Financial Data and Key Metrics Changes - The company reported record fourth quarter earnings of CAD 5.4 billion and adjusted earnings of over CAD 5.5 billion, marking a strong year-end performance [4] - Return on equity (ROE) for the quarter was 16.8%, supported by a Common Equity Tier 1 (CET1) ratio of 13.5%, which increased by 30 basis points from the previous quarter [4][9] - Diluted earnings per share (EPS) was CAD 3.76, with adjusted diluted EPS up 25% year-over-year to CAD 3.85 [9] Business Line Data and Key Metrics Changes - Personal Banking reported earnings of CAD 1.9 billion, with net income up 20% year-over-year, driven by a 13% increase in net interest income [11] - Commercial Banking net income was CAD 810 million, up 5% from last year, with loans and deposits increasing by 5% and 3% respectively [13] - Wealth Management net income rose 33% to CAD 1.3 billion, supported by record revenue and a 14% increase in non-interest income [14] - Capital Markets net income increased 45% to CAD 1.4 billion, with record fourth quarter revenue of CAD 3.6 billion [15] Market Data and Key Metrics Changes - Canadian banking net interest margin (NIM) increased by five basis points from the previous quarter, benefiting from a favorable shift in product mix and long-term interest rates [10] - The Canadian economy is expected to maintain resilience, with solid consumer spending and ongoing infrastructure investments anticipated to stimulate growth [6][8] Company Strategy and Development Direction - The company aims to increase its return on equity target from 16%+ to 17%+ as part of its medium-term objectives [5][38] - Strategic focus includes leveraging artificial intelligence capabilities to enhance operational efficiency and client service [35][36] - The integration of HSBC Bank Canada is expected to exceed initial cost synergy targets, with a focus on cross-selling and enhancing client relationships [34] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the Canadian economy, highlighting the importance of resolving trade negotiations and the impact of fiscal policies [6][8] - The company anticipates continued stabilization in the Canadian economy, supported by government fiscal measures and recent rate cuts [21][28] - There is recognition of the K-shaped economic recovery, with affluent consumers investing more while less affluent consumers face affordability challenges [7] Other Important Information - The company returned CAD 1 billion to shareholders through share buybacks and increased dividends by CAD 0.10, or 6% [4][10] - The effective tax rate for the quarter was 20.4%, down approximately one percentage point from the previous quarter [11] Q&A Session Summary Question: Is the bank over-earning on ROE in any part of the business? - Management indicated that the current ROE of 17.2% is already differentiated from peers, and while it could potentially exceed 18%, the focus remains on balanced growth and prudent risk management [55][56] Question: How significant is clarity on CUSMA for business investment? - Management acknowledged significant uncertainty remains regarding CUSMA, impacting business investment and capital expenditures, with a cautious outlook for the first half of 2026 [60][62] Question: What happens if CUSMA is not extended? - Management stated that reserves have been built up in anticipation of potential negative outcomes from CUSMA negotiations, allowing for flexibility in future provisions [66][67]

Dollar Tree (NasdaqGS:DLTR) Q3 2026 Earnings Call December 03, 2025 08:00 AM ET Company ParticipantsRobert LaFleur - SVP of Investor RelationsJohn Heinbockel - Managing DirectorMike Creedon - CEOJoe Feldman - Senior Managing Director and Assistant Director of ResearchStewart Glendinning - CFOEdward Kelly - Managing DirectorPaul Lejuez - Managing DirectorConference Call ParticipantsRobbie Ohmes - Senior Research AnalystZhihan Ma - Senior Research AnalystRupesh Parikh - Managing Director and Senior AnalystMic ...

Dollar Tree (NasdaqGS:DLTR) Q3 2026 Earnings Call December 03, 2025 08:00 AM ET Company ParticipantsRobert LaFleur - SVP of Investor RelationsMichael Creedon - CEOJohn Heinbockel - Managing DirectorJoe Feldman - Senior Managing Director and Assistant Director of ResearchStewart Glendinning - CFOEdward Kelly - Managing DirectorPaul Lejuez - Managing DirectorConference Call ParticipantsRobbie Ohmes - Senior Research AnalystZhihan Ma - Senior Research AnalystRupesh Parikh - Managing Director and Senior Analyst ...

