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CFO Justin Picicci expressed encouragement with the channel's stabilization, noting that sell-in is aligned with positive sell-out. However, he stated the fiscal '26 outlook remains cautious due to U.S. macro pressures and potential consumer reaction to broader industry price increases in the second half. The strategy continues to be pruning lower-tier distribution while leaning into top-tier accounts and digital partners.

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Executive Justin Picicci confirmed that marketing reinvestment will continue, stating that 7% of sales is not a ceiling and it remains a top priority for capital. Regarding wholesale, he said Ralph Lauren is well-positioned with lean inventory and an agile supply chain. He noted that unlike others, their own promotions decreased in Q3 due to strong full-price sell-through in the channel.

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CFO Melanie Marein-Efron reiterated that full-year SG&A expenses are expected to grow in line with sales, though the quarterly cadence may be uneven due to marketing timing. Executive Shea Jensen explained that while they hope for a sequential build in the UO turnaround, the path may not be perfectly linear. The retail store channel has inflected sooner due to its higher full-price mix, while the digital channel will take longer to anniversary past promotional activity, with improvement expected in the second half of the year.

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CEO Richard Hayne attributed any January softness to weather-delayed demand, expressing confidence in spring assortments based on strong performance in warmer markets. Executive David Hayne revealed that Nuuly has an internal goal to reach $500 million in sales for the year, driven by continued subscriber growth momentum seen in February, but did not provide a specific subscriber number for the guidance.

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CEO Richard Hayne explained that Nuuly is not yet cash flow positive due to inventory investments for future subscriber growth but noted that reaching cash flow positivity is in the line of sight for next year. Co-President and COO Francis Conforti added that while the UO team has made progress, there is still significant opportunity to improve MMU and eventually drive top-line leverage.

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CEO Richard Hayne first clarified that inventory was bought for a trend that later changed, not simply 'overbought'. Francis Conforti, Co-President and COO, confirmed the plan implies a Q4 gross margin improvement of over 100 basis points. He stated this is not due to a one-time item but is driven by a significant opportunity to improve the markdown rate at the Urban Outfitters brand compared to the prior year's Q4, which had abnormally high promotions.

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CFO John Klinger stated that their freight forecast is based on current knowledge. He highlighted that ocean freight is only 20-25% of their total freight, so the impact is less significant. He noted they have not seen costs go up yet and believe their excellent relationships with shipping providers will help, with the current forecast accurately reflecting what they know today.

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CEO Ernie Herrman confirmed the strong international performance was partly driven by favorable cooler weather in Europe, which was a temporary benefit. He agreed with the premise that the 7% comp rate should not be expected to continue as that weather-related tailwind normalizes, noting the macro environment in Europe has not significantly changed.

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President and CEO Bracken Darrell indicated that the 'heavy lifting' on Vans store closures is largely complete, though portfolio optimization is ongoing. EVP and CFO Paul Vogel added the store count is down 8% YoY. Regarding the dividend, Bracken Darrell stated there is nothing new to announce and he doesn't anticipate a change, but affirmed it remains 'on the table' if needed to achieve the primary goal of debt reduction.

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CFO Paul Vogel clarified that non-core asset sales performed approximately $15 million better than the expected $60 million. CEO Bracken Darrell stated the portfolio review is 'done for now' but emphasized that the company will continuously re-evaluate its assets for strategic fit and performance.

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CEO Stephen Bratspies confirmed the company will mitigate the full impact of tariffs, making the net effect zero, and stated they are planning for an even higher rate to build in a cushion. He also reaffirmed that there is no change to the company's outlook for gross margins to be in the low 40s, expressing confidence in continued strong performance and the ability to find offsets.

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CFO Markland Lewis acknowledged some conservatism in the gross margin outlook, while CEO Stephen Bratspies noted the tough comparison to Q4 2024's high 44.1% margin. Lewis then detailed the cash flow bridge from 2024, citing profit growth, lower cash interest, and fewer non-recurring costs as drivers, while clarifying that working capital benefits will be smaller than in 2024 and no incremental receivables financing benefits are assumed.

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CEO Joanne Crevoiserat attributed the standout results to four key structural advantages: strong emotional connections with consumers, a high-margin direct-to-consumer model that provides agility, a diversified supply chain, and a compelling value proposition. She expressed confidence in their ability to adapt and win in any environment, noting they are on track to meet the $5 EPS target set at their 2022 Investor Day, which demonstrates the resilience of their strategy.

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Todd Kahn, CEO and Brand President of Coach, clarified that no single handbag platform, including Tabby or New York, exceeds 10% of sales, indicating significant growth runway. He sees sustainable gross margin growth ahead. CFO and COO Scott Roe added that margin expansion is driven by a sophisticated approach to AUR and AUC, using AI for price elasticity and investing in brand love. He guided to approximately 200 basis points of gross margin expansion for the full fiscal year.

