Market Overview - Pre-market indexes are showing positive movement after a period of volatility, particularly since the government shutdown began in early October [1] - Among major indexes, only the small-cap Russell 2000 has been positive over the past five trading days, but it remains negative for the past month [2] Labor Market Indicators - Challenger Job Cuts for October reached 153,704, marking a +183% increase month over month and +175% year over year, indicating the worst October for job layoffs since 2009 [3] - The Chicago Fed Labor Market Indicator shows an unchanged unemployment estimate at +4.36%, with a +40% probability that this figure may be higher [4] Q3 Earnings Results - ConocoPhillips (COP) reported a +15% earnings beat with $1.61 per share, but shares are down -10% year to date [5] - AstraZeneca (AZN) had a modest earnings beat of 5 cents, with shares up +3.5% in early trading, having gained nearly +24% year to date [5] - Ralph Lauren (RL) outperformed expectations with earnings of $3.79 per share, boosting shares by +1.9% and up +37% year to date [6] - Planet Fitness (PLNT) reported earnings of 80 cents per share, exceeding expectations, and is now positive year to date with a +15.3% gain [6] - TripAdvisor (TRIP) saw a +7.9% gain after an +11% earnings beat, indicating strong consumer demand for vacations [7] - Tapestry (TPR) posted earnings of $1.38 per share, exceeding estimates, but shares are down -9% due to projected revenue slowdowns [7] - Moderna (MRNA) outperformed expectations by +76.3% with a loss of -$0.51 per share, but shares are still down more than -30% year to date [8]

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The Stock Exchange of Hong Kong Limited and the Securities and Futures Commission take no responsibility for the contents of this Application Proof, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this Application Proof. Application Proof of Boxihe Outdoor Sports Group Co., Ltd. 伯 希 和 戶 外 運 動 集 團 股 份 有 限 公 司 (the ''Company'') The publication of this Appli ...

Market Overview - Pre-market indexes are showing positive movement after a period of volatility since the government shutdown began in early October [1] - Major indexes have seen slight gains, with the Dow up +0.10%, S&P 500 and Nasdaq both up +0.23%, and Russell 2000 up +0.24% [2] - Bond yields have increased, with the 10-year yield at +4.13% and the 2-year yield at +3.60% [2] Labor Market Indicators - Challenger Job Cuts for October reached 153,704, marking a +183% increase month over month and +175% year over year, indicating the worst October for job layoffs since 2009 [3] - The Chicago Fed Labor Market Indicator shows an unchanged unemployment estimate at +4.36%, with a +40% probability that this figure may be higher [4] Q3 Earnings Results - ConocoPhillips (COP) reported a +15% earnings beat at $1.61 per share, though shares are down -10% year to date [5] - AstraZeneca (AZN) had a modest earnings beat of 5 cents, with shares up +3.5% in early trading, and a year-to-date gain of nearly +24% [5] - Ralph Lauren (RL) outperformed expectations with earnings of $3.79 per share, leading to a +9.86% increase in shares, which are up +37% year to date [6] - Planet Fitness (PLNT) reported earnings of 80 cents per share, exceeding expectations, and shares are up +15.3% year to date [6] - TripAdvisor (TRIP) saw a +7.9% increase in shares following an earnings beat of +11% at 65 cents per share [7] - Tapestry (TPR) reported earnings of $1.38 per share, a +10.4% surprise, but shares are down -9% despite a +60% year-to-date gain [7] - Moderna (MRNA) exceeded expectations with a +76.3% earnings surprise, reporting a loss of -$0.51 per share, and shares are up +6.5% [8]

Core Insights - Ralph Lauren reported $2.01 billion in revenue for the quarter ended September 2025, marking a year-over-year increase of 16.5% and exceeding the Zacks Consensus Estimate of $1.9 billion by 6.04% [1] - The company's EPS for the same period was $3.79, up from $2.54 a year ago, representing a surprise of 9.86% compared to the consensus estimate of $3.45 [1] Revenue Performance - North America net revenues reached $832.4 million, surpassing the estimated $778.58 million, reflecting a year-over-year increase of 12.6% [4] - Other Licensing revenues were reported at $44.4 million, exceeding the average estimate of $40.27 million, with a year-over-year change of 9.9% [4] - Asia net revenues amounted to $445.6 million, above the estimated $436.3 million, showing a year-over-year increase of 17.2% [4] - Europe net revenues were $688.3 million, compared to the average estimate of $640.76 million, representing a year-over-year change of 21.6% [4] - Retail net revenues totaled $1.26 billion, exceeding the average estimate of $1.22 billion, with a year-over-year increase of 15.3% [4] - Wholesale net revenues were reported at $701.8 million, surpassing the estimated $633.44 million, reflecting a year-over-year increase of 19.1% [4] Stock Performance - Ralph Lauren shares have returned -3.7% over the past month, while the Zacks S&P 500 composite has changed by +1.3% [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

