Financial Data and Key Metrics Changes - The company reported flat global revenue compared to the prior year, consistent with expectations, with adjusted gross margin expanding by 200 basis points to 47.7% driven by lower input costs and favorable mix [29][34][42] - Adjusted earnings per share (EPS) was $1.31, a 13% increase compared to the prior year, exceeding previous expectations [36][47] - Net debt was reported at $379 million, with a net leverage ratio of 0.9 times trailing twelve-month adjusted EBITDA, below the targeted range ahead of the Helly Hansen acquisition [38][39] Business Line Data and Key Metrics Changes - Wrangler's global revenue increased by 3%, with a notable 40% growth in the female segment, while Lee's global revenue decreased by 8% [15][31][32] - The company gained 70 basis points of market share in the men's and women's bottoms category during the first quarter [18][31] - The Lee brand is undergoing a repositioning strategy, with expectations for sequential improvement in revenue [18][19] Market Data and Key Metrics Changes - The U.S. market remains the largest outdoor apparel and footwear market, with significant growth opportunities identified for Helly Hansen [6][7] - International revenue for Wrangler increased by 4%, driven by a 6% growth in wholesale [31] - The company noted a resilient consumer environment, with improvements in point-of-sale (POS) trends observed in March and April [13][30] Company Strategy and Development Direction - The acquisition of Helly Hansen is expected to enhance revenue growth, earnings, and cash flow, with a focus on accelerating the brand's growth and improving operating margins [5][6][9] - The company aims to establish itself as an employer of choice in the industry, emphasizing talent retention and cultural fit with Helly Hansen [10][11] - Project Genius is expected to contribute to significant cost savings and operational efficiencies, with a full run rate anticipated by 2026 [14][45] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating macroeconomic volatility, highlighting operational agility and a strong supply chain as competitive advantages [12][41] - The outlook for 2025 includes expected revenue growth of 17% to 19%, with Helly Hansen contributing approximately $425 million [42][44] - Management remains cautious about retail inventory levels and consumer behavior, planning conservatively for the year [43][49] Other Important Information - The company has established a value creation framework with four pillars to drive growth and improve profitability [6][9] - Tariff impacts are being actively managed, with expectations to mitigate the effects within a 12 to 18-month period [49][52] - The company plans to continue its share repurchase program once acquisition-related debt is reduced [38][39] Q&A Session Summary Question: State of U.S. Consumer - Management described the U.S. consumer as resilient, with positive trends observed in March and April following a strong start to the year [56][58] Question: Guidance for 2Q and 2026 - The company expects organic revenue growth of 1% to 2% for the full year, with second-half growth driven by new programs and distribution expansion [61][62] Question: Lee Brand Transition - Management expressed confidence in the Lee brand's product quality and digital performance, anticipating a positive inflection in growth by 2026 [68][73] Question: Gross Margin Drivers - The significant gross margin outperformance was attributed to favorable product mix, lower product costs, and benefits from Project Genius [74][76] Question: Tariff Impact and Mitigation - The unmitigated tariff impact has been revised to approximately $50 million, with Mexico's tariff exemption contributing to the reduction [80][81] Question: Helly Hansen Contribution - Helly Hansen is expected to contribute approximately $425 million in revenue for the full year, with double-digit growth anticipated in the second half [24][87]

Group 1: Regulatory Developments - The National Medical Products Administration (NMPA) has released the "Management Measures for Safety Risk Monitoring and Evaluation of Cosmetics," effective from August 1, 2025, aimed at enhancing the supervision and management of cosmetics [1] - The measures consist of six chapters and thirty-three articles, clarifying the responsibilities of the NMPA, the National Institute for Food and Drug Control, and various drug supervision departments [1] - The focus includes monitoring substances that may harm human health when added to cosmetics, particularly those harmful to vulnerable groups such as children [1] Group 2: Corporate Acquisitions - Anta Group announced a cash acquisition of the German outdoor brand Jack Wolfskin for $290 million, expected to be completed by the end of Q2 or early Q3 of 2025 [2] - The acquisition aims to extend Anta's outdoor brand portfolio from high-end to a broader consumer base, enhancing its market position in the outdoor segment [2] - Prada plans to acquire the Italian fashion brand Versace for $1.375 billion, with Versace becoming a wholly-owned subsidiary while retaining its creative team [2] - The merger signifies a strategic move for traditional luxury brands to compete against giants like LVMH [2]