Amer Sports, Inc.(AS)Q1 2026 法說會逐字稿

Hello, everyone. Thank you for joining us, and welcome to Amer Sports First Quarter 2026 Earnings Call. I will now hand the conference over to Omar Saad, SVP of Investor Relations and Capital Markets. Omar, please go ahead.

Welcome, everyone. Thanks for joining Amer Sports earnings call for the first quarter of fiscal year 2026. Earlier this morning, we announced our financial results for the quarter ended March 31, 2026, and the release can be found on our IR website, investors.amersports.com. A quick reminder to everyone that today's call will contain forward-looking statements within the meaning of the federal securities laws. These forward-looking statements reflect our current expectations and beliefs only; they are subject to certain risks and uncertainties that could cause actual results to differ materially. Please see the safe harbor statement in our earnings release and SEC filings. We will also discuss certain non-IFRS financial measures. Please refer to our earnings release for important information regarding such non-IFRS financial measures, including reconciliations to the most comparable IFRS financial measures. We will begin with prepared remarks from our CEO, James Zheng; and CFO, Andrew Page, followed by a Q&A session until 9:00 a.m. Eastern. James will cover key operational and brand highlights, then Andrew will provide a financial review at both the group and segment level, and we'll also walk through our updated guidance. Arc'teryx CEO Stuart Haselden and Salomon CEO Guillaume Meyzenq will join for the Q&A session. With that, I'll turn the call over to James.

