Operational results were impacted by softer trends in EMEA due to regional conflict and reduced tourist traffic, alongside a strategic decision to exit certain low-margin third-party sales channels. Management is executing a 'quality of sale' initiative, deliberately reducing promotional activity, third-party sales, and off-price shipments to strengthen long-term brand equity. Fiscal 2027 revenue guidance was revised to $3.4 billion, primarily reflecting a $50 million impact from Q2 inventory delays and $50 million from sustained macro softness in EMEA. Management expects Michael Kors to return to growth in the second half of fiscal 2027 as inventory levels normalize and the brand laps the heaviest periods of promotional reduction. The company is implementing a $70 million reduction in operating expenses to protect its $2.15 EPS outlook, focusing cuts on non-essential SG&A while preserving marketing and IT investments.