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Good morning, and welcome to this next session of the Goldman Sachs Global Consumer and Retail Conference. My name is Brooke Roach, and I cover the apparel, soft lines, and brand sector here at GS, and I'm thrilled to introduce our next session with Macy's. Here with me today is Tony Spring, Chairman and CEO, and Tom Edwards, COO and CFO. Welcome, Tony and Tom. Good morning. Thank you. Great to be here. Thank you for joining us. Tony, it's been over two years since launching the Bold New Chapter strategy. Where has Macy's made the most progress? What has changed versus your expectation when the strategy launched? And what opportunities are still in the earlier stages of execution? Thanks for the question. First of all, great to be with all of you. The Boulder chapter is working. So we're two and a half years into the strategy. When we began, we talked to 60,000 customers at Macy'S and really had a good understanding of what we needed to do to improve the quality of the business. It was make sure that we had compelling stores. So we closed the underproductive stores. We started our reimagined program. We started with 50 to make sure that we could get it right and learn, added another 75, added another 70, 75, the result two and a half years later, nine of 10 quarters, those reimagining stores have grown. We've now had five consecutive quarters of growth at Macy's, six quarters of beating our guidance on the street, two quarters of net sales growth. We obviously accelerated and differentiated further Bloomingdale's and Bloom Mercury. Both those brands continue to grow. We're on two straight quarters of double-digit growth at Bloomingdales and continuous growth at Bloom Mercury, and we're still in the early innings of our strategy and work, which to me is more opportunity for the brands and the business. We have the opportunity to continue to refine our assortments. We havethe opportunity to create a better experience, experience, both physically and digitally, for the customer. Since the start of the strategy, our net promoter score at the Macy's stores are up 10 full points. So the experience for the customer is significantly better than it was at the start. So I step back and say the bold new chapter was intended to grow the company. We're growing the company the bolder chapter was intended to improve the quality of the customer experience. The customer experience is far better today. The strategy was intended to accelerate the growth of our luxury brands. The luxury brands are growing and have unique positions in the marketplace. And the intent of the strategy was to improve our end-to-end operations. We're delivering packages faster, less expensively. We closed underproductive supply chain centers, opened a state-of-the-art center in China Grove. So all in all, a lot of progress, but a lot opportunity still in front of us. Great to hear. You mentioned the Reimagine 200 stores. Let's dive a little bit deeper into that. What changes have proven most impactful, and how much opportunity remains within those stores? And Tom, how should investors be thinking about the profitability trajectory of those stores relative to the broader fleet? So going back to the beginning of the Reimagined program, we picked the first 50 stores, and we now have three cohorts of stores. 50, 75, 75 are the reimagined 200. All cohorts are growing. And as I said, eight of nine quarters, we've had growth in those stores. But the reimagining program was like a recipe. It was the ingredients that have to kind of all be done at the same time. We needed better merchandising. We need a better merchandise presentation, storytelling. We wanted to improve the fitting room experience. We needed more colleagues in our store. We added people to handbags, people to shoes, people to work in the fitting room. We needed to make sure that our density on the floor was reflective of how we wanted the customer to shop within the stores. We need to make Sure that we had the right proportion of best better good. So we're a department store, we obviously want to have a range of price points, I would say more variety, less redundancy, but we had way too much of the same thing floor after floor, department after department. So when you asked me kind of to break apart what is the most important ingredient in the strategy. It's like asking me, which is my favorite child? I like all of it. And when it all works together, you get the kind of net promoter score improvement. You get the continuous sales improvement. You get response where the vendors in the vendor community want to work with us and want to be a part of these stores. So I think the Reimagine program is a great case in point for the future of what Macy's stores can be. 60% of our store base now, 75% of the store business, 75% percent of our Macy store business is in the reimagined program. And I'd add, when we look at the returns on investment, we're pleased first with the performance. And investment returns start from growth. The reimagining