Positive Growth in U.S. Retail and International Segments
Net sales in U.S. Retail grew by 3% in the third quarter with a positive 2% total Retail comp. International sales were up 5%, with strong performance in Mexico achieving a 16% comp.
Improvements in Inventory and Product Assortments
Entered the third quarter with less carryover of prior season goods, leading to better performance of new seasonal products. The inventory quality was high with excess inventory down meaningfully versus last year.
Consumer Acceptance of Higher Prices
Mid-single-digit increase in Average Unit Retail (AUR) prices in U.S. Retail, with an increase in average transaction values. Consumers responded well to the higher prices.
Cost Savings and Efficiency Measures
Identified $45 million in gross savings for 2026, with a plan to reduce office-based roles by 15% to save approximately $35 million.