Financial Data and Key Metrics Changes - Amur Sports reported a 23% sales growth in Q2 2025, or 22% excluding currency impact, with an adjusted operating margin increase of 260 basis points [6][31][34] - Adjusted net income for Q2 was $36 million, compared to $25 million in the prior year, with adjusted diluted earnings per share rising to $0.06 from $0.05 [35][36] Business Line Data and Key Metrics Changes - Technical Apparel revenues increased by 23% to $509 million, driven by a 31% expansion in direct-to-consumer (D2C) sales [36][37] - Outdoor Performance segment saw revenues rise by 35% to $414 million, with D2C growing 63% [39] - Ball and Racket segment revenue increased by 11% to $314 million, supported by strong performance in racket sports and soft goods [42] Market Data and Key Metrics Changes - Asia Pacific region led growth with a 45% increase, followed by China at 42%, EMEA at 18%, and The Americas at 6% [32] - The Americas' growth deceleration was attributed to normalizing growth in the ball and racket segment and a tougher comparison due to shipment shifts [32] Company Strategy and Development Direction - The company aims to optimize its retail footprint in Greater China, focusing on high-quality locations rather than rapid expansion [13][14] - Amur Sports is confident in its ability to manage through tariff scenarios due to its premium brands and pricing power [7][29] - The company plans to open approximately 25 net new stores globally in 2025, with a focus on North America [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory, citing strong brand momentum and a unique portfolio of premium brands [5][8] - The company raised its full-year revenue growth guidance from 15%-17% to 20%-21%, reflecting strong Q2 performance and ongoing momentum [49][50] Other Important Information - The company received $19 million in government grants, benefiting its adjusted operating margin by approximately 150 basis points in Q2 [34] - Amur Sports ended the quarter with $640 million in net debt, maintaining a healthy balance sheet to navigate external uncertainties [45] Q&A Session Summary Question: Can you elaborate on the momentum in the third quarter and the growth drivers for Solomon? - Management noted strong Q2 results and continued momentum into Q3, particularly for Solomon footwear, driven by new product introductions and a unique outdoor sneaker category [56][57] Question: What are the next growth levers for the Solomon brand? - Management highlighted the strong growth pattern in Solomon, particularly in China and Asia Pacific, and plans to open additional stores in the U.S. [62][63] Question: What type of price increases are being implemented to mitigate tariffs? - Management indicated that while Wilson has seen approximately 10% price increases, Solomon and Arcterix have not yet needed to raise prices due to their pricing flexibility [69][70] Question: How are full-price stores performing compared to outlet stores? - Full-price stores are performing robustly, with a mid-single-digit drag from outlet sales declines, indicating a shift towards a healthier full-price business [73][74] Question: What is the outlook for the women's business at Arcterix? - The women's business saw over 30% revenue growth in Q2, with specific models performing exceptionally well, indicating a strong product strategy [84][85]

Financial Data and Key Metrics Changes - Amherst Sports reported a 23% sales growth in Q1 2025, or 26% when excluding currency effects, with adjusted operating margin expanding by nearly 500 basis points to 15.8% [5][31][34] - Adjusted net income increased to $148 million from $50 million in the prior year, with adjusted diluted EPS rising to $0.27 from $0.11 [36][34] - Adjusted gross margin improved by 330 basis points to 58% due to favorable channel, geographic, and product mix [33][34] Business Line Data and Key Metrics Changes - Technical Apparel revenues increased by 28% to $664 million, driven by strong D2C growth and a 19% omni-channel comp [36][37] - Outdoor Performance segment saw revenues rise by 25% to $502 million, with D2C channel growth of 68% [38][39] - Ball and Racket segment revenue increased by 12% to $306 million, supported by strong performance in soft goods and racket sports [42][43] Market Data and Key Metrics Changes - Asia Pacific led regional growth with a 49% increase, followed by China at 43%, while EMEA and The Americas both grew by 12% [31][32] - Solomon sneakers surpassed $1 billion in sales but still represent a small share of the $180 billion global sneaker market [21][80] - Direct-to-consumer sales grew by 39%, indicating strong consumer engagement and brand momentum [31][34] Company Strategy and Development Direction - The company aims to optimize its store network, focusing on high-quality locations rather than rapid expansion, particularly in Greater China [12][13] - Emphasis on premium brands with pricing power and technical innovation to capture growth in the outdoor and sports segments [7][8] - Plans to open approximately 25 net new Arcterix stores globally in 2025, while also closing less productive locations [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating macro uncertainties related to U.S. tariffs, citing a strong brand portfolio and pricing power [6][30] - The company raised its full-year revenue growth expectations from 13% to 15%-17%, reflecting strong Q1 performance and ongoing momentum [47][51] - Management highlighted the potential for Solomon sneakers to double sales over the next five years, supported by strong product and market positioning [80] Other Important Information - The company ended the quarter with $515 million in net debt, down from $591 million, indicating improved financial health [44] - Operating cash flow for Q1 was $164 million, with expectations for solid growth throughout 2025 [45] - The company is maintaining its adjusted gross margin expectations at 56.5% to 57% for the full year [53] Q&A Session Summary Question: Can you elaborate on the competitive advantages and momentum at Solomon? - Management highlighted the unique portfolio of brands and strong demand for Solomon's modern outdoor sneakers, particularly among younger female consumers [60][62] Question: Is the growth momentum at Solomon sustainable? - Management expressed confidence in the sustainability of growth, raising guidance for the full year and noting strong performance in key regions [72][75] Question: What is the strategy behind closing partner stores in China? - The strategy focuses on elevating brand execution by moving to better locations that represent the premium nature of the brand, expanding square footage [96]