Author: Nabaparna Bhattacharya

Papa John’s International, Inc. (NASDAQ:PZZA) shares rose Wednesday after the company revealed a major refranchising move.

The firm said longtime franchisee Pie Investments took over 85 stores formerly run by Colonel’s Limited, LLC, and committed to launching 52 more outlets by 2030.

The acquired restaurants cover markets around Washington, D.C. and Baltimore. Pie Investments now runs over 150 Papa John’s restaurants. The group said it aims to own 250 total outlets by 2030.

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The prior operator, Colonel’s Limited, LLC, traced its partnership with Papa John’s back to 1993.

Its leadership built a strong reputation by embracing early digital ordering and fueling pizza delivery growth.

Papa John’s paid tribute to that legacy as it handed control to Pie Investments.

Leadership’s Take On Expansion

“Chris Patel’s growth mindset and entrepreneurial spirit are exactly the qualities Papa John’s is looking to emphasize among our franchisees,” said Ravi Thanawala, the company’s CFO and North America president. Thanawala praised Patel’s track record in acquiring restaurants and boosting profitability.

“Papa John’s well-known commitment to quality continues to make the brand an attractive investment for entrepreneurs,” said Chris Patel, COO and partner at Pie Investments. He added the team plans to leverage enhanced tools to improve operations and deliver better experiences to pizza lovers.

Strategic Significance

This refranchising deal underscores Papa John’s focus on expanding its footprint through trusted operators.

The plan should accelerate growth, especially in key Northeast and Mid-Atlantic hubs. It also lets Papa John’s tap franchisee expertise while scaling up more efficiently.

Investors in pizza chains may now also watch Domino’s Pizza Inc. (NYSE:DPZ) and Yum! Brands Inc. (NYSE:YUM).

Recent Earnings

Earlier this month, the company reported third-quarter adjusted earnings per share of 32 cents, missing the analyst consensus estimate of 41 cents.

For fiscal 2025, the company expects systemwide sales to rise 1% to 2% (previously 2% to 5%).

North American comparable sales are expected to be down 2% to 2.5% (previously flat to up 2%).

Price Action: PZZA shares were trading higher by 0.58% to $41.44 premarket at last check Wednesday.

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Bath & Body Works, Inc. (NYSE:BBWI) stock tumbled Thursday after the retailer missed third-quarter expectations and slashed its full-year outlook, a sharp warning that discretionary spending is weakening just as the holiday season begins.

The company reported third-quarter adjusted earnings per share of 35 cents, missing the Street view of 40 cents.

Following the results, Telsey Advisory Group analyst Dana Telsey maintained an Outperform rating on the stock, with a price forecast of $38.

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Key Metrics

Quarterly sales of $1.594 billion (down 1% year over year) missed the analyst consensus estimate of $1.634 billion.

Management said the Disney Villains collection fell short of expectations and the late-October holiday kickoff was “very challenging,” signaling softer-than-hoped consumer demand.

The company’s third-quarter 2025 results included a pre-tax gain of $8 million, or $6 million after tax, from selling a non-core asset.

Gross profit in the quarter under review totaled $658 million, down from $700 million a year ago. Gross profit margin slumped 220 basis points year over year to 41.3%.

The decline was primarily driven by a roughly 260-basis-point drop in merchandise margin, including a ~$35 million tariff hit (~200 bps). Management also cited higher promotional activity to clear seasonal inventory, while B&O leverage improved by 40 basis points thanks to exiting a third-party fulfillment center in the first quarter.

Operating Income was $161 million, lower than $218 million a year ago. Operating margin fell 340 basis points to 10.1%.

“Our third quarter results were below expectations, and we are lowering our outlook for the remainder of the year reflecting current business trends and continuation of recent macro consumer pressures,” said Daniel Heaf, chief executive officer of Bath & Body Works.

Fourth Quarter Outlook

The company expects fourth-quarter sales to decline in the high-single-digit range, citing a very challenging start to the holiday season and weakening macro consumer sentiment.

Early signs point to an intensely competitive holiday environment, and guidance assumes current trends persist, with only a modest impact from new online purchase limits.

International retail sales are expected to rise high-single digits systemwide, with reported net sales up mid-single digits.

Gross profit rate is projected at ~44.5%, pressured by tariffs and elevated promotions. Tariffs alone are expected to hit gross margin by roughly 100 basis points after mitigation efforts.

SG&A rate should be about 24%, reflecting deleverage from softer sales but supported by tight cost controls.

EPS is expected to be at least $1.70, well below the $2.17 consensus estimate, as the company pushes aggressive actions to stabilize performance.

Fiscal 2025 Outlook

The company lowered its full-year outlook following its third-quarter results and softer expectations for the fourth quarter.

The company now expects low-single-digit sales declines and has lowered its adjusted EPS outlook to at least $2.87, well below the earlier $3.35–$3.60 range and the $3.44 consensus estimate.

The company now expects a gross profit rate of roughly 43.3%, including a ~100-basis-point tariff drag after mitigation.

Adjusted SG&A is projected at about 28.3% due to weaker sales, and free cash flow is now estimated at approximately $650 million, reflecting reduced operating performance.

Price Action: BBWI shares were trading lower by 23.62% to $16.15 at last check Thursday.

