Financial Data and Key Metrics Changes - The company reported a net sales decline of 1.3% for Q3, an improvement from a 5.2% decline in the first half of the year [37][38] - Gross margin improved to 59.6%, up 30 basis points year-over-year and 60 basis points from the previous quarter [7][46] - Adjusted EBITDA for the quarter was $143 million, with an adjusted EBITDA margin of 16.3% [38][39] - Adjusted net income was reported at $64 million [39] Business Line Data and Key Metrics Changes - Direct-to-consumer (D2C) sales increased by 3.5% period over period, with e-commerce sales up over 10% [4][5] - Non-travel sales grew by almost 7% in the quarter, representing a significant opportunity for the company [6][25] - Wholesale channel net sales declined by 4.5%, with traditional brick-and-mortar sales down around 7% [5][46] Market Data and Key Metrics Changes - North America saw a decline of 10% in net sales, primarily due to cautious purchasing by wholesale customers [11][40] - Asia's net sales were roughly flat, with TUMI showing a significant improvement of 7.1% in Q3 [42][40] - Europe reported a 1% increase in sales, while Latin America grew by 1.2%, with potential double-digit growth if not for issues in Mexico [41][45] Company Strategy and Development Direction - The company is focused on capitalizing on growth in travel and expanding its non-travel business, which has shown a 14% CAGR from 2020 to 2025 [25][19] - There is a strong emphasis on product innovation and enhancing advertising efforts to attract new customers [15][18] - The company plans to complete a dual listing in the U.S. by 2026 to enhance shareholder value [63][64] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in long-term growth despite current macroeconomic uncertainties and inflationary pressures [59][60] - Positive trends in constant currency sales growth were noted, with expectations for sequential improvement in Q4 [60][62] - The company is well-positioned to maintain strong gross margins and leverage its scale advantages [62][63] Other Important Information - The company has successfully refinanced its corporate debt, extending maturities and improving liquidity [55][56] - The DTC sales mix has increased to 42%, with e-commerce channels growing significantly [50][52] - The company has opened 43 net new stores over the past year, impacting G&A expenses [47][39] Q&A Session Summary Question: What are the long-term growth prospects for the company? - The company expects to drive medium and long-term sales growth supported by strong product launches and advertising campaigns, despite current economic uncertainties [59][60] Question: How is the company managing its gross margins amid tariff pressures? - The company has successfully managed gross margins through supplier partnerships and product re-engineering, maintaining a strong gross margin profile [62][46] Question: What is the company's strategy regarding the dual listing? - The company is preparing for a dual listing in the U.S. by 2026, believing it will enhance shareholder value [63][64]