The company’s updated outlook reflects cooling expectations for the remainder of the year. Net sales are now anticipated to land between $4.765 billion and $4.835 billion, falling short of analyst projections of $4.85 billion. Comparable sales are projected to decline by 2% to 3.5%, a steeper drop than the previous flat-to-4% contraction estimate. Investors reacted sharply to the news, sending shares down 4.5% to $48.10 in after-hours trading.

Despite the outlook revision, the company outperformed third-quarter expectations. Profit reached $64.8 million, or 61 cents per share, rising from $57.3 million in the same period last year and beating the 57-cent estimate from FactSet analysts. Net sales rose to $1.21 billion, though this marginally missed the $1.22 billion target. Alongside the financial results, the company announced a leadership shift: Thomas Taylor is transitioning to the role of board chair, finalizing a succession plan that saw Brad Paulsen take the CEO reins last December. Additionally, Lauren Taylor Wolfe of Impactive Capital will join the board as an independent director in February.