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 SoundHound AI, Inc. (SOUN - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.
SoundHound AI currently has an average brokerage recommendation (ABR) of 1.67, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by nine brokerage firms. An ABR of 1.67 approximates between Strong Buy and Buy.
Of the nine recommendations that derive the current ABR, six are Strong Buy, representing 66.7% of all recommendations.
Brokerage Recommendation Trends for SOUN
Check price target & stock forecast for SoundHound AI here>>>
While the ABR calls for buying SoundHound AI, 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.
Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.
In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.
Zacks Rank Should Not Be Confused With ABRAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.
Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.
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.
In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.
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 SOUN a Good Investment?Looking at the earnings estimate revisions for SoundHound AI, the Zacks Consensus Estimate for the current year has declined 18.3% over the past month to -$0.18.
Analysts' growing pessimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates lower, could be a legitimate reason for the stock to plunge 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 #4 (Sell) for SoundHound AI. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, it could be wise to take the Buy-equivalent ABR for SoundHound AI with a grain of salt.
I've been pretty skeptical of SoundHound AI (SOUN +3.93%). Compared with heavy hitters in artificial intelligence (AI) such as Anthropic and OpenAI, the AI-powered voice chatbot company has a small niche and a tiny cash balance. And yet it somehow still has a $3 billion market cap, although that's fallen more than 60% from its 2025 high.
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Over the last few quarters, though, I've started to rethink my bearish position on SoundHound. The company has been executing well, and against all odds, it seems to be making headway. Here's why I think SoundHound might be worth a second look for AI investors.
The bear case SoundHound is essentially combining an old technology (voice recognition) with a very new one (AI).
Image source: Getty Images.
Phone voice recognition systems predate Apple's Siri and Amazon's Alexa, which debuted in 2010 and 2014, respectively. SoundHound's major innovation was developing voice recognition technology that performs better in environments with heavy background noise, making it a favorite of drive-thrus and in-car audio systems.
The company opened a new market by expanding its agentic AI restaurant ordering systems from drive-thru windows to phone systems, which are used today by major chains like White Castle, Chipotle, Five Guys, Panda Express, and Applebee's. It also provides in-car voice systems for Kia, Hyundai, Lucid, and all of Stellantis' brands, including Chrysler, Dodge, and Jeep. And in Q1, it signed a global agreement with "a prominent Japanese manufacturer" for its vehicle voice assistant.
But although SoundHound has a solid, growing presence in these niches, they're comparatively easy niches for an AI chatbot to fill. To really unlock major growth, SoundHound needs to expand into general customer service applications, where there are many more potential customers, but also more potential for error. Plus, on a customer service phone line, SoundHound's background noise-reducing technology isn't as important, putting it at greater risk from competitors.
The bull case SoundHound's apparent lack of a proprietary moat worried me at first. But just because a technology is widely used doesn't mean a deep-pocketed competitor will necessarily deploy it in this industry to clear the field.
Image source: Getty Images.
It's no surprise that SoundHound has plenty of competition in this space. An effective agentic AI customer service voice agent platform would have several advantages over human agents beyond cost-effectiveness, including the ability to answer all calls quickly regardless of call volume, 24/7 global availability, multilingual support, and near-instant data retrieval. But it's a very fragmented market with lots of small start-ups operating alongside major players, including Amazon Quick for AWS and Salesforce's Agentforce.
In Q1, SoundHound grew its revenue by 52% year over year to $44.2 million and signed new or expanded deals with at least two dozen customers. It's also been very acquisitive and just agreed to purchase enterprise conversational AI provider LivePerson in April.
If SoundHound can continue to grow its revenue and consolidate market share through new contracts and acquisitions at this pace, it could very easily become a long-term winner. Smart investors should keep an eye on SoundHound.
John Bromels has positions in Amazon, Apple, and Chipotle Mexican Grill. The Motley Fool has positions in and recommends Amazon, Apple, Chipotle Mexican Grill, Salesforce, and SoundHound AI. The Motley Fool recommends Stellantis and recommends the following options: short June 2026 $36 calls on Chipotle Mexican Grill. The Motley Fool has a disclosure policy.
Key Takeaways SOUN expects the LivePerson deal to close in 2H 2026, marking its fifth acquisition.LivePerson would add hundreds of customers across more than 30 countries to SoundHound.SOUN says the combined business could reach $500M based on the existing customer base alone. SoundHound AI, Inc. (SOUN - Free Report) is expanding its enterprise AI footprint through the planned acquisition of LivePerson, a move that could significantly increase its customer reach, cross-selling opportunity and revenue scale.
The company expects the LivePerson transaction to close in the second half of 2026, marking its fifth strategic acquisition. LivePerson would bring hundreds of enterprise and mid-market customers across more than 30 countries. The combined customer base would include 12 of the top 15 global banks, four of the top five global airlines, four of the top five global automakers, 10 leading global telecommunications providers and 25 Fortune 100 companies.
This expanded customer base strengthens SoundHound’s opportunity to sell voice AI, digital messaging and agentic AI capabilities across a broader enterprise platform. Management noted that Voice AI is among the most frequently requested capabilities from LivePerson’s customer base, creating an immediate cross-selling opportunity for SoundHound following the deal’s close. The company also sees an opportunity to sell unified digital-and-voice omnichannel solutions to its existing customers.
The revenue framework makes the deal an important part of SOUN’s growth narrative. SoundHound expects 2026 revenues of $225 million to $260 million. Assuming the LivePerson acquisition closes in the second half of the year, the company expects a minimum 2027 revenue range of $350 million to $400 million, including at least $100 million from LivePerson’s long-tenured customers. Management also stated that the combined business could reach $500 million based on the existing customer base alone.
For SOUN, the next phase of the growth narrative likely depends on integration execution. LivePerson has been under pressure, and SoundHound will need to stabilize customer relationships, modernize the platform and convert cross-selling opportunities into recognized revenues. If the company can retain key LivePerson customers and expand adoption of its Voice AI and omnichannel solutions, the acquisition could provide a larger base for revenue growth in 2027 and beyond.
SOUN’s Price Performance, Valuation & EstimatesSoundHound’s shares have lost 28.7% in the past year compared with the industry’s fall of 30.2%. At the same time frame, other industry players, including C3.ai, Inc. (AI - Free Report) , have declined 55.6%, while BigBear.ai Holdings, Inc. (BBAI - Free Report) has gained 5%.
SOUN’s Stock One-Year Price Performance
Image Source: Zacks Investment Research
SOUN stock is currently trading at a discount. It is currently trading at a forward 12-month price-to-sales (P/S) multiple of 11.63, below the industry average of 11.95. Then again, other industry players, such as C3.ai and BigBear.ai, have P/S ratios of 6.90 and 12.58, respectively.
SOUN’s P/S Ratio (Forward 12-Month) vs. Industry
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for SoundHound’s 2026 loss per share has widened from 9 cents to 18 cents in the past 60 days.
EPS Trend of SOUN Stock
Image Source: Zacks Investment Research
The company is likely to report dismal earnings, with projections indicating a 38.5% fall in 2026. Conversely, industry players like BigBear.ai are likely to witness growth of 69.5% year over year in 2026 earnings. C3.ai is likely to project a rise of 36.3% in fiscal 2027 earnings.
Short sellers are piling into a wide-ranging group of names, with the latest Benzinga Pro data showing elevated bearish positioning across 10 stocks with short interest ranging from 37% to 87%.
CLSK stock is moving. See the chart and price action here. Top 10 Most Heavily Shorted StocksBelow are the top 10 most heavily shorted stocks (market caps above $2 billion, average 14-day volume above 5 million and free floats above 5 million) based on data from Benzinga Pro as of June 11, 2026:
Closer LookThe Louisiana-based LNG exporter, which went public in January 2025, trades at $12.75 and carries a $31.65 billion market cap. Bears have hammered the stock well off its 52-week high of $19.50.
CleanSpark, Inc. (NASDAQ:CLSK), with 45.74% of float short, closed at $16.17 on Thursday.
Primo Brands Corp. (NYSE:PRMB) sits at 42.33% short interest with shares closing at $23.54.
Luxury home goods retailer RH (NYSE:RH) at 39.62% short closed at $159.82, though it remains well below its 52-week high of $257.
Investors eyeing these stocks should be cautious: Elevated short interest could send these names soaring if a positive catalyst sparks a squeeze, while bad news could send any of them into freefall.
Photo: Shutterstock
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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Disclosures I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.
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They now have a $210.00 price target on the stock.Hermes International (HESAY) was upgraded by HSBC Holdings plc from "hold" to "buy".Hermes International (HESAY) was upgraded by Kepler Capital Markets from "hold" to "buy".JPMorgan Chase & Co. 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This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Hermes International SA - Unsponsored ADR (OTCMKTS:HESAY - Get Free Report) saw unusually-high trading volume on Friday. Approximately 76,689 shares were traded during trading, an increase of 24% from the previous session's volume of 61,840 shares.The stock last traded at $194.3150 and had previously closed at $202.94. Wall Street Analysts Forecast Growth HESAY has
With its 25% YTD correction, there's now a mismatch between Hermès' market valuations and fundamentals, making now a unique buying opportunity. Even with the ongoing luxury market slowdown, the company's revenue growth stays healthy, and its margins are robust even as net income contracted a bit in 2025 due to taxes. Market multiples indicate at least 20% upside to HESAY, though a worsening in geopolitical and macroeconomic conditions could be a risk.
Hermes International (OTCMKTS:HESAY - Get Free Report) and Big Tree Cloud (NASDAQ: DSY - Get Free Report) are both consumer staples companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, risk, earnings, dividends, analyst recommendations, institutional ownership and profitability. Profitability This table compares Hermes International
Hermès is a rare scarcity asset, maintaining premium valuation despite recent macro-driven drawdown. HESAY delivered $18B in revenue and a 41.75% operating margin in 2025, with robust liquidity and disciplined reinvestment in brand scarcity. Macro risks and China/Asia exposure (42% of revenue) are key watchpoints, but the scarcity model and balance sheet offer resilience.
Shares of Hermes International SA – Unsponsored ADR (OTCMKTS:HESAY – Get Free Report) have been given an average rating of “Buy” by the six brokerages that are presently covering the stock, MarketBeat reports. Two analysts have rated the stock with a hold rating, two have issued a buy rating and two have assigned a strong buy rating to the company.
HESAY has been the subject of several research reports. Jefferies Financial Group upgraded shares of Hermes International from a “hold” rating to a “strong-buy” rating in a research report on Monday, January 26th. HSBC raised shares of Hermes International from a “hold” rating to a “buy” rating in a report on Tuesday, March 10th. Finally, Kepler Capital Markets raised Hermes International from a “hold” rating to a “buy” rating in a report on Tuesday, March 10th.
Get Our Latest Stock Report on HESAY
Hermes International Stock Up 0.9% Shares of Hermes International stock opened at $194.06 on Friday. Hermes International has a 52 week low of $183.24 and a 52 week high of $294.72. The company has a debt-to-equity ratio of 0.11, a current ratio of 4.99 and a quick ratio of 4.19. The business has a 50 day moving average price of $225.14 and a 200-day moving average price of $240.44.
