“Notably, in the quarter just ended, we faced the easiest prior year comparison of the year, and we'll be facing the hardest comparison in Q2, a nearly 2 percentage point difference as we begin lapping last year's launch of the Nintendo Switch 2.”

In context

“another small increase in the quarterly dividend later this year, allowing us to build on our record of annual increases while moving us closer to our long-term goal of a 40% payout ratio over time. And finally, regarding the third priority, we did not engage in any share repurchase activity during the first quarter. Looking ahead and assuming our business continues to perform well, we should have some capacity to repurchase shares later in the year with the magnitude and pace governed by our outlook and our goal to maintain our current middle A credit ratings. Now I want to turn to our expectations for the remainder of the year. As Michael said earlier, while we're very encouraged by our Q1 performance, we have a ton of work ahead of us, and we're maintaining a cautious outlook overall. Notably, in the quarter just ended, we faced the easiest prior year comparison of the year, and we'll be facing the hardest comparison in Q2, a nearly 2 percentage point difference as we begin lapping last year's launch of the Nintendo Switch 2. Furthermore, we believe this year's higher tax refunds were a source of upside to consumer spending in Q1 and that benefit will be feeding over the rest of the year. While consumers have proven to be resilient so far, sentiment has been declining recently, and we're keeping a close eye on their spending behavior. With that as context, I'll turn first to our annual guidance on the top line, where we've updated our expectations. For the full year, we are now planning for a net sales increase in a range centered around 4%. This outlook is 2 percentage points stronger than our prior range and reflects some moderation from our first quarter pace based on the reasons I outlined above. Turning to the bottom line. We previously provided an EPS range of $750 million to $850 million. Given the prof”