Investment Rating - The report assigns an "Accumulate" rating for the textile and apparel industry [1]. Core Insights - HOKA has returned to high double-digit growth, with international markets continuing to be a growth engine. The performance in FY26Q3 exceeded management's cautious expectations from FY26Q2. The financial report highlights four key strengths: DTC (Direct-to-Consumer) sales, full-price sales capability, appeal to younger consumers, and strong international market performance. Based on the robust performance in FY26Q3, management has raised the FY26 full-year guidance [3][4]. Summary by Sections Financial Performance - Deckers Outdoor reported FY26Q3 revenue of $1.96 billion, a year-on-year increase of 7.1%, and net profit of $481 million, up 5.3%. By brand, HOKA generated $629 million in revenue, growing 18.5%, while UGG brought in $1.305 billion, a 4.9% increase. In terms of sales channels, DTC revenue reached $1.093 billion, up 8.1%, and wholesale revenue was $865 million, up 6.0%. Regionally, international market revenue was $757 million, a 15.0% increase, while domestic revenue in the U.S. was $1.2 billion, growing 2.7% [4]. Highlights - The report identifies four major highlights: 1. HOKA achieved healthy growth in the U.S. DTC channel, with a significant increase in new customer acquisition due to an optimized membership system, enhancing average order value and multi-category purchases. 2. The company maintained a high level of full-price sales despite frequent promotions in the macro environment, with average selling prices (ASP) for HOKA and UGG slightly above the previous year. 3. UGG's performance was strong across both wholesale and direct channels, with product strategies targeting younger consumers (e.g., Tasman, Ultra Mini) and the "Weather Hybrid" series boosting brand strength in the men's category. 4. The international market showed strong momentum, with growth rates (+15%) significantly outpacing domestic performance, as both HOKA and UGG maintained robust dynamics overseas [4]. FY26 Guidance Update - Based on the strong performance in FY26Q3, management has updated the FY26 full-year guidance, raising revenue expectations to $5.4 billion - $5.425 billion (previously $5.35 billion). HOKA's revenue growth is now projected in the mid-teens, while UGG's is expected in the mid-single digits. Diluted EPS is adjusted to $6.80 - $6.85 (previously $6.30 - $6.39), with gross margin expected around 57% (up 100 basis points) due to lower-than-expected tariff impacts. Management anticipates a net tariff impact of only $25 million for FY26, benefiting from better-than-expected pricing actions and inventory turnover timing. Looking ahead to FY2027, HOKA and UGG are expected to continue their growth phase through category expansion and international market share acquisition [4].

Financial Data and Key Metrics Changes - For the third quarter, the company reported revenue of $1.96 billion, a 7% increase compared to the prior year [9][30] - Gross margin for the quarter was 59.8%, better than expected due to lower-than-anticipated tariff impacts and effective pricing actions [31] - Diluted earnings per share reached a record $3.33, reflecting an 11% increase year-over-year [10][32] Business Line Data and Key Metrics Changes - HOKA revenue increased by 18% to $629 million, contributing $98 million in incremental revenue [30] - UGG revenue grew by 5% to a record $1.3 billion, adding $61 million in incremental revenue [30] - Direct-to-consumer (DTC) revenue for UGG increased by 5%, while wholesale revenue grew by 4% [13] Market Data and Key Metrics Changes - International markets saw a 15% revenue increase for HOKA and UGG combined, while the U.S. market experienced a 5% increase [9] - HOKA's market share in the U.S. road running category above $140 significantly increased, indicating strong brand performance [21] Company Strategy and Development Direction - The company aims for continued international expansion and brand performance, focusing on consumer demand and product development [5][28] - Strategic initiatives include enhancing DTC channels and maintaining a balanced approach between DTC and wholesale [20][28] - The company is committed to returning value to shareholders through a share repurchase program, with over $1 billion expected to be repurchased in fiscal year 2026 [34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining growth momentum for both UGG and HOKA, driven by strong consumer demand and effective marketplace management [42] - The company raised its full-year revenue expectations to a range of $5.4 billion to $5.425 billion, reflecting strong brand performance [34] Other Important Information - The company repurchased approximately $349 million worth of shares in the third quarter, with a total of about $1.8 billion remaining authorized for share repurchases [33] - The company has a disciplined approach to managing the global marketplace to sustain strong full-price sales [39] Q&A Session Summary Question: What has driven the improvement in HOKA's business? - Management noted that spacing out key franchise launches and tightening inventories contributed to the improvement, with confidence in sustainability going forward [47][49] Question: Can you elaborate on the lifestyle segment's development? - The company is focusing on enhancing capabilities in innovation and design, with positive early reads on new lifestyle products [52] Question: How should we think about UGG's channel strategy moving forward? - Management indicated a balanced growth strategy across all channels, with continued segmentation and differentiation expected [57][58] Question: What is the outlook for the U.S. consumer? - Management remains cautious but optimistic, noting strong brand performance despite economic uncertainties [83][84] Question: How is the DTC business performing for HOKA and UGG? - Both brands performed well, with sequential improvements noted in the U.S. DTC business [90][91]

