Brooke Roach

Answer

CEO Michael O'Sullivan reported that the company was 'very pleased' with its back-to-school business, with July being 'especially strong' and August trends remaining 'solid,' reflecting a successful multi-year strategy to gain market share. CFO Kristin Wolff added that regionally, the Southeast and Northeast were the strongest performers. By category, beauty, accessories, and shoes led, while apparel was in line with the chain average and home was softer.

Ask Fintool Equity Research AI

Answer

CEO Michael O'Sullivan described a marketing evolution focused on a clear 'value' message, amplified word-of-mouth on social media, and the 'Store Experience 2.0' initiative. Regarding 2018, he noted those tariffs were smaller in scale and impact, but the key lesson was the importance of leveraging off-price flexibility, which is critical in the current environment.

Ask Fintool Equity Research AI

Answer

CEO Michael O'Sullivan stated that while changes to de minimis could conceptually be a positive, he would not expect a material impact on Burlington, as the company competes across a broad and fragmented landscape and has been taking significant market share regardless. On merchandise availability, O'Sullivan described the environment as 'very strong,' evidenced by the ability to chase sales to a 6% comp in Q4. He added that uncertainty around potential tariffs is likely to create further supply chain disruption, which typically creates even better buying opportunities for off-price retailers.

Ask Fintool Equity Research AI

Answer

CEO Michael O'Sullivan reframed the strategy as 'elevating assortments' to deliver value, which includes brands, quality, and fashion, calling it an 'evolution, not a revolution.' CFO Kristin Wolfe addressed tariffs by noting that direct import exposure is low (around 8%) and the flexible off-price model allows for negotiation. She added that tariffs can create market disruption, which is ultimately a positive for off-price buying opportunities.

Ask Fintool Equity Research AI

Answer

CEO Michael O'Sullivan reported broad-based strength, with apparel and home comping mid-single digits, and highlighted strong sales in seasonal, back-to-school, beauty, and accessories. CFO Kristin Wolfe added that the comp was entirely driven by higher transactions from both traffic and conversion, with a flat average basket. Geographically, all regions comped positively, led by the Southwest and Northeast.

Ask Fintool Equity Research AI

Answer

CEO Michael O'Sullivan described the evolution of marketing under 'Burlington 2.0,' highlighting a singular focus on 'value,' a shift to amplifying word-of-mouth on social media, and the rollout of 'Store Experience 2.0' for a more exciting in-store environment. Regarding the 2018 tariffs, O'Sullivan noted they were much smaller in scale and had a modest impact. The key lesson from that period, he said, is that Burlington's flexibility as an off-price retailer is a critical strength in navigating these challenges.

Ask Fintool Equity Research AI

Answer

CEO Stefan Larsson reported that the previously flagged operational challenges in setting up Calvin Klein's global product capabilities have been resolved. He stated that for Fall 2025, sequential improvements were delivered, and for Spring 2026, targeted margin improvements have been secured with deliveries back on schedule. He emphasized the long-term value of establishing strong, global product engines for both brands.

Ask Fintool Equity Research AI

Answer

CEO Stefan Larsson explained that pricing resilience is built by scaling the PVH+ plan's focus on product innovation in core categories, citing strong growth in new Calvin Klein underwear and denim. He stated that connecting these product innovations to culturally relevant moments, like Tommy Hilfiger's Formula One partnership, creates demand. Furthermore, the company is increasing focused marketing spend in the second half to drive traffic and mitigate the need for broad promotions.

Ask Fintool Equity Research AI

Answer

CEO Stefan Larsson responded that brand resilience and pricing power are built by scaling the PVH+ plan, which involves infusing hero products with innovation and connecting them to powerful lifestyle marketing. He stated that to counteract the promotional environment in the second half of the year, the company is increasing its marketing spend in a more focused manner to drive high-quality traffic and demand for its key product initiatives.

Ask Fintool Equity Research AI

Answer

CEO Stefan Larsson explained that brand resilience is built by scaling the PVH+ plan, which involves creating product innovation in hero categories and connecting it to cultural moments like the Formula One partnership. He added that the company is increasing marketing spend in a focused manner to drive traffic and mitigate the need for excessive promotions, thereby strengthening pricing power.

Ask Fintool Equity Research AI

Answer

CEO Stefan Larsson described the partnerships with key North American wholesalers as 'very strong.' He highlighted the recent Calvin Klein women's launch at Macy's Herald Square as a prime example of driving product and brand relevance with strong marketing support, emphasizing a focus on consistent execution to drive progress season after season.

Ask Fintool Equity Research AI

Answer

CEO Stefan Larsson stated that both brands are well-positioned on price and that the main opportunity to increase AUR is through better product assortment and inventory management via a data-driven supply chain, not direct price hikes. CFO Zac Coughlin described the expected promotional headwind in the guidance as 'modest,' emphasizing that healthy inventory levels allow PVH to be strategic with promotions rather than being forced into them by excess stock.

