Good day, ladies and gentlemen, and welcome to the Levi Strauss & Company fourth quarter fiscal year-end earnings conference call for the period ending November 30, 2025. All parties will be in a listen-only mode until the question and answer session, at which time instructions will follow. This conference call is being recorded and may not be reproduced in whole or in part without written permission from the company. This conference call is being broadcast over the Internet, and a replay of the webcast will be accessible for one quarter on the company's website, levi.com. I would now like to turn the call over to Aida Orphan, Vice President of Investor Relations at Levi Strauss & Company. Thank you for joining us on the call today to discuss the results for our fourth quarter and fiscal year-end. Joining me on today's call are Michelle Gass, our President and CEO, and Harmit Singh, our Chief Financial and Growth Officer. We'd like to remind you that we will be making forward-looking statements based on current expectations, and those statements are subject to certain risks and uncertainties that could cause actual results to differ materially. These risks and uncertainties are detailed in our reports filed with the SEC. We assume no obligation to update any of these forward-looking statements. Additionally, during this call, we will discuss certain non-GAAP financial measures, which are not intended to be a substitute for our GAAP results. Definitions of these measures and reconciliations to their most comparable GAAP measure are included in our earnings release, available on the IR section of our website, investors.levistrauss.com. Please note that Michelle and Harmit will be referencing organic net revenues or constant currency numbers unless otherwise noted, and information provided is based on continuing operations. Finally, this call is being webcast on our IR website, and a replay of this call will be available on the website shortly. Today's call is scheduled for one hour, so please limit yourself to one question at a time to allow others to have their questions addressed. Now, I'd like to turn over the call to Michelle. Thank you, and welcome everyone to today's call. The fourth quarter punctuated a strong year defined by progress against our strategy, accelerating brand momentum, and solid financial performance. Over the past 2 years, we've taken bold steps on our journey to become a DTC first, head-to-toe denim lifestyle retailer. We've made deliberate strategic choices to maximize the potential of the Levi's brand, narrow our focus by exiting non-core businesses, and vigorously pursue our highest return growth opportunities. We are becoming a more consumer-focused, DTC-centric lifestyle company, which has led to faster growth and higher profitability. These efforts led to strong full-year financial results. In 2025, we delivered organic net revenue growth of 7%, which was broad-based across all facets of our business. Here are a few key highlights for the year. As a reminder, all numbers Harmit and I will reference are on an organic basis. First, the Levi's brand grew 7%. Levi's strengthened its standing as the number one denim brand in the world, and today holds more market share than the next two global competitors combined. Second, we took a big step forward in our evolution to becoming a true lifestyle apparel brand by bringing to market our most robust head-to-toe product pipeline to date. This drove growth across channels and meaningfully increased our total addressable market. Third, we accelerated our DTC transformation, growing 11%, which now comprises approximately half of our total business. Importantly, we saw significant DTC margin expansion in 2025 as we delivered high single-digit comp growth for the year and a more efficient operating structure in both stores and e-commerce. Fourth, our wholesale channel continued to deliver more stable growth, ending the year up 4%, fueled by our expanded lifestyle assortment as well as new distribution. Fifth, our growth in women's continued to accelerate, up 11% for the year, with both tops and bottoms delivering double-digit growth, in addition to 5% growth in men's. While we drove significant top-line growth, we also delivered our highest-ever gross margin as well as adjusted EBIT margin expansion. Now, turning to details of the fourth quarter. Total company revenues increased 5% on top of 8% growth last year, and this momentum continued through the holidays, with 7% growth during the November-December holiday season, reflecting strength across both DTC and wholesale channels. This marked our highest revenue for the holiday period in at least a decade. First, I will walk you through the progress made against our brand-led strategy, which centers around how we're amplifying the power of the Levi's brand through an innovative and fresh product pipeline and culturally relevant marketing. In Q4, the Levi's brand grew 4%, driven by strength in men's and even higher growth in women's. Growth in men's and women's continues to be driven by both our core as well as the newness we've introduced throughout our assortment. A testament to the strength of the brand, in 2025, we cemented our number one position in men's, women's, and in our key youth demographic of 18- to 30-year-olds in the U.S. These share gains are supported by strong brand heat, reflected by higher social media engagement and meaningful gains in brand equity versus last year. In Q4, we continued to fuel our global brand momentum while strengthening our relevance in local markets. We unveiled a number of unique collaborations. Examples of these include a premium collection with Barbour and a limited edition footwear launch with Nike and Japanese streetwear icon, Nigo. We celebrated our final chapter of the Reimagine campaign with Beyoncé and launched our global campaign targeted at men, featuring Shaboozey and Matty Matheson. We also reinforced our long-standing link to music culture by celebrating a full decade as an official sponsor of Corona Capital, Mexico's largest music festival, putting the brand front and center in our second-largest market. Moving to product. Our evolution into denim lifestyle is resonating, and the Levi's brand is gaining even more share of the closet as our tops business continues to accelerate. The tops reset we initiated a few years ago, bringing in new internal talent, new vendors, and enhanced capabilities, is paying off today. In Q4, tops grew double digits, driving nearly half of our revenue growth and meaningfully higher AURs versus last year. Strength was broad-based, reflecting growth across men's and women's, which was driven by strong demand