Financial Data and Key Metrics Changes - For the third quarter, the company reported revenue of $1.96 billion, a 7% increase compared to the prior year [9][30] - Gross margin for the quarter was 59.8%, better than expected due to lower-than-anticipated tariff impacts and effective pricing actions [31] - Diluted earnings per share reached a record $3.33, reflecting an 11% increase year-over-year [10][32] Business Line Data and Key Metrics Changes - HOKA revenue increased by 18% to $629 million, contributing $98 million in incremental revenue [30] - UGG revenue grew by 5% to a record $1.3 billion, adding $61 million in incremental revenue [30] - Direct-to-consumer (DTC) revenue for UGG increased by 5%, while wholesale revenue grew by 4% [13] Market Data and Key Metrics Changes - International markets saw a 15% revenue increase for HOKA and UGG combined, while the U.S. market experienced a 5% increase [9] - HOKA's market share in the U.S. road running category above $140 significantly increased, indicating strong brand performance [21] Company Strategy and Development Direction - The company aims for continued international expansion and brand performance, focusing on consumer demand and product development [5][28] - Strategic initiatives include enhancing DTC channels and maintaining a balanced approach between DTC and wholesale [20][28] - The company is committed to returning value to shareholders through a share repurchase program, with over $1 billion expected to be repurchased in fiscal year 2026 [34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining growth momentum for both UGG and HOKA, driven by strong consumer demand and effective marketplace management [42] - The company raised its full-year revenue expectations to a range of $5.4 billion to $5.425 billion, reflecting strong brand performance [34] Other Important Information - The company repurchased approximately $349 million worth of shares in the third quarter, with a total of about $1.8 billion remaining authorized for share repurchases [33] - The company has a disciplined approach to managing the global marketplace to sustain strong full-price sales [39] Q&A Session Summary Question: What has driven the improvement in HOKA's business? - Management noted that spacing out key franchise launches and tightening inventories contributed to the improvement, with confidence in sustainability going forward [47][49] Question: Can you elaborate on the lifestyle segment's development? - The company is focusing on enhancing capabilities in innovation and design, with positive early reads on new lifestyle products [52] Question: How should we think about UGG's channel strategy moving forward? - Management indicated a balanced growth strategy across all channels, with continued segmentation and differentiation expected [57][58] Question: What is the outlook for the U.S. consumer? - Management remains cautious but optimistic, noting strong brand performance despite economic uncertainties [83][84] Question: How is the DTC business performing for HOKA and UGG? - Both brands performed well, with sequential improvements noted in the U.S. DTC business [90][91]

Financial Data and Key Metrics Changes - The company reported a revenue increase of 9% in the second quarter, with total revenue for the first half growing by 12% [7][26] - Diluted earnings per share (EPS) increased by 14% in the second quarter and by 17% in the first half [7][30] - Gross margin for the second quarter was 56.2%, up 30 basis points from 55.9% in the previous year [28][29] Business Line Data and Key Metrics Changes - HOKA revenue increased by 15% in the first half, driven by updates to major road-running franchises and strong international performance [10][20] - UGG revenue rose by 12% in the first half, with men's footwear growing at twice the rate of the overall brand [20][21] - HOKA's wholesale channel grew by 13% in the second quarter, while DTC (Direct-to-Consumer) grew by 8% [26][27] Market Data and Key Metrics Changes - International regions were the primary growth drivers for both HOKA and UGG, with UGG and HOKA revenue in international markets increasing by 38% year-over-year [7][20] - HOKA gained two points of market share in the U.S. road-running category and outpaced competition in Europe [11][15] Company Strategy and Development Direction - The company aims for continued international expansion and a balanced approach between DTC and wholesale channels, targeting a 50/50 split [9][18] - The focus remains on building brand awareness and consumer engagement through strategic marketing initiatives [8][19] - The company is committed to sustainable growth and long-term value creation for both HOKA and UGG brands [36][37] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding consumer sentiment in the U.S. due to macroeconomic pressures, but remains optimistic about brand positioning for the holiday season [40][43] - The company anticipates a more challenging environment in the second half due to tariff impacts and shifts in consumer preferences [34][35] Other Important Information - The company repurchased approximately $282 million worth of shares during the second quarter, with $2.2 billion remaining authorized for share repurchases [31] - The guidance for fiscal year 2026 includes total revenue expectations of approximately $5.35 billion, with HOKA projected to grow in the low teens and UGG in the low to mid-single digits [32][33] Q&A Session Summary Question: Guidance reinstatement and growth expectations for HOKA and UGG - Management indicated that the guidance reflects a cautious outlook due to anticipated consumer behavior changes and tariff impacts, but remains confident in brand strength [40][42][43] Question: DTC and wholesale channel dynamics - Management explained that while wholesale growth has been strong, DTC is expected to improve in the back half of the year as inventory dynamics normalize [56][57] Question: Long-term margin structure and tariff impacts - Management acknowledged that while tariff pressures will continue, they are committed to maintaining strong operating margins above 20% in the long term [58][60] Question: Price actions and consumer demand - Management noted that price increases have not negatively impacted demand, with strong sell-throughs for key styles [68][70] Question: Order book health and consumer behavior - Management expressed satisfaction with the order book for spring/summer 2026 and noted that consumer behavior has shown deeper valleys and higher peaks due to uncertainty [80][84]