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    Alex Straton

    Research Analyst at Morgan Stanley

    Alex Straton is an Executive Director and Senior Equity Analyst at Morgan Stanley, specializing in the consumer cyclical sector with coverage of companies such as Burlington Stores, Abercrombie & Fitch, and Torrid Holdings. Straton has delivered an average stock price target met ratio of over 70%, with recommendations achieving a potential upside of nearly 15% within an average of 78 days; notable performance includes best-in-class returns for Torrid Holdings with a 37.93% profit realized in under one week. Beginning their analyst career in the early 2020s, Straton has rapidly advanced at Morgan Stanley and is recognized for a 4.1-star analyst ranking and a success rate approaching 60%. Straton holds key industry credentials, including FINRA registration and relevant securities licenses.

    Alex Straton's questions to Bath & Body Works (BBWI) leadership

    Alex Straton's questions to Bath & Body Works (BBWI) leadership • Q2 2025

    Question

    Alex Straton questioned whether the company still aims for mid-to-high single-digit growth and a 20% EBIT margin over time, and asked about the building blocks for each target.

    Answer

    CEO Daniel Heaf affirmed the company is anchored to achieving mid-to-high single-digit growth by enhancing digital platforms to attract new customers and expanding distribution channels. Regarding the 20% EBIT margin, he stated the principle is unchanged, but the immediate focus is on reallocating capital to key growth drivers without diluting margins in the near term.

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    Alex Straton's questions to Bath & Body Works (BBWI) leadership • Q1 2025

    Question

    Alex Straton asked CFO Eva Boratto about the appropriate long-term growth rates for the Home Fragrance and Body Care categories and requested details on the plan for the upcoming semi-annual sale.

    Answer

    CFO Eva Boratto stated that the semi-annual sale will start later this year to better feature Father's Day and align with broader market timing, supported by amplified marketing. For category growth, she expects Body Care to grow with the market over time, implying a rate better than low-single-digits. She noted that Home Fragrance is growing and gaining modest share despite pressures in the overall candle market, and highlighted that gifting was a strong performer, up double-digits.

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    Alex Straton's questions to Burlington Stores (BURL) leadership

    Alex Straton's questions to Burlington Stores (BURL) leadership • Q2 2025

    Question

    Alex Straton of Morgan Stanley asked for more color on the improvements made to in-store standards and the shopping experience. She also requested further detail on the inventory shortage favorability seen in Q2 and how that dynamic might evolve in the second half of the year.

    Answer

    CEO Michael O'Sullivan described the improvements in store standards as 'extraordinary,' citing all-time high customer service scores and improved operational metrics driven by strong leadership and new processes. CFO Kristin Wolff noted that while the external environment for theft remains challenging, a Q2 physical inventory showed better-than-planned shortage results. She stated the company remains focused on its mitigation investments and will conduct another physical inventory in Q4.

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    Alex Straton's questions to Burlington Stores (BURL) leadership • Q1 2025

    Question

    Alex Straton of Morgan Stanley requested details on Q1 comparable sales performance by geographic region and by merchandise category, as well as the impact of weather.

    Answer

    EVP & CFO Kristin Wolfe reported that the Southeast region outperformed the chain, while the Midwest trailed, likely due to unfavorable weather in February that negatively impacted the Northeast and Midwest. She noted that performance across merchandise categories was broad-based, with the only specific call-out being that the beauty business was the strongest performer during the quarter.

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    Alex Straton's questions to Burlington Stores (BURL) leadership • Q1 2025

    Question

    Alex Straton of Morgan Stanley asked for a breakdown of first-quarter comparable sales performance by geographic region and the impact of weather. She followed up with a question about comp performance by merchandise category.

    Answer

    EVP & CFO Kristin Wolfe detailed the regional performance, noting that the Southeast outperformed the chain while the Midwest trailed, which was likely due to unfavorable weather in that region. She confirmed weather was a significant negative factor in February but normalized in March and April. Regarding categories, Wolfe stated that performance was broad-based, with the only specific call-out being that the beauty business was the best-performing category during the quarter.

