The company is in the early stages of executing a large-scale, multi-year global project that is expected to significantly transform the way in which the Company operates its business and further enable its long-term strategic pivot towards a global direct-to-consumer-oriented model.

The global average store count decreased by 21 stores and concession shops during the three months ended September 28, 2024 compared with the three months ended September 30, 2023, largely driven by strategic store closures in Asia and North America.

Comparable store sales increased 10% driven by brick and mortar sales increasing 11% and digital commerce sales increasing 5%.

Operating income increased 8.8% YoY to $178.9 million, with operating income as a percentage of net revenues increasing 30 bps to 10.4%. This improvement is primarily driven by the increase in gross margin, indicating effective management of pricing and cost controls.

Management acknowledges the negative impact of supply chain disruptions and inflationary pressures on the global economy and retail industry. They are implementing strategies to mitigate these challenges, including diversifying the supply chain and focusing on average unit retail growth.

The company is taking earlier receipts of inventory and strategically utilizing faster means of transportation to maximize full-price selling windows. This proactive approach to inventory management aims to mitigate supply chain disruptions and maintain profitability.

The 10-Q acknowledges the risks associated with economic, political, and other conditions, including military conflicts, civil unrest, and diplomatic tensions. These factors could disrupt business operations and impact consumer demand.

The 10-Q highlights the potential impact of supply chain disruptions, including those caused by capacity constraints, labor shortages, and scrutiny of goods produced in certain territories. These disruptions could lead to inventory shortages and lost sales.

The company acknowledges the risk of cybersecurity breaches and the need to secure facilities and systems from cyberattacks. These events could disrupt operations and compromise sensitive data.

The company plans to continue driving its broader long-term strategy of brand elevation, which includes multiple levers to continue driving average unit retail growth and brand equity.

The company acknowledges the increasingly competitive promotional environment and plans to remain agile and mindful of it.

The company acknowledges the potential impact to our business resulting from the financial difficulties of certain of our large wholesale customers, which may result in consolidations, liquidations, restructurings, and other ownership changes in the retail industry, as well as other changes in the competitive marketplace.

SG&A expenses as a percentage of net revenues increased to 55.5% for the three months ended September 28, 2024 from 54.9% for the three months ended September 30, 2023. The 60 basis point increase was largely attributable to geographic and channel mix resulting from growth of our international and retail businesses which typically carry higher operating expense margins, as well as increases across various expense categories, including higher marketing investments due to the planned timing of key campaign events.

The company is taking earlier receipts of inventory and strategically utilizing faster means of transportation to maximize full-price selling windows. This indicates a focus on optimizing inventory turnover and profitability.

The company is leveraging its diversified supply chain and strong supplier relationships to mitigate inflationary pressures. This indicates a proactive approach to managing costs and ensuring product availability.

The NGT project involves the redesigning of certain end-to-end processes and the implementation of a suite of information systems on a global scale.

Digital commerce contributed to comparable sales growth, indicating successful digital transformation efforts.

The company is focused on enhancing and expanding its digital footprint and capabilities to expand its direct-to-consumer presence.

The company continued to repurchase shares of Class A common stock, indicating a commitment to returning capital to shareholders. As of September 28, 2024, the remaining availability under the Company's Class A common stock repurchase program was approximately $502 million.

The company has generally maintained a regular quarterly cash dividend program on its common stock since 2003, indicating a consistent approach to shareholder returns.

Capital expenditures during the six months ended September 28, 2024 primarily related to store openings and renovations, as well as enhancements to our information technology systems.

The company acknowledges our ability to achieve our goals regarding citizenship and sustainability practices, including those related to climate change, our human capital, and our supply chain.

The 10-Q acknowledges the impact of economic conditions, including inflationary pressures and potential recession, on consumer discretionary income levels, spending, and sentiment.

The 10-Q highlights the potential impact of ongoing military conflicts and supply chain disruptions on the company's operations and financial performance.

The company notes that the department store sector has experienced numerous consolidations, restructurings, reorganizations, bankruptcies, and other ownership changes, as well as an increase in store closures.