Thanks, Omar. Our excellent momentum continued in Q1 as our unique portfolio of technical sports and outdoor brands are creating white space and taking share globally. All segments, geographies and channels performed extremely well in the quarter, led by exceptional Salomon softgoods growth, a strong Arc'teryx omni-comp and solid performance across our other franchises. We delivered strong results across the P&L, including 32% sales growth and 160 basis points of adjusted operating margin expansion. All four regions achieved solid double-digit revenue growth, and that strong momentum has continued into Q2. Looking forward, given the continued broad-based momentum across our portfolio and the talent and ambitious teams we have in place around the world, we are very confident in the future outlook for Amer Sports Group. Several factors give me that confidence. First, we own and operate a unique portfolio of premium, innovation-driven sports and outdoor brands. These brands are still only small to medium size with significant room to grow globally. Second, Arc'teryx is a breakout outdoor brand with leading growth and profitability for the industry driven by its disruptive direct-to-consumer model. Third, demand for Salomon's unique outdoor sneaker offering is inflecting globally, but the brand still only has a small share of the very large global sneaker market. Fourth, our winter and winter sports equipment franchises have leading market positions, which we believe will deliver slower long-term growth except for winter softgoods, which we believe is unique in the marketplace and has significant potential. And fifth, we believe we have a strong and differentiated platform in Greater China and APAC where we continue to deliver best-in-class performance across our offering. Before I turn it over to Andrew, I will briefly recap key highlights from our three segments. Starting with technical apparel: Arc'teryx delivered another great quarter with broad-based strength across regions, channels and categories, including another exceptional performance from women's, strong momentum in the direct-to-consumer channel continued driven by a 19% omni-comp. We continue to envision Arc'teryx as a truly global brand with significant runway in all major markets, and we are encouraged that the brand is generating strong double-digit growth across all four regions, including a notable acceleration in North America. This momentum continued in Q1, growing faster than any other category for Arc'teryx. Our confidence in the women's opportunity is rising as we are both attracting new female consumers to the brand and driving higher engagement and spend with existing female consumers. We really see brand affinity with women rising as we improve fit, style and function while building expanded assortments, leveraging our unique design advantage. Our decision to redesign core ABCD models for her while also expanding family assortments is working well. We also believe that success in bottoms with franchise sectors—Clarkia, Leutia and Nia pants—is helping us unlock the female consumer. On the men's side, we are excited to welcome a new Arc'teryx designer who joined us most recently from Mountain Hardwear and The North Face prior to that. His leadership will be instrumental as we continue to push the boundaries of our men's offering when it comes to core performance for mountain assets with technical performance and thoughtful design. Footwear had another great quarter with strong growth across regions, led by both existing styles and a new launch. Popular existing styles include the Norvan LD 4 trail shoes, which have strong consumer affinity and are our biggest volume drivers, followed by the Gore-Tex hiking shoe. We launched the new model in Q1, which is a technical trail relationship product. Looking forward, we are confident Arc'teryx has an exciting pipeline of full product releases for the upcoming years. We are investing in our design capabilities and the commercial teams on the ground in the U.S. and building a strong infrastructure for both direct-to-consumer and wholesale channels. Our Veilance sub-brand also had strong double-digit growth in Q1. We expect 2026 to be a year of impact for the brand as we invest in units, further develop our collections and expand distribution, all of which is creating excitement and engagement in the marketplace. Circularity and ReBird continue to be at the heart of Arc'teryx. In Q4, we increased the credit guests receive when they trade in Arc'teryx products, and this continues to drive strong triple-digit growth in trade-in activity in North America albeit off a small base. Our on-mountain efforts remain a critical role in community engagement and the Arc'teryx Mountain Academy we hosted in February was again a great success with 22,000 attendees over the weekend and 42 clinics hosted by Arc'teryx assets. Academies are becoming a key platform for ReBird, generating consumer awareness, interest and the ReBird service. Our other technical apparel brand, Black Performance, delivered solid growth in Q1. After the brand returned in 2025 the turnaround remains on track so far in 2026 with sales increases across key channels and regions. The brand also continued to improve profitability driven by our concentrated efforts to reduce promotional activity and increase full-price selling, especially in the Nordic market. Moving to the outdoor performance segment, which was led by another outstanding quarter from Salomon softgoods. The investments we are making to grow Salomon brand awareness and the distribution footprint are paying off. At Salomon footwear, momentum is expanding across regions, channels and in both sport and performance categories. We are also excited to share that we are seeing a clear acceleration in North America as we leverage rising brand awareness to expand distribution with both new and existing wholesale partners. We also saw solid performance from our winter sports equipment franchise which continues taking share despite challenging market conditions. As you know, Salomon footwear has become a very important growth engine, not just for Salomon, but for Amer Sports Group. We are excited to see a demand inflection for Salomon's unique outdoor sneaker offering, especially since the brand still only has a small share of the global sneaker market. I'd like to highlight a few factors that give us the confidence that Salomon is well positioned to achieve its growth potential. Number one, global sneaker momentum continues. We believe Salomon is connecting with younger consumers and female consumers in ways traditional outdoor brands haven't. Sport style is critical to developing Salomon's position as the modern outdoor sneaker brand, including franchises such as XT-6 and XC Whisper. Second, our performance and running lines are also working well. We continue to believe our new GRVL franchise is primed to unlock the run category for Salomon like never before. Salomon is gaining traction in the run specialty channel and in South America. Recent running launches included the SLAB Phantom 3, which is an ultra-lightweight racing shoe engineered for elite performance. Third, Salomon has an amazing brand in Greater China and Asia, where we believe we operate the most productive and profitable sneaker shops in the industry. China was Salomon's fastest growing region in Q1, driven by both sport and performance as well as strong growth in apparel. Salomon is also experiencing surging demand in Korea and Japan, both large sneaker markets. Fourth, our epicenter strategy is working—our strategy to open a handful of brand stores alongside strategic, elevated wholesale distribution in key metro markets around the world is critical to elevating Salomon's presence and awareness. Our Tier 1 global epicenter cities include Paris, London, Shanghai, Beijing, Tokyo and New York. We have seen both rising brand awareness and accelerating revenue in our epicenter cities. Fifth is the strong pull-through demand we are seeing from consumers in Europe, Salomon's home market, driving strong preorders and sell-through. Sport style continued to be the growth driver, but we have also seen a real inflection in performance in Europe supported by marketing campaigns, in-store events and running event activations. Also, we are seeing high e-commerce demand growth in Europe even as we expand our retail and wholesale footprint. In North America, which is the largest sneaker market in the world but still a small business for us in the U.S., we are seeing a clear growth inflection driven by sport style and performance. Not only are we expanding our shelf space and sell-through with existing wholesale partners, but we are also now starting to move Salomon footwear into key wholesale partners in the U.S. As you know, there is strong demand for Salomon sneakers in the U.S. We're still limited in distribution for consumers to find our products. Moving to board and racquets highlights: Wilson grew 13% in Q1, driven by continued strength in softgoods and racquet sports. Our racquet products continue to resonate very well with consumers from performance racquets to tennis footwear and apparel, and Wilson softgoods continued its exceptional trajectory with very strong growth and an increasing number of top players wearing full kits at key events, including Aryna Sabalenka winning the Madrid Open and the men's top-10 player success. In Q1, we launched a Version 10 of our iconic tennis racquet which has been well received in the market across all channels with reorders from key customers already coming in. We also saw strong validation of the V10 on tour with world #1 Aryna Sabalenka who won Indian Wells and the Miami Open playing with a racquet version before it was launched publicly. With that, I will turn it over to Andrew.

