We view shares as overvalued, and we plan to increase our fair value estimate.
We think the company's strength in fragrance more than offsets weakness in lingerie.
Healthy margins trump the added cyclicality resulting from recent deals.
We plan to modestly lift our fair value estimate but think full earnings potential may be constrained by pricing competition.
Closing stores and spinning off Old Navy will allow the firm to better capitalize on consumer trends and nurse the namesake business back to health.
The wide-moat firm faces headwinds, but it is best positioned to continue to win modest share.
We think the shares are undervalued, but the road to improvement could be rocky.
The toymaker was hit by a decline in retail sales, but we see improvement after the first half of the year.
Earnings declines are slowing but profits remain depressed at the no-moat retailer.
Despite slower yield growth, we expect operating cash flow to still rise.
We're not changing our fair value estimate as the firm faces a highly competitive retail industry.
Even with a housing slowdown, the wide-moat retailer is well positioned for continued growth.
Despite the Frances holding more than 70% of the voting power to affect the transaction, we believe there are a few mitigating factors that could delay a formal bid.
It isn't all good news, but we think the benefits outweigh the risks.
Despite company commentary suggesting that yield growth is slowing, nothing warranted imminent concern about Carnival's ability to drive demand creation or manage its cost structure.
Companies offering experience, specialization, and convenience continue to take share of consumers' wallets.
Quarterly results indicate the turnaround remains stalled with no catalyst to drive earnings in sight.
We expect the shares will trend lower in the long term, given growth and business opportunities.
Same-store sales continue to rise at Old Navy and decline at Gap.
Near-term results crimp operating income, but our long-term forecast remains intact.
Efficient marketing, tactical promotions, and smart partnerships have motivated consumers to participate in the narrow-moat firm's umbrella of brands.
New CEO Marvin Ellison is altering the wide-moat business by winding down the Orchard Supply brand and introducing an inventory rationalization plan.
Despite good second-quarter results, we still anticipate pricing gains to be difficult for the no-moat retailer during the next decade, pressuring gross margins.
The narrow-moat retailer has modest pricing power from its brand equity and has successfully cultivated synergies between its full- and off-price segments.
The growth metrics the wide-moat retailer continues to capture are impressive for a relatively mature business.
The toymaker could be set to deliver modestly positive top-line growth again.
We think mispriced Norwegian Cruise Lines is poised to pivot nimbly to capitalize on evolving consumer trends.
Short-term attendance hiccups could alter long-term earnings power.
Cruise line still sails in a moat based on efficient scale, cost advantages, and intangible brand assets.
We're lowering our fair value estimate by a couple of dollars and expect shares to remain volatile short term.
We don't think the commentary surrounding demand for cruising warrants excessive worry, and we're maintaining our fair value estimate and narrow moat rating.
Taking a majority stake in Silversea should help Royal build more robust brand awareness, supporting its brand intangible asset and narrow moat rating.
Cost and creative efforts should begin to pay off in the second half.
Efforts to deliver right-sized product innovation are gaining traction.
The undervalued retailer remains competitively positioned with its core customer base.
We expect sales at the wide-moat retailer to rise over the rest of the year.
We think the resignation has more to do with the business that Margo Georgiadis inherited, rather than the business worsening beyond expectations.
We're placing the retailer under review as earnings growth gets crushed by operating margin pressure.
The retailer's liquidation doesn't change our long-term thesis or narrow moat rating for either toymaker.
Robust travel demand supports pricing growth for the cruise operator, driving profit gains.