It has been about a month since the last earnings report for Chord Energy Corporation (CHRD - Free Report) . Shares have lost about 0.2% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Chord Energy Corporation due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important catalysts.
Chord Energy Q1 Earnings Top Estimates on Increased Output & Higher PricesChord Energy reported first-quarter 2026 adjusted earnings of $4.56 per share, up 12.9% from $4.04 a year ago. The bottom line beat the Zacks Consensus Estimate of $3.35 by 36.1%.
Total quarterly revenues increased 4.3% year over year to $1,150.6 million from the prior-year level of $1,103.3 million. The top line beat the Zacks Consensus Estimate of $1,077.4 million by 6.8%.
Strong quarterly results were driven by increased production volumes and higher oil price realization and natural gas sales prices. However, lower natural gas liquids sales prices slightly offset the positives.
CHRD’s Production Volumes IncreaseCHRD’s total production in the first quarter of 2026 was 275.6 thousand barrels of oil equivalent per day (MBoe/D), above the 270.9 MBoe/D recorded a year ago.
Oil production, accounting for 57.3% of the total production in the quarter, amounted to 158 thousand barrels of oil per day (Mbo/D), higher than 153.7 Mbo/D recorded in the year-ago period. Natural gas liquids production was 49 thousand barrels per day (MBbl/D), marginally higher than 48.1 MBbl/D in the prior-year quarter.
Natural gas production was 411.4 million cubic feet per day (MMcf/D), down from 414.5 MMcf/D recorded a year ago.
The company had 37 gross (30 net) operated wells turned into line during the quarter, supporting stronger near-term production delivery.
CHRD’s Realized Prices (Excluding Derivative Realized)Average sales prices for natural gas were approximately $3.14 per Mcf, higher than $2.30 recorded a year ago.
The company’s oil price realization in the quarter was $70.05 per barrel (Bbl), higher than $69.11 recorded a year ago.
Average sales prices for natural gas liquids were approximately $8.66 per Bbl, lower than $14.18 recorded a year ago.
Chord Energy Holds the Line on Costs as Activity DeliversLease operating expense (LOE) per barrel of oil equivalent was $9.87 per Boe, landing near the midpoint of management’s expected range but higher than the year-ago figure of $9.56.
On the income statement, LOE increased to $244.9 million from $233.1 million a year earlier, while gathering, processing and transportation expense declined to $67.0 million from $73.3 million. Purchased oil and gas expenses were $509.8 million, up sharply from the prior-year figure of $111.4 million. Depreciation, depletion and amortization rose to $384.2 million from the prior year figure of $349.8 million, reflecting a larger asset base and continued development activity.
Total operating expenses increased to $1,332.8 million from $882.6 million in the year-ago period.
CHRD’s Cash Engine Supports Robust Capital ReturnsNet cash provided by operating activities was $507.5 million in the quarter, lower than the prior-year figure of $656.9 million. CHRD reported adjusted free cash flow of $321.2 million, higher than the year-ago figure of $290.5 million. Adjusted EBITDA totaled $713.0 million compared with 695.5 million a year ago.
CHRD returned $145 million through a $1.30 per share of base dividend and 559,064 share repurchases worth $71 million.
CHRD: Capex & FinancialsIn the first quarter, Chord Energy spent $351.3 million on capital expenditures. As of March 31, 2026, CHRD had cash and cash equivalents of $225.8 million and long-term debt of $1.48 billion.
CHRD Lifts 2026 Oil Guidance While Keeping Capex SteadyThe company updated its 2026 outlook to reflect first-quarter performance. Full-year 2026 oil volume guidance was raised by 2 thousand barrels of oil per day (Mbo/D) to a range of 160 Mbo/D to 162 Mbo/D. The company expects second-quarter oil volumes of 162.5-165.5 Mbo/D, while full-year 2026 capital expectations remained unchanged at $1,355-$1,445 million. Chord Energy’s production guidance for full-year 2026 is in the range of 76.4 MBoe/D to 280.3 MBoe/D. For the second quarter, the company expects production to be in the range of 279.7-285 MBoe/D.
How Have Estimates Been Moving Since Then?Since the earnings release, investors have witnessed a upward trend in estimates revision.
The consensus estimate has shifted 14.37% due to these changes.
VGM ScoresAt this time, Chord Energy Corporation has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Chord Energy Corporation has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
For those looking to find strong Oils-Energy stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Chord Energy Corporation (CHRD - Free Report) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out.
Chord Energy Corporation is a member of the Oils-Energy sector. This group includes 238 individual stocks and currently holds a Zacks Sector Rank of #3. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Chord Energy Corporation is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past 90 days, the Zacks Consensus Estimate for CHRD's full-year earnings has moved 328.5% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Our latest available data shows that CHRD has returned about 51.1% since the start of the calendar year. Meanwhile, the Oils-Energy sector has returned an average of 28.3% on a year-to-date basis. As we can see, Chord Energy Corporation is performing better than its sector in the calendar year.
Another Oils-Energy stock, which has outperformed the sector so far this year, is Crescent Energy (CRGY - Free Report) . The stock has returned 45.4% year-to-date.
For Crescent Energy, the consensus EPS estimate for the current year has increased 100.6% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Breaking things down more, Chord Energy Corporation is a member of the Oil and Gas - Exploration and Production - United States industry, which includes 34 individual companies and currently sits at #93 in the Zacks Industry Rank. Stocks in this group have gained about 26.5% so far this year, so CHRD is performing better this group in terms of year-to-date returns.
Crescent Energy, however, belongs to the Alternative Energy - Other industry. Currently, this 50-stock industry is ranked #105. The industry has moved +17.7% so far this year.
Going forward, investors interested in Oils-Energy stocks should continue to pay close attention to Chord Energy Corporation and Crescent Energy as they could maintain their solid performance.
On June 09, 2026, Chord Energy Corp CHRD shares fell 3.0% to a current price of $134.12. Over the past year, the stock has shown significant volatility, with a 52-week high of $151.95 and a low of $84.25. The stock's price performance reflects a year-to-date gain of 47.4% and a 1-year increase of 44.0%, although it has suffered a slight decrease of 2.8% over the past week and 0.9% over the past month.
GF Value™ verdict: The current price is $134.12, compared to a GF Value™ of $129.66, indicating the stock is 3.4% overvalued.GF Score™: 61/100, which is considered Above Average.Notable signal: Insiders sold $3.8M worth of shares in the last 3 months, with no buying activity reported. Is CHRD Overvalued or Undervalued? According to the GF Value™, Chord Energy Corp is currently overvalued by approximately 3.4%, as the stock price of $134.12 exceeds the estimated fair value of $129.66. This suggests that there may be limited margin of safety for potential investors, as the current market price does not provide a substantial discount to the intrinsic value calculated by GuruFocus. The GF Valuation label indicates that the stock is fairly valued, further corroborating the idea that current pricing may factor in future growth expectations that may not be fully realized.
The fact that the stock is classified as overvalued poses a risk for investors, as it may indicate that the price could be susceptible to downward adjustments if future performance does not meet market expectations. Conversely, if the company manages to exceed these expectations, there could be room for positive price adjustments. Nevertheless, investors should consider the current valuation in conjunction with broader market conditions and company performance metrics.
How Does CHRD's Valuation Compare to Its History? MetricCurrentHistorical P/E (TTM)6.9x6.4x The current forward P/E ratio of 6.9x is slightly above the 5-year median P/E of 6.4x, indicating that the stock is trading at a premium compared to its historical valuation metrics. This analysis aligns with the GF Value™ verdict, suggesting that Chord Energy Corp is indeed overvalued based on its historical performance.
What Does CHRD's GF Score™ Tell Us? MetricRating GF Score™61 Financial Strength6/10 Profitability6/10 Growth3/10 Valuation7/10 Momentum1/10 The GF Score™ of 61/100 indicates an overall Above Average ranking, reflecting a mixed bag of strengths and weaknesses. Financial Strength and Profitability both score 6/10, suggesting a stable balance sheet and solid profitability metrics. However, the Growth rank of 3/10 points to potential concerns regarding the company’s ability to expand, and the low Momentum rank of 1/10 may suggest a lack of recent positive price trends. The Valuation rank of 7/10 signifies that while the stock may currently be overvalued, it has historically been considered a reasonable investment based on intrinsic valuation metrics.
What Are Insiders Doing with CHRD Stock? Insider activity at Chord Energy Corp has shown a notable trend, with insiders selling $3.8 million worth of shares over the last three months, but no buying activity has been reported. This pattern may suggest a lack of confidence among insiders regarding the stock’s current valuation or future performance potential. Typically, when insiders sell a significant amount of stock without any buying, it can raise caution for external investors.
What This Means for Investors Based on the GF Value™ assessment, Chord Energy Corp is currently deemed to be overvalued. The stock's price exceeds the intrinsic value estimate, indicating potential risks for investors looking to enter at this price point. As always, investors should conduct their own thorough research and consider various market factors before making investment decisions.
For the complete analysis, visit the Chord Energy Corp CHRD stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is CHRD's GF Score™?
CHRD's GF Score™ is 61/100, indicating an Above Average ranking that suggests a mixed assessment of the company's overall quality and potential for long-term returns.
Is CHRD overvalued or undervalued?
CHRD is currently overvalued, with a GF Value™ estimate of $129.66 compared to the current price of $134.12, suggesting limited upside potential.
What is CHRD's P/E ratio?
CHRD's forward P/E ratio is 6.9x, which is above its 5-year median P/E of 6.4x, indicating that the stock is trading at a premium compared to its historical valuation metrics.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Macy's, Inc. (NYSE:M) reported first quarter results that beat Wall Street expectations for both earnings and revenue, while also raising its full-year guidance, which saw its shares edge about 1% higher on Wednesday.
For Q1, the company reported adjusted diluted earnings per share of $0.13, compared with analyst estimates of $0.03. Net sales totaled $4.68 billion, versus expectations of $4.61 billion.
Macy’s said comparable sales increased 3.0% in the quarter, driven by gains across all three of its main banners.
Macy’s comparable sales rose 1.6%, Bloomingdale’s increased 10.2%, and Bluemercury climbed 6.4%. Net sales rose 1.8% year over year to approximately $4.7 billion.
The company also raised its full-year outlook, increasing guidance for net sales, comparable sales, and adjusted EPS. Macy’s now expects full-year adjusted earnings per share of $2.00 to $2.20, up from $1.90 to $2.10 previously, and net sales of $21.5 billion to $21.75 billion.
“We’re off to a strong start to the year, exceeding expectations for the fifth consecutive quarter as our Bold New Chapter strategy continues to build momentum,” Macy’s CEO Tony Spring said in a statement.
“Customers are responding – driving comparable sales growth at Macy’s and another standout quarter at Bloomingdale’s, underscoring its leadership in modern luxury.
Jefferies analysts wrote that the results represented a “strong beat” with a raised fiscal 2026 guide, pointing to continued strength at Bloomingdale’s, positive Macy’s comparable sales, and accelerating performance at Bluemercury.
The firm noted that Macy’s banner comps improved from the prior quarter, while Bloomingdale’s maintained double-digit growth and Bluemercury showed further acceleration.
They highlighted that while full-year guidance was raised, second-quarter EPS guidance of $0.29 to $0.34 came in below consensus expectations of $0.36 at the midpoint, even as comparable sales guidance for the quarter remained positive. Jefferies suggested this could reflect a conservative outlook, with implied second-half performance roughly flat.
Jefferies also pointed to Macy’s maintained its adjusted EBITDA margin outlook of 7.7% to 7.9%, noting offsetting pressures from higher fuel costs and lower tariff assumptions. The firm added that expectations had already improved into the print but still sees potential upside to estimates and valuation going forward.
Macy's CEO Tony Spring discusses the company's earnings, consumer spending trends and the outlook for retail sales with Romaine Bostick on "Bloomberg The Close." -------- More on Bloomberg Television and Markets Like this video?
Key Takeaways M beat Q1 estimates as comps turned positive across all nameplates and channels, best in four years.M raised FY26 outlook: net sales $21.5B-$21.75B, comps up 0.5-1.2%, adjusted EPS $2.00-$2.20.M cites Reimagine 200 comps up 2.4%, luxury strength, early gains from its AI shopping assistant and events. Macy’s, Inc. (M - Free Report) used its first quarter of fiscal 2026 call to make a broader point than an earnings beat. Management said the company’s Bold New Chapter strategy is gaining traction across banners, with stronger execution, healthier category breadth and a more responsive customer.
That message mattered because the quarter also gave Macy’s room to raise full-year guidance while keeping a cautious tone on tariffs, fuel costs and the macro backdrop.
Macy’s Raises Outlook After Broad-Based BeatM reported adjusted earnings per share of $0.13, ahead of the Zacks Consensus Estimate of $0.02 and delivering a 678.44% surprise. Revenues of $4.68 billion also topped the Zacks Consensus Estimate of $4.62 billion by 1.28%.
Chief executive officer and chairman Tony Spring said the company posted its best comparable sales performance in four years, with all nameplates and channels positive. He framed that as evidence that Macy’s merchandising, service and marketing changes are starting to resonate more consistently.
Management also raised full-year guidance. Macy’s now expects fiscal 2026 net sales of $21.5 billion to $21.75 billion, comparable sales growth of 0.5% to 1.2% and adjusted EPS of $2.00 to $2.20.
Macy’s Reimagine Stores Keep Leading the ChainSpring pointed to Macy’s nameplate as a central proof point for the strategy, with comparable sales up 1.6% and Reimagine 200 locations up 2.4%. He said those stores have now delivered positive comparable sales in eight of the last nine quarters.
The CEO described Reimagine less as a single initiative than as a store-level operating model. He said the gains are coming from sharper assortments, stronger storytelling, added staffing, better fitting-room and beauty service, and more local decision-making.
That local element came up again in the Q&A. Responding to Telsey Advisory Group, Spring said local leaders now have more freedom to deploy resources by floor and area, which he tied to better execution across regions and cohorts.
Macy’s Sees Luxury and Beauty OutperformThe strongest growth again came from Macy’s higher-end banners. Bloomingdale’s comparable sales rose 10.2%, while Bluemercury comps increased 6.4%.
Spring said Bloomingdale’s is benefiting from premium contemporary and luxury positioning, new brands, personalized service and traffic-driving events. He also said the banner is gaining from closer collaboration with Macy’s without losing brand distinction.
Beauty remained another bright spot. Management said Bluemercury’s quarter was driven by makeup, dermatological skin care and fragrances, while Spring added in the Q&A that all three banners are leaning into service-led beauty experiences to make stores more relevant.
Macy’s Balances Growth Spending and Cost PressureChief operating officer and chief financial officer Thomas Edwards said gross margin was 38.9% of net sales, down 30 basis points from last year. Excluding tariffs, he said gross margin would have been flat.
Edwards argued that expense control was a bigger positive. SG&A was flat as a percent of revenues despite continued investment in Reimagine, Bloomingdale’s and digital initiatives, helping adjusted EBITDA come in above guidance at 5.9% of total revenues.
The company’s outlook still reflects outside cost pressure. Edwards said full-year guidance assumes tariff rates lower than previously expected but also elevated fuel and transportation costs, with the two factors netting to a neutral effect for the year.
Macy’s Q&A Centers on Traffic, AUR and MarginsSeveral analysts pressed on the durability of the sales momentum. In response to questions from Jefferies and Goldman Sachs, management said second-quarter trends had remained encouraging and the first quarter was notably consistent month to month.
Spring said traffic improved sequentially, while average unit retail and basket size stayed supportive. He told analysts that Macy’s is carrying a better mix of premium fabrication, stronger brands and less clearance merchandise, which is helping pricing without relying on heavier promotions.
