00:00 Speaker A
Now time for some of today’s trending tickers. We are watching Abercrombie, GameStop and Capri Holdings. First up, Abercrombie surging after raising its full year outlook. The retailer also reporting better than expected first quarter results as it draws in more shoppers. Take a look at shares up 28% on the back of this earnings report here. A couple of things though to call out here, and I don’t I don’t want to kind of take all of the wind out of their sails here, but thinking through some of the segment revenue here, you actually did see some declines for Abercrombie. Hollister though putting the team on its back with growth there of about 10 and a half ish percent during the quarter. And then same store sales, this was interesting because net higher by about 37%, but Abercrombie was uh pretty big drag at least within the same store sales percentage declines that they had seen. So, uh that is something worth keeping an eye on. Also the inventory growth, uh clearly they were trying to front run some of the impacts of tariffs. I think that number came in at about 214% inventory growth year-over-year.
02:06 Speaker B
Yeah, well, and it’s really important to know that the stock uh at least prior to this print on Tuesday’s close was down over 45% year to date, obviously making up a lot of those gains right now. Uh having said that, it’s interesting that in their guidance they know a $50 million hit due to tariffs. It seems like investors are happy to at least have that clarity from the company. The forecast including the estimated impact on tariffs uh come of goods coming in from China, um and all other global imports, that 10% baseline tariff, but it did not include the current reciprocal tariffs that the president announced on his so-called liberation day on April 2nd. So, those are obviously being negotiated right now. Abercrombie did not take that into account. They did take into account a 30% tariff on Chinese imports and a 10% baseline tariff. And the street obviously applauding their ability to do that, but it is fascinating that they’re getting such a pat on the back when nobody has clarity on those so-called reciprocal tariffs at this point in time. All right, next up, GameStop is announcing a crypto purchase, acquiring 4,710 Bitcoin. This is the first publicly acknowledged Bitcoin purchase by GameStop since the company did announce plans to move into Bitcoin investments back in March. Shares up a little over 1 and a half percent here, but really interesting. And we’ve talked with sources about this on the show previously, Brad. The idea that GameStop is sort of trying to position itself as a Bitcoin company going forward. And what is that going to look like, especially given that they’ve gone through so many iterations, obviously a consumer facing company and then a meme stock, and now potentially the next crypto giant.
04:53 Speaker A
Yeah, hit the strategy button here. And at the end of the day, as you think about all of the companies that are trying to figure out, okay, on our balance sheet, how much of the investor story and the sentiment is also something that in this Venn diagram might cross over with some of those who are also Bitcoin holders too. The the gamers out there are some of the earliest earliest adopters to cryptocurrency. And so it seems right that GameStop would make a move like this, but why not sooner? Why not earlier? Um, but this is another effort to try and make sure that the stock could be tied into some of the moves of something, well, dare I say fundamental, like just the holdings of crypto here.
06:00 Speaker B
Yeah, absolutely.
06:02 Speaker A
Also here we’re tracking Capri Holdings, cutting its fiscal 2026 outlook due to uncertainty around tariffs. Still, the Michael Kors owner topped fourth quarter revenue estimates as it’s focusing on its turnaround plan. You’re taking a look at shares here on the back of this down by about 1 and a quarter percent or 1.2% right now. Um, one of the things that actually caught my eye within Capri and the results that we had seen here, the company also is still expecting total revenue of about $3.3 to $3.4 billion. EPS earnings per share for 2026 of approximately $1.20 to $1.40. That’s the range that they provided right now.
07:14 Speaker B
Yeah, lowering that annual forecast seems to be of course the sticking point though. They did uh have quarterly revenue topping estimates on some of their turnaround efforts. They are working to revive some parts of the business. And remember, of course, this comes after the uh attempted merger with uh the coach parent company Tapestry last year that obviously did not go through. Uh having said that, some commentary from Capri’s CEO I have up here saying they’re confident in their ability to grow Michael Kors to 4 billion in revenue, Jimmy Choo to 800 million over time, while restoring operating margins to the double digit range here. And they did know, this is a really important check on the consumer that buyers in North America have scaled back their spending on high-end goods. So, perhaps seeing a little bit of an impact of that wealth effect there. And I should mention you can scan the QR code below to track the best and worst performing stocks of the session with Yahoo finances trending tickers page.
