Robust Earnings Outlook

The company’s adjusted earnings outlook for fiscal 2026 is now 6.2‑6.6 percent, underpinned by steady revenue trends and higher client spend. Activewear and athleisure sales grew about 50 percent year over year, while men’s categories showed double‑digit expansion for a fourth straight quarter. Gross margin improved to 43.7 percent and contribution margin surpassed 30 percent for the ninth consecutive quarter. Revenue growth outpaced the total U.S. apparel, footwear and accessories market in most recent quarter. The AI‑based personalization model blends stylist expertise, client data and machine learning to recommend outfits.