Overview
- The shares have fallen 57% year to date through Nov. 19 and sit about 68% below their record as of Nov. 18.
- North America has cooled, with Q2 comparable sales down 4% in the Americas and regional revenue up just 1%.
- China remains a bright spot, with revenue up 25% and continued aggressive store openings.
- Company growth has decelerated to 10% revenue in fiscal 2024 and 7% through the first two quarters of fiscal 2025, yet gross margin has averaged 57.6% over five years.
- Management flagged stale lounge and social assortments and slower execution, and it plans to lift the share of new styles to 35% by spring and speed design timelines, after cutting guidance due to the loss of the de minimis import exemption.