Financial Analysis

NOTE 15 COMMITMENTS AND CONTINGENCIES LITIGATION The Company is involved in litigation and various legal matters arising in the normal course of business, including matters related to employment, retail, intellectual property, contractual agreements, and various regulatory compliance activities. Management has considered facts related to legal and regulatory matters and opinions of counsel handling these matters, and does not believe the ultimate resolution of these proceedings will have a material adverse effect on the Company's financial position, results of operations or cash flows. INDEMNITIES AND GUARANTEES During its normal course of business, the Company has made certain indemnities, commitments and guarantees under which it may be required to make payments in relation to certain transactions. These include (i) intellectual property indemnities to the Company's customers and licensees in connection with the use, sale or license of Company products, (ii) indemnities to various lessors in connection with facility leases for certain claims arising from such facility or lease, (iii) indemnities to customers, vendors and service providers pertaining to claims based on the negligence or willful misconduct of the Company, (iv) director and executive indemnification agreements, and (v) indemnities involving the accuracy of representations and warranties in certain contracts. The duration of these indemnities, commitments and guarantees varies and, in certain cases, may be inde …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 14 RETIREMENT SAVINGS PLANS 401(K) PROFIT-SHARING PLAN The Company has a 401(k) profit-sharing plan, which covers substantially all U.S. employees. Participation begins the first day of the quarter following completion of 30 days of service. The Company, with approval of the Board of Directors, may elect to make discretionary matching or non-matching contributions. Costs recognized for Company contributions to the pla n were $15.1 million , $14.9 million and $15.6 million for the years ended December 31, 2025, 2024 and 2023, respectively. DEFERRED COMPENSATION PLAN The Company sponsors a nonqualified retirement savings plan for certain senior management employees whose contributions to the tax qualified 401(k) plan would be limited by provisions of the Internal Revenue Code. This plan allows participants to defer receipt of a portion of their salary and incentive compensation and to receive matching contributions for a portion of the deferred amounts. Costs recognized for Company matching contributions to the plan were immaterial for the years ended December 31, 2025, 2024 and 2023. Participants earn a return on their deferred compensation based on investment earnings of participant-selected investments. Deferred compensation, including accumulated earnings on the participant-directe d investment selections, is distributable in cash at participant-specified dates or upon retirement, death, disability, or termination of employment of the participant. The Company has purch …

CompensationAndEmployeeBenefitPlansTextBlock · excerpt; the full note is in the filing

The following tables disaggregate the Company's reportable segment Net sales by product category and channel, which the Company believes provides a meaningful depiction of how the nature, timing and uncertainty of Net sales are affected by economic factors: Year Ended December 31, 2025 (in thousands) U.S. LAAP EMEA Canada Total Product category net sales: Apparel, accessories and equipment $ 1,648,402 $ 478,085 $ 416,142 $ 169,761 $ 2,712,390 Footwear 330,631 133,064 160,778 60,488 684,961 Total $ 1,979,033 $ 611,149 $ 576,920 $ 230,249 $ 3,397,351 Channel net sales: Wholesale $ 888,238 $ 324,710 $ 426,260 $ 141,346 $ 1,780,554 Direct-to-consumer 1,090,795 286,439 150,660 88,903 1,616,797 Total $ 1,979,033 $ 611,149 $ 576,920 $ 230,249 $ 3,397,351 Year Ended December 31, 2024 (in thousands) U.S. LAAP EMEA Canada Total Product category net sales: Apparel, accessories and equipment $ 1,727,076 $ 437,325 $ 355,353 $ 167,420 $ 2,687,174 Footwear 341,152 123,381 156,425 60,450 681,408 Total $ 2,068,228 $ 560,706 $ 511,778 $ 227,870 $ 3,368,582 Channel net sales: Wholesale $ 926,714 $ 283,751 $ 388,545 $ 135,348 $ 1,734,358 Direct-to-consumer 1,141,514 276,955 123,233 92,522 1,634,224 Total $ 2,068,228 $ 560,706 $ 511,778 $ 227,870 $ 3,368,582 Year Ended December 31, 2023 (in thousands) U.S. LAAP EMEA Canada Total Product category net sales Apparel, Accessories and Equipment $ 1,783,205 $ 392,690 $ 319,468 $ 181,234 $ 2,676,597 Footwear 458,232 127,064 149,769 75,541 810,606 Total …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

