Q3 2026 Signet Jewelers Ltd Earnings Call

Speaker #1: Good

Speaker #1: Good morning and welcome to the Signet Jewelers 3rd Quarter Fiscal 2026 Earnings Call. Please note, this event is being recorded. Joining us on the call today are Rob Ballew, Senior Vice President of Investor Relations and Capital Markets.

Operator: Good morning and welcome to the Signet Jewelers Q3, F2 2026 earnings call. Please note this event is being recorded. Joining us on the call today are Rob Ballew, Senior Vice President of Investor Relations and Capital Markets, J.K. Symancyk, Chief Executive Officer, and Joan Hilson, Chief Operating and Financial Officer. At this time, I would like to turn the conference over to Rob. Please go ahead.

Speaker #1: Jay K. Symancyk, Chief Executive Officer. Joan Hilson, Chief Operating and Financial Officer. At this time, I would like to turn the conference over to Rob.

Speaker 4: Good morning. Welcome to Signet Jewelers Q3 F2026 earnings conference call. During today's discussion, we will make certain forward-looking statements. Any statements that are not historical facts are subject to a number of risks and uncertainties. Actual results may differ materially. We urge you to read the risk factors, cautionary language, and other disclosures in the annual report on Form 10-K, quarterly reports on Form 10-Q, and current reports on Form 8-K. Except as required by law, we undertake no obligation to revise or publicly update forward-looking statements in light of new information or future events. During the call, we will discuss certain non-GAAP financial measures. For further discussion of the non-GAAP financial measures, as well as the reconciliation of the non-GAAP financial measures to the most directly comparable GAAP measures, investors should review the news release we posted on our website at ira.signetjewelers.com.

Rob Ballew: Good morning. Welcome to Signet Jewelers Q3 F2026 earnings conference call. During today's discussion, we will make certain forward-looking statements. Any statements that are not historical facts are subject to a number of risks and uncertainties. Actual results may differ materially. We urge you to read the risk factors, cautionary language, and other disclosures in the annual report on Form 10-K, quarterly reports on Form 10-Q, and current reports on Form 8-K.

Speaker #2: Call. During today's discussion, we will make certain forward-looking statements. Any JEWELERS 3rd Quarter Fiscal 2026 Earnings Conference statements that are not historical facts are subject to a number of risk and uncertainties.

Speaker #2: results may differ materially. We

Speaker #2: I urge you to read the risk factors, cautionary language, and other disclosures in the annual report on Form 10-K, quarterly reports on Form 10-Q, and current reports on Form 8-K.

Except as required by law, we undertake no obligation to revise or publicly update forward-looking statements in light of new information or future events. During the call, we will discuss certain non-GAAP financial measures. For further discussion of the non-GAAP financial measures, as well as the reconciliation of the non-GAAP financial measures to the most directly comparable GAAP measures, investors should review the news release we posted on our website at ira.signetjewelers.com. With that, I'll turn the call over to J.K.

Speaker #2: Acceptance required by law, we undertake no obligation to revise or publicly update forward-looking statements in light of new information or future events. During the call, we will discuss certain non-GAAP financial measures.

Speaker #2: For further discussion of the non-GAAP financial measures, as well as the reconciliation of the non-GAAP financial measure to the most directly comparable GAAP measures, investors should review the news release we posted on our website at ir.signetjewellers.com.

Speaker 4: With that, I'll turn the call over to J.K.

Speaker #2: K. With that, I'll turn the call over to Jay.

Speaker #3: Thanks, Rob. And good morning, everyone. I'd like to start the call this morning by thanking our team. Your efforts to date are delivering meaningful progress in this first year of Grow Brand Love while driving near-term momentum in our performance.

Speaker 5: Thanks, Rob. Good morning, everyone. I'd like to start the call this morning by thanking our team. Your efforts to date are delivering meaningful progress to this first year of GroBrandLove while driving near-term momentum in our performance. Thank you for your hard work and commitment to our customers as we enter our critical holiday season. There are three key takeaways I'd like to leave you with today. First, we delivered our third consecutive quarter of positive same-store sales and grew adjusted operating income double Q3 of last year. Second, our efforts to expand merchandise margin are delivering meaningful and sustainable results that have worked to drive operating margin expansion and offset pressure from tariffs and commodity pricing. Third, we believe we're well-positioned for the holiday season with a focused assortment aligned to key categories and price points, supported by a modernized marketing approach.

JK Symancyk: Thanks, Rob. Good morning, everyone. I'd like to start the call this morning by thanking our team. Your efforts to date are delivering meaningful progress to this first year of GroBrandLove while driving near-term momentum in our performance. Thank you for your hard work and commitment to our customers as we enter our critical holiday season. There are three key takeaways I'd like to leave you with today. First, we delivered our third consecutive quarter of positive same-store sales and grew adjusted operating income double Q3 of last year.

Speaker #3: Thank you for your hard work and commitment to our customers as we enter our critical holiday season. There are three key takeaways I'd like to leave you with today.

Speaker #3: First, we delivered our third consecutive quarter of positive same-store sales and grew adjusted operating income double Q3 of last year. Second, our efforts to expand merchandise margin are delivering meaningful and sustainable results that have worked to drive operating margin expansion and offset pressure from tariffs and commodity pricing.

Second, our efforts to expand merchandise margin are delivering meaningful and sustainable results that have worked to drive operating margin expansion and offset pressure from tariffs and commodity pricing. Third, we believe we're well-positioned for the holiday season with a focused assortment aligned to key categories and price points, supported by a modernized marketing approach.

Speaker #3: Third, we believe we're well positioned for the holiday season with a focused assortment aligned to key categories and price points, supported by a modernized marketing approach.

Speaker #3: Turning to the quarter, we delivered 3% same-store sales growth to this time last year. Our three largest brands, K, Zales, and Jared, delivered a combined same-store sales performance of 6% to last year.

Speaker 5: Turning to the quarter, we delivered 3% same-store sales growth to this time last year. Our three largest brands, Kay, Zales, and Jared, delivered a combined same-store sales performance of 6% to last year. That reflects our intentional focus on the core of our business, with growth in both bridal and fashion categories. The results that we delivered this quarter are also a reflection of our brand equity work, assortment strategy, and a refined approach to pricing and promotion. Further, the reorganization under GroBrandLove has empowered brand leaders to act swiftly on decisions that drive brand equity, fueled by a strengthened center of excellence that leverages our scale. Building on that, I'd like to highlight a few of the more significant factors in our Q3 results. Within merchandise, we delivered growth across all categories: bridal, fashion, and watches.

Turning to the quarter, we delivered 3% same-store sales growth to this time last year. Our three largest brands, Kay, Zales, and Jared, delivered a combined same-store sales performance of 6% to last year. That reflects our intentional focus on the core of our business, with growth in both bridal and fashion categories. The results that we delivered this quarter are also a reflection of our brand equity work, assortment strategy, and a refined approach to pricing and promotion.

Speaker #3: That reflects our intentional focus on the core of our business, with growth in both bridal and fashion categories. The results that we delivered this quarter are also a reflection of our brand equity work, assortment strategy, and a refined approach to pricing and promotion.

Further, the reorganization under GroBrandLove has empowered brand leaders to act swiftly on decisions that drive brand equity, fueled by a strengthened center of excellence that leverages our scale. Building on that, I'd like to highlight a few of the more significant factors in our Q3 results. Within merchandise, we delivered growth across all categories: bridal, fashion, and watches.

Speaker #3: Further, the reorganization under Grow Brand Love has empowered brand leaders to act swiftly on decisions that drive brand equity. Fueled by a strengthened center of excellence that leverages our scale.

Speaker #3: Building on that, I'd like to highlight a few of the more significant factors in our Q3 results. Within merchandise, we delivered growth across all categories: bridal, fashion, and watches.

Speaker #3: This assortment architecture and ability to respond to evolving consumer preferences. In bridal, continued focus on differentiated offerings and strategic pricing resonated most for mid-tier consumers, with K, Zales, and Peoples all delivering high single-digit sales growth or better.

Speaker 5: This performance underscores the strength of our assortment architecture and ability to respond to evolving consumer preferences. In bridal, continued focus on differentiated offerings and strategic pricing resonated most for mid-tier consumers, with Kay, Zales, and Peoples all delivering high single-digit sales growth or better. This strong growth was led by long-standing brand collections like Neil Lane, Vera Wang, and Monique Lhuillier. In fashion, Jared delivered 10% comp sales growth, reflecting strong performance in diamond, gold, and men's jewelry, bolstered by strength of recent collections like Italia D'Oro. Alongside that, we continue to see runway in the fashion category, particularly in lab-grown diamonds or LGDs, which expanded penetration to 15% of fashion sales this quarter, roughly double last year's rate. In marketing this quarter, we are making progress on modernizing our playbook.

This performance underscores the strength of our assortment architecture and ability to respond to evolving consumer preferences. In bridal, continued focus on differentiated offerings and strategic pricing resonated most for mid-tier consumers, with Kay, Zales, and Peoples all delivering high single-digit sales growth or better. This strong growth was led by long-standing brand collections like Neil Lane, Vera Wang, and Monique Lhuillier.

Speaker #3: This strong growth was led by long-standing brand collections like Neil Lane, Vera Wang, and Monique Loulié. In fashion, Jared delivered 10% comp sales growth, reflecting strong performance in diamond, gold, and men's jewelry, bolstered by strength of recent collections like Atelier Dioro.

In fashion, Jared delivered 10% comp sales growth, reflecting strong performance in diamond, gold, and men's jewelry, bolstered by strength of recent collections like Italia D'Oro. Alongside that, we continue to see runway in the fashion category, particularly in lab-grown diamonds or LGDs, which expanded penetration to 15% of fashion sales this quarter, roughly double last year's rate. In marketing this quarter, we are making progress on modernizing our playbook.

Speaker #3: that, we continued to see runway in the fashion category, performance underscores the strength of our particularly in lab-grown diamonds or LGDs, which expanded penetration to 15% of fashion sales this quarter, Alongside roughly double last year's rate.

Speaker #3: In marketing this quarter, we are making progress on modernizing our playbook. This includes a more robust full-funnel media strategy, amplified social media and digital-first-led content, as well as brand ambassadors like Antonia Gentry and Chloe Fineman to drive buzzworthy campaigns.

Speaker 5: This includes a more robust full-funnel media strategy, amplified social media, and digital-first-led content, as well as brand ambassadors like Antonia Gentry and Chloe Fineman to drive buzzworthy campaigns. We continue to see double-digit growth in impressions off a low to mid-single-digit increase in spend from this updated approach. At Jared, we're using story-led marketing to drive results. This quarter, Jared launched its Storied Diamond Collection in partnership with De Beers. This collection uses blockchain technology to track a stone's journey from its origin in Botswana all the way to its final setting in Jared's collection. Alongside this, we premiered A Diamond Is Born, a documentary by Academy Award-winning filmmaker Luc Jacquet. This documentary details the diamond's journey as well as the lives that it enhances along the way. We look forward to seeing the impact of this campaign over the holiday, as early results are driving traffic.

This includes a more robust full-funnel media strategy, amplified social media, and digital-first-led content, as well as brand ambassadors like Antonia Gentry and Chloe Fineman to drive buzzworthy campaigns. We continue to see double-digit growth in impressions off a low to mid-single-digit increase in spend from this updated approach. At Jared, we're using story-led marketing to drive results.

Speaker #3: We continue to see double-digit growth in impressions, off a low to mid-single-digit increase in spend from this updated approach. At Jared, we're using story-led marketing to drive results.

This quarter, Jared launched its Storied Diamond Collection in partnership with De Beers. This collection uses blockchain technology to track a stone's journey from its origin in Botswana all the way to its final setting in Jared's collection. Alongside this, we premiered A Diamond Is Born, a documentary by Academy Award-winning filmmaker Luc Jacquet. This documentary details the diamond's journey as well as the lives that it enhances along the way. We look forward to seeing the impact of this campaign over the holiday, as early results are driving traffic.

Speaker #3: This quarter, Jared launched its storied diamond collection in partnership with De Beers. This collection a stone's journey from its origin in uses blockchain technology to track Botswana all the way to its final setting in Jared's collection.

Speaker #3: Alongside this, we premiered "A Diamond is Born," a documentary by Academy Award-winning filmmaker Luke Jacquet. This documentary details the diamond's journey as well as the lives that it enhances along the way.

Speaker #3: We look forward to seeing the impact of this campaign over the holiday as early results are driving traffic. My second key takeaway today relates to our efforts to expand merchandise margin.

Speaker 5: My second key takeaway today relates to our efforts to expand merchandise margin. Year to date, we have delivered 50 basis points on merchandise margin expansion, with 80 basis points for Q3, despite a significant impact from tariffs and increases in gold costs. We have been carefully rolling out a refined pricing and promotion strategy. While this has included select price increases, it's a much more fulsome playbook. We are carefully turning the dials on how many days our brands are on promo, what items are eligible, and depth of discount, particularly during periods where there is no pre-existing consumer expectation for value shopping. Promotion can be an effective traffic driver, but over-reliance on it can impact brand equity, and ultimately leave money on the table. Brand equity also helps drive margin expansion.

My second key takeaway today relates to our efforts to expand merchandise margin. Year to date, we have delivered 50 basis points on merchandise margin expansion, with 80 basis points for Q3, despite a significant impact from tariffs and increases in gold costs. We have been carefully rolling out a refined pricing and promotion strategy. While this has included select price increases, it's a much more fulsome playbook.

Speaker #3: Year to date, we have delivered 50 basis points on merchandise margin expansion, with 80 basis points for Q3, despite a significant impact from tariffs and increases in gold costs.

Speaker #3: We have been carefully rolling out a refined pricing and promotion strategy. While this has included select price increases, it's a much more fulsome playbook.

Speaker #3: We are carefully turning the dials on how many days our brands are on promo, what items are eligible, and depth of discount, particularly during.

We are carefully turning the dials on how many days our brands are on promo, what items are eligible, and depth of discount, particularly during periods where there is no pre-existing consumer expectation for value shopping. Promotion can be an effective traffic driver, but over-reliance on it can impact brand equity, and ultimately leave money on the table. Brand equity also helps drive margin expansion.

Speaker #3: Periods where there is no preexisting consumer expectation for value shopping. Promotion can be an effective traffic driver, but over-reliance on it can impact brand equity and ultimately leave money on the table.

Speaker #3: Brand equity also helps drive margin expansion. Jared is furthest along with its brand identity work and overall pricing and promo strategy, leading to a 25% reduction in discounting compared to Q3 last year.

Speaker 5: Jared is furthest along with its brand identity work and overall pricing and promo strategy, leading to 25% reduced discounting to Q3 last year. Lastly, our high-margin services business is also growing faster than merchandise, and helping expand margins. It's the overall combination of these efforts driving year-to-date results despite pressure from tariffs and notable increases to gold costs. With regards to the current tariff landscape and specifically India, we believe that we have mitigated a majority of the higher rates through strategic sourcing and the merchandise margin actions I've detailed, and will be the same levers we look to as we set our sights on the year ahead. Turning to the holiday season, based on customer insight and preferences, as well as learnings from last holiday, we have taken a decisive inventory position in key gifting items at targeted price points.

Jared is furthest along with its brand identity work and overall pricing and promo strategy, leading to 25% reduced discounting to Q3 last year. Lastly, our high-margin services business is also growing faster than merchandise, and helping expand margins. It's the overall combination of these efforts driving year-to-date results despite pressure from tariffs and notable increases to gold costs.

Speaker #3: Lastly, our high-margin services business is also growing faster than merchandise and helping expand margins. It's the overall combination of these efforts driving year-to-date results, despite pressure from tariffs and notable increases in gold costs.

With regards to the current tariff landscape and specifically India, we believe that we have mitigated a majority of the higher rates through strategic sourcing and the merchandise margin actions I've detailed, and will be the same levers we look to as we set our sights on the year ahead. Turning to the holiday season, based on customer insight and preferences, as well as learnings from last holiday, we have taken a decisive inventory position in key gifting items at targeted price points.

