Latest news with #Zackfia
Business Insider
6 days ago
- Business
- Business Insider
Analysts Conflicted on These Consumer Cyclical Names: Boyd Group Services (OtherBYDGF) and Kura Sushi USA (KRUS)
Analysts have been eager to weigh in on the Consumer Cyclical sector with new ratings on Boyd Group Services (BYDGF – Research Report) and Kura Sushi USA (KRUS – Research Report). Confident Investing Starts Here: Boyd Group Services (BYDGF) Noble Financial analyst Mark Jordan initiated coverage with a Hold rating on Boyd Group Services yesterday and set a price target of C$231.00. The company's shares closed last Tuesday at $149.00, close to its 52-week low of $140.89. According to Jordan is ranked #989 out of 9596 analysts. The word on The Street in general, suggests a Strong Buy analyst consensus rating for Boyd Group Services with a $197.01 average price target. Kura Sushi USA (KRUS) William Blair analyst Sharon Zackfia maintained a Buy rating on Kura Sushi USA yesterday. The company's shares closed last Tuesday at $72.60. According to Zackfia is a 5-star analyst with an average return of 13.1% and a 55.4% success rate. Zackfia covers the NA sector, focusing on stocks such as Birkenstock Holding plc, OneSpaWorld Holdings, and Lululemon Athletica. The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Kura Sushi USA with a $64.38 average price target.
Business Insider
6 days ago
- Business
- Business Insider
Dutch Bros Inc (BROS) Gets a Buy from William Blair
William Blair analyst Sharon Zackfia reiterated a Buy rating on Dutch Bros Inc (BROS – Research Report) today. The company's shares closed yesterday at $70.80. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Zackfia covers the Consumer Cyclical sector, focusing on stocks such as Lululemon Athletica, CarMax, and Potbelly. According to TipRanks, Zackfia has an average return of 13.1% and a 55.41% success rate on recommended stocks. Currently, the analyst consensus on Dutch Bros Inc is a Strong Buy with an average price target of $77.86.
Yahoo
16-05-2025
- Business
- Yahoo
Fast-casual restaurants falter in uncertain environment — but not Cava
Cava (CAVA) is doing something other fast-casual chains are struggling to do: bringing in customers. As macro uncertainty persists due to the impact of President Trump's tariffs, contributing to the second-lowest consumer sentiment reading on record, Cava's results showed strength. The Mediterranean-inspired chain reported on Thursday that same-store sales grew 10.8% in the first quarter and foot traffic increased 7.5%. Cava's better-than-expected sales stood out against warnings of a consumer slowdown from peers like Chipotle (CMG) and Sweetgreen (SG). The brand aims to "be a port in that uncertainty and inflationary storm for our guests," Cava CEO Brett Schulman told Yahoo Finance (video above). He added that US consumers are "becoming more selective, but they're still selecting to choose to eat at Cava." Still, Cava stock has experienced similar pressure as shares of peers in recent months and is 44% off its November 52-week high of $172.43. Year to date, shares of Cava are down 14%, while Shake Shack (SHAK), Chipotle, and Sweetgreen have fallen 8%, 13%, and 52%, respectively. Fast-casual leader Chipotle didn't have the same luck this past quarter, even though the average cost of its chicken burrito or bowl is around $10 nationally, which is lower than Cava's average order price of around $14.50. Chipotle's same-store sales dropped 0.4% year over year, the first decline since COVID-19 caused the chain to shut stores in the second quarter of 2020. Transactions fell 2.3%, the first decline since 2022. "We talked to consumers broadly about what is causing them to sit on the sideline in this economy," Chipotle CEO Scott Boatwright told Yahoo Finance in an interview. "It's really trying to save money [and] uncertainty around what's going on with the global economy." Read more: What Trump's tariffs mean for the economy and your wallet Other fast-casual chains faced similar challenges. Sweetgreen's same-store sales growth fell 3.1%, which CEO Jon Neman said was "reflective of a broader consumer slowdown." Shake Shack saw same-store sales growth of 0.2%, but foot traffic fell 4.6% in the quarter. CFO Katherine Fogertey attributed the lower traffic to "unfavorable weather and broader industry pressures." "It's always a market share battle in restaurants," William Blair analyst Sharon Zackfia told Yahoo Finance. Zackfia added that "Cava has been winning," as casual dining options are offering "pretty sharp price points," allowing them to take share from fast food chains and each other. It also helps that Cava is a newer concept, experiencing similar growth to that of Chipotle and Starbucks (SBUX) in their early days. For comparison, Cava brought in $331.8 million in revenue in the first quarter versus Chipotle's $2.8 billion. Cava reiterated its full-year guidance for 6% to 8% same-store sales growth, which investors weren't too thrilled about. Though the Street was hoping for a guidance raise, Zackfia remained confident in the company outpacing peers, who have lowered guidance. She added that 6% growth for the rest of the year is "a very solid result." As the full impact of tariffs won't be realized for several quarters, Cava, Chipotle, and Sweetgreen have all pledged to not raise prices for now. "I don't know that there's a tariff level today that would make us reconsider pricing," Schulman said. "We're in this for the long term." Schulman added that Cava worked with its suppliers and operations to "absorb" the impact of tariffs, which is "about 20 to 40 basis points," while maintaining full-year restaurant-level margin guidance of 24.8% to 25.2%. Chipotle CEO Scott Boatwright told Yahoo Finance in an interview that the company does not plan to raise prices "anytime in the near future," given the state of the consumer. However, he said that the company would "evaluate the full impact before deciding if [tariffs are] a permanent hit to the business." Cava's and Chipotle's "very healthy margins" help them absorb higher costs, Zackfia said. "When you think about having a 25% or better level margin, you can eat a little bit of inflation, or you can look for other efficiencies to offset it," Zackfia said. Sweetgreen CFO Mitch Reback also told investors the chain does not anticipate "any price increases for the remainder of the year." Shake Shack's CFO, striking a different tone, said the company plans to raise prices by approximately 3% across all channels. Brooke DiPalma is a senior reporter for Yahoo Finance. Follow her on X at @BrookeDiPalma or email her at bdipalma@ Click here for all of the latest retail stock news and events to better inform your investing strategy Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