Thanks, James. Q1 was a great start to the year with strong sales, margin expansion and EPS growth. The investments we've been making behind our biggest opportunities are paying off in terms of both sales growth and margin expansion. Today, we are experiencing exceptional trends across each of our three biggest growth engines: Arc'teryx, Salomon softgoods and Wilson Tennis 360, which are all still relatively small franchises with significant room to expand. Turning to our Q1 results: Amer Sports grew sales 32% in Q1 on a reported basis, or 26% excluding currency. The strong group sales performance was led by outdoor performance and technical apparel. All in racquet also had impressive double-digit sales growth. By channel, the group continues to be driven by DTC, which grew 45% led by Salomon and Arc'teryx. At the group level, DTC represented approximately 50% of revenue in Q1. Wholesale grew 21%, led by Salomon. Growth was also very strong across all geographies. Regional growth was led by Asia Pacific, which increased 53%, and Greater China, which grew 45%. EMEA accelerated to 27% and the Americas grew 18% in Q1. As it relates to our EMEA region, I wanted to touch on the Middle East conflict which thus far has had relatively low impact on our business. The region represents less than 1% of our global sales and the impact on both consumer demand as well as our supply chain and logistics operations has been immaterial thus far. We recently renegotiated our annual shipping contracts, and this has also been incorporated in our latest guidance. That said, we continue to closely monitor this rapidly evolving situation, which could create some logistical and cost headwinds should the price of oil remain elevated longer term. Turning to profitability: Adjusted gross margin increased 200 basis points to 60% in Q1, primarily driven by favorable channel, geographic, product and brand mix. Adjusted SG&A expenses as a percentage of revenue increased 60 basis points and represented 43.2% of revenue in Q1. This is a better SG&A rate than was implied in our previous guidance as we were able to leverage the higher sales growth against fixed costs. SG&A leverage in both technical apparel and outdoor performance was offset by deleverage in Ball & Racquet due to ongoing investments in Wilson Tennis 360 and higher corporate expenses. Led by strong margin expansion, we generated a 160 basis point increase in our adjusted operating margin from 15.8% last year to 17.4% in Q1. Corporate expenses were $52 million, up from $27 million in Q1 of last year, mostly related to higher IT personnel and deferred compensation expenses. Depreciation & amortization was $103 million, which includes $50 million of ROU depreciation. Adjusted net finance cost in the quarter was $30 million, which comprised primarily of $25 million from interest expense with the remaining $5 million driven mostly by FX losses associated with the revaluation and settlement of monetary balances. In the quarter, our adjusted income tax expense was slightly higher than prior year. Adjusted diluted earnings per share was $0.38 compared to adjusted diluted EPS of $0.27 last year. Now turning to segment results. Technical apparel revenues increased 33% to $885 million, led by Arc'teryx. Growth was fueled by 41% DTC expansion, including a 19% omni-comp. Technical apparel wholesale revenues grew 16%. Regionally, the technical apparel growth rate was led by Asia Pacific and, of course, Greater China continues to be central to Arc'teryx growth aspirations, and we plan to open 30 to 35 net new Arc'teryx stores in 2026 across all markets. Our store opening plan in corporate is at a similar level of gross new stores as in 2025 and partially offset by the continued closure of certain outlets and other suboptimal locations. We are planning 10 to 12 net new stores in Greater China in 2026 with openings weighted towards H2 and Q4. After multiple years of optimizing the fleet, we are excited to resume new store expansion in this large and important consumer market. In Q1, we had 5 openings in China, offset by 5 closures. Key new locations include the Grand Gateway 66 store in Shanghai, a great example of the benefit when we relocate from a third-floor location to ground level with much higher traffic and more premium neighbors amongst luxury brands. In Q1, Arc'teryx growth accelerated in North America, and we delivered strong double-digit omni-comp in the U.S. We are seeing significant progress in brand awareness in the U.S. with unaided brand awareness growing to 12% from 8% last fall, led by our top-of-funnel marketing strategies. We believe brand experience and community are still untapped areas for Arc'teryx to unlock higher conversion rates in the U.S. market, and we will be doubling down on these activities in 2026. One new store worth highlighting is our latest San Francisco area location in Burlingame, which opened in March. It has performed very well so far and will play an important role in continuing to develop Arc'teryx in warmer markets. I also want to highlight our Rockefeller Center store, where we are encouraged by the building sales trajectory over the course of this past winter. Also, our mountain strategy continues to resonate as our new stores in Aspen and Park City got off to great starts despite low snow in the Rockies this past season. Technical adjusted operating margin expanded 250 basis points to 26.4%, driven by both gross margin expansion due to positive regional and product mix as well as modest SG&A leverage on strong sales. Moving to our Outdoor Performance segment, which saw revenues increase 42% to $714 million driven by very strong performance in Salomon footwear, apparel, bags and socks. By channel, Outdoor Performance DTC grew 57%, led by new doors and higher productivity across markets, especially Greater China, APAC and the Americas. Outdoor