Financial Data and Key Metrics Changes - Global revenue increased by 27%, driven by contributions from Helly Hansen [14] - Adjusted earnings per share (EPS) was $1.44, a 5% increase compared to the prior year [19] - Adjusted gross margin expanded by 80 basis points to 45.8% [18] Business Line Data and Key Metrics Changes - Helly Hansen's revenue grew by 11%, with strong performance across both sport and workwear [17] - Wrangler's global revenue increased by 1%, with a 12% growth in digital sales [14][8] - Lee's revenue declined by 9%, primarily due to proactive measures in China [10] Market Data and Key Metrics Changes - U.S. revenue for Wrangler increased by 1%, driven by an 11% growth in direct-to-consumer (D2C) sales [15] - International revenue for Wrangler increased by 2%, supported by a 19% growth in digital [16] - Lee's international revenue decreased by 9%, with declines in wholesale offsetting mid-single-digit growth in brick-and-mortar stores [16] Company Strategy and Development Direction - The company is focused on accelerating growth through product differentiation and expanding brand awareness, particularly for Helly Hansen in the U.S. [5][6] - Plans to double operating margin from high single digits to mid-teens through gross margin expansion and SG&A benefits [7] - Continued investment in demand creation and technology to support growth initiatives [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the 2025 plan, citing strong fundamentals and operational execution [12][26] - The company raised its full-year revenue, gross margin, earnings, and cash flow outlook based on year-to-date performance [14] - Management acknowledged a dynamic environment but emphasized proactive initiatives to offset market headwinds [12] Other Important Information - The company made a voluntary $25 million debt repayment in Q3 and plans to reduce debt by an additional $185 million in Q4 [11][21] - The board declared a quarterly cash dividend of $0.53 per share, a 2% increase [22] - Adjusted return on invested capital improved to 23% from 22% in the previous quarter [22] Q&A Session Summary Question: Clarification on Wrangler US wholesale growth - Management confirmed that excluding the timing shift, Wrangler's revenue increased at a mid-single-digit rate [28] Question: Drivers of Helly Hansen's revenue growth - Management noted that Helly Hansen is thriving within the company’s ecosystem, with strong performance across various markets [30][31] Question: Inventory growth concerns - Management explained that the inventory increase was due to strategic investments and expected to normalize in Q4 [34] Question: Pricing strategy and competitive landscape - Management stated that pricing adjustments were made to combat tariff impacts and were carefully planned in collaboration with retail partners [36] Question: Update on Project Genius savings - Management indicated that approximately $50 million of gross savings from Project Genius are embedded in the current outlook, with expectations for significant scaling in 2026 [57] Question: Lee's business in China - Management expressed confidence in the long-term opportunity in China, highlighting improvements in strategy and leadership [59][61]