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David Kahan, President of Americas, explained that growth in existing doors comes from deeper penetration with more styles and inventory. He emphasized that expansion into new points of distribution is very deliberate and that the brand's core strategy of maintaining relative scarcity continues to fuel demand and performance, preventing a ceiling.

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President of Americas David Kahan identified the membership program as the biggest growth driver for DTC. The member base has grown to over 10 million, up 25% year-over-year, with members spending 20% more on average. He explained that investments are focused on personalized, 'lasered' marketing to this fan base to achieve a higher return on investment.

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President Americas David Kahan explained that there is immediate adoption of the brand in these new, adjacent channels. He emphasized that the core driver is the footbed, which translates across multiple use occasions (recovery, work, outdoor). As the brand expands into more use occasions, it increases its 'share of closet' with consumers, who on average already own multiple pairs. The strategy is to continue expanding the footbed's presence across these new environments.

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Co-Founder & Co-CEO Michael Mente attributed FORWARD's success to strong merchandising, new brand additions as competitors weaken, and progress in high-touch sales. For beauty, he described it as being in the early stages, with growth driven by assortment, and noted that improving the site experience is the next key step before a larger marketing push.

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CFO Jesse Timmermans reported that the dresses category performed well, growing 10% in Q4, which was healthy although slightly below the company's overall growth rate. Regarding the cash balance, he stated that the company continues to be opportunistic, with a share buyback plan in place and an ongoing evaluation of strategic opportunities.

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CEO John Hazen expressed confidence that Boot Barn is well-positioned to gain share due to its exclusive brands and strong inventory, expecting smaller competitors to become more risk-averse. CFO Jim Watkins explained that there will be a temporary gross margin benefit in Q2, as retail price increases are implemented before the higher-cost inventory fully flows through cost of goods sold.

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CEO John Hazen confirmed that new store openings for the year will be split across both legacy and new markets. He elaborated on the e-commerce halo effect, citing New York as a prime example where online sales have steadily climbed the state rankings as the store count grew to 12. While not providing specific universal metrics, he noted that in smaller new markets like Vermont, the online business can increase fivefold almost immediately after a store opens.

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CFO Jim Watkins clarified that same-store inventory was intentionally up 10.5% and the company feels well-positioned for the holidays. Former CEO Jim Conroy stated that sourcing from China for exclusive brands has been reduced from over 50% to a planned 30%, significantly de-risking tariff exposure.

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President, CEO & Chairman Jason Brooks described the consumer as 'a little confusing' but noted that sell-through data from retail partners in the work, farm, and outdoor categories remains positive, leading to cautious optimism. CFO & COO Thomas Robertson added that e-commerce data showed no dramatic negative shift following recent price increases. Regarding ExtraTough, Brooks highlighted its expansion into women's and kids' footwear and its growing popularity inland, while Robertson emphasized the growth of the ADB Sport line and its entry into new retail channels.

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EVP, CFO & COO Mark Webb clarified that the reduction in the 2025 new store forecast is due to deal timing and availability, not a change in the long-term strategy of opening 50 net new stores by 2029. He noted recent openings are performing in line with expectations. President & CEO Mary Ellen Coyne stated that plans for new categories are in development and will be shared on the September earnings call.

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In Q1, U.S. store traffic decline moderated but was still lower, conversion was slightly down, and average dollars per transaction were up. No material changes in trends were noted progressing from April into May.

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CFO Meghan Frank stated that about 20 basis points of the guided 40-50 basis point SG&A deleverage is from FX headwinds, with the remainder funding strategic investments in international growth, stores, marketing, and technology. She explained that future SG&A adjustments would depend on business momentum and the broader environment, noting the company has contingency plans for both upside and downside sales scenarios.

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CEO Calvin McDonald explained that the women's business is performing well globally, and in the U.S., guests are responding strongly to newness in categories like leggings, particularly through new colors, prints, and patterns. He noted that Lululemon gained market share in women's activewear globally and in the U.S. The key opportunity remains increasing the level of newness in the assortment back to historical levels, which is the team's focus for Q4 and 2025.

