Financial Data and Key Metrics Changes - The company reported a pro forma revenue increase of 16%, adjusted operating margin expansion of 200 basis points, and earnings per share growth of 35% compared to the previous year, all exceeding expectations [5][21]. - The first-quarter gross margin was 76.5%, reflecting a 120 basis points increase year-over-year, driven by operational improvements and the divestiture of Stuart Weitzman [23][24]. Business Line Data and Key Metrics Changes - Coach brand revenue increased by 21%, with North America growing by 26%, China by 21%, and Europe by 39%, indicating strong performance across key markets [8][21]. - Kate Spade's revenue trends improved sequentially, with a decline of 9% in the first quarter, showing signs of recovery in customer acquisition and brand consideration [15][19]. Market Data and Key Metrics Changes - North America sales accelerated by 18%, Europe saw a 32% revenue growth, and Greater China revenue increased by 19%, showcasing strong global momentum [21][22]. - In Japan, sales declined by 10%, reflecting a challenging consumer environment [22]. Company Strategy and Development Direction - The company is focused on its Amplify Growth agenda, emphasizing emotional connections with consumers and targeting Gen Z for customer acquisition [6][19]. - The strategy includes enhancing product innovation, expanding direct-to-consumer channels, and creating immersive retail experiences [12][14]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the sustainability of growth, citing structural advantages and a focus on long-term customer engagement [39][40]. - The company raised its fiscal 2026 outlook, expecting revenue of approximately $7.3 billion, representing pro forma growth of 7%-8% [29][30]. Other Important Information - The company declared a quarterly cash dividend of $0.40 per share and plans to return $1.3 billion to shareholders through dividends and share repurchases [25][26]. - Inventory levels were reported to be 1% below the prior year, indicating effective inventory management as the holiday season approaches [28]. Q&A Session Summary Question: Drivers of accelerated growth and sustainability - Management highlighted structural advantages and a focus on acquiring new customers, particularly Gen Z, as key drivers of growth sustainability [39][40]. Question: Breakdown of Coach's revenue growth - The significant growth in Coach was attributed to new customer acquisition, increased average unit retail (AUR), and geographic expansion [48][49]. Question: Gross margin expectations - Management confirmed that gross margin guidance remains unchanged, with confidence in managing tariff impacts and maintaining profitability [58][59]. Question: European market penetration - The company noted a positive inflection in Europe, driven by effective marketing and customer acquisition strategies [69][70]. Question: Kate Spade's merchandise margin progress - Management acknowledged ongoing efforts to reduce discounting at Kate Spade, which is expected to support long-term growth despite current margin pressures [71][72].