Loading...
01/11 11:50
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call highlights strong financial performance with significant increases in gross profit, operating income, and net income. Product margins and SG&A efficiency improved, and the private label business is growing. Despite some challenges in the footwear category and cautious guidance, the overall sentiment is positive with optimistic guidance and strategic growth in private labels. Market reaction is likely positive, driven by improved financial metrics and strategic positioning.
Net Sales $239.1 million, up 7.5% from $222.5 million in the third quarter of 2024. The increase was driven by strong performance in North America and a slight increase in international sales.
Comparable Sales Up 7.6% for the quarter, driven by North America with a 10% increase, marking the seventh consecutive quarter of growth in the region. International comparable sales declined 3.9%, but showed improvement from the second quarter.
Gross Profit $89.8 million, up 14.7% compared to $78.3 million in the third quarter of last year. Gross profit as a percentage of sales increased to 37.6% from 35.2%, driven by leverage in store occupancy costs, improved product margins, and lower inventory shrinkage.
SG&A Expense $78 million or 32.7% of net sales, compared to $75.9 million or 34.1% of net sales a year ago. The decrease was due to lower non-wage store operating costs and leverage of store wages tied to higher sales.
Operating Income $11.8 million or 4.9% of net sales, compared to $2.4 million or 1.1% of net sales last year. The increase was due to higher sales and improved expense efficiency.
Net Income $9.2 million or $0.55 per share, compared to $1.2 million or $0.06 per share in the third quarter of 2024. The increase was supported by improved operating results and a one-time tax item.
Cash and Marketable Securities $104.5 million as of November 1, 2025, up from $99.3 million as of November 2, 2024. The increase was driven by cash from operating activities and the release of restricted cash, partially offset by share repurchases and capital expenditures.
Inventory $180.7 million, down 3.5% compared to $187.2 million last year. On a constant currency basis, inventory levels were down 5.1%, reflecting better inventory management.
Introduction of new and emerging brands: Over 100 new and emerging brands introduced annually, contributing significantly to sales mix and validating merchandising strategy.
Private label performance: Private label products reached highest penetration levels in company history, enhancing margin profile.
North American market growth: North American comparable sales grew 10%, marking the seventh consecutive quarter of growth. Premium pricing strategies supported margin expansion and market share growth.
International market performance: European comparable sales declined low single digits but showed improvement from the second quarter. Product margin gains achieved through disciplined full-price selling.
Gross margin improvement: Gross profit as a percentage of sales increased to 37.6% from 35.2% in the prior year, driven by leverage in store occupancy costs, product margin improvement, and lower inventory shrinkage.
Expense efficiency: SG&A expenses decreased as a percentage of net sales, driven by reductions in non-wage store operating costs and leverage of store wages.
Focus on customer experience: Investments in staff development and technological capabilities enhanced personalized customer interactions.
Financial stability and strategic expansion: Strong financial position with $104.5 million in cash and no debt, enabling continued investment in strategic objectives and shareholder value.
Macroeconomic Uncertainty: Global trade policy and economic volatility are creating uncertainties that could impact consumer spending and overall business performance.
International Market Challenges: European operations face challenging market conditions with low single-digit declines in comparable sales, despite some sequential improvement.
Tariff Situation: Current tariff uncertainties add complexity to pricing strategies and could limit consumer spending.
Non-Peak Consumer Traffic: Softening consumer traffic during non-peak periods could impact sales momentum.
Store Closures: Planned closure of 21 stores in fiscal 2025, including 18 in the U.S., could negatively impact sales by approximately $15 million.
Wage and Hour Lawsuit Settlement: A $3.6 million settlement of a wage and hour lawsuit in California adds to SG&A costs.
Fourth Quarter Sales and Comparable Sales: Total sales are expected to be between $291 million and $296 million, representing growth of 4% to 6%. Comparable sales are projected to grow in the range of 2.5% to 4%, with North America expected to grow 4.5% to 6.5% and international comparable sales expected to decline in the low single digits.
Fourth Quarter Product Margin and Operating Income: Product margin is expected to increase modestly year-over-year. Consolidated operating income is projected to be between 8% and 8.5% of sales. Earnings per share are anticipated to range from $0.97 to $1.07.
Full Year 2025 Sales Growth and Store Closures: Total sales growth is expected to be between 4.5% and 5%, despite the closure of 33 stores in fiscal 2024 and approximately 21 planned closures in late 2025, which are estimated to negatively impact sales by $15 million.
Full Year 2025 Product Margin and Operating Margins: Product margin is anticipated to grow by 40 to 50 basis points on top of 70 basis points of improvement in fiscal 2024. Operating margins and net profit are expected to increase year-over-year.
Capital Expenditures and Store Openings: Capital expenditures for 2025 are projected to be between $10 million and $12 million, compared to $15 million in 2024. The company plans to open 6 new stores, including 5 in North America and 1 in Australia.
Earnings Per Share and Tax Rate: Earnings per share for fiscal 2025 are expected to range between $0.57 and $0.67, compared to a loss of $0.09 in 2024. The effective tax rate for the year is anticipated to be roughly 51% to 54%.
Share Repurchase Program: During the third quarter, the company repurchased 300,000 shares at an average cost, including commission, of $18.61 per share, totaling $5.4 million. Fiscal year-to-date through November 1, 2025, the company has repurchased 2.7 million shares at an average cost, including commission, of $14.18 per share, totaling $38.3 million. As of November 1, 2025, $1.7 million remained on the $15 million repurchase authorization approved by the Board on June 4 of this year.
The earnings call highlights strong financial performance with significant increases in gross profit, operating income, and net income. Product margins and SG&A efficiency improved, and the private label business is growing. Despite some challenges in the footwear category and cautious guidance, the overall sentiment is positive with optimistic guidance and strategic growth in private labels. Market reaction is likely positive, driven by improved financial metrics and strategic positioning.
The earnings call reveals strong financial performance with increased revenue, gross profit, and net income. Positive trends in skate hard goods and private label products, along with a cautious but optimistic outlook, support positive sentiment. Despite a slight deceleration in North America and challenges in footwear, improved margins and efficient expense management are encouraging. The Q&A highlights optimism in skate products and private label growth, despite some management evasiveness. Overall, the positive financials and strategic positioning suggest a positive stock price movement in the near term.
The earnings call shows mixed signals: positive product margin improvements and controlled SG&A expenses, but net loss increased and cash reserves decreased. The Q&A highlighted cautious optimism with growth in private label and AUR, but challenges in footwear and European markets remain. The guidance suggests stable but not strong growth, with operating losses expected. The lack of a clear timeline for margin improvement and challenges in key markets suggest a neutral market reaction.
The earnings call provided mixed signals: net sales and comparable sales showed growth, and there was a significant share repurchase program, which are positives. However, there are concerns about macroeconomic uncertainty, European market challenges, and a notable operating loss. Additionally, the Q&A section highlighted unclear strategies for international growth and the impact of tariffs. The overall sentiment is neutral, as positives are offset by risks and uncertainties, suggesting limited short-term stock movement.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