Financial Data and Key Metrics Changes - Macy's Inc reported net sales of $4.7 billion, a decrease of 0.6% year-over-year, primarily due to the closure of 64 non-Go-Forward stores, which contributed approximately $160 million to sales in the previous year [23][24] - Comparable sales increased by 3.2%, marking the strongest growth in 13 quarters, with Go-Forward comparable sales up 3.4% [22][23] - Adjusted EPS was $0.09, significantly above the guidance range of a loss of $0.15-$0.20 and higher than last year's $0.04 [7][27] - Core adjusted EBITDA was $273 million, or 5.6% of total revenue, exceeding guidance of 3.3%-3.7% [27][35] Business Line Data and Key Metrics Changes - Macy's nameplate achieved 2% comparable sales growth, while Go-Forward Macy's saw a 2.3% increase, and Reimagined 125 stores rose by 2.7% [8][23] - Bloomingdale's reported a 9% increase in comparable sales, its best performance in 13 quarters, with net sales rising by 8.6% [15][24] - Bluemercury experienced a 1.1% increase in comparable sales, driven by dermatological skincare and expanded brand partnerships [19][24] Market Data and Key Metrics Changes - The retail landscape is evolving, with consumers becoming more discerning in their spending habits, seeking curated product assortments and seamless omnichannel experiences [8][20] - Macy's Thanksgiving Day Parade attracted over 34 million viewers, setting a new record and highlighting the company's strong brand presence [12][13] Company Strategy and Development Direction - The company is focused on its "Bold New Chapter" strategy, which includes strengthening the Macy's nameplate, differentiating luxury offerings, and modernizing operations [5][8] - Macy's aims to enhance customer experience through improved product curation and operational efficiency, with a strong emphasis on omnichannel retailing [8][11] - The company is committed to closing underperforming stores while investing in growth areas to drive sustainable profitability [27][35] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of its middle to upper-income customer base and the effectiveness of its inventory and marketing strategies [20][66] - The company anticipates a strong holiday season, supported by a compelling mix of categories and brands, despite a cautious outlook on consumer behavior [30][31] - Management acknowledged the ongoing impact of tariffs but emphasized proactive mitigation efforts to minimize their effects on margins [49][50] Other Important Information - The company opened a new distribution center in China Grove, North Carolina, which incorporates automation and AI to enhance delivery efficiency [19][29] - Macy's returned $350 million to shareholders through dividends and share repurchases, with approximately $1.2 billion remaining on its buyback authorization [28][29] Q&A Session Summary Question: Can you speak to traction with reimagined store initiatives and November comp trends? - Management noted positive growth in reimagined stores, with consistent traffic and improved average unit retail (AUR) [40][41] Question: What are the key drivers for sustaining momentum into 2026? - Key drivers include product assortment, omnichannel balance, and shedding underperforming stores, with a focus on mitigating tariff impacts [44][46] Question: How confident is the company in the consumer outlook compared to 90 days ago? - Management expressed increased confidence in strategy execution and inventory quality, despite a cautious approach to guidance [66][67] Question: Can you elaborate on pricing increases and consumer response? - Pricing on new products has had little impact on consumer spending, with strong demand across various price points [82][84] Question: How is the credit business trending? - The credit business has seen a significant increase in applications and revenue, indicating strong customer engagement [85][86] Question: What is the status of the store closure program? - The company closed 64 stores last year and remains committed to optimizing its store fleet, with updates expected in the fourth quarter [91][92]

Financial Data and Key Metrics Changes - The company reported record fourth quarter earnings of CAD 5.4 billion and adjusted earnings of over CAD 5.5 billion, achieving a return on equity of 16.8% for the quarter [4] - The diluted earnings per share were CAD 3.76, with adjusted diluted earnings per share of CAD 3.85, reflecting a 25% increase from the previous year [9] - The Common Equity Tier 1 (CT1) ratio was 13.5%, up 30 basis points from the last quarter, indicating strong internal capital generation [10] Business Line Data and Key Metrics Changes - Personal Banking reported earnings of CAD 1.9 billion, with net income up 20% year-over-year, driven by a 13% increase in net interest income [11] - Commercial Banking net income was CAD 810 million, up 5% from last year, with loans and deposits increasing by 5% and 3% respectively [13] - Wealth Management net income rose 33% to CAD 1.3 billion, supported by record