Jay Sole

Stefano credited product newness and innovation for sustained HOKA momentum; Steve separately bridged the Q1 gross-margin drivers.

Stefano confirmed spring/summer growing faster than fall/winter. Lowmel sneaker was the brand's #3 product. Highlighted new styles including AutoClog, Minimal sneaker, Zora, Ballet Flat, and Quill.

Stefano confirmed approximately 25 HOKA store openings per year, focused on major cities. Mentioned recent openings in Berlin, Milan, Chamonix, and continued expansion in China.

CEO outlined lifestyle as huge category opportunity with boosted capabilities in design, color, and lifestyle. Early reads on Stinson 7, Bondi Mary Jane, Speed Loafer very positive. Line architecture clarified with more commercial price points. Mach franchise being expanded with X3, Mach 7, and Mach Remastered across performance and lifestyle dimensions.

CEO confirmed acceleration is sustainable based on learnings from prior year: spaced out franchise launches, tightened outgoing inventory, better DTC closeout management. Gaviota 5, Transport 2, and Cielo X1 3.0 all performing well. CFO added consumer engagement with franchise updates driving confidence.

CFO noted HOKA performing probably better than expected in tariff-imposed environment, moving from mid-teens pre-tariff to low teens with tariff is encouraging. International growth validates non-tariff consumer demand. CEO acknowledged 2025 as a learning year: too many big launches overlapping, insufficient spacing.

CFO confirmed HOKA first-half growth remains mid-teens adjusting for Q1 timing. Q2 will show more balanced channel growth with improved DTC performance. CEO noted market largely clean of Bondi 8/Clifton 9; Arahi 7 moving fast. Strong pipeline including Mafate 5, Mach 3, Skyward, and spring Mach 7/Gaviota/Speedgoat updates.

CFO confirmed $150M is gross tariff impact. Three-pronged mitigation approach: pricing power, cost sharing with factory partners. Expects to recapture maybe up to half.

CFO confirmed promotions on outgoing models pressured ASPs while unit volumes remained healthy. Emphasized wholesale expansion contributed to channel shift that reduced DTC share.

CEO detailed Bondi 9, Cielo X1 2.0, Clifton 10, Mafate X trail shoe, and Arahi 8 launches over Q4 and early FY26. CFO emphasized long-term brand-building over chasing growth rates.

CEO confirmed all pinnacle products exceeded expectations at the $200+ price point, while CFO linked innovation to improving margin profile and brand strategy execution.

Justin framed AUR as an outcome of strategy with 9+ years of growth and declined QTD trends; Patrice guided China to mid-teens for FY27. Answered elevation, deferred QTD.

Justin outlined three investment priorities: brand connections, product elevation, and key city ecosystems with AI capabilities. Patrice confirmed marketing at 8% of sales for FY27 with no ceiling, guided by ROI.

Justin said reduced discounting was primary driver of AUR upside, enabled by outsized full price demand. Other durable drivers contributed roughly equally: brand elevation, geo/channel mix, product mix, and targeted pricing. No price resistance from core customers. Value perception and NPS scores progressively increasing alongside AUR.

Justin said AUR drivers are durable: brand investment, full-price customer attraction, product mix elevation, geo/channel mix, discount pullback, and strategic pricing. Normal course pricing for fall plus modest tariff-related adjustments. Q4 remains most impacted quarter. Expects to mitigate cost inflation via country of origin shifts, merchandising mix, and further targeted pricing.

Justin said guide reflects Q1 overdelivery plus improved Q2 view, driven by all three regions. Tariff outlook broadly in line with May. Back half demand view unchanged with caution. Patrice said handbags are early innings with foundational businesses, Polo Play innovation, and strong value positioning.

Justin said proactive pricing taken for Fall 2025 in NA and Japan. Reassessing additional levers including supply chain diversification, cost efficiencies with partners, and selective discount reductions.

Patrice cited brand strength, lifestyle portfolio breadth, and key city ecosystem model as durable drivers. Women's and handbags driven by dedicated marketing, improved distribution, and product resonance.

Justin highlighted product elevation, geo/channel mix shifts, and customer acquisition of high-value full-price shoppers as durable AUR drivers.

Patrice confirmed on track for 15-20 new full-price stores in North America per Investor Day targets. Next opening in San Francisco.

Frank attributed negative commentary to the proxy contest and mid-April product-composition questions; stories subsided but trends haven't recovered.

Calvin explained Andre Maestrini leads markets and GMs globally. Product, merchandising, design, and brand report to Meghan during search. Most spring 2026 decisions already made through winter buy completion.

Calvin confirmed no plans to increase marketing above 5% of revenue. Brand health remains strong with continued guest base growth across all age demographics. Focus on proactive showcase of new styles to high-value guests.

Calvin described pre-aligning with vendors on key fabrics to eliminate up to 2 months from the chase process. New Chief AI and Technology Officer hired to leverage technology for faster speed to market.

Meghan said LULU has 154 stores in China with a goal of ~200 in the current plan and growth beyond that. Co-location optimization strategy still early in China versus more advanced in North America.

Meghan shared 40-45 new openings with 10% square footage growth. North America gets 10-15 stores, majority of international openings in China. Did not break out U.S.-specific square footage growth.

Ernie said Sierra and HomeSense grow well above 4% and confirmed ongoing new-country evaluation without naming one.

Herrman confirmed interest in JVs, investments, and adjacent-country expansion, emphasizing deep talent bench enables new market entry without distracting core business execution.

Herrman strongly hinted the 7,000-store target will be revised upward, citing successful expansion in Australia, Mexico JV progress, and domestic opportunities from competitor store closures.

Ernie declined to name specific categories but confirmed broad-based strength. HomeGoods capturing demand in categories where competitors have closed or pulled back, creating captive audience. Basic categories like bedding, towels, and utilitarian items have less competition. HomeGoods over 30% of TJX's home business at $10 billion. Social media driving impulse-driven shopping reputation.

Ernie admitted slightly surprised by degree of availability. Explained public retailers cannot cut ordering as drastically as tariffs would imply, they bring in fewer units but at higher dollars, and when sales don't materialize, closeout inventory flows to TJX. Choppy retail environment broadly is creating excess inventory across the supply chain.

John briefly noted DC initiatives for COGS and store initiatives for SG&A but declined to quantify the impact by category.

Jim said marketing, merchandising, and store experience work together as a flywheel and cannot be cleanly attributed without traffic counters.

Conroy said share shift is primarily from mainstream retail and department stores to off-price broadly. Other off-price competitor also posted solid quarter. Ross aims for fair share or more of the sector-level shift.

Hartshorn said Q4 guide is simply the internal forecast aligned with latest expectations. No change in methodology. Guide reflects how business is being planned based on Q3 momentum.

Hartshorn confirmed wider guidance range reflects reduced visibility. Guidance builds in continued improvement from the trend seen since early February.

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Denton declined a gross margin guide, citing sourcing/supply chain gains offset by discounting to reset the marketplace.

Denton repeated the Cyber Week and North America sell-in comparisons pressuring Q2 growth but gave no Q2 revenue range.

Matt explained the 2H headwind comes from lapping aggressive off-price liquidation in the prior year, but said the resulting business will be more profitable and full price.

Elliott confirmed sense of urgency across product, marketing, and marketplace investments. Matt framed headwinds as two buckets: repositioning headwinds that will end and transitory headwinds from inventory cleanup that reverse with growth.