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: Ike Boruchow - Wells Fargo Securities - Analyst
: Hey, good morning, everyone. Good to talk to you, JK. I guess two questions for me on the new guide. Just making sure I understand. So the new
comp guide flat to three, but there's 100 basis points of the digital. Did the core business, meaning ex digital, did your expectation on that business
also come down.
It looks like it did, but it also kind of sounds like you're more calling out the digital banners is the driver of it. So just trying to understand core versus
the digital component. And then just a follow-up question on the guide. It looks like you're still guiding some nice margin expansion despite the
lower comp.
And I guess I'm trying to understand where that margin expansion has come from? Is that gross margin? Is that some expense initiatives you're
flexing. So just kind of curious the puts and takes.
Question: Ike Boruchow - Wells Fargo Securities - Analyst
: Can you quantify what you expect gross margin to be for 4Q? And then just kind of comment on the promo environment, and then I'll pass it along.
Question: Ike Boruchow - Wells Fargo Securities - Analyst
: Thank you so much.
Question: Lorraine Hutchinson - BoA Merrill Lynch - Analyst
: This is Melanie on for Lorraine. I just wanted to ask about the digital integration issues if you can just expand upon those a bit more. It seems like
you identified a few more things going on in that side of the business. So if you can just explain why these are still going on, what else needs to be
done? Thank you.
Question: Lorraine Hutchinson - BoA Merrill Lynch - Analyst
: Thank you.
Question: Paul Lejuez - Citigroup - Analyst
: Hey. A couple of questions. Can you talk about what you're seeing on the cost side for both natural and lab? And how are retail prices change
relative to what you're seeing on the cost side? And then second, when we get through this year, what's the profitability going to look like from
those digital banners? Are they even making any money this year? And what's the plan to improve the probability of those businesses for next
year? Thanks.
Question: Paul Lejuez - Citigroup - Analyst
: Thanks so much.
Question: Mauricio Serna - UBS - Analyst
: Hi, good morning. Thanks for taking my questions. Maybe could you talk about your quarter-to-date same-store sales, just given your commentary
about Black Friday sales performance and then also, maybe could you give us a sense on the puts and takes that you're seeing into 2025 margin
rising pricing, commodity cost like gold, any incentive comp rebuild. Just like getting a better sense of that? And then I have a quick follow-up on
share count. Thank you.
Question: Mauricio Serna - UBS - Analyst
: Got it. And just I guess, just to make sure I understood, does that mean that your quarter-to-date is within flat to up 3%. And then the follow-up I
had on the share count. Just trying to understand like how you're getting to the I think like the 46.2% share count for the entire year, just like doing
the numbers on what you already did and not assuming any more buybacks, I'm getting to like a 45.5% just trying to understand like anything
there to consider on the calculations for the diluted share count for the full year?
Question: Mauricio Serna - UBS - Analyst
: Got it. Thank you so much and good luck.
Question: Jim Sanderson - Northcoast Research - Analyst
: Hey, thanks for the question. I wanted to go back to the commentary on the Bridal category. I think you reported that average transaction value is
down. Can you put that into perspective for us, whether that's getting worse or better? And what the key drivers of that decline are?
Question: Jim Sanderson - Northcoast Research - Analyst
: (multiple speakers) And transaction value -- my apologies. I just wanted to make sure I understood correctly.
Question: Jim Sanderson - Northcoast Research - Analyst
: All right. And just one last follow-up question. I think you reported numbers for Black Friday this year and Cyber Monday. Could you just what that
trend was reported last year for comparison?
Question: Jim Sanderson - Northcoast Research - Analyst
: Understood. Thank you.
Question: Mauricio Serna - UBS - Analyst
: Yeah, thank you. Just a quick follow-up. I wanted to understand the digital banners like the impact on the total price, like why is that because of
Engagement? What is ever more promotions? And just on the promotional environment, are you thinking that in Q3 versus the previous quarters?
And how are you thinking about that for Q4? Thank you.
Question: Mauricio Serna - UBS - Analyst
: Thank you so much.
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