Amer Sports, Inc.

Thank you for standing by and welcome to the Omersports second quarter fiscal 2025 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, again, press star one. Thank you. I'd now like to turn the call over to Omar Saad, SVP, Capital Markets, and Investor Relations. You may begin.

Welcome, everyone. Thanks for joining AMR Sports' earning call for the second quarter of fiscal year 2025. Earlier this morning, we announced our financial results for the quarter ended June 30th, 2025, and the release can be found on our IR website, investors.amrsports.com. A quick reminder to everyone that today's call will contain certain 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 cause actual results to differ materially. Please see the safe harbor statements 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 reconciliation's most comparable IFRS financial measures. We'll begin with prepared remarks from our CEO, James Zhang, and CFO, Andrew Page, followed by a Q&A session until approximately 9 a.m. Eastern. James will cover key operational and brand highlights, and Andrew will provide a financial review at both the group and segment level, and also walk through our guidance for the third quarter and full year 2025. Arc'teryx CEO, Stuart Hazelden, will join for the Q&A session. With that, I'll turn the call over to James.

Thanks, Omar. Amerisport's strong momentum continues in the second quarter as our unique portfolio of premium technical brands continues to create wide space and a texture in sports and outdoor markets around the world. We remain confident in our ability to manage through higher tariffs and other near-term macro uncertainties. We are also ensuring that we develop each of our unique brands for higher quality, long-duration growth. the recent Solomon forward acceleration. Acterix continued momentum and steady results from our equipment franchise position as well for another strong performance in 2025 NBL. In Q2, we delivered strong results across sales margin and EPS. We generated 23% sales growth or 22% excluding currency impact. and we also expand our adjust operating margin by 260 basis points. Our performance was led by very strong growth and the profitability in both outdoor performance and the technical apparel, as well as a solid performance in ball and racket. Andrew will provide a more detailed update on our tariff exposure, but I'd like to emphasize that I believe we are well positioned to manage through a wide range of tariff given our premium brands with pricing power, secular growth trends, and relatively low U.S. revenue exposures. As I mentioned, we believe Amersfoort is a uniquely positioned company within the global sports and outdoor space. Several factors give me confidence for our near, medium, and long-term outlook. First, We own a unique portfolio of premium innovation-driven sports and outdoor brands. Second, Acterys is a breakout story with leading growth and profitability for the outdoor industry driven by its disruptive direct-to-consumer model. Third, Salomon sneakers have unique performance and design positioning. And the brand is experiencing a global acceleration, but it still has a small share of the global market. Fourth, Werson and our winter sports equipment franchises have high performance products and a leading share, but will deliver slower long-term growth, except for working soft goods, which has significant long-term potential. And the fifth, we have a strong differentiated platform in Great China. where we continue to deliver best-in-class performance across all three big brands. Before I turn it over to Andrew, allow me to briefly recap key brand highlights from our three segments, starting with technical apparel, which is led by our largest brand, Carix. Carix delivers another quarter of broad-based strengths across regions, channels, and categories, especially footwear and women. which continue to grow faster than the brand overall. We are encouraged to see technical apparel momentum continue in the direct-to-consumer channel, where we generate a very solid 15% Omnicom in Q2, despite facing the highest two-year Omnicom comparison of 2025. Arc'teryx stores continue to be critical to the growth strategy. especially how we engage with local consumers and the community. Acterys opened seven net new stores in Q2 with 12 opening offset by a closure of five legacy locations as part of our ongoing strategy to optimize the quality and the productivity of our store fleet. Acterys' store expansion strategy includes a mixed different format ranging from multi-level large-scale alpha flagship stores to small-format, very distinct mountain town shops. In EMEA, key new store locations this quarter include our first up-to-date stores in Milano and Stockholm. In North America, we opened our new mountain town shop