Ask Fintool Equity Research AI

Answer

COO Michael Hartshorn reported that there was no noticeable change in customer income cohorts during the quarter, with performance being broad-based. He did note that stores with a high concentration of Hispanic customers, a key demographic, experienced some softness in June but saw a solid bounce-back in July.

Ask Fintool Equity Research AI

Answer

Executive James Conroy explained that while there is flexibility to adjust the merchandise mix, certain signature items are essential regardless of origin. He emphasized that the entire retail market is attempting to re-source product, which is a multi-month process. He characterized significant sourcing shifts as a 2026 adjustment, not a near-term fix for 2025.

Ask Fintool Equity Research AI

Answer

Executive James Conroy responded that while there is flexibility to amplify certain categories over others, signature items must remain in the assortment. He noted that while all vendors are working to re-source goods, this is a several-month process, and significant shifts in country of origin are more of a 2026 adjustment rather than a 2025 one.

Ask Fintool Equity Research AI

Answer

Group President and COO Michael Hartshorn reported that dd's sales gains were above Ross throughout 2024, driven by strong fashion and value offerings. He noted encouraging performance in newer markets, prompting plans to rebuild the store growth pipeline for 2026. However, he confirmed dd's saw a similar slowdown trend as Ross in early 2025.

Ask Fintool Equity Research AI

Answer

Group President & COO Michael Hartshorn attributed dd's outperformance to strong merchant execution in improving its value and fashion offerings. CEO Barbara Rentler noted that customers did return to shopping after weather events subsided. Hartshorn added that the company has not seen a significant shift in its customer base by income or age.

Ask Fintool Equity Research AI

Answer

CEO Barbara Rentler described the inventory availability in the marketplace as 'favorable' and 'broad based.' She confirmed that the company is actively expanding its vendor base, noting that with business being challenging in some retail segments, vendors are looking to build relationships, creating a favorable environment for off-price retailers to add new partners.

Ask Fintool Equity Research AI

Answer

CEO Ernie Herrman explained that TJX does not employ a top-down price-raising strategy. Instead, buyers determine prices on a deal-by-deal basis by working backward from competitors' prices to ensure a compelling value gap, which is not a fixed percentage. CFO John Klinger noted that internal customer surveys confirm that the company's value perception remains very strong.

Ask Fintool Equity Research AI

Answer

CEO Ernie Herrman explained that the company's buying strategy focuses on the end retail price to maintain its value gap, making factors like tariffs a vendor concern. He sees the current environment creating more buying opportunities. CFO John Klinger added that the company plans for a 'small improvement' in shrink, driven by the annualization of prior-year initiatives.

Ask Fintool Equity Research AI

Answer

CEO Ernie Herrman stated that direct imports are a very small portion of the business and that the company's primary focus is maintaining its value gap versus competitors, regardless of tariffs. He added that market disruption from tariffs can create opportunistic buying advantages. CFO John Klinger noted a minor freight headwind is anticipated and included in the Q4 forecast.

Ask Fintool Equity Research AI

Answer

CEO James Zheng explained that while Solomon's recent growth was led by Greater China, APAC, and EMEA, the U.S. market is still in a foundational phase. The company plans to expand from one to four or five U.S. stores by year-end to validate its 'compact shop' format, while also strengthening key wholesale partnerships with retailers like REI and Nordstrom. Zheng expressed high confidence in replicating the brand's international success in the U.S. over time.

Ask Fintool Equity Research AI

Answer

CFO Andrew Page affirmed that the momentum is sustainable, as reflected in the raised full-year guidance for the Outdoor Performance segment. He attributed the growth to successful go-to-market strategies, strong performance in APAC and Greater China, and accelerating momentum in Europe. He emphasized that the direct-to-consumer channel serves as a strong leading indicator for the brand's potential.

Ask Fintool Equity Research AI

Answer

CFO Andrew Page affirmed confidence in Salomon's sustainable momentum, referencing the raised full-year guidance for the Outdoor Performance segment. He stated that growth is accelerating across Asia, Greater China, and Europe, and that the strong performance of the direct-to-consumer channel serves as a leading indicator of the brand's potential.

Ask Fintool Equity Research AI

Answer

CFO Andrew Page explained that SG&A investments are focused on new store build-outs, enhancing consumer connections online and in-store, and infrastructure upgrades like their ERP system and logistics. He noted that investments from 2023 and 2024 are expected to begin scaling, leading to a forecast of 'relatively flattish' SG&A as a percentage of sales in 2025.

Ask Fintool Equity Research AI

Answer

CEO Joanne Crevoiserat highlighted the company's strong fiscal 2025 performance and momentum carrying into Q1 2026, guiding for mid-single-digit revenue growth despite tariff headwinds. Coach CEO & Brand President Todd Kahn detailed the brand's 13% Q4 growth, strong new customer acquisition in the Gen Z and Millennial demographics, and significant brand heat, exemplified by the rapid sell-out of its Kiss Lock bag.

