Michael Binetti

Justin described balanced mid-single-digit NA growth as a continuation story and said the 7.5-8.5% 3-year marketing range is not a ceiling. Direct.

Patrice highlighted women's apparel at only 1% market share despite being close to a $2B business. Noted all three accelerator categories are AUR accretive. Previewed Polo Blaze handbag launch for fall.

Justin noted company inflected to positive total unit growth in FY26 and expects units slightly up in FY27, though AUR will continue to lead growth. Acknowledged some unit elasticity assumed in EMEA.

Justin said Europe margin pressure driven by increased marketing investment, not the promo pullback. Marketing rate taken up to 7.5-8% range with strong short and long-term returns. Quality of sales improvements are continuous elevation philosophy, not one-quarter event. Will continue refining discounts and promotions across all regions using sharper analytics.

Justin said unit growth occurring in targeted areas: full-price businesses, digital, China, and accelerator categories. Will lean more into AUR in near term given cost inflation. On margins, philosophy of balancing flow-through with reinvestment unchanged. Marketing is the primary reinvestment area. SG&A leverage muscle built over recent years.

Justin said DTC leading with digital accelerating, wholesale growing, and momentum broad-based. Q2 expects DTC to continue leading with international momentum. EMEA had broad-based double-digit growth but timing shifts in wholesale will pressure second half.

Justin said Q1 AUR expected high single digits with minimal tariff impact. Full toolkit being deployed for potential cost headwinds. Revenues by geo: Asia high single digit, Europe mid-single, NA down low to mid-single.

Justin explained Q4 is smaller with end-of-season sales impacting margins. Patrice noted NA wholesale stabilization is important milestone, segmented by luxury accounts, digital, top-50 doors, and pruning.

Justin noted upper tier distribution working well, top key city doors outpacing fleet, and digital outperforming. Expects stabilization at down low single-digit.

Justin said full-year guidance implies SG&A leverage. Marketing rebalances in Q4. Expects optionality on expense leverage with DTC growth.

John walked through fuel/freight, harder comps and merchandise-margin timing as the first-half vs second-half deltas.

Management confirmed consistent growth across all geographies and income bands with no specific trade-down signal identified, noting the basket-to-transaction mix shifted to half-and-half.

Klinger attributed HomeGoods margin expansion to comp-driven expense leverage and merchandise margin improvement but declined to provide full-year HomeGoods guidance.

Ernie emphasized more green space for growth than previously thought, driven by competitor store closures and softer sales at overlapping retailers. Offensive posture across marketing, store expansion, Mexico and BFL investments. John noted aggressive advertising to capture potential consumer tax benefit spending. Gift-giving business expanding beyond Q4 throughout the year.

John confirmed freight upside from favorable ocean container rates and movement efficiencies. Freight sustainability depends on ocean providers and surplus availability. Tariff costs consistent Q2-Q4 with full confidence in continued offset. Declined to discuss next year margin outlook, still pulling plans together.

Transactions up across the board with basket contributing slightly more at Marmaxx. Hedge impact on merch margin described as slight headwind in back half but not significant.

John listed multiple mitigation levers without quantifying any individually. On trade-down, Ernie said no sign of trade-down with average retails balanced across the board.

John confirmed 3-4% comp leverage model remains intact. On real estate, they see plenty of availability including rural areas where department stores close and large box opportunities.

Ernie attributed November strength to weather normalizing and gift-giving categories hitting stores, noting a combination of weather relief and strong merchandising mix.

John noted prior-year one-time tailwinds that aided this year's comparisons and said Spain expansion will not be a large headwind as they plan to leverage existing European infrastructure.

Hartshorn said they can comp on top of strong comps but would only update the long-term algorithm further along in the initiatives.

Hartshorn said new store productivity is guided at 70-75% of mature store level, noting last year exceeded that. Pipeline into next year looks very good to maintain 5% unit growth.

Hartshorn clarified SG&A deleveraged 25bps entirely due to higher incentive comp. Ex-incentives, marketing and store costs leveraged. Sheehan added merch margin remains the largest forward driver.

Hartshorn separated Q1 EBIT headwinds (DC, packaway, incentive base) from comp drivers (momentum plus weak compares). Conroy emphasized growth achieved within existing financial model with no artificial investments. Full year EBIT leverage of 10-30bps above normal algorithm.

Conroy emphasized changes made within existing expense structure. Wants more time before overinvesting. Hartshorn said new stores outperformed plan, very optimistic about Northeast expansion. Healthy pipeline with DD's reacceleration planned.

Orvos confirmed tariff is biggest driver plus slightly more conservative sales assumptions. Hartshorn detailed store refreshes, self-checkout in 80 stores, and new marketing campaigns.

