Shops that focus on clothing and fashion — chains selling everyday wear, sportswear and accessories like Zara and H&M.
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Apparel Retail
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.
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.
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.
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.
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.
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.
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.
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'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.
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.
Victoria's Secret Raises Fiscal 2026 Sales Guidance to $7.10-$7.18 Billion
Victoria's Secret & Co. raised its fiscal 2026 net sales guidance to $7.10-$7.18 billion, implying growth of 8%-10% from fiscal 2025, as the retailer reported faster growth, wider margins and stronger earnings expectations. Adjusted earnings came in at 95 cents per share, up 187.9% year over year and 21.8% above the Zacks Consensus Estimate of 78 cents, while projected earnings growth for the current fiscal year stands at 56.3%. The improvement was broad-based: Bras grew in the mid-teens in the second quarter, PINK increased in the high single digits, Beauty posted its 12th consecutive quarter of sales growth, and reported international sales rose 20% with China remaining a leading growth market. Management expects 45% of the global fleet to operate in the Store of the Future format by fiscal 2026-end, though tariff uncertainty and rising transportation costs are expected to offset part of the third-quarter gross-margin benefit, and the adjusted SG&A rate is projected at about 37.5%, up from 36.5% a year earlier. VSXY trades at 14.13X forward 12-month earnings, above the industry's 12.18X multiple and well above its five-year median of 9.14X, and carries a Zacks Rank #3 (Hold) with a Momentum Score of F.
Shinto Holdings Swings to ¥394 Million Recurring Profit
Shinto Holdings announced its earnings on the afternoon of September 14, reporting a consolidated recurring profit of 394 million yen for the cumulative second quarter of the fiscal year ending January 2027, swinging from a loss of 61 million yen in the same period a year earlier. The progress rate against the full-year plan of 715 million yen stands at 55.1%. Based on the company's reported first-half results and its unchanged full-year plan, the consolidated recurring profit for the August-to-January second half is projected to fall 46.9% year on year to 321 million yen. In the most recent three-month period from May to July, consolidated recurring profit surged 9.2-fold year on year to 330 million yen, while the operating profit margin on sales improved from 0.4% a year earlier to 2.7%.
Destination XL to Close Stores as Big-and-Tall Shoppers Shift Online
Destination XL is rationalizing its store base over the next several years as leases expire or kick-out rights become available, a move that will shrink the big-and-tall men's retailer's physical footprint. CFO Peter Stratton said on the chain's second-quarter earnings call that the company closed three stores in 2026 and has a few dozen leases coming up in 2027, which it will evaluate case by case over the next six months to decide how many more to close. The store rationalization work will have limited impact in 2026 but is expected to reduce occupancy and store operating costs beginning in 2027 and beyond, part of a multiyear project aimed at improving sales per square foot and four-wall profit. Destination XL's in-store comparable sales fell 4.3% in the second quarter, while its direct, or online, business declined just 1.6%, and Stratton said digital now approaches 70% of total demand at peer retailer Torrid, which has closed nearly 200 stores. RTM Nexus CEO Dominick Miserandino attributed the store closures directly to mass adoption of GLP-1 weight-loss drugs such as Ozempic, which he said puts the chain's core big-and-tall customer base in a purchasing holding pattern.
The RealReal Posts Record $617 Million GMV, Raises Full-Year Guidance
The RealReal reported second quarter results on August 6 that beat its own outlook and prompted the resale luxury marketplace to raise its full year guidance. Gross merchandise value hit an all time high of $617 million, up 22% from a year earlier, while total revenue climbed 17% to $193 million, gross margin reached 74.4%, and Adjusted EBITDA margin jumped to 7%, a 290 basis point improvement. Trailing twelve-month active buyers rose 11% to 1,107,000 and average order value climbed 13% to $659, giving management enough confidence to raise full-year guidance to $2.54 billion to $2.57 billion in GMV and $788 million to $797 million in total revenue, alongside third-quarter Adjusted EBITDA guidance of $13.5 million to $14.5 million. Despite those operating gains, GAAP losses widened, with net loss at $27 million, or 14.1% of total revenue, compared to $11 million, or 6.9% of total revenue, a year earlier, and GAAP basic net loss per share of $0.23 versus $0.10, a swing largely tied to an $(18.6) million non-cash adjustment for the change in fair value of warrant liability. On a non-GAAP basis, basic and diluted net loss per share narrowed to $0.01 from $0.06, and the company said it has not reconciled its forward-looking Adjusted EBITDA figures to GAAP net income or loss.
