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Harmit Singh, Chief Financial and Growth Officer, explained that Europe's Q3 growth was 3%, accelerating to double-digits post-weather impact, with strong performance in key markets like the UK, Germany, and Italy. He noted that pre-books for spring are up mid-single digits. For Q4 gross margin, Singh attributed the expected 100 basis point contraction to the 53rd week impact (20 bps) and an incremental tariff headwind (80 bps after mitigation), emphasizing that without tariffs, gross margins would have increased.

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Harmit Singh, Chief Financial and Growth Officer, explained that Europe grew 3% in Q3, accelerating to double-digit growth post-weather impacts, with strong performance in key markets like the U.K., Germany, and Italy. He noted mid-single-digit pre-books for spring and an 80 basis point increase in operating margins. For Q4 gross margin, he detailed impacts from the 53rd week (4 points revenue, 20 basis points GM) and incremental tariffs (80 basis points mitigated GM headwind, $0.03 EPS impact), attributing the overall moderation to prudent macro conservatism.

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EVP & CFO Harmit Singh stated that the company is being prudent and judicious in its wholesale planning as it's a channel they don't directly control. He reiterated that order books remain positive and the channel should be flat to positive for the year, with Q3 likely being stronger than Q4 due to holiday season fill-ins. He also suggested looking at growth on a two-year stack basis for a clearer picture of momentum.

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CEO Michelle Gass stated the situation is fluid and a task force is assessing mitigation levers, including accelerating cost structure improvements, collaborating with vendors and customers, and implementing surgical price increases. She noted the brand's strength provides pricing power. CFO Harmit Singh provided specific sourcing figures for the U.S.: approximately 1% from China, 5% from Mexico, and mid-to-high single digits from Vietnam.

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CFO Harmit Singh clarified that sourcing from Mexico into the U.S. is about 5% and from China is less than 1%, making the tariff risk manageable. He explained that the 21% increase in 2024 distribution costs was roughly half due to an accounting reclassification and half from the parallel costs of transitioning distribution centers. He expects normalized distribution expense growth of 6-7% in 2025, with savings from the DC transition beginning in late 2025.

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CEO Michelle Gass confirmed Europe's strength, with wholesale up 4%, and noted the positive trend is expected to continue, supported by a positive Q4 prebook. CFO Harmit Singh declined to quantify the revenue shift from Mexico, explaining that the company is still actively working with its partner to resolve the technology issues from a cybersecurity breach and that it will take more time to normalize.

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CEO Rob Katz stated that his primary focus is currently on overall visitation and total lift revenue. He acknowledged that while there might be some pullback from rapid pass growth, opportunities like Epic Friend Tickets are designed to convert new visits from all sources into pass holders, as passes offer the best value. He affirmed the commitment to driving pass penetration but emphasized that it starts with overall visitation growth. Regarding pass sales trends, Katz explained that the guidance reflects the company's best assessment based on current trends, forecasting models, and the understanding that the final selling periods are more heavily weighted towards new pass holders, which introduces some inherent uncertainty.

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CEO Rob Katz stated that his primary focus is on overall visitation to resorts and total lift revenue. He acknowledged some expected pullback after rapid growth but sees continued opportunities to convert lift ticket guests, such as those using Epic Friend Tickets, into pass holders, as passes offer the best value. Regarding the consistency of pass sales trends, Mr. Katz explained that the company's estimate incorporates current trends, shifts towards new pass holders in later deadlines, and forecasting, providing their best assessment based on available data.

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CEO Rob Katz stated that his primary focus is on overall visitation and total lift revenue, acknowledging a potential pullback in pass growth after rapid expansion. He reiterated the goal to convert new visits from all sources into pass holders, as passes offer the best value. Regarding pass sales trends, Rob Katz explained that the company's estimates for future consistency are based on current trends, forecasting models, and considering the shift towards new pass holders in the final selling period, while acknowledging inherent uncertainties.

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CEO Rob Katz stated his primary focus is on overall visitation and lift revenue. He acknowledged a potential pullback in pass growth but emphasized continued opportunities to convert lift ticket guests to passes, as passes offer the best value. The goal remains to drive pass penetration, starting with overall visitation growth. Regarding pass sales trends, Katz explained that estimates incorporate current trends, shifts (more new than renew in later deadlines), and forecasting, providing the company's best assessment despite inherent uncertainties in the selling season.

