Ed Kelly

Stewart said base contract rates from completed renewals were not substantially different from last year and the swing factor is the fuel surcharge, with a smaller driver-shortage impact; surcharges reset on short timeframes, so freight rates could improve quickly if fuel falls.

Mike said the second half skews toward traffic as the company laps last year's tariff-related ticket actions, expressed confidence from the early traffic turn and a pleasing Q3 start, and defended the 1.6% discretionary comp as strong on top of a 6.1% prior-year comp (2% adding back helium) ahead of Q3/Q4 seasonal events.

Mike said helium remains tight but Dollar Tree's strong inventory position and scale, plus favorable timing after Valentine's Day, leave them comfortable.

Stewart said base freight rates remain favorable but fuel surcharges and some driver costs are baked into the back-half outlook; spot avoided.

Creedon described acceleration in store improvement with net one-third improving in a quarter. Weekly receipt surveys and website feedback improving monthly. Supply chain flow improvements enabling better shelf appearance and in-stock levels.

Creedon acknowledged unit decline as structural from multi-price trade-up but emphasized improving basket relevance, citing toy investment and customer feedback on assortment. Focused on basket composition rather than unit count.

Creedon reiterated early innings of multi-price penetration, expects multi-year runway of seasonal and everyday essential expansion. Customer response will guide ultimate mix destination.

Glendinning attributed wide range to macro uncertainty. On general liability, clarified this is settlement cost inflation not claim frequency, and full-year costs expected in line with prior year despite Q2 trending higher than initial outlook.

Glendinning confirmed confidence in full-year gross margin guidance. Creedon detailed five levers used in harmony starting with vendor negotiations before pricing.

Creedon provided detailed overview of five-lever mitigation toolkit and confirmed multi-price gives new flexibility to address tariffs, though acknowledged significant uncertainty around April 2 reciprocal tariffs.

Creedon described customers buying for need and closer to need, with Halloween products running a 10 comp in multi-price stores. Thanksgiving foil pan sales surged in the final week. Expressed confidence in the holiday set across toys, trimming, and gift categories despite five fewer selling days, with Christmas falling mid-week providing some offset.

Gregory framed it as a multiyear program funded by COGS, import and headcount savings, gliding shelf prices down gradually by geography rather than all at once.

Greg described a surgical, funded approach balancing short and long term, said the goal is fair-and-reasonable pricing rather than discount pricing, and declined to share price-test details until October 20.

David explained multi-level pricing approach: item-level, everyday price, and all-in promotional. Also focusing on simplicity of offers. Greg addressed speed question, Ron's team built good momentum, now his job is to operationalize and move faster. Acknowledged competitors running at good pace.

Ron attributed Q3 softness to SNAP pause, consumer uncertainty, and tougher comparisons. Q4 to date slightly ahead of guidance. Lowered another 1,000 items in Q3. David noted share trends improved despite softer sales and gross margin managed responsibly.

David pointed to consumer uncertainty, pharmacy mix, and reinvestment plans as reasons for not raising FCF guidance. Want to make smart investments delivering long-term ROIC value.

David explained Q2 LIFO included catch-up from Q1 plus reset for inflation running closer to midpoint. Split between catch-up and ongoing rate, so Q2 is not the run rate for remaining quarters.

Ron said competitive environment remains rational, KR more competitive in Q1 vs Q4 against EDLP peers. Price investments yielded better sales, better gross margin, and happier customers. David confirmed margin-neutral approach going forward.

Ron acknowledged e-commerce still unprofitable but improving at increasing rate. Consolidated all e-commerce under Yael Cosset. Reviewing every market and element of operations. Declined to disclose specific profitability figures.

Todd confirmed ASR completion expected in Q3, plus majority of remaining $2.5B authorization at year-end. On SNAP, noted historical experience showed customers shift to essentials first, but called it premature to project specific impacts.

Ed asked about strategic positioning post-merger. Rodney indicated nothing else transformational would use the available balance sheet capacity, suggesting focus on organic growth and capital returns.

Ed focused on gross margin sustainability. Todd indicated slightly favorable in Q4 excluding KSP, roughly flat when pulling out the divestiture impact.

Kevin said the AI work keeps Sysco at the high end of the algo with upside potential; Brandon walked through USFS Q4 items and '27 profit drivers.

Kevin noted limited disclosure between sign and close; could only share volume (4%) and profitability (on track). Addressed underinvestment concerns: third-party inspections on every store, fleet not needed for RD model, CapEx less than 1% of sales is appropriate. On labor, current staffing levels deemed appropriate with test-and-learn opportunity for upside. 30 years of profit growth cited as proof of durability.