Evercore ISI and UBS focused on the link between higher AUR and margins. Edwards said first-quarter gross margin performance was in line with internal expectations and maintained that the company still sees room for margin build through the rest of the year as inventory and assortment tools improve.
Macy’s Uses AI and Events to Deepen EngagementMacy’s also used the call to highlight customer-facing and operational initiatives beyond the quarter. Spring said Ask Macy’s, the new AI-powered shopping assistant, is producing higher conversion among users in its early stages.
Edwards added that the company now has 35 AI pilots and tests underway, spanning customer service, associate productivity and supply-chain use cases. He said the goal is to support the broader strategy rather than pursue technology for its own sake.
Management also emphasized event-driven customer engagement. Spring tied upcoming fireworks, parade, MLB and World Cup activations to Macy’s effort to create reasons to visit stores and digital channels beyond basic need-based purchases.
Macy’s Ends the Call With Measured ConfidenceThe tone exiting the call was constructive but disciplined. Spring repeatedly said the company feels good about the factors it can control, while keeping room for guidance for geopolitical and macro uncertainty.
Edwards reinforced that posture by pairing the stronger sales outlook with a prudent stance on tariffs, fuel and competitive conditions. The overall message was that Macy’s sees clearer internal momentum, but is not ready to declare the external environment easy.
Macy’s Rank and Style SignalsM carries a Zacks Rank #4 (Sell), along with a Value Score of A, Growth Score of B, Momentum Score of A and VGM Score of A. Those Style Scores point to favorable characteristics across value, growth and momentum factors, with the VGM Score indicating strong combined appeal.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Still, Zacks materials make clear that the Rank takes priority over the Style Scores. A Zacks Rank #4 signals weaker earnings estimate revision trends, even when other style measures look attractive. That rank can change after a fresh earnings report as analyst estimates are updated.
Shares of Macy's (M +1.32%) stock rose 11% in May, according to data provided by S&P Global Market Intelligence. It got a boost from Berkshire Hathaway's new stake, and it reported a solid earnings beat.
Changing with the times Macy's owns the largest department store in the world in Herald Square in New York City, but while massive stores used to generate massive sales, the retail climate has drastically changed in recent years. The advent of e-commerce and the shift to smaller, more agile shopping venues have been a major drag on Macy's sales, and it has struggled to stay relevant.
Image source: Macy's.
It has been trying to pump oxygen into the business for years, with muted success. It has closed a significant percentage of stores to allocate resources to the better-performing ones, it has renovated stores that remain open, and it has shifted focus to e-commerce and omnichannel shopping. Management calls its strategy the "Bold new chapter," and it also involves becoming more efficient through technology.
There's been progress, and adjusted earnings per share (EPS) came in at $0.13 in the 2026 fiscal first quarter (ended May 3), a full dime higher than the $0.03 expected by Wall Street analysts. Comparable sales (comps) were up 3% year over year, the best result in four years, driven by an oustanding 10.2% increase at Bloomingdale's; Macy's also owns cosmetics retailer Bluemercury, which was also strong with a 6.4% comps increase.
The company reported a comps increase for the full 2025 after several years of declines, and it's expecting positive comps in 2026 as well.
Too cheap to ignore? Macy's stock has been slammed over the past few years as sales declined and it seemed to be on the way to irrelevance. But Greg Abel is Warren Buffett's disciple, and part of the Buffett way is to find undervalued stocks. Macy's still has plenty of assets, and its new strategy is breathing life into the business, which means it could be primed for a comeback.
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The stock is 70% off its high from a decade ago, and it's trading at less than nine times trailing 12-month earnings. It's easy to see why this combination could look compelling if you believe Macy's has a way forward.
Berkshire Hathaway's stake is only a tiny fraction of its portfolio, and it accounts for 1.2% of Macy's stock, so investors should take this with a grain of salt. Macy's does pay an attractive dividend, though, that yields 3.4% at the current price.
Jennifer Saibil has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway. The Motley Fool has a disclosure policy.
Macy's delivered strong Q1 results, with revenue up 1.7% and EPS beating expectations by $0.10. The Bold New Chapter strategy is driving outperformance, especially in Bloomingdale's, and store reinvestment is validating the turnaround thesis. Guidance was raised for comparable sales and EPS, but EBITDA guidance remains unchanged as growth is funded by reinvestment.
Key Takeaways Macy's Q1 adjusted EPS was $0.13, up y/y from $0.11, as net sales rose 1.8% to $4.682B.Macy's comps rose 3%, with Bloomingdale's up 10.2% and Bluemercury up 6.4% in the quarter.Macy's raised its FY26 view to net sales of $21.5-$21.75B and adjusted EPS of $2-$2.20. Macy’s, Inc. (M - Free Report) reported first-quarter fiscal 2026 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate. Also, both metrics increased from the year-ago quarter.
The company delivered its strongest fiscal first-quarter comparable-sales performance in four years, supported by positive sales growth across all three nameplates — Macy’s, Bloomingdale’s and Bluemercury. Management highlighted that the company’s Bold New Chapter strategy continues to gain traction, driving broad-based operational and financial improvements.
Encouraged by the strong fiscal first-quarter performance and positive second-quarter trends, management raised its fiscal 2026 outlook for net sales, comparable sales and adjusted earnings per share, reflecting confidence in the momentum of its go-forward business.
More on Macy’s Q1 ResultsThe company reported adjusted earnings of 13 cents per share, comfortably surpassing the Zacks Consensus Estimate of 2 cents and improving from adjusted earnings of 11 cents in the year-ago quarter. Earnings per share were 23 cents compared with 13 cents in the prior-year period.
Net sales of $4,682 million surpassed the Zacks Consensus Estimate of $4,623 million. The top line increased 1.8% year over year, benefiting from positive comparable sales across all three nameplates. Comparable sales rose 3%, marking the company’s strongest fiscal first-quarter comparable-sales performance in four years. We expected comparable sales to increase 1% in the quarter under review.
M’s go-forward business comps, including go-forward locations and digital platforms across Macy’s, Bloomingdale’s and Bluemercury, increased 3.1% on an owned-plus-licensed-plus-marketplace basis.
Net credit card revenues were $172 million, up 11.7% year over year, driven by the company’s healthy credit portfolio and prudent management of net credit card losses. The metric represented 3.7% of net sales compared with 3.3% in the year-ago quarter.
Macy’s Media Network revenues were $38 million, down 5% year over year, indicating the timing of advertising spending on a year-over-year basis. The metric represented 0.8% of net sales compared with 0.9% in the prior-year quarter.
Update on M’s Brand PerformanceComps across the Macy’s brand increased 1.6% year over year on an owned-plus-licensed-plus-marketplace basis. Reimagine 200 locations continued to outperform, with comps rising 2.4%, marking positive comparable-sales growth in eight of the last nine quarters.
At the Bloomingdale’s brand, comps increased 10.2% on an owned-plus-licensed-plus-marketplace basis, marking its seventh consecutive quarter of growth and delivering the highest first-quarter sales volume in the brand’s 154-year history.
Comps at the Bluemercury brand rose 6.4% on an owned-plus-licensed-plus-marketplace basis, driven by strength in makeup, dermatological skincare and fragrance categories. New and remodeled stores continued to outperform during the first quarter.
Insight Into Macy’s Margins & ExpensesThe gross margin in the fiscal first quarter was 38.9%, which beat our estimate of 38.6%. This represented a year-over-year decline of 30 basis points. Management indicated that tariffs negatively impacted the gross margin by approximately 30 basis points, and excluding this impact, the gross margin would have been flat with the prior-year period.
The Zacks Rank #4 (Sell) company reported selling, general and administrative (SG&A) expenses of $1.95 billion, up 2% year over year. The increase reflected continued investments in the Bold New Chapter strategy, including Reimagine 200 locations, Bloomingdale’s and digital capabilities across nameplates. These investments were partially offset by ongoing cost-management efforts. As a percentage of total revenues, SG&A expenses remained flat at 39.9% compared with the prior-year quarter. We estimated SG&A expenses to increase 2.4% year over year in the fiscal first quarter.
Macy’s reported adjusted EBITDA of $290 million, down from $304 million in the year-ago quarter. The adjusted EBITDA margin was 5.9% of the total revenues compared with 6.3% in the prior-year period, representing a year-over-year decline of 40 basis points.
M’s Financial Snapshot: Cash, Inventory & Equity OverviewThe company ended the first quarter of fiscal 2026 with cash and cash equivalents of $1.29 billion, and total debt of $2.43 billion. Macy’s also had $2 billion of available borrowing capacity under its asset-based credit facility. The company does not face any material long-term debt maturities until 2030, underscoring its strong liquidity position.
Merchandise inventories increased 3.6% year over year. Management stated that both the composition and level of inventory are well-positioned heading into the summer season, supported by increased newness across price points and lower aged inventories relative to last year.
During the fiscal first quarter, the operating cash flow was an inflow of $292 million against an outflow of $64 million in the prior-year quarter. The free cash flow was an inflow of $140 million against an outflow of $203 million a year ago, reflecting significantly improved cash generation. Capital expenditure totaled $177 million, while monetization proceeds were $25 million.
Through its capital-return program, Macy’s returned $100 million to shareholders during the quarter, including $50 million in dividends and $50 million in share repurchases. The company repurchased 2.6 million shares for $50 million during the quarter. As of the end of the fiscal first quarter, $1.1 billion was available under its $2-billion share repurchase authorization.
Macy’s Q2’26 OutlookFor the second quarter of fiscal 2026, Macy’s expects net sales of $4.75-$4.80 billion. The outlook incorporates the impacts of fiscal 2025 store closures, which contributed roughly $35 million to sales during the comparable prior-year period. Comparable sales are projected to be flat to up 1% on an owned-plus-licensed-plus-marketplace basis.
The company expects the adjusted EBITDA margin between 6.9% and 7.2%, while adjusted earnings per share are forecast to be 29-34 cents. Management noted that tariffs and fuel costs are expected to remain a headwind in the fiscal second quarter, with the combined impacts anticipated to reduce earnings by 3-4 cents per share and pressure the gross margin by 20-40 basis points.
Sneak-Peek Into Macy’s FY26 GuidanceFollowing its better-than-expected fiscal first-quarter performance, Macy’s raised its fiscal 2026 outlook. Management noted that the updated guidance reflects stronger-than-anticipated fiscal first-quarter results and a modest increase in expected sales for the remainder of the year.
The company continues to acknowledge macroeconomic and geopolitical uncertainties that could influence discretionary spending and has maintained flexibility within its business model to respond to changes in the competitive landscape and external environment. The outlook assumes a larger tariff impact in the first half of the year than in the second half and does not include any tariff refunds. The guidance also reflects continued investments in Reimagine 200 locations and the company’s luxury nameplates to support long-term growth.
Macy’s expects net sales of $21.5-$21.75 billion, up from the previously mentioned $21.4-$21.65 billion. The outlook continues to reflect the impacts of fiscal 2025 store closures, which reduced annual net sales by approximately $145 million. The company also expects other revenues of $920 million.
Comparable sales (owned-plus-licensed-plus-marketplace) are projected to increase 0.5-1.2% compared with the prior stated range of a decline of 0.5% to growth of 0.5%. The improved outlook reflects continued momentum across the company’s go-forward business and positive customer response to its strategic initiatives.
The gross margin is anticipated to be 38.4-38.6%, indicating a 20-30 basis-point headwind from tariffs and fuel costs. SG&A expenses are expected to increase 1-2% on a dollar basis compared with fiscal 2025, with the expense rate anticipated to be in line with the prior year in the fiscal second and fourth quarters, and higher in the third quarter due to the timing of growth investments.
M Stock Past 3-Month Performance
Image Source: Zacks Investment Research
The adjusted EBITDA margin is expected between 7.7% and 7.9%. Adjusted earnings per share are anticipated to be $2.00-$2.20, up from the previously mentioned $1.90-$2.10. This incorporates an estimated 10-20-cent combined impact of tariffs and fuel costs. The outlook does not include the impacts of any future share repurchases under the company's existing authorization.
M shares have gained 14.8% in the past three months compared with the industry’s 2.2% growth.
Stocks to ConsiderWe have highlighted three better-ranked stocks in the retail space, namely, Tapestry, Inc. (TPR - Free Report) , Dillard's Inc. (DDS - Free Report) and Ross Stores Inc. (ROST - Free Report) .
Tapestry is the designer and marketer of fine accessories and gifts for women and men in the United States and internationally. The company flaunts a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Tapestry’s current fiscal-year earnings and sales indicates growth of 36.3% and 13.8%, respectively, from the year-ago actuals. TPR delivered a trailing four-quarter average earnings surprise of 15.6%.
Dillard's is a large departmental store chain featuring fashion apparel and home furnishings. It currently sports a Zacks Rank of 1.
The Zacks Consensus Estimate for Dillard's current fiscal-year earnings and sales suggests growth of 6.3% and 2.1%, respectively, from the year-ago actuals. DDS delivered a trailing four-quarter average earnings surprise of 27.9%.
Ross Stores operates as an off-price retailer of apparel and home accessories, primarily in the United States. The company has a Zacks Rank #2 (Buy) at present.
The Zacks Consensus Estimate for Ross Stores’ current fiscal-year earnings and sales indicates growth of 15.6% and 8.2%, respectively, from the year-ago actuals. ROST delivered a trailing four-quarter average earnings surprise of 10.2%.
Greg Abel took over from Warren Buffett as CEO of Berkshire Hathaway at the beginning of the year. His first quarter at the helm was eventful. Abel and his team closed several positions while buying shares in new companies. Some of his choices were not surprising. For instance, Apple remains Berkshire Hathaway's largest holding, which everyone expected. Another decision the conglomerate made that may seem odd at first but actually makes sense is the choice to get rid of Amazon (AMZN 1.24%).
Image source: Getty Images.
Why Berkshire Hathaway dumped Amazon Amazon is a leader in e-commerce and cloud computing. It provides exposure to several other markets. The company's revenue and earnings are growing at a good clip, and it has attractive long-term prospects across several niches in which it competes. Further, Amazon benefits from a wide moat from its brand name, network effects, and switching costs. All of these factors (and more) arguably make the stock an attractive long-term bet and one that, to some extent, aligns with the criteria prominent in the Buffett school of investing.
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However, Amazon made up a small percentage of Berkshire Hathaway's portfolio. The conglomerate owned about 2.3 million shares as of the fourth quarter. That accounted for a tiny portion of Berkshire's massive $263 billion portfolio. Further, Abel and his team sold many of the stocks (including Amazon) managed by Todd Combs, who left the company in December to join JPMorgan. So, it wasn't a particularly shocking move. Let's look into one decision Abel made during the first quarter that seems like far more of a head-scratcher.
Berkshire buys a stake in a legacy retailer Berkshire Hathaway bought about three million shares of Macy's (M +1.32%). At first glance, this looks like a dubious decision. Macy's has faced significant problems in recent years -- in fact, the last decade has not been kind to the retailer. The shift to e-commerce and the decline in mall and department store foot traffic have led to poor financial results. Meanwhile, Macy's has faced growing competition from a variety of sources, not just online stores. The company has struggled to grow revenue at a good clip for a long time, and the strongest top-line increase in recent years came after the pandemic, when customers who had been stuck at home finally had the opportunity to go out again.
M Revenue (Quarterly YoY Growth) data by YCharts
In fairness, Macy's has made some progress. More recent financial results have been stronger amid a push to turn things around. The company notably decreased its retail footprint by closing many unprofitable stores and selling off real estate assets while making a push in e-commerce.
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It's also admirable that Macy's has survived this long, especially as other legacy retailers weren't so lucky and have now gone out of business. However, can Macy's deliver strong returns from now on? Or is there another reason Abel and his team got in the game? Perhaps Berkshire Hathaway is attracted to Macy's real estate holdings because they may be more valuable than the market is giving the company credit for. It's in that sense that the retail giant may be "undervalued."