"NOTE 5 SHARE-BASED COMPENSATION At its Annual Meeting held on June 3, 2020, the Companys shareholders approved the Companys 2020 Stock Incentive Plan (the 2020 Plan), and the 2020 Plan became effective on that date following such approval. The 2020 Plan replaced the Companys 1997 Stock Incentive Plan (the ""Prior Plan) and no new awards will be granted under the Prior Plan. The terms and conditions of the awards granted under the Prior Plan will remain in effect with respect to awards granted under the Prior Plan. The Company has reserved 3.0 million shares of common stock for issuance under the 2020 Plan, plus up to an aggregate of 1.5 million shares of the Company's common stock that were previously authorized and available for issuance under the Prior Plan. As of December 31, 2025, 2,046,846 shares were available for future grants under the 2020 Plan. The Company's Stock Incentive Plan allows for grants of incentive stock options, non-statutory stock options, restricted stock awards, restricted stock units, and other share-based or cash-based awards to officers, executives, key employees and nonemployee members of the Companys Board of Directors. The Company uses original issuance shares to satisfy share-based payments. SHARE-BASED COMPENSATION EXPENSE Share-based compensation expense, which is primarily recorded in SG&A expenses , consisted of the following: Year Ended December 31, (in thousands) 2025 2024 2023 Share-based compensation expense - equity awards $ 24,23 …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

NOTE 19 FAIR VALUE MEASURES Certain assets and liabilities are reported at fair value on either a recurring or nonrecurring basis. Fair value is defined as an exit price, representing the amount that the Company would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants, under a three-tier fair value hierarchy that prioritizes the inputs used in measuring fair value as follows: Level 1 observable inputs such as quoted prices for identical assets or liabilities in active liquid markets; Level 2 inputs, other than the quoted market prices in active markets, that are observable, either directly or indirectly; or observable market prices in markets with insufficient volume or infrequent transactions; and Level 3 unobservable inputs for which there is little or no market data available, that require the reporting entity to develop its own assumptions. The Company's assets and liabilities measured at fair value are categorized as Level 1 or Level 2 instruments. Level 1 instrument valuations are obtained from real-time quotes for transactions in active exchange markets involving identical assets. Level 2 instrument valuations are obtained from inputs, other than quoted market prices in active markets, that are directly or indirectly observable in the marketplace and quoted prices in markets with limited volume or infrequent transactions. Assets and liabilities measured at fair value on a recurring basis are as follows: As of D …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

NOTE 9 INTANGIBLE ASSETS, NET AND GOODWILL During the third quarter of 2025, declines in forecasted revenues and gross margins, primarily as a result of impacts from incremental tariffs and a difficult macroeconomic environment, led to triggering events for the prAna and Mountain Hardwear trade names and goodwill reporting units. As a result, the Company performed interim quantitative impairment tests where the Company compared the estimated fair values of the prAna and Mountain Hardwear trade names and goodwill reporting units to their carrying values. The fair values of the prAna and Mountain Hardwear trade names were estimated using a relief-from-royalty method under the income approach. The key assumptions used in the relief-from-royalty method were the Company's estimates of projected revenues, royalty rate, and discount rate, taking into consideration market and industry conditions. In the Company's interim quantitative impairment test of the prAna trade name, the fair value of the prAna trade name was less than its carrying value of $51.8 million and, therefore, an impairment charge of $8.0 million was recorded . In the Company's interim quantitative impairment test of the Mountain Hardwear trade name, the fair value of the Mountain Hardwear trade name exceeded its carrying value and, therefore, no impairment was recorded. The Company did not identify additional triggering events or record additional impairment charges for trade names as part of its annual impairment t …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 10 INCOME TAXES INCOME TAX PROVISION Income before income tax consisted of the following: Year Ended December 31, (in thousands) 2025 2024 2023 U.S. operations $ (1,738) $ 83,120 $ 125,578 Foreign operations 231,362 215,067 200,614 Income before income tax $ 229,624 $ 298,187 $ 326,192 Components of the provision for income taxes consisted of the following: Year Ended December 31, (in thousands) 2025 2024 2023 Current: Federal $ 7,757 $ 32,073 $ 39,939 State and local 4,588 8,394 6,879 Non-U.S. 39,633 40,651 33,109 51,978 81,118 79,927 Deferred: Federal (3,732) (11,925) (5,492) State and local (2,986) (1,258) (1,589) Non-U.S. 7,140 6,979 1,946 422 (6,204) (5,135) Income tax expense $ 52,400 $ 74,914 $ 74,792 The following table presents a reconciliation of the federal statutory tax rate to the effective tax rate reported in the financial statements: Year Ended December 31, 2025 2024 2023 (in thousands, except for percentages of income before tax) Amount % Amount % Amount % U.S. federal statutory tax rate $ 48,221 21.0 % $ 62,619 21.0 % $ 68,500 21.0 % State and local income taxes, net of federal income tax effect 1,717 0.7 5,802 1.9 5,567 1.7 Foreign tax effects: Canada: Non-federal taxes 3,044 1.3 3,811 1.3 4,198 1.3 Other 948 0.4 689 0.2 859 0.3 China: Other 7,181 3.1 2,430 0.8 4,372 1.3 Korea: Changes in valuation allowance 480 0.2 6,355 2.1 Other 95 244 0.1 956 0.3 Switzerland: Statutory tax rate difference between Switzerland and the U.S. (20,208) (8.8) (17,489) (5. …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