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CFO Angela Korch attributed the 17.5% increase in non-pass lift revenue primarily to improved conditions and strong response at Eastern U.S. resorts. CEO Kirsten Lynch explained that while destination guest ancillary spending is strong, the overall results are impacted by a higher mix of local visitors, which particularly affects the competitive rental business as locals are more likely to own gear.

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CEO Kirsten Lynch stated that the majority of renewing pass holders bought the same pass as last year, with no unusual trade-down activity. She noted Epic Day Pass growth is positive as it attracts new guests who can be upgraded over time. CFO Angela Korch explained the transformation plan's savings ($27M this year, growing to $67M next year) will primarily appear in labor costs within G&A and mountain/lodging operations, with updates on milestones to be provided as they are achieved.

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CEO Kirsten Lynch described the Australian weather as the "worst season in decades," following a record season the prior year. She differentiated it from North America by noting Australia is more dependent on local visitation with fewer alternative resort options. CFO Angela Korch addressed capital allocation, stating the dividend is a primary return method based on free cash flow generation, not a specific payout ratio, and that the balance sheet remains strong for investments, M&A, and opportunistic share repurchases.

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CFO Andrew Page confirmed that winter sports equipment is expected to grow in the low single digits. He stated the segment's 20% implied H2 growth is expected to be evenly paced between Q3 and Q4. On margins, he noted the Q2 improvement was driven by gross margin and suggested that long-term, the segment's operating margin could approach the mid-teens, stating 'you're in the ZIP code' and promising more detail at the upcoming Investor Day.

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CFO Andrew Page did not provide a specific long-term growth target for Salomon but emphasized the large market opportunity and the significant margin accretion seen in the Outdoor Performance segment. Regarding tariffs, he clarified that the current guidance assumes a negligible impact from existing tariffs due to mitigation, and that the previously mentioned 100 basis point drag was a hypothetical based on a much higher tariff scenario.

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CFO Andrew Page did not provide a specific long-term growth target for Salomon but emphasized the significant market opportunity and the positive margin impact from its soft goods growth. He clarified that the current guidance assumes negligible tariff impact after mitigation, and the previously mentioned 100 basis point drag was a hypothetical for a much higher tariff scenario.

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CFO Andrew Page and CEO Jie Zheng responded, confirming expectations for continued positive growth in all regions, with Zheng highlighting a plan to accelerate Salomon's soft goods business in EMEA. Page stated that paying down the remaining senior secured notes is a high-return use of cash and reiterated the goal of lowering the effective tax rate from the low 30s toward the statutory rate of approximately 27%.

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CEO Jie Zheng praised the new Salomon CEO's experience and highlighted a four-pillar strategy focused on footwear, Europe, North America, and digital. CFO Andrew Page addressed the tax rate, explaining that the guided ~37% for 2025 is a significant improvement from the ~50% exit rate in H2 2024. He expects the rate to continue declining toward a more normalized level in the coming years.

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Mehdi Bouyakhf, President of EMEA, clarified that the 13% growth was strong but constrained by limited production capacity, not a lack of demand. He noted strong sell-through and expects a return to mid-high teens growth in Q4. CFO Ivica Krolo added that pricing and better cost absorption are driving gross margin expansion, and the company is getting closer to its 60% target for the year.

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EMEA President Nico Bouyakhf clarified that while the open-toe sandal business is growing at a strong double-digit rate, the closed-toe category is growing twice as fast. He emphasized that this growth is diversified beyond the Boston, with non-Boston clogs and laced-up shoes growing at a similar strong pace, significantly outgrowing the clog business.

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CFO Ivica Krolo expressed excitement about the brand's legacy and substantial growth runway, identifying the primary challenge as scaling systems and infrastructure to keep pace with rapid growth. VP, Global Finance Alexander Hoff clarified that while full-year growth will be balanced between channels, the outperformance of B2B in Q1 means D2C is expected to grow stronger in the cumulative upcoming quarters.

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Niko Weake, President of EMEA, stated the company aims to increase its store fleet by 50% in fiscal 2025. CSO Klaus Baumann noted that in China, where the brand has a long history, they are accelerating growth and plan to double their store fleet in the next year. Niko Weake added that the closed-toe category, currently about one-third of the business, will continue to grow its share at a rate more than double that of sandals.

