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Five Below Q2 Sales Jump 22.9% as Premium Valuation Faces Execution Test
Five Below reported second-quarter net sales up 22.9% year over year to $1.26 billion, with comparable sales rising 14.1% and adjusted earnings more than doubling to $1.68 per share. Adjusted operating income increased 105.3% to $113.2 million, and adjusted operating margin expanded about 360 basis points to 9%, helped by higher merchandise margins and fixed-cost leverage. The stock trades at 21.84X forward 12-month earnings, above 14.41X for its Zacks sub-industry and 19.54X for the S&P 500, though below its five-year median of 27.55X, while adjusted earnings are projected to rise 51.7% in fiscal 2026. Inventory reached $941.2 million at the end of the second quarter, up 17.7% year over year, and the company faces tariff, freight, competition and litigation risks. Competitors Dollar General and Dollar Tree posted same-store sales growth of 3.5% and 3.7%, respectively, in their fiscal second quarters. Five Below carries a Zacks Rank #1 (Strong Buy), a VGM Score of B and a Growth Score of B, alongside a Value Score of D and Momentum Score of C.
Five Below Raises Fiscal 2026 Outlook After Q2 Earnings Beat
Five Below raised its fiscal 2026 outlook after second-quarter results exceeded expectations, lifting both its sales and earnings guidance. Adjusted earnings came in at $1.68 per share, topping the Zacks Consensus Estimate of $1.34, while net sales rose 22.9% year over year to $1.26 billion, above the consensus estimate of $1.192 billion. Comparable sales increased 14.1%, marking a fifth consecutive quarter of double-digit growth. The company now expects fiscal 2026 net sales of $5.63-$5.71 billion, up from $5.40-$5.48 billion, with comparable-sales growth of 10%-12% versus the prior 6%-8%, and adjusted earnings per share of $9.83-$10.31, up from $8.65-$9.05. Adjusted operating margin is expected to rise about 250 basis points year over year to roughly 12.5% at the midpoint, helped by merchandise-margin gains, fixed-cost leverage and lower tariff costs, though the guidance assumes tariff rates currently in place and faces higher outbound transportation fuel costs and a tougher shrink comparison.
Five Below Stock Jumps 26.9% as Raised Fiscal 2026 Outlook Lifts Earnings Estimates
Five Below shares have gained 26.9% over the past three months, helped by improving operating momentum, rising earnings expectations and management's upgraded fiscal 2026 outlook. The Zacks Consensus Estimate for fiscal 2026 earnings has increased 15.2% in the past four weeks. Comparable sales rose 14.1% in the fiscal second quarter, a fifth consecutive quarter of double-digit growth, driven by a 13.6% rise in transactions and a 0.4% increase in average transaction value, while the two-year comparable-sales stack reached 26.5%. Adjusted gross margin expanded about 220 basis points to 35.6%, adjusted operating margin rose about 360 basis points to 9%, and adjusted operating income increased 105.3% to $113.2 million. Management raised fiscal 2026 net sales guidance to $5.63-$5.71 billion and comparable-sales growth guidance to 10%-12%, and lifted adjusted earnings per share guidance to $9.83-$10.31 from $8.65-$9.05 previously, with adjusted operating margin expected to expand about 250 basis points to roughly 12.5% at the midpoint. FIVE trades at 21.8X forward 12-month earnings, above 14.3X for its Zacks sub-industry and 19.5X for the S&P 500, while inventory stood at $941.2 million, up 17.7% year over year, and the stock carries a Zacks Rank #1 (Strong Buy).
Academy Sports Q2 Beats, Analysts Raise Targets but Hold Ratings
Academy Sports and Outdoors reported second-quarter results for the period ended August 1, 2026, with net sales up 3.0% to $1.65 billion and adjusted earnings per share climbing 19.1% to $2.31 from $1.94. Gross margin widened 440 basis points to 40.4%, though comparable sales fell 0.4%, and management lifted full-year adjusted EPS guidance to $6.50 to $6.90 and gross margin guidance to 35.5% to 36.0%. Four analysts raised their price targets without upgrading the stock: Telsey Advisory went to $63 from $60 at Outperform, Wells Fargo's Ike Boruchow to $55 from $50 at Equal Weight, Barclays analyst Adrienne Yih to $53 from $50 at Equal Weight, and UBS to $58 from $55 at Neutral, while BMO Capital initiated coverage at Market Perform with a $42 target. Supporting the quarter, e-commerce sales grew 12.8%, Sports and Recreation rose 6%, myAcademy loyalty membership passed 15 million, and the company raised adjusted free cash flow guidance to $300 million to $350 million after repurchasing $182.1 million of stock in the first half. Caution persists, however, as traffic from households earning under $50,000 fell high single digits, footwear sales declined 1%, inventory rose 4.4% year-over-year, and 510 basis points of tariff refund benefit inside the 40.4% gross margin will not repeat. Hedge fund ownership fell to 29 funds from 31 between the first and second quarters of 2026, with Royce & Associates holding the largest position at 1.08 million shares worth $51 million, and shares trade at 8.16 times forward earnings as of September 15, 2026, with short interest at 23.30% of float.
