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    John Kernan

    Research Analyst at Cowen Inc.

    John Kernan is Managing Director and Consumer - Retail & Consumer Brands Research Analyst at TD Cowen, specializing in the analysis of major public retail and consumer companies across both softlines and brands. He covers companies including Deckers Outdoor, Amer Sports, Ralph Lauren, G-III Apparel Group, Dick's Sporting Goods, and The Finish Line, and has an average price target met ratio near 68% with documented outperformance in recommendations such as Amer Sports with a one-day realization of a 9.7% gain. Kernan began his career at TD Cowen in 2008 and has since built more than a decade of sector expertise, earning multiple industry awards for stock picking and earnings estimates. He holds both the CFA and CAIA charters and possesses an MBA from the University of North Carolina Kenan-Flagler Business School alongside a BA from the University of Pennsylvania.

    John Kernan's questions to Academy Sports & Outdoors (ASO) leadership

    John Kernan's questions to Academy Sports & Outdoors (ASO) leadership • Q2 2025

    Question

    John Kernan asked about new store productivity and the assumptions for the accelerated store opening cadence. He also questioned how the company is planning for significant AUR increases within its guidance, given the pressure on lower-income consumers.

    Answer

    CEO Steve Lawrence stated that new store productivity is meeting expectations, with recent vintages accelerating to mid-single-digit comps. He explained that while the lower-income consumer is expected to remain pressured, the company's comp guidance relies on the continued trade-in from middle and higher-income consumers drawn to Academy's value proposition.

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    John Kernan's questions to Academy Sports & Outdoors (ASO) leadership • Q2 2025

    Question

    John Kernan asked about the outlook for new store productivity as openings accelerate and how the ramp in unit growth will affect the SG&A rate and overall expense modeling.

    Answer

    CFO Carl Ford reiterated the existing new store productivity framework ($12M-$16M year 1 sales, 20% ROIC hurdle). Regarding SG&A, he noted that while the long-range plan includes deleverage for growth, the team is managing costs tightly, with Q2 expense increases tied directly to growth initiatives. He stated that as the base store comp trajectory improves, the company expects to see leverage, and the current guidance is within the long-range plan's framework.

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    John Kernan's questions to DICK'S SPORTING GOODS (DKS) leadership

    John Kernan's questions to DICK'S SPORTING GOODS (DKS) leadership • Q2 2025

    Question

    John Kernan from TD Cowen asked for commentary on the current athletic footwear cycle and the consumer's ability to absorb rising prices. He also requested details on the assumed impact of tariffs on cost of goods sold and gross margin for the second half of the year.

    Answer

    President & CEO Lauren Hobart described the footwear business as 'very, very strong,' stating that price increases have been selective and surgical, with the 5% comp demonstrating strong consumer demand. CFO Navdeep Gupta added that a small tariff impact is contemplated in the back-half outlook and that the company is actively working with partners on plans for 2026.

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    John Kernan's questions to DICK'S SPORTING GOODS (DKS) leadership • Q1 2025

    Question

    John Kernan asked about the biggest operational and financial opportunities within the Foot Locker banner and inquired about the expected overall square footage growth for the year.

    Answer

    President and CEO Lauren Hobart identified significant opportunities in executing Foot Locker's existing strategies and improving gross margin, noting that Ed Stack will lead a dedicated team to unlock this value. Executive VP & CFO Navdeep Gupta projected total square footage growth to be in the low single-digit range, around 2%, driven by new House of Sport and Fieldhouse locations.

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    John Kernan's questions to DICK'S SPORTING GOODS (DKS) leadership • Q3 2024

    Question

    John Kernan asked how the sales and margin for House of Sport and Field House stores are expected to trend in their second and third years of operation, and also inquired about the outlook for the softlines business, particularly footwear.

    Answer

    CFO Navdeep Gupta stated that stores in their second year are comping positively as community engagement deepens, expressing excitement about their maturation trajectory. He also noted that core categories like athletic apparel and footwear continue to drive growth, with footwear being the 'engine that drives the chain.' He mentioned plans to continue expanding brands like On and HOKA deeper into the store base, with 90% of stores now having premium footwear decks.

