Corey Tarlowe • Jefferies

Answer

Walmart International President & CEO Kathryn McLay detailed strong momentum, with 22% e-commerce growth driven by store-fulfilled delivery and marketplace. She highlighted progress in China, India's quick commerce, and platform rollouts in Canada and Mexico. President, CEO & Director Doug Mcmillon added that the long-range plan is for international profitability to grow faster than sales.

Ask Fintool Equity Research AI

Answer

Walmart International CEO Kath McLay confirmed that PhonePe is preparing for an IPO, highlighting its strong performance with 310 million daily transactions. CFO John David Rainey stated the company's standard is for ROI to increase every year, with some current investments like supply chain automation yielding returns approaching 20%. He expressed a goal of reaching historical ROI highs over time.

Ask Fintool Equity Research AI

Answer

Incoming CEO Michael Fiddelke identified the path to growth through three priorities: reclaiming merchandising authority, elevating the guest experience, and leveraging technology. EVP & CCO Rick Gomez detailed drivers of recent improvement, including a 5% comp in 'Fun 101' (hardlines) and a 28% comp in women's denim, attributing success to delivering new, on-trend, and stylish products at affordable prices.

Ask Fintool Equity Research AI

Answer

President and CEO Jason Potter explained that new store performance is benefiting from a better mix of infill locations, improved site selection, and learnings from pilot stores. He expressed excitement about the potential to roll out successful initiatives. On margins, CFO Chris Miller stated that while they see opportunities for improvement, the current guidance of 30.0% to 30.5% remains appropriate to allow for flexibility as various initiatives are tested.

Ask Fintool Equity Research AI

Answer

CEO Jason Potter stated that while initiatives to improve product mix and quality are underway, their impact timing is uncertain. CFO Chris Miller added that strong Q1 traffic (+2.3%) was offset by a soft basket (-2.0%), a trend continuing into Q2. Given this and macro uncertainty, they prudently lowered the comp guide but expect modest sequential improvement in the back half of the year.

Ask Fintool Equity Research AI

Answer

Chairman Eric Lindberg clarified that the business's execution challenges, not the restructuring plan itself, prompted the change. He explained the decision to slow store openings was to address underperformance in new, non-adjacent markets and to better manage execution risks related to market awareness, staffing, distribution, and marketing. The restructuring was a result of this strategic narrowing of priorities.

Ask Fintool Equity Research AI

Answer

Interim President and CEO Eric Lindberg affirmed that the 10% unit growth target is not at risk and will be driven primarily by organic openings, with a strong pipeline of over 50 stores for 2025. He characterized the current value investments as a necessary correction, similar to past instances, aimed at restoring key metrics like the 40% savings versus conventional grocers and enhancing the 'excitement drivers' in the assortment.

Ask Fintool Equity Research AI

Answer

CEO John Hazen reiterated the timeline, stating that reticketing of third-party brands will be completed by August. He clarified that the strong Q1 exclusive brand penetration was not driven by price dislocation, as the price increases had not yet been implemented. The company will evaluate raising exclusive brand prices in either October or January.

Ask Fintool Equity Research AI

Answer

CFO Jim Watkins explained that comp growth in the first half of the year is expected to be driven by increased transactions, similar to recent trends. In the second half, as price increases take effect, he anticipates transaction growth will slow, with average unit retail (AUR) increasing, causing the two factors to partially offset each other. Regarding capital allocation, Watkins stated the top priority is funding new store growth, followed by a methodical share repurchase program to return excess cash to shareholders.

Ask Fintool Equity Research AI

Answer

Interim CEO John Hazen stated that transaction growth has been consistent across all customer segments, crediting a well-balanced product assortment. CFO Jim Watkins explained that B&O deleverage is a function of the aggressive 15% annual new unit growth and that the comp required to leverage this line item is unlikely to decrease significantly in the near term.

Ask Fintool Equity Research AI

Answer

President, CEO & Director, Andrew Clyde, explained the 2028 target was updated in response to investor questions. The new ~$1.2B potential EBITDA reflects shortfalls in merchandise and store months, offset by better-than-planned OpEx, new store performance, and higher fuel margins. He noted a path back to the original target exists if they can reclaim about a penny of fuel margin. For the second half, he expects no major shifts but sees more upside than downside in areas that were weak in H1, like tobacco, while the company remains focused on executing its controllable strategies.

Ask Fintool Equity Research AI

Answer

CEO Andrew Clyde highlighted the strong performance of recent new store classes, with the 2022 and 2023 cohorts delivering fuel volumes over 310,000 gallons per store month and robust merchandise sales. Regarding SG&A, Clyde confirmed that there are further efficiency opportunities, which are already factored into the 2025 guidance. These efficiencies are expected to be realized from retiring old systems and leveraging new technology investments.

