Core Insights - The company reported strong sales and profitability growth, particularly in the direct-to-consumer (DTC) channel, which increased by 9% [1][12]. - The U.S. market grew by 3%, while international business saw a 9% increase, driven by strong performance in Asia [1][15]. - The company is transitioning to a DTC-first strategy, enhancing its denim lifestyle offerings and expanding its market share in both women's and men's categories [2][5]. Financial Performance - In Q3, the company achieved a 7% increase in net revenue, with international markets contributing approximately 75% of this growth [19][20]. - Gross margin reached a record 61.7%, expanding by 110 basis points year-over-year, despite facing tariff headwinds [21][22]. - Adjusted diluted EPS was reported at 34 cents, reflecting a 25% increase year-to-date [23]. Strategic Initiatives - The company is focusing on impactful marketing campaigns and collaborations, such as those with Beyoncé and Nike, to enhance brand visibility and consumer engagement [7][9]. - The DTC-first strategy is yielding consistent growth, with e-commerce sales up 16% and DTC sales up 9% [12][14]. - The company is also optimizing its store operations and enhancing in-store merchandising to improve consumer experience and drive sales [13][66]. Product Development - The women's business grew by 12% year-to-date, while men's business saw a 5% increase, indicating strong demand across genders [10][20]. - The company is expanding its product assortment, particularly in tops, which grew by 9% overall, with significant growth in women's tops [11][75]. - New product introductions, including the Blue Tab collection, are aimed at premiumization and enhancing product quality [11][80]. Market Positioning - The company maintains a leading market share in both men's and women's denim globally, capitalizing on the growing trend towards casualization [42][45]. - The total addressable market for denim is expanding, and the company is well-positioned to capture this growth through its strategic initiatives [5][6]. - The company is also focusing on SKU rationalization, reducing SKUs by 15% to improve productivity and streamline operations [68][69]. Outlook - The company raised its full-year revenue and EPS guidance, reflecting confidence in continued momentum despite external challenges [2][19]. - For Q4, organic net revenue growth is expected to be approximately 1%, with reported net revenues anticipated to decline by about 3% due to non-comparable items [30][31]. - The company is preparing for the holiday season with a robust product assortment and marketing strategies to drive consumer engagement [47][48].