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    John Kernan's questions to DICK'S SPORTING GOODS (DKS) leadership • Q2 2024

    Question

    John Kernan asked about the company's forward-looking supply chain strategy, including the new distribution center, and the performance of private brands like CALIA, VRST, and DSG.

    Answer

    CFO Navdeep Gupta explained the new DC is necessary to support significant sales growth and increased product velocity, with no material changes to cost expectations for H2. President and CEO Lauren Hobart added that stores are a critical part of their eCommerce fulfillment strategy. She also confirmed that vertical brands like DSG, VRST, and CALIA are performing exceptionally well, filling key gaps in the portfolio and earning increased floor space.

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    John Kernan's questions to Burlington Stores (BURL) leadership

    John Kernan's questions to Burlington Stores (BURL) leadership • Q2 2025

    Question

    John Kernan of TD Cowen requested more detail on the company's inventory position, specifically the contrast between comp store inventory being down 8% while reserve inventory grew to 50% of the total. He also asked for a summary of the recent changes to the company's debt structure and the outlook for interest expense.

    Answer

    CFO Kristin Wolff explained that lower comp store inventory was a deliberate strategy to drive faster turns and reduce markdowns, while the higher reserve inventory is a result of opportunistically buying pre-tariff merchandise. SVP David Glick detailed the capital structure changes, including raising $500M in term loan debt to fund a DC purchase and upsizing the ABL facility to $1B. He updated the quarterly interest expense forecast to $50 million.

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    John Kernan's questions to Burlington Stores (BURL) leadership • Q1 2025

    Question

    John Kernan of TD Cowen asked for the potential risks and upside drivers for the full-year comp guidance and sought more detail on the contingency related to ocean freight costs.

    Answer

    CEO Michael O'Sullivan identified a macro slowdown and inflation as key risks, while potential upsides include a widening value gap, favorable tax legislation for consumers, and company-specific initiatives. EVP & CFO Kristin Wolfe clarified that while ocean rates are contracted, the guidance assumes the company will not face significant exposure to higher spot market rates due to potential shipping volatility.

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    John Kernan's questions to Burlington Stores (BURL) leadership • Q4 2024

    Question

    John Kernan requested details on category and regional performance during the fourth quarter, and asked how traffic and average ticket contributed to the 6% comparable sales growth. He also sought clarification on the net impact of weather on Q4 results.

    Answer

    CEO Michael O'Sullivan stated that the Q4 comp was driven by both an increase in transactions and a higher average transaction value, with higher traffic and AUR being the strongest metrics. He highlighted relative strength in accessories, beauty, and home, though all major categories comped well. Regionally, the Southeast and Southwest were above the chain average, but all regions saw at least mid-single-digit growth. EVP & CFO Kristin Wolfe added that weather had a net negative impact of about one percentage point on the Q4 comp, primarily due to unseasonably warm weather in November hurting cold-weather businesses.

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    John Kernan's questions to Burlington Stores (BURL) leadership • Q3 2024

    Question

    John Kernan asked CEO Michael O'Sullivan about his long-term commitment to the role and his assessment of the executive team. He also asked for more details on supply chain savings initiatives and the expected basis point opportunity in 2025 and beyond.

    Answer

    CEO Michael O'Sullivan affirmed his long-term commitment, stating he is 'not going anyway' and intends to see the 2028 plan through. He praised his executive team as the 'A team'. CFO Kristin Wolfe explained that supply chain savings are ahead of schedule, with about 50 bps of the 100 bps long-range goal expected to be realized in fiscal 2024. The remainder is expected in '25 and '26, with further opportunities from new, more automated distribution centers like the one opening in 2026.

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    John Kernan's questions to Burlington Stores (BURL) leadership • Q2 2024

    Question

    John Kernan asked for an explanation of the differing back-half margin guidance between Q3 and Q4 and inquired about the outlook for the balance sheet, cash flow, and share repurchases amid elevated CapEx.