Ask Fintool Equity Research AI

Answer

CEO Andrew Clyde detailed that the share of middle to high-income customers in their loyalty program has grown from ~40% to nearly 50%, reflecting a broader consumer search for value. He attributed strong QuickCheck food and beverage performance to digital investments and new promotions, and noted that fuel price volatility is beneficial for margins as competitors are slower to react.

Ask Fintool Equity Research AI

Answer

Chairman and CEO Edward Rosenfeld clarified that excluding Kurt Geiger, inventory was up only 1%, with the increase attributable to tariff inflation and longer transit times. When normalized for these factors, inventory levels were in line with the revenue decline. Similarly, he stated that operating expenses, excluding Kurt Geiger, were up less than 3%.

Ask Fintool Equity Research AI

Answer

CEO Ed Rosenfeld confirmed that excess channel inventory in handbags remains a factor constraining shipments, now compounded by tariff disruptions. He noted that wholesale sell-through in April was good and similar to March's improved levels. However, he acknowledged an increase in order cancellations, primarily from FOB customers who bear the tariff costs directly, and from other customers unwilling to accept price increases or later delivery dates.

Ask Fintool Equity Research AI

Answer

CFO Zine Mazouzi explained that the 12.5% inventory increase was primarily due to longer transit times, and on a comparable basis, inventory was up only low-single digits. Chairman and CEO Edward Rosenfeld added that the boot season was very strong, particularly for tall-shaft styles. He also noted that the transition of international markets to JVs is an ongoing process, with the APAC region representing the largest future growth opportunity.

Ask Fintool Equity Research AI

Answer

CEO Hillary Super expressed strong confidence in her newly assembled leadership team, referring to them as the 'super squad' and stating they are the right team to drive the strategy forward. CFO Scott Sekella projected that inventory would remain up mid-single digits year-over-year, driven by the European distribution center ramp-up in the first half and the cost impact of tariffs in the second half.

Ask Fintool Equity Research AI

Answer

CEO Hillary Super described moving from a single 52-week, bra-centric calendar to multiple, faster tracks as 'essential' for agility. She aims to reduce apparel lead times to around 26 weeks. For technical categories like swim and sport, separate tracks will enable a focus on product engineering. She also noted that during the January-February period, the company sold through its Valentine's sleepwear assortment too quickly and pulled back too far on marketing spend post-holiday, which impacted traffic.

Ask Fintool Equity Research AI

Answer

CFO and Interim CEO, Timothy Johnson, attributed PINK's improvement to a strong customer response to newness, particularly in tees, tanks, and dresses during the PINK Friday event. He also highlighted the success of the Wink bra and the reintroduction of backpacks for the Back to School season. Johnson noted that one of the most encouraging signs was the return of the younger 18-to-22-year-old customer demographic to the brand's stores.

Ask Fintool Equity Research AI

Answer

President & CEO Mary Ellen Coyne described the opportunity to build on the brand's history as 'irresistible,' highlighting potential in multichannel expansion, product elevation, and new category introductions. EVP, CFO & COO Mark Webb explained that the down mid-single-digit sales trend in May was a continuation of the slowdown seen in April, which coincided with increased global trade uncertainty and is a primary reason for suspending guidance.

Ask Fintool Equity Research AI

Answer

Executive Claire Spofford highlighted strength in bottoms, jackets, and sleepwear, while noting continued challenges in dresses and sweaters. Executive Mark Webb explained that reported inventory levels will remain elevated through Q1 due to early shipping strategies to mitigate Red Sea delays, but should normalize in Q2 as the company anniversaries those actions.

Ask Fintool Equity Research AI

Answer

Executive Claire Spofford stated that while the overall customer file contracted slightly with traffic, the 'best customer' cohort outperformed and remained strong. Executive Mark Webb reiterated the long-term goal of 50 net new stores over five years and indicated that the net new store count would continue to ramp up from the four expected this year.

Ask Fintool Equity Research AI

Answer

Executive Claire Spofford described a strong start to Q2 in May and June, followed by a significant drop-off in traffic in July that continued into August. Executive Mark Webb explained that the 15% year-over-year inventory increase is optically high due to a strategic early shipment of fall goods to mitigate Red Sea delays, with actual on-hand inventory being flat. He confirmed that the July slowdown necessitated markdowns, and this disciplined inventory management approach is factored into Q3 guidance.

Ask Fintool Equity Research AI

Answer

CEO Mimi Vaughn addressed the M&A question by differentiating Journeys' style-led focus from the performance-athletic focus of recent deals. Regarding margins, Vaughn and CFO Cassandra Harris attributed the Q1 pressure to a planned mix shift toward athletic footwear and liquidation at Genesco Brands Group, confirming they don't plan to absorb tariff costs in margins. Vaughn also explained that Q1 inventory growth was driven by rebuilding units to support sales momentum, not by price inflation.