Five Below Director Michael F. Devine III Sells 4,250 Shares for $1.1 Million
Michael F. Devine III, a director of Five Below, Inc., sold 4,250 shares of common stock on Sept. 4, 2026, a transaction valued at $1.1 million, according to a recent SEC Form 4 filing. The shares were sold in multiple transactions at prices ranging from $251.18 to $251.46, resulting in a weighted average execution price of $250.61 per share. Following the sale, Devine holds 12,953 shares directly, representing a 0.0234% ownership interest in the company, with that remaining stake valued at approximately $3.2 million based on the $247.12 closing price on Sept. 9, 2026. Five Below, headquartered in Philadelphia, reported trailing-twelve-month revenue of $5.3 billion and net income of $619.2 million, and carries a market capitalization of $14.0 billion with a workforce of 16,200 employees.
Zacks Adds AGCO, Boston Scientific, Bath & Body Works to Strong Sell List
Zacks Investment Research added three stocks to its Zacks Rank #5 (Strong Sell) List on September 16th. AGCO Corporation, an agricultural equipment manufacturer, saw its Zacks Consensus Estimate for current year earnings revised 8.1% downward over the last 60 days. Boston Scientific Corporation, a medical devices company, had its current year earnings estimate revised 1.8% downward over the same period. Bath & Body Works, Inc., a specialty retailer of home fragrance, body care, soaps and sanitizers, saw its current year earnings estimate revised 11.6% downward over the last 60 days.
Chewy Files Universal Shelf Registration to Keep Funding Options Open
Chewy filed a universal shelf registration statement covering multiple securities, including common and preferred stock, depositary shares, warrants, purchase contracts, and units the retailer may offer over time. The filing gives the company flexibility to raise capital quickly for potential acquisitions or other corporate investments, and it sits alongside a US$600.0m term loan and sizeable buybacks completed in recent months. The shelf also covers common equity, which could dilute holders and work against those recent share repurchases if Chewy tapped that route. Chewy operates a US-focused e-commerce platform for pet products, and its investment story leans on turning a subscription-heavy pet base and a vet services push into higher, steadier earnings, with new Chewy Vet Care Clinics expected to further penetrate the $25 billion vet services market. Analysts already flag heavy reliance on Autoship and modest customer growth, so the same financing move can read as prudent firepower or potential overreach depending on which Chewy narrative investors find most realistic.
National Vision Lifts Fiscal 2026 Guidance as Premium Demand Offsets Softer Traffic
National Vision Holdings raised its fiscal 2026 adjusted operating income guidance to $119-$139 million and its adjusted EPS guidance to between 94 cents and $1.09, as premium products and a higher-value customer mix offset weaker store traffic. In the second quarter of 2026, adjusted comparable store sales rose 2.2%, with a 7.1% increase in average ticket offsetting a 4.9% decline in traffic; the e-commerce replatform cut adjusted comparable sales by an estimated 150 basis points, and excluding that impact America's Best would have delivered slightly more than 4% growth. Management now expects fiscal 2026 adjusted comparable store sales growth of 3% to 5%, and the Zacks Consensus Estimate for 2026 EPS has risen 4.3% to 98 cents over the past 30 days, while the 2026 revenue consensus stands at $2.06 billion, up 3.8% from the year-ago reported figure. The company, which has a market capitalization of $1.37 billion and a long-term estimated earnings growth rate of 19.5% versus the industry's 10.5%, still faces rising costs, with second-quarter costs applicable to revenues up 60 basis points to 41.8% of net revenues, and heavy vendor concentration, as roughly 86% of fiscal 2025 lens expenditures came from one vendor and nearly 96% of contact lens expenditures were with three vendors. National Vision shares have fallen 25.8% over the past 12 months, compared with an 8.9% decline for the industry and a 16.5% rise for the S&P 500 composite.
Chewy Targets Pet Health, AI and Clinics for Next Growth Phase
Chewy is prioritizing U.S. health services, customer spending expansion and artificial intelligence as its next growth phase, CEO Sumit Singh said during a Goldman Sachs conference fireside chat. Singh characterized pet health as a roughly $50 billion total addressable market, including an estimated $12 billion to $15 billion in products such as medications, prescription diets, supplements and flea-and-tick treatments, and said Chewy has become the country's largest pet pharmacy since entering the category in 2018, capturing about $0.70 of every dollar moving online in pet medications and related products. Over the past six years Chewy added approximately $9 billion in incremental revenue, with about $4 billion coming from Chewy Health, and each existing customer who becomes a pharmacy customer adds approximately $300 to $500 in net sales per active customer. The company operates 60 veterinary clinics that Singh said are outperforming expectations, with a Chewy Vet Care clinic expected to generate about $3.5 million in revenue plus roughly $800,000 in additional website sales for approximately $4.3 million combined, reaching break-even in about 20 months, and it acquired Modern Animal to immediately double its clinic base. Chewy continues to target 150,000 to 250,000 net active-customer additions and aims for long-term high-single-digit to low-double-digit revenue growth, self-funding most initiatives through its base business, clinic margins and an expected $50 million in AI savings in 2027, with health acquisitions the next capital-allocation priority after reinvestment and international expansion remaining a lower priority.
Ulta Beauty Raises Outlook, Lifts Buybacks to $1.8 Billion After Target Exit
Ulta Beauty executives said the company is seeing continued resilience in consumer beauty spending and has raised its full-year outlook after exceeding prior guidance in the second quarter. Speaking at a Barclays conference, President and Chief Executive Officer Kecia Steelman said fragrance is among Ulta's fastest-growing categories and that the company aims to become the No. 1 fragrance retailer in the U.S., while wellness, a $400 billion category growing faster than beauty, could become Ulta's next billion-dollar category. Ulta ended its Target partnership in mid-August, and Steelman said prestige brands involved in the relationship have returned to the Ulta ecosystem, giving the company an opportunity to recapture sales that the partnership had initially cannibalized. Chief Financial Officer Chris DelOrefice said average spending per loyalty member rose in the second quarter, with no material demand changes across age groups or income cohorts, and that the company increased its planned annual share repurchases to $1.8 billion while targeting modest operating-margin improvement. Ulta's loyalty program has 47 million members, with 95% of sales coming through members, and stores account for 80% of sales while online represents 20%.
