Hello everyone. Thanks for joining Amer Sports' 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.amersports.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 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 Zheng, and CFO, Andrew Page, followed by a Q&A session until approximately 9:00 AM 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 2026.

Arc'teryx CEO, Stuart Haselden, and Salomon CEO, Guillaume Meyzenq, 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 Arc'teryx brand and the rising star Salomon, which recently surpassed $2 billion sales bar. In 2025, we generated 27% revenue growth to $6.6 billion, and 170 basis points of adjusted operating margin expansion to 12.8%, with double-digit growth across all segments, regions, and channels.

In the fourth quarter, we grew 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 Ball & Racquet.

All four regions achieved solid double-digit revenue growth. Although we generated solid gross margin expansion in Q4, adjusted operating margin declined 110 basis points.

This was entirely due to accelerated SG&A investment to support key growth opportunity, particularly for Salomon. Looking forward, we believe we are well positioned for strong and profitable growth within the premium sports and outdoor market, which continues to be one of the healthiest segments in all of consumer.

Several factors give me confidence in our outlook. First, we own a unique portfolio of premium, innovation-driven sports and outdoor brands.

Second, Arc'teryx is a breakout brand with leading growth and profitability for outdoor industry, driven by its disruptive direct-to-consumer model. Third, Salomon footwear has a compelling and unique brand positioning, but still only a small share of the global sneaker market.

Fourth, our Wilson and winter sports equipment franchises already have leading market positions, will deliver slower long-term growth, except for Wilson soft goods, which has significant growth potential. Fifth, we have a strong differentiated platform in Greater 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. Arc'teryx delivered another excellent quarter of broad-based strength across regions, channels, and categories, especially footwear and women's.

Technical Apparel generated a very solid 16% omni-comp, 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 Arc'teryx as a truly global brand with significant runway in all major markets, and were encouraged that the brand is generating double-digit omni-comps across all four regions. Women's was Arc'teryx fastest-growing category in Q4, over 40% growth.

We continue to enjoy rising brand awareness with women across regions, as we improved fit, style, color, function, and 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 insulation, with the selling Atom SV, and also the new Andessa 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 Clarkia, Liucia, and the Nia Pant in 2025.

Moving to footwear, which grew nearly 40%, driven by strong growth in all markets. Top-performing models were Norvan LD 4 trail shoes, our most successful launch to date, followed by the Kopec GTX 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 Veilance sub-brand is still small, but grew strong double-digit in Q4, and we are very excited for the future of this unique brand.

Veilance stirred a lot of interest at the Paris Fashion Week, with showroom appointments tripling from last year. We expect strong double-digit growth from Veilance in 2026, as we further develop our collections and expand distribution.

Circularity and ReBIRD continue to be at the heart of our brand. We opened eight new ReBIRD Service Centers in Q4, bringing the total to 43.

In Q4, we increased the credit that guests receive when they trade in used Arc'teryx products to 30% from 20% previously, which has driven a notable jump in trade-in activity. I would also like to highlight recent leadership announcements at Arc'teryx.

First, we welcome Avery Baker, our first-ever Chief Brand Officer, who joined most recently from Tommy Hilfiger. Avery is stepping into a newly created enterprise-wide role that will bring together global marketing, strategy, as well as consumer experience, insights, and analytics team.

We also welcome Tobia Prevedello, our new Head of EMEA. Tobia brings more than 20 years of international leadership experience across EMEA and APAC, most recent at Celine 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 grew 35% to more than $2 billion of sales. Salomon footwear momentum continues across all regions, especially Asia, with high demand for sportstyle 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 sportstyle momentum continues.

One of Salomon's unique strength as an outdoor brand is that we are connecting with women and younger consumers in a way traditional outdoor brands haven't. Sportstyle is critical to Salomon's position as a modern outdoor sneaker brand.

The success of XT-Whisper is the first example of how we can successfully expand sportstyle beyond the XT-6 franchise. Second, our performance and the running lines are also having great success.

We continue to believe our new gravel 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 EMEA, and even China, which has been a sportstyle-centric market, is seeing strong traction in performance products.

Third, is Salomon's amazing brand heat in Greater China and Asia, where we believe we operate the most productive and profitable sneak shops in the industry. In 2025, Salomon grew sales very strong double-digit in Greater China, driven by both sportstyle and performance, as well as strong growth in apparel.

Beyond Greater China, Salomon is experiencing surging demand in Korea and Japan, both large sneak 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 pull demand we are seeing from consumers in Europe, Salomon's home market, driving strong reorders, pre-orders, and sell-through. Sportstyle continues to be the growth driver, but we have also seen a real inflection in gravel in Europe, supported by marketing campaigns, in-store events, and running event activations.

We are seeing especially strong performance in European epicenter like Paris and London, with strong double-digit omni-comps. 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 growth accelerated in Q4, driven by sportstyle.

We remain focused on ramping up our North America direct-to-consumer footprint and wholesale expansion with key strategic partners. Early signs are positive as our North America order book is experiencing strong growth.

Salomon is also making key investment in leadership. In January, we appointed our first-ever Creative Director, Heikki Salonen.