Ask Fintool Equity Research AI

Answer

CEO Todd Vasos stated that the competitive pricing environment is rational and at pre-pandemic norms, and DG is well-positioned to respond if necessary due to its scale and CPG partnerships. He clarified that expanding into 'new communities' refers to building stores further from existing locations to reduce cannibalization and tap into 'white space' within their current geographic footprint, rather than entering new states.

Ask Fintool Equity Research AI

Answer

CEO Todd Vasos described the current pricing environment as stable and in line with pre-pandemic norms, stating DG is well-positioned to compete on its everyday low prices and has strong CPG partnerships to leverage if needed. Regarding real estate, he clarified that the focus on "new communities" is about increasing the distance between new and existing stores to reduce cannibalization, rather than entering new states. This marks a strategic shift from the intentional cannibalization of recent years to finding more "white space" in their current footprint.

Ask Fintool Equity Research AI

Answer

CEO Todd Vasos clarified that the sales deceleration was actually on the consumable side, which highlighted consumer price sensitivity and prompted the increased promotional activity. He noted the inventory reduction was focused on slower-turning non-consumables, improving the shopping experience. CFO Kelly Dilts called the ability to reduce inventory while improving in-stocks a 'real bright spot,' crediting supply chain efficiencies and optimization efforts.

Ask Fintool Equity Research AI

Answer

CFO Robert Ball confirmed the full-year sales guide of 3% to 6% growth reflects rolling through the Q1 beat while the margin reduction is primarily due to the $50 million net impact of tariffs. COO Scott Lipesky added that confidence stems from being on offense with a strong balance sheet, investing in marketing, technology, and 100 new store experiences. CEO Fran Horowitz reiterated that Abercrombie is expected to see an inflection in the back half, driven by reacting to new category trends.

Ask Fintool Equity Research AI

Answer

CFO Robert Ball explained that the 22% inventory increase consists of a 6% unit increase to support Q1 sales, with the remainder split between higher freight costs, a more normal seasonal carryover, and mix into higher-cost categories. He noted freight costs will be a headwind in H1 2025 before becoming a tailwind in H2. Regarding capital allocation, Ball reaffirmed the strategy of investing in the business while returning cash to shareholders, highlighting the new $1.3 billion repurchase authorization and a target of ~$100 million in buybacks per quarter.

Ask Fintool Equity Research AI

Answer

CEO Fran Horowitz-Bonadies credited the Abercrombie brand's 15% growth to strong, balanced performance across genders and categories like sweaters, dresses, and jeans, noting the YPB line continues to grow nicely. COO Scott Lipesky affirmed that the entire P&L structure is sustainable, citing a strong platform for global growth, an agile inventory model supporting gross margins, and a clean store base that enables strong flow-through to the bottom line.

Ask Fintool Equity Research AI

Answer

CEO Fran Horowitz-Bonadies attributed Abercrombie's success to strong alignment between product and marketing, with balanced growth across genders and categories like sweaters, dresses, and jeans, and noted that the YPB line continues to grow nicely. COO Scott Lipesky affirmed that the entire P&L structure is sustainable, supported by a global growth platform, an agile inventory model, and strong operational flow-through.

Ask Fintool Equity Research AI

Answer

CEO Fran Horowitz-Bonadies explained that the brand's growth is driven by staying close to the customer, citing the success of The Wedding Shop, the expanded NFL collection, and the YPB activewear line as examples of a test-and-learn approach. CFO & COO Scott Lipesky added that digital channel growth is strong, supported by continuous investments in the user experience on apps and mobile web.

Ask Fintool Equity Research AI

Answer

SVP & CFO Robert Ball confirmed the 3-6% full-year sales growth guide, noting the Q1 beat was rolled into the high end. EVP & COO Scott Lipesky expressed confidence stemming from being 'on offense' with a strong balance sheet and investments in new stores, marketing, and technology. CEO Fran Horowitz reiterated that Abercrombie is expected to see an inflection in the back half of the year.

Ask Fintool Equity Research AI

Answer

Executive James Conroy detailed a sequential improvement in business from a slow February to a strong April. He highlighted that the healthy April comp was driven primarily by an increase in customer transactions. The average basket was also larger due to more units per transaction (UPT), while AUR itself saw only a small increase.

Ask Fintool Equity Research AI

Answer

Executive James Conroy detailed that the business improved significantly from February through April. He noted that the strong April comp was healthy, driven primarily by transaction growth, with a small increase in AUR and a larger basket from more units per transaction. The exit rate from the quarter was described as strong.

