Investor Presentaiton
Outlook
Quarter-to-date, brand revenue down in the high-single digits following exceptional growth and a record
Back-to-School season last year.
Assuming current trends continue, the third quarter gross-margin rate would be in the mid-30s and fourth
quarter in the low-30s. This reflects higher markdowns in anticipation of a more promotional retail
environment and the company's seasonal clearance cadence which is more weighted to the fourth
quarter.
Expense cuts are now expected to drive $100 million in annualized expense reductions to plan, compared
to our prior target of $60 million. This translates to SG&A dollars remaining relatively flat to last year in
the second half, compared to prior guidance for low-to-mid-single digit growth.
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