Financial Data and Key Metrics Changes - The company reported a consolidated revenue of $1.1 billion, a decline of 5% compared to the previous year, with comparable sales decreasing by 3% [20][21] - Adjusted operating loss for the quarter was $68 million, with an adjusted loss per share of $0.29 [5][22] - Gross profit dollars were $322 million, with a gross margin of 29.6%, impacted by approximately $75 million in inventory write-downs [21][22] Business Line Data and Key Metrics Changes - American Eagle comparable sales were down 2%, while Aerie comparable sales declined by 4% [5][20] - Aerie faced challenges in soft apparel, particularly in fleece tops and shorts, while experiencing growth in intimates and offline categories [12][14] - American Eagle saw improvements in women's business, particularly in social casual dressing and achieved its best quarter ever in fleece [15][16] Market Data and Key Metrics Changes - Traffic was up across brands and channels, but the company faced pressure from lower average unit retails (AURs) and conversion rates [20][21] - The company is working to reduce sourcing exposure to China to under 10% this year, with plans to further diversify its supply chain [24] Company Strategy and Development Direction - The company is focused on optimizing operations and strengthening its supply chain, including closing two Edge fulfillment centers, which is expected to generate annualized savings of approximately $5 million [7][8] - Capital allocation priorities include investments for long-term growth while returning capital to shareholders, including a $200 million accelerated share repurchase program [9][23] - The company is committed to improving product performance and is preparing for the back-to-school season with fresh merchandise [24][38] Management's Comments on Operating Environment and Future Outlook - Management expressed disappointment with first-quarter performance but remains optimistic about the second half of the year, hoping for economic stimulation from potential tax plans [28][29] - The company has paused full-year guidance until there is greater visibility but expects improvement as the year progresses [8][24] Other Important Information - The company recorded a $75 million inventory write-down due to product misses and higher costs, leading to increased promotions [5][12] - SG&A expenses increased by 2% due to higher advertising investments, with a focus on customer-facing spend [22][66] Q&A Session Summary Question: What is the company's view of the consumer today and its impact on the retail landscape? - Management is optimistic about the consumer outlook and believes that potential tax plans could stimulate the economy in the second half of the year [28][29] Question: Can you break down the assumptions for gross margin and promotional activity for the second quarter? - The company expects to maintain promotional activity to clean inventory for the back-to-school season, embedding a negative 3% comparable sales expectation [30][31] Question: What are the merchandising issues and how quickly can the company get back on trend? - Management acknowledged product issues but is working swiftly to address them, focusing on clean inventory for the back-to-school season [36][37] Question: How is the company planning its capital allocation and CapEx expenditures? - The company reduced its CapEx guidance to $275 million, recadencing projects to preserve cash in response to business conditions [46][47] Question: How did digital performance compare to stores during the quarter? - The company saw an uptick in digital channels and is leaning into this area for future growth [71] Question: What is the outlook for promotions and SG&A expenses? - The company anticipates continued promotional activity to clean inventory, with SG&A expected to remain flat for the year, focusing on advertising spend [62][66]

Financial Data and Key Metrics Changes - The company reported a consolidated revenue of $1.1 billion, a decline of 5% compared to the previous year, with comparable sales decreasing by 3% [19][20] - Adjusted operating loss for the quarter was $68 million, with an adjusted loss per share of $0.29 [4][22] - Gross profit dollars were $322 million, with a gross margin of 29.6%, impacted by approximately $75 million in inventory write-downs [20][21] Business Line Data and Key Metrics Changes - American Eagle brand comparable sales were down 2%, while Aerie brand comparable sales declined by 4% [4][19] - Aerie faced challenges in soft apparel, particularly in fleece tops and shorts, while certain categories like intimates showed improvement [12][14] - American Eagle saw growth in women's business, particularly in social casual dressing and achieved its best quarter ever in fleece [15][16] Market Data and Key Metrics Changes - Traffic was reported to be up across brands and channels, although the overall performance was constrained by lower average unit retails (AURs) and conversion rates [19][30] - The company is focusing on diversifying its supply chain and reducing sourcing exposure to China to under 10% this year [23] Company Strategy and Development Direction - The company is committed to optimizing operations and strengthening its supply chain, including closing two Edge fulfillment centers, which is expected to generate annualized savings of approximately $5 million [6][22] - Capital allocation priorities include investments for long-term growth while returning capital to shareholders, including a $200 million accelerated share repurchase program [8][9] - The company is focused on improving product performance and preparing for the back-to-school season with fresh merchandise [24][36] Management's Comments on Operating Environment and Future Outlook - Management expressed disappointment with the first quarter performance but remains optimistic about the second half of the year, hoping for improvement as the macro environment stabilizes [4][28] - The company has paused full-year guidance until greater visibility is achieved but expects to see improvement in growth and profitability as the year progresses [22][24] Other Important Information - The company recorded a non-GAAP charge of $17 million related to the closure of fulfillment centers [6][22] - SG&A expenses increased by 2% due to higher advertising investments, with a focus on customer-facing spend [21][63] Q&A Session Summary Question: What is the view of the consumer today and its impact on the retail landscape? - Management remains optimistic about the consumer outlook, hoping for positive economic stimulation from potential tax plans [28] Question: Can you break down the assumptions for gross margin and promotional activity in Q2? - The company expects to maintain a similar comp expectation as Q1, embedding promotional activity to clean inventory for back-to-school [30][31] Question: What are the merchandising issues and how quickly can improvements be made? - Management acknowledged product misses but is working swiftly to address these issues and prepare for back-to-school [35][36] Question: How is the capital allocation and CapEx expenditure being approached? - The company has reduced CapEx guidance to $275 million, recadencing projects to preserve cash [44] Question: How are both brands trending relative to the Q2 comp guide? - Both brands are trending similarly to the guidance of down 3% for Q2 [82] Question: What is the outlook for promotions and SG&A expenses? - Promotions are expected to continue in the near term to clean inventory, with SG&A projected to be flat for the year [59][63] Question: How did digital performance compare to stores during the quarter? - There was an uptick in digital performance, with the company leaning into this channel during the quarter [67] Question: What are the plans for inventory for the remainder of the year? - The company is planning inventory in line with sales expectations and maintaining flexibility in buying [88]

Financial Data and Key Metrics Changes - Adjusted earnings per share for Q1 2025 were $0.22, down from $0.88 in the previous year [29] - Total sales for Q1 2025 were $614.2 million, a decline of 6.8% year over year, which was below expectations of a 5% to 6% decline [26][27] - Consolidated gross margin decreased to 45.4%, down 150 basis points compared to last year [27] - Operating earnings were $12.2 million, resulting in an operating margin of 2% [28] Business Segment Data and Key Metrics Changes - Brand Portfolio sales declined by 6.9%, with gross margin at 43.8%, down 280 basis points due to lower initial margins and higher markdown reserves [27][28] - Famous Footwear sales decreased by 6.3%, with comparable sales down 4.6%, but e-commerce sales increased by 2.5% [20][21] - The Brand Portfolio's lead brands, including Sam Edelman and Allen Edmonds, represented about 60% of sales and 80% of operating earnings [12] Market Data and Key Metrics Changes - The Brand Portfolio gained market share in women's fashion footwear despite overall sales declines [11] - Famous Footwear gained 0.5 points of market share in shoe chains within the kids category [21] Company Strategy and Development Direction - The company plans to reduce SG&A expenses by $15 million annually through structural cuts [7][34] - An acquisition of Stuart Weitzman is expected to enhance the company's premium positioning and direct-to-consumer presence [19] - The company is focusing on optimizing sourcing strategies and managing inventory levels in response to tariff impacts [9][32] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a challenging operating environment and emphasized