Exhibit 99.2
DTC DTC.com DTC B&M y/y U.S. LAAP EMEA SG&A EPS bps direct-to-consumer DTC e-commerce DTC brick & mortar year-over-year United States Latin America and Asia Pacific Europe, Middle East and Africa selling, general & administrative earnings per share basis points “+” or “up” “-” or “down” LSD% MSD% HSD% LDD% low-20% mid-30% high-40% increased decreased low-single-digit percent mid-single-digit percent high-single-digit percent low-double-digit percent low-twenties percent mid-thirties percent high-forties percent “$##M” “$##B” c.c. M&A FX ~ H1 Q1 3PL in millions of U.S. dollars in billions of U.S. dollars constant-currency mergers & acquisitions foreign exchange approximately first half first quarter Third-party logistics
W E C O N N E C T A C T I V E P E O P L E W I T H T H E I R P A S S I O N S 4
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• • • (dollars in millions, except per share amounts) Q1'23 Q1'22 Change Net Sales $820.6 $761.5 +8% Gross margin 48.7% 49.7% -100 bps SG&A percent of net sales 42.3% 39.3% +300 bps Operating income $56.4 $83.7 -33% Operating margin 6.9% 11.0% -410 bps Net income $46.2 $66.8 -31% Diluted EPS $0.74 $1.03 -28%
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Headwinds • Channel Profitability: lower DTC margins due to higher promotional activity and elevated outbound freight costs • Channel & Region Sales Mix: shift towards lower margin regions • FX: unfavorable effects from foreign currency hedge rates Tailwinds • Other: lower inbound freight costs • Channel Profitability: higher wholesale margins driven by price increases more than offsetting inflationary product costs, partially offset by actions to reduce excess inventory
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(1) Constant-currency net sales is a non-GAAP financial measure. See “References to Non-GAAP Financial Information” above for further information.
