Dana Telsey

Justin cited a cost-optimization culture balancing leverage with marketing reinvestment; Patrice framed quality wholesale's role and a little more than 70% DTC mix going forward. Direct.

Patrice emphasized 4-year sustained 20%+ CAGR in China driven by brand values, cross-generational appeal, and local activations on Douyin. Guided mid teens China growth for FY27 while focused on long-term brand building.

Patrice said broadly consistent performance across full price, outlet, and digital with disproportionate digital growth. Expect to continue expanding full price stores globally. Outlet doors not expected to expand; some consolidation and closures planned. Justin said supply chain well positioned with significantly diversified sourcing and strong partnerships.

Justin noted strong quality of sales with AUR leading and promotional discounts declining. Digital saw nice acceleration from site interventions. Patrice said China driven by Shanghai Re-See show, 6/18 activation, Douyin live shopping, and Polo Play handbag launch. Q1 pricing mostly elevation and discount reduction, not tariffs.

Marketing at 7.3% of revenue to continue at similar level in FY2026. High-potential categories building scale with significant TAM. SoHo flagship purchased for long-term ecosystem investment.

Justin noted strong full-price and outlet performance with quality of sales across regions. Patrice discussed AI applications in creativity, predictive buying, and allocation tools.

Patrice said sourcing footprint significantly diversified over 7+ years with alternate production and nearshoring. China is high single-digit % of sourced units.

Patrice confirmed consistent product resonance globally. Core driven by Polo Shirts, cable knit sweaters, sports coats. Women's and handbags growing across geographies.

Jim said every major category comped positive; Hartshorn cited Northeast expansion and a plan for sustained 5% unit growth.

Conroy noted customer growth across every demographic, with the 18-to-24 cohort outperforming virtually every other tracked retailer. Marketing spend got leverage in Q1 with no material increases planned.

Conroy attributed DD's confidence to merchandising strategy and very strong performance trends. No change in store size. FY2026 openings primarily in older markets, benefiting from Rite Aid bankruptcy real estate. More weighted to summer and fall opening groups.

Hartshorn confirmed broad-based growth across income levels with no trade-down distinction. About 70% of openings in existing markets, 30% in newer markets. Northeast returns expected to be strong with denser population supporting higher sales.

Ladies business comping above chain. Home was comp eroding but turned positive in July after organizational changes. Rite Aid bankruptcy provided store acquisition opportunities.

Border stores in Texas and northern border underperformed due to cross-border traffic delays. DD's was comp enhancing with strong sequential improvement. Merch margin expected neutral ex-tariffs.

Conroy drew parallels to Boot Barn transformation in store environment and marketing. Also confirmed tariff response will mirror prior cycle: negotiate costs, adjust mix, selective price increases.

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Asked about product response by category and whether pricing was a factor; Frank detailed what's working (away-from-body, Define, Scuba) but did not address pricing.

Frank attributed the slowdown to negative brand commentary and underperforming launches, and guided gross margin 90bps below last year.

Meghan confirmed share maintained in total apparel but lost less than 1 point in activewear. Remained #1 women's activewear in U.S. New successes across both tops and bottoms including Unrestricted Power, ThermoZen, EasyFive, Groove Wide-Leg, and run capsule.

Calvin noted share held in premium athletic but slight share loss in performance apparel due to consumer trade-down. Spring 2026 newness across train, Scuba updates, Swiftly, and ABC franchises. CEO search focused on growth and transformation.

Meghan outlined pricing on a small portion of assortment plus sourcing efficiency actions impacting H2. Calvin detailed balanced newness success across lifestyle (Daydrift, Be Calm) and activity (Glow Up, Align No Line).

Calvin explained activations are customized by market maturity globally. Meghan detailed 100bps op margin decline with FX and tariffs comprising over 50% of the headwind.

CFO described a balanced first-half/second-half profit profile, with stronger gross margin and shrink benefits early and SG&A leverage later.

Gained prestige share in both B&M and digital (skin, fragrance, improving hair trends). Gained mass share primarily through mass makeup. Space NK learnings: clienteling, agility, small-box high-street efficiency. Protecting what makes Space NK unique.

Kecia noted momentum continuing from Unleashed plan. Chris explained H2 deleverage from inflationary pressures, moderating shrink benefit, investment timing shift and higher incentive comp.

Kecia framed Unleashed as internal prioritization of existing Investor Day strategies, not new information. Addressed execution accountability through transformation office.

Herrman highlighted Sierra's unique lifestyle DNA with good/better/best assortment attracting upper-income customers, projecting it as a growing bottom-line contributor in five years.

John noted flat Q2 merch margin despite tariffs with favorable markdowns. On stores, on track for 130+ net new stores with plenty of locations available, plus ~500 remodels planned.

Ernie noted increased marketing spend with an offensive posture, emphasizing breakthrough creative aimed at educating consumers who haven't shopped TJX. John confirmed relocations have shown positive results.

CEO confirmed no SAC exposure. Both retail and e-commerce channels performed well. Named specific wholesale partners performing well: Journeys, Foot Locker, ESG, run specialty. HOKA tied with Brooks for #1/#2 in run specialty channel.

CFO explained dynamics differ by brand. UGG partners are buying earlier and participating in growth. HOKA benefited from new door openings. Both drove higher Q2 wholesale but will impact H2 growth.