Speaker #3: With regards to the current tariff landscape, and specifically India, we believe that we have mitigated a majority of the higher rates through strategic sourcing and the merchandise margin actions I've detailed. These will be the same levers we look to as we set our sights on the year ahead.

Speaker #3: Turning to the holiday season, based on customer insight and preferences, as well as learnings from last holiday, we have taken a decisive inventory position in key gifting items at targeted price points.

Speaker #3: This strategy includes on-trend categories like LGD fashion, and colored stones, for example, men's fashion, gold jewelry, we've made a material investment in LGD fashion at price points below $1,000 compared to last holiday.

Speaker 5: This strategy includes on-trend categories like LGD fashion, men's fashion, gold jewelry, and colored stones. For example, we've made a material investment in LGD fashion at price points below $1,000 compared to last holiday. We're also being strategic in our marketing spend this holiday. More than 70% of adults now stream as a primary way to watch video, so we continue to rebalance the channels we spend into in order to drive efficient reach. This work will be even more important as we navigate a period of lower US consumer confidence. We've taken action to meet the more pronounced value expectations of consumers this season with a well-balanced assortment and promotional cadence. Delivering on holiday is our highest near-term priority, and our GroBrandLove strategy continues to set the stage for sustainable long-term growth.

This strategy includes on-trend categories like LGD fashion, men's fashion, gold jewelry, and colored stones. For example, we've made a material investment in LGD fashion at price points below $1,000 compared to last holiday. We're also being strategic in our marketing spend this holiday. More than 70% of adults now stream as a primary way to watch video, so we continue to rebalance the channels we spend into in order to drive efficient reach.

Speaker #3: We're also being strategic in our marketing spend this holiday. More than 70% of adults now stream as a primary way to watch video. So we continue to rebalance the channels we spend into in order to drive efficient reach.

This work will be even more important as we navigate a period of lower US consumer confidence. We've taken action to meet the more pronounced value expectations of consumers this season with a well-balanced assortment and promotional cadence. Delivering on holiday is our highest near-term priority, and our GroBrandLove strategy continues to set the stage for sustainable long-term growth.

Speaker #3: This work will be even more important as we navigate a period of lower U.S. consumer confidence. We've taken action to meet the more pronounced value expectations of consumers this season with a well-balanced assortment and promotional cadence.

Speaker #3: Delivering on holiday is our highest near-term priority, and our Grow brand love strategy continues to set the stage for sustainable long-term growth. delivered our third consecutive Summarizing my key takeaways today, first, we quarter of positive same-store sales and grew adjusted operating income double Q3 of last year.

Speaker 5: Summarizing my key takeaways today: first, we delivered our third consecutive quarter of positive same-store sales and grew adjusted operating income double Q3 of last year. Second, our efforts to expand merchandise margin are delivering meaningful and sustainable results that have worked to drive operating margin expansion and offset pressure from tariffs and commodity pricing. Third, we believe we're well-positioned for the holiday season with a focused assortment aligned to key categories and price points, and supported by a modernized marketing approach. With that, I'd like to turn it over to Joan.

Summarizing my key takeaways today: first, we delivered our third consecutive quarter of positive same-store sales and grew adjusted operating income double Q3 of last year. Second, our efforts to expand merchandise margin are delivering meaningful and sustainable results that have worked to drive operating margin expansion and offset pressure from tariffs and commodity pricing. Third, we believe we're well-positioned for the holiday season with a focused assortment aligned to key categories and price points, and supported by a modernized marketing approach. With that, I'd like to turn it over to Joan.

Speaker #3: Second, our efforts to expand merchandise margin are delivering meaningful and sustainable results that have worked to drive operating margin from tariffs and commodity expansion, offsetting pressure pricing.

Speaker #3: Third, we believe we're well-positioned for the holiday season with a focused assortment aligned to key categories and price points, supported by a modernized marketing approach.

Speaker #3: With that, I’d like to turn it over to Joan.

Speaker #2: Thanks, JK, and good morning, everyone. Revenue for the quarter was approximately $1.4 billion with comp growth up 3% to last year. This reflects the expansion of average unit retail of 7%.

Speaker 6: Thanks, JK, and good morning, everyone. Revenue for the quarter was approximately $1.4 billion, with comp growth up 3% to last year. This reflects the expansion of average unit retail of 7%. Unit performance improved sequentially while still down to last year, driven by a better performance at Banter and Zales. Fashion AUR grew 8%, largely on assortment mix to LGD fashion, which carries a higher AUR, as well as higher gold prices. Bridal AUR grew 6% in the quarter, reflecting a growing mix of LGD wedding and anniversary bands, which also carries a higher AUR than other bands. Importantly, services grew high single digits in the quarter, with nearly five consecutive years of positive comps. We saw growth in extended service agreements, or ESAs, which saw attachment rates up over one and a half points in the quarter.

Joan Hilson: Thanks, JK, and good morning, everyone. Revenue for the quarter was approximately $1.4 billion, with comp growth up 3% to last year. This reflects the expansion of average unit retail of 7%. Unit performance improved sequentially while still down to last year, driven by a better performance at Banter and Zales. Fashion AUR grew 8%, largely on assortment mix to LGD fashion, which carries a higher AUR, as well as higher gold prices.

Speaker #2: Unit performance improved sequentially while still down to last year driven and sales. Fashion by a better performance at banter AUR grew 8% largely on assortment mix to LGD fashion, which carries a higher AUR, as well as higher gold prices.

Bridal AUR grew 6% in the quarter, reflecting a growing mix of LGD wedding and anniversary bands, which also carries a higher AUR than other bands. Importantly, services grew high single digits in the quarter, with nearly five consecutive years of positive comps. We saw growth in extended service agreements, or ESAs, which saw attachment rates up over one and a half points in the quarter.

Speaker #2: Quarter, reflecting a growing mix of LGD. Bridal AUR grew 6% in the wedding and anniversary bands, which also carry a higher AUR than other bands.

Speaker #2: Importantly, services grew high single digits in the quarter with nearly five consecutive years of positive comps. We saw growth in extended service agreements, or ESAs, which saw attachment rates up over one and a half points in the quarter.

Speaker #2: This reflects higher attachment online for bridal and higher in-store attachment in fashion. Moving on to gross margin, we delivered a rate expansion of 130 basis points to last year.

Speaker 6: This reflects higher attachment online for bridal and higher in-store attachment in fashion. Moving on to gross margin, we delivered a rate expansion of 130 basis points to last year. This was led by merchandise margin expansion of 80 basis points, which J.K. detailed a moment ago. We also delivered 30 basis points of occupancy leverage, reflecting the efficiency within our operating model to expand margins on a slightly positive comp. Lastly, we drove a 20 basis point improvement from distribution efficiencies, taking advantage of higher gold prices by accelerating scrap recovery, as well as better shrink performance. The SG&A rate for the quarter was nearly flat, despite a 70 basis point impact from higher incentive compensation. Excluding the incentive compensation, SG&A improvement reflects more efficient marketing spend and store labor planning, as well as favorability in transaction fee costs. Adjusted operating income was $32 million for the quarter.

This reflects higher attachment online for bridal and higher in-store attachment in fashion. Moving on to gross margin, we delivered a rate expansion of 130 basis points to last year. This was led by merchandise margin expansion of 80 basis points, which J.K. detailed a moment ago. We also delivered 30 basis points of occupancy leverage, reflecting the efficiency within our operating model to expand margins on a slightly positive comp.

Speaker #2: This was led by merchandise margin expansion of 80 basis points, which JK detailed a moment ago. We also delivered 30 basis points of occupancy leverage, reflecting the efficiency within our operating model to expand margins on a slightly positive comp.

Lastly, we drove a 20 basis point improvement from distribution efficiencies, taking advantage of higher gold prices by accelerating scrap recovery, as well as better shrink performance. The SG&A rate for the quarter was nearly flat, despite a 70 basis point impact from higher incentive compensation. Excluding the incentive compensation, SG&A improvement reflects more efficient marketing spend and store labor planning, as well as favorability in transaction fee costs. Adjusted operating income was $32 million for the quarter.

Speaker #2: Lastly, we drove a 20-basis-point improvement from distribution efficiencies, taking advantage of higher gold prices by accelerating scrap recovery, as well as better shrink performance.

Speaker #2: The SG&A rate for the quarter was nearly flat, despite a 70-basis-point impact from higher incentive compensation. Excluding the incentive compensation, SG&A improvement reflects more efficient marketing spend and store labor planning, as well as favorability in transaction fee costs.

Speaker #2: Adjusted operating income was $32 million for the quarter. This result is ahead of our guidance equally on higher sales and operating efficiencies across gross margin and SG&A.

Speaker 6: This result is ahead of our guidance, equally on higher sales and operating efficiencies across gross margin and SG&A. The combination of our capital allocation strategy, further tariff mitigation efforts, the improvements in our operating model, and the focus on the three largest brands led to a more than 2.5x increase in adjusted EPS. Turning to real estate, the work to refresh stores this year is already delivering mid-single-digit sales lifts to stores recently renovated at Kay, Jared, and Zales. Additionally, early results from the repositioning of Kay stores are also showing positive traction, pacing towards just over a two-year payback as we continue to relocate high-performing doors away from declining venues to better locations in otherwise strong markets. Now, turning to the balance sheet, inventory at the end of the quarter was $2.1 billion, down 1% to last year, despite a nearly 50% increase in gold costs and higher tariffs.

This result is ahead of our guidance, equally on higher sales and operating efficiencies across gross margin and SG&A. The combination of our capital allocation strategy, further tariff mitigation efforts, the improvements in our operating model, and the focus on the three largest brands led to a more than 2.5x increase in adjusted EPS. Turning to real estate, the work to refresh stores this year is already delivering mid-single-digit sales lifts to stores recently renovated at Kay, Jared, and Zales.

Speaker #2: The combination of our capital allocation strategy, further tariff mitigation efforts, the improvements in our operating model, and the focus on the three largest brands led to a more than $2.5 times increase in adjusted EPS.

Speaker #2: Stores this year are already delivering mid-single-digit sales lift. Turning to real stores recently renovated at K, Jared, and Zales. Additionally, early results from the repositioning of K stores are also showing positive traction.

Additionally, early results from the repositioning of Kay stores are also showing positive traction, pacing towards just over a two-year payback as we continue to relocate high-performing doors away from declining venues to better locations in otherwise strong markets. Now, turning to the balance sheet, inventory at the end of the quarter was $2.1 billion, down 1% to last year, despite a nearly 50% increase in gold costs and higher tariffs.

Speaker #2: Pacing towards just over a two-year payback as we continue to relocate high-performing doors away from declining venues to better locations in otherwise strong markets.

Speaker #2: balance sheet, inventory end of the quarter at $2.1 Now, turning to the billion, down 1% to last year, despite a nearly 50% increase in gold costs and higher tariffs.

Speaker #2: Cash at the end of the quarter was $235 million, with total liquidity of approximately $1.4 billion, including an undrawn ABL. Free cash flow improved by more than $100 million for the quarter and by more than $150 million year to date, due to the timing of receipts that will shift payments to the fourth quarter and inventory discipline.

Speaker 6: Cash end of the quarter at $235 million, with total liquidity of approximately $1.4 billion, with an undrawn ABL. Free cash flow improved by more than $100 million for the quarter and by more than $150 million year to date from timing of receipts that will shift payment to the fourth quarter and inventory discipline. We repurchased approximately $28 million, or roughly 300,000 shares in the quarter, bringing our year-to-date repurchases to nearly $180 million, or 2.8 million shares, which represents more than 6% of diluted shares outstanding. Our remaining repurchase authorization is approximately $545 million. Turning to guidance, we are modestly updating our expectations. This includes raising the low end of our full-year guide to reflect our beat in the third quarter, further tariff mitigation efforts, and a measured outlook for the fourth quarter.

Cash end of the quarter at $235 million, with total liquidity of approximately $1.4 billion, with an undrawn ABL. Free cash flow improved by more than $100 million for the quarter and by more than $150 million year to date from timing of receipts that will shift payment to the fourth quarter and inventory discipline. We repurchased approximately $28 million, or roughly 300,000 shares in the quarter, bringing our year-to-date repurchases to nearly $180 million, or 2.8 million shares, which represents more than 6% of diluted shares outstanding.

Speaker #2: We repurchased approximately $28 million or roughly $300,000 shares in the quarter. Bringing our year-to-date repurchases to nearly $180 million or $2.8 million shares. Which represents more than 6% of a diluted shares outstanding.

Our remaining repurchase authorization is approximately $545 million. Turning to guidance, we are modestly updating our expectations. This includes raising the low end of our full-year guide to reflect our beat in the third quarter, further tariff mitigation efforts, and a measured outlook for the fourth quarter.

Speaker #2: Our remaining repurchase authorization is approximately $545 million. Turning to guidance, we are modestly updating our expectations. This includes raising the low end of our full-year guide to reflect our beat in the third quarter, further tariff mitigation efforts, and a measured outlook for the fourth quarter.

Speaker #2: This measured outlook reflects external disruptions since late October and potential continued softness in consumer confidence. We believe it is prudent to have a cautious approach to guidance, given we have seen softer traffic in the past five weeks, particularly among brands with more exposure to lower- to middle-income households.

Speaker 6: This measured outlook reflects external disruptions since late October and potential continued softness in consumer confidence. We believe it prudent to have a cautious approach to guidance, given we've seen softer traffic in the past five weeks, particularly among brands with more exposure to lower to middle-income households. We are raising our full-year same-store sales low guide to down 0.2% and maintaining our high guide of +1.75%, and introducing a fourth quarter same-store sales range of +0.5% to down 5%. With just over 70% of the quarter to go, we're well within that range. Our guidance assumes merchandise margin rate to be roughly flat to a slight increase in the quarter, providing some flexibility for the current macro environment. We are raising our full-year adjusted operating income low guide by $20 million to $465 million and maintaining our high guide of $515 million.

This measured outlook reflects external disruptions since late October and potential continued softness in consumer confidence. We believe it prudent to have a cautious approach to guidance, given we've seen softer traffic in the past five weeks, particularly among brands with more exposure to lower to middle-income households. We are raising our full-year same-store sales low guide to down 0.2% and maintaining our high guide of +1.75%, and introducing a fourth quarter same-store sales range of +0.5% to down 5%.

Speaker #2: We are raising our full year same-store sales low guide to down 0.2% and maintaining our high guide of plus 1.75%, and introducing a fourth quarter same-store sales range of plus 0.5% to down 5%.

With just over 70% of the quarter to go, we're well within that range. Our guidance assumes merchandise margin rate to be roughly flat to a slight increase in the quarter, providing some flexibility for the current macro environment. We are raising our full-year adjusted operating income low guide by $20 million to $465 million and maintaining our high guide of $515 million.

Speaker #2: With just over 70% of the quarter to go, we're well within that range. Our guidance assumes merchandise margin rate to be roughly flat to a slight increase in the quarter providing some flexibility for the current macro environment.

Speaker #2: We are raising our full-year adjusted operating income low guide by $20 million to $465 million, and maintaining our high guide of $515 million.

Speaker #2: This translates to an increased adjusted EPS range of $8.43 to $9.59 per diluted share, inclusive of share repurchases to date. Lastly, we're introducing a fourth quarter range of $277 million to $327 million of adjusted operating income.

Speaker 6: This translates to an increased adjusted EPS range of $8.43 to $9.59 per diluted share, inclusive of share repurchases to date. Lastly, we're introducing a fourth quarter range of $277 to $327 million of adjusted operating income. We also continue to expect $145 to $160 million in capital expenditures for the year, inclusive of pulling forward real estate spend to take advantage of the strong returns we've seen to date. Before we turn to Q&A, I'd like to thank the team for your dedication, resilience, and focus this year. I wish a happy and healthy holiday season to you and to your families. Operator, let's now go to questions.

This translates to an increased adjusted EPS range of $8.43 to $9.59 per diluted share, inclusive of share repurchases to date. Lastly, we're introducing a fourth quarter range of $277 to $327 million of adjusted operating income. We also continue to expect $145 to $160 million in capital expenditures for the year, inclusive of pulling forward real estate spend to take advantage of the strong returns we've seen to date. Before we turn to Q&A, I'd like to thank the team for your dedication, resilience, and focus this year. I wish a happy and healthy holiday season to you and to your families. Operator, let's now go to questions.

