Financial Data and Key Metrics Changes - The company reported first quarter revenues of EUR 402 million, representing an 11% increase on a reported basis and an 18% increase in constant currency, exceeding the full-year guidance of 13%-15% [12][15] - Adjusted net profit for the first quarter was EUR 49 million, up 47% year-over-year, with adjusted EPS of $0.27, a 50% increase from $0.18 a year ago [18][19] - Gross profit margin for the first quarter was 55.7%, down 460 basis points year-over-year, while adjusted gross profit margin was 57.4%, down 290 basis points [17] Business Line Data and Key Metrics Changes - B2B business grew 24% in constant currency, while DTC (Direct-to-Consumer) grew 12% [12][18] - The closed-toe share of revenue reached close to 60% during the first quarter, indicating strong sales in clogs [14] Market Data and Key Metrics Changes - The Americas segment grew 14% in constant currency, EMEA grew 17%, and APAC grew 37% in constant currency [16] - The company is under-penetrated in markets like France, Spain, the U.K., and the GCC, with significant growth potential in these regions [10] Company Strategy and Development Direction - The company aims for 13%-15% top-line growth in constant currency over the next three years, with a focus on maximizing profitability per pair while protecting brand equity [8][9] - The company plans to double its APAC revenue by 2028, steering growth at double the pace of other segments [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the brand's growth potential, citing a total addressable market that includes every human being [8] - The company anticipates significant headwinds from foreign exchange and tariffs in the second quarter, projecting a 700 basis point headwind to revenue growth [21][22] Other Important Information - The company plans to repurchase shares for a total consideration of $200 million during fiscal 2026, subject to market conditions [52][54] - The company ended the quarter with cash and cash equivalents of EUR 229 million and a net leverage of 1.7x [19][20] Q&A Session Summary Question: Drivers of durable demand momentum for the brand globally - Management highlighted a long runway for growth, with market penetration below 5% in established markets and strong order books for 2026 [27][28] Question: Allocation of inventory across channels and geographies - Management stated that inventory is allocated to the most profitable channels and regions to optimize brand strength and margin [32][33] Question: Seasonal progression of margins across quarters - Management indicated that Q1 and Q2 would experience significant FX headwinds, with expected margin pressure from tariffs [41][42] Question: SG&A leverage and operational efficiency - Management acknowledged the impact of tariffs and FX on margins but emphasized ongoing operational improvements and investments in D2C [45][46] Question: Product trends for the upcoming season - Management noted strong demand for elevated styles in both closed-toe and open-toe sandals, with a focus on higher price segments [47][48] Question: Balance sheet and cash usage - Management confirmed intentions to execute the $200 million share repurchase, emphasizing that the stock is undervalued [52][53] Question: Performance of own retail stores - Management reported high single-digit same-store sales growth and significant year-over-year growth in retail revenue [59][60]