Greetings and welcome to the American Eagle Outfitters Third Quarter 2024 earnings conference call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. If anyone should require operator assistance, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Judy Meehan. Thank you, and you may begin. Good afternoon, everyone. Joining me today for our prepared remarks are Jay Schottenstein, Executive Chairman and Chief Executive Officer, Jen Foyl, President, Executive Creative Director for AE and AE, and Mike Mathias, Chief Financial Officer. Before we begin today's call, I need to remind you that we will make certain forward-looking statements. These statements are based upon information that represents the company's current expectations or beliefs. The results actually realized may differ materially based on risk factors included in our SEC filings. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law. Consistent with the retail calendar and the 53rd week last year, Third Quarter 2024 results and today's discussion are presented for the 13 weeks ended November 2nd, 2024, compared to the 13 weeks ended October 28th, 2023. Comparable sales metrics are presented for the 13 weeks ended November 2nd, 2024, compared to the 13 weeks ended November 4th, 2023. Also, please note that during this call and in the accompanying press release, certain financial metrics are presented on both a GAAP and non-GAAP adjusted basis. Reconciliations of adjusted results to the GAAP results are available in the tables attached to the earnings release, which is posted on our corporate website at www.aeo-inc.com in the investor relations section. Here you can also find the Third Quarter investor presentation. And now I'll turn the call over to Jay. Thanks, Judy, and good afternoon, everyone. We are pleased to report another strong quarter, building on positive performance in the first half of the year. Our Powering Profitable Growth strategy is clearly delivering results. As we execute on these strategic initiatives, we are positioning AEO for healthy long-term growth and transforming how we operate to be more efficient and agile. This is all aimed at strengthening long-term profitability and building greater consistency in our performance. Third Quarter comparable sales grew 3% on top of last year's strong 5% growth, with positive momentum across brands and channels. While we saw some demand choppiness, we successfully offset the bulk of this through expense efficiencies and delivered adjusted operating income at the high end of our guidance. Turning now to a few highlights of the quarter. First, we are making very good progress on our top strategic pillar, Amplify Our Brands. Building on a solid foundation in denim, as the number one brand for 15 to 25-year-olds and the number one brand for women of all ages, American Eagle achieved its sixth consecutive quarter of comparable sales growth and share gains in several key categories. Our strategies to fuel growth and go after new dressing occasions like social casual and men's active are gaining momentum, with meaningful opportunities still ahead. AE achieved yet another record revenue result, also led by positive comp growth. With revenue on track to cross $1.7 billion this year, I'm so proud of the remarkable strides the teams have made. AE unique brand DNA, anchored in authenticity, positivity, and empowerment, continues to resonate powerfully with women of all ages. And we are incredibly encouraged by continued momentum and market share growth in soft dressing and active wear, which are two of our strongest long-term growth engines. There is no better validation of our strategic direction than the vote of our customers. On that note, we are pleased to see continued growth in our customer file across brands in the third quarter. We were thrilled to see American Eagle and AE retain their top rankings as a shopping destination for today's youth. Yet again, in the fall edition of Piper Sandler's Teen Survey, this is a testament to our strong brand heritage and evergreen promise of delivering high-quality fashion at a great value to our customers. Turning to our second strategic pillar, Optimizing Our Operations, we take great pride in the quality of our shopping experience, where we continue to invest and innovate. Openings and remodels are tracking well and delivering results in line with our expectations. Two recent callouts in high-profile malls where we have seen terrific results are King of Prussia, Pennsylvania, and Woodfield Mall, Illinois, with all brands represented in a fresh and modern way. Additionally, we remain highly committed to elevating our e-commerce platform. We are successfully leveraging new tools like outfitting and sizing, as well as customer engagement tactics to improve conversion. Finally, within our third pillar of Executing with Financial Discipline, we have continued to identify opportunities for cost efficiencies to drive more profit to the bottom line. SG&A dollars were down 3% quarter over quarter, leveraging 50 basis points. We also set the stage for ongoing improvement through a number of restructuring actions we took during the quarter, which Mike will elaborate on. Lastly, our balance sheet remains in great shape. We exited the quarter with $160 million in cash and no debt. During the third quarter, we continue to advance our capital allocation priorities, investing in our brands and operations to drive growth while returning cash to our shareholders. With three successful quarters under our belt, we are poised to deliver significant progress across our strategic initiatives this year, and we expect to achieve mid-teen growth in operating income this