Hey, great. It's Matt Boss, Retailing, Department Stores & Specialty Softlines, and pleased you're here at J.P. Morgan. Really happy to kick off day two of our retail roundup from Foot Locker. We have CEO Mary Dillon, President Frank Bracken, and EVP and CFO Mike Baughn. With that, thank you, Mary. Fireworks this morning, fireworks last night. I'll kick it over to you for some opening remarks, and then we'll move through some Q&A. Okay. Okay. Thank you for having us here today. I'll just overview. I'd say a few things. One is that our latest plan is working. I feel really good about the progress that we made in 2024 against the strategies. We have three consecutive quarters of positive comp. We returned to gross margin expansion, regained market share, and generated free cash, positive free cash flow. We expect that progress will continue in 2025 as we continue to execute against the strategy. We guided for that's also reflecting the environment that we're in, which is awful. We're prioritizing the investments that we know are driving our momentum in the marketplace. There's kind of three big categories: store, refresh. I'm sure we'll talk more about that today. Whether it's the refresh or the reimagined stores, they are clearly driving positive comp momentum. It's really about a very elevated experience for consumers, for Stripers, and our brand partners really like it a lot. Digital, we've been really improving our overall digital experience through all aspects of the experience. We launched the Foot Locker App towards the end of last year, and that's really been helping to drive our digital comp. We're taking that to Foot Locker and Champs next year. Loyalty, FLX Rewards rolled out in the U.S. last year. We reached our loyalty penetration goals nearly two years in advance of that, and we're also rolling it out to Europe in 2025. Exciting kind of initiatives called the Lace Up Plan that are working. Frank here, in his newly appointed role as President, will be working closely with me to make sure that we just continue to accelerate our progress on the Lace Up Plan and keep driving momentum and keep an eye on our investments and our returns on those investments. Great. Hopefully you had your coffee this morning. Yeah. Yeah. A little bit. I have to ask you a fair question. I think it's really two parts. How, maybe the best way to size up any sourcing exposure that you have, I'm sure on the private label side, relative to how are you thinking about potential customer impact as this unfolds and evolves? Yeah. It's really dynamic. As stated, I guess yesterday, we would have meaningful impact. We're watching it very closely, though, as we have been with our consumers, our customers, looking at what will be the impact on their overall ability to spend across categories, including discretionary categories and goods. Our direct exposure through our private label is pretty small. It's a pretty extensive business. We're working closely with our brand partners on our approach as we think about how to really drive our mutual profitability. Mike will probably add a little more to that. Sure. Mary mentioned private label being a small percentage, so it's a low single-digit percentage of our overall business. Within there, about half of our sourcing is from China, and the rest of it's really from Southeast Asia countries as well. I think when we think about our vendor partners, our vendor partners have diversified their sourcing meaningfully over the last several years, as we're all aware, really every source country is going to be impacted. Mary mentioned we do anticipate a meaningful impact, but really yet to be determined on sort of where that shows up in the value chain and how much is absorbed more upstream versus what is ultimately passed along to the consumers. We attempted to incorporate as much as we could into our guidance as we came into the year because obviously it's a dynamic situation that we're still evaluating. Great. Mary, forward to comps, up 2%-3%. That was your third consecutive quarter of positive in-store sales. As you reflect on progress against the Lace Up Plan strategy, as you just cited, how would you rank the order of the drivers supporting the positive comp and collection that you've seen? Yeah. I'll go through those. First, I start again with the store experience. Last year, we refreshed 400 stores, and we opened 8 reimagined stores. This year, we're going to continue on that. We're going to have 300 refreshed and 80 reimagined. As I said, it's a great experience for customers, for brand partners, for Stripers alike. We're seeing really strong productivity. We're seeing stronger comps in those stores, and we're also seeing stronger gross margin. Very happy with that. We're going to continue that. By the end of 2026, we'll have about 55% of our stores in those categories. Really making quick progress on that. Digital, we've enhanced experience through all dimensions, from search to how we merchandise the products all the way through to cart. That has really made some dividends for us. As I said, our new Foot Locker app, which we launched, has been really working to help drive our digital comps, which are up 12%. Loyalty, we added over 3 million new rewards customers in the last quarter. We're seeing strength across all the KPIs that we're measuring loyalty on. All of those things, I'd say, together plus a great array of brands and continuing to have compliance with our customers are driving the comp. Great. As we reflect maybe on