Financial Data and Key Metrics Changes - The company is targeting a 10% operating margin by fiscal 2028 and is trending on plan towards that goal [15] - There has been a decline in revenue, which implies modest revenue growth is needed to return to baseline levels [18] - The company is confident in its ability to offset tariffs by fiscal 2027, with a plan in place to mitigate approximately $60 million in tariff impacts this fiscal year [40][41] Business Line Data and Key Metrics Changes - The company has seen 70% of its portfolio back to growth, excluding the Dickies business [11] - The North Face brand is underdeveloped in the U.S. compared to Europe and APAC, indicating significant growth opportunities [28] - Vans is undergoing a turnaround with new product launches and marketing strategies, although financial outcomes have yet to fully reflect these changes [21][24] Market Data and Key Metrics Changes - The consumer environment is showing mixed signals, with some negative commentary from medium and lower-end consumers, while the U.S. consumer remains "stubbornly positive" overall [12][13] - The company is focusing on the U.S. market for direct-to-consumer sales, which constitutes 70% of its business [25] Company Strategy and Development Direction - The company aims to create a multi-brand organization that leverages best-in-class processes across its brands [5] - There is a strong emphasis on improving operational efficiencies and reducing SG&A costs while maintaining a focus on growth [15][41] - The company is committed to elevating its brands, particularly Timberland and The North Face, to capture more market share and expand product offerings [32][30] Management's Comments on Operating Environment and Future Outlook - Management expresses excitement about the business's potential and the ongoing turnaround efforts, particularly in Vans and Timberland [44][46] - There is a focus on long-term consistent growth rather than short-term fluctuations, with a desire for a steady upward trajectory over the next three to five years [26] Other Important Information - The company is implementing Integrated Business Planning to improve inventory management and reduce markdowns, aiming to use promotions strategically rather than as a regular practice [41] - The company is exploring opportunities to expand its Timberland store footprint in the U.S., which currently has only eight full-price stores [34][36] Q&A Session All Questions and Answers Question: What is the company's strategy for offsetting tariffs by fiscal 2027? - The company has a pricing plan in place and is working with supplier partners to offset tariffs, expecting to be on a run rate to offset all tariffs by fiscal 2027 [39][40] Question: How does the company plan to drive favorable promotions? - The company aims to minimize markdowns and use promotions strategically during key moments, correcting its previous reliance on promotions [41] Question: What is the outlook for cash flow and deleveraging the balance sheet? - The company is confident in its free cash flow growth and plans to continue improving operating income, which will aid in deleveraging the balance sheet [42][43]

Core Points - Cartier, a luxury jewelry brand under Richemont, has confirmed a data breach involving unauthorized access to customer personal information, raising industry concerns [1] - The leaked data includes customer names and birth dates but does not involve sensitive financial information such as bank account or credit card details [1] - The breach affects customers globally, not just in the Chinese market, and comes amid a broader trend of luxury brands facing privacy issues [1][2] Group 1: Data Breach Details - Cartier's official communication revealed that the breach was due to a cyber attack, with affected customer information being accessed [1] - The parent company Richemont has not disclosed the number of affected users or provided an official statement regarding the incident [1] - Similar incidents have occurred with other luxury brands, including Dior and Adidas, highlighting a growing trend of data breaches in the luxury sector [2][3] Group 2: Financial Performance - Richemont reported a 4% year-on-year sales increase to €21.399 billion for the fiscal year ending March 31, 2025, with all regions except Asia-Pacific showing double-digit growth [1] - The jewelry division, which includes Cartier, experienced an 8% sales increase to €15.33 billion, with Cartier contributing over half of Richemont's sales revenue and more than 70% of its profits [1] Group 3: Legal and Regulatory Implications - Legal experts indicate that brands may face strict liability for data breaches under current laws, emphasizing the need for compliance with data protection regulations [4][5] - Brands are responsible for ensuring the security of customer data, even when third-party vendors are involved, and cannot use third-party negligence as a defense [5] Group 4: Recommendations for Brands - Brands should establish a comprehensive data security framework, focusing on third-party risk management and regular audits of suppliers [7] - Immediate notification to affected customers and offering services like free credit monitoring are recommended actions following a data breach [7]