a.k.a. Brands

Reported gross margin improved to 63.1% in Q1 2026 and 61.1% in Q2 2026 as mix and tariff changes helped. Still, the business competes against very low-price alternatives, and average order value has edged down over time.

Select labels can command full-price sell-through on trend-right items, but broad-based pricing power is limited and offset by marketing intensity and promotions. Latent pricing power is modest outside of exclusive drops.