We could also look at traditional valuation metrics. Macy's is trading at 10.2x forward earnings, which is lower than the consumer discretionary average of 26.2. Macy's also appears undervalued by this standard, at least at first glance. It's also worth pointing out that in the first quarter of its fiscal year 2026, ending on May 2, Macy's net sales increased by 1.8% year over year to $4.7 billion, while comparable sales grew 3% year over year. The company's adjusted earnings per share climbed to $0.13, 18% higher than the year-ago period.
The company beat Wall Street estimates on the top and bottom lines. Macy's increased its guidance for its full fiscal year 2026 as well. Macy's is moving in the right direction. There is plenty of risk remaining here, and that's probably one reason why Berkshire Hathaway did not buy enough of the company's shares to make it anything close to a top holding in its portfolio. However, at current levels, Macy's might be worth a second look for contrarian value investors.
JPMorgan Chase is an advertising partner of Motley Fool Money. Prosper Junior Bakiny has positions in Amazon and Berkshire Hathaway. The Motley Fool has positions in and recommends Amazon, Apple, Berkshire Hathaway, and JPMorgan Chase. The Motley Fool has a disclosure policy.
Macy's Inc. NYSE: M kicked off the first quarter of 2026 with better-than-expected performance across the board, offering further evidence that the retailer's Bold New Chapter turnaround strategy is gaining traction.
The strong results also prompted the department store chain to raise its full-year outlook. Despite the good news, Wall Street's reaction was muted, with shares closing slightly higher following the report.
Get Macy's alerts:
Q1 Beat Fueled by Strength Across BrandsMacy's Q1 adjusted earnings came in at 13 cents per share, down from 16 cents a year ago but well ahead of Wall Street expectations of 2 cents per share. Revenue of $4.89 billion increased 1.8% year over year, topping analyst estimates of $4.61 billion.
Macy's Today
M
Macy's
$25.40 +0.37 (+1.46%)
As of 03:59 PM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$10.54▼
$25.65Dividend Yield3.03%
P/E Ratio10.50
Price Target$20.30
Growth was broad-based across Macy's portfolio. Performance at Bloomingdale's was particularly strong, with comparable sales (comps) rising 10.2% year over year, marking the best first quarter in the brand's history. Comps at the Macy's nameplate rose 1.6%, though the retailer's reimagined stores, which account for roughly 60% of the store base, saw comps grow 2.4%. At Bluemercury, which sells luxury beauty brands, comps increased 6.4%.
"In the first quarter, we delivered enterprise-wide growth, better than expected performance across all key metrics, and our best comparable sales in four years with all nameplates and channels positive," Chief Executive Tony Spring said on the earnings call.
He added, "These broad-based operational and financial improvements reflect the strength and viability of the Bold New Chapter strategy."
Macy's Raises Full-Year OutlookMacy's issued second-quarter guidance and raised its full-year outlook, citing better-than-expected first-quarter earnings and revenue results, as well as a modest increase in its sales expectations for the remainder of the year.
For the second quarter, the company expects net sales of approximately $4.75 billion to $4.8 billion, with comparable sales ranging from roughly flat to up 1%. Adjusted diluted earnings are expected to be between 29 cents and 34 cents per share.
For the full year, Macy's now anticipates net sales of $21.5 billion to $21.75 billion, up from its previous forecast of $21.4 billion to $21.65 billion. Comparable sales are expected to increase 0.5% to 1.2%, compared with prior guidance of down 0.5% to up 0.5%. Adjusted diluted earnings are now projected to be between $2 and $2.20 per share, up from the previous range of $1.90 to $2.10.
Macy's said the updated outlook reflects revised tariff and fuel assumptions, which it expects will have a roughly net-neutral impact on results this year. The guidance also provides flexibility to account for potential changes in the competitive landscape, as well as ongoing macroeconomic and geopolitical uncertainty.
Wall Street Reaction Remains MutedDespite the strong quarter and optimistic outlook, Wall Street's reaction was relatively muted following the report, with shares closing up just 0.4% to $21.76.
Investors may be taking a breather after the stock's strong run over the past year. Fueled by a series of better-than-expected earnings reports that have bolstered confidence in the company's turnaround strategy, shares had already gained roughly 90% over the prior 12 months.
Macy's, Inc. (M) Price Chart for Friday, June, 12, 2026
After reaching a 52-week intraday high above $24 in December, the stock pulled back during the first few months of 2026. Momentum appeared to return in March after Macy's delivered stronger-than-expected fourth-quarter results, giving shares a boost. However, the company's outlook prompted some analysts to lower their price targets. Still, over the three months leading up to the Q1 release, the stock rose 19%.
Current Price$25.41High Forecast$27.00Average Forecast$20.30Low Forecast$9.00Macy's Stock Forecast Details
Analysts Remain Cautious Despite Turnaround ProgressDespite signs that Macy's turnaround strategy is working, Wall Street remains cautious on the stock. The consensus rating is Reduce, with two Sell ratings, 11 Hold ratings, and one Buy rating. The average price target is approximately $19.90, roughly 15% below the current share price. The highest price target on Wall Street is $27, while the remaining targets range from $9 to $23.
The cautious stance may reflect concerns about whether Macy's can sustain its momentum, as well as broader uncertainty surrounding consumer spending and the macroeconomic environment.
Short Interest Climbs as Some Investors Remain SkepticalShort interest in the stock has also risen over the last several months. As of May 15, roughly 33.5 million shares, or 12.8% of the float, were sold short. That is up from approximately 21.1 million shares, or 8.2% of the float, on Jan. 15.
From a valuation standpoint, Macy's looks inexpensive relative to the broader retail industry. The stock currently trades at roughly 10X earnings, below the retail industry average of 11.3X. On a price-to-sales basis, shares trade at 0.27X compared with the industry average of 0.84X.
Although Wall Street remains cautious, Macy's latest quarter clearly highlighted continued progress in its turnaround efforts. Investors will be watching closely to see whether the company can continue to build on that progress in the quarters ahead.
Should You Invest $1,000 in Macy's Right Now?Before you consider Macy's, you'll want to hear this.
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The iconic Macy’s “shopping bag” billboard that has loomed over Herald Square for more than 60 years is slated to be demolished and removed this weekend, The Post has learned.
The four-story, red-and-white fixture – tucked into the cut-out corner of the flagship at Broadway and West 34th Street — rests atop a 2,200-square-foot retail space owned by Kaufman Realty, which for years has been leased out to a Sunglass Hut store.
Macy’s and Kaufman have been in negotiations about the ad space, a source with knowledge of the situation told The Post. It couldn’t immediately be learned what exactly will replace the shopping bag, but the billboard is expected to be “modernized,” the source said.
This Macy’s billboard has been a fixture in Herald Square for more than 60 years. Getty Images The switch is coming as big, splashy, LED-screen billboards like those that light up Times Square command increasingly lucrative ad rates, real estate experts said.
Macy’s confirmed that the billboard is scheduled to be removed this weekend but declined to elaborate on what will replace it or whether Macy’s will make a bid to continue using the space.
“As the neighborhood continues to evolve, the current sign – while beloved – is outdated and will be removed as part of broader updates by the billboard owner to modernize the space,” Macy’s said in a statement to The Post.
The company also said it will “soon announce refreshed and dynamic branding for Macy’s Herald Square that honors our heritage while reflecting the future of our flagship.”
A separate building has been nestled into the corner of Macy’s flagship store on 34th St. and Broadway, as seen in this photo from the early 20th century. Getty Images Kaufman’s chief executive Edward Hart told The Post he was out of town on Friday and declined to comment.
Macy’s sued Kaufman in 2021 over the billboard, alleging that the real estate firm was planning to lease the space to online retail rival Amazon after the Macy’s lease expired.
“To the naked eye, the Billboard is on Macy’s department store and in its own right iconic,” according to Macy’s complaint.
Macy’s said the billboard sign is “beloved” but “outdated.” Andriy Blokhin – stock.adobe.com Macy’s argued that an agreement it signed with the building’s owner in 1963 prevents the landlord from leasing the billboard to a competitor of Macy’s – a prohibition that lasts “forever,” according to the lawsuit.
Kaufman allegedly disagreed with Macy’s interpretation of the agreement, according to the lawsuit.
The real estate firm’s lawyer allegedly said that Kaufman has “the right to license the sign space to any off-site advertisers” and will “proceed with alternative advertisers,” according to Macy’s complaint.
The companies appear to have settled that lawsuit.
In partnership with the U.S. Soccer Foundation, Macy’s is helping expand access to the game across New York City
NEW YORK--(BUSINESS WIRE)--This summer, Macy’s brings the world’s game to life with Macy's World Soccer HQ – a dynamic, omnichannel experience designed to connect fans to the sport through product, storytelling and community.
As soccer’s popularity surges across the U.S., access to the sport has not kept pace - particularly in under-resourced neighborhoods. Across New York City, thousands of young people still lack safe, accessible places to play, contributing to what organizations call “soccer deserts.”
Macy’s is addressing this gap by partnering with the U.S. Soccer Foundation, turning its World Soccer HQ platform into a vehicle for both engagement and impact - connecting customers to the sport while supporting increased access for local youth.
Rooted in the belief that soccer is more than a game, Macy’s World Soccer HQ brings together commerce, culture and community. Through immersive retail experiences, storytelling and youth-focused initiatives, the campaign invites fans not only to celebrate the sport, but to be part of growing it.
“We’re honored to celebrate this global sport by bringing Macy’s World Soccer HQ to life, a one-stop destination where fans can discover everything they need to show their passion for the sport,” said Daniel Leppo, SVP, Merchandising, Men’s and Kids, Macy’s. “Featuring assortments from Nike, adidas, Puma and more, this experience reflects our belief that Celebrations Start at Macy’s, offering customers a place to shop, connect and support something bigger than the game itself.”
A Destination for Every Fan
At Macy’s Herald Square flagship, guests can step into an immersive world soccer marketplace inspired by the energy and global spirit of the game. The space brings together vibrant, country-driven displays, full-family assortments, and interactive moments in one cohesive experience.
Visitors can explore a curated collection spanning soccer jerseys, training apparel, accessories and collectibles from leading global brands, alongside lifestyle pieces influenced by soccer’s impact on fashion and culture. The destination also comes to life through a range of engaging in-store elements - including athlete-inspired photo opportunities, immersive tunnel moments, and digital activations - creating a social, high-energy environment where fans can shop and celebrate.
Macy’s World Soccer HQ extends beyond Herald Square to Macys.com and select stores nationwide, making the assortment accessible to fans everywhere. The assortment also serves as a Father’s Day gifting destination, with options ranging from official team kits to everyday fan essentials.
Macy’s Partners with U.S. Soccer Foundation
Through its partnership with the U.S. Soccer Foundation, Macy’s is supporting efforts to expand access to the sport in underserved communities. The initiative includes a kick-start donation to the Foundation and a dedicated soccer experience for local youth, helping introduce and grow the game at the grassroots level while raising awareness of soccer deserts across New York City.
“We’re thrilled to partner with Macy’s to expand access to soccer for young people,” said Diana Martin, Chief External Relations Officer at the U.S. Soccer Foundation. “By creating more safe places to play and connecting youth with trained coach-mentors, we’re helping more kids thrive—on and off the field.”
To expand access to the game in under-resourced communities, the U.S. Soccer Foundation has installed 88 mini-pitches across the greater New York City metro area. Made possible through a range of partnerships since 2015, these spaces provide safe places for youth to play and grow. The Foundation has also reached more than 571,000 young people in the region through its proven school-based and after-school programs and has trained 3,000 coach-mentors to deliver high-quality youth programming.
Celebrations Start at Macy’s
Macy’s is extending the excitement nationwide through a series of retail experiences and community activations that bring fans closer to the game.
On Saturday, June 13, Macy’s Celebration Saturdays will serve as a cornerstone of the program, featuring athlete appearances, live entertainment and on-site product customization, alongside curated offerings highlighted in Macy’s Father’s Day Gift Guide to inspire fans shopping for the occasion.
On Saturday, June 20, fans in Atlanta, Miami and the New York Metro area, will have the opportunity to win tickets to their local world soccer playoff by entering to win in-store at Macy’s Lenox Square, Macy’s Aventura and Macy’s Garden State Plaza. There is no purchase necessary to enter the sweepstakes. Official Rules will be available in store.
About Macy’s
Macy’s, the largest retail brand of Macy’s, Inc. (NYSE: M), helps customers celebrate – from everyday moments to life’s biggest occasions – with a curated assortment across apparel, home, beauty, accessories and more. Each year, Macy’s brings the nation together through two of its most beloved traditions: Macy’s Thanksgiving Day Parade and Macy’s 4th of July Fireworks, entertaining millions. Celebrate big and small moments in stores nationwide, at macys.com, or on the Macy’s app. For more information on Macy’s, Inc., visit www.macysinc.com.
About the U.S. Soccer Foundation
As the national leader for sports-based youth development in under-resourced areas, the U.S. Soccer Foundation is on a mission to let soccer do what it does: change absolutely everything. Founded as a legacy of the 1994 FIFA World Cup, the Foundation provides underserved communities access to innovative play spaces and evidence-based soccer programs that instill hope, foster well-being, and help youth achieve their fullest potential. Headquartered in Washington, D.C., the U.S. Soccer Foundation is a 501(c)(3) organization. For more information visit www.ussoccerfoundation.org or follow us on LinkedIn and Instagram.
This summer, Macy’s brings the world’s game to life with Macy's World Soccer HQ – a dynamic, omnichannel experience designed to connect fans to the sport through product, storytelling and community.
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260610320738/en/
Macy's curated collection includes apparel, accessories, collectibles and more.
As soccer’s popularity surges across the U.S., access to the sport has not kept pace - particularly in under-resourced neighborhoods. Across New York City, thousands of young people still lack safe, accessible places to play, contributing to what organizations call “soccer deserts.”
Macy’s is addressing this gap by partnering with the U.S. Soccer Foundation, turning its World Soccer HQ platform into a vehicle for both engagement and impact - connecting customers to the sport while supporting increased access for local youth.
Rooted in the belief that soccer is more than a game, Macy’s World Soccer HQ brings together commerce, culture and community. Through immersive retail experiences, storytelling and youth-focused initiatives, the campaign invites fans not only to celebrate the sport, but to be part of growing it.
“We’re honored to celebrate this global sport by bringing Macy’s World Soccer HQ to life, a one-stop destination where fans can discover everything they need to show their passion for the sport,” said Daniel Leppo, SVP, Merchandising, Men’s and Kids, Macy’s. “Featuring assortments from Nike, adidas, Puma and more, this experience reflects our belief that Celebrations Start at Macy’s, offering customers a place to shop, connect and support something bigger than the game itself.”
A Destination for Every Fan
At Macy’s Herald Square flagship, guests can step into an immersive world soccer marketplace inspired by the energy and global spirit of the game. The space brings together vibrant, country-driven displays, full-family assortments, and interactive moments in one cohesive experience.
Visitors can explore a curated collection spanning soccer jerseys, training apparel, accessories and collectibles from leading global brands, alongside lifestyle pieces influenced by soccer’s impact on fashion and culture. The destination also comes to life through a range of engaging in-store elements - including athlete-inspired photo opportunities, immersive tunnel moments, and digital activations - creating a social, high-energy environment where fans can shop and celebrate.
Macy’s World Soccer HQ extends beyond Herald Square to Macys.com and select stores nationwide, making the assortment accessible to fans everywhere. The assortment also serves as a Father’s Day gifting destination, with options ranging from official team kits to everyday fan essentials.
