Revival and Impact of the Warped Tour as a Brand Engagement Strategy
Bracken Darrell highlighted the successful restart of the Warped Tour, which had been inactive since 2018.
The tour sold out all 3 planned events within hours, with a total attendance of nearly 170,000 over two days.
Bracken emphasized the event's role as a powerful fan fest and a driver for product merchandising, with expectations to expand into more cities in the future.
Adjusted gross margin increased 200 basis points to 54.1%, driven by higher quality inventory, lower discounts, and FX.
Adjusted loss per share was $0.24 versus $0.35 in Q1 last year.
Adjusted operating margin was negative 3.2%, up 270 basis points year-over-year.
Excluding Vans, revenue was up 5%.
Inventories were up 4% or $76 million, excluding FX impact inventories were up 1%, with improved inventory quality and 4% lower inventory days year-over-year.
Net debt was down $1.4 billion or 20% versus last year.
North Face grew 5%, Timberland grew 9%, and Vans declined 15%, with 40% of Vans decline due to channel rationalization.
Q1 revenue was $1.8 billion, flat on a reported basis and down 2% year-over-year in constant dollars, better than guidance of down 3% to 5%.
SG&A dollars were flat year-over-year, reflecting cost savings.
Live Nation reported strong concert segment growth with a 30% increase in the first half of 2025 compared to last year, driven by massive stadium activity and strong on-site spending.
Sponsorship revenue showed low growth in the first half but is expected to grow double digits for the full year with over 95% of commitments secured.
The acquisition of an additional quarter of OCESA is expected to reduce non-controlling interest by approximately $50 million in 2026, improving free cash flow conversion.
Ticketmaster experienced some headwinds in the first half of 2025, including foreign exchange impacts and lower revenue per ticket internationally, but remains confident