Latest news with #fiscal2026
Yahoo
an hour ago
- Automotive
- Yahoo
CarMax Profit Rises on Higher Revenue From Retail Used Vehicles
CarMax reported better-than-anticipated earnings as its retail vehicles sales increased. Revenue grew 6% year-over-year to $7.55 billion, although that was slightly short of forecasts. Retail vehicle unit sales climbed 9%, and revenue from those sales grew 7.5%.CarMax (KMX) shares gained Friday as the largest U.S. used car retailer posted better-than-expected profit as sales of retail vehicles increased even as prices declined. The company reported fiscal 2026 first-quarter earnings per share of $1.38 on revenue that grew 6% year-over-year to $7.55 billion. Analysts surveyed by Visible Alpha expected $1.17 and $7.57 billion, respectively. Retail vehicle revenue was up 7.5% to $6.10 billion, on a 9% gain in unit sales. Wholesale vehicle revenue fell 0.3% to $1.25 billion, although units sold were 1.2% higher. The average selling price for used vehicles dropped 1.5%, and they were down 1.7% for wholesale vehicles. Gross profit climbed 13% to $893.6 million, boosted by a 12% rise in retail unit gross profit. Wholesale unit gross profit fell 0.4%. CEO Bill Nash said the company benefited from "our best-in-class omni-channel experience, the diversity of our business, and our sharp focus on execution." Despite today's 4% advance, shares of CarMax are down 18% year-to-date. Read the original article on Investopedia Sign in to access your portfolio
Globe and Mail
2 days ago
- Business
- Globe and Mail
Walmart Sees Continued Comps Gains: Will Broad-Based Strength Support?
Walmart Inc. WMT continues to prove its retail dominance with another strong record in comparable sales. For the first quarter of fiscal 2026, Walmart U.S. reported comparable sales growth of 4.5%, excluding fuel, driven by transaction improvement of 1.6% and an average ticket increase of 2.8%, as well as strong e-commerce growth. The gains were broad-based, with notable momentum in food and consumables, wherein Walmart continues to gain market share. Health and wellness also surged with high-teens growth, thanks to strong prescription volumes and over-the-counter products. Complementing the strong performance at Walmart U.S., Sam's Club U.S. posted a robust 6.7% increase in comparable sales, excluding fuel. The rise was primarily volume-driven, with strength in Member's Mark products. Walmart's ability to deliver consistent comparable sales gains stems from its balanced omnichannel strategy, featuring faster delivery speeds, which includes a 91% year-over-year rise in sub-three-hour delivery, disciplined inventory management and aggressive price rollbacks. More than 5,000 items saw price reductions in the fiscal first quarter, enhancing Walmart's value proposition across key categories. The retailer also leaned on private label strength, with grocery private brand penetration up 60 basis points compared with the last year. This performance demonstrates Walmart's agility and customer relevance amid economic and trade-related headwinds. As the company navigates tariff-related pressures, the replenishment-heavy model and deep supply-chain partnerships are helping it remain flexible, protect margins and support price leadership in a volatile cost environment. How are WMT Rivals TGT & COST Approaching Comparable Sales? While Walmart U.S. delivered comparable sales growth, two of its competitors, Target Corporation TGT and Costco Wholesale Corporation COST, offer an instructive contrast. Target is pursuing long-term growth through digital expansion, marketplace scaling and store investments. Despite a 3.8% decline in comparable sales in the first quarter of fiscal 2025, Target continues to see strength in same-day services like Drive Up and Shipt. The company is also growing the Target Plus marketplace, positioning it for future comparable sales improvements through innovation and customer convenience. Costco, by contrast, reported comparable sales growth of 5.7% in the third quarter of fiscal 2025, with U.S. comparable sales up 6.6%. Its brand name, geographical reach and curated product breadth continue to attract value-conscious shoppers. Costco's favorable product mix, steady store traffic and member-driven pricing model underpin solid comparable sales momentum. WMT's Price Performance, Valuation & Estimates Shares of Walmart have gained 9.7% in the past three months compared with the industry 's growth of 9.3%. From a valuation standpoint, WMT trades at a forward price-to-earnings ratio of 34.8X, significantly up from the industry's average of 31.97X. The Zacks Consensus Estimate for WMT's fiscal 2026 earnings implies year-over-year growth of 3.2%, whereas its fiscal 2027 earnings estimate indicates a year-over-year uptick of 11.6%. WMT currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. 5 Stocks Set to Double Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%. Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. Today, See These 5 Potential Home Runs >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Target Corporation (TGT): Free Stock Analysis Report Walmart Inc. (WMT): Free Stock Analysis Report Costco Wholesale Corporation (COST): Free Stock Analysis Report This article originally published on Zacks Investment Research (
Globe and Mail
4 days ago
- Business
- Globe and Mail
What's Driving the Record Gross Margin at Urban Outfitters This Year?