Macy’s Partners with U.S. Soccer Foundation
Through its partnership with the U.S. Soccer Foundation, Macy’s is supporting efforts to expand access to the sport in underserved communities. The initiative includes a kick-start donation to the Foundation and a dedicated soccer experience for local youth, helping introduce and grow the game at the grassroots level while raising awareness of soccer deserts across New York City.
“We’re thrilled to partner with Macy’s to expand access to soccer for young people,” said Diana Martin, Chief External Relations Officer at the U.S. Soccer Foundation. “By creating more safe places to play and connecting youth with trained coach-mentors, we’re helping more kids thrive—on and off the field.”
To expand access to the game in under-resourced communities, the U.S. Soccer Foundation has installed 88 mini-pitches across the greater New York City metro area. Made possible through a range of partnerships since 2015, these spaces provide safe places for youth to play and grow. The Foundation has also reached more than 571,000 young people in the region through its proven school-based and after-school programs and has trained 3,000 coach-mentors to deliver high-quality youth programming.
Celebrations Start at Macy’s
Macy’s is extending the excitement nationwide through a series of retail experiences and community activations that bring fans closer to the game.
On Saturday, June 13, Macy’s Celebration Saturdays will serve as a cornerstone of the program, featuring athlete appearances, live entertainment and on-site product customization, alongside curated offerings highlighted in Macy’s Father’s Day Gift Guide to inspire fans shopping for the occasion.
On Saturday, June 20, fans in Atlanta, Miami and the New York Metro area, will have the opportunity to win tickets to their local world soccer playoff by entering to win in-store at Macy’s Lenox Square, Macy’s Aventura and Macy’s Garden State Plaza. There is no purchase necessary to enter the sweepstakes. Official Rules will be available in store.
About Macy’s
Macy’s, the largest retail brand of Macy’s, Inc. (NYSE: M), helps customers celebrate – from everyday moments to life’s biggest occasions – with a curated assortment across apparel, home, beauty, accessories and more. Each year, Macy’s brings the nation together through two of its most beloved traditions: Macy’s Thanksgiving Day Parade and Macy’s 4th of July Fireworks, entertaining millions. Celebrate big and small moments in stores nationwide, at macys.com, or on the Macy’s app. For more information on Macy’s, Inc., visit www.macysinc.com.
About the U.S. Soccer Foundation
As the national leader for sports-based youth development in under-resourced areas, the U.S. Soccer Foundation is on a mission to let soccer do what it does: change absolutely everything. Founded as a legacy of the 1994 FIFA World Cup, the Foundation provides underserved communities access to innovative play spaces and evidence-based soccer programs that instill hope, foster well-being, and help youth achieve their fullest potential. Headquartered in Washington, D.C., the U.S. Soccer Foundation is a 501(c)(3) organization. For more information visit www.ussoccerfoundation.org or follow us on LinkedIn and Instagram.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260610320738/en/
Macy’s, Inc. (NYSE: M) today announced that Tom Edwards, chief operating officer and chief financial officer, will participate in the Jefferies Consumer Conference on Tuesday, June 16, 2026.
About Macy’s, Inc.
Macy’s, Inc. (NYSE: M) is a trusted source for quality brands through our iconic nameplates – Macy’s, Bloomingdale’s and Bluemercury. Headquartered in New York City, our comprehensive digital and nationwide footprint empowers us to deliver a seamless shopping experience for our customers. For more information, visit macysinc.com.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260611717589/en/
Malls and department stores are seen by many as fading relics of the past, but don't tell that to Macy's (M +1.32%).
The clothing retail store chain just had its best first quarter in years, and its stock price is up 85% over the past 12 months. It even caught the attention of Berkshire Hathaway (BRKA +0.76%) (BRKB +0.55%), which added its first-ever stake in Macy's in the first quarter.
Revenue increased 2% in the quarter to $4.9 billion, while its comparable (or same-store) sales rose 3%. Macy's store comp sales were up 1.6%, but the company's Bloomingdale stores saw comp sales surge 10.2% while its beauty property, Blue Mercury, saw same-store sales jump 6.4%.
Net income rose 66% to $63 million while earnings per share increased 77% to $0.23 per share.
Image source: Getty Images.
The retailer has now had two straight quarters of earnings growth after declining earnings for much of the previous three years. Here are three reasons why Macy's stock is headed in the right direction.
1. A bold new chapter Much of the improvement stems from its Bold New Chapter initiative, launched two years ago. It focused on cutting costs by reducing the number of underperforming stores and focusing on a core group of 350 stores. That meant closing roughly 150 locations.
At the same time, the plan called for opening new locations of its luxury brands, Bloomingdale's and Blue Mercury, as both have been in high demand. We watched that play out in Q1 as these two brands saw comp sales surge.
The target was low single-digit sales growth, expenses rising by less than 2% to 3%, mid-single digit adjusted annual EBITDA growth, and free cash flow back to pre-pandemic levels. Macy's is hitting its sales and expense targets, and still progressing toward EBITDA and free-cash flow targets.
2. Reimagined stores As part of the Bold New Chapter strategy, Macy's plans to reimagine 200 stores to improve the customer experience. Initially, the company planned to open 125 reimagined stores, but it has been so successful that management upped the number to 200.
The 200 reimagined Macy's locations posted comparable sales increases of 2.4%, higher than the 1.6% comp sales increase for Macy's overall in Q1.
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The first quarter's success led Macy's to raise sales and earnings guidance for this fiscal year. The chain now expects $21.5 to $21.75 billion in net sales, up from the previous guidance of $21.4 to $21.65 billion. Further, comp sales are slated to increase 0.5% to 1.5% this fiscal year, up from the previous range of -0.5% to 0.5%.
In addition, adjusted earnings are targeted at $2.00 to $2.20 per share, up from a range of $1.90 to $2.10 per share.
3. A cheap stock price The turnaround plan caught the attention of Berkshire Hathaway, and I'm certain Macy's low valuation was a major reason why Berkshire Hathaway opened a new position.
Macy's stock is trading at 9 times earnings and 10 times forward earnings, making it dirt cheap. Further, the price-to-sales ratio is just 0.27, so Macy's stock is extremely attractive from a valuation standpoint.
As an added bonus, Macy's stock offers a strong dividend yielding 3.45%.
Key Takeaways GAP posted Q1 FY26 adjusted EPS of $0.38 and revenues of $3.50B, both below consensus.GAP comps rose 2%, positive for a ninth straight quarter; Old Navy and Banana Republic grew.GAP gross margin fell to 40.5% on tariffs; adjusted operating margin declined 230 basis points. The Gap, Inc. (GAP - Free Report) delivered adjusted earnings of 38 cents per share in the first quarter of fiscal 2026, down 25.5% year over year and missing the Zacks Consensus Estimate of 39 cents. Net sales of $3.50 billion rose 1% year over year but fell short of the consensus mark of $3.53 billion.
Comparable sales (comps) increased 2% for the ninth straight quarter of positive comps, led by a standout performance at the Gap brand. Still, tariff-related pressure and higher spending on growth initiatives weighed on adjusted profitability.
Gap’s shares fell nearly 4% in the after-hours session yesterday on soft first-quarter results and trimmed sales view for fiscal 2026. Shares of this Zacks Rank #4 (Sell) company have lost 9.1% compared with the industry’s 0.2% drop over the past six months.
GAP Brands' ResultsResults across brands were uneven, with strength concentrated in the Gap banner and more pressure in Athleta. Gap Global posted net sales of $796 million, up 10% year over year, alongside a 10% comps gain, reflecting momentum in key destination categories such as denim, fleece, and kids and baby.
Old Navy Global generated $2 billion of net sales, up 1% year over year, while comps increased 1%. Banana Republic Global recorded net sales of $431 million, up 1%, with comps up 2%. Athleta remained soft, with net sales down 12% to $270 million and comparable sales down 11%.
Gap brand's revenues surpassed our model's estimate of $745.3 million, while Banana Republic and Athleta brands' revenues lagged our estimates of $434.4 million and $301.1 million, respectively. Old Navy's revenues were in line with our model's estimate.
Gap Margins & ExpensesGross margin was 40.5%, down 130 basis points from the year-ago quarter, yet management said the outcome exceeded expectations. Merchandise margin declined 100 basis points, including an anticipated net tariff impact of about 200 basis points, implying underlying improvement supported by better inventory management and strength at the Gap brand. Average unit retail rose across all brands.
Adjusted operating income was $182 million and adjusted operating margin was 5.2%, down 230 basis points year over year, mainly reflecting the net tariff impacts. We had expected adjusted gross margin contraction of 150 basis points to 40.3% and adjusted operating margin decrease of 220 basis points to 5.3%.
On the expense line, reported operating expense was $972 million, or 27.8% of net sales. Adjusted operating expense was $1.2 billion, translating to 35.3% of net sales, as spending stepped up for the loyalty relaunch, investments tied to beauty and accessories, and continued work on technology and next-generation capabilities.
Gap Financial HealthThe company ended the fiscal first quarter with $2.6 billion in cash, cash equivalents and short-term investments, up 15% from the year-ago quarter, while ending inventory of $2.1 billion was flat year over year.
Management returned $464 million to shareholders via repurchases and dividends in the quarter. This included an accelerated share repurchase program and additional open-market repurchases, remaining $599 million under its present repurchase authorization. It has approved second-quarter dividends of $0.175 per share, up 6% from the prior-year rate. Free cash flow was $78 million in the quarter, after $135 million of capital expenditures.
GAP Outlook Turns More Cautious on SalesFor fiscal 2026, the company trimmed the top-line view, now expecting net sales growth of 1-2% year over year, reflecting a more tempered outlook for Old Navy based on early-year trends. It expects Old Navy comps to be flat to up 1% for the fiscal year. Even with that moderation, management raised fiscal 2026 adjusted earnings outlook to $2.30-$2.40 per share, citing tailwinds from interest income, tax rate and share count. Earlier, management had expected sales growth of 2-3% and adjusted earnings of $2.20-$2.35 for the current fiscal year.
GAP still projects adjusted operating margin in the range of 7.3-7.5% and adjusted operating expenses, as a percentage of sales, nearly flat year over year at 33.5% seen in fiscal 2025. This reflects $150 million in cost savings to boost efficiency and effectiveness by managing inflation and funding growth initiatives. Capital expenditures are expected to be about $650 million in investments with respect to mainly stores, technology and supply-chain initiatives.
The outlook assumes a 10% tariff rate under Section 122 for inventory received after Feb. 24, 2026 through July 24, 2026, followed by a reversion for the rest of the year to the IEEPA-level tariff rates included in the prior outlook. This is likely to result in about $80 million of net tariff relief to gross profit and operating income, or nearly 50 basis points of gain to gross margin and operating margin in fiscal 2026.
The benefit is likely to be concentrated in the second and third quarters based on the timing of receipts. Gap is reserving the full anticipated benefit to offer flexibility to business for the rest of the year, with nearly half intended to offset the potential impact of higher fuel costs and the balance for potential changes in the promotional and competitive landscape. Net store closures are likely to remain almost flat year over year.
For the second quarter of fiscal 2026, GAP expects net sales to be flat to down 1% year over year and gross margin to be flat to down 50 basis points, with Old Navy pressured by seasonal-category softness that management attributed primarily to execution in dresses and certain other seasonal assortments Operating expenses, as a percentage of sales, to deleverage about 110-120 basis points from 33.4% seen in the year-earlier quarter.
Key Retail Stock PicksKohl's Corporation (KSS - Free Report) , which is a department store chain, currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
KSS delivered a trailing four-quarter earnings surprise of 72.3%, on average. The Zacks Consensus Estimate for KSS’ current financial-year sales indicates a drop of 1% from the year-ago number.
Levi Strauss & Co. (LEVI - Free Report) , which is a designer and marketer of jeans, casual wear and related accessories, currently carries a Zacks Rank #2 (Buy).
LEVI delivered a trailing four-quarter earnings surprise of 21.4%, on average. The Zacks Consensus Estimate for Levi Strauss’ current financial-year sales indicates growth of 5.2% from the year-ago number.
Fossil Group, Inc. (FOSL - Free Report) , which is a designer and marketer of fashion accessories, currently carries a Zacks Rank of 2.
The Zacks Consensus Estimate for FOSL’s current financial-year earnings is expected to rise 87.6% from the corresponding year-ago reported figure. FOSL delivered an earnings surprise of 86.4% in the last reported quarter.
New York, New York--(Newsfile Corp. - May 29, 2026) - Levi & Korsinsky notifies investors that it has commenced an investigation into The Gap, Inc. ("The Gap, Inc.") (NYSE:GAP) concerning potential violations of the federal securities laws.
The Q1 results fell short across key segments. Old Navy, which represents roughly half of Gap's total revenue, delivered comparable sales growth of just 1% -- well below the 3% consensus estimate that matched last year's quarterly performance. Management acknowledged the shortfall on the May 28 earnings call, stating the company was "not starting out as strongly as we anticipated." Athleta's quarter was described by CEO Richard Dickson as "disappointing," with an ongoing inventory-clearance process "taking longer than anticipated" resulting in additional "pressure on sales." As a result, management cut its 2026 full-year net sales guidance.
JPMorgan responded on May 29 by downgrading GAP from Overweight to Neutral and slashing its price target from $35 to $27. The analyst action compounded selling pressure that had already driven shares down more than 14% in after-hours trading the prior evening. Trading volume spiked to several times the 30-day average.
If you suffered a loss on your The Gap, Inc. securities and would like to explore a potential recovery under the federal securities laws, Learn More About the Investigation or contact Joseph E. Levi, Esq. via email at [email protected] or call (212)363-7500 to speak to our team of experienced shareholder advocates.
WHY LEVI & KORSINSKY: Over the past 20 years, Levi & Korsinsky LLP has established itself as a nationally-recognized securities litigation firm that has secured hundreds of millions of dollars for aggrieved shareholders and built a track record of winning high-stakes cases. The firm has extensive expertise representing investors in complex securities litigation and a team of over 70 employees to serve our clients. For seven years in a row, Levi & Korsinsky has ranked in ISS Securities Class Action Services' Top 50 Report as one of the top securities litigation firms in the United States. Attorney Advertising. Prior results do not guarantee similar outcomes.
CONTACT:
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
Ed Korsinsky, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004 [email protected]
Tel: (212)363-7500
Fax: (212)363-7171
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/299469
Gap Inc. reported 1% Q1 revenue growth to $3.5 billion, missing Wall Street estimates, while Old Navy comparable sales came in at just 1% versus the 3% analysts expected -- shares fell over 15% in a single session.
, /PRNewswire/ -- Investors who held Gap Inc. (NYSE: GAP) shares lost more than 15% of their investment on May 28-29, 2026, after the company reported Q1 FY2026 revenue of $3.5 billion -- up 1% year-over-year and below analyst expectations. Shareholders who lost money on GAP are encouraged to submit their information here. You may also contact Joseph E. Levi, Esq. via email at [email protected] or by telephone at (888) SueWallSt.
The Q1 results fell short across key segments. Old Navy, which represents roughly half of Gap's total revenue, delivered comparable sales growth of just 1% -- well below the 3% consensus estimate that matched last year's quarterly performance. Management acknowledged the shortfall on the May 28 earnings call, stating the company was "not starting out as strongly as we anticipated." Athleta's quarter was described by CEO Richard Dickson as "disappointing," with an ongoing inventory-clearance process "taking longer than anticipated" resulting in additional "pressure on sales." As a result, management cut its 2026 full-year net sales guidance.
JPMorgan responded on May 29 by downgrading GAP from Overweight to Neutral and slashing its price target from $35 to $27. The analyst action compounded selling pressure that had already driven shares down more than 14% in after-hours trading the prior evening. Trading volume spiked to several times the 30-day average.
If you purchased Gap Inc. shares and suffered a loss, click here to discuss your legal rights. You may also contact Joseph E. Levi, Esq. via email at [email protected] or by telephone at (888) SueWallSt.
