Question · Q2 2026
Savannah Summerhill from Goldman Sachs inquired about the long-term potential for sub-brands to exceed 25-30% of the assortment beyond fiscal 2026, and the associated margin expansion opportunities and timeline as these brands continue to scale.
Answer
CEO Lisa Harper confirmed the strong margin profile of sub-brands, delivering hundreds of basis points higher product margins. She discussed future expansion strategies post-2026, including testing store conversions, pop-ups, and standalones for larger brands like Belle Isle and Festi, and increasing sub-brand penetration in existing stores. The goal is to provide diverse lifestyle choices and address the customer's demand for broader fashion.