Textiles, Apparel & Luxury Goods

Tilray Brands reported a first-quarter fiscal 2027 loss of $0.32 per share, wider than the Zacks Consensus Estimate of a loss of $0.19 per share, sending its shares down 3.4%. PepsiCo reported third-quarter 2026 earnings of $2.34 per share, beating the Zacks Consensus Estimate of $2.29 per share, and its shares gained 3.7%. Levi Strauss & Co. reported third-quarter fiscal 2026 revenues of $1,610 million, lagging the Zacks Consensus Estimate of $1,615 million, and its shares tumbled 2.4%. Micron Technology shares fell 4.8% on a broader tech decline.

China's intensified taxation of the wealthy is emerging as a fresh headwind, and the third-quarter results of major luxury brands are likely to be subdued. Shares of France's LVMH and Hermes have each fallen about 40 percent since the start of the year, while Kering is down 29 percent, deepening investor pessimism. Under China's new tax rules, wealthy individuals who used overseas trusts to avoid taxes on their assets must declare and pay unpaid taxes from the past several years by the 22nd, raising concerns about a chill in consumption. Alexis Bonhomme, head of luxury-industry consultancy Trinity Asia, noted that the 20 percent tax is hitting ultra-wealthy spending directly. LVMH, the first clue for investors, reports on the 12th, with analysts expecting quarterly sales of 18.5 billion euros, up 1 percent from a year earlier, while Kering and Hermes report on the 22nd.

Guqi Rongcai announced on October 9 that shareholder Anhui Agricultural Fund has completed its reduction plan, lowering its stake from 6.90% to 6.00%. Between September 2 and September 30, 2026, Anhui Agricultural Fund sold a total of 1.8 million shares through centralized bidding, representing 0.9% of the company's total share capital, at prices ranging from 16.89 yuan to 18.14 yuan per share, reducing its holdings from 13.8 million shares to 12 million shares. The company stated that this reduction will not lead to a change in control, nor will it affect the governance structure or ongoing operations. On the same day, the company disclosed that its buyback plan has been completed, with a cumulative repurchase of 1.2 million shares as of October 8, accounting for 0.6% of total share capital, at a total cost of approximately 21.32 million yuan. In addition, Beijing Urban Construction Phase I and Wuhu Jingcheng Phase II reduced their holdings by a combined 1.9001 million shares from September 7 to September 21, representing 0.95% of total share capital. Director Weng Mulin has sold shares multiple times since his first reduction on August 26, 2026, most recently selling 50,000 shares on September 24 at an average price of 18.02 yuan per share. Guqi Rongcai specializes in high-specification down products. In the first half of 2026, it achieved revenue of 564 million yuan, up 5.07% year on year, while net profit attributable to the parent company was 92.98 million yuan, down 5.51% year on year. Its share price has fallen 30.66% cumulatively this year.

NIKE reported first-quarter fiscal 2027 earnings of 48 cents per share, beating the Zacks Consensus Estimate of 43 cents, but revenues of $11.2 billion declined 4% year over year and missed expectations, sending shares down 2.2% since the Oct. 1, 2026 after-market-close release. North America revenues rose 2% to $5.1 billion, while EMEA fell 5% to $3.18 billion and Greater China dropped 22% on a reported basis to $1.2 billion, or 26% currency-neutral, lagging the consensus estimate of $1.3 billion. Asia Pacific & Latin America revenues dipped 2% to $1.5 billion but were flat excluding currency changes. NIKE introduced Pace, an operating-model transformation expected to generate about $2.5 billion in cumulative savings through fiscal 2031, and guided fiscal 2027 revenues to decline at a high-single-digit rate with adjusted earnings per share of $1.15-$1.35, excluding about 15 cents of Pace-related restructuring impact. The Zacks Consensus Estimate has fallen 16.8% to $1.34 per share for fiscal 2027 and 16% to $1.78 for fiscal 2028 over the past seven days, and NIKE carries a Zacks Rank #5 (Strong Sell).

