margins

In the world of international peacekeeping, a quiet revolution is underway—one that moves beyond counting women to fundamentally transforming how security institutions operate. At the heart of this change is the Elsie Initiative Fund (EIF) at UN Women, whose holistic approach addresses not just recruitment numbers but the very systems that have historically prevented women from thriving in peacekeeping roles.

In an exclusive interview with Modern Diplomacy, Deborah Warren Smith, Manager of the Elsie Initiative Fund, explained why this shift is critical. “If you just focus on numbers alone, you are treating the symptoms and not the cause,” she noted. “We look at systems, the laws, institutional policies, leadership cultures, social expectations, all of which can either enable or prevent women from deploying and becoming valued members of security institutions.”

The Root Cause: Why Culture Trumps Quotas

The most entrenched challenge, according to Ms. Smith, is institutional culture. Military and police organizations often operate within masculine norms that value toughness and maintain informal gatekeeping by senior leadership. Women who challenge these norms by questioning or leading may face resistance, isolation, or harassment.

To address this, the EIF employs a scientific, evidence-based methodology called the Measuring Opportunities for Women in Peace Operations (MOIP). This diagnostic tool assesses barriers across ten key areas, interviewing both women and men within security institutions to build a comprehensive picture of the challenges. Countries like Liberia have used these insights to design targeted interventions, such as physical training support for women, resulting in increased recruitment and retention.

This focus on systemic barriers represents a fundamental departure from traditional approaches. Where many initiatives see the lack of women as a recruitment problem to be solved, the Elsie Initiative identifies it as a symptom of institutional failure. By shifting the focus from individual women to the structures that hold them back, the EIF is not just asking for a seat at the table, it is helping to rebuild the table itself, creating a foundation where women can not only enter but truly lead and thrive.

The process is deliberately collaborative, not prescriptive. After a Barrier Assessment is complete, the EIF works with nations to co-design interventions—from reforming parental leave policies in armed forces to ensuring women have access to specialized training and equipment. This ensures that solutions are not imposed from the outside but are owned and sustained by the institutions themselves, turning policy into lasting practice and political will into operational reality.

The Ripple Effect: Creating Institutional Change

The EIF’s “Gender Strong Unit” concept offers a powerful example of their approach in action. These are units where the percentage of women is at least five points above UN parity targets, with women in leadership and technical roles. Senegal, for instance, has deployed a Gender Strong Unit commanded by a woman for the first time, not once, but three times.

The impact is tangible. “The men in those units have reported that the culture is less competitive and more collaborative,” Smith shared. “It enables them to work better together during patrols and engage more effectively with local communities.”

This institutional rewiring creates a virtuous cycle. As more women deploy into leadership roles, they become visible proof of change, directly challenging entrenched stereotypes and inspiring the next generation. This shifts the internal culture from within, making security institutions more attractive and accessible to women not as an exception, but as the norm. The result is a self-reinforcing system where policy, representation, and culture evolve together to create a more professional and effective force.

Beyond culture, the EIF helps countries institutionalize change. In Zambia, the police service is developing and implementing an anti-sexual harassment and abuse policy, moving beyond creating documents to ensuring real accountability and safety.

A Campaign for the Future: “When Women Lead”

This tangible progress sets the stage for the most human element of the Elsie Initiative’s work: spotlighting the leaders who are living this change. Coinciding with the 25th anniversary of UN Security Council Resolution 1325, the EIF will launch When Women Lead—a digital campaign featuring a mini-series of interviews with groundbreaking uniformed women from around the world.

Launching in November, the series will include:

• Lieutenant General Cheryl Pearce, Acting UN Military Adviser
• Commissioner Binetou Guisse, Senegal National Police
• Major General Anita Asmah, Ghana Armed Forces

These stories represent the culmination of the EIF’s work, proof that when women lead, peacekeeping becomes more effective, responsive, and grounded in the communities it serves.