in our elevated assortment of sweaters, wovens, and outerwear. Tops will continue to be instrumental to our denim lifestyle strategy, and while we're pleased about our progress to date, we are just getting started as a destination for the tops category. Within our bottoms business, we are showcasing our most diversified portfolio yet, with everything from our core icon to our innovative fashion fits and non-denim bottoms, all delivering growth. While skinny and straight fits remain popular, loose and baggy styles continue to accelerate. New styles, like the 578 Baggy for Him and our expanding Barrel Family for Her, are fueling momentum as we own more of the denim market in both his and her closet. In Q4, we successfully completed the global rollout of our Blue Tab collection, which represents the most premium expression of our brand. While we are still in the early stages, the strong consumer response to this collection gives us conviction in the opportunity in the premium segment of the market, which is sizable and largely underpenetrated by the Levi's brand. In 2026, we will further expand the assortment and roll it out more broadly across our DTC business, as well as select premium wholesale accounts. Looking to 2026, we enter the year with a robust product pipeline and a brand that's more culturally relevant than ever. For the first time in more than 20 years, Levi's will debut its newest ad during the Super Bowl, which will be hosted at Levi's Stadium, marking the launch of our new global campaign that will run through 2026. With this kickoff and more major global moments to come, including several World Cup games to be held at Levi's Stadium this summer, we are energized by the runway ahead and confident in our ability to keep driving the Levi's brand forward. Now shifting to our next strategy, to be DTC first. In Q4, our global direct-to-consumer business delivered another quarter of double-digit growth, up 10%, and posted its 15th consecutive quarter of positive comps. We generated another quarter of high single-digit comp growth, reflecting positive performance across all store KPIs, including traffic, conversion, and UPT, in addition to AUR growth across every segment. In Q4, we opened 47 net new system stores, including mainline locations in Japan, India, Thailand, and Korea, as we continue to expand our DTC presence in Asia. Over the past year, we have transformed our retail operations both in stores and online, improving the consumer experience and store productivity. We've enhanced our in-store lifestyle merchandising, highlighting our broader assortment of head-to-toe looks. We've improved our assortment planning and lifecycle management, resulting in lower promotions and higher full-price selling. We're rolling out a new global selling model for our store team, which will deliver operational efficiencies and improved consumer engagement. We are still in the early stages of what we believe is a significant opportunity to continue to improve our DTC margins, which will be a key driver of our overall company margins. Our efforts to build a strong digital foundation have enabled us to accelerate our e-commerce business, and in Q4, we delivered another quarter of very strong e-commerce growth, up 22%. We are leveraging AI to make online shopping easier and more inspiring for our fans. We recently launched Outfitting, an AI-powered feature in the Levi's app that creates style looks using our full assortment, purchasing behavior, and product imagery. This year, we'll evolve Outfitting with even more consumer-centric customization and will launch a new consumer-facing AI stylist chatbot that enables personalized recommendations through conversation. We are also continuing to scale the use of AI and advanced analytics across the organization as we accelerate our shift to a best-in-class, direct-to-consumer retailer. For example, we recently announced our plans to develop and deploy an integrated agentic AI platform to simplify and automate task-driven work throughout the organization, driving efficiency, productivity, and enabling growth. Built in partnership with Microsoft and as a frontier firm in the industry, we're currently testing this technology and plan to roll it out to employees this year. These initiatives are rewiring the company for a bold future, creating meaningful opportunities to enhance consumer experiences while unlocking additional operational efficiencies. While DTC continues to drive outsized growth, wholesale continues to be an important channel for us to amplify the brand and reach our consumers where they choose to shop. Our global wholesale business was flat for the quarter and ended the year up 4%. The channel has stabilized over the past year as our efforts to elevate the brand and to broaden the assortment gain traction. Now turning to our third strategy, powering the portfolio. In Q4, our international business grew 8%, led by an acceleration in Europe and solid growth in Latin America. International comprises nearly 60% of total sales, and given the strength of the brand and our expansion into lifestyle, we see an immense opportunity for continued profitable growth outside the US. Beyond Yoga was up 45% in Q4, fueled by the positive response to our Seek Beyond campaign, launched in Q3, and product expansion into new categories across active lifestyle. DTC performed particularly well, and we opened four new stores in the quarter. Beyond Yoga ended the year up 17%. As we look to 2026, the brand will continue to expand its retail presence in new markets and launch the next iteration of our broadened lifestyle assortment. Looking ahead, I am more confident than ever in our future potential. While we continue to navigate a dynamic global environment, we do so from a position of strength with an iconic brand, deep connection with our fans, and the agility to adapt and grow. Our strategies are working, and we have the right capabilities and team in place to continue to drive momentum in the year ahead. We'll keep building our denim lifestyle leadership by bringing fans fresh, new products across every category, while continuing to celebrate the iconic styles that have shaped generations. And we'll continue to keep Levi's at the center of culture through a focus on sports, music, and youth, showing up powerfully on the world's biggest stages and sparking excitement that deepens our cultural relevance globally. All of this is supported by our continued commitment to drive operational excellence and to strengthen our execution, grounded in a focus on discipline, accountability, and performance. I'd like to thank our incredible, talented, and passionate team for driving our transformation into the world's denim lifestyle leader and delivering outstanding service to our fans every day. Together, we're building a stronger foundation for sustainable, long-term value creation. With that, I will turn it over to Harmit to review our performance in the fourth quarter, the year, and expectations for 2026. Harmit? Thank you, Michelle. 