Anna Andreeva

Anna Andreeva asked about the softness observed in the UK for e.l.f. Cosmetics, inquiring if the situation worsened during the quarter and what initiatives are planned to restore growth in this key international market. She also questioned the investment cycle at Rhode, specifically whether significant investments are expected to continue into fiscal 2027, and the nature of its innovation pipeline.

Answer

Tarang Amin, Chairman and CEO, confirmed UK softness due to a higher promotional environment and outlined a three-pronged strategy: reinforcing value proposition (as competitors may raise prices), leveraging new EMEA leadership to build depth in existing markets, and applying innovation and marketing. He expressed confidence in the UK's long-term potential. For Rhode, Mr. Amin discussed the team's success in managing tremendous demand and ensuring in-stocks with Sephora. He mentioned early investments in field sales support and ongoing team expansion for global aspirations, noting a 'pay as you go' approach supported by strong gross margins.

Anna Andreeva asked about the softness observed in e.l.f. Cosmetics in the UK, inquiring if it worsened in the quarter and what initiatives are planned to restore growth in this key international market. She also sought an update on Rhode's investment cycle, specifically whether significant investments would continue into fiscal 2027.

Answer

Tarang Amin, Chairman and CEO, attributed UK softness to a higher promotional environment. Initiatives include reinforcing value proposition, new EMEA leadership focusing on market depth, awareness advertising, and leveraging innovation and marketing. He expressed confidence in the UK's long-term position, noting its contribution to the 5-year international CAGR. On Rhode's investment cycle, Amin stated the team has managed tremendous demand, making early investments in field sales support and continuing to build the team for global aspirations, with high gross margins allowing for a 'pay as you go' investment approach.

Anna Andreeva (via Noah) asked for insights into Vans' DTC versus wholesale performance and geographical trends for Q4. She also inquired about The North Face's premiumization strategy, why now is the right time, and how it positions the brand against newer competitors.

Answer

CEO Bracken Darrell stated that for Vans, the focus is on the Americas (50% of business), with DTC (especially e-commerce) expected to lead growth due to faster product deployment and marketing effectiveness, followed by stores and wholesale. For The North Face's premiumization, he sees a significant opportunity, particularly in North America, through initiatives like Summit Series and lifestyle products, emphasizing a systematic and careful approach rather than revolutionary change.

Anna Andreeva asked about the current number of owned doors globally and wholesale doors (including closures and additions), the stability of the door count, the opportunity to further reduce Vans' owned doors, and the quantification of earlier wholesale demand in Q2.

Answer

Bracken Darrell, President and CEO, VF Corporation, indicated a generally stable door count, with increases planned for Timberland and The North Face, and the churn for Vans expected to dissipate by Q4. Paul Vogel, EVP and CFO, VF Corporation, clarified that total stores are down about 5% (primarily Vans), and the Q2 revenue outperformance was split between earlier wholesale demand (50-60 basis points) and stronger direct-to-consumer performance, particularly during back-to-school.

Anna Andreeva of Piper Sandler inquired about the current number of global own doors and the stability of the door environment (wholesale and DTC), specifically asking about the opportunity to further reduce Vans' 600 global doors and quantifying the impact of earlier wholesale demand in Q2.

Answer

Bracken Darrell (President and CEO) stated the company is "pretty stable" on doors, with increases for Timberland and The North Face, and Vans' reductions mostly in the past (~580 global own doors). Paul Vogel (EVP and CFO) quantified earlier Q2 wholesale demand as a 50-60 basis point revenue impact, resulting from orders shipping in September instead of October, alongside better DTC performance.

Anna Andreeva asked about any changes in Chewy Plus retention after the fee increase from $49 to $79, and how to think about the program's penetration into next year, given expectations that it's no longer dilutive. She also followed up on the Q4 guide, asking about business performance quarter-to-date and learnings from Black Friday/Cyber Week, particularly regarding promotional activity.

Answer

Sumit Singh (CEO, Chewy) reported that Chewy Plus conversion remained strong and exceeded internal expectations after the price increase. He confirmed paid members are delivering gross margins in line with the enterprise, with higher pricing strengthening the profile. He noted 80% of member mix is now paid and sees strong penetration in hardgoods and specialty categories. For Q4, he stated Black Friday/Cyber Monday performance was in line with expectations, with strong execution and healthy in-stock levels. He confirmed promotional spend discipline continued, with net sales and engaged sessions up year-over-year, while total event spend and customer acquisition costs were down. He added that quarter-to-date momentum is ahead of plan, but guidance remains conservative.