Ask Fintool Equity Research AI

Answer

Coach CEO Todd Kahn explained that while unit volumes are currently below 2019 levels, this is a direct result of a 70% increase in AUR in North America over that period and a strategic reduction in promotional activity. He stated that this focus on brand health and value creates sustainable growth, and he expects unit growth to follow as they continue to acquire new customers at higher price points.

Ask Fintool Equity Research AI

Answer

CEO Joanne Crevoiserat stated that Greater China returned to low single-digit growth, outpacing the industry, thanks to successful global brand-building strategies and increased marketing driving Gen Z acquisition. Todd Kahn, CEO and Brand President of Coach, added that their 25-year presence, strong local teams, and the growth of the middle class provide a significant runway for both productivity and store distribution growth in the region.

Ask Fintool Equity Research AI

Answer

CFO Sarah Oughtred confirmed the expected 2025 tariff impact is 150 basis points, based on current rates for Vietnam (20%), Jordan (15%), and China (30%). She noted the impact will build through Q3 and Q4. While not providing a 2026 figure, she clarified that the 2025 guidance does not yet reflect any pricing actions, as the company continues to prioritize other mitigation strategies first.

Ask Fintool Equity Research AI

Answer

CEO Trina Spear confirmed that the Fit Initiative remains on track and will not be impacted by near-term supply chain shifts. CFO Sarah Oughtred added that selling expense optimization will come from scaling the new fulfillment center, which was built for $1 billion in revenue capacity. She noted that as sales grow, natural efficiencies will emerge, supplemented by active efforts like negotiating with multi-carrier shipping vendors.

Ask Fintool Equity Research AI

Answer

CFO Sarah Oughtred explained that investments in upper-funnel marketing and targeted customer funnel initiatives are planned to support retention. She also noted that the supply chain roadmap was reassessed by the new COO, prioritizing optimization of the current U.S. facility over the Canadian DC for 2025.

Ask Fintool Equity Research AI

Answer

Co-Founder and CEO Trina Spear acknowledged some consumer inconsistency in Q3, leading to a cautious Q4 promotional stance, but noted strength in full-price sales and improving repeat purchase frequency. CFO Sarah Oughtred added that 2025 margin improvement will be dictated by the pace of top-line stabilization and strategic investment choices, while benefiting from lapping one-time fulfillment and marketing costs from 2024.

Ask Fintool Equity Research AI

Answer

CEO Mark Barrocas explained that the offensive strategy involves capitalizing on strong domestic demand driven by new products and retailer commitments, despite a weaker overall market. Internationally, he anticipates accelerated growth in the U.K., continued strength in France and Germany, and growing traction in new direct markets like Mexico. CFO Patrick Reagan addressed the tariff question, stating that there is now greater clarity with rates set at 30% for China and 19-20% for Southeast Asia. This clarity is factored into the updated guidance and provides increased supply chain flexibility.

Ask Fintool Equity Research AI

Answer

CEO Mark Adam Barrocas stated that while the multi-hundred-million-dollar tariff impact is not 100% offset, the company has mitigated enough through a fluid mix of buy-side, sell-side, and OpEx controls to confidently raise guidance. CFO Patraic Reagan added that the company is leveraging a well-established playbook for supply chain agility and declined to provide a specific gross margin target, emphasizing that they will remain nimble and adjust levers like pricing throughout the year.

Ask Fintool Equity Research AI

Answer

CEO Mark Adam Barrocas addressed the first part, noting that supply chain costs will be elevated in H1 2025 but expects leverage on OpEx in H2. He remained cautious on margin flow-through due to external uncertainties like tariffs. CFO Patraic Reagan handled the second part, explaining the Mexico transition is a strategic long-term decision. He declined to quantify the immediate revenue impact but framed it as a short-term headwind and noted Mexico represents a potential $400 million market over the next few years.

Ask Fintool Equity Research AI

Answer

CEO Mark Barrocas detailed significant reinvestments in R&D for the 2025 product pipeline, international expansion in Germany and France, and accelerating the manufacturing shift out of China. CFO Patraic Reagan explained that international margins vary by market maturity, with the UK being highest, while newer direct markets are building scale and distributor markets have lower product margins but also lower operating expenses, leading to a comparable EBITDA profile.

Ask Fintool Equity Research AI

Answer

President, CEO and Chair, Scott Baxter, explained that investments in Wrangler will continue due to their proven success, while the Lee brand is launching its first major equity campaign in over a decade, backed by a stronger product engine. He noted that Kontoor will help Helly Hansen better understand the domestic consumer. EVP, CFO & Global Head of Operations, Joe Alkire, specified that a disproportionate amount of the $15 million incremental investment will occur in Q3 ahead of the holiday season. He also stated that the 2-3% core business growth in H2 is driven by the 53rd week and new distribution programs.