Ask Fintool Equity Research AI

Answer

CEO Barbara Rentler stated she could not quantify the number of new vendors, as the vendor base is dynamic. Regarding shoes, she noted the category underperformed against a very tough comparison. Athletic and active footwear performed well, while brown shoes were more mixed. She also mentioned a strategic timing shift for the fall boot transition based on learnings from last year.

Ask Fintool Equity Research AI

Answer

CEO Lisa Harper acknowledged that guidance embeds some pressure from potential promotions due to macro uncertainty. Chief Strategy and Planning Officer Ashlee Wheeler added that while Q1 saw more promotion, they expect full-year product margins to be relatively flat. Wheeler also stated the new sub-brands represent about 10% of receipt investment, self-funded by reducing depth in the core line, allowing overall inventory to remain flat for the year.

Ask Fintool Equity Research AI

Answer

CEO Lisa Harper acknowledged that while the company takes responsibility for product (micro), there were anomalous and dramatic negative traffic shifts in October that recovered post-election, suggesting a substantial macro impact. Chief Strategy and Planning Officer Ashlee Wheeler stated that despite newness, inventory is expected to end the year flat to down low-single digits, with the company able to drive 2025 growth on relatively flat inventory by replacing less productive items.

Ask Fintool Equity Research AI

Answer

CEO Lisa Harper explained that Torrid has not used a 'chase' strategy meaningfully since 2015 and that the current 10% of Q4 receipts could potentially grow to 15%. She emphasized this strategy improves inventory productivity and margins. Chief Strategy and Planning Officer Ashlee Wheeler noted that Q2 sales were strong except for a soft period around the July 4th holiday and confirmed that Q3 was 'on track' one month into the quarter.

Ask Fintool Equity Research AI

Answer

Executive Gary Millerchip responded that there was nothing particular to call out regarding a slowdown. He explained that nuances in holiday timing can affect individual markets quarter-to-quarter, citing an example in Taiwan. Overall, he stated that the company remains pleased with the momentum in its international businesses, which continue to grow and gain market share relative to internal expectations and the broader market.

Ask Fintool Equity Research AI

Answer

CEO Darren Rebelez attributed the 13% growth in energy drinks to assortment optimization with new brands and strong performance from stalwarts like Red Bull and Monster, aided by effective promotions and superior in-stock positions from self-distribution. CFO Steve Bramlage detailed the new store ramp, expecting positive returns in year one, double-digit after-tax returns by year two, and maturity in 3-4 years. He contrasted this with Fikes, where returns will be more of a step-change upon remodeling due to the introduction of Casey's pizza program to an existing business.

Ask Fintool Equity Research AI

Answer

CEO Darren Rebelez attributed the active M&A environment to family businesses monetizing assets and the challenging operating conditions where scale is increasingly vital. CFO Stephen Bramlage addressed labor, stating that wage inflation has normalized to 3-4% and that turnover has improved due to store simplification initiatives and a more favorable labor market.

Ask Fintool Equity Research AI

Answer

CFO Christopher Work outlined that the domestic strategy hinges on growing sales back to peak levels, expanding product margins, and tightly managing costs like shipping and payroll. For international, the focus is on driving sales in underpenetrated markets and improving product margins. Executive Richard Brooks addressed hardgoods, acknowledging its continued pressure but highlighting a 'green shoot' in Australia, where the category has seen positive comps for five consecutive months, suggesting a potential bottoming of the cycle for the broader business.

Ask Fintool Equity Research AI

Answer

Executive Richard Brooks explained that the skate hardgoods category is near an all-time low in sales penetration after peaking during the pandemic in 2020. While the U.S. and Europe remain challenged, he noted signs of improvement and is hopeful that a recovery will create a positive halo effect for the entire business. Regarding promotions, Brooks stated that despite a promotional environment, Zumiez will continue to focus on delivering value through product bundling, particularly with its private label brands, rather than engaging in widespread price cuts, in order to maintain its position as a full-price retailer.

Ask Fintool Equity Research AI

Answer

Mike Mathias, CFO, explained that the primary focus for SG&A efficiency remains on the largest cost centers, which account for about 85% of the total. These include compensation (both store and corporate), advertising, and purchased services and maintenance. These areas drove the leverage seen in Q2 and will continue to be the key focus for achieving future targets.

Ask Fintool Equity Research AI

Answer

CEO Carlos Alberini detailed the varied geographic performance, noting that the Americas retail business remains challenged by weak customer traffic, which has been factored into the revised outlook. In contrast, Europe continues to see positive comparable sales growth, offsetting traffic softness with higher AUR and conversion. He mentioned that Asia has also been challenging, particularly in China and Korea. To address the Americas, the company is focusing on product assortment, disciplined promotions, and increased marketing investments to boost customer engagement.

Ask Fintool Equity Research AI