Lorraine Hutchinson

Jim answered at a high level, deliberately withholding specifics to avoid tipping off competitors.

Conroy expressed strong confidence in inventory positioning, citing outstanding closeout availability and increasing first-call access from vendors recognizing Ross's outsized growth.

Conroy credited branded strategy reset and Juniors strength. Expects continued ladies strength in first half FY2026. Hartshorn said inventory grew 8% vs 12% sales growth, with more inventory positioned in front of customers supporting ability to chase sales.

Conroy walked through ladies sequential improvement: drag in Q4 FY2024, flattish in Q1-Q2, comp enhancing in Q3. Sees outsized growth for next three quarters until anniversary, with continued innovation beyond.

Conroy said AUR changes have been very modest, low single-digit. Expects price equilibrium by next year where tariff impact is no longer called out separately.

Hartshorn explained Q2 impact includes goods in transit at peak tariff rates plus additional ticketing costs. Too many variables to predict back-half impact.

Conroy committed to being prudent and proving ROI on any incremental investment. Expects to find some dollars to invest in store environment and marketing over time.

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Ernie gave timing (greater improvement by Q4) but withheld category specifics for competitive reasons.

Herrman denied any behavioral shift, noting purchases are consistent across income groups and ticket levels with no correlation to comp performance by department.

Ernie explained pricing actions are selective, following competitive out-the-door retails to maintain value gap. Also noted higher ticket partially reflects mix shift to better goods at higher prices. Value perception surveys show improvement over last 6 months. Customer reaction consistent across demographics.

Ernie said pricing strategy 95% successful across all categories. Only one category required a retail pullback, plus a couple of individual SKUs that didn't work within otherwise successful categories. TJX monitors value perception scores constantly and fast inventory turn enables quick reaction.

Ernie emphasized market buying opportunities were more impactful than retail adjustments in offsetting tariffs. Planning and allocation teams credited as unsung heroes in managing markdowns and category mix.

Ernie confirmed availability is outstanding and trending up. TJX will adjust retails selectively to maintain value gap versus traditional retailers, taking advantage of vendor uneasiness and market chaos.

Ernie said performance was broad-based across all income demographics and banners, but acknowledged it's hard to measure trade-down specifically given the strength.

Ernie noted the 18-34 age group is growing but emphasized the business remains balanced across all age and income demographics, which is a deliberate competitive advantage.

Asked whether store openings in China/US would be paused until stabilization; Frank said the approach is measured but still sees tremendous China expansion opportunity.

Frank said negative commentary hit China late April and early May but the business has improved and the 20% full-year guide is intact.

Meghan described shifting marketing composition toward brand-appropriate influencers, ambassadors, and guest activations like BNP Paribas Open, Milan Olympics, and Studio Yet. Marketing rate of sales staying flat but strategy evolving.

Calvin said pleased with new guest acquisition from Amex partnership. Meghan confirmed it's a small but exciting part of business with satisfactory profitability. Credits shared with Amex reduce revenue.

Meghan attributed Q2 SG&A deleverage to tough prior-year comp (110bps margin expansion in Q2 2024), foundational investments, depreciation, and layering back expenses like store labor. Full year SG&A deleverage is 50bps.

Meghan confirmed the full year outlook assumes similar trends to Q1 with no improvement baked in. Calvin noted they continue testing and investing in marketing within guidance parameters.

Frank explained inventory growth driven by chasing seasonal newness to position for U.S. inflection in H1 2025. Noted inventory turns are roughly in line with history, slightly slower. Over the longer term, aim to manage inventory in line with sales growth.

Hill framed China recovery around being premium, culturally relevant and sport-led, citing recovering full-price realization on digital and House of Innovation double-digit growth.

Matt said Running grew double digits and plans for the World Cup are strong, but Sportswear sell-in came in below expectations with higher promotional activity and Middle East traffic disruption; EMEA is expected to exit Q4 with elevated inventory. Elliott introduced new EMEA leader Cesar Garcia, a 25-year NIKE veteran.

Elliott said China requires sport-led positioning, GeoExpress Lane product, and monobrand resets; Matt said store pilot concepts are outperforming the broader fleet but need more proof before scaling.

Matt outlined three FY26 margin dynamics: product/channel mix headwinds, transitory Win Now impacts weighted to H1, and newly implemented tariffs (75bps FY26, 100bps Q1).

Elliott declined to give a specific timeline but reframed as right-sizing. Matt added Q4 will cut classic mix by 10 points and continue into FY26.

Elliott expressed confidence in upcoming product from fields of play but avoided quantifying FY2026 pressure. Matt noted summer order books down slightly but nearly offset by newness, signaling gradual improvement.

Friend said partner momentum is encouraging after NIKE acknowledged over-centering on Direct, citing elevated-brand retail proof points with DICK'S (women's fitness) and Foot Locker (Home Court basketball).

Scott explained leverage from fleet productivity, diligent corporate cost control, and investing selectively in consumer data/AI capabilities. Store profitability increasing unlocks expansion opportunity.

Scott declined specific FY26 guidance but dimensionalized exposure at $900M COGS imports with mitigation actions underway. Todd emphasized 18 of 20 quarters of AUR gains showing brand pricing power.

Todd explained platform innovation approach: instead of cycling out slowing families, innovate within them (Pillow Tabby example). New York family less than a year old with extensive pipeline.

Joanne framed opportunity positively but Scott was direct that no growth expected in FY25. New CEO Ava Erdmann tasked with sharpening strategic roadmap.

CEO acknowledged promotions ticked up modestly across the market and year-over-year, but stressed a strategic, holistic and profit-focused promotional approach with flexibility built into the back-half forecast to respond to a dynamic environment.

Kecia characterized price increases as routine and not extraordinary. Chris explained average cost inventory method creates short-term COGS benefit as lower-cost inventory sells through before replenishment at higher costs.

Management confirmed balanced mix of formats, strong new store economics, and robust site selection using member data for infill and expansion.