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Now time for some of today's trending tickers. We are watching Gap, Ulta, and Dell. First up, Gap, warning about the impact of tariffs, saying it will cost the company $250 million to $300 million without mitigation efforts and up to $150 million with mitigation efforts. The company says it's already taking steps to diversify its supply chain and reduce its exposure to China. Despite the warning, the retailers first quarter results did top expectations. However, shares investors sending them lower here extended hours by about 16% here. Uh two things that jumped out to me from the call at least, uh they talked about inventory, maintaining disciplined inventory management. Um they did have and they ended the fiscal year with levels up 3.6% year-over-year. They said that the increase was primarily due to the timing of some of the in-transit inventory, of course as they navigated some of the macroeconomic conditions. Also on what they're saying on the consumer, they are saying that they've still been highly of course, operating in this highly dynamic backdrop for the last several years, uh and expecting the same for 2025. Um but they are seeing growth across different income cohorts in the fourth quarter at least here. lower income cohorts

Absolutely. Absolutely. That's really important given the Old Navy brand and the Gap brand as well. But uh given the fall off that we're seeing in the stock this morning, I just wanted to take a look at Gap year to date here as you can see, uh, well, that's gonna need a couple of minutes because we are ahead of the market open here, but they are on track to erase the year to date gains that they have. So it looks like it's up 18% year to date, but that is set to erase. So just showing you the degree of today's drop. They also had a revenue fall for Banana Republic in the first fiscal fiscal quarter compared to a year prior. And they also had some pressure in Athleta as well, which uh initially we've been talking about as a competitor to Lululemon. Now we're seeing a little bit of a falloff there. Um it's interesting that the tariff hit that the company put forward is being perceived so negatively by the street, a city analyst this morning saying that that it was surprising that the tariff burden was expressed to be so high. But Gap did say that they think they'd be able to handle about half of that 250 to 300 million dollar tariff hit. Um so obviously it would be half that level in terms of the impact on operating income. Um but of course, it's just going to depend on what happens with the tariffs as well. And you can see obviously that putting the stock under pressure, love a conversation with the CEO coming up here. But next up, let's talk about Ulta raising its full year outlook after reporting better than expected first quarter results. The cosmetics retailers seem strong demand as consumers continue to spend on beauty. Those shares up over 11%. Take a look at some of the response that we're getting in from Wall Street here. City saying, given current momentum in the company, we continue to see upside. And this is the key here. A lot of the notes I'm getting in this morning saying they think the guidance that the company gave was actually conservative. They see bigger growth than the company signaled going forward here. Bloomberg Intelligence saying with their continued execution, they again see an the outlook that was given as conservative.

Yeah, under promise, over deliver, even if the under promising still is very favorable. And one of the things that uh of course within this optimistic outlook that they were talking about, forecasting net sales between 11 and a half billion and $11.7 billion, company expecting comp sales growth as well within that, to range from flat to 1 and a half percent potential to climb second half of the year. But I mean, this squarely fits into that little luxury part of your portfolio or trading thesis. If you think that in times of a consumer at least uh weakening in the vibes, then they're going to lean into the little things that bring them happy, your little cup of coffee there, whether that be from Sbucks, or whether that be from, you know, Brooklyn Bagel down the street from me every morning, or whether that be into some of the makeup, the powders.

Little lipstick.

A and Ali Kanal and I were talking about starting a men's powder business that hasn't gone so well in the past. So maybe maybe we hold off for a little bit.

I'll subscribe to that. I like it.

We're rounding up investors. So, well, we'll be back. Yes. Uh finally here, let's talk a little Dell. Dell lifting its full-year profit outlook, saying it is seeing quote, unprecedented demand for AI optimized servers. The company also expects profitability to improve in its computer and servers and storage businesses here. Shares of Dell right now, they are down due by about 1.6%.

Yeah, interesting to look at some of the analyst commentary here. AI server demand and orders in fiscal first quarter as well were greater than typical deployment expectations. JP Morgan saying they're well positioned to lead the industry in relation to AI deployments and differentiated capabilities. Uh they do talk about some softness in the macro potentially hurting the company, and that could be why we're seeing these shares moving to the downside just a bit this morning. And you can scan the QR code on your screen to track the best and worst performing stocks with Yahoo Finances trending tickers page.

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