the need to drive growth and profitability [6][7] - There is cautious optimism regarding back-to-school preparations, with no major cancellations reported [40] - The company is suspending guidance due to the volatile environment but is seeing improving retail trends [33][34] Other Important Information - Inventory levels increased by 8.1% year over year, with a significant portion attributed to the upcoming launch of the Jordan brand [30] - Cash flow from operations was negative $5.7 million due to lower net income and higher inventory levels [30] Q&A Session Summary Question: How are you thinking about the prices of your portfolio brands moving into the summer and fall? - The company is making selective price increases, starting with fall receipts, and is managing this in real-time with key partners [38][39] Question: What adjustments are being made for the $15 million in strategic expense cutting? - The reductions are permanent and structural, expected to begin in the third quarter, with $7.5 million in savings for the back half of the year [43][44] Question: How is the Jordan launch performing? - Early trends for the Jordan launch are encouraging, with strong sell-throughs in men's and boys' categories [56][57] Question: What is the impact of tariffs on the business? - The company is managing tariff-related challenges through factory concessions and selective price increases, but the situation remains fluid [32][60] Question: How should we think about inventory reserves and customer credit issues moving forward? - The company believes it has adequately reserved for spring product markdowns and is closely monitoring customer credit ratings [62][63]

Financial Data and Key Metrics Changes - Net sales declined by 4.1% and comparable sales decreased by 3.9% in Q1 2026, attributed to the closure of 24 stores [24][25] - Gross margin increased to 39.9%, up 37 basis points year-over-year, driven by category mix benefits and inventory management [27] - SG&A expenses decreased by 5.2% to $1.2 billion, leveraging approximately 32 basis points compared to last year [27] - The company reported a net loss of $15 million, with earnings per diluted share of negative $0.13, a 46% improvement from the previous year [27] Business Line Data and Key Metrics Changes - Jewelry sales increased by 10% in Q1, primarily driven by Kohl's card customers, following the reintroduction of jewelry and the rollout of 200 fine jewelry shops [14][15] - Women's apparel underperformed, prompting a focus on delivering more depth in essentials and improving assortment clarity [15] - The Sephora business saw net sales up 6% and comparable sales up 1% in Q1, contributing to a nearly $2 billion beauty business [16] - The petites business performed well, up in the high teens, driven by new brand introductions [15] Market Data and Key Metrics Changes - Digital sales declined by 7.7% in Q1, with the digital business over-penetrating in the home category, which underperformed [25][26] - The store channel outperformed with a comparable sales decline of 2.6% [25] - The company continues to see strong sales from new and non-Kohl's card customers, while Kohl's card customer performance lags [26] Company Strategy and Development Direction - The company is focused on three key areas: offering a curated assortment, reestablishing itself as a leader in value and quality, and enhancing the omnichannel shopping experience [12][17][21] - Plans include the rollout of 105 Sephora small format shops and the expansion of impulse queue lines to nearly all stores by Q3 [16][21] - The company aims to improve proprietary brand penetration, which is currently at an all-time low of around 30% [50] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the challenges faced by middle-income customers and emphasizes the need to focus on value to restore customer confidence [36][61] - The company is navigating a fluid environment with uncertainties, particularly regarding tariffs, but remains committed to achieving its financial guidance for the year [40][32] - Management expressed optimism about the initial results from recent strategic changes and expects to continue momentum throughout the year [23] Other Important Information - The company ended the quarter with $153 million in cash and cash equivalents and expects inventory to be down by high single digits by year-end [28] - Capital expenditures for the quarter were $110 million, with expectations to spend $400 million to $425 million for the year [28] - The company completed a private offering of $360 million in senior secured notes to refinance upcoming debt maturities [29][30] Q&A Session Summary Question: Any adjustments to strategic priorities and what will it take to return to comp growth? - Management indicated no major changes to the strategy and emphasized