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The 'Breathe Through' fabric was well-received and teams are working to reintroduce it in new styles, but it will not return in 2024. In the back half, newness is coming to the Wunder Under and Align franchises, along with a new performance train legging, to help address the newness gap.

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CEO Calvin McDonald confirmed the 'Breathe Through' fabric was a success and the team is working to bring it back in a different style, though it will not return in 2024. For the back half, he highlighted upcoming innovation in the training category, including a new performance legging and new fabrics for the Wunder Under franchise. He emphasized that a key focus is adding more seasonal newness (color, print) to core lines like Align.

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The company is re-evaluating its marketing funnel to focus more on upper-funnel brand awareness, with plans to reinvest cost savings into marketing as returns improve. The reduction in promotional depth and frequency has led to sequential gross margin improvement in March and April. The company is seeing positive trends in conversion and full-price sales, especially in the retail channel. Price increases are being implemented selectively on unique products to mitigate tariff impacts while being mindful of the overall value equation for the consumer.

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President & CEO Stephanie Pugliese stated the company is focusing on upper-funnel marketing to drive brand awareness and will reinvest cost savings into marketing as ROI improves. She explained that promotional pullbacks are being carefully balanced with customer retention and that targeted price increases on unique products are mitigating tariff impacts. SVP & CFO Heena Agrawal added that shallower promotions are already yielding positive trends in conversion, full-price sales, and store performance, with sequential improvements seen from March through May.

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Co-CEO Neil Blumenthal explained that as store density in a market reaches a critical mass, the channels become synergistic rather than cannibalistic. The physical stores act as powerful billboards, increasing overall brand awareness that benefits both channels. Co-CEO David Gilboa added that once a market is dense, its e-commerce growth often outpaces e-commerce-only markets. He noted that while new customers may start in-store, the e-commerce channel is highly effective for repeat purchases, contributing to strong revenue retention.

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Co-Founder and Co-CEO David Gilboa affirmed the goal of returning e-commerce to growth, noting underlying momentum is stronger than the 1% reported revenue figure suggests. He confirmed that while customers tend to repeat in their initial channel, some cross-channel purchasing occurs. Regarding the Versant Health partnership, he explained it will be a multiyear tailwind as it takes time for members to become aware and use their benefits, with revenue per member expected to increase steadily over time.

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EVP and CCO Frank Bracken credited the Champs turnaround to its repositioning toward the 'active athlete' with focused assortments under the 'Sport For Life' platform. For WSS, he noted a strong August drove positive comps but acknowledged continued pressure on its lower-income consumer base (nearly 60% sub-$50k income), which has led to a slowdown in new store investments for that banner.

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CEO Mary Dillon acknowledged that consumers face economic pressures but emphasized that sneakers remain a prioritized discretionary purchase, and the Lace Up plan is designed to capture that spend. CCO Frank Bracken explained that the new store concept and the broader Store Refresh program share the same goals: improving the customer journey, enhancing brand storytelling, and elevating employee service. Learnings from the new concept, which is showing strong results, are directly informing the refresh program that will scale through 2024 and 2025.

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The increased markdowns in Q3 were driven by a combination of needing to reset the separates and shoe business and generating liquidity. This promotional activity is expected to continue through Q4 and into early 2025. Regarding retail, the wholesale business is performing well with double-digit comps, and the Melrose store is a successful brand activation center, but there are no near-term plans for additional stores.

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An executive, likely CFO Martin Hoffmann, affirmed the 60%+ gross margin outlook remains valid, noting that while the current environment is stable, they always account for potential supply chain disruptions. He identified several sustainable drivers for high margins: strategic price increases like the upcoming Cloud 6, ongoing economies of scale in manufacturing, and the continued over-proportional growth of the high-margin D2C channel.

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CEO Bracken Darrell described the promotional environment as better than last year, attributing the improvement to healthier inventory levels for both VF and its wholesale partners. He also noted a positive trend of increased full-price selling, though promotions remain part of the strategy.

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