The components of lease cost consisted of the following: Year Ended December 31, (in thousands) 2025 2024 2023 Operating lease cost $ 108,432 $ 93,653 $ 83,866 Variable lease cost 68,242 67,459 65,376 Short term lease cost 10,179 10,972 10,117 $ 186,853 $ 172,084 $ 159,359 The following table presents supplemental cash flow information related to leases: Year Ended December 31, (in thousands) 2025 2024 2023 Cash paid for amounts included in the measurement of operating lease liabilities $ 108,895 $ 98,620 $ 85,793 Operating lease liabilities arising from obtaining lease ROU assets (1) $ 110,028 $ 128,605 $ 83,393 (1) Includes amounts added to the carrying amount of lease liabilities resulting from lease modifications and reassessments. The following table presents supplemental balance sheet information related to leases: As of December 31, 2025 2024 Weighted average remaining lease term 6.31 years 5.79 years Weighted average discount rate 5.14 % 4.89 % The following table presents the future maturities of operating lease liabilities as of December 31, 2025: (in thousands) 2026 $ 109,510 2027 97,462 2028 84,637 2029 66,055 2030 52,937 Thereafter 152,395 Total operating lease payments 562,996 Less: imputed interest (85,307) Total operating lease liabilities 477,689 Less: current operating lease liabilities (88,501) Non-current operating lease liabilities $ 389,188 As of December 31, 2025, the Company has additional commitments for operating leases that have not yet commenced of …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

"RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS In December 2023, the Financial Accounting Standards Board (the FASB) issued ASU No. 2023-09 (ASU 2023-09), Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which includes amendments that further enhance income tax disclosures, primarily through disaggregation of specific rate reconciliation categories and income taxes paid by jurisdiction. The Company adopted ASU 2023-09 on a retrospective basis within this Annual Report on Form 10-K. The adoption resulted in enhanced disclosures which can be found within Note 10 of these consolidated financial statements. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS NOT YET ADOPTED In November 2024, the FASB issued ASU No. 2024-03 (""ASU 2024-03""), Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, which includes amendments intended to improve disclosures about a public business entity's expenses, primarily through additional disaggregation of income statement expenses. The amendments are effective for annual periods beginning after December 15, 2026, and interim periods beginning after December 15, 2027, with early adoption permitted. The amendments may be applied prospectively or retrospectively. The Company is currently evaluating the ASU to determine the impact on the Company's disclosures. In September 2025, the FASB issued ASU No. 2025-06 (""ASU 2025-06""), Intangibles - Goodwil …

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"NOTE 3 REVENUES DISAGGREGATED REVENUE As disclosed below in Note 4, the Company has four geographic reportable segments: U.S., Latin America and Asia Pacific (""LAAP""), Europe, Middle East and Africa (""EMEA""), and Canada. The following tables disaggregate the Company's reportable segment Net sales by product category and channel, which the Company believes provides a meaningful depiction of how the nature, timing and uncertainty of Net sales are affected by economic factors: Year Ended December 31, 2025 (in thousands) U.S. LAAP EMEA Canada Total Product category net sales: Apparel, accessories and equipment $ 1,648,402 $ 478,085 $ 416,142 $ 169,761 $ 2,712,390 Footwear 330,631 133,064 160,778 60,488 684,961 Total $ 1,979,033 $ 611,149 $ 576,920 $ 230,249 $ 3,397,351 Channel net sales: Wholesale $ 888,238 $ 324,710 $ 426,260 $ 141,346 $ 1,780,554 Direct-to-consumer 1,090,795 286,439 150,660 88,903 1,616,797 Total $ 1,979,033 $ 611,149 $ 576,920 $ 230,249 $ 3,397,351 Year Ended December 31, 2024 (in thousands) U.S. LAAP EMEA Canada Total Product category net sales: Apparel, accessories and equipment $ 1,727,076 $ 437,325 $ 355,353 $ 167,420 $ 2,687,174 Footwear 341,152 123,381 156,425 60,450 681,408 Total $ 2,068,228 $ 560,706 $ 511,778 $ 227,870 $ 3,368,582 Channel net sales: Wholesale $ 926,714 $ 283,751 $ 388,545 $ 135,348 $ 1,734,358 Direct-to-consumer 1,141,514 276,955 123,233 92,522 1,634,224 Total $ 2,068,228 $ 560,706 $ 511,778 $ 227,870 $ 3,368,582 CONTRACT BALANCE …

