Nyse Order Imbalance 128214.0 Shares On Sell Side

Tractor Supply Company TSCO seems to be in a good spot, thanks to its sturdy business strategies. The company is reaping the benefits from its Life Out Here Strategy and the Neighbor’s Club membership program. Its ‘ONETractor’ strategy, which is aimed at connecting stores and online shopping, appears encouraging too. Shares of this leading rural retail farm and ranch store chain have gained 32.6% year to date against the industry’s 3.1% decline.

Recently, Tractor Supply revealed that it had agreed to acquire Allivet, which is a privately-held leading online pet pharmacy. This buyout will complement and reinforce the company’s portfolio of companion animals, equestrian and livestock customers. The deal will also enable TSCO to introduce a low-cost pet and animal pharmacy solution for the 37-million Neighbor’s Club members.

The new deal brings a key opportunity to gain share of wallet with the club members, about 75% of whom are pet owners. The deal will also strengthen the company’s product and services offering, extend its overall addressable market by $15 billion and solidify relationship between the companies.

TSCO’s Growth Strategies in Detail

Given the changing consumer trends, Tractor Supply is focused on integrating its physical and digital operations to offer consumers a seamless shopping experience. The company’s omnichannel investments include curbside pickup, same day and next-day delivery, a re-launched website and new mobile app. Management aims at leveraging AI technologies to boost search, redesign checkout and add a new refreshed homepage on personalization.

TSCO is significantly enhancing its Neighbor's Club offering. As the company continues to make investments in the program, it has been seeing strong growth in customer counts and customer retention. In the third quarter of 2024, the Neighbor's Club comp sales surpassed the company’s overall sales. Tractor Supply has reached an all-time high on its sales penetration, recording membership of more than 37 million members.

The company is also focused on improving personalization capabilities, mainly its customer data platform. Its live goods performance also bodes well. Digital sales continued to outperform, with double-digit growth in the third quarter of 2024. The company has been making major improvements in search and checkout. It has been accelerating its digital capabilities, which has been leading to higher customer engagement and conversion rate improvement.

Regarding its store-growth initiatives, Tractor Supply is persistently focused on the expansion of its store base and the incorporation of technological advancements to boost traffic and drive the top line. In the third quarter, TSCO introduced 16 flagship stores, bringing the year-to-date count to 54. Management intends to continue its store-opening initiatives in 2024.

Project Fusion is the company’s state-of-the-art space productivity program built to enrich customer experience in the mature store base. It currently has 45% of the chain in its Project Fusion layout and more than 550 garden centers. Such store investments target higher market share and boost productivity across the existing and new stores. Addition of product categories, greater ease of shopping and modern services enables the company to serve its customers efficiently.

Factors Hindering TSCO’s Growth

Tractor Supply has been reeling under higher depreciation and amortization along with the costs related to the opening of a distribution center. Also, cost inflation is concerning. During the third quarter, selling, general and administrative (SG&A) expenses, including depreciation and amortization, as a percentage of sales, expanded 119 basis points (bps) year over year. In dollar terms, the metric rose 6.2%.

The higher SG&A expense rate resulted from growth investments, which comprised the onboarding of a new distribution center, lapping a one-time depreciation cost benefit in the last year and modest deleveraged fixed costs. The new distribution center was nearly a 25-bps headwind on SG&A for the quarter. Further, the operating income was down 4.8% year over year, with the operating margin declining 63 bps to 9.4% in the reported quarter. In addition, a tepid retail sales environment is concerning.

Conclusion

TSCO has been taking cost-saving initiatives to tackle cost issues. Analysts seem quite optimistic about the company. The Zacks Consensus Estimate for 2024 sales and earnings per share (EPS) is currently pegged at $14.9 billion and $10.24, respectively. These estimates indicate corresponding growth of 2.5% and 1.5% year over year. The consensus estimate for 2025 sales and EPS is presently pegged at $15.7 billion and $11, respectively, indicating a year-over-year increase of 5.1% and 7.4%. Tractor Supply currently carries a Zacks Rank #3 (Hold).

