Earnings MomentumAnalysts anticipate further deceleration in earnings momentum, with comparable sales ranging between -2% and +1%, and increased investments in selling, general, and administrative expenses driving a contraction in adjusted operating income margin.
Future Sales VisibilityLimited visibility into future comparable sales and rising investments in selling, general, and administrative expenses to support new store growth and eCommerce keep analysts on the sidelines.
Margin PressureThe gross margin decline of approximately 100 basis points year-over-year pressured adjusted operating income to $161 million, which was 7% below consensus expectations.