Total Revenue

+8% (from $1,567.9M to $1,697.3M)

The increase of $129.4M reflects improved revenue performance across all regions, building on prior period momentum. Strategic investments in marketing and consumer engagement, along with favorable shifts in channel mix, contributed to this growth. " " " "

North America Revenue

+5.5% (from $667.7M to $704.7M)

A $37M increase driven by steady improvements in both brick-and-mortar and digital commerce channels, showing incremental gains from a mature market; the current performance builds on the consistent stability observed in Q4 2024. " " " "

Europe Revenue

+12% (from $469.2M to $525.5M)

A $56.3M boost resulting from accelerated retail comparable sales and effective promotional strategies. The region’s rebound, overcoming prior period challenges such as inventory and timing issues, underlines renewed consumer confidence and targeted marketing initiatives. " " " "

Asia Revenue

+9.5% (from $394.3M to $431.6M)

An increase of $37.3M fueled by strong growth initiatives in key markets like China and Japan. Enhanced digital commerce and physical expansion strategies, building on previous period successes, drove the positive change. " " " "

Operating Income

+44% (from $107.8M to $155.0M)

A robust rise of $47.2M in operating income was achieved through improved gross margins and optimized cost management. This significant improvement, anchored in prior period efforts to refine the product mix and channel efficiency, reflects both revenue growth and operational leverage. " "

Net Income

+42% (from $90.7M to $129.0M)

An increase of $38.3M in net income, supported by the higher operating income and further enhanced by favorable tax benefits and lower restructuring charges relative to the previous period. This indicates a more efficient bottom-line performance built on past adjustments. " "

Capital Expenditures

+100% (from ($39.90)M to ($79.90)M)

A doubling in expenditure driven by additional investments in store openings, renovations, and IT system enhancements. This jump builds on prior period modernization efforts and positions the company for future growth despite the significant increase in capital outlay. " "

Operating Margin

Q4 2025

Expand approx 120–140 basis points "

no guidance

no current guidance

Tax Rate

Q4 2025

Around 24%–25% "

no guidance

no current guidance

Revenue Growth

Q4 2025

Increase approx 6%–7% (constant currency, –300 bps FX impact) "

no guidance

no current guidance

AUR Growth

Q4 2025

Planning for high single‐digit AUR growth "

no guidance

no current guidance

Revenue Growth

Q1 2026

no prior guidance

Expected to increase high single digits in constant currency "

no prior guidance

Operating Margin

Q1 2026

no prior guidance

Expand approximately 150–200 basis points "

no prior guidance

Gross Margin

Q1 2026

no prior guidance

Expected to expand in Q1, reflecting AUR growth, discount reductions and favorable mix "

no prior guidance

Tax Rate

Q1 2026

no prior guidance

Expected to be in the range 20%–21% "

no prior guidance

Foreign Currency Impact

Q1 2026

no prior guidance

Expected to have a neutral impact on revenue, gross margin and operating margin "

no prior guidance

International Growth

In Q1–Q3, executives consistently highlighted robust international revenue gains in key markets (Europe, Asia, China) driven by digital and brick‐and‐mortar initiatives while keeping a close eye on geopolitical disruptions. " " " "

Q4 saw strong European (16%) and Asian (13%) growth—with standout digital channel gains and continued low‐double digit momentum in China—coupled with cautious monitoring yet overall optimism about geopolitical risks. " " "

Consistent focus and optimism: The emphasis on international growth remains stable, with continuous monitoring of geopolitical risks, signaling steady execution and confidence across periods.

Pricing Strategy and AUR Growth

Q1 to Q3 discussions emphasized proactive pricing, reduced discounting, and steady AUR gains—from 6% in Q1 to 12% in Q3—underpinning strong margin management and targeted price increases in markets like Japan. " " " "

Q4 maintained this focus with a reported 9% AUR increase and proactive pricing actions (including selective price adjustments to mitigate FX and tariff effects), demonstrating sustained commitment to pricing discipline. " "

Steady evolution with disciplined pricing: While growth rates have moderated slightly, the consistent reduction in discounting and targeted pricing actions across periods reflect a maintained and positive strategic outlook.