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"NOTE 4 SEGMENT INFORMATION The Company defines its operating segments on the basis of the way in which internally reported financial information is regularly reviewed by the chief operating decision maker (""CODM"") to analyze performance, make decisions, and allocate resources. The Company aggregates its operating segments with similar economic and operating characteristics into four reportable segments: U.S., LAAP, EMEA, and Canada. These reportable segments are organized by geographic location. Each geographic segment operates predominantly in one industry: the design, development, marketing, and distribution of outdoor, active and lifestyle products, including apparel, footwear, accessories, and equipment. The Companys CODM is the Companys chief executive officer. The Companys CODM assesses the segments performance by using each segment's operating income. The CODM uses each segment's operating income to allocate resources predominantly in the annual budget and forecasting process. The CODM considers plan-to-actual variances on a quarterly basis for the segment operating income profit measure when making decisions about the allocation of operating and capital resources to each segment. The CODM also uses this profit measure to assess the performance of each segment by comparing the results of each segment with one another, and in the overall strategic planning for each segment. Intersegment net sales and intersegment profits, which are recorded at a negotiated mark-up an …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

"NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES CASH AND CASH EQUIVALENTS Cash and cash equivalents are stated at fair value or at cost, which approximates fair value, and include short-term highly liquid investments that are both readily convertible to known amounts of cash and so near their maturity they present insignificant risk of changes in value because of changes in interest rates, with original maturities of three months or less. As of December 31, 2025, Cash and cash equivalents consisted of cash, money market funds, United States (""U.S."") government treasury bills, time deposits, and commercial paper. As of December 31, 2024, Cash and cash equivalents consisted of cash, money market funds, U.S. government treasury bills, and time deposits. INVESTMENTS As of December 31, 2025, Short-term investments consisted of U.S. government treasury bills and commercial paper, as well as money market funds and mutual fund shares held as part of the Companys deferred compensation plan expected to be distributed in the next twelve months. As of December 31, 2024, Short-term investments consisted of U.S. government treasury bills, as well as money market funds and mutual fund shares held as part of the Companys deferred compensation plan expected to be distributed in the next twelve months. The U.S. government treasury bills and commercial paper are classified as available-for-sale debt securities and are recorded at fair value with any unrealized gains or losses reported, net …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

NOTE 16 SHAREHOLDERS' EQUITY Since the inception of the Company's stock repurchase plan in 2004 through December 31, 2025, the Company's Board of Directors has authorized the repurchase of $2.6 billion of the Company's common stock, excluding excise tax. Shares of the Company's common stock may be purchased in the open market or through privately negotiated transactions, subject to market conditions, and generally settle subsequent to the trade date. The repurchase program does not obligate the Company to acquire any specific number of shares or to acquire shares over any specified period of time. Under this program as of December 31, 2025, the Company had repurchased 41.0 million shares at an aggregate purchase price of $2,173.5 million and had $426.5 million remaining available under the share repurchase program, excluding excise tax. During the years ended December 31, 2025 and 2024, the Company repurchased an aggregate of $201.1 million and $317.8 million, respectively, of common stock under this program, excluding excise tax. …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

"NOTE 20 SUBSEQUENT EVENTS On February 20, 2026, the U.S. Supreme Court held in Learning Resources, Inc. v. Trump that the International Emergency Economic Powers Act (""IEEPA"") does not authorize a U.S. President to impose tariffs during peacetime national emergencies and that the challenge to the legality of the tariffs imposed under IEEPA (the ""incremental tariffs"") was within the exclusive jurisdiction of the U.S. Court of International Trade (""CIT""), thus affirming the prior decision of the CIT in V.O.S. Selections, Inc. v. United States. As a result, on February 20, 2026, the U.S. President issued an executive order stating that the incremental tariffs were no longer in effect and ending the collection of the incremental tariffs. However, the U.S. President then issued an additional executive order imposing tariffs pursuant to Section 122 of the Trade Act of 1974 for 150 days, effective on February 24, 2026. The Company is currently assessing the impact of these actions on its operations and consolidated financial statements, including our ability to recover incremental tariffs the Company has paid."

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