Oct 21, 2026 earnings call — Fiscal results and FY27 outlook
Full fiscal year consolidated net sales rose 11% to $688 million.
Revenue $0.2B (est $0.2B) · EPS $1.06 (est $1.13) · Next-quarter revenue outlook $0.7B–$0.7B
Key quotes
"Starting with North American Battle 1, lead geographic expansion, global sales of our flagship product in fiscal year 26 were $533 million representing growth of 11% over prior year and 8% on a constant currency basis."
"We expect these pressures to persist in the near term. However, based upon what we know today, we believe fourth quarter gross margin is likely to represent the low point of the cycle."
"Combined global sales of Smart Straw and Easy Reach in fiscal year 26 were 277 million an increase of 17% over the prior year."
Analyst Q&A 4
Japan direct market move
Q (Michael Baker · D.A. Davidson): They asked what to expect from the move to sell direct in Japan and how that typically plays out. They also asked about premium product growth acceleration and whether quarterly growth could fall outside the 5%–9% full-year range.
A: Japan will be a slower, steady build over years, but management expects the first year to be between 2x and 4x their moderate FY 2026 sales and already has a five-person team in Tokyo taking orders. They said their premium CAGR was about 8.9% and they expect acceleration from Smart Straw capacity in Asia and big upside because Asia premium penetration is low. On quarters they avoid detailed guidance but noted a strong September start, high single digits into double digits in Q1, continued growth in Q2, and modest growth in the big Q3 comp.
"Having said that, in our first year, we do expect to somewhere between 2x and 4x, what were quite moderate sales in our FY 2026." — Steven A. Brass (CEO)
margin recovery timing
Q (Aaron Reed · Northcoast): They wanted to know when margin recovery will show up given elevated fuel prices, and whether recovery will be gradual or concentrated. They also asked about any business impact from the protests in France.
A: Management said there are multiple headwinds and tailwinds affecting margins, including pricing actions already underway, a $7 million cost-savings achievement last year and a similar pipeline for FY 2027, premiumization gains, and a favorable trading-block mix. They said the margin trough was Q4 at 52.8%, they already saw a September rebound, and recovery should be gradual through the year and could approach above 55% in the back half if oil assumptions hold. On France they said there has been no disruption so far and they hope the situation resolves quickly.
Duluth partnership and ERP progress
Q (Linda Bolton Weiser · D.A. Davidson): She asked whether the Duluth Trading apparel partnership pays a licensing fee and whether the company is changing its partnership approach. She also asked for an ERP implementation update, explanation of Q4 A&P spending, and whether they target data-center construction customers.
A: They said the Duluth partnership is experimental and small, using the brand for a few licensed items while they learn, not a material program today. On ERP they went live with 2 new locations this year (one to support the Japan direct move), have a couple more planned for FY 2027, need to bring EMEA, Mexico, and China on over several years, and are about halfway to their end state. For A&P they said the King of the Hill promotion drove a lot of Q4 spend and created about 1.2 billion impressions, and on data centers they said it is a strong growth use case (growing ~15% a year) and their products are used there and they are developing the business.
"So we successfully went live with 2 new locations this year, 1 of which was supporting the geographic expansion with the Go Direct move in Japan." — Sara Hyzer (CFO)
other input costs (freight, oil)
Q (Daniel Rizzo · Jefferies): They asked if any other input costs besides oil could be meaningful headwinds or trigger pricing, and asked for color on freight as a percent of COGS.
A: Management said freight is the other key input cost and it already impacted Q4 and is expected to continue. They said the two main elevated costs are crude oil inputs and freight, and they are using the same first-half/second-half assumptions for both this year.