Quarterly Revenue Beat
Reported revenue of $458.0M, up 11% year-over-year (7% on a constant currency basis). Foreign currency contributed a $15M benefit to the quarter.
Strong Earnings and Margin Expansion
Adjusted diluted EPS of $0.25, up 32% year-over-year (from $0.19). Adjusted operating margin expanded 140 basis points to 7.7% versus prior year.
Record Quarter and Momentum at Saucony
Saucony revenue grew 15% in Q1, reaching a record level for the brand with broad-based growth across channels, regions and both performance and lifestyle categories; major product launches (Endorphin Azura, Endorphin Pro 5) drove demand.
Merrell Growth and Market Share Gains
Merrell revenue increased 9% in Q1 with solid growth across regions and categories, continued U.S. hike market share gains, successful launches (Agility Peak 6, Moab Speed 2/Moab 3) and strong marketing activation.
Wholesale Strength and Improved Full‑Price Mix
Wholesale revenue rose 10% year-over-year with growth across international and U.S. markets. Direct-to-consumer sales improved full-price mix (DTC ~flat overall), contributing to better gross margin dynamics.
Gross Margin Resilience and Tariff Mitigation
Consolidated gross margin was 47.6% (flat year-over-year) despite an unmitigated tariff headwind of ~270 basis points, reflecting effective tariff mitigation actions and structural improvements.
Balance Sheet and Cash Flow Progress
Net debt reduced to $519M, down $85M versus prior year. Company expects operating free cash flow of $105M–$120M and maintained capital expenditures guidance of ~$20M.
Raised Full‑Year Profitability Outlook
Reiterated full-year revenue guidance of $1.96B–$1.985B (midpoint ~5.2% reported growth) and increased outlook for gross margin (to ~46.4%), adjusted operating margin (to ~9.5%) and adjusted EPS range to $1.43–$1.58 (from $1.35–$1.50).
Strategic and Operational Advances
Progress on key initiatives: expanded key city strategy, e-commerce modernization, embedding AI, record marketing investments for brands, talent additions and stronger merchant discipline (SKU rationalization, product line focus).