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EVP, CFO & Global Head of Operations, Joe Alkire, estimated the Helly Hansen Q3 revenue contribution to be in the range of $175 million. He stated that the company did not see a meaningful timing shift of orders into Q2, as sales trends remained strong into July. Regarding FX, Alkire explained that the net impact is not material, as positive translation effects from Helly Hansen are offset by negative transaction effects related to the Mexican peso, though currency was a partial driver of the raised Helly outlook.

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CEO Scott Baxter cited product momentum, brand strength, and the Helly acquisition as drivers of confidence. CFO Joseph Alkire noted H2 growth is supported by high-visibility items like new programs and the 53rd week, which has a minimal full-year impact. Alkire explicitly warned against extrapolating the Q2 EPS loss for Helly, stating it reflects a historically slow quarter and timing noise from the deal's closing.

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CFO Joseph Alkire attributed the year-to-date gross margin adjustments to the company's ongoing supply chain transition. Regarding Project Jeanius, he deferred providing specific cost figures until the February call but stated that the financial returns from the program are expected to be a multiple of the one-time costs required for its implementation.

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CEO Christopher Hufnagel emphasized Saucony's broad-based momentum and long-term potential without commenting on specific future orders. For Merrell, he highlighted its consistent market share gains and product innovation. CFO Taryn Miller reiterated the capital allocation priorities of investing in the business and paying down debt, noting that bank-defined leverage was down to 2.9x from 3.9x a year ago.

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CEO Christopher Hufnagel confirmed that while the order book and brand momentum remain strong, the level of uncertainty around trade policy and consumer sentiment necessitated withdrawing full-year guidance. CFO Taryn Miller clarified the $30 million tariff impact is an unmitigated gross margin effect and confirmed no new revenue shifts occurred beyond what was previously disclosed.

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CEO Christopher Hufnagel confirmed that momentum in the business has not materially changed and the order book supports the high end of their previous outlook, but macro uncertainty led to withdrawing full-year guidance. CFO Taryn Miller clarified there were no new revenue shifts for the Work Group and stated the $30 million tariff impact is a pre-mitigation estimate on gross margin profit, declining to provide quarterly phasing.

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CFO Taryn Miller explained it was too early to set a date for the mid-teen profit margin goal but highlighted the 440 basis point improvement over two years. CEO Chris Hufnagel noted 2025 includes a step-up in brand investment. Miller quantified the Work Group revenue shift at approximately $7 million, attributed gross margin gains to cost savings and full-price selling, and guided 2025 interest expense to $25-$30 million.

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CEO Christopher Hufnagel confirmed that a product and distribution reset for Merrell and Saucony, including new leadership and thoughtful expansion into new accounts, is driving momentum for 2025. He also noted that sourcing from China is now in the mid-teens, down from over 40%. CFO Taryn Miller added that while Q4 operating margins are approaching 9%, she would not guide for 2025 but expressed encouragement with the current trajectory.

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EVP & CFO Jim Swanson confirmed that Q2 results were boosted by a $30 million wholesale shipment timing shift, with earlier fall shipments pulled into Q2 to mitigate tariff risks. He attributed the full-year guidance cut to softness in the U.S. business, partially offset by international strength. Chairman, President & CEO Tim Boyle addressed the U.S. DTC weakness by highlighting an upcoming comprehensive refresh of the columbia.com site. Swanson added that the Q3 gross margin contraction of roughly 150 bps is largely due to a $15-20 million tariff impact.

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CEO Tim Boyle acknowledged consumer uncertainty but highlighted a significant opportunity to gain market share from smaller brands and private labels heavily reliant on China. He noted that Spring 2026 pricing strategies are still being formulated. CFO Jim Swanson confirmed the fall order book is stable with no meaningful cancellations and clarified that the tariff costs will primarily impact the second half of the year, with some potential to extend into 2026. For Q2, he expects international business to remain healthy while the U.S. DTC business continues to see some slowness.

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EVP & CFO Jim Swanson attributed the Q1 revenue outlook to lapping a cold winter, a shift in wholesale shipment timing, and reduced promotional activity on columbia.com. He clarified the 3-point headwind was a combination of temp store closures and FX. Swanson noted Q2 would see stronger gross margin expansion. He confirmed incentive compensation and DTC investments are other SG&A pressures, adding that the company is reviewing its cost structure for more savings.

