Investment Rating - The investment rating for the industry is "Positive" and is maintained [6] Core Insights - In FY2026Q1 (April 1, 2025 - June 30, 2025), the company achieved revenue of $1.13 billion, a year-on-year decrease of 4.2%, which aligns with market and company expectations [2][4] - The gross margin increased by 0.7 percentage points to 48.2%, primarily due to currency fluctuations, product pricing adjustments, and product mix optimization [2][4] Revenue Breakdown - By region, revenue for FY2026Q1 was as follows: North America -$670 million (-5.5%), EMEA -$249 million (+9.6%), Asia-Pacific -$163 million (-10.1%), and Latin America -$55 million (-15.3%) [5] - By channel, wholesale and DTC (Direct-to-Consumer) revenues were $649 million (-4.6%) and $463 million (-3.5%), respectively, with DTC impacted by a 12% decline in e-commerce due to intense competition in Asia-Pacific and North America [5] - By product category, revenue for apparel, footwear, and equipment was $747 million (-1.5%), $266 million (-14.3%), and $100 million (+8.1%), respectively, with casual wear and outdoor apparel negatively affecting overall apparel performance [5] Inventory and Cost Management - As of FY2026Q1, the company's inventory increased by 2% year-on-year to $1.14 billion, with a focus on strict inventory management and maintaining market position through full-price sales and discount control [8] - The expected tariff-related costs are projected to be $100 million, with strategies in place to mitigate these costs through supplier cost-sharing and selective pricing adjustments [8] Performance Guidance - For FY2026Q2, the company anticipates a revenue decline of 6%-7%, with expected gross margin decrease of 3.4-3.6 percentage points, and operating profit projected to be between a loss of $10 million to break-even [8]