🔹 Revenue: $5.53B (Est. $5.54B) 🔴; +5% YoY
🔹 EPS: $1.56 (Est. $1.53) 🟢; -2% YoY (includes ~$0.11/sh tariff hit)
🔹 Comparable Store Sales: UP +2% YoY
Guidance:
🔹 Q3’26 EPS: $1.31–$1.37 (Est. $1.47) 🔴
🔹 Q4’26 EPS: $1.74–$1.81 vs $1.79 LY
🔹 FY25 EPS: $6.08–$6.21 vs $6.32 LY (includes ~$0.22–$0.25 tariff hit; FY24 included $0.14 one-time gain)
🔹 Comps: +2%–3% expected in 2H’25
Other Metrics:
🔹 Net Income: $508M; DOWN -4% YoY
🔹 Operating Margin: 11.5%; DOWN -95 bps YoY
Shareholder Returns:
🔹 Share Repurchases: 1.9M shares for $262M in Q2
🔹 On track to buy back ~$1.05B in stock during FY25 under $2.1B program
CEO Commentary:
🔸 “Sales in May were strong, softened in June, then rebounded sharply in July—helped by back-to-school.”
🔸 “Earnings exceeded the high end of guidance due to lower tariff costs, though margins remain pressured.”
🔸 “Macro and geopolitical uncertainty persists, but rising retail prices should drive consumers to seek value this Fall.”
🔸 “We remain focused on delivering branded merchandise at compelling price points to reinforce our value proposition and capture share.”