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]