Sam Poser

Sam Poser asked for clarification on the size differential between Saucony's lifestyle and performance businesses, seeking a percentage breakdown. He also questioned why Wolverine World Wide uses a third-party sales team for its lifestyle product in the US, rather than bringing it in-house, suggesting it might have helped avoid certain issues.

Answer

President and CEO Chris Hufnagel reiterated that performance constitutes the majority, or lion's share, of the Saucony business, with lifestyle being a smaller segment. He explained that the company uses a combination of in-house sales teams and agents/agencies, which is not unique for growing businesses, and these partners bring specific expertise, with relationships continuously evaluated.

Sam Poser of Williams Trading, LLC asked about the elevated SG&A and marketing spend, questioning its focus on long-term brand building versus short-term results. He also inquired about the interest expense outlook for the remainder of the year.

Answer

CEO Christopher Hufnagel confirmed a strategic shift towards upper-funnel, long-term brand building, away from lower-funnel conversion marketing, which he believes is driving both short-term lifts and long-term health. CFO Taryn Miller added that the company is reinvesting a portion of gross margin gains into marketing, talent, and tools to fuel sustainable growth. She noted Q2 interest expense was $8.5 million and is expected to be largely unchanged.

Sam Poser asked for specific details on the tariff factors causing uncertainty, including potential impacts from Section 301 tariffs and changes in Brazil's tariff rates. He also questioned the overall tariff situation compared to a few days prior and the structural impact of the planned private label business decline on gross margin and SG&A. Additionally, he sought insight into the timeframe and visibility of orders from mass retailers like Walmart and Target.

Answer

Edward Rosenfeld, Chairman and CEO, emphasized the tremendous amount of uncertainty and lack of clarity/stability in the policy environment, with multiple changes in the last five days, making it irresponsible to provide earnings guidance. He agreed that the current situation, compared to a few days prior, is better but other factors could make it the same or worse. He confirmed that as private label shrinks, it offers a mixed benefit to gross margin, and not much SG&A is reduced. Regarding mass channel orders, he stated that declines are seen throughout the year, with products from other sources filling in for spring and fall. Visibility on orders is similar to the branded business, with the first-cost nature meaning earlier delivery but similar time between order and shipment.

Sam Poser from Williams Trading sought specific details on the tariff factors causing uncertainty and precluding earnings guidance, particularly concerning potential benefits from sourcing diversification. He also asked about the visibility and timeframe for orders from mass retailers compared to other channels.

Answer

Chairman and CEO Edward Rosenfeld reiterated the 'tremendous amount of uncertainty,' 'no clarity on or any stability in terms of the policy environment,' and 'multiple changes within the last five days' regarding tariffs. He confirmed that while the situation might be better than a few days prior, other factors could make it worse or the same soon. Edward Rosenfeld stated that declines in private label are seen throughout the year, implying products from other sources are filling in spring and fall. He noted that visibility on mass retailer orders is 'not that different' from the rest of the business, with similar order-to-shipment times due to the first-cost nature.

Sam Poser of Williams Trading LLC asked if any wholesale channels or brands were up in the quarter, questioned the sourcing strategy given new tariff issues in countries like Brazil, and probed the outlook for the wholesale business in the second half. He also asked about the consumer impact of tariffs and the performance variance between stores and e-commerce in the DTC segment.

Answer

Chairman and CEO Edward Rosenfeld identified Betsy Johnson as an outperforming brand but noted key brands and channels were down. On sourcing, he stated the company must wait for tariff clarity before making further moves. He confirmed e-commerce performed 'quite a bit better' than stores in the core DTC business and described the consumer as 'hanging in there' amidst the disruption, which is currently more of a wholesale partner issue.

Sam Poser asked about Under Armour's strategy for creating emotional connections with both performance and lifestyle products, the potential expansion of the high school team display concept, a country-level breakdown for APAC, and details on Yasin Saidi's management realignment.

Answer

CEO Kevin Plank discussed creating emotional connections through improved price-to-value, athlete authenticity, inspirational imaging, and confidence (e.g., Women's Flag Football campaign). He linked the high school team concept to team sports growth and leveraging on-field credibility for sportswear. CFO Dave Bergman declined a country-level APAC breakdown but noted new leadership. Kevin Plank explained Yasin Saidi's transition to an external advisor role, focusing on consistent brand aesthetic and simplification.

