Romaine Bostick

So these are people that had never shopped at Coach.

But does that require creating more products, meaning a wider variety and a higher number of products to offer?

I do want to talk about marketing and particularly ad spending.

It's grown pretty significantly.

If you look at least at Tapestry, the parent company, you've gone from basically 5% of sales of ad spend to, I think, above 10% now.

The CFO of Tapestry talked about this on the most recent conference call, that that is a big part of the success in being able to attract Gen Z, and for that matter, Gen Alpha.

How much more do you think you need to spend?

Well, part of that fire, too, is some of the brand ambassadors you have, the celebrities, if you will, all from kind of different sort of tiers.

I am curious how much of that is organic, how much of that is basically just striking an agreement on paper with whoever that is to get them to, you know, support your brand.

A couple of them are universal.

On the issue of cost, I mean, have you ran into any issues as of late with regard to being able to source your leather, whether it's because of tariffs or the cattle shortage we hear about, or even just the idea that, you know, the people, the expertise and being able to tan leather is the number of people who can do that these days is a lot different than what it was when you guys were founded in 1941.

Talk a little bit more about China.

You have several stores there now.

I think on the last conference call, there was some discussion about the number of stores that you plan to open there in 2026.

Just outside of the whole thing.

Okay.

You already have a big footprint in China.

There was some discussion on the most recent earnings call about...

expanding even further into that market.

How many stores are you planning to add in 2026?