Heikki 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 low snow in certain regions. Bookings, participations, and enthusiasm for ski and snowboard are at record levels this winter.

The recent Milano Cortina Winter Olympic Games were a big moment for Amer Sports Group, especially Salomon, who outfitted all 27,000 official staff and volunteers head-to-toe. Between Salomon, Arc'teryx, Peak Performance, Armada, and also Atomic, which is already one of the most successful alpine ski 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 & Racquet, which had a strong Q4.

Sales grew 14%, driven by continued strength in soft goods, a return to growth in baseball, and an acceleration in golf. Wilson soft goods continued its explosive growth, doubling in 2025, including very strong double-digit growth in Q4.

Our Wilson soft goods offering is resonating with consumers in both wholesale and direct-to-consumer channels, and across all major regions. Wilson is unique in its ability to outfit tennis athletes from head to toe, including racquets and accessories.

We are excited to have signed six new Wilson Tennis 360 athletes on tour, including world top-10 player, Alex de Minaur, bringing our total account to 16 players. Beyond tennis, we also saw a return to growth in baseball, driven by strong bat sales, led by the Louisville Slugger Supra and five other bats among the top 10 this season.

Lastly, before I turn over to Andrew, I'm pleased to announce Keri Haas as the next President and CEO of Wilson brand, effective March 1st. Keri is a proven brand CEO and C-suite executive with great experience in the global soft goods, sports, and outdoor industries, including Helly Hansen, Levi's, and Nike.

She began her career as an officer in the United States Navy, serving both in the US and abroad. We are excited to welcome Keri to the Wilson and Amer Sports team.

With that, I will turn it over to Andrew.

Thanks, James. We had another strong performance in Q4, with healthy sales growth, gross margin expansion, and EPS, despite our decision to accelerate investment behind Salomon.

The strong sales and profitability of the Amer Sports portfolio allows us to accelerate resources behind the large Salomon sneaker opportunity, while still delivering great results at the group level. Let's first take a moment to reflect on the key highlights of 2025.

Amer Sports Group delivered 27% growth in 2025, with broad-based strength across brand segments, regions, channels, and categories. Arc'teryx continued its very strong trajectory, Salomon soft goods entered rapid growth mode, and Wilson Tennis 360 moved the needle in our Ball & Racquet segment.

We delivered meaningful adjusted operating margin expansion from 11.1% in 2024 to 12.8% in 2025. We also continued to reduce our leverage ratio, effective tax rate, and annual interest expense, leading to strong operating and free cash flow generation.

Now turning to our Q4 results. Amer Sports grew sales 28% in Q4 on a reported basis, and 26% in constant currency.

The strong group sales performance was led by Technical Apparel and Outdoor Performance, while Ball & Racquet also delivered solid growth in the quarter. By channel, the group continued to be led by DTC, which grew 38%, led by Salomon soft goods.

Wholesale grew 18% globally, which was led by Arc'teryx. Regional growth was led by Asia Pacific, which grew 53%, followed by Greater China, which increased 42%.

EMEA grew 21%, and the Americas generated 18% growth. Moving down the P&L.

Adjusted gross margin increased 140 basis points to 57.8% in Q4, primarily driven by positive segment, regional, and channel mix shift. Adjusted SG&A expense, as a percentage of revenue, deleveraged by 220 basis points, and represented 45.5% of revenues in Q4, versus 43.3% of revenues last year.

The deleverage was primarily driven by Outdoor Performance, as Salomon made the decision in Q4 to accelerate investments to support healthy, long-term growth. Also, the strong growth of Wilson soft goods continues to drive elevated SG&A investment within Ball & Racquet.

These factors were partially offset by Technical Apparel, which achieved SG&A leverage in Q4. Driven by the higher SG&A investments, as well as lower other operating income, our adjusted operating margin declined 110 basis points, from 13.6% last year to 12.5% in Q4.

Corporate expenses were $40 million, up from $12 million in Q4 last year, driven by higher share-based compensation. In addition, last year in Q4, corporate expenses benefited from certain one-time accounting reclassifications related to net finance costs.

D&A was $106 million, which includes $48 million of ROU depreciation. Adjusted net finance costs in the quarter was $21 million, which comprised primarily of $20 million of interest expense.

In the quarter, our adjusted income tax expense was $65 million, which equates to an adjusted effective tax rate of 27%. Adjusted net income was $176 million in Q4, compared to $90 million in the prior year period.

Adjusted diluted earnings per share was 31 cents, compared to 17 cents last year. Turning to segment results.

Technical Apparel revenues increased 34% to $1 billion, led by Arc'teryx. Growth was fueled by both 37% wholesale growth and 34% DTC expansion.

Technical Apparel generated a strong 16% omni-comps, led by full-price selling as we intentionally pulled back our participation in key promotional events, including Black Friday and Double 11. Regionally, the Technical Apparel growth rate was led by Asia Pacific, Greater China, the Americas, and EMEA.

All regions grew strong double digits. Q4 was the first full quarter post the Korea distributor acquisition, which contributed a low to mid-single digit percentage to Technical Apparel's growth rate in Q4.