stores are growing, as Tony noted, for nine out of the last 10 quarters. And when we looked at our investment, it's capital light. So we're investing in people, we're invested in fitting room and making sure that the flow is correct, as well as events and marketing, and importantly, we've been learning and iterating as we've moved from the first 50 to the next 75 and adding up to 200, so we're getting more effective and more efficient in what we invest in and make sure it's appropriate for the local market and what that store stands for in that market. So, over that time, we have seen improvements, initial sales growth immediately, continued year over year for the different cohorts, and then profitability following that after the initial investments. So we're very pleased with the returns. We're looking to expand our reimagined fleet. As a matter of fact, we're testing or bringing forward some pilots into this year to get a head start into the following year for 2027, and look forward to continue to build it out as a key part of the strategy for the bold new chapter. Great to hear. Let's turn to Bloomingdale's, which has been a very successful area of the business recently. As you think about the outsized growth at the Bloomingdales banner, what proportion of this is due to your own execution versus a function of broader competitive dynamics? Where do you see the greatest opportunity ahead? And can you deliver this even if competitors begin to strengthen? First of all, I love Bloomingdalese. I grew up at Bloomingdale's, 35 years of my career at Bloommingdale's. It is a special brand. If we didn't own Bloomingdales, I'd want to buy it. It's that good. They've had double digit growth, two quarters, the last two quarters of 25 up over 9%. So really on four straight quarters of outstanding growth and performance. It starts first with the right strategy. So they have the right strategy. They cater to an advanced contemporary, to luxury consumer, obviously great merchandising skill in the company, great leadership, strong execution, and a long culture of growth and imagination and innovation. And then disruption in the marketplace certainly helps to fuel the growth that Bloomingdale's is having. But without the right leadership and strategy and structure and culture and execution, they wouldn't be able to capitalize on any level of disruption. Now, we just launched this past week our Hotel Bloomingdale's campaign for the fall season. That's a partnership with the Ritz-Carlton and lots of exclusive product. If you haven't been to 59th Street or online, it's a great experience. It's a lot of fun. I think the one thing that Bloomingdales brings to retail is a level of fun and imagination and curiosity that I think in that segment tends to be more serious. And so they distinctly stand out in their competitive set, the range of brands that they offer, the amount of discovery that's a part of the shopping experience, and they're hungry. So even with the level of growth that we've had at Bloomingdale's, we continue to see Bloomingdales as a growth engine for Macy's Inc. That's organic growth, more points of distribution, more Bloomy's stores, more Boomingdale the outlet stores, more opportunity digitally, more opportunity physically. And when I look back now at the Bloomingdale's growth, sometimes you could say, wow, you've had a good performance in one category of business. It's been broad-based. It has been in apparel. It is been in accessories. It has been men's. It been in home. It have been in physical retail. It has been digital retail. During the fashion season, during the gifting time period. It has been an off price. It had been in full price. Marketplace, licensed business and owned business. There isn't an element of their business right now that isn't growing, is very exciting to see when I take a step back and look at Bloomingdale's as a percent of the whole company or it's in the high teams that we recently provided more information on our nameplate breakouts and Bloomingdales is a really important and growing part of the business but we don't provide profitability it is nicely profitable and it's a key part of a bold new chapter algorithm for growing the top line and ultimately growing the bottom line that's great to hear let's discuss one of the debates that's coming out of earnings, which is traffic, conversion, and AUR. You've discussed healthy traffic trends and AUР growth, but conversion trends have been somewhat muted. What are you seeing in conversion today, and what initiatives do you believe can drive further improvement from here? Let me take it first, then I'll hand it over to Tom. We'll always talk over each other, so it's a sign of a healthy marriage. First, you have to step back and say the golden equation, right? We all know it in retail. Units, AUR, obviously conversion, and then whatever returns or cancellations come out. So it's hard sometimes to get all elements of the equation to go up at the same time, and there tends to be a, you know, reverse impact of as AUR goes up, conversion