the need to align the business with customer needs, particularly focusing on value [35][36] Question: Insights on quarter-to-date trends and tariff impacts? - Management noted consistent performance with improvements in regular price selling, while holding guidance due to uncertainties in the environment [38][40] Question: Breakdown of gross margin increase and private label performance? - The increase in gross margin was attributed to a mix benefit and improved inventory management, with proprietary brands expected to enhance margins [47][48] Question: Assessment of store footprint and potential closures? - Management stated that the store base is healthy, with ongoing evaluations for potential closures and relocations based on lease expirations [56][58] Question: Update on Sephora collaboration and operating environment? - The rollout of Sephora is complete in all stores, with positive performance noted in fragrance and hair care categories [68][70] Question: E-commerce performance and profitability outlook? - Digital sales are expected to improve progressively, with profitability impacted by shipping costs, but overall management is pleased with expense management [76][78] Question: Margin pressure from tariffs and guidance assumptions? - Management believes they can mitigate most tariff pressures and has factored this into their guidance for the year [80][82]

交易咨询业务资格：证监许可【2012】1091号 PTA&MEG早报-2025年5月29日 大越期货投资咨询部 金泽彬 投资咨询资格证号：Z0015557 联系方式：0575-85226759 重要提示：本报告非期货交易咨询业务项下服务，其中的观点和信息仅作参考之用，不构成对任何人的投资建议。 我司不会因为关注、收到或阅读本报告内容而视相关人员为客户；市场有风险，投资需谨慎。 CONTENTS 目 录 1 前日回顾 2 每日提示 3 4 今日关注 基本面数据 5 PTA 每日观点 PTA： 1、基本面：昨日PTA期货震荡下跌，现货市场商谈氛围一般，贸易商商谈为主，现货基差走强。本周及下周主港货主流在 09+185成交，宁波货在09+178附近商谈成交，价格商谈区间在4835~4925附近。下周仓单在09+180有成交，6月中上仓单在 09+190有成交。今日主流现货基差在09+184。中性 2、基差：现货4865，09合约基差195，盘面贴水 偏多 3、库存：PTA工厂库存4.15天，环比减少0.13天 偏多 4、盘面：20日均线向上，收盘价收于20日均线之上 偏多 5、主力持仓：净多 多增 偏多 6、预期： ...

Financial Data and Key Metrics Changes - The company is guiding for growth in the current quarter and believes the upcycle has momentum [9] - Non-GAAP gross margin target is set at 65% and operating margin target at 40% [8] - Current OpEx guidance is approximately $356 million on a non-GAAP basis, which is considered the low point [24] Business Line Data and Key Metrics Changes - The company combined its 8-bit and 32-bit microcontroller divisions to address a product gap [6] - The Aerospace and Defense (A&D) segment has grown from about 11% to 18% of revenue, indicating strong performance [33] - The introduction of a 64-bit microcontroller is aimed at applications in industrial control and medical sectors [40] Market Data and Key Metrics Changes - Inventory levels are being corrected, with a noted difference of $103 million between distribution sell-through and sell-in last quarter [26] - Distributors had an average of 33 days of inventory, which is expected to decrease further [27] - The company does not see significant variation in inventory correction across different end markets [30] Company Strategy and Development Direction - The company is focused on improving customer relationships and has moved away from non-cancelable, non-reschedulable orders [8] - A new long-term business model has been unveiled, emphasizing a focus on customer engagement and market alignment [8] - The company is exploring attractive secular growth opportunities, particularly in connectivity and FPGA markets [32] Management's Comments on Operating Environment and Future Outlook - Management believes they have seen the bottom of the cycle and are optimistic about future growth [9] - There is a focus on rational conversations with customers to avoid overreactions in the current uncertain environment [50] - The company is seeing an increase in bookings activity, indicating a positive outlook for the future [52] Other Important Information - The company has closed its Fab two manufacturing facility to improve inventory management and margins [5] - Management has indicated that they are not pursuing a 300mm fab due to the diverse product portfolio [15] - The company has a proactive approach to managing potential tariff impacts by ensuring visibility in manufacturing locations [55] Q&A Session Summary Question: Are there any more changes needed in the manufacturing network? - The closure of Fab two was strategic, and there is ample room for expansion in other facilities [13] Question: What is the status of customer relationships? - About 90% of previously damaged relationships have been repaired through direct engagement [19] Question: How should OpEx be viewed going forward? - OpEx cuts are complete, and as revenue grows, OpEx as a percentage of sales is expected to decrease [25] Question: How far is the company from shipping to end demand? - The company expects the difference between sell-through and sell-in to converge over the fiscal year [26] Question: What is the outlook for the Aerospace and Defense business? - The A&D segment continues to grow and is a significant focus for the company [33] Question: How is the company positioned regarding tariffs and manufacturing? - The company has a low percentage of revenue built in China and is cross-qualifying products to mitigate risks [57] Question: What is the path to improving gross margins? - The company expects inventory reserve charges to decrease as inventory levels fall and revenue increases [67] Question: Is Microchip considering further acquisitions? - Small acquisitions are still on the table, but the focus is primarily on subscale opportunities [70]