PepsiCo lowered its profit outlook as its North American recovery takes longer than expected, sending shares lower. The company is facing higher costs in North America that are weighing on margins, and it plans to raise some prices in the coming months after cutting prices on some marquee brands earlier this year. Microsoft shares moved on news that its Xbox unit is formalizing its film and TV foray with a new division called XP to expand its franchises into other media. Levi Strauss fell after posting the slowest growth in its direct-to-consumer channels since late 2022, partly due to a marketing misstep, and it expects direct-to-consumer growth for the current quarter to rise by a mid-single digit after shifting its marketing to focus on low-rise jeans.

Jeans giant Levi Strauss reported after the close on the 7th its third quarter results for the fiscal year ending November 2026, covering June to August 2026. Revenue rose 4 percent year on year to 1.61 billion dollars, net profit climbed 39 percent to 169 million dollars, and adjusted diluted earnings per share rose 41 percent to 0.48 dollars, though revenue fell short of market expectations. By region, the key Americas business grew 4 percent to 839 million dollars, but the United States alone was sluggish with a 1 percent decline, while Europe rose 4 percent to 442 million dollars and Asia gained 5 percent to 293 million dollars. By sales channel, the direct-to-consumer DTC segment grew just 2 percent, its slowest pace in about four years, while e-commerce rose 10 percent. For the full-year outlook, the company revised its revenue growth forecast to 7.0 percent from its previous estimate of 7.0 to 7.5 percent, while raising its earnings per share guidance to 1.54 to 1.56 dollars from the previous 1.46 to 1.52 dollars. The stock fell 4.97 percent in intraday trading on the 7th to 19.51 dollars, its first decline in three trading days, and in after-hours trading following the earnings release it dropped more than 2 percent from the intraday closing price at one point.

Levi Strauss & Co. guided full-year adjusted diluted earnings per share to a range of $1.54 to $1.56, including a $0.04 net tariff refund benefit, and said it expects fourth-quarter organic net revenue growth of approximately 4%. On the company's Q3 fiscal 2026 earnings call, Chief Financial and Growth Officer Harmit Singh said full-year reported net revenue growth is now expected at approximately 7%, down from a previous outlook of 7% to 7.5%, while organic net revenue growth should be a little stronger at approximately 6%. The company recorded approximately $80 million of tariff refunds in the third quarter and is redeploying roughly three-quarters of that benefit back into the business across Q3 and Q4, split about one-third to marketing, one-third to distribution and logistics, and one-third to promotional activities. Chief Executive Officer Michelle Gass said direct-to-consumer performance fell short of expectations in the quarter, with global DTC up 2% and comparable sales flat, and announced that John Vandemore has been named the company's next chief financial officer. Third-quarter gross margin expanded 450 basis points to 66.2%, adjusted EBIT margin was 15.5%, and adjusted diluted EPS was $0.48, including an $0.11 benefit from tariff refunds net of redeployment; the company returned $62 million to shareholders through dividends and intends to repurchase an additional $100 million of shares through an accelerated share repurchase program.

Nike changed its reporting structure in its latest 10Q, moving from four regions to three and reducing regional sales disclosure, including pulling back on comparable store sales data across markets. China performance will now be less visible to investors, even as that geography remains a key focus area. The reduced transparency weakens one pillar of the Nike Narrative, which is the need to monitor revenue pressure and margin strain in key territories like Greater China. With first quarter 2026 sales of US$11,213 million and management guiding to a high single digit revenue decline for fiscal 2027, tighter disclosure on regional trends makes it harder to judge whether the portfolio shift toward sport performance and the clean up of classic footwear lines is easing those pressures. The critical test from here is the next few quarterly filings and conference calls, especially how Nike breaks out China within its three region structure and explains any changes in digital demand, inventories and markdowns in that market relative to the guided fiscal 2027 revenue decline.