Sam Poser asked about Under Armour's strategy to create a stronger emotional connection with consumers for both performance and lifestyle products, the potential expansion of in-store high school team displays, a country-level breakdown for APAC, and the rationale behind Yassine Saidi's transition to an external advisor role.

Answer

CEO Kevin Plank highlighted the importance of making consumers 'feel something' through exceptional price-to-value products like the HB Low shoe, athlete credibility, inspirational marketing, and campaigns like the women's flag football initiative. He discussed leveraging team sports, where Under Armour outfits 3,000 high schools, as an anchor for brand authenticity. CFO Dave Bergman noted that APAC country breakdowns are not typically provided but emphasized new leadership and a focus on brand rebuilding. Kevin Plank explained Yassine Saidi's transition to an external senior advisor role as a strategic move to ensure design continuity while simplifying product lines and driving 'Unleashing Intentionality' across the organization.

Sam Poser asked for more specific details on the domestic DTC business performance for both HOKA and UGG, inquiring if both were up in the U.S. He also sought clarification on how Deckers defines 'lifestyle' product for HOKA, and if any brand's wholesale business was down in the quarter, specifically HOKA.

Answer

CFO Steve Fasching confirmed that both HOKA and UGG's U.S. DTC businesses were up and showed positive inflection. President and CEO Stefano Caroti defined lifestyle as products created by their lifestyle category team, acknowledging performance products' lifestyle adoption. Fasching clarified that both UGG and HOKA were up in both geographies, and any perceived decline in wholesale was due to the phase-out of the Koolaburra brand.

Sam Poser of Williams Trading, LLC asked for a specific breakdown of performance between physical retail and e-commerce for HOKA and UGG. He also questioned the impact of recent price hikes on sales velocity and the outlook for promotional activity.

Answer

CEO Stefano Caroti and CFO Steven Fasching confirmed that physical retail significantly outperformed e-commerce but did not provide specific metrics. Caroti noted no material sales decline from the July 1 price increases. Fasching added that the company anticipates higher promotional activity compared to the exceptionally low levels of the prior year.

Sam Poser of Williams Trading LLC pressed for details on the performance of physical stores versus e-commerce for HOKA and UGG, the sales impact of recent price hikes on key HOKA styles, and the role of promotional activity in the gross margin forecast.

Answer

CEO Stefano Caroti stated that physical retail performed 'significantly' better than e-commerce and confirmed no material sales decline has been observed since the July 1 price increases. CFO Steven Fasching noted that while specific channel comps were not disclosed, the outlook assumes a more normalized promotional environment compared to the exceptionally low levels of the prior year.

Sam Poser of Williams Trading, LLC requested a more specific update on Q1 performance, particularly regarding revenue and margin. He also asked about the optimization status of existing factories (Pasewalk, Görlitz, and Portugal) by Q3 2026 and the expected increase in production capacity in the second half of fiscal 2026.

Answer

CEO Oliver Reichert stated that Q1 revenue, despite being the smallest quarter, is expected to be 'well above guidance,' while CFO Ivica Krolo noted that Q1 margin details are not yet available but will be discussed at the Capital Markets Day. Oliver Reichert clarified that 2026 will see ongoing optimization within existing structures, but major capacity pushes, especially for final assembly and cork-latex, will come with the Wittichenau factory (online 2027) and the longer-term Pasewalk expansion, with Portugal's pre-production ramping up gradually due to workforce training.

Sam Poser from Williams Trading, LLC asked for the comparable store sales growth, the specific reported revenue guidance for the full year considering FX, and a clarification on whether the new 15% tariff rate was an improvement over the previously anticipated stacked tariff.

Answer

David Kahan, President of Americas, reported that comparable sales in own retail stores were up in the high teens. CFO Ivica Krolo detailed the FX impact, expecting a 400 basis point drag on revenue in Q4 and a 150-200 basis point drag for the full year. He also confirmed that the current 15% blended tariff rate is indeed more favorable than the 21% blended rate that would have resulted from the previously feared reciprocal tariffs.

Sam Poser questioned the like-for-like comparable sales performance of existing Shoe Station stores and sought clarification on the breakdown of the planned $100 million inventory reduction, specifically regarding the proportion of reduced receipts, returns to vendors, and potential gross margin pressure. He also asked about the company's strategy for aggressively liquidating non-GoForward Shoe Carnival inventory, particularly in stores slated for conversion.