Financial Data and Key Metrics Changes - The company reported record net sales of $1,100,000,000 for Q1 2025, representing an 8% increase compared to the previous year, exceeding the expected range of 4% to 6% [6][14] - Operating margin was 9.3%, with earnings per share of $1.59, both above the previously provided ranges [6][14] - The company returned $200,000,000 to shareholders through share repurchases, totaling 5% of shares outstanding as of the beginning of the year [6][18] Business Line Data and Key Metrics Changes - Hollister brand achieved a 22% net sales growth, with comparable sales up 23%, marking the eighth consecutive quarter of growth [7][15] - Abercrombie Brands experienced a 4% net sales decline, with comparable sales down 10%, primarily due to a decline in average unit retail (AUR) as the company worked through winter carryover inventory [9][15] Market Data and Key Metrics Changes - The Americas region saw a 7% growth, while EMEA grew by 12% and APAC by 5% [7][14] - Strong comparable sales were reported across all regions, with the Americas up 4%, EMEA up 6%, and APAC up 2% [14] Company Strategy and Development Direction - The company aims to add around 100 new physical experiences in 2025, including 60 new stores and 40 remodels, while maintaining a focus on global growth [13][21] - The management emphasized the importance of agility in inventory management and marketing investments to align product offerings with customer demand [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving sequential improvement in sales for Abercrombie Brands in the second half of the year, driven by positive customer responses to new product categories [10][41] - The company anticipates a full-year net sales growth of 3% to 6%, with operating margin expected to be in the range of 12.5% to 13.5% [20][21] Other Important Information - The company is not planning broad-based ticket price increases despite anticipated tariff impacts, focusing instead on maintaining product quality and aligning inventory with customer value perception [11][19] - The tax rate for the quarter was in line with expectations at 25%, with net income per diluted share above outlook at $1.59 compared to $2.14 last year [17] Q&A Session Summary Question: Outlook for Hollister and Abercrombie - Management highlighted the strong performance of Hollister and discussed the flexibility of Abercrombie's model to respond to customer trends, expecting an inflection in the back half of the year [30][41] Question: Full Year Profit Outlook - The management explained the reduction in profit expectations primarily due to tariffs, while maintaining confidence in the sales growth outlook based on strong balance sheet and planned investments [38][39] Question: Traffic and Inventory Levels - Positive traffic was reported for both Abercrombie and Hollister, with management indicating that carryover inventory levels are normalized compared to previous years [45][46] Question: Promotions and Growth Expectations - Management discussed expectations for promotions, indicating that AUR pressure would continue in the near term but would improve in the back half of the year [94][96] Question: Growth in Europe and Asia - The company remains optimistic about growth in EMEA and APAC, particularly in the UK and Germany, where strong performance was noted [99][100] Question: Improvement for Abercrombie - Management acknowledged the challenges faced in Q1 but expressed confidence in the brand's ability to adapt and respond to emerging trends, expecting improvement in the second half [102][106]

塑 料 日期 东北亚乙 烯 华北LL 华东LL 华东LD 华东HD LL美金 LL美湾 进口利润 主力期货 基差 两油库存 仓单 2025/05/2 0 780 7300 7515 9250 7780 855 917 -31 7222 40 82 5312 2025/05/2 1 780 7260 7525 9200 7780 855 917 -5 7221 30 81 5312 2025/05/2 2 780 7260 7450 9075 7800 855 917 -84 7159 40 80 5312 2025/05/2 3 780 7150 7400 9000 7780 855 917 -84 7085 40 80 5312 2025/05/2 6 780 7100 7375 9000 7780 855 917 -84 7080 60 80 5312 日度变化 0 -50 -25 0 0 0 0 0 -5 20 0 0 观点 聚乙烯，两油库存同比中性，上游过节累库，煤化工累库，下游库存原料中性，成品库存中性。整体库存中性，05基差华北+300， 华东+300，外盘欧美稳，东南亚维稳。进口利润-400附近 ...

