Q2 2025 Financial Performance - Adjusted net sales decreased by 4% from $464 million in Q2 2024 to $446 million in Q2 2025[75] - Coolers & Equipment adjusted net sales decreased by 3% from $206 million to $201 million[77] - Drinkware adjusted net sales decreased by 4% from $247 million to $236 million[79] - Wholesale adjusted net sales decreased by 7% from $213 million to $197 million, while Direct-to-Consumer adjusted net sales decreased by 1% from $250 million to $249 million[81] - Adjusted gross profit decreased by 4% from $268 million to $258 million, with an adjusted gross margin increase of 10 bps from 57.7% to 57.8%[83] - Adjusted operating income decreased by 9% from $80 million to $73 million, with an adjusted operating margin decrease from 17.3% to 16.4%[85] - Adjusted SG&A expenses decreased by 2% from $188 million to $184 million, with an adjusted SG&A as a percentage of adjusted net sales increase from 40.5% to 41.3%[87] - Adjusted EPS decreased by 6% from $0.70 to $0.66, including a $0.07 per share impact from higher net tariff costs[88] Strategic Highlights - Expanded customer base through a strategic partnership with Fanatics, enhancing presence in sports licensing with custom NFL, MLB, NHL, and NCAA offerings[9] - Launched the all-weather Cayo backpack in late Q2 2025, exceeding initial expectations[9] - DTC sales decreased 1% YoY during Q2 2025, with growth in Amazon and Corporate Sales offset by softer US Ecomm demand[10] - Wholesale launch in Japan in late Q2 expanded distribution from 17 to over 270 doors and established a digital presence[10] FY 2025 Outlook (as of 8/7/25) - Adjusted Net Sales: Flat to Up 2% YoY[109] - Adjusted Operating Margin: 14.0% to 14.5%[109] - Adjusted Income per Diluted Share: ~$2.34 to $2.48, Down ~14% to 9% YoY[109] - Capital Expenditures: ~$50M[109] - Free Cash Flow: ~$150M to $200M[109]