The New Peacekeeping: Where Inclusion Means Effectiveness

As we look toward the future of global security, the Elsie Initiative Fund offers more than just a blueprint for gender equality, it presents a compelling case for why inclusive peacekeeping is smarter peacekeeping. The work transcends quotas and tick-box exercises, aiming instead for a fundamental rewiring of how security institutions operate.

“What we would really like to see in five to ten years,” Smith concluded, “is countries embedding women, peace and security into their operational frameworks. The conversation would shift from ‘how many women’ to ‘how effective is our force because it is inclusive.’”

This vision where diverse teams create more collaborative environments, where different perspectives lead to better community engagement, where institutional cultures foster rather than hinder potential, represents the ultimate goal. It’s not about women succeeding in a man’s world, but about building a better, more effective peacekeeping environment for everyone.

As the EIF continues to partner with nations and showcase stories of women leaders, it becomes increasingly clear: the future of global peacekeeping isn’t just about having more women in the room—it’s about ensuring everyone in that room can lead, contribute, and transform what peacekeeping can achieve.

To follow these inspiring stories and learn more about the Elsie Initiative Fund’s work, follow their “When Women Lead” campaign launching this November on their website and social media channels.

Franklin Street Advisors disclosed an exit from Intuitive Surgical (ISRG -0.92%) in its latest SEC filing for the quarter ended September 30, selling 42,601 shares for an estimated $23.2 million.

What Happened

According to a filing with the Securities and Exchange Commission released on Thursday, Franklin Street Advisors sold its entire holding in Intuitive Surgical, divesting 42,601 shares. The estimated value of the transaction, calculated using the average market price during the quarter, was approximately $23.2 million.

What Else to Know

Franklin Street Advisors’ Intuitive Surgical position previously comprised 1.4% of the fund’s 13F assets.

Top holdings after the filing:

• NVDA: $132.2 million (7.6% of AUM)
• MSFT: $115.2 million (6.6% of AUM)
• AAPL: $110.4 million (6.4% of AUM)
• GOOGL: $91.2 million (5.3% of AUM)
• AMZN: $72.5 million (4.2% of AUM)

As of Thursday afternoon, shares of Intuitive Surgical were priced at $443.87, down 9.5% over the past year and underperforming the S&P 500’s 16% gain.

Company Overview

Company Snapshot

• Intuitive Surgical offers the da Vinci Surgical System for minimally invasive surgery and the Ion endoluminal system for diagnostic lung procedures, along with surgical instruments, digital solutions, and support services.
• The company generates revenue primarily through the sale of surgical systems, recurring instrument and accessory sales, and service contracts for its installed base.
• It serves hospitals, surgical centers, and healthcare providers globally, targeting institutions seeking advanced minimally invasive surgical capabilities.

Intuitive Surgical, Inc. develops, manufactures, and markets products that enable physicians and healthcare providers to enhance the quality of, and access to, minimally invasive care in the United States and internationally. Its strategic focus on innovation and expanding procedure adoption underpins its long-term growth trajectory.

Foolish take

Franklin Street Advisors’ $23.2 million sale of its entire Intuitive Surgical position marks a clear step back from the medical robotics firm after a volatile year for the stock. Shares have fallen more than 25% from their all-time high in January, as investors weigh valuation concerns and new tariff-related risks that management warned could trim 2025 margins by about 1 percentage point.

In its second-quarter 2025 earnings, Intuitive posted revenue of $2.4 billion, up 21% year-over-year, with worldwide da Vinci procedure volume climbing 17%. Meanwhile, GAAP net income rose 25% to $658 million ($1.81 per share). Yet even with expanding adoption, tightening gross margins—driven by higher input costs and tariffs on components from Mexico, Germany, and China—tempered enthusiasm.

CEO Dave Rosa said Intuitive remains “committed to advancing care” and expanding access to minimally invasive surgery worldwide. But after a multi-year run-up, Franklin’s decision to take profits may signal growing caution among institutional investors who see near-term headwinds outpacing the company’s impressive long-term growth story.