the consumer backdrop, and maybe this is part of the process that continues to evolve given some of the news, but you cited on your last earnings. More cautious and sensitive consumer through February that had weighed on the business quarter to date. I guess, what do you believe is weighing on your core consumer? Are there differences that you've seen by income demographic or maybe by region? Yeah. It's interesting. If we step back, we had a strong holiday, but really just coming out of holiday. January was our strongest comp, which is great. In fact, as we look at the whole year, up 2.6% globally. Foot Locker, Kids Foot Locker, up 3.6%. North America was up 5.5%. So we're great about that. In February, we saw uncertainty pick up. I know others have talked about that as well. The traffic being slower. And really, I guess I'd say Foot Locker is the lower end of the household income. And recent data that we're seeing some in terms of consumer confidence. But that said, we are finding that people are coming out and spending when the time is right. So All-Star Weekend was really terrific for us. Valentine's Day, we had some Jordan launches that did really well. People started to get their tax refunds. All those things we saw start to the business get stronger and people shopping. I would say there's uncertainty, no doubt. There are peaks and valleys, but our job is to really be there when they're out and ready to spend money. That's how we're coming from the year. Yeah. It's a perfect segue into the next topic, which, as you cited, these two big lulls definitely have been a theme in the business during 2024 and, as you said, into the first quarter. Is there anything that you are or can do differently, whether it's the launch calendar, marketing activation, to maybe potentially smooth out that trend and drive more consistency in demand? Yeah. I'd say, I mean, the good news is we have more levers and more tools in our toolkit to do that. Certainly, be big and loud and strong when people are out at the key moments, the key peaks. Our loyalty program is a really good way to start to really use it to target folks during the shoulder periods, I guess I'd say, with exciting offers. We've got our activation with the NBA. We're doing clinics around the country. For us, it's really about taking the tools that we have, enticing our customers during those times, and being very loud and proud when they're out. Easter when you see it around the corner. Frank, maybe specifically on loyalty, could you speak to progress made on overall loyalty penetration, following the U.S. launch, and how you plan to further optimize loyalty to support financial and creative results? Yeah. It's been a really great success story. We launched a new FLX platform back in late Q2 of last year with the Foot Locker banner in North America. Instantly, we saw an improvement in sort of the consumer metrics. As we went into the fourth quarter, a very significant increase in penetration of over 30 points. As Mary stated, almost to our endgame Lace Up goals. We're going to reset our thinking there of how high, high could be. Now we're in the process of rolling it out to Europe later this year and then ultimately into our Asia-Pacific operating units as well. We're also thinking within the funnel how to take our FLX members and drive frequency. We've instituted FLX members events both from a promotional standpoint, but also offering exclusivity and membership events. We're working upstream with our brand partners to offer exclusive product packages. That's coming later this year as well. We're also thinking about personalization and how to use our new technology suite to carry reference in terms of how to make offers, make the site experience, push alerts, etc., more customized, customized to consumers. The KPI dashboard looks very good. We're very confident that over time, the benefit of frequency, which is the ultimate driver in this, is going to pay dividends for us. The early market looks good, and we're very committed. I'd say the other thing is that we've integrated the FLX programming and messaging way better than we have historically into just our overall communication strategy. Now it's literally part and parcel of everything we do rather than sort of a one-off program, if you will. I think that was a big learning from our previous program and something we worked really hard with all of the enter teams to correct. Frank, maybe on digital, I think digital penetration increased roughly 100 basis points. You finished last year at 18-19% of sales, and you had 12% digital comp in the fourth quarter. Could you speak to changes you've made at the Foot Locker digital experience that supports this growth? Maybe what's next to come in 2025? And is 25% digital penetration by 2026? Is that still the right target for the business? Yeah. I will start with talent. I think that's where we started the process with making some incredible hires that had a lot of great experience, and they've built from there on the pyramid of their talent and capability. That includes our digital team as well as our technology team. We took a much more sort of agile operating approach to how we look at digital. We know the consumer behavior. 