ABOUT THE FIRM -- For over two decades, SueWallSt has represented shareholders in securities investigations. Ranked in ISS Top 50 for seven consecutive years.
Frequently Asked Questions About the GAP Investigation
Q: Who is eligible to participate in the GAP investigation?A: Investors who purchased GAP stock or securities and suffered financial losses may be eligible. Eligibility is based on purchase date and documented losses -- not on whether you still hold the shares.
Q: How much did GAP stock drop?A: Shares fell more than 15% after the company reported Q1 revenue that missed analyst estimates as management highlighted a slower start to the year and cut its full-year sales outlook. Investors who purchased shares at higher prices may be entitled to recovery.
Q: Which statements are being investigated as potentially misleading?A: The investigation concerns whether Gap Inc. made materially false or misleading statements regarding its revenue outlook, brand-level performance trends, and inventory challenges. When actual Q1 results and a lowered full-year revenue forecast were disclosed, the stock price declined sharply.
Q: What do GAP investors need to do right now?A: Gather brokerage records including purchase dates, share quantities, and prices paid. Contact SueWallSt for a free, no-obligation evaluation at [email protected] or (888) SueWallSt. No immediate action is required to remain eligible to participate in the investigation.
Q: What if I already sold my GAP shares -- can I still recover losses?A: Yes. Eligibility is based on when you purchased, not whether you still hold the shares. Investors who bought GAP and sold at a loss may still participate in the investigation.
Q: What does it cost me to participate?A: Nothing. Securities investigations and any resulting actions are handled on a pure contingency basis. No upfront fees, no retainer, no out-of-pocket costs.
Q: Do I need to go to court or give testimony?A: No. Participating in the investigation does not require court appearances or depositions.
Gap Inc CEO Richard Dickson said the turnaround at Athleta is taking longer than expected, but the retailer remains committed to rebuilding the struggling activewear brand.
"Athleta is an important brand in the portfolio," Dickson said on CNBC's "Mad Money" on Friday. "We are in the rebuild year."
On Thursday, Gap reported weaker-than-expected results for Athleta, where first-quarter sales fell 12% to $270 million and comparable sales declined 11%. On the company's earnings call, management described Athleta as a "slower rebuild," warning second-quarter trends are expected to remain similar to the first quarter. Athleta's comp sales also were down 10% and 11% in the fourth and third quarters of last fiscal year, reflecting its challenges.
Athleta's woes aren't the only problem facing Gap right now.
Shares of the retailer plunged 17% Friday after weakness at Old Navy — Gap's largest brand by revenue — overshadowed strength elsewhere in the portfolio. Old Navy posted 1% comparable sales growth in the quarter, below analyst expectations of 3%, as softer demand in seasonal categories like dresses weighed on results and prompted Gap to lower its full-year sales outlook.
Still, Dickson said Gap sees a path to recovery for Athleta under the brand's CEO Maggie Gauger, who joined last August and has been leading an overhaul of the business. During the pandemic era, Athleta had been a buzzy growth driver for Gap, which also owns Old Navy and its namesake brand.
"She streamlined the assortment considerably, which is resulting in better [average unit retail], better margins, even with a challenging top line," Dickson said.
Gap has also reshaped leadership, improved creative execution and begun rolling out new merchandise that management believes is resonating better with shoppers.
"We've gotten some new merchandise in. It's checking really well," Dickson said. "It's small, they're early reads, but we do believe that this brand has strength to deliver."
Athleta, which ranks as the fifth-largest activewear brand in the category, remains an important long-term growth opportunity for Gap, according to Dickson.
"It's on us to prove that," Dickson said, adding that the company expects "slight improvement" in the second half of the year.
"We believe we'll continue to chip away at this and find the growth pattern for Athleta," he said.
Gap Inc. NYSE: GAP delivered a mixed first-quarter report Thursday after the bell, slightly missing Wall Street's earnings and revenue expectations for the second consecutive quarter while lowering its full-year sales outlook due to weaker-than-expected performance at its Old Navy brand.
Although the company, which is in the midst of a multiyear turnaround, raised its full-year earnings guidance, investors seemed more concerned about the slowing top-line growth, sending shares down about 17% following the report.
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Gap's Q1 Results Reflect Uneven Brand PerformanceGap reported adjusted diluted earnings per share (EPS) of 38 cents, down from 51 cents a year ago and a penny below Wall Street's expectations. Revenue rose to $3.5 billion, up 1% year over year, but fell roughly $28 million short of analyst estimates.
GAP Today
$21.92 +0.06 (+0.27%)
As of 03:59 PM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$18.68▼
$29.36Dividend Yield3.19%
P/E Ratio8.63
Price Target$28.71
Comparable sales (comps) increased 2%, marking the retailer's ninth consecutive quarter of positive comp growth, while gross margin of 40.5% exceeded the company's guidance.
On the earnings call, CEO Richard Dickson acknowledged that performance was uneven across the company's portfolio during the quarter.
"Overall, at the company level, the quarter was in line with our expectations. However, results at the brand level were more varied, reflecting both the different stages of their transformation and some brand-specific dynamics," Dickson said.
Three of Gap's four brands posted positive year-over-year comps. Gap's namesake brand remained a standout performer, with comps rising 10% and extending its streak of positive comps to 10 consecutive quarters. Banana Republic also continued to gain traction, posting 2% comps growth and marking its fourth straight quarter of positive comps.
Old Navy, the company's largest brand, posted 1% comps growth but fell short of expectations due to a weaker-than-expected customer response to its seasonal dress assortment. Athleta remained a sore spot, with comps declining 11% as the brand continued working through legacy inventory and broader turnaround efforts.
Lower Sales Outlook Overshadows Higher EPS GuidanceThe weaker-than-expected performance at Old Navy prompted the company to lower its sales guidance, though it raised its EPS forecast to reflect favorable interest income, tax, and share-count assumptions.
Net sales are now expected to be up 1% to 2% year over year, down from the company's earlier guidance of 2% to 3%. Meanwhile, the company raised its adjusted EPS outlook to $2.30 to $2.40 per share, up from its earlier estimate of $2.20 to $2.35 per share.
The company also expects roughly $80 million in net tariff relief, though it is reserving about half to offset the potential impact of higher fuel costs and the remainder to respond to changes in the promotional and competitive environment.
Gap also issued guidance for the second quarter, expecting net sales to be flat to down 1% over the previous year, with gross margin flat to down 50 basis points.
Gap's Volatile Year Continues Following Earnings ReportInvestors were clearly disappointed with the report, sending shares sharply lower. The move added to what has already been a bumpy year for the stock as investors reacted to developments related to the retailer's turnaround efforts.
The Gap, Inc. (GAP) Price Chart for Friday, June, 12, 2026
Despite the volatile backdrop, investors responded positively to improving results across much of Gap's portfolio early in the year, sending shares to a 52-week high above $29 on Jan. 9. However, the stock tumbled more than 14% following the company's fourth-quarter earnings report in early March after results came in just shy of expectations.
The stock has struggled to regain momentum since then. Ahead of Thursday's report, shares were trading just under $25. Following the sell-off, they are now trading below $21. Over the last three months, shares have fallen roughly 25%, while the stock is down about 18% year to date.
Analysts Remain Optimistic Despite the PullbackWall Street has remained largely optimistic on Gap, though analyst sentiment has been somewhat mixed in recent months, and at least three analysts lowered their price target following the latest earnings report.
The stock carries a Moderate Buy consensus rating. Among the 18 analysts covering the company, 12 rate the stock a Buy, while six have Hold ratings. The average 12-month price target is just under $29, implying more than 35% upside from recent trading levels.
The recent pullback has also lowered Gap's valuation. Shares currently trade at about 10X earnings, below the broader retail industry average P/E ratio of around 17X. The stock's price-to-sales ratio of less than 0.5 is also well below the industry average of approximately 1.1.
Gap trades at a lower earnings multiple than American Eagle Outfitters Inc. NYSE: AEO, which carries a P/E ratio of around 14X, though above Abercrombie & Fitch Co.'s NYSE: ANF multiple of roughly 7X. On a price-to-sales basis, Gap trades slightly above American Eagle and modestly below Abercrombie, which just reported strong Q1 earnings.
Gap's latest quarter offered evidence that its turnaround remains on track, particularly at the namesake Gap brand. However, as it was a second consecutive earnings and revenue miss, combined with a lower sales forecast, the positives were overshadowed. Going forward, investors will be watching whether the challenges at Old Navy prove temporary while monitoring signs that Athleta's turnaround efforts are gaining traction.
Should You Invest $1,000 in GAP Right Now?Before you consider GAP, you'll want to hear this.
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Athleta's expected recovery has been pushed out for three straight years, as an attempt to widen its appeal ended up “appealing to no one in particular.”
LOS ANGELES--(BUSINESS WIRE)--The Schall Law Firm, a national shareholder rights litigation firm, announces that it is investigating claims on behalf of investors of The Gap, Inc. (“Gap” or “the Company”) (NYSE: GAP) for violations of the securities laws.
The investigation focuses on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors. Gap’s Q1 results fell short of consensus estimates in several key segments. The Company stated the year was "not starting out as strongly as we anticipated" on its earnings call on May 28, 2026. The Company also cut its full-year net sales guidance. Based on this news, shares of Gap fell sharply.
If you are a shareholder who suffered a loss, click here to participate.
We also encourage you to contact Brian Schall of the Schall Law Firm, 2049 Century Park East, Suite 2460, Los Angeles, CA 90067, at 310-301-3335, to discuss your rights free of charge. You can also reach us through the firm's website at www.schallfirm.com, or by email at [email protected].
The Schall Law Firm represents investors around the world and specializes in securities class action lawsuits and shareholder rights litigation.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and rules of ethics.
The Schall Law Firm, a national shareholder rights litigation firm, announces that it is investigating claims on behalf of investors of The Gap, Inc. (“Gap” or “the Company”) (NYSE: GAP) for violations of the securities laws.
The investigation focuses on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors. Gap’s Q1 results fell short of consensus estimates in several key segments. The Company stated the year was "not starting out as strongly as we anticipated" on its earnings call on May 28, 2026. The Company also cut its full-year net sales guidance. Based on this news, shares of Gap fell sharply.
If you are a shareholder who suffered a loss, click here to participate.
We also encourage you to contact Brian Schall of the Schall Law Firm, 2049 Century Park East, Suite 2460, Los Angeles, CA 90067, at 310-301-3335, to discuss your rights free of charge. You can also reach us through the firm's website at www.schallfirm.com, or by email at [email protected].
The Schall Law Firm represents investors around the world and specializes in securities class action lawsuits and shareholder rights litigation.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and rules of ethics.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260531916899/en/
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.7% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Gap (GAP - Free Report) With roughly 3,500 stores worldwide, The Gap, Inc. is a premier international specialty retailer offering a diverse range of clothing, accessories, and personal care products. It offers products for men, women, and children under the Old Navy, Gap, Banana Republic and Athleta brands. Moreover, the company’s products include denim, tees, button-downs, khakis, and other trendy assortments as well as fitness and lifestyle products for training, sports, travel, yoga and other activities. Notably, the company offers its products through company-operated stores, franchise stores, websites, third-party arrangements, as well as catalogs. As of Nov. 1, 2025, Gap had around 3,500 stores in more than 35 countries, of which 2,497 were company-operated. Net store closures for fiscal 2025 are likely to be about 35.
GAP is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 9.15; value investors should take notice.
Two analysts revised their earnings estimate upwards in the last 60 days for fiscal 2027. The Zacks Consensus Estimate has increased $0.01 to $2.31 per share. GAP boasts an average earnings surprise of +2%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, GAP should be on investors' short list.
Gap Inc. offers compelling value after a ~15% YTD and ~25% 12-month decline to a single-digit P/E multiple. I reiterate my buy rating on GAP, seeing margin improvement and a fundamental reset despite a disappointing Q1 and lowered top-line guidance. GAP is shifting from heavy discounting to improved supply planning, aiming to reduce inventory gluts and support healthier pricing.
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
For investors, two apparel names currently are providing two very different pitches. When it comes to Gap (NYSE:GAP | GAP Price Prediction) and Lululemon Athletica (NASDAQ:LULU), which one belongs in a retirement-focused portfolio right now?
After running both through the lenses that matter most for income-oriented investors — yield, valuation and risk profile — the answer is more decisive than the brand prestige gap would suggest.
Dimension 1: When It Comes to Yield and Income, Gap Wins Decisively This one is short. Gap pays a quarterly dividend of 17.5 cents per share, raised this year from 16.5 cents, which itself was a step up from the 15-cent quarterly rate paid through 2024. The current annualized payout works out to 67 cents per share, and management just authorized a new $1.0 billion share repurchase, with roughly $599 million still remaining on the program.
Lululemon? No dividend. Capital returns flow exclusively through buybacks, including $1.2 billion repurchased in FY2025. Buybacks are useful, but they do not fund a retiree’s monthly bills. For an income-seeking investor, this dimension is settled before the analysis even begins.
Dimension 2: When It Comes to Valuation, Gap Wins Again Gap trades at a trailing P/E of 8 and a forward P/E of 9, with a price-to-sales of just 0.49. Lululemon, even after a brutal repricing, sits at a trailing P/E of 10 and forward P/E of 10, with price-to-sales near 1.4.
Lululemon is undeniably cheaper than it has been in years. The stock is down 36% year to date and 58% over the past year, currently trading near $128. But cheaper than its own history is not the same as cheap. Gap is the absolute lower-multiple stock, supports the multiple with a dividend, and has analysts pointing to a target of $27.67 against today’s $21.47.
Dimension 3: When It Comes to Volatility and Risk, Gap Wins on Stability Retirees care about drawdowns. Lululemon’s beta of 0.90 looks tame on paper, but the realized volatility tells a different story: a 58% five-year decline alongside an interim co-CEO structure after Calvin McDonald’s departure, 550 basis points of gross margin compression, persistent Americas comp weakness, and FY2026 EPS guidance of $12.10 to $12.30, an implied decline from $13.26.
Gap is moving the other direction. Management just raised the adjusted EPS guide to $2.30 to $2.40, marked a 9th consecutive quarter of positive comparable sales, and runs a stable bench under CEO Richard Dickson. Yes, Athleta remains a drag and online sales slipped 2% year over year, but the Gap brand alone posted a 10% comp in the latest quarter. Dickson framed the capital-return posture plainly: “increasing capital returns to shareholders, reflecting the growing strength of our balance sheet.”
Lululemon’s CEO message reads more defensively. Interim co-CEO Meghan Frank emphasized that “Driving improvement in our full-price sales over the course of 2026 is also a key priority, particularly in North America.” That is a turnaround sentence, not a momentum sentence.
The Verdict For retirement-focused investors, Gap wins, and it is not particularly close. It pays and raises a dividend, trades at a single-digit forward multiple, just raised guidance, and operates with a fortress balance sheet. Three dimensions, three wins.
Lululemon has a place, just not in this portfolio. Growth-oriented investors with a 10-year horizon and a stomach for execution risk get a once-rare entry point into a premium brand with 30% China Mainland comp growth and 17% international revenue growth. That is a different bet for a different investor. The retiree writing checks against this portfolio takes Gap.
, /PRNewswire/ -- The Schall Law Firm, a national shareholder rights litigation firm, announces that it is investigating claims on behalf of investors of The Gap, Inc. ("Gap" or "the Company") (NYSE: GAP) for violations of the securities laws.
The investigation focuses on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors. Gap's Q1 results fell short of consensus estimates in several key segments. The Company stated the year was "not starting out as strongly as we anticipated" on its earnings call on May 28, 2026. The Company also cut its full-year net sales guidance. Based on this news, shares of Gap fell sharply.