In Q4, Arc'teryx opened 15 net new stores, with 21 openings offset by the closure of six legacy locations as part of our ongoing strategy to optimize the quality and productivity of our store fleet. New store openings included the new Arc'teryx Alpha store in Rockefeller Center in New York City, and mountain town stores in Aspen and Park City.

Arc'teryx also opened stores in Canada, Japan, Australia, and China in the quarter. Looking back at full year 2025, we opened 24 net new stores, excluding the Korea acquisition, and we plan to open 25 to 30 net new Arc'teryx stores in 2026, with the largest number coming in North America and also China.

Our store opening plan incorporates a similar level of gross new stores as in 2025, partially offset by the continued closure of certain outlets and other suboptimal locations. In Greater China, as planned, we had slight net store closures in 2025, which includes partner stores.

However, we still grew our own store count and overall square footage in China by opening larger format, higher quality, more productive locations. In North America, I want to highlight our second New York City Alpha store, which opened in October on 5th Avenue at Rockefeller Center.

The store is the most pinnacle expression of the brand in the US, and we are encouraged by the strong sales this winter. The newly opened mountain town stores in Aspen and Park City are also off to great starts.

We were very pleased by Technical Apparel's strong operating margin expansion in Q4. Adjusted operating margin expanded 160 basis points to 25.9%, driven by strong flow-through of revenue upside in the form of SG&A leverage.

This is a great proof point behind our confidence in the scalability of Arc'teryx's highly productive store model, as they comp positively over time. Moving to our Outdoor Performance segment, which saw revenues increased 29% to $764 million, driven by very strong performance in Salomon footwear, apparel, bags, and socks, and also supported by strong double-digit growth in winter sports equipment.

By channel, Outdoor Performance DTC grew 55%, led by new doors and higher productivity across markets, especially in APAC and Greater China. Outdoor Performance generated a 28% omni-comp, with strength in both stores and online.

Wholesale grew 17%, driven especially by strong results in Greater China and EMEA. Regionally, the Outdoor Performance growth rate was led by APAC and Greater China, followed by EMEA and the Americas.

The popularity of Salomon footwear continues to inflect globally, and we are doing everything we can to ensure we are well-positioned to fully develop this large opportunity over time. Salomon is positioned for significant growth in all three major consumer regions, and we are working hard to build the right team, operational, go-to-market, and brand building functions to support our growth.

In Asia, DTC continues to be the critical growth channel for Salomon, led by our highly productive Salomon compact shop format. We opened 33 net new Salomon shops in Greater China this quarter, including both owned stores and partner stores, bringing our total count at year end to 286 doors, adding nearly 100 new doors in 2025.

In 2026, we expect to continue store expansion in Greater China, but at a more moderate rate, adding approximately 35 net stores to the fleet. In December, we reopened the Salomon flagship store in Chengdu.

The store design is inspired by local Sichuan mountain scenery, and it is the first flagship store combining winter sports and trail running. In APAC, we opened net eight new Salomon stores in Q4, including Japan, Australia, and Korea.

The region finished the year with 113 Salomon stores, including partner stores, with 44 net new openings in 2025. Overall brand awareness and demand for Salomon footwear is growing rapidly across Asia.

In the Americas, Salomon soft goods growth further accelerated as we continued to lay the groundwork to support significant future growth. We are excited to see very strong order books for both spring/summer and fall/winter for 2026, with growing demand across a variety of high-quality retail partners, including REI, Nordstrom, JD Sports, run specialty shops, and other specialty retailers.

We also have improved our inventory position to answer the growing demand. Our brand awareness continues to rise across the Greater New York area as our shop in SoHo continues to show great traction with consumers, and we opened our second New York store in Williamsburg, Brooklyn in Q4.

The Williamsburg location strengthens our presence in the core New York epicenter, performing very well out the gate. Globally and in North America, we will continue to focus on our epicenter strategy in 2026 and beyond, particularly New York, Los Angeles, and Miami.

We currently plan to open 7 to 10 new Salomon shops in the US this year. In EMEA, we continue to expand our store fleet in key epicenters, including a third brand store in Milan, and a fourth in London.

We will further develop our Europe epicenters into Spain, Germany, and other key UK cities in 2026. For our winter sports equipment brands, Q4 was a strong quarter with double-digit growth, despite lower snow levels in the Alps and the Rockies.

In addition to strong market share in our core ski, boot, and binding franchises, we continued to see incremental growth opportunities in areas such as snowboarding and protective equipment. Moving to Outdoor Performance P&L.

Adjusted operating profit margin contracted 490 basis points to 6.2%, as Salomon made the decision to accelerate SG&A investments to support its significant growth opportunity in the global soft goods market. Outdoor Performance gross margin continued to expand, driven by positive mix shift across product, region, and channel.

This was more than offset by higher SG&A in Q4, driven by key investments to fuel Salomon's long-term global growth. These investments include impactful marketing campaigns to drive long-term brand awareness, including XT-Whisper in gravel, the Milano Cortina Olympics related marketing.

Also, we accelerated retail expansion, especially in China, where we opened 25 net new brand stores in Q4. Lastly, we increased investment in talent and operations, including higher incentive compensation given Salomon's performance versus plan, new talent acquisitions such as our new Creative Director and his team, and opening Salomon's new Paris hub.