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    Alex Straton's questions to URBAN OUTFITTERS (URBN) leadership

    Alex Straton's questions to URBAN OUTFITTERS (URBN) leadership • Q2 2026

    Question

    Alex Straton from Morgan Stanley inquired about the competitive impact of the end of the de minimis exemption and whether URBN utilizes it. She also asked if the gap between total sales growth and comp sales would narrow in the second half of the year and the reasons for it.

    Answer

    Frank Conforti, Co-President & COO, stated that the de minimis exemption has an immaterial impact on URBN's business. He explained that the narrowing spread between total sales and comp growth is primarily due to the wholesale segment anniversarying strong prior-year gains. CEO & Chairman Richard Hayne added that the change could competitively benefit the Urban Outfitters brand.

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    Alex Straton's questions to ABERCROMBIE & FITCH CO /DE/ (ANF) leadership

    Alex Straton's questions to ABERCROMBIE & FITCH CO /DE/ (ANF) leadership • Q2 2025

    Question

    Alex Straton from Morgan Stanley questioned the strategy behind expanding the physical store footprint for the digitally-strong Abercrombie & Fitch brand and asked for targets on store count by year-end and over the long term.

    Answer

    SVP & CFO Robert Ball explained that stores are an 'essential part of our brand experience,' delivering high productivity and serving as a key customer acquisition channel in their omnichannel strategy. He stated that for 2025, the company plans a net increase of 40 stores, with approximately 37 of the 60 new openings slated for the A&F brand.

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    Alex Straton's questions to ROSS STORES (ROST) leadership

    Alex Straton's questions to ROSS STORES (ROST) leadership • Q2 2025

    Question

    Alex Straton of Morgan Stanley questioned whether the higher branded mix is a permanent margin headwind or if it could eventually enhance profitability, and asked about the potential for the business to return to low-teens operating margins over time.

    Answer

    COO Michael Hartshorn reiterated the company's view that while the branded strategy was an initial margin headwind, they believe they can build on it over time. He cited sharpening merchant expertise, building better vendor relationships, and gaining access to more branded closeouts as key factors that will eventually improve profitability.

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    Alex Straton's questions to ROSS STORES (ROST) leadership • Q4 2024

    Question

    Alex Straton asked about the guidance assumptions for freight costs and for more detail on the investments in 'supply chain and merchant processes' within the CapEx plan.

    Answer

    Group President and COO Michael Hartshorn expects domestic freight to be a headwind, while ocean freight is being monitored. EVP and CFO Adam Orvos clarified the CapEx increase to $855 million is mainly for supply chain, including a new distribution facility. Hartshorn added that merchant process investments involve new buying tools and enterprise-wide data analytics.

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    Alex Straton's questions to TJX COMPANIES INC /DE/ (TJX) leadership

    Alex Straton's questions to TJX COMPANIES INC /DE/ (TJX) leadership • Q2 2026

    Question

    Alex Straton asked for more detail on category performance at Marmaxx, specifically the health of apparel versus home, and questioned why the implied Q4 gross margin guidance suggests more degradation compared to Q3.

    Answer

    CEO Ernie Herrman stated that both apparel and home categories were healthy at Marmaxx, and he believes the company is gaining market share in apparel. CFO John Klinger explained the Q3-to-Q4 margin variance is due to two main factors: inventory cap favorability is highest in Q3, and the timing of the shrink accrual provides a benefit in Q3 but reverses to a headwind in Q4.

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    Alex Straton's questions to Allbirds (BIRD) leadership

    Alex Straton's questions to Allbirds (BIRD) leadership • Q2 2025

    Question

    Alex Straton sought clarification on the sales guidance reduction, asking if core business expectations had changed, and requested a big-picture update on the transformation plan, including areas of strong progress and any unexpected pain points.