Genesco Lifts Full-Year Guidance as Q2 Revenue Falls 3% to $530 Million
Genesco reported second-quarter revenue down 3% to $530 million on September 3 while nearly halving its adjusted operating loss and raising full-year earnings guidance to the top end of its range. Adjusted gross margin expanded 140 basis points to 47.2%, the adjusted operating loss narrowed to $8 million from $14 million a year earlier, and the company collected $22.5 million in tariff refunds while cutting total debt to $15.8 million from $71 million. Journeys posted its eighth consecutive quarter of positive comparable sales, up 2%, with the Journeys 4.0 store format generating a sales lift of 25% or more and expected to reach roughly 180 locations, about a fifth of the fleet, by year-end, while Johnston & Murphy comparable sales rose 4% in a third straight positive quarter. The drag came almost entirely from the UK chain Schuh, where comparable sales fell 9% as management deliberately pulled back on discounting, prompting full-year total sales guidance of down about 2% versus the prior forecast of down 1% to flat. Third-quarter sales are projected to fall 4% to 4.5%, hurt by a $14 million hit from exiting older licensed brands ahead of the Wrangler footwear launch, and the company ended the quarter with 1,186 stores, down 5%, and inventory up 8% to $539.7 million.
Destination XL Group reported second-quarter net sales fell 3.4% to $111.6 million and comparable sales dropped 3.5%, while adjusted EBITDA jumped to $7.7 million from $4.7 million a year earlier. Interim CEO Lionel Conacher framed the quarter as proof a turnaround is taking hold, and CFO Peter Stratton called the quarterly comp the strongest in 3 years, with comparable sales improving from down 5.7% in May to down 1.9% in July. Adjusted EPS reached $0.05, up from $0.01, and GAAP net income hit $2.0 million, helped by a $4.6 million tariff refund; gross margin rose 270 basis points to 47.9%, but nearly all of that gain traces back to the refund, and without it merchandise margin would have been roughly 70 basis points worse than last year. The company also walked away from its planned merger with FullBeauty, a deal the board concluded would have diluted existing stockholders given FullBeauty's weakening finances, though the deal still needs SEC clearance and a stockholder vote before it is formally dead. Stratton called store traffic the company's single biggest hurdle, with physical store comps down 4.3% and direct sales down 1.6%, and Chief Growth Officer Jimmy Olsson said customers on GLP-1 weight-loss medications tend to stop buying apparel altogether for a period before their sizing stabilizes.
Caleres Raises Guidance as Brand Portfolio Surges, Famous Footwear Slides
Caleres reported second-quarter net sales up 5.6% to $695.5 million and adjusted diluted earnings per share of $0.47, up from $0.35 a year earlier, and raised the low end of its full-year guidance. The brand portfolio, which includes Sam Edelman, Allen Edmonds, Naturalizer, Vionic and Stuart Weitzman, generated $340.6 million in sales, up 23.6% on the Weitzman integration and 8.2% organic growth, with adjusted gross margin up 880 basis points to 49.1%. Famous Footwear, the company's larger chain, saw sales fall 6.3% to $374.4 million and gross margin slip 100 basis points to 42.7% as consumers pulled back from lifestyle athletic shoes. Total inventory rose to $754.2 million, up $61 million, with $69 million tied to the Weitzman acquisition, and CFO Daniel Karpel flagged an uncertain tariff environment as the company assumes new tariffs will replace prior IEEPA refunds that added $57.4 million to the quarter. Caleres ended the quarter with $50.9 million in cash against $288 million in revolver borrowings and plans to open 13 stores while closing 26 this year.
