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Financial Data and Key Metrics Changes - Amer Sports reported a 30% growth in sales for Q3, with an adjusted operating margin increase of 130 basis points and adjusted EPS more than doubling [5][22][24] - Adjusted gross margin increased by 240 basis points to 57.9%, driven by favorable channel, geographic, product, and brand mix [23][35] - Adjusted net income for Q3 was $185 million, compared to $71 million in the prior year, with adjusted diluted EPS rising to $0.33 from $0.14 [24][40] Business Line Data and Key Metrics Changes - Technical apparel revenues increased by 31% to $683 million, led by Arc'teryx, with direct-to-consumer growth of 46% [24][25] - Outdoor performance segment revenues rose by 36% to $724 million, driven by strong performance in Salomon footwear and apparel [30][35] - Ball and racket segment revenue increased by 16% to $350 million, with significant growth in soft goods and racket sports [17][36] Market Data and Key Metrics Changes - Regional growth was led by Asia-Pacific, which increased by 54%, followed by China at 47%, EMEA at 23%, and the Americas at 18% [22][23] - Salomon footwear showed strong demand across all regions, particularly in Asia, with a notable increase in brand awareness among younger consumers [14][15][31] - The company experienced double-digit revenue growth across all four regions in Q3, with momentum continuing into Q4 [6][22] Company Strategy and Development Direction - Amer Sports aims to leverage its unique portfolio of premium brands to capture market share in the sports and outdoor sectors [7][8] - The company is focusing on expanding its direct-to-consumer channels and optimizing its retail footprint, particularly in Greater China and North America [26][29] - The strategy includes opening new flagship stores and enhancing brand presence in key metro markets [15][27][33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory, citing strong brand performance and market demand [7][20] - The company anticipates continued momentum into 2026, with revenue growth expected towards the high end of the low double-digit to mid-teens range [40][43] - Management addressed the impact of a recent incident in China, noting a temporary dip in sales but a subsequent recovery [8][46][48] Other Important Information - The company plans to open approximately 25 net new Arc'teryx stores for the full year, with a focus on North America [26][27] - Corporate expenses increased to $38 million from $23 million in the prior year, reflecting ongoing investments in growth [24] - The company is raising its full-year revenue, operating margin, and EPS expectations based on strong Q3 results [40][41] Q&A Session Summary Question: Impact of the fireworks incident on sales in China - Management noted that Arc'teryx's sales trends were softer at the beginning of Q4 but have since rebounded as weather cooled [46][47] Question: Confidence in guiding 2026 revenue growth - Management expressed confidence in achieving mid-teens growth in 2026 due to a solid foundation built in 2025 [50][51] Question: Update on Salomon's distribution and growth in the U.S. - Management highlighted the focus on building a strong presence in the U.S. market, with plans for more epicenter stores and strategic partnerships [58][64] Question: Long-term opportunity for Tennis 360 stores - Management discussed the growth of Tennis 360 stores in China and the U.S., emphasizing the potential for expansion in southern markets [73][75] Question: Margin guidance for next year - Management indicated that margin expansion will primarily be driven by gross margin improvements and strategic investments [79][80]