tends to go down. And it makes sense. The more expensive the purchase, the more consideration that may go into it. So I'd say we're on a learning journey on our golden equation. And we have the benefit of having Bloomingdale's and Blue Mercury, which has a slightly lower conversion rate than Macy's does and has a higher AUR. We're also trying to become better students of the business. So you would say conversion should always be high. And then I'd Say, except if you're advertising prom dresses in January. And you want to highlight prom dresses in January, so people buy prom dresses in March and April. And you probably want to have a very high conversion rate on something that you're trying to sell through in a day or two. And your expectation is very different for that conversion than maybe for the more deliberate purchase, big ticket, fine jewelry, things that maybe are going to require a few visits for you to inspect and understand better. So we're pleased with our level of traffic. Traffic in aggregate is growing. It's flat in the stores. We're seeing the conversion rate be the single biggest challenge that we have as the AUR goes up, but we feel like we understand exactly how to work with the client and understand the differences that it's describing in conversion. And ultimately, we can deliver a better growth pattern because the customer is happier with their purchases. And I'd add, when we look at AUR, it is up because of really the foundations of our business model. We're adding better brands, the best brands, and laddering up and improving the customer experience. So it's not as much a pricing discussion as a brand matrix and fashion authority discussion. The other piece I just emphasized that Tony talked about is that this is all part of our healthy model. The higher AOR driven by our base strategy, slightly lower expected conversion, but a higher basket size. And we've been seeing this dynamic over a year. So it is not a new phenomenon. It is one from the initial start of it. And the last point I'd make is around AUR. That higher AUR is not a direct translation to higher gross margin. It supports it over the long term as it drives sell-throughs and engagement, but it also comes with some higher costs. So as we move through the business, we look to drive top-line growth, drive overall margin dollars along with it, and manage our overall system moving forward. Let's round out the discussion on AUR with a question that we're asking all companies at our conference, which is on AURI. Do you expect your prices in AUR to be higher, lower, or the same in the second half of this year versus the rate delivered in the first half? The AUR has grown really since the inception of our bold new chapter strategy at all three brands. It's, again, as Tom said, a reflection of the quality of the assortment. I think the 9% growth we had in the second quarter will start to moderate as we kind of come around the back half of the year and up against the impact of some of the tariff inflation that's in pricing. But as a department store, we have the benefit of being able to have best, better, good and be able to be appropriately sharp on pricing and at the same time make sure that we have a wide aperture of offerings for the consumer because someone's indulgence might be someone else's desire to save. Very clear. Let's shift to the credit business. How are you thinking about the near-term drivers and long-term growth opportunity within that credit and loyalty ecosystem? We feel good about our credit business, but it needs to be put in a broader context. It's part of the Macy's overall ecosystem. We serve over 40 million customers. We have visibility to over 70% of transactions for those customers. They are in our loyalty program. The majority in our loyalty program also have a credit card. So it is an intimate and integral part of the overall system, and we see it growing with the business. We've seen very strong performance over the past year and then into Q1 and Q2 continued growth, and it's really a reflection of a couple different things. The credit portfolio health within the credit card is strong. We have low in net credit losses, and we've seen that improve even in the current economic environment. That was a driver of Q1 results. And then we have just a base engagement with our stores and with digital, bringing on new accounts and encouraging usage as part of the overall system. So as we look forward, we look to grow the credit business as part of the overhaul growth of the company because it's connected directly. Rounding out some of the discussion on the strategy, let's talk a little bit about your stores. You've made substantial progress repositioning that store fleet through closures, reimagined investments, and selective growth initiatives. How are you thinking about the long-term role of stores within the Macy's ecosystem, and what does the store base look like two to three years from now? We've talked about at the beginning of the strategy approximate 350 go-forward stores would make sense for the