Ask Fintool Equity Research AI

Answer

CEO Scott Baxter expressed high confidence in Lee's turnaround, citing superior product, strong digital growth (+8%), and a promising new equity campaign launching in the fall, projecting an inflection to growth in 2026. CFO Joseph Alkire attributed the 200 bps Q1 gross margin expansion to favorable mix, lower product costs, and early benefits from Project Jeanius, noting some drivers will moderate through the year.

Ask Fintool Equity Research AI

Answer

CEO Scott Baxter stated the Lee brand strategy involves elevating its presence by expanding into upper-tier and specialty retail. CFO Joe Alkire noted demand creation spend will grow 'meaningfully above revenue,' while COO Thomas Waldron added that a new Lee campaign will launch in H2 2025. On tariffs, Waldron confirmed they have multiple mitigation plans ready, with levers they can pull quickly in 2025 to offset impacts by 2026.

Ask Fintool Equity Research AI

Answer

Carrie Baker, President of Brand & Commercial, attributed the comp acceleration to three factors: higher marketing investments driving engagement, a more seasonally relevant product assortment that challenged brand perceptions, and stronger in-store execution leading to higher conversion. She clarified that Snow Goose is currently positioned as a brand heat driver rather than a primary commercial driver. Neil Bowden, CFO, addressed SG&A, stating that investments in revenue-driving areas like marketing and store labor will continue, while discretionary spending is being managed with more discipline, leading to an expected lift in SG&A to fuel growth.

Ask Fintool Equity Research AI

Answer

Carrie Baker, President of Brand & Commercial, attributed the comp growth to a trio of factors: bold marketing, seasonally relevant product, and strong retail execution driving higher conversion. She positioned the Snow Goose collection as a brand heat driver rather than a primary commercial one for now. CFO Neil Bowden added that SG&A growth will be focused on revenue-driving investments like marketing and store labor, with discipline on other discretionary spending.

Ask Fintool Equity Research AI

Answer

Carrie Baker, President of Brand & Commercial, attributed the sustained North America momentum to product expansion, enhanced store execution, and impactful brand storytelling, expressing confidence in these strategies for FY26. Neil Bowden, an executive, clarified that while SG&A will increase, investments are strategic and focused on long-term value in marketing, product design, and new stores, while controlling corporate overhead. He declined to provide a specific percentage of sales for the planned spend.

Ask Fintool Equity Research AI

Answer

Carrie Baker, President of Brand & Commercial, stated that the response to Snow Goose in China was strong, amplifying brand health and driving momentum, especially during key commercial moments like Lunar New Year. She noted that while the macro environment remains pressured, investments are yielding results. Regarding wholesale, she confirmed the strategy is working, leading to higher sell-through, cleaner markets, and positive partner conversations, with renewed energy around Haider Ackermann's new collections. Chairman and CEO Dani Reiss added that the outlook for fiscal '26 wholesale would be provided on the next call.

Ask Fintool Equity Research AI

Answer

President Carrie Baker said the focus of retail initiatives is driving top-line growth to improve margins. CFO Neil Bowden noted they are cautious on the near-term margin impact but see long-term opportunity. Regarding pricing, CEO Dani Reiss stated they've been cautious, while Carrie Baker added that consumer feedback suggests room for price growth at the higher end, especially with new designs from Haider Ackermann.

Ask Fintool Equity Research AI

Answer

Co-CEO Neil Blumenthal affirmed the stability of the eye care category, noting that despite some choppiness in April, strong trends have returned, supported by the company's value proposition and strategic price increases. CFO Steven Miller detailed the sources of SG&A leverage, highlighting efficiency gains in retail staffing, customer experience teams, and corporate expenses, and expressed confidence in continuing this trend which has yielded approximately 300 basis points of leverage year-to-date.

Ask Fintool Equity Research AI

Answer

Co-CEO David Gilboa affirmed the sustainability of the 100-200 basis point annual margin expansion goal. He detailed that leverage in non-marketing SG&A will come from staffing efficiencies in retail and customer experience, as well as leveraging the fixed-cost base of corporate overhead. Co-CEO Neil Blumenthal addressed smart glasses, stating that as the technology matures, Warby Parker is well-positioned to participate due to its brand, design capabilities, and omnichannel distribution, and will share more as the market develops.

Ask Fintool Equity Research AI

Answer

Co-Founder and Co-CEO Neil Blumenthal attributed the momentum to disciplined marketing efforts focused on customer acquisition costs, noting strength built throughout the quarter after a soft July. Co-Founder and Co-CEO David Gilboa added that momentum was evident in active customer growth and e-commerce velocity. He anticipates a moderate increase in marketing spend in Q4 for the holiday and FSA season, but expects it to remain in the low-to-mid teens as a percentage of revenue.