year, in line with our long-term roadmap. Yet, as Mike will review, we have adjusted our full-year guidance to reflect more caution in fourth quarter demand outlook. This also incorporates pressure from a strong U.S. dollar. Before I turn it over to Jen, I want to underscore the strength of our brands and our commitment to powering their long-term potential while continuing to strengthen our operations. In the near term, we remain focused on delivering the holiday season as we execute on our strategic initiatives. Now over to Jen. Thanks, Jay, and good afternoon, everyone. Overall, I am pleased with our third quarter performance. Demand was positive each month, with peak back-to-school selling weeks seeing the strongest trend. The teams executed well in this environment, working strategically to drive top line while maintaining healthy profit flow through. Led by our Amplify strategy, we came to market with trend-right fashion underscored by our unique price-value-quality equation. We supported our brands with innovative marketing and collaborations and promoted selectively to support healthy traffic and conversion. So, beginning with AE, the third quarter marked yet another record revenue result, with comps growing 5%, building on 12% growth last year. I'm thrilled to see strong momentum continue. In fact, we expect 2024 to mark our 11th consecutive year of revenue growth, and we remain excited about the opportunities ahead. We continue to scale our core businesses and fuel new opportunities. AE's apparel category achieved its seventh consecutive quarter of double-digit growth, with strength across soft dressing and OFFLINE activewear, and we're just getting started. These two categories continue to be our most exciting growth opportunities, which we are actively building on with each season. In soft dressing, strength in the third quarter was led by sleep, dresses, tees, tanks, sweaters, and fleece. We are gaining traction in sleep by expanding into new fabrications and styles. In activewear, I am extremely pleased to see OFFLINE continue to grow in the highly attractive $29 billion activewear market. In the third quarter, we saw strength and share gains in leggings and sports bras as we brought greater innovation to core product lines. As awareness of OFFLINE builds, it's bringing in new customers. In fact, active bottoms has been our strongest driver of new customer acquisitions. Now turning to intimates, while the category continues to be down across the industry, we are holding our share. I was pleased to see demand trends improve sequentially with each month. Newness is resonating, and I am pleased to see this improvement continue into this holiday season. As we build brand awareness, we are accelerating investments in our influencer strategy. With our holiday campaign, Get Real. Make It AE, we are highlighting comfy, cozy looks and elevated styling for the holiday occasions. In addition, we launched new active wear-focused marketing for OFFLINE for the first time. Here, we highlighted our Famous 4 Fabrics, a key differentiator for the brand. Okay, now moving on to American Eagle. I was pleased with the business in the third quarter, particularly with the strength during the back-to-school season. American Eagle posted a 3% comp increase following a positive 2% comp last year, marking its sixth consecutive quarter of growth. We are making solid progress on our strategic pillars. Momentum in women's continued, and I am especially pleased with share gains across denim and tops. We saw positive comps across most categories with double-digit increases in dresses, sweaters, fleece, shorts, and skirts. We are seeing powerful trends and transitioning into new fashion as we offer greater options for outfitting, including more wear-now social casual dressing occasions. Within men's, we have seen sequential improvement across a number of categories. Highlights include knit tees and men's sweaters. AE men's continues to be top of mind with our core demo as we hold share in denim and gain in other focus categories like tops and active wear. Okay, now on the marketing front. With last quarter's launch of Live Your Life, we continue to engage our community in new and exciting ways. Product and celebrity collaborations have been positive, including our Timberland, Red Bull, and the NFL, where we are chasing into styles for future seasons, and we are particularly excited about our upcoming partnerships as we look ahead into the spring season, and now the holiday season is upon us. Our product looks great, and we are seeing a favorable customer response. Overall, we've had numerous wins across our brands. Stores have been particularly strong, and we are highly focused on working hard to fuel improvements and deliver upon this holiday season. Stepping back, we are making fantastic progress across our strategic initiatives. Our brands are top destinations, and our unique combination of quality, fashion, and value is second to none in this marketplace. I am incredibly confident that we are on the right path to unlock the tremendous potential we see across our brands. Thanks to the teams for their incredible focus and commitment, and wishing everyone a happy holiday season, and with that, I'll turn the call over to Mike. Thanks, Jen, and good afternoon, everyone. We remain focused on our Powering Profitable Growth plan, with the third quarter another proof point of the effectiveness of our strategic initiatives. As Jay and Jen noted, we were able to deliver adjusted operating income on the high end of our guidance with positive comps across brands and channels while experiencing some peaks and lulls in demand. As discussed at