Amer Sports, Inc.

Thank you for standing by. My name is Jael and I will be your conference operator today. At this time, I would like to welcome everyone to the Amerisports fourth quarter full year fiscal earnings 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 in this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, simply press star one again. I would now like to send the conference over to Omar Saad, and Head of Investor Relations. You may begin.

Hello, everyone. Thanks for joining Omersport's earnings call for the fourth quarter of fiscal year 2025. Earlier this morning, we announced our financial results for the quarter and year ended December 31st, 2025, and the release can be found on our IR website, investors.omersports.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, and are subject to certain risks and uncertainty 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, then Andrew will provide a financial review at both the group and segment level, and also walk through our guidance for the first quarter and full year of 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. Fourth quarter was a great finish to a breakout year for Amer Sports. Our growth was led by our flagship Arcturus RAM and the rising star, Solomon, which recently surpassed the $2 billion US dollar sales file. In 2025, we generated 27% revenue growth to $6.6 billion and a 170 basis point of adjusted operating margin expansion to 12.8% with double-digit growth across all segments, regions, and channels. In the fourth quarter, We grow sales 28%, and the strong momentum continues into Q1. Our performance was led by technical apparel and outdoor performance, with solid contribution from winter sports equipment and the ball and the racket. All four regions achieved solid double-digit revenue growth. Although we generate solid growth margin expansion in Q4, our just operating margin declined 110 base points. This was entirely due to accelerate SG&A investment to support key growth opportunities, particularly for Solomon. Looking forward, we believe we are well positioned for strong and profitable growth within the premium sports and outdoor markets, which continues to be one of the healthiest segments in all of consumer. Several factors gave me confidence in our outlook. First, We own a unique portfolio of premium innovation-driven sports and outdoor brands. Second, Actelix is a breakout brand with leading growth and profitability for the outdoor industry, driven by its disruptive direct-to-consumer model. Third, Salomon Footwear has a comparing and a unique brand position, but still only a small share of the global sneaker market. Fourth, our Wilson and Winter Sports Equipment franchises already have leading market position, will deliver slower long-term growth, except for Western soft goods, which has significant growth potential. And fifth, we have a strong differentiated platform in Great China, where we continue to deliver best-in-class performance across brands. Before I turn it over to Andrew, I will briefly recap key highlights from our three segments, starting with technical apparel. Apparels deliver another excellent quarter of floor-based trends across regions, channels, and categories, especially for women and women. Technical apparel generates a very solid 16% omnicom driven by strong full price growth and also healthy segment margin expansion year over year. Technical apparel sales plus 34% was our highest growth quarter of the year. We continue to envision Acterix as a truly global brand with significant runway in all major markets, and we're encouraged that the brand is generating double-digit omnicomps across all four regions. Women was Acterix's fastest-growing category in Q4, with over 40% growth. We continue to enjoy rising brand awareness with women across regions. as we improve fit, style, color, function, and the newness. We created a significant amount of newness in women's this past fall, which drove notable incremental growth in key product categories. We saw especially strong momentum in ski and acceleration with the Serum Atom SE, and also the new Endesa Down Jacket, which is a warm waterproof ski jacket at a pinnacle price point. Women's bottoms also continue to be popular following the successful launch of the Clarkier, Luthier, and the Neopens in 2035. Moving to footwear, which grows nearly 40%, driven by strong growth in all markets. Top performing models were the Northern ALT4 Trail shoes, our most successful launch to date, followed by the Kopec Cortex hiking shoes. Looking forward, Arc'teryx has an exciting pipeline of shoe launches for 2026, as we continue to believe footwear will be a large and profitable growth avenue for Arc'teryx. Our Valence sub-brand is still small, but it grows strong double digits in Q4, and we are very excited for the future of this unique brand. Valence stirs a lot of interest at the Paris Fashion Week, with shoe room a point tripling from last year. We expect a strong double-digit growth from Valence in 2026 as we further develop our collections and expand distribution. Secularity and rebirth continue to be at the heart of our brand. We opened eight new rebirth centers in Q4, bringing the total to 43. In Q4, we increased the credit that guests receive when they trade and use a character product to 30% from 30% privacy. which has driven a notable jump in trading activity. I would also like to highlight recent leadership announcement at Acterys. First, we welcome Avery Baker, our first ever Chief Brand Officer, who joined most recently from Palm Beach Helfiger. Avery is stepping into a newly created enterprise-wide load that will bring together global marketing strategy, as well as consumer experience, insights, and the analytics team. We also welcome Tobia Prevedero, our new head of EMEA. Tobia brings more than 20 years of international leadership experience across EMEA and APEC, most recent at Cilin and Gucci. I would also like to mention Peak Performance, our other technical apparel brand, which delivered solid growth in Q4. 