Financial Data and Key Metrics Changes - Third quarter net sales reached $239.1 million, up 7.5% from $222.5 million in the same quarter last year [10] - Comparable sales grew 7.6%, marking the sixth consecutive quarter of positive growth [2][3] - Earnings per share for the quarter was $0.55, significantly above the guidance of $0.29 [3][14] - Gross profit increased to $89.8 million, a 14.7% rise compared to $78.3 million last year, with gross margin improving to 37.6% from 35.2% [11][12] Business Line Data and Key Metrics Changes - North America net sales were $202.8 million, an increase of 8.6% year-over-year, with comparable sales up 10% [10][11] - Women's and hard goods categories saw strong double-digit growth, while men's and accessories experienced low to mid-single-digit gains [3][11] - Footwear was the only category with negative comparable sales [11] Market Data and Key Metrics Changes - International net sales, primarily from Europe and Australia, were $36.3 million, up 1.7% year-over-year, but comparable sales in Europe declined by 3.9% [10][11][17] - North America comparable sales for the 31-day period ended December 2, 2025, increased by 7.8% [17] Company Strategy and Development Direction - The company is focused on three strategic priorities: driving revenue growth through customer-focused initiatives, optimizing profitability, and managing volatility while funding strategic expansion [4][8] - The introduction of over 100 new and emerging brands annually is a key component of the sales mix, alongside a strong performance in private label products [5][8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in closing the year with strong holiday results, despite macroeconomic uncertainties [3][19] - The company anticipates total sales growth of 4% to 6% for the fourth quarter, with comparable sales expected to be in the 2.5% to 4% range [19][20] - Management noted that while North America shows strength, international operations face challenges, particularly in Europe [7][22] Other Important Information - The company ended the quarter with $104.5 million in cash and no debt, indicating a strong financial position [15] - Inventory levels decreased by 3.5% year-over-year, reflecting effective inventory management [16] Q&A Session Summary Question: What is driving the strong performance in hard goods? - Management indicated that the strong performance is primarily driven by the Skate category, with improvements noted in North America and Europe [25][26] Question: What are the comparable sales assumptions for the balance of the quarter? - Management expects a slight deceleration in North America sales after a strong November, while anticipating a negative comp in Europe due to anniversary promotional trends [28][30] Question: What is the current penetration of private label products? - Private label penetration is currently just under 31% of total product sales, up from 11% five years ago [35][36] Question: Who is the company taking market share from in North America? - Management believes they are primarily gaining market share from competitors through effective execution and trend alignment, focusing on their core consumer [41][44]