our strategy meeting back in March, we have an ongoing focus on optimizing our business and improving profit flow through. With this work continuing, we took additional actions in the third quarter, which included further moves to streamline our corporate cost structure and better align our teams. We also made a change in Hong Kong from a company-owned operation to a licensed model. Expanding on a few third quarter highlights, consolidated revenue of $1.3 billion was down 1% to last year, reflecting the $45 million headwind related to the retail calendar, as previously discussed. Validated comparable sales increased 3% in line with our guidance. This follows a 5% comp increase last year. Operating income of $106 million included $18 million of the impairment and restructuring costs I discussed earlier. Adjusted operating income was $124 million on the high end of our guidance range and included approximately $20 million of headwinds related to the shifted calendar. The adjusted operating margin of 9.6% was flat to last year. Gross profit dollars of $527 million decreased 3% and reflected a gross margin rate of 40.9% compared to 41.8% last year. Markdowns increased, and IMU was relatively flat to last year. The BOW costs leveraged 20 basis points due to lower revenue as a result of the retail calendar shift. Despite this, certain items leveraged, including digital delivery, professional fees and services, and rent, driven by our efforts to reduce costs and find efficiencies across the company. These efforts also had a positive impact in the SG&A line, which decreased 3% and leveraged 50 basis points as a rate of sales. The improvement was driven by lower compensation, including incentive costs, as well as lower professional fees and services and maintenance costs. Teams are continuing to make progress across key focus areas, and we remain on track to leverage SG&A again in the fourth quarter. Depreciation was down year over year, leveraging 40 basis points. The third quarter tax rate was 26.1% in line with guidance. Adjusted earnings per share for the second quarter was $0.48 per share. Consolidated ending inventory at cost was up 5% year over year. Inventory is healthy and well-positioned for the holiday season. As Jay noted, our healthy cash position allowed us to fuel investments in our business, as well as return cash to shareholders. Third quarter CapEx totaled $60 million, bringing year-to-date investments to $158 million. Now expect full-year spend to be in the range of $225-$245 million. Additionally, we returned approximately $24 million to shareholders through the third quarter cash dividend, bringing year-to-date returns through dividends and share repurchases to over $200 million. We ended the quarter with a strong balance sheet with approximately $160 million in cash and over $800 million of total liquidity, including our revolver. Third quarter results reflect continued progress on our long-term strategy to fuel growth across our brands, drive efficiencies across our business, and deliver shareholder value. Looking ahead, we remain focused on executing on our strategic pillars. Now moving on to our outlook, as Jen mentioned, we're well-positioned and prepared for the holiday season. Customer response has been positive during key selling periods, including Thanksgiving and Black Friday weekend, when we experienced double-digit traffic growth, positive comps in stores, and some of our highest store volume in history. However, we've seen less consistency in our direct business relative to last year. We also remain cognizant of potential choppiness during non-peak selling periods. As a result, we're revising our fourth quarter comp outlook to be up approximately 1% on last year's 8% reported comp increase. With the $85 million adverse impact from the retail calendar shift and one less selling week, as previously noted, total revenue is expected to be down 4%. We expect operating income to be in the range of $125-$130 million. This incorporates currency pressure from the recent strengthening in the U.S. dollar, in addition to a $20 million drag from the retail calendar shift. We remain focused on driving efficiencies and finding cost savings across the P&L, which will enable us to leverage SG&A in the quarter. For the year, this implies comps up 3%, total revenue up 1%, and adjusted operating income in the range of $428-$433 million, an increase in the mid-teens from $375 million last year. This is consistent with our long-term algorithm of mid to high teens operating income growth announced back in March. The teams remain focused on delivering the quarter. We are confident in the decisive steps we are taking under our Powering Profitable Growth strategy to position our iconic brands for success, further enhance operating efficiencies, and deliver consistent profitable growth. And with that, we'll open it up for questions. Thank you. We will now be conducting a question-and-answer session. If you would like to ask a question, please press Star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press Star 2 to remove yourself from the queue. For participants using speaker equipment, it may be necessary to pick up the handset before pressing the Star key. One moment, please, while we poll for questions. Our first question comes from the line of Matthew Boss with J.P. Morgan. Please proceed with your question. Great, thanks. So Jen, maybe to start off, could you speak to what you've seen in terms of the progression of demand into the fourth quarter at AE, maybe any outliers by category? And as you look ahead to next year, what are the opportunities you see to potentially accelerate the pace of growth at AE