Thursday, July 30, 2026

O'Reilly (ORLY, $90.63) had an upside/in-line 2Q26 (June) and comped up 6.0% on top of +4.1% last year, while total sales growth of 8% y/y, flat gross and op margins, and a 3% reduction in shares outstanding on continued stock buybacks drove a 10% increase in EPS, to $0.86, and mgmt bumped up full-year comp guidance by a ppt, reaffirmed margins, and raised the EPS range by $0.05.

• The +6.0% comp was slightly ahead of the Street's +5.4% and puts the two-year stack at +10.1%, a slight sequential deceleration from +11.7% in the first quarter but still indicative of meaningful market share gains, while total sales increased 8% to $4.89B.
• Comps were driven by growth in both professional and DIY in the quarter, while total sales were driven by the comp and the opening of 110 net new stores 2026 YTD.
• O'Reilly is still planning to open a net 225-235 stores this year on a base of 6,585 stores.
• EPS were $0.86 vs. $0.78 last year and the Street's $0.86 estimate and incorporated a flat gross margin of 51.4% and a flat operating margin of 20.2%.
• Inventories look fine/good and were up 11% y/y, slightly above the +8% sales growth.
• 2026 guidance includes comps of +4%-6% vs. a prior +3%-5%, revs of $18.9B-$19.2B vs. a prior $18.7B-$19.0B and $17.78B last year, an operating margin of 19.3%-19.8% vs. 17.9% in 2025 and same as before and EPS of $3.20-$3.30 vs. $2.97 in 2025 and a prior $3.15-$3.25.
• DoRCR INSIGHT: O'Reilly executes very well, has very good service and leading parts availability, and is gaining nice share in a resilient and tariff-resistant industry, and management is focused on reducing expenses but will also sacrifice some profit in order to maintain high levels of customer service at the stores and to preserve ORLY's leading parts availability.

Gildan (GIL, $51.25) had a mixed 2Q26 (June), its second full quarter of contribution from the acquired HanesBrands business, though pro forma sales for the combined business declined y/y on "proactive inventory reduction(s)" related to the integration process, while adjusted op margin decreased y/y on HanesBrands' higher SG&A; mgmt guided full-year revs to the low-end of a prior range but raised op margin by 80 bps and the adjusted EPS range by a fair bit.

• Gildan also announced the sale of its HanesBrands Australian Business to BBFIT Investments for an EV of ~US$490M, said the deal will close in 2H26, and noted proceeds will be used to pay down a portion of its debt and accelerate a return to its target leverage.
• Reported sales increased 72% y/y to $1.58B vs. the Street's $1.61B estimate, while sales decreased 8% on a pro-forma basis on the proactive inventory reductions, which have temporarily reduced sell-in, and the cycling of some pre-buying actions in 2Q25.
• Management also noted some "broader market softness" late-quarter in Retail.
• Adjusted EPS from continuing ops were $1.28 vs. $0.97 last year and the Street's $1.12 estimate and incorporated an operating margin of 22.3%, down 40 bps from last year.
• For the year, total revs are now expected to be at the low-end of a prior $6.0B-$6.2B range, while adjusted EPS are expected at $4.65-$4.75, up 33%-35% y/y and incorporating $220M in IEEPA tariff refunds, with most of the recovery expected to occur in the third quarter.
• DoRCR INSIGHT: The HanesBrands acquisition is transformative for Gildan as it essentially doubles the revenue base and should create substantial platform synergies and efficiencies, and the sale of HanesBrands Australia should help with balance sheet de-leverage -- target is 1.5x-2.5x net debt to pro forma adjusted EBITDA -- and will allow for greater focus on core ops.

Sprouts Farmers Market (SFM, $79.16) had a soft 2Q26 (June) with in-line comps down 1.0% and upside EPS of $1.37 vs. $1.35 last year and called out "a cautious consumer environment," strong new store performance, and ongoing success in "foraging and innovation," and mgmt narrowed full-year comps, bumped up sales, and trimmed the high-ends of EBIT and EPS ranges.