    Answer

    CFO Kristin Wolfe detailed four factors for the back-half margin outlook, with the primary driver being the 53rd-week calendar shift, which boosts Q3 total sales growth but negatively impacts Q4. Executive David Glick added that despite elevated CapEx for new stores and a major new DC, the company has sufficient cash flow to continue its share repurchase program at a pace similar to recent years.

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    John Kernan's questions to Burlington Stores (BURL) leadership • Q1 2025

    Question

    John Kernan of TD Cowen asked about the potential drivers of risk and upside to the unchanged full-year comp guidance of flat to up 2%. He also requested more detail on the guidance being contingent on ocean freight costs holding at contracted rates and the potential swing factor this represents.

    Answer

    CEO Michael O'Sullivan identified the primary risks as a macro slowdown and increased inflation, while potential upsides include a widening value gap versus other retailers, legislative tailwinds for consumers, and internal initiatives. EVP & CFO Kristin Wolfe clarified the freight contingency, stating that while domestic freight is secured and international ocean rates are contracted through Q1 2026, the guidance assumes no significant exposure to the volatile spot market, which could be a risk if import surges occur.

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    John Kernan's questions to ROSS STORES (ROST) leadership

    John Kernan's questions to ROSS STORES (ROST) leadership • Q2 2025

    Question

    John Kernan from TD Cowen asked about the near and long-term returns on investments in distribution centers and overall CapEx. He also inquired about the company's long-term earnings growth algorithm.

    Answer

    COO Michael Hartshorn explained that new DCs are built for capacity and that the company expects to gain leverage on them over the next two years as sales grow. He then detailed the long-term earnings algorithm: a 3% comp drives 3% EPS growth, 5% new store growth adds 2%, EBIT upside contributes 1-3%, and share buybacks add 2-3%, collectively targeting double-digit annual EPS growth.

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    John Kernan's questions to ROSS STORES (ROST) leadership • Q4 2024

    Question

    John Kernan asked about the SG&A rate being higher than pre-COVID levels and where there might be opportunities for leverage beyond simply achieving higher comps.

    Answer

    Group President and COO Michael Hartshorn attributed the higher SG&A rate primarily to store-related wage increases since the pre-COVID period. He stated that while they continuously seek efficiencies, the leverage point for SG&A remains at about a 3% comparable store sales gain.

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    John Kernan's questions to ROSS STORES (ROST) leadership • Q3 2025

    Question

    John Kernan asked about the current real estate availability for Ross and the broader off-price sector, considering the aggressive store growth plans across the industry.

    Answer

    Group President & COO Michael Hartshorn characterized the real estate landscape as tight, with limited new construction and increased competition for desirable locations. However, he expressed confidence in the company's strong real estate team and its healthy pipeline to support growth plans over the next several years.

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    John Kernan's questions to ROSS STORES (ROST) leadership • Q2 2024

    Question

    John Kernan asked about the long-term operating margin potential of the business and whether the company has seen a benefit from immigration in border states.

    Answer

    CFO Adam Orvos reiterated the company's long-term model where an additional point of comp yields 10-15 basis points of margin expansion, with sustained comp growth being the primary driver. Group President and COO Michael Hartshorn acknowledged that border stores perform very well but stated he could not specifically attribute broad regional performance to immigration, noting the fluctuating strength of markets like California and Texas.

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    John Kernan's questions to TJX COMPANIES INC /DE/ (TJX) leadership

    John Kernan's questions to TJX COMPANIES INC /DE/ (TJX) leadership • Q2 2026

    Question

    John Kernan asked about the progression of comparable sales throughout the second quarter, noting an apparent acceleration in late July and August, and also sought to confirm the company's rule of thumb for profit flow-through from sales upside.

    Answer

    CFO John Klinger confirmed that the quarter started strong, experienced a minor weather-related dip in June, but finished July strongly and entered Q3 with momentum. He also reaffirmed that the company's model assumes 10 to 20 basis points of bottom-line flow-through for every one percentage point of comp sales upside.

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    John Kernan's questions to TJX COMPANIES INC /DE/ (TJX) leadership • Q3 2025

    Question

    John Kernan asked about the performance of categories outside of apparel and home, such as Beauty and Consumables, and also inquired about the long-term drivers of merchandise margin expansion.