Anna Andreeva asked about changes in Chewy Plus retention after the fee increase to $79, the program's penetration outlook, and Q4 business insights, including Black Friday/Cyber Week performance and promotional activity.

Answer

Sumit Singh, CEO of Chewy, reported strong Chewy Plus conversion post-price increase, exceeding elasticity expectations, with paid members delivering enterprise-level gross margins. He noted 80% of members are now paid and observed strong penetration in hardgoods and specialty categories. For Q4, he highlighted strong Black Friday/Cyber Monday performance with disciplined promotional spend, increased net sales and engaged sessions year-over-year, and reduced total event spend and customer acquisition costs.

Anna Andreeva asked for an update on the private brands business within hard goods, specifically its size and growth. She also requested details on fulfillment center automation, including the number of automated facilities and the resulting OpEx savings.

Answer

Executive David Reeder noted that private brands have been stable, with future growth initiatives not yet reflected in results. CEO Sumit Singh reiterated the long-term goal for private brands to reach mid-teens sales penetration and add up to 500 basis points to gross margin. Regarding automation, Singh confirmed six fulfillment centers are automated, with the program on track to touch over 70% of volume and deliver previously stated benefits of up to 50% in productivity improvements.

Anna Andreeva of Piper Sandler & Co. followed up on the positive net adds, asking if this trend is expected to continue in Q3. She also requested a ranking of the key drivers behind the strong gross margin performance.

Answer

CFO David Reeder addressed both questions. On net adds, he reiterated the full-year guidance for a roughly flat customer count, stating it was too early to update the outlook despite a strong first half. For gross margin, he ranked the primary drivers as: 1) the growth of the high-margin sponsored ads business, 2) a favorable mix shift towards healthcare, and 3) increasing leverage from scaled fulfillment operations.

Anna Andreeva asked about the drivers of SG&A growth, specifically the impact of the incremental brand campaign, and whether SG&A for fiscal 2026 is expected to be managed closer to sales. She also asked about ongoing investment areas and Space NK's contribution to sales and SG&A for the next year.

Answer

Interim CFO Chris Lialios stated that SG&A deleveraged by 240 basis points due to higher incentive compensation, store payroll and benefit expense, store expenses, and cloud-based software amortization. He noted advertising leveraged due to higher top-line revenue. President and CEO Kecia Steelman indicated that more details on FY26 SG&A plans would be shared in March, but confirmed FY25 was an investment year as planned, and FY26 EBIT margin is not expected to deteriorate from FY25 levels.

Anna Andreeva requested more details on the Americas' acceleration to high teens growth, specifically by channel and U.S. performance, and whether the Americas should be a double-digit grower in 2026. She also asked about the technical apparel omni-comp acceleration, if the headwind from outlets moderated, and when that outlet dynamic will be anniversaried in 2026.

Answer

Stuart Haselden, CEO of Arc'teryx, attributed Arc'teryx's North America acceleration to brand awareness investments, community engagement, and store footprint growth, reflected in omni-comp. He noted markdown levels were consistent year-over-year in Q3, and the dynamic would be lapped next year. Andrew Page, CFO of Amer Sports, added that the uptick in North America was primarily driven by the Tennis 360 concept (footwear and apparel) and strong racket sports.

Anna Andreeva asked for more color on the Americas' acceleration to high teens, specifically by channel and US performance, and if the Americas are expected to be a double-digit grower in 2026. She also inquired if the Arc'teryx Omnicom outlet headwind was moderating and when it would be anniversaried.

Answer

Stuart Haselden, CEO of Arc'teryx, attributed North America's acceleration to brand awareness investments, community engagement, and store footprint growth, noting a meaningful reduction in markdown revenue in H1 and consistent markdowns in Q3. Andrew Page, CFO of Amer Sports, added that the Americas' uptick was primarily driven by the Tennis 360 concept, including footwear, apparel, and racket sports.

Anna Andreeva inquired about stockouts in the core Madden business, the company's ability to chase demand, the performance of DTC (excluding Kurt Geiger) across owned e-commerce versus brick-and-mortar, and how the reduction in China tariffs affects sourcing strategy. She also asked for an update on the Kurt Geiger rollout plan for next year, specifically regarding store growth versus wholesale.

