Overview
- Revenue fell 5% to $1.33 billion, slightly ahead of forecasts, and adjusted diluted EPS came in at $0.09.
- Full‑year adjusted EPS guidance increased to $0.10–$0.11, with revenue now expected to decline about 4%.
- Management projects roughly 190 basis points of gross‑margin contraction for fiscal 2026, citing about $100 million in tariff‑related costs.
- North America sales dropped about 10% as international revenue rose roughly 3%; footwear fell about 12% and apparel declined about 3%.
- The quarter included a reported operating loss of about $150 million versus adjusted operating income of $26 million, as the multi‑year reset advances with charges recorded toward an up to $255 million restructuring plan.