Lululemon has become one of the most searched-for stocks on Zacks.com, with shares down 9.3% over the past month against a 1.4% gain for the Zacks S&P 500 composite while the Zacks Textile - Apparel industry lost 2.5%. For the current quarter, Lululemon is expected to post earnings of $0.97 per share, a decline of 62.6% from the year-ago quarter, with the Zacks Consensus Estimate unchanged over the last 30 days. For the current fiscal year, the consensus earnings estimate of $9.55 points to a change of -28% from the prior year and has moved +1.2% over the last 30 days, while the next fiscal year's estimate of $8.62 indicates a change of -9.7% and has fallen 5.7% over the past month. The consensus sales estimate of $2.31 billion for the current quarter points to a year-over-year change of -10%, with $10.5 billion and $10.58 billion estimates for the current and next fiscal years indicating changes of -5.5% and +0.8%, respectively. Lululemon reported revenues of $2.42 billion in the last reported quarter, a year-over-year change of -4.3%, with EPS of $2.06 versus $3.1 a year ago, and the recent change in the consensus estimate along with three other factors has resulted in a Zacks Rank #5 (Strong Sell) for Lululemon.

Nike reported a 5% currency-neutral revenue decline to $11.2 billion in its latest quarter, with Greater China down 26% and Nike Sportswear and Jordan remaining major drags, while its performance business grew at a high-single-digit rate. CEO Elliott Hill is steering Nike back toward sport, with running, football, training, basketball, tennis and golf all showing growth, and the company nearly tripling its share of the max-cushioning category over the past year. Nike Sportswear, which accounted for just under half of quarterly revenue, fell by low double digits as the company deliberately reduces supply of the Dunk and cuts back some Jordan retro releases to restore scarcity. Management expects China to worsen before it improves, with the reset continuing for multiple seasons, and its Pace restructuring program is expected to generate about $2.5 billion in savings, most of which are not expected until fiscal 2029 and 2030. Nike expects fiscal 2027 adjusted EPS of only $1.15 to $1.35, excluding about $0.15 of restructuring impact, and at 21.01x forward earnings investors are paying for a recovery that has yet to materialize, making November's Investor Day, where management will provide a five-year financial framework, the key test. Hedge fund sentiment weakened in the second quarter, with 56 hedge funds holding Nike, down from 71 in the first quarter, while the value of those positions rose slightly from $1.31 billion to $1.35 billion.

Nike launched Caitlin Clark's signature collection worldwide on October 1, the same day it reported quarterly earnings. The line includes the Caitlin 1 shoe, priced at $140 for adults with kids' versions at $105 to $115, plus an 18-piece apparel collection. On the earnings side, EPS came in at $0.48, above the $0.43 estimate, but revenue declined 4%, and for the full fiscal year Nike expects revenue to decline by a high single-digit percentage with adjusted EPS between $1.15 and $1.35. The stock trades at a forward P/E of about 21.0x, roughly 28% below its recent historical average of 32.97x, while EPS is forecast to drop 14.38% this fiscal year before recovering. Hedge fund ownership of Nike slipped from 71 funds at the end of Q1 2026 to 56 funds at the end of Q2 2026, and short interest remained high at 8.98% of float as of September 15, 2026.

Berenberg downgraded Nike to Sell from Hold and slashed its target price by 44% to $27.50, implying 19% further downside, with analyst Nick Anderson's team saying the market structure has "shifted irreversibly against Nike." The call follows fiscal first-quarter results in which lingering weakness in Jordan, sportswear, and China overshadowed double-digit gains in performance categories including golf, tennis, running, and basketball. Berenberg said Nike's plan to organize sportswear around smaller focus areas reads as an admission that the company has accepted a smaller place in sportswear. The analysts flagged inventory management as another challenge, estimating the clean-up will drag on past 2027, and said Nike's exclusion of any gross margin guidance for FY27 signals significant risk from inventory uncertainty. Berenberg does not expect benefits from the latest restructuring plan until FY29 and cut its revenue and EPS estimates for the next three years. Nike shares, down 47% year to date, were under pressure into Tuesday's open.