2025 was a strong year with continued, consistent, profitable growth for our company. I'm pleased that our growth has accelerated over the last 3 years, and we have established ourselves as a consistent mid-single-digit growth company, which we expect to continue in 2026. We've also made progress each year on expanding margins, both gross and operating, while driving higher returns on invested capital, ending the year at approximately 16%. Our 2025 financial results reflect the strength of our business and demonstrate that we have the right building blocks in place to drive long-term, sustainable growth. Our focus on denim lifestyle has enabled us to accelerate growth by expanding our total addressable market with our broadened assortment of non-denim bottoms, tops, dresses, and skirts, which contributed to almost a third of our growth in 2025. Our disciplined approach to converting growth into profitability improved adjusted EBIT margin by 70 basis points in 2025, and we achieved this while navigating higher tariffs and investing in remapping our distribution network as we build the roadmap towards becoming a $10 billion DTC-first company. In 2026, we will continue to grow adjusted EBIT margins through our relentless focus on driving higher revenue flow-through while making the right investments for our long-term growth, including growing our store base, AI capabilities, and marketing. In addition, we're making meaningful progress on mitigating tariff impacts on our P&L through targeted pricing actions, higher full-price selling, lower product costs, and prudent management of our cost base. Now, let me walk you through the specifics of our fourth quarter performance. Organic net revenues grew 5% and were up 13% on a two-year stack. Our outperformance was driven by better-than-expected results across channels and geographies. As we have seen throughout the year, both AURs and units contributed to our growth this quarter. We expect both price and unit growth to drive the top line in 2026 and beyond. Gross margin for the quarter was 60.8% of net revenues, contracting 100 basis points relative to last year, in line with our expectations, primarily due to the impacts of tariffs, which were partially offset by pricing actions and higher full-price selling. In the first quarter, we implemented additional pricing actions to further mitigate tariffs, and while it's early, we are not seeing any impact on consumer demand thus far. Adjusted SG&A dollars grew 2.6% due to the sales upside, driving higher selling and incentive expenses, higher costs associated with the transition of our U.S. distribution network, and unfavorable foreign exchange. A brief update on our distribution network transformation in the U.S. While we're making progress, the transition to the new third-party distribution center has taken longer than we expected. We've been working to fulfill our high demand by continuing to operate our own distribution center, which has led to higher transitory distribution costs, which we expect to continue to incur through the first half of 2026. We successfully executed a distribution transition from owned and operated to a hybrid model in Europe last year, enabling us to fulfill our strong demand, as evidenced by the double-digit revenue growth in the quarter, while improving our profitability in the region. This gives us confidence that we will successfully complete the transition in the U.S. this year. Moving down to the EBIT line, adjusted EBIT margin contracted 100 basis points to 12.1%, related to the impact of lapping the 53rd week and tariffs. This was slightly lower than our expectations due to the three reasons I mentioned before within SG&A. That is unfavorable FX, higher distribution costs, and incentive compensation. Fourth quarter adjusted diluted EPS was $0.41 higher than expectations. This includes a $0.03 headwind from a higher tax rate. We ended the year with reported inventory dollars up 9% to prior year and units up 2%. The year-over-year dollar increase was primarily driven by tariffs. We continue to believe our inventory, quantity, and quality are well-positioned globally and expect inventory levels ending fiscal 2026 to be below revenue growth. Turning to dividend and share repurchases. In quarter four, we returned $55 million to shareholders, and for the full year, we returned $363 million, up 26% versus prior year. This included a 7% increase in the dividend versus last year, and a $150 million share buyback in 2025 was the highest annual buyback since the IPO. Today, we are announcing a $200 million ASR program, which will be completed within 3 months but no later than 6 months, reflecting our confidence in our future and continued efforts to drive shareholder value. Now, let's review the key highlights by segment for the quarter. The Americas net revenues were up 2%. Our US DTC business grew 6%, driven by strength in both brick-and-mortar and e-commerce. US Wholesale was down due to capacity constraints in our new 3PL, as well as strong growth from a key digital wholesale customer in the prior year. Our LATAM business was up 8%, fueled by growth across most markets and continued strength in DTC. Operating margins, which were up for the year, contracted 460 basis points in the quarter, primarily due to the lapping of the 53rd week and the impact of the tariffs. Europe net revenues accelerated up 10% in Q4, led by double-digit growth in our largest European markets, the U.K. and Germany. We delivered strong holiday performance and growth across all categories, including men's, women's, tops and bottoms. Gross margin expansion and SG&A leverage resulted in operating margin growing 330 basis points versus prior year. Europe's operating margin for the full year grew 180 basis points. Asia net revenues grew 4% year-over-year, fueled by strong DTC performance. Key markets, including Japan and Turkey, delivered double-digit growth this quarter as a head-to-toe lifestyle offerings continued to resonate with consumers and drive growth. Operating margin expanded 140 basis points versus prior year, driven by gross margin strength. For the full year, Asia grew 7% and operating margin expanded 60 basis points. Now, let's turn to our outlook for fiscal 2026 and Q1. We are pleased with our Q4 results and with our trends in the first