If you are a shareholder who suffered a loss, click here to participate.
We also encourage you to contact Brian Schall of the Schall Law Firm, 2049 Century Park East, Suite 2460, Los Angeles, CA 90067, at 310-301-3335, to discuss your rights free of charge. You can also reach us through the firm's website at www.schallfirm.com, or by email at [email protected].
The Schall Law Firm represents investors around the world and specializes in securities class action lawsuits and shareholder rights litigation.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and rules of ethics.
CONTACT:
The Schall Law Firm
Brian Schall, Esq.
310-301-3335
[email protected]
www.schallfirm.com
, /PRNewswire/ -- The Gross Law Firm issues the following notice to shareholders of The Gap, Inc. (NYSE: GAP).
Shareholders who purchased shares of GAP during the class period listed are encouraged to contact the firm regarding possible lead plaintiff appointment. Appointment as lead plaintiff is not required to partake in any recovery.
ALLEGATIONS: The complaint alleges that during the class period, Defendants issued materially false and/or misleading statements and/or failed to disclose that: The Q1 results fell short across key segments. Old Navy, which represents roughly half of Gap's total revenue, delivered comparable sales growth of just 1% -- well below the 3% consensus estimate that matched last year's quarterly performance. Management acknowledged the shortfall on the May 28 earnings call, stating the company was "not starting out as strongly as we anticipated." Athleta's quarter was described by CEO Richard Dickson as "disappointing," with an ongoing inventory-clearance process "taking longer than anticipated" resulting in additional "pressure on sales." As a result, management cut its 2026 full-year net sales guidance. JPMorgan responded on May 29 by downgrading GAP from Overweight to Neutral and slashing its price target from $35 to $27. The analyst action compounded selling pressure that had already driven shares down more than 14% in after-hours trading the prior evening. Trading volume spiked to several times the 30-day average.
DEADLINE: January 1, 2999 Shareholders should not delay in registering for this class action. Register your information here: https://securitiesclasslaw.com/securities/the-gap-inc-loss-submission-form/?id=187549&from=4
NEXT STEPS FOR SHAREHOLDERS: Once you register as a shareholder who purchased shares of GAP during the timeframe listed above, you will be enrolled in a portfolio monitoring software to provide you with status updates throughout the lifecycle of the case. The deadline to seek to be a lead plaintiff is January 1, 2999. There is no cost or obligation to you to participate in this case.
WHY GROSS LAW FIRM? The Gross Law Firm is a nationally recognized class action law firm, and our mission is to protect the rights of all investors who have suffered as a result of deceit, fraud, and illegal business practices. The Gross Law Firm is committed to ensuring that companies adhere to responsible business practices and engage in good corporate citizenship. The firm seeks recovery on behalf of investors who incurred losses when false and/or misleading statements or the omission of material information by a company lead to artificial inflation of the company's stock. Attorney advertising. Prior results do not guarantee similar outcomes.
CONTACT:
The Gross Law Firm
15 West 38th Street, 12th floor
New York, NY, 10018
Email: [email protected]
Phone: (646) 453-8903
NEW YORK, June 09, 2026 (GLOBE NEWSWIRE) -- Pomerantz LLP is investigating claims on behalf of investors of The Gap Inc. (“Gap” or the “Company”) (NYSE: GAP). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.
The investigation concerns whether Gap and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
[Click here for information about joining the class action]
On May 28, 2026, Gap reported its financial results for the first quarter of 2026, including revenue of $3.5 billion, which represented an increase of only 1% year-over-year and fell short of analyst expectations. The results fell short across key segments, including Old Navy and Athleta, and prompted management to cut 2026 full-year net sales guidance.
On this news, Gap’s stock price fell $3.85 per share, or 15.4%, to close at $21.15 per share on May 29, 2026.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.
Attorney advertising. Prior results do not guarantee similar outcomes.
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.7% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Gap (GAP - Free Report) With roughly 3,500 stores worldwide, The Gap, Inc. is a premier international specialty retailer offering a diverse range of clothing, accessories, and personal care products. It offers products for men, women, and children under the Old Navy, Gap, Banana Republic and Athleta brands. Moreover, the company’s products include denim, tees, button-downs, khakis, and other trendy assortments as well as fitness and lifestyle products for training, sports, travel, yoga and other activities. Notably, the company offers its products through company-operated stores, franchise stores, websites, third-party arrangements, as well as catalogs. As of Nov. 1, 2025, Gap had around 3,500 stores in more than 35 countries, of which 2,497 were company-operated. Net store closures for fiscal 2025 are likely to be about 35.
GAP is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
Momentum investors should take note of this Retail-Wholesale stock. GAP has a Momentum Style Score of A, and shares are up 1.2% over the past four weeks.
For fiscal 2027, four analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.02 to $2.32 per share. GAP boasts an average earnings surprise of +2%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, GAP should be on investors' short list.
, /PRNewswire/ -- The Schall Law Firm, a national shareholder rights litigation firm, announces that it is investigating claims on behalf of investors of The Gap, Inc. ("Gap" or "the Company") (NYSE: GAP) for violations of the securities laws.
The investigation focuses on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors. Gap's Q1 results fell short of consensus estimates in several key segments. The Company stated the year was "not starting out as strongly as we anticipated" on its earnings call on May 28, 2026. The Company also cut its full-year net sales guidance. Based on this news, shares of Gap fell sharply.
If you are a shareholder who suffered a loss, click here to participate.
We also encourage you to contact Brian Schall of the Schall Law Firm, 2049 Century Park East, Suite 2460, Los Angeles, CA 90067, at 310-301-3335, to discuss your rights free of charge. You can also reach us through the firm's website at www.schallfirm.com, or by email at [email protected].
The Schall Law Firm represents investors around the world and specializes in securities class action lawsuits and shareholder rights litigation.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and rules of ethics.
CONTACT:
The Schall Law Firm
Brian Schall, Esq.
310-301-3335
[email protected]
www.schallfirm.com
, /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of The Gap Inc. ("Gap" or the "Company") (NYSE: GAP). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.
The investigation concerns whether Gap and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
[Click here for information about joining the class action]
On May 28, 2026, Gap reported its financial results for the first quarter of 2026, including revenue of $3.5 billion, which represented an increase of only 1% year-over-year and fell short of analyst expectations. The results fell short across key segments, including Old Navy and Athleta, and prompted management to cut 2026 full-year net sales guidance.
On this news, Gap's stock price fell $3.85 per share, or 15.4%, to close at $21.15 per share on May 29, 2026.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.
Attorney advertising. Prior results do not guarantee similar outcomes.
Summer is considered peak season for the cruise line industry. Families typically have a summer break from school. The warm ocean waters are that much more inviting.
Carnival Corp. (CCL +3.61%) knows all about the waves. Nearly a third of its annual revenue and most of its fiscal 2025 profit were generated in the fiscal third quarter, which starts again next week.
Carnival stock has risen 21% over the past year, outpacing its two closest publicly traded rivals. This isn't a regatta, but bragging rights are cool. I think things can get better for Carnival from here.
Let's go over three reasons to consider going on this Carnival ride.
Image source: Getty Images.
1. It's an earnings sensation June is usually a quiet time for financial updates, but with its fiscal second quarter ending this week, Carnival will announce its latest results in late June. Carnival's stock has risen enough to attract attention, but not enough to fear a sell-off even if results are decent.
If recent history is any indication, the fresh numbers should be decent. Expectations are low. Analysts see revenue rising 6% while earnings growth remains flat. The $0.34-a-share profit that Carnival is expected to deliver in four weeks is just below the $0.35 a share it served up a year earlier.
Rising fuel and food costs should weigh on margins, but Carnival has an ace up its sleeve. It has consistently trounced quarterly bottom-line expectations for almost three years.
This isn't just a streak of 11 straight positive earnings surprises. The beats have come in at least 9% above Wall Street pros' models. What's more likely to happen, stretching this run to 12 in June or imploding under the whirlpool of inflation rising and consumer confidence taking on water? I like Carnival's chances to go for an even dozen beats in June.
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2. The value gap is real Carnival is the largest cruise line by trailing revenue, but it doesn't wear the market cap crown. That regal accessory belongs -- fittingly enough -- to Royal Caribbean (RCL +2.23%).
Carnival's market capitalization is just shy of $39 billion, about half Royal Caribbean's $76 billion market cap. Zoom out to enterprise value to account for each cruise line operator's net debt, and Royal Caribbean still leads, $97 billion to $64 billion.
The valuation disparity grows even more interesting when you consider that Carnival's trailing revenue of $27 billion is well above Royal Caribbean's top line of $18.4 billion. As a Royal Caribbean investor, I'll point out that there are good reasons for the valuation premium. Royal Caribbean has historically grown faster and delivered healthier margins. However, Carnival is starting to get its act together.
Earlier this year, Carnival reinstated its dividend. Its board authorized $2.5 billion in stock repurchases. These are moves for a company that has figured it out and is ready to return money to its shareholders. It could close the valuation gap if it maintains its recent bullish momentum.
3. It's not just the inside cabins that are cheap The third and perhaps best reason to buy Carnival in June is that it's a cheap stock in a largely overvalued market. The stock is trading for a reasonable 13 times this fiscal year's earnings estimate and only 11 times next year's bottom-line forecast.
A lot can go wrong for the industry as a whole and for Carnival in particular. However, bookings remain strong for Carnival's future sailings. Like a pool deck after a limbo party comes to an end, this story is no longer about how low it can go.
Carnival has stabilized after a strong rally, with shares flat since August amid solid fundamentals and macro headwinds. Carnival reported strong Q1 2026 results: 6% revenue growth, 11% operating earnings growth, and adjusted EPS up to $0.20, despite higher share count. 85% of 2026 capacity is already sold, dividend reinstated at $0.15 per quarter, and further deleveraging is underway, though growth is slowing.
From May 28 to June 28, 2026, users who complete designated contract trading tasks will have the chance to unlock premium hospitality experiences for select group-stage, semi-final, and final matches, while also participating in a share of the $300,000 total prize pool. Rewards include USDT bonuses, travel subsidies, trial funds, BTC position-opening vouchers, and more.
VICTORIA, Seychelles, June 01, 2026 (GLOBE NEWSWIRE) -- As the global football fever of 2026 continues to build, global digital asset trading platform ZOOMEX has officially launched its “Win a Trip to the World Cup!” campaign. Centered around a $300,000 total prize pool and premium World Cup hospitality experiences, the campaign invites users worldwide to take part in an annual celebration created for both traders and football fans.
During the campaign period, users who complete designated contract trading tasks will have the chance to participate in a share of the $300,000 total prize pool, while unlocking multiple rewards including USDT bonuses, trial funds, BTC position-opening vouchers, deduction vouchers, travel subsidies, and premium matchday travel support. Selected hospitality experiences will cover on-site experiences related to designated group-stage, semi-final, and final matches, including viewing seats, matchday hospitality, and travel support. Specific reward details, quotas, match arrangements, and distribution rules are subject to the official ZOOMEX campaign page.
The ZOOMEX World Cup trading campaign will run from May 28 to June 28, 2026, with a total prize pool of up to $300,000. During the campaign, users who complete designated contract trading volumes will have the chance to unlock major rewards, including World Cup group stage tickets, semi-final VIP tickets, and World Cup final VIP tickets. Users may also redeem high-value USDT cash rewards, travel subsidies, flight subsidies, and hotel subsidies in accordance with the official campaign rules.
During the campaign period, users who complete designated contract trading tasks will have the chance to participate in a share of the $300,000 total prize pool, while unlocking multiple rewards including USDT bonuses, trial funds, BTC position-opening vouchers, deduction vouchers, travel subsidies, and premium matchday travel support. Selected hospitality experiences will cover on-site experiences related to designated group-stage, semi-final, and final matches, including viewing seats, matchday hospitality, and travel support. Specific reward details, quotas, match arrangements, and distribution rules are subject to the official ZOOMEX campaign page.
The campaign will run from May 28 to June 28, 2026. As the core mechanism of the campaign, ZOOMEX combines the global excitement of football with platform trading tasks, offering users across different tiers a more engaging and rewarding participation experience. During the campaign, users who complete designated contract trading volumes will have the chance to unlock corresponding reward tiers, including premium hospitality experiences, USDT cash rewards, exclusive travel subsidies, flight and hotel subsidies, and other benefits.
According to the campaign rules, users who complete the required trading tasks may have the chance to receive premium hospitality experiences related to designated group-stage matches and redeem up to 1,500 USDT. Users who complete higher-tier trading tasks may unlock premium hospitality experiences related to semi-final matches, with the opportunity to redeem up to 5,000 USDT plus travel subsidies. Higher-tier rewards will also cover premium hospitality experiences related to the final match, with users able to redeem up to 8,000 USDT and receive exclusive flight and hotel subsidy support.
In addition to premium hospitality experiences, ZOOMEX has also prepared exclusive deposit benefits for new users. During the campaign period, new users who make their first deposit can participate in dedicated reward programs, with the chance to receive up to $200 in trial funds and a $300 BTC position-opening voucher. The higher the deposit amount, the more reward benefits users may unlock, providing stronger incentives for new users to explore the platform and experience contract trading.
At the same time, ZOOMEX has introduced multi-tier trading task rewards. Users who complete designated trading tasks during the campaign period will be eligible to participate in a share of the $300,000 total prize pool. Rewards include USDT airdrops, trial funds, BTC position-opening vouchers, deduction vouchers, and other benefits. All rewards are available in limited quantities and will be distributed on a first-come, first-served basis according to the campaign rules, further enhancing user participation and campaign momentum.
A ZOOMEX brand representative stated that global football events are not only a celebration for fans, but also an important opportunity for brands to build stronger emotional connections with users. Through this football trading carnival, ZOOMEX aims to combine trading tasks, premium hospitality experiences, and global sports excitement to deliver a more engaging and memorable platform campaign experience. ZOOMEX will continue to focus on user needs and launch more brand campaigns that combine entertainment, interactivity, and reward value, further improving the trading experience for users worldwide.
As the global football fever of 2026 continues to rise, the integration of sports marketing and digital asset trading experiences is becoming an important way for brands to expand visibility and strengthen user engagement. By using football as a key theme, ZOOMEX is offering premium hospitality experiences, USDT rewards, travel subsidies, and new user benefits to further enhance brand recognition among global users and inject more excitement and participation into digital asset trading activities throughout the 2026 football season.
The ZOOMEX World Cup Trading Carnival is now officially live. Join the campaign today and unlock your own World Cup glory moment with ZOOMEX.
Disclaimer: This campaign is independently launched by ZOOMEX and is not sponsored, endorsed, administered, or organized in cooperation with any relevant international football event organizer, rights holder, or their affiliates. ZOOMEX is not an official sponsor, official partner, official ticketing agent, or official hospitality sales agent of any relevant event. Premium hospitality experiences, travel subsidies, and related rewards involved in this campaign are subject to the official ZOOMEX campaign rules.
About Zoomex
Founded in 2021, Zoomex is a global cryptocurrency trading platform with over 3 million users across more than 35 countries and regions, offering 600+ trading pairs. Guided by its core values of “Simple × User-Friendly × Fast,” Zoomex is also committed to the principles of fairness, integrity, and transparency, delivering a high-performance, low-barrier, and trustworthy trading experience.
Powered by a high-performance matching engine and transparent asset and order displays, Zoomex ensures consistent trade execution and fully traceable results. This approach reduces information asymmetry and allows users to clearly understand their asset status and every trading outcome. While prioritizing speed and efficiency, the platform continues to optimize product structure and overall user experience with robust risk management in place.
