with HomeGoods comparable sales up 7%, TJX Canada up 6% and TJX International up 7%. Adjusted selling, general and administrative costs reached 19.7% of sales, 20 basis points unfavorable year over year on higher store wage and payroll costs, and third-quarter adjusted gross margin is projected at 32.1% to 32.2%, down 40-50 basis points, mainly on higher fuel costs, while currency movements cut second-quarter reported net sales growth by 1 percentage point. TJX's forward 12-month price-to-sales ratio of 2.06 remains above the Zacks sub-industry's 1.58 and its own five-year median of 1.95, leaving investors focused on whether Marmaxx improves as expected while the company manages wage and fuel pressure.
TJX · Capital · Negative Third-quarter adjusted gross margin is projected down 40-50 basis points on higher fuel costs, with SG&A 20 bps unfavorable on wage/payroll costs.
TJX · Demand · Negative Marmaxx comparable sales rose just 1%, below management's expectations, on a small decline in customer transactions.
Boot Barn E-Commerce Comps Jump 13.4% as Digital Drives Q1 Growth
Boot Barn Holdings reported that e-commerce same-store sales climbed 13.4% year over year in the first quarter of fiscal 2027, outpacing a 3.8% rise in retail-store comps and lifting consolidated same-store sales 4.7%. Higher comparable sales and new-store contributions drove net sales up 17.7% to $593.5 million, with the retailer opening 27 stores in the quarter to end the period with 566 locations across 49 states. Management's fiscal 2027 guidance calls for e-commerce same-store sales growth of 11-13% against projected retail-store comp growth of 1-3%, with consolidated same-store sales expected to rise 2-4% and total sales forecast between $2.58 billion and $2.63 billion, representing 14-16% growth. Preliminary July e-commerce comps moderated to 10.7% while consolidated comps were approximately flat amid difficult comparisons and weaker event-related store traffic, though the online channel maintained double-digit growth. The Zacks Consensus Estimate implies fiscal 2027 earnings growth of 22.6% and fiscal 2028 growth of 10.5%, with both estimates revised upward over the past 60 days.
BOOT · Demand · Positive E-commerce same-store sales jumped 13.4% and net sales rose 17.7% to $593.5M, with 27 new stores opened, showing strong end-customer demand.
American Eagle Posts $1.38 Billion Q2 Revenue, Lifts FY26 Operating Income Guidance to $540-$550 Million
American Eagle Outfitters reported fiscal 2026 second-quarter net revenue of $1.38 billion, up 8% year over year, with operating profit of $211 million and diluted earnings per share of $0.79. The results were heavily boosted by $196 million in International Emergency Economic Powers Act tariff refunds, which after $35 million in additional incentive compensation contributed $161 million to operating income and $179 million to gross profit, accounting for 1,170 and 1,300 basis points of the operating and gross margin gains respectively. Company-wide comparable sales rose 6%, driven by a 19% jump at the Aerie sub-brand, while the core American Eagle brand's comparable sales fell 1%. The company declared a $21 million shareholder distribution, or $0.125 per share, and now expects fiscal 2026 operating income of $540 million to $550 million including the tariff-refund benefit, implying roughly $379 million to $389 million of underlying operating income versus prior guidance of $390 million to $410 million.
AEO · Capital · Positive Q2 revenue up 8% to $1.38B with operating profit of $211M and EPS $0.79, boosted by $196M in tariff refunds, and FY26 operating income guidance lifted to $540-$550M.
AEO · Demand · Neutral Company-wide comparable sales rose 6% on a 19% jump at Aerie, but the core American Eagle brand's comparable sales fell 1%.
Zumiez Inc. reported weaker-than-expected second-quarter results and lowered its full-year outlook, sending the stock lower. For the quarter ended August 1, 2026, net sales fell 2.5% year-over-year to $209 million, with comparable sales down 2.1% as weakness in the US offset positive comparable sales growth in Canada, Europe, and Australia. The company posted a net loss of $2.7 million, or $0.17 per share, compared with a net loss of $1.0 million, or $0.06 per share, a year earlier. For the third quarter ending October 31, 2026, Zumiez guided to net sales of $222 million to $226 million and earnings per share of $0.00 to $0.10, both below Wall Street expectations, and management now expects fiscal 2026 sales to decline by low single digits with operating margin falling slightly, versus its previous expectation for 50 to 100 basis points of operating-margin expansion. The company ended the quarter with $97.3 million in cash and marketable securities, no debt, and an unused $25 million credit facility, and repurchased 1.2 million shares for $23.2 million.
TJX International Adjusted Margin Reaches 7.3%, Up 210 Basis Points
TJX International, the Europe and Australia division of The TJX Companies, posted an adjusted segment profit margin of 7.3% on a constant-currency basis in the second quarter of fiscal 2027, up 210 basis points year over year, while reported segment profit margin was 6.4%. The adjusted figure excludes a 0.9-percentage-point impact from tariff-refund-related incremental compensation expense accruals, and foreign currency had no impact on the adjusted margin in the quarter. The division generated second-quarter net sales of $2.09 billion, up 11% from $1.89 billion a year earlier, with sales up 10% on a constant-currency basis and comparable sales up 7% versus 5% growth in the prior-year quarter, driven primarily by higher customer transactions. TJX also opened its second TK Maxx store in Spain during the quarter, drawing an extremely positive customer response. The margin improvement was primarily driven by favorable merchandise margin and expense leverage on higher comparable sales, partly offset by the incremental compensation expense accruals related to tariff refunds. For comparison, Ross Stores posted a 610-basis-point operating margin increase in the second quarter of fiscal 2026, including a 405-basis-point benefit from IEEPA tariff refunds, while Burlington Stores' adjusted EBIT margin rose 100 basis points to 7% and the company expects fiscal 2026 adjusted EBIT margin to increase 20-40 basis points.
