Sep 10, 2026 earnings call — Profitability improvement driven by Brand Portfolio strength
Raised full-year adjusted diluted EPS to between $0.47 and $0.52, and now expects sales flat to up 1% versus last year.
Revenue $0.7B (est $0.7B) · EPS $0.34 (est $0.26)
Key quotes
"Topo continued to be a standout with revenue growth of more than 24% during the quarter, in line with our expectations."
"Sandals, our largest seasonal category, were pressured by early weather-related headwinds and never fully rebounded. Given their high seasonal penetration, this accounted for approximately 200 basis points of the retail sales decline."
"Adjusted consolidated gross margin in the second quarter was 47.9%, representing a 430 basis point improvement versus last year. Tariff refund claims of $20.2 million retained by the company contributed 280 basis points of the margin improvement."
Analyst Q&A 1
Topo brand growth and footwear trends
Q (Mauricio Serna Vega · UBS): The analyst asked where Topo could go long term and what the company is doing to scale it. He also asked for details on footwear trends across sandals, dress, athletic, and boots.
A: They said Topo grew 24% this quarter and they expect the brand to exceed $100 million in sales in 2027, with distribution still relatively modest at about 1,600 doors and not sold in DSW, so there are lots of opportunity and a large runway to build out. On trends, they said dress is improving, sandals were soft, athletic was softer in Q2 but has been reversing in Q3 around back-to-school, and boots are looking better with an earlier start versus last year due to prior tariff-related delivery delays. They also said margins are expanding, noting merch margin expanded by 140 basis points in the quarter—about 40 points from IMU and 100 basis points from fewer markdowns—and that reduced debt is helping the expense structure.
"We did share that we expect the brand to exceed $100 million in sales in 2027." — Douglas Howe (CEO)