Management Meeting Takes: Fashion Momentum Continues, Despite Choppy Macro. Reiterate Buy Rating, SMID Cap Top Pick, $50 PT.

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Management Meeting Takes: Fashion Momentum Continues, Despite Choppy Macro. Reiterate Buy Rating, SMID Cap Top Pick, $50 PT.

■ Tariff Outlook and Refund Expectations. The company continues to embed 10% tariff rates through the end of July and 15% for

the balance of the year. While Section 301 tariff investigations remain ongoing, management believes the blended rate will be

close to their assumption of 15% post-July and potentially step up to ~20% in '27. On pricing, management acknowledged that

prices will eventually need to move higher over time, although there is limited room to do so in the near-term. Management

previously highlighted a total potential refund of $90M, with $55M of the total related to IEEPA tariff paid LY which reduced

COGS in Q1 (although it was stripped out of adjusted results), while the company's inventory carrying value was reducedCONSUMER by the remaining $35M. To date, management noted that the company has received a small portion of the refund, with the

balance expected to be deposited at the end of June or in early July. So far, everything the government has comitted to

refunding has been repaid on time.

■ Progress on Handbags and Dolce Vita. Management noted that channel inventory for handbags is relatively clean now, whileRETAIL

the category is still expected to return to growth in Q2, consistent with prior guidance. On Dolce Vita, management highlighted

strong sell-throughs and spring performance for the brand following a softer start to the year in DTC, and is planned up HSDAND % for the year.

■ Product Preview: Fashion Rotation Continues. We previewed product largely coming for fall/winter '26, as well as some

early product for spring/resort '27. Commentary around product was reflective of the momentum we have noted over the