Performance achieved a 29% omni-comp with strength in both stores and e-commerce. E-commerce is continuing to grow across regions driven by higher traffic, especially in the Americas and APAC. Outdoor Performance wholesale grew 34%, driven by strong sell-through and reorders in softgoods. Regionally, the outdoor performance growth rate accelerated across all geographies, led by Greater China and APAC followed by the Americas and EMEA. The popularity of Salomon footwear continues to inflect globally, and we are doing everything we can to ensure we are well positioned to fully develop this large opportunity in the right way over time. Salomon is positioned for significant growth in all major consumer regions, where we are working hard to build the right team, operations, go-to-market and brand-building functions to support our growth. In Asia, DTC continues to be the critical growth channel for Salomon led by our highly productive Salomon shops. We opened 9 net new Salomon shops in Greater China this quarter, including both owned stores and partner stores, bringing our total count at quarter end to 302 doors. For the full year 2026, we now expect to open 45 net new stores in Greater China, a slight increase from the 35 we communicated last quarter as more high-quality locations have become available to us and our partners. Keep in mind, although our net new store openings are slower than nearly 100 new doors in the last couple of years, we are focused on upgrading the fleet by opening larger format, highly productive doors in the highest-traffic shopping sets with more space to incorporate apparel and accessories. This is a very similar playbook to what we followed for Arc'teryx the last few years in China. A great example of this is the new Salomon flagship we've recently opened in Beijing's highest-footfall shopping center, Chaoyang Hopson One, known for its premium, trend-driven retail. With over 8,000 square feet, the new flagship offers a full range of footwear and apparel and a highly elevated consumer experience. In APAC, another region where Salomon has experienced explosive growth, we opened five new Salomon stores in Q1. These were all in Japan and Korea, both very large and sophisticated sneaker markets. Salomon's overall brand awareness and desirability continues to grow very rapidly across Asia. In the Americas, as James mentioned, Salomon footwear is seeing a material growth acceleration. The brand is seeing great DTC demand in both stores and e-commerce, and we are also excited to share that we are beginning to expand U.S. wholesale in a more meaningful way. Not only are we improving sell-through and expanding shelf space within existing wholesale partners such as Nordstrom and RAI, we are also now starting to move Salomon footwear into key doors with new U.S. retailers like Foot Locker and JD Sports. There is growing demand for Salomon sneakers in the U.S., and we are strategically sequencing our U.S. wholesale rollout to align with our epicenter market strategy. Keep in mind, this expansion into new wholesale accounts will include a small number of doors initially. Accordingly, we are seeing very strong North America order books for fall/winter 2026 with growing demand across a variety of high-quality existing and new retail partners. And we have improved our inventory position to respond to this growing demand. In terms of own retail in North America, we are further strengthening our presence in New York City and just recently opened a Salomon brand store in the Upper West Side of Manhattan and in Q3, we will open a Salomon store in the Flatiron District of New York. We also opened our first Salomon shop in Mexico City as the brand is also enjoying accelerating awareness and desirability across Latin America markets. We will continue to focus on our epicenter strategy in 2026 and beyond, particularly New York, Los Angeles, Miami and San Francisco. We currently plan to open 7 to 10 new Salomon shops in the Americas this year. In EMEA, we continue to expand our store fleet in key epicenters, and we will further develop our European epicenters into Spain, Germany and other key U.K. cities in 2026. In Q1, we opened our first brand store in Copenhagen, Denmark, which has delivered a very strong positive start. Lastly, our Winter Sports Equipment franchises had a solid Q1 despite challenging weather and market conditions. While the market for cross-country and touring remains pressured versus the COVID highs, the core alpine on-piste market remains healthy despite low snow in certain regions. Outdoor Performance adjusted operating profit margin expanded 480 basis points from last year to 20.4% in Q1. The margin expansion was led by gross margin, thanks to positive channel, regional and product mix as well as SG&A leverage on strong growth. We are pleased to deliver strong margin expansion in Q1 after making the decision last quarter to accelerate investments to support Salomon's long-term growth, including marketing, retail expansion and talent acquisition. We believe these types of investments are critical to deliver the kind of results we saw in Q1 as well as position the brand for high-quality long-term growth. I would add that we believe this is one of the advantages of our portfolio: the strong sales growth and margin expansion at the group level gives us the flexibility to invest behind early-stage growth opportunities such as Salomon sneakers and also Wilson Tennis 360 in a way they could not as standalone entities. Moving to Ball & Racquet, where revenues increased 13% to $347 million, driven by softgoods and racquet sports. We continue to see very strong momentum in Tennis 360 globally. By category, the growth was led by softgoods, up very strong double digits with continued momentum in all regions. Strong racquet growth was driven by China and EMEA. Beyond tennis, we