Analysts Offer Insights on NA Companies: Hyatt Hotels (H) and Gap Inc (GAP)

Carnival (CCL) reported Q2 revenues of $6.66B, up 5.3% YoY, meeting expectations but missing EBITDA guidance. The stock fell 26.7% post-earnings. Target Hospitality (TH) beat estimates with 38.7% revenue growth, rising 17%. Hilton Grand Vacations (HGV) missed expectations, dropping 30.1%. Hyatt (H) and Delta (DAL) also reported, with Delta beating estimates and falling 5.6%. The sector is down 9.2% since earnings.

Hyatt Hotels (H) announced a long-term loyalty partnership with Delta Air Lines, allowing members to earn points and miles on qualifying flights and stays. The collaboration targets premium travelers and aims to deepen engagement with high-value guests. Hyatt projects $8.5b revenue and $590.4m earnings by 2029, with analysts suggesting a potential 26% upside. The partnership is seen as a positive for Hyatt's investment narrative, though financial impacts are hard to gauge in the near term.

Hyatt (H) and Delta Air Lines announced a long-term loyalty partnership. Hyatt reported Q2 2026 RevPAR growth of 5.9% and gross fees up 7.8% to $324M. The company opened 3,585 rooms and returned $175M to shareholders. However, some resorts faced challenges, and full-year Adjusted EBITDA guidance was adjusted due to external factors.

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%.

Unusual options activity highlighted institutional bets on Macy's (M), Gap (GAP), Occidental Petroleum (OXY), and Carnival (CCL). Macy's reported strong earnings, raising guidance. OXY saw significant call options activity amid higher oil prices. CCL and Royal Caribbean (RCL) options suggest bets on cruise industry volatility due to oil prices.

BMO Capital initiated coverage on Gap, Inc. (NYSE:GAP) with a Market Perform rating and a $23.00 price target, citing concerns about Old Navy's performance. The stock trades at $22.38. BMO expects valuation pressure until Old Navy shows improvement. Gap's Q2 earnings beat expectations, with revenue at $3.7 billion, and the company raised its full-year outlook. Analysts have mixed views, with price targets ranging from $21 to $42.