90% of consumers start their journey with us and in the industry digitally. We really honed in on mobile as sort of the battleground where we wanted to win. We put in a new cadence that we're making constant site improvements to our mobile application. That includes notifications, PDPs. We introduced a new search partner that allows for better search as well as merchandising of the site itself. In fourth quarter, we introduced a new app. We are definitely seeing more app penetration in terms of visits where the consumer is going and also transacting with us. Instantly saw conversion improvements there. That app is now going to roll out to Kids Foot Locker and Champs in the next 90 days and then later this summer into Europe. We are super excited about that. Into the future, I think it is this idea of constantly looking at how do we personalize the experience for consumers? How do we include our big brand partner ideas in a more integrated fashion into our sites to continue to bring excitement? Whether it's the top of the page, whether it's a push notification through the app, whether it's a search that the consumer does and sees something that's new and exciting, we're going to constantly work upstream with our brand partners to improve that sort of end-to-end journey for the consumer. In terms of overall penetration, we're very bullish, and I think we've developed a new sort of rhythm and capability internally where the teams are thinking omni in terms of it's not stores versus digital and one at the expense of the other. It's where is the consumer? How do we get the right people, the right product, the right inventory in front of them and let them ultimately make the choice? Mary, with partnerships, how do you see your current partnerships with the NBA, with the Chicago Bulls? How do you see that amplifying top-line results and brand awareness as we look ahead to the course of the year and multi-year? Yeah. I mean, it's a really key partnership for us. And when we think Foot Locker, really in people's minds, we think basketball. We love the fact that now we're partnering with the NBA. The Chicago Bulls are All-Star weekend that we just had in San Francisco was pretty in traffic. It was a multi-day. We had people lined up around the block for four days straight to have access to whether it's athlete activations, launches. It was very exciting. We had tons of social. We had a million media impressions, 20,000 visitors. Our brand partners were through. It was great brand storytelling. Like I said, a lot of great social, a lot of chatter. We had top NBA talent there. Anthony Edwards, Sabrina Ionescu, Jayson Tatum. Some of them actually led the clinics with the kids that were coming to the event locally. I would say for us, it's like the partners are really supportive of the fact that we're working with the NBA like that. And if you look at consumer data, we lead in association with basketball. So it's a perfect match, perfect match for us. Mary, maybe as we think about overall category backdrop, Nike is currently at roughly 60% Lace Up target. We know they're in the midst of product portfolio and inventory rebalancing. How are you seeing Nike's actions directly impact your own business as you look at product allocation and promotional activity today? Yeah. I mean, we'll step back and maybe pad to you for a little bit, but are really proud about our partnership with Nike. And we really focus on the things that are really specifically a great thing to do for us, which is basketball, Sneaker Culture, and kids. What's happening right now in terms of rebalancing their portfolio, I think, is right for them, right for the category. And we're working closely. I mean, our allocations were up in the fourth quarter last year. So I think we're in a great position to really go together. Yeah. I was going to say we've sort of been through the reset with them on the allocation basis. We've aligned on the key pillars of basketball, Sneaker Culture, and kids, which are sort of the three on-ramps to the partnership. We are working very closely with them on both upstream, so things like product engagement, where our merchants are providing feedback, insights, both analytical as well as some of our experience and collective wisdom to influence the line in future years in terms of innovation, color, materials, and how it connects back to wear and apparel so we can improve the storytelling. Also working very closely with them on both a multi-year as well as in-season plan to make sure that inventory flow is right, the launch calendar, and some of the specialness that you were asking about earlier, that we have got the right cadence to the consumer to keep a constant sense of energy, excitement, and newness. I would say the partnership is working really well. We are both working really hard in challenging sort of macro environments. Frank, maybe even to elaborate on that a little further, as you look ahead to fall of 2025 or spring of 2026, can you speak to any particular innovation or launches from Nike that you're particularly excited about for the Foot Locker core customer demographic? Yeah. Sure. I'll start with basketball, and there's a lot actually to be excited about. If you look at signature basketball, Ja Morant, Devin Booker, Sabrina, A'ja Wilson just launched a new signature shoe. All of those refreshes coming for the next NBA season in fall are super exciting. Seeing the product, the team is really behind it. You think about the Classics, which is going to be a bit of a reset. We love what they're doing with Air Force 1 and the journey that they're doing to reinvigorate that and bring some heat and some energy to Air Force. Jordan Retro business has gotten very healthy now. We're seeing very strong sell-throughs at full price on