Overview
- Quarter ended Dec. 31: net sales reached $1.07 billion, down 2% year over year yet above the $1.01–$1.04 billion guidance range, with gross margin at 51.6% and operating income and EPS ahead of expectations.
- Full-year 2025 net sales rose 1% to $3.4 billion as operating income fell 24% to $207 million and net income declined 21% to $177.2 million, with gross margin at 50.5% and tariffs estimated to have a $31 million negative impact before mitigation.
- U.S. weakness persisted with domestic net sales down 8% and wholesale off by the high teens, while Latin America and Asia Pacific grew about 10% and EMEA/Canada posted modest gains, supported by direct-to-consumer growth.
- 2026 guidance calls for 1%–3% net sales growth, gross margin contraction of roughly 50–70 basis points to about 49.8%–50% primarily from incremental U.S. tariffs, operating margin of 6.2%–6.9%, and diluted EPS of $3.20–$3.65.
- Management cited earlier Fall ’25 wholesale shipments that affected quarterly timing, noted inventories exiting 2025 were healthy and essentially flat, and emphasized execution of the ACCELERATE Growth Strategy.