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CEO Joanne Crevoiserat and Coach CEO Todd Kahn addressed China, noting a 5% decline for Tapestry but outperformance versus the industry, with Coach China down only 3%. They saw sequential improvement and remain confident in the long-term opportunity. CFO & COO Scott Roe discussed buybacks, stating that while no specific number was given, the company has significant capacity with near-zero net debt and would consider all vehicles, including ASRs, should the deal not proceed.

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CEO Scott Baxter described the U.S. consumer as 'incredibly resilient,' noting a strong recovery in March and April. CFO Joseph Alkire explained that the second-half outlook is based on conservative POS assumptions, with growth driven by the 53rd week and new programs. For 2026, Alkire provided a framework including organic growth, tariff mitigation, Project Jeanius savings, and rapid deleveraging from Helly Hansen's contribution.

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CEO Scott Baxter and COO Thomas Waldron explained that Lee's strong DTC results are a leading indicator of new products resonating, a process that takes longer to filter into the wholesale channel. CFO Joe Alkire confirmed the Project Jeanius savings math, detailing that $30 million in gross savings in 2025 would yield a $10-$15 million net benefit, with gross margin impacts weighted to the second half of the year.

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CEO Scott Baxter cited strong consumer demand, evidenced by robust POS data, D2C growth, and ten consecutive quarters of market share gains for Wrangler. He also highlighted a strong product pipeline in outdoor, tops, and the new Lee X platform. CFO Joseph Alkire added that the financial profile of H2 2024 is expected to continue, supported by Project Jeanius and a strong balance sheet, giving them confidence in the 2025 trajectory.

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CFO Harmit Singh explained that Q2 is seasonally the lowest volume quarter, leading to SG&A deleverage, but the full-year rate is still expected to be around 50%. He stated the international business remains strong with no observed impact from anti-American sentiment, citing the brand's long-standing local presence. CEO Michelle Gass reiterated the full-year strategy to drive top-line growth and margin expansion, excluding tariff impacts.

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CFO Harmit Singh stated that Dockers is a roughly $330 million revenue business with gross margins in the high 40s and is approximately breakeven on an allocated EBIT basis, with a sale process expected to conclude in 2025. He clarified that the Denizen exit has a remaining ~$30 million impact in H1 2025, while the footwear exit represents a ~$60-65 million headwind for the full year.

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CEO Michelle Gass clarified that the U.S. wholesale performance for the Levi's brand was largely in line with expectations, with the overall channel weakness driven by the underperforming Dockers brand. She noted that U.S. wholesale for Levi's was down 2%, a sequential improvement, and highlighted the channel's improving profitability, with a 500 basis point gross margin expansion. She expects this sequential improvement to continue into Q4.

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CEO Calvin McDonald stated there was no material change from Q4's performance, where men's grew faster than women's, and noted the newness is being well-received, particularly in women's where it was lacking last year. CFO Meghan Frank added that the full-year guidance of 7-8% growth versus Q1's 6-7% does imply a modest uptick, but the plan remains thoughtful given current uncertainties.

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CEO Calvin McDonald attributed his confidence to several factors: highly engaged and loyal guests who respond well to newness, strong overall guest growth highlighted by the 24 million members in the North America loyalty program, and a clear plan to return the product assortment's newness percentage to historical levels by Q1 2025. He emphasized that the issue is within their control, related to product decisions that are actively being addressed.

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CFO Paula Oyibo reiterated that Q2 and Q3 present the greatest opportunity for comparable sales growth. While declining to provide specific merchandise margin guidance, she noted that overall gross margin is expected to deleverage due to fixed costs on a flat to 1% comp.

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CEO Michael O'Sullivan stated that both customer segments were strong drivers of the 6% Q4 comp. He noted that stores in lower-income areas performed best, indicating success with the core 'need-a-deal' customer, while healthy growth in higher-income areas and a rising average unit retail pointed to a significant contribution from 'want-a-deal' trade-down shoppers. Regarding policy changes, O'Sullivan acknowledged the uncertainty but emphasized that disruption often benefits off-price retailers. He stressed the company's strategy of planning conservatively and remaining nimble, noting that while some policies could be negative, others could be positive, and the overall economic context is crucial.

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CEO Michael O'Sullivan stated that stores in lower-income areas are now outperforming the chain, a reversal from 2022, suggesting this customer is seeking value as their real incomes stabilize. CFO Kristin Wolfe detailed that Q3's 80 bps margin expansion was driven by merchandise margin, freight, and supply chain leverage. She explained the guided Q4 margin decline is due to transitory gross margin headwinds, lapping supply chain savings, and a negative impact from the 53rd-week calendar shift.