quarter, including a successful holiday period. Looking to 2026, we expect organic net revenue growth of 4%-5%, with 1-point favorability from foreign exchange, resulting in reported net revenue growth of 5%-6%. By segment, we expect the Americas to grow low single digits, Europe mid-single digits, and Asia mid to high single digits. By channel, we expect DTC to grow high single digits, fueled by positive comp sales, opening 50-60 net new system doors, and continued growth in e-commerce. Global wholesale is expected to be flat to slightly up, given plans to rationalize our wholesale footprint, particularly a few non-strategic accounts in the U.S., in support of our brand elevation strategy. Gross margin is expected to be flat to prior year. This includes an approximate 150 basis points growth impact from tariffs, which we plan to offset with pricing actions, higher full price selling, product cost reduction driven by lower cotton rates and vendor negotiations, SKU rationalization, and favorable mix. FX is expected to be a 20 basis point headwind to gross margin. While these mitigation factors will begin to flow through the P&L early in the year, we anticipate the pace of benefit realization will accelerate as we progress through 2026, with a more meaningful contribution emerging in the later part of the year. The fundamental drivers of our gross margin expansion, which are mix, higher full price selling, continued product cost reduction, remain intact, positioning us well for a resumption of full year expansion in 2027. We expect our fully adjusted SG&A rate to improve by approximately 40-60 basis points as the organization is increasingly focused on driving operating leverage. This is driven by cost actions to mitigate tariffs, expansion of our global talent hubs, limited headcount increases as we drive productivity and efficiencies by expanding AI usage, and easing costs from running parallel distribution centers in the second half of the year. For the year, we expect marketing spend to be approximately 7% of total revenues, flat to 2025. As a result, adjusted EBIT margin is expected to expand 40-60 basis points in the range of 11.8%-12%. Given our mid-single-digit growth and our focus on growing gross profit dollars ahead of SG&A dollars, we do expect to leverage for the full year. We expect the full year tax rate to be around 23%, 2 points higher than 2025, and interest expense is expected to be approximately $12 million a quarter. Full-year adjusted diluted EPS is expected to grow and be in the range of $1.40-$1.46. This includes a $0.04 headwind from a higher tax rate and a $0.20 drag from the higher gross impact from tariffs, which we are fully mitigating. CapEx should be approximately $230 million, 3.5%-4% of revenues, primarily to support store openings, fleet improvements, and our digital investments. Before I discuss our Q1 guidance, I wanted to give some color on the cadence of the P&L for the year. We expect consistent mid-single-digit revenue growth throughout the year, with Q2 slightly lower due to seasonality. We expect gross margin to improve in the second half as we realize the benefit of pricing and lap the impact of tariffs. On a full year basis, as previously mentioned, we expect marketing spend to be 7% of total revenue. However, this spend will be Q1 weighted, given the timing of our global marketing campaign, which kicks off in February with the Super Bowl. Because of this, we expect Q1 spend to be approximately 160 basis points than Q1 2025 and lower in the remaining three quarters of the year. As a result of the Q1 marketing phasing, operating margin is expected to contract versus prior year in Q1 2026 and then expand as gross margin expansion and operating cost leverage take hold, driving full year growth. Now, turning to the first quarter of 2026. We expect organic net revenue growth of 4%-5%, consistent with our full year forecast, and a 3-point FX tailwind, resulting in 7%-8% reported net revenue. On a two-year basis, this is an acceleration from Q4 2025 and demonstrates that we are maintaining momentum. Gross margin is expected to be slightly down versus Q1 2025, primarily due to the continued impacts of tariffs. As noted earlier, we have already implemented further pricing actions earlier this month, and additional pricing actions will occur in February. Adjusted EBIT margin is expected to be down 100 basis points versus Q1 2025 to 12%, primarily driven by the timing of the marketing campaign. While the production costs are expensed in the first quarter, we expect to benefit from the campaign through the course of the year. Excluding A&P timing, adjusted EBIT margin leverages in Q1. In Q1, we expect adjusted diluted EPS to be between $0.35-$0.38. This includes a $0.07 drag from A&P. In closing, 2025 was another solid year for us, while accelerating top line and bottom line, evidencing the success of our strategies and our transformation to a denim lifestyle DDC-first company. We enter 2026 with strong momentum and a maniacal focus on expanding operating margin. With a robust product pipeline, growing TAM, and clear plans to mitigate tariffs, along with a talented and experienced management team, we look forward to another year of consistent growth and margin expansion. Beyond 2026, we are confident about what's ahead. Our iconic brand, global reach, and relentless focus on growth and cost management will continue to create lasting shareholder value well beyond 2026. And with that, Latiff, let's open up the line for Q&A. Thank you. The floor is now open for questions. If you have a question, please press star, then the numbers one, one on your telephone keypad. Due to time constraints, the company requests that you ask only one question. If you have an additional question, please queue up again. If at any point your question has been answered, you may remove yourself from the queue by pressing star one, one again. Our first question comes from the line of Laurent Vasilescu of BNP Paribas. Your line is open, Laurent. ... So thank you. Good afternoon. Thank you for taking my question. I'd love to ask about gross margins. Harmit, you've historically beaten your initial gross margin guide. Are you taking the same conservative stance as in prior years with this guide of flat gross margins? How should we—I think you talked about sequential improvement on the gross margin for the year, but can you maybe just put a finer point, you know, how do we think about the first quarter gross margin? Because I think expectations were a little bit higher for Q4. And can you maybe just unpack a little bit more the drivers on cotton transit and the offset on tariffs for the bridge for the year? Thank