Glossary

13F reportable assets: Assets that institutional investment managers must disclose quarterly to the SEC, showing their holdings in U.S. publicly traded securities.
Assets under management (AUM): The total market value of investments that a fund or firm manages on behalf of clients.
Full exit: When an investor sells all shares of a particular holding, eliminating exposure to that asset.
Stake: The amount of ownership or investment a fund or individual holds in a company or asset.
Filing: An official document submitted to a regulatory authority, such as the SEC, to disclose financial or operational information.
Divesting: Selling off an asset or investment, often to reduce risk or change portfolio strategy.
Minimally invasive surgery: Surgical procedures performed through small incisions, often using specialized instruments or robotic systems.
Installed base: The total number of a company’s products currently in use by customers.
Service contracts: Agreements for ongoing maintenance, support, or services related to products sold.
Procedure adoption: The rate at which new medical procedures or technologies are implemented by healthcare providers.
TTM: The 12-month period ending with the most recent quarterly report.

Vince(VNCE 94.33%) reported second quarter fiscal 2025 earnings on August 6, 2025. Net sales reached $73.2 million, down 1.3% year-over-year (YoY), while adjusted net income excluding a one-time employee retention credit was $4.9 million ($0.38 per share), supported by a 300 basis point year-over-year gross margin improvement and strong direct-to-consumer (DTC) sales growth of 5.5%. This summary provides singular insights on margin expansion, supply chain risk management, and multi-channel execution, all critical to the long-term investment thesis. For reference, the second quarter fiscal 2025 period ended July 31, 2025.

Gross margin expands as Vince mitigates tariffs

Gross profit increased from $35.1 million to $36.9 million compared to the second quarter fiscal 2024, with gross margin expanding 300 basis points to 50.4% compared to the second quarter fiscal 2024, despite higher tariffs and freight costs. This margin strength resulted from a combination of strategic pricing, reduced discounting, and improved product cost management, against a backdrop of a less favorable macro environment for apparel manufacturers.

“Gross profit in the second quarter was $36.9 million or 50.4% of net sales. This compares to $35.1 million or 47.4% of net sales in the second quarter of last year. The increase in gross margin rate was primarily driven by approximately 340 basis points due to the favorable impact of lower product costing and higher pricing, approximately 210 basis points due to favorable impact of lower discounting, partially offset by approximately 170 basis points due to higher tariffs and 100 basis points due to higher freight costs.”
— Yuji Okumura, Chief Financial Officer

Effective margin management demonstrates that Vince’s value proposition and pricing power help offset inflationary and regulatory headwinds.

Vince rapidly diversifies supply chain to curb concentrated risk

In fiscal 2024, the company sourced approximately 80% of its products from China, with aggressive initiatives under way to cap exposure to any single country at 25% by the 2025 holiday season. Such rapid supply chain adaptation is notable given persistent apparel industry vulnerabilities to shifting tariffs and global sourcing disruptions.

“So the product that’s hitting the floor now fall, that really wasn’t impacted. I mean, that was already produced. That was kind of the stuff that was being held. It’s really as we get the prespring or holiday, where we made a lot of the movement. And as we mentioned before, it’s somewhat less about China now because these tariffs keep moving around. It’s really more about not being overexposed in any one country. And, you know, we’re targeting 25% to kinda be that cap in terms of any one country, and I think we’ll get there, for holiday and certainly as we get into spring.”
— Brendan Hoffman, Chief Executive Officer

Vince is shifting to a multi-country sourcing strategy to limit exposure to any single country, targeting a 25% cap per country.

DTC sales growth offsets wholesale softness for Vince

The DTC segment posted 5.5% year-over-year growth, propelled by both retail and ecommerce, even as the wholesale channel declined 5.1% year-over-year due to temporary shipment delays. Store investments, including remodels and new locations in Nashville and Sacramento, target underpenetrated regions and support omnichannel growth strategy.