Core Viewpoint - The company is maintaining a "buy" rating while focusing on high dividends and expanding in the running and outdoor sectors, despite a decline in revenue and net profit for FY2025 [1] Group 1: Financial Performance - FY2025 revenue is projected at 27.01 billion yuan, a decrease of 6.6% year-on-year, with a net profit of 1.286 billion yuan, down 41.9% [1] - The company has a high dividend payout ratio of 135% for the full year, with a cumulative payout ratio of 104.2% over the past six years [1] - Revised net profit forecasts for FY2026-2028 are 1.32 billion, 1.59 billion, and 1.85 billion yuan, respectively, down from previous estimates [1] Group 2: Sales and Revenue Breakdown - Main brand revenue for FY2025 is 23.31 billion yuan, a decline of 6.1%, accounting for 86.3% of total revenue, while other brand revenue is 3.5 billion yuan, down 9.9% [1] - Direct online sales have seen double-digit growth, increasing their share to 30-40% from 20-30% in FY2024 [1] - Retail and wholesale revenues decreased by 6.8% and 5.8%, respectively, indicating a challenging sales environment [1] Group 3: Store Management and Operations - As of FY2025, the number of stores is 5,020, a decrease of 18.3% year-on-year, with a focus on optimizing low-efficiency stores [2] - The average sales area per store has increased by 7.2%, reflecting a strategy of tailored store adjustments [2] - Inventory management has improved, with inventory down 4.5% to 6 billion yuan and inventory turnover days at 134.9 days, a slight improvement [2] Group 4: Profitability and Cost Management - FY2025 gross margin is 38.4%, down 3.4 percentage points, with a slight increase in expense ratio to 33.1% [2] - Operating profit margin (OPM) is 5.9%, and net profit margin is 4.8%, both showing declines [2] - The company has managed to maintain cash flow, with net cash increasing by 20% to 3.76 billion yuan, which is 2.6 times the net profit [2]

Investment Rating - The report assigns a rating of "Outperform" for the company, expecting a relative return exceeding the benchmark index by over 10% in the next 12-18 months [19]. Core Insights - The company's operating revenue for the 2024/25 fiscal year was 27.01 billion yuan, a decrease of 6.6% year-on-year, with the decline in the second half narrowing to 5.4% compared to 7.9% in the first half [2][8]. - The retail business, the main revenue source, saw a 6.8% decline to 23.03 billion yuan, with improvements in the second half attributed to online sales initiatives [2][8]. - The gross margin decreased by 3.4 percentage points to 38.4%, while net profit fell by 41.9% to 12.85 billion yuan, influenced by increased discount rates and changes in sales channel mix [4][10]. - The company maintained a strong cash flow, with net cash flow from operating activities increasing by 20% to 3.76 billion yuan, supporting a high dividend payout ratio of 135% [5][12]. Revenue Performance - The company's revenue for the 2024/25 fiscal year was under pressure, primarily due to a weak consumption environment and reduced offline foot traffic [2][8]. - Retail revenue declined by 6.8% year-on-year, with the main brand's sales down 6.1% to 23.31 billion yuan [2][8]. - The online business segment showed double-digit growth, contributing to an increase in its share of overall direct business to 30%-40% [3][9]. Margin and Profitability - The overall gross margin decreased to 38.4%, with a notable decline in net profit by 41.9% year-on-year [4][10]. - The company is focusing on expense control, with total expenses decreasing by 5.6% year-on-year, while aiming to improve profit margins through efficiency [4][10]. Cash Flow and Dividends - The company reported a robust cash generation capability, with free cash flow at 3.38 billion yuan, 2.6 times the net profit for the same period [5][12]. - A final dividend of 0.02 yuan per share and a special dividend of 0.12 yuan per share were proposed, maintaining a high dividend payout ratio [5][12].