you very much, Harmit. Thanks, Laurent. A gross margin question from you is right on the money. But let's start with a little bit of the history. Gross margin, you know, we have established a track record of consistent gross margin expansion, as you said. Our algorithm talks about expanding gross margin regularly, every year. Last year, 2025, we grew gross margins 110 basis points, and over the past three years, it's grown about 400 basis points. And I'll talk a little bit about the structural drivers, which are intact. Talking about 2026, our guidance is, at this time, flat to prior. What we have done nicely is offset the full impact of tariffs, you know, as the year progresses. So tariffs, as I mentioned in my prepared remarks, impacts gross margins adversely by about 150 basis points, and we have an FX headwind of about 20. We're fully offsetting this with higher pricing. You know, most of it's been implemented. We're not seeing any initial demand reaction to it, so the elasticity is pretty good. More full price selling, which is, something that we've been focusing now for about 12-18 months, especially as a product, you know, and newness is resonating well with the consumer. And then lower product costs, which are a combination of lower, you know, better, and lower quarter, as well as the negotiation with the vendors as we rationalize SKUs, you know, reduce unproductive, you know, assortment, et cetera, et cetera. So, and the only thing I would say is the structural benefits, which is growing, you know, more aggressively, things like women's, which is higher gross margin than men, DTC, which is higher gross margin than wholesale, and international, which is higher gross margin than the US, that's intact. So as we think about 2026, I think the way we flow this is, first quarter will be slightly down than a year ago because the pricing gets effectuated and improves and accelerates in terms of year-over-year performance as the year progresses, and we start lapping tariffs. And as we think about 2027, Laurent, you know, our view is, you know, this is, we don't guide 2027 right now, but our view is the structural aspects that we're focused on growing, which is through mix, which is DTC, women's, and international, will resume the acceleration of gross margin in the years to come. So that's how we're thinking of gross margins, you know, and I hope that answers your question. It does. Thank you very much, and best of luck. Thank you. Our next question comes from the line of Matthew Boss of JP Morgan. Your line is open, Matthew. Thanks, and congrats on another nice quarter. Thanks, Matt. So, Michelle, how does your mid-single-digit organic outlook for this year size up to the denim category? Maybe where do you see opportunity to increasingly move to offense this year? And then, Harmit, on that topic, could you elaborate on the acceleration to 7% organic growth in November and December? I think that's on top of 8% growth a year ago, so a mid-teens two-year stack. Just could you speak to the strength that you're seeing, and have you seen any softening in top-line momentum post-holiday? Okay, great. So Matt, yeah, I'll start with your first one. We feel really good heading into 2026. I mean, I'd say it's clear that our strategies are working, and just as 2025 was a strong year, +7% organic growth, we're expecting 2026, as you said, mid-single-digit 4-5 organic, 5-6 on a reported basis. You know, highlights from my standpoint are, number one, you know, I'd say that we are in the best shape that we've been in decades, both operationally and financially. 2025 is certainly a good proof point of that. Our strategies of being brand- led, D2C first, and powering the portfolio, are clearly working and are driving broad-based growth across channels, categories, genders. I think what's really exciting is we're making this big transformation, as you know, from a denim bottoms business to a true head-to-toe denim lifestyle company. So when you think about 4%-5% mid-single-digit growth ahead, you know, we do expect Matt to outperform the category. I mean, the category, and if you're talking just denim, it is accelerating globally, and as a leader, we are fueling that growth. You know, on that note, in the U.S., which is also growing, we have cemented our position as the number one share for men, women, and youth... and it's the first time that we can remember that all three of these targets have grown share and are number one. So, so it gives us tremendous confidence that strategies aren't changing, we're leaning in, and we're executing. And the last point I would make is, you know, just as we plan to continue to fuel the denim category, we've expanded our total addressable market, right? We're no longer just in denim bottoms. And in fact, as Harmit mentioned earlier, about a third of our growth this past year was driven by categories outside of denim bottoms. So speaking to tops, which had a really fantastic year, up double digits, we expect that tailwind to continue. Non-denim, again, it's growing, it's growing fast. We expect that to continue. And then, of course, as we think about the women's business, women's had a great year, up 11%, but that head-to-toe dressing from being relevant in fashion and loose, baggy, all the icons, but then also in skirts and dresses, tops. There's a lot of runway as we look into 2026 and beyond. To your second question, Matt, I think you know, holiday was strong for us. It centers around two strategies. One is DTC. So as we become a DTC-first company, as a team, we really focused on making sure we win in holiday. We made sure you know, there's newness on the floor. We made sure the product that you know is you know being innovated was both with our wholesale customers as well as in our stores and on e-commerce platforms. And the teams really executed really well. So that's fact number one. Fact number two is just building on the standpoint that Michelle just talked about. That centers around the denim lifestyle you know focus. The myth I would like to bust you know is that we're just not only denim bottoms. We are more than denim bottoms. I mean, this is more of a head-to-toe lifestyle, denim, focused, company. So think about the other way. Our teams, shout out to our product teams and merchants, product teams led by Karyn Hillman and, our lead merchants. We, we sold a lot of sweaters, you know, more than we have sold in a long time. You know, we sold a lot of, sold a lot of chinos. I can go and just talk about the different products that, that were introduced in holiday that really helped. So... And that's what gives us the, the confidence that we can grow Q1 on a two-year stack at 