Macey's brand, And I think we're sticking with that approximate number. We've closed about 85 stores for the first two years of the strategy. Our closure announcements happened at the end of the fiscal year. The improvement in the store is the improvement in the business. So I think as we all kind of came out of that post-pandemic period, we realized the importance again of omni-channel, of the customer not being one channel or another channel. People will choose what they think is appropriate for their life, in that moment. And there are times when you're going to want to be in stores and you're going to meet with your girlfriends and have lunch and shop the store. There are other times you need something quickly and you are going to use same day delivery and you will go on the app and you'll buy it and hopefully we'll get it to you in time. But that omni-customer is so valuable to us that we're highly focused on people that are both physically and digitally engaged, that we understand their life patterns and are able to better, through the use of information, browse behavior, better support their shopping experience at all three of our brands. Let's shift to some topical discussion questions here. Last week, you reported two key results, and you noted that consumers remain resilient and engaged. What are you seeing in the consumer and promotional environment today? How is back-to-school trending, and how do you expect the backdrop to evolve throughout through the second half of 2026 and maybe within this question we can ask a question that we're asking all companies which is do you expect the health of the consumer to be better the same or worse in the back half than the front half and similar do you expect a consumer to be similar better or worse um in 27 versus 26 never good at multiple choice question so I would simply say the consumer remains resilient I never thought I would use that word as often as I've used that word they're definitely choice fall when you say the consumer what consumer you're talking about our most loyal and frequent consumer is highly engaged to shopping as you would expect with great consistency and passion I said the interest really remains around fashion and newness the good news is there's a lot new fashion for fall everybody needs to go out and start shopping because if you don't own leather if you don t own suede if you don't own a structured bag, if you don't own animal, if you don�t have something, you know, there's just I think newness across the entire store. The variation I think within boots is fun. So we're excited about the fall season. That being said, it's going to be choppy. I think there is no straight line unless you can tell me there won't be an inflation increase in the remainder of the year. We won't have a rate increase tomorrow. We won't have oil prices where they are today. So there's way too much uncertainty, macroeconomic, geopolitical, where there are things we can't control. Our team, though, is solely focused on the quality of our assortment, taking care of the customer, making sure we're determined to try to continue to bring in newness, let the inventory continue to flow, and make sure that as the customer votes on product, which they do every single day, we take the appropriate steps, whether it's marking down the things that don't work or reordering the things that do work. I love being a department store in this environment. We are able to hedge against everything. If the structure of business is soft, we can buy into the casual business. If a casual business is off, we could buy into the suiting business. The suiting businesses is soft. We can lean into the men's business. We've come through a cycle of where the big-ticket business, based on interest rates, has been a little softer. All of a sudden, business has kind of gotten a little bit better. We went back to pre-tariff pricing. So we're seeing a customer lean right back in and buy furniture, mattresses, other accessories for the home. So this is a great business environment where you don't have a straight line, where you do not have a clear understanding of what categories are going to be strong and what categories are going be a little softer. Our multi-category business is well positioned for an environment like this. In Idaho, we are entering the fall with a very good inventory position. In Q2, we're up to an 8% in line with our sales growth. And as Tony noted, we're coming into fall with newness and fashion and really ready to deliver for the customer and be there for them in their more resilient mode. Tony, you mentioned several drivers of fall fashion. And on the call, you also talked about a couple of other structural drivers of fashion, whether that's GLP-1s or just fashion shifts that continue to be a cycle. Do you think that those tailwinds are going to build as we move into 2027, or do you think that this is a fall 26 phenomenon? I think it builds. Look at how well-dressed the room is. I mean, we have kind of all gone back to the office. People realize they couldn't wear their