Chewy Posts 7.3% Sales Gain, Raised Outlook as Evercore Downgrades on Thin Margin Beat
Chewy reported second-quarter results on September 9, 2026, with net sales up 7.3% to $3.33 billion, adjusted EPS of $0.36, and a raised full-year outlook. Following the results, Evercore ISI downgraded Chewy to In Line, while RBC and TD Cowen cut their price targets, and the stock fell roughly 10% intraday before bouncing, sitting about 48% below its 52-week high. Active customers rose 3.8% to 21.7 million, and AI is expected to deliver approximately $50 million of annualized savings in fiscal 2027, but organic revenue growth excluding M&A slowed to 5.7%. The 6.8% adjusted EBITDA margin benefited from tariff refunds, rebate timing and other discrete items that management said accounted for essentially all of the quarter's adjusted EBITDA outperformance versus expectations. According to Evercore ISI, the quarter delivered only a minimal beat-and-raise, leaving the stock in need of an obvious growth catalyst, with none on the horizon, and the shares trade at 35x earnings. Insider Monkey data shows 44 hedge funds held CHWY in the second quarter of 2026, down from 53 in the first quarter.
Five Below Insiders Sell $3.7 Million in Shares After 39% Stock Run-Up
Two Five Below insiders sold roughly $3.7 million in company stock days after the discount retailer posted strong second-quarter results and raised its full-year guidance. Director Michael Devine sold about 4,250 shares on Sept. 4 in two batches, roughly 3,400 shares at $250.44 each and 850 shares at $251.28 each, for a total of about $1.1 million, leaving him 12,953 shares worth approximately $3.1 million at the current price of $243. Chief Operating Officer Kenneth Bull sold about 1,510 shares the same day at prices ranging from $240 to $255, averaging $248, for roughly $2.6 million, and still holds about 75,064 shares worth approximately $18.2 million. The sales followed Five Below's Sept. 2 earnings report, in which net sales rose 23% to $1.3 billion, comparable store sales surged 14%, adjusted operating income jumped 105% to $113 million, and adjusted net income climbed 108% to $93.4 million, or $1.68 per share. The company raised its full-year outlook to $5.63 billion to $5.71 billion in net sales, 10% to 12% comparable sales growth, and adjusted earnings per share of $9.83 to $10.31, and launched a $600 million share buyback program. Analysts upgraded their targets after the report, with Morgan Stanley raising its target by $65 to $300 per share and UBS lifting its target by $40 to $325 per share.
1-800-Flowers Posts 10.8% Revenue Drop, Hits Cost Savings Target Early
1-800-Flowers.com Inc. reported fiscal 2026 revenue fell 10.8% to $1.5 billion, with fourth-quarter revenue down 12.9% to $293.1 million. The company reached its $50 million cost savings run rate a full year ahead of schedule and has lined up another $15 million to $20 million in savings for fiscal 2027, helping lift free cash flow by $55 million year over year and cut inventory to $153 million from $177 million. Total transactions fell 17.6% for the year, adjusted EBITDA collapsed to $2.9 million from $29.2 million, and adjusted gross margin slipped 110 basis points to 38%. CFO James Langrock said cocoa remains a year-over-year headwind and flagged the fuel surcharge on outbound shipping as another potential cost problem, while CEO Adolfo Villagomez said revenue trends remain challenged and improving them is the highest priority. Fiscal 2027 guidance calls for another mid-single-digit revenue decline and adjusted EBITDA of $10 million to $15 million.
Academy Sports Posts Q2 Profit Surge on Tariff Refund, Raises Guidance
Academy Sports and Outdoors reported second quarter results on September 10 that showed net sales up 3% to $1.65 billion while comparable sales slipped 0.4%. Adjusted earnings per share climbed 19.1% to $2.31 from $1.94 a year earlier, and gross margin expanded 440 basis points to 40.4%, with 510 basis points of that gain coming directly from one-time tariff refunds. The company raised its full-year adjusted EPS guidance to $6.50 to $6.90 and its gross margin guidance to 35.5% to 36.0%, and repurchased $181 million of stock in the first half, about 5% of shares outstanding. Underneath the margin story, traffic from households earning less than $50,000 a year fell in the high single digits, steeper than the low single-digit decline in the first quarter, while traffic from households earning more than $100,000 accelerated to high single-digit growth. CFO Carl Ford said fuel costs will stay elevated for the rest of the year and CEO Steve Lawrence said the consumer backdrop will remain challenged in the back half, and the company confirmed it has already received substantially all of its tariff refunds, meaning the 510 basis point margin tailwind will not repeat.
Signet Jewelers Lifts Full-Year Guidance on Tariff Refunds and Cost Discipline
Signet Jewelers raised its full-year adjusted earnings guidance by more than 10% after reporting second quarter FY27 results on September 9, citing tariff refunds, additional share buybacks and resilient operating performance. Same store sales rose 2.2% year over year, though total reported sales slipped 0.5% to $1.528 billion, and adjusted operating income climbed to $107.2 million from $85.4 million a year earlier, producing adjusted diluted earnings per share of $2.19 versus $1.61. Gross margin reached 39.4%, up 80 basis points, a gain that included roughly $15 million in tariff refunds along with lower inventory and distribution expenses, while adjusted operating margin rose to 7% from 5.6%. The company bought back $87 million, or 1 million common shares, during the quarter and plans a $125 million Accelerated Share Repurchase program in the near term. For the full year, Signet now forecasts adjusted operating income of $535 million to $605 million, up from prior guidance of $480 million to $560 million, and adjusted diluted EPS of $10.45 to $12.15, revised from $9.20 to $11.
