A fashion retailer just turned in one of its strongest quarters in years with double-digit sales growth across key brands, but shares are slipping premarket as investors worry about tariffs and spending. The pullback may be a chance to get in.
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What to Watch
Premarket Earnings:
Toronto Dominion Bank [TD]
Canadian Imperial Bank of Commerce [CM]
Li Auto Inc. [LI]
Dollar General Corporation [DG]
Dick’s Sporting Goods Inc. [DKS]
Aftermarket Earnings:
Dell Technologies Inc. [DELL]
Marvell Technology, Inc. [MRVL]
Autodesk, Inc. [ADSK]
Affirm Holdings, Inc. [AFRM]
Economic Reports:
Initial jobless claims [Aug. 23]: 8:30 am
GDP (First revision) [Q2]: 8:30 am
Pending home sales [July]: 10:00 am
Fed Governor Christopher Waller speaks: 6:00 pm
Technology
Pure Storage Tops Estimates, Surges in Premarket
Pure Storage (PSTG) designs flash-based data storage systems for enterprises, helping companies modernize infrastructure and manage the explosion of data created by AI workloads. The company has become a key player in all-flash arrays, competing with legacy hardware vendors by offering faster, more efficient storage solutions.
For its fiscal second quarter, Pure reported earnings of $0.43 per share, beating Wall Street’s $0.39 estimate. Revenue climbed 13% year-over-year to $861 million, edging past expectations of $846 million.
Subscription services continued to shine, up 15% to $415 million, with annual recurring revenue reaching $1.8 billion, an 18% increase. The firm also added more than 300 customers in the quarter, bringing its total client count to nearly 60,000, with strong traction among hyperscale names like Meta.
Shares jumped 3.9% in after-hours trading to $59 and extended those gains in premarket, rising more than 14% to about $70, just shy of a fresh 52-week high at $73.67.
The company paired its results with upbeat guidance, projecting fiscal 2026 revenue of $3.60–$3.63 billion, or roughly 14% growth, and expecting Q3 revenue of $950–$960 million. Despite a lofty forward P/E near 160, Pure has more cash than debt and a current ratio of 1.61, offering balance sheet stability.
Investor Angle: Pure Storage is well on its way to becoming a stealth AI infrastructure play. The market is rewarding its consistent growth and strong recurring revenue, and a move past $73 could trigger new momentum. For growth-focused investors, I’d be watching for an upside breakout as enterprises ramp AI-related storage needs, but I wouldn’t be afraid to dip in here if you want to build a position.
Restaurants
Cracker Barrel’s Branding Misstep Creates Volatility
Cracker Barrel Old Country Store (CBRL), a chain known for its Southern-style comfort food and roadside shops, found itself in the middle of a brand storm this week. The company unveiled a new logo aimed at attracting younger customers, only to face a wave of backlash on social media, including criticism from political figures.
Within days, management scrapped the redesign and reverted to the classic look.
The short-lived rebrand briefly erased nearly $100 million in market value before the stock rebounded, climbing 8% Wednesday to close near $62. Cracker Barrel’s year-to-date gain now sits at 13%, but shares remain far below their $71.93 high.
The episode highlights how challenging it has become for legacy consumer-facing brands to strike a balance between tradition and attempts at modernization.
Analysts noted that while the company sought to broaden its appeal, the move risked alienating its loyal core customers, echoing past stumbles, such as Gap’s short-lived logo revamp and “New Coke” decades earlier.
At the business level, Cracker Barrel continues to rely on its restaurant footprint and retail operations, with dividend payouts providing income investors with some stability. The branding reversal likely avoids further damage, but it also underscores the challenges the company faces in re-energizing growth without sparking cultural controversy.
Investor Angle: I think the quick recovery in the stock shows that markets value consistency over risky brand experiments. Cracker Barrel may not be a high-growth story, but the combination of stable traffic and a 1.6% dividend yield could appeal to defensive investors looking for steady, income-generating names.
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Consumer Discretionary
Urban Outfitters Posts Strong Q2, Faces Post-Earnings Pullback
Urban Outfitters (URBN), the lifestyle retailer behind Anthropologie, Free People, and its namesake chain, delivered one of its best quarters in years. The company has benefited from a resurgence in demand for fashion and home goods, while also leaning into its Nuuly rental business to capture younger consumers.