sweats and their comfy clothes to the office three, four, five days a week, whatever days a year. They're in the office a week. They're wearing a suit or wearing a dress. Then you add to the kind of dress-up environment component, and I don't care whether you put a blazer with a pair of jeans or you're wearing suits separate or you'RE wearing a full suit or youRE wearing a dress. It's an opportunity for a multi-category business that really owns the classification categories to be well positioned. Now, you throw on top of that the beginning early impact of GLP-1s. And don't ask me the specifics because I can't tell you. All I can see is that the plus size business is very soft and that most other areas of apparel are healthy. And I think you're seeing people, as they go through a period of time on GLP-1s, losing enough weight, what happens? People want to get a new wardrobe. And you don't get a New Wardrobe just for the summer. Then you need a New wardrobe for the fall. Then you needed a New wardrobes for the winter. Then you'd need a new coat. Then you'll need a swimsuit. So we see this as a, we're on the early cycle of GLP ones, it's only affecting so far the top tier, maybe the coast and Miami. So the opportunity is meaningful, I think, as we go forward. Only the top tier. So you're seeing more of that in Bloomingdale's than it may seem? We're seeing mehr of it in Bloommingdale's. We're certainly seeing mehrof it in our more expensive components of the business, the higher-ticket AUR products. Again, we've got great anecdotal stories of women kind of coming in, having lost 30, 40, 50 pounds, and treating themselves. And then it's very emotional, you know, going through an experience like that where they maybe have never been at that weight in their life, and they're worried about, can I do this? Is this appropriate to buy this much for myself? So I love our colleagues and their interest in, and again, it's why we feel so strongly about people and the connection between humanity and technology. This is not just an AI agent that's going to help you after you've gone through a life-changing experience like this. This is also the quality of our colleagues going hand-in-hand with our customers and making sure they feel comfortable with their purchases. If they get something wrong, we'll take it back, but making sure that they feel great about what they've walked out with. Very clear. Tony, you just described a lot of opportunities that are driving the business into the back half, but as we look at your second half outlook, you're starting to come up against more difficult comparisons, and you've also guided a little bit more conservatively than the trend results that you've recently put up. How are you thinking about the sustainability of that recent very strong momentum that you put up as comparisons become more challenging? What gives you confidence that can drive growth? And, Tom, is there anything in the guide that we should know? So I guess probably my middle name now is prudent. You know, prudent meaning sensible, thoughtful, well-informed. We're not going to get ahead of our skis. You made the right comment, Brooke. We're up against our strongest comp in the third quarter last year, 3.2%, with all the brands growing. Guide is not a ceiling, so we have the opportunity to do better. The quarter is unfolding as we expected. I already talked about the fact that we feel really good about our inventory position. We feel good about the fall trends. I think both brands, Macy's launched the American Designer campaign with three of the kind of iconic guard between Donna Karan and Michael Kors and Tommy Hilfiger, and then three new designers in our partnership with the CFDA and FIT, and just seeing what the customer's reaction has been is exciting. So we look at it as being, yes, we're going to always guide thoughtfully and make sure that it's within our team's ability to deliver that and beyond. And at the same time, we are going to just stay focused on satisfying the customer. And with regard to the guide, I'd point out a couple different things. The first is we're pleased to raise it. So for the full year, we raised both the top line and the bottom line, and this is coming off of a Q1 where we raised the topline and the bottom line as well. So coming into the year, had a DPS of 190 to 210, and we're now at 215 to 235. So pleased that we're seeing continued momentum, which gives us the confidence to do that. And then within that, when we look at the back half, Our back half guide is in line on an underlying basis with what we thought when we talked to you last quarter. So our outlook is unchanged. We just had a better Q2, and we're looking at the same compares as we head into the back half. So, again, competent in the business. I said to Tom after earnings, I said, did we raise the top line? Did we raisethe bottom line? Did we buy back stock? Did we rise our dividend? Yes was the answer to all those questions. But we must not have conveyed it as powerfully as he just did. Very clear, very clear. Tom, let's