    Answer

    CEO Ernie Herrman confirmed that categories like Beauty and other consumables are very strong, serving as traffic and frequency drivers due to their exceptional value. CFO John Klinger reiterated that while operational efficiencies help, the number one lever for long-term margin expansion is top-line sales growth.

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    John Kernan's questions to On Holding (ONON) leadership

    John Kernan's questions to On Holding (ONON) leadership • Q2 2025

    Question

    John Kernan of TD Cowen asked about the implied revenue deceleration in the second half guidance, seeking color on channel and regional trends. He also inquired about the long-term levers for adjusted EBITDA margin expansion beyond 20%, given the company is already running ahead of its 2023 Investor Day targets.

    Answer

    CEO & CFO Martin Hoffmann explained that the strong first-half performance allows for a focus on high-quality, durable growth, enabling more selective door openings and a focus on full-price sales. For long-term margin expansion, Hoffmann pointed to a higher DTC mix, growth in the apparel category, and economies of scale. Co-Founder & Executive Co-Chairman David Allemann added that On's positioning at the intersection of performance and fashion, as seen in collaborations like Loewe, creates a higher long-term margin potential than a pure sports brand.

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    John Kernan's questions to On Holding (ONON) leadership • Q1 2025

    Question

    John Kernan of TD Cowen asked about the evolution of Martin Hoffmann's responsibilities following the co-CEO transition and for an update on automation projects and the scalability of LightSpray technology.

    Answer

    Co-CEO Martin Hoffmann confirmed the company strategy remains unchanged and the leadership transition will be smooth, with an active search for a new CFO underway. He reported the Atlanta warehouse automation is progressing well. Executive Co-Chairman Caspar Coppetti described LightSpray as a 'revolution' and, while not providing a timeline, confirmed more product launches using the technology are planned for this year.

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    John Kernan's questions to FIGS (FIGS) leadership

    John Kernan's questions to FIGS (FIGS) leadership • Q2 2025

    Question

    John Kernan of TD Cowen asked about the implied second-half deceleration in revenue and active customer growth within the guidance, and also inquired about the outlook for leverage on selling expenses.

    Answer

    CFO Sarah Oughtred explained the second-half outlook reflects a greater headwind from the planned pullback in promotions, which will affect customer acquisition and order value. Regarding selling expenses, she expressed confidence in returning to 2023 levels by the next year, noting that progress on efficiencies has been faster than expected, though leverage will be less pronounced with slower back-half revenue growth.

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    John Kernan's questions to FIGS (FIGS) leadership • Q4 2024

    Question

    John Kernan requested a breakdown of fiscal '25 selling and G&A expense drivers, particularly the unwinding of fulfillment costs, and asked about the profitability of international and non-scrubwear.

    Answer

    CFO Sarah Oughtred stated that transitory DC costs in selling expense will normalize but be partly offset by higher fixed facility and international shipping costs. G&A will see higher people costs offset by a ~$13M reduction in stock-based compensation. She confirmed international is profitable and the non-scrubwear mix should grow.

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    John Kernan's questions to FIGS (FIGS) leadership • Q3 2024

    Question

    John Kernan asked how the recent investments in selling and fulfillment expenses would carry into 2025 and what returns could be expected. He also followed up on the outlook for marketing spend in Q4 and the long term.

    Answer

    CFO Sarah Oughtred explained that the 2024 fulfillment center investment positions the company for future scale, and the planned 2025 Canadian distribution center will be a less costly third-party model. She reiterated that Q3 contained the year's outsized marketing spend, with Q4 and 2025 expected to normalize, subject to strategic decisions to drive top-line growth.

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    John Kernan's questions to RALPH LAUREN (RL) leadership

    John Kernan's questions to RALPH LAUREN (RL) leadership • Q1 2026

    Question

    John Kernan of TD Cowen asked for a quantification of the net impact of tariffs on gross margin for the year and how to think about the profitability of the North American segment, particularly in the second half.

