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Chairman & CEO John Idol firmly stated that Jimmy Choo is not for sale and is a core part of Capri's future. He emphasized the brand's strong heritage, vertical integration with owned factories, and significant growth opportunity in accessories. A key new strategy is introducing more accessible luxury price points (e.g., the Curve bag at $595-$995) to broaden its consumer base. The goal is to grow the accessories business to improve the brand's margin profile and return it to double-digit operating margins.

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Chairman and CEO John Idol projected that the Michael Kors brand's pricing architecture should be in its desired state by the fall season. He noted that recent price reductions on some items impacted margins but were necessary. Regarding tariffs, Idol stated that any price increases would be approached slowly and cautiously, as the primary goal is to rebuild brand momentum. The final decision on pricing will depend on the actual tariff impact and the success of other mitigation efforts with suppliers. CFO and COO Tom Edwards reiterated that protecting brand momentum is the top priority over immediate pricing actions.

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Chairman & CEO John Idol stated that the Michael Kors brand should be at its desired pricing architecture by the fall season. He noted that while some prices were lowered to align with historical value, the company is also raising certain prices in the outlet channel and reducing promotional activity. Regarding tariffs, Idol and EVP, CFO & COO Thomas Edwards both emphasized that brand momentum is the top priority. Any price increases to offset tariffs would be cautious 'tweaks' and would only be considered after exploring sourcing mitigation and gaining certainty on the final tariff levels.

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Group President and COO Michael Hartshorn differentiated the current situation from past events. He explained that since tariffs are expected to cause broad-based inflation across the entire retail industry, Ross can pass on some costs while still maintaining its significant price and value gap versus department and specialty stores, thus preserving its value perception.

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Group President and COO Michael Hartshorn clarified that the branded strategy was a deliberate shift in assortment, not a refusal to raise prices. He stated that unlike category-specific inflation, the current tariffs are expected to cause broad-based inflation across all of retail, allowing Ross to raise prices while still maintaining its significant value proposition versus competitors.

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Group President and COO Michael Hartshorn affirmed the growth potential with existing store formats and noted stable new store productivity. CEO James Conroy stated the branded strategy is 'starting to pay some nice dividends,' contributing to four positive comp quarters and sequential improvement in ladies' apparel in Q4 after hitting branding targets.

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Group President & COO Michael Hartshorn confirmed that sell-throughs improved in markets once weather became more seasonable. CEO Barbara Rentler added that product performance is driven by value, not price tier; when the right product is offered at the right value, it turns quickly regardless of whether it's 'good, better, or best'.

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CEO Barbara Rentler clarified that while total apparel is now in line with the chain, the ladies' category still underperforms and remains a key area of focus for improvement. CFO Adam Orvos confirmed that despite the raised guidance, they still expect some benefit from incentive costs in the back half, as they are comparing against a very strong performance in 2023.

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CFO John Klinger confirmed the Q1 gross margin variance to last year was essentially the inventory hedge impact, which is a timing issue. He clarified that the Q2 gross margin forecast does include mitigation efforts. CEO Ernie Herrman added that the key difference for Q2 is that goods orders were placed before tariffs were known, preventing negotiation, which is not the case for future quarters.

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Co-CEO Martin Hoffmann stated the outlook assumes current tariffs. He emphasized that On's premium positioning has earned it pricing power, which it will use to separate further from competitors. He announced a selective pricing round in the U.S. starting in July, which will help mitigate tariff impacts and supports the company's gross profit margin guidance.

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CFO Meghan Frank provided specific 2025 growth targets: China at 25-30% and Rest of World at approximately 20%. She characterized this as thoughtful planning based on current trends. Regarding costs, she reiterated that while the company has contingency levers, it remains focused on long-term strategic investments while navigating near-term headwinds like FX and tariffs.

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CEO Elliott Hill noted gaining confidence in the product pipeline but emphasized that the key variable is the speed of cleaning up and resetting the marketplace to drive sell-through. CFO Matt Friend confirmed that Q4 will see the largest financial impact from the 'Win Now' actions, with headwinds to revenue and margin expected to moderate thereafter. He cautioned that liquidation headwinds will persist into fiscal 2026 for several quarters.

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President and CEO Elliott Hill conveyed growing confidence in the product pipeline but emphasized that the timing of a growth inflection depends on how quickly the marketplace can be cleaned up. CFO Matt Friend projected that Q4 would see the largest financial impact from the 'Win Now' actions, with revenue and margin headwinds moderating thereafter. He confirmed that liquidation pressures will persist into fiscal 2026 but that the company would provide updates every 90 days.

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CEO Joanne Crevoiserat responded that the company is, in fact, currently growing faster than the handbag category and sees significant runway for continued outperformance. CFO & COO Scott Roe addressed the margin question by stating that while some lifestyle categories may have different gross margin profiles, the expansion is expected to be accretive to operating margin, and the company anticipates maintaining its exceptional overall margins.

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