2025 marked the brand's return to growth, with sales increasing across all regions and channels. The brand also continued to improve profitability, driven by our concentrated efforts to reduce promotions and increase full price selling. Moving to the outdoor performance segment, which was led by another outstanding quarter from Salomon Footwear and Apparel, and a solid performance from Winter Sports Equipment. 2025 was a breakout year for the 79-year-old Salomon brand, which grows 35% to more than $2 billion of sales. Salomon footwear momentum continues across all regions, especially Asia, with a high demand for sports style and performance. There are several ongoing factors that give us confidence that Salomon footwear is well positioned for significant profitable growth in the years ahead. Number one, global sports style momentum continues. One of Salomon's unique strengths as an outdoor brand is that we are connecting with women and the younger consumer in a way traditional outdoor brands haven't. Sports style is critical to Salomon's position as a modern outdoor sneaker brand. And the success of XT Whisper is the first example of how we can successfully expand sports style beyond the XT6 franchise. Second, our performance and the running lines are also having great success. We continue to believe our new Gravo franchise is helping to unlock 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 strong traction in performance products. Third is Salomon's amazing brand in Great China and Asia, where we believe we operate the most productive and profitable sneaker shops in the industry. In 2025, Salomon's growth sells very strong double digits in Great China, driven by both sports style and performance, as well as strong growth in apparel. Beyond Great China, Salomon is 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 elevate Salomon's presence and awareness globally. Epicenter cities include Paris, London, Shanghai, Beijing, New York, LA, Milan, and more to come. Fifth is a strong pool demand we are seeing from consumers in Europe, Solomon's Home Market, driving strong reorders, preorders, and the sales. Both styles continue to be the close driver, but we have also seen a real inflection in in Europe, support by marketing campaigns, in-store events, and the running event activations. We are seeing especially strong performance in European epicenter like Paris and London, with strong double-digit army pounds. Also, Salomon opened its first-ever office and showroom in Paris, which is designed to elevate our brand presence in the city, strengthen our connection with buyers and the community, as well as support top talent acquisition. Sixth is North America, which is still a much smaller sneaker market for us compared to Europe or Asia. North America grows accelerated in q4 driven by sports star we remain focused on wrapping up our north america direct to consumer footprint and the wholesale expansion with the key strategic partners early signs are positive as our north america audible is experiencing strong growth solomon is also making key investment in leadership in january we appoint our first ever creative director hackie solomon Hege arrives following tenure at Diesel and most recently MM6 and will lead both product design and brand creative direction. Lastly, I also want to mention our winter sports equipment franchise, which had a very strong Q4 despite challenging weather conditions. The market remains healthy despite the low snow in certain regions. Participations and enthusiasm for ski and snowboard are at record levels this winter. The recent Milano Cortina Winter Olympics Games were a big moment for Amherst Sports Group, especially Salomon, who outfitted all 27,000 official staff and volunteers, head to toe. Between Salomon, Akteric's peak performance, Hamada, and also Atomic, which is already one of the most successful aquaski racing brands in history, our brands sponsored more than 200 athletes at the games, winning an incredible 59 medals, a dominant performance. Congratulations to our athletes and the teams. Moving to ball and racket, which had a strong Q4, sales growth 14% driven by continued strength in soft goods. a return to growth in baseball and acceleration in golf. Werson Soft Goods continued its explosive growth, doubling in 2025, including very strong double-digit growth in Q4. Our Werson Soft Goods offering is resonating with consumers in both wholesale and direct-to-consumer channels and across all major regions. Werson is unique in its ability to outfit tennis athletes from head to toe, including rackets and accessories. And we are excited to have signed six new Western Tennis 360 athletes on tour, including World Top 10 player, Eric Stamina, bringing our total account to 16 players. Beyond tennis, we also saw our return to growth in baseball, driven by strong best selves led by the Louisville Slug Supra and the five other best among the top 10 this season. Lastly, before I turn over to Andrew, I'm pleased to announce Cary Art as the next president and the CEO of Western Brand, effective March 1st. Cary is a proven brand CEO and a C-suite executive with great experience in the global soft goods, sports, and outdoor industries, including Harry Hansen, Levi's, and Nike. She began her career as an officer in the United States Navy, serving both in the U.S. and abroad. We are excited to welcome Carrie to the Wilson and Amos sports team. With that, I will turn it over to Andrew.