Financial Data and Key Metrics Changes - Third quarter net sales reached $239.1 million, up 7.5% from $222.5 million in the same quarter last year [10] - Comparable sales grew 7.6%, marking the sixth consecutive quarter of positive growth [2][11] - Earnings per share for the quarter was $0.55, significantly above the guidance of $0.29 [3][13] - Gross profit increased to $89.8 million, a 14.7% rise compared to $78.3 million last year, with gross margin improving to 37.6% from 35.2% [11][12] Business Line Data and Key Metrics Changes - North America net sales were $202.8 million, an increase of 8.6% year-over-year, with comparable sales up 10% [10][11] - Women's and hard goods categories saw strong double-digit growth, while men's and accessories experienced low to mid-single digit gains [3][11] - Footwear was the only category with negative comparable sales [11] Market Data and Key Metrics Changes - International net sales, including Europe and Australia, were $36.3 million, up 1.7% year-over-year, with European comparable sales down low single digits but showing improvement [10][12] - North America comparable sales for the 31-day period ended December 2, 2025, increased 7.8%, while international comparable sales increased 2.6% [16] Company Strategy and Development Direction - The company focuses on three strategic priorities: driving revenue growth through customer-focused initiatives, optimizing profitability, and managing volatility while funding strategic expansion [4][8] - The introduction of over 100 new and emerging brands annually has become a significant part of the sales mix, validating the merchandising strategy [5] - The company remains committed to premium pricing and disciplined expense management in international markets, particularly in Europe [7][8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in closing the year with strong holiday results, despite macroeconomic uncertainties [4][8] - The company anticipates total sales growth of 4% to 6% for the fourth quarter, with comparable sales expected to be in the 2.5% to 4% range [19][20] - Management noted that while North America shows strong momentum, international operations face challenges [21] Other Important Information - The company ended the quarter with $104.5 million in cash and no debt, reflecting a strong financial position [14] - Inventory levels decreased by 3.5% year-over-year, indicating effective inventory management [15] Q&A Session Summary Question: What is driving the strong performance in hard goods? - Management indicated that the strong performance is primarily driven by the Skate category, with improvements seen in North America, Europe, and Australia, marking a reversal of a multi-year negative trend [25][27] Question: What are the comparable sales assumptions for the fourth quarter? - Management expects a slight deceleration in North America compared to November, while anticipating a negative comp in Europe due to anniversary promotional trends [29][32] Question: What is the current penetration of private label products? - Private label penetration is currently just under 31% of total product sales, up approximately 200 basis points year-over-year [42][43] Question: Who is the company taking market share from in North America? - Management believes they are primarily focused on their core customer base, with gains driven by executing on trend and increasing average unit retail [52][56]

Financial Data and Key Metrics Changes - The company reported a 2.2% increase in service revenue, primarily driven by mobile, with modest growth in fixed services [8][28] - Statutory EBITDA increased by 1%, reaching $618 million, while pro forma EBITDA was $786 million, reflecting a growth of 0.9% compared to the previous year [31][37] - Net profit after tax (NPAT) rose significantly, reaching $32 million, attributed to improved operating performance and lower financing costs [31][9] - Operating free cash flow increased by 23.6% to $246 million, driven by positive working capital movements and lower capital expenditures [32][33] Business Line Data and Key Metrics Changes - Mobile subscriber base grew by 100,000, with strong growth from digital-first subscription brands TPG and Felix, despite a decline in international arrivals [4][10] - Fixed service revenue saw a slight increase of under 1%, with gross margin impacted by ongoing NBN input costs [19][20] - The average revenue per user (ARPU) for postpaid increased by 14.5% over three years, reaching $48.51, while total ARPU rose by 7.8% [12][11] Market Data and Key Metrics Changes - The mobile market remains competitive, with the company gaining market share in both metropolitan and regional areas [4][10] - The NBN market is challenging, with intense competition affecting subscriber numbers for larger incumbents [19][20] - Fixed wireless subscribers now represent 14% of total fixed subscribers, with the company maintaining its position as the number one player in this market [19][20] Company Strategy and Development Direction - The company aims to enhance customer well-being through a three-year roadmap, focusing on vulnerable customers and improving access to essential connectivity [22][23] - A capital management plan was announced, including a $3 billion cash return to shareholders and a targeted debt repayment of up to $2.4 billion [6][48] - The company is committed to increasing dividends in line with sustainable growth in profits and cash flow over time [5][48] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about cash flow momentum and the potential for continued growth, despite a moderate expectation for the second half of the year [63][64] - The government’s revitalized student visa program for 2026 is expected to positively impact the company’s mobile business [14][19] - Management acknowledged the challenges posed by intense competition but remains confident in the company's ability to adapt and grow [19][80] Other Important Information - The company has taken steps to address a recent cyber incident affecting iINET, ensuring that customer data was not significantly compromised [6][7] - The introduction of next-generation WiFi 7 modems is expected to enhance customer experience and attract new subscribers [21][20] Q&A Session Summary Question: Mobile subscriber growth expectations for the second half - Management indicated that while they do not provide specific guidance, they are optimistic about maintaining momentum, albeit at a more moderate pace compared to the first half [63][64] Question: ARPU for digital-first brands - Management confirmed that ARPU for digital-first brands is likely in the mid-twenties, with consistent growth across different brands [64][65] Question: Impact of tier two operators on pricing - Management noted that while tier two operators are gaining market share, their wholesale agreements are not a significant part of the company's strategy at this time [66][67] Question: Margin differential between digital brands and traditional prepaid - Management highlighted that the margin differential is significant, with digital brands benefiting from lower operational costs due to their online nature [72][73] Question: LEOSAT opportunity and monetization - Management expressed interest in LEOSAT for providing geographical coverage but noted that the timing and monetization strategies are still uncertain [76][78] Question: Fixed consumer business subscriber trends - Management acknowledged the competitive landscape but remains focused on profitability and improving service offerings to retain subscribers [81][80]