I want to emphasize that we're seeing tangible benefits and high returns from our accelerated investments, including meaningful uplifts in Salomon's brand awareness since 2023, which has increased 15 points globally, including plus 15 points in Paris and plus 10 points in London. Moving to Ball & Racquet.

Revenue increased 14% to $337 million, driven by soft goods, baseball, and golf. We continue to see very strong momentum in Tennis 360 globally.

By category, the group was led by soft goods, up very strong double digits with continued momentum in all regions. Soft goods now represents approximately 15% of segment revenue.

Racquets had slower growth in the quarter due to timing of product launches and wholesale shipments, while underlying demand remains strong. With double-digit growth, 2025 was a great year for racquets, and we have exciting performance racquet launches in 2026.

Baseball returned to growth, driven by strong performance in bats, driven by successful product launches in fall of 2025, and golf ended the year with improved margins and solid growth, especially in EMEA and APAC, driven by a strong product offering. In other categories, we saw inflatables stabilizing in Q4 and returning to slight growth following a challenging first 9 months.

Regionally, the Ball & Racquet growth rate was led by China, followed by meaningfully accelerating growth in Americas, EMEA, and partially offset by slight decline in APAC. We had 10 new owned Wilson brand stores opening globally in Q4, split between Greater China and APAC.

Wilson Tennis 360 shops are performing well in China, and we opened 13 new shops in Q4, including partner doors. This brings the total owned and partner store count to 77.

In 2026, we plan to open approximately 30 Wilson Tennis 360 shops in China between owned and partner doors. APAC also continues to drive meaningful Wilson soft goods growth.

Our first store in Japan in Tokyo's Marunouchi district, and two stores in Melbourne, Australia are off to great starts. In North America, improving Ball & Racquet growth was led by baseball and soft goods.

In soft goods, we saw strong e-commerce comp growth in the region. Our expansion into warmer Southern markets is continuing to drive strong results.

Our Dallas NorthPark Center continues to perform very well, and we continue to expand our new Tennis 360 concept store into more Southern and coastal locations, including our new shops in Beverly Hills and Miami. We also continued to expand our Tennis 360 offering into more DICK'S Sporting Goods locations, including House of Sport.

Ball & Racquet segment adjusted operating profit margin improved 110 basis points to negative 2.6%, driven by solid gross margin expansion related to less promotional activity and better regional and channel mix. This was partially offset by SG&A deleverage due to investments in soft goods.

Now turning to the group balance sheet. Ending 2025 with $291 million of net debt and only 0.3 times net leverage, our financial foundation has never been stronger.

We generated $730 million of operating cash flow in 2025, compared to $425 million last year, driven by strong profit growth and disciplined working capital management. Additionally, given our strong financial position, post year end in January, we announced the redemption of $80 million of our outstanding $800 million 6.75% senior secured notes at a redemption price of 103.

We ended 2025 with inventories up 33% year-over-year, slightly elevated compared to our 27% sales growth, as expected. We remain very comfortable with the level and quality of our inventory.

The higher inventory growth is primarily related to four factors: number one, earlier receipt of seasonal Arc'teryx merchandise to prepare for better in-stock position; two, higher Arc'teryx goods in transit resulting from the greater use of ocean shipping versus air freight; three, FX translations from the weaker US dollar; and four, the addition of the Arc'teryx Korea inventory following the recent acquisition. We expect inventory growth rates to normalize beginning in the second half of 2026, when we start to cycle our improved in-stock positions and the higher use of ocean freight.

A quick housekeeping item as we turn to guidance. Beginning in Q1 2026, we will discontinue allocating certain corporate expenses that are not directly attributable to the operating performance of our reportable segments.

There will be no impact to our overall group adjusted operating profit margin. It is simply reallocating certain costs from segments to corporate.

For the full year of 2026, we expect group corporate expenses to increase by approximately 60 basis points, or approximately $50 million, related to costs reallocated from the segments. These cost reallocations to corporate will most benefit the Outdoor Performance and Ball & Racquet segment margins, and have a much more muted benefit to Technical Apparel.

Now turning to guidance. Guidance assumes the latest tariff rates for all countries will stay in place for the remainder of 2026 and beyond.

2026 is off to a strong start, and given the continued momentum from our highest margin Arc'teryx franchise, accelerating Salomon soft goods, plus the solid foundation of our equipment franchises, we are confident in our ability to deliver another very strong financial performance in 2026. For the full year, we expect reported group revenue growth between 16% and 18%, which assumes a 200 basis point benefit from favorable FX impact at current exchange rates.

We expect group adjusted gross margin of approximately 59% for the full year, with the margin expansion continuing to be driven by mix shift benefits. As we said in the past, we are confident in our position to manage through a variety of tariff scenarios, given our relatively low exposure to the US, strong brand portfolio with pricing power, and clean balance sheet.

We continue to expect an immaterial impact on our group P&L from higher tariffs in 2026. We expect adjusted operating margin of 13.1% to 13.3%, towards the low end of our long-term guidance of 30 to 70 bps of improvement, primarily due to the accelerating Salomon investment, opting for long-duration profitable growth over near-term profit flow-through.