Speaker #2: We also continue to expect $145 to $160 million in capital expenditures for the year, inclusive of pulling forward real estate spend to take advantage of the strong returns we've seen to date.

Speaker #2: Before we turn to Q&A, I'd like to thank the team for your dedication, resilience, and focus this year. I wish a happy and healthy holiday season to you and your families.

Speaker #2: Operator, let's now go to

Speaker #2: questions. Thank

Speaker #1: You. Ladies and gentlemen, we will now begin the question-and-answer session. Should you have a question, please press star, followed by the one on your touch-tone phone.

Speaker 7: Thank you. Ladies and gentlemen, we will now begin the question and answer session. Should you have a question, please press star followed by one on your touch-tone phone. You will hear a prompt that your hand has been raised. Should you wish to decline from the polling process, please press star followed by two. If you are using a speakerphone, please lift the handset before pressing any keys. One moment, please, for your first question. Your first question comes from Paul Lejuez with Citi. Your line is now open.

Operator: Thank you. Ladies and gentlemen, we will now begin the question and answer session. Should you have a question, please press star followed by one on your touch-tone phone. You will hear a prompt that your hand has been raised. Should you wish to decline from the polling process, please press star followed by two. If you are using a speakerphone, please lift the handset before pressing any keys. One moment, please, for your first question. Your first question comes from Paul Lejuez with Citi. Your line is now open.

Speaker #1: You will hear a prompt that your hand has been raised. Should you wish to decline from the polling process, please press star, followed by the two.

Speaker #1: If you are using a speakerphone, please lift your hands up before pressing any keys. One moment, please, for your first question. Your first question comes from Paul Leshway with City.

Speaker #1: Your line is now

Speaker #1: open.

Speaker #3: Hey, thanks,

Speaker 8: Hey, thanks, guys. Curious if you could talk about what you've seen quarter to date, and, you know, specifically over the Thanksgiving weekend, how that might have informed your comp guidance for Q4. If maybe you could just dig in a little bit more about the external disruptions since late October that you referenced, just want to understand what you were referring to, if that was the traffic comments that you just made or if it was something else. Thanks.

Paul Lejuez: Hey, thanks, guys. Curious if you could talk about what you've seen quarter to date, and, you know, specifically over the Thanksgiving weekend, how that might have informed your comp guidance for Q4. If maybe you could just dig in a little bit more about the external disruptions since late October that you referenced, just want to understand what you were referring to, if that was the traffic comments that you just made or if it was something else. Thanks.

Speaker #3: Guys, I'm curious if you could talk about what you've seen quarter to date and specifically over the Thanksgiving weekend. How might that have informed your comp guidance for Q4?

Speaker #3: And if maybe you could just dig in a little bit more about the external disruptions since late October that you referenced just want to understand what you were referring to, if that was the traffic comments that you just made, or if it was something else.

Speaker #3: Thanks.

Speaker #2: Yeah, Paul. Thanks for the question. I think we've been pretty cautious as it relates to Q4 all year long. And our guide, we're maintaining a little bit of softness at the start of November, which obviously you've seen everything from consumer confidence surveys to issues with government shutdown, SNAP, our consumers are dealing with a lot.

Speaker 9: Yeah, Paul, thanks for the question. I think we've been pretty cautious as it relates to Q4 all year long. I, you know, our guide, we're maintaining a little bit of softness at the start of November, which, you know, obviously, you've seen everything from consumer confidence surveys to issues with government shutdown, SNAP. Our consumers are dealing with a lot. What we saw quarter to date is really seeing that play out a little bit, most notably in the brands that have a greater density of lower and middle-income customers. Outside of the US, consistent trends in those brands of ours that have more exposure to high-income customers, we're still seeing spends be consistent.

JK Symancyk: Yeah, Paul, thanks for the question. I think we've been pretty cautious as it relates to Q4 all year long. I, you know, our guide, we're maintaining a little bit of softness at the start of November, which, you know, obviously, you've seen everything from consumer confidence surveys to issues with government shutdown, SNAP. Our consumers are dealing with a lot. What we saw quarter to date is really seeing that play out a little bit, most notably in the brands that have a greater density of lower and middle-income customers. Outside of the US, consistent trends in those brands of ours that have more exposure to high-income customers, we're still seeing spends be consistent.

Speaker #2: And what we saw quarter-to-date is really seeing that play out a little bit, most notably in...

Speaker #1: customers outside of the Income US trends . In those brands of ours that . Consistent have more exposure to high income We're still customers .

Speaker #1: seeing , you know , spends consistent . And so while we've watched , know be you that and really , moderation of holiday believe is going you know , the is per to happen and normal that , you know , we've got confidence in our that , plan moving forward .

Speaker 9: While we've watched, you know, moderation of that and really believe that, you know, the holiday is going to happen per normal and that, you know, we've got confidence in our plan moving forward, we also didn't feel like that prudence around Q4 was wrong. We've been pretty consistent in that guide all year, and I think this is a reflection of that. As far as, you know, as far as the weekend, you know, we don't, I don't know. What I've learned as I've looked through our data and seen play out is, first of all, Black Friday to Cyber Monday is just not as big of an impact on our quarter. You know, if you look at the month of November, it's 25% of our total quarter. For us, December is a whole lot more important.

While we've watched, you know, moderation of that and really believe that, you know, the holiday is going to happen per normal and that, you know, we've got confidence in our plan moving forward, we also didn't feel like that prudence around Q4 was wrong. We've been pretty consistent in that guide all year, and I think this is a reflection of that. As far as, you know, as far as the weekend, you know, we don't, I don't know.

Speaker #1: We also didn't feel like , that that , you know prudence around Q4 We've been was pretty consistent in that year . And think this I is a reflection of that guide all as far as , you know , as far weekend as the , you know , we don't I don't know , I what I've I , what I've looked through our data and seen play out is , first of all , Black Friday to Cyber is Monday as as just big a of not of an impact on if you look at the month quarter .

What I've learned as I've looked through our data and seen play out is, first of all, Black Friday to Cyber Monday is just not as big of an impact on our quarter. You know, if you look at the month of November, it's 25% of our total quarter. For us, December is a whole lot more important.

Speaker #1: November , of it's it's 25% of our total quarter . So for You know , us , December is a whole our important .

Speaker #1: And , you know , lot more good Black Friday , bad Black Friday in between really has has , you know , very little bearing on on our results .

Speaker 9: You know, good Black Friday, bad Black Friday, in between, really has very little bearing on our results. Our overall performance is so much more tied to those 10 days leading into Christmas when you look at the volume. Those days are more important than the whole month that we just finished. I think we've seen fairly consistent results quarter to date, you know, all the way through Black Friday. No big change there and no call for pessimism. I think we're right to be, you know, guarded. I do think we've got a customer that is going to be more intently focused on value as they come through the holiday. Our guide and our actions are really focused on that.

You know, good Black Friday, bad Black Friday, in between, really has very little bearing on our results. Our overall performance is so much more tied to those 10 days leading into Christmas when you look at the volume. Those days are more important than the whole month that we just finished. I think we've seen fairly consistent results quarter to date, you know, all the way through Black Friday. No big change there and no call for pessimism. I think we're right to be, you know, guarded. I do think we've got a customer that is going to be more intently focused on value as they come through the holiday. Our guide and our actions are really focused on that.

Speaker #1: Our overall performance is so much more tied to those ten days leading into to Christmas . When you when you look at at the volume , those days are are more important than , than the whole month that we just that we just .

Speaker #1: I think we've seen fairly consistent results quarter to date . You know , from all the way through Black Friday . So no , you know , no big no big change there .

Speaker #1: no , you know , call for for pessimism . But I think we're right to be , guarded . And think we've I do you know , got a customer that is is going to be more intently focused on value as through the , through holiday .

Speaker #1: And our guide the and our they come is actions are really focused on that .

Speaker #2: only thing that I would The add to that , Jake . John , sorry , I was going to add that the the guide that we've given and what we've said in our prepared remarks is that we believe we're well within the top line guide for the fourth quarter , which is is important .

Speaker 7: The only thing that I would add to that, J.K.—

Joan Hilson: The only thing that I would add to that, J.K.—

Speaker 8: Go ahead, Joan, sorry.

JK Symancyk: Go ahead, Joan, sorry.

Speaker 7: Well, I was going to add that the guide that we've given and what we've said in our prepared remarks is that we believe we're well within the top-line guide for the fourth quarter, which is important. To JK's point, we have 70% of the quarter ahead of us. At this position, we believe it's prudent to be conservatively positioned and provide for variability in consumer spending.

Joan Hilson: Well, I was going to add that the guide that we've given and what we've said in our prepared remarks is that we believe we're well within the top-line guide for the fourth quarter, which is important. To JK's point, we have 70% of the quarter ahead of us. At this position, we believe it's prudent to be conservatively positioned and provide for variability in consumer spending.

Speaker #2: And to JC's point, we have 70% of the year ahead of us. At this position, we believe it's prudent to quarter conservatively positioned and provide for variability in consumer spending.

Speaker #3: it . then I guess And just follow up a on the Got ten days leading up to Christmas , obviously , I think you kind of had to miss there last is it your year .

Speaker 8: Got it. I guess just to follow up on the 10 days leading up to Christmas, obviously, I think you kind of had a miss there last year. Was it your expectation that once we get to that point that you would see an acceleration in sales as we move to that period within the quarter?

Paul Lejuez: Got it. I guess just to follow up on the 10 days leading up to Christmas, obviously, I think you kind of had a miss there last year. Was it your expectation that once we get to that point that you would see an acceleration in sales as we move to that period within the quarter?

Speaker #3: expectation that once that point that So we get to you would see in acceleration , in sales as we move to period quarter to that within the ?

Speaker #1: You know , we think we're well positioned for it . I mean , I would say we , you know , the if you recall , the opportunity that we had last was year we really were under under inventoried relative to the sub 500 and sub $1,000 price points , particularly in the fashion side .

Speaker 9: No, we think we're well positioned for it. I mean, I would say, you know, if you recall, the opportunity that we had last year was we really were under-inventoried relative to the sub-$500 and sub-$1,000 price points, particularly in the fashion side. You know, I mean, depending on what bucket you're looking at and what brand you're looking at, we've got anywhere from 5x to 8x the inventory there, well positioned on trends, same, you know, same investment, particularly in LGD fashion at those lower price points that has been driving improvement all year. We're really ready for the business, and I think have the right, you know, the right promotional cadence set up to be able to support what's going to resonate with customers. We're certainly building towards that.

JK Symancyk: No, we think we're well positioned for it. I mean, I would say, you know, if you recall, the opportunity that we had last year was we really were under-inventoried relative to the sub-$500 and sub-$1,000 price points, particularly in the fashion side. You know, I mean, depending on what bucket you're looking at and what brand you're looking at, we've got anywhere from 5x to 8x the inventory there, well positioned on trends, same, you know, same investment, particularly in LGD fashion at those lower price points that has been driving improvement all year.

Speaker #1: And , you know , I mean , depending on what , what bucket you're looking at and what what brand you're looking at , we've got anywhere from 5 to 8 times the , the inventory there .

Speaker #1: Well positioned on trend , same , you know , same investment , particularly in LGD those fashion at lower price points that that has been driving improvement all year .

Speaker #1: And we're we're really ready for the business . And I think have the right you right promotional know , the set up to be able to support what's going to resonate with customers .

We're really ready for the business, and I think have the right, you know, the right promotional cadence set up to be able to support what's going to resonate with customers. We're certainly building towards that. I think, you know, we're positioned to be able to deliver value to customers during that time period, which also should represent an opportunity for us to drive performance different than last year.

Speaker #1: So we're building towards that . certainly And I think , cadence know , you positioned to be deliver value to able to customers during that time period , which also should should represent an opportunity for us to to drive performance different than last year .

Speaker 9: I think, you know, we're positioned to be able to deliver value to customers during that time period, which also should represent an opportunity for us to drive performance different than last year.

Speaker #3: it . Thank Got you . Good luck .

Speaker #1: Thanks , Paul . Yeah . Appreciate the question .

Speaker #4: Your next question comes from Lorraine with Bank of America. It is now open.

Speaker 8: Got it. Thank you. Good luck.

Paul Lejuez: Got it. Thank you. Good luck.

Speaker 9: Yeah, thanks, Paul. Appreciate the question.

JK Symancyk: Yeah, thanks, Paul. Appreciate the question.

Speaker #5: Thank you . Good

Speaker 7: Your next question comes from Lorraine Hutchinson with Bank of America. Your line is now open.

Operator: Your next question comes from Lorraine Hutchinson with Bank of America. Your line is now open.

Speaker 10: Thank you. Good morning. Last quarter, you spoke to the low end of guidance if the India tariffs remained. What were the key mitigating factors that had the biggest impact to allow you to raise that low end today?

Lorraine Hutchinson: Thank you. Good morning. Last quarter, you spoke to the low end of guidance if the India tariffs remained. What were the key mitigating factors that had the biggest impact to allow you to raise that low end today?

Speaker #1: I appreciate the

Speaker 9: Yeah, I appreciate the question, Lorraine. Maybe more importantly, I appreciate the work our team has done to deliver it. You know, we've never fully dimensionalized a number as it relates to tariffs, in part because it moved around a lot. I think one of our challenges has always been if I gave you a number on Tuesday, on Wednesday, it might look a little bit different just based off of the volatility there. Even though we haven't seen the India tariffs pull back, you know, through a combination of a number of things, a lot of moves as it relates to country of origin to really partner with our supplier. When I talk about our teams, I'm not just talking about our merchants and supply chain folks who've worked hard, but upstream, our supplier partners have really been nimble.

JK Symancyk: Yeah, I appreciate the question, Lorraine. Maybe more importantly, I appreciate the work our team has done to deliver it. You know, we've never fully dimensionalized a number as it relates to tariffs, in part because it moved around a lot. I think one of our challenges has always been if I gave you a number on Tuesday, on Wednesday, it might look a little bit different just based off of the volatility there.

Speaker #1: You know , I think one of our if I gave tariffs , in you a number on Tuesday , Your line on might might look a little bit .

Speaker #1: different just based off of the Wednesday it volatility . There . And even even importantly , I though haven't seen the India tariffs back know we through a a pull number of lot of things a moves as it relates to origin to to combination of of country of with our supplier .

Even though we haven't seen the India tariffs pull back, you know, through a combination of a number of things, a lot of moves as it relates to country of origin to really partner with our supplier. When I talk about our teams, I'm not just talking about our merchants and supply chain folks who've worked hard, but upstream, our supplier partners have really been nimble.

Speaker #1: I talk And when about our teams , I'm not just talking merchants and supply chain folks who've worked upstream , our partners have really been about our know nimble .

Speaker #1: supplier we've moved some US . We've moved some production to other countries . production to the We've , you ways to know , to build into the supply found chain this .

Speaker 9: You know, we've moved some production to the US. We've moved some production to other countries. We've, you know, found ways to build efficiency in the supply chain. You know, in this environment, given the commodities, there is a little bit of price that has moved through. I think, you know, we've been able to mitigate that and mute it ultimately to try to protect value for our customers along the way. You know, given what our team has worked through, particularly over the last couple of months, not only does that position us well for the holiday, but ultimately, these are the same levers that we will use to drive the business this next year.

You know, we've moved some production to the US. We've moved some production to other countries. We've, you know, found ways to build efficiency in the supply chain. You know, in this environment, given the commodities, there is a little bit of price that has moved through. I think, you know, we've been able to mitigate that and mute it ultimately to try to protect value for our customers along the way. You know, given what our team has worked through, particularly over the last couple of months, not only does that position us well for the holiday, but ultimately, these are the same levers that we will use to drive the business this next year.

Speaker #1: environment , efficiency You know , in given the a little bit of price that has moved through . And I think , you know , we've we've been to , able mitigate that .