Ask Fintool Equity Research AI

Answer

CEO Matt Reintjes stated that new innovation is expected to drive both diversification and growth, though its positive impact is currently masked by a broader Drinkware market correction. CFO Mike McMullen added that the 300 basis point supply chain disruption primarily impacts Drinkware, limiting some new product availability. He expressed confidence in a return to growth for U.S. Drinkware in 2026 as these constraints ease.

Ask Fintool Equity Research AI

Answer

Executive Matthew Reintjes explained that YETI's strategy to diversify its Drinkware portfolio has mitigated concentration risk from trend-driven items. He anticipates a market correction but sees durable long-term demand, supported by a strong innovation pipeline. He also affirmed that wholesale partnerships remain strong, with partners enthusiastic about the product roadmap despite macro uncertainty.

Ask Fintool Equity Research AI

Answer

EVP & CFO Michael McMullen attributed the second-half weighted growth forecast to the timing of Drinkware innovation and tougher growth comparisons from the first half of 2024. President & CEO Matthew Reintjes added that a key focus for the first half of 2025 is the successful diversification of the Drinkware supply chain, which enables a strong innovation pipeline for the second half. He described the current channel mix as a balanced omnichannel approach, with no new long-term targets provided.

Ask Fintool Equity Research AI

Answer

CEO Matt Reintjes clarified that the new bags launching in the first half of 2025 are considered 'expansionary and additive' to the current portfolio. He stated that he does not expect any meaningful transitional pricing changes, as the primary goal is to expand the product line and offer more choices to consumers.

Ask Fintool Equity Research AI

Answer

Interim CFO Rajal Mehta stated that while Q2 gross margin will be pressured by tariffs and pricing resets, they expect gross margin expansion in fiscal 2027. This will be driven by higher full-price sell-throughs and mitigation efforts like sourcing optimization and targeted price increases. Chairman & CEO John Idol added that the company is absorbing an $85 million tariff impact this year while maintaining its operating income guidance, thanks to cost controls and reduced promotional activity.

Ask Fintool Equity Research AI

Answer

Chairman and CEO John Idol stated that the wholesale outlook is consistent with what was presented at the Investor Day. He reported that strategic partners are responding positively to the brand's return to its 'Jet Set' heritage and that new product groups are seeing strong sell-throughs. Idol also highlighted the successful launch on Amazon, which has exceeded expectations. He clarified that while a decline is planned for the year due to scheduled door closures, the company expects to stabilize the wholesale business by the fourth quarter and return it to modest growth in fiscal 2027.

Ask Fintool Equity Research AI

Answer

Chairman & CEO John Idol responded that the wholesale outlook is consistent with what was presented at Investor Day. He noted that partners are positive about the brand's return to its 'Jet Set' heritage, leading to strong sell-throughs of new products and even increased commitments in some cases. Idol also highlighted the successful launch on Amazon, which has exceeded expectations. He clarified that while a decline is still planned for the year due to scheduled door closures, the business is expected to stabilize and return to modest growth in fiscal 2027.

Ask Fintool Equity Research AI

Answer

CEO John Idol identified product innovation as the primary driver, supported by positive reactions from internal buying teams. He noted that marketing initiatives leveraging brand heritage aim to stabilize traffic declines, citing strong database growth (11-15% YoY) as a positive indicator. He highlighted specific product strategies, such as more accessibly priced luxury items at Versace and increasing signature product penetration to 40% at Michael Kors, as key tactics to re-engage consumers and drive traffic.

Ask Fintool Equity Research AI

Answer

John Idol attributed the expected improvement to three factors: 1) innovative new products, 2) new marketing initiatives, particularly leveraging Michael Kors' 'Jet Set' heritage, which should help flatten traffic declines, and 3) strategic pricing architecture changes, such as introducing more accessible luxury price points at Versace and increasing signature products at Michael Kors. He noted that strong database growth is a positive lead indicator and that they will be anniversarying weak comps.

Ask Fintool Equity Research AI

Answer

CEO Mark Walsh identified increased investment in Canadian selection and the accelerated Two Peaches store conversions as key factors. COO Jubran Tanious elaborated on the strategy to 'feed the momentum' in Canada. CFO Michael Maher stated that Q2 saw the peak impact and expects second-half gross margins to be much closer to the prior year.

Ask Fintool Equity Research AI

Answer

Executive Jubran Tanious explained that while there is some minor variability, new store performance has been largely in line with their increasingly precise predictive models. CFO Michael Maher reaffirmed that high-teens EBITDA margins remain the long-term goal, though near-term pressure from new store investments is expected before those stores mature and contribute to earnings growth.

Ask Fintool Equity Research AI

Answer

Executive Mark Walsh noted growth in loyalty members and an increase in the higher-income cohort (above $100k), which is partially offset by pressure on lower-income consumers, especially in Canada. Executive Michael Maher explained that Q1 EBITDA margin will be the lowest due to seasonality, a temporary lull in store openings, and operating losses from the 2024 class of new stores. He expects margins in Q2-Q4 to be more aligned with the full-year outlook.