04-04-2025
- Business
- Yahoo
Lululemon, Nike, and Deckers stocks are hit hard by Trump's sweeping tariff plan
Apparel and footwear stocks are taking a beating in the aftermath of President Donald Trump's 'Liberation Day' press conference on Wednesday, where he announced sweeping new tariffs on nearly all U.S. trading partners. Nike (NKE) shares tumbled more than 13% in pre-market trading Thursday. Lululemon (LULU) fell nearly 15%, while Deckers (DECK), the maker of Uggs and Hoka sneakers, dropped 14%. American Eagle (AEO) and Abercrombie & Fitch (ANF) slid 9% and 11%, respectively. The selloff followed Trump's announcement of what he called 'reciprocal tariffs' on 50 countries, along with a baseline 10% tariff on imports from all other nations. The new tariffs, levied on a country-by-country basis, hit China and Vietnam — two of the biggest suppliers to the apparel and footwear industries — especially hard. China now faces an additional 34% tax on its exports to the U.S., while Vietnam was hit even harder with a 46% tariff. The baseline 10% tariff will take effect this Saturday at 12:01 a.m. ET, with the country-specific levies set to follow on April 9 at the same time. For the fashion industry, the impact could be severe. The U.S. imports about 51% its apparel and footwear from China and Vietnam, according to Goldman Sachs (GS). Vietnam alone accounts for 34% of U.S. footwear imports. Investors fear the tariffs will lead to higher prices, which could slow sales and squeeze margins. Lululemon appears particularly vulnerable. The athleisure company sources about 40% of its products from Vietnam and another 17% from Cambodia, which was hit with a 49% tariff. Overall, Lululemon faces a blended tariff rate of 39% — the average tariff rate across all its imported goods. With more than 60% of Lululemon's sales coming from the U.S. and a merchandise margin of 70%, the tariffs could result in a 700 basis point (7%) margin hit if the company takes no action, William Blair analyst Sharon Zackfia wrote in a note on Thursday. Zackfia said Lululemon is likely to pursue mitigation strategies, including negotiations with vendors, cost-saving and operational strategies, and selective price increases. 'On the latter, we estimate an 11% to 12% across-the-board price increase in the U.S. would fully protect dollar profit (albeit diluting margins), although we expect any price increases will likely be more surgical than an across-the-board hike,' Zackfia wrote. For the latest news, Facebook, Twitter and Instagram. Sign in to access your portfolio
Wall Street Journal
03-04-2025
- Business
- Wall Street Journal
Lululemon's Southeast Asia Supply Chain Hit Hard by Trump Tariffs
Lululemon LULU -10.28%decrease; red down pointing triangle finds itself directly in the crosshairs of President Trump's trade war as the bulk of its apparel is sourced from Southeast Asia. The Vancouver, British Columbia, based active-wear brand is bracing for a tariff hit that could squeeze profit margins and push retail prices higher in the U.S., its biggest market, testing how loyal customers are to its $120 yoga pants, analysts say. 'We estimate blended tariff impact at nearly 40%, as the bulk of lululemon's products are sourced from countries that are set to be targeted with outsized tariffs,' William Blair analyst Sharon Zackfia said in a report. Shares fell 12% Thursday, to $249.93, and are down about 34% since the year began. Announced on April 2, Vietnam, which produces about 40% of lululemon's merchandise, will be slapped with a 46% tariff on U.S.-bound imports. Cambodia and Sri Lanka, which make nearly a combined one third of the company's products, will have 49% and 44% tariffs applied, respectively. The company's full-year forecasts, which already call for the slowest sales growth on record, only baked in tariff pressure from China and Mexico. That may have been optimistic, given Trump's global tariffs plan targets more countries than lululemon accounted for. Even after Tuesday's tariff news, uncertainty remains constant. 'Tariff policy is still in flux,' Baird analysts said. 'Large Vietnam sourcing exposure presents risk to the extent reciprocal tariffs are announced.' Lululemon gets a little more than 60% of sales in the U.S. at roughly a 70% merchandise margin, Zackfia estimates. She added that with the additional tariffs on countries in Southeast Asia, profit margins will be hit hard, by about 700 basis points. As high as the tariffs are, lululemon's gross margins in the fourth quarter stood at 60.4%, which Zackfia said gives the company leeway to absorb the brunt of the tariffs. Still, the retailer will have to adjust prices for shoppers. 'We estimate an 11% to 12% across-the-board price increase in the U.S. would fully protect dollar profit, albeit diluting margins,' she said. Lululemon's supply chain puts the company among the retailers at the greatest risk of exposure, according to Raymond James's Rick Patel. 'We estimate tariff risk by taking into account U.S. penetration and sourcing exposure by country and we conclude those most exposed to new tariffs include . . . Lululemon,' he said. Lululemon, like other North American retailers, has spent years reducing its exposure to China in favor of other Asian countries in response to Trump's first-term trade spat with the country. Randy Konik, an analyst at Jefferies, said that companies have fewer options now to find haven from tariffs. 'The new tariffs now make those moves fruitless,' Konik said. 'Production can't be moved again so companies like Lululemon will see cost pressures rise and margins go lower.' Write to Adriano Marchese at
