Release Date: May 01, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Should we assume that wholesale for the second half should be similar to what was expected in early February, and are there opportunities to take market share due to the situation with private label offerings from China? A: The category headwinds are uncertain, but there is an opportunity to gain market share due to the reliance on Chinese imports by private labels and smaller brands. We are focusing on taking advantage of this opportunity. As for the fall order book, there have been no surprises or meaningful cancellations to date. (Timothy Boyle, CEO; Jim Swanson, CFO)
Q: Regarding the $40 million to $45 million of incremental COGS based on tariff rates, should we assume this is split between Q3 and Q4, and could pricing be raised starting Spring 2026? A: The $40 million to $45 million in tariffs is expected to impact the second half of the year, with potential costs extending into 2026. Pricing strategies for Spring 2026 are still in flux, and decisions will be made based on market conditions. (Timothy Boyle, CEO; Jim Swanson, CFO)
Q: Can you elaborate on the opportunity to take market share in the current environment, and what are your internal expectations for market performance in various regions? A: Many competitors and private label businesses reliant on China will face challenges, providing us an opportunity to take market share. We are confident in our ability to navigate tariffs globally and capitalize on these opportunities. (Timothy Boyle, CEO)
Q: What have you identified in your cost structure review that is driving the spend reduction, and what is the optimum SG&A rate longer term? A: We have identified operational cost savings, including distribution and labor optimization, and are on track to achieve $150 million in annualized cost reductions. Long-term, we aim to drive leverage in SG&A and return operating margins to double digits. (Jim Swanson, CFO)
Q: Can you provide insight into the recent trends in China and how they shape your view for the balance of the year and longer-term opportunities? A: We are small in China compared to competitors, offering significant growth opportunities. The outdoor category is strong, and we are investing in localized design and production to enhance our market position. (Timothy Boyle, CEO)
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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