TJX · Capital · Positive TJX International's adjusted segment margin rose 210bp to 7.3% on favorable merchandise margin and expense leverage, with net sales up 11%.
TJX's Marmaxx Comparable Sales Slow to 1% as Cramer Questions Retailer
The TJX Companies reported second-quarter fiscal 2027 sales of $15.18 billion, up 5% year over year, with consolidated comparable sales up 4% and adjusted diluted EPS up 11% to $1.22, but weakness was concentrated in its largest division, Marmaxx, where comparable sales rose just 1%, down from 6% in the first quarter. Marmaxx, which includes TJ Maxx, Marshalls and Sierra, lagged HomeGoods, TJX Canada and TJX International, each of which posted comparable-sales growth of 6% or more. CEO Ernie Herrman said Marmaxx could have executed its store mix better and that the problems were self-inflicted and within the company's control, though management has not disclosed the specific merchandise categories involved. Jim Cramer said on the September 10 episode of Mad Money that he lost it on TJX over the Marmaxx stumble, calling it infuriating that management would not say what went wrong or how it was fixed, and noted that Ross Stores delivered a 10% comparable-sales increase in its latest quarter, compared with just 1% at Marmaxx. TJX raised its full-year diluted EPS outlook to $5.31-$5.36, or $5.15-$5.20 excluding an expected $0.16 net benefit from tariff refunds, while hedge fund holders of the stock fell to 80 in the second quarter from 83 in the first, with Arrowstreet Capital the largest shareholder after increasing its position by 16% to nearly 8.4 million shares and short interest at roughly 2% of the public float.
TJX · Demand · Negative Marmaxx comparable sales slowed to just 1% from 6%, with CEO Herrman calling the store-mix problems self-inflicted.
ROST · Competition · Positive Ross Stores delivered a 10% comparable-sales increase versus just 1% at Marmaxx, a favorable competitive comparison.
Sierra · Demand · Negative Sierra, part of the lagging Marmaxx division, saw the segment's comparable sales rise only 1%.
Arrowstreet Capital · Capital · Neutral Arrowstreet Capital increased its TJX position by 16% to nearly 8.4 million shares, becoming the largest shareholder.
Children's Place Posts $31 Million Q2 Loss as Sales Fall 18.9%
The Children's Place reported a second-quarter net loss of $(31.0) million, or $(1.39) per diluted share, as net sales fell 18.9% to $241.8 million from $298.0 million a year earlier. Comparable retail sales in the company's owned and operated direct-to-consumer business dropped 16.7% for the quarter, which ended August 1, 2026, and gross margin rose 40 basis points to 34.4% only because of $39 million in tariff refunds recognized during the quarter; excluding those refunds, gross margin fell 1,550 basis points. The company opened 19 new stores in the quarter, its most in any quarter since 2013, and closed 2, ending with 514 stores, while inventories fell 23.2% to $340.2 million. President and Interim Chief Executive Officer Muhammad Asif Seemab said the company is evaluating its operating model to improve liquidity, and it hired Alexandra Derner as Chief Growth Officer to lead international expansion including a planned entry into Mexico. For the six months ended August 1, 2026, net sales fell 15.4% to $457.0 million and net loss widened to $(84.1) million, or $(3.79) per diluted share, from $(39.4) million a year earlier.
Victoria's Secret Raises Fiscal 2026 Outlook After Strong Second Quarter
Victoria's Secret & Co. raised its fiscal 2026 sales, adjusted operating income and adjusted earnings outlook following a second quarter marked by stronger full-price selling and broad-based brand growth. Second-quarter net sales rose 10.4% to $1.611 billion, while adjusted earnings of 95 cents per share increased 187.9% year over year and beat the Zacks Consensus Estimate of 78 cents by 21.8%. The company now expects fiscal 2026 net sales of $7.10-$7.18 billion, up from its prior range of $7.03-$7.13 billion, implying growth of 8%-10% from fiscal 2025 sales of $6.553 billion. Adjusted operating-income guidance increased to $560-$590 million from $550-$580 million, and adjusted earnings guidance rose to $4.45-$4.70 per share from $4.35-$4.60. Adjusted gross margin expanded 320 basis points year over year to 38.8%, with roughly two-thirds of the improvement coming from higher merchandise margin, and adjusted operating income rose 125% to $124 million. Bras remained the primary growth engine, rising in the mid-teens and driving about half of Victoria's Secret brand growth, while PINK increased in the high single digits and Beauty posted mid-single-digit growth, extending its sales-growth streak to 12 consecutive quarters.
VSCO · Capital · Positive Raised fiscal 2026 sales, operating income and EPS guidance after Q2 beat, with adjusted EPS up 187.9% and gross margin up 320 bps.
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