Randy Konik

Randy Konik inquired about the company's portfolio strategy, noting that Club Pilates represented nearly 80% of licenses sold and asking if the company plans further divestitures or will focus primarily on Club Pilates. He also asked about the strategy for Club Pilates unit growth and license sales to further densify the brand given its strong productivity.

Answer

CEO Mike Nuzzo stated the company has not been reluctant to divest brands that don't align with long-term growth. He emphasized a focus on improving all brands, specifically mentioning an urgent improvement focus for StretchLab with new leadership, targeting active older adults, and enhancing marketing, CRM, and website experiences. For Club Pilates, Mike Nuzzo confirmed significant potential for unit growth, aiming to double the domestic network and expand internationally, particularly in Asia and Europe. He also noted opportunities for unit growth in other brands like Pure Barre, YogaSix, and BFT, highlighting strong four-wall economics for Club Pilates.

Randy Konik inquired about Xponential Fitness's portfolio strategy, particularly given that Club Pilates represented nearly 80% of licenses sold, and the performance of brands like StretchLab. He asked if the company plans further divestitures or to double down on Club Pilates. He also questioned the strategy for Club Pilates unit growth to further densify the brand in the U.S. and internationally.

Answer

CEO Mike Nuzzo stated that the company is not reluctant to part with underperforming brands, citing past divestitures. He emphasized an urgent focus on improving StretchLab through new leadership, marketing, CRM, website enhancements, and optimized hours of operation. For Club Pilates, Mike Nuzzo highlighted significant potential for unit growth, both domestically in white space and fill-in areas, and internationally, especially in Asia and Europe, with a dedicated team and strong master franchise partners.

Randy Konik inquired about the positive trends in the FootJoy business, including the impact of premium products and the Fit Lab program, and requested an update on the Japan and Korea markets, particularly regarding apparel and footwear categories. He also asked about the current pricing environment across golf categories.

Answer

President and CEO David Maher explained FootJoy's strategic shift towards premium performance products and the success of the Fit Lab, noting a focus on bottom-line improvement despite tariff headwinds. He provided an outlook for Japan and Korea, highlighting equipment growth but tempered expectations for wearables. Maher also discussed Acushnet's thoughtful approach to pricing actions in response to input and distribution costs, emphasizing value through product and experience.

Randy Konik inquired about the FootJoy business, noting a more constructive tone and asking for deeper insights into its progress, particularly regarding premium products and the Fit Lab program. He also requested an update on the Japan and Korea markets, specifically how equipment performance compares to apparel and footwear categories, and asked about the overall pricing environment across all categories.

Answer

David Maher, President and CEO, explained that FootJoy has navigated an industry correction, focusing on the bottom line and leaning into premium performance products like Premiere and HyperFlex, while rationalizing lower price points. He noted that the Fit Lab program is enhancing the golfer experience. For Japan and Korea, he stated that equipment saw nice growth in 2025, but wearables (FootJoy, Titleist Apparel) remained softer, leading to tempered expectations for those segments. Regarding pricing, David Maher confirmed careful actions were taken in H2 2025 for FootJoy and gear, with equipment price increases expected in H1 2026, particularly for new club products and Pro V1 in the U.S./Canada, driven by input and distribution costs and tariffs.

Randy Konik asked about the 2026 guidance in the context of the three-year growth algorithm, seeking perspective on how revenue growth, unit expansion, and EBITDA dollar growth are expected to shape in 2027 and 2028. He also inquired about more granular details regarding January's join and attrition trends.

Answer

CFO Jay Stasz explained that 2026 is projected to be the lowest growth year in the three-year algorithm due to the re-equipment cycle and the sale of California clubs, impacting top-line by 300 basis points and EBITDA by over 200 basis points. He reiterated commitment to the algorithm, expecting a step-up in growth in the out years. Regarding January, Mr. Stasz noted strong join trends before late-January storms impacted about 2,000 clubs, followed by a rebound and healthy February join rates. He also mentioned a slight, now normalized, elevation in January attrition, attributing it to the first high-volume period with 'cancel anytime' messaging.

Randy Konik inquired about the foundational work YETI has undertaken for its international business, including distribution and supply chain, and sought insight into current brand awareness levels across key international markets. He also asked if the 2026 international and drinkware revenue guidance reflects conservatism, given strong Q4 2025 exit rates and new product launches, and for perspective on lean wholesale inventories.

Answer

Matt Reintjes, President and CEO, highlighted the growth of international sales from 2% to 21% since 2017, emphasizing established teams, expanding wholesale footprints, e-commerce capabilities, and corporate partnerships in Europe, Asia, Canada, and Australia. Mike McMullen, CFO, stated that the international (high teens to 20%) and drinkware (mid-single digit) guidance is prudent, acknowledging strong Q4 performance and innovation. He confirmed wholesale inventories are down meaningfully year-over-year, with sell-through outpacing sell-in for several quarters.

Randy Konik asked Matt Reintjes to elaborate on the foundational work for YETI's international business, including distribution, supply chain, and global brand-building efforts, and to provide insight into current brand awareness levels in key international markets.

Answer

President and CEO Matt Reintjes highlighted the growth of international sales from 2% to 21% since 2018, noting established teams in Europe, Japan, Asia, Canada, and Australia. He detailed efforts to build wholesale footprint, expand e-commerce, and develop corporate sales and partnerships, citing the Land Rover Defender relationship as an example. Reintjes also mentioned exploring new markets like China and Korea, expressing confidence in the international playbook.

Randy Konik of Jefferies Financial Group Inc. questioned Birkenstock's channel growth dynamics, noting B2B's 21% growth versus D2C's 12% in fiscal 2025, and asked about expectations for 2026 channel growth, strategies to accelerate D2C, and whether the B2B/D2C growth rate spread would widen or narrow.