14%. You talked about November and December at 15, but, you know, for the quarter, you know, that gives us the confidence and sustaining the 7% organic growth with, you know, 4 or 5 organic growth in 2026. It's a great color. Best of luck. Thank you. Thank you. Thank you. Our next question comes from the line of Jay Sole of UBS. Your line is open, Jay. Thank you. You know, Michelle, in the prepared remarks, you made a comment that you believe that the direct-to-consumer channel margins can can move higher. Can you just dive into that a little bit and tell us, you know, what are the drivers, and where do you think the margins can go from, you know, where they are today? Thank you. Yeah. Yeah, absolutely. Thanks, Jay, for the question. We absolutely believe that there's a lot of upside in DTC, both from a revenue standpoint and margin. You know, as I commented earlier, 15 quarters of positive comp growth. So first of all, margin growth will come from leverage, you know, call it sales productivity. As we continue to drive higher volumes, we'll clearly leverage off of the fixed costs in our store, which includes, you know, your real estate, your fixed labor, just a lot of, you know, a lot of those, like I said, fixed costs. Secondly, I would say is, you know, we are really focused on retail excellence. That had a big impact in expanding our store margins this past year, and that will continue. So we're, we're stepping up our operations capabilities. That includes things like enhanced lifestyle merchandising. So, when the consumer's coming in, they're not just buying a pair of bottoms, they're also buying the top. So driving UPTs, driving average ticket price, et cetera. Improved assortment planning and lifecycle management. You know, we talk about rewiring this company to be a retailer, and that's happening. We've put new systems in place. We're in the midst of rolling out a new planning and allocation system that's gonna benefit sell-through, keeping us in stock. And I would say, historically, you know, that wasn't a core strength. Growing up as a wholesale company, that wasn't a core strength of ours. It has to be now, and you see it in the numbers to date. You'll see it going forward. And then lastly, I would say, again, operating with a retail merchant mindset, is the selling model, and we have a new global selling model that's rolling out worldwide. So, you know, our expectation, the margin expansion that we saw, this past year, we expect that to continue. We feel really good. Got it. Okay, thank you so much. Thanks, Jay. Thank you. Our next question comes from the line of Bob Drbul of BTIG. Please go ahead, Bob. Hi. Good afternoon. Congratulations on a- Thanks. Nice quarter. I guess I was wondering if you could focus in on Europe a little bit more, you know, either, you know, country trends or, you know, did the Blue Tab business have a big impact in those results over there? It looked pretty good. Thanks. Thanks, Bob. So first, a big shout out to the Europe team. You know, they had a phenomenal year. They were up in the mid-single digit. The strength in Europe for the quarter was up 10%. Ended the year really strong, and entering 2026 with momentum. The strength was, you know, evident. I talked about UK and Germany, my prepared remarks being up double digits. But you think about the channels, both channels were up. Wholesale actually led the way with 13% growth, and you look at the other markets, Bob, most markets grew in Europe. Again, very strong holiday. The team in Europe does a great job executing against the strategies. You know, women's was up 10, men's was up 9, as an example, and then e-commerce was up, I, you know, big time. So overall, really strong results. It translated, you know... driving growth is one thing, but it's important that the growth translates to profitability, and it translated with operating margins up 380 basis points. So let's think forward. 2026 with, you know, we are signaling Europe grows mid-single digit, and you think of the pre-book, which is the first sign of, you know, how the wholesale customer will shop. Our pre-book is up mid-single digit. So I think that's, that's just a, you know, just thinking about, Europe, for 2026 and, you know, what drove 2025. Great. Thank you. Thanks, Bob. Blue Tab. Okay, and, on Blue Tab, do you wanna talk about- Sure, yeah. No, happy, happy to talk. So Blue Tab is clearly a global opportunity for us, so yes, in Europe, but, across the globe. And we're really excited about this because we think this presents a new business for us. The premium category is largely untapped for us. It's sizable, it's growing, and we're significantly underpenetrated. So, you know, early signs for Blue Tab are very positive. We just rolled it out early, early in 2025, and it is the pinnacle expression of our brand. Very elevated, you know, commanding price points for bottoms, for $200-$350, truckers, $250-$400, the list goes on. And we're early in the early stages. We're testing, we're learning, we're scaling, but it is showing that the consumer is responding and that we have permission to play in this elevated premium market. You know, we have, we've also had green shoots through the collaborations that we've done for a long time, which have commanded, you know, those really elevated price points, but now we're really gonna lean in. It isn't gonna be, you know, these in-and-out collaborations. We see it as an ongoing business that not only will represent a commercial opportunity, but it's a great halo to the entire line. So I think more to come, but, you know, we're bullish on really getting into this, this premium category. Good luck. Thank you, Michelle. Thanks, Bob. Thank you. Our next question comes from the line of Oliver Chen of TD Cowen. Please go ahead, Oliver. Hi, this is Gabriella Garr on for Oliver. Thanks for taking our question. We'd be curious to hear a little bit more about any improvements that you're seeing within supply chain and progress that you're making on shortening go-to-market within your products. I know you mentioned AI being an efficiency driver within the corporate setting, but would love to hear any additional color on supply chain. Thank you. So, why don't Harmit and I both take this one? Let me talk about kinda end-to-end supply chain as it relates to product development, and I think Harmit can speak to our distribution transformation. Right. So, yeah, as you know, we've been on this journey as we pivot to become a DTC retailer, to shorten our timelines, drive global consistency, et cetera, and we're making good progress. We've taken a few months out of our end-to-end lead time, so we've shortened that from, you know, what