saw solid growth in golf, driven by commercial clubs and golf balls, while inflatables were slightly down. Baseball also declined, impacted by the timing of shipments in bats and gloves, partially offset by growth in baseball uniforms and apparel. Regionally, the Ball & Racquet growth rate was led by Greater China, APAC and EMEA. We opened one net new Wilson brand store in Q1 in Korea. We have extensive store opening plans for China this year, given the performance of existing Wilson Tennis 360 shops. For the full year, we now plan to open approximately 40 net new Wilson Tennis 360 shops in China between owned and partner doors. APAC also continues to drive meaningful Wilson softgoods growth. We are expanding our Tennis 360 offering into more DICK'S Sporting Goods locations, including House of Sports. We are planning to expand our DICK'S footprint from 250 doors to 400 doors by the end of 2026. Ball & Racquet segment adjusted operating profit and margin decreased 370 basis points to 3.6% as positive product, channel and regional mix was more than offset by higher SG&A as we made the decision to invest behind Wilson Tennis 360. Turning to the group balance sheet: We ended the quarter with $539 million of net cash and exited the quarter with inventories up 33% year-over-year, slightly higher than the 32% sales growth. We are very comfortable with the level and quality of our inventory. This high inventory growth is primarily related to the same factors we've previously disclosed: one, earlier receipt of seasonal Arc'teryx merchandise to prepare for better in-stock positions; two, higher Arc'teryx goods in transit resulting from greater use of ocean freight versus air freight; three, FX translations from the weaker U.S. dollar; and four, the addition of Arc'teryx Korea inventory following the recent acquisition. We expect inventory growth rates to normalize in the second half of 2026 when we start to cycle our improved in-stock positions and the higher use of ocean freight. Driven by strong profit growth and disciplined working capital management, we generated $172 million of operating cash flow in the first quarter compared to $164 million last year. And for the full year of 2026, we expect to generate solid operating cash flow growth versus 2025 levels. Now moving to guidance. A couple of housekeeping items before I walk through the details. First on tariffs: Our updated guidance today assumes that the higher tariff rates that were in place before the February Supreme Court ruling remain in place for Q2 and the remainder of 2026. Regarding tariff refunds, we have filed our submission and last week received a small portion of our total submission amount, which does not have an impact on our guidance as presented. Second, as we mentioned last quarter, beginning in Q1, we discontinued allocating certain corporate expenses to our reportable segments that are not directly attributable to the operating performance of the segments. There is no impact to the overall group adjusted operating profit margin. It is simply reallocating certain costs to corporate. Included in our press release and the earnings deck is an exhibit that details the cost reallocation from each segment to corporate for each quarter of 2025. Let's begin with our updated full year 2026 outlook. The second quarter is off to a strong start. And given the continued momentum from our highest-margin Arc'teryx franchise, accelerating Salomon softgoods growth plus the solid foundation of our equipment franchises, we have the confidence to raise our 2026 sales, margin and EPS guidance. We are raising 2026 revenue growth guidance from 16%–18% to 20%–22%, which includes a 200 to 250 basis point benefit from favorable FX impact at current exchange rates. By segment, we are raising our technical apparel 2026 revenue growth guidance from approximately 18%–20% to 22%–24%. We are also increasing our outdoor performance sales growth expectations from 18%–20% to 22%–24%. Our Ball & Racquet sales growth guidance goes from 7%–9% to 10%–12%. We are also raising our full year adjusted gross margin guidance from approximately 59% to a range of 59% to 59.5%. We are targeting an adjusted operating margin of approximately 22% for technical apparel. For outdoor performance, we are raising adjusted operating margin guidance as well. We are assuming full year net finance costs of approximately $70 million and an effective tax rate of 28%. Other operating income will be approximately $30 million for the full year, with approximately $20 million coming in Q2. Net income attributable to noncontrolling interest will be approximately $20 million for the full year. We now expect adjusted diluted EPS of $1.18 to $1.23 versus our prior guidance of $1.10 to $1.15, which is based on 586 million fully diluted shares. We are also assuming D&A of $400 million, including approximately $200 million of ROU depreciation. CapEx is still expected to be approximately $400 million primarily to support our retail expansion and IT infrastructure investments. Turning to second quarter guidance: We expect reported revenue growth for the group in the range of 22% to 24% which assumes a 200 to 250 basis point benefit from favorable FX impact at current exchange rates. We expect adjusted gross margin to be approximately 59.5% in Q2 of 2026 and an adjusted operating profit margin of 6% to 7%. Other operating income for the quarter would be approximately $20 million. Net finance costs will be approximately $15 million and our effective tax rate will be approximately 28%. We expect adjusted diluted EPS of $0.08 to $0.10 per share in Q2. Lastly, I would note that should strong trends continue and better-than-anticipated demand materialize, we believe we are well positioned to deliver financial performance ahead of our expectations. With that, I'll turn it back to the operator for questions.