Speaker #1: And mute it ultimately to try to protect value for our customers along the way . And given , you know , what our team has worked through , particularly over the of months , not does that not only position us last couple well for the holiday , but ultimately these are the same levers that that we will drive the this next year .

Speaker #1: use to But I'm love the question because I it business point to the I fact that , you know , despite the ask we think it this this disruption and moving from really does , you know , effectively a low of north of 5% tariff to 50% tariff in , in , in India , our been able to team has do that , grow the business and to actually raise the bottom side of guide and take downside off that of the table , which I just think is is work great business across our and , you know , also in a position of puts us we're moving strength as into this next year .

Speaker 9: I love that you asked the question because I think it really does point to the fact that, you know, despite this disruption and moving from, you know, effectively a low of 5% tariff to north of 50% tariff in India, our team's been able to do that, grow the business, and actually raise the bottom side of guide and take that downside off of the table, which I just think is great work across our business and, you know, also puts us in a position of strength as we're moving into this next year.

I love that you asked the question because I think it really does point to the fact that, you know, despite this disruption and moving from, you know, effectively a low of 5% tariff to north of 50% tariff in India, our team's been able to do that, grow the business, and actually raise the bottom side of guide and take that downside off of the table, which I just think is great work across our business and, you know, also puts us in a position of strength as we're moving into this next year.

Speaker #5: Thanks . And then can we just talk a little bit more about pricing with gold prices and tariffs ? It sounds like you are pricing lever a little bit .

Speaker 10: Thanks. Can we just talk a little bit more about pricing? With gold prices and tariffs, it sounds like you are pulling the pricing lever a little bit. How do you tread carefully enough, given that you're seeing that pressure at the low-income consumer, I guess? How do you balance the need to offset some of these cost pressures with the consumer struggles that you're seeing?

Lorraine Hutchinson: Thanks. Can we just talk a little bit more about pricing? With gold prices and tariffs, it sounds like you are pulling the pricing lever a little bit. How do you tread carefully enough, given that you're seeing that pressure at the low-income consumer, I guess? How do you balance the need to offset some of these cost pressures with the consumer struggles that you're seeing?

Speaker #5: you're seeing ?

Speaker #1: you thank you . I , Yeah , it's I think that's art and the , the science of of running a retail business right now .

Speaker 9: Yeah, it's, you know, thank you. I think that's the art and science of running a retail business right now. For us, you know, I'll break it into two parts. Gold as a straight commodity is, you know, and when you think about that, think about, you know, more gold-forward pieces or, you know, things like gold chain, for example, that are all about gold. I think historically, we've seen that customers understand that's a commodity market. They understand the value associated with it. As we pass along the fluctuations of price that are purely commodity-driven, we generally see customers recognize that value. You know, we're obviously tethered to a market and look to leverage our scale and strength of supply chain to make sure that we're offering the right value proposition relative to the rest of the market. I think our team does that well.

JK Symancyk: Yeah, it's, you know, thank you. I think that's the art and science of running a retail business right now. For us, you know, I'll break it into two parts. Gold as a straight commodity is, you know, and when you think about that, think about, you know, more gold-forward pieces or, you know, things like gold chain, for example, that are all about gold. I think historically, we've seen that customers understand that's a commodity market.

Speaker #1: And for us , you know , I'll break it into to two parts gold as a , as a straight commodity is , you you think about that , think about , you know , gold forward pieces more , you know , gold chain , for or things like , that all about gold .

Speaker #1: And for us , you know , I'll break it into to two parts gold as a , as a straight commodity is , you you think about that , think about , you know , gold forward pieces more , you know , gold chain , for or things like , that all are I think historically are , that we've seen that customers understand that's market .

Speaker #1: They understand commodity the value associated with it . And as as as we we pass along the fluctuations of price on the that are purely commodity driven , we generally see customers recognize that .

They understand the value associated with it. As we pass along the fluctuations of price that are purely commodity-driven, we generally see customers recognize that value. You know, we're obviously tethered to a market and look to leverage our scale and strength of supply chain to make sure that we're offering the right value proposition relative to the rest of the market. I think our team does that well.

Speaker #1: value And , you know , we're tethered to obviously a market and look leverage our scale and , and strength of supply chain to make sure that we're offering the right value proposition to the rest relative of the market .

Speaker #1: I think our team does that well . And historically , we we've , you know , every time we see what we be a ceiling , think may we recognize the consumer understands that commodity price and tends to be resilient because of the residual of what they're value buying .

Speaker 9: Historically, we've, you know, every time we see what we think may be a ceiling, we recognize the consumer understands that commodity price and tends to be resilient because of the residual value of what they're buying. You know, we may see a little bit of a drop-off in units in gold as a result of some of those price increases. From that, you know, that plays out across the market, and we know how to navigate that pretty well. In the case of, you know, tariffs and/or, you know, the other side of that coin, that's where it really becomes important for us to think about design, you know, all of the elements of a piece of jewelry and how do we leverage design and our supply chain and supplier partner base to really drive sharp adherence to some of these key price points.

Historically, we've, you know, every time we see what we think may be a ceiling, we recognize the consumer understands that commodity price and tends to be resilient because of the residual value of what they're buying. You know, we may see a little bit of a drop-off in units in gold as a result of some of those price increases. From that, you know, that plays out across the market, and we know how to navigate that pretty well.

Speaker #1: And so , you know , we may see a little bit of a drop off in gold units in as a result of some of those price increases .

Speaker #1: But from a that , you know , that plays out across the market and we know how to well in the navigate that pretty of , you know , tariffs or , you know , and case side of that coin the other , that's where it really becomes important for us to think about design .

Speaker #1: But from a that , you know , that plays out across the market and we know how to well in the navigate that pretty of , you know , tariffs or , you know , and case side of that coin the other , that's where it really becomes important for us to think about design . know , all of the You of elements of of a piece of .

Speaker #1: But from a that , you know , that plays out across the market and we know how to well in the navigate that pretty of , you know , tariffs or , you know , and case side of that coin the other , that's where it really becomes important for us to think about design . know , all of the You of elements of of a piece of jewelry And we how do leverage design and our supply and chain supplier partner base to really drive sharp adherence to some of these key price points ?

In the case of, you know, tariffs and/or, you know, the other side of that coin, that's where it really becomes important for us to think about design, you know, all of the elements of a piece of jewelry and how do we leverage design and our supply chain and supplier partner base to really drive sharp adherence to some of these key price points.

Speaker #1: And I that is more important this time of year think than . You know , if at a business like , you know , ever K , for example , sub I look we're you know , we're higher in significantly inventory and positioning were than , than year last because we know that's going to be a critically important to that customer .

Speaker 9: I think that is more important this time of year than ever. You know, if I look at a business like, you know, Kay, for example, sub-$500, we're, you know, we're significantly higher on inventory and positioning than where we were last year because we know that's going to be critically important to that customer. That customer, you know, will understand those key price points, whether it's, you know, that item that I buy for $199 or $299 or $500. We work hard to engineer product that still delivers value proposition and carries that emotional value, but can stay within the price point ranges that make sense for the holiday.

I think that is more important this time of year than ever. You know, if I look at a business like, you know, Kay, for example, sub-$500, we're, you know, we're significantly higher on inventory and positioning than where we were last year because we know that's going to be critically important to that customer. That customer, you know, will understand those key price points, whether it's, you know, that item that I buy for $199 or $299 or $500. We work hard to engineer product that still delivers value proposition and carries that emotional value, but can stay within the price point ranges that make sense for the holiday.

Speaker #1: That you know , will understand those key customer , whether it's , you know , that item that I buy points , for 199 or 2 , 99 or $500 and we work hard to to engineer product that still delivers value proposition carries and that emotional value , but stay within the price point ranges that that make can sense for the holiday .

Speaker #5: you Thank .

Speaker #4: Your question comes from Kernick with Brandy Jefferies. Your line is now open.

Speaker 10: Thank you. Your next question comes from Randy Konik with Jefferies. Your line is now open.

Operator: Thank you. Your next question comes from Randy Konik with Jefferies. Your line is now open.

Speaker #6: Great . Thanks a lot . I Joan , maybe guess , it would helpful be is to kind of hindsight fourth quarter last year , maybe give us a little bit more color on if not quantitatively or qualitatively , how the played out .

Speaker 11: Great. Thanks a lot. I guess, Joan, maybe what would be helpful is to kind of hindsight fourth quarter last year, maybe give us a little bit more color on, you know, if not quantitatively, more qualitatively how the quarter played out and kind of how you think about that as it pertains to, you know, fourth quarter this year. I think you said that the 10 days, 14 days, whatever it was before Christmas last year were pretty difficult providing opportunity. It'd just be helpful to kind of get some perspective on, you know, how everything kind of played out last year to give people some perspective how things should, you know, maybe play out this year.

Randy Konik: Great. Thanks a lot. I guess, Joan, maybe what would be helpful is to kind of hindsight fourth quarter last year, maybe give us a little bit more color on, you know, if not quantitatively, more qualitatively how the quarter played out and kind of how you think about that as it pertains to, you know, fourth quarter this year. I think you said that the 10 days, 14 days, whatever it was before Christmas last year were pretty difficult providing opportunity. It'd just be helpful to kind of get some perspective on, you know, how everything kind of played out last year to give people some perspective how things should, you know, maybe play out this year.

Speaker #6: quarter And kind of how you think about that as it pertains to fourth quarter this think you year . said I that the ten days , 14 days , whatever it was Christmas last before year were pretty difficult , providing opportunity .

Speaker #6: So helpful to kind of get some just be perspective on how everything kind of played out last year to give people some perspective , how things should maybe play out this year , and then as a follow up to that , you know , commentary , maybe JC can give us some perspective of what of you're kind instructing teams to do to execute the holiday season , to make it a success .

Speaker 11: As a follow-up to that, you know, commentary, maybe JK could give us some perspective of what you're kind of instructing teams to do, you know, to execute, you know, the holiday season to make it a success. You've done a good job or done work around marketing and merchandising. Just kind of just give us your thoughts on what you're instructing everyone to kind of get done over the next, you know, 30 to 60 days. Thanks, guys.

As a follow-up to that, you know, commentary, maybe JK could give us some perspective of what you're kind of instructing teams to do, you know, to execute, you know, the holiday season to make it a success. You've done a good job or done work around marketing and merchandising. Just kind of just give us your thoughts on what you're instructing everyone to kind of get done over the next, you know, 30 to 60 days. Thanks, guys.

Speaker #6: You've done a good job or done work around marketing and just kind merchandising , so of just us give your thoughts on what your instructing everyone and kind of get done over the next , you know , 30 to 60 Thanks days .

Speaker #6: guys .

Speaker #2: So thanks , Randy , with the respect to last mean , year , I it was clear that we had assortment gaps in key gift giving price points , particularly under a thousand and even more so under 500 .

Speaker 10: Thanks, Randy. With respect to last year, I mean, it was clear that we had assortment gaps in key gift-giving price points, particularly under $1,000 and even more so under $500. We did not have the lab-grown penetration in fashion, particularly in fashion, somewhat in bridal, but we did not have that penetration last year. This year, lab diamonds are roughly 40% of our bridal business, and they are up to 15%, double last year, in our lab-grown fashion business. We have closed that gap and really responded to what the customer was asking for last year that we did not have. We have now bridged that gap. We feel strongly about this assortment architecture that we were able to put forward. Importantly, Randy, the next step of that is we need to be in depth position in key price points in key styles.

Joan Hilson: Thanks, Randy. With respect to last year, I mean, it was clear that we had assortment gaps in key gift-giving price points, particularly under $1,000 and even more so under $500. We did not have the lab-grown penetration in fashion, particularly in fashion, somewhat in bridal, but we did not have that penetration last year. This year, lab diamonds are roughly 40% of our bridal business, and they are up to 15%, double last year, in our lab-grown fashion business.

Speaker #2: And we did not have the lab grown penetration in fashion that particularly in fashion somewhat in we didn't have that bridal . But penetration last year .

Speaker #2: This year . Lab diamonds lab are roughly 40% of our of our bridal business . And they're up to last 15% double year in our lab grown fashion So we've closed that gap .

Speaker #2: really And business . responded to what the customer is . It asking for last year that we didn't have . And we've now bridged that we gap .

We have closed that gap and really responded to what the customer was asking for last year that we did not have. We have now bridged that gap. We feel strongly about this assortment architecture that we were able to put forward. Importantly, Randy, the next step of that is we need to be in depth position in key price points in key styles.

Speaker #2: feel strongly about this So assortment architecture that we we've been able to put forward were . Importantly , Randy , the next step of that is our we need be to depth in position in key price points , in key styles .

Speaker #2: The team has worked diligently as we ensure that progress through the selling period and we approach the holiday. You know, the last ten days before Christmas are critically important. We're in this key time, which we know is important for our customers to have stock of key items.

Speaker 10: The team has worked very diligently to ensure that as we progress through the holiday selling period and we approach the, you know, last 10 days before Christmas, which we know is critically important, we're in stock in the key items that the customer is responding to. One of the things that we're seeing that gives us confidence is that our conversion from quarter to quarter has been relatively consistent. We believe as we get closer to the holiday selling period, we're seeing strength in our traffic in brick and mortar that's stronger, that, you know, will bode well for us on top of the conversion metric that has remained relatively consistent. That speaks to, for us, the strength of our assortment in closing that gap. We also have fortified post-holiday selling. As you'll recall, we lead up to Valentine's Day in the month of January.

The team has worked very diligently to ensure that as we progress through the holiday selling period and we approach the, you know, last 10 days before Christmas, which we know is critically important, we're in stock in the key items that the customer is responding to. One of the things that we're seeing that gives us confidence is that our conversion from quarter to quarter has been relatively consistent.

Speaker #2: One of the responding things that we're seeing that gives us confidence is that our conversion from quarter to quarter has been relatively consistent .

Speaker #2: believe So we as the selling closer to holiday , we're period seeing in strength in our traffic and mortar brick and that , you know , stronger bode that will well for us on top of the conversion metric that consistent .

We believe as we get closer to the holiday selling period, we're seeing strength in our traffic in brick and mortar that's stronger, that, you know, will bode well for us on top of the conversion metric that has remained relatively consistent. That speaks to, for us, the strength of our assortment in closing that gap. We also have fortified post-holiday selling. As you'll recall, we lead up to Valentine's Day in the month of January. It's not as big of a holiday for us, but it's an important holiday for us. We've ensured that we are in stock and have receipt flow, you know, post the holiday selling season, which will bode well for the first quarter of next year.

Speaker #2: So has remained relatively , for to strength us the that of our speaks closing assortment and that gap . We fortified post also have holiday selling .

Speaker #2: as you'll It's lead up recall , we Day in the month of Valentine's January . It's not as of a holiday for us , but important holiday for big we've , and ensured are in in stock and have received flow , you know , it's an post the selling season , holiday which will will bode well for the first quarter of that we next year .

Speaker 10: It's not as big of a holiday for us, but it's an important holiday for us. We've ensured that we are in stock and have receipt flow, you know, post the holiday selling season, which will bode well for the first quarter of next year.

Speaker #1: I as far as the next 30 to 60 Joan , Joan touched days , on it . The December is critically important month think and , you know , it is particularly important because that's when that's when customers that shop our is a category really do come more into the mindset of , of of making a purchase .

Speaker 9: I think as far as the next 30 to 60 days, I mean, Joan touched on it. December is a critically important month. You know, it is particularly important because that's when customers that shop our category, you know, really do come more into the mindset of making a purchase. You know, we're a great last-minute option, whether that's because, you know, people save for it or because it's a simple solution at the end. I think it's incumbent on us to make sure that we make that as frictionless for customers as possible. You know, I think if of anything, you know, this category can be a little bit intimidating to customers.

JK Symancyk: I think as far as the next 30 to 60 days, I mean, Joan touched on it. December is a critically important month. You know, it is particularly important because that's when customers that shop our category, you know, really do come more into the mindset of making a purchase. You know, we're a great last-minute option, whether that's because, you know, people save for it or because it's a simple solution at the end. I think it's incumbent on us to make sure that we make that as frictionless for customers as possible. You know, I think if of anything, you know, this category can be a little bit intimidating to customers.