Jordan. The calendar into the holiday looks incredibly strong. Basketball is feeling very good about. They also at All-Star previewed a new shoe called the G.T. Future, which has an ode to the Foamposite, which has always been sort of an icon of our industry. They have modernized that. We will have a great position there, which we are excited about. Onto running. Lifestyle running already in the market. We are seeing things like Shox and Vomero and pieces of V2Ks perform really well, most of which is at the price, which excites us, of course. Their performance running constructs—think about Pegasus, Vomero, and Structure—are the three pillars of that construct. Newness that just launched the first quarter. Their capacity and ramp-up throughout the year is going to continue to scale. We will be a big part of that in the back half of the year. Great. Frank, maybe just on the balance of the portfolio, as we think about non-Nike brands driven double-digit growth, what's the portion of the fleet of these non-Nike brands such as New Balance, On, Hoka, today versus where do you see the opportunity? I see lots of opportunity. It is not just relegated to Door Count, although I can certainly address that. New Balance, which has done a good job the last few years. We continue to see opportunities to do some store expansion, but also categories you mentioned across men's and women's and kids. We just introduced apparel really in the last 12 months. Champs has instantly become their number one apparel account in the US almost overnight. A remarkable feat there. We are also excited about things like Hoka, which are only in about a third of our global stores. Hoka, you mentioned, is only in 15% of our doors. We have got brands like UGG Classics, which is at scale, but still we see opportunity both in terms of extending the seasonality of that brand and introducing things like sneakers and sandals and slides as well. You think about Asics and Saucony, other lifestyle brands that are having an incredible moment. We're working really hard upstream to increase store count, innovation, and connectivity as well to the consumer. I would say I've been doing this 15 years. This is the most diverse, robust set of brand partners we've ever had at Foot Locker, which is really exciting, not just from a brand diversity, but also their focus on the men's, the women's, and the kids' consumer all simultaneously. That is embedded in our Lace Up strategies, of course, but it's also very exciting to have all those partners. Absolutely. Mary, thinking on stores, could you elaborate on the initial results that you've seen from your new brand standard store format? We think now that sometimes over 40% of store footage. Do you see opportunities to potentially accelerate the pace of reimagined door openings or conversions going forward? Yeah, sure. I mean, it's definitely one of our most exciting initiatives. As I said, we did eight reimagined last year, we're doing 80 this year. We are accelerating. We expect to kind of stay at that pace. We haven't determined the total future number. I guess the refreshes, we started the refreshes a while ago as a way to just begin to more immediately improve the experience in the stores, right? We still have 300 more that we're going to do this year. That pace will pick up. We don't need to continue to do that. I just think we see it across all dimensions: sales productivity and sales lift, gross margin productivity. It's really people are coming. I think part of it is just it's an even easier way to see everything we have to offer. It sounds kind of obvious, right? But when you see 40% or more of our transactions are multiple brands. When you come into the store, I'd say the wayfinding for the customer is much easier. You're definitely going to see things when you first walk in an area called the Drop Zone, which is highlighting what's new and hot right then. There is a lot happening in there that I think really is driving a great strong customer experience, great returns, and we're going to continue on the path at one. Great. Mike, maybe if we put pieces together on the top line, what's the range of scenarios that you contemplated in your 25 comparable sales outcomes? From a comp sales perspective, we guided from plus 1% to plus 2.5% on the top line. Really, the high end of that side is in line with where we've been operating over the last three quarters, so that 2.5% range. Really feel that that was the trajectory of business and where we've been operating. I think with also acknowledging that we've been a very stable or similar macro background. I think the 1% and the lower end of the range really contemplates some additional uncertainty within the consumer impacting the overall business this year. I think Mary talked about this a little bit earlier, but a lot of initiatives that we were incorporating into the business throughout 2024 that were really back half loaded that will anniversary and support the business in 2025. A lot of our store investments were back half loaded within the year from a refresh and a reimagined perspective. 