Your first question comes from the line of Michael Binetti from Evercore. Michael, your line is now open.

Great quarter, and thanks for all the detail today. So just on the guidance, the second quarter revenue guidance signal is really good here. I think 20% to 22% is the biggest forward quarter growth rate you've given us since the IPO. Obviously, we're all staring at a difficult macro right now. So maybe just double-click a little bit on what's driving your confidence? I know you said current trends are continuing. But maybe just double-clicking on that a little bit. And then I guess, on thinking about the product and the roadmap for Salomon, maybe you could just help us think about the roadmap for distribution there as you look at the running specialty channel in the U.S. and how we should think about some of the channels' willingness to adopt some of the key initiatives like Salomon's GRVL and road products that you guys have coming out anchoring the brand on the performance side.

Michael, it's Andrew Page. Thanks for the question. One of the things I want you to keep in mind is that given current exchange rates, the second quarter is going to have about a 200 to 250 basis point tailwind on revenue. The other thing is that we are meaningfully through the second quarter and we're excited about the trends we see so far, and that's given us confidence to continue to believe in the momentum that we had exiting Q1. Again, remember, we have a differentiated set of products in our portfolio. Our products continue to be premium, innovative with a lot of technical elegance, visible technology and functionality. They are highly differentiated. So even given macro uncertainty, as consumers continue to prioritize quality and performance in this category, we believe our portfolio is well positioned.

We have a continuous pipeline of product making sure that they get the full support from marketing and that we are organizing events to drive sales through. The third quarter of '26 looks very strong for us; of course it's at a small scale, but we have a very high level of confidence in this environment.

Your next question comes from the line of Matthew Boss from JPMorgan. Matthew, your line is now open.

Congrats on a great quarter. So a two-part question. James, first, could you elaborate on the strong momentum, which you cited as continued into the second quarter. Have you seen any moderation in any global region tied to this geopolitical backdrop? And if you could touch on real-time trends that you're seeing in China? And then Stuart, at Arc'teryx, could you break down drivers of the omni-comp acceleration in the first quarter or any signs of softening at all that you've seen so far in the second quarter relative to that 19% in 1Q?