Urban Outfitters Inc. URBN reported a strong start to fiscal 2026, driven by improved profitability and greater operational efficiency. In the first quarter, gross profit rose 19.8% year over year to a record $489.1 million. This resulted in a gross margin of 36.8%, an expansion of 278 basis points from the prior year. The margin improvement included a 36-basis-point benefit from a one-time $4.8-million gain and a 38-basis-point lift from the absence of last year's impairment and lease abandonment charges. Excluding these factors, URBN achieved a core margin increase of 204 basis points. This was primarily driven by lower markdowns in the Retail segment, particularly at the Urban Outfitters brand. Additional improvements came from reduced delivery costs, supported by lower carrier rates and fewer packages per order, as well as improved leverage on store occupancy costs resulting from stronger comparable retail sales. Operating income surged 72% to $128.2 million from the prior year. As a percentage of sales, the operating margin moved up 340 basis points to 9.6%. Strong full-price selling, disciplined inventory management, and strategic marketing spend contributed to this outperformance. Anthropologie and Free People continued to deliver steady double-digit margins, reinforcing the strength of URBN's brand portfolio. Management expects the second-quarter gross margin to improve 50-100 basis points year over year. Gains from lower markdowns and occupancy leverage are expected to offset some pressure from reduced initial product margins due to higher U.S. tariffs. Also, the company remains confident in achieving its 10% operating margin goal for fiscal 2026. With solid execution across brands and momentum building in both revenue and margin performance, URBN appears well-positioned to meet its profitability targets and potentially set a new long-term standard for operational excellence. Urban Outfitters' Zacks Rank & Share Performance Details Shares of this Zacks Rank #1 (Strong Buy) company have rallied 38.4% in the past three months compared with the Zacks Retail-Apparel and Shoes industry's modest 4% growth. This leading lifestyle specialty retailer's ongoing strategic initiative and operational efficiencies have enabled it to outperform the broader Retail-Wholesale sector and the S&P 500 index's growth of 2.3% and 5.2%, respectively, during the same period. Image Source: Zacks Investment Research Closing at $68.01 as of Friday, the URBN stock is trading 10.3% below its 52-week high of $75.80 attained on May 28, 2025. Technical indicators support Urban Outfitters' strong performance. The stock is trading above its 50 and 200-day SMAs (simple moving averages) of $58.41 and $49.65, respectively, highlighting a continued uptrend. This technical strength, along with sustained momentum, indicates positive market sentiment and investors' confidence in URBN's financial health and growth prospects. URBN Trades Above 50 & 200-Day Moving Averages Is URBN a Value Play Stock? Urban Outfitters stands out as a compelling value play within the industry, trading at a forward 12-month price-to-sales ratio of 0.99, below the industry average of 1.65 and the sector average of 1.59. This undervaluation highlights its potential for investors seeking attractive entry points in the retail space. URBN's Value Score of A emphasizes its investment appeal. Estimate Revisions Favor Urban Outfitters Stock The positive sentiment surrounding URBN is reflected in the upward revisions in the Zacks Consensus Estimate for earnings. In the past seven days, the consensus estimate has moved up four cents to $4.96 per share for the current fiscal year and by five cents to $5.45 for the next fiscal year, indicating year-over-year growth of 22.2% and 9.9%, respectively. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.) The Zacks Consensus Estimate for the current and next fiscal year's sales is pegged at $6.02 billion and $6.42 billion, implying year-over-year growth of 8.5% and 6.6%, respectively. Other Key Picks Some other top-ranked stocks are Stitch Fix SFIX, Canada Goose GOOS, and Allbirds Inc. BIRD. Stitch Fix delivers customized shipments of apparel, shoes and accessories for women, men and kids. It carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today's Zacks #1 Rank stocks here. The Zacks Consensus Estimate for Stitch Fix's current fiscal year's earnings implies growth of 69.7% from the year-ago actuals. SFIX delivered a trailing four-quarter average earnings surprise of 51.4%. Canada Goose is a global outerwear brand. GOOS is a designer, manufacturer, distributor and retailer of premium outerwear for men, women and children. It carries a Zacks Rank #2 at present. The Zacks Consensus Estimate for Canada Goose's current fiscal year's earnings and sales indicates growth of 10% and 2.9%, respectively, from the year-ago actuals. Canada Goose delivered a trailing four-quarter average earnings surprise of 57.2%. Allbirds is a lifestyle brand that uses naturally derived materials to make footwear and apparel products. It carries a Zacks Rank of 2 at present. The Zacks Consensus Estimate for BIRD's current financial-year earnings implies growth of 16.1% from the year-ago actual. The company delivered a trailing four-quarter average earnings surprise of 21.3%. Zacks' Research Chief Names "Stock Most Likely to Double" Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest. This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%. Free: See Our Top Stock And 4 Runners Up Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Urban Outfitters, Inc. (URBN): Free Stock Analysis Report Canada Goose Holdings Inc. (GOOS): Free Stock Analysis Report Stitch Fix, Inc. (SFIX): Free Stock Analysis Report Allbirds, Inc. (BIRD): Free Stock Analysis Report
Globe and Mail
4 days ago
- Business
- Globe and Mail
Will Elevated Costs Undermine The TJX Companies' Off-Price Edge?