75% of the refreshes we completed were in the third and fourth quarter. As we go into 2025 on the store front, we also have about 85% of the stores that we're going to touch in 2025 happening within the first three quarters of the year. That'll sort of we do expect comps to build throughout the year when we think about our profile. Our comp range would be sort of at the lower end of the range in the first half of the year and at the higher end of the range in the second half of the year. That's really the store investments for us throughout this time period. On the digital side, Frank also talked about it earlier, our app launch happened in the fourth quarter within the U.S. We'll take that to the Champs and Kids Banner in the first quarter of this year. Bridging into a very successful loyalty launch on our new FLX program in North America with a partial year benefits coming into 2025 and then taking that to our main business mid-year as well. Mike, could you elaborate on health and composition of your current inventory and any pockets of inventory at all that you need to clear excess inventory? Inventory, we do feel we need our positioning. We were up 1% year over year at the end of the year. That was following four consecutive quarters of being down 6% to down 10% year over year as we really completed the rebaseline of a healthier overall inventory position. That plus 1%, we had expected to be around flat year over year. That 1% was really us just from a timing perspective, making sure we had the right receipts in place as we transitioned across fiscal years. Beyond that, we have had a tougher overall apparel business within our trends. We've had inventory within apparel down at or below what the sales trends have been. The teams are doing a really nice job managing and making sure we do not have any inventory risk tied within the apparel business. Beyond that, we were able to turn our business at a 2.8 cost turn through the year, which is about a 5% improvement versus 2023. We believe over time we will be progressing towards a 3 cost turn or just above that. We expect to be able to make progress towards that in 2025. Mike, on gross margin, so first quarter, maybe could you elaborate on expectations for gross margin as you think about merchandise margins versus occupancy key leverage? Over the course of the year, maybe the cadence, how do you see merchandise margins progressing this year? From a margin perspective, we do expect the first half to not have the same level of growth as we expect in the second half from a rate perspective. We're coming out of the holiday time period where we did end up running more than we had anticipated initially going into the holiday time period. Really acknowledging that some of that will come into the first part of this year as we navigate some specific marketplace dynamics. As our initiatives continue to build as we move into the back half of the year and the marketplace normalizes, we do expect to be able to have a higher gross margin recovery in the back half of the year. I think from an occupancy standpoint, while there are some puts and takes for the high quarter, we do expect some slight occupancy leverage throughout the full fiscal year. The majority of it from an overall gross margin rate improvement perspective is merch margin driven. The fiscal year gross margin finished 200 to 300 basis points below 2019. Just thinking, are there any structural constraints that you see to the returning of pandemic gross margins, which I think were in the low 30%? Within our merch margin profile in 2019, we do expect to be able to get back close to those levels, but not all the way back to where we were in 2019. We do not think there are structural hindrances from us being able to get back into the low 30s from an overall gross margin perspective. We would expect equity leverage to continue to be a part of that as we grow the top line. I do see us being able to recapture up near where we were from 2019 merch margin perspective, just not all the way. As we look at our 2025 guidance, our 2025 guidance has us recapturing about half of the promotional pressure that we had in 2023. There is still about 150 basis point opportunity. We don't think it's structural to the marketplace long term that we can recapture into the future to support that. Maybe to switch gears to operating expenses, could you speak to some of the adjustments that you're making within your expense and capital priorities here in 2025? We are adjusting both capital and operating as we look into the year. If I start on the capital side, we did make some adjustments to change the investment profile of some of our technology spend. We're really leaning into the consumer-facing investments, both in stores and in digital. From a store side, Mary was talking about reimagined and refreshed. Our ability to get the brand standard, we're leaning into those and maintaining those investments, giving the return profile. On reimagined, we have stores that are $4 million-$5 million top line, 20% EBITDA, getting about a two-year payback. On the refresh, low single-digit sales lift, single-digit margin dollar lift, getting a two to three-year payback. As we've brought down our overall level of capital investments, we've been maintaining the investment in the stores as we move to initiatives. The real thing we've adjusted is sort of the cadence of our technology investments that is not customer-facing. Things that are more back of house will have longer-term paybacks. Given our current investment profile, we are leaning to the consumer-facing investments with more near-term paybacks. On the operating expense side, we did guide to slight leverage this year absent some incentive normalization. That is really something that we'll be focused on going forward, continuing to drive operating expenses down for SG&A leverage. Mike, to that point, if we look through the incentive comp