Answer

Ed Rosenfeld, Chairman and CEO, acknowledged some stockouts but noted the ability to chase additional demand, particularly with production from Mexico. He stated that e-commerce is outpacing brick-and-mortar for both Steve Madden and Kurt Geiger. Regarding sourcing, he welcomed the China tariff reduction but emphasized maintaining diversification. For Kurt Geiger, he confirmed plans to open a handful of stores in the United States next year, alongside anticipated wholesale growth.

Anna Andreeva inquired about stockouts in the core Madden business due to supply chain issues and the company's ability to chase demand. She also asked for a breakdown of DTC performance between owned e-commerce and brick-and-mortar, and how the 10% reduction in China tariffs affects sourcing strategy. Additionally, Ms. Andreeva sought color on the Kurt Geiger rollout plan for next year, specifically regarding store growth versus wholesale.

Answer

Chairman and CEO Ed Rosenfeld confirmed some stockouts but noted the ability to chase demand, particularly from Mexico, despite overall supply chain disruptions. He stated that e-commerce is outpacing brick-and-mortar for both Steve Madden and Kurt Geiger, with acceleration in both channels for Steve Madden. Regarding sourcing, Mr. Rosenfeld welcomed the China tariff reduction but emphasized maintaining a diversified sourcing strategy. For Kurt Geiger, he mentioned plans to open a handful of new stores in the U.S. next year and anticipated wholesale growth.

Anna Andreeva of Piper Sandler Companies asked about the financial impact of the Q2 DTC systems implementation, current DTC business trends, and the potential timeframe for returning to double-digit operating margins. She also followed up on whether Kurt Geiger could become a higher-margin business over time.

Answer

Chairman and CEO Edward Rosenfeld quantified the DTC headwinds, estimating a 110 basis point comp impact from the systems implementation and a 160 basis point impact from tariff-related inventory disruptions. He noted a slight improvement in DTC comps in July versus Q2. Rosenfeld stated that providing a timeframe for returning to double-digit margins is impossible until the tariff situation is clear, but affirmed he believes Kurt Geiger has the potential to be a higher-margin business over time.

Anna Andreeva asked about the drivers behind the better-than-expected Q1 gross margin, the impact of foreign exchange, and the directional outlook for gross margins for the rest of the year. She also inquired about quarter-to-date sales trends and the promotional environment.

Answer

CEO Ed Rosenfeld attributed the Q1 gross margin beat to a strong March, effective inventory management, and a favorable mix shift towards higher-margin branded products. He stated FX was not a significant factor and confirmed tariffs had a 20-basis point negative impact in Q1, which will be more significant in Q2. He described April's DTC trends as slightly softer than March but still healthy, without a major uptick in promotions.

Anna Andreeva of Piper Sandler & Co. asked for details on the direct-to-consumer (DTC) business pressure seen quarter-to-date, the rationale for acquiring Kurt Geiger now, its tariff exposure, and its expected EPS contribution for the year.

Answer

Chairman and CEO Edward Rosenfeld acknowledged a slow start to the year in DTC, particularly for spring products, which he attributed to potential factors like cold weather and declining consumer sentiment. He justified the Kurt Geiger acquisition as a strategic opportunity to acquire a high-growth, complementary brand at an attractive value. He noted that while Kurt Geiger sources 85% from China, its overall tariff exposure is limited as only 35% of its business is in the U.S. The acquisition is expected to contribute approximately $0.10 to EPS in 2025.

Anna Andreeva of Piper Sandler asked for more detail on the Q4 GMS guidance, specifically regarding expected sequential improvement at Core Etsy, the holiday season approach, and the potential impact of Gift Mode. She also asked Kruti Patel Goyal about her strategic view on balancing profitability with faster growth through increased investment.

Answer

CFO Lanny Baker discussed the Q4 GMS outlook, citing consumer uncertainty but expecting further sequential improvement at the midpoint due to ongoing initiatives. CEO Josh Silverman highlighted an exciting, humanity-focused holiday campaign and Gift Mode's deep integration into search and the home screen. President and Chief Growth Officer Kruti Patel Goyal affirmed profitability as a strength and indicated a willingness to make deeper, opportunistic investments for growth, citing Depop as an example.