The TJX Companies TJX is feeling the strain of elevated operating costs, particularly in wages and sourcing. In the first quarter of fiscal 2026, selling, general and administrative (SG&A) expenses rose to 19.4% of sales, up 20 basis points (bps) from the prior-year quarter, primarily due to higher store payroll costs. Gross margin declined 50 bps to 29.5%, with unfavorable inventory hedge adjustments adding to the pressure. The bigger concern lies ahead. Management expects fiscal second-quarter gross margin to decline another 40 bps year over year to 30%, citing tariff-related costs on merchandise already in transit when new duties took effect in March and April. While the company is pursuing mitigation strategies, such as pricing adjustments and sourcing shifts, cost pressures remain. For fiscal 2026, The TJX Companies projects gross margin between 30.4% and 30.5%, a 10-20 bps drop from the prior year. SG&A is expected to be 19.3%, a slight decrease from last year's 19.4%. While TJX continues to execute its off-price model steadily, ongoing inflation in wages, freight and tariffs introduces added complexity to maintaining the gross margin. As a retailer positioned on delivering branded value at competitive prices, its ability to manage these rising costs without compromising pricing appeal will be closely watched. Striking the right balance between margin preservation and value positioning remains important in an increasingly competitive retail environment. TJX's Peer Comparison: DG and BURL Face Cost Squeeze Dollar General DG is grappling with cost inflation. In the first quarter of fiscal 2025, Dollar General reported an 8.5% year-over-year increase in SG&A, which rose 77 basis points to 25.4% of sales. The uptick was caused by higher labor costs, incentive compensation, and repairs and maintenance. Dollar General expects SG&A to remain under pressure in the fiscal second quarter, with a larger year-over-year increase in incentive compensation as it laps last year's accrual reversal. Burlington Stores BURL is also facing cost headwinds. In the first quarter of fiscal 2025, Burlington saw SG&A expenses rise 4.8% year over year, while sourcing costs jumped to $197 million, up from $183 million. As a percentage of sales, sourcing costs ticked up 10 basis points. Burlington projects adjusted EBIT margin in the range of down 30 bps to flat year over year in the fiscal second quarter, with additional pressure from lease-related costs and shifting expense timing. TJX's Price Performance, Valuation and Estimates Shares of The TJX Companies have lost 8.2% in the past month compared with the industry 's decline of 5%. From a valuation standpoint, TJX trades at a forward price-to-earnings ratio of 26.74X, down from the industry's average of 32.42X. The Zacks Consensus Estimate for TJX's fiscal 2026 earnings implies year-over-year growth of 4.7%, whereas its fiscal 2027 earnings estimate indicates a year-over-year uptick of 10.3%. TJX stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Zacks' Research Chief Names "Stock Most Likely to Double" Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest. This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%. Free: See Our Top Stock And 4 Runners Up Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The TJX Companies, Inc. (TJX): Free Stock Analysis Report Dollar General Corporation (DG): Free Stock Analysis Report Burlington Stores, Inc. (BURL): Free Stock Analysis Report
Yahoo
5 days ago
- Automotive
- Yahoo
India's Tata Motors expects 5%-7% FY26 EBIT margins for luxury unit JLR
(Reuters) -India's Tata Motors said on Monday it expects fiscal 2026 earnings before interest and taxes margins of 5% to 7% for its British luxury carmaker Jaguar Land Rover (JLR), lower than an initially targeted 10%, as the carmaker navigates around U.S. import levies that has put the global auto industry in a state of limbo. Sign in to access your portfolio
