Shares declined 2.4% following earnings as investors appeared cautious about ongoing weakness in the U.S. business and the company’s conservative approach to inventory and order reductions, despite international growth and margin discipline.

• Net sales and profitability exceeded quarterly guidance but U.S. sales declined 10%, pressured by reduced Spring ’26 wholesale orders and supply adjustments tied to tariff concerns.
• International business, over 40% of sales, grew 16% year-over-year, driving overall revenue growth.
• Management highlighted cleaner inventories and less reliance on clearance sales as a positive but these reflect cautious inventory positioning.
• Growth momentum is noted in the PFG segment, with the Bahama shirt expected to grow double digits and Dry Tortuga Boot sales tripling.
• The company remains hopeful for a U.S. wholesale business recovery in the second half based on a growing Fall ’26 order book, but uncertainty persists.