Matt, thank you for your questions. First of all, we are in the middle of Q2, and we continue to see strong momentum across global regions and across all our brands. The momentum we saw exiting Q1 is continuing into Q2. China is still on track. In Q1, we benefited from Chinese New Year timing, which was relatively late this quarter, and that gave us a good opportunity for sales to expand during what is usually a hot season in Q1. In Q2, we continue to see strong momentum, especially around Labor Day and the May 1 long weekend. We also see good momentum for our brands overall. So far, we remain bullish on our overall development in the China market.

Matt, it's Stuart Haselden. To respond on Arc'teryx omni-comps: Yes, the trends that we saw in the first quarter have continued into the second quarter. We're really excited about what we're seeing across all our regions, and that's reflected in the guidance Andrew shared with you. In terms of the drivers, we saw a really healthy traffic-driven comp in the first quarter and now extending into the second quarter. I would attribute that to our ongoing brand awareness efforts—top-of-funnel marketing and community engagement across regions paying off. Conversion trends are also quite healthy and positive, which reflects the strength of our product offerings and the assortments our guests are finding as they shop our websites and stores. We're seeing strong guest acquisition; our guest file is growing at a healthy pace, with good retention and growing average spend per guest. Store productivity is improving as stores mature and season. So across the board, we're seeing strong drivers of that comp performance.

Matt, just to wrap up on the macro point: obviously, we don't live in a bubble and we're aware of the risks. That said, we're not seeing signs of a consumer slowdown in our data. Results were up across all regions in Q1 and momentum continued into Q2. The premium sports and outdoor market remains one of the healthiest segments and we benefit from that.

Your next question comes from the line of Laurent Vasilescu from BNP. Laurent, your line is now open.

I have a question for Guillaume regarding the Americas wholesale expansion. I think it was called out that JD and Foot Locker are early innings. But curious to know, are there any limitations for the brand to go into DICK'S Sporting Goods? And I think, Guillaume, you mentioned that you're in one-third of run specialty stores currently. Is there an opportunity or is there a limitation for you to get to one-third of the big-box accounts in the U.S? And then Andrew, a question on input costs: I appreciate that you called out that you locked in freight for the year, which is great. But you did mention that if oil prices maintain at these levels, you could see an impact potentially on freight or potentially raw materials. If that's the case, any chance you can quantify that for the audience?

Let me take the input-cost question first. As oil prices have continued to see pressure, I want to emphasize that the impact on us so far is nominal. We have locked in our freight and logistics costs for the next year. That being said, if oil prices persist at elevated levels for an extended period, there could be some trickle-down effect on costs and potentially on us, but there's nothing material to quantify today. We are aware of the macro and would monitor any seismic shifts, but at this time we are not seeing a quantifiable impact that would meaningfully change guidance.

On Salomon wholesale in North America: we have a clear playbook that focuses on where we see consumer demand. We are not looking to expand into channels where we can't get traction and consumer pull. For running specialty distribution, we have a pipeline of innovation and the specialty channel understands Salomon product. With limited aided awareness, we can still have success in the running space. For large partners and big boxes, the challenge is building the awareness required to drive sell-through and consumer demand. This is why we are sticking to our strategy: starting from epicenters, building awareness and then expanding into big boxes carefully, door by door, to ensure we create success. From what we have learned so far, we are starting to accelerate at partners like JD and Foot Locker. We are already strong with partners like RAI and Nordstrom and are developing quickly. The next two biggest targets are Foot Locker and JD Sports where we see opportunity, and we will accelerate the playbook thanks to our brand momentum. But once again, consumer demand comes first and we will build awareness before pursuing large-scale numeric expansion in North America.

Your next question comes from the line of Jay Sole from UBS. Jay, your line is now open.

Great. Maybe, Stuart, I'd like to ask you about Arc'teryx, especially the progress in the U.S. You talked about women's. Maybe just give us an idea of where you're at store-wise, what you see as the opportunity now and how you see overall sales trend given some of the new categories you penetrated and the progress you've made over the last 90 days.