• The (1.0%) comp is a sequential improvement from the first quarter's (1.7%) against a somewhat easier, but still very difficult, year-ago comparison of +10.2%, while total sales grew 5% y/y to $2.33B on an 8% y/y increase in units, to 490 stores in 25 states.
• 2026 guidance includes comps of (0.5%)-0.5% vs. a prior (1%)-1%, total sales growth of 5.5%-6.5% on top of $8.81B last year, and EPS of $5.32-$5.40 vs. $5.31 in 2025 and vs. a prior $5.32-$5.48 and still including an estimated $0.21 from a 53rd week.
• Sprouts is planning to open 42 net new stores this year, implies 9% unit growth, part of a plan announced last year to open 75+ stores over two years.
• Full-year sales guidance still assumes an add'l $200M of sales from the extra week.
• DoRCR INSIGHT: Sprouts is still a good story overall, well positioned in the growing market for healthy and organic foods and with plenty of store growth potential given its relatively small size, but there has been some underlying moderation that is raising concerns about heightened competition with Whole Foods (and Amazon) as Amazon ups its investments in fresh food.

Crocs (CROX, $133.52) had a better-than-expected 2Q26 (June) and called out broad demand across both brands, good DTC growth, and strong consumer interest in new product innovation, and management bumped up full-year revenue guidance, raised the EPS range, and announced a $1.5B increase in the share repurchase authorization, to $2B, or 30% of the market cap.

• Consolidated revs were $1.18B, up 2% y/y constant currency and slightly above the Street's $1.15B estimate, with DTC revs up 11% y/y and Wholesale revs down 8%.
• Crocs Brand revs were $1.0B, up 4% y/y, and included DTC revs up 12%, Wholesale revs down 5%, North America revs up slightly, and International revs up 7%.
• HEYDUDE revs were $179M, down 6%, with DTC up 7% and Wholesale down 17%.
• Adjusted EPS increased 8% to $4.55 vs. the Street's $4.35 and incorporated 170 bps of gross margin deterioration and 20 bps of SG&A expense de-leverage.
• Ending inventories were down 4% y/y after being up 2% in the first quarter.
• Full-year guidance includes revs up 1%-2% from last year's $4.04B vs. a prior down 1% to up 1%, modest expansion in operating margin from 2025's 22.3%, same as before, and adjusted EPS of $13.70-$14.00 vs. $12.51 last year and a prior $13.20-$13.75.
• Full-year guidance assumes Crocs Brand revs up 2%-3% after a slight increase in 2025 and HEYDUDE revs down 2%-4% on top of a 14% drop in 2025, all constant currency.
• DoRCR INSIGHT: CROX shares had rallied 50%+ since the beginning of the year as performance has been exceeding low expectations, but there are still some notable negatives to the story, including ongoing wholesale weakness at both brands, margin pressures, the potential for only modest growth at Crocs in 2026, and ongoing declines on declines at HEYDUDE.

Boot Barn (BOOT, $150.89) had a better-than-expected 1Q27 (June) and comped up 4.7% after +6.1% in the fourth quarter, while the 2-year comp of +14.1% accelerated from 4Q26's +12.1% and reflected broad-based strength across merchandise categories, geographies, etc., while EPS were well ahead of expectations, even adjusting for a tariff refund benefit, and mgmt maintained full-year comp guidance while noting a slower trend in July, and raised EPS to reflect tariff refunds.

• Comps increased 4.7% on top of +9.4% last year and were modestly above the Street's +3.5% estimate, while total sales grew 18% to $593.5M on the comp and a 20% y/y increase in the store count, to 566, including 27 store openings in the first quarter.
• Growth was broad-based across merch categories, channels and regions in the quarter.
• Retail same-store sales increased 3.8%, and e-comm comps increased 13.4%, and by month, consolidated comps grew 5.0%/3.4%/5.4% in April/May/June.
• EPS were $2.29 vs. $1.74 last year and the Street's $1.69 and would have been $1.91 absent a $0.38 per share benefit from tariff refunds, added 250 bps to merchandise margin.
• Inventories look good and were up 1% y/y on a same-store basis at quarter's end.
• FY27 guidance still includes comps of +2%-4% and sales up 14%-16%, to $2.58B-$2.63B, while EPS are now expected at $8.80-$9.23 vs. $7.35 in FY26 and a prior $8.21-$8.64.
• Second quarter guidance includes comps of flat to up 2% against a +8.4% comparison and reflects flattish comps for the month of July, first month of the quarter.
• Full-year guidance still assumes 70 new stores, which implies mid-teens % y/y growth.
• DoRCR INSIGHT: The continued strong comp growth on top of tough comparisons is a key positive, as are the broad-based sales performance in the quarter and BOOT's substantial store growth opportunity, and while the slower July trend is likely to raise some eyebrows, July is a lower-volume month and can be impacted by summer seasonal events and concerts.