Well it had to happen at some point: On finally feels pressure from the “heavily promotional environment”. Clearly management previously thought the brand an immune unicorn or else they wouldn’t be guiding revenue down today.

David tells an amazing story about how athletic brands are going to crush life going forward. The “movement class” is the future and they have a desire for vitality.

First the bad. Not only did they miss the Americas revenue consensus estimate, but they also barely had double digit growth to begin with and everybody remembers what happened to Deckers (DECK) after domestic revenue growth cracked that level.

Hard to poke holes in a consumer company that raises guidance like this against a challenged macro-environment backdrop. Key point they made on call was this isn’t just flowthrough but rather they now have increased 2H25 expectations.