Signet Jewelers closes 53 stores, plans about 100 more in fiscal 2027
Signet Jewelers closed 53 stores between January 1, 2026, and August 1, 2026, leaving the company with 2,534 locations, as part of a restructuring that will shutter approximately 100 stores in fiscal 2027 while it renovates its remaining fleet. The closures follow a comprehensive review revealed during Signet's fourth-quarter fiscal 2026 earnings call, in which the company prioritized its three core brands, Kay Jewelers, Zales, and Jared, and folded smaller names into larger banners, making James Allen a proprietary collection within Blue Nile and integrating Rocksbox into Kay Jewelers. Chief Operating and Financial Officer Joan Hilson said on that call that the cash generation from these businesses, as well as the potential tax cost of exiting the brands, significantly outweighs any potential sale proceeds, and the retailer said it will keep evaluating the long-term role of Banter. In the second quarter of fiscal 2027, Signet reported net sales down 0.5% year over year, same-store sales up 2.2%, North America same-store sales up 1.9%, and adjusted operating income up 25%, and it raised full-year guidance for the second time. Chief Executive Officer J.K. Symancyk said the company is accelerating key brand initiatives, including merchandise refreshes and a more modern marketing approach, and is entering the back half of the year well-positioned for the holiday season. Signet also launched a new brand platform, Love All In, on September 8, 2026, refreshing the store experience with new visual merchandising, navigation, and product education, plus pilots in open selling, custom design, and interaction zones.
Morgan Stanley Cuts Chewy Price Target to $36, Calls 11% Sell-Off Overdone
Morgan Stanley cut its price target on Chewy to $36 from $37 while maintaining an Overweight rating, calling the stock's 11% sell-off on earnings day an overreaction in a note titled Managing Through the Treat-cession. Chewy's Q2 fiscal 2026 net sales of $3.33 billion grew 7.3% year over year, but organic growth was 5.7% after stripping out contributions from the SmartPak and Modern Animal acquisitions, decelerating approximately 120 basis points from Q1. The EBITDA beat included roughly $15 million in one-time items, and excluding those, the midpoint of fiscal year 2026 EBITDA guidance decreased by approximately 6 basis points, while stock-based compensation jumped 17% quarter over quarter. Morgan Stanley sees weakness stabilizing at roughly 6% organic growth and views the redesigned Chewy+ membership program, launching very shortly, as the key catalyst that could drive fiscal 2027 top-line acceleration. The firm's DCF yields a $36 base case, a $55 bull case requiring 8% revenue growth and 13% margins, and a $14 bear case assuming 4% revenue growth.
National Vision Beats Q2 Estimates, Raises 2026 Profit Outlook
National Vision Holdings reported second-quarter 2026 adjusted earnings of 25 cents per share, up 38.9% year over year and beating the Zacks Consensus Estimate by 47.1%. Quarterly net revenues rose 2.5% year over year to $498.81 million, topping the consensus mark by 1.4%, as adjusted comparable store sales increased 2.2% on higher average ticket and continued strength in managed care. The company narrowed its adjusted comparable store sales growth outlook to 3-5% from 3-6% and now projects net revenues of $2.037-$2.076 billion, down from a prior range of $2.033-$2.091 billion, while lifting the lower end of its adjusted EPS guidance to 94 cents from 85 cents with the upper end unchanged at $1.09. During the quarter National Vision repurchased about 1.2 million shares for $20.0 million, leaving $30.0 million under its authorization, and ended with $36.0 million in cash and total debt of $237.7 million. Since the earnings release, the consensus estimate has shifted -40%, and the stock has lost about 10.1% over the past month, underperforming the S&P 500.
Rent the Runway Guides Q3 Revenue to $87M-$90M, Names Paige Thomas CEO
Rent the Runway said it expects third-quarter revenue of $87 million to $90 million, flat to 3% growth versus Q3 2025, with adjusted EBITDA of negative 3% to negative 6% of revenue. The company also announced that Paige Thomas has been appointed Chief Executive Officer, President and a Member of its Board of Directors effective September 14, succeeding interim CEO Teri Bariquit. For the second quarter, total revenue was $97.7 million, up 20.8% year-over-year and an all-time record, while gross profit margin improved 609 basis points to 36.1% and adjusted EBITDA reached $12.6 million, or 12.9% of revenue. Rent the Runway ended the quarter with 140,826 active subscribers, down 3.8% year-over-year, and reported free cash flow of negative $21.6 million for year-to-date 2026. To bolster liquidity, the company detailed a $10 million term loan and a planned $15 million rights offering to holders of its Class A common stock, backstopped by certain investors, while reaffirming full-year 2026 guidance for double-digit revenue growth and adjusted EBITDA of 4% to 7% of revenue.
