Despite pressures on consumer spending, we expect increased engagement among consumers celebrating Halloween this season. The National Retail Federation (NRF) projects both consumer participation and total spending on the holiday to increase this year. Spending on costumes is projected to increase to $4.1 billion from $3.6 billion last year. The company has a strong track record of managing its pop-up operations and consumer trends within its product mix. We expect the company will modestly expand its store footprint this season. Although consumer spending remains a headwind and competition from big box and online retailers exists, we believe the company's in-store experience will continue to drive traffic. Furthermore, the NRF expects 39% of consumers will shop at a specialty retail store