normalization headwinds this year and into 2026, is it still a 3% comp? Is that what we should think about as a requirement to see SG&A leverage? That's still in the right range. Absent some, we do have some initiatives that we've been focused on that can drive some additional leverage beyond that. One is we've been very focused on a workforce management tool that we've implemented throughout this year that's helping us with our wage investments in our stores. It's obviously one of the biggest line items we have given the 2,400 stores globally. It's allowing us to drive wage leverage. It was something that we rolled out in North America in 2024, so a partial year benefit there. It's something that is just starting to roll out into MEA at the beginning part of this year and into APAC at the beginning part of 2024. Then longer term, as you think about operating margins, I think you have a target 8.5-9%. What's the timeline that you believe is reasonable for achieving that target? First, we do think it's the right structural target. It's the 8.5-9% that we are working towards. I think as we talked a little bit earlier on the margin side, supportive of that is we think our merch margins can progress to where we were from a 2019 level standpoint as we recapture some of those promotional pressures that we've been facing over the last couple of years. I also want to acknowledge from an SG&A standpoint that our 24% is not supportive of us getting to that range. We're very focused on continuing to make progress there over the next few years to drive that down. Not all the way back to where we were in 2019 because we will have a structurally higher investment level in technology. I'll take a close check to it. Mike, on that operating margin target between now and achievement, is it a linear path or is there a cadence to think about from a multi-year perspective in terms of getting there? We do think it's relatively linear in terms of how we ultimately get there. Obviously, this year a little bit lower than what the linear would suggest. I think as we still navigate some of the marketplace dynamics and our margin guidance is a little bit slower than that pace. We do think a relatively even path over the next couple of years is how we can do it. Okay. Mike, maybe just to close out before we open it up for any Q&A, how would you rank the market capital allocation priorities from here? From a prioritization standpoint, before we did the allocation, we were very pleased with the ability to generate free cash flow in 2024. We generated over $100 million of free cash flow focused on delivering free cash flow again in 2025 in a meaningful way. From an allocation standpoint, our first priority is to invest back into the business. We're seeing great returns in our store investments. We're seeing great returns in our digital investments. That's obviously a priority for us. Beyond that, as we're looking for the ability to get back to shareholder returns through dividends and share repurchases, we are looking for stability in the top line, looking for margin recovery, looking for the generation of free cash flow, all things that we've delivered. As we came into fiscal 2025, with the more dynamic consumer environment, we are erring on the side of not being too aggressive or too early in terms of returning to that, but still with the very meaningful focus of delivering free cash flow. The shareholder returns is something that we obviously have very regular dialogue with our consumer on. Great. I'll be with that. We'll open it up if there's any questions in the room. Happy to kick off. I just want to bear a lot of that kind of weak point. Just on apparel, I know that's been a weak point over the past few years. Just curious how we think about how we can turn that business around. I know you guys have suggested more apparel label and then also maybe some Nike expansion in there. I just want to get some framework of how we're thinking of that going forward. I'm pretty sure this is a turning point for it. Any strike color there on apparel? Yeah. I'll kick off. We definitely want to get back on all sense with apparel. It has been a rough couple of years. Overall, as an industry and the innovation cycle and competitive nature of it has sort of weighed down on our Champs business. We do see on the branded side some opportunities. I just got back from some journey from Los Angeles and the Adidas World Cup ideas that they have around the T-Toe shoes and also more importantly, the cultural look of football officially, which here in North America is significant for our Champs and for the WSS banner, but also in Europe. We think this is going to be a big tailwind. On the Nike side, I think Elliott mentioned they're getting back to their Geo Express Lane where that's shorter-term product creation. The three benefits there is, one, exclusivity and two, connectivity of apparel to footwear. That has always been a hallmark of our merchandising and go-to-market strategy when we're able to take and tell stories and collections at scale in our stores and on our site. Bullish about that. Just working more upstream with our partners to encourage innovation around the lens of silhouette, materialization, color blocking, connectivity back to sneakers, and getting back to some of those basic innovation and merchandising principles. The last thing I'll mention is private label, just controlling our own destiny. We're very bullish and see the opportunity both in tops, bottoms, and also accessories to