About Hermes International (Get Free Report)
Hermès International is a French luxury goods company renowned for its high-end leather goods, scarves, ready-to-wear apparel, watches, jewelry, fragrances and home accessories. Founded in 1837 as a harness and bridle workshop, the firm has evolved into one of the world’s most recognizable luxury maisons, known for artisanal craftsmanship, quality materials and a focus on timeless design. The company is headquartered in Paris and maintains a strong heritage identity that influences its product development and brand positioning.
Key product categories include leather goods and iconic handbags, silk scarves and ties, fashion and accessories, timepieces and fine jewelry, as well as fragrances and selected home collections.
Further Reading Five stocks we like better than Hermes International
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The fragile recovery of European luxury equities, which investors hoped would stabilize following a mixed Lunar New Year, was decisively upended by the onset of the Iran War in 2026.
In recent weeks, the sector has seen about $100 billion in market cap evaporate as geopolitical risk premia spiked and consumer sentiment soured. Titans including LVMH, Kering, Richemont, and Hermes, have retreated between 10% and 20% each.
While the Middle East represents some 6% of global luxury sales, it functions as a “vital growth” engine during a period of stagnation in other major markets.
However, analysts believe the European luxury stocks will rebound sharply as soon as the US-Iran conflict subsides.
According to them, the recent pullback isn’t a structural failure, but cyclical de-rating that actually offers a high-conviction entry point for the next market cycle.
In a recent note to clients, Deutsche Bank’s senior analyst Adam Cochrane said the primary catalyst for an expected post-war rally in luxury stocks hinges on valuation anomalies.
Major conglomerates are currently trading at huge discounts compared to their historical multiples, largely due to a risk premium that has decoupled share prices from fundamental earnings power.
While timing remains uncertain, Cochrane expects industry’s growth algorithm to eventually return, fueled particularly by a resurgence in US and Chinese demand.
Deutsche Bank maintained its “buy” rating on sector bellwether, adjusting the price target to €620, signaling the intrinsic value of the fashion giant remains robust despite wartime discount.
Investment firms more broadly have cut their earnings forecast in half to 3% for the first quarter. Still, the valuation landscape suggests significant upside once the macro outlook clears.
UBS – for example – sees potential recoveries of up to 40% in LVMH stock and 32% in Richemont.
According to its experts, once geopolitical uncertainty fades and investor sentiment normalizes, it will trigger a wave of institutional buying as funds rotate back into premium-quality discretionary stocks.
This will drive a rapid expansion of P/E multiples toward historical ranges, they concluded.
Wall Street believes a formal end to hostilities will serve as an immediate catalyst for operational normalization, particularly in high-margin regions.
The closure of key regional hubs has not only dented retail figures but also strained supply chains, with high-end manufacturers like Ferrari and Bentley previously forced to suspend shipments due to security concerns.
The resumption of these deliveries and the reopening of luxury travel retail in hubs like Dubai are expected to provide a concentrated boost to second-half revenue.
Because the Middle East – in recent years – has been one of the few “bright spots” in an otherwise struggling global landscape, its stabilization is critical for restoring investor confidence.
The return of wealthy tourists to the Gulf, who account for the majority of luxury spending in the region, will likely trigger a fast recovery in duty-free channels and reduce the elevated freight costs associated with wartime logistics.
This may further help luxury stocks rally again as the year unfolds.
Yatsen (NYSE:YSG – Get Free Report) and Hermes International (OTCMKTS:HESAY – Get Free Report) are both consumer staples companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, earnings, analyst recommendations, risk, profitability, valuation and institutional ownership.
Analyst Recommendations This is a summary of recent recommendations and price targets for Yatsen and Hermes International, as provided by MarketBeat.com.
Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score Yatsen 1 0 0 0 1.00 Hermes International 1 2 2 2 2.71 Earnings & Valuation This table compares Yatsen and Hermes International”s revenue, earnings per share and valuation.
Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio Yatsen $614.62 million 0.48 -$11.56 million ($0.13) -24.00 Hermes International $18.10 billion 12.03 $5.12 billion N/A N/A Hermes International has higher revenue and earnings than Yatsen.
Profitability This table compares Yatsen and Hermes International’s net margins, return on equity and return on assets.
Net Margins Return on Equity Return on Assets Yatsen -1.87% -2.65% -2.04% Hermes International N/A N/A N/A Volatility & Risk Yatsen has a beta of -1.76, meaning that its share price is 276% less volatile than the S&P 500. Comparatively, Hermes International has a beta of 0.98, meaning that its share price is 2% less volatile than the S&P 500.
Summary Hermes International beats Yatsen on 10 of the 10 factors compared between the two stocks.
About Yatsen (Get Free Report)
Yatsen Holding Limited, together with its subsidiaries, engages in the development and sale of beauty products under the Perfect Diary, Little Ondine, Pink Bear, Abby’s Choice, GalÃnic, DR.WU, Eve Lom, and EANTiM brands in the People’s Republic of China. The company offers color cosmetics for lips, eyes, and face; skin care products, including face serums and creams, eye creams, masks, toners, makeup removers, cleansers, ampoules, and anti-acne patches; and beauty tools and kits, sunscreen products, and beauty devices. It sells its products through stores and online channel. The company was formerly known as Mangrove Bay Ecommerce Holding (Cayman) and changed its name to Yatsen Holding Limited in January 2019. Yatsen Holding Limited was founded in 2016 and is headquartered in Guangzhou, China.
About Hermes International (Get Free Report)
Hermès International Société en commandite par actions engages in the production, wholesale, and retail of various goods. The company offers leather goods and saddlery, such as bags for men and women, travel articles, small leather goods and accessories, saddles, bridles, and a full range of equestrian products and clothing; ready-to-wear garments for men and women; and accessories, including jewelry, belts, hats, gloves, the Internet of Things products, and shoes. It also provides silk and textiles for men and women; art of living and tableware products; perfumes; and watches. In addition, the company is also involved in weaving, engraving, printing, dyeing, finishing, and producing textiles; and purchasing, tanning, dyeing, finishing, and selling precious leathers. It sells its products through a network of stores worldwide. The company also sells watches, perfumes, and tableware through a network of specialized stores. Hermès International Société en commandite par actions was founded in 1837 and is based in Paris, France. Hermès International Société en commandite par actions operates as a subsidiary of H51 SAS.
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Luxury stocks fell sharply on Wednesday after disappointing first-quarter earnings from Kering and Hermès highlighted the growing toll of the Middle East conflict on high-end spending, tourism and investor confidence.
The selloff, which spread across Europe’s luxury sector, signals rising concerns that geopolitical tensions and macroeconomic uncertainty are derailing hopes of a recovery in the $400 billion industry.
Shares of Hermès plunged 14%, while Kering dropped 10%, dragging peers such as Burberry, Christian Dior, LVMH and Moncler lower by between 2% and 3% on the Stoxx 600.
Earlier this week, sector bellwether LVMH reported softer sales for the first quarter, citing disruptions to the geopolitical and economic landscape, particularly from the conflict in the Middle East.
The luxury sector, already grappling with trade tensions and a challenging economic backdrop, is now facing fresh pressure from the war in Iran, which analysts say could dampen regional demand and curb spending by Middle Eastern tourists in Europe.
At the centre of Kering’s disappointing performance was continued weakness at its flagship brand Gucci, where first-quarter sales fell 8% from a year earlier.
The company said the Iran war had weighed on spending by Middle Eastern consumers and curtailed international travel, both key drivers of luxury demand.
Retail revenues in the Middle East declined 11% during the quarter, despite solid growth in the first two months of the year before the conflict escalated on February 28.
Finance chief Armelle Poulou said the war shaved off 3% of overall group sales in March, or around 1% for the quarter as a whole, with a similar impact on Gucci.
Kering noted that the Middle East accounts for about 5% of its overall revenue and said it was closely monitoring developments.
“While some areas experienced temporary disruptions, the total retail network is operational today,” the company said, adding that “beyond the localized impact,” the broader concern relates to global tourism trends and the macroeconomic backdrop.
Despite the uncertain environment, Kering reiterated its aim of returning to growth and improving margins this year.
However, analysts remain cautious about the pace of recovery.
“While guidance was confirmed, the timeline for a Gucci turnaround remains uncertain and likely gradual, against a challenging macro backdrop and ongoing geopolitical tensions,” Citi analysts wrote, referring to ongoing structural challenges at the brand.
Gucci, once Kering’s main profit engine, has seen its quarterly sales roughly halve compared with 2023 levels, reflecting the fallout from aggressive price increases, changing aesthetics and management churn that have alienated parts of its customer base.
Meanwhile, Hermès reported a slowdown in sales growth, suggesting that even the most resilient players in the sector are not immune to geopolitical shocks.
The company posted revenue of 4.07 billion euros ($4.80 billion) for the first quarter, representing a 5.6% increase at constant exchange rates.
However, the figure fell short of analysts’ expectations of 4.16 billion euros and marked a slowdown from the 9.8% growth recorded in the previous quarter.
At current exchange rates, sales declined 1% year-on-year, as currency fluctuations wiped out 290 million euros in revenue.
Growth in key product categories, including Birkin and Kelly bags, silk scarves and perfumes, came in at 6%, below the 7.1% expected by analysts.
The company attributed part of the weakness to declining tourist flows linked to the conflict.
Sales in the Middle East fell 6% to 160 million euros, while demand in key tourist destinations such as the UK, Italy and Switzerland also weakened.
“The Middle East, down by 6%, was of course significantly impacted by the geopolitical events affecting the region in March,” said chief financial officer Eric du Halgouet.
He added that sales in luxury malls in the United Arab Emirates dropped by 40% in March.
The Middle East has been one of the fastest-growing regions for luxury brands in recent years, accounting for roughly 5% of global consumption.
However, the conflict has disrupted travel patterns and consumer confidence, undermining a key pillar of demand.
“It was definitely a strategic region. Everything was okay,” said Carole Madjo, head of luxury research at Barclays told Reuters.
That picture has changed sharply in recent weeks.
Sales in major shopping destinations in Dubai and Abu Dhabi have declined significantly, with some brands reporting drops of 30% to 50% at the Mall of the Emirates in March, Reuters reported citing sources.
The impact extends beyond the region itself.
Middle Eastern tourists are among the highest spenders globally, and their reduced travel has hit luxury sales in Europe, particularly in cities and airport retail outlets that depend heavily on international visitors.
Dubai, a key hub for luxury retail and tourism, has also been directly affected by the conflict.
Infrastructure disruptions and security concerns have dented its image as a stable destination, with analysts warning that recovery could take months even if tensions ease.
The latest earnings underscore the fragile state of the luxury sector, which has already been grappling with slowing demand, trade tensions, and economic uncertainty.
Since the end of the post-pandemic luxury boom in 2022, the combined market capitalisation of LVMH and Kering has fallen by more than 100 billion euros.
Industry-wide sales declined 2% last year, according to Bain & Company, and expectations for a rebound this year are now under pressure.
Analysts warn that the ripple effects of the war could extend beyond the Gulf region.
Bernstein said higher oil prices, rising travel costs, and potential financial market volatility could “easily disrupt” luxury demand globally, especially in the United States.
