Down Retail, Macy’s Climbs 3%, Abercrombie & Fitch Slips

Abercrombie & Fitch (ANF) reported Q2 revenue and earnings above expectations, raising its fiscal 2026 outlook. The company cited brand momentum, merchandise execution, and disciplined inventory management. Management also filed a shelf registration for $98.65M of Class A stock tied to its employee stock ownership plan. Analysts project revenues of $5.9B and earnings of $504.8M by 2029, with some indicating a 10% potential downside.

Zumiez (ZUMZ) reported $209M revenue, down 2.5% YoY, missing estimates. Guidance missed significantly. Stock down 19.4% to $13.46. Lululemon (LULU) reported $2.42B revenue, down 4.3% YoY, missing estimates. Guidance also missed. Stock down 18.9% to $98.79. Urban Outfitters (URBN) reported $1.66B revenue, up 10.4% YoY, beating estimates. Mixed quarter. Stock down 8.6% to $75.86.

Berkshire Hathaway's investment in Macy's, a brick-and-mortar retailer, may seem questionable but shows potential. Macy's sales have stabilized, with same-store sales growing 2.7% last quarter, and the company raised its full-year revenue and earnings guidance. Analysts expect revenue to decline slightly but predict efficiency gains will boost earnings. Berkshire's stake, now 7.4 million shares, could be a turnaround play rather than a real estate bet, with Macy's trading at a low P/E ratio of 8

Macy's (M) reported earnings, raised guidance, and completed a multiyear buyback. The stock is down 6.84% in 30 days and 10.36% in 90 days, but up 27.25% in 1 year and 2.3x in 3 years. Analysts estimate a fair value of $22.77, slightly above the current $21.64, suggesting a small discount. The company's growth in luxury and off-price segments supports future revenue growth, but e-commerce competition and margin pressures remain concerns.

Macy's (M) reported Q2 earnings that surpassed expectations, with revenue up 1.1% to $4.9B and adjusted EPS at $0.63. Comparable sales rose 2.7% across Macy's, Bloomingdale's, and Bluemercury. Management highlighted margin expansion, cash flow improvements, and strategic initiatives, while raising full-year guidance. However, third-quarter outlook remains cautious with flat-to-slightly-negative comps and a small EPS loss.

Tilly's (TLYS) reported $163.5M revenue, up 8.1% YoY, beating estimates and raising guidance. Its stock rose 18.1%. Lululemon (LULU) reported $2.42B revenue, down 4.3% YoY, missing estimates and guidance, with its stock falling 18.7%. Gap (GAP) reported $3.65B revenue, down 2% YoY, missing estimates but raising full-year EPS guidance, with its stock up 3.5%. Abercrombie & Fitch (ANF) reported $1.27B revenue, up 4.8% YoY, beating estimates and raising guidance, with its stock up 34.8%.