Speaker #1: And , and you know , we're a we are a great last minute option whether that's because , you know , people save for it or because it's a simple solution at the end , I think it's incumbent on us to to make sure that we make that as frictionless for customers as possible .

Speaker #1: And , you know , I think if of anything , you know , this category can be a little bit intimidating to customers and , you know , at a time where where I think little bit there's a going more on , a little a little bit more uncertainty and period , and , and our lives .

Speaker 9: You know, at a time period where I think there's a little bit more going on, a little bit more uncertainty in our lives leading up to the holiday as consumers, the more we can simplify and focus our message for them, I think the better off we are. To Joan's point, that really does mean, you know, honing in on simple value propositions, trying to really streamline, you know, promotions so that it's less complex, and we're much more straightforward with customers around what the value proposition is. I think that's a risk. You know, one of the things we've learned as we've looked at the consumer response this month is simpler is better. The more we can simplify that and be straightforward, the better off we are.

You know, at a time period where I think there's a little bit more going on, a little bit more uncertainty in our lives leading up to the holiday as consumers, the more we can simplify and focus our message for them, I think the better off we are. To Joan's point, that really does mean, you know, honing in on simple value propositions, trying to really streamline, you know, promotions so that it's less complex, and we're much more straightforward with customers around what the value proposition is. I think that's a risk.

Speaker #1: Leading up to the holidays, as holiday consumers, the more we can simplify and focus our message on them, I think the better off we are.

Speaker #1: And to Joan's point , that really does mean , you know , honing in simple value propositions , trying to really streamline , you know , promotions so that it's less complex and we're much more straightforward with customers around what the value proposition is .

Speaker #1: I think that's a that's a risk . And , you know , one of the we one of the things we've things learned as looked at we've the this month , is consumer is simpler , better .

You know, one of the things we've learned as we've looked at the consumer response this month is simpler is better. The more we can simplify that and be straightforward, the better off we are. You know, from an operational standpoint, it is about making sure we've got inventory in the right place, that we maintain depth, and, in particular, you know, have product available not only for shipment online, particularly in the first half of the month, but as we move towards the end of the month, it's about having product available in store so that we can focus on the biggest opportunity we have, which is conversion.

Speaker #1: can simplify that be straightforward , And the better off we are . And then , you know , and from a from an operational standpoint , it is making sure about inventory in the right place that that we maintain depth .

Speaker 9: You know, from an operational standpoint, it is about making sure we've got inventory in the right place, that we maintain depth, and, in particular, you know, have product available not only for shipment online, particularly in the first half of the month, but as we move towards the end of the month, it's about having product available in store so that we can focus on the biggest opportunity we have, which is conversion. You know, what we're seeing is some modest improvements in conversion. If we—and that was really—that was the opportunity last year. You know, if we're really honest about, you know, our shortfall, particularly in those 10 days, it was not a traffic opportunity for us. It was a conversion opportunity.

Speaker #1: And in particular , available product only for for not you know , have shipment online , particularly in the first half of the we move towards the end of the month , month , but as about having available store product it's so that we can focus on the in biggest opportunity we have , which is conversion .

Speaker #1: You know what what seeing we're is some modest improvements in we're if conversions . So was that was the opportunity last year . You know , if , if we're really about , honest you know , our if I , particularly in those ten days , shortfall it was traffic not a opportunity for us .

You know, what we're seeing is some modest improvements in conversion. If we—and that was really—that was the opportunity last year. You know, if we're really honest about, you know, our shortfall, particularly in those 10 days, it was not a traffic opportunity for us. It was a conversion opportunity. There was a very clear message from customers that we were not as good at delivering the merchandise that they needed to solve that, you know, the gift that they were looking for. We're much better positioned today to do that.

Speaker #1: It conversion was a very clear message opportunity . from There from was a customers that that that we were not as good at delivering the merchandise that they needed to solve that , you know , the the that they gift looking for .

Speaker 9: There was a very clear message from customers that we were not as good at delivering the merchandise that they needed to solve that, you know, the gift that they were looking for. We're much better positioned today to do that. I think you see that, you know, playing out in our Q3 results when you look at strength across all categories. Now it really is about making sure that we get that message in front of people simply. We're executing tightly, and have that inventory we've invested in available at the point of purchase. Then ultimately, we're doing what we can from an operational standpoint within all the brands to convert and, you know, get them on their way to celebrating the holiday with loved ones.

Speaker #1: We're much better positioned today to do that . I think you see that , you playing out and and our Q3 results , when you look at strength across all categories .

Speaker #1: And so , you know , now is about making sure that we get that message in front of people simply where where it really executing tightly and have that that inventory we've in available at the point of purchase .

I think you see that, you know, playing out in our Q3 results when you look at strength across all categories. Now it really is about making sure that we get that message in front of people simply. We're executing tightly, and have that inventory we've invested in available at the point of purchase. Then ultimately, we're doing what we can from an operational standpoint within all the brands to convert and, you know, get them on their way to celebrating the holiday with loved ones.

Speaker #1: And then ultimately we're we can doing what from an operational standpoint within all the brands to to convert and , and , you know , get them on their way to , to the with loved ones .

Speaker #6: Great . celebrate when you think then And about the bridal category versus the fashion category , just as an industry , how do you think how do you feel about those two different sectors ?

Speaker 11: Great. When you think about the bridal category versus the fashion category, just as an industry, how do you feel about those two different sectors? When you think about architecting the business over the next, and changes to it over the next, you know, 12 to 24 months, you know, are you thinking about changing, you know, the balance between bridal and fashion at all? Any changes you're contemplating? You know, thoughts on the portfolio? You keep talking to a distortion of capital towards the mega brands of Kay, Zales, and Jared. Just kind of curious on how you're thinking about the next 12 to 24 months of kind of moving things around the chessboard.

Randy Konik: Great. When you think about the bridal category versus the fashion category, just as an industry, how do you feel about those two different sectors? When you think about architecting the business over the next, and changes to it over the next, you know, 12 to 24 months, you know, are you thinking about changing, you know, the balance between bridal and fashion at all? Any changes you're contemplating? You know, thoughts on the portfolio? You keep talking to a distortion of capital towards the mega brands of Kay, Zales, and Jared. Just kind of curious on how you're thinking about the next 12 to 24 months of kind of moving things around the chessboard.

Speaker #6: And then when you think architecting about the business next and changes to it next , over the you know , 12 to 24 months ?

Speaker #6: You thinking are you about changing the balance between bridal and fashion at all ? changes in contemplating Any , you know , thoughts on the keep portfolio talking ?

Speaker #6: a to of distortion capital the mega You K , towards brands of and Jared . Just kind of curious on how you're thinking about the 12 to 24 months of kind of next things moving around the chessboard

Speaker #1: it's a great

Speaker #1: question . I'll answer part of it . ? Yeah , And part of it till after the holiday , I , because you probably push the last thing I want to do know , is introduce a lot of hypotheticals team as we to , to should be our closing really on customers and really delivering the holiday .

Speaker 9: Yeah, it's a great question. I'll answer part of it and probably push part of it till after the holiday because I, you know, the last thing I want to do is introduce a lot of hypotheticals to our team as we should be really focused on closing with customers and really delivering the holiday. You know, to your point, we love the balance of the two, honestly. You know, I mean, given the share we have in bridal, we want to maintain that dominance. We recognize that, you know, it is harder to gain outsized growth there because we do set in the position of dominance. We certainly don't want to cede that. We love that balance within our business. We love, you know, being there for customers at that important point in their life.

JK Symancyk: Yeah, it's a great question. I'll answer part of it and probably push part of it till after the holiday because I, you know, the last thing I want to do is introduce a lot of hypotheticals to our team as we should be really focused on closing with customers and really delivering the holiday. You know, to your point, we love the balance of the two, honestly. You know, I mean, given the share we have in bridal, we want to maintain that dominance.

Speaker #1: You know , to your point , we we love the balance of the two . Honestly . And , you know , I mean , the share we given have in bridal , we want to maintain that dominance .

Speaker #1: But we recognize that , you know , it is harder to is it gain outsized growth there because we do set in a position of dominance .

We recognize that, you know, it is harder to gain outsized growth there because we do set in the position of dominance. We certainly don't want to cede that. We love that balance within our business. We love, you know, being there for customers at that important point in their life.

Speaker #1: want to cede certainly don't that . love We We that that balance within our business . We love , being there you know , customers important point in their life .

Speaker #1: we're going to And continue to be in at that bridal across across the business , no question about that . We about fashion , just it's because relative to our business .

Speaker 9: We're going to continue to be dominant in bridal across the business. No question about that. We talk a lot about fashion just because it's underdeveloped relative to our business, and that's where the opportunity for outsized growth is. Mathematically, you know, that may change the mix over time. It isn't about a pivot away from bridal. It's absolutely about a pivot—or, excuse me, a pivot away from bridal. It's more about a pivot into the opportunity that fashion presents for our business and the overall lift that that can provide to the total portfolio. I think the work we're doing to further delineate and position our brands to be complementary in that regard gives us degrees of freedom to lean a little more heavily in some brands into fashion and also, you know, stay a little more staunchly in the bridal-focused area for other brands.

We're going to continue to be dominant in bridal across the business. No question about that. We talk a lot about fashion just because it's underdeveloped relative to our business, and that's where the opportunity for outsized growth is. Mathematically, you know, that may change the mix over time. It isn't about a pivot away from bridal. It's absolutely about a pivot—or, excuse me, a pivot away from bridal. It's more about a pivot into the opportunity that fashion presents for our business and the overall lift that that can provide to the total portfolio.

Speaker #1: And that's where underdeveloped the opportunity for outsized growth is . So , so mathematically know , that that may change the mix over time .

Speaker #1: It isn't about a pivot away from fashion . It's absolutely about a pivot or , excuse me , a pivot away from bridal .

Speaker #1: about a It's more into the opportunity that that presents for our business and the overall can fashion lift that that total provide portfolio .

Speaker #1: And I think the work we're doing to further delineate and position our brands to be complementary in that regard , give us degrees of freedom to lean a little more in some heavily brands into fashion , and also , you know , stay a little more the staunchly in bridal focused area for for other brands .

I think the work we're doing to further delineate and position our brands to be complementary in that regard gives us degrees of freedom to lean a little more heavily in some brands into fashion and also, you know, stay a little more staunchly in the bridal-focused area for other brands.

Speaker #1: far as the As portfolio is concerned and capital , I once we get through the holidays , it's a think , you know , great time for us to to talk about , you know , some of the other some strategic opportunities that we have .

Speaker 9: As far as the portfolio is concerned and capital, I think, you know, once we get through the holidays, it's a great time for us to talk about, you know, some of the other strategic opportunities that we have. We've alluded to a few of them. I think, you know, given, as we've said all along, with some of the other, you know, non-core brand decisions, as once we get through Q4, we'll be in a position to lay out, you know, thoughts. I think the focus we've had on our core brands to really reignite growth across our business is what gives us not only confidence, but the degrees of freedom to really think a little more aggressively around how we deploy capital strategically across the business to continue to generate growth.

As far as the portfolio is concerned and capital, I think, you know, once we get through the holidays, it's a great time for us to talk about, you know, some of the other strategic opportunities that we have. We've alluded to a few of them. I think, you know, given, as we've said all along, with some of the other, you know, non-core brand decisions, as once we get through Q4, we'll be in a position to lay out, you know, thoughts.

Speaker #1: We've alluded to a few of them , and I you think , know , given as , as we've said all along with some of the other , you know , non-core brand decisions as once we get through Q4 , we'll we'll be in a position to lay out , you know , thoughts .

Speaker #1: But I , I the focus we've had on our think core brands to reignite really across our business is what gives us not only confidence , but the degrees of freedom to really think a little more aggressively around how we deploy capital strategically across the business to continue to generate growth .

I think the focus we've had on our core brands to really reignite growth across our business is what gives us not only confidence, but the degrees of freedom to really think a little more aggressively around how we deploy capital strategically across the business to continue to generate growth.

Speaker #6: Super helpful. Thanks, guys.

Speaker #1: Thanks , Randy . Appreciate it . Happy holidays .

Speaker 11: Super helpful. Thanks, guys.

Randy Konik: Super helpful. Thanks, guys.

Speaker #4: Your next item comes from Ike with Wells Fargo. Barraclough, your line is open.

Speaker 9: Thanks, Randy. Appreciate it. Happy holidays.

JK Symancyk: Thanks, Randy. Appreciate it. Happy holidays.

Speaker 10: Your next question comes from Ike Boruchow with Wells Fargo. Your line is now open.

Operator: Your next question comes from Ike Boruchow with Wells Fargo. Your line is now open.

Speaker #7: Hey, good morning to everyone. First question is really a promo. Maybe JC or about the Black... you talked about what week? Your strategies were?

Speaker 3: Hey, good morning, everyone. I mean, the first question is really just about promo. Maybe JK or Joan, could you talk about the Black Friday week, what your strategies were? Did you deviate from those at all? Kind of how does promo play into the cautious commentary? You know, understanding the comp guide, but just kind of curious how your markdown strategy is planned for the holiday today.

Ike Boruchow: Hey, good morning, everyone. I mean, the first question is really just about promo. Maybe JK or Joan, could you talk about the Black Friday week, what your strategies were? Did you deviate from those at all? Kind of how does promo play into the cautious commentary? You know, understanding the comp guide, but just kind of curious how your markdown strategy is planned for the holiday today.

Speaker #7: Friday Did you deviate from those at all and then how does promo kind of the the cautious commentary . So you know , understanding the the comp guy .

Speaker #7: kind of But just your strategy is markdown curious how planned for the today holiday .

Speaker #7: kind of But just your strategy is markdown curious how planned for the today holiday .

Speaker #2: weekend , cyber five , over we stayed the on on plan . We were in terms of our So strategy , we were pleased with how we we're able , you know , to lean out some discount The in .

Speaker 10: Over the weekend, the Cyber Five, we stayed on plan. We were, in terms of our promotional strategy, pleased with how we were able to lean out some discount in the appropriate places within our business, and really believe that that strategy served us well, particularly from a margin perspective. As we head into the holiday selling season, I would say that we are into peak selling. We have a plan that gives us flexibility. You know, I noted that our guide for the fourth quarter gives us some—allows for some variability in consumer spending. I believe, and we believe as a team, that that's a prudent measure just as we navigate our way through the next 70% of business in our quarter. It's important that we retain that flexibility.

Joan Hilson: Over the weekend, the Cyber Five, we stayed on plan. We were, in terms of our promotional strategy, pleased with how we were able to lean out some discount in the appropriate places within our business, and really believe that that strategy served us well, particularly from a margin perspective. As we head into the holiday selling season, I would say that we are into peak selling. We have a plan that gives us flexibility.

Speaker #2: places appropriate our business . And really believe that that strategy served us well from particularly from a margin perspective , as we head into the holiday selling season .

Speaker #2: I that we would say in to peak peak selling . We are . We have a plan that gives us flexibility . You know , I noted that our guide for the fourth quarter is gives us some allows for some variability consumer spending .

You know, I noted that our guide for the fourth quarter gives us some—allows for some variability in consumer spending. I believe, and we believe as a team, that that's a prudent measure just as we navigate our way through the next 70% of business in our quarter. It's important that we retain that flexibility.

Speaker #2: And I believe and we believe in that's a prudent as a measure . Just as we navigate our way through the next 70% of business in our quarter .

Speaker #2: it's important So retain that flexibility . The the discounting , we as we think about it , one of the things from an earlier question is our assortment architecture that we've created for the fourth quarter those price point gives us buckets .

Speaker 10: The discounting, as we think about it, one of the things from an earlier question is our assortment architecture that we've created for the fourth quarter gives us those price point buckets, Ike, that really allow us to serve customers at different levels under $1,000. It provides for, you know, the variability in consumer household incomes that our portfolio spans in terms of the mid-market. Our strategy allows for that not only in promotion, but in assortment architecture. We believe that's just as important. We have a nice assortment in what we would consider wild price points, with depth in those styles that can serve customers under $1,000 and under $100. It's really about understanding the customer for each of the brands.