    Answer

    CFO Annie Mitchell confirmed the revised guidance reflects two factors: the structural impact of incremental store closures and a more conservative view of the uncertain macro environment. She reiterated confidence that new initiatives will drive year-over-year sales growth in Q4. CEO Joe Vernachio stated he was 'delighted' with the transformation's progress, noting they are at a pivotal moment and even slightly ahead of schedule with the website relaunch. He highlighted that new products are already driving sales and said he could not identify any significant pain points, as all initiatives were on or ahead of plan.

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    Alex Straton's questions to LEVI STRAUSS & (LEVI) leadership

    Alex Straton's questions to LEVI STRAUSS & (LEVI) leadership • Q2 2025

    Question

    Alex Straton of Morgan Stanley asked about the company's view on a normalized, medium-term growth rate and for the drivers behind the expected decline in SG&A growth in the second half of the year compared to the first half.

    Answer

    EVP & CFO Harmit Singh stated that the executive team is focused on delivering consistent mid-single-digit growth to reach its $10 billion revenue goal over time. Regarding SG&A, he explained that the company has already leveraged SG&A year-to-date and expects the full-year rate to be around 50%. The key focus is ensuring gross profit dollar growth significantly outpaces SG&A dollar increases, leading to EBIT margin expansion.

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    Alex Straton's questions to NIKE (NKE) leadership

    Alex Straton's questions to NIKE (NKE) leadership • Q4 2025

    Question

    Alex Straton from Morgan Stanley asked if there is any structural reason the business should not return to double-digit operating margins after the current transition period and what may have changed in the long-term margin profile.

    Answer

    CFO Matt Friend affirmed that returning to a double-digit margin is a worthy goal, consistent with Nike's history. He explained that the 'WinNow' actions are designed to reposition Nike as a full-price brand, and the long-term goal is to achieve operating leverage through sustainable growth and disciplined expense management. CEO Elliot Hill added that leadership is ambitious about returning to double-digit operating margins over time.

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    Alex Straton's questions to Victoria's Secret & (VSCO) leadership

    Alex Straton's questions to Victoria's Secret & (VSCO) leadership • Q1 2025

    Question

    Alex Straton from Morgan Stanley asked for an update on the progress of the brand's evolution since the new CEO started and requested a quantitative breakdown of the first quarter's gross margin decline.

    Answer

    CEO Hillary Super highlighted significant progress in PINK apparel and the Beauty division, noting they are now working to inject more 'joyful expression' into the core Victoria's Secret brand. CFO Scott Sekella detailed that the 170 basis point gross margin decline was primarily driven by higher inbound freight costs, tariff-related raw material write-offs, and increased GWP activity, which he expects to moderate in the back half of the year.

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    Alex Straton's questions to lululemon athletica (LULU) leadership

    Alex Straton's questions to lululemon athletica (LULU) leadership • Q1 2026

    Question

    Asked about the current level of newness in the assortment, what other drivers are being explored if newness isn't lifting Americas comps, and if a positive comp in the Americas is possible this year.

    Answer

    Newness percentages are back to historical levels, and the company is increasing the mix of completely new silhouettes that guests are responding well to. The full-year revenue guidance for the Americas remains low to mid-single-digit growth, and while not guiding to comps specifically, the company feels positioned to capitalize on any improvement in the consumer environment.

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    Alex Straton's questions to lululemon athletica (LULU) leadership • Q2 2025

    Question

    Asked for clarification on the revised full-year guidance, particularly the timing and reasons for the reduction, and the attribution of the Q2 revenue miss between internal issues and macro factors.

    Answer

    The second-half guidance aligns with Q2 trends, with Q4 adjusted for a shorter holiday season and macro uncertainty. The overall outlook was lowered, but the Q3/Q4 relationship is unchanged. The revenue shortcoming was attributed primarily to controllable, internal factors, specifically a lack of newness in the U.S. women's business, which impacted conversion despite positive traffic.