Citizen Watch announced on the 6th that a server at a contractor company was subjected to unauthorized access, and that the stored personal information of approximately 100,000 customers may have been leaked. No secondary harm has been confirmed, the company said. According to Scalar Communications, which Citizen had entrusted with handling customer inquiries, the unauthorized access occurred between the night of October 2 and the morning of October 3, and the names, addresses, phone numbers, email addresses and other data of about 100,000 people may have been leaked. The company said that if bank account or credit card information had been entered in the inquiry details field, it may also have been compromised. The affected parties are users of the websites for the Citizen, Bulova, and Frederique Constant brands, and no unauthorized access to Citizen itself has been confirmed.

Nike reported a 4% year-over-year decline in first-quarter fiscal 2027 revenue, which came in at $11.2 billion, while gross margin expanded 60 basis points to 42.8% and diluted earnings slipped to $0.48 per share from $0.49 a year earlier. Revenue in China fell 26% year over year, though North America revenue rose 2% even as NIKE Direct revenue in the region declined 6%. Management guided full-year topline to contract at a high-single-digit rate and projected adjusted diluted earnings of $1.15 to $1.35 per share, and introduced its multiyear Pace Transformation Plan, which aims to yield cumulative savings of around $2.5 billion through fiscal 2031. The stock closed at $35.15 on October 1, down 52.53% over the last 52 weeks against a 13.93% gain for the S&P 500, with a market capitalization of $53.55 billion. Hedge fund holdings in Nike fell to 56 by the end of the second quarter of 2026 from 71 in the prior quarter, short interest stood at 6.29%, and BlackRock was the largest institutional investor with 81.81 million shares, or 6.81% of outstanding shares.

Sanyo Shokai announced on the 6th that its consolidated interim results for the fiscal year ending February 2027, covering the March-to-August period, showed a net loss of 555 million yen. The year-earlier period posted a loss of 299 million yen, and the shortfall widened beyond the company's previous forecast of a 480 million yen loss. Unseasonable weather persisted in June, late in the spring-summer selling season, weighing on the market as a whole, and weak sales of full-price merchandise left the company's June revenue at only 90 percent of the year-earlier level. From July onward it pushed sales at regular prices and curbed discount selling, but could not make up for the slump through June. In August the company had revised its interim net income forecast down from a 400 million yen profit to a 480 million yen loss. It left its consolidated full-year forecast for the fiscal year ending February 2027 unchanged.

Nike, Inc. reported first-quarter 2026 sales of US$11,213 million and net income of US$712 million, while guiding for a high-single-digit revenue decline in fiscal 2027. The softer quarterly results combined with the explicit outlook for lower future revenue have raised fresh questions about whether Nike's repositioning efforts can support earnings without further margin pressure. The company also declared a quarterly dividend of US$0.41 per share, payable October 1, 2026, a payout that is not well covered by free cash flow but that management chose to maintain as it balances shareholder returns against investment in product, marketing, and channel health. Nike's longer-term narrative projects US$48.5 billion in revenue and US$3.7 billion in earnings by 2029, requiring 1.5% yearly revenue growth and roughly a US$0.6 billion increase from US$3.1 billion in earnings today. Some of the most optimistic analysts had expected Nike's earnings to climb toward about US$5.7 billion with stronger margins, a view that contrasts sharply with the new revenue guidance.