revenue and a 17% increase in assets under management [14] - Capital Markets net income increased 45% to CAD 1.4 billion, with record fourth quarter revenue of CAD 3.6 billion [15] Market Data and Key Metrics Changes - Canadian banking net interest margin increased by five basis points from the last quarter, benefiting from a favorable shift in product mix [10] - The Canadian economy is expected to maintain resilience, with solid consumer spending and ongoing infrastructure investments [7][8] Company Strategy and Development Direction - The company aims to increase its return on equity target from 16% to 17% plus, reflecting improved cost efficiencies and revenue productivity [5][39] - The integration of HSBC Bank Canada is expected to exceed initial cost synergy targets, with a focus on cross-selling and enhancing client relationships [34][35] - Investments in artificial intelligence are anticipated to drive future growth and operational efficiencies [36][37] Management's Comments on Operating Environment and Future Outlook - The management expressed cautious optimism regarding the Canadian economy, highlighting the importance of resolving trade negotiations and the impact of fiscal policies [6][8] - The outlook for 2026 includes expectations for positive operating leverage and mid-single digit growth in net interest income [17][20] Other Important Information - The company returned CAD 1 billion to shareholders through share buybacks and increased its dividend by CAD 0.10, or 6% [4][10] - The effective tax rate for the quarter was 20.4%, down approximately one percentage point from the previous quarter [11] Q&A Session Summary Question: Is the bank over-earning on ROE in any part of the business? - Management indicated that the current ROE of 17.2% is already differentiated from peers, and while it could potentially exceed 18%, the focus remains on balanced growth and prudent risk management [56][57][58] Question: How significant is clarity on CUSMA for business investment? - Management acknowledged significant uncertainty remains regarding CUSMA, impacting business investment and capital expenditures, with a cautious outlook for the first half of 2026 [61][62][63] Question: What is the credit outlook if CUSMA is not extended? - Management stated that reserves have been built up in anticipation of potential negative scenarios, and the outcome of CUSMA negotiations will influence future provisions [66][67][68] Question: Will AI investments impact ROE targets? - Management expressed confidence that advancements in AI could positively influence ROE, potentially allowing for an upward revision of targets in the near term [69][70][71]

Financial Data and Key Metrics Changes - Macy's Inc. reported net sales of $4.7 billion, a decrease of 0.6% year-over-year, attributed to the closure of 64 non-Go Forward stores, which contributed approximately $160 million to sales in the previous year [22][23] - Comparable sales increased by 3.2%, marking the strongest growth in 13 quarters, with Go Forward comparable sales rising by 3.4% [21][22] - Adjusted EPS was $0.09, significantly above the guidance range of a loss of $0.15-$0.20 and higher than last year's $0.04 [7][26] Business Line Data and Key Metrics Changes - Macy's nameplate achieved 2% comparable sales growth, while Go Forward Macy's saw a 2.3% increase, and Reimagined 125 stores reported a 2.7% rise in comparable sales [8][22] - Bloomingdale's experienced a 9% increase in comparable sales, its best performance in 13 quarters, while Bluemercury recorded a 1.1% growth in comparable sales [15][19] Market Data and Key Metrics Changes - The retail landscape is evolving, with consumers becoming more selective in their spending, seeking curated assortments and seamless omnichannel experiences [8][20] - Macy's reported a positive response to improvements in customer experience, reflected in the highest third-quarter Net Promoter Score on record [9] Company Strategy and Development Direction - The company is focused on its "Bold New Chapter" strategy, which includes strengthening the Macy's nameplate, differentiating luxury offerings, and modernizing operations [5][8] - Macy's aims to enhance its product assortment and customer experience, with a commitment to bringing new brands and categories to the forefront [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of their customer base and the effectiveness of their strategies, despite acknowledging a more cautious consumer environment [20][30] - The company anticipates a strong holiday season, supported by a compelling mix of categories and brands, and is optimistic about the fourth quarter performance [29][30] Other Important Information - The company opened a new distribution center in China Grove, North Carolina, which incorporates automation and AI to enhance delivery efficiency [19][28] - Macy's returned $350 million to shareholders through dividends and share repurchases, with approximately $1.2 billion remaining on its buyback authorization [27] Q&A Session Summary Question: Can you speak to traction with reimagined store initiatives and November comp trends? - Management noted positive growth in reimagined stores, with consistent traffic and improved average unit retail (AUR) [38][39] Question: What are the key drivers for sustaining momentum into 2026? - Key drivers include product assortment, omnichannel balance, and shedding underperforming stores, with a focus on mitigating tariff impacts [42][44] Question: How confident is the company in the consumer outlook compared to 90 days ago? - Management expressed increased confidence in their strategy and performance, despite a cautious approach to guidance [63][64] Question: Can you elaborate on pricing increases and consumer response? - Pricing on new products has had little impact on consumer appetite, with strong promotional strategies in place [80][81] Question: What is the status of the store closure program? - The company closed 64 stores last year and remains committed to optimizing its store fleet, with further details expected in the fourth quarter call [89]

Financial Data and Key Metrics Changes - Q3 net sales increased by 9.4% to $4.7 billion, with comparable sales rising by 4.2%, driven primarily by ticket growth as traffic was slightly negative [22][23] - Adjusted EPS was $1.21, reflecting a 12% increase compared to the previous year, and was above expectations [22][27] - Gross margin expanded by 40 basis points to 35%, supported by improved merchandise margin and operational execution [23][24] Business Line Data and Key Metrics Changes - Discretionary sales mix improved by 40 basis points to 50.5%, with comparable sales increasing by 4.8% in discretionary items and 3.5% in consumables [11][23] - Halloween sales generated over $200 million, marking an all-time record, with multi-price items significantly contributing to profitability [13][14] Market Data and Key Metrics Changes - The company attracted three million more households in Q3 compared to the previous year, with 60% of new shoppers coming from higher-income households [8][9] - Average spend for lower-income households grew more than twice as fast as that for higher-income households, indicating a broad-based spending growth across all income sub-cohorts [9][10] Company Strategy and Development Direction - The company is focused on a multi-price strategy, which has been a key driver of growth and profitability, allowing for a more relevant and flexible assortment [12][15] - Strategic priorities include expanding the product assortment, managing expenses, enhancing customer connections, and improving store conditions [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's direction, highlighting strong execution and cultural improvements post-Family Dollar sale [19][22] - The outlook for Q4 anticipates comparable sales growth between 4% and 6%, with adjusted EPS expected to be in the range of $2.40 to $2.60 [30][31] Other Important Information - Inventory decreased by $143 million, or 5%, while the store count increased by 4.5%, reflecting efforts to improve inventory turns [27] - The company repurchased 4.1 million shares for $399 million in Q3, with a total of $1.5 billion in share repurchases year-to-date [29] Q&A Session Summary Question: Drivers of same-store sales acceleration in October - Management noted that Halloween sales significantly contributed to the acceleration, with a strong finish to the quarter [35][36] Question: Gross margin expansion opportunities in Q4 - Management indicated that similar drivers from Q3 would continue to support gross margin expansion in Q4, with freight and markdowns being key areas to monitor for next year [36][38] Question: Impact of negative traffic on pricing changes - Management clarified that the traffic decline was due to internal activities like restickering and broader retail trends, not customer pushback [40][41] Question: Space allocation and replanogramming stores - Management emphasized that they would continue to follow customer preferences and adjust store layouts accordingly to enhance productivity [42][43] Question: Mix of multi-price offerings for next year - Management stated that 85% of the store is still priced at $2 or less, indicating that there is room for growth in the multi-price assortment [45][46] Question: Thanksgiving weekend traffic and sales - Management reported strong sales and positive sentiment heading into the Thanksgiving season, with confidence in the fourth quarter outlook [47][48] Question: Pricing related to tariff risks - Management indicated that pricing strategies have been effective, and they are prepared to respond to any potential tariff relief [49][50] Question: Customer frequency and loyalty - Management highlighted the importance of a relevant assortment and improved store standards to encourage higher frequency visits from customers [60][61] Question: Market share trends in consumables - Management acknowledged a shift in market share but noted improving customer sentiment post-restickering, indicating a recovery in performance [59][60]