    Answer

    CFO Justin Picicci explained that while tariffs are the largest headwind, the company is confident it can be more than offset by tailwinds like AUR growth and promotional pullback, leading to slight gross margin expansion for the year. He acknowledged that cost inflation pressures will disproportionately impact North America, likely shifting the regional profitability mix slightly more toward international.

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    John Kernan's questions to RALPH LAUREN (RL) leadership • Q4 2025

    Question

    John Kernan asked about the drivers behind Europe's strong performance, particularly in DTC, and the outlook for the region's high operating margin, which now stands at 26%.

    Answer

    CFO Justin Picicci attributed the growth to strong brand positioning and effective marketing, while noting the outlook remains cautious due to regional sentiment and geopolitics. President and CEO Patrice Louvet added that the key city ecosystem strategy is transforming the region from its historical wholesale dependency, with plans for 10 new owned stores and 25 partner stores in the fiscal year to expand the DTC footprint.

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    John Kernan's questions to RALPH LAUREN (RL) leadership • Q3 2025

    Question

    John Kernan noted the 500 basis point reduction in the global discount rate and asked how much more room the company has to reduce promotions as part of its AUR growth strategy.

    Answer

    Executive Justin Picicci affirmed that the promotional pullback lever remains a durable driver of AUR growth with significant runway. He highlighted that in Q3, they successfully reduced promotions across all regions and channels, including highly elevated markets like China. He expressed confidence that the company's new customer acquisition muscle, which focuses on full-price consumers, will allow this 'flywheel' to continue.

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    John Kernan's questions to RALPH LAUREN (RL) leadership • Q2 2025

    Question

    John Kernan highlighted the impressive 15% comps in Europe and asked about the strategy for expanding the DTC footprint, including both factory and full-price stores, in what is the company's least penetrated region.

    Answer

    President and CEO Patrice Louvet acknowledged the consistent outperformance in European DTC and confirmed the region is underpenetrated. He stated that significant opportunities remain for selective store expansion in both new and existing key cities, and the company is on track with its Investor Day targets for new store openings while being disciplined in its approach.

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    John Kernan's questions to COLUMBIA SPORTSWEAR (COLM) leadership

    John Kernan's questions to COLUMBIA SPORTSWEAR (COLM) leadership • Q2 2025

    Question

    John Kernan asked for an update on the second-half tariff impact, mitigation strategies, the potential for industry-wide price increases, and the health of the company's inventory, which was up 13% in the quarter.

    Answer

    Chairman, President & CEO Tim Boyle stated that tariff uncertainty remains high, but mitigation efforts include price adjustments, vendor negotiations, and supply chain efficiencies. He expressed caution about consumer demand elasticity with higher prices. EVP & CFO Jim Swanson clarified that the company is absorbing the lion's share of the $35-40 million tariff impact in 2025. He also noted that inventory is in "excellent shape," with the year-over-year increase primarily due to the early receipt of fall inventory to get ahead of potential tariffs.

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    John Kernan's questions to COLUMBIA SPORTSWEAR (COLM) leadership • Q3 2024

    Question

    John Kernan asked what management believes the catalyst will be for improved spending in the competitive and macro-depressed outdoor category. He also questioned the margin structure, noting the high SG&A rate's impact on deleverage over the last five years and how it will be managed going forward. Finally, he asked for a characterization of the North American wholesale channel looking into fiscal '25.

    Answer

    CEO Tim Boyle identified improved, differentiated marketing and a greater emphasis on underperforming categories like footwear as key catalysts for growth, stating the company is not talking about its superior products enough. Regarding SG&A, both Boyle and CFO Jim Swanson emphasized that top-line growth is the primary lever, supplemented by the ongoing profit improvement program focused on supply chain efficiencies and disciplined cost management to balance investment with profitability. Boyle described the consolidated North American wholesale channel as one where Columbia must be a better supplier with superior product and marketing to drive sell-through.

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    John Kernan's questions to DECKERS OUTDOOR (DECK) leadership

    John Kernan's questions to DECKERS OUTDOOR (DECK) leadership • Q1 2026

    Question

    John Kernan from TD Cowen requested guardrails for the expected growth in US versus international markets for Q2 and asked about the anticipated timing for a positive inflection in HOKA's US direct-to-consumer (DTC) business.

