Kate McShane • Goldman Sachs Group, Inc.

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EVP & CFO John David Rainey detailed that Sam's Club e-commerce is profitable, the U.S. is improving, and International is contribution-margin positive. He noted that 50% of incremental profit (excluding claims) came from advertising, membership, and marketplace. Walmart US CEO & President John Furner added that faster delivery is driving U.S. growth. President, CEO & Director Doug Mcmillon reiterated that the digital P&L is expected to become more profitable than the store P&L over time.

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EVP & CCO Rick Gomez explained that Target is mitigating most tariff impacts through diversified sourcing, assortment changes, and partner negotiations, viewing price increases as a last resort. He emphasized a focus on broad value, including quality and style via own brands. Incoming CEO Michael Fiddelke added that the team's agility in managing tariffs enabled the company to reiterate its full-year EPS guidance.

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CCO Rick Gomez and CEO Brian Cornell responded. Gomez detailed a multi-pronged strategy including diversifying country of production for own brands (targeting less than 25% from China), evolving assortments in price-sensitive areas like Bullseye's Playground, and leveraging vendor partnerships to offset the 'vast majority' of tariff impacts. Cornell added that while the environment is uncertain, the focus remains on delivering value and remaining price competitive.

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EVP of Merchandising Ersan Sayman responded that the company has not yet seen cost increases from its U.S. vendors. He added that if such increases were to occur, the company would leverage its global sourcing network to look at all options and diversify, consistent with its standard practice for managing costs.

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President and CEO William Stengel described the performance in Europe as "mixed" but sequentially improving across most countries through the second quarter. He confirmed that the NAPA branded product is a "real differentiator" that offers a strong value proposition to customers in a sluggish market and is "absolutely helping us offset" the headwinds.

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CEO Steven Lawrence confirmed their pricing models account for elasticity and potential unit demand erosion if prices rise. He elaborated that in a higher-cost environment, consumers will have less discretionary income and will seek value. He believes Academy is well-positioned to benefit from this trade-down effect, attracting customers looking to maximize their spending power, a trend they are already observing.

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CFO Eva Boratto confirmed the new format is the Gingham Plus concept, which is outperforming older stores with favorable returns due to comparable build costs. She stated this format is used for all new and remodeled stores, but CapEx has not been accelerated. CEO Daniel Heaf added that while he likes the new format, he sees opportunities for further iteration, including adding services and enhancing its role as a marketing vehicle.

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CEO Winnie Park responded that the success was driven by both categories and trends. She cited the collectibles trend in toys and specific novelty candy items as trend-driven wins, while also highlighting strong performance in licensed products like Minecraft and Stitch. This combination of factors sustained momentum post-Easter.

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CFO Stewart Glendinning explained that the inventory increase includes tariff impacts and reflects a higher average cost per item due to multi-price, as well as inventory for 496 net new stores. CEO Michael Creedon added that the sourcing teams are navigating the environment effectively to ensure high in-stock levels and make a great impression on new customers.

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Executive VP & CFO Gary Millerchip stated that it's still early to see the full impact of the fee increase in renewal data, but there has been no material negative signal and very little direct member feedback. On the international front, he acknowledged hearing some member feedback on geopolitical tensions but emphasized that it has not impacted business performance, noting that all international countries posted positive comparable sales growth in the quarter.

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CFO Gary Millerchip reported that it is still early to see the full effect of the fee increase on renewals, but member feedback has been minimal, which he attributed to the long period since the last increase. Internationally, he acknowledged hearing some member feedback on geopolitical tensions but stated it has not negatively impacted business, with all international regions posting positive comparable sales growth in the quarter.

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President & CEO Kecia Steelman responded by emphasizing that beauty and wellness are Ulta's core expertise. She highlighted key differentiators like the loyalty program, omnichannel strength, and personalized digital experiences. While acknowledging improving trends in stores most affected by competitor expansion, she stated the strategy is to continue leaning into Ulta's unique strengths to drive success rather than focusing on industry segmentation.

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President and CEO Lauren Hobart confirmed that the 4.5% comparable sales growth was broad-based, with growth seen in footwear, apparel, and team sports. She noted that while February started slow due to weather, performance improved and remained strong across all three months of the quarter.

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CEO Laura Alber positioned supply chain efficiency as a core component of customer service. She explained that the gains are a result of lower returns and replacements, improved on-time delivery, and fewer out-of-market shipments. She emphasized that excellence in furniture delivery is a key competitive advantage and a sales driver, with more progress still to come.

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CEO Lori Flees and CFO Mary Meixelsperger did not provide specific penetration rates but confirmed NOCR is growing across all quartiles. Flees argued that customers are more likely to maintain vehicles to avoid high replacement costs in a soft macro environment, making the business resistant to service deferrals.

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Executive Philip Daniele described the commercial growth as broad-based, driven by improved execution, assortment, and delivery rather than specific regional factors. CFO Jamere Jackson noted that opening Mega-Hubs is a multi-year process but the pipeline is strong, with 19 planned for the back half of the year and a long-term target of nearly 300.

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COO Danny Rivera explained the deleveraging plan relies on both EBITDA growth, led by the Take 5 Oil Change business, and using strong free cash flow from the entire portfolio for debt paydown. He confirmed that strategic portfolio management, if opportunities arise, would also be used to reduce debt, but the company feels comfortable achieving its goal organically.

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