Ask Fintool Equity Research AI

Answer

Executive Mark Walsh explained that the company tested several promotional and pricing strategies, with targeted price reductions by category and grade showing the most promise. However, he clarified that the more influential factor in the recent Canadian sales trend improvement was rebalancing processing levels higher after pulling back too far. Walsh confirmed that the new pricing tools and processes developed from these tests will be rolled out across North America in early 2025. CFO Michael Maher added that they do not expect these pricing tests to have a significant impact on sales or margins in the fourth quarter.

Ask Fintool Equity Research AI

Answer

President & CEO Bracken Darrell acknowledged a general sense of conservatism and inventory caution among wholesalers globally due to tariff uncertainty. However, he expressed confidence that VFC's ongoing investments in product innovation and marketing will strengthen its position and help offset these potential headwinds.

Ask Fintool Equity Research AI

Answer

President and CEO Bracken Darrell explained that the impacts from four key actions—China channel reduction, own-store closures, value-door closures, and reduced distressed sales—will continue through Q1 and Q2, fade in Q3, and be fully annualized by Q4. He did not indicate further actions were being contemplated at this time.

Ask Fintool Equity Research AI

Answer

EVP and CFO Paul Vogel attributed the SG&A outperformance to 'really great execution' on the 'Reinvent' cost-saving initiatives. He confirmed the initial $300 million in savings will be at a full run rate by year-end, and the company is in the early stages of realizing the next $500-$600 million in operating income benefits, which will be allocated across the P&L.

Ask Fintool Equity Research AI

Answer

CFO Paul Vogel confirmed that gross margin is expected to increase in both Q3 and Q4, aided by favorable comparisons to the prior year's inventory actions. He indicated that a more detailed breakdown of these drivers would be provided at the upcoming Investor Day.

Ask Fintool Equity Research AI

Answer

EVP & CFO Harmit Singh advised looking at Europe on a year-to-date basis, where wholesale is up 7% and overall growth is in the high single digits, suggesting a mid-to-high single-digit run rate is appropriate. He noted the region is still below its prior peak revenue. President & CEO Michelle Gass, referencing a recent visit, expressed high confidence in the region, citing a phenomenal leadership team, strong DTC execution, and high brand relevance as sustainable growth drivers.

Ask Fintool Equity Research AI

Answer

CFO Harmit Singh referenced the COVID period as a proxy, where the cost structure was about 65-70% fixed. He explained that while they are evaluating all cost initiatives, they would be cautious about cutting investments like marketing that are driving brand momentum. He also highlighted the strong, diversified international business as a potential offset to any softness in the U.S.

Ask Fintool Equity Research AI

Answer

President and CEO Michelle Gass outlined regional growth expectations as low-to-mid-single digits for the Americas and mid-single digits for both Europe and Asia. CFO Harmit Singh added that full-year gross margin expansion of 100 basis points will be front-loaded, with higher expansion in the first half (150-200 bps) and moderating in the second half, driven by lower product costs, structural mix shifts to DTC, and a focus on full-price sales.

Ask Fintool Equity Research AI

Answer

CFO Harmit Singh detailed that the 440 basis point year-over-year gross margin increase was driven by 270 bps from lower product costs, 190 bps from favorable channel mix, and 50 bps from higher full-price sales, partially offset by 60 bps of headwinds from FX and airfreight. He stated that the outperformance versus guidance was due to stronger-than-expected channel mix and full-price selling, and he anticipates similar drivers in Q4.

Ask Fintool Equity Research AI

Answer

President & CEO Elliot Hill reiterated long-term confidence in China but acknowledged that recovery is on a different timeline due to the region's unique mono-brand marketplace structure. He stated the team is focused on cleaning up inventory, elevating digital, testing new retail concepts, and connecting locally with China-specific products, but emphasized that these changes will take time to implement.

Ask Fintool Equity Research AI

Answer

CEO Elliott Hill expressed high confidence in NIKE's innovation pipeline, detailing a two-pronged approach of long-term research and near-term newness. He highlighted recent successes in apparel with the '24/7' collection and in footwear with styles like the Vomero 5 and Shox. Hill conveyed excitement about the Spring 2026 product line, stating it reflects the positive impact of the company's focused 'Win Now' strategy.

Ask Fintool Equity Research AI

Answer

President and CEO Elliott Hill expressed strong confidence in both the long-term (3-5 year) and near-term innovation pipelines, highlighting the Nike Sports Research Lab's work. He pointed to recent successes in apparel with the 24/7 collection and in footwear with the Vomero 5 and Shox models. Hill also noted his excitement after the Spring '26 product review, seeing it as evidence that the 'Win Now' strategy is beginning to yield a stronger product portfolio.