Answer

President and CEO Mark Worden and CFO Kerry Jackson stated they would not break down Shoe Station comps into smaller components, emphasizing the overall banner's positive performance. Mark Worden, Kerry Jackson, and EVP and Chief Merchandising Officer Tanya Gordon explained that inventory reduction would primarily come from fewer units per store in the Shoe Station model and reduced receipts, confirming that non-GoForward Carnival product would be aggressively liquidated, leading to some margin pressure. Mark Worden estimated 40%-60% of Carnival inventory would not carry forward.

Sam Poser of Williams Trading LLC inquired about the competitive landscape driving the accelerated Shoe Station expansion, the role of dress shoes in its success, and the potential for adding the Jordan brand. He also asked for clarity on the path to achieving the full-year guidance and the strategic use of private label products at both Shoe Carnival and Shoe Station.

Answer

Mark Worden, President & CEO, explained that Shoe Station is filling a national 'white space' left by moderate department stores, and its unique dress shoe assortment is a key competitive advantage. While not commenting on specific future brands like Jordan, he confirmed the merchant team is actively seeking new additions, with a current focus on performance running. Worden clarified that reaching the high end of sales guidance depends on improved consumer sentiment, and noted that private label products represent a very small portion of the business, used opportunistically to fill gaps within their 'house of brands' strategy.

Sam Poser of Williams Trading LLC inquired about the strategic rationale for accelerating the Shoe Station rebannering, questioning if it was driven by a more favorable competitive landscape compared to the Shoe Carnival banner. He also asked about the role of dress shoes and private label products in this strategy, and sought clarity on the path to achieving the high end of the full-year sales guidance.

Answer

President & CEO Mark Worden confirmed the rebannering targets a 'white space' left by moderate department stores and that strong dress shoe sales are a key proof point. He stated that reaching the high end of sales guidance depends on improved consumer sentiment, but the mid-to-low end is more probable. Worden also clarified that private label is a minor component (under 10%) of the business, as the focus for Shoe Station is being a 'house of the best brands'.

Sam Poser asked about On's strategy for controlled U.S. growth, its reflection in gross margin and future outlook, and how the 2026 regional growth expectations (U.S., Asia, EMEA) are factored into the raised three-year plan.

Answer

Caspar Coppetti (Executive Co-Chairman and Co-Founder) explained that On's premium strategy involves discipline in wholesale expansion and avoiding discounting, noting strong U.S. demand despite price increases and increased brand awareness among affluent demographics. Martin Hoffmann (CEO and CFO) added that the 2026 outlook includes strong growth across all regions, with apparel being a global opportunity and continued disciplined wholesale expansion in the U.S.

Sam Poser followed up on the 2026 outlook and the raised three-year plan, asking if it implies ongoing double-digit growth in the U.S. and significantly higher growth in Asia and EMEA on an FX-neutral basis.

Answer

CEO and CFO Martin Hoffmann confirmed that the outlook includes strong growth across all regions, with the brand's initiatives amplifying opportunities globally. He stated that the assumption is based on continued strong growth in the U.S., Europe, and Asia Pacific. He cited apparel as a global, underpenetrated opportunity and mentioned continued retail expansion and strategic wholesale partnerships as drivers across all regions.

Sam Poser inquired about the extent to which the store assortment has been narrowed and whether a 'narrow and deeper' inventory strategy, particularly in denim, is helping drive sales. He also asked if the flat comp guidance for the back half is evenly split between Q3 and Q4.

Answer

CEO John Hazen confirmed the company has gone deeper in denim inventory, which has been well-received by customers, while continuing to focus on its top-performing core styles. He also clarified that the guidance assumes flat comps for both Q3 and Q4, reflecting caution around the macro environment and tariffs.

Sam Poser of Williams Trading sought to clarify if the commentary on consumer weakness applied to both brands and challenged whether the issues were macro-related or stemmed from a lack of product innovation. He also asked for an update on the sales penetration of sandals for the Crocs brand.

Answer

CEO Andrew Rees affirmed the broad-based consumer weakness impacts both brands due to their democratic price points. He countered the product innovation question by highlighting the strong performance of new introductions, such as Crocs sandals and refreshed Heydude styles. He attributed current headwinds to the macro environment and necessary strategic actions. He confirmed sandal penetration grew from 13% last year but did not provide a new figure.