Answer

CFO Ivica Krolo explained that the shift to in-person, multi-brand retail, particularly among youth, favors B2B, which offers strong margins and acts as effective marketing. He stated that both channels are expected to grow double-digit in constant currency, with B2B continuing to outpace D2C. D2C acceleration focuses on expanding the store fleet (40 new stores in 2026), loyalty programs, and exclusive content.

Randy Konik asked for a qualitative hindsight on Q4 last year, focusing on assortment gaps and lab-grown diamond penetration, and how that informs this year's Q4. He also asked about management's instructions for holiday execution and future strategic changes to the balance between bridal and fashion categories, including capital allocation for core brands.

Answer

COO and CFO Joan Hilson stated that last year's Q4 had assortment gaps in gift-giving price points, particularly under $1,000, and lacked lab-grown diamond penetration in fashion. She highlighted that this year, lab diamonds are 40% of bridal and 15% of fashion sales, closing those gaps. CEO J.K. Symancyk emphasized simplifying value propositions, streamlining promotions, ensuring inventory depth, and focusing on conversion for the holiday. He noted that while bridal dominance will be maintained, fashion offers outsized growth opportunities, potentially shifting the mix over time.

Randy Konik asked for a qualitative hindsight on Q4 last year, specifically how the quarter played out and how it informs this year's Q4. He also inquired about management's instructions for teams to execute the holiday season successfully and Signet's long-term strategy regarding the balance between bridal and fashion categories and capital allocation.

Answer

COO and CFO Joan Hilson stated that last year's Q4 had assortment gaps in key gift-giving price points, particularly under $1,000, and lacked lab-grown diamond penetration. This year, LGDs are 40% of bridal and 15% of fashion, with strong inventory depth in key styles. She noted consistent conversion and stronger brick-and-mortar traffic. CEO J.K. Symancyk emphasized simplifying messages and streamlining promotions for the critical December period, focusing on inventory availability and conversion. He affirmed maintaining dominance in bridal while pursuing outsized growth opportunities in the underdeveloped fashion category, with further strategic capital allocation discussions planned post-holiday.

Randy Konik inquired about the strategic hopes for SharkNinja's new design center in New York, how it integrates with the existing global infrastructure to foster innovation, and the company's long-term international growth strategy, including the target proportion of international business and key opportunities. He also asked CFO Adam Quigley about the future drivers of gross margin expansion.

Answer

CEO Mark Barrocas explained the New York design center is a talent magnet for creative, design, PR, media, and social media, similar to the London engineering office, fostering collaboration across global teams. For international growth, he noted the successful replication of SharkNinja's model globally, with excitement for Europe, Latin America, and continued U.K. growth, targeting 50% of the business from outside the U.S. CFO Adam Quigley detailed that gross margin expansion is driven by structural changes, including product cost optimization through value engineering, supply chain diversification, and entry into new, higher-margin categories, ensuring durability.

Randy Konik inquired about the new design center's role in fostering innovation and strengthening the organization, asking how it integrates with SharkNinja's existing global infrastructure. He also asked about SharkNinja's international growth strategy, its target proportion of the total business, and key opportunities, and CFO Adam Quigley about the drivers for continued gross margin expansion in the coming years.

Answer

CEO Mark Barrocas explained that the new New York design center, similar to the London engineering office opened in 2014, will serve as a magnet for creative and design talent, enhancing SharkNinja's global 'chasing the sun' innovation approach. He stated that SharkNinja's model of disruptive innovation and viral marketing is successfully replicating globally, with strong excitement for Europe, Latin America, and continued growth in the U.K., reiterating the short-to-midterm target of having 50% of the business outside the U.S. CFO Adam Quigley added that gross margin expansion is driven by structural changes, including product cost optimization through value engineering, supply chain diversification, and entry into new, higher-margin categories.

Randy Konik of Jefferies inquired about Manchester United's strategy for monetizing its extensive content library and plans for increasing revenue from Old Trafford while maintaining affordable ticket prices for fans.

Answer

Philip Lynch, CEO of Media, explained that the integration of MUTV and the club app creates a simplified user experience, enabling better personalization and targeted monetization, including exploring blockchain offerings. CEO Richard Arnold added that stadium revenue growth is driven by maximizing seat occupancy through innovative ticket buy-back and donation programs and by catering to high demand for premium experiences, which helps keep general admission prices flat.

Randy Konik of Jefferies inquired about the impact of the new leadership structure on business operations and fan engagement, and also asked for an update on the commercial segment's return to normalcy across different geographies.

Answer

CEO Richard Arnold explained that the new structure empowers leaders to drive the club forward, with a core strategy centered on digitization. This includes stadium WiFi, digital-focused partnerships like Tezos, and deeper fan engagement. Regarding the commercial segment, Arnold noted that the team successfully pivoted to digital activations during the pandemic, which has maintained momentum and resulted in new partnerships and renewals, demonstrating the club's resilience.

Randy Konik of Jefferies asked for qualitative details on Cristiano Ronaldo's impact on fan engagement, kit sales, and other metrics. He also questioned how the club might leverage a star player for commercial partnerships and sought clarification on plans for the summer 2022 tour.

Answer

Group Managing Director Richard Arnold reiterated that it was too early to provide quantitative data on Ronaldo's impact, emphasizing the club's focus is on team performance and collective commercial strategy rather than singling out one player. CFO Cliff Baty clarified that his earlier comments on 'no summer tour' referred to the summer of 2021 (FY22). Arnold added that plans for the summer 2022 tour (FY23) are being evaluated but remain uncertain due to the ongoing pandemic.