The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Mauricio Serna Vega - UBS Investment Bank, Research Division - Analyst
: Maybe you could elaborate a little bit more on the quarterly cadence, thinking about going back to May when you provided the outlook for the
first quarter. How things changed in May? And then in June, I know you talked about deceleration. Maybe if you could provide a little bit more
detail on whether that came like in the form of traffic, transaction, basket size? Anything that you can provide on that would be very helpful.
Question: Mauricio Serna Vega - UBS Investment Bank, Research Division - Analyst
: Got it. If I may, just a quick follow-up on, I guess, like the implied revenue growth for the second half. I mean, I think it can range from, I think, like
roughly 1% to 8% depending on where you're modeling for the year. Just trying to understand like what kind of implied comp sales are you
expecting like this quarter? And like is there an improvement there, what kind of improvement are you expecting on the second half because of
the newness? I mean, I guess, there's been more of a fiscal year '25 story, but trying to understand that there's been any improvement that we
should see in comp sales in the second half?
Question: Dylan Douglas Carden - William Blair & Company L.L.C., Research Division - Analyst
: I want to revisit the question I asked on the last call in and around kind of these higher inventory balances you've been carrying and the fact that
you had kind of pulled forward 100% of the order as opposed to historically closer to 75%. I'm just curious if the sort of lack of newness, potentially
lack of flexibility in that assortment is part of what you're seeing as far as apart from the macro, I guess, and consumer behavior around the offering?
Question: Dylan Douglas Carden - William Blair & Company L.L.C., Research Division - Analyst
: Okay. And then on the inventory sort of over 60%, not too much of an improvement from April. And there's been some thought here in kind of
watching your promotions that you've picked up, or at least pulled forward some promotion here in June. The path to get back to more normalized
growth by the end of August. Does that require kind of an elevated promotional cadence for the commentary around sort of by the full year, you'll
be at historical levels? Has that allowed for, I guess, more in the immediate term?
Question: Dylan Douglas Carden - William Blair & Company L.L.C., Research Division - Analyst
: Markdown is depth and breadth, or however you want to kind of categorize it.
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