J.Jill Beats Guidance but $13.3 Million Tariff Refund Flatters Results
J.Jill told investors its slow-building turnaround took a real step forward in its latest quarter, with results that beat the company's own guidance, though a one-time $13.3 million tariff refund accounts for much of the improvement. Net sales rose 0.5% to $154.8 million, adjusted EBITDA climbed from $25.6 million to $32.8 million, and adjusted earnings per diluted share jumped to $1.24 from $0.81 a year earlier. Excluding the refund, adjusted gross margin was flat at 68.3% versus a year ago, and underlying adjusted EBITDA was $20.1 million, well below the $32.8 million headline figure. CEO Mary Ellen Coyne said the total customer file is stabilizing, with new-to-brand acquisition accelerating and direct sales growing 1.9% to $73 million, or 47.1% of total revenue, while store sales alone fell 0.7% year over year. J.Jill raised its full-year sales guidance to flat-to-2% growth and its third-quarter comparable sales outlook to 1% to 3% growth, but cut full-year net new store guidance to one to three locations after landlord delivery delays pushed two planned openings into early 2027.
American Eagle Posts Q2 EPS of 79 Cents, Guides FY26 Operating Income to $540-$550 Million
American Eagle Outfitters reported second-quarter fiscal 2026 earnings of 79 cents per share, up from 45 cents a year ago and well above the Zacks Consensus Estimate of 21 cents, as net revenues rose 8% year over year to $1.38 billion and comparable sales increased 6%. Aerie remained the growth engine with comparable sales up 19% and revenues up 25% to $536 million, while American Eagle brand comps declined 1%. Gross profit increased 34% to $672 million and gross margin expanded 980 basis points to 48.7%, though the quarter included a $179 million net tariff-refund benefit in gross profit that contributed 1,300 basis points to that margin expansion, and operating income rose to $211 million from $103 million on a $161 million net tariff-refund benefit. Management expects fiscal 2026 comparable sales to rise in the mid-single digits with gross margin expanding and operating income of $540-$550 million, and for the third quarter it projects comparable sales up mid-to-high single digits with operating income of $110-$115 million. The company ended the quarter with approximately $148 million in cash and investments and $783 million of total liquidity, and returned $21 million through its quarterly dividend.
Copart to buy ACV Auctions for $1.9B as Oracle, Adobe and Zumiez report earnings
Copart agreed to acquire digital dealer auction platform ACV Auctions for $10.50 per share in cash, implying an equity value of about $1.9B, sending ACVA shares up 44% while Copart rose 7%. The offer represents a roughly 45% premium to ACV's unaffected August 10 close and 41% to its 30-day volume-weighted average price through September 9, and the deal, unanimously approved by both boards, is expected to close by the end of calendar 2026 subject to antitrust clearance. Oracle shares surged 7% after the IT giant reported FQ1 results and guidance that topped Wall Street estimates, with revenue up 30% Y/Y, cloud revenue rising 62% to $11.6B, infrastructure revenue jumping 121% to $7.4B, and remaining performance obligations climbing $209B to $664B, including more than $30B in new AI cloud contracts. Zumiez plunged 16% after the retailer reported a wider Q2 loss and weaker-than-expected sales, with GAAP EPS of -$0.17 missing by $0.03, revenue falling 2.5% Y/Y to $208.96M, and comparable sales declining 2.1%. Adobe fell 3% even though the Photoshop maker's FQ3 adjusted EPS of $6.13 beat by $0.05 and revenue rose 13% Y/Y to $6.76B, as its FQ4 revenue guidance of $6.8B-$6.85B came in slightly below the $6.84B consensus at the midpoint.
Revolve Shares Jump 4.9% as Kristin Ess Hair Launches on Platform
Revolve shares rose 4.9% in the afternoon session after haircare brand Kristin Ess Hair launched on the online fashion retailer's platform with a selection of more than 30 products. Kristin Ess Hair, a brand in the Maesa portfolio, made its debut on REVOLVE with a retail selection of over 30 new and bestselling items spanning haircare, styling, treatments, and glosses. The move marks a meaningful but not fundamentally business-changing development for a stock that has seen 27 moves greater than 5% over the last year. Revolve is down 30.7% since the start of the year and, at $20.48 per share, trades 34.9% below its 52-week high of $31.45 from December 2025.