The discounting, as we think about it, one of the things from an earlier question is our assortment architecture that we've created for the fourth quarter gives us those price point buckets, Ike, that really allow us to serve customers at different levels under $1,000. It provides for, you know, the variability in consumer household incomes that our portfolio spans in terms of the mid-market.

Speaker #2: I that Ike really allow us to serve customers at different levels $1,000 . And it provides for under , you know , the very variability in consumer , household incomes that are portfolio spans in terms of the mid-market .

Speaker #2: So our strategy allows for that not only in promotion but in assortment architecture . We believe that's just as important . We have nice assortment in a what we would consider .

Our strategy allows for that not only in promotion, but in assortment architecture. We believe that's just as important. We have a nice assortment in what we would consider wild price points, with depth in those styles that can serve customers under $1,000 and under $100. It's really about understanding the customer for each of the brands.

Speaker #2: Wow . points in Price with depth in those styles that can serve customers under $1,000 and under $100 . So it's it's really about understanding the customer for each of the brands

Speaker #7: And then

Speaker #7: within that , Joan , could . Got it . you maybe for for Q gross margin plan , specifically , the and could you kind of intertwine your promo plan along whatever the tariff headwind like ?

Speaker 3: Got it. Within that, Joan, could you maybe, you know, for Q4 specifically, the gross margin plan, and could you kind of intertwine your promo plan along with, you know, whatever the tariff headwind is? Like basically, could you stack the puts and takes for Q4 gross margin that's embedded in the EBIT guide?

Ike Boruchow: Got it. Within that, Joan, could you maybe, you know, for Q4 specifically, the gross margin plan, and could you kind of intertwine your promo plan along with, you know, whatever the tariff headwind is? Like basically, could you stack the puts and takes for Q4 gross margin that's embedded in the EBIT guide?

Speaker #7: is with Basically , you stack the and takes for for Q gross margin , that's embedded in the Ebit guide .

Speaker #2: So for fourth quarter , the our rate of gross merchandise margin rate considers flat to flat to a slightly view . up And that's what's giving us the flexibility that we may need , depending on those consumer spending patterns .

Speaker 10: For the fourth quarter, our GMM rate, our gross merchandise margin rate, considers flat to a slightly up view. That's what's giving us the flexibility that we may need depending on those consumer spending patterns. You'll recall, like leading into the third quarter, we had an expansion of 50 basis points. Again, you heard our results this quarter. We're very good in terms of margin expansion. Some of that came from pricing, and a large part of it also came from architecture within the assortment. We're continuing through that, continuing the architecture, but giving ourselves that pricing flexibility. That's the overall view of the GMM. As you know, and we've said in the past, our gross margin, we're able to leverage gross margin on a slightly positive comp.

Joan Hilson: For the fourth quarter, our GMM rate, our gross merchandise margin rate, considers flat to a slightly up view. That's what's giving us the flexibility that we may need depending on those consumer spending patterns. You'll recall, like leading into the third quarter, we had an expansion of 50 basis points. Again, you heard our results this quarter. We're very good in terms of margin expansion.

Speaker #2: You'll recall , like into leading the the third quarter , we had an expansion of 50 basis points again , . And heard you our our results this quarter .

Speaker #2: We're very good in terms of margin expansion . Some of that came from pricing and a large part of it also came from architecture within the assortment .

Some of that came from pricing, and a large part of it also came from architecture within the assortment. We're continuing through that, continuing the architecture, but giving ourselves that pricing flexibility. That's the overall view of the GMM. As you know, and we've said in the past, our gross margin, we're able to leverage gross margin on a slightly positive comp.

Speaker #2: we're continuing So through that . But giving our continuing the architecture but giving ourselves that pricing flexibility . So that's that's the overall view of the GMM .

Speaker #2: As you know , and we've said in the past that our gross margin , we're able to leverage gross margin on a slightly positive comp .

Speaker #2: so And considers , you know , just some of the work that we've been operating model doing in our , efficiency within our distribution centers , we .

Speaker 10: That considers, you know, just some of the work that we've been doing in our operating model efficiency within our distribution centers. We actually took advantage of, and will continue to do so in the fourth quarter. We took advantage of the gold pricing and accelerated some planned scrap recovery that we typically do in our business, but we accelerated it to take advantage of the pricing. We're taking all of those measures in hand and bringing those forward into the fourth quarter as well.

That considers, you know, just some of the work that we've been doing in our operating model efficiency within our distribution centers. We actually took advantage of, and will continue to do so in the fourth quarter. We took advantage of the gold pricing and accelerated some planned scrap recovery that we typically do in our business, but we accelerated it to take advantage of the pricing. We're taking all of those measures in hand and bringing those forward into the fourth quarter as well.

Speaker #2: Actually took advantage of and we'll continue to do so in the fourth quarter . We took advantage of the pricing and accelerated some plans gold that recovery scrap that we typically do in our business , but we accelerated it to take advantage of the So pricing .

Speaker #2: we're taking all of those measures hand and bringing those forward into the fourth quarter as well in .

Speaker #7: Just so I'm clear . So the the merch margin flat to up . But if the is comp would gross be down due margin to due to negative , deleverage on fixed costs within Cogs ?

Speaker 3: Just so I'm clear, the merch margin flat to up, but if the comp is negative, would gross margin be down due to deleverage on fixed costs within COGS?

Ike Boruchow: Just so I'm clear, the merch margin flat to up, but if the comp is negative, would gross margin be down due to deleverage on fixed costs within COGS?

Speaker #2: Yes . That's that's accurate okay .

Speaker #7: Thanks guys All right . .

Speaker 10: Yes, that's accurate.

Joan Hilson: Yes, that's accurate.

Speaker #4: Your next question comes from Dana Telsey with Tesla Your line Group . open .

Speaker 3: Okay. All right. Thanks, guys.

Ike Boruchow: Okay. All right. Thanks, guys.

Speaker #8: Hi . Good morning everyone and nice to see the progress . I think you had mentioned about some smaller banners of the Allen or Banter James for the second half of the year .

Speaker 10: Your next question comes from Dana Telsey with Telsey Advisory Group. Your line is now open.

Lorraine Hutchinson: Your next question comes from Dana Telsey with Telsey Advisory Group. Your line is now open.

Speaker 11: Hi, good morning, everyone. Nice to see the progress. I think you had mentioned about some of the smaller banners like James Allen or Banter for the second half of the year, a guide towards a 60 to 90 basis point margin drag. Is that still in place, or has anything changed there? Two other things, given the upcoming holiday season and the opportunity for this year, what is the percentage of newness that you're thinking about in the assortment, whether for bridal or fashion for this fourth quarter? Joan, any updates on the real estate optimization plans? Thank you.

Dana Telsey: Hi, good morning, everyone. Nice to see the progress. I think you had mentioned about some of the smaller banners like James Allen or Banter for the second half of the year, a guide towards a 60 to 90 basis point margin drag. Is that still in place, or has anything changed there? Two other things, given the upcoming holiday season and the opportunity for this year, what is the percentage of newness that you're thinking about in the assortment, whether for bridal or fashion for this fourth quarter? Joan, any updates on the real estate optimization plans? Thank you.

Speaker #8: A guide toward the 60 to 90 basis point margin drag. Is that still in place or has anything changed there?

Speaker #8: And two other things: given the upcoming season and the opportunity for this year, what is the percentage of newness that holiday you're thinking about in the assortment, whether for bridal or fashion?

Speaker #8: For this , for this fourth quarter ? And Joan , any updates on the real estate optimization plans ? Thank you .

Speaker #2: So I'll start with James Allen now, right? Our guide assumes that we are, it would negatively impact comps by 120 basis points.

Speaker 10: I'll start with James Allen. Right now, our guide would assume that we are—it would negatively impact comps by 120 basis points. It's been relatively consistent, you know, throughout the back half. We've seen some slight improvement in certain, you know, periods of time, but overall, that's the negative impact that we would see on overall comp. We saw it in this quarter, and we would expect the same in the fourth quarter. With respect to newness, we target roughly 30%, Dana. The most important part of that is what is the content of the newness, and the depth in styles. In the past, we may, as we saw last year, we had a breadth of assortment, but weren't deep enough in styles that were resonating with the customer.

Joan Hilson: I'll start with James Allen. Right now, our guide would assume that we are—it would negatively impact comps by 120 basis points. It's been relatively consistent, you know, throughout the back half. We've seen some slight improvement in certain, you know, periods of time, but overall, that's the negative impact that we would see on overall comp. We saw it in this quarter, and we would expect the same in the fourth quarter.

Speaker #2: It's been relatively consistent , you know , throughout the back half . We've seen some slight improvement in certain , you know , periods of time .

Speaker #2: overall But the that's the negative impact that we would see on overall comp the in we saw it in this quarter and we would expect the same in the fourth quarter .

Speaker #2: respect to With newness , we target roughly 30% . Dana , the the most important part of that is what is the newness content of the depth in in styles .

With respect to newness, we target roughly 30%, Dana. The most important part of that is what is the content of the newness, and the depth in styles. In the past, we may, as we saw last year, we had a breadth of assortment, but weren't deep enough in styles that were resonating with the customer.

Speaker #2: And so in the past , we may and the , as we saw last year , we had a of breadth assortment but weren't deep enough in styles that resonating with the were customer .

Speaker #2: So while the factor that the percentage is important , it's the content and depth of the key item that's most important . And and then the the real estate update I in , in mentioned it my prepared remarks , but we're very pleased with the results refresh in our program .

Speaker 10: While the factor, the percentage is important, it's the content and depth of the key item that's most important. The real estate update, I mentioned it in my prepared remarks, but we're very pleased with the results in our refresh program. You know, it's up mid-single digit comps from the brands that we've refreshed, largely our largest brands. The renovations have been particularly strong for us, just over a two-year payback. You can really see the results of that within our Jared business. The team has done a terrific job in bringing to the customer a more modern view of that brand and upscale the interior to meet the product assortment that has been leveled up from an offering perspective, but obviously while maintaining the right assortment architecture to, you know, cover a wide range of price points. Really pleased with that.

While the factor, the percentage is important, it's the content and depth of the key item that's most important. The real estate update, I mentioned it in my prepared remarks, but we're very pleased with the results in our refresh program. You know, it's up mid-single digit comps from the brands that we've refreshed, largely our largest brands. The renovations have been particularly strong for us, just over a two-year payback.

Speaker #2: And you know , it's up mid-single digit comps from the that brands we've refreshed largely our our largest brands and the renovations have been particularly strong for us .

Speaker #2: Just over a two-year payback, and you can really see the result of that within our Jared business. The team has done a terrific job in bringing to the customer a more modern view of that brand.

You can really see the results of that within our Jared business. The team has done a terrific job in bringing to the customer a more modern view of that brand and upscale the interior to meet the product assortment that has been leveled up from an offering perspective, but obviously while maintaining the right assortment architecture to, you know, cover a wide range of price points. Really pleased with that.

Speaker #2: And upscale the interior to meet assortment product that has been leveled up an from offering perspective But , perspective . obviously , while maintaining the right assortment architecture to , you know , cover a wide range of price points .

Speaker #2: So pleased really with that . We are still intend to close , you know , up to 100 stores this year and over the next two years that we think it's roughly 150 stores , of several those Dean are in banter , are which , you know , have been in declining malls .

Speaker 10: We still intend to close, you know, up to 100 stores this year. Over the next two years, we think it's roughly 150 stores. Several of those, Dana, are in Banter, which are, you know, have been in declining malls. We'll understand if there's a reposition strategy for those locations. Banter is a highly productive brand for us, and it has a strong store wall contribution. We'll really evaluate where the future might be in terms of newer locations for that brand.

We still intend to close, you know, up to 100 stores this year. Over the next two years, we think it's roughly 150 stores. Several of those, Dana, are in Banter, which are, you know, have been in declining malls. We'll understand if there's a reposition strategy for those locations. Banter is a highly productive brand for us, and it has a strong store wall contribution. We'll really evaluate where the future might be in terms of newer locations for that brand.

Speaker #2: And we will understand if there's a reposition strategy for those locations. Banter is a highly productive brand for us, and it has a strong store for wall contribution.

Speaker #2: And so we'll evaluate where the future might be in terms of newer locations for that brand.

Speaker #8: Thank you .

Speaker #4: Your next question comes from Jeff Flick with Stephens. Your line is now open.

Speaker 11: Thank you.

Dana Telsey: Thank you.

Speaker #9: Good . Thanks for morning my taking question . I was wondering if you could maybe unpack a little bit more . I think those us who have been following the story , you know , we've all looked at Q4 as this kind of this battle between the consumer versus the improvements you're making .

Speaker 10: Your next question comes from Jeff Lick with Stephens. Your line is now open.

Operator: Your next question comes from Jeff Lick with Stephens. Your line is now open.

Speaker 3: Good morning. Thanks for taking my question. You know, I was wondering if you could maybe unpack a little bit more. You know, I think those of us who have been following the story, you know, we've all looked at Q4 as this kind of this battle between the consumer versus, you know, the improvements you're making. You know, if I use last year's EBITDA, you know, 394, and then the high end of your EBITDA this year at 374, you know, it kind of implies that almost no matter what, the consumer element is a bigger factor than, you know, the improvements that you're making. It kind of seems like, you know, your improvements are, you know, whether it's the fashion or just, you know, the lab-grown diamonds. You know, could you maybe just unpack?

Jeff Lick: Good morning. Thanks for taking my question. You know, I was wondering if you could maybe unpack a little bit more. You know, I think those of us who have been following the story, you know, we've all looked at Q4 as this kind of this battle between the consumer versus, you know, the improvements you're making.

Speaker #9: If I use last year's EBITDA of end 394 and then the high of your EBITDA this year at 374 , you know , it kind of implies that almost no matter what the consumer element is a bigger factor than the improvements that you're making .

You know, if I use last year's EBITDA, you know, 394, and then the high end of your EBITDA this year at 374, you know, it kind of implies that almost no matter what, the consumer element is a bigger factor than, you know, the improvements that you're making. It kind of seems like, you know, your improvements are, you know, whether it's the fashion or just, you know, the lab-grown diamonds. You know, could you maybe just unpack?

Speaker #9: It kind of seemed like , you know , your improvements are , you know , whether it's the fashion or just , you know , the lab grown diamonds , you know , could you maybe just unpack ?

Speaker #9: Are we is that how it should be read , or is it is it possible that things could come in much better because , you know , from the get go , it seems like the the consumer element seems to be a much bigger factor than the what was thought to be pretty sizable improvements potential for Q4 this year .

Speaker 3: Is that how it should be read, or is it possible that, you know, things could come in much better? Because, you know, from the get-go, it seems like the consumer element seems to be a much bigger factor than what was thought to be pretty sizable improvements potential for Q4 this year.

Is that how it should be read, or is it possible that, you know, things could come in much better? Because, you know, from the get-go, it seems like the consumer element seems to be a much bigger factor than what was thought to be pretty sizable improvements potential for Q4 this year.

Speaker #1: Jeff , Yeah , maybe , maybe John and I can tag team this one . I think there's there's there's two things to to unpack there .

Speaker 2: Yeah, Jeff, maybe Joan and I can tag team this one. I think there's two things to unpack there. You know, as far as, you know, any sort of guardedness on Q4, you know, I do think from day one, you know, of this year, we have, despite the opportunity for improvement and top line for Q4, we've been a little bit guarded just knowing that some of the consumer uncertainty, what that may mean to the competitive landscape, and want to retain the flexibility to be responsive in the market to their needs, as well as, you know, some of the curveballs as it relates to cost, not just on the commodity side, but especially with tariffs. Those have all been considerations, and, you know, led to what has been actually a pretty consistent guide for Q4 from day one.

JK Symancyk: Yeah, Jeff, maybe Joan and I can tag team this one. I think there's two things to unpack there. You know, as far as, you know, any sort of guardedness on Q4, you know, I do think from day one, you know, of this year, we have, despite the opportunity for improvement and top line for Q4, we've been a little bit guarded just knowing that some of the consumer uncertainty, what that may mean to the competitive landscape, and want to retain the flexibility to be responsive in the market to their needs, as well as, you know, some of the curveballs as it relates to cost, not just on the commodity side, but especially with tariffs.

