Wednesday, August 5, 2026

CVS (CVS, $104.42) had an overall strong and better-than-expected 2Q26 (June), though with another quarter of flat y/y revs in Pharmacy & Consumer Wellness, which continues to be impacted by regulatory-related price reductions on some drugs, new (lower-priced) generic drugs, and Rx reimbursement pressures; mgmt raised full-year earnings and cash flow from ops guidance.

• Total revs grew 7% y/y to $106.10B vs. the Street's $100.03B and after +6% in the first quarter and incorporated flattish Pharmacy & Consumer Wellness revs of $33.82B.
• Comps increased 2.6%, with Pharmacy up 2.9% and front-store up 1.0%, and P&CW sales continued to benefit from incremental Rx vol from the acquisition of Rite Aid script files
• Adjusted EPS were $2.58 vs. $1.81 last year and the Street's $1.85 estimate and were driven largely by improved profit performance in CVS's Health Care Benefits segment.
• New 2026 guidance includes revs of at least $414B vs. $402.07B in 2025 and a prior $405B+, adjusted EPS of $7.90-$8.10 vs. $6.75 in 2025 and a prior $7.30-$7.50, and cash flow from operations of at least $11.5B vs. prior guidance for at least $9.5B.
• DoRCR INSIGHT: There are always many moving pieces in CVS's reports, but it does seem clear the company is benefiting from industry-wide store closings over the last several years and the 2025 Ch 11 and shutdown of #3 drugstore chain Rite Aid, which completed the liquidation and closure of its last group of stores last fall -- there were 1,200+ in May 2025.

Capri (CPRI, $16.52) had an overall better-than-expected 1Q27 (June), though with continued weakness at the core Michael Kors banner, where constant-currency revs fell 8% y/y, similar to the fourth quarter, and management lowered full-year revenue guidance to reflect this dynamic but maintained earnings guidance and said it is taking actions to reduce operating expenses.

• Revs were $769M vs. the Street's $756.6M and incorporated Michael Kors revs of $590M, down 8% y/y in constant currency, and Jimmy Choo revs of $179M, up 9%.
• Adjusted EPS were $0.67 vs. $0.50 last year and the Street's $0.40 estimate and incorporated 200 bps of gross margin improvement on higher full-price sales and lower tariffs y/y.
• Inventories look good/lean and were down 20% y/y at the end of the quarter.
• Full-year guidance now includes revs of ~$3.4B vs. a prior ~$3.53B and reflects impacts from inventory delays at Michael Kors in 2Q27 ($50M), also soft trends in EMEA b/c of war in the Middle East ($50M) and greater forex pressures ($35M) than assumed previously.
• Full-year FY27 EPS are still expected to be ~$2.15, a 40%+ y/y increase from FY26.
• DoRCR INSIGHT: Not a terrible report overall, and good to see the improved +9% performance at Jimmy Choo after a flat fourth quarter, but Michael Kors is the core biz, and there is a trendline down high-single-digit % developing, with no good reasons to expect a big change.

Revolve (RVLV, $26.37) reported a good 2Q26 (June) with sequential acceleration in active customers, which grew 11% y/y, the fastest rate in nearly three years, while adjusted EBITDA was down slightly y/y when excluding $5.6M in IEEPA tariff refunds and was pressured by marketing investments around growth initiatives, including the spring launch of owned brand REVOLVE Los Angeles.

• Total sales grew 12% y/y to $347.4M vs. the Street's $341.9M and after +16% in the first quarter and incorporated REVOLVE sales of $302.5M, up 13%, FWRD sales of $44.9M, up 11%, domestic sales of $269.1M, up 11%, and international sales of $78.4M, up 16% y/y.
• Active customers grew 11% y/y to 3.04M after +8% in the first quarter, while total orders placed increased 11% y/y, and average order value was essentially flat at $299.
• Adjusted EBITDA was $26.8M vs. $22.9M last year and included a $5.6M gross margin benefit from tariff refunds; excluding this, gross margin increased 90 bps.
• Inventories look high and were up 25% at the end of the quarter, though the increase reflects growth initiatives, including the spring launch of the REVOLVE Los Angeles brand.
• Full-year guidance for gross margin, fulfillment, selling and distribution expenses is unchanged, while ranges for marketing and G&A expenses were tweaked higher.
• Mgmt called out the recent launch of Grow-Good beauty products -- created with Cardi B -- as another key revenue driver, esp as it relates to connecting with next-gen consumers.
• From the Call: Sales accelerated in July, first month of 3Q26, and increased 18%.
• DoRCR INSIGHT: The growth in active customers -- up 11% y/y after +8% in the first quarter +6% in the fourth quarter and +5% in the third -- speaks to Revolve's on-trend product and strong marketing program, while the bottom line is seeing some NT pressure from growth spending.

Bed Bath & Beyond (BBBY, $5.56) reported largely in-line 2Q26 (June) sales of $361.2M, up 28% y/y and incorporating the acquisition -- during the quarter -- of the former Kirkland's Home business, while the adjusted EBITDA loss grew from ($8M) last year to ($12M) in 2Q26 but was better than the Street's ($21.1M) estimate; mgmt announced a few things, including a corporate name change.

• Active customers increased 47% y/y to 6.4M, orders delivered increased 117% to 2.8M.
• Mgmt said growth in revs was a function of "strength" in the base online marketplace business, an improved assortment, benefits from investments in customer experience, and revs from the acquisition of The Brand House Collective (Kirkland's).
• Mgmt also noted better engagement and conversion and increased order frequency.
• Bed Bath & Beyond will change its name to Neighborhood Intelligence and begin trading on the Nasdaq under the ticker NXH on Monday, 8/17/26, and the company is also planning to relocate its corporate HQ from Salt Lake City to Nashville.
• Neighborhood Intelligence will be organized around three pillars: Omni-Channel Retail, which includes the stores and retail e-commerce, Home Services, and Home Ownership.
• Mgmt sees potential for $50M+ of annualized cost savings over the next 12 months as all the acquired businesses are brought onto one shared corporate platform.
• As a point of reference, the company's current and soon-to-be-acquired brands include Bed Bath & Beyond, The Container Store, Kirkland's, Lumber Liquidators, Cabinets to Go, Overstock, buybuy BABY, and some home services and home ownership businesses.
• DoRCR INSIGHT: There are a lot of moving pieces here with all the acquisitions and directional changes, and it's tough to benchmark progress and figure out what is working and what is not; the corporate name change adds another layer of confusion and makes it hard to assess what the core business is ultimately going to be and how the push with physical stores really fits in.