at the Banff Resort in Canada. which has been experiencing strong traffic since opening in April. It has been one of the top performing shops in the region. Another proof point that Arcturus can be relevant year round, even in summer. We opened a new flagship in Vancouver on Lobson Street, the best location in the city with excellent performance since opening in July. We are also very excited about our first store opening in New York City in Q4, right on 5th Avenue at Rockefeller Center, one of the highest traffic shopping locations in the world. In China, we opened our first brand stores in the iconic Peninsula Hotel chain in Beijing. The store represents our most elevated expression of the brand, designed for top-tier luxury shopping experiences. For 2025, We continue to plan to open approximately 25 net new active stores globally, with the most coming in North America. Our store opening plan incorporates a similar level of gross new stores as in 2024, partially offset by the closure of certain outlets and other suboptimal locations. We believe a high-quality retail network is much more important to long-term success than chasing the fast-paced store expansion. In Great China, we are focused on optimizing Acterys retail footprint rather than pushing new store expansion. This year, Acterys will have less store closure in Great China, including some legacy partner stores and the factory outlets. However, Acterys will still meaningfully increase its presence in China with large format, high quality, more productive locations. Looking ahead to 2026, we are planning Acterys to have next store opening in China after years of rationalizing the store freeze in that region. Community engagement remains critical to elevating Acterys brand awareness. In July, we host the 14th annual Acterys Academy in Chamonix, France. drawing thousands of participants from around the world to our climbing clinics and also drew strong sales to our local shops. Community engagement activities during Q2, including the fifth Arcteryx Climbing Academy in Longdale Valley in the UK and our All Rise Climbing event in the San Francisco Bay Area. Shifting to product, footwear continue to be Arcteryx fastest-growing category in Q2, growing faster than the brand overall despite comparing against triple-digit growth last year. This spring, we launched the Doron LD4, an elevation of the most popular model made for long-distance mountain running. We also launched the Vertex V, which is a mountain running shoe designed to climb through technical vertical terrain. Looking forward, Arc'teryx has an exciting pipeline for shoe launch in the second half of 2025, and I continue to believe Footwear will be a large and profitable growth avenue for Arc'teryx. Women's also continues great momentum in Q2 with double digit growth across all regions, outperforming the brand overall. We see a big opportunity to serve women in the outdoor differently through pinnacle design and the performance. A great example of our design focus on women is the Clark Care Pen, which has continued to see explosive growth in Q2, stocking out quickly across store and e-commerce. Acterix is experiencing rising brand awareness and affinity with women in the US and Europe, as we have improved the fit, style, and the function. Moving to the outdoor performance segment, which delivered an outstanding quarter led by Salomon Footwear and Apparel. Salomon brand momentum continues to accelerate across all regions with very strong momentum in both sports style and the performance line. By region, Salomon softwares continue very strong growth in Great China and the APEC, while growth in both email and America accelerate meaningfully. Direct-to-consumer remains the fastest-growing channel for the brand, including a 28% army account with strength in both stores and e-commerce. In addition to sneakers, Salomon apparel, bags, and socks are also experiencing great momentum, especially Salomon running vests. Both sides are doing very well globally and continue to lead footwear growth. The momentum of our first-ever global footwear launch of the XT Whisper from Q1 continues into Q2, and it is especially resonating with younger female consumers. On the performance side, we are very pleased with our new AeroCry 3 running shoe, one of the best footwear launched in Salomon history, including traction in the run specialist channel. AeroCry3 uses a form called OptiForm Evo, which we believe represents a disruptive new generation material, offering the runner a new level of rebound and the comfort for running on loads or trails. In May, we launched our new Gravel line, which offers consumers a more versatile than ever running shoe that performs great on various types of terrain, from hard pavement to loose tearing in parks and on trails. While it's still very small, our