We are committed to investing behind the large growth opportunities in front of Arc'teryx, Salomon, and Wilson Tennis 360, while still delivering against our long-term financial algorithms. Arc'teryx's size and profitability, and our strong sales growth and gross margin expansion at the group level, allow us the flexibility to invest behind Salomon and Wilson Tennis 360 in a way they could not as standalone entities.

We believe this is a unique advantage of our portfolio. Corporate expense is expected to be approximately $225 million, which includes approximately $50 million of cost previously allocated to the segments that I mentioned above.

We assume full year net finance costs of $105 million to $110 million, higher than 2025 due to a normalizing FX impact on the revaluation of certain non-monetary assets, as well as higher imputed interest expense on store leases as our retail network grows. The effective tax rate is expected to be approximately 28%.

This is an increase from 2025 as we generate a higher percentage of our taxable income in higher tax jurisdictions, and also as we cycle a one-time discrete tax benefit in the second quarter of 2025. We expect adjusted diluted EPS of $1.10 to $1.15, which is based on approximately 564 million fully diluted shares.

Also, we are assuming depreciation and amortization of approximately $400 million, including approximately $170 million of ROU depreciation. CapEx is expected to be approximately $400 million, versus $310 million in 2025.

The increase is mainly driven by increasing key investments in IT infrastructure and retail expansion. Turning to the segments, our full year sales forecast incorporates 18% to 20% growth in Technical Apparel, 18% to 20% growth in Outdoor Performance, and 7% to 9% growth in Ball & Racquet.

For Technical Apparel, we expect adjusted operating margin of approximately 22%. We expect Outdoor Performance segment margin of 14.5% to 14.8%, and we expect Ball & Racquet margin of 4.7% to 5%.

All three segments should generate gross margin expansion driven by mix shift, partially offset by higher SG&A reinvestment. While we don't usually provide quarterly segment guidance, given the Q4 2025 margin fluctuation in Outdoor Performance resulting from accelerated Salomon investments, I want to provide a little extra margin color for Q1 2026.

Although we will continue to invest heavily to support Salomon's growth, we do expect Outdoor Performance to return to modest year-over-year margin expansion in Q1. Turning to first quarter guidance.

We expect reported revenue growth for the group in the range of 22% to 24%, which assumes a 500 basis point benefit from favorable FX impact at current exchange rates. We expect adjusted gross margin to be approximately 59% in 1Q 2026, and adjusted operating profit margin to be 14% to 14.5%.

Our net finance costs for the quarter will be approximately $27 million, and the effective tax rate will be approximately 28%. We expect adjusted diluted earnings per share of 28 to 30 cents.

Lastly, I would note that should strong trends continue, and better-than-anticipated demand materialize, we believe we are well-positioned to deliver financial performance ahead of our expectations. With that, I'll turn it back to the operator for Q&A.

hey, guys. Thanks for taking our question here.

Appreciate all the help. A couple of technical ones for the model here.

The fourth quarter gross margin is usually a little bit above third quarter in the past. I'm just curious because there's a lot of moving parts here.

Was there something structural that we should consider going forward in fourth quarter, or were there any one-timers in one of the segments that we should consider as we model going forward? Then I guess, Andrew, the Salomon investments in 4Q, it sounds like those are the reasons for the operating margin guidance in 2026 to be at the lower end of the long-term algorithm.

Those investments from 4Q continue into first quarter? Just curious, maybe you could walk us through what some of the investments are in the first quarter.

Then bigger picture, as you think about the Salomon investments and the incremental growth to the algorithm you presented, are the investments incremental to the algorithm that you talked about with us, or it sounds like there's at least an element of it being pulled forward, and I'm wondering if you're stepping up these investments, if that means there's an element of gating the margin expansion today because you can imagine a bigger brand revenue level for Salomon than what you kind of talked about with us in the past.

A lot to unpack there, Michael. Happy to address a bunch of these.

As you think about the fourth-quarter gross margin, one of the things that you talked about was the trend from third quarter to fourth quarter. Just keep in mind that the fourth quarter, as you think about Outdoor Performance, is our largest quarter for winter sports equipment.

Winter sports equipment actually outperformed as well in the fourth quarter, and so that is going to create a bit of a drag on gross margin. Obviously strong business, but the fact is, it's a lower gross margin business, and when it outperforms, it affects it.

The other thing that you also want to think about is, on a comparative basis, recall that in 2023 we stood up a cost optimization program. You started to see the impacts of that cost optimization in Outdoor Performance in the back half of 2024.

As you get through and it anniversaried itself, in the fourth quarter 2025, you saw the anniversary of that cost optimization. If you think about all 2025, you saw material margin expansion in Outdoor Performance, and then it anniversaried itself, because now you kind of reset the gross margin to its new go-forward factor.

As you think about your first question really around the Salomon Salomon investments, in the fourth quarter, given that we opportunistically made key investments behind strong momentum of Salomon. Over recent years, we've had one big brand.

Arc'teryx has been on fire, and we've made key investments behind that growth. Now we have multiple high-return opportunities to invest in, especially as you think about the Salomon really inflecting right now.

