Retail Tariff Refund & Earnings Impact Model

Financial Levers

Quarterly Net Sales ($M) $1,134M

Merchandise Base COGS ($M) $430M

Operating Expenses ($M) $520M

Lump-Sum Tariff Refund ($M) $100M

Diluted Share Count (M) 51.2M

Effective Tax Rate (%) 25.0%

Regional Origin Sourcing Mix

China (Sec 301 Target) 35%

Vietnam & SE Asia 40%

South Asia / India 15%

Americas / Nearshore 10%

Unadj. Gross Margin

62.08%

Core merchandise only

Adjusted Gross Margin
70.89%
With $100M duty credit

Norm. Operating Margin

16.23%

Ex-customs windfall

Reported Op. Margin
25.04%
+8.81% non-recurring boost

EPS Boost / Share
$1.46
Net of 25% tax rate

Line Item ($M)	Normalized (Core)	Windfall Impact	Reported (As Stated)
Net Sales	$1,134.0M	—	$1,134.0M
Merchandise COGS	($430.0M)	+$100.0M	($330.0M)
Gross Profit (Margin %)	$704.0M (62.08%)	+$100.0M	$804.0M (70.89%)
Operating Expenses (SG&A)	($520.0M)	—	($520.0M)
Operating Income (EBIT)	$184.0M (16.23%)	+$100.0M	$284.0M (25.04%)
Taxes Provision	($46.0M)	($25.0M)	($71.0M)
Net Income	$138.0M	+$75.0M	$213.0M
Diluted EPS	$2.70	+$1.46	$4.16