Anna Andreeva asked for a follow-up on the Q4 GMS guidance, specifically if further sequential improvement is expected for Core Etsy, how the holiday season is being approached, the potential impact of Gift Mode, and whether Etsy plans to invest more to accelerate growth or preserve its high profitability.

Answer

CFO Lanny Baker stated that the Q4 GMS outlook assumes a stable consumer environment, with the midpoint of guidance reflecting further sequential improvement in year-over-year growth for consolidated and Etsy businesses. CEO Josh Silverman highlighted an exciting holiday campaign focused on human connection and the deep integration of Gift Mode into search and the home screen. President and Chief Growth Officer Kruti Patel Goyal affirmed that profitability is a strength, but Etsy is willing to make deeper investments, citing Depop's marketing investment as an example to drive scale and long-term value.

Anna Andreeva from Piper Sandler Companies asked about the incremental impact of the new 15% EU tariff on revenue and margins, and whether the historical seasonal trend of DTC accelerating in Q4 relative to Q3 would repeat.

Answer

CFO Ivica Krolo explained that the company believes the 15% baseline tariff is manageable through pricing actions already taken and other levers like manufacturing efficiencies. He confirmed that while DTC growth will accelerate in Q4, B2B growth is expected to outpace DTC for both Q4 and the full year, driven by the consumer shift to in-person shopping.

Anna Andreeva asked for color on business trends in April and May and whether there were any signs of demand being pulled forward in the U.S. ahead of tariffs.

Answer

President of Americas David Kahan stated there has been no change in demand or sell-through trends and that the company manages its inventory flow based on stock-to-sales ratios, not in reaction to tariff timing. Executive Megan Kulick clarified that the fiscal third quarter, not the second, is seasonally the slowest growth quarter due to product mix.

Anna Andreeva from Piper Sandler requested more color on the loyalty program's performance and key metrics for 2025. She also asked if the accelerated APAC growth in Q1 involved a timing shift that could negatively impact Q2.

Answer

President Americas David Kahan highlighted the loyalty program's success, with membership up 30% YoY to 8.8 million. He noted members account for nearly 50% of D2C business and have a 30% higher spend per transaction. CSO Klaus Baumann addressed the APAC question, stating that while Q1 was strong, the company maintains its expectation for the region to grow at double the rate of mature markets, implying a normalization of the growth rate.

Anna Andreeva of Piper Sandler Companies asked about the significant working capital improvement and whether the tight inventory position constrained sales. She also inquired about the wholesale strategy, particularly regarding the pace of new door openings and feedback on spring orders.

Answer

CEO & CFO Martin Hoffmann stated that improved demand planning and merchandising capabilities allow the company to operate confidently with lower inventory levels without constraining sales, preferring a position where demand slightly outpaces supply. Regarding wholesale, he confirmed the strategy remains a selective, mid-single-digit growth in doors. He noted that strong brand momentum, evidenced by nearly 40% D2C growth in the Americas, allows them to achieve growth targets by focusing on premium same-store performance rather than aggressive door expansion.

Anna Andreeva of Piper Sandler asked about the consumer demographic for the new Cloud 6 shoe and requested quantification of the comment that April was the 'best month in company history.'

Answer

Executive Co-Chairman Caspar Coppetti explained the Cloud 6 is attracting a younger consumer and that a $10 price increase has seen no negative impact on demand. Co-CEO Martin Hoffmann clarified the April comment demonstrates sustained brand strength but declined to give a quarterly guide. He contextualized that the full-year outlook of at least 28% growth is well ahead of their long-term plan, driven by key strategic initiatives.

Anna Andreeva from Piper Sandler questioned if wholesale moderation was solely due to inventory constraints and asked about the expected opex benefits from the Atlanta DC automation.

Answer

Co-CEO Marc Maurer clarified that wholesale moderation was partly due to strategic door closures in Europe, not just inventory, and that sell-out demand remains very strong. An executive, likely CFO Martin Hoffmann, stated the Atlanta DC automation is on track for H1 2025. While it will have a higher fixed cost base, the financial benefits will scale with volume, and a more detailed outlook will be provided in the Q4 call.

Anna Andreeva of Piper Sandler Companies asked for more color on Merrell's performance internationally versus domestically and questioned the sustainability of supply chain benefits for gross margin. She also inquired about current markdown levels relative to historical rates.