Key Picks

We have highlighted three better-ranked stocks, namely Boot Barn BOOT, Abercombie ANF and Deckers DECK.

Boot Barn, a lifestyle retail chain devoted to western and work-related footwear, apparel and accessories, currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The company has a trailing four-quarter earnings surprise of 6.8%, on average.

The Zacks Consensus Estimate for Boot Barn’s current financial-year sales indicates growth of 13.9% from the year-ago figure.

Abercrombie, a leading casual apparel retailer, currently carries a Zacks Rank of 2 (Buy). ANF delivered an earnings surprise of 16.8% in the last reported quarter.

The consensus estimate for Abercrombie’s current financial-year sales indicates growth of 13% from the year-ago figure.

Deckers, a footwear and accessories dealer, currently carries a Zacks Rank of 2. DECK delivered an average earnings surprise of 41.1% in the trailing four quarters.

The Zacks Consensus Estimate for Deckers’ current financial-year sales indicates growth of 13.7% from the year-ago figure.

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Key Takeaways

• The past six months has seen BOOT stocks gain 26.5% in the past half year.
• BOOT shares outperformed the broader retail industry, which saw a 2.7% decline during the same time.
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Shares of Boot Barn Holdings, Inc. BOOT have rallied 26.5% in the past six months, capturing investor attention with its remarkable performance amid a competitive retail landscape. The stock has outperformed its industry, which saw a 2.7% decline and surpassed the S&P 500’s 14.9% gain during the same period.

BOOT Stock Past Six-Month Performance

As a leading retailer specializing in western and work-related footwear, apparel and accessories, Boot Barn’s strategic expansion and digital innovations have fueled its stock performance. With such a substantial rise, investors are wondering if this is the peak or just another milestone in the growth story. Should they cash in on these impressive returns, or is there more room to run?

Closing yesterday’s trading session at $135.14, BOOT is trading below its 52-week high of $169.83 attained on Oct. 17, 2024. The pullback from this peak could be attributed to profit-taking or broader market uncertainties, including geopolitical concerns. However, if the stock manages to break through its 52-week high, it could reignite buying interest and attract fresh capital.

Unlocking Boot Barn’s Investment Potential

Boot Barn Holdings presents a favorable investment case backed by strategic expansion, positive same-store sales across key categories, strong omnichannel initiatives and effective cost management. The company's disciplined approach to store openings and potential for further U.S. market penetration provides a solid growth trajectory.

Boot Barn reported a notable 13.7% increase in revenues during the second quarter of fiscal 2025, with retail store same-store sales rising 4.3% and e-commerce same-store sales increasing 10.1%. This dual-channel strength — in-store and online — indicates that Boot Barn is capturing a loyal customer base across various regions. Such sales growth in the current retail climate highlights Boot Barn’s ability to adapt to shifting consumer preferences, adding confidence to its long-term outlook.

A key driver of Boot Barn's performance has been its rapid store expansion strategy, with plans to open 60 new stores in fiscal 2025 alone. It opened 15 new stores in the second quarter, taking the total count to 425 as of Sept. 28. The company has strategically targeted markets where demand for western and work apparel is high and aims to reach nearly 1,000 locations over time. This ambitious plan not only enhances Boot Barn’s reach but also solidifies its market presence, creating a foundation for continued revenue growth.

Boot Barn's commitment to digital and omnichannel innovation has also played a significant role in its success. The recent growth in e-commerce sales, driven in part by the new Boot Barn app and the AI-powered “Cassidy” tool, showcases the company’s investment in a seamless shopping experience. With 10% of online sales now coming through its app, Boot Barn is well-positioned to leverage digital channels for customer engagement and retention. The company's digital initiatives are not just a response to market trends but a proactive approach to enhancing customer loyalty and increasing overall sales. E-commerce now accounts for 9.5% of net sales.