American Eagle Q2 Revenue Beats at $1.38 Billion as Tariff Refunds Lift Margins
American Eagle Outfitters beat Wall Street's revenue expectations in Q2 CY2026, with sales up 7.5% year on year to $1.38 billion and adjusted earnings per share of $0.79 against analyst estimates of $0.22. Operating margin rose to 15.3% from 8% a year earlier, a gain management attributed primarily to a one-time tariff refund benefit that contributed $161 million to operating income and is not expected to recur. Aerie, the company's younger activewear-focused brand, posted 25% year-over-year revenue growth and 19% comparable sales growth, while the core American Eagle brand showed only modest improvement with slightly negative comps. Same-store sales rose 6% year on year across the company, and the retailer ended the quarter with 1,167 locations, down from 1,185 a year earlier. Management said it is relying on Aerie and the OFFLINE segment to deliver high teens to 20% comparable sales growth, while cautioning that inventory rebalancing and markdowns at American Eagle may pressure margins in the near term.
American Eagle Shares Plunge 15.4% Despite Strong Q2 Results
American Eagle Outfitters shares fell 15.4% in the afternoon session even after the young adult apparel retailer reported strong second-quarter results and raised its full-year outlook. Second-quarter revenue was $1.38 billion, up 8% year over year, with comparable sales up 6%, while diluted EPS of $0.79 exceeded Wall Street's $0.22 estimate and operating margin expanded to 15.3% from 8.0%. Aerie and OFFLINE drove the strength, with combined revenue up 25% and comparable sales up 19%, though American Eagle comparable sales fell 1%, and much of the profit improvement came from a $161 million net operating-income benefit from tariff refunds. Management guided for third-quarter gross margin to be roughly flat year over year and raised full-year operating income guidance to $540 million to $550 million, including the refund benefit. Investors instead focused on the namesake brand's weakness and the margin outlook, with Reuters reporting shares fell roughly 10% after the release and about 11% the following session, while the August Producer Price Index rose 5.4% year over year and crude oil climbed back above $100 a barrel, lifting freight costs and leaving shoppers with less to spend on apparel.
Zumiez Guides Q3 Sales to $222M-$226M, Pulls Full-Year EPS Guidance
Zumiez guided third-quarter net sales to between $222 million and $226 million, a decline of 5.5% to 7%, and said it would refrain from providing specific full-year earnings guidance. The retailer reported second-quarter net sales fell 2.5% to $209 million, with comparable sales down 2.1%, a net loss of $2.7 million, or 17 cents per share, and an operating loss of $1.3 million. Chief Financial Officer Christopher Work said third-quarter comparable sales are expected between negative 5% and negative 6.5%, product margin down 20 to 40 basis points, consolidated operating income between 1% and 1.7% of sales, and earnings per share between $0 and $0.10, compared with $0.55 a year ago. For the full year, Zumiez now expects sales down low single digits, including a $12 million negative impact from closed stores, and operating margin down slightly versus previously communicated growth of 50 to 100 basis points, with the tax rate rising to roughly 55% from 44% in fiscal 2025. Chief Executive Officer Richard Brooks said footwear was the most significant headwind, accounting for 70% of the total U.S. sales decline from the prior year through Labor Day, while international markets posted low single-digit positive comparable sales. Zumiez ended the quarter with cash and current marketable securities of $97.3 million, no debt, and inventory of $157.3 million, and completed its $40 million share repurchase program in early September.
Designer Brands Raises Full-Year Sales Guidance on Tariff Refunds and Brand Growth
Designer Brands Inc. raised its full-year sales guidance to flat-to-up 1%, citing a strong start to the third quarter and back-to-school performance exceeding internal expectations. Second quarter gross margin benefited from $20.2 million in tariff refund claims, contributing 280 basis points to the reported improvement, while the company recorded a one-time interest expense of $16.1 million related to the sale of those claims. The company achieved 150 basis points of core gross margin expansion through disciplined markdown management and elevated assortments, and brand portfolio growth of 18% was fueled by double-digit wholesale increases, including exclusive brands Topo and Jessica Simpson. Management expects the Topo brand to exceed $100 million in revenue by 2027, with growth from expanding into new specialty run distribution channels, and noted that athletic demand improved sequentially by 400 basis points in August. Total debt was reduced by over $93 million compared to the prior year, and the relaunch of the VIP rewards program this month aims to increase customer frequency and retention for the 30 million members who represent nearly 90% of total transactions.