Financial Data and Key Metrics Changes - The company's second quarter revenue growth was 14%, exceeding the high single-digit outlook, with total adjusted gross margin expanding 70 basis points to 67.7% [21][22] - Adjusted operating margin increased 210 basis points to 13.5%, with adjusted operating income rising by 34% [22][23] - The company ended the period with $1.6 billion in cash and short-term investments and $1.2 billion in total debt [28] Business Line Data and Key Metrics Changes - Core product sales grew mid-teens, driven by strong performance in cotton cable knit and seasonal styles [12][13] - Women's apparel and high-potential categories like handbags saw strong double-digit growth, outpacing total company growth [12][14] - Digital ecosystem sales grew double digits, reflecting balanced growth across regions [21] Market Data and Key Metrics Changes - Asia led growth with sales up mid-teens, particularly in China, which grew more than 30% [16][25] - North America revenue increased 13%, with retail comps also up 13% [23] - Europe revenue increased 15%, driven by strong performance across retail and wholesale channels [24][25] Company Strategy and Development Direction - The company introduced the "Next Great Chapter Drive Plan," aiming to capture a larger share of the $400 billion premium and luxury market [4][5] - Strategic pillars include elevating the lifestyle brand, driving core products, and expanding in key cities [5][15] - The company is focused on investing in brand-building activations and enhancing consumer engagement through technology [17][41] Management's Comments on Operating Environment and Future Outlook - Management remains cautious about the second half of the year due to potential consumer headwinds and macroeconomic volatility [7][21] - Despite this caution, the company raised its full-year guidance based on strong first-half performance [7][29] - The company expects to mitigate tariff impacts and maintain gross margin expansion in the long term [30][31] Other Important Information - The company opened 38 new owned and partner stores globally and plans to open a sixth restaurant in London by 2028 [16] - The company has repurchased $313 million in shares this fiscal year to date, returning approximately $420 million to shareholders [27] Q&A Session Summary Question: Updated outlook for consumer health and brand awareness - Management noted strong momentum and resilience in consumer behavior, with no significant changes observed [40] - Global brand awareness remains a focus, particularly in markets like Germany and China, where opportunities for growth exist [42][44] Question: Pricing strategy and tariff mitigation - The company continues to leverage pricing as a growth driver, with AUR growth expected to remain strong [48] - Management anticipates Q4 to be the most impacted by tariffs but expects to mitigate these pressures over time [49][51] Question: Engagement with North American value-oriented consumers - The company plans to provide a compelling price-value proposition while maintaining brand integrity [56][59] - Marketing efforts are focused on better segmentation to appeal to various consumer groups [61] Question: North America wholesale trajectory - Management expressed confidence in the underlying quality growth of the wholesale business, despite planned reductions in off-price sales [76][78]

Financial Data and Key Metrics Changes - The company's second quarter revenue growth was 14%, exceeding the high single-digit outlook, with total adjusted gross margin expanding 70 basis points to 67.7% [21][22] - Adjusted operating margin increased 210 basis points to 13.5%, with adjusted operating income rising 34% [22][23] - The company ended the period with $1.6 billion in cash and short-term investments and $1.2 billion in total debt [28] Business Line Data and Key Metrics Changes - Core product sales grew mid-teens, driven by strong performance in cotton cable knit and seasonal Oxford shirts [12] - Women's apparel and high-potential categories like handbags saw strong double-digit growth, outpacing total company growth [12][14] - Digital ecosystem sales grew double digits, reflecting balanced growth across regions [21] Market Data and Key Metrics Changes - Asia and Europe led performance with sales increasing 16% and 15% respectively, while North America sales grew 13% [21] - China sales increased more than 30%, driven by strong consumer response to brand-building activities [16][25] - North America retail comps were up 13%, with digital comps growing 15% [23] Company Strategy and Development Direction - The company introduced the Next Great Chapter Drive Plan, aiming to capture a larger share of the $400 billion premium and luxury market [4][5] - The strategy focuses on elevating the lifestyle brand, driving core products, and expanding in key cities [5][15] - The company plans to continue investing in brand activations and technology to enhance consumer engagement [17][18] Management's Comments on Operating Environment and Future Outlook - Management remains cautious about the second half of the year due to potential consumer headwinds and general volatility [7] - Despite macroeconomic uncertainties, the company is confident in capturing market share opportunities [7][29] - The full-year revenue growth outlook was raised to approximately 5%-7%, reflecting better-than-expected performance in the first half [28][29] Other Important Information - The company added 1.5 million new consumers to its DTC businesses, driven by digital and full-price store customers [10] - The company plans to exit 90-100 wholesale doors in fiscal 2026, with approximately half related to Hudson's Bay [24] - The company launched an AI styling tool, Ask Ralph, developed with Microsoft, to enhance consumer shopping experience [17] Q&A Session Summary Question: Updated outlook for consumer health and brand awareness - Management noted strong momentum in business and no significant changes in consumer behavior, with a focus on attracting full-price customers [40][42] Question: Pricing strategy and tariff mitigation - Management discussed the sustained AUR growth driven by brand investment and pricing actions, with expectations for continued gross margin expansion despite tariff pressures [48][50] Question: Engagement strategies for North America value-oriented consumers - The company emphasized flexibility in pricing and a compelling value proposition to appeal to value-sensitive customers during the holiday season [56][58] Question: North America wholesale trajectory - Management indicated healthy growth in North America wholesale, with expectations for some pressure in the second half due to planned reductions in off-price sales [76][78] Question: Performance in outlet versus full-price channels - Consistent growth was observed across full-price and outlet stores, with a focus on expanding full-price locations while consolidating outlet presence [80]