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    Alex Straton's questions to GPS leadership

    Alex Straton's questions to GPS leadership • Q1 2026

    Question

    Alex Straton from Morgan Stanley inquired about the potential for Gap Inc. to mitigate more than the stated 50% of the anticipated tariff impact, both in the current year and over the long term.

    Answer

    CEO Richard Dickson affirmed the company's commitment to navigating complexity without compromising long-term strategy or customer value, highlighting ongoing sourcing diversification away from China. CFO Katrina O'Connell added that the provided outlook transparently separates the underlying business health from the dynamic tariff situation, detailing a gross impact of $250-300M and a net impact of $100-150M after current mitigation plans.

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    Alex Straton's questions to GPS leadership • Q1 2025

    Question

    Alex Straton from Morgan Stanley inquired about the potential for Gap Inc. to mitigate more than half of the anticipated tariff impact, both in the current year and over the long term.

    Answer

    CEO Richard Dickson stated that the company is navigating the tariff complexity without compromising its long-term strategy or customer value, highlighting ongoing sourcing diversification away from China. CFO Katrina O'Connell added that the provided outlook transparently separates the underlying business health from the dynamic tariff situation, detailing a gross impact of $250M-$300M and a net impact of $100M-$150M after initial mitigation efforts.

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    Alex Straton's questions to AMERICAN EAGLE OUTFITTERS (AEO) leadership

    Alex Straton's questions to AMERICAN EAGLE OUTFITTERS (AEO) leadership • Q1 2025

    Question

    Alex Straton of Morgan Stanley asked what factors would give management the confidence to reinstate full-year guidance. She also inquired about the key performance indicators (KPIs) being watched in the second quarter to ensure progress is being made after the first quarter's missteps.

    Answer

    Executive VP & CFO Mike Mathias explained that reinstating full-year guidance depends on gaining better visibility, particularly on the impact of tariffs, and that a decision would likely be made by the Q2 call. He identified AUR (Average Unit Retail) and conversion as the key metrics being watched closely, as they were the primary drivers of the negative comp in Q1, while traffic and customer counts remained relatively healthy.

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    Alex Straton's questions to Amer Sports (AS) leadership

    Alex Straton's questions to Amer Sports (AS) leadership • Q1 2025

    Question

    An associate for Alex Straton asked about the Ball & Racquet segment, specifically the geographic breakdown of its recent store growth, the sustainability of new openings, and the path to improved profitability for the segment.

    Answer

    CFO Andrew Page explained that the store growth for the Ball & Racquet segment was almost entirely concentrated in Asia and Greater China, where the mono-brand retail format is highly effective. He stated that profitability is expected to improve as the company's strategic investments in the 'Tennis 360' concept begin to scale.

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    Alex Straton's questions to Amer Sports (AS) leadership • Q1 2025

    Question

    A representative for Alex Straton asked about the Ball & Racquet segment's store growth, specifically its concentration in China and future sustainability, and the path to improving the segment's profitability.

    Answer

    CFO Andrew Page confirmed that the store growth is almost entirely in Asia and Greater China, where the mono-brand retail format is highly effective. He explained that profitability is currently impacted by strategic investments in the 'Tennis 360' concept and is expected to improve as that initiative reaches scale.

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    Alex Straton's questions to RECURSION PHARMACEUTICALS (RXRX) leadership

    Alex Straton's questions to RECURSION PHARMACEUTICALS (RXRX) leadership • Q1 2025

    Question

    Alex Straton of Bank of America asked about the discovery origins of the discontinued CCM, NF2, and C. diff programs and how the refined pipeline strategy better reflects the platform's current capabilities.

    Answer

    Co-Founder and CEO Christopher Gibson explained that CCM and NF2 originated from the Recursion 0.1 platform (repurposing), while C. diff came from the 1.0 platform (new chemical entities). Chief R&D Officer Najat Khan added that the go-forward strategy emphasizes in-house molecule design and development strategies with clearer endpoints, a shift from the in-licensed nature of the older programs.

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