Speaker #1: You know , as far as , as , you know , any sort of guardedness on Q4 , I , you know , I do think from day one , you know , of this have year , we despite the opportunity for improvement and top line for Q4 , we've been a little bit guarded .

Speaker #1: knowing Just that some of the consumer uncertainty , what that may mean to the competitive landscape , we want to retain the flexibility to be responsive in the market to their needs , as well as , you know , some of the curveballs as it relates to just on the cost , not commodity side , but especially with tariffs .

Speaker #1: Those have all been considerations and know , you , led to what has been a actually a pretty consistent guide for Q4 from day one , when you when you're looking at at , you know , Ebit for that quarter , incentive comp is a pretty big factor when thinking you start about , you know , the reload of incentive comp and how that plays out .

Those have all been considerations, and, you know, led to what has been actually a pretty consistent guide for Q4 from day one.When you're looking at, you know, EBIT for that quarter, incentive comp is a pretty big factor when you start thinking about, you know, the reload of incentive comp and how that plays out. It's, you know, you've got a little bit of apples and oranges that may be going into the comparison there.

Speaker 2: When you're looking at, you know, EBIT for that quarter, incentive comp is a pretty big factor when you start thinking about, you know, the reload of incentive comp and how that plays out. It's, you know, you've got a little bit of apples and oranges that may be going into the comparison there. Listen, I think this is an environment where, you know, we also want to retain the ability to be responsive to the, you know, to the consumer at a time period where, you know, they have been dealing with a lot. We feel like, you know, maintaining that flexibility to continue to drive momentum is really important for us. I think our guide reflects that.

Speaker #1: And so it's , you know , you've got a got a little bit of apples and oranges that , that , that may be going into the comparison there .

Speaker #1: But I listen , I , I think this an is environment where , you know , we , we also want to retain the ability to be responsive to the , you know , to the at a , at a time consumer period they have been dealing where , you know , with a lot and we feel like , know , you maintaining that flexibility to continue to drive momentum is , is really important for us .

Listen, I think this is an environment where, you know, we also want to retain the ability to be responsive to the, you know, to the consumer at a time period where, you know, they have been dealing with a lot. We feel like, you know, maintaining that flexibility to continue to drive momentum is really important for us. I think our guide reflects that. You know, I don't know, Joan, if there's anything you want to add to it, but that's, if I were trying to summarize or give you a synopsis of maybe how to square up those two parts of the story, that's the intersection that makes sense to me.

Speaker #1: And I think our guide reflects that . And so , you know , I don't know if there's anything you want to add to it .

Speaker #1: But that's that's if I were trying to summarize or give you a synopsis of maybe how to to square up those two parts of the story .

Speaker 2: You know, I don't know, Joan, if there's anything you want to add to it, but that's, if I were trying to summarize or give you a synopsis of maybe how to square up those two parts of the story, that's the intersection that makes sense to me.

Speaker #1: That's the intersection that makes sense to me.

Speaker #2: The I'd add is that , you know , our only thing Q3 momentum , we feel the business , you know , has had momentum , has momentum .

Speaker 10: The only thing I'd add is that, you know, our Q3 momentum, we feel the business, you know, has had momentum, has momentum. We are seeing a stronger, we're seeing a slight increase in conversion rate, which to us speaks to the architecture and the assortment that we're bringing forward. We are able to, you know, reset some of the, with respect to tariffs, we've been able to, you know, offset those while, you know, driving in the assortment architecture that continues to aid us in merchandise margin. That's a positive, Jeff. I think, you know, some deleverage on fixed costs at the lower end of our guide is part of that.

Joan Hilson: The only thing I'd add is that, you know, our Q3 momentum, we feel the business, you know, has had momentum, has momentum. We are seeing a stronger, we're seeing a slight increase in conversion rate, which to us speaks to the architecture and the assortment that we're bringing forward. We are able to, you know, reset some of the, with respect to tariffs, we've been able to, you know, offset those while, you know, driving in the assortment architecture that continues to aid us in merchandise margin. That's a positive, Jeff. I think, you know, some deleverage on fixed costs at the lower end of our guide is part of that.

Speaker #2: We are seeing a stronger . We're seeing a slightly increase in a slight increase in conversion rate , which to us speaks to the the architecture and the assortment that we're bringing forward .

Speaker #2: We are able to , you know , reset some of with respect to We've been tariffs . able to , you know , offset those you while , know , driving in this the assortment architecture that continues to aid us in merchandise margin .

Speaker #2: So that's a that's a positive , Jeff . And then I you know some think , deleverage on fixed costs at the the lower the lower end of our guide is is part of that .

Speaker #2: But to JC's point in almost at the high guide , we expect a deleverage in a but it's know entirely , you , related to the incentive comp reset .

Speaker 10: To JK's point, almost at the hike, we expect a deleverage in SG&A, but it's entirely, you know, related to the incentive comp reset, much of what we saw in third quarter. At the low end of the guide, it's really to a lesser degree incentive comp, but also that fixed cost deleverage. We'd like the assortment, we'd like the position, and just responding to what might happen at the range of our guide.

To JK's point, almost at the hike, we expect a deleverage in SG&A, but it's entirely, you know, related to the incentive comp reset, much of what we saw in third quarter. At the low end of the guide, it's really to a lesser degree incentive comp, but also that fixed cost deleverage. We'd like the assortment, we'd like the position, and just responding to what might happen at the range of our guide.

Speaker #2: Much of what we saw in third quarter the low and at end of the guide , really it's to a lesser degree , incentive comp .

Speaker #2: But also that fixed cost deleverage . So we we'd like the assortment , we'd like the position and just responding to what happen might at the at the range of our guide .

Speaker #9: And Yeah . don't misunderstand the question . I think it's to give the prudent guidance that you gave . We're just trying to handicap those two kind of opposing forces .

Speaker 3: Oh, yeah. Don't misunderstand the question. I think it's prudent to give the guidance that you gave. We're just trying to, you know, handicap those two kind of opposing forces. You know, one quick question on the Indian tariffs. Is there any chance you can give us a sense of the dollar amount if, let's say, tariffs were to go back to, say, 25%, 20%, which is kind of what the other countries are getting? You know, how much of an eventual, obviously, it won't be instant because of the way inventory turns, but how much of a get-back, or how much dollars have you absorbed or could you get back?

Jeff Lick: Oh, yeah. Don't misunderstand the question. I think it's prudent to give the guidance that you gave. We're just trying to, you know, handicap those two kind of opposing forces. You know, one quick question on the Indian tariffs. Is there any chance you can give us a sense of the dollar amount if, let's say, tariffs were to go back to, say, 25%, 20%, which is kind of what the other countries are getting? You know, how much of an eventual, obviously, it won't be instant because of the way inventory turns, but how much of a get-back, or how much dollars have you absorbed or could you get back?

Speaker #9: One quick question on on the Indian tariffs . Is there any chance you can give a us sense of dollar the amount let's if , say , tariffs were to go back to , say , 25% , 20% , which is kind of what the other countries are getting , how much of a eventual obviously it won't be instant because of the way inventory turns , but how much of a get back or how much dollars have you absorbed ?

Speaker #9: you get Or could back ?

Speaker #1: a That's I that that is in this world that is a a what should be a simple question . But but is is actually much harder .

Speaker 2: That is, in this world, that is what should be a simple question, but is actually much harder. Only because, you know, in some cases, we made decisions around relocating to different country of origin or even potentially changing design and what we would buy to, you know, to maintain not just assortment architecture, but margin architecture and some of those things. I would say, you know, the, gosh, because we haven't dimensionalized a headwind, I can't as easily articulate what the give-back may be. I would say, you know, the plus of that pullback would be the range of product and the predictability of supply chain relative to really being able to lean into top line driving performance is greatly aided by a reduction in tariffs.

JK Symancyk: That is, in this world, that is what should be a simple question, but is actually much harder. Only because, you know, in some cases, we made decisions around relocating to different country of origin or even potentially changing design and what we would buy to, you know, to maintain not just assortment architecture, but margin architecture and some of those things. I would say, you know, the, gosh, because we haven't dimensionalized a headwind, I can't as easily articulate what the give-back may be.

Speaker #1: Only because , you know , in some cases we've made decisions around relocating to different country of origin or even potentially changing design .

Speaker #1: And what we would buy to , to , you know , to maintain not just assortment architecture , but margin architecture and some of those , you know , some of those things .

Speaker #1: So it's it's , you know , I would say the , you know , the gosh , it's because we haven't dimensionalized the headwind .

Speaker #1: can't , you know , I I can't as easily articulate what the give back may be . I would say , you the know , , the plus of of that pullback would be , you know , the , the range of product and the predictability of , of supply chain relative to really being able to lean into top driving line performance is , is greatly aided by a reduction in tariffs .

I would say, you know, the plus of that pullback would be the range of product and the predictability of supply chain relative to really being able to lean into top line driving performance is greatly aided by a reduction in tariffs. I think one of the challenges that, you know, that many retailers, not just us, are, you know, facing as it relates to the timing of some of the tariff announcements is literally running out of runway relative to Q4 and having to make decisions on what do you pass on, what do you absorb, what do you not do that maybe you would have considered before.

Speaker #1: think I one of the challenges that , you that know , many retailers , not just us or , you facing as it relates to to the timing of some of the tariff announcements , is literally running out of runway relative to Q4 and having to make decisions what do you on pass on , absorb , what do you not what do you do that that maybe you would have considered before ?

Speaker 2: I think one of the challenges that, you know, that many retailers, not just us, are, you know, facing as it relates to the timing of some of the tariff announcements is literally running out of runway relative to Q4 and having to make decisions on what do you pass on, what do you absorb, what do you not do that maybe you would have considered before. Above all, I mean, listen, I think our team has done an exceptional job of navigating that uncertainty and positioning us to be there for the consumer, not just for Q4, but delivering this performance throughout the year. Honestly, some of what we've had to develop in terms of nimbleness and responsiveness within the supply chain, that's going to carry a benefit for us moving forward.

Speaker #1: And so , above all , I mean , I listen , think our I team has done a , a an exceptional job of navigating that uncertainty and positioning us to to be there for consumer , the not just for Q4 , but but delivering this performance throughout the year .

Above all, I mean, listen, I think our team has done an exceptional job of navigating that uncertainty and positioning us to be there for the consumer, not just for Q4, but delivering this performance throughout the year. Honestly, some of what we've had to develop in terms of nimbleness and responsiveness within the supply chain, that's going to carry a benefit for us moving forward.

Speaker #1: And honestly , some of what we've had to develop in terms of nimbleness and responsiveness within the supply chain to carry a , that's going benefit for us moving forward .

Speaker #1: I mean , the better we are at controlling our inventory and really mastering all of the input costs that come along the supply chain for a scale player like gives us a competitive advantage .

Speaker 2: I mean, the better we are at controlling our inventory and really mastering all of the input costs that come along the supply chain for a scale player like us gives us a competitive advantage. You know, in the classic sense of, you know, that which does not kill you makes you stronger, like this is one of those things that, you know, we're finding the blessing in it and, you know, going to leverage that to our benefit moving forward. That uncertainty and the short runway leading up to Q4 certainly hamstrings some of the degrees of freedom relative to assortment planning and, you know, would only benefit from stability, particularly if that stability comes with a more moderate tariff than what we've been dealing with. I know I didn't answer your question relative to dollar amount.

I mean, the better we are at controlling our inventory and really mastering all of the input costs that come along the supply chain for a scale player like us gives us a competitive advantage. You know, in the classic sense of, you know, that which does not kill you makes you stronger, like this is one of those things that, you know, we're finding the blessing in it and, you know, going to leverage that to our benefit moving forward.

Speaker #1: And so , you know , in the the in classic sense of , you know , that which does not kill you , makes you stronger .

Speaker #1: Like this is this is one of those things that , you know , we're we're finding the blessing in it . And , and going to , you know , leverage that to our moving benefit , forward .

Speaker #1: But that uncertainty and the short runway leading up to Q4 certainly hamstrings some of the degrees of freedom relative to assortment planning and , you know , would would only benefit from stability , particularly if that stability comes with a more moderate tariff than than what we've been dealing with .

That uncertainty and the short runway leading up to Q4 certainly hamstrings some of the degrees of freedom relative to assortment planning and, you know, would only benefit from stability, particularly if that stability comes with a more moderate tariff than what we've been dealing with. I know I didn't answer your question relative to dollar amount.

Speaker #1: And so I know I didn't answer your question relative to dollar amount . It's hard because we never gave you a dollar amount on the front side .

Speaker #1: I But at least want to convey to you that we're thoughtful what levers around for us to pull that can be accretive to business the .

Speaker 2: It's hard because we never gave you a dollar amount on the front side, but I at least want to convey to you that we're thoughtful around what levers there are for us to pull that can be accretive to the business, you know, ultimately when we land at a little more normalized state relative to the tariff environment.

It's hard because we never gave you a dollar amount on the front side, but I at least want to convey to you that we're thoughtful around what levers there are for us to pull that can be accretive to the business, you know, ultimately when we land at a little more normalized state relative to the tariff environment.

Speaker #1: You know , ultimately , when we land at a little more normalized state relative to the tariff environment .

Speaker #9: So I guess the clues that from a qualitative basis , if the thing in the tariff landscape that changes next year is that the tariffs go down , obviously , because the tariffs seem to be a little more set at this point .

Speaker 3: I guess to close that, then from a qualitative basis, if the only thing in the tariff landscape that changes next year is that the Indian tariffs go down, obviously, because the other tariffs seem to be a little more set at this point, you kind of have an idea of the landscape. If the Indian tariffs go down, all things being equal, that's going to be a positive for 2027 and beyond.

Rob Ballew: I guess to close that, then from a qualitative basis, if the only thing in the tariff landscape that changes next year is that the Indian tariffs go down, obviously, because the other tariffs seem to be a little more set at this point, you kind of have an idea of the landscape. If the Indian tariffs go down, all things being equal, that's going to be a positive for 2027 and beyond.

Speaker #9: So you kind of have an idea of of the landscape , but the go Indian tariffs down , all if things being equal , that's going to be a positive for 2027 and beyond .

Speaker #1: Yeah , it should I mean think I inherently , you know , quantifying . Quantifying the you know the the overall dollar , you know , impact a little bit harder thing to do .

Speaker 2: Yeah, it should. I mean, I think inherently, you know, quantifying the, you know, the overall, you know, dollar impact, I think is a little bit harder thing to do, but absolutely that gives you more opportunity to play offense.

JK Symancyk: Yeah, it should. I mean, I think inherently, you know, quantifying the, you know, the overall, you know, dollar impact, I think is a little bit harder thing to do, but absolutely that gives you more opportunity to play offense.

Speaker #1: But I think that gives you more opportunities to play offense.

Speaker #9: Awesome . Well best of luck with the fourth quarter and look forward to catching up soon .

Speaker #1: Jeff Thanks , .

Speaker #9: Thank you .

Speaker 3: Awesome. Well, best of luck with the fourth quarter, and look forward to catching up soon.

Jeff Lick: Awesome. Well, best of luck with the fourth quarter, and look forward to catching up soon.

Speaker #4: Your next question comes from Mauricio with Serna UBS . Your line is now open .

Speaker 2: Thanks, Jeff.

JK Symancyk: Thanks, Jeff.

Speaker 3: Thank you.

Jeff Lick: Thank you.

Speaker #10: Great . Good morning . Thanks for taking my questions . Just a point of clarification on the Q4 guidance . You know , when you said that , you know , you are within within well the does that range , mean you're at the top end ?

Speaker 10: Your next question comes from Mauricio Serna with UBS. Your line is now open.

Operator: Your next question comes from Mauricio Serna with UBS. Your line is now open.