as we look across the assortment or the store fleet? Yeah, thanks. Look, as I mentioned, AE saw record revenues in Q3, and I love the way we are delivering on our strategic pillars. I've never seen such consistency in this company, including thinking about all three brands showing growth, which I think is something that hasn't been done in a long time. And that's what we're building into, Matt. Moving into AE, look, we're really pleased with the five comp on the 12th. Moving into holiday, we're seeing a little bit of some choppiness, Mike mentioned, just in a couple of weeks. We just want to be really cautious, and we want to deliver strong results. But at the same time, we're thinking about new categories. And that is something that we learned thinking back in Q3. So let me just take a moment to speak about that. Fleece has been outstanding. We've been chasing into that business, and we chased into it to Q4. It'll be a new category for us as we deliver into spring, something very exciting that I think AE hasn't really dipped their toes in. And thinking about spring, that will be something, a new category to offset swim. Look, AE has a lot of potential growth. This year, we only opened four stores. Next year, we're opening 45. And we know what that means for the business, right? We're going to get new customer acquisition based on that. And by the way, our customer acquisition is strong right now. And the team did a really amazing job delivering an incredible campaign in Q3, where we saw just increased brand awareness, increased influencer strategies, increased investment that we are making change. I believe all that marketing impact will have a halo effect on the brand as we march into 2025 and think about these new category opportunities. Great. And then maybe a follow-up for Mike. Maybe could you speak to your expectations for promotions in the fourth quarter relative to what you saw in the third quarter and just overall health of your inventory today? And with that, maybe just drivers of gross margin expansion that you see remaining as we look into next year. Yeah, I'll start with inventory. Inventory up 5% at the end of the quarter, positioned very well across brands and categories. We did pull forward. There's definitely some receipt timing differences than last year, looking to mitigate any potential port strike. So that's a little bit of an apples-to-oranges compare with some of the receipts that hit at the end of the third quarter. And then reminder, last year, we were chasing a trend change into the third quarter. So inventory was down a bit. I think we were down mid-single digits% last year. So we're kind of relatively flat on a two-year basis. So inventory is well-positioned across brands and categories. Promotional level, we are planned similarly this holiday season to last year. So we're not expecting any real additional impact from markdowns or margin erosion from having to be more promotional this year. And I think we've seen that actually even through this last peak period over the last week and a half through Thanksgiving and Black Friday weekend. So nothing indicating we'll need to be more promotional. As far as gross margin go forward, it's when we talk about this really efficiency focus across the P&L, leveraging the expenses and gross margin on this 3%-5% revenue algorithm, the teams are hard at work looking at delivery, distribution, and supply chain costs within the gross margin. And then finding efficiencies in our IMU as well. Somewhere else in the P&L, we've been very focused on pulling apart the cost of the expenses within our landed costs. So raw materials, freight and transportation, duty, sampling development, those are all areas we're also focused on to reduce the cost and gross margin. That 39%-40% target we put out back in March on a multi-year basis is still where our sights are set, and we view it as very achievable. Great. Best of luck. Thank you. Thanks, Matt. Thank you. Our next question comes from the line of Paul Lejuez with Citigroup. Please proceed with your question. Hey, thanks, guys. Just want to understand the choppiness that you're seeing a little bit better. Understanding that there's a calendar shift impacting November, how did this period that you've seen quarter to date perform relative to your expectations at each of the brands? And then second, just curious, as we think about SG&A, Mike, for next year, what sort of comp leverage point are we thinking is necessary to see leverage on that SG&A line? Thanks. Yeah. Yeah, the choppiness, as we've described it. You think about coming off of back-to-school peak in August, and we provided guidance at the end of August. We were being cognizant of some of the choppiness or lull we saw at the end of the summer in Q2, and we gave guidance that really contemplated that for September, October. I think the warmer weather, a couple of hurricanes, warmer weather, the impact of those different pieces in September, October is the reason why we came in at our three comp versus the three to four that we guided to a little on the lower end. That did continue into early November. So the first couple of weeks in November, we saw a similar pattern. And then as we got into Thanksgiving and the last week and a half or so, similar to the back-to-school peak period, we've been really pleased with the business. So it's really just looking at that, taking the learnings from the last four or five months here, applying to maybe what we could see post-Christmas at the moment. And we've been able to update that with our holiday sales release at the beginning of January and see where we are quarter to date at that point. For SG&A next year, we