Also keep in mind, in Q1, you will see Salomon margins return to moderate growth. Again, Q4, we opportunistically made the right investments behind that accelerated momentum.

The other thing is that this is the power of our portfolio. We run what we call our brand-direct offense, and because of that, we can get behind accelerating momentum in our brands in ways that these brands can't do on an individual standalone basis.

We continue to be committed to investing appropriately behind large growth opportunities in front of Arc'teryx, Salomon, Wilson Tennis 360, and we'll continue prioritizing long-duration opportunities over near-term profit flow-through. The last thing I want to say about that is that the gross margin mix, including Outdoor Performance, that continues.

That mix benefit continues. Q4, including Q4, Q4 had healthy gross margin mix shift and at the product, region, and the channel level.

Full-year op margin for the portfolio, just recall, that's 160 basis points expansion for the full year, and this is after consideration of the key investments that we made in the fourth quarter. To wrap it up before I turn it over to Guillaume to give you some real color on it, long-term, we still expect to have SG&A leverage.

I'll turn it over to Guillaume, who'll give you some real key points on some of the discrete investments we made.

Yes,

good morning, everybody. Yes, maybe if we can go a little bit more into details.

We take this opportunistic decision to fuel Salomon long-term expansion in Q4. I have really few strong example where we decide proactively to accelerate our positioning in the market.

The first one is we are driving few marketing campaigns in some key area, supporting XT-Whisper, which is, as James explained, we need to build the portfolio of key franchise products. On the top of XT-6, we need to have a kind of variety of products.

XT-Whisper looks like really a very promising opportunity, this is why we are pushing. The same for gravel running, which is also our point of difference in the market.

Finally, also we were preparing the Milano Cortina Olympic Games. Now you see the results, certainly you have seen the momentum we have been able to create during this Olympic Games, and of course it was kind of preparation of it in Q4.

On the top of that, we continue to have this retail expansion. We opened 30 stores in China in the quarter.

You certainly mentioned what was happening in Los Angeles, where we opened this store in Melrose, and at the same time we were building a campaign, it's how much we are building this ecosystem in every city where we open a store, we partner with our B2B partners, I think about a Shoe Palace, for example, which have strong presence in Los Angeles, and then we are driving media and campaign to attract these consumers, and it was really successful. This type of model require also some resources at the beginning just to have a kick start in the epicenter.

The last one is about talent and operation investments. You just hear that Salomon was growing by 35% in 2025, and of course we need to structure the company for a new scale.

We had to support, of course, incentive compensation, but also we were starting to acquire some new talent acquisition. The example of Heikki Salonen is a very good example of the level of ambition we put into Salomon.

The another one was the opening of the Salomon Paris hub, we have a new office. That we are based in Annecy, which is a kind of small city in the middle of the Alps, gorgeous one, but of course, the scale of the company require also a little bit more facility in different places.

We are a French-based company, Paris was kind of obvious opportunity for us, and of course it was requiring also this type of investment. It's also a place where we can capture trends, we can capture also world-class talents in the future.

Okay. Thanks for a lot of detail.

Michael, I'll just wrap on the one point, because I think the last point you talked about was there something structurally different about our algo?

There's not.

Like I said, we delivered 160 basis points to the bottom line after that investment. Our algo does and has consistently been 30 to 70 basis points plus on the bottom line.

We open this year with our guide at 30 bps. We believe that that's responsible.

It does not reflect a structural change in our investment. Our investments, as Guillaume just highlighted, we will opportunistically get behind growth momentum while still continuing to maintain our earnings algo.

It's early in the year, and should strong trends continue and greater demand materialize, we see no reason why we can't outperform our guide as presented.

Just want to clarify, 30 to 50

bps is

the range. 30 to 50.

Yep. Heard it.

Okay. Thanks, everybody, for all the help.

A lot of detail. Appreciate it.

Great, thanks, and congrats on another nice quarter. James

Thanks, Matt.

James, following the breakout year that you cited for the portfolio, could you elaborate on the current momentum entering the first quarter? Maybe what opportunities do you see for the Salomon brand to accelerate market share further in '26?

Stuart, have you seen any change in top-line momentum at Arc'teryx relative to the fourth quarter, or what's embedded to moderate within the 18% to 20% full-year forecast relative to mid-30s that we just see here exiting '25?

Matt, we're going to have Guillaume answer your question on Salomon, James will talk kind of global outlook for the space, including China, and then Stuart will finish, he's remote, on Arc'teryx.

When we speak about the Salomon momentum in sales, of course we see a very strong outcome. So '25 was really the year we confirm that was growing in all regions.

You see the traction in China and Asia Pacific, but our domestic market, which is Europe, was really coming back strongly, all the investment we have been doing in epicenter strategy with Paris, with London, and now we are looking for Milano was part of it, of course, but we see that we have the right strategy in order to drive momentum in both sportstyle and performance. Lately we see also that US is becoming a new place of growth.

Of course, we are still quite small compared to the market, which is, on one hand, a challenge, but also a great opportunity for us, but we see that we have early momentum in the sportstyle category. You see that this epicenter strategy in New York, LA, we open a store in Chicago as well, which is performing very well, and we see also that through data that there is some other good cities where we start to pop up.