Nike reported fiscal first-quarter revenue of $11.21 billion, down 4% year over year and below the Zacks Consensus Estimate of $11.4 billion, while earnings of $0.48 per share beat the 44-cent consensus even as they slipped from $0.49 a year ago. Gross margin expanded 60 basis points to 42.8%, but Nike Direct revenue fell 8% on a reported basis, including a 13% decline in digital sales, Greater China revenue plunged 26% on a currency-neutral basis, and Converse revenue dropped 28%. Management now expects fiscal 2027 revenue to decline at a high-single-digit rate and adjusted earnings of just $1.15 to $1.35 per share, a 27% to 14% decline from EPS of $1.58 in FY26, and is restructuring its Sportswear, Jordan Brand, and Greater China businesses with corrective actions stretching beyond FY27. The new Pace initiative targets roughly $2.5 billion in cumulative savings through fiscal 2031 but is expected to generate about $1 billion in pretax restructuring charges. Nike pays a quarterly dividend of $0.41 per share, or $1.64 annually, for a yield of nearly 5%, and has raised its dividend for 24 consecutive years, though Q1 operating cash flow of $135 million fell short of $199 million in capital expenditures and roughly $610 million in dividends, against $8.36 billion in cash and equivalents. The Nike Caitlin 1 signature shoe for WNBA star Caitlin Clark launched globally on Oct. 1 at $140 and sold out in nearly every size within roughly two hours, a bright spot as Nike faces intensified competition for top athletes, including the recent loss of Kylian Mbappé to On Holdings. NKE carries a Zacks Rank #5 (Strong Sell).

Nike's dividend yield has climbed to 4.87%, roughly matching the 4.85% yield on the 2-year Treasury note, after a stock crash that has left the athletic-wear maker trading at record lows. The move follows Nike's earnings report late last week, in which CEO Elliott Hill suggested the weak sportswear market will continue in the medium term, forcing the company to discount slow-moving product, while full fiscal-year earnings guidance came in well below analyst estimates. Quarterly results showed Nike Brand sales fell 4%, online sales plunged 13%, Converse sales tanked 28% and China sales crashed 26%, and the company signaled a fresh round of major layoffs was coming. Nike stock is now down 47% year to date and 77% over the past five years. Jefferies analyst Randy Konik said that for investors willing to look beyond near-term volatility, Nike offers both income and recovery potential, while Stifel analyst Peter McGoldrick said he is not ready to call a bottom with shares trading at 28x P/E at the midpoint of FY27E guidance.

S&P Global Ratings has downgraded Nike Inc's credit rating to 'A' from 'A+', citing a prolonged turnaround across its key lifestyle segments and severe top-line deterioration in Greater China. The agency warned that the apparel giant faces negative cash flow generation over the next two to three years as restructuring costs and necessary reinvestments weigh on profitability. S&P expects Nike's consolidated revenue to contract by more than 7% in fiscal 2027 and weaken further in fiscal 2028, compounded by an incremental $1 billion in restructuring charges tied to an ongoing corporate overhaul. A steep downturn in Greater China remains a central driver, highlighted by a 26% top-line plunge in the first fiscal quarter, with the agency forecasting China revenue to fall approximately 30% for the full fiscal year, a dramatic retreat for a market that generated more than a fifth of total company sales at its peak. Nike maintains $11.4 billion in total liquidity, and S&P expects it to absorb a projected $1.2 billion annual cash burn after dividend outlays by suspending share buybacks, scaling back capital expenditures, and using cash reserves to satisfy upcoming debt maturities through early 2027, while the negative outlook flags the potential for further cuts over the next 12 to 24 months.

NIKE, Inc. is pursuing a newly announced Pace program expected to generate approximately $2.5 billion in cumulative savings through fiscal 2031, primarily by streamlining its organization, modernizing the supply chain, simplifying decision-making and improving productivity. The program is expected to incur about $1 billion in pre-tax charges, in addition to roughly $300 million of severance costs recorded in fiscal 2026. NIKE continues to prioritize growth-oriented investments rather than broadly cutting spending, with selling and administrative expenses declining 3% year over year in the first quarter of fiscal 2027 while demand-creation spending increased 5%. The company expects fiscal 2027 revenues to decline in high single digits as it makes deliberate portfolio adjustments across NIKE Sportswear, the Jordan Brand and Greater China, and reduces excess supply in key areas of the marketplace. Shares of NIKE have lost 21.6% in the past six months against the industry's decline of 16.9%, and the stock currently carries a Zacks Rank #5 (Strong Sell).