As an official partner of the Haas F1 Team, Zoomex brings the same focus on speed, precision, and reliable rule execution from the racetrack to trading. In addition, Zoomex has established a global exclusive brand ambassador partnership with world-class goalkeeper Emiliano Martínez. His professionalism, discipline, and consistency further reinforce Zoomex’s commitment to fair trading and long-term user trust.
In terms of security and compliance, Zoomex holds regulatory licenses including Canada MSB, U.S. MSB, U.S. NFA, and Australia AUSTRAC, and has successfully passed security audits conducted by blockchain security firm Hacken. Operating within a compliant framework while offering flexible identity verification options and an open trading system, Zoomex is building a trading environment that is simpler, more transparent, more secure, and more accessible for users worldwide.
Disclaimer: This sponsored content is provided by the content provider and does not necessarily reflect the views of this media platform or its publisher. The information is shared for general informational purposes only and should not be considered financial, investment, or trading advice. Cryptocurrency and mining-related activities carry risks, including the potential loss of capital, and readers are encouraged to conduct their own research and seek professional advice where appropriate. Speculate only with funds that you can afford to lose.The media platform and publisher assume no responsibility for any losses or claims arising from reliance on this content. GlobeNewswire does not endorse any content on this page.
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A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/cb9a9070-8ab4-44e1-b7a3-f34074973b39
Carnival Jubilee becomes first cruise ship to refuel with LNG at Isla Tropicale in Roatán, advancing the company's overall decarbonization strategy
, /PRNewswire/ -- Marking a cruise industry first, Carnival Corporation (NYSE: CCL), the world's largest cruise company, collaborated with government and industry partners to introduce Liquefied Natural Gas (LNG) bunkering to Latin America and the Western Caribbean, using a mobile LNG fueling solution to refuel Carnival Cruise Line's Carnival Jubilee at Isla Tropicale in Roatán, Honduras.
The operation brings a new maritime fueling capability to the region and reinforces Roatán's growing role within Carnival Corporation's Caribbean operations, positioning Isla Tropicale along key Western Caribbean itineraries. Roatán's location allows LNG-capable ships to refuel with minimal disruption to their routes, helping optimize schedules and voyage planning.
The achievement also supports Carnival Corporation's broader decarbonization strategy, with LNG serving as one of several tools to reduce its emissions footprint while pursuing net zero greenhouse gas emissions from ship operations by 2050.
"This milestone reflects the collaboration and operational planning taking place worldwide within our organization to expand LNG bunkering across our global fleet," said Michael McNamara, vice president, strategic sourcing – fuel, for Carnival Corporation. "Bringing this capability to Latin America and the Western Caribbean supports key itineraries in the region while advancing our broader strategy to reduce emissions. We are grateful to President Asfura, government leaders and local partners for helping make this milestone possible."
"LNG bunkering in Roatán reflects the important role Honduras can play in the future of maritime energy in the Western Caribbean," said Miguel Ángel Gámez, Director General of Hydrocarbons and Biofuels. "This achievement and milestone strengthens Roatán's position as a strategic destination, supports Honduras' broader energy and economic development priorities and demonstrates the value of public-private collaboration. It is also an important step forward toward a cleaner, more affordable and more resilient national energy matrix."
LNG is currently one of the most readily available, proven and commercially scalable lower-emission fuels for the maritime industry – reducing direct carbon emissions by up to 20% and almost fully avoiding emissions of nitrogen oxides, sulfur oxides and particulate matter. Carnival Corporation pioneered LNG use in the cruise industry in 2018 and now leads the industry with 11 LNG-capable cruise ships in operation. By the end of 2033, the company expects seven additional LNG-capable ships to join the fleet.
Beyond this LNG milestone, Carnival Corporation's investments in Roatán reflect a broader commitment to strengthening destinations through environmental stewardship, local partnerships and long-term economic impact.
The beach at Isla Tropicale earned the Honduras Blue Flag Award in 2024 and 2025, receiving one of only two five-star ratings awarded in Honduras for meeting high standards in environmental management, water quality, safety, accessibility and sustainable tourism. This recognition supports Carnival Corporation's deep commitment to leading the way in sustainable cruising by promoting positive climate action to preserve natural resources and local ecosystems.
Since opening in 2009, Carnival Corporation has invested $93 million in Isla Tropicale, which has welcomed close to 9 million visitors and generated approximately $750 million in economic impact for Roatán. The destination supports more than 1,300 local jobs, benefiting vendors, tour operators, transportation providers and others tied to its operations.
This release may include claims related to our greenhouse gas emissions reductions, goals, initiatives, accomplishments and progress reports. Supporting data for such greenhouse gas emissions claims, including data verification information, is published in our Sustainability Reports on carnivalcorp.com/impact on an annual basis.
About Carnival Corporation
Carnival Corporation is the largest global cruise company and among the largest leisure travel companies, with a portfolio of world-class cruise lines – AIDA Cruises, Carnival Cruise Line, Costa Cruises, Cunard, Holland America Line, P&O Cruises, Princess Cruises, and Seabourn. Carnival Corporation Ltd. trades under the ticker symbol CCL on the NYSE and is a member of the S&P 500.
For more information, please visit www.carnivalcorp.com, www.csmartalmere.com, www.aida.de, www.carnival.com, www.costacruises.com, www.cunard.com, www.hollandamerica.com, www.pocruises.com, www.princess.com, and www.seabourn.com.
To learn more about Carnival Corporation's purpose and our commitment to sustainability, go to Our Impact.
In the latest close session, Carnival (CCL - Free Report) was down 1.96% at $27.51. The stock's change was less than the S&P 500's daily gain of 0.26%. Meanwhile, the Dow experienced a rise of 0.09%, and the technology-dominated Nasdaq saw an increase of 0.42%.
Shares of the cruise operator witnessed a gain of 5.25% over the previous month, beating the performance of the Consumer Discretionary sector with its gain of 0.17%, and underperforming the S&P 500's gain of 6.32%.
The upcoming earnings release of Carnival will be of great interest to investors. In that report, analysts expect Carnival to post earnings of $0.34 per share. This would mark a year-over-year decline of 2.86%. In the meantime, our current consensus estimate forecasts the revenue to be $6.63 billion, indicating a 4.72% growth compared to the corresponding quarter of the prior year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.24 per share and a revenue of $27.83 billion, signifying shifts of -0.44% and +4.54%, respectively, from the last year.
Investors should also note any recent changes to analyst estimates for Carnival. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been a 0.97% fall in the Zacks Consensus EPS estimate. Currently, Carnival is carrying a Zacks Rank of #3 (Hold).
From a valuation perspective, Carnival is currently exchanging hands at a Forward P/E ratio of 12.52. This represents a discount compared to its industry average Forward P/E of 16.5.
Investors should also note that CCL has a PEG ratio of 1.23 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. CCL's industry had an average PEG ratio of 1.33 as of yesterday's close.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 194, placing it within the bottom 21% of over 250 industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
291 Departures Across 150 Itineraries include new Ireland calls, overnight stays and the debut of a Pole-to-Pole Odyssey voyage
, /PRNewswire/ -- Princess Cruises unveils its most expansive Europe season for 2028, with 291 departures across 150 unique itineraries aboard six ships sailing throughout Northern Europe, the Mediterranean and on Transatlantic voyages.
Princess Cruises Announces Largest- Ever Europe Season for 2028 Now on sale, the season includes seven- to 53-day sailings, visiting 128 destinations in 37 countries, access to 101 UNESCO World Heritage Sites, and 32 late-night or overnight stays designed to give travelers more time ashore. Early booking bonuses are available June 2 through October 12, 2026, featuring up to $500 instant savings, a stateroom location upgrade, up to $500 onboard credit, early access to dining reservations, reduced $100 deposits and early access to arrival groups, plus extra savings for Captain's Circle members.
New for the season are Princess' first calls to Galway and Killybegs, Ireland, as well as the debut of the new Pole-to-Pole Odyssey, and extended voyage linking Antarctica and the Arctic.
"At Princess, we continue to see strong interest in Europe itineraries that offer both iconic destinations and more time for meaningful experiences ashore," said Jim Berra, Princess Cruises Chief Commercial Officer. "Our 2028 Europe season gives guests the broadest range of Europe options we've ever offered, including new calls in Ireland, more opportunities for immersive cultural experiences, and the introduction of our 53-day Pole-to-Pole Odyssey."
What's New for Europe 2028
The 2028 season represents the largest Europe deployment in Princess history, and includes:
291 departures across 150 itineraries. 128 destinations in 37 countries Six ships sailing from 13 departure ports - Caribbean Princess, Enchanted Princess, Majestic Princess, Regal Princess, Sky Princess and Sun Princess Maiden calls to Galway and Killybegs, bringing guests to Ireland's rugged and culturally rich western coast for the first time. The debut of the Pole-to-Pole Odyssey, a true epic Europe experience that links Antarctica and the Arctic in one unforgettable voyage showcasing dramatic landscapes, diverse cultures and once-in-a-lifetime exploration. Access to 101 UNESCO World Heritage Sites and 32 late-night and overnight stays that allow for deeper, more authentic connections ashore. Culture, Immersion & Local Connection
Princess' Europe itineraries go beyond traditional sightseeing, emphasizing authentic cultural immersion through Princess Local Connections and elevated "Ultimate" shore excursions. Guests can engage directly with local people, traditions and cuisine through experiences designed with regional experts and backed by Princess Cruises' Guaranteed Return to Ship promise.
Longer port days, late nights and overnight stays offer more time to experience destinations after dark, when local culture is at its most vibrant. Signature experiences include pasta making with an Italian family, exploring Indigenous Sami traditions in Arctic Norway, artisan workshops at Royal Delft in the Netherlands, and expertly guided access to iconic landmarks such as Mont Saint-Michel and ancient Athens.
Northern Europe - Immersive, Unexpected Europe
Princess' Northern Europe itineraries focus on smaller ports, dramatic landscapes and authentic cultural connection, creating experiences that feel more personal and less commercialized. Highlights include:
Standing before Norway's breathtaking fjords, discovering Ireland's rugged west coast through maiden calls to Galway and Killybegs, and experiencing cultures shaped by centuries of maritime heritage and regional tradition. Late-night and overnight stays are featured in destinations including Stockholm, Hamburg, Tromsø (located in Northern Norway and often referred to as the "Gateway to the Arctic"), Amsterdam, Copenhagen, Belfast and Reykjavik, allowing guests to experience these cities beyond the daytime hours. Mediterranean - The Europe Guests Have Always Imagined
Princess' Mediterranean voyages combine Europe's most iconic destinations with immersive local experiences that go beyond postcard moments, including:
Exploring ancient ruins in Athens, Pompeii and Ephesus before discovering the energy and charm of cities such as Barcelona, Lisbon, Dubrovnik and Florence, where history and modern life come together in unforgettable ways. The season also features a strong lineup of late-night and overnight stays in dynamic ports including Istanbul, Mykonos, Ibiza, Valletta, Split, Lisbon and La Spezia (Florence/Pisa). Transatlantic Voyages- The Journey Is Part of the Experience
Princess' Transatlantic voyages are positioned as a relaxed and seamless alternative to flying, transforming long-haul travel into part of the vacation itself. These sailings connect Europe with North and South America while allowing guests to settle into the journey at a slower, more enjoyable pace. Routes feature calls to destinations including the Canary Islands, Madeira, the Azores, Bermuda and Morocco, and the new Pole to Pole Odyssey.
Even Easier to Get There
Guests can also simplify their travel planning through Princess EZair, which offers competitive airfare, 24/7 support and flexible options including the ability to book now and pay later, providing peace of mind from takeoff to touchdown.
Book a Princess Cruise Vacation to Europe
Additional information about Princess Cruises is available through a professional travel advisor, by calling 1-800-PRINCESS (1-800-774-6237), or by visiting princess.com.
About Princess Cruises:
Princess Cruises is The Love Boat, the world's most iconic cruise brand that delivers dream vacations to millions of guests every year in the most sought-after destinations on the largest ships that offer elite service personalisation and simplicity customary of small, yacht-class ships. Well-appointed staterooms, world class dining, grand performances, award-winning casinos and entertainment, luxurious spas, imaginative experiences and boundless activities blend with exclusive Princess MedallionClass service to create meaningful connections and unforgettable moments in the most incredible settings in the world - the Caribbean, Alaska, Panama Canal, Mexican Riviera, Europe, South America, Australia/New Zealand, the South Pacific, Hawaii, Asia, Canada/New England, Antarctica, and World Cruises. Star Princess, the brand's newest and most innovative ship, launched October 2025, and sister ship to Sun Princess, named Condé Nast Traveler Mega Ship of the Year for a second consecutive year. The company is part of Carnival Corporation, the world's largest cruise company with a portfolio of cruise lines operating in over 800 ports & destinations worldwide (NYSE: CCL).
If you’ve ever cruised on a Carnival ship, your personal information might have been exposed in a recent hack.
The accessed data included personal information from customers, such as their name, address, email address, phone number, date of birth, and ID information (e.g., passport or driver’s license number).
According to a notice published by the company on May 27, Carnival’s IT department first became aware of unidentified access to a “limited portion” of the company’s IT system on April 14. The data is said to have been accessed through an act of social engineering, a form of cyberattack in which bad actors manipulate an individual into granting access to systems or information.
“The company acted swiftly to block the unauthorized activity and immediately began working with third-party security experts to further strengthen its security and to conduct a thorough investigation,” the company stated in the notice. “As part of this investigation, the company determined the bad actor illegally accessed certain personal information.”
Carnival began notifying affected individuals by email starting May 27, offering individuals a two-year complimentary subscription for TransUnion credit monitoring. The email included details for a dedicated call center that TransUnion set up to help individuals with enrollment.
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Individuals who think they might be affected may also call the TransUnion call center at 844-593-8310, from 8 a.m. to 8 p.m. ET, Monday through Friday, excluding major U.S. holidays.
In addition to these services, the company advises individuals to remain vigilant for fraud or identity theft and to notify the police if they suspect either.
The company is also taking next steps for the future.
“In addition to the comprehensive security measures the company had in place prior to the incident, it has taken steps to further safeguard its systems, including enhancing its security and monitoring controls,” Carnival said. “The company will continue to advance its IT security and data privacy controls to stay ahead of an ever-evolving threat landscape.”
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ABOUT THE AUTHOR
María José Gutierrez Chavez is a trending news writer for Fast Company. She was previously the editorial fellow at Inc More
The cruise industry has sailed back to full strength, but choosing between Royal Caribbean Cruises (RCL +2.23%) and Carnival Corporation (CCL +3.61%) requires a look at their different financial trajectories.
Royal Caribbean focuses on a mix of high-end and family-oriented experiences to drive its net margin. Meanwhile, Carnival operates the industry's largest fleet, using its massive scale to capture a wide breadth of travelers. Both companies are vying for dominance as consumer spending on experiences remains a top priority.
Royal Caribbean Cruises operates an enormous global vacation business through brands such as Royal Caribbean International, Celebrity Cruises, and Silversea. These brands allow the company to target a wide range of travelers, from families looking for adventure to high-end luxury seekers.
By maintaining a fleet of nearly 70 ships and employing close to 100,000 people, the company covers every major cruise market worldwide. Its 50% joint venture in TUI Cruises further extends its reach into European markets.
In its 2025 fiscal year (FY), revenue reached $17.9 billion, representing growth of 8.8% compared to the prior year. This expansion helped drive a net income of $4.3 billion for the period, resulting in a net margin of 23.8%. The results show a clear upward trajectory when compared to the $2.9 billion in net income recorded during 2024. This growth is supported by strong demand across both contemporary and luxury segments.
As of its December 2025 balance sheet, the debt-to-equity ratio is 2.3x, which means total debt is more than double the company's equity. The current ratio, which measures a company's ability to pay short-term obligations with short-term assets, sits at roughly 0.2x. A ratio below 1.0 indicates that short-term liabilities exceed short-term assets, a common situation in this industry. Free cash flow, or the cash left over after paying for operations and equipment, reached $1.2 billion.