    Answer

    CFO Steven Fasching indicated that for Q2, international growth would moderate from Q1's high rate while the domestic business would see some improvement, though international remains the primary growth engine. For HOKA's US DTC, he guided towards continued incremental improvement rather than a dramatic inflection, citing the near-term pressure from ongoing wholesale channel expansion.

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    John Kernan's questions to DECKERS OUTDOOR (DECK) leadership • Q1 2026

    Question

    John Kernan from TD Cowen sought guidance on the expected U.S. versus international growth mix for Q2. He also asked about the anticipated timing for a positive inflection in HOKA's DTC channel growth, particularly within the U.S.

    Answer

    CFO Steven Fasching indicated that for Q2, international growth would moderate from Q1's high rate while the U.S. would see some improvement, though international would still be the main growth driver. He described the U.S. HOKA DTC recovery as a continued, incremental improvement rather than a sharp inflection, partly due to ongoing wholesale expansion.

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    John Kernan's questions to DECKERS OUTDOOR (DECK) leadership • Q4 2025

    Question

    John Kernan asked for additional details on the UGG brand's significant outperformance in the fourth quarter, including performance by region and channel, and its outlook for fiscal 2026. He also inquired about the biggest opportunities for HOKA's new wholesale partner doors.

    Answer

    CEO Stefano Caroti attributed UGG's strength to its expansion beyond slippers into new categories like slipper-sneaker hybrids and strong growth in its men's business. CFO Steve Fasching added that the brand's scarcity model and strong underlying demand contributed to the Q4 beat. For HOKA, Caroti reiterated that opportunities exist across specialty and sporting goods channels globally, where the brand remains underpenetrated versus competitors.

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    John Kernan's questions to DECKERS OUTDOOR (DECK) leadership • Q3 2025

    Question

    John Kernan asked how Q3 U.S. growth compared to expectations, the outlook for international growth into fiscal '26, and how the company can maintain its high operating margin while reinvesting in the business.

    Answer

    CEO Stefano Caroti confirmed U.S. growth met expectations and reiterated the goal for international sales to eventually reach 50% of the total by outpacing U.S. growth. CFO Steve Fasching added that some U.S. sales shifted earlier into Q3, impacting Q4 inventory. Regarding margins, Fasching acknowledged the strength of the scarcity model but warned that pressures from inflation, freight (a ~150 bps headwind in Q4), and foreign exchange will make current levels difficult to sustain.

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    John Kernan's questions to lululemon athletica (LULU) leadership

    John Kernan's questions to lululemon athletica (LULU) leadership • Q1 2026

    Question

    Questioned if Lululemon is becoming more susceptible to the macro environment in China and Rest of World given its scale and the recent deceleration, and asked for the specific basis point impact of markdowns in the guidance.

    Answer

    The company's view on its international opportunity has not changed, seeing a long runway for growth due to low market share and brand awareness, despite recent deceleration from high growth periods. The markdown impact embedded in the full-year gross margin guidance is an increase of 20 basis points versus the prior year.

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    John Kernan's questions to lululemon athletica (LULU) leadership • Q4 2024

    Question

    John Kernan noted that marketing spend has reached approximately 5% of sales and asked about the strategy for this spending level in 2025 and the potential to flex it higher to accelerate growth.

    Answer

    CFO Meghan Frank confirmed that marketing spend is expected to remain around the 5% of sales level in 2025, similar to 2024. She described it as an area the company monitors closely and would consider flexing, dependent on business trends and the effectiveness of new campaigns and activations.

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    John Kernan's questions to lululemon athletica (LULU) leadership • Q3 2024

    Question

    John Kernan asked for an update on the China business, covering both top-line and margin performance, and also inquired about the strategy and confidence behind expanding into new markets in the Rest of World segment.

    Answer

    CFO Meghan Frank reported continued strength in China, with 36% constant currency growth in Q3 and an outlook for over 30% growth in Q4. She noted healthy operating margin expansion but emphasized the focus is on long-term growth, not near-term margin optimization. CEO Calvin McDonald added that 2025 expansion plans include Italy (company-operated) and four new franchise markets, driven by strong brand momentum and pull from international consumers.