“If it now turns out that whatever luxury recovery we were hoping for in 2026 is not going to happen, and it's going to be postponed at best into the second half or into next year, I don't think anybody can be surprised by it,” said Christopher Rossbach, portfolio manager at J Stern & Co in London in the Reuters report.
While companies such as Hermès maintain confidence in their medium-term outlook, the near-term environment remains highly uncertain, with geopolitical risks, currency volatility, and shifting consumer behaviour continuing to weigh on the sector.
Hermes faced a sharp Q1 2026 sales slowdown due to the Middle East conflict, triggering a double-digit stock drop and creating a compelling entry point. Despite a 6% revenue increase (entirely price-driven), volume growth was flat, and Middle East sales fell 6%, but profitability remained intact. HESAY's valuation compressed from 51–52x to 38.3x P/E, offering robust 10–12% long-term return potential as fundamentals remain resilient.
On May 14, 2026, we present a DCF analysis for Hermes International SA HESAY , a luxury goods company currently facing significant price performance challenges. Over the past year, the stock has declined by 34.9%, reflecting broader market trends and company-specific factors.
DCF Earnings-based intrinsic value of $156.68 vs current price of $186.86 (margin of safety: -8.4%) DCF FCF-based intrinsic value of $132.60 vs current price (second opinion shows modest overvaluation) GF Score™ of 92/100 indicates high reliability of the DCF inputs What Is HESAY Worth? DCF Earnings-Based Model The DCF earnings-based model evaluates the intrinsic value of HESAY by projecting its future earnings growth and discounting them to present value. We assume a current EPS of $5.15 and a robust 10-year growth rate of 19.6%. The discount rate is set at 11%, combining the risk-free rate and equity risk premium.
Parameter Value Current EPS (TTM, excl. non-recurring) $5.15 10-Year Growth Rate 19.6% 10-Year Treasury Rate 4.33% Discount Rate (ceil(Treasury) + 6%) 11% Terminal Growth Rate 4% In this two-stage model, we first calculate the growth stage value, where EPS grows at 19.6% per year for the first 10 years, discounted at 11%. This results in a growth stage value of $79.43 per share. Following this, we enter the terminal phase, where growth slows to a 4% terminal rate for the next 10 years, yielding a terminal stage value of $77.25 per share.
Stage Description Value Growth Stage (Years 1-10) EPS growing at 19.6%, discounted at 11% $79.43 Terminal Stage (Years 11-20) 4% terminal growth, discounted at 11% $77.25 Intrinsic Value Growth + Terminal $156.68 Comparing the intrinsic value of $156.68 to the current price of $186.86, we find that the stock is fairly valued with a margin of safety of -8.4%. It is important to note that GuruFocus uses EPS without non-recurring items, as research shows stock prices correlate more closely with earnings than free cash flow. For further details, visit the HESAY DCF Calculator.
What Does the Free Cash Flow DCF Say? The free cash flow (FCF)-based intrinsic value for HESAY is calculated at $132.60. This value contrasts with the earnings-based intrinsic value, suggesting a modestly overvalued status with a margin of safety of -40.9%. The divergence between the two models indicates that while the earnings-based model suggests fair valuation, the FCF model points towards overvaluation, highlighting the importance of considering multiple valuation perspectives.
How Does GF Value™ Compare to the DCF Models? According to GuruFocus, the GF Value™ for HESAY is $293.36, indicating that the stock is 36.3% undervalued based on historical trading multiples, past business growth, and future performance estimates. While the DCF earnings-based model suggests fair valuation and the FCF model indicates modest overvaluation, the GF Value™ presents a more optimistic view, suggesting that the stock may be undervalued. For more information, visit the GF Value™ page.
What Does HESAY's GF Score™ Tell Us? The GF Score™ ranks stocks from 0 to 100 based on five key aspects: Financial Strength, Profitability, Growth, Valuation, and Momentum. Stocks with higher GF Score™ values have been found to generate higher long-term returns (backtested 2006-2021). HESAY has a GF Score™ of 92/100, indicating strong fundamentals and growth potential. The predictability rank is 1/5 stars, suggesting that the DCF model may be less reliable for this stock.
Key Assumptions and Limitations It is important to note that DCF models are highly sensitive to growth rate and discount rate assumptions. Stocks with low predictability ratings, such as HESAY's 1/5 stars, produce less reliable DCF estimates. Additionally, the terminal growth rate of 4% is a simplifying assumption that may not fully capture future market conditions.
What This Means for Investors In summary, the DCF earnings model suggests that HESAY is fairly valued, while the FCF model indicates it is modestly overvalued. The GF Value™ presents a more favorable perspective, suggesting the stock is undervalued. Overall, the consensus leans towards a fair valuation, but investors should consider the varying perspectives from each model before making decisions. For the full DCF analysis, visit the HESAY DCF Calculator. You can also explore the GF Value™ page, or use the GuruFocus Stock Screener to find undervalued predictable companies.
Frequently Asked Questions What is HESAY's intrinsic value based on DCF?
HESAY's intrinsic value based on DCF is $172.45 (earnings-based) and $132.60 (FCF-based).
Is HESAY overvalued or undervalued?
Based on the DCF models and GF Value™, HESAY appears to be fairly valued.
How reliable is the DCF model for HESAY?
The DCF model for HESAY is less reliable due to its predictability rank of 1/5 stars.
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].
INFORMATION RELATING TO THE TOTAL NUMBER OF VOTING RIGHTS AND SHARES COMPRISING THE SHARE CAPITAL
In accordance with the provisions of Article L. 233-8 of the French Commercial Code (Code de commerce) and Article 223-16 of the General Regulations of French Autorité des Marchés Financiers (AMF), Hermès international publishes each month, before the 15th day of the following month, the total number of voting rights and the number of shares comprising the share capital if they have varied from those previously published.
DateTotal number of shares Total number of theoretical voting rights (including treasury stock)Total number of effective voting rights (exercisable at shareholders’ meetings)Publications30 April 2026105 569 412179 250 283178 483 14115 May 202631 March 2026105 569 412179 257 703178 491 50110 April 202628 February 2026105 569 412179 257 963178 524 11712 March 202631 January 2026105 569 412179 259 062178 526 30213 February 202631 December 2025105 569 412179 250 591178 517 49414 January 202630 November 2025105 569 412179 251 011178 517 7209 December 202531 October 2025105 569 412179 251 764178 518 62813 November 202530 September 2025105 569 412179 543 052178 810 0058 October 202531 August 2025105 569 412179 545 613178 811 72111 September 202531 July 2025105 569 412179 550 181178 816 45911 August 202530 June 2025105 569 412179 550 545178 818 53010 July 202531 May 2025105 569 412179 467 481178 733 02316 June 202530 April 2025105 569 412179 461 813178 728 08414 May 202531 March 2025105 569 412179 463 684178 728 70715 April 202528 February 2025105 569 412179 437 557178 705 1187 March 202531 January 2025105 569 412179 455 727178 723 89617 February 202531 December 2024105 569 412179 455 561178 723 9179 January 202530 November 2024105 569 412179 428 716178 694 96810 December 202431 October 2024105 569 412179 438 517178 704 13915 November 202430 September 2024105 569 412179 441 272178 707 8259 October 202431 August 2024105 569 412179 446 014178 732 4646 September 202431 July 2024105 569 412179 445 914178 732 8437 August 202430 June 2024105 569 412179 449 233178 610 37511 July 202431 May 2024105 569 412179 188 981178 349 19313 June 202430 April 2024105 569 412179 141 995178 305 11314 May 202431 March 2024105 569 412179 116 106178 279 2249 April 202429 February 2024105 569 412179 126 463178 289 17012 March 202431 January 2024105 569 412179 317 315178 478 37312 February 202431 December 2023105 569 412179 317 667 178 478 55215 January 202430 November 2023105 569 412179 365 859178 526 89211 December 202331 October 2023105 569 412179 368 728178 528 39913 November 202330 September 2023105 569 412179 371 032178 566 4829 october 202331 August 2023105 569 412179 372 531178 582 1888 September 202331 July 2023105 569 412179 374 728178 612 91514 August 202330 June 2023105 569 412179 404 568178 374 30411 July 202331 May 2023105 569 412179 265 655178 234 25312 June 202330 April 2023105 569 412179 257 164178 227 07812 May 202331 March 2023105 569 412179 245 726178 216 74012 April 202328 February 2023105 569 412179 250 895178 220 6097 March 202331 January 2023105 569 412179 465 678178 435 9699 February 202331 December 2022105 569 412179 473 191178 439 5669 January 202330 November 2022105 569 412179 476 149178 444 6168 December 202231 October 2022105 569 412179 635 081178 601 3748 November 202230 September 2022105 569 412179 638 491178 603 98410 October 202231 August 2022105 569 412179 590 290178 558 6117 September 202231 July 2022105 569 412179 595 222178 565 0408 August 202230 June 2022105 569 412179 596 141178 562 99811 July 202231 May 2022105 569 412179 733 416178 731 3399 June 202230 April 2022105 569 412179 560 530178 564 10113 May 2022 hermes_20260515_releasetotalnumberofvotingrightsandshares_2026-04-30_EN
Hermès is now rated a strong buy after a rare 43% share price collapse, despite resilient fundamentals and premium brand positioning. Q1 2026 revenue growth of 5.6% missed expectations, but long-term EPS trends remain robust and profit margins have expanded to nearly 30%. Temporary headwinds—Middle East conflict, travel disruptions, and industry-wide weakness—do not threaten HESAY's secular growth or exclusive client base.
LOS ANGELES--(BUSINESS WIRE)--Sweetgreen, Inc. (NYSE: SG), the mission-driven, next-generation restaurant and lifestyle brand that serves healthy food at scale, today announced the appointment of Ryan Slemons as Chief Development Officer, effective May 4, 2026. Slemons will report directly to Co-Founder and CEO Jonathan Neman. Slemons will lead all aspects of real estate, design, construction, facilities and portfolio management. He brings nearly two decades of experience in real estate, franch.
Sweetgreen, Inc. (SG - Free Report) is expected to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended March 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on May 7. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus EstimateThis company is expected to post quarterly loss of $0.23 per share in its upcoming report, which represents a year-over-year change of -9.5%.
Revenues are expected to be $166.02 million, down 0.2% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 1.54% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Sweetgreen?For Sweetgreen, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +6.67%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination indicates that Sweetgreen will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Sweetgreen would post a loss of$0.31 per share when it actually produced a loss of -$0.42, delivering a surprise of -35.48%.
The company has not been able to beat consensus EPS estimates in any of the last four quarters.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Sweetgreen appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Expected Results of an Industry PlayerAmong the stocks in the Zacks Retail - Restaurants industry, Bloomin' Brands (BLMN - Free Report) , is soon expected to post earnings of $0.57 per share for the quarter ended March 2026. This estimate indicates a year-over-year change of -3.4%. This quarter's revenue is expected to be $1.04 billion, down 0.8% from the year-ago quarter.
The consensus EPS estimate for Bloomin' Brands has been revised 7.1% higher over the last 30 days to the current level. However, a lower Most Accurate Estimate has resulted in an Earnings ESP of -2.90%.