Designer Brands Shares Rise 5.2% After Q2 Earnings Beat and Guidance Hike
Designer Brands shares climbed 5.2% after the DSW parent posted better-than-expected second-quarter results and raised its full-year guidance. Revenue fell 1.2% to $730.6 million, missing estimates of $744.7 million, while comparable sales declined 2.4%. Profitability impressed: adjusted gross margin improved to 47.9% from 43.6%, helped by better product selection and tighter inventory control, plus $15.3 million in tariff refunds that were not included in the adjusted margin. Adjusted earnings per share rose to $0.34 from $0.33, beating estimates of $0.26, and the Brand Portfolio segment grew comps 7.1%. Management cited a strong start to the third quarter and now expects full-year revenue growth of flat to 1%, up from a prior range of -1% to +1%, with adjusted earnings per share of $0.47-$0.52 versus an earlier forecast of $0.28-$0.38.
Shoe Carnival Q2 Sales Fall 7.2%, Cuts Fiscal 2026 Guidance
Shoe Carnival reported sharply weaker second-quarter results and lowered its fiscal 2026 outlook, with net sales falling 7.2% to $284.3 million and comparable-store sales declining 7.1%. Diluted earnings per share dropped to $0.23 from $0.70 a year earlier, while gross margin contracted 690 basis points to 31.9% as the company discounted merchandise and cleared aged inventory, which fell 5% year over year to $426.6 million. Within the two-banner group, Shoe Carnival sales declined 6.5% to $178.5 million and Shoe Station sales declined 8.4% to $105.7 million, though comparable e-commerce sales rose 18.8%. Interim President and Chief Executive Officer Cliff Sifford said assortments at Shoe Carnival and re-bannered Shoe Station locations had not been sufficiently aligned with the customers shopping those stores, and management is relying on localized assortments, increased advertising and fall boot sales, with August comparable-store sales improving to a 2.7% decline. The company now projects fiscal 2026 net sales of $1.1 billion to $1.111 billion and adjusted earnings per share of $0.75 to $0.90, and it ended the quarter with $131.6 million in cash equivalents and marketable securities and no debt outstanding.
Shoe Station Shares Fall 5% After Q2 Miss, Guidance Cut
Shoe Station Group shares fell more than 5 percent Thursday morning after the footwear retailer missed quarterly expectations and lowered its full-year outlook. In its first earnings report since officially changing its name from Shoe Carnival, the Fort Mills, S.C.-based company reported second-quarter fiscal 2026 net income of $6.3 million, or 23 cents per diluted share, down from $19.2 million, or 70 cents per diluted share, a year earlier, on net sales of $284.3 million versus $306.4 million, with comparable store sales declining 7.1 percent. Both figures came in below analyst expectations of net sales between $300 million and $301.33 million and earnings per share between 48 cents and 51 cents. By banner, Shoe Carnival net sales were $178.5 million, or 63 percent of total net sales, down 6.5 percent with a comparable store decline of 6.3 percent, while Shoe Station net sales were $105.7 million, or 37 percent of total, down 8.4 percent with a comparable store decline of 8.5 percent. The company rebannered 20 Shoe Carnival stores into Shoe Station stores during the quarter, bringing fiscal 2026 year-to-date rebanners to 21, and said it does not expect further rebanners this year. Interim president and chief executive officer Cliff Sifford said the results reflected an increasingly promotional footwear marketplace, with competitive pricing and accelerated liquidation of aged inventory pressuring gross margin, though he noted a significant improvement in fiscal August back-to-school results, when net sales declined 3.3 percent and comparable store sales declined 2.7 percent through the four weeks ended Aug. 29. Shoe Station cut its fiscal 2026 guidance to net sales of $1.10 billion to $1.11 billion, a decline of approximately 2 to 3 percent versus fiscal 2025, down from its prior outlook of $1.13 billion to $1.15 billion, a range of down 1 percent to up 1 percent.
