Question · Q2 2026
Adrianne Yih asked about actions being taken to manage inventory and chase successful items between now and 2026, when major product fixes are expected. She also inquired about the proportion of U.S. e-commerce orders that previously utilized the de minimis exemption.
Answer
CEO Calvin McDonald reiterated that new agile processes, including upfront vendor collaboration on fabrics, are already in place to react quicker to successful items, potentially eliminating up to two months from the chase process. CFO Meghan Frank explained that approximately two-thirds of U.S. e-commerce orders were fulfilled from Canada, with most shipments under $800 qualifying for the de minimis exemption, making its removal a significant impact.