Answer

CEO Christopher Hufnagel highlighted strong international performance for Merrell, particularly in EMEA and APAC, which outpaced the US, while also noting great progress domestically. CFO Taryn Miller explained that gross margin sustainability comes from multiple levers, including a better mix of premium, full-price products and ongoing, evolving supply chain optimization efforts, rather than a single initiative.

Anna Andreeva inquired about the drivers of Merrell's U.S. momentum, specifically regarding new distribution versus share gains and the health of the hike category. She also asked about the company's commitment to Sweaty Betty and for confirmation of Saucony's Q2 acceleration.

Answer

CEO Christopher Hufnagel attributed Merrell's growth to broad innovation across hike, trail, and lifestyle, noting share gains in all three categories despite pressure in the overall hike market. He affirmed the company's commitment to improving Sweaty Betty's profitability. He also confirmed his earlier comment that Saucony had seen acceleration since early April, though it was a very early data point.

Anna Andreeva asked about Merrell's U.S. performance, seeking to understand the drivers between new distribution and share gains. She also questioned the company's long-term commitment to Sweaty Betty and asked for confirmation of Saucony's Q2 acceleration.

Answer

CEO Christopher Hufnagel highlighted broad-based momentum for Merrell, including share gains in hike, trail, and lifestyle, driven by product innovation like SpeedARC. He affirmed the focus for Sweaty Betty is on improving profitability to build a stronger brand. While confirming a recent acceleration in Saucony trends, CFO Taryn Miller clarified that no brand-specific guidance was provided for Q2.

Anna Andreeva inquired about the rollout timing for Saucony's 900 new doors in 2025, new distribution expectations for Merrell, and the brand's reception in female-focused retail. She also asked about the progress on gross margin product cost savings and the potential to exceed long-term targets.

Answer

CEO Chris Hufnagel confirmed a responsible expansion of Saucony doors throughout the year, many online, and noted Merrell is also opening new doors with a focus on the female consumer. CFO Taryn Miller stated that while pleased with gross margin progress from cost savings and full-price sales, there are still opportunities in sourcing and SG&A to fuel growth and work towards the long-term 45-47% goal.

Anna Andreeva inquired about the pace and focus of brand collaborations for Saucony and Merrell in 2025. She also asked for the reason behind the slight reduction in the full-year margin outlook.

Answer

CEO Christopher Hufnagel confirmed that collaborations are a critical tool for driving brand heat and that the pace will likely increase for both Saucony and Merrell. CFO Taryn Miller clarified that the modest adjustment to the Q4 operating margin outlook was due to a discretionary increase in performance marketing spend to support growth, noting that margins still show strong year-over-year expansion.

Anna Andreeva asked for color on the 7% sales growth in July, including segment performance, and questioned why Q3 gross margin guidance is only slightly up despite easier comparisons.

Answer

CFO Jesse Timmermans noted that while there was some comp pressure internationally in July, the overall trend was positive. He explained that the Q3 margin guidance reflects a greater negative tariff impact than in Q2, which is partially offset by improvements in markdown algorithms and owned brand expansion.

Anna Andreeva questioned the impact of higher markdowns and the consumer shift to accessible price points, asking if Revolve plans to increase promotional activity and whether they observed any demand pull-forward ahead of tariff implementations.

Answer

CFO Jesse Timmermans stated that the company is not altering its markdown strategy in response to consumer behavior, as it is driven by internal algorithms to optimize inventory. He also confirmed that due to their customers' 'buy now, wear now' purchasing patterns, they did not see any meaningful evidence of demand being pulled forward.

Anna Andreeva requested a breakdown of the quarter-to-date sales performance across the REVOLVE and FWRD brands and between domestic and international markets. She also asked about the investment strategy for the upcoming Revolve Festival.

Answer

CFO Jesse Timmermans declined to provide specific breakdowns but confirmed that quarter-to-date growth was seen across both segments and both geographies. Co-CEO Michael Mente stated that the investment for the Revolve Festival would be in a similar dollar range as the prior year, with a continued focus on improving returns.

Anna Andreeva inquired about the sustainability of the Crocs brand's strong gross margins and asked for more details on using pricing as a potential lever to mitigate tariff impacts.