Jay, it's Stuart. On the U.S., we're seeing really exciting acceleration in comp performance and the underlying traffic and conversion I mentioned earlier. We're seeing great traction: when we IPO'd we shared our view of the potential in North America and the long-term plan to reach 200 stores. We're still not even halfway there, and as we continue to evaluate markets, we see potential could even expand. We're on track and seeing great momentum in North America broadly. On women's specifically, we saw really strong continued strength: in Q1 our women's business was up over 40% and penetration increased around 200 basis points to almost 25% of total revenue. We believe our women's business can be over 30% of total revenue by 2030. We're effectively ahead of schedule toward that goal. As James mentioned, the core model redesigns—such as the Beta SV in the first quarter—have been fantastic selling products, and categories such as pants (Clarkia, Nia, Leutia) are performing very well. This gives us a lot of energy and excitement about the potential women's offers to transform the brand into a truly balanced, dual-gender brand.

Your next question comes from the line of Brooke Roach from Goldman Sachs. Brooke, your line is now open.

Great. Your guidance today indicates a nice step-up in Salomon profitability for the year. However, it looks like you're planning for a little less improvement for the rest of the year despite some easy comparisons. Can you unpack how you're thinking about reinvestments in Salomon as you continue to expand the key epicenter city strategy as well as profit improvement for the brand ahead? On a medium-term basis, what do you think the right profit margin is for the Salomon brand that's achievable as you continue to fuel long-term growth?

Thanks, Brooke. On Salomon: we were methodical in selecting where and how we expand Salomon footwear, especially sport and lifestyle offerings. There are some sourcing constraints when you grow quickly — we grew 42% in Q1 — and you can't immediately scale production infinitely. So we were prudent in phasing growth. On margin, we're leaving room for brand building and investments: global campaigns, GRVL campaigns, local activations, infrastructure investments in technology and people, influencer and event partnerships, and more brand store openings globally, especially in Asia. We believe the guidance is prudent; it reflects the investments we want to make and also accounts for demand outpacing supply in the near term. It is a good problem to have and we are focused on building a sustainable high-quality margin profile as the brand scales.

Your next question comes from the line of Lorraine Hutchinson from Bank of America. Lorraine, your line is now open.

Speaking with Salomon, can you discuss the momentum of sport style versus performance? How are you working to ensure that mix doesn't become too skewed toward one versus the other?

Thanks for the question. The success of Salomon in sport style is notable because five or six years ago this category was far less developed. When you consider why people are choosing Salomon for sport style, it's partly the brand positioning and partly product design that resonates with new consumer cohorts. We're investing heavily in road running and gravel running, which is a key story for our running strategy and helps balance performance and sport-style development. Sport style is growing faster today, but performance categories—especially gravel and road, which are still small—are our fastest-growing performance segments with strong traction in core distribution. This mix gives us confidence that we can actively manage our portfolio and lifecycle development so that sport style growth does not come at the expense of performance credibility and continued performance development.

Your next question comes from the line of Paul Lejuez from Citi. Paul, your line is now open.

I wanted to understand your tariff assumption a little bit better for Q2 and the rest of the year. Just curious how you're treating the inventory that you already brought in at the 10% rate, are you attaching a higher tariff rate to that product? Or do you assume it just doesn't flow through in the second quarter? And then secondly, curious if you can talk about what changed within your second-half guidance by region or brand?

Paul, thanks for the question. Our guide does not contemplate any tariff change since before the Supreme Court ruling; we have assumed the higher rates that were in place prior to the decision for Q2 and the remainder of 2026 in our guidance. That said, the tariffs have come down in practice, and to the extent tariffs are lower, that lower rate would flow through gross margins. The delta is relatively small for our exposure and not material to our overall gross margin. Regarding refunds: we have applied for refunds and received a small amount last week, which was inconsequential to guidance. We have not booked any future tariff refunds because we don't have sufficient visibility on realization. As for the second-half guide and regional or brand-level changes, we are not getting into that level of color on the call beyond the segment and full-year guidance we provided. The biggest driver of the guide update was visibility into Q1 and the trends we see exiting Q1 and into Q2.

Pardon me, please go ahead.

With regard to the second half, I reiterate that we remain confident in the full-year guide given the strength exiting Q1 and the trends into Q2. We chose not to provide more granular regional or mid-year breakdowns at this time beyond the segment-level guidance already included in the release.

We have now reached the end of the Q&A session. I would like to turn the call back to management for closing remarks. Please go ahead.

Thanks, everyone, for joining. I look forward to seeing you in about 90 days on our second quarter call. Have a great rest of the week.

This concludes today's call.