Distribution Channel Transformation & DTC Expansion

Earlier quarters (Q1–Q3) focused on refining the wholesale network—exiting low-tier doors—and investing in DTC growth via digital enhancements and strategic store openings (e.g., new partner stores and flagship renovations). " " " "

In Q4, the strategy was further emphasized with the exit of 60 department store doors, continued robust DTC comp growth (including digital and brick-and-mortar) and aggressive global store expansion to drive customer engagement. " "

Ongoing DTC-led pivot: The transformation remains consistent, with incremental refinements. The channel exits and ongoing digital investments signal a maturing strategy that is increasingly focused on high-quality, profitable customer engagement.

Margin Expansion, Cost Pressures & Foreign Exchange Risks

From Q1 through Q3, margin expansion was a key theme despite headwinds—Q1 reported strong gross and operating margin gains, Q2 and Q3 emphasized disciplined expense management and consistent gross margin improvements amid cost pressures and FX challenges. " " "

Q4 achieved its 15% operating margin target and realized a 240 basis point expansion despite ongoing tariff-related and noncotton cost pressures—with proactive pricing and supply chain efficiencies mitigating FX impacts. " " " "

Continuous improvement amid challenges: The margin narrative shows consistent, methodical expansion and effective cost management despite persistent pressures, reflecting robust strategic adaptations over time.

Marketing Investments and Brand Strength

Q1–Q3 discussions detailed a progressive increase in marketing spend—from 6.7% to near 7% of sales—with strong consumer engagement, rising social media followings, and reinforced brand desirability driven by diverse activations and global campaigns. " " " "

Q4 reported record marketing investments at 7.3% of revenue, with enhanced brand momentum reflected by record new consumer additions and elevated global desirability—all reinforcing the brand's iconic status. " " "

Cumulative brand elevation: Marketing investments have steadily increased and are now yielding stronger consumer engagement and brand strength, maintaining a positive narrative despite macro challenges.

Next-Generation Transformation & Technology Upgrades

Q1 saw limited references focused on digital commerce investments, while Q2 did not mention these topics. In Q3, preliminary planning for a next-generation transformation (including a single global ERP and predictive buying tools) was introduced. " "

In Q4, the focus sharpened with concrete initiatives—integrating predictive buying across 25% of international DTC and setting capital expenditure targets (4–5% of sales in fiscal 2026)—demonstrating an escalating commitment to tech upgrades. " "

Emerging and maturing focus: Initially peripheral, the transformation agenda has emerged prominently in Q3 and solidified in Q4, indicating a ramp-up in technology investments aimed at long-term operational efficiency.

Domestic Wholesale & Consumer Channel Challenges

Across Q1–Q3, challenges were noted in North American wholesale (declines up to 13% in Q1) and digital channels, with proactive measures (door exits, inventory management, digital enhancements) being implemented to stabilize performance. " " "

Q4 discussed continued exit of department store doors (60 already exited, 90 planned in fiscal '26) and stabilization of wholesale sell-in aligned with active sell-out trends, though cautious sentiment persists due to broader macro pressures. " " "

Cautious but improving outlook: While initial challenges in domestic wholesale and digital channels remain, strategic pruning and DTC investments are yielding stabilization, though caution remains amid broader consumer environment uncertainties.

High-Potential Category Growth Opportunities

From Q1 through Q3, high-potential categories—women's apparel, outerwear, and handbags—were consistently highlighted with double-digit to 20% growth figures and strong consumer appeal, reinforcing long-term growth potential. " " "

In Q4, emphasis was placed on these same categories with reported high-teen growth rates in women's, outerwear, and handbags, indicating sustained momentum and reinforcing their role as key growth drivers. "

Increasing momentum in growth areas: The consistent focus on high-potential categories has expanded over time, with growth rates accelerating and sentiment growing increasingly positive about their long-term market opportunity.