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    John Kernan's questions to lululemon athletica (LULU) leadership • Q2 2025

    Question

    Asked about concerns that gross margin has peaked and SG&A will rise, and whether the core women's customer has changed, making planning more difficult.

    Answer

    The company is focused on optimizing the bottom line and remains committed to its Power of Three x2 plan for modest operating margin expansion. They continue to acquire new guests across all demographics and are improving size mix allocation, stating they do not see a macro shift in the customer profile that they are behind on.

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    John Kernan's questions to lululemon athletica (LULU) leadership • Q2 2024

    Question

    John Kernan addressed investor fears that Lululemon's gross margin has peaked and SG&A might need to rise. He also asked if the core women's customer has changed, making planning more difficult.

    Answer

    CFO Meghan Frank countered that the company is delivering strong margins despite slower growth and remains committed to its Power of Three x2 goal of modest operating margin expansion. CEO Calvin McDonald stated that the customer profile has not fundamentally shifted; they continue to acquire guests across all demographics and have improved the size mix entering Q3, indicating planning is adapting effectively.

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    John Kernan's questions to lululemon athletica (LULU) leadership • Q2 2024

    Question

    John Kernan addressed investor fears that Lululemon's gross margin rate has peaked and SG&A might need to increase. He also asked if the core women's customer has changed, making planning more difficult, and what is being learned about new customers.

    Answer

    CFO Meghan Frank addressed margin concerns by reiterating the company's commitment to its 'Power of Three x2' plan, which includes modest operating margin expansion over five years. CEO Calvin McDonald stated that the company continues to acquire new guests across all demographics and that the team has improved its inventory mix for sizing entering Q3, indicating no major, unaddressed shift in the core customer profile.

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    John Kernan's questions to PVH CORP. /DE/ (PVH) leadership

    John Kernan's questions to PVH CORP. /DE/ (PVH) leadership • Q1 2026

    Question

    John Kernan of TD Cowen asked for clarification on the planned promotional impact on gross margin for the second half of the year, noting that Q2 guidance implies a significant impact, and questioned how much room was reserved for this pressure.

    Answer

    CFO Zac Coughlin confirmed that the guidance for the full year includes an approximate 100 basis point negative impact from an increased promotional environment. He stated that the company has assumed the heightened promotional levels observed in the first half will continue through the remainder of the year, and this assumption is built into the current financial outlook.

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    John Kernan's questions to PVH CORP. /DE/ (PVH) leadership • Q1 2025

    Question

    John Kernan of TD Cowen asked for clarification on the planned promotional impact on gross margin for the second half of the year and how much flexibility was reserved in the guidance for a heightened promotional environment.

    Answer

    CFO Zac Coughlin responded that the updated guidance assumes the current, more promotional environment will persist for the remainder of the year. He specified that the full-year forecast includes a roughly 100 basis point negative impact from this increased promotional activity, which is factored into the outlook for the second half.

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    John Kernan's questions to PVH CORP. /DE/ (PVH) leadership • Q1 2025

    Question

    John Kernan of TD Cowen asked about the planned promotional impact on gross margin for the second half of the year, noting that Q2 guidance implies a significant impact, and questioned how much room was reserved for this pressure.

    Answer

    CFO Zac Coughlin confirmed that the company has factored in a significant promotional impact for the remainder of the year. He stated that the full-year guidance now includes approximately 100 basis points of pressure from an increased promotional environment, a trend observed in Q1 that is assumed to continue through the end of 2025.

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    John Kernan's questions to PVH CORP. /DE/ (PVH) leadership • Q2 2024

    Question

    John Kernan inquired about how the DTC versus wholesale channel mix factors into long-term targets and asked about any material financial impact from the G-III transition in the next 12 months.

    Answer

    CEO Stefan Larsson stated the channel mix will ultimately follow the consumer. CFO Zac Coughlin affirmed that the company's 15% EBIT margin target is independent of channel mix, as they aim for profitability across all channels. Regarding the G-III transition, he explained that due to its phased, multi-year nature, no significant, discrete financial impact is expected to be called out in the near term.