When combined with a Zacks Rank of #3 (Hold), this Earnings ESP makes it difficult to conclusively predict that Bloomin' Brands will beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Shares of Sweetgreen (SG +6.28%) were moving higher last month, even though there was little company-specific news out on the fast-casual salad slinger.
Instead, Sweetgreen seemed to benefit from the broader risk-on mentality in the market as tensions in the Middle East cooled, and the stock might have gotten a boost from earnings reports from industry leaders like Starbucks and Chipotle.
As a result, the stock finished the month up 33%, according to data from S&P Global Market Intelligence.
As you can see from the chart below, Sweetgreen's movements were erratic, but it did finish the month with a solid gain.
SG data by YCharts
What happened with Sweetgreen Sweetgreen seemed to benefit from investors doing some bottom-fishing as the beaten-down stock could be a good opportunity if it can execute on its turnaround. While there wasn't anything particularly newsworthy that pushed the stock up last month, sentiment seemed to be enough, with the shares looking cheap by some metrics. Stocks soared through April as tensions cooled in the Middle East and the AI trade came back into fashion. However, Sweetgreen doesn't seem to have direct exposure to either of those factors.
There was some good news from key peers, which shows that restaurant spending may be coming back. Chipotle reported comparable sales up 0.5% in the first quarter, which was an improvement from recent quarters. Meanwhile, at Starbucks, comparable sales in North America jumped 7.1%, showing the turnaround effort under Brian Niccol has been paying off.
That could be encouraging for Sweetgreen as the salad chain tries to win back more customers.
Additionally, it hired a new Chief Development Officer, Ryan Slemons, who could help accelerate Sweetgreen's growth. Retail sales in March were also solid in the latest report, showing consumers continue to spend.
Image source: Sweetgreen.
Can Sweetgreen keep climbing? The strong report from Starbucks isn't necessarily meaningful for Sweetgreen, but it shows customers are willing to spend on restaurants.
Sweetgreen will report first-quarter earnings on May 7, and investors are expecting revenue to decline 1.6% to $163.6 million, and for its loss per share to expand from $0.13 to $0.18.
Sweetgreen introduced wraps earlier this year, and we'll get a sense of whether that's helping to drive increased visits to the restaurant. If it's another dismal report, April's gains could be easily wiped out, but it does seem like some of the macro pressure on the business is starting to lift.
Jeremy Bowman has positions in Chipotle Mexican Grill, Starbucks, and Sweetgreen. The Motley Fool has positions in and recommends Chipotle Mexican Grill and Starbucks. The Motley Fool recommends Sweetgreen and recommends the following options: short June 2026 $36 calls on Chipotle Mexican Grill. The Motley Fool has a disclosure policy.
If you bought Cava Group (CAVA +8.20%) stock somewhere near its 52-week lows late last year, you likely understood something important: The best restaurant stocks don't get rewarded for what they're doing today or for what the culture sees them as. They get rewarded for their store count growth rate and for what the market thinks their comparable-store sales could look like in five years. Already, the market has begun to reevaluate Cava -- it's up by more than 100% from its November low.
That same lens should be applied to three other restaurant chains that are trading well below where their long-term trajectories suggest they should be.
Image source: Getty Images.
1. Dutch Bros: A coffee drive-thru disrupter that's still in its early innings Dutch Bros (BROS +7.88%) trades around $57 per share -- more than 25% below its 52-week high -- even though it posted its 11th consecutive quarter of earnings beats in Q4 2025. The company opened 55 new shops in that quarter alone and plans to open 181 new locations in 2026, with 2026 revenue guidance of $2 billion to $2.03 billion and comparable sales growth of 3% to 5%. (Its Q1 results are due out May 6.)
What makes Dutch Bros unusual isn't just the (really good) coffee; it's the data infrastructure underneath it. The company's rewards program feeds a digital flywheel that uses analytics and personalized marketing to drive repeat visits. In Q3, same-store sales grew 5.7% systemwide, powered by 4.7% transaction growth. While many restaurant industry operators have been losing traffic, Dutch Bros is adding it. I'm a big fan of repeat customers on everyday purchases like coffee.
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The company is also rolling out an "order ahead" feature in 2026 and leaning into its food segment. Management's long-term ambition is to have 7,000 stores in operation, up from roughly 950 today. This is an early innings story hiding inside a mid-cap stock.
2. Cheesecake Factory: A casual dining stock that refuses to quit Among investors, the Cheesecake Factory (CAKE +6.17%) is one of the most consistently overlooked large-format casual dining operators. The stock has delivered total returns of roughly 28% over the past year. The company has generated strong multiyear returns in an environment where many sit-down dining establishments struggled. Its ability to command high average checks, sustain repeat visits, and expand internationally through its North Italia chain and an array of smaller brands it's testing through its Fox Restaurant Concepts subsidiary gives it a more diversified revenue base than the ticker name suggests.
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Beware, though: An executive at The Cheesecake Factory, Spero Alex, sold about $316,000 worth of stock last month, completely exiting his indirect holdings while retaining some restricted stock units. Insider selling -- especially a full exit -- can be a red flag.
3. Sweetgreen: Still early for most, which is the point Sweetgreen (SG +6.28%) stock is not for everyone. It's trading below $7, down roughly 85% from its 3-year high. The company is not profitable. But Sweetgreen is doing something structurally important. It is using its proprietary Infinite Kitchen, which is a robotic salad assembly system, to attack a key expense line: labor costs. Locations where it has installed the salad-making robots have demonstrated faster throughput and lower costs. The company is also planning 15 to 20 net new restaurant openings in 2026.
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With those facts in mind, RBC Capital's Logan Reich recently reiterated his buy rating on the stock. My take on Sweetgreen mirrors how I viewed Cava in the past and how I currently view Dutch Bros. The company is building a growing brand and is trying to build up a loyal base of repeat customers that should become increasingly valuable over time.
Granted, Sweetgreen is nowhere near as close in repeats as the likes of Cava, but if its robots can keep costs and overhead low, it has a clear path to more store expansion and potential upside in the stock. This stock is a buy for investors who are ready to hold it for the long term.
LOS ANGELES--(BUSINESS WIRE)--SweetgreenⓇ today announced the nationwide launch of Wraps, introducing the format to its menu for the first time with bold flavor and satisfying portions. Following a successful market test across locations in New York, the Midwest, and Los Angeles, Wraps will be available at Sweetgreen restaurants nationwide beginning May 6. The launch marks Sweetgreen's biggest category expansion beyond its chef-crafted bowls, salads, and plates, introducing a more portable form.
LOS ANGELES--(BUSINESS WIRE)--Sweetgreen, Inc. (NYSE: SG) (the “Company”), the mission-driven, next-generation restaurant and lifestyle brand that serves healthy food at scale, today announced financial results for its first fiscal quarter ended March 29, 2026. First quarter 2026 financial highlights For the first quarter of fiscal year 2026, compared to the first quarter of fiscal year 2025: Total revenue decreased 2.9% to $161.5 million. Same-Store Sales Change of (12.8%), versus (3.1%). Tota.
Sweetgreen, Inc. (SG - Free Report) came out with a quarterly loss of $0.27 per share versus the Zacks Consensus Estimate of a loss of $0.23. This compares to a loss of $0.21 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -20.00%. A quarter ago, it was expected that this company would post a loss of $0.31 per share when it actually produced a loss of $0.42, delivering a surprise of -35.48%.
Over the last four quarters, the company has not been able to surpass consensus EPS estimates.
Sweetgreen, which belongs to the Zacks Retail - Restaurants industry, posted revenues of $161.52 million for the quarter ended March 2026, missing the Zacks Consensus Estimate by 2.71%. This compares to year-ago revenues of $166.3 million. The company has not been able to beat consensus revenue estimates over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Sweetgreen shares have added about 1.6% since the beginning of the year versus the S&P 500's gain of 7.6%.
What's Next for Sweetgreen?While Sweetgreen has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Sweetgreen was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is -$0.13 on $193.77 million in revenues for the coming quarter and -$0.75 on $708.66 million in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Retail - Restaurants is currently in the bottom 26% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, Aramark (ARMK - Free Report) , has yet to report results for the quarter ended March 2026. The results are expected to be released on May 12.
This provider of food, facilities and uniform services is expected to post quarterly earnings of $0.47 per share in its upcoming report, which represents a year-over-year change of +38.2%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Aramark's revenues are expected to be $4.77 billion, up 11.5% from the year-ago quarter.
Sweetgreen, Inc. (SG - Free Report) reported $161.52 million in revenue for the quarter ended March 2026, representing a year-over-year decline of 2.9%. EPS of -$0.27 for the same period compares to -$0.21 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $166.02 million, representing a surprise of -2.71%. The company delivered an EPS surprise of -20%, with the consensus EPS estimate being -$0.23.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Sweetgreen performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Same-Store Sales Change: -12.8% versus the six-analyst average estimate of -10%.Ending restaurants: 285 compared to the 283 average estimate based on six analysts.Net New Restaurant Openings: 4 compared to the 3 average estimate based on four analysts.View all Key Company Metrics for Sweetgreen here>>>
Shares of Sweetgreen have returned +22.5% over the past month versus the Zacks S&P 500 composite's +11% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
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Over the last year, Sweetgreen's (SG +6.28%) results have gone from troubling to catastrophic.
The stock was riding high in late 2024 after posting strong growth, but in the last year or so, the fast casual salad chain's business has collapsed, and the stock has tumbled. It's now down 85% from its peak a year and a half ago.
The first-quarter results show how bad things have gotten for Sweetgreen. Comparable sales plunged 12.8% even as the company was lapping a quarter in which the LA wildfires hurt sales in its Southern California stores.
Overall revenue fell 2.9% to $161.5 million, which missed estimates at $163.6 million. Sweetgreen is supposed to be a growth stock, yet same-store sales are down double digits, and revenue is falling, even as it opens new stores. Average unit volume, or annual sales per store, fell from $2.91 million in the quarter a year ago to $2.57 million. Its customers are disappearing.
Sweetgreen's bottom-line numbers weren't any better. Restaurant-level profit margin fell from 17.9% to 10%, and its generally accepted accounting principles (GAAP) operating loss widened from $28.5 million to $34.3 million. The company reported a net profit, but that was only because of a gain on the sale of Spyce, the business that includes the Infinite Kitchen, though Sweetgreen retained the rights to use it.
For a quarter without any major economic shock, the numbers were terrible. However, the stock actually rose 2% on the news as management indicated the business was turning a corner.
Image source: Sweetgreen.
One reason for hope Despite the weak numbers, management's guidance showed that the worst part of its retrenchment may be over. For the full year, the company expects a same-store sales decline of 2%-4%, which basically implies flat comparable sales over the remainder of the year after the 12.8% decline in the first quarter.
The headwinds from its transition away from its Sweetpass+ subscription program to SG Rewards will begin to abate in the second quarter, and management was optimistic about its wraps, which it launched nationally last week after testing them starting in February. In the first quarter, it also faced a difficult comparison with the launch of Ripple Fries last year.
