Aug 13, 2026 earnings call — Raised revenue and EBITDA guidance
Company raised revenue growth guidance to 15% in constant currency and adjusted EBITDA to at least EUR 710 million.
Revenue $0.8B (est $0.8B) · EPS $0.86 (est $0.86)
Key quotes
"Given this continued momentum for fiscal 2026, we raised our guidance for revenue growth to 15% in constant currency and adjusted EBITDA of at least EUR 710 million."
"Retail was up 50% as we continue to see very strong performance from our new and existing doors. We added 13 new owned stores, bringing our total to 124."
"Adjusted gross profit margin for the third quarter was 59.2%, down 130 basis points year-over-year, mainly driven by 60 basis points of pressure from FX and 70 basis points of pressure from incremental U.S. tariffs."
Analyst Q&A 10
Why D2C grew and Q4 outlook
Q (Matthew Boss · JPMorgan): He asked what drove the improvement in direct-to-consumer versus wholesale (B2B). He also asked about fourth-quarter trends and whether there is upside to the 15% revenue guide.
A: Management said both channels grew but D2C outpaced B2B due to investments in own retail and digital. Own retail expansion and faster store openings delivered strong growth and online improved via new products, personalization and storytelling. They reaffirmed the 15% constant currency revenue guidance and a long-term target of 13% to 15%.
"The D2C performance was driven by own retail, where our expanded footprint and faster store opening pace delivered 50% growth." — Oliver Reichert (CEO)
EMEA growth and Middle East effects
Q (Laurent Vasilescu · BNP Paribas): He asked whether the Middle East conflict affected EMEA growth, what drove the acceleration, how much weather helped, and whether the trends continue into Q4.
A: Management said the conflict still had an impact but less than at the onset in Q2 and they mitigated pressure by adjusting delivery routes and relying on strength in other parts of the region like Saudi Arabia. They now expect the second-half impact to be high single-digit millions, below the EUR 10 million to EUR 12 million originally estimated. They said growth acceleration was largely driven by D2C and that improved trends continued into the first weeks of fiscal Q4, with warmer weather also favourable.
"We were able to mitigate much of the pressure through adjustments in the delivery routes and strength in the other parts of the region." — Ivica Krolo (CFO)
Pricing, promotions and consumer sensitivity
Q (Lorraine Maikis · BofA): She asked if the company was more promotional, how they pass inflation through pricing to protect gross margin, and whether consumers are pushing back on prices, especially for back-to-school.
A: Management said pricing decisions are made to pass through inflation and protect gross margin, though timing differences can occur as pricing flows through inventory into COGS. They reported year-to-date pricing-over-inflation benefit of 30 basis points, continue to deliver strong full-price realization and markdown discipline, and said gross margin was up 10 basis points like-for-like; back-to-school demand remains very strong and youth-driven.
"So our pricing decisions are made with the goal of passing through inflation and protecting gross margin, something that we do very consistently." — Ivica Krolo (CFO)
Closed-toe margin and ASP vs units
Q (Krisztina Katai): She asked how much closed-toe shoes pressured gross margin versus open-toe and to quantify ASP versus volume contribution to growth.
A: Management said they do not disclose product-level margins, but closed-toe styles need more labor and production minutes, which affected margin as closed-toe share increased over 500 basis points. They noted non-Boston silhouettes grew strongly (Naples up more than 4x, Utti more than doubled), these items raise ASP and profit dollars per pair though with a slightly lower margin, and ASP versus volume was in line with their 1/3, 2/3 target.
"These are great, highly profitable products, which are helping us to attract new consumers and broaden the usage occasions for the footbed." — Ivica Krolo (CFO)
Tax rate, EPS flow-through, finance costs
Q (Evercore): He asked whether the higher tax rate (30%–31%) is the new baseline, why EPS didn't flow through more given EBITDA and buybacks, and what normalized quarterly finance costs look like.