Alongside strong revenues, Boot Barn has demonstrated margin resilience, with a 70-basis-point improvement in the merchandise margin last quarter. The company's ability to expand margins while growing its store footprint highlights its efficient cost management and exclusive brand strategy, which supports profitability. For investors, this steady improvement in margins signals that Boot Barn can sustain its profit levels even as it invests in growth. Profitability and cost efficiency in a rising cost environment are key metrics that boost investor confidence.

A Sneak Peek Into BOOT’s Outlook

Following its recent second-quarter performance, Boot Barn raised its full-year guidance. It now anticipates revenue growth of 12.4% to 14.4% from the last year, up from the prior guided range of 8.9%-11%. This upward revision indicates management’s belief in ongoing growth potential, bolstered by the success of new stores, continued digital engagement and strong same-store sales.

Same-store sales are anticipated to increase between 3% and 5%, with retail store same-store sales increasing by 2.5% to 4.5% and e-commerce same-store sales expected to rise by 7.5% to 9.5%. Earlier, Boot Barn had expected same-store sales between down 1% and up 1.2%.

Management now projects earnings to fall within the range of $5.30-$5.60 per share, up from the prior guidance range of $5.05-$5.35.

How Do Estimates Measure Up for BOOT Stock?

Wall Street analysts have expressed confidence in Boot Barn by raising their earnings per share estimates. Over the past 30 days, the Zacks Consensus Estimate for the current fiscal year has jumped 2.2% to $5.48 per share, while projections for the next fiscal year have risen 2.8% to $6.56 per share, highlighting growing optimism about the company's future performance. The estimates suggest year-over-year increases of 13% and 19.5%, respectively.

See the Zacks Earnings Calendar to stay ahead of market-making news.

BOOT Valuation: Is Its Premium Price Tag Justified?

While Boot Barn has experienced significant growth, it's worth noting that its current valuation appears to be inflated relative to its fundamentals, reflecting strong market confidence in the stock’s future potential.

With a forward 12-month price-to-earnings (P/E) ratio of 22, above the past year’s median of 20.77, Boot Barn remains attractive to investors seeking growth. Compared to the industry’s forward P/E of 16.04, BOOT’s higher valuation reflects its position as a standout performer in the market.

While there could be a case for a near-term correction as the stock adjusts to its elevated valuation, Boot Barn’s solid expansion strategies, digital transformation initiatives, and expanding customer base continue to position it as a compelling long-term investment in a competitive landscape that includes rivals like Abercrombie & Fitch Co. ANF, Deckers Outdoor Corporation DECK and The Gap, Inc. GAP.

Should Investors Continue to Bet on BOOT?

Boot Barn’s stock surge highlights a compelling growth story driven by strategic expansion, digital investments and strong margin control. For investors who have seen significant gains, booking profits may seem tempting, given the stock’s rich valuation and with the holiday season on the horizon, a time that could bring volatility. However, the company’s ongoing investments in growth initiatives and positive outlook suggest there is still room for further upside. While taking partial profits could be a wise move in the short term, Boot Barn’s solid fundamentals and promising long-term prospects make a strong case for remaining bullish on this Zacks Rank #2 (Buy) stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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Shares of Nordstrom, Inc. JWN have surged 77.2% in the past year, outperforming the Zacks Retail - Apparel and Shoes industry’s 23.2% growth, the broader Retail-Wholesale sector’s 37.9% increase and S&P 500 index’s 38.7% growth. JWN is strictly focused on driving Nordstrom banner growth, optimizing operations and building momentum at Rack. Digital efforts are also underway.

Let’s delve deeper.

Analyzing JWN’s Core Strengths

Nordstrom has been expanding its Rack banner by increasing the brand penetration. It looks to strengthen Rack’s productivity throughout its network, reduce transportation costs and delivery times and enhance services via faster delivery. The company continues to focus on introducing more premium brands at Rack, better assortment and increased brand awareness. The Rack banner's digital channel is a differentiator to the off-price retail.

