Overview
- Third-quarter revenue rose to $1.756 billion, up about 30% year over year, with net income of $143.1 million and adjusted EPS of $0.33 versus the $0.25 consensus.
- Full-year 2025 guidance increased to GAAP EPS of $0.88 to $0.92 and sales of $6.375 billion to $6.427 billion, with gross margin guided to 58% and operating margin to 12.5% to 12.7%.
- Management cited exceptional Salomon footwear momentum and an Arc'teryx omni-comp reacceleration, including 35% growth in Arc'teryx footwear and strong wholesale contributions.
- Direct-to-consumer grew 51% led by Salomon in Greater China and APAC, with 19 net new Salomon shops opened in Greater China during the quarter and a planned ramp to 290 by year-end; Arc'teryx added 12 net new stores year to date toward roughly 25 for the year.
- Shares climbed nearly 8.5% Tuesday to close at $33.36 and traded up about 5% Wednesday near $35, as UBS lifted its price target to $54 and Evercore ISI to $46, while Goldman highlighted late-quarter China brand noise and Q4 guidance that trails prior consensus.