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CFO Kristin Wolfe attributed the 60 basis points of supply chain leverage to internal process improvements that reduced labor costs, noting savings are being realized faster than planned. She also mentioned longer-term opportunities from new, more automated distribution centers. Regarding freight, she confirmed a $0.10 EPS headwind in the back half is due to higher spot market ocean rates, while domestic freight continues to provide modest leverage.

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Group President and COO Michael Hartshorn clarified that fuel should be a tailwind. He maintained that it is 'extremely difficult' to parse out the specific impacts of weather, tax refunds, and other external factors on the recent trend, but did note that trends improved as weather improved.

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CFO Adam Orvos projected a domestic freight benefit of around 40 basis points in Q4, similar to Q3. He noted that ocean freight impact is currently negligible but the company is monitoring potential disruptions. He deferred a detailed 2025 outlook until after the next bidding process is complete.

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CEO Barbara Rentler characterized the branded strategy as an ongoing learning process. She stated that the company is still determining the right mix and penetration by business and will continue to build on the successes and learnings based on customer response. This implies an evolving, multi-phase strategy rather than a one-time change.

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CEO Gina Boswell highlighted the company's innovation pipeline for both core and adjacent categories as a key excitement for 2025. She noted that the Disney collaboration is driving significant customer excitement and traffic, contributing to a strong start for Q1 and underscoring the power of combining exceptional product with effective storytelling.

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CFO Eva Boratto projected that reported international sales would be down mid-single digits in Q4, noting that regions unaffected by the war in the Middle East continue to grow double-digits. CEO Gina Boswell denied any strategic shift on gross margin, stating Q3 performance was in line with expectations on top of strong prior-year gains and highlighted the company's agile supply chain as a key lever for performance.

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CFO Ajay Gopal explained that while no explicit cash flow guidance was provided for 2025, the company expects the strong flow-through from adjusted EBITDA to continue. On marketing, he noted the company is seeing good leverage and will balance spend across its growth playbook of sales, stores, and marketing. He also clarified that the take rate is expected to be relatively stable going forward, acknowledging that as AOV rises, the effective take rate may decrease due to the commission structure, but the company is now past the major structural changes.

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CFO Tom Edwards projected a gradual improvement in sales throughout fiscal 2026 as new strategies gain traction, with wholesale expected to start the year negative before improving. CEO John Idol added that Q4 of fiscal 2025 will mark the most significant quarterly wholesale decline. Regarding asset sales, Idol acknowledged the speculation and confirmed that while the company would always listen to interested parties to maximize shareholder value, the current focus is firmly on executing the growth strategy for all three brands.

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CFO Matt Friend confirmed 'yes' to both questions. He clarified that the Q3 SG&A guidance for a slight decrease is relative to the full prior-year amount which included restructuring charges. He also affirmed that the net negative impact across revenue, gross margin, and demand creation is expected to be more significant in Q4 than in Q3.

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CEO Hillary Super pointed to the successful VSX launch for Victoria's Secret and a significant opportunity to broaden PINK's apparel assortment beyond collegiate to a full lifestyle brand. CFO Tim Johnson clarified that the ~$200 million AdoreMe payment due in Q4 is for fixed components related to employment and technology synergies. A separate performance-based payment against sales and EBITDA targets would be determined and paid in Q1 2025.

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CFO and Interim CEO, Timothy Johnson, stated that the international business remains strong, particularly in Travel Retail and Franchise, though China is softer. He anticipates Q3 international results may be better than Q4 due to calendar shifts in China. Regarding promotions, Johnson explained that the guidance assumes a similar competitive environment, with the company prepared to increase promotions if necessary. He noted that Q4 gross margin rates might be slightly down year-over-year, primarily due to lapping an extra week in the prior year, which affects B&O leverage, rather than a significant decline in merchandise margin.

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Executive Joan Hilson clarified that while there was a slight reduction in expectations for core banners, the primary driver of the revised guidance was the underperformance of the digital banners. She attributed the expected Q4 gross margin expansion to a higher mix of new fashion merchandise, which carries a significantly higher margin premium, and confirmed the company is competitively positioned on pricing for the holiday season.

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CFO Joan Hilson explained that gross margin will continue to benefit from the push into higher-margin fashion newness and growing Services attachment rates. She stated that the guidance assumes the competitive promotional environment will persist, and the company is prepared with a balanced strategy. Regarding the holiday quarter, Hilson noted the annual guidance implies a strong finish, supported by robust product assortments and the ongoing engagement recovery.

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CEO Stefan Larsson stated the transition is a key long-term strategy to control the women's business and is proceeding on plan. CFO Zac Coughlin specified that about 20% of the license portfolio will be brought in-house in 2025, with more financial details to come next quarter. Crucially, Coughlin clarified that the company's focus for 2025 is on achieving a return to organic growth, independent of the accounting impacts from the license transition.

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