get more aggressive in private label. We did go back based on some recent holiday and early spring and actually add or order both back to school and holiday for our private label assortment, both some packages as well as some depth and things that we really believe in. That is something we are going to continue to extrapolate into 2024. Frank, I know we talked about your inventories. Maybe overall inventory from the channel, both here in the U.S. and in Europe. Maybe what are you thinking from promotional activity? Yeah. I would say potentially better than they were. Twenty-five is looking better than twenty-four was. I think it's less an industry sort of epidemic as much as I'd say a count-by-count basis. I think we feel really good about the position that we're in. We've been very disciplined about our open-to-buy, where we place bets so that we can drive that turn. We also have the ability when things are working, whether it's the private label example that I said, that we can chase into. There's some new footwear innovation that we really like. We are air freighting it in from overseas to get it to market faster. Having the open design and flexibility to do things like that is really, really important. I continue to think that apparel on the whole is still going to go through a little bit of turbulence here in the front half of the year in summer. Then back to school, I think the holiday will be better. The footwear, I think it's honestly more on a brand and franchise basis than it's a sort of systemic issue at this point. How do you guys, understanding all the tariff stuff, is very influential? Just kind of philosophically, how all your branded partners or vendors are going to be facing these tariffs if this takes all those sort of caveats. How do you guys anticipate managing this kind of pricing to the consumer, assuming we're going to have an element of just a lot higher costs going to the consumer? I will start and Frank, please feel free to add. It is we are working to work through brand by brand and partnering together to assure that we both have a lot of this mutual profitability as a whole. We have done this before. I think it is a combination, like I said, of what do they take, what does the consumer take. We are going to also leverage our other tools to create demand and give our customers, like through our loyalty program, which is a great way to continue to build value for the customer experience. Yeah. One of the things we try to do is look ahead in terms of the pricing architecture and what are the key price points that we wanted to hit, both pre and then potentially with the impact of tariffs. We did have a little bit of input in our overall assortment into 2025. I think Mary's right. We're going to look at our promotional levers and think about how do we price things, whether it's based on an aging curve or on specific holidays or promotional events that we want to drive some demand and make sure that we're connecting with the consumer. The other thing is to the extent that we on the apparel side control things through private label, which is a better price point and value to our consumers. That's another reason we're sort of leaning into that, particularly in the back half of the year. It's definitely fluid. I mean, we're in constant communications now that we have a sense of what the initial tariffs are by source country and working with our partners very closely on that. There's a microphone that's running. Oh, sorry. Thank you. You talked about some of the Nike models that you were quite excited about. You also talked about the non- Nike brands that you're adding to. I'm just curious, how do you balance making room for Nike open to buy versus some of these other brands that you said are growing by double digits? At what point do you think the Nike classics issue sort of will be in the rearview mirror? Yeah. I'd say it's a high class one to have. We have diversity of vendor partners to choose from where you got innovation from outsold to running to classics to casual. One of the things that we do very carefully now is just capacity planning and looking at our store layout and the panels and the fixtures and what SKUs we can merchandise to that. We plan very carefully in totality, but also by family of business and then ultimately by vendor partners. We have overall decreased our SKU count as a sort of an overall statement across both footwear and apparel. What we've done is the things that we believe in, we're buying more depth and flowing more replenishment into those ideas to make sure that we're in stock, which helps turn, helps with price realization, etc. We're very pleased with that. The second part of your question, I'm sorry, was? Oh, Nike. Yeah. Sorry. Nike classics. Yeah. I think we're already seeing some of the benefits of that. I'm very happy with the work that's been done on Air Force and AJ1 and how they're thinking about both innovation and the consumer journey and how that's going to help balance supply and demand. Air Force, which is a big monster franchise for us, where we've seen some stuff that's incredibly exciting. I think there was just some Kobe Air Force 1 that Vanessa Bryant sort of leaked out this week. Some of those ideas and connectivity to, again, apparel is coming in the back half of the year that we're excited about. Just from an overall supply and demand, we talked about our position as basketball leaders with Nike and Jordan. I think we see that we're going to be a net benefactor of that.