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CEO Stefan Larsson purchased roughly $1 million worth of shares on Friday. Unlike routine stock awards that executives receive as part of their pay, this was an open-market purchase using his own cash.
When a leader puts their own money into the stock, it often signals confidence that the current price does not reflect the company's true value. This buy comes shortly after the company reported quarterly results and reaffirmed its full-year outlook, suggesting the person running the business believes in the turnaround plan despite recent market volatility.
Telsey Advisory lowered its price target for the stock to $79 from $84 following the latest quarterly results. This is a routine adjustment to reflect current market prices rather than a change in the firm's view of the business itself. The new target is still higher than the current stock price, and the average target across all analysts remains around $91.
Source: Telsey Advisory
The company reported earnings of $3.70 per share, well ahead of the $3.08 analysts expected. While total revenue of $2.1 billion was roughly flat compared to last year, the company is successfully shifting toward selling directly to customers through its own stores and websites rather than relying on other retailers. These direct-to-consumer sales grew in both the Americas and Asia, which is important because they typically earn higher profits per item sold.
Management reaffirmed its financial goals for the full year, signaling that its plan to focus on its two core brands is working despite a difficult global economy. The company also saw a 4 percent rise in digital sales, showing that its push to modernize how it reaches shoppers is gaining traction. For a long-term owner, the focus remains on whether this shift to direct sales can continue to lift profit margins over time.
See the full quarter, and how our tracked metrics did
Source: 8-K filing
Management consistently sets conservative targets and clears them with room to spare. This eight-quarter streak of beats suggests they have a firm handle on their costs and inventory.
| Expectation | |
|---|---|
| EPS | $2.63 |
| Revenue | $2.26B |