dive a little bit deeper into the gross margin opportunity. You've discussed opportunities around assortment, refinement, inventory, productivity, and reg price sell-through. Which of these initiatives represents the largest remaining opportunity to improve gross margin, and which is more near-in versus longer-dated? Sure, I'd be happy to help with that. In Q2, our underlying gross margin increased about 10 basis points, and it was driven by assortment and all the items you mentioned. As we look at the back half of the year, we expect to see the base business continuing to perform, and those underlying trends continue with our assortments, our reimagined stores, Bloomingdale's performance, all supporting our gross margin. We also expect to See Supply Chain Savings, which will be benefiting us more in Q4 than Q3. So that's allowing us our guide to raise our gross margin for the year. So we have an always-on savings approach, and we're seeing the benefits of that. When we look longer term, there are really many things. First is the assortment. We can expand private brand. We have supply chain initiatives as well as other savings opportunities through the business. But we're really looking right now to grow gross margin in the back half and then grow it over time along with the top line. And I'd also point out, while it's not gross margin on SG&A, we levered SG&E in the second quarter with sales growth. So with a low single-digit comp, we're able to lever the P&L. We saw that in Q1 as well and look forward to continuing to drive results, top line and bottom line, to drive long-term profitable growth. One of the other updates that we heard from you in 2Q was your decision to reinvest the tariff refunds. And Tony, you talked about reinvesting some of those into brand marketing, reimagine expansion, value investments, including some price, and other bold new chapter initiatives. Do you expect these investments to have a comp uplift in the back half of this year or early next? And then Tom, maybe piggybacking off of that, can you unpack in more detail how we should be thinking about cycling these on a net basis for margins and for sales into 2027. So just to take a step back, when we got the tariff refunds, Tom and I really tried to look at 25 and say, what were the changes that we made in 25 based on the impact of tariffs? And they were a lot of the things that we chose to reinvest in now in the fall of 26. So we had taken down some of the Macy's brand marketing. We had not planned to do as many pilots for 27 on the next series of reimagined stores. We have obviously taken up some of our pricings. We wanted to get sharper on certain categories. I think we mentioned furniture and fine jewelry as being two of the categories. And then, obviously, we had reduced our earnings per share and so we wanted to give back a small portion to the investment community. So what I found was a balanced capital allocation approach to a one-time benefit from tariffs that is anniversaryable. And that, I think, is what we are challenged with, to make sure we're investing for the long term, to making sure that we're taking care of all of our stakeholders, to making sure we are really thinking about the future of this company beyond any one- time bogey or benefit. And I'd emphasize that. It's a long-term focus. The single largest item is investment in top-of-the-funnel marketing to support the Macy's brand, and that has a long-term impact. We're piloting reimagined stores, so we get a faster start to 2027. So it's not so much a lapping, but just continuing and building on the momentum of the business. And where we have invested in price, I would say that there's no outsized investment in any one area, nor is it the largest. So we don't feel like with all the levers we have to drive the top line that that's something that is a meaningful lapping item. But it does sound like some of those price investments in big ticket and furniture are starting to make a difference in how your consumer is perceiving the brand. Yeah, I think those places where the tariff impact was greatest are having the best response to any pricing adjustments. And those two areas were ones that both in big ticket because of the tariffs, and I think, frankly, in jewelry because ofthe cost of gold right now, and also the balance of mind versus lab-grown diamonds, we really want to make sure that we were sharp on pricing. Those were two areas where we saw the most sensitivity from the consumer. But, again, it's not rolling back prices across the board. We really have a clear strategy about best, better, good, range of prices in all categories between our backstage and our clearance business, our off-price business at Bloomingdale's, and our full-prICE business, we should have enough optionality for the consumer to choose from without having to create one-time events. Very clear. That's great. Another question on margins that we're asking all companies at our conference this year is whether or not you expect to see more operating margin tailwinds or headwinds in 