Question · Q1 2026
Skylar Tennant asked about consumer behavior, specifically if there were signs of elasticity to higher prices or trade-down. She also questioned the impact of inflation across the product catalog and demand elasticity for items not affected by inflation.
Answer
President and CEO Philip Daniele III indicated that the lower-end consumer has been stable but under pressure for over two years, while the higher-end consumer remains stable. He noted limited trade-down opportunities due to the nature of most products. Philip Daniele III also mentioned that inflation is expected to increase through Q3, then moderate in Q4. Most 'break fix' and required maintenance products show little volatility, while discretionary categories, after two years of decline, have stabilized and shown minor improvement.
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