Hartshorn attributed wider guidance range to inflation impact on core customer and expected tariff pass-through hitting consumers in June/July. China-sourced goods represent market-wide exposure, not unique to Ross.

Hartshorn confirmed comp guidance assumes fairly neutral trends Q2-Q4 after Q1 softness. Orvos cited better buying, tariff planning, and shrink as merch margin puts and takes.

high

Attributed the lumpiness to tariff timing (H1 benefit, H2 headwind) and called the guide prudent; reaffirmed unchanged structural GM drivers rather than a precise quarter-by-quarter bridge.

Scott confirmed Q4 trends are in line with raised guide. Sequential moderation explained by Lunar New Year timing, earlier Easter, and pull-forward of pink signature product launch sales from Q4 into Q3.

Joanne described compounding benefits as Gen Z customers show stronger engagement and higher repeat rates, powering existing customer growth. Commitment to continuous acquisition of Gen Z and eventually Gen Alpha.

Todd explained unit growth math: record customer acquisition + retention rates = compounding unit count. Still 20% below pre-pandemic globally, 25% in NA. Footwear driving higher purchase frequency. Scott confirmed expectation of continued SG&A leverage in non-growth-enhancing areas, with ongoing marketing investment, but declined to give new long-term guidance.

Scott said unit inflection is encouraging and points to potential for improved second-half outlook, but hasn't fully baked in that level of inflection. Joanne confirmed Kate sequential improvement expected in back half with return to profitable growth in FY27.

Scott explained de minimis was ~1/3 of $0.60 EPS impact from early termination. Network is agile with owned+3PL mix. Todd clarified Europe Q4 was intentional wholesale account cleanup, not demand slowdown.

Scott explained operational drivers: AUR from brand heat/innovation plus underappreciated AUC efficiency. Todd confirmed 79% Q3 gross margin as Coach record. Zero consumer price resistance observed.

Joanne positioned growth as AUR and units together ('and not or'). Scott noted they'll continue investing where they see opportunities while delivering flow-through, citing Kate Spade profit target of 7%.

Todd quantified Coach direct growth at 3% CC excluding wholesale. Confirmed wholesale drag was timing-related Amazon pipe fill and would normalize.

Asked about the markdown/seasonal-clearance cadence; Frank gave quarter-by-quarter markdown bps (Q2 +70, Q3 +60, Q4 roughly flat).

Frank said the second half reflects the current underlying trend with no benefit assumed from action-plan initiatives, leaving upside.

Meghan attributed Canada softness to greater consumer sensitivity to markdowns as full-price mix inflects. Go-to-market calendar targeting 12-14 months from 18-24 months using tools, process simplification, and AI. New Head of Technology hired with AI focus.

Meghan said it's too early to comment specifically on high-value guests but green shoots on new product launches likely extend to that cohort. Will share more as quarter progresses.

Calvin confirmed trade-down behavior continued throughout the year. Meghan said pricing elasticity in line with expectations and no concern. DC network under deep evaluation given de minimis news; Canada presence may change, more details in 2026.

Calvin confirmed Canada seeing similar macro-driven consumer caution. Meghan noted China Q2 operating margin expanded but stores more pressured than e-com. Will be mindful of newness-to-markdown risk in 2026.

Meghan attributed upside to top-line outperformance providing leverage, favorable category mix with IMU benefit, and reduced freight rates. FY2025 guidance reflects current mix and revenue outlook.

Frank detailed Q3 gross margin drivers: 50bps product margin (lower provisions, higher IMU, offset by freight), flat markdowns, 20bps fixed cost deleverage, 10bps FX benefit. Q4 guided for 20-30bps gross margin decline with 50-60bps product margin benefit and markdown improvement, offset by fixed cost deleverage from store growth and DC investment.

Denton deferred the revenue-inflection question to the November Investor Day financial algorithm.

Denton called the dividend a very significant priority and said it is supported under all scenarios.

Hill deflected to the reiterated flattish-earnings guide over the three-quarter period and noted composition shifted toward lower revenue and higher margin, without geo-level order-book specifics.

Matt said EMEA Q4 outlook reflects Sportswear sell-in adjustments, Middle East traffic disruption, and continued double-digit Running growth, with strong upcoming product launches in Training and Running.

Elliott said the complete offense is working in NA; Matt said FY26 margin outlook has moderated due to new tariff rates but double-digit long-term margins remain achievable through organic growth and operating leverage.

Elliott outlined a focused approach: five sports, three key countries, five key cities over 18-24 months. Matt added demand creation was up 1% this quarter and will lead SG&A growth going forward.

Friend reconciled the two: spring order books came in flat and a little light, but newness and innovation, led by running (spring footwear units growing double-digits), are scaling in the second half.