Net sales reached $25.4 billion, up 6.7% from $23.8 billion in Q1 2025. Comparable sales increased 5.6%, reflecting a 4.4% rise in traffic and a 1.1% increase in average transaction amount. GAAP operating income was $1.1 billion, down 22.9% from the prior year, which was bolstered by a $593 million one-time legal settlement gain. Adjusted operating income rose 29.1% year-over-year when excluding the prior-year settlement gains. Diluted EPS was $1.71, compared to $2.27 in the prior-year period. Gross margin rate improved to 29.0% from 28.2% due to lower markdowns and growth in advertising revenue.