2027 versus 2026, and can you contextualize what those large drivers are? I'd say for us, our controllable items are really our best better assortments and moving those forward, building out private brands, and then the savings components, which we have a very clear line of sight to. So I think those are both our tailwinds and things that we have seen impacting and supporting the business going forward. And I just emphasize that the Bold New Chapter strategy is drive the top line and let it flow through the P&L to drive earnings growth. We look forward to continuing to deliver that. Very clear. Another driver of margins that we are debating is AI. And one question that we have for you that we're asking all companies is, do you expect a significant increase in efficiency as a result of AI in 27 versus 26? and what part of the business changes the most as a result of AI over the next year? Sure. We look at AI much more broadly than just efficiency. We look it as an integral part of helping the Bold New Chapter and accelerating it, and it's driving revenue, it's improving our customer experience, and it'S increasing our organizational effectiveness, so how we are working together and how we're delivering across the enterprise. We saw that in some of the examples noted in this quarter's prepared remarks and discussions where we've rolled out an AI conversational assistant to Macy's, first online, then the stores, then to Bloomingdale's. Our customer is more engaged when they use it and buys more. That is the win for all of us. We're also using AI to help make better decisions in how we allocate inventory within our supply chain, and we're levering it in other areas as well. but it is an assistant. It is not the be-all and end-all. And I'd also note that we're very careful from an ROI perspective to make sure that there are returns for these projects because there is a cost that comes with AI. So we're balancing it carefully. There's also governance. And I think there's the balance between making sure we have a number of pilots out there that don't move beyond proof of concept and then strategic big bets. And Tom and the team have done a great job of making sure that we have both. Great to hear. Let's put all this together and talk about EBITDA margins. As you think about the medium-term EBITda margin range of the business, what is that and what are the key levers to get there? What levers do you also have to protect against a very dynamic macro backdrop where we are seeing some volatility in things like freight and fuel? Sure. Well, this year we've raised our EBITD as part of our guidance, And we have support over the longer term in both the gross margin, where we talked about assortment, private brands, our supply chain savings, and just all the initiatives in stores and online that are helping support it. And in SG&A, always on savings, which has delivered results in the past and will continue to work on. We've also shown with a lower, low single-digit top line that we can lever the P&L from an SG&E perspective. So our first goal is drive the top line. There's no growth without top-line sales growth, and then we'll work to flow it through to the bottom line and ultimately look at our margin structure going forward. Very clear. Tony, we're about out of time. Any closing comments or thoughts that you'd like to share with the audience? Well, we'RE two and a half years into our strategy. As Tom mentioned, we just came off of earnings. We were raised top line and bottom line. We've got record customer service scores. I think back to the beginning of the strategy, and if we didn't have tariffs, if we didn't Have inflation, if We didn't Have a fuel crisis, if We didn' Have the geopolitical and macroeconomic, where would we be? What would I do differently? Well, I would reimagine Macy's stores. I'd close underproductive stores. I'd get rid of unproductive supply chain assets. I'd double down on Bloomingdale's and Blue Mercury. I'd make sure our end-to-end operations were effective. I'd speed the delivery to the customer. I'd invest in physical and digital. I'd put more people into the stores. I'd makes sure that our assortments were modern and compelling and tasty. I would make sure that we had the right balance of not undershooting the customer in any one category, that we believe that the customer at both Macy's, Bloomingdale's, and Blue Mercury has the capacity to spend. So we're two and a half years in, and I'm really proud of the progress we've made. I think we have clear signs with eight of nine quarters of growth in the reimagined stores, double-digit growth at Bloomingdale's, multiple quarters of grow at Blue Mercury. We're on the right path. The key right now is to make sure that we follow our strategy, we stay focused on execution, We pay attention to the macro environment so we don't trip on our way to future success. But we really commit ourselves to delivering more for the consumer. Great to hear. Thank you, Tony. Thank you. Thank you so much, Tom. Thank you for all. Thank you very much. Thank you all.