Ask Fintool Equity Research AI

Answer

President and CEO Elliott Hill explained that in North America, a new leader is aggressively cleaning up the marketplace, rebuilding wholesale ties, and elevating NIKE Direct. For Greater China, despite a promotional environment, the focus is on product innovation (including locally designed products), bold brand moments, and resetting the retail marketplace with key partners like Topsports and Pou Sheng to drive long-term growth.

Ask Fintool Equity Research AI

Answer

EVP & CFO Matthew Friend explained that soft consumer traffic was an industry-wide issue in China, prompting NIKE to be more promotional in Q1. He noted that top performance innovations like Pegasus 41 and Alphafly 3 resonated well with Chinese consumers. While near-term expectations are moderated, he expressed long-term optimism for China, driven by rising sport participation and investments in 'China for China' capabilities.

Ask Fintool Equity Research AI

Answer

CEO Hillary Super explained that the marketing strategy will be an evolution, not an abrupt change, focusing on targeted customer acquisition, an 'always on' bra campaign, and optimizing the marketing funnel. CFO Scott Sekella added that pricing adjustments will be strategic, emphasizing optimized promotions like 'gift with purchase' (GWP) over broad-based price hikes, targeting specific categories where a value proposition gap exists.

Ask Fintool Equity Research AI

Answer

CEO Hillary Super described the sport and swim businesses as relatively small but growing nicely, with a long runway for growth back towards their historical size. CFO Scott Sekella stated that marketing spend will be largely flat year-over-year, with a focus on reallocation. He noted that total SG&A will see slight deleverage under the current guide, but the model begins to leverage at 1-2% North American sales growth.

Ask Fintool Equity Research AI

Answer

CEO Hillary Super stated that overall marketing spend as a percentage of sales should remain consistent, with the focus shifting to *how* it's spent: a full-funnel approach for Victoria's Secret and a mobile-first, TikTok-centric strategy for PINK. CFO Tim Johnson explained that Q4 promotions were planned to be flat year-over-year, but strong performance creates an opportunity to be less promotional. He also detailed that higher selling margins in Q4 are being offset by pressures from transportation rates, incentive costs, and calendar shifts.

Ask Fintool Equity Research AI

Answer

CFO and Interim CEO, Timothy Johnson, explained that the SG&A outperformance was the result of broad-based discipline across many areas, including travel, headcount, shipping logistics, and store payroll, rather than a single large initiative. For the back half, he expects SG&A dollars to be relatively flat year-over-year in Q3, with potential for slight growth in Q4, partly due to assumptions for higher incentive compensation. He also highlighted that buying and occupancy costs, which are part of gross margin, were down and are expected to remain flat-to-down.

Ask Fintool Equity Research AI

Answer

CFO Jill Timm explained that the women's business is seeing building momentum as it shifts back to its historically strong proprietary brands, with categories like juniors already showing significant improvement. She expects progressive improvement throughout the year. Regarding the credit business, Timm noted that its performance is tied to the core customer's sales and is also impacted by an accounting shift of expenses into the 'Other Revenue' line, which obscures underlying trends.

Ask Fintool Equity Research AI

Answer

CEO Ashley Buchanan clarified that the focus for reversing coupon exclusions is on the many brands that Kohl's unilaterally excluded over the years, not the major national brands that have always been excluded. Many of these brands did not ask to be excluded and some have asked for the policy to be repealed, making those conversations easier. CFO Jill Timm explained that the credit business has seen softness due to lower sales from the core credit customer, leading to reduced revolving balances. The co-brand conversion to Capital One was completed in February. She noted that less generous credit line increases in the recent conversion cohort led to slightly less spend, but this presents a future opportunity as the macro environment improves.

Ask Fintool Equity Research AI

Answer

Chairman & CEO Tony Spring detailed a multi-pronged market share strategy focusing on flowing newness in product, adding new brands, improving marketing with a better balance of top and bottom-funnel investments, and enhancing the in-store experience with more colleagues and better service, leading to higher NPS scores. COO & CFO Adrian Mitchell explained that while a specific Q2 gross margin breakdown wasn't provided, the pressure comes from markdowns on late-arriving spring inventory and the flow-through of products bought under higher tariffs, alongside strategic investments in price to gain share.

Ask Fintool Equity Research AI

Answer

CEO Antony Spring highlighted the strength of Macy's Inc.'s portfolio, which serves 40 million customers across five generations, providing flexibility in the current climate. COO & CFO Adrian Mitchell noted that while Q1 faced transitory pressures, the company is scaling successful initiatives and expects momentum to build throughout the year as it focuses on controllable factors.

Ask Fintool Equity Research AI

Answer

CEO Antony Spring expressed confidence, citing three consecutive quarters of comp growth in 'First 50' stores and significant outperformance in test locations, stating the investments are a priority and will be accretive to overall profitability. COO & CFO Adrian Mitchell explained the updated Q4 gross margin outlook reflects a competitive landscape and a choiceful consumer, requiring a focus on providing value while balancing profitability and inventory management.