was 16, 17 months down to 14 months. We're now focused on creating different tracks of products. So for example, in tops, we're going after shorter cycle times, looking at vendors who are closer to the point of distribution, et cetera. We have a new head of supply chain, Chris Callieri, who comes with deep experience in vertical retail and has a very, you know, very strong strategy to go after those opportunities. So that's, you know, point number one. Point number two, a key enabler to that is driving greater global consistency. So, what used to be, we'd always developed our products here in San Francisco, but it was more of kind of a bottoms-up approach. Now, what we've seen is really more of a top-- I'll say, tops down, but having a globally directed line. So for perspective, back in, like, 2023, early 2024, our globally directed line was about 20%. We're now 50%, on our way to 70%-75%. And with that, it clearly drives a lot of efficiency. So over time, you'll see that show up in, you know, in inventory turn and sell-through and productivity. And also, it allows us to really get behind those big bets from a marketing standpoint and leverage our resources. So the second... and then the third piece, somewhat related, is we continue to be really focused on reducing our SKU count. And we are still ranging in the reduction of about 20-25%. Again, all of these things will help enable margin accretion over time. Yeah. And on the Gabriella, to the question on distribution, just by context, you know, two years ago, we began remapping both U.S. and distribution network to a more hybrid, automated omni-channel model, largely done with the intent to support our long-term growth and ensure we meet growing consumer demand. Europe, as I mentioned in my script, is fully transitioned, and we're seeing clear top line and bottom line opportunities. In the U.S., the ramp up has taken a little longer than we expected, and so we supplemented this by ensuring that one of our own facilities stayed open a little longer, as well as increasing the manual operation, because to be honest, the demand outstripped our expectations, given the wonderful product that we have and, you know, we have introduced in the marketplace. We brought in distribution experts into our organization. They're helping us complete the transformation. We're working with our third-party leading logistics partners, you know, and so we're confident of completing this by the end of the year. As you saw from the Europe numbers, you know, when it is complete, it does make a big difference to top line and bottom line. Thank you. Thank you, Dilip. Thank you. Thank you. Thank you. From Rick Patel of Raymond James. Your question, please, Rick? Thank you. Good afternoon, and congrats on wrapping up a strong year. We wanted to double-click on the delays, related to the new DC. So can you provide additional color there and what gives you confidence it'll come online in the back half? And then, as we think about the SG&A impact, what's the right way to think about the impact the DC will have as we think about the transitory cost in the first half versus what should be a sizable opportunity to drive leverage from efficiency in the back half? Yeah, sure. Thanks for asking the question. What gives us confidence is a couple of things. One, we've got a great team on our side and a great team with our third-party logistics partners, working together to try and solve it, and do it in a way that we are able to meet consumer demand while setting ourselves for the long term. So that's fact number one. Fact number two is, you know, I mean, this is a daily, if not a weekly, discussion, and Michelle and I, and the top teams, you know, management teams on the other side are directly in conversations. And the other only proof point I would have, there is, we've seen it happen in Europe. There's no reason why it shouldn't happen in the U.S. So that's, that's, you know, addressing your question. To the question on SG&A, you know, our focus on SG&A has risen to an all-time high within the company. I think you can ask the entire management team in the company, and they'll say, "This is a group that really wants to drive more leverage." And the best way to explain this, Rick, is to say, let's convert a higher percentage of our growth, our growth profit dollars into EBIT dollars. You know, what gives us confidence in 2026 is a few things. One, you know, a higher volume, 4%-5% organic, or 5%-6% reported, should leverage. Second is, I think, Jay, you asked the question about DDC productivity. You know, again, a myth to bust, higher DDC doesn't mean lower EBIT margins. So you think about last year, our DDC margins were up 300 basis points, so EBIT margins were up. We've got plans to grow DDC margins even in 2020... in 2026. The other thing is, we have limited headcount increases, and the way we're doing it so that we manage growth with resources is really leverage the use of AI. And to your question about distribution costs, we feel the parallel running of the DC, that pressure eases by the first half of the year, so you start seeing some of the benefit in the second half of the year, and you see that in the P&L. Overall, our SG&A rate as a percentage of revenue, which we have always said will be around 50%, we think in 2026 will be lower than that. Very helpful. Thank you. Thanks. Thank you. Our next question comes from the line of Tracy Kogan of Citi. Your question, please, Tracy. Hey, it's actually Paul Lejuez from Citi. Hey, Paul. You mentioned, you know, you mentioned several rounds of price increases. I was wondering if you could just talk about where those are happening and the magnitude, and maybe tie that into your assumptions for growth by geography in F '26, as you think about the breakdown between price versus units in each of the three geographies you mentioned. Sure, Paul, I'll take that one. So yeah, as we, as we talked about earlier, we are taking, call it, thoughtful, targeted pricing actions, as part of our tariff mitigation. And that's largely happening in the U.S., although, as ordinary course of business, we do take pricing around the world as we mitigate things like inflation and the like. But, you know, our focus for the, for the most part, was here in the U.S. I will say we have not seen any consumer or customer reaction to date, which I think is a testament to the strength of the business, the momentum we have and the consumer responding to our product, our marketing efforts. And I would say that, you know, we have pricing power, given how strong the brand is right now, the market share gains. So you know, where it's appropriate, especially in our higher, you