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Amer Sports, Inc. (NYSE:AS) stock jumped Tuesday after delivering a strong third quarter, with earnings and sales topping Wall Street expectations, driven by double-digit growth across all regions and segments.

The company also raised its 2025 earnings and revenue outlook, highlighting powerful momentum in Salomon footwear, Arc’teryx and Wilson as it targets higher margins and sustained profitable growth.

Quarterly Metrics

The company reported third-quarter adjusted earnings per share of 33 cents, beating the analyst consensus estimate of 25 cents.

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Quarterly sales of $1.756 billion (+30% year over year) outpaced the Street view of $1.710 billion.

Amer Sports reported that all four regions experienced double-digit revenue growth in the third quarter, led by Greater China, which grew 47% with strong momentum continuing into the fourth quarter of 2025.

Segmental Analysis

“All three segments performed extremely well led by exceptional Salomon footwear growth, an Arc’teryx omni-comp reacceleration, and solid growth from Wilson Tennis 360 and our Winter Sports Equipment franchises,” said CEO James Zheng.

Technical Apparel omni-comp reaccelerated to +27%. Strength was broad-based across regions, categories and channels.

Outdoor Performance grew 36%. Growth was driven by continued excellent momentum in Salomon footwear and strong performance from Winter Sports Equipment.

Ball & Racquet Sports increased 16% to $350 million.

Margins

Gross margin increased 160 basis points to 56.8%, while adjusted gross margin increased 240 basis points to 57.9%.

Adjusted operating profit increased 41% to $275 million. Adjusted operating margin increased 130 basis points to 15.7%

Technical Apparel margins decreased 100 bps to 19.0%, Outdoor Performance margins increased 420 bps to 21.7%, and Ball & Racquet Sports margins increased 70 bps to 7.6%.

Adjusted net income attributable to equity holders of the company increased 161% to $185 million.

CFO Andrew Page said, “Salomon footwear continues to add a strong second leg of profitable growth to Arc’teryx’s already exceptional trajectory, significantly elevating the financial profile and long-term value creation potential of the Amer Sports portfolio.

Cash and cash equivalents totaled $353 million at quarter end, while net debt stood at $800 million. Year over year, inventories rose 28% to $1.71 billion.

Outlook

Amer Sports raised its 2025 GAAP earnings guidance to 88 cents to 92 cents per share, up from 77 cents to 82 cents. The outlook now sits above the 78-cent analyst estimate.

The company also lifted its 2025 sales forecast to $6.375 billion to $6.427 billion, from $6.22 billion to $6.27 billion. The new range compares with the $6.361 billion consensus.

Technical Apparel expects revenue growth of 26%–27% and a segment operating margin of about 21%.

Outdoor Performance expects revenue growth of 28%–29% with a segment operating margin of 13%–13.5%.

Ball & Racquet expects revenue growth of 10%–11% and a segment operating margin of 3%–4%.

Price Action: AS shares were trading higher by 10.21% to $33.90 premarket at last check Tuesday.

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Colgate-Palmolive Company (NYSE:CL) shares are trading lower on Friday after the company reported its third-quarter financial results.

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The consumer products giant reported third-quarter adjusted earnings per share of 91 cents, beating the analyst consensus estimate of 89 cents.

Quarterly sales of $5.131 billion were in line with the Street view. Net sales rose 2% in the latest period.

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Organic sales grew 0.4%, reflecting a 0.8% drag from winding down private label pet products.

The company maintained its lead in toothpaste, holding a 41.2% global market share year-to-date. It also remained at the top in manual toothbrushes, with a 32.4% worldwide share over the same period.

“As we transition to our new 2030 strategy and deploy our previously announced Strategic Growth and Productivity Program, we are well positioned to reaccelerate growth despite uncertainty in global markets and lower worldwide category growth,” said Noel Wallace, Chairman and President and Chief Executive Officer.

Metrics 

North America’s organic sales slumped 0.5% year over year, while those in Latin America jumped 1.7%. Organic sales in Europe gained 1.2% in the quarter under review.

GAAP gross profit margin slipped 170 basis points to 59.4% in the quarter. The base business gross profit margin fell 190 basis points, ending at 59.4%.

Operating profit in the quarter under review was $1.059 billion, compared with $1.065 billion a year ago. The operating profit margin was 20.6% compared with 21.2% in the same period last year.

The company exited the quarter with cash and equivalents worth $1.279 billion. Inventories totaled $2.109 billion.

Colgate-Palmolive reported operating cash flow of $2.745 billion for the nine months ended Sept. 30, versus $2.838 billion a year earlier.

Outlook

Colgate expects 2025 results to reflect current spot rates and finalized tariffs as of Oct. 29, 2025.

The toothpaste maker expects Net sales to rise by a low single digit, with a slight drag from foreign exchange.

Organic sales growth is now 1%–2%, including a ~70 basis points hit from exiting private-label pet sales.

On a GAAP basis, the gross margin is expected to track roughly in line with the 60.1% year-to-date level.

CL Price Action: Colgate-Palmolive shares were down 1.48% at $75.37 at the time of publication on Friday. The stock is trading near its 52-week low of $75.38, according to Benzinga Pro data.

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