Sally Beauty's Fuel for Growth Delivers $9 Million in Q3 Benefits
Sally Beauty Holdings said its Fuel for Growth program delivered $9 million in pre-tax benefits in the third quarter of 2026, lifting adjusted gross margin 40 basis points year over year to 52.4%. The gains spanned both operating segments, with the Sally segment's gross margin up 60 basis points to 61.5% and its operating margin up 80 basis points to 16.6%, while the BSG segment's gross margin rose 70 basis points to 40.1%. Fuel for Growth also provided $2 million in SG&A cost offsets in the quarter, helping absorb higher labor and rent expenses. For fiscal 2026, Sally Beauty remains on track to deliver approximately $45 million in savings, which would bring the program to roughly $120 million in cumulative run-rate savings over the three-year period.
Rent the Runway Q2 Revenue Hits Record $97.7 Million, Names Paige Thomas CEO
Rent the Runway reported record second-quarter revenue of $97.7 million, up 20.8% year over year and 8.7% sequentially, while adjusted EBITDA rose to $12.6 million from $3.6 million and gross margin expanded to 36.1% from 30%. The company also announced that Paige Thomas will become chief executive officer, president and a board member effective Sept. 14, with interim CEO Teri Bariquit moving to non-executive chair of the board on the same date. Ending active subscribers fell 3.8% to 140,826 as pauses increased and promotions were reduced, though average active subscribers rose 1% to 148,259. Rent the Runway paused its marketplace, on-site advertising monetization and new business-to-business dry-cleaning initiatives, announced a $15 million rights offering backstopped by Story3 Capital Partners, Nexus Capital Management and Ares Principal Strategies, and secured a $10 million term loan. The company reaffirmed fiscal 2026 guidance for double-digit revenue growth and adjusted EBITDA of 4% to 7% of revenue, but forecast third-quarter revenue of $87 million to $90 million, flat to up 3% year over year, with adjusted EBITDA of negative 3% to negative 6% of revenue.
Oracle surges on AI growth, ACV Auctions jumps on $1.9B Copart deal
Oracle shares surged 6.3% in premarket trading after the software and cloud computing company reported fiscal first-quarter 2027 results that beat Wall Street expectations across several key measures. Revenue rose 30% year over year to $19.35 billion, topping the $19.13 billion consensus, while adjusted earnings per share of $1.92 comfortably exceeded expectations in the $1.73 to $1.75 range. The strongest part of the report was Oracle's cloud infrastructure business, where revenue jumped 121% from a year earlier to $7.4 billion, and the company said GPU utilization stood at 97.9%. Oracle also secured about $30 billion in new AI-related contracts during the quarter and raised its fiscal 2027 revenue guidance to above $90 billion. Separately, ACV Auctions shares soared 43.6% in premarket trading after Copart announced a definitive agreement to acquire the online automotive marketplace in an all-cash deal valued at approximately $1.9 billion, with Copart launching a tender offer for all outstanding ACV Auctions shares at $10.50 in cash. Copart shares gained 6.2% premarket after reporting fiscal fourth-quarter revenue of $1.15 billion, narrowly beating the $1.14 billion consensus, though earnings per share of $0.35 fell below the $0.39 analyst estimate. Adobe shares fell 2.8% before the open after its fourth-quarter revenue guidance midpoint came in just below analyst expectations, even as fiscal third-quarter revenue of $6.76 billion and non-GAAP earnings per share of $6.13 each beat consensus by about 1%; longtime CEO Shantanu Narayen said Anil Chakravarthy will become President and CEO on Dec. 1, 2026, with Narayen moving to Executive Chair. Chewy slipped 1.9% after JPMorgan downgraded the online pet retailer to Neutral from Overweight and cut its price target to $24 from $29, while Frequency Electronics jumped 30.5% on record fiscal first-quarter 2027 results and Alliance Entertainment Holding surged 69.1% on fiscal 2026 results that beat expectations.
Zacks Adds DICK'S Sporting Goods, AngloGold Ashanti and Centerspace to Strong Sell List
Zacks Investment Research added three stocks to its Zacks Rank #5 (Strong Sell) List for September 11th. DICK'S Sporting Goods, ticker DKS, an omni-channel sporting goods retailer, saw its Zacks Consensus Estimate for current year earnings revised 17.8% downward over the last 60 days. AngloGold Ashanti PLC, ticker AU, a gold mining company operating in Africa, the Americas and Australia, had its current year earnings estimate revised almost 8.6% downward over the same period. Centerspace, ticker CSR, a real estate development company focused on apartment communities, saw its current year earnings estimate revised almost 6.2% downward over the last 60 days.
1-800-FLOWERS Shares Fall 13% on Wider Loss and Weak Guidance
1-800-FLOWERS shares fell 13% after the e-commerce florist and gift retailer reported a wider-than-expected quarterly loss, a massive full-year net loss, and weak forward guidance. Quarterly revenue came in at $293.1 million, down 12.9% year over year, with an adjusted loss of $0.80 per share, missing Wall Street's expectation of a $0.72 loss. For the full year, the company posted revenue of $1.50 billion, adjusted EBITDA of $2.9 million, and a net loss of $134.8 million, which included a $45.2 million non-cash goodwill and intangible impairment charge. 1-800-FLOWERS also amended its credit agreement and projected fiscal year 2027 EBITDA of $12.5 million at the midpoint, far below analyst estimates of $20.02 million. The stock is down 21% since the start of the year and trades at $2.92 per share, 48.4% below its 52-week high of $5.65 from September 2025.
