AS - Momentum surging in tough macro; unique positioning and strong execution yield robust results

研报英文原文证据摘录

AS - Momentum surging in tough macro; unique positioning and strong execution yield robust results

Truist Securities

Momentum for Salomon continues to drive robust topline growth and GM expansion for the Outdoor Performance segment - 1Q

Outdoor Performance revenues of $714mm handily beat Street’s $631mmE and grew 33% CC with omni-comps of 29% (+89% on a 3-year

stack basis). Gross margins for the segment also continued to expand driven by positive mix shift across product, region, and channels

(+57% DTC growth in 1Q). Notably, OP segment op margins expanded ~470bps YOY in 1Q (last quarter op margins were meaningfully

pressured by accelerated SG&A investments to support Salomon’s robust brand heat) and FY26 guidance now calls for OP operating

margins of 15.0%-15.5%. We still see meaningful room for further upside to margins over the MT/LT as the brand scales, especially given

that the current outlook embeds (1) substantial brand-building investments, (2) incremental supply chain infrastructure costs to support

recent outsized growth trends, and (3) elevated tariff/fuel costs. Further, mgmt highlighted an acceleration in North America (and strong

sell-throughs/orderbooks) as awareness grows and they expand distribution with new and existing partners in the US including Foot

Locker and JD Sports. We believe getting premium access to more high-heat sportstyle products like Salomon was a key driver of DKS’

FL acquisition and we’re bullish on their leading scale/positioning across the broader premium athletic space.

Arc’teryx momentum remains robust/broad-based across regions, channels, and categories - Technical apparel revenues of

$885mm in 1Q (ahead of Street’s $869mmE) grew 28% CC with 19% omni-comp growth (a modest acceleration from +16% last quarter).