Speaker 11: Greg, good morning. Thanks for taking my questions. Just a point of clarification on the Q4 guidance. You know, when you said that, you know, you are within, well within the range, does that mean you're at the top end, you know, midpoint? I'm just trying to understand that part of the guidance. Also on Q4, thinking about the promotional environment, can you talk about what you've seen so far in terms of like, you know, at an industry level, what you've seen in promotions? Do you expect that to maybe year over year be more intense, be in line? Just any thoughts on what you're thinking about that, the promotional environment will be great. Thank you so much.

Mauricio Serna: Greg, good morning. Thanks for taking my questions. Just a point of clarification on the Q4 guidance. You know, when you said that, you know, you are within, well within the range, does that mean you're at the top end, you know, midpoint? I'm just trying to understand that part of the guidance.

Speaker #10: You know , midpoint ? I'm understand that part of the guidance . And then on also on Q4 , thinking about the promotional environment , can about what you've seen so far in terms of like , you know , an industry level , what you've seen in promotions , and do you expect that to maybe year over year be more intense , be in line ?

Also on Q4, thinking about the promotional environment, can you talk about what you've seen so far in terms of like, you know, at an industry level, what you've seen in promotions? Do you expect that to maybe year over year be more intense, be in line? Just any thoughts on what you're thinking about that, the promotional environment will be great. Thank you so much.

Speaker #10: Just any thoughts on what you're thinking about the promotional environment would be great . Thank you so much .

Speaker #2: So we articulated that we're within the range well our our top line guidance . Mauricio . And the reason that we can , you know , position ourselves with that statement is that historically , when you think about the fact that the Friday Black weekend is a very small piece of of the overall quarter and that the from run rate of the November month to date into the the holiday selling period , even last year as well , with some of the assortment we've had , we see improved run rate historically from November to December as historical we've seen over the last several . years .

Speaker #2: So we articulated that we're within the range well our our top line guidance . Mauricio . And the reason that we can , you know , position ourselves with that statement is that historically , when you think about the fact that the Friday Black weekend is a very small piece of of the overall quarter and that the from run rate of the November month to date into the the holiday selling period , even last year as well , with some of the assortment we've had , we see improved run rate historically from November to December as historical we've seen over the last several .

Speaker 1: We articulated that we are well within the range of our top line guidance, Mauricio. The reason that we can, you know, position ourselves with that statement is that historically, when you think about the fact that the Black Friday weekend is a very small piece of the overall quarter and that from the run rate of the November month to date into the holiday selling period, even last year as well with some of the assortment gaps that we've had, we see improved run rate historically from November to December as historical, and we've seen over the last several years. It's really more pertinent to think about the overall guide and understanding the variability in the range is just giving us, you know, a range of outcome that gives flexibility for some of the pricing actions, particularly with EBIT.

Joan Hilson: We articulated that we are well within the range of our top line guidance, Mauricio. The reason that we can, you know, position ourselves with that statement is that historically, when you think about the fact that the Black Friday weekend is a very small piece of the overall quarter and that from the run rate of the November month to date into the holiday selling period, even last year as well with some of the assortment gaps that we've had, we see improved run rate historically from November to December as historical, and we've seen over the last several years.

Speaker #2: So it's really And it's more pertinent to think about the overall guide and understanding the in in the range is variability just giving us , you know , a range of outcome that gets flexibility for some of the pricing actions , particularly with Ebit .

It's really more pertinent to think about the overall guide and understanding the variability in the range is just giving us, you know, a range of outcome that gives flexibility for some of the pricing actions, particularly with EBIT.Without being specific, we feel that our business has momentum, and as we look into December, based on our assortment, we are cautiously optimistic about the outcome.

Speaker #2: So without being specific , we we feel that our business has momentum . And as we look into December , based on our assortment , we we are cautiously optimistic about the outcome .

Speaker 1: Without being specific, we feel that our business has momentum, and as we look into December, based on our assortment, we are cautiously optimistic about the outcome.

Speaker #1: And I think as far as promotion is concerned , you know , I , I just think in this kind of consumer environment , it's it's wise for us to be prepared for it .

Speaker 2: I think as far as promotion is concerned, you know, I just think in this kind of consumer environment, it's wise for us to be prepared for it. You know, we've seen a little bit more promotional response, I think, you know, with some of the consumer confidence questions that have emerged in November. You know, I think we're well positioned to be able to deliver on the right value propositions as we get into the real crunch time for our business. Nothing, you know, exceptional that I would quantify at this point, Mauricio, but I think anytime you've got a consumer that's dealing with uncertainty, it's wise for us to plan for it and to remain, you know, flexible to be responsive so that we can drive top line during a really important time of year.

JK Symancyk: I think as far as promotion is concerned, you know, I just think in this kind of consumer environment, it's wise for us to be prepared for it. You know, we've seen a little bit more promotional response, I think, you know, with some of the consumer confidence questions that have emerged in November. You know, I think we're well positioned to be able to deliver on the right value propositions as we get into the real crunch time for our business.

Speaker #1: seen You know , we've little a bit more promotional response . I think , know you , with , with some of the , the consumer confidence questions that have emerged in November and , and , I think you know , we're well positioned to be deliver on able to the right value propositions as , as we into get crunch time for our the real business .

Speaker #1: So nothing , you exceptional that I would quantify at this but I Mauricio , point , think anytime you've got a consumer that's dealing with uncertainty , it's it's wise for us to to plan for it and to flexible , to be responsive so that we can remain , drive top line during during really important time of year .

Nothing, you know, exceptional that I would quantify at this point, Mauricio, but I think anytime you've got a consumer that's dealing with uncertainty, it's wise for us to plan for it and to remain, you know, flexible to be responsive so that we can drive top line during a really important time of year.

Speaker #10: Thank you so much and good luck on Q4 .

Speaker #1: Yeah. Thanks, Mauricio.

Speaker #4: Your next question comes from Jim Sanderson with Northcoast Research. You are now open.

Speaker 11: Got it. Thank you so much, and good luck on Q4.

Mauricio Serna: Got it. Thank you so much, and good luck on Q4.

Speaker 2: Yeah, thanks, Mauricio.

JK Symancyk: Yeah, thanks, Mauricio.

Speaker 10: Your next question comes from Jim Sanderson with North Coast Research. Your line is now open.

Operator: Your next question comes from Jim Sanderson with North Coast Research. Your line is now open.

Speaker #11: Hey , thanks for the question . And congratulations on a great third quarter . I wanted a little bit to dig in more to the fourth quarter The the lower range , the negative 5% , guidance .

Speaker 4: Hey, thanks for the question and congratulations on a great third quarter. I wanted to dig in a little bit more to the fourth quarter guidance, the lower range, the negative 5%. Given the strength you've had in average unit revenues to date, what would it take with respect to average unit volume declines to get to that negative 5% in fourth quarter, both in bridal and in fashion? Just trying to get a sense of where the greatest risk or weakness can emerge for the fourth quarter.

Jim Sanderson: Hey, thanks for the question and congratulations on a great third quarter. I wanted to dig in a little bit more to the fourth quarter guidance, the lower range, the negative 5%. Given the strength you've had in average unit revenues to date, what would it take with respect to average unit volume declines to get to that negative 5% in fourth quarter, both in bridal and in fashion? Just trying to get a sense of where the greatest risk or weakness can emerge for the fourth quarter.

Speaker #11: Had, in average unit strength revenues, what would it take with respect to average unit volume declines to get to that -5% in the fourth quarter, both in bridal and in fashion?

Speaker #11: Just sense of trying to get a where the greatest risk or could weakness emerge for the fourth quarter.

Speaker #2: I'll take that , Jim . I with respect to the low guide end of our bridal units , would down roughly b digit mid-single which would and also fashion units would also be down .

Speaker 1: I'll take that, Jim. With respect to the low end of our guide, bridal units would be down roughly mid-single digit, which would also, fashion units would also be down, you know, similarly. That's the view of units. We feel that even at the high end of the guide, bridal can be down low single digit in Q4 and achieve our guidance. We feel very good about the performance that we're seeing in bridal, particularly in our large brands. We're seeing a, you know, high single digit comp in bridal in, you know, Kay, Zales, and Peoples, which is not one of the larger brands, but, you know, it's doing quite nicely. Feel good about the positioning of where the guidance is positioned relative to bridal and to fashion.

Joan Hilson: I'll take that, Jim. With respect to the low end of our guide, bridal units would be down roughly mid-single digit, which would also, fashion units would also be down, you know, similarly. That's the view of units. We feel that even at the high end of the guide, bridal can be down low single digit in Q4 and achieve our guidance. We feel very good about the performance that we're seeing in bridal, particularly in our large brands. We're seeing a, you know, high single digit comp in bridal in, you know, Kay, Zales, and Peoples, which is not one of the larger brands, but, you know, it's doing quite nicely. Feel good about the positioning of where the guidance is positioned relative to bridal and to fashion.

Speaker #2: You know , similarly . So that's the the view of units . We feel that even at the end of the at the high bridal , guide bridal can be down low single in digit Q4 and and achieve our guidance .

Speaker #2: And so feel good very we about the performance that we're seeing in bridal , particularly particularly in our large seeing brands a , single digit know , high comp in bridal in .

Speaker #2: sales and peoples , which is not brands , but one of the larger , you know , it's doing quite nicely . So feel good about the positioning , of of of where the We're guidance is , is positioned relative to bridal and and to fashion .

Speaker #11: All right . So but to to make sure I understand that even at the higher end , you would expect units to be let's say down digits low single for the bridal category .

Speaker 4: All right. To make sure I understand, even at the higher end, you would expect units to be down, let's say, low single digits for the bridal category. That's the right way to look at it?

Jim Sanderson: All right. To make sure I understand, even at the higher end, you would expect units to be down, let's say, low single digits for the bridal category. That's the right way to look at it?

Speaker #11: That's the that's correct . Look at it . Okay . Understood . And just no thank you . Thank you . And just a question on the promotional environment .

Speaker #11: Are you satisfied with your price position , promotional price position relative to peers as you entered in to the December holiday season ?

Speaker 1: That's correct.

Speaker 4: Okay. Understood. Thank you. Thank you. Just a question on the promotional environment. Are you satisfied with your price position, promotional price position relative to peers as you entered into the December holiday season?

Joan Hilson: That's correct.

Jim Sanderson: Okay. Understood. Thank you. Thank you. Just a question on the promotional environment. Are you satisfied with your price position, promotional price position relative to peers as you entered into the December holiday season?

Speaker #1: it's a great Yeah , question . We we are . But I would also tell you this is a time period where as people adjust , we also scrape the market and and make sure that we're really well think the , the dynamic nature of this environment and just given positioned .

Speaker 2: Yeah, it's a great question. We are, but I would also tell you this is a time period where, as people adjust, we also scrape the market and make sure that we're really well positioned. I think the dynamic nature of this environment and just given not only what we've talked about relative to consumer, but just the, you know, the compression that happens between now and the holiday, I think we're focused on staying vigilant, and particularly when everybody is dealing with some input cost changes. I think that, you know, that creates a little more focus, certainly on our part, to make sure that, you know, in these commodity-based categories or in any of the key price point offerings, we really maintain the kind of competitive positioning that makes sense.

JK Symancyk: Yeah, it's a great question. We are, but I would also tell you this is a time period where, as people adjust, we also scrape the market and make sure that we're really well positioned. I think the dynamic nature of this environment and just given not only what we've talked about relative to consumer, but just the, you know, the compression that happens between now and the holiday, I think we're focused on staying vigilant, and particularly when everybody is dealing with some input cost changes. I think that, you know, that creates a little more focus, certainly on our part, to make sure that, you know, in these commodity-based categories or in any of the key price point offerings, we really maintain the kind of competitive positioning that makes sense.

Speaker #1: only what not we've talked about but relative to consumer , just the , you know , compression the that happens between now and the holiday , I think we we're focused on staying vigilant and particularly when , when everybody is dealing with some input cost changes , I think that , you know , I that that creates a little more focus , certainly on our part to make sure that , these you know , in commodity based categories or in , in any of the key price point offerings that that we really maintain the kind of competitive positioning that that makes sense .

Speaker #1: And so , you know , we've I think we've balanced that really nicely over the course of the year , being less promotional , you know , more broadly focusing promotion where it makes sense , but also not being gratuitous and eroding , you know , brand equity in the process .

Speaker 2: I think we balanced that really nicely over the course of the year, being less promotional, more broadly, focusing promotion where it makes sense, but also not being gratuitous and eroding brand equity in the process. I think the other benefit of that is it enables us to really focus our value messaging to customers in a stronger way. We obviously watch the landscape and want to make sure we're maintaining that momentum as we go into such a critical time period, also not losing the progress that we've made relative to some of the discipline around pricing architecture that's paying dividends for us. That's where we're focused. I think, more than not, we feel like we're in the right position.

I think we balanced that really nicely over the course of the year, being less promotional, more broadly, focusing promotion where it makes sense, but also not being gratuitous and eroding brand equity in the process. I think the other benefit of that is it enables us to really focus our value messaging to customers in a stronger way. We obviously watch the landscape and want to make sure we're maintaining that momentum as we go into such a critical time period, also not losing the progress that we've made relative to some of the discipline around pricing architecture that's paying dividends for us. That's where we're focused. I think, more than not, we feel like we're in the right position.

Speaker #1: And I think the other benefit of that is it enables us to really focus our , our value messaging to customers in a , in a stronger way .

Speaker #1: We obviously watch the landscape and want sure we're , you know , we're we're to make maintaining that momentum as we go into such a critical time period .

Speaker #1: Also not not losing the progress that we've made relative to to some of the discipline around pricing architecture that's paying dividends for us .

Speaker #1: So that's that's where we're focused . I think , you know , more than not , we feel like we're in the right position and when or if we have have found any categories or , you know , subcategories within a brand where we don't like then then we've got the flexibility to also remix and manage it accordingly .

Speaker 2: When or if we have found any categories or, you know, subcategories within a brand where we don't like, then we've got the flexibility to also remix and manage it accordingly, so we're delivering the right value.

When or if we have found any categories or, you know, subcategories within a brand where we don't like, then we've got the flexibility to also remix and manage it accordingly, so we're delivering the right value.

Speaker #1: So we're delivering the right value .

Speaker #11: right . Thank you very much .

Speaker #1: Yeah. Thank you for the question, Jim.

Speaker 4: All right. Thank you very much.

Rob Ballew: All right. Thank you very much.

Speaker #4: There are no further questions at this time. I will now turn the call over to JC James Symancyk for closing remarks.

Speaker 2: Yeah, thank you for the question, Jim.

JK Symancyk: Yeah, thank you for the question, Jim.

Speaker 10: There are no further questions at this time. I will now turn the call over to J.K. Symancyk for closing remarks.

Operator: There are no further questions at this time. I will now turn the call over to J.K. Symancyk for closing remarks.

Speaker #1: Thank you , Okay . everyone , for us today joining and for your interest in our business . We are fully focused on the critical holiday selling period , and confident in our and we're our teams commitment to strategy deliver results .

Speaker 2: Thank you, everyone, for joining us today and for your interest in our business. We are fully focused on the critical holiday selling period, and we're confident in our strategy and our team's commitment to deliver results. However you celebrate, I want to wish everyone, our employees, partners, shareholders, all of you, a holiday season full of joy, peace, and, of course, love. Look forward to speaking with you next quarter. Goodbye.

JK Symancyk: Thank you, everyone, for joining us today and for your interest in our business. We are fully focused on the critical holiday selling period, and we're confident in our strategy and our team's commitment to deliver results. However you celebrate, I want to wish everyone, our employees, partners, shareholders, all of you, a holiday season full of joy, peace, and, of course, love. Look forward to speaking with you next quarter. Goodbye.

Speaker #1: However , you celebrate , I want everyone , our employees , partners , shareholders , all of you , a holiday season full of joy , peace and of course , love .

Speaker #1: Look forward to speaking with you next quarter . Goodbye .

Speaker #4: Ladies and concludes our gentlemen . This conference call for today . We thank you for participating in ask that you please disconnect your lines .

Speaker 10: Ladies and gentlemen, this concludes your conference call for today. We thank you for participating, and ask that you please disconnect your lines.

Lorraine Hutchinson: Ladies and gentlemen, this concludes your conference call for today. We thank you for participating, and ask that you please disconnect your lines.