Financial Data and Key Metrics Changes - Consolidated net sales for Solo Brands were $53 million, down 43.7% from the prior year, largely due to softer retail sell-in, particularly within Solo Stove [9][10] - Adjusted gross profit was $32.2 million, representing a 60.6% adjusted gross profit margin compared to 61.9% last year, reflecting a modest decline mainly due to inventory issues [10] - GAAP net loss was $22.9 million, while adjusted net loss for the quarter was $11.9 million, with adjusted EBITDA at negative $5.1 million, or negative 9.6% of net sales [11][12] Business Line Data and Key Metrics Changes - Solo Stove segment net sales were $30.8 million, down 48.1% from the prior year, primarily due to retail partners managing elevated on-hand inventory [9][10] - Chubbies segment sales were $16.5 million, down 16%, mainly due to the timing of retail replenishment compared to last year, while DTC sales were essentially flat year over year [9][10] Market Data and Key Metrics Changes - The sales environment was challenging, reflecting continued pressure on consumer demand while working through excess retailer inventory [4] - Retail sell-in remained soft, but sell-through trends were more stable, indicating a potential recovery in consumer demand [10] Company Strategy and Development Direction - The company is focused on profitability first, simplifying the organization, and taking permanent costs out, with SG&A expenses down 35.4% year over year [6][12] - The company is committed to launching innovative new products and maintaining pricing integrity to support long-term brand health and profitability [5][10] - A disciplined approach to capital allocation is being taken, with growth investments focused on new product innovation within a range of $2-$3 million annually [14] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging revenue performance in Q3 and emphasized the need to align the operating model with current demand [15] - There is optimism regarding the initial consumer response to recently launched products, with expectations for improved sales trends in Q4 [15][16] - The company is rebuilding relationships with retail partners and expects to see a more normal cadence of reordering from retailers moving forward [22] Other Important Information - The company ended the quarter with $16.3 million in cash and cash equivalents, with no outstanding borrowings on the revolver [12] - The company is transitioning to a more balanced, diversified supply chain footprint to adapt to market conditions and tariffs [13] Q&A Session Summary Question: Can you expand on the new product rollout and online sales? - Management noted that initial responses to the Summit 24 and Infinity Flame products have been strong, with over 70% of customers being new [19][20] Question: Are you nearing completion of destocking with retailers? - Management indicated that they believe they have hit the trough in Q3 and expect to see a more normal cadence of reordering from retailers moving forward [21][22]