JWN has been making efforts to change the storage and access of data. This transformational change looks to improve data access and analysis capabilities, hence enhancing the ability to leverage generative AI solutions and services at a higher pace. In the most recent quarter, digital momentum continued with sales growth of 6% year over year. Growth at nordstrom.com was backed by an increase in the assortment across a balance of price points, improvements in search and discovery and high in-stock rates of its fastest-turning items.

The company has also been making notable efforts to drive efficiency and enrich the customer experience. It is redefining its flagship brand to give it a trendy look, offering a style-driven and top-quality assortment. Increased focus on distribution capabilities and improved connectivity of physical and digital inventory are other tailwinds.

Nordstrom is focused on its long-term strategy, which builds on its market strategy to capitalize on its digital-first platform to better serve customers, gain market share and deliver profitable growth. It concentrates on winning in the most important markets, expanding the reach of Nordstrom Rack and enhancing its digital velocity. JWN’s closer-to-you strategy, which aims to link stores and services to expedite deliveries, expand online offerings and add cheaper merchandise at its Rack off-price stores, bodes well. Such catalysts aim at generating $2 billion in revenues in the long term.

JWN Stock’s Valuation

Nordstrom stock is trading at an attractive valuation relative to the industry. Going by the price/earnings ratio, JWN stock is currently trading at 11.96 on a forward 12-month basis, lower than 16.09 of the industry.

Nordstrom Well Poised for Success

Nordstrom’s robust strategies, including sturdy momentum at its Rack banner and digital endeavors, position it well for success. Its long-term growth strategies coupled with the stock’s attractive valuation further demonstrate strength. The company currently carries a Zacks Rank #2 (Buy).

Other Key Picks

We have highlighted three other top-ranked stocks, namely Boot Barn BOOT, Abercombie ANF and Deckers DECK.

Boot Barn, a lifestyle retail chain devoted to western and work-related footwear, apparel and accessories, currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The company has a trailing four-quarter earnings surprise of 6.8%, on average.

The Zacks Consensus Estimate for Boot Barn’s current financial-year sales indicates growth of 13.9% from the year-ago figure.

Abercrombie, a leading casual apparel retailer, currently carries a Zacks Rank of 2. ANF delivered an earnings surprise of 16.8% in the last reported quarter.

The consensus estimate for Abercrombie’s current financial-year sales indicates growth of 13% from the year-ago figure.

Deckers, a footwear and accessories dealer, currently carries a Zacks Rank of 2. DECK delivered an earnings surprise of 41.1% in the trailing four quarters.

The Zacks Consensus Estimate for Deckers’ current financial-year sales indicates growth of 13.7% from the year-ago figure.

Zacks Investment Research

Nu Skin Enterprises, Inc. NUS posted dismal third-quarter 2024 results, with the top and bottom lines missing Zacks Consensus Estimate. Earnings and net sales declined year over year amid macroeconomic pressure and challenges in the direct selling industry. Taking into account persistent pressure in the core Nu Skin business, management is lowering its 2024 outlook.

In the third quarter, Nu Skin posted adjusted earnings of 17 cents a share, excluding inventory write-off, restructuring and impairment impact. The metric declined from the adjusted figure of 56 cents reported in the year-ago quarter. The bottom line missed the Zacks Consensus Estimate of 20 cents.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

Quarterly revenues of $430.1 million tumbled 13.8% year over year. Revenues included a negative impact of 3.4% from foreign currency fluctuations. On a constant-currency basis, revenues fell 10.4%. Rhyz revenues rose 20.9% year over year to $73.1. Nu Skin’s top line missed the Zacks Consensus Estimate of $444.1 million.

Sales leaders were down 19% year over year to 38,284. Nu Skin’s customer base dropped 15% to 831,768. The company’s paid affiliates were down 20% to 149,264. On an adjusted basis, paid affiliates tumbled 11%.

