Question · Q3 2026
Adrienne Yih asked about the timing and method for exiting non-go-forward categories to avoid brand pressure, and how SKU rationalization within core categories will impact the number of alternative and seasonal scents.
Answer
CEO Daniel Heaf stated that SKU rationalization is driven by consumer feedback regarding an overwhelming in-store experience. Exits will begin in Spring (Q1 next year) and ramp up through 2026, using a 'test, learn' approach. CFO Eva Boratto mentioned utilizing semi-annual sales to clear inventory and successfully exiting Q3 with clean inventory despite pressures. She also noted that the exited categories are not expected to be a meaningful drag on sales.
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