Reported results
- Sales of $1,528.1 million with same store sales increase of 2.2% compared to Q2 Fiscal 2026
- GAAP diluted EPS of $1.33 compared to loss per share of $0.22 in Q2 Fiscal 2026; diluted EPS included $0.86 asset impairment charges net of taxes
- Adjusted diluted EPS of $2.19 compared to $1.61 in Q2 Fiscal 2026
- GAAP operating income of $87.5 million compared to $2.8 million in Q2 Fiscal 2026; adjusted operating income of $107.2 million compared to $85.4 million in Q2 Fiscal 2026
- Gross margin of $602.4 million or 39.4% of sales, up 80 basis points to Q2 Fiscal 2026
- Cash and cash equivalents of $526.8 million as of quarter end compared to $281.4 million in Q2 Fiscal 2026
Guidance
- Updated Fiscal 2027 total sales guidance: $6.7 to $6.9 billion (unchanged from previous guidance)
- Updated Fiscal 2027 same store sales guidance: Flat to 2.5% (raised from previous (0.75%) to 2.5%)
- Updated Fiscal 2027 adjusted operating income guidance: $535 to $605 million (raised from previous $480 to $560 million)
- Updated Fiscal 2027 adjusted EBITDA guidance: $730 to $800 million (raised from previous $665 to $745 million)
- Updated Fiscal 2027 adjusted diluted EPS guidance: $10.45 to $12.15 (raised from previous $9.20 to $11.00)
- Q3 Fiscal 2027 total sales guidance: $1.37 to $1.41 billion
- Q3 Fiscal 2027 same store sales guidance: (1.0%) to 2.0%
- Q3 Fiscal 2027 adjusted operating income guidance: $31 to $48 million
- Q3 Fiscal 2027 adjusted EBITDA guidance: $82 to $100 million
Notes
Company raised full-year adjusted diluted EPS guidance by over 10% to reflect year-to-date operating performance, additional share repurchases, refunds of tariffs previously paid of approximately $30 million, and terms of new consumer credit agreement with Bread Financial. Company intends to enter into a $125 million ASR program. Board approved expansion of share repurchase authorization by approximately $385 million to a total of $700 million. Merchandise AUR was up approximately 6% to Q2 Fiscal 2026, with growth in both Bridal and Fashion. Guidance assumes full year weighted average diluted share count of approximately 38.8 million shares and excludes any potential further share repurchases subsequent to completion of the ASR.
Price and volatility reaction
The stock moved +24.0% on the print. No front-expiry chain was on file, so there is no straddle expected move. 30-day ATM implied volatility moved -15.1 vol points across the event (constant-maturity series — not the front-week crush).
| Measure | Value | Basis |
|---|---|---|
| Close before release | 82.67 | 2026-09-08 |
| Close after release | 102.48 | 2026-09-09 |
| Realised move | +24.0% | close to close |
| 30d ATM IV change | -15.1 vol pts | constant-maturity series, not the front expiry |
Source
The figures above come from the earnings release the company filed with the SEC on 2026-09-09 (8-K, Item 2.02). Read the original filing on sec.gov.