The wraps come at a lower price point than its bowls, which is key as consumer spending has been pressured and Sweetgreen has faced complaints about its high prices and lack of value. Management said that wraps "drove incremental traffic from new and returning guests, helped reengage lapsed customers, and showed strong repeat behavior." It also noted that momentum improved in April, though comparable sales were still down 8%. For the second quarter, the company is targeting comps to be down about 4%.
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Can Sweetgreen turn it around? Management maintained its full-year guidance numbers from the fourth-quarter report. While the forecast decline of 2%-4% isn't anything to celebrate, the company does see adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) improving to a profit of $1 million-$6 million, up from a loss in 2025.
Still, if the company can hit that guidance, it will signal that the business is at least moving in the right direction, and that's good news for investors. At this point, if there's a silver lining with the stock, it's that it's already fallen so far that the upside potential is there if it can mount a turnaround.
We'll have to wait a few more quarters to see if the new wraps pay off, but if comparable sales return to positive territory before the end of the year, the stock could rip higher.
Sweetgreen faces macroeconomic headwinds and weak sales performance amid a tough restaurant industry landscape. Despite a ~10% YTD gain and a ~50% rebound from February lows, SG remains down ~80% from 2024 highs. SG's competitiveness is deteriorating, raising questions about the sustainability of its recent share price recovery.
Sweetgreen (SG) remains under pressure, with Q1 2026 results showing declining revenue, negative same-store sales, and worsening margins. SG's demand weakness is primarily traffic-led, with over 11% fewer customer visits and unit sales volume down 14.7% year-over-year. Operational improvements, menu innovation (wraps), and pricing changes offer a potential path to stabilization, but recovery is not yet evident.
Sweetgreen SG rose 7.80% intraday after JPMorgan JPM upgraded the stock to Overweight from Neutral and raised its price target to $13 from $8, implying a 36% upside from current levels. The call came after a positive meeting with Sweetgreen's new leadership.
The upgrade centers on Sweetgreen's brand transformation. JPMorgan sees Sweetgreen's wraps as evidence that management has moved toward products with broader consumer appeal, away from the technology-heavy approach that defined earlier strategy. The firm also sees the new strategy as a potential catalyst for free cash flow improvement.
Sweetgreen shares are down 80% from their November 2024 peak of $45, but they have been gaining momentum, up over 43% year to date. Despite the upgrade, the consensus analyst rating on Sweetgreen remains Hold, with an average price target of $7.98.
LOS ANGELES--(BUSINESS WIRE)--Sweetgreen, Inc. (NYSE: SG), the mission-driven restaurant brand connecting more people to real food, today announced the appointment of Cindy Olsen as the Company's SVP, Chief Strategy Officer, a newly created role reporting to Jonathan Neman, Chief Executive Officer, effective immediately. Olsen will play a critical role in accelerating the Sweet Growth Transformation Plan by translating Sweetgreen's strategic priorities into long-term value creation. “Cindy is k.
Sweetgreen, Inc. (NYSE: SG), the mission-driven restaurant brand connecting more people to real food, today announced the appointment of Cindy Olsen as the Company’s SVP, Chief Strategy Officer, a newly created role reporting to Jonathan Neman, Chief Executive Officer, effective immediately. Olsen will play a critical role in accelerating the Sweet Growth Transformation Plan by translating Sweetgreen's strategic priorities into long-term value creation.
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260526220528/en/
“Cindy is known for her ability to drive profitable growth through a disciplined approach to strategic decision-making,” said Jonathan Neman, Co-Founder and CEO of Sweetgreen. “She is the perfect addition to the executive team at this juncture in our transformation, with deep consumer and restaurant industry experience and a track record of bringing rigor to investment decisions.”
“I’m thrilled to join Sweetgreen and its mission of connecting people to real food. I’ve long admired the brand and see a significant opportunity to increase enterprise value,” said Cindy Olsen, SVP, Chief Strategy Officer of Sweetgreen. “I look forward to working alongside others on the leadership team to accelerate the transformation plan driving near-term execution while building long-term profitable growth.”
In this role, Cindy will oversee corporate strategy and strategic communications. Her role bridges strategy, finance, and operations, with accountability for turning strategic priorities into measurable outcomes and clear communication for both internal and external stakeholders.
Cindy joins Sweetgreen from Chipotle Mexican Grill, where she served as Head of Investor Relations and Strategy. At Chipotle, Cindy worked closely with the executive team to evolve the long-term strategy and connect it to value creation, bridging the priorities of team members, guests, and shareholders. Prior to Chipotle, Cindy served as Managing Director and Equity Research Analyst at Nuveen and at Franklin Templeton, where she spent a total of 17 years covering public and private companies across the consumer sector, giving her a unique investor’s perspective on what makes exceptional brands truly enduring.
About Sweetgreen: Sweetgreen (NYSE: SG) is on a mission to build healthier communities by connecting people to real food. Since 2007, the brand has reimagined what fast food can be: fresh, flavorful, and built on real relationships with growers. Sweetgreen’s supply chain spans the country while remaining rooted in partnerships with local farmers. Today, Sweetgreen serves seasonal, chef-crafted menus across more than 285 locations nationwide, creating spaces where food, people, and purpose come together.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements regarding the company’s transformation plan and the role that Ms. Olsen will play with respect thereto. In some cases, you can identify forward-looking statements because they contain words or phrases such as “anticipate,” “are confident that,” “believe,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “opportunity,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “toward,” “will,” or “would,” or the negative of these words or other similar terms or expressions. You should not put undue reliance on any forward-looking statements. Forward-looking statements should not be read as a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved, if at all. Forward-looking statements are based on information available at the time those statements are made and are based on current expectations, estimates, forecasts, and projections as well as the beliefs and assumptions of management as of that time with respect to future events. These statements are subject to risks and uncertainties, many of which involve factors or circumstances that are beyond our control, that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements, including risks and uncertainties included in the reports we file with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the fiscal year ended December 28, 2025 and subsequently filed quarterly reports on Form 10-Q. Except as required by law, we do not undertake any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments, or otherwise.
To learn more about Sweetgreen, its menu, and its loyalty program, visit www.Sweetgreen.com. Follow @Sweetgreen on Instagram, Facebook, TikTok and X.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260526220528/en/
LOS ANGELES--(BUSINESS WIRE)--Sweetgreen, Inc. (NYSE: SG) today announced that the company is scheduled to present at the following investor conference: TD Cowen 10th Annual Future of the Consumer Conference on June 2, 2026. The company will participate in a fireside chat at the conference that will begin at 8:00 am ET. A live webcast and replay of the fireside chat will be available at investor.sweetgreen.com on the Events + Presentations page. About Sweetgreen: Sweetgreen (NYSE: SG) is on a m.
Shares of Sweetgreen (SG +6.28%) were moving higher today even as there was no major news out on the stock.
Instead, positive chatter on social media and investor bets that their new wraps would drive a comeback continued to push the stock higher.
As of 2:35 p.m. ET, shares were up 9.7%.
Image source: Sweetgreen.
Are wraps taking off? Sweetgreen stock is now up more than 50% since May 13, even as there's been no major news other than the national launch of four wraps, which are designed to give customers a lower-priced option as Sweetgreen seemed to be suffering from the perception of being overpriced.
One person on X said that a manager told her that wraps are making up close to half of the company's orders, a good sign that they are driving growth. The wraps seem to have generally received positive reviews online as well.
Additionally, Sweetgreen named Cindy Olsen as its Chief Strategy Officer yesterday, a new position in the company. While the market doesn't typically react to news like that, it does seem like a positive step in its turnaround.
Last week, JPMorgan Chase upgraded the stock to overweight after meeting with management, saying that its transformation was gaining momentum in part due to wraps.
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What's next for Sweetgreen We won't get an official update from Sweetgreen until its second-quarter report is due out in August. However, the company is scheduled to participate in a fireside chat at a TD Cowen conference next Tuesday, June 2 at 8:00 a.m. ET. The company made that announcement this morning, which also may have excited investors, as it has only done one other analyst conference this year.
Investors will likely want to tune in for that presentation as management should provide some color on the performance of its wraps and the overall business. Given the recent surge in the stock, it wouldn't be surprising to see shares of the fast-casual salad chain swing on the news.
JPMorgan Chase is an advertising partner of Motley Fool Money. Jeremy Bowman has positions in Sweetgreen. The Motley Fool has positions in and recommends JPMorgan Chase. The Motley Fool recommends Sweetgreen. The Motley Fool has a disclosure policy.
Shares of Sweetgreen (SG +6.28%) sank 25.1% last week, according to data from S&P Global Market Intelligence. A restaurant chain focused on salads and healthy bowls, Sweetgreen has struggled with customer traffic in recent years. The stock was up last month, but that has proven short-lived, and it is now falling back to earth this week.
Here's why Sweetgreen stock is sinking, and whether you should consider adding it to your portfolio.
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Analyst downgrade and short-lived bump in May Before talking about Sweetgreen's fall this week, we need to dive into why the stock was rising in May in the first place. Sweetgreen released a new menu item -- wraps -- which went semi-viral in hopes of luring customers back to its stores. While the jury is still out on whether the wraps will work as a new menu item, Wall Street decided to kill the rally.
UBS downgraded Sweetgreen stock from "buy" to "neutral" this week, citing concerns around customer traffic figures and weak margins. Sweetgreen is currently posting same-store sales growth of negative 12.8% and had a $34 million operating loss last quarter.
Image source: Getty Images.
Should you buy the dip? Sweetgreen is in the midst of a turnaround strategy for the health-focused restaurant brand. Its figures look terrible at the moment, and it has failed to generate a profit since going public in 2021.
With this context, it is hard to find a reason to buy the dip on Sweetgreen. Avoid adding this stock to your portfolio.
Brett Schafer has no position in any of the stocks mentioned. The Motley Fool recommends Sweetgreen. The Motley Fool has a disclosure policy.
LOS ANGELES--(BUSINESS WIRE)--Today, Sweetgreen announced the launch of its new summer seasonal menu, bringing sun-soaked flavor and peak-season ingredients to restaurants nationwide. The lineup includes Tomato Panzanella, available from June 9 through July 6, alongside the Picnic Bowl and Summer Market Bowl, both available from June 9 through August 10. The launch is part of Sweetgreen's Summer 2026 campaign, “You Wait for This,” which taps into a simple truth: people wait all year for summer.
Investors interested in stocks from the Retail - Apparel and Shoes sector have probably already heard of Victoria's Secret and Industria de Diseno Textil SA (IDEXY - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Victoria's Secret has a Zacks Rank of #2 (Buy), while Industria de Diseno Textil SA has a Zacks Rank of #3 (Hold) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that VSCO has an improving earnings outlook. But this is only part of the picture for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
VSCO currently has a forward P/E ratio of 17.08, while IDEXY has a forward P/E of 24.94. We also note that VSCO has a PEG ratio of 1.03. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. IDEXY currently has a PEG ratio of 3.40.
Another notable valuation metric for VSCO is its P/B ratio of 5.26. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, IDEXY has a P/B of 8.37.
Based on these metrics and many more, VSCO holds a Value grade of A, while IDEXY has a Value grade of D.
VSCO stands above IDEXY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that VSCO is the superior value option right now.