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    John Kernan's questions to SKECHERS USA (SKX) leadership

    John Kernan's questions to SKECHERS USA (SKX) leadership • Q1 2025

    Question

    John Kernan of TD Cowen asked for guidance on modeling cost of goods sold (COGS) in the new tariff environment, specifically regarding landed cost as a percentage of COGS. He also inquired about the growth strategy for the Direct-to-Consumer (DTC) segment, including new store plans and omnichannel comparable sales performance.

    Answer

    Executive John Vandemore acknowledged the complexity of modeling COGS, noting that tariffs primarily impact FOB price but also affect other factors like freight and labor when shifting production. Regarding DTC, he confirmed Skechers is still excited to open stores where it is profitable, with a bias towards international markets. He highlighted the strength of the omnichannel model, noting that robust e-commerce growth compensated for more volatile store traffic during the quarter.

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    John Kernan's questions to SKECHERS USA (SKX) leadership • Q4 2024

    Question

    John Kernan from TD Cowen inquired about the allocation of the high 2025 CapEx guidance and the long-term operating margin opportunities as Skechers approaches $10 billion in revenue.

    Answer

    John Vandemore (executive) detailed that the elevated CapEx is for two major, long-term distribution center expansions in China and the U.S., with the latter providing significant efficiency gains. David Weinberg (executive) added the U.S. project replaces expensive off-site storage. Regarding long-term margins, both executives stated that while they aim to sustain and grow the operating margin, the primary focus remains on investing for growth. They believe significant growth potential remains, which will require continued investment.

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    John Kernan's questions to SKECHERS USA (SKX) leadership • Q3 2024

    Question

    Krista Zuber, on behalf of John Kernan, asked about trends in same-store sales, e-commerce growth, and new store productivity, as well as the specific supply chain efficiencies driving G&A leverage.

    Answer

    CFO John Vandemore reported continued strength in global e-commerce and solid international comp store growth. U.S. comps were roughly flat against a tough 14% comparison from the prior year. He attributed the G&A leverage to effective labor management within the distribution network and other targeted cost-reduction initiatives, expressing optimism that more efficiencies could be found.

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    John Kernan's questions to SKECHERS USA (SKX) leadership • Q2 2024

    Question

    John Kernan requested more detail on the back-half guidance increase, the potential impact of rising spot freight rates on costs, and insights into customer acquisition cohorts from new product launches.

    Answer

    Executive David Weinberg and CFO John Vandemore highlighted that the guidance increase is driven by a strong domestic wholesale order book, the timing benefit from delayed European shipments, and continued DTC strength. On freight, Vandemore acknowledged rising spot rates but noted their impact is delayed and partially offset by contractual rates. Weinberg added that customer acquisition is currently driven by expanding the base with comfort features, with a larger push into performance athletics like football and basketball just beginning.

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    John Kernan's questions to Amer Sports (AS) leadership

    John Kernan's questions to Amer Sports (AS) leadership • Q4 2024

    Question

    John Kernan of TD Cowen asked for a more detailed breakdown of the drivers behind the significant gross margin expansion in the second half of 2024 and for the full-year 2025 guidance.

    Answer

    CFO Andrew Page identified the primary driver as the mix shift toward the higher-margin Arc'teryx brand, along with lapping a more promotional period in the Ball & Racquet segment. Arc'teryx CEO Stuart Haselden added that within Arc'teryx itself, lower transportation costs, reduced markdowns, and higher initial product margins all contributed to the expansion.

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    John Kernan's questions to V F (VFC) leadership

    John Kernan's questions to V F (VFC) leadership • Q2 2025

    Question

    John Kernan asked for a comparison of Vans' performance internationally versus domestically and how the brand is trending across different geographies.

    Answer

    CEO Bracken Darrell stated his belief that Vans is underdeveloped internationally, which presents a major long-term growth opportunity. However, he also highlighted that fixing the U.S. business represents the single biggest immediate upside for the brand. He concluded that significant opportunities exist both at home and abroad.

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