The company reported a meaningful recovery in its full-price business across physical stores and direct channels. Inventory levels ended the quarter down 5% year-over-year. Management is consolidating the 'Wearever' sub-brand, investing in high-growth categories like Luxe Lounge and denim, and implementing AI-enabled merchandise planning. The updated full-year outlook assumes sequential improvement, with estimated tariff rates of 10% to 12.5% for landed goods in H2 2026.