Financial Data and Key Metrics Changes - Macy's Inc. reported net sales of $4.7 billion, a decrease of 0.6% year-over-year, attributed to the closure of 64 non-Go Forward stores, which contributed approximately $160 million to sales in the previous year [22][23] - Comparable sales increased by 3.2%, marking the strongest growth in 13 quarters, with Go Forward comparable sales rising by 3.4% [21][22] - Adjusted EPS was $0.09, significantly above the guidance range of a loss of $0.15-$0.20 and higher than last year's $0.04 [6][25] Business Line Data and Key Metrics Changes - Macy's nameplate achieved 2% comparable sales growth, while Go Forward Macy's saw a 2.3% increase, and Reimagined 125 locations reported a 2.7% rise in comparable sales [8][22] - Bloomingdale's experienced a 9% increase in comparable sales, its best performance in 13 quarters, while Bluemercury recorded a 1.1% growth in comparable sales [15][18] Market Data and Key Metrics Changes - The retail landscape is evolving, with consumers becoming more selective in their spending, seeking curated assortments and seamless omnichannel experiences [7][8] - Macy's reported a positive response to improvements in customer experience, reflected in the highest third-quarter Net Promoter Score on record [9] Company Strategy and Development Direction - The company is focused on its "Bold New Chapter" strategy, which includes strengthening the Macy's nameplate, differentiating luxury offerings, and modernizing operations [5][8] - Macy's is enhancing its product curation and customer experience, aiming to attract a broader customer base and improve store performance [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of its middle to upper-income customer base and noted strong visibility on controllable factors such as inventory discipline and improved customer experiences [19][20] - The company anticipates a strong holiday season, supported by effective marketing campaigns and a compelling mix of products [29][30] Other Important Information - The company opened a new distribution center in China Grove, North Carolina, which incorporates automation and AI to enhance delivery efficiency [18][28] - Macy's plans to return $350 million to shareholders through dividends and share repurchases, with approximately $1.2 billion remaining on its buyback authorization [26][27] Q&A Session Summary Question: Can you speak to traction with reimagined store initiatives? - Management noted positive growth in Reimagined 125 locations, with consistent traffic and improved average unit retail (AUR) [35] Question: What are the key drivers for sustaining momentum into 2026? - Key drivers include a diverse product assortment, a balanced omnichannel approach, and shedding underperforming stores [37][39] Question: How confident is the company in the consumer outlook compared to 90 days ago? - Management expressed increased confidence in strategy execution and inventory quality, despite a more cautious guidance approach [46][47] Question: Can you elaborate on pricing increases and consumer response? - Pricing on new products has had little impact on consumer appetite, with strong sales performance expected [52][53] Question: What is the status of the store closure program? - The company closed 64 stores last year and remains committed to optimizing its store fleet, with further details to be provided in the next call [56][57]

Financial Data and Key Metrics Changes - The company reported record fourth quarter earnings of CAD 5.4 billion and adjusted earnings of over CAD 5.5 billion, marking a strong close to a record year [3][4] - Return on equity (ROE) for the quarter was 16.8%, supported by a Common Equity Tier 1 (CT1) ratio of 13.5%, which increased by 30 basis points from the previous quarter [3][8] - Diluted earnings per share were CAD 3.76, with adjusted diluted earnings per share up 25% year-over-year to CAD 3.85 [8][10] Business Line Data and Key Metrics Changes - Personal Banking reported earnings of CAD 1.9 billion, with net income up 20% year-over-year, driven by a 13% increase in net interest income [10][11] - Commercial Banking net income was CAD 810 million, up 5% from last year, with loans and deposits increasing by 5% and 3% respectively [11][12] - Wealth Management net income rose 33% year-over-year to CAD 1.3 billion, supported by a 14% increase in non-interest income and a 17% increase in assets under management [12][13] - Capital Markets net income increased 45% from last year to CAD 1.4 billion, with record fourth quarter revenue of CAD 3.6 billion [13][14] - Insurance net income decreased by 40% from last year to CAD 98 million, primarily due to unfavorable actuarial updates [15] Market Data and Key Metrics Changes - Canadian banking net interest margin (NIM) increased by five basis points from the previous quarter, benefiting from a favorable product mix and long-term interest rates [9][10] - The Canadian