The case for Carnival CorporationCarnival operates as the world's largest leisure travel company with a portfolio of nine distinct cruise brands including Princess, Holland America, and Cunard. The company manages a global fleet of more than 90 ships that visit over 800 destinations annually. This substantial scale is a primary differentiator among travel and tourism stocks, allowing it to capture diverse customer segments. The company visits over 800 ports, ensuring its brands like AIDA and Costa remain household names across diverse continents.
For FY 2025, the company reported revenue of $26.6 billion, a growth rate of 6.4% year over year. Net income for the fiscal year reached close to $2.8 billion, a significant improvement from the previous year when the net margin was 7.7%.
This performance continues a recovery trend from 2023 when the company reported a net loss. The increased revenue is primarily driven by higher passenger ticket prices and increased onboard spending.
Based on its November 2025 balance sheet, the debt-to-equity ratio is 2.3x, indicating that total debt is more than twice the value of shareholder equity. The current ratio, a measure of how easily a firm can cover its immediate bills, is approximately 0.3x. This reflects a structure where customer deposits often sit on the balance sheet as liabilities until the cruise is completed. Free cash flow for the year was $2.6 billion, providing substantial capital for reinvestment or debt reduction.
Risk profile comparisonRoyal Caribbean faces significant risks from cybersecurity threats that could compromise its maritime operations or sensitive guest data. Geopolitical tensions or disease outbreaks can also lead to sudden drops in travel demand or expensive itinerary changes. Furthermore, the company relies on a small number of shipyards for new-build programs and repairs, which can lead to delays or higher costs. Increasing environmental regulations related to carbon emissions also present long term cost pressures for the entire fleet.
Carnival must navigate risks associated with fluctuating fuel prices, which can directly impact its operating expenses. Frequent weather events like hurricanes also pose threats to ship safety and scheduled port visits, potentially leading to cancellations. The company competes for vacation spending against other major players like Norwegian Cruise Line. Additionally, the company is susceptible to supply chain disruptions and the difficulty of recruiting a large, qualified global workforce.
Valuation comparisonCarnival appears to be the more value-oriented choice as it trades at a lower multiple of future earnings estimates and revenue.
MetricRoyal Caribbean CruisesCarnival Corporation &Sector BenchmarkForward P/E16.1x11.8x31.2xP/S ratio4.3x1.5xSector benchmark uses the SPDR XLY sector ETF. Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.
Which stock would I buy in 2026?Royal Caribbean Cruises and Carnival Corporation are both solid choices to provide investors with exposure to the cruise industry, although they are likely to be more appealing to income-oriented investors given their dividends. As of June 3, Carnival’s dividend yield is 1.1%, while Royal Caribbean sports a higher yield of 1.7%.
Both are seeing rising revenue and produce plenty of free cash flow to pay for their dividends. However, Royal Caribbean stock fell to a 52-week low of $232.10 on May 20 after the company shared cruises in the second quarter are exposed to higher risk of impact from global events.
Carnival stock boasts the better valuation. This suggests Royal Caribbean shares are pricey in comparison. In fact, Carnival announced a $2.5 billion stock buyback program, indicating it believes its stock is a good value right now.
I like both stocks, so I picked up shares of each some time ago. For those seeking to pick up shares now, Carnival’s lower valuation makes it the better buy.
Updates across suites, dining, and gathering spaces reflect the most comprehensive drydock in the line's history
, /PRNewswire/ -- Seabourn's award-winning Seabourn Quest has emerged from drydock with the most comprehensive interior update in the line's history. Enhancements across suites, public spaces, dining venues and the spa create a more relaxed and refined onboard experience, further elevating the sense of comfort and understated luxury guests know and value.
The ship will continue its Mediterranean season through November 2026, and sail a series of immersive seven-day voyages between Dubrovnik, Fusina (Venice), Istanbul and Athens, calling on yacht harbors and islands in Croatia, Greece, Montenegro and Turkey. Each voyage can be combined to create 14- and 21-day sailings.
"This drydock represents an investment that reflects our unwavering focus on elevating every aspect of the guest experience," said Mark Tamis, president of Seabourn. "Seabourn Quest has always had a loyal following, and we wanted to enhance the spaces where our guests spend their time on board, from the feel of their suite to the atmosphere of The Club in the evening, to ensure they have the best experience at sea when they sail on this beautiful ship."
Reimagined Public Spaces
The Club underwent one of the most significant transformations on board, with a sophisticated, speakeasy-inspired ambiance, reconfigured layout, updated bar design and new lighting that reshape how the space is experienced throughout the evening.
The redesigned layout creates a more cohesive atmosphere for live music and social gatherings, while also improving the flow across the venue, allowing guests to move naturally between the bar, lounge seating and dance floor.
Across the rest of ship, public areas have been updated to enhance flow and atmosphere, making it easier for guests to move naturally through the ship, settle in, and enjoy each part of the day. The atrium, corridors and stairways received new carpeting, featuring patterns inspired by the organic movement of water. The main pool deck debuts with all new sound system and lighting, surrounded by renewed teak deck.
Seabourn Square now features a warmer, living room atmosphere including new furniture and limited bistro-style seating. The Observation Bar received a refresh with updated carpet and furnishings, creating a brighter, more relaxed setting for panoramic views. The Spa was enhanced with a redesigned reception area, all new gym equipment and updated salon, including new finishes, lighting and furnishings, creating a more serene, calming environment that deepens the sense of relaxation and well-being.
The onboard shops were also enhanced with updated finishes, lighting and display elements, offering a more inviting atmosphere for guests to browse and discover curated pieces. These updates align with recent upgrades across the Seabourn ocean fleet.
Enhanced Dining Venues
The Colonnade was refreshed with new flooring, carpeting, seating and an updated service line to highlight live cooking. In The Restaurant, new carpet and drapery introduce a lighter and more modern look, enhancing the overall ambiance while preserving the venue's refined feel.
Refreshed Suites and Accommodations
Suites across all categories received new mattresses and plush new wool carpeting, while Penthouse and premium suites also received updated veranda furniture, creating a more inviting space to relax and take in the view.
Design Approach
Together, these updates reflect an evolved design approach that brings a more residential and personal feel to Seabourn Quest. Drawing from the textures and tones of the places Seabourn explores, the interiors incorporate layered materials and finishes that create a cohesive environment and improve the way guests move through and experience each space.
"Our goal was to create spaces that feel natural, intuitive and effortlessly comfortable for guests," said Linh Nguyen, Senior Manager, Interior Design & Assets Management. "Rather than referencing a single destination, the design takes a broader approach, using materiality and scale to shape spaces that feel balanced, familiar and easy to experience."
Incorporating Sustainable Practices
Alongside elevated design updates, meaningful steps were taken to reduce waste and extend the life of materials on board. More than 20,000 square meters (approx. 215,000 square feet) of carpet were replaced. All original carpet was diverted from landfill and is planned to be repurposed into new carpet padding that the shipyard will reintegrate on board for a future Seabourn renovation. Updated suites now feature biodegradable Cradle to Cradle Dansk Wilton wool carpet to further support a closed-loop lifecycle approach. In addition, all mattresses were deconstructed for recycling by the shipyard, while lounge furnishings were donated to local Italian non-profit organization, extending the life of these materials, redirecting them from landfill disposal, and benefitting surrounding communities.
An Ongoing Investment in the Fleet
The 2026 drydock builds on previous enhancement cycles and represents the most comprehensive interior investment in Seabourn's history. The scope of work also included updates to crew areas, amenities and accommodations, supporting the onboard team that delivers the personalized service at the heart of the Seabourn experience.
For guests looking to experience these updates aboard Seabourn Quest, Seabourn's Exploration Event offers savings of up to 15 percent on select summer ocean and expedition voyages. Seabourn is also offering up to $1,000 in shipboard credit per suite on select winter voyages.
For more details about Seabourn, contact a professional travel advisor, call 1-800-929-9391 or visit www.seabourn.com.
About Seabourn:
Seabourn represents the pinnacle of luxury ocean and expedition travel and operates a suite of five modern ships. The all-inclusive, boutique ships offer all-suite accommodations with oceanfront views; award-winning dining; complimentary premium spirits and fine wines available at all times; renowned service provided by an industry-leading crew; a relaxed, sociable atmosphere that makes guests feel at home; a pedigree in expedition travel through the Ventures by Seabourn program and two luxury purpose-built expedition ships, including Seabourn Venture that launched in 2022 and Seabourn Pursuit in 2023. Seabourn takes travelers to every continent on the globe, visiting more than 400 ports including marquee cities and lesser-known ports and hideaways. Guests of Seabourn experience extraordinary offerings and programs, including partnerships with leading entertainers, dining, personal health and wellbeing, and engaging speakers.
Seabourn is part of Carnival Corporation, the world's largest cruise company with a portfolio of cruise lines operating in over 800 ports & destinations worldwide. (NYSE: CCL).
Find Seabourn on X, Facebook, Instagram, YouTube and Pinterest.
In the latest close session, Carnival (CCL - Free Report) was down 1.46% at $27.01. This move lagged the S&P 500's daily gain of 0.3%. Elsewhere, the Dow lost 0.16%, while the tech-heavy Nasdaq added 0.86%.
The cruise operator's stock has climbed by 3.9% in the past month, exceeding the Consumer Discretionary sector's loss of 0.12% and the S&P 500's gain of 1.92%.
Investors will be eagerly watching for the performance of Carnival in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.34, showcasing a 2.86% downward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.63 billion, up 4.72% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.21 per share and revenue of $27.83 billion. These totals would mark changes of -1.78% and +4.54%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Carnival. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.97% lower within the past month. At present, Carnival boasts a Zacks Rank of #3 (Hold).
Looking at valuation, Carnival is presently trading at a Forward P/E ratio of 12.4. This signifies a discount in comparison to the average Forward P/E of 15.82 for its industry.
It's also important to note that CCL currently trades at a PEG ratio of 1.22. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Leisure and Recreation Services was holding an average PEG ratio of 1.3 at yesterday's closing price.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 186, this industry ranks in the bottom 24% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow CCL in the coming trading sessions, be sure to utilize Zacks.com.
World-class travel leader delivers top technology to casino guests
LAS VEGAS--(BUSINESS WIRE)--Konami Gaming, Inc. announced it has successfully installed its SYNKROS® casino management system on a second cruise line in the world’s largest cruise company Carnival Corporation’s (NYSE: CCL) portfolio. Building on the success of its systems installed across Holland America Line, the company has outfitted all 29 Carnival Cruise Line ships with its award-winning system. Leveraging SYNKROS, known internally under the acronym “SURF” for “Serving Up Rewards and Fun”, guests across the Carnival Cruise Line fleet can now tap into personalized rewards, offers, bonuses and cashless wagering in the onboard casinos.
“Konami is committed to serving Carnival Corporation’s existing SYNKROS install base with trust and reliability, while partnering collaboratively through ongoing expansion fleetwide.”
Share “We're obsessed with giving guests the best time possible with great service, standout rewards and innovation that raises the fun factor even higher, so it’s been fantastic to roll out SURF across the entire Carnival Cruise Line fleet and make the guest experience even more rewarding,” said Marty Goldman, SVP Global Gaming at Carnival Corporation. “We look forward to bringing these exciting gaming experiences to millions more, as SURF continues to expand across Carnival Corporation’s world-class portfolio.”
Guests on Carnival Cruise Line now have access to an array of top conveniences and fun experiences spanning thousands of gaming machines and powered by Konami’s SYNKROS technology. Rewards, offers and bonuses are tailored to the player, reflecting gaming preferences and featuring cruise-specific elements such as seamless cashless folio integration. Leveraging top SYNKROS advancements, Carnival Corporation also delivers rewarding bonus opportunities, including the chance to take top honors in virtual prize drawings.
“Carnival Corporation continues to innovate the guest experience in every detail of the journey, demonstrated in exciting new ways across the combined 40 onboard casinos of Carnival Cruise Line and Holland America Line now live with top SYNKROS technology,” said Tom Jingoli, president & chief operating officer at Konami Gaming, Inc. “Konami is committed to serving Carnival Corporation’s existing SYNKROS install base with trust and reliability, while partnering collaboratively through ongoing expansion fleetwide.”
Carnival Corporation is slated to continue rolling SYNKROS enterprise-wide, including to its full portfolio of world-class cruise lines. Those interested in learning more about SYNKROS’ award-winning product suite are encouraged to visit www.konamigaming.com.
About Carnival Corporation
Carnival Corporation is the largest global cruise company and among the largest leisure travel companies, with a portfolio of world-class cruise lines – AIDA Cruises, Carnival Cruise Line, Costa Cruises, Cunard, Holland America Line, P&O Cruises, Princess Cruises and Seabourn. Carnival Corporation trades under the ticker symbol CCL on the NYSE and is included in the S&P 500.
For more information, please visit www.carnivalcorp.com, www.aida.de, www.carnival.com, www.costacruises.com, www.cunard.com, www.hollandamerica.com, www.pocruises.com, www.princess.com and www.seabourn.com.
To learn more about Carnival Corporation’s purpose and our commitment to sustainability, go to www.carnivalcorp.com/impact/.
About Konami Gaming, Inc.
Konami Gaming, Inc. is a Las Vegas-based subsidiary of KONAMI GROUP CORPORATION (TSE: 9766). The company is a leading designer and manufacturer of casino games and technology for the global gaming market. For more information about Konami Gaming, Inc. or the SYNKROS® casino management system, please visit www.konamigaming.com.
Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?
Let's take a look at what these Wall Street heavyweights have to say about Carnival (CCL - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.
Carnival currently has an average brokerage recommendation (ABR) of 1.41, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 27 brokerage firms. An ABR of 1.41 approximates between Strong Buy and Buy.
Of the 27 recommendations that derive the current ABR, 21 are Strong Buy and one is Buy. Strong Buy and Buy respectively account for 77.8% and 3.7% of all recommendations.
Brokerage Recommendation Trends for CCL
Check price target & stock forecast for Carnival here>>>
While the ABR calls for buying Carnival, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.
Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.
This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.
With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.
Zacks Rank Should Not Be Confused With ABRIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.
The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.
In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.
Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.
Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.
Is CCL Worth Investing In?In terms of earnings estimate revisions for Carnival, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $2.21.
Analysts' steady views regarding the company's earnings prospects, as indicated by an unchanged consensus estimate, could be a legitimate reason for the stock to perform in line with the broader market in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Carnival. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
It may therefore be prudent to be a little cautious with the Buy-equivalent ABR for Carnival.
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One stock to keep an eye on is Carnival (CCL - Free Report) . CCL is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 13.58, while its industry has an average P/E of 15.85. CCL's Forward P/E has been as high as 20.07 and as low as 8.45, with a median of 13.45, all within the past year.
CCL is also sporting a PEG ratio of 0.61. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. CCL's PEG compares to its industry's average PEG of 1.13. CCL's PEG has been as high as 0.86 and as low as 0.37, with a median of 0.60, all within the past year.
Another valuation metric that we should highlight is CCL's P/B ratio of 3.56. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 6.49. Within the past 52 weeks, CCL's P/B has been as high as 3.79 and as low as 2.09, with a median of 3.05.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. CCL has a P/S ratio of 1.27. This compares to its industry's average P/S of 1.83.
Finally, our model also underscores that CCL has a P/CF ratio of 8.05. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. CCL's current P/CF looks attractive when compared to its industry's average P/CF of 12.06. Over the past 52 weeks, CCL's P/CF has been as high as 8.64 and as low as 4.49, with a median of 7.39.
These are only a few of the key metrics included in Carnival's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, CCL looks like an impressive value stock at the moment.