The last one is we have also in US early signal, positive trend for running, thanks to gravel running, and you can imagine that if we are able to combine sportstyle and running in US, then Salomon could have very promising growth.

Yeah. Good morning, Matt.

Thank you for your questions. As I mentioned, okay, I still believe strong trends have continued into Q1 across board.

Andrew already gave out the guidance for our Q1, and top line will grow between 22% to 24%. Our three segments, basically they all have a very good forecast to achieve the target we set for them, okay.

It's a pretty good trend for time being. Specifically, I just want to specifically mention about the performance in China during the Chinese New Year.

We see a very positive consumer trends during the Chinese New Year in our brands. Also, okay, not in our brands, and also for the whole sports market overall, okay.

The consumption is very very strong. I think later on, you also will get a certain color from the other brands' annual reports, okay.

I think it's a quite good moment for us. However, I still want to say, okay, it's still a bit too early for us to say, okay, this is a very bullish situation in China market, okay.

At least we off a good start in 2026.

Okay. Then, Stuart?

Yeah. Hey, Matt.

It's Stuart. Off to a fast start in the first quarter.

Really pleased with the trends that we're seeing across all our regions, and we're seeing especially strong momentum in North America over the last few weeks. That's contemplated in the guidance that Andrew shared.

Then your question versus the 18% to 20% guide, what I would say is this is consistent with our prior practices. We view this as responsible in terms of the guidance we're offering investors, and there's nothing structural that would prevent us from capturing higher sales should demand materialize.

We're well-positioned, strong inventory position, as Andrew noted, to really convert upside, should it materialize. We're happy with the trends we're seeing and confident for the outlook for 2026.

Great color. Best of luck.

Next question.

Great.

Thanks, guys. Curious if you could talk a little bit more about the wholesale expansion opportunity in the US within the Salomon business, and what sort of growth should we expect with Salomon wholesale versus DTC this year?

Then, Stuart, also curious if you're thinking about adding any new wholesale partner doors for Arc'teryx this year. How should we think about growth there?

First Guillaume, then Stuart.

Thanks, Paul Paul, for asking. Clearly, our strategy is about omni-channel, we know that if we want to become a large sneaker and footwear brand in US, we absolutely need to partner with the key players.

We speak a lot about our D2C, we speak a lot about e-com, because we think that this is where we can express the best expression of Salomon, but of course, the strategy is really becoming omni-channel and partner with the key player. We have renewed support with REI, which used to be our historical partner in US when we were very focused on winter sports equipment and outdoor, and now we see that we are back on track with them.

Then in parallel, we have Nordstrom, JD Sports, and most of the running specialists, which are today our current targets in order to drive the growth. What we try to do also is not building a very big push, but saying door by door, city by city, having close partnership, make sure that we have a very close partner, good foundation of business, we are driving demand with them, and then we think that this is the best way to first of all win the shelf share battle in the market, but as well as wise expansion in term of number of doors.

We have this type of very accurate strategy in North America. The key driver at the end is really the consumer demand, and how we partner with them to drive this consumer demand.

Stuart?

Thanks, Paul. From an Arc'teryx standpoint, wholesale is emerging as an important channel for us across three of our key name strategies: footwear, Veilance, and women's.

In footwear, this is an important channel of distribution, different than apparel, we see the need to have a stronger strategy here. We've been building a sales team as part of our footwear business unit in Portland, and we're engaging with specialty run accounts, big box retailers as well, all in the premium, high-end, I would say very technical positioning, that'll be an evolution within our footwear business.

For Veilance, premium wholesale, Tier 0, as we call it, will help create higher brand awareness for Veilance, and just drive the business there. For women's, we see it as an interesting expansion of our distribution footprint, just to be relevant where she shops, where our female guest shops.

Across those three strategies, we continue to evolve our wholesale strategy. Hope that helps.

Thanks.

Thanks. Good luck, guys.

Good morning, and thank you for taking the question. At Salomon, I was hoping that you could unpack the proportion of growth that you expect to realize by region for the brand in 2026, and then if there are any specific regions that will receive an outsized SG&A investment this year?

As a follow-up, how much of the growth at Salomon do you expect to come from existing distribution partners versus new distribution partners in 2026? Thank you.

We expect to have growth in all region in the world. Clearly, the very good and positive sign today is Asia Pacific and Greater China continue to show very strong momentum, but now EMEA is really back on track, where I feel very proud of EMEA is also that we also qualify high-quality sales.

That sometimes in Europe the price point is sometimes an issue, but we feel very good on what we have been able to build in the long run, keeping quite premium positioning. The last one, which is a good news, is North America, where definitely small scale today, but very high growth and high demand, and especially from the last quarters, and we see that this momentum is really engaging for '26.

Existing versus

Once again, there was few area where we can look at. The existing distribution is growing with momentum.

We have of course a new kind of strategy in Europe and in US, because we enter also the sneaker market with sportstyle, and of course it requires some new type of doors. I just can name in Europe, JD Sports, for example, which was not a customer of Salomon 5 years ago, and now is becoming one of the strategic partner.