Financial Data and Key Metrics Changes - Revenue for Q2 was CAD 273 million, a 2% increase from CAD 268 million in Q2 of the previous year, but down 1% on a constant currency basis [13] - Adjusted net loss attributable to shareholders was CAD 13 million, or CAD 0.14 per share, compared to a profit of CAD 5 million, or CAD 0.05 per share in Q2 of fiscal 2025 [21] - Gross margin expanded 110 basis points year-over-year to 62.4%, primarily due to a favorable channel mix [18] Business Line Data and Key Metrics Changes - Direct-to-consumer (D2C) revenue increased by 21%, with comparable sales growth of 10%, led by North America and APAC [14] - Wholesale revenue decreased by 5%, in line with expectations, as the company focuses on elevating brand positioning [15] - Revenue from other channels totaled CAD 10 million, down from CAD 27 million last year, reflecting a pullback in activities [16] Market Data and Key Metrics Changes - In North America, D2C comparable sales grew in the low teens, but overall regional revenue was down 8% year-over-year due to a shift in channel mix [16] - APAC revenue increased by 20%, driven by growth in both D2C and wholesale channels, with mainland China leading the way [17] - EMEA revenue was down 7% year-over-year, with strong performance on the continent but challenges in the U.K. market [17] Company Strategy and Development Direction - The company is focused on expanding product offerings to enhance year-round relevance, with new products driving notable growth in the D2C channel [5] - Marketing investments are aimed at building brand heat and cultural relevance, with new collaborations and campaigns enhancing consumer engagement [6] - The company is strategically developing channels to deliver an elevated experience, with a focus on disciplined retail execution and store network expansion [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the direction and foundation for long-term growth, highlighting strong D2C performance and positive indicators for the second half of the year [10] - The company is entering its peak season well-positioned, with a clear focus on translating progress into sustained profitable growth and stronger margins [10] - Management acknowledged that while SG&A expenses are higher due to investments, they are focused on operating margin expansion moving forward [13] Other Important Information - Inventory was CAD 461 million, down 3% from last year, reflecting stronger consumer demand and tighter inventory management [21] - The company successfully amended its term loan, extending the maturity until 2032, which solidified its capital structure [22] Q&A Session Summary Question: What initiatives are prioritized to sustain DTC comp sales momentum? - Management highlighted better staff training, sharper channel execution, and increased product newness as key factors driving DTC success [26][27] Question: Any thoughts on U.K. softness or other cautious regions? - Management noted that the U.K. softness is consistent with trends seen across many brands, while continental Europe remains strong [31] Question: Can you discuss the confidence in sustaining comp momentum across regions? - Management expressed encouragement from consistent performance across markets and emphasized the importance of new product offerings [35] Question: What factors will drive changes in margin performance? - Management indicated that positive comps, effective investment returns, and disciplined cost management are critical for margin improvement [39]

Financial Data and Key Metrics Changes - Revenue declined 5% to $1.3 billion, slightly better than the outlook shared in August [30] - Gross margin declined 250 basis points year-over-year to 47.3%, primarily due to supply chain headwinds and unfavorable channel mix [33] - Adjusted operating income was $53 million, outperforming expectations [36] - Reported diluted loss per share was $0.04, with adjusted diluted earnings per share also at $0.04 [36] Business Line Data and Key Metrics Changes - North America revenue decreased 8%, primarily due to a decline in full-price wholesale and lower e-commerce sales [31] - EMEA revenue increased 12%, driven by full-price wholesale and strong growth in the DTC channel [31] - APAC revenue declined 14%, mainly driven by the wholesale business [31] - Apparel revenue declined 1%, while footwear revenue declined 16% due to challenging consumer demand [32] Market Data and Key Metrics Changes - Latin America revenue increased 15%, with strong growth across wholesale and DTC [31] - Direct-to-consumer revenue declined 2%, primarily due to an 8% decrease in e-commerce sales [32] - Licensing revenues increased 17%, driven by strength in the international business [32] Company Strategy and Development Direction - The company is focused on a turnaround strategy that emphasizes product innovation, storytelling, and brand positioning [7][28] - A streamlined assortment strategy has been implemented, cutting 25% of SKUs to enhance focus on key products [9] - The company aims to build on successful franchises and return to growth in upcoming seasons [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the brand's potential and the importance of storytelling to connect with consumers [26][49] - The company anticipates a decline in full-year revenue of 4-5% for fiscal 2026, with expectations for stabilization in North America by fiscal 2027 [37][39] - Management highlighted the importance of maintaining high standards and building trust through performance [7] Other Important Information - A leadership transition is underway, with Reza Taghavi set to join as CFO in February 2026 [5] - The company is addressing structural challenges in APAC and aims to stabilize the business for growth in fiscal 2027 [24][25] Q&A Session Summary Question: What makes you confident that North America will see stabilization before the end of fiscal 2027? - Stabilization means getting the business to a healthy version, with a focus on structural elements, product elevation, and storytelling opportunities [44][45] Question: Can you elaborate on NeoLast and its significance? - NeoLast is a sustainable fiber that replaces Lycra, showcasing innovation in upcoming products [51][52] Question: What is being done to enhance the marketing voice for track and field? - The company is leveraging partnerships and focusing on authentic storytelling to enhance its presence in the running category [54][58] Question: Can you discuss the footwear business challenges? - The company is committed to footwear and is transitioning to a strategy that emphasizes aspiration and innovation rather than relying solely on brand heat [63]