This caught many retailers off guard, including Kohl’s Co. (NYSE: KSS), which mistakenly decided to double down on casual wear, and Under Armour Inc. (NYSE: UAA), which took a (650 bps) margin hit. A strong US dollar had a (7%) headwind on sales, but inflationary pressures couldn't dent the robust demand that led to continued margin expansion. Coty’s pricing execution and improvements in trade spend were strong drivers enabling the company to expand margins by 70 bps YoY.