Ask Fintool Equity Research AI

Answer

CEO Tony Spring expressed strong confidence in the 'First 50' initiative, citing its positive comp growth and improved NPS scores, stating that expansion is a matter of 'when, not if.' He confirmed the 100-store test for handbag and shoe staffing is a positive sign. COO and CFO Adrian Mitchell added that marketing adjustments are centered on delivering a sharp value message, enhancing in-store visual presentation, and ensuring colleague availability to amplify the value proposition for the consumer.

Ask Fintool Equity Research AI

Answer

Chairman & CEO Tony Spring detailed a multi-pronged market share strategy focused on flowing newness in product, adding new brands, improving marketing with a better top/bottom funnel balance, and enhancing the in-store experience. COO & CFO Adrian Mitchell clarified that while a specific Q2 margin breakdown wasn't provided, pressures include markdowns on late-arriving spring goods and the flow-through of products bought under higher tariffs, alongside strategic price investments to gain share.

Ask Fintool Equity Research AI

Answer

CEO Calvin McDonald expressed encouragement with recent community-based marketing activations, citing strong engagement and their positive impact on both customer acquisition and retention. CFO Meghan Frank specified that the guidance includes an approximate 20 basis point headwind from tariffs on imports from China and Mexico, and that mitigation strategies would include cost structure reviews and potential pricing actions.

Ask Fintool Equity Research AI

Answer

Marketing investments are yielding positive returns, successfully increasing brand awareness to 36% in the U.S. The primary focus for growth is not on re-engaging lapsed customers, as retention is already very high, but on increasing the spend of loyal, existing customers by providing more product newness.

Ask Fintool Equity Research AI

Answer

CFO Meghan Frank noted marketing spend will be near 5.5% of sales this year, up from the typical 4.5-5%, as they maintained campaigns despite revenue pressure. CEO Calvin McDonald added that investments are driving new guest acquisition and have raised U.S. unaided brand awareness to 36%. He clarified that the key opportunity is not with lapsed customers, as retention is very high, but in increasing revenue per guest by restoring historical levels of product newness.

Ask Fintool Equity Research AI

Answer

There were no meaningful shifts in the guest profile; the conversion miss was seen across existing guests who were looking for newness. The issue was a product gap, not a customer shift. Marketing will continue to focus on top-of-funnel awareness, as strengthening the product mix is seen as the biggest lever to drive conversion.

Ask Fintool Equity Research AI

Answer

CEO Calvin McDonald responded that there was no significant shift in the guest profile and that the conversion miss was broad across demographics, particularly affecting existing guests seeking newness. He stated that the primary focus is on fixing the product assortment, as that will be the biggest lever for improving conversion, while marketing continues to drive top-of-funnel brand awareness.

Ask Fintool Equity Research AI

Answer

CEO Calvin McDonald responded that there was no meaningful shift in the guest profile, with new customer acquisition remaining broad. The conversion miss was primarily among existing guests who were seeking newness. He stated that restoring product newness is the primary lever for improving conversion, complemented by top-of-funnel marketing to drive brand awareness.

Ask Fintool Equity Research AI

Answer

CEO Lisa Harper described the core customer as fundamentally strong with positive traffic trends, though conversion remains choppy. She attributed recent improvements to strength in core categories like denim and dresses, amplified by the excitement around new sub-brands. CFO Paula Dempsey clarified that the financial impact of the 40-50 store closures planned for fiscal 2025 will be minimal this year, with the majority occurring in Q4, and that the benefits will be more significant in fiscal 2026.

Ask Fintool Equity Research AI

Answer

CEO Lisa Harper explained that while she couldn't provide an exact percentage, newness would impact every category, highlighting new sub-brands like Festi, Nightfall, and Retro Chic. Marketing will be enhanced with a robust influencer program and a repeat of the successful model search. CFO Paula Dempsey added that EBITDA margin expansion is achievable even without comp growth due to store optimization initiatives, but the company remains confident in returning to positive comps.

Ask Fintool Equity Research AI

Answer

President and CEO Patrice Louvet stated that the company's general trend is toward reduced promotional activity, which contributed to the quarter's strong AUR growth. He explained that the plan is to continue this elevation journey by pulling back on discounts but remaining nimble, while avoiding defining an 'optimal' level due to the competitive landscape.

Ask Fintool Equity Research AI

Answer

CFO Susan Healy clarified that the $50 million in savings is already actioned, with the remainder to be realized evenly in Q3 and Q4 across gross margin and SG&A. She stated that further opportunities are being actively pursued, with a primary focus on SG&A and simplifying the business by eliminating investments that do not show a strong long-term return, such as certain performance marketing spend.

Ask Fintool Equity Research AI

Answer

Rack.com achieved full-year profitability in 2023, while Nordstrom.com is already a highly profitable channel. The company has factored its best estimate of the impact from the new CFPB late fee rule into its 2024 guidance, noting its portfolio is less exposed than peers due to higher credit quality.

Ask Fintool Equity Research AI