Footwear Insight

ADIDAS Sales: Global gure grew by 13% to €6,153 million from €5,458 million in Q1. North American sales were up 2.8% in constant currency to €1,184 million, but excluding Yeezy impact, were up +13% on growth in wholesale and Direct-To-Consumer. Constant currency footwear sales stepped up 17%, fueled by double-digit growth in Originals, Sportswear, Running, Training, Specialty Sports, and Basketball. Operating prot: Increased by 82% to €610 million from €336 million in the year-ago period. Gross margin: Rose by 90 basis points to 52.1%, bolstered by a 160-basis-point gain in the Adidas brand gross margin and aided by lower product/freight costs and lower discounting. Key developments: In late April, maintained its FY outlook that calls for constant-currency sales growth in the high-single-digit percentage range and a corresponding operating prot of €1.7- €1.8 billion, excluding any new, major volatility and macroeconomic risks. ese include the potential of higher prices, due to new taris, hurting U.S. consumer demand. ON HOLDINGS Sales: +43% to 726.6 million Swiss francs versus 508.2 million Swiss francs in Q1/24. Wholesale revenues increased by 41.5% to 449.7 million Swiss francs, Americas' sales were 32.7% higher at 437.4 million Swiss francs. Operating prot: Improved 100% year- over-year to 77.0 million Swiss francs from 38.5 million Swiss francs. Gross margin: Increased 20 basis points to 59.9 percent. Key developments: Senior executives tell analysts that the company's "relentless focus on innovation and excellence across (our) operations and supply chain remains central to our vision." Martin Homann began as the sole CEO on July 1. H2 intros include the CloudBoom Max, the brand's rst "super shoe" for the everyday runner. Is forecasting at least 28% constant currency sales growth in FY25 and a gross prot margin range of 60.0% - 60.5%. VF CORP. Sales: -5% to $2,143.8 million in Q4 ended March 31 with e North Face +2% at $834.5 million and Timberland +10% at $376.0 million. Vans' sales contracted 22% year-over-year to $492.6 million. For the FY, e North Face (+1% to $3.7 billion) and Timberland (+3% to $1.61 billion) were up, but Vans was -16% at $2.35 billion. Operating prot: A Q4 loss of nearly $72.9 million compared to a year-ago loss of $373.4 million. For the FY, a prot of $303.8 million against a loss of $143.9 million. Gross margin: +550 basis points to 53.3% in Q4. Key developments: e company, while continuing to take aggressive actions to strengthen its overall business, is forecasting operating income growth and higher free cash ow in FY26. At Vans, one key positive note – sales of new products are growing, osetting declines in revenues from iconic styles. Inventories were down by 4% at FY end. An estimated 85% of all products are sourced in Southeast Asia and Central and South America, with China accounting for less than 2% of the total. WOLVERINE WORLDWIDE Sales: Constant currency sales rose by 5.6% to $412.3 million in Q1, with Merrell sales +14.4% at $150.6 million, Saucony at +31.3% at $129.8 million, and Wolverine sales -9.2% at $37.4 million. Operating prot: $19.7 million versus a year-ago loss of $3.1 million in the period ended March 29. Gross margin: +140 basis points to 47.3%. Key developments: Inventory was down by nearly 24% year-over-year to $271 million at Q1 end. Merrell is working to expand its lifestyle business in the U.S., partly by targeting younger consumers and women. Saucony, meanwhile, is expanding its lifestyle business with distribution in Foot Locker, Journeys, and Snipes. SKECHERS Sales: +7.1% to $2.41 billion for the three months ended March 31 with Americas' revenues up by 8.3% to $1.1 billion. U.S. sales increased by 6.9% to $853.7 million. Operating prot: Declined by 11.3% to $265.1 million from $298.8 million. Gross margin: -50 basis points to 52.0% on lower average selling prices in China and some other markets. Key developments: e company is being acquired by private equity rm 3G Capital in a deal valued at $9.42 footwearinsight.com July/August 2025 ~ Footwear Insight • 33

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