Daily Update on SCHD ETF for October 28, 2025
SCHD Stock Performance: The Schwab U.S. Dividend Equity ETF (SCHD) rose 0.33% to $27.12 as investors favored high-dividend and value stocks ahead of the Federal Reserve's policy decision, with a slight increase in pre-market trading as well.
Market Trends and Flows: Increased market uncertainty has made defensive sectors like Consumer Staples, Financials, and Energy more appealing, although SCHD experienced a net outflow of approximately $73 million over the past five days.
Analyst Consensus and Price Target: SCHD is rated as a Moderate Buy by analysts, with an average price target of $30.45, suggesting a potential upside of 12.28%.
Holdings Analysis: The ETF's top holdings with the highest upside include Coterra Energy and FMC Corp., while those with the greatest downside potential include Skyworks Solutions and Ford Motor, with a Smart Score of seven indicating expected market performance.
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- Exclusive License Agreement: Interparfums has entered into a 20-year exclusive license agreement with global lifestyle brand Nautica, taking charge of the creation, development, production, and distribution of Nautica fragrances, with projected annual sales exceeding $70 million in the initial years, significantly enhancing the company's market position.
- Brand Collaboration Outlook: CEO Jean Madar stated that this partnership will enrich Nautica's existing portfolio and develop modern fragrances aimed at attracting a broader consumer base, thereby driving market expansion and sales growth for the brand.
- Global Responsibility Transition: Effective January 1, 2030, Interparfums will assume full global responsibility for Nautica fragrances, enabling better resource integration and operational efficiency to tackle increasing market competition.
- Strategic Partnership: Jamie Salter, founder of Authentic Brands Group, praised Interparfums as a wonderful partner, highlighting their innovation and operational excellence across multiple brand managements, indicating that this collaboration will bring new opportunities for future brand development.
- Agreement Extension: Interparfums has signed a 15-year exclusive worldwide license agreement with Guess, Inc., extending their partnership until 2048, which solidifies their long-term collaboration in the fragrance sector.
- Global Responsibility: Under the renewed agreement, Interparfums will maintain full global responsibility for the creation, development, and distribution of GUESS fragrances, further reinforcing its leadership position in the global market.
- Market Growth: The renewal of this agreement not only reflects the trust and collaboration between the two companies but also aims to drive the continued growth of the GUESS fragrance portfolio, catering to global consumer demand for brand fragrances.
- Strategic Importance: By extending the partnership duration, Interparfums strengthens its strategic alliance with Guess, aiming to leverage both companies' resources and market advantages to enhance brand influence and market share.
- Agreement Extension: Interparfums has signed a 15-year extension of its exclusive worldwide license agreement with Guess, Inc., ensuring the continued development and distribution of its fragrances for an additional 23 years, thereby solidifying their long-term partnership.
- Market Outlook: The extension of this agreement positions Interparfums to maintain a competitive edge in the rapidly evolving fragrance industry, particularly amidst changing consumer preferences and market dynamics.
- Sales Projections: Interparfums anticipates net sales of $1.48 billion for 2026 and has set a full-year sales target of $1.47 billion, reflecting the company's confidence in its growth prospects despite ongoing macroeconomic headwinds.
- Direct-to-Consumer Expansion: The company plans to further expand its direct-to-consumer business model to adapt to market changes and enhance brand influence, thereby increasing customer loyalty and market share.

- Revenue Beat: Inter Parfums reported FY 2025 revenue of $1.49B, exceeding expectations by $20M, demonstrating the company's resilience and stable market demand amid challenging conditions.
- US Market Decline: Despite strong overall revenue, net sales in the US decreased by 3% year-over-year, primarily due to the impact of the discontinued Dunhill license, highlighting challenges in specific markets.
- Future Sales Targets: The company anticipates net sales of $1.48B for 2026 and has set a full-year sales target of $1.47B, indicating confidence in future growth and strategic planning.
- Direct-to-Consumer Expansion: Inter Parfums plans to enhance its direct-to-consumer business amid ongoing macroeconomic pressures, aiming to strengthen market competitiveness and customer loyalty.
- Option Attractiveness: Interparfums' $70 put option currently bids at $0.30, and if an investor sells to open this option, they commit to buying shares at $70, effectively lowering their cost basis to $69.70, which represents a 16% discount from the current share price of $83.79, making it appealing for those looking to enter at a lower price.
- Expiration Risk Analysis: Current analytics suggest a 90% chance that the put option will expire worthless, potentially yielding a 0.43% return on cash commitment or an annualized yield of 6.26%, providing a relatively safe income opportunity for investors.
- Covered Call Strategy: Meanwhile, the $85 call option bids at $0.10, and if investors buy shares at $83.79 and sell this call, they could achieve a total return of 1.56% if the stock is called away by January 2026, although they may miss out on higher upside potential if the stock price surges.
- Volatility Comparison: The implied volatility for the put option is 57%, while for the call option it is 34%, indicating differing market expectations for future price fluctuations, which investors should monitor to assess risk and potential returns.
Stock Performance: e.l.f. Beauty's shares have dropped 37.9% year-to-date, underperforming the industry and major competitors, amid concerns over slowing organic growth and margin pressures.
Operational Challenges: The company's core business has weakened, with negative organic sales in Q2 2026 due to shipment disruptions and international growth slowing, particularly in Europe.
Cost Pressures: Tariff-driven cost increases, particularly from reliance on Chinese production, have significantly impacted gross margins, while high operating expenses and debt from acquisitions further strain financial performance.
Market Outlook: Analysts have downgraded earnings expectations for fiscal 2026 and 2027, indicating a cautious investment stance is advisable until there is clearer visibility on margin stabilization and core business recovery.