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CEO Tim Boyle stated that H1 2025 growth will be more balanced, with strong improvement in the U.S. business alongside continued strength in international markets. CFO Jim Swanson added that pricing has been largely held flat for the season. Regarding margins, Boyle noted marketing spend will increase but be more efficient, while Swanson confirmed they are on track for the high end of the $75-$90 million cost savings target for the year, driven by inventory and supply chain optimization.

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EVP & CFO Paul Vogel explained that the Q1 free cash flow was impacted by working capital timing but reaffirmed the full-year guidance for year-over-year growth. He stated that leverage is expected to decline from 4.1x at year-end and that the company is confident in its ability to pay off its upcoming €500 million maturity.

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EVP and CFO Paul Vogel stated the company expects to pay down the upcoming debt maturity using free cash flow and its revolver. President and CEO Bracken Darrell affirmed that the company remains happy with its current brand portfolio, as it aligns with the strategy, but will continue annual reviews and exit non-core assets if necessary.

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President and CEO Bracken Darrell confirmed the forward-looking commentary is on a constant currency basis. EVP and CFO Paul Vogel explained that Q4 gross margin is expected to be up significantly due to lower product costs, fewer promotions, and favorable comps. The slight increase in SG&A is driven by marketing investments and bonus accruals.

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CEO Bracken Darrell expressed confidence in the wholesale business's recovery, especially with key accounts, and noted that channel inventories are in a good position. CFO Paul Vogel declined to provide quarterly free cash flow guidance due to variability but reaffirmed the full-year target, stating core fundamentals are in line with expectations.

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CFO Steven Fasching clarified that while HOKA's growth will be more balanced in Q2, international markets will still be the primary driver, though the US DTC business is expected to improve from its April lows. CEO Stefano Caroti highlighted the retail opportunity with 48 owned stores and a new global head of retail. Fasching confirmed the prior growth framework (mid-teens for HOKA, mid-singles for UGG) still holds, increasing their confidence while awaiting tariff clarity.

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CFO Steven Fasching stated that while U.S. DTC is expected to improve, international markets will continue to be the primary growth driver. He also affirmed the company's confidence in its previously stated fiscal framework. CEO Stefano Caroti highlighted the retail opportunity, noting the current 48 owned stores and the recent hiring of a new global head of retail to spearhead expansion.

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CFO Steve Fasching clarified that the mid-teens framework assumes a normal environment, which is currently clouded by tariff uncertainty. He confirmed the Q1 guidance is post-tariff but does not include mitigation from future price increases. CEO Stefano Caroti added that legacy Bondi 8 inventory is largely liquidated. While not providing a specific number for the international mix, Fasching expressed encouragement with its continued progress.

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CEO Stefano Caroti stated that trade reaction to the upcoming Clifton 10 and Arahi 8 has been very positive, reinforcing the strategy to maintain a pull model. CFO Steve Fasching noted that quarterly growth volatility is due to marketplace management, not a change in demand. Regarding long-term targets, Caroti expressed confidence in the brands' potential, with UGG expanding into new categories and HOKA aiming to be a major performance player. Fasching affirmed this confidence but stressed disciplined management to protect brand equity.

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CEO Stefano Caroti stated the international business is 2-3 years behind the U.S. and the long-term goal is a 50/50 split between U.S. and international revenue. He confirmed a robust pipeline, including updates to Bondi in January and Clifton in April. CFO Steven Fasching highlighted the impressive international growth in Q2.

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President and CEO Patrice Louvet detailed China's strong momentum, driven by impactful marketing and quality store expansion, stating the expectation for fiscal '26 is for low double-digit growth. CFO Justin Picicci addressed the margin question by stating the full-year gross margin is expected to be flat, as tailwinds like AUR growth will offset headwinds including tariffs. He did not quantify the tariff impact but noted it would be weighted to the second half of the year.

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Executive Justin Picicci explained that the current strength is the result of deliberate, multi-year brand elevation strategies in North America, including reducing off-price exposure. He highlighted six consecutive quarters of solid DTC comp growth and a return to growth in wholesale, which occurred faster than anticipated. Picicci concluded that stabilizing North American wholesale is a key milestone for delivering sustainable long-term growth for the region and the company.

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CFO Justin Picicci clarified the timing impacts, stating the shifts represent a less than one-point headwind to Q3 revenue and a roughly one-point benefit to Q4. On unit growth, he confirmed that as AUR growth moderates, the company expects the gap between AUR and unit growth to contract, noting they are already driving targeted unit growth in key areas.

