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President and CEO Jason Potter responded that the current comp run rate is consistent with the provided guidance and that the company is seeing improvement. He reiterated that the initiatives being rolled out are expected to build momentum as the year progresses. He also clarified that the full-year guidance includes a 53rd week in the fourth quarter, which provides a leverage benefit to the P&L.

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CEO Jason Potter acknowledged that April trends were 'a little soft' but found it difficult to attribute the cause, citing general consumer uncertainty. Regarding pricing, he stated that after recent work to sharpen value, he feels they are in a 'good spot' but that monitoring competitive gaps is an ongoing process.

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CFO Chris Miller acknowledged the company's history of strong performance and the significant growth opportunities ahead. However, he stated that while they have provided guidance for the current year, they are not prepared to comment on long-term margin targets beyond 2025 at this time.

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Interim President and CEO Eric Lindberg stated that the company has historically operated within a narrow margin band of roughly 30% to 31.5% and that he would 'never say that we'll never see these margins again.' He explained that the business model provides flexibility to manage margins weekly and that the current level reflects a strategic choice to reinvest in price to drive customer traffic, rather than a permanent structural change.

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CEO Ernie Garcia reiterated the strong full-year guidance without providing more detail, framing it as a milestone toward their long-term goals. He clarified the 3 million unit target implies a ~40% CAGR over five years, which is consistent with their current 41% growth rate, and expressed confidence given their small market share and improving operational efficiency.

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CEO Ernie Garcia reiterated the strong full-year guidance without providing more detail, emphasizing it as a milestone toward the long-term goal. He clarified the 3 million unit target implies a 40% CAGR over five years, which is in line with the current growth rate, and expressed confidence given the company's small market share and improving operational efficiency.

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CEO Ernie Garcia stated they would not speculate on tariffs and are running the business as usual. On margins, he clarified they are targeting the high end of the existing range, and the path there is clear. The key strategic decision is how to allocate future fundamental gains between customer value and bottom-line profit, with the current bias toward sharing gains with customers to drive long-term growth.

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CEO Steve Brass explained the revenue guidance adjustment was due to a clearer year-end view, tough comparables, and specific regional factors like a manufacturing change in the Middle East and volatility in Turkey. CFO Sara Hyzer added that the improved profitability outlook is driven by favorable foreign exchange rates, particularly the Euro, and other positive non-operating items. Regarding promotions, Brass differentiated between brand-building efforts and retailer-specific promotions, stating that the timing of the latter can vary and that a strong promotional plan is in place for the U.S. in Q4.

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President & CEO Kecia Steelman opined that the competitive environment remains consistently intense, but the nature of it has shifted as Ulta is now cycling past the peak of physical store expansion from key rivals. She highlighted Ulta's own upcoming marketplace launch and its unique differentiators like brand exclusivity and in-store experiences. CFO Paula Oyibo added that the company's ability to compete has improved this year due to the 'Ulta Beauty Unleashed' plan.

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CFO Paula Oyibo stated that Ulta's direct import exposure is limited, with only about 1% of shipments being direct imports. She assured that the team is actively scenario planning and monitoring the situation, similar to how they successfully navigated the 2018-2019 period.

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CEO David Kimbell responded that while the prestige category remains pressured, particularly in makeup and hair, the dynamics of share loss are not worsening. He attributed the quarter's overall performance to the combination of a moderating category, sustained competitive pressures, and the specific operational and promotional factors discussed on the call.

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CFO Matt Bilunas acknowledged a likely minor pull-forward in demand, though difficult to quantify. CEO Corie Barry added that while there may have been a slight market share loss in a quiet Q1, she expects full-year gains in computing and gaming. She reiterated that consumer behavior remains consistent with recent quarters: resilient but value-focused and making trade-offs.

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CEO Corie Barry described the next phase as an 'evolution, not a revolution,' where AI capabilities will proliferate across all devices with a screen, including tablets, phones, and TVs, driving demand for higher processing power. She pointed to Apple Intelligence as a key example of a cross-device catalyst. CFO Matt Bilunas clarified that while there was a quarterly calendar shift impact, most of it occurred in May, meaning July's flat performance was 'relatively not impacted' by the shift.

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President and CEO Lauren Hobart and Executive VP & CFO Navdeep Gupta detailed the synergy, explaining that Unrivaled provides on-the-ground access to the youth sports ecosystem, complementing GameChanger's digital platform and tapping into a $40 billion TAM. Regarding Nike, Hobart deferred to them but noted their current efforts are aimed at cleaning up the marketplace.

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President and CEO Lauren Hobart clarified that while the company remains rooted in performance sports, it has successfully expanded its assortment to include the lifestyle products athletes wear off the field. CFO Navdeep Gupta confirmed this is a chain-wide strategy, with 90% of stores now featuring a premium footwear experience. Lauren Hobart stated that while exciting, the Celtics' win was not a material contributor to the quarter's results.

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CEO Kenneth Seipel explained that the company has a low-base operating budget, and sales above that baseline are expected to generate approximately 25% flow-through to EBITDA, with a stretch plan offering even higher flow-through. CFO Heather Plutino added that the key drivers are sales growth, a minimum of 220 basis points in gross margin expansion, and SG&A leverage. Seipel clarified that the low-to-mid-single-digit comp guidance encompasses the baseline plan, and the guided EBITDA range reflects the potential flow-through from achieving higher sales tiers within that outlook.