Kevin noted large national chain restaurants down Y/Y from traffic and volume perspective, offset by strong non-commercial (FSM, travel, hospitality, government). National and local expected to grow in parity for FY2026. Strong signed wins with start-ship dates coming. Kenny confirmed USFS local expected to step up 100bps in Q2 and further in back half.

Kevin explained most customer loss happens at point of rep departure, not at noncompete expiry. Service improvements, stabilized retention, and growth programs more than offset potential ripple. Kenny addressed cost per case: SP and capacity investments are planned, will leverage as volume grows.

Kevin acknowledged market skepticism and need to prove results. Identified three key drivers: sales force productivity, pricing agility tool rollout, and reducing elevated customer churn. Declined to provide FY2026 guidance.

Kevin confirmed comp change disruption fully behind them. Kenny explained both local and national growth needed: national provides route density and fixed cost leverage, local provides higher margin attachment.

Kenny and Kevin confirmed commitment to hiring target with disciplined pacing based on volume expectations and market conditions.

Steve described fuel margin as volatile through the quarter with a higher floor, days in the 60s and 30s and most in the 40s, so no clear trend.

Darren said consumers are holding up with growth across income cohorts and only minor fuel-related behavior shifts.

Darren said wings carry lower margin rate than pizza (protein vs dough) but haven't materially impacted mix yet. Goal is gross profit dollar growth, not margin rate. Also rolled out fries as most-requested side. Other fryer products possible but focused on wing velocity first.

50 stores by FYE, bulk of remaining conversions next fiscal year. Balance sheet could support another large deal (1.6x leverage, $1.4B liquidity). Engaged with potential sellers but set high bar on asset quality for kitchen accommodation.

Steve said approach unchanged. 3/4 of transactions don't involve fuel, creating stickiness. Guests are less price-elastic since they come for the inside offer. Winter margins seasonally lower than H1, no reason to expect differently.

Steve said full-year total OpEx guidance unchanged at 8-10%. Same-store labor hours flat (first time after 12+ quarters of cuts) due to investing hours for pizza demand. Misc factors: insurance, utilities, legal, advertising slightly higher.

Gary said core-on-core +22bp came from deflation turnover benefits, supply chain efficiency and KS penetration partially offset by higher 2% executive rewards, co-brand income lap and pharmacy/e-commerce mix, framed Q2 gross margin ex-legal-gain as +5bp, and warned not to fixate on any single component quarter to quarter.

Gary acknowledged the slowdown versus prior years as lapping last year's strong growth, but pointed to warehouse maturity curves, higher international sign-ups and renewal-rate initiatives as opportunities to sustain growth.

Gary described a multi-pronged approach with 30-40% cost savings from global buying consolidation and 40% savings from regional KS production, and Ron confirmed price is the last lever and Costco will be last up, first down.

Ron said checkout speed is a top technology focus and extended store hours are not off the table but no plans in place.

Gary confirmed no major CapEx trajectory change, gradual increases reflect business growth, warehouse openings, supply chain, and technology investments.

Rainey said e-commerce profitability no longer discussed internally having far surpassed breakeven. Profitable in each of 4 quarters in US with momentum only upward. Roughly double-digit incremental margins expected to continue. Scale economics of large digital platform mean marginal cost of growth very low. Serving 95% of America in 3 hours with very few competitors able to match. In some cases less than 30 minutes. Fashion growth mid-single digits for several consecutive quarters showing broader assortment appeal beyond convenience. Customers coming to Walmart in many cases for first time and enjoying experience that makes them want to come back.

McMillon said replenishable items a major strength allowing partnership with suppliers to adjust forecast and quantities over weeks and months rather than one-time calls. Merchants and replenishment team managing daily as tariff numbers change. Seasonal items like Halloween and Christmas require farther-out decisions with tariff assumptions built in and ability to chase goods if needed. Operating against sales plan with inventory 3.8% up in healthy position. Want to avoid 2022 by paying close attention to unit decisions.

McMillon said second P&L of e-commerce plus membership advertising and data monetization ends up more profitable than traditional retail store P&L. Key is keep foot on gas with e-commerce growth. Omnichannel position is advantage serving customers however they want to shop in moment. Rainey said US e-commerce losses improved 80% year on year. Densification and express delivery fees continuing to improve profitability. Immigration has not impacted business in any notable way.