“With respect to channel performance, our direct to consumer segment increased 5.5% with both our ecommerce and store channels contributing to the growth. This was offset, however, by a 5.1% decline in our wholesale segment as full shipments went out later than the prior year as tariff mitigation strategies pushed the timing of receipts back by approximately three weeks. Despite the impact on the top line, the delays in our supply chain enabled us to elongate our spring selling season, contributing to strong gross margin performance for the quarter.”
— Yuji Okumura, Chief Financial Officer

Looking Ahead

Management guides to net sales flat to low single digit year-over-year growth for the third quarter fiscal 2025, operating income margin between 1% and 4%, and adjusted EBITDA margin (non-GAAP) between 2% and 5%. Planned reinvestments in marketing and retail initiatives, along with anticipated incremental tariff costs of approximately $4 million to $5 million (with half expected to be mitigated), temper the margin outlook for the back half of fiscal 2025. No additional new store openings are scheduled beyond Sacramento in October 2025.

The legendary investor Warren Buffett is famous for buying quality businesses with durable competitive advantages. Just take a look at one of his most famous holdings: Coca-Cola. Few businesses in the world have Coke’s name brand recognition, or its level of customer loyalty.

One of the best ways to gauge whether a business has a durable economic moat is to look at its margins. Is the company in question far more profitable than its competitors? And has it maintained these elevated margins for years at a time? If so, then that business looks like a potential addition to Buffett’s personal portfolio.

Right now, there’s one chipmaker that is likely getting Buffett’s attention. The margins for this business are simply off the charts.

Warren Buffett probably loves this AI company

Few companies in the world are benefiting as much from the artificial intelligence revolution as chipmaker Nvidia (NVDA -0.01%). At its core, Nvidia is a chip stock. It manufactures hardware that allows modern computing technologies to function. Artificial intelligence is no exception. That industry requires massive numbers of chips to train, launch, and execute its models.

Due to early investment, Nvidia is the largest chipmaker in the world when it comes to delivering chips designed for the AI industry. Many estimates peg it at a market share of 90% or more. Overall, Nvidia’s chips are generally considered superior in various key performance metrics. But it’s really Nvidia’s software platform that creates most of the magic. Developed way back in 2004 and later released in 2007, Nvidia’s CUDA platform — which stands for Compute Unified Device Architecture — allows customers to customize its chips with parallel computing capabilities that tailor its performance specifications to exactly what that customer needs.

NVDA Gross Profit Margin (Quarterly) data by YCharts.

The result of CUDA’s introduction was twofold. First, Nvidia’s chips could be customized to extract greater performance than competing chips. Second, customers became embedded within Nvidia’s hardware and software flywheel. If customers wanted to switch to another chipmaker’s products, they would need to alter both their hardware and software systems — creating critical friction points that keep these customers within Nvidia’s ecosystem for the long term.

The end result is superior gross margins for Nvidia versus competitors like Intel and AMD. And while profitability has dipped in recent quarters due to trade restrictions in China and onetime manufacturing costs for its new Blackwell chips, Nvidia’s gross margins remain roughly double other chipmakers like Intel and AMD. Nvidia executives expect gross margins to move above the 70% mark again by the end of the year as these near-term headwinds abate.

Image source: Getty Images.

Is it time to load up on Nvidia stock?

In many ways, Nvidia is very similar to Apple. Years ago, analysts were worried about Apple’s elevated gross margins. The company, after all, produced mostly hardware. As we’ve seen time and time again in the technology space, hardware eventually gets copied and commoditized, reducing excess profitability for industry leaders.

But Apple’s profitability didn’t dip heavily over the past decade. That’s because the company integrated a huge amount of software into its hardware, offering to keep customers within the Apple ecosystem. There’s a reason many people not only own iPhones, but also iMacs, AirPods, and iPads. Each device works seamlessly together, and switching from one product makes all of your other products less valuable.

The same can be true of Nvidia today. Yes, it produces some of the best GPUs on the market. But its CUDA software allows the company to capture both the hardware and the software side of the equation. Switching from Nvidia’s hardware, therefore, requires a lot more work than just swapping components.

Trading at 58 times earnings, Nvidia stock is far from cheap. But as Buffett has proven over the decades, paying a bit more for a premium business is worth it if your holding period is long enough. If you’re interested in adding an AI powerhouse stock to your portfolio, Nvidia should top your buy list.