In its fiscal second quarter, Urban Outfitters earned $1.58 per share, topping expectations of $1.48. Revenue came in at $1.5 billion, slightly ahead of forecasts and up 11% year-over-year.
Net income rose 22% to $144 million, with gross margin improving 113 basis points to 37.6%. The company also reported record results across its brands, driven by double-digit gains in proprietary labels.
Shares rose 2% to $76.26 after the earnings release but slipped more than 5% in premarket trading Thursday to $73.81, reflecting investor caution about slowing discretionary spending and potential tariff pressures. Even so, the stock has more than doubled over the past year and is hovering near its 52-week high of $80.69.
Management projects high single-digit sales growth in Q3, with Nuuly expected to deliver mid-double-digit revenue increases. That guidance signals confidence in the company’s ability to keep momentum through year-end, despite a tougher consumer backdrop.
Investor Angle: The dip on earnings could be an entry point here. With strong brand performance, a perfect Piotroski Score, and continued Nuuly growth, Urban Outfitters looks positioned to hold its leadership in specialty retail. If consumer spending steadies, shares could rebound quickly toward new highs.
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Movers and Shakers
NVIDIA Corp. [NVDA] – Last Close: $181.60
Nvidia is the global leader in AI and graphics chips, powering everything from data centers to gaming rigs. The company posted record Q2 revenue of $46.7 billion with EPS of $1.04, topping estimates but missing slightly on its key data center segment as U.S. restrictions limited sales to China.
Shares are down about 2% premarket after the report, as investors weigh export risks against Nvidia’s strong Q3 guidance of $54 billion, above Wall Street forecasts. Analysts at Jefferies noted demand for its Hopper and Blackwell chips remains “rock solid,” with both lines effectively sold out.
My Take: Today’s dip feels like a potential buying opportunity. With hyperscale demand intact and China sales potentially resuming later this year, Nvidia still looks like a core AI winner heading into 2026.
Phibro Animal Health [PAHC] – Last Close: $32.20
Phibro Animal Health develops vaccines and medicated feed products for livestock, with a growing footprint in emerging markets. In Q4, revenue surged 39% to $378.7 million, led by strong Latin American demand and a 77% jump in sales from its newly acquired Zoetis feed additive portfolio. Adjusted EPS of $0.57 beat expectations, though EBITDA dipped on higher costs.
The upbeat results sent the stock nearly 15% higher in premarket trading, lifting it above its previous 52-week high. Management reaffirmed 2026 revenue targets of up to $1.48 billion, even as analysts remain cautious with a $24 median price target below current levels.
My Take: The market is finally starting to price in Phibro’s global growth story. Despite margin pressure, its niche positioning in animal health and expanding international reach could sustain momentum if execution stays on track.
Snowflake Inc. [SNOW] – Last Close: $200.39
Snowflake is a leading cloud data platform that helps enterprises store and analyze massive datasets across multiple providers. Its Q2 results impressed, with revenue up 24% year-over-year to $591 million and non-GAAP EPS of $1.00, well above last year’s loss. The company also raised its full-year product revenue outlook to $4.40 billion.
Shares surged nearly 14% in premarket trading on Thursday, adding over $11 billion to the market value. Investor enthusiasm is being fueled by the accelerating adoption of its AI-ready data tools and the growing demand from enterprises racing to modernize their infrastructure. More than 20 analysts have raised their targets, with the Street now looking for a potential run toward $260.
My Take: Snowflake is becoming a must-watch name in the AI data ecosystem. With guidance moving higher and momentum traders piling in, this could have more upside, though its lofty valuation means timing entries will be critical.
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Everything Else
Tesla’s Europe sales drop 40% in July, while Chinese rival BYD sees deliveries soar 225% in the region.
Japan’s top trade negotiator cancels a planned U.S. trip, raising doubts about progress on a $550 billion tariff-investment deal.
Cracker Barrel scales back its new logo rollout after consumer pushback sparks a broader debate on brand identity.
Major brokerages now expect a September rate cut after Fed Chair Powell flagged potential labor market weakness.
The Bank of Canada says it will stick with its 2% inflation target in 2026, resisting calls to loosen the framework.
That’s all for today. Thank you for reading. If you have any feedback, please reply to this email.
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— Adam Garcia
Elite Trade Club
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