are very focused. SG&A continues to be a huge focus across the organization. The teams are in place managing all those big line items we continue to talk about around corporate compensation, store labor, services, supplies, maintenance costs. We are not going to take our foot off the gas and continue to find reductions and optimization in those areas. We intend to leverage on that sales algorithm of 3%-5% that we're committed to. We will leverage at the low end and leverage more on the high end. Thanks for that. Thank you. Thank you. Thank you. Our next question comes from the line of Adrian Yih with Barclays. Please proceed with your question. Hi, this is Angus Kelleher on for Adrian Yih. Curious if you could speak to some of the new customers you're bringing in. I know you mentioned AE, but curious if American Eagle is also seeing uptake, particularly in the adjacent categories and the new brands like AE 24/7 and AE77. Yeah. Actually, I was referring to both brands combined are up double digits as far as customer acquisition. So really pleased with those results. And if I think about AE, we just launched our Live Your Life campaign, which was our original campaign. We brought it back to life in such a modern way, and we're really proud of that. Some of the tactics there were simply influencers, collaborations, speaking to our man, and really just doubling down where we haven't before. And these collaborations are really working. We noted it on the earlier speaking points. Timberland was fantastic. Now that we look ahead, we have so many exciting collaborations for spring. And I think we're going to continue to really open up the doors for these new customers. Also, I want to really reiterate something that hadn't happened in the American Eagle brand. Retention was an issue in the past, and we are now retaining our customers. They're staying with us longer and growing with us, and that doubles down there with the new acquisition and growing. We're also renovating stores. We've seen really nice upticks in the new store renovations, and that's bringing in new customers. Jay mentioned King of Prussia. Wow, the numbers are fantastic, so we're going to renovate more stores next year. I mentioned in AE, again, they saw acceleration in customer acquisition. We're opening 45 new stores next year, where we only opened four this year, so there's lots in the works to see this momentum continue. Great. Thank you. Thank you. Our next question comes from the line of Jay Sole with UBS. Please proceed with your question. Great. Thank you so much. My question, Jen, two for you. One, can you just talk about the denim category a little bit more and what you saw and how you saw the competitive landscape sort of develop over the last three months? And then, Mike, can you just quantify the FX impact on the quarter and also the full-year guide? Thank you. Yeah. Well, I'm going to reiterate that both men's and women's, we're holding our share. There was definitely some softness in leggings through Q3. Women's held maintained more, particularly in fashion. We were really excited about what we delivered on fashion. And so that continues. In fact, we've seen women's accelerate into Q4, and that team's chasing denim like no tomorrow right now. Our fashion is checking all new fits and silhouettes. I've never seen such a great variety in our assortments. And the team is doing an outstanding job developing new fabrications and new fits, and we have accelerated into Q4. Yeah. FX, Jay. Yeah, the significant strengthening of the U.S. dollar here over the last several months impacting both the peso and the Canadian dollar is what's impacting a bit of our guide here for the fourth quarter, especially the peso. Our business in Mexico is really healthy, growing at double digits locally. And the contribution from Mexico in the fourth quarter is over 40%. So that's changed here over the last several months, even more recently with the election outcome. We're adjusting our projections to account for that for sure in the fourth quarter. And that's having about a $15 million impact combined, mostly from Mexico and from the peso. So about half of our kind of guide change here for the fourth quarter is related to long-term, our long-term targets. No issues there. We are going to be looking for some mitigation through other expense reductions specifically in the market, so nothing concerning for the long term, but definitely a piece of this fourth quarter and annual guide change. Got it. Thank you so much. Thank you. Our next question comes from the line of Dana Telsey with Telsey Advisory Group. Please proceed with your question. Good afternoon, everyone. As you think about the business with digital and stores, was there any difference as you went through the quarter between the two for either of their brands? How much did the hurricanes have an impact on the quarter? Just lastly, as you think about the remodels that you're doing, how are they performing versus the base? Any initial thoughts as for 2025 on them? Thank you. I can start with the remodels. We're seeing great results, as Jen said, from the program so far. So we're first year into this remodel program for the AE brand. We're touching 70-ish plus stores here by the end of the year. Seen some very nice consistent results across the board where the store performance is outpacing the base or average comp for the AE brand. Has us encouraged about what that means for the go forward. And we talked about a 300-store plus program, maybe 400 stores. We're going to accelerate that a bit going into next year. So it's a good thing. We're seeing a payback for that investment, and we want to go a little