Net Sales Increased 15% to $1.560 Billion, Exceeding GuidanceOperating Income Increased to $76 Million; Adjusted Operating Income of $80 Million Exceeds GuidanceVS&Co Raises Full Year 2026 Net Sales Guidance to $7.030-$7.130 Billion and Adjusted Operating Income Guidance to $550-$580 Million REYNOLDSBURG, Ohio, June 02, 2026 (GLOBE NEWSWIRE) -- Victoria’s Secret & Co. (“VS&Co” or the “Company”) (NYSE: VSXY) today reported financial results for the first quarter ended May 2, 2026.
Hillary Super, VS&Co Chief Executive Officer, said, “We delivered a very strong start to 2026, exceeding top- and bottom-line guidance and continuing the momentum we built in the back half of last year. We drove double-digit sales growth across Victoria’s Secret, PINK, and Beauty, as well as our fourth consecutive quarter of positive comps. Our customer responded strongly to our product innovation, emotionally resonant storytelling, and distinct brand projection, driving double-digit growth in new customer acquisition, increased regular-price selling, and broad-based strength across categories, channels, and geographies. These results reflect the progress we are making against our Path to Potential strategy as we continue to strengthen customer connection, build brand heat, and drive sustainable long-term growth.”
Ms. Super concluded, “We are increasingly confident in the trajectory of the business. Our teams are executing with greater precision and agility, Victoria’s Secret, PINK, and Beauty are gaining cultural relevance and expanding their customer files, and we have a strong pipeline of product launches, partnerships, and brand moments ahead. We believe we are well positioned to continue building momentum and creating shareholder value.”
Scott Sekella, VS&Co Chief Financial and Operating Officer, said, “Our first quarter results reflect disciplined execution across the business, including broad-based gross margin improvement, driven by higher regular-price selling, reduced promotions, and leveraging our buying and occupancy expenses, all despite tariff headwinds. We also delivered SG&A leverage versus last year’s first quarter and EPS growth that outpaced operating income growth. Given our strong first quarter performance and continued momentum in the business, we are raising our fiscal 2026 outlook and remain confident in our ability to drive profitable growth.”
First Quarter 2026 Results
The Company reported net sales of $1.560 billion for the first quarter of 2026, an increase of 15% compared to net sales of $1.353 billion for the first quarter of 2025 and above the previously communicated guidance range of $1.490 billion to $1.525 billion. Total comparable sales for the first quarter of 2026 increased 13%.
The Company reported operating income for the first quarter of 2026 of $76 million compared to operating income of $20 million in the first quarter of 2025. Net income was $48 million, or $0.56 per diluted share, for the first quarter of 2026 compared to net loss of $2 million, or $0.02 per diluted share, for the first quarter of 2025.
Excluding the impact of the adjusted items described at the conclusion of this press release, adjusted operating income for the first quarter of 2026 was $80 million, which was significantly above the previously communicated guidance range of $32 million to $42 million. This result compares to last year’s first quarter adjusted operating income of $32 million. Adjusted net income for the first quarter of 2026 was $51 million, or $0.60 per diluted share, which was significantly above the previously communicated guidance range of $0.20 to $0.30 per diluted share. This result compares to last year’s first quarter adjusted net income of $7 million, or $0.09 per diluted share.
Capital Allocation
The Company repurchased 2.2 million shares of the Company’s common stock for $100 million at an average price of $45.27 per share during the first quarter of 2026. The shares were repurchased under the previously announced share repurchase program approved by the Company’s Board of Directors in March 2024 which authorized the repurchase of up to $250 million of the Company’s common stock. As of May 2, 2026, $150 million remained authorized for purchase.
Second Quarter and Full Year 2026 Outlook
The Company is forecasting net sales for the second quarter of 2026 to be in the range of $1.590 billion to $1.615 billion compared to net sales of $1.459 billion for the second quarter of 2025. At this forecasted level of net sales, operating income for the second quarter of 2026 is expected to be in the range of $90 million to $100 million compared to adjusted operating income of $55 million for the second quarter of 2025.
The Company is now forecasting fiscal year 2026 net sales to be in the range of $7.030 billion to $7.130 billion, an increase compared to the previously communicated guidance range of $6.850 billion to $6.950 billion, and compared to net sales of $6.553 billion in fiscal year 2025. At this forecasted level of net sales, the Company is now forecasting adjusted operating income for fiscal year 2026 to be in the range of $550 million to $580 million, an increase compared to previously communicated guidance range of $430 million to $460 million, and compared to fiscal year 2025 adjusted operating income of $403 million.
Adjusted Financial Information
At the conclusion of this press release, the Company has included a reconciliation of reported to adjusted results.
Quarterly Earnings Conference Call
Victoria’s Secret & Co. will conduct its first quarter earnings call at 8:30 a.m. Eastern on Tuesday, June 2, 2026. To listen, call 1-800-619-9066 (international dial-in number: 1-212-519-0836); passcode 5358727. For an audio replay, call 1-800-839-2204 (international replay number: 1-203-369-3032); passcode 2485654 or log onto www.victoriassecretandco.com. The materials accompanying the earnings call have been posted on the Investors section of the Company’s website. The audio replay will be available approximately two hours after the conclusion of the call.
About Victoria’s Secret & Co.
Victoria’s Secret & Co. (NYSE: VSXY) is a specialty retailer of modern, fashion-inspired collections including signature bras, panties, lingerie, sleepwear, apparel, sport and swim as well as award-winning prestige fragrances and body care. VS&Co is comprised of market leading brands, Victoria’s Secret and PINK, that strive to inspire confidence, spark joy and celebrate sexy. Additionally, Adore Me, our digital intimates brand, serves women across budgets and lifestyles. We are committed to empowering our more than 30,000 associates across a global footprint of approximately 1,420 retail stores in approximately 70 countries.
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995
We caution that any forward-looking statements (as such term is defined in the U.S. Private Securities Litigation Reform Act of 1995) contained in this press release or made by us, our management, or our spokespeople involve risks and uncertainties and are subject to change based on various factors, many of which are beyond our control. Accordingly, our future performance and financial results may differ materially from those expressed or implied in any such forward-looking statements, and any future performance or financial results expressed or implied by such forward-looking statements are not guarantees of future performance. Forward-looking statements include, without limitation, statements regarding our future operating results, the implementation and impact of our strategic plans, and our goals, intentions, beliefs and expectations. Words such as “estimate,” “commit,” “will,” “target,” “forecast,” “goal,” “project,” “plan,” “believe,” “seek,” “strive,” “expect,” “anticipate,” “intend,” “continue,” “potential” or the negative of these words and any similar expressions are intended to identify forward-looking statements. Risks associated with the following factors, among others, could affect our results of operations and financial performance and cause actual results to differ materially from those expressed or implied in any forward-looking statements:
general economic conditions, inflation, and changes in consumer confidence and consumer spending patterns;market disruptions including pandemics or significant health hazards, severe weather conditions, natural disasters, terrorist activities, financial crises, political crises or other major events, or the prospect of these events;uncertainty in the global trade environment, including the imposition or threatened imposition of tariffs or other trade policies;our ability to successfully implement our strategic plan;difficulties arising from changes and turnover in company leadership or other key positions;our ability to attract, develop and retain qualified associates and manage labor-related costs;our dependence on traffic to our stores and the availability of suitable store locations on satisfactory terms;our ability to successfully operate and expand internationally and related risks;the operations and performance of our franchisees, licensees, wholesalers and joint venture partners;our ability to successfully operate and grow our direct channel business;our ability to protect our reputation and the image and value of our brands;our ability to attract customers with marketing, advertising and promotional programs;the highly competitive nature of the retail industry and the segments in which we operate;consumer acceptance of our products and our ability to manage the life cycle of our brands, remain current with fashion trends, and develop and launch new merchandise and product lines successfully;our ability to integrate acquired businesses and realize the benefits and synergies sought with such acquisitions;our ability to incorporate artificial intelligence and other emerging technologies into our business operations successfully and ethically while effectively managing the associated risks;our ability to source materials and produce, distribute and sell merchandise on a global basis, including risks related to: political instability and geopolitical conflicts;environmental hazards and natural disasters;significant health hazards and pandemics;delays or disruptions in shipping and transportation and related pricing impacts;foreign currency exchange rate fluctuations; anddisruption due to labor disputes; our geographic concentration of production and distribution facilities in Southeast Asia and central Ohio;the ability of our vendors to manufacture and deliver products in a timely manner, meet quality standards and comply with applicable laws and regulations;fluctuations in freight, product input and energy costs;our and our third-party service providers’ ability to implement and maintain information technology systems and to protect associated data and system availability;our ability to maintain the security and privacy of customer, associate, third-party and company information;stock price volatility;shareholder activism matters;our ability to maintain our credit ratings;our ability to comply with legal and regulatory requirements; andlegal, tax, trade and other regulatory matters. All forward-looking statements are made only as of the date of this press release. Except as may be required by law, we assume no obligation and do not intend to make publicly available any update or other revisions to any of the forward-looking statements contained in this press release to reflect circumstances existing after the date of this press release or to reflect the occurrence of future events, even if experience or future events make it clear that any expected results expressed or implied by those forward-looking statements will not be realized. Additional information regarding these and other factors can be found in “Item 1A. Risk Factors” in our 2025 Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 20, 2026.
Total Net Sales (Millions):
First
Quarter
2026 First
Quarter
2025 %
Inc/
(Dec) Stores – North America$802.8 $721.3 11.3% Direct1 469.4 433.2 8.4% International2 287.4 198.4 44.9% Total$1,559.6 $1,352.9 15.3% 1 –Beginning in the third quarter of 2025, direct sales in the European Union are reported in our International channel. Prior to the third quarter of 2025, direct sales in the European Union are reported in our Direct channel. Direct sales in the European Union reported in the International channel were $17 million in the first quarter of 2026.
2 – Results include consolidated joint venture sales in China, royalties associated with franchise partners’ sales, wholesale sales, and beginning in the third quarter of 2025 direct sales in the European Union. Prior to the third quarter of 2025, direct sales in the European Union are reported in our Direct channel. Direct sales in the European Union reported in the International channel were $17 million in the first quarter of 2026.
Comparable Sales Increase (Decrease):
First
Quarter
2026 First
Quarter
2025 Stores and Direct113% (1%) Stores Only210% (1%) NOTE: Please refer to our filings with the Securities and Exchange Commission for further discussion regarding our comparable sales calculation.
1 – Results include company-operated stores in the U.S. and Canada, consolidated joint venture stores in China and direct sales.
2 – Results include company-operated stores in the U.S. and Canada and consolidated joint venture stores in China.
Total Stores:
Stores at
1/31/26OpenedClosedStores at
5/2/26 Company-Operated: U.S.7663(2)767Canada24--24Subtotal Company-Operated7903(2)791 China Joint Venture: Beauty & Accessories120-(2)18Full Assortment453(2)46Subtotal China Joint Venture653(4)64 Partner-Operated: Beauty & Accessories3507(8)349Full Assortment2126(2)216Subtotal Partner-Operated56213(10)565 Adore Me3--3 Total1,42019(16) 1,423 1 – Includes five partner-operated stores at 5/2/26.
VICTORIA'S SECRET & CO.