Core Insights - Kia Corporation reported a significant 37% year-on-year decline in net profits to KRW 1.42 trillion (US$ 997 million) in Q3 2025, primarily due to a 25% import tariff imposed by the US government earlier this year [1] - The company's operating profit fell by 49% to KRW 1.46 trillion, with the operating margin decreasing to 5.1%, influenced by higher incentive payments and unfavorable currency exchange rates [2] Financial Performance - Global revenues increased by 8.2% year-on-year to KRW 28.69 trillion in Q3 2025, driven by a better product mix and a 32% rise in hybrid and electric vehicle sales to 204,000 units, while overall sales volumes grew by only 2.8% to 785,137 vehicles [2] - For the first nine months of 2025, global revenues rose over 7.2% year-on-year to KRW 86.05 trillion, but operating profit decreased by 27% to KRW 7.24 trillion, and net income fell by 24% to KRW 6.08 trillion [4] Market Dynamics - Despite strong electric vehicle sales, deliveries in Europe declined due to model discontinuations and temporary production adjustments in Slovakia, while sales in India decreased due to deferred demand ahead of a Goods and Services Tax reduction [3] - In the US, Kia achieved record sales of 219,637 units during the quarter [3] Strategic Outlook - Kia anticipates ongoing global trade uncertainties, including tariffs, will continue to impact profitability, but remains committed to expanding its global presence through more hybrid models and a full electric vehicle lineup [5] - The company plans to leverage its flexible production system in the US to adapt to market demand and regulatory changes, while expanding its hybrid offerings [5] - In Europe, Kia aims to enhance its EV lineup with models such as EV4, EV5, and PV5, and in India, it will focus on maintaining sales momentum with the Syros SUV and launching a redesigned Seltos SUV [5]

Core Viewpoint - A recent court ruling has significantly narrowed the scope of trade dress protection for widely used product features, particularly in the case of Deckers Outdoor Corp. against Last Brand Inc. (Quince), which sells lower-priced replicas of designer footwear [1] Group 1: Lawsuit Details - Deckers filed a lawsuit in 2023 alleging trade dress infringement on three Ugg shoe designs and one patent claim against Quince, which markets products similar to Uggs [2] - The specific infringements cited include Quince's Australian Shearling Mini Boot, which allegedly infringes on the Ugg Classic Ultra Mini trade dress, and other products that infringe on Deckers' Bailey Button Boot and Tasman trade dresses [2] Group 2: Court Rulings - Deckers sought summary judgment on its trade dress claims, arguing that its designs are "nonfunctional" and do not provide utilitarian advantages over other designs [3] - The federal district court ruled that trade dress with either utilitarian or aesthetic functionality cannot be protected under trademark law, leading to the failure of Deckers' summary judgment motion [4] Group 3: Genericness and Trademark Law - The court found that trademark law does not protect generic trade dress, and Deckers failed to prove that its designs were non-generic [5] - Quince successfully demonstrated that other brands offer similar ankle-high sheepskin boots, which contributed to the court granting summary judgment in favor of Quince regarding the genericness of Deckers' trade dress claims [5]