Adrienne Yih

Stefano cited HOKA share gains in performance run and trail; Steve said any tariff refunds would be shared with partners and are not in guidance.

Steven highlighted lower inventory as a positive for full-price selling and future order book strength. On macro, noted consumers still healthy and showing up for brands they want.

Stefano shared specific penetration metrics showing significant runway. Testing new retail partners this fall in U.S. and Europe. International 2-4 years behind U.S. on awareness.

CEO confirmed no issues from price increases, sell-through on key styles remains strong for both brands. CFO explained wholesale expansion was strategic from underpenetrated position, not growth-chasing. Balance will shift toward more DTC as wholesale expansion slows.

CFO confirmed back-half gross margin pressure will increase as tariffs hit COGS before price increases fully offset. FY2026 will see lower year-over-year gross margins from tariffs, upgraded material costs, and timing mismatch between cost increases and pricing actions.

CEO noted selective approach varying by brand and segment, protecting kids price points. CFO added price increases split across fall and spring seasons, targeting approximately $75M mitigation. Room left to adjust further based on final tariff levels.

CEO declined to provide specific door counts but emphasized selective, productivity-driven expansion. CFO explained increased marketing spend from gross margin improvement is going behind localized content globally.

Joanne emphasized the new-customer flywheel (11 million new, joining at higher AUR, Gen Z influencing all generations); Scott: demand creation ~12% of sales / ~$1B; Todd: focus on the $200-$500 space.

Todd explained Coach is executing with fewer SKUs but amplifying major families like Tabby and New York. Pink signature drops sold out in days not weeks. Stuart Vevers' stable creative leadership drives clarity of vision.

Todd noted 11 quarters of double-digit growth in Europe, still primarily concentrated in France with significant runway across other European countries. Coach expressive luxury positioning resonating with European consumers.

Joanne detailed AI embedded across value chain: product development (sketch iteration, color multipliers), inventory management, pricing, marketing content creation. Patented data fabric as foundation. Scott noted tech spend is under half of $200M CapEx with foundation already in place. Todd teased upcoming runway show product and new Kisslock sizes.

Todd explained Europe growth driven by value proposition, purpose campaigns, non-traditional locations, digital, and strong margins. Not chasing traditional European luxury model. Scott confirmed Kate Spade margin pressure from tariffs (disproportionate) and investments, but reducing discounting is the formula for long-term growth.

Todd cited DTC model, geographic diversification, product innovation, and data-driven insights as structural differences. AUR growth projected mid-to-high single digits with One Coach strategy lifting outlet AURs.

Joanne framed Kate Spade reset around younger consumer relevance and removing deselection barriers. Todd emphasized value-and-values positioning and wide spread to European luxury driving growth.

Ernie attributed earlier shopping to brand equity and coolness factor making TJX more of a gift-giving destination, not a purposeful timing shift. Social media presence driving reusable bag visibility. John reiterated 3-4% comp leverage model unchanged at flat to 10bp. Supply chain efficiency helped by higher ticket reducing unit volume, but new facility expansion still needed.

Ernie acknowledged apparel has been deflationary and promotional, with pricing power varying by item. Tariff costs expected to flow through gradually in steps rather than dramatic shifts.

Ernie noted this environment is different from 2018 due to broader tariffs plus inflation. Multiple levers: negotiate with vendors, selective retail adjustments, buy more profitably in current availability environment.

Ernie highlighted smaller market and smaller footprint stores as growth opportunity. Clarified Brands for Less is an investment while Grupo Axo is a joint venture, both in early days.

Ernie slightly favors a healthier environment, noting that historically it has not led to leaner inventories because retailers and brands chase the trend. TJX performs well in both environments.

Ernie sees potential housing tailwind more as a spring dynamic, believing current home strength is driven by internal execution and stale competition rather than macro housing factors.

Asked what customer research reveals guests want; Frank said guests want new, differentiated product and innovation plus community engagement.

Meghan clarified 35% newness is truly new product, not colorways. SKU reduction part of strategy. Jonathan Cheung (Creative Director) and Liz Binder (Chief Merchant) both report to Meghan. AI investments focused on guest-facing, go-to-market acceleration, and enterprise enablement.

Calvin described research-driven innovation across run, train, yoga, golf, and tennis with new performance fabric for weight training. Meghan confirmed no further pricing actions beyond prior small assortment increases; pleased with elasticity results.

Calvin noted improved chase processes can eliminate up to 2 months. Meghan revealed two-thirds of U.S. e-commerce orders fulfilled through Canada qualified for de minimis, making removal a meaningful impact.

Meghan said tariff and FX contributions to the unit-to-dollar gap are roughly equal. Tariff P&L impact is 60bps in Q2, 40bps full year, with mitigation actions coming in H2. Pricing actions start rolling out late Q2 into Q3.

Jim said closeout availability is strong with many canceled goods entering the market as mainstream retail softens; off-price will win.

Hartshorn confirmed DD's trends very consistent throughout quarter with nothing to call out on SNAP. Tariff impact neutral in Q4 and expected neutral into 2026. Inventory ending up 15% at quarter-end due to earlier holiday set versus prior year.

Metal-heavy home products seeing most obvious price increases. Tariff impact spans both direct imports and vendor pass-throughs across merchandise categories.

Direct tariff exposure is small. Brand penetration now at inflection point and will anniversary in FY2025. Q4 saw a slight AUR increase from better branded goods mix.

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CEO framed wellness around four pillars (nutrition and supplements, intimate care, rest and relax, essential routine) as a potential next major growth pillar that lifts trip frequency, and pointed to a more profitable salon and services business with more to come.

CFO tied the raise to strong Q1 P&L execution, operating profit increase and buybacks; named supply chain and SG&A discipline as leverage sources.

Kecia reaffirmed 1,800 long-term store target. Chris explained tariff-related inventory cost increases take one to two quarters to fully flush through average cost method. Modest price increases expected in Q4.

Kecia confirmed promo impact to gross margin lower than Q2 2024. Wellness expanded to 370 stores with 150 brands, 700 SKUs. Targeting $410B wellness market with $1B long-term potential.

Management outlined dedicated wellness team, 20+ new brands, expanded store presentation, and new categories (nutrition, mindfulness, sleep). Currently only 8 feet of dedicated space.