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CFO David Bergman declined to comment on the fall order book due to tariff volatility but noted positive product feedback and no key partner cancellations. He stated that the significant gross margin benefits from supply chain and reduced discounting seen in FY25 would be smaller in FY26. CEO Kevin Plank attributed the strong EMEA momentum to excellent leadership, brand authentication in European football, a growing cultural following, and strong retailer relationships, positioning the region as a model for success.

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CEO Kevin Plank reported an exciting reception for new footwear from key retailers and highlighted the upcoming SlipSpeed Echo launch and untapped potential in the Curry Brand. CFO David Bergman declined to provide a specific revenue percentage for Kohl's but stated no single account is close to 10% of sales. He affirmed there is a clear roadmap to a 50% gross margin, driven by better costing, lower discounts, and regional mix, despite a potential headwind from faster footwear growth.

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CFO Dave Bergman confirmed guidance for wholesale to be down 10-12% and DTC down ~10%, driven by e-commerce. CEO Kevin Plank added that reducing e-commerce promotions not only boosted their margins but also improved their standing on partner site algorithms. Bergman identified emerging ocean freight costs and foreign currency as the largest new headwinds offsetting the Q1 gross margin beat, with channel mix being a smaller factor.

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Executive John Vandemore explained that consumer demand for Skechers remains robust globally, with the main uncertainty concentrated in the U.S. and China for different reasons. He and David Weinberg (Executive) clarified that the three mitigation levers are not ranked by importance and are all being actively pursued with flexibility. Vandemore also stated there is no evidence of anti-Americanism, as Skechers is perceived as a local, international brand in many markets.

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John Vandemore (executive) clarified that the implied margin decline seemed high and the company's objective is to sustain its double-digit operating margin, though FX and China are headwinds. He projected U.S. wholesale would normalize towards mid-single-digit growth after a phenomenal 2024. Vandemore estimated the forward FX impact on EPS to be between $0.15 and $0.20, noting the Q4 hit was due to broad, rapid strengthening of the U.S. dollar. David Weinberg (executive) added that balance sheet FX impacts are not recurring.

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CFO John Vandemore attributed the guidance raise to robust performance in domestic and international markets outside of China. He explained the gross margin dip was expected, influenced by promotional activity in markets like China and higher freight costs. For Q4, he guided gross margin to be relatively flat year-over-year. The inventory increase was primarily due to lower-than-expected sales in China and elevated in-transit goods for EMEA.

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CFO John Vandemore acknowledged the odd quarter with slower brick-and-mortar traffic but strong e-commerce performance, noting the tough prior-year comparison of 29% growth. He stated it's difficult to quantify the exact sales shift from Q2 to Q3 but confirmed a material amount of orders moved into the second half due to supply chain delays. Regarding gross margins, he indicated that while Q2 benefited more than expected from freight and mix, the benefit is expected to be smaller in the back half of the year, and they are monitoring rising freight rates.

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The company quantified the FX headwind at approximately $8 million for the full year. They noted RockyMounts' historical revenue was small ($4-5M) and are conservative about its 2025 contribution despite growth plans. Gross margin expansion of 350-450 bps in Outdoor and maintaining ~40% in Adventure are key drivers. The size of the PIEPS business was not disclosed.

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CFO Michael J. Yates quantified the full-year FX headwind at approximately $8 million, split evenly between the Outdoor and Adventure segments. He noted RockyMounts historically generated $4-5 million in annual revenue but sees significant growth opportunities. For margins, Yates pointed to a 350-450 basis point improvement in Outdoor's gross margin. Executive Warren Kanders addressed the PIEPS question, stating the company has not disclosed its size but will issue a press release if a transaction occurs.

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The company clarified that the top-line guidance cut of $12 million is entirely from the Adventure segment, which is tracking behind plan. The Outdoor segment is on track with its strategic revenue reduction focused on improving profitability. The 2025 outlook will be updated on the next call. For Q4, gross margins are expected to be strong, between 39% and 40% for both segments.

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CFO Michael J. Yates clarified the $12 million revenue guidance cut stems entirely from the Adventure segment, which is now expected to generate $78 million instead of $90 million. He explained that the Outdoor segment is tracking to its plan, but the Adventure segment is behind the 2025 roadmap presented in March. For Q4, Yates expects gross margins to be between 39% and 40% for both segments.

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