Core Insights - The apparel company is facing challenges due to tariffs and a decline in discretionary spending [1] Group 1 - The company has been impacted by the effects of tariffs [1] - There is a noted softness in discretionary spending affecting the company's performance [1]

Welcome back everybody. Time to bring in our next guest, Senator Elizabeth Warren, who is the lead Democrat on the banking committee. And Senator Warren, thank you for being with us this morning.Um, from your position on the banking committee, thought we might start with the Federal Reserve, what you thought about what happened yesterday, and maybe more importantly, what you think about this overall conversation about who will take over the Federal Reserve next, who the next chairman will be. I I know in th ...

U.S. imports and exports ticked up from lows the previous month when the president's global tariffs went into effect, while the trade deficit continued to fall ...

Tariffs reduced the federal deficit and smacked the US economy with a deflationary force that was needed.The critics will never admit it, but the tariffs have been a very good economic policy decision regardless of your politics. ...

Roger, settle this for us. Was it hawkish. Was it doubbish.The fact that they're going to buy bonds on the short end, does that have the same impact uh as it just a deeper cut. No, I I think they're trying to avoid sending the message that the buying bonds on the short end had anything to do with monetary policy. Um was it hawkish. Was it dovish.I'd have to say it was uh distinctly undecided. You know, as you point out, there were three descents. One in favor of more uh reductions, two in favor of holding.a ...

The Indian rupee fell to a new record low, pressured by outflows from the nation’s stocks and bonds on delays in securing a deal with the US to cut tariffs https://t.co/gom2xa3tfq ...

Economic Outlook - The American economy is not overheating, and there are no immediate signs of a hot economy that would lead to significant inflation [1][2] - The Employment Cost Index (ECI) report suggests that inflation is not being driven by a tight labor market [2][3] Federal Reserve Actions - The Federal Reserve announced a mild quantitative easing (QE) program, starting with Treasury bill purchases, which was above market expectations [3][4] - There is a shift from quantitative tightening (QT) to QE, indicating a more accommodative monetary policy [4][11] Inflation and Tariffs - Powell indicated that the effects of tariffs on inflation are temporary, and if no new tariffs are imposed, inflation could decrease in the latter half of next year [5][8] - The recognition that tariff impacts are one-time increases rather than ongoing inflationary pressures is seen as a positive development [10] Employment Data - Powell suggested that payroll numbers may be revised to show slight negative growth, which aligns with recent ADP data [11][12] - The discussions within the Fed are characterized as thoughtful and respectful, reflecting a range of opinions on monetary policy direction [18] Corporate Engagement - President Trump is engaging with CEOs from major companies like IBM and Qualcomm to discuss the impact of AI on the economy, which Powell acknowledged as beneficial [13]

Trade Policy - Mexico approves tariffs up to 50% on goods from China and other countries [1]

It wasn't long before the entire event, well, kind of went off the rails as Trump went back to an old talking point. Americans should make do with less. >> You know, you can give up certain products. Uh you can give up pencils because under the China policy, you know, every child can get 37 pencils.They only need one or two. You know, they don't need that many. But, uh you always need you always need steel.You don't need $37 for your daughter. Two or three is nice, but you don't need 37 dolls. >> Joining us ...

Financial Data and Key Metrics Changes - In Q3 fiscal 2025, consolidated net sales were $307 million, slightly down from $308 million in Q3 fiscal 2024, within the guidance range of $295 million to $310 million [22] - Adjusted gross margin contracted by 200 basis points to 61%, primarily due to increased cost of goods sold from tariffs and a change in sales mix [24] - Adjusted SG&A expenses increased by 4% to $209 million compared to $201 million last year, leading to an adjusted operating loss of $18 million, or a negative 5.8% operating margin [25][26] - The company ended with an adjusted net loss per share of $0.92, influenced by non-cash impairment charges totaling $61 million related to the Johnny Was trademark [26] Business Line Data and Key Metrics Changes - Lilly Pulitzer experienced strong growth with total sales increasing year-over-year, driven by double-digit growth in retail and high single-digit growth in e-commerce [23] - The Emerging Brands Group also posted strong year-over-year sales gains, while Tommy Bahama and Johnny Was saw low single-digit negative comps [23][24] - Tommy Bahama's comps improved sequentially to down low single digits from down high single digits earlier in the year, indicating progress in addressing earlier weaknesses [8] Market Data and Key Metrics Changes - The overall retail environment remained highly competitive and promotional, with consumers showing heightened sensitivity to value [4][12] - The holiday selling period has been more promotional than the previous year, contributing to a slower start for the company [12][14] - The Emerging Brands Group, including Southern Tide and Duck Head, showed strong momentum, benefiting from loyal customer bases and focused product stories [17] Company Strategy and Development Direction - The company is focused on improving profitability and has begun implementing cost reduction initiatives, including efforts around indirect spend and SG&A efficiencies [19][20] - A new state-of-the-art fulfillment center is under construction, expected to enhance direct-to-consumer capabilities [7] - The company aims to refine its sourcing strategies to mitigate tariff impacts and improve product assortments for future seasons [20][19] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by tariffs and a competitive promotional environment, but expressed confidence in the long-term potential of the brands [18][19] - The company expects fourth-quarter performance to land below previous guidance due to a slower start to the holiday season [18] - Management remains focused on delivering fresh, differentiated products that align with brand heritage to meet consumer expectations [17][19] Other Important Information - The company anticipates a net tariff impact of approximately $25 million to $30 million for fiscal 2025, significantly affecting margins [30] - Capital expenditures are expected to decline significantly as the new fulfillment center is completed, allowing for reduced debt levels [20][28] Q&A Session Summary Question: How meaningful would the assortment gap be for the upcoming season? - Management indicated that the assortment issues were primarily related to current inventory and that future assortments would not face the same challenges due to improved tariff conditions [41][43] Question: What is the current promotional intensity in the marketplace? - Management noted that promotional intensity remains high but is expected to be responsive to market conditions while maintaining brand integrity [45][46] Question: Can you elaborate on the wholesale situation? - Management acknowledged cautious behavior from wholesale partners and indicated a strategic plan to manage inventory levels effectively [54][56] Question: What are the plans for price increases in spring 2026? - Management indicated that price increases would range from 4% to 8% to offset tariff impacts, with a focus on mitigating dollar impacts rather than percentage impacts [82]