Financial Data and Key Metrics Changes - The company has updated its guidance to account for 30% tariffs in China and 20% for the rest of the world, estimating a net impact of about $100 million for fiscal year 2025, which includes $70 million from mitigation efforts this year [35][36] - The company reported a comp sales growth of about 22% last quarter, indicating strong performance in the international market [34] Business Line Data and Key Metrics Changes - The bra business is central to the company's strategy, with a reestablished innovation pipeline and dedicated teams focusing on bra expertise, leading to a significant increase in market share [11][13] - The beauty segment is described as a "secret assassin," with less than 40% of the customer file currently shopping beauty, indicating substantial growth potential [21][22] - The PINK brand is being repositioned to regain its former size, with a focus on marketing and brand differentiation [15][16] Market Data and Key Metrics Changes - The company is acquiring a younger customer demographic, particularly through collaborations like LoveShackFancy, which is expected to enhance brand equity [19][20] - The international business has seen strong growth, particularly in China, where the company was the number one brand during a recent TikTok event [33] Company Strategy and Development Direction - The company is focused on two distinct growth brands, emphasizing creativity, customer focus, and technology [6][7] - The strategy includes evolving the brand projection and go-to-market approach, with a new Chief Marketing and Customer Officer to differentiate the Victoria's Secret and PINK brands [23][25] - The company aims to convert about 50% of its global footprint to the "store of the future" concept by the end of 2027, which has shown to increase sales significantly [27][28] Management's Comments on Operating Environment and Future Outlook - Management describes the current consumer state as strong, with a focus on creating emotional connections through product execution and modern marketing strategies [30] - The company is optimistic about returning to historical margin levels by finding efficiencies in non-customer-facing areas and optimizing the supply chain [46][47] Other Important Information - The company is implementing a new 26-week production calendar to enhance agility in product development, particularly for PINK apparel [41][43] - The company is strategically evaluating pricing and promotions to mitigate tariff impacts while maintaining customer engagement [35][37] Q&A Session Summary Question: What changes should we expect in the bra business go-to-market strategy? - The company has reestablished a deeper innovation pipeline and dedicated teams focusing on bra expertise, leading to a significant increase in market share [11][12] Question: What excites you about the PINK brand? - The PINK brand has the potential to regain its former size, with a clear path to address past dilution and a focus on lifestyle branding [15][16] Question: How is the beauty business performing? - The beauty segment is a powerful growth area, with significant opportunities to increase customer engagement and market share [21][22] Question: What is the company's strategy for the store of the future? - The company plans to convert 50% of its global footprint to the store of the future concept by 2027, which has shown to increase sales [27][28] Question: How is the company addressing tariff impacts? - The company has updated its guidance to account for tariffs and is focusing on sourcing diversification and reducing promotional activities to mitigate impacts [35][36]