Answer

CEO Andrew Rees confirmed that the strong gross margins are sustainable, attributing them to efficient vendor negotiations, logistics infrastructure investments, and a favorable customer channel mix. He stated that pricing is a key lever they will use strategically, expecting industry-wide increases. While they have initiated small, targeted price adjustments, they are currently in a 'wait-and-see' mode while conducting preparatory analysis.

Anna Andreeva asked for details on gross margin drivers and the promotional environment. She also followed up on the expected HEYDUDE recovery in the back half of the year and the performance of its new stores.

Answer

CFO Susan Healy stated that full-year gross margin will be down slightly, absorbing a 60 basis point headwind from FX and tariffs. CEO Andrew Rees noted a dynamic Q4 promotional environment where consumers shifted towards value. For HEYDUDE, Rees reiterated that the recovery is on track, with guidance embedding positive DTC growth driven by digital and 10 new outlet stores, but does not assume wholesale growth in 2025.

Anna Andreeva of Piper Sandler followed up on the profitability outlook, asking what guardrails are in place at the consolidated level to offset HEYDUDE investments and whether there are further opportunities on the Crocs brand side, such as pricing or OpEx, to support margins.

Answer

CFO Susan Healy emphasized the company's disciplined approach to investments, with strong scrutiny and KPIs, noting they pivot nimbly when needed, as with HEYDUDE's marketing. She reiterated that 2024 and 2025 are investment years that will create incremental EBIT margin pressure, and the company expects to be below the 25% operating margin achieved in the current year.

Anna Andreeva from Piper Sandler Companies requested quantification of the impact from reduced promotional activity on Crocs in North America and questioned why shelf space losses to athletic brands were accelerating now. She also asked for the size of the international revenue timing shift.

Answer

CEO Andrew Rees did not provide a specific dollar figure but stated that without the promotional pullback, Q2 North America revenue would have been only 'down slightly' instead of the reported 6% decline. He argued the broader athletic trend impacting their specific consumer base has recently accelerated. CFO Susan Healy did not quantify the international timing shift, noting such shifts are a regular part of their distributor business.

Anna Andreeva of Piper Sandler sought to clarify if management's comments on 'more uncertain' U.S. demand signals were based on a sales moderation observed in April or a broader concern about the future. She also asked if the company was planning to reduce its previously guided $600-$700 million CapEx range.

Answer

Executive John Vandemore clarified that the commentary was more about 'what we're watching than what we've seen,' driven by third-party consumer confidence indicators rather than a notable change in business trends in April. Regarding CapEx, he stated that no decisions to pull back have been made yet, and the company will continue to invest in projects that make long-term business sense, emphasizing the desire to not fail to take advantage of growth opportunities.

Anna Andreeva from Piper Sandler asked about the innovation pipeline for comfort technologies, the reasons for recent ASP pressure, and the impact of freight costs.

Answer

John Vandemore (executive) explained that comfort technologies are features embedded across a wide array of products, with continued momentum in Slip-ins and Arch Fit. The slight ASP decline was due to broadening the technology across more price points and including some styles in promotions. He expects price stability or slight improvement in 2025. He also noted that while there was a minor freight headwind in Q4 and some expected in early 2025, it is not a major driving factor.

Anna Andreeva inquired about quarter-to-date consumer trends, the assumptions baked into the Q1 outlook, expectations for Nike's marketplace rationalization, and the reasons for limited SG&A leverage despite cost savings.

Answer

CEO Mary Dillon described the current consumer as cautious, responding to key events but hesitant during lulls, a dynamic factored into the 2025 outlook. CFO Michael Baughn elaborated that the guidance range reflects this uncertainty, with the low end assuming continued caution and the high end a more stable macro environment. Baughn also explained that SG&A is modestly leveraged when excluding the normalization of incentive compensation, and the company continues to work on long-term cost structure improvements.

Anna Andreeva asked for the key drivers behind the significant earnings ramp expected in the fourth quarter and inquired about the anticipated adoption ramp for the new FLX loyalty program.

Answer

CEO Mary Dillon expressed satisfaction with the loyalty program's launch and its path toward the long-term 50% penetration goal. CFO Mike Baughn detailed that the Q4 earnings ramp is driven by multiple factors, including lapping last year's promotions, scaling the loyalty program and store refreshes, a new mobile app launch, and the return to growth with Nike.