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CEO Kenneth Seipel stated that returning to historical EBITDA margins of 5-6% is a primary near-term goal, with a potential path beyond that. CFO Heather Plutino identified a normalized quarterly SG&A run rate of approximately $73 million, which Seipel added is a highly fixed base that should provide significant leverage as sales grow. Seipel compared the turnaround by noting the common theme of refocusing on the core customer, the unique challenge of fixing more broken operational fundamentals than usual, and the uniquely positive and quick response from customers to strategic changes.

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CFO Heather Plutino explained that while customer traffic increased, the basket size (units per transaction) was under pressure, causing the comp decline. She noted that footwear continued to be a drag, while children's apparel, home, and impulse categories performed well. Regarding shrink, Plutino confirmed that the higher accrual rate will remain a drag versus last year but is fully incorporated into the second-half gross margin guidance of approximately 39%.

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CEO Ken Seipel clarified the off-price strategy, distinguishing between traditional end-of-season closeouts and the new focus on 'extreme value' products—highly branded, current-season items offered at significant discounts. He stated the long-term goal is for this segment to add an incremental 10% to top-line sales. Regarding guidance, Seipel explained that the back half of the year faces tougher comparisons and the company is managing the business on a two-year stack basis, which is expected to moderate. He also cited macro uncertainty as a reason for a prudent outlook.

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Executive Gary Millerchip confirmed that they have been pleased with the member response to extended gas hours and are seeing improved usage. Regarding price gaps, he stated that Costco feels very good about its competitive positioning, focusing proactively on lowering prices for members rather than reacting to competitors.

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Gary Millerchip, an executive, stated that Costco aims to be its own biggest competitor by being the first to lower prices, making most investments proactive. While the promotional environment is increasing, especially in appliances, he feels good about Costco's price position. Ron Vachris, an executive, addressed the gas question, stating that while gallon growth was softer, he doesn't see it as a concern and is not seeing traffic drop off in the warehouse as a result.

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CEO Shane O'Kelly confirmed that test-and-control data shows a positive comparable sales lift for both the hub stores and the stores they service. CFO Ryan Grimsland clarified that the guidance assumes a return to 'normal market conditions' rather than a significant improvement, a view he noted is consistent with external forecasts.

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CEO Doug McMillon clarified his previous 'storm clouds' comment, stating the feared downturn never materialized and he now sees consistency. Walmart U.S. CEO John Furner described the consumer as 'consistent' and 'resilient,' adding that the team is prepared for any economic environment by focusing on its omnichannel strategy.

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CFO Jeremy Fletcher clarified that while day-to-day business volumes were consistent with the end of Q4, the actual Q1 comp growth rate is lower due to the difficult comparison to strong weather-driven sales in January 2024. Regarding inflation, Fletcher explained that O'Reilly's pricing adjustments are more gradual than in other industries due to its slow-turning inventory, and the company avoids speculating on future inflation in its guidance until it materializes in their costs.

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Executive Gregory Roberts clarified that his optimism stems from observing a decrease in customer selling pressure that had been prevalent during periods of record-high metal prices. He noted that a drop in spot prices historically stimulates buying demand and improves premiums, and that the buy-to-sell ratio had improved significantly in recent weeks.

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CEO Philip Daniele stated that competitor pricing has not caused a radical change and that average ticket is primarily driven by product cost inflation, not competitive actions. He clarified that Q1 trends are expected to be similar to Q4, with modest improvement anticipated later in the year. The company is targeting over 20 Mega-Hub openings in FY25, mostly in the second half.

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CEO Robert Eddy and EVP William Werner confirmed the higher preopening costs are due to an accelerated new club opening schedule (11 clubs vs. 5 last year), which pressures near-term EPS but is a positive long-term investment. Eddy clarified that 'growing pains' include increased labor for resets and markdowns to clear old inventory, with the benefits expected to materialize next year as categories that have undergone the process are already showing better performance.

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CEO Bob Eddy explained that the meat and produce categories are of a comparable size. He noted that while it's too early to quantify a multiplier effect, they anticipate a similar lift in meat as seen in produce, which drove high-single to low-double-digit unit movement. He described the overall Fresh 2.0 initiative as a material opportunity to change the business long-term by making BJ's a weekly shopping destination for members.

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Chairman and CEO Bob Eddy explained that the meat and produce categories are of a comparable size. While produce has been driving high single-digit to low double-digit unit growth, he anticipates a similar result in meat. He emphasized that it's too early to measure the combined '1+1=3' effect on member trips and loyalty, but the strategic goal is to solidify BJ's as a weekly shopping destination.

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EVP, Strategy and Development, William Werner explained that as the company gains market share, its models reveal more opportunities in both existing and adjacent markets, such as the planned entry into Dallas-Fort Worth. CEO Robert Eddy added that the entire club channel is gaining share from grocery stores, and while BJ's will remain prudent with capital, they see no reason to slow their measured expansion pace.

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