Nu Skin Enterprises, Inc. Price, Consensus and EPS Surprise

Nu Skin Enterprises, Inc. price-consensus-eps-surprise-chart | Nu Skin Enterprises, Inc. Quote

A Closer Look at NUS’ Q3 Results

Gross profit of $301.5 million increased from $292.3 million reported in the year-ago quarter. The gross margin (excluding inventory write-off impact) came in at 70.1%, down from 71.8% reported in the year-ago quarter. The Nu Skin business’ gross margin (excluding inventory write-off impact) came in at 76.5%, down from 76.8% reported in the year-ago quarter.

Selling expenses declined to $167.6 million from the $187.8 million reported in the prior-year quarter. As a percentage of revenues, the metric was 39%, up from 37.6% reported in the year-ago quarter. Nu Skin business’ selling expenses were 43.5%, up from 41.7% reported in the prior-year quarter.

General and administrative expenses of $115.6 million declined from $130.9 million in the year-ago quarter. As a percentage of revenues, general and administrative expenses were 26.9%, up from 26.2% in the year-ago period.

The company’s operating margin (excluding inventory write-off, restructuring and impairment impact) contracted to 4.2% from 7.9% reported in the year-ago quarter.

Regional Revenue Results for NUS’ Q3

Region-wise, revenues declined 15.8%, 13.4%, 24.5%, 11.6%, 29.1%, 22.9% and 17.1% in the Americas, Southeast Asia/Pacific, Mainland China, Japan, South Korea, Europe & Africa and Hong Kong/Taiwan, respectively. Meanwhile, NUS’ other revenues surged significantly to $2,518 million.

NUS’ Financial Health Snapshot

This Zacks Rank #3 (Hold) company ended the quarter with cash and cash equivalents of $227.8 million, long-term debt of $373.5 million and total stockholders' equity of $706.9 million. In the reported quarter, the company paid out dividends of $3 million while not making any share repurchases. The company has $162.4 million remaining under the current share repurchase authorization.

Nu Skin announced a cash dividend of 6 cents per share, payable on Dec. 11, 2024, of shareholders’ record as of Nov. 29.

What to Expect From Nu Skin in 2024

Nu Skin anticipates revenues in the band of $1.70-$1.73 billion for 2024, which suggests a 12-14% decline from the year-ago period’s reported figure. The company envisions unfavorable foreign currency impacts of 4-3% on 2024 revenues. Earlier, the metric was expected to be in the range of $1.73-$1.81 billion.

Management envisions an adjusted earnings per share (EPS) of 65-75 cents. The projection suggests a decline from adjusted earnings of $1.85 recorded in 2023. Management had envisioned an adjusted EPS of 75-95 cents for 2024.

For the fourth-quarter 2024, the company expects revenues between $410 million and $445 million, including an unfavorable foreign currency impact of nearly 1% to 2%. The revenue projection suggests a decline of 9% to 16% from the year-ago quarter’s reported level. The company expects adjusted earnings of 19-29 cents a share.

The company’s shares have declined 35.9% in the past three months against the industry’s 4.3% growth.

Top Three Picks

Boot Barn Holdings, Inc. BOOT sports a Zacks Rank of 1 (Strong Buy). Boot Barn has a trailing four-quarter earnings surprise of 6.8%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.

The consensus estimate for BOOT’s current financial year sales and earnings indicates advancements of 13.9% and 13%, respectively, from the prior-year figures.

The Gap, Inc. GAP is a premier international specialty retailer offering a diverse range of clothing, accessories and personal care products. It currently carries a Zacks Rank #2 (Buy).

The Zacks Consensus Estimate for The Gap’s fiscal 2024 earnings and sales indicates growth of 31.5% and 0.5%, respectively, from the year-ago actuals. GAP has a trailing four-quarter average earnings surprise of 142.8%.

Abercrombie & Fitch Co. ANF, a leading casual apparel retailer, currently carries a Zacks Rank #2. ANF delivered an earnings surprise of almost 28% in the last reported quarter.

The consensus estimate for Abercrombie’s current financial year sales and earnings indicates advancements of 13% and 63.4%, respectively, from the prior-year figures.

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