Designer Brands Raises Full-Year Guidance After Q2 Profit Beat
Designer Brands raised its full-year guidance after posting better-than-expected second-quarter profit, sending its shares up more than 7% on Thursday. The company now expects net sales to be flat to up 1% and adjusted diluted EPS of $0.47 to $0.52, up from prior guidance of $0.28 to $0.38. For the second quarter, adjusted EPS came in at $0.34, beating consensus by $0.08, while net sales declined 1% to $730.63 million, missing estimates by $14.03 million. Total comparable sales decreased 2.4%, but a significant improvement in profitability cheered investors, and the company generated double-digit sales growth in its Brand Portfolio segment. CEO Doug Howe said the progress against the strategic plan has contributed to improved retail trends and a positive start to the third quarter, giving the company confidence to raise its full-year guidance. Cash and cash equivalents totaled $51.6 million at the end of the second quarter of 2026, compared to $44.9 million a year earlier.
Designer Brands Lifts Full Year Guidance After Q2 Profit Surge
Designer Brands Inc. raised its full year guidance after reporting a 66.7 percent jump in second quarter net income to $17.6 million, or 31 cents a diluted share, from $10.5 million, or 21 cents, a year ago. Adjusted diluted EPS came in at 34 cents, beating Wall Street's expectation of 26 cents, while net sales slipped 1.2 percent to $730.6 million from $739.8 million and comparable sales fell 2.4 percent. Within the quarter, retail sales totaled $671.1 million and sales in the brand portfolio were $86.3 million, with total segment sales of $757.3 million reduced to total net sales of $730.6 million after the elimination of intersegment net sales of $26.7 million. For the six months, net income was $18.7 million, or 34 cents, against a net loss of $7.3 million, or 15 cents, in the same year-ago period, with net sales essentially flat at $1.43 billion. For its full year 2026 projections, the company now expects net sales to be flat to up 1 percent on an adjusted diluted EPS range between 47 cents to 52 cents, up from prior guidance of net sales down 1 percent to up 1 percent on an adjusted diluted EPS between 28 cents and 38 cents. Chief executive officer Doug Howe credited meaningful gross margin expansion and impressive sales growth in the brand portfolio segment, adding that a positive start to the third quarter gave the company confidence to raise guidance. Designer Brands ended the quarter operating 523 DSW stores, 118 The Shoe Co. stores, and 27 Rubino stores, bringing its total store network to 668 doors.
Macy's raises guidance, Meta upgraded, Novartis board overhaul urged in premarket moves
Macy's reported a second-quarter revenue beat and raised its full-year guidance for net sales, comparable sales and earnings per share, though it was unclear whether its quarterly EPS of 40 cents was comparable to the 37 cent LSEG consensus estimate, and shares slipped 1.6%. Meta Platforms added 1.4% after an upgrade at JPMorgan, which sees meaningful upside potential as Meta rolls out its artificial intelligence models and products, while Apple rose 1% a day after unveiling its foldable iPhone and other products. Novartis rose nearly 2% after Reuters reported a major shareholder called for an overhaul of the drugmaker's board to boost corporate governance, following three drug trial setbacks earlier this week. AeroVironment jumped more than 5% after first-quarter adjusted earnings of 59 cents per share and revenue of $480 million trounced LSEG estimates of 25 cents a share on $456 million, while American Eagle Outfitters fell more than 15% on a 1% second-quarter comparable sales decline and current-quarter operating income guidance of $110 million to $115 million, below the $124.3 million StreetAccount consensus. Enbridge slid nearly 3% after announcing it would acquire Tallgrass Energy's crude transportation business for $2.55 billion, and Kinetik moved 4.6% higher following a Bloomberg News report that it is exploring options, including a potential sale.
Shoe Station Group Q2 Earnings and Revenues Miss Estimates
Shoe Station Group reported quarterly earnings of $0.23 per share, missing the Zacks Consensus Estimate of $0.32 per share and down from $0.7 per share a year ago. The result marked an earnings surprise of -28.13%, and the footwear retailer has surpassed consensus EPS estimates just once over the last four quarters. Revenue for the quarter ended July 2026 came in at $284.31 million, missing the Zacks Consensus Estimate by 4.97% and below year-ago revenues of $306.39 million, though the company has topped consensus revenue estimates two times over the last four quarters. Ahead of the release, the estimate revisions trend was mixed, translating into a Zacks Rank #3 (Hold), and the current consensus stands at $0.51 per share on $301.33 million in revenues for the coming quarter and $1.50 per share on $1.13 billion in revenues for the current fiscal year. Shoe Station Group shares have lost about 23.4% since the beginning of the year versus the S&P 500's gain of 11.6%.