Competitive PressureA heightened level of competition within the industry creates promotional risk for F'25 which may offset gross margin benefits.
Financial Guidance RiskThere could be risk to F'25 guidance given that the macro environment remains uncertain with low-income consumer spending particularly pressured.
Tariff ImpactKey risks include tariff impact (China represents 10% of sourcing), which may result in price increases, as well as low-end consumer pressure at SBS and stylists buying closer to need at BSG.