faster. Hurricanes, yeah, I think the kind of the combined back-to-back impact of Helene and Milton there, we're a little bit surprised. I hate to talk about hurricanes from a comp perspective, but definitely a bigger impact to the Southeast than what happened last year, even up into the Carolinas. So a bit of a hit, but I think the bigger weather impact in general was just the warmer weather across the back half of September and all the way through October. And even into early November. So I think that was a bigger issue than hurricanes, quite frankly, in terms of us just coming in on the low end of our comp expectation in Q3 versus the 3% versus the 4%. Digital versus digital. Digital versus stores in the short. Yeah. Yeah. I think third quarter, we comped both positively across brands and channels. So stores were positive. Digital was positive on that 3%. More recently here, we've seen traffic in stores through this past week was tremendous. So our store growth and our store results, as I said in my remarks, that some historical highs in terms of store performance over the weekend. Looks like that could be continuing into this week a bit. So we'll see. That bodes well for us. We have a healthy store fleet. We've got a little bit of a shift, maybe even back to the mall for holiday here. That could be in our favor. But we'll take the transactions wherever they come. Thank you. Thank you. Our next question comes from the line of Jonna Kim with TD Cowen. Please proceed with your question. Thank you for taking my question. I would love to hear about the intimate business strategy. You mentioned the category is still down, and you held share. But as you think about AE's intimate business, what are ways that you can regain share and accelerate sales there? And then also would love your thoughts on just the OFFLINE. It looks like it's doing really well, but how are you planning to accelerate that growth as we look into next year? Thank you so much. Yeah. Well, it's interesting. With OFFLINE, we've seen really nice increases in shares in sports bras. So I think that that's been a big play for trend. Girls are wearing sports bras out again as tops, and that continues to happen. And we've done really well addressing that trend. Intimates, yes, it's down in total, but we've held our share. In fact, we've seen nice increases into Q4 as far as acceleration, particularly in undies. We're really unlocking some growth there in that category. On the go forward, look, this team does not stop as far as innovation, and I think we have some of the best in tow. If you think about SMOOTHIEZ, we now have offshoots of that category. We have bodysuits. So we're going to continue to double down on the fabrications that we are famous for. That's what we do well. So going into Q1 and Q2, look, I think there's opportunity in this category. Lace is certainly a trend out there. The team's on it. And lace is obviously one-on-one with the intimates business. So we have lots behind those ideas, and there'll be more to come. I continue to see us holding our share, if not growing, with some of the new ideas that we have in store. Thank you so much. Thank you. Our next question comes from the line of Janet Kloppenburg with JJK Research. Please proceed with your question. Hi, everybody. I wanted to just, Jen, learn a little bit more about the choppiness. Did any of that, beyond weather, which I heard loud and clear, did any of that have to do with perhaps inventory imbalances? I saw a lot of the colors sell down in the stores, and I thought maybe you could have had more of that, like the colorful sweaters and that kind of stuff. I wanted to understand more about November, Mike. I think you said that November was weak maybe until Thanksgiving, and then it picked up. I think that's what you said. Maybe you could clarify if you've had some choppiness since. Does the great SG&A performance of the third quarter feel from the fourth quarter on SG&A? Thank you very much. Yeah. Yeah, of course. I think Mike said it well. We're just anticipating what happens in January again with just some of the slowdown that we saw, for instance, during the hurricane. For instance, leggings that I mentioned. We've seen very like trending categories from Q3 in both brands heading into Q4. The stores definitely outpaced, and we are on it. That team is filling in left and right. We just have new deliveries today land. We've already seen nice upticks in the sales, including stores again. So we are feeding that beast as quickly as possible. I do like fast turns. Let's not deny. And the team's doing a great job replenishing and getting back into business. But again, Mike said it well. Our store business is on fire. Black Friday was a record breaker for us. We've never seen sales like that. And I think that that speaks well for how we executed. I think that's the most important thing. When we were in the malls, our brand executed. Our bags were everywhere. We were fulfilling the needs of the customers. The lines were moving, and we have a lot in front of us. So we're hoping to grab every bit we can. Thank you. Thanks, Jen. Thanks, Jen. Thanks, Jen. Thanks, Jen. Jen. Yes. They're right here. Yeah. Oh, good. Thanks. So what I'm trying to understand is your thoughts behind the digital business slowing down. What happened there? Honestly, we're up against incredible comps on that side of the business. And look, we're balancing what Mike said. We are going to where the customer's at. So we're thinking omni. It's not my favorite word, but we are there for where the customer is. And digital, look, we're testing every day in that business. We're relentless, and we're learning new