Amer Sports, Inc.

Thank you for standing by and welcome to the Omersports third 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'd 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. Please go ahead.

Welcome, everyone. Thanks for joining AMR Sports' earning call for the third quarter of fiscal year 2025. Earlier this morning, we announced our financial results for the quarter ended September 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 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 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 view at both the group and segment level, and also walk through our guidance for the full year 2025, as well as an initial high-level sales and margin outlook for 2026. Arc'teryx CEO Stuart Hazelden and Salomon CEO Guillaume Mazank will join for the Q&A session. With that, I'll turn the call over to James.

Thanks, Omar. Amerisport's strong momentum continued in the third quarter as our unique portfolio of premium technical brands continues to create wide space and take share in sports and outdoor markets around the world. All three segments performed extremely well, led by exceptional Solomon footwear growth and Acterys Omnicom acceleration and solid growth from Wilson Tennis 360 and our winter sports equipment franchise. We delivered strong results across the P&L, including 30% growth, 130 base points of adjusted operating margin expansion, and more than doubling our adjusted EPS. Our performance was led by very strong growth and profitability in outdoor performance led by Solomon Footwear, and technical apparel led by Acterys. We also had a solid contribution from the ball and racket segment led by Worsham Tennis 360. All four regions accelerated in Q3 and achieved double-digit revenue growth, and that strong momentum has continued into Q4. We believe Inverse Sports is a uniquely positioned company within the global sports and outdoor space. Our specialized, highly technical brand serves the premium sports and outdoor market, which continues to be one of the healthiest segments across the global consumer landscape. 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, Acterix is a breakout brand story. with leading growth and profitability for the outdoor industry driven by its disruptive direct-to-consumer model. Third, Salomon Footwear has unique products and brand position and a very strong demand, but still a small share of the global sneaker market. Fourth, Worsen Equipment and our winter sports equipment brands already have leading market share and will deliver slower long-term growth except for Wilson Soft Goods, which we believe has significant long-term growth potential. And fifth, we have a strong differentiated platform in Great China, where we continue to deliver best-in-class performance across our three big brands. I want to take a moment to address September fireworks incident. We regret our involvement and are working closely with the local authorities to address the impact. We remain deeply committed to our community and the consumers and are taking actions to ensure we do better going forward. Before I turn it over to Angel Paige, allow me to briefly recap Key Brand's highlights from our three segments, starting with technical apparel, which is led by Acterix. Acterix delivers another quarter of broadband strength across regions. channels and categories, especially footwear and women's. We are encouraged by technical apparel's continued momentum in the direct-to-consumer channel, where Omnicom re-accelerates to 27% from 15% in Q2. We envision Acterys as a truly global brand with significant runway to grow in all major markets, And we are particularly encouraged by the meaningful Q3 acceleration in North America and Europe, as well as continued strength in Asia and China. Strong women's momentum continued in Q3, growing 40%, and was one of Octavia's fastest-growing categories. We continue to see a large opportunity to serve women in the outdoors in a different way, focusing on pinnacle design and performance. The new women's luthier pants was a standout performer in the quarter and was a top five model across all U.S. epicenters. Our women's climbing pants, the Clarkier, also continues to be widely popular since its launch last year. For Fall-Winter 2025, we are expanding our focus on color and have launched new models like the near pants and the women's only sheer jacket styles like Emery's and Altair. We continue to experience rising brand awareness and affinity with women in the U.S. and Europe, as we have improved fit, style, and function. As we discussed at our recent Invest Day, women will represent approximately 25% of global arterial sales in 2025, and we expect it to become 30% of sales by 2030. Fulwell also continues to be a key growth driver with 35% growth. Shoe models launched in the fall include the Conceal, a modern take on the classic approach shoe, which is light, grippy, and built for long technical missions. We also launched the Northern Nivirus, a winterized evolution of the Northern LE4. delivering high-performance running in cold conditions with a bold, modern silhouette. Looking forward, Acterix has an exciting pipeline of shoe launch for next year, and we continue to believe Footwear will be a large and profitable growth avenue for Acterix. Footwear will represent approximately 8% of global brand sales this year, and we expect it to reach 13% by 2030. Our Valence sub-brand is still small, but grows strong double digits in Q3, and we are excited for the future potential of this brand. Valence is expanding into new high-end wholesale partners in North America, and you can now find Valence in Nord Stream in the U.S. and Holt Renfro in Canada. Valence