1-800-Flowers.com Posts 12.9% Q4 Revenue Drop, Guides Fiscal 2027 EBITDA to $10-$15 Million
1-800-Flowers.com reported a 12.9% decline in fourth-quarter revenue to $293.1 million, with full-year revenue down 10.8% to $1.5 billion and adjusted EBITDA for fiscal 2026 falling to $2.9 million from $29.2 million a year earlier. Within the quarter, Consumer Floral & Gift revenue fell 13.4% and Gourmet Foods & Gift Baskets dropped 15.4% on Easter timing, while the BloomNet segment rose 1.9%. The company said it completed its original $50 million run-rate cost savings target ahead of plan and has identified an additional $15-$20 million of opportunities across cost of goods sold and operating expenses, to be executed in fiscal 2027 with full benefit in fiscal 2028. For fiscal 2027, 1-800-Flowers.com expects revenue to decline in the mid-single-digit range and adjusted EBITDA of $10 million to $15 million, including approximately $12 million of additional variable compensation expense versus fiscal 2026. Executive Chairman James McCann said the company is evaluating potential divestitures of non-strategic assets and a capital raise with Guggenheim Securities, alongside an amended credit facility that provides additional covenant flexibility.
Doctor Glasses loses final appeal in DOCTOR trademark cancellation case, says prior-use rights allow continued use
Doctor Glasses Chain Co., Ltd. announced on September 11 that it received an administrative judgment from the Beijing High People's Court, which issued a final ruling in the administrative dispute over the cancellation review of the DOCTOR trademark, registration number 1091685, brought by the company against the China National Intellectual Property Administration and a third party, Mo X Hong. The court rejected the appeal and upheld the original judgment. The case originated in December 2023, when the third party applied to cancel the company's trademark on the grounds that it had not been used for three consecutive years. Both the China National Intellectual Property Administration and the first-instance court ruled to cancel the trademark's registration for the services under review. The company appealed, and this final judgment upheld the original decision. The company stated that the trademark was applied for in 1996 and has been in use since then. Under the current Trademark Law, the company enjoys prior-use rights, and after the judgment it can continue to use the trademark normally within its existing store network. It would be difficult for others to register the trademark for similar goods or services or to claim that the company is infringing. The company's own-brand lenses and frames do not use this trademark, and this judgment will not have a material adverse impact on the company's production and operations.
Barington Builds Bath & Body Works Stake, Urges Strategic Sale
Barington Capital Group has built a fresh position in Bath & Body Works Inc. and is pressing the retailer's board to explore a strategic sale, sending the shares up 2.3% in extended trading Thursday. Barington Chief Executive Officer James Mitarotonda told Bloomberg the activist firm holds approximately one million shares in the Columbus, Ohio-based company he previously targeted in 2019 under its former identity, L Brands. Mitarotonda said the personal-care chain should immediately retain financial advisers to launch a sale process, arguing that persistent leadership turnover has severely depressed its valuation despite durable brand equity and strong cash flow, and that its market-leading position would draw significant private equity interest. Barington is also calling for aggressive share repurchases and plans to formalize its demands in a forthcoming letter to the board while evaluating a potential proxy contest for board representation. A Bath & Body Works spokesperson told Bloomberg the company regularly engages with investors and remains committed to evaluating all avenues to enhance shareholder value. Since spinning off Victoria's Secret and rebranding in 2021, Bath & Body Works has seen its stock decline roughly 78% alongside a 50% drop in net income, though Mitarotonda offered a measured endorsement of current Chief Executive Officer Daniel Heaf, who joined last year from Nike Inc.
Barington Takes Stake in Bath & Body Works, Pushes for Sale
Bath & Body Works rose 3.3% in after-hours trading after a report that activist investor Barington Capital has taken a stake in the retailer and wants it to explore a sale. Barington CEO James Mitarotonda told Bloomberg that changes are needed at the company, saying its market leadership, brand value and cash flow should draw considerable interest, likely from private equity firms. Barington owns about 1 million Bath & Body Works shares and wants the company to increase revenue and repurchase shares. The firm plans to publish a letter to the board in the coming weeks and is looking into potential board representation. Barington previously led a campaign against the company in 2019, when it was named L Brands. Bath & Body Works told Bloomberg it regularly engages with shareholders and values their perspectives, and that its board and management team continually evaluate opportunities to enhance shareholder value.
Chewy Shares Fall 11% Despite Q2 Beat and Raised Guidance
Chewy shares are down 11% this week as of noon ET on Thursday, even after the online pet goods retailer beat Wall Street's sales expectations in its second-quarter earnings report on Wednesday and posted adjusted earnings per share in line with analyst hopes. The company also raised its full-year guidance, but analysts noted that a one-time tariff benefit may have helped Chewy beat earnings, and the stock tumbled regardless. Second-quarter highlights included sales growth of 7.3%, with 5.7% organic growth, a 3.8% increase in active customers to 21.7 million, a 1.9% rise in net spend per active customer, autoship revenue growth of 9.3%, adjusted EPS climbing 9.1%, and Chewy Vet Care clinic revenue soaring by triple digits. Management guided for 6.8% to 7.7% revenue growth in 2026. CEO Sumit Singh said the pressured consumer backdrop for the pet market did not see a meaningful recovery but did not deteriorate further, adding that the environment has broadly stabilized and Chewy continues to outperform the broader pet category by roughly 2x to 3x.