economy is expected to maintain resilience, with solid consumer spending and ongoing infrastructure investments anticipated to stimulate growth [5][6] Company Strategy and Development Direction - The company is increasing its medium-term ROE target from 16% plus to 17% plus, reflecting improved cost efficiencies and revenue productivity [4][36] - The integration of HSBC Bank Canada is expected to exceed initial cost synergy targets, with a focus on cross-selling and enhancing client relationships [31][32] - Investments in artificial intelligence are being prioritized to enhance operational efficiency and client service capabilities [32][33] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the Canadian economy, despite ongoing geopolitical and economic uncertainties [6][26] - The company anticipates continued stabilization in the Canadian economy, supported by fiscal measures and recent rate cuts [20][26] - Credit quality outlook remains flat, with management maintaining a conservative approach to allowances due to unresolved trade issues [26][60] Other Important Information - The company returned CAD 1 billion to shareholders through share buybacks and increased dividends by CAD 0.10, or 6% [3][4] - The effective tax rate for the quarter was 20.4%, down approximately one percentage point from the previous quarter [10] Q&A Session Summary Question: Is the bank over-earning on ROE in any part of the business? - Management indicated that the bank's ROE is already differentiated from peers, targeting 17% plus while balancing growth opportunities [52][53] Question: How significant is clarity on CUSMA for business investment? - Management noted significant uncertainty remains, with businesses hesitant on capital expenditures until trade issues are resolved [56][57] Question: What happens if CUSMA is not extended? - Management stated that reserves have been built up to account for potential increases in losses if trade negotiations do not conclude favorably [58][59] Question: Will AI investments accelerate ROE targets? - Management expressed confidence that generative AI could be a key driver in outperforming the 17% plus ROE target in the future [60][61]

Financial Data and Key Metrics Changes - For the first three quarters of 2025, total revenue reached CNY 2.57 billion, a year-on-year increase of 23.1, while net profit attributable to ordinary shareholders was approximately CNY 410 million, rising 51.9% compared to the same period last year [1] - In Q3, total revenue was CNY 975 million, marking a year-on-year growth of 38.4, with operating profit nearly CNY 114 million, a substantial year-on-year increase of 329.8% [21][24] - Net profit attributable to ordinary shareholders in Q3 reached CNY 158 million, up 60.1% year-on-year [24] Business Segment Data and Key Metrics Changes - The insurtech business generated an operating profit of about CNY 180 million in Q3, a year-on-year increase of 44.3% [1] - Insurance-related revenue reached about CNY 870 million, increasing by 44.8% year-on-year and 17.8% quarter-on-quarter [7] - Profiling service fees stood at around CNY 65.66 million, remaining stable year-on-year, while digital clinical trial solutions contributed over CNY 31.85 million, with a year-on-year increase of 31.3% [22] Market Data and Key Metrics Changes - The medical profiling platform has raised medical campaigns for a cumulative total of 3.61 million patients as of the end of Q3 [2] - The digital clinical trial solution business enrolled over 1,000 patients in a single quarter, demonstrating robust growth momentum [2][17] - The eFind platform extended its collaboration network by partnering with 216 pharmaceutical and contract research organizations [17] Company Strategy and Development Direction - The company is focused on leveraging AI technologies to drive integration and innovation across operations, fueling sustainable long-term growth [5] - Waterdrop C-Point AI was launched as a low-code AI platform to empower employees in building tailored solutions for various tasks [3] - The company is exploring applications of AI in non-insurance areas to support growth [3] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in exceeding full-year revenue and profit guidance, supported by robust business performance [5] - The company emphasized the importance of refined management while achieving scale growth [25] - Management highlighted the ongoing investment in AI and its impact on operational efficiency and decision-making [12][13] Other Important Information - The company completed its fourth cash dividend distribution since IPO, totaling around $10.9 million [5] - By the end of November 2025, approximately 58.1 million ADS had been repurchased in the open market, totaling $113 million [5] - The company updated its ESG measures and released the 2024 annual ESG report, enhancing its governance framework [4] Q&A Session Summary - No specific questions and answers were provided in the content, thus this section is not applicable.