Dafinchi AI

CAL

Consumer

Adjusted earnings per share were $0.35, down from $0.85 last year, including a $0.07 discrete tax benefit.
Brand Portfolio gross margin declined 240 basis points to 40.3%, impacted by tariffs and markdown reserves.
Famous Footwear gross margin decreased 130 basis points to 43.7%, due to deeper promotions and channel mix.
Gross margin contracted by 210 basis points to 43.4%, driven by tariff-related costs, inventory reserves, and promotional activity.
Inventory increased 4.9% year over year to $693 million, with 8.6% growth in Brand Portfolio and 2% in Famous Footwear.
Operating earnings were $16 million, with operating margin at 2.4%.
Second quarter sales declined 3.6% year over year to $658.5 million, with both Brand Portfolio and Famous Footwear segments down but showing sequential improvement.
SG&A expenses increased by $1.4 million to $269.7 million, deleveraging 170 basis points as a percentage of sales.

CAL

Consumer

Management highlighted ongoing tariff impacts, estimating a 250 basis point gross margin pressure due to tariffs in the Brand Portfolio segment.
Mitigation efforts include sourcing country mix adjustments, factory concessions, and selective price increases, but lag effects mean pressure persists into the second half of 2025.
The company expects gross margin pressure from tariffs to continue into the third quarter, with some normalization anticipated in the fourth quarter as mitigation strategies take effect.
Approximately $10 million of sales in Q2 were negatively impacted by tariffs, split evenly between cancellations and delayed receipts, with recovery expected in Q3.
Management emphasized the lag between tariff enactment and mitigation effectiveness, which complicates short-term margin recovery efforts.
The company is actively exploring additional cost savings and efficiency measures to offset tariff-related margin pressures.

AAP

Consumer

Adjusted diluted EPS was $0.69, up from $0.62 in Q2 last year.
Adjusted gross profit was $880 million, representing a 43.8% gross margin, expanding by 16 basis points year-over-year.
Adjusted operating income was $61 million or 3.0% of net sales, with about 20 basis points of margin expansion.
Comparable sales growth was positive 0.1% for Q2, with a 25 basis points headwind from Easter timing shift.
Free cash flow was negative $201 million year-to-date, including $20 million in cash costs related to store optimization.
Pro channel grew in the low single-digit range and accelerated compared to Q1; DIY declined low single digits but stabilized versus Q1.
Q2 net sales were $2 billion, down 8% year-over-year, mainly due to store optimization completed in Q1.
Transactions declined in the low single-digit range, while ticket size improved compared to Q1.

BURL

Consumer

Adjusted EBIT margin was 6%, significantly above guidance, with adjusted EPS of $1.72, a 39% increase from prior year.
Comparable store inventories decreased 8%, while reserve inventory increased to 50% of total inventory, reflecting strategic pre-tariff buying.
Comparable store sales increased 5%, exceeding guidance and driven by higher transaction size rather than traffic growth.
Gross margin rate improved by 90 basis points, with merchandise margin up 60 basis points and freight expense down 30 basis points.
Opened 23 net new stores in Q2, totaling 1,138 stores, with plans to open 100 net new stores in fiscal 2025.
Operating margin expanded by 120 basis points year-over-year, driven by stronger merchandise margins and expense efficiencies.
Product sourcing costs increased to $209 million but remained flat as a percentage of sales due to savings initiatives.
Total sales grew 10% in Q2 2025, following 13% growth last year, demonstrating strong market share gains.

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