Five Below Posts 14.1% Q2 Comp Growth, Raises Full-Year Guidance
Five Below reported 14.1% comparable sales growth in the second quarter, extending its streak of double-digit comps to five consecutive quarters. The Q2 increase topped the 12.4% comp posted a year earlier, with demand spread across all customer groups and product categories, evidence that the turnaround under CEO Winnie Park, who joined in December 2024, is well underway. Management raised full-year comparable sales guidance to a midpoint of 11% and adjusted earnings per share to $10.07, a 51% year-over-year increase. Gross margins expanded by 220 basis points to 35.6%, helping drive adjusted operating income up over 100% to $113 million. The retailer recently opened its 2,000th store and is adding roughly 150 net new stores this year toward a long-term target of more than 3,500 locations, funded by a balance sheet with $1.2 billion in net cash. Management expects comparable sales growth of 9% at the midpoint in the third quarter but just 3% for the fourth quarter, as comparisons turn against a 15.4% comp from Q4 of last year and a 22.7% comp in Q1 2026.
1-800-FLOWERS.COM, Inc. told investors on its fourth-quarter fiscal 2026 earnings call that revenue is expected to decline in the mid-single-digit range for fiscal 2027, with adjusted EBITDA guidance of $10 million to $15 million. That EBITDA figure includes a $12 million headwind from incremental variable compensation compared to the prior year, and the bridge from $2.9 million in reported EBITDA starts with $50 million in run-rate cost savings and the roll-off of consulting fees. The company said it hit its original $50 million two-year cost savings target within one year and has identified an additional $15 million to $20 million in cost-saving opportunities across COGS and OpEx to be executed in fiscal 2027, with full benefits realized in fiscal 2028. It amended its credit facility for greater covenant relief and flexibility to retain proceeds from potential asset sales, and retained Guggenheim Securities to evaluate capital-raising options including potential debt or equity financing and divestitures of non-strategic assets. Fourth-quarter gross margin was hurt by sales deleveraging and higher commodity costs, partially offset by an approximately $7 million benefit from tariff refunds, while cocoa prices remain a year-over-year headwind.
Academy Sports Q2 Sales Rise 3% to $1.6 Billion, Reaffirms Full-Year Guidance
Academy Sports and Outdoors reported second quarter net sales of $1.6 billion, up 3% year over year, with comparable sales down 0.4%, and reaffirmed its full-year sales guidance of plus 3% to plus 5%, translating to a flat to plus 2% comp for fiscal 2026. Gross margin for the quarter was 40.4%, up approximately 440 basis points year over year, driven by 510 basis points from tariff refunds and partially offset by a negative 70 basis point impact from merchandise margin as the company reinvested tariff refund proceeds into lower prices. Diluted earnings per share was $2.17, up 17.3%, and adjusted earnings per share was $2.31, up 19.1%, with tariff refunds net of strategic investments adding $0.06 to both figures. E-commerce grew 12.8% in the quarter, new stores in the comp base contributed approximately 50 basis points to comp, and the company repurchased approximately $181 million of shares in the first half, about 5% of shares outstanding, leaving $256 million on its repurchase authorization. Academy raised its full-year gross margin rate guidance to 35.5% to 36.0%, affirmed net income guidance of $390 million to $415 million, and raised EPS guidance to $6.05 to $6.45, with adjusted EPS of $6.50 to $6.90.
1-800 FLOWERS.COM reported fourth-quarter non-GAAP earnings per share of -$0.80, missing estimates by $0.08, while revenue of $293.12 million fell 12.9% year over year and missed by $0.48 million. Total consolidated revenues decreased 12.9% to $293.1 million, which the company attributed primarily to a strategic shift to improve marketing effectiveness and profitability. Within that total, Consumer Floral & Gifts revenues declined 13.4% and Gourmet Foods & Gift Baskets revenues, which were impacted by the timing of Easter, declined 15.4%, while BloomNet revenues increased 1.9%. For Fiscal 2027, the company expects net revenues to decline in the mid-single digit range compared with Fiscal 2026, and expects adjusted EBITDA of $10 million to $15 million, which includes approximately $12 million of additional compensation expense versus Fiscal 2026. Shares rose 5% in after-hours trading.
Zacks Adds Build-A-Bear, Barrett Business Services and Buzzi to Strong Sell List
Zacks Investment Research added three stocks to its Zacks Rank #5 Strong Sell List for September 10th. Build-A-Bear Workshop, ticker BBW, the leading and only national company providing a make your own stuffed animal interactive retail-entertainment experience, saw its Zacks Consensus Estimate for current year earnings revised almost 11.6% downward over the last 60 days. Barrett Business Services, ticker BBSI, which provides light industrial, clerical and technical employees through staff leasing, contract staffing, site management and temporary staffing arrangements, had its current year consensus estimate revised almost 10.6% downward over the same period. BUZZI SPA, ticker BZZUF, which manufactures, distributes and sells cement, ready-mix concrete and aggregates, saw its current year consensus estimate revised 8% downward over the last 60 days.