A: Management said they do not believe 30% to 31% is the new baseline and expect a recurring tax rate in the high 20s; this year is elevated due to nondeductible, nonrecurring, noncash finance expenses from the refinancing, ASR and mark-to-market embedded derivative. They said adjusted EPS growth would have been 23% in Q3 and the full-year tax impact is about EUR 0.08 per share; one-time refinancing costs were EUR 11.7 million and ASR EUR 10.6 million, and recurring interest will increase finance costs by approximately EUR 4.5 million per quarter with finance costs normalizing around EUR 25 million per quarter.
"No, we do not believe that 30% to 31% is the new baseline." — Ivica Krolo (CFO)
Inventory makeup and Australia timing
Q (Simeon Siegel · Guggenheim): He asked about the gap between inventory and sales, the mix (units versus euros), future inventory levels, and whether Australia sales shifted earlier or later and if that is now behind them.
A: Management said over 70% of finished goods inventory is already contracted and is mostly core evergreen products, which helps planning and production balance. They said more than half of the stock-to-sales increase is due to FX and capitalized tariffs, and the other half is largely due to consolidation of Australia and timing of revenue recognition and sell-through there; they are now running an onshore Australia business and are bound to the local selling cadence.
"More than half of the increase in our stock-to-sales ratio is attributable to FX and capitalized tariffs, and this is something that we've spoken about already in our earnings call in Q2." — Ivica Krolo (CFO)
U.S. wholesale sell-through and inventory
Q (Adrien Duverger · Goldman Sachs): He asked about U.S. order book, sell-in versus sell-out at wholesale partners, whether inventory is building in wholesale, and wholesale appetite and consumer feedback.
A: Management said they continue to see strong youth-led demand in the U.S., and sell-through across these channels in Q3 was up by 20% plus year-over-year. They reiterated they are a must-have for back-to-school, that there is no change to their markdown approach, and that if they were marking down heavily it would show in gross margin — which it does not, as gross margin increased like-for-like.
"Sell-through across these channels in Q3 was up by 20% plus year-over-year." — Ivica Krolo (CFO)
China growth and production capacity plan
Q (Edouard Aubin · Morgan Stanley): He asked how they plan to keep growing in China and when they will consider building new factories given unit growth and CapEx.
A: Management said China was up 50% in the quarter and was their largest market in APAC in Q3, operating as a premium, high-ASP, retail-led market; they will follow the Capital Markets Day roadmap with new stores, partner doors, local activation and events to raise brand awareness. On capacity, they said they are on track to deliver 10% unit growth and the manufacturing build-out (Wittichenau, Arouca, Gorlitz) is progressing according to plan to deliver the target unit growth.
"So the business there was up 50% in the quarter and was our largest market in APAC in Q3." — Ivica Krolo (CFO)
How buybacks will be done and leverage
Q (Mark Altschwager · Baird): He asked how the company will execute the next EUR 500 million of buybacks (ASR versus regular buyback) and what leverage level they plan to run to complete buybacks.
A: Management said they plan to execute additional buybacks and will be responsive to capital market activity when deciding how and when to use the cash, ideally using it in larger transactions like the EUR 200 million last year to avoid further reducing the public float. They also said they do not have a specific leverage target and will keep options open to allocate capital in the best interest of shareholders.
"Ideally, we would utilize the cash as we did the EUR 200 million last year and buy shares as part of a larger transaction." — Ivica Krolo (CFO)
Sandals vs closed-toe trends and innovation
Q (Dana Telsey · Telsey Advisory Group): She asked how sandals performed this summer and how the company thinks about product innovation, newness, and pricing across sandals and closed-toe going forward.
A: Management said the sandal business remains very strong, up mid- high-single digits year-over-year, especially in D2C driven by newness, and highlighted Mayari, Madrid and Siena as strong performers. They said closed-toe success (including clogs, Boston, Naples, Amsterdam) created four-season demand and reduced seasonality; they continue to drive newness and innovation across open and closed-toe and cited collaborations like Santa Clarita and Repetto to expand offerings, noting the ballerina trend for the next 3, 5 years.
"As you know, our sandal business remains very strong, up mid- high-single digits in constant currency year-over-year." — Oliver Reichert (CEO)