Q3 Fiscal 2026 Results - Net sales revenue decreased by 34% from $5307 million in Q3 FY25 to $5128 million in Q3 FY26[16] - Organic net sales decreased by 108% with 33% or $173 million of the decline due to tariff-related revenue disruptions[17] - Gross margin decreased by 200 basis points from 489% in Q3 FY25 to 469% in Q3 FY26 primarily due to higher tariffs and less favorable inventory obsolescence[16, 17] - Adjusted EBITDA margin decreased by 350 basis points from 182% in Q3 FY25 to 147% in Q3 FY26 primarily due to lower gross profit margin and a higher SG&A rate[16, 17] - Adjusted diluted EPS decreased from $267 in Q3 FY25 to $171 in Q3 FY26 primarily due to lower adjusted operating income and higher interest expense[16, 17] - Free cash flow decreased from $561 million YTD FY25 to $288 million YTD FY26[16] Tariff Mitigation and Outlook - The company expects to reduce the remaining unmitigated tariff impact to less than $30 million in Fiscal 2026[30] - The company is implementing a dual sourcing strategy to lessen exposure to China manufacturing with a goal of 40% dual sourcing by the end of FY26 and 60% by the end of FY27[30, 33] - The company anticipates consolidated net sales of $1758 to $1773 billion for the full year Fiscal 2026[36] - The company projects adjusted diluted EPS of $325 to $375 for the full year Fiscal 2026[36]