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Tariff Impact & Pricing Strategies - Luxury brands experienced price increases of 40-50% during COVID, raising concerns about consumer tolerance for further price hikes due to tariffs [2] - Retailers are employing a two-pronged strategy: reducing promotions and selectively increasing prices on products not directly affected by tariffs [3] Retailer Margins & Promotions - The majority of surveyed companies (approximately 70) are currently promoting less year-over-year, which is helping them maintain gross margins [4] - While some price increases are observed, the primary concern revolves around the potential impact on demand [5] Disruptions in Distribution Channels - Foot Locker's aggressive discounting (e g, 20% off everything in July) is negatively impacting direct-to-consumer (DTC) brands [6] - Foot Locker's promotional activities are creating a ripple effect in the market, potentially harming relationships with brands that also sell directly to consumers at full price [7]

Joining me now to discuss the print is Morgan Stanley's Eric Woodring. Eric, uh, great to have you on. I I, you know, I wonder if first of all, you just give me your your sense of, uh, of why the stock is reacting.Obviously, it's a sloppy tape, but if there's something your clients are are suggesting, gave them pause. Sure. Hey, Mike, thank you for uh for having me on.So, if we take a step back, I actually thought this was one of Apple's more impressive uh earnings prints in quite some time. uh you got upsi ...

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