Pricing Strategy - The company has implemented some price increases, determined through elasticity modeling [1] - New product introductions and innovation provide opportunities for strategic pricing adjustments [1] - Pricing adjustments are not across the board but are strategically implemented where opportunities are identified [1] Tariff Impact - Tariffs are a factor influencing apparel pricing [1] - The company is monitoring the situation and will continue to adjust pricing as needed [1]

Tariff Impact & Price Increases - Tariffs take time to impact end consumers due to distribution chain delays [1] - Price increases in categories like personal computers and audiovisual equipment are attributed to tariffs [2] - Many companies expect to pass some or all tariff costs to the next party in the chain, ultimately the consumer [2] Supply Chain & Cost Absorption - The supply chain involves manufacturers, exporters, importers, retailers, and consumers, each trying to avoid paying the tariff [3] - It's difficult to predict how the tariff burden will be distributed among the parties in the chain [3] Data & Economic Outlook - More actual data is needed to make better decisions regarding tariffs [4] - The economy remains in solid condition, allowing time to learn more about tariff impacts [4]

Inflation Trends - Core services inflation, including housing and non-housing, is trending towards levels consistent with 2% inflation [1] - Goods inflation has slightly increased, and further increases are expected over the summer due to tariffs [2] - Tariff effects on consumer prices are beginning to be observed, particularly in categories like personal computers and audiovisual equipment [3] Tariff Impact & Uncertainty - Companies anticipate passing some or all tariff costs to consumers [4] - The magnitude, duration, and timing of tariff effects remain highly uncertain [4] - The industry believes a cautious approach is appropriate while further information on tariff impacts is gathered [4] Monetary Policy & Inflation Expectations - The industry expects inflation to rise and then decline, but this is not guaranteed [5] - A key objective is to prevent a one-time inflation increase from becoming a broader inflation problem [5] - Maintaining anchored inflation expectations is crucial [5]