know, higher tiered and newness innovation, we're leveraging that pricing power, while at the same time taking more modest pricing and being very diligent on, call it, those tier three, lower priced entry-level prices. So, the teams, you know, we have more data and more sophisticated models than we've ever had, leveraging AI, as a matter of fact. So informed by market analyses, demand elasticity, and like I said, being very targeted on how we took that pricing. We took some last year, fairly modestly. We have more, and that was mostly to our customers. Now, from a consumer-facing standpoint, we do have pricing going in, both in DTC and in wholesale in February. We'll be staying really close, but again, we have confidence as we head into 2026. And to your point on AUR versus units, we're expecting, like we saw this last year, we're expecting both to grow in the coming year. So is there any difference by geography in terms of the AUR versus units? I would imagine with the U.S., the price increases- Well, we don't necessarily guide at that level by geography, but the fact that we're expanding TAM, and we're really focused on driving higher units per transaction, which means that, you know, we are saying, "You're coming to buy a denim bottom or a non-denim bottom, there is now a great top available for you." That should drive units around the world. Yeah. Thanks, guys. Good luck. Thanks, Paul. Thanks. Thank you. Our next question comes from the line of Brooke Roach of Goldman Sachs. Your line is open, Brooke. Good afternoon, and thank you for taking my question. Harmit, Michelle, I was hoping we could drill down a little bit deeper into your growth assumptions for the Americas business in 2026. It sounds like you have some strong momentum in DTC. You're taking a little bit of price. You sound pretty positive on units, but the growth would suggest that things are a little bit more challenged there. I think you mentioned that US Wholesale is going to go through a bit of a rationalization this year. Can you help us understand what's happening there and where the opportunity for upside is in your Americas business this year? Thank you. Sure. So Brooke, overall, the US grew the, you know, in 2025 by 4%. DTC, you know, was the standout, you know, growing 6%, but wholesale also grew, you know, in the year. I think in the quarter, the, you know, US was flat. That was largely driven by, you know, as I mentioned in the call, two factors. One was we were lapping, you know, a high sale in 2024 from a large digital customer. That was just timing, and the capacity constraints on the DC. And if you, if you, you know, exclude that or you, you know, adjust for the impact of that, actually in the quarter, US and US Wholesale would, would have been, up low to mid-single digits. So US has had a great year. To your question about next year, you know, our expectation is the U.S. grows low- to mid-single-digit. Wholesale, globally, our view is, you know, flat to slightly up, and that's largely driven by the rationalization of some non-strategic accounts in the U.S. I mean, and as we, you know, focus on elevating the brand and, you know, taking this business to the next level. Our view on wholesale is that it's an important channel for us, in fact, a key channel, allows us to reach a lot of fans. And, you know, the broader assortment that Michelle referred to in her prepared remarks, et cetera, as they resonate with the consumer and DTC, we're able to take to wholesale. And I think that should drive growth over time. Thank you. Our next question comes from the line of Tom Nikic of Needham. Your line is open, Tom. Hey, everyone. Thanks for taking my question. I wanted to follow up on Brooke's question there. You know, recognizing that there's the headwind from some of the wholesale rationalization in the U.S., I'm just wondering what, you know, what the business looks like in your strategic wholesale accounts in the U.S., you know, how have sell-through rates been? You know, how, how are the order books shaking out, you know, et cetera? Just, you know, what does it look like among the strategic accounts in the U.S.? You bet. Tom, I'll take that one. Thanks for the question. You know, first, I think it's important to reiterate that we believe in the wholesale channel. You know, this is really an and story versus an or. Yes, DTC, we expect to continue to outperform, but, you know, over the long term, we expect wholesale to be, you know, slightly positive over time. You know, we've guided, you know, about flat for next year, and I think we're guiding that despite the fact that we are rationalizing in some non-strategic accounts, things like, I would say, the grocery channel that we show up in today in the U.S. So, I think it's a good thing for the brand, and again, we're driving to flat, even despite some of these account decisions. As it relates to our core strategies, I think the partnerships are really strong. These accounts are embracing denim lifestyle, tops, men's and women's. I mean, really, Levi's getting into the tops category in wholesale in a meaningful way is, is a new step forward for us. Women's, our accounts have really embraced our women's strategy, and you'll see that, in key accounts where they've expanded the footprint. In some cases, we've expanded doors. And then this head-to-toe denim lifestyle, getting into new categories like skirts, dresses, et cetera. So we, we really do see it as a complement, and I think one of the, the really great things is that in DTC, we can launch products first, and they get to see the results, and then we can take them to wholesale. And we've seen that model play out. One of our big hits of the year was the cinch baggy, and that took off both in DTC and in wholesale. As we look ahead, you know, around the world, for example, you know, we had positive growth in Europe, even in the quarter. The order books are positive for next year. Latin America, again, positive for the quarter. So net-net, I think it's a really good story as we've expanded our addressable market to expand these categories. And let's not forget, even in Q4, from a total business standpoint, we grew market share in men's, women's, and that youth target. So, I'll wrap it up by saying, you know, we're bullish across all channels, and there's so much opportunity for Levi's in our core denim bottoms business and head-to-toe lifestyle. Great to hear. Thanks very much, Michelle, and best of luck this year. Thank you. Thanks- Thanks, everyone, for joining the call, and we look forward to talking to you next quarter. Thank you. This concludes today's conference call. Please disconnect your lines at this time. Have a great day.