tricks. And as we get this halo effect, I think from some of the new acquisition, we're going to really bridge that gap. So there's more to do always. And I think we have a lot of good ideas for the future. And right now, I think digital is showing up again. There was a slight slowdown during Cyber because I think we pulled it in, to be honest. We launched some of the ideas early, and we saw nice upticks earlier. Now we're getting it back a little bit day by day. Okay. Thanks, Jen. Lots of luck. Go ahead, Mike. I'm sorry. I'll answer your question. No. I mean, the improvement or us seeing a reduction in Q3 beyond where we expected is just the outcome of the continued work. The SG&A focus is here to stay. Q3 was another proof point of that. We were able to find a few other dollars through all the work we're doing to reduce SG&A a little further than anticipated. It's compensation-related areas. All the focus areas we continue to talk about leveraged. So corporate compensation, related incentives, store salaries have been well controlled, services leveraged. And Q4 is a continuation. We're actually expecting dollars to be down, mid- to high single. Expecting similar type leverage, even with total revenue being down 4% with the calendar shift. Focus is there, and it's here to stay. Okay. Lots of luck to you all. Thank you, Jen. Thank you. Our next question comes from the line of Simeon Siegel with BMO Capital Markets. Please proceed with your question. Hi, good evening. This is Dan on for, Simeon. Thanks for taking our question. Curious what your general lead times are now and maybe how much has been left open to buy for holiday versus prior years? and sorry if I missed it, but how are you planning to end the year with inventory? Thank you. Sorry, can you repeat that? You were a little choppy on the first question. I'm just seeing if we have. Yeah. So just where the lead times are now and then how much has been left Open to Buy for holiday now versus prior years? Oh, yeah. We were strategic, not even just in Open to Buy, but positioning new receipts, like I mentioned. We have new receipts from both brands that just hit digital today. We're launching in stores. Actually, we're releasing as ready because there is the demand out there, speaking to my last answer. So we're ready to go. We have new receipts here. We have another full delivery coming in towards the end of December. Really excited about that. We have Open to Buy. We're pulling in, actually, as we speak. So we feel really good. We're going to be very nimble, and we're thinking about spring and how we're going to be ready to sell and have our inventory ready to go. So I think as we launch into spring, you're going to see really incredible excitement across both brands. We're positioned, and we're nimble. That's all I can say. And I've never seen the team react so swiftly on the business, and we're in a good position. Cash is always a good thing, and they're doing a great job. Great. Thank you. Going into spring, inventory planned in line with sales growth. That's our planning mentality at the moment, and we'll continue to do that into spring and next year. Appreciate the color. Thanks, guys. Thank you. Our next question comes from the line of Chris Nardone with Bank of America. Please proceed with your question. Hi guys. Good afternoon. So just on your plan to ramp up the AE door count next year, can you just talk about what is giving you the confidence to step up the pace relative to the more muted openings this year? Jen, just on the recent introduction of the sleep business, is this sizable enough to offset any potential pressure you may see from your swim business next year if it continues to be a challenging category? Yeah, sure. I should add on. It's not just sleep. We're seeing incredible momentum in all of soft dressing and AE, fleece, tops, knits, new categories like dresses, cover-ups. So you'll see a lot more of that assortment as we head into the spring season. So I feel really good about the way we positioned our plans to offset any slowness in swim. Interestingly enough, AE held all their market share in all of our categories, apparel, every category, but intimates and well, we did hold our market share in intimates, I should say, but those are the two categories that are seeing pressure across the entire business. So feel good about the way we're attacking our other businesses to offset for spring. That said, we feel very confident about our store openings. OFFLINE is actually neck and neck with AE in similar malls. This is amazing. It's a brand new business. I want to remind you, OFFLINE launched in 2020 during COVID, online only. We're now seeing record highs in our leggings business and our sports bra business. So we feel like we definitely can go. Mike mentioned these stores are profitable. They're making money out of the gate. They're hitting performance. Really excited about the OFFLINE growth, and AE, it's just about moving into new markets still. We still have opportunity in new markets, and we know our AE stores are very profitable. The new store design, as I must say, is pretty cool. I love it. They're calling it The Arch. It's amazing. I think everyone would feel excited about it. If you haven't seen it, get out there, and we're seeing nice business on those new stores. And they are definitely more profitable. We were really efficient the way we built them out. Some exciting things to happen for the future. Jen just said it. The accelerations to support that. We're open 25 doors this year or 25 stores, which combination of AE stand-alones, OFFLINE stand-alones, and side-by-sides. So even kind of more doors for the two brands beyond