Yuanta rates SINGER a Buy with 13.70 baht target as 2026 profit set to surge 516%
Yuanta Securities said, after speaking with SINGER's management, that the company's product sales are accelerating well and are expected to meet its third-quarter 2026 target of 25% QoQ growth, supported by an expanding dealer base and a continuously rising number of sales staff. Meanwhile, loan disbursements for SGC's Lock Phone product are performing better than expected, rising about 20% quarter-to-date in July and August, with customer demand still increasing in September, giving SGC a strong chance of exceeding its own target of 14 billion baht in new loan disbursements this year. As for the sale of the vehicle registration pledge loan portfolio, the transfer of the portfolio will begin in the fourth quarter of 2026 and is initially not expected to have a significant negative impact; it is a move to accelerate the restructuring of the portfolio toward a higher proportion of higher-yielding Lock Phone loans. On regulatory risk from the Bank of Thailand's tightening of non-bank controls, the company assesses the impact as limited, since it already conducts business in line with Market Conduct principles and charges loan interest of no more than 25%, in line with its personal loan licence. Given the positive view on SINGER group's strong third-quarter 2026 operating outlook, Yuanta raised its forecasts for interest income and profit from product sales for 2026/27, lifting its net profit forecasts for SINGER for 2026/27 by 6.8% and 4.9% respectively. Under the new forecasts, net profit in the second half of 2026 is expected to grow strongly YoY and continue rising HoH, driven by higher profit from electrical appliance sales and accelerating interest income from lending, while expenses remain at a low level. This supports full-year 2026 net profit for SINGER of 647 million baht, a standout 516% YoY increase, followed by a further 21.5% YoY rise in 2027. Yuanta views the share price decline as merely concern over higher bond yields during a period when crude oil prices have surged amid rising unrest in the Middle East, while SINGER's operating performance can still grow well through expanding its customer base in the provinces, both in electrical appliance sales and in higher Lock Phone lending by SGC. The company also has no plans to issue additional debentures this year and will receive proceeds from the sale of the vehicle registration pledge portfolio in the fourth quarter of 2026, so it does not need to rush into new debenture issuance while bond yields are rising. It therefore sees the share price correction as an accumulation opportunity and maintains its Buy recommendation with a new 2027 fundamental value of 13.70 baht, implying 29.3% upside.
Yuanta says SINGER's Q3/69 profit looks bright as electrical appliance sales grow over 20%
Shares of Singer Thailand, or SINGER, rose 3.77%, or 0.40 baht, to 11.00 baht at 10:42 a.m., with trading value of 29.46 million baht, from an opening price of 11.10 baht, reaching a high of 11.10 baht and a low of 10.90 baht. Yuanta Securities (Thailand) said SINGER's third-quarter 2569 profit outlook is outstanding, driven by electrical appliance sales accelerating more than 20% compared with the previous quarter, or QoQ, and by continued expansion of Locked Phone loans at SG Capital, or SGC. This development is a positive surprise for the market, since electrical appliance sales normally slow QoQ in the third quarter of 2569 due to seasonal effects. The growth that occurred therefore ran counter to market expectations.
Academy Sports raises FY 2026 EPS guidance to $6.05-$6.45
Academy Sports and Outdoors raised its full-year fiscal 2026 earnings per share guidance to $6.05-$6.45, with adjusted EPS of $6.50-$6.90, while reaffirming sales guidance of $6.23 billion to $6.36 billion. The company reported second-quarter sales of $1.6 billion, up 3%, with a slightly negative comp of down 0.4%, and diluted EPS of $2.17, or adjusted EPS of $2.31. Gross margin for the quarter was 40.4%, up about 440 basis points year-over-year, driven by 510 basis points from tariff refunds, partially offset by a 70 basis point negative impact from merchandise margin as the company reinvested refund proceeds into pricing. Management said it has received substantially all tariff refunds and expects no additional net P&L impact for the rest of the year, while anticipating a more promotional holiday season. The company also launched HOKA in 15 stores and online, and expanded its new category to roughly 85 doors, aiming for 135 by year-end.
Chewy Q2 Earnings Show 7.3% Revenue Growth, Raises AI Savings Outlook
Chewy, Inc. reported second-quarter fiscal 2026 results, with revenue growing 7.3% as the company outperformed the broader pet category by 2x to 3x. Management highlighted triple-digit growth in Chewy Vet Care and fresh and frozen products, while Autoship sales reached 84.6% of total net sales. Adjusted EBITDA margin came in at 6.8%, including about $15 million in one-time benefits, and the company completed its $400 million acquisition of Modern Animal during the quarter. For fiscal 2026, Chewy expects AI initiatives to generate low-tens of millions in cost savings, scaling to approximately $50 million annually by fiscal 2027, and maintains a free cash flow conversion rate of about 80%. The company plans to launch a redesigned Chewy Plus program in Q3, integrating health benefits to deepen customer engagement.
Signet Jewelers Raises Guidance, Expands Buyback After Strong Q2
Signet Jewelers reported fiscal 2027 second-quarter revenue of $1.5 billion, with same-store sales up 2.2% and adjusted EPS up 36% year over year, prompting the company to raise its full-year outlook and expand its buyback program. The company lifted its full-year same-store-sales guidance to flat to up 2.5% and now expects adjusted operating income of $535 million to $605 million, an increase of nearly $50 million at the midpoint. Signet also renewed its consumer-credit partnership with Bread Financial for seven years through December 2035, a deal it estimates will generate more than $1 billion in incremental revenue and operating income over its term. The company increased its share-repurchase authorization by nearly $400 million and plans a $125 million accelerated share repurchase this month. CEO J.K. Symancyk cited strong performance at higher price points, with timepieces posting nearly double-digit comparable-sales growth, while fashion sales declined 1%.
Academy Sports and Outdoors reported second-quarter fiscal 2026 net sales of $1.6 billion, up 3% from a year earlier, while comparable sales declined 0.4%. The retailer reaffirmed its full-year sales and comparable-sales outlook despite pressure from lower-income consumers, whose traffic fell by high single digits. E-commerce sales rose 12.8%, and gross margin expanded to 40.4%, boosted by tariff refunds. Adjusted earnings per share increased 19.1% to $2.31, and the company raised its full-year gross-margin and EPS guidance. Academy also reaffirmed plans to open 22 to 24 new stores in fiscal 2026.