CONSOLIDATED STATEMENTS OF INCOME (LOSS)
THIRTEEN WEEKS ENDED MAY 2, 2026 AND MAY 3, 2025
(Unaudited)
(In thousands except per share amounts)
2026 2025 Net Sales$1,559,591 $1,352,949 Costs of Goods Sold, Buying and Occupancy (974,643) (878,724)Gross Profit 584,948 474,225 General, Administrative and Store Operating Expenses (508,626) (454,440)Operating Income 76,322 19,785 Interest Expense (14,933) (17,089)Other Income 3,076 2,957 Income Before Income Taxes 64,465 5,653 Provision for Income Taxes 7,548 2,878 Net Income 56,917 2,775 Less: Net Income Attributable to Noncontrolling Interest 9,226 4,431 Net Income (Loss) Attributable to Victoria's Secret & Co.$47,691 $(1,656)Net Income (Loss) Per Diluted Share Attributable to Victoria's Secret & Co. $0.56 $(0.02)Weighted Average Shares Outstanding1 84,850 79,468 1- Reported Weighted Average Shares Outstanding in the first quarter of 2025 reflects basic shares due to the Net Loss. VICTORIA'S SECRET & CO.NON-GAAP FINANCIAL INFORMATIONTHIRTEEN WEEKS ENDED MAY 2, 2026 AND MAY 3, 2025(Unaudited)(In thousands except per share amounts)In addition to our results provided in accordance with GAAP, provided below are non-GAAP financial measures that present operating income, net income (loss) attributable to Victoria's Secret & Co. and net income (loss) per diluted share attributable to Victoria's Secret & Co. on an adjusted basis for the reported periods provided in this release, which remove certain non-recurring, infrequent or unusual items that we believe are not indicative of the results of our ongoing operations due to their size and nature. The intangible asset amortization excluded in the first quarter of 2025 from these non-GAAP financial measures is excluded because the amortization, unlike the related revenue, is not affected by operations of any particular period unless an intangible asset becomes impaired or the estimated useful life of an intangible asset is revised. We use adjusted financial information as key performance measures of our results of operations for the purpose of evaluating performance internally. These non-GAAP measurements are not intended to replace the presentation of our financial results in accordance with GAAP. Instead, we believe that the presentation of adjusted financial information provides additional information to investors to facilitate the comparison of past and present operations. Further, our definition of non-GAAP financial measures may differ from similarly titled measures used by other companies. The tables below reconcile the most directly comparable GAAP financial measure to each non-GAAP financial measure.
First Quarter 2026 2025 Reconciliation of Reported to Adjusted Operating Income Reported Operating Income - GAAP $76,322 $19,785 Organizational Restructuring and Other One-time Items (a) 3,761 5,597 Amortization of Intangible Assets (b) - 6,284 Adjusted Operating Income $80,083 $31,666 Reconciliation of Reported to Adjusted Net Income (Loss) Attributable to Victoria's Secret & Co. Reported Net Income (Loss) Attributable to Victoria's Secret & Co. - GAAP $47,691 $(1,656)Organizational Restructuring and Other One-time Items (a) 3,761 5,597 Amortization of Intangible Assets (b) - 6,284 Tax Effect of Adjusted Items (903) (3,011)Adjusted Net Income Attributable to Victoria's Secret & Co. $50,549 $7,214 Reconciliation of Reported to Adjusted Net Income (Loss) Per Diluted Share Attributable to Victoria's Secret & Co.Reported Net Income (Loss) Per Diluted Share Attributable to Victoria's Secret & Co. - GAAP $0.56 $(0.02)Organizational Restructuring and Other One-time Items (a) 0.04 0.05 Amortization of Intangible Assets (b) - 0.06 Adjusted Net Income Per Diluted Share Attributable to Victoria's Secret & Co. $0.60 $0.09 Adjusted results exclude the following items:
a) In the first quarter of 2026 and 2025, we recognized pre-tax net expense of $3.8 million and $5.6 million ($2.9 million and $4.2 million net of tax expense of $0.9 million and $1.4 million, respectively), $2.0 million and $1.8 million included in buying and occupancy expense and $1.8 million and $3.8 million included in general, administrative and store operating expense, related to activities to continue to restructure our executive leadership team and organizational structure, as well as other one-time items.
b) In the first quarter of 2025, we recognized amortization expense of $6.3 million ($4.7 million net of tax expense of $1.6 million) included in general, administrative and store operating expense, related to our definite-lived intangible assets.
VICTORIA'S SECRET & CO. FORECASTED NON-GAAP FINANCIAL INFORMATION FORECASTED FULL YEAR ENDING JANUARY 30, 2027 (Unaudited) (In millions except per share amounts) Forecasted
Full Year
2026
Reconciliation of Forecasted GAAP to Adjusted Operating Income Forecasted Operating Income - GAAP$546 to 576 Organizational Restructuring and Other One-time Item (a) 4 Forecasted Adjusted Operating Income$550 to 580 Reconciliation of Forecasted GAAP to Adjusted Net Income Attributable to Victoria's Secret & Co. Forecasted Net Income Attributable to Victoria's Secret & Co. - GAAP$362 to 382 Organizational Restructuring and Other One-time Item (a) 4 Tax Effect of Adjusted Items (1)Forecasted Adjusted Net Income Attributable to Victoria's Secret & Co.$365 to 385 Reconciliation of Forecasted GAAP to Adjusted Net Income Per Diluted Share Attributable to Victoria's Secret & Co. Forecasted Net Income Per Diluted Share Attributable to Victoria's Secret & Co. - GAAP$4.31 to 4.56 Organizational Restructuring and Other One-time Item (a) 0.04 Forecasted Adjusted Net Income Per Diluted Share Attributable to Victoria's Secret & Co.$4.35 to 4.60 Adjusted forecasted results exclude the following item:
a) In the first quarter of 2026, we recognized pre-tax net expense of $3.8 million ($2.9 million net of tax expense of $0.9 million), $2.0 million included in buying and occupancy expense and $1.8 million included in general, administrative and store operating expense, related to activities to continue to restructure our executive leadership team and organizational structure, as well as another one-time item.
Shoppers may be feeling gloomy about high prices at the pump, but they're still shelling out for new bras and underwear at Victoria's Secret.
The lingerie retailer raised its full-year guidance on Tuesday after blowing past earnings estimates in its fiscal first quarter, citing lower tariff costs and more customers willing to spend full price on its products. Shares of Victoria's Secret closed 47% higher.
There was "very consistent, double-digit [sales] increases across Victoria's Secret, Pink, beauty channels, digital, stores and international, all very positive," CEO Hillary Super told CNBC in an interview. "Supercharging bras being one of our most important initiatives, double-digit [comparable sales growth] there, and I think the loyalty that bras creates and the anchor that it is in the business is just so important."
Super added the company grew sales with "significantly" fewer promotions and gained market share during the quarter, particularly with shoppers ages 18 to 24.
During the first quarter, some retailers saw strong growth that they attributed partially to higher tax refunds. While Victoria's Secret finance chief Scott Sekella said some customers used that extra stimulus to go shopping at its stores, it was a "normal amount," and trends have remained consistent so far this quarter, even with tax refunds having dried up for many people.
Victoria's Secret is now expecting full-year sales to be between $7.03 billion and $7.13 billion, up from a previous range of between $6.85 billion to $6.95 billion and well ahead of estimates of $6.99 billion, according to LSEG.
The company also raised its full-year guidance for adjusted opening income by more than $100 million. It's now expecting adjusted operating income to be between $550 million and $580 million, up from a previous range of between $430 million to $460 million.
Sekella said the company hiked its outlook because better-than-expected sales led to stronger leverage on fixed costs, and it also factored in lower tariff rates now that many of President Donald Trump's sweeping duties have been ruled illegal.
"All of this is predicated on the Q1 that we had, the momentum we see into Q2 and how we feel about our back half launches," said Sekella.
The company also issued rosy guidance for the current quarter, even as some peers released conservative outlooks as they monitor whether consumers pull back on spending without the boost from tax refunds. It said it's expecting sales to be between $1.59 billion and $1.62 billion, beating expectations of $1.56 billion, according to LSEG.
Here's how Victoria's Secret performed during the fiscal first quarter compared with what Wall Street was anticipating, based on a survey of analysts by LSEG:
Earnings per share: 60 cents adjusted vs. 30 cents expectedRevenue: $1.56 billion vs. $1.52 billion expectedThe company's reported net income for the three-month period that ended May 2 was $47.7 million, or 56 cents per share, compared with a loss of $1.66 million, or 2 cents per share, a year earlier. Excluding one-time restructuring costs, Victoria's Secret saw earnings per share of 60 cents.
Sales rose to $1.56 billion, up about 15% from $1.35 billion a year earlier. Comparable sales, including stores and e-commerce revenue, grew 13%, beating expectations of 11.4%, according to StreetAccount.
Victoria's Secrets' results represent a new milestone for the company. While Super has been with the retailer for almost two years, she said the executive team she put in place is reaching their one-year anniversary and the results of the turnaround they've been working on are coming to life.
"Once you hit that year you start compounding your contributions, because you see the patterns, you see where things are going, and you're able to really, I think, have a multiplier effect in the work you do," said Super. "We are early innings. I think we very much know where we're going, and if anything, as we build these strategies out, and as we continue to grow these businesses, we see new opportunities, and so it's a matter of staging those and making sure that we are getting all the juice for the squeeze of the things that we are doing."
During the quarter, Super said the company saw sales increases across all income cohorts but crucially, the most growth came from those making under $50,000 annually and those making more than $200,000 annually – showing that its products are what's winning, not price or discounts.
Since Super took over, she's worked to reconnect Victoria's Secret with its core identity — a sexy lingerie brand that isn't sexy at the expense of comfort but offers products that are more emotional than utilitarian. She's worked to grow its beauty business, reignite the Pink brand and build back its bra line, which serves as an anchor for the overall company.
Over the last few years, Victoria's Secret has faced a range of savvy, upstart competitors, shifting views over beauty standards and criticisms over perpetuating unrealistic stereotypes, particularly through its models.
Super has worked to unwind some of those issues, while also building a business that can win over a new generation of shoppers.
One thing that's helped the company is its large store footprint in malls, which is something it had been criticized for in the past.
"We are very, very good at that in real-life experience, and our stores have proven to be a competitive advantage," said Super. "They are a place where she wants to be and wants to have an experience that's for her."
Victoria's Secret & Co. (NYSE:VSCO) reported much stronger-than-expected first quarter results, with earnings and revenue topping Wall Street estimates and...
The lingerie and apparel retailer swung to a $47.7 million profit in the first quarter from a $1.7 million loss a year earlier, and raised its full-year outlook.
Victoria's Secret came out with quarterly earnings of $0.6 per share, beating the Zacks Consensus Estimate of $0.29 per share. This compares to earnings of $0.09 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +108.70%. A quarter ago, it was expected that this retailer of lingerie, pajamas and beauty products would post earnings of $2.48 per share when it actually produced earnings of $2.77, delivering a surprise of +11.69%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Victoria's Secret, which belongs to the Zacks Retail - Apparel and Shoes industry, posted revenues of $1.56 billion for the quarter ended April 2026, surpassing the Zacks Consensus Estimate by 2.08%. This compares to year-ago revenues of $1.35 billion. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Victoria's Secret shares have added about 0.2% since the beginning of the year versus the S&P 500's gain of 11%.