will represent approximately 5% of global brand sales in 2025, and we expected to reach 7% in 2030. Security and rebirth continue to be at the heart of our brand. We now have 32 rebirth centers, which support our successful September trading initiative, whereby guests receive a 30% credit for returning their used terrorist jackets. I would also like to mention peak performance. the other brand within our technical apparel segment. We are pleased to share that Peak Performance is seeing stabilizing sales and the profitability in its core European business, as well as early green shoots in North America. We introduced the Peak to IEI in September, and we are also opening a Vancouver flagship store in the previous Arc'teryx space in time for this winter season. Moving to the outdoor performance segment, which was led by another outstanding quarter from Salomon Footwear and Apparel, as well as a healthy performance from winter sports equipment. Salomon Footwear momentum continues across all regions, especially Asia, with strong demand for both sports style and the performance products. In addition to sneakers, bags and socks are also growing strongly across regions. There are several ongoing factors that give us confidence that Sonoma Footwear is well positioned for significant profitable growth in the year ahead. Number one, global sports style momentum continues. One of Sonoma's unique strengths as an outdoor brand is how well we are connecting with younger consumers, especially women. Our sports style offering is critical to Salomon's unique position as the modern outdoor sneakers brand, resonating with women in a way traditional outdoor brands have not. Second, our performance and the running lines are also having great success. Our gravel franchise is unlocking the run category for Salomon like never before. Salomon is gaining traction in the run specialty channel in North America and the EMEA. And even China, which has been a sports-style-centric market, is seeing traction in performance products. We are also seeing a benefit from improving capability to launch globally-coordinated marketing campaigns to support our sports style and performance launch. Third is Salomon's continually amazing brand, Keith. in Great China and Asia, where we believe we operate the most productive and profitable sneaker shops in the industry. Beyond Great China, 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 is critical to elevating Solomon's presence and awareness globally. Epicenter cities include Paris, London, Shanghai, Beijing, New York, LA, Milan, Miami, and more to come. Fifth, we are seeing accelerating demand in Europe, Solomon's home market. Solomon is experiencing strong pull demand from consumers, which drives strong pre-orders and a sales route for both sports style and performance. Sixth, in North America, which is still a much smaller sneaker market for us compared to Europe or Asia. It's growing at a solid double-digit rate, but under the surface. We can see that it's growing even faster. We are still exiting certain retail and e-com channels that weren't right for Solomon. where we simultaneously ramp up our North America direct-to-consumer footprint and wholesale expansion with the key strategic partners. Lastly, as we continue to elevate Salomon's brand awareness, we are excited about the upcoming Milano Cortina Olympics, where Salomon is a premium partner, outfitting all volunteers. This will be a great moment for the brand in its home market. I also want to mention our winter sports equipment franchise, which had a very strong Q3 with healthy shipment to start a season and historic outbox for the winter season overall. We were thrilled by the outstanding performance from Atomic Athletes in the World Cup in Southern Austria. The event represents a great start for the season in Europe with record attendance in the broadcast viewership. which is a positive indicator of the engagement and the passion people in Europe have for winter sports. In 2025, winter sports equipment is expected to represent only 28% of the outdoor performance segment, down from 46% in 2022. Moving to ball and racket highlights. Ball and racket had strong sales in Q3, with 16% growth, driven by continued strength in soft goods and the racket sports. Our tennis 360 products continue to resonate very well with consumers, from performance rackets to tennis apparel and footwear. Western soft goods continued its explosive growth, more than doubling in the quarter, with very strong growth across all three major regions. The brand has some big moments at this year's U.S. Open, both on and off the court. Worsham hosted brand activations across New York City during the tournament, including a four-day Worsham Tennis Club pop-up in SoHo, and our on-site U.S. Open shop again hosted record traffic and sales. On court, Arena Sabayka, when her four singles titles at the U.S. Open playing with the Worsham Raid V9. On the product side, in July, Worsham unveiled Ultra V5. This is the most versatile ultra racket yet, designed for intermediate to advanced players seeking both power and precision. Beyond the tennis 360, We saw slight growth in golf driven by email and the Dynapower line and the infinite portal. Baseball was essentially flat as growth in bets was offset by a decline in growth and the gear. Inflatables were down due to continued challenging market condition and the tariff driven price increase. U.S. retailers and consumers are showing some price sensitivity in this category. And we plan to introduce a slightly lower price point premium board next year to make sure we are well positioned as a sweet spot on the price spectrum. With that, I will turn it over to Andrew.