“In support of the strategic decisions that Michael and Cara outlined earlier and our goal to move our business back to sustainable growth, we're planning to reinvest $1 billion into our P&L this year.”

In context

“s and EPS were down a small amount as we recognized about $90 million of nonrecurring business transformation costs, primarily driven by lease termination on excess office space. In addition to encouraging profit performance, we also saw some encouraging early signs of top line progress in Q4. More specifically, following a soft start in November, sales trends accelerated meaningfully in December and January. And as we mentioned in this morning's press release, top line performance accelerated further in February, resulting in very healthy top line growth in the first month of this new fiscal year. Before I move on to our guidance, I want to provide some context based on the work we've been doing to refine our strategy and how that work has shaped the investments we're planning this year. In support of the strategic decisions that Michael and Cara outlined earlier and our goal to move our business back to sustainable growth, we're planning to reinvest $1 billion into our P&L this year. This includes hundreds of millions of dollars to support additional store labor and training, along with expenses related to a planned increase in new store openings, growth in remodel projects and our most ambitious plan for in-store merchandising transitions in more than a decade. In addition, we're stepping up our spending on brand marketing and technology, including AI. I want to be clear, these investments are not onetime costs, but reflect an ongoing step-up in spending levels as we're investing to win and restore reliable profitable growth to our business. While $1 billion is a major investment for our business, we're funding it by leveraging a number of beneficial factors, most notably from the annualization of about $0.5 billion in onetime tariff and inventory adjustment costs in”