Company Expects 2026 Gross Profit Margin of 60.5%-61.0%
The company said, "On February 20, 2026, the Supreme Court invalidated the tariffs imposed by the administration under the International Emergency Economic Protection Act during 2025, and the administration announced its intention to impose new tariffs under different regulations. Our 2026 guidance includes the impact of the new tariffs announced by the administration. We continue to monitor tariff developments and assess their potential impact on our business as such changes could have a material impact on our results of operations. We expect gross profit margins for 2026 will be between 60.5% to 61.0%. Gross profit margins fluctuate quarter to quarter in relation to our promotional cadence. Our estimated gross profit margins for 2026 are based on anticipated product and freight costs and the impact on our LIFO reserve. Fixed and discretionary expenses within SG&A for the full year of 2026 are expected to be in the $307.0 to $309.0 million range. The increases over 2025 are primarily from store growth and inflation. Variable SG&A expenses for the full year of 2026 are anticipated to be in the 18.6% to 18.8% range. Our effective tax rate for 2026 is expected to be 26.0% excluding the impact of discrete items and any new tax legislation. Planned capital expenditures are approximately $33.5 million in 2026, an increase over 2025 due to our planned store growth for the year."