the 25 total store count. And we're looking to accelerate or build upon that next year, probably more in the 45 store count with doors being higher to support AE OFFLINE side-by-sides within that count as well. This OFFLINE business has been the kind of highest growth category for the company. We're seeing great strides here in terms of market share gains. So it's really a strategic change to support that even further going into next year. Thank you. Our next question comes from the line of Alex Straton with Morgan Stanley. Please proceed with your question. Hi. This is Katie Dahlhut on for Alex Straton. I just wanted to ask, how are you thinking about the impact of the new administration, particularly on tariffs? Any color you could give on kind of your manufacturing exposure there would be really helpful. Thank you. Okay. This is Jay. We're very flexible in our operations. We have the ability to source anywhere. Just to remind everybody, we were around in 2016 through 2020. So this is nothing new to us. We've been living with tariffs. They never changed the tariff policy in 2020. It's still going on, and we have that flexibility. And nobody knows for sure exactly what's going to happen. But we are flexible, and we are lean that way. Yeah. We've got a very strong sourcing team, sourcing capabilities. We already source from 15-plus countries with great relationships and partnerships with our manufacturers. So we're in this together, I think. And the team internally is doing a great job and proactively looking at setting up redundancy and the ability to shift as we see fit depending on the outcome. But nobody knows where it's going to be. Right. So we're setting ourselves up to be ready to react regardless of exactly what occurs. Great. Thank you. Thank you. Our next question, our last question comes from the line of Marnie Shapiro with Retail Tracker. Please proceed with your question. Hey, guys. I have a couple of quick questions. I just want to confirm. Did you say 45 AE and OFFLINE stores in 2025? And can you just give us an estimate on what Eagle stores would look like for next year as well? Yeah. Marnie, I think we're talking about 45 stores roughly. We're going to refine these plans. We'll talk more in March when we provide a very specific color and updates for 2025 guidance and store counts, capital spending, all of it. Right now, preliminarily, we're looking at 45 stores total, which would be a combination of AE stand-alones, OFFLINE stand-alones. And then when I say doors, doors could be like 55 to 60 because a bunch of those would be AE and OFFLINE side by side. Got it. So it could be 45 stores, maybe 60 doors the way we call our terminology internally because a chunk of those would be side-by-sides. Great. And. Then for AE, we're still looking at repositioning a bunch of stores. We're seeing good success when we do that in markets, especially one or two-store markets. Probably still a net closure situation, but we've been closing less stores in the 20 range. It'll be something similar. And we're really focused on this remodel program, though. So as we're touching 70-80 this year in total, we're looking at probably accelerating that just based on the results we're seeing. Could be over 100 stores that we. We need better locations in the market. We're repositioning, right-sizing, getting better positions where it makes sense. And we could be looking at over 100 next year, but we'll refine that. That's great. And then, Jen, if we could just, it sounds like almost a tale of two businesses right now. When things are good, they're really good. I was in your stores all Black Friday. You know I sent you pictures. Your bags were literally everywhere. They were streaming through the mall. So, is the choppiness? To me, you had a lot of sweaters leading the store. You had a lot of warm weather. To Janet's point, your fashion when it came in sold very, very quickly. How much of this can you really attribute just to lack of weather-driven demand? And if that really is the case, I guess, why would you be so concerned about January? I mean, it's possible we have a really warm January, but it feels inconsistent because you're getting really, really good reception to all the products you're putting in the store. So I'm trying to kind of marry those two things. Yeah, I understand. It's a great call, Marnie. We're up against incredible comps from last year. We're seeing this year-over-year, quarter-over-quarter growth for all brands. I think that's something that we should be proud of right now. It's been something that hasn't been done, and we've been working on all brands. Now I think it's time for these brands to really take it forward and really double down on all of our learnings. AE is at the pinnacle of a new stage of growth. AE has only just begun. We have opportunity in men's. We're seeing some acceleration in men's. But I think with some of the plans we have ready for spring, I think you're going to see a lot more excitement there. And look, we are just thinking we're just being smart. That's all. There was some choppiness with the election. Who knows about snowstorms? So we're just preparing ourselves. And look, what we're seeing early on coming out of Cyber, we like what we're seeing. I mentioned that. We're seeing similar compares, and we want to obviously overdeliver. That's what we want to do. But just being smart. That's all. That's great. Best of luck for the holiday season, guys. Thank you. Thank you. We have reached the end of the question-and-answer session. Also, we have reached the end of today's call. We thank you for your participation. You may disconnect your line at this time. Have a great day.