We have as well new distribution in Europe, despite the fact that our numeric distribution is already very strong. Of course, in US, but I will reply the same as I did for the previous, is we are building distribution right now in US.

Thanks, Brooke.

Thank you.

thanks. Congrats, everyone.

Obviously, revenues solid. Some questions this morning on the margin.

Andrew, can we just dive in a little bit on the cadence of the investment? You've got about 200 basis points plus of deleverage in Q1, but based on the full year, it does seem like you should start to be scaling the investments, especially in the ones you kind of talked to for 4Q.

Can you just comment on that? Does it seem like the business should be scaling and leveraging the expense base in the back half of the year, specifically in Q4, and does that kind of give us some visibility to scale in the out-years and beyond?

Thanks. Also, Ike,

one of the things that is probably embedded, that's not easily see, is that Q1, some of the deleverage is driven on a comparable basis by the fact that Q1 last year in Ball & Racquet was a quarter with meaningful pull-forward because of the threat of tariffs that was on the horizon. Q1 last year, compared to Q1 this year, Q1 this year is more normal, Q1 last year is a lot more pull-forward, you saw a lot more profitability, it looks like a deleverage.

Underneath that, as we talked about both Arc'teryx and outdoor performance are performing well. I talked about you'll see margin expansion for outdoor performance.

It's much more of a quarter one of a quarter one comp issue related to Ball & Racquet in the prior year. Does that help, Ike?

No. It is, but I guess my bigger question is about the pacing of the expenses into the back half, and are you planning to start scaling those as you exit the year, cuz that might give us some better visibility into the SG&A leverage potential as you're kind of exiting and into fiscal '27?

Yeah. Like I said, in Q4 of 2025, we invested a lot.

We invested opportunistically a lot in Q4 of 2025, so, inherently, it would suggest that the Q4 of 2026 comparison is going to be pretty easy.

Great. Thank you so much.

My question is for Stuart. Stuart, could you give us a little bit of update on how some of the initiatives around, say, the women's and footwear has gone for Arc'teryx in the fourth quarter, and what's your outlook is for this year?

Also, just with all the news on tariffs over the last few weeks, how is the landscape changed, and how might it impact the company? Thank you.

Yeah. Thanks, Jay.

It's Stuart. On your second point there, tariffs, it's more of a modest impact on Arc'teryx.

It's not nothing, but it is not influencing in any way how we're pricing our products or operating the company. We see it as an opportunity to take share from companies that might respond in that manner.

Feel we're in a good spot from managing the tariff situation. On your other question, women's and footwear, as James mentioned in the prepared remarks, saw really healthy growth across both of those categories, both growing 40% in the fourth quarter.

Women's, continued strength across some of the new products that we introduced, the women's-only products. The pant category, in particular, has been really strong: the Clarkia, the Liucia, and the Nia Pant, all offering us a new sort of lever of growth within the women's business.

Also saw strength in our ski and insulation, the Atom SV and the Andessa Down, two new products that we introduced in the quarter, performed really well. We're just excited to see women's continue to grow faster than the overall company.

We expect to see it exceeding 30% of the total sales of the company by 2030. Footwear, 40% growth in the fourth quarter as well.

Top models included the Norvan LD 4, that's our top seller, and fast sales in our Kopec hike shoe. I'll also just mention, we're going to launch the new Silenc 2 on March the 6th.

This is our pinnacle trail running shoe. Really excited about the evolution and in the feature set there and the performance of that shoe.

A lot of great feedback from it already from our athletes. Then, within footwear, the business unit we've stood up in Portland, we're excited for how that's coming together, the sales team, the marketing capabilities we're building.

Very bullish on footwear. We see this as an important pillar of growth for us for some time.

Hope that helps, Jay.

Definitely. Thank you.

Hey, how are you doing? Appreciate that.

Jay, this is Andrew. Just to wrap up a little bit on tariffs.

At the group level, we're confident, as I've said, we're confident in our position to manage through a variety of tariff scenarios. Given a couple of things, just remember: our low level of US exposure, our strong brand portfolio and pricing power, and our clean balance sheet.

Obviously the two businesses that are most impacted would be Ball & Racquet and our winter sports equipment. Yes, while we are aware of the recent Supreme Court decision and the follow-up decision by the President to impose a 15% tariff, looking at high-level scenarios, our position has not changed.

Okay.

We have time for one more question. I know it's fourth quarter, we're taking a little bit longer time this call.

Thanks.

Thanks. Good morning.

Andrew, now that the leverage is down to 0.3 times, can you talk a little bit about your expectations for the capital structure and uses of cash going forward?

Yeah. You saw in 2025, you heard my guide, we're talking about CapEx being approximately $400 million in 2026.

We still believe a high-return use of our cash and allocation is to grow our business. To the point that we still believe that it is an efficient use of our cash to pay down the inefficient debt, as it does not provide the requisite tax shield, but we'll continue to focus on that.

We'll continue to focus on the growth of our business, we'll continue to focus on paying down the inefficient debt, and we like our leverage position as it stands right now, being close to zero.

Thank you.

Thanks, everyone, for joining. We'll see you in 3 months.

Have a great spring.