What's Next for Victoria's Secret?While Victoria's Secret has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Victoria's Secret was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.42 on $1.57 billion in revenues for the coming quarter and $3.49 on $6.96 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Retail - Apparel and Shoes is currently in the top 45% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, Stitch Fix (SFIX - Free Report) , has yet to report results for the quarter ended April 2026. The results are expected to be released on June 10.
This online clothing styling service is expected to post quarterly loss of $0.06 per share in its upcoming report, which represents no change from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 1.3% higher over the last 30 days to the current level.
Stitch Fix's revenues are expected to be $333.07 million, up 2.5% from the year-ago quarter.
$20 looks like a good fit for The Gap after XL earnings beatVictoria's Secret & Co. NYSE: VSCO reported a stronger-than-expected first quarter of fiscal 2026, with management citing broad-based growth across Victoria's Secret, PINK and Beauty, stronger customer acquisition and benefits from a more disciplined promotional strategy.
Chief Executive Officer Hillary Super said the company’s momentum from the second half of 2025 continued into the quarter ended May 2, 2026. Total comparable sales increased 13%, marking the company’s fourth consecutive quarter of positive comps, while total sales rose 15%.
Get VSXY alerts:
Nordstrom's Earnings Beat, A Rally In The Making“The strength was broad-based across the business,” Super said. She said Victoria’s Secret, PINK and Beauty each delivered double-digit sales growth, with gains across channels and geographies.
Chief Financial and Operating Officer Scott Sekella said first-quarter net sales were $1.56 billion, up $207 million from the prior year. Adjusted operating income rose 153% to $80 million, and adjusted earnings per share increased more than 500% to $0.60. Management said those results exceeded the high end of the company’s guidance for both sales and profit.
Sales Growth Driven by Bras, PINK and Beauty Victoria's Secret Turnaround Went Stealthy, Financials ShowSuper said the company is a little more than a year into its “Path to Potential” strategy, which focuses on strengthening bra authority, recommitting to PINK, growing Beauty and evolving brand marketing and go-to-market execution.
In the bra business, sales grew in the low double digits, with strength across silhouettes and price tiers. Super said bras created a halo effect across the Victoria’s Secret brand, with panties and sleep each up in the mid-teens. She said the company has spent the past 18 months refining its top 10 bra frames, improving fit, comfort and styling while creating room for innovation in areas such as bra tops, bralettes and online bras.
Super highlighted the relaunch of the Signature collection, including the company’s top-selling T-shirt bra, and the launch of the Invisible Strapless collection, which was supported by a campaign starring Angel Reese.
PINK delivered low double-digit growth in the quarter, driven by strength in core apparel and intimates, improved regular-price selling and stronger engagement with younger customers. Super said the brand is increasingly standing on its own and is benefiting from newness, fashion-led assortments and cultural relevance.
“We are really studying her deeply to understand how she lives her life, what the moments that matter are, and what's important to her in a brand,” Super said during the question-and-answer session, referring to PINK’s focus on the 18-to-24-year-old customer.
Beauty also posted low double-digit growth, led by fine fragrance and the Mist collection. Super said the company is integrating Beauty more closely into broader brand campaigns and using more targeted marketing around key gifting periods.
Valentine’s Day and Marketing Campaigns Support Momentum Management pointed to Valentine’s Day as one of the quarter’s major brand moments. Super said the company delivered double-digit growth across Victoria’s Secret, PINK and Beauty during the Valentine’s Day period, with positive comps in key gifting categories. She said February growth was the first for the company in eight years.
For Victoria’s Secret, the company used a campaign with Hailey Bieber and a more fashion-forward assortment. For PINK, it partnered again with the K-pop group TWICE following the response to the group’s appearance at the fashion show. Super said the campaign drove more than 2 billion impressions during the Valentine’s Day period.
The company also launched “Angels Among Us,” a nationwide search for the next Angel. Super said more than 100,000 aspiring Angels participated in the application process, generating more than 1.7 billion media impressions. The company plans to share participants’ stories in the months leading up to its fashion show this fall.
Super said customer engagement is rising across channels, with the company seeing double-digit gains in new customer acquisition and file growth across age and income cohorts. She said the strongest customer growth came from households earning under $50,000 annually and over $200,000.
Margins Benefit From Less Promotion Sekella said the company’s “promo detox” strategy continued to support margins. First-quarter adjusted gross margin dollars rose 23% to $587 million, while adjusted gross margin rate expanded 240 basis points to 37.6% from 35.2% a year earlier. He said the improvement came despite about $14 million, or 90 basis points, of incremental net tariff pressure.
The margin gains were driven by higher merchandise margins, a greater mix of regular-price selling, fewer promotions and leverage on buying and occupancy expenses from higher sales, Sekella said. Average unit retail was up in the mid-single digits in the quarter.
Adjusted SG&A expenses were $507 million, with the SG&A rate improving slightly to 32.5% from 32.8% a year earlier. Sekella said expense leverage was aided by the sales beat and ongoing expense management, partly offset by higher incentive compensation and investments in store labor and customer-facing initiatives.
The company repurchased 2.2 million shares for $100 million during the quarter at an average price of about $45 per share. Sekella said $150 million remained under the company’s $250 million repurchase authorization approved in March 2024.
Company Raises Fiscal 2026 Outlook Victoria’s Secret raised its full-year outlook following the first-quarter outperformance and continued momentum into the second quarter. The company now expects fiscal 2026 net sales of $7.03 billion to $7.13 billion, up from prior guidance of $6.85 billion to $6.95 billion. That represents expected growth of 7% to 9% compared with fiscal 2025 net sales of $6.553 billion.
Adjusted operating income is now expected to range from $550 million to $580 million, up $120 million at both ends of the prior range. Sekella said $55 million of the increase reflects underlying business strength and top-line expansion, while $65 million reflects more favorable net tariff impacts than previously expected.
The company raised its adjusted earnings-per-share forecast to $4.35 to $4.60, compared with prior guidance of $3.20 to $3.45 and fiscal 2025 adjusted EPS of $3.00.
For the second quarter, management expects net sales of $1.59 billion to $1.615 billion, representing growth of about 9% to 11% from the prior year. Operating income is expected to range from $90 million to $100 million, and adjusted EPS is expected to be $0.65 to $0.75.
International Business and Ticker Change Sekella said international sales grew 45% in the first quarter, including mid-teens retail comp growth. Adjusting for a reporting shift tied to European digital sales, international sales grew 36%. Management said China remained a key driver, particularly in digital channels supported by social selling.
Super also said the company began trading under a new ticker symbol, VSXY, on the day of the call. She said the ticker reflects the company’s evolution and its focus on its brand identity.
During the Q&A session, management addressed several topics, including marketing investment, customer retention, Beauty growth, sports bras and tariffs. Sekella said the company is assuming 10% tariffs through the end of July and a return to 20% tariff rates for the rest of the year, while also noting that gross tariffs remain a headwind even with mitigation efforts.
Super said the company’s focus remains on product, marketing and customer experience. “More people are engaging with our brands, talking about our brands, and participating in our brand moments,” she said. “That growing engagement is creating a multiplier effect across the business.”
About Victoria's Secret & Co. NYSE: VSCOVictoria's Secret & Co is a leading designer, manufacturer and marketer of intimate apparel, beauty products and accessories for women. The company operates a portfolio of brands that includes Victoria's Secret, renowned for its lingerie, bras and sleepwear; PINK, a line targeting younger consumers with activewear and lifestyle products; and Victoria's Secret Beauty, offering fragrances, cosmetics and personal care items. Products are sold through retail stores as well as direct-to-consumer channels, including e-commerce platforms and mobile applications.
The origins of Victoria's Secret date back to 1977, when founders Roy and Gaye Raymond opened the first store in San Francisco.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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Victoria’s Secret reported first-quarter earnings before the opening bell on Tuesday. (Gabby Jones/Bloomberg)
With rising prices at the gas pump and elsewhere, consumers might be expected to cut back on their discretionary spending. But it appears Victoria’s Secret is one place customers haven’t been doing so.
Key Takeaways GOOGL Borrows $80B to Buy More AIJOLTS Data Expected In-Line with March: 6.9M OpeningsDG & VSCO Post Q1 Earnings, PANW & ULTA After the Close Tuesday, June 2nd, 2026
Pre-market futures are taking a breather on the major indexes this morning, all but the small-cap Russell 2000, which has popped its head into the green after lagging the past couple trading sessions. The Dow is -225 points at this hour, -0.44%, the S&P 500 -17 points, -0.23% and the Nasdaq -45, -0.15%. The Russell is +1 point, +0.05%.
AI Bull Run Seeing Richest Companies Borrowing to Buy More
We won’t call this a trend just yet, but following NVIDIA’s (NVDA - Free Report) recent announcement that they are loaning companies the capital to buy their AI chips, this morning we see Alphabet (GOOGL - Free Report) raising $80 billion to finance more AI investment. In terms of customer-facing companies successfully employing AI, Alphabet may have no competition here in the first half of 2026.
Half of this $80 billion will consist of at-the-market moves on Class A and C shares; $10 billion will come from private funding via Berkshire Hathaway (BRK.B - Free Report) . The company said AI demand is exceeding its current available supply. Keep in mind, Alphabet is a $4.5 TRILLION company by market cap; that it feels it needs to go to debt markets to raise funds for AI is, let’s say, curious. It might be important to see if other tech giants follow suit.
Q1 Earnings Season Nearly Tapped: DG, VSCO Report
Ahead of today’s open, Dollar General (DG - Free Report) reported mixed Q1 results. Earnings of $2.00 per share outpaced the Zacks consensus of $1.89, while revenues of $10.79 billion came in -0.33% below projections. However, the company raised full-year forecasts, and shares are up +5% on the news (after tumbling -17% year to date). For more on DG’s earnings, click here.
Here’s a blast from the past: Victoria’s Secret reported Q1 numbers this morning, posting earnings of $0.60 per share versus expectations of $0.29 — for a booming +108.7% positive surprise. Revenues of $1.56 billion in the quarter outperformed estimates by +2%. This is actually the 10th-straight earnings beat for the women’s intimates firm, and the company raised revenue guidance. For more on VSCO’s earnings, click here.
After today’s close, cybersecurity major Palo Alto Networks (PANW - Free Report) is expected to report +1.28% gains on earnings year over year, and +28.58% on revenues. Ulta Beauty (ULTA - Free Report) is anticipated to post +2.99% earnings growth on +9.28% in revenues, year over year. The cosmetic supply giant’s average earnings beat over the past four quarters is +11%.
JOLTS Numbers for April After the Open
At 10am ET, the latest Job Openings and Labor Turnover Survey (JOLTS) report comes out. Expectations are for job openings to remain in line with the prior month, around 6.9 million. (The near-term low was 6.55 million in December of 2025, and the high was 7.31 million in May of last year.) Last time around, a big drop in Professional/Business Services jobs (-318K year over year) was key; of the four main regions, only the Northeast saw job gains in March.
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Published in artificial-intelligence earnings staffing