gravel line is seeing strong early response from consumers and retailers. Another key launch for the quarter was the X-Ultra 5, the latest update to our iconic X-Ultra hiking boots known for lightweight and stability and upgrade technology. Originally, E-mail has also experienced very strong consumer demand for Salomon sneakers, with strong sell-through, reorders, and pre-orders driven by both performance and sports style. In Asia, direct-to-consumer continues to be the critical growth channel for Salomon, led by our highly productive Salomon compact shop format. We opened 16 net new Salomon shops in Great China this quarter, including both owned stores and partner stores. bringing our total count to 234. We are on track to reach approximately 290 Salomon shops in Great China this year, and we believe Salomon has the opportunity to grow to several hundred locations over time. We recently opened our second Salomon flagship in Shanghai, a 7,300 square foot pinnacle expression of the brand, located in the French Concession District, known for its boutique shopping, the C-level store offers a more immersed experience for consumers and has performed very well in its first month. In APEC, we opened 10 new settlement stores in Q2, five in Korea and five in Japan, including prime locations in the Marunouchi neighborhood of Tokyo and the Tsumushi in Seoul. Overall awareness and demand for Salomon footwear is rapidly growing across Asia. In the Americas, we continue to lay the groundwork to support significant future growth, and the Salomon softwares grow strong double digits in Q2. Our first U.S. store in New York City continues to show incredible traction with our consumers, and we plan to open three to four more in the great New York area this year or early next year, as well as continue to expand our presence in key wholesale accounts. New locations this fall include Woodbury Commons and Williamsburg Brooklyn. We are also opening stores in Chicago and West Hollywood this year, and we'll focus on San Francisco, Los Angeles and Miami in 2026. And from a wholesale perspective, Salomon is seeing growing demand across a variety of retailers, including IEI, Nord Stream, and they run specialty shops. Lastly, as we continue to elevate Salomon's brand awareness, we are excited about upcoming Milano Cortina Olympics, where Salomon is a premium partner, outfitting all volunteers. This will be an especially important moment for the brand in its home markets of Europe. Before I discuss Bo and Racket's highlights, let me cover the Wilson management transition. As you saw on our press release, Dual Duty has decided to step down as president and CEO of Wilson to pursue new endeavors outside the company. Our group CFO, Angel Page, has been appointed interim president and CEO of Wilson and the Bo and Racket segment and will continue in his current role as Amerisport CFO. The company has begun a comprehensive search for the next Wilson leader. We are grateful for Joe Doody's 30 years of service at Wilson and wish him well as he begins a new chapter. His contribution has been critical to the brand's success, especially the last six years as CEO. Looking forward, I have full confidence in Andrew Page to lead Wilson during this transition, while also continue to execute his responsibility as Amersport CFO. Now to the ball and racket segments. Ball and racket growth trends continue to be solid in Q2, with 11% growth given by strength in sportswear and racket sports. Our tennis 360 continues to resonate very well with consumers, from performing records to soft goods. On court, we are thrilled by the recent win by 18-year-old Canadian Victoria M. Bocco at the National Bank Open in Montreal. She's our first-ever Wilson head-to-toe tennis 360 athlete to win a WTA 1000 tournament. and it is now ranked in the top 25 of the world. With consumers, Werson's performance records continue to shine, including the successful launch of our larger federal classic collections, Discorded. In Pickball, we are also experiencing strong response to our Vesper pattern. Werson's software continues its excellent growth, more than doubling in Q2 2025. We continue to see a strong response to the ancient women's tennis shoe, which was recently chosen as the best new tennis shoe by Women's Health Magazine. We also continue to excel in China, and we'll open approximately 50 more Wilson tennis 360 shops in China this year. In North America, the new tennis 360 concept store in the Dallas, North Park Mall continues to perform very well. And we are excited about our new shop in Beverly Hills. And we continue to expand our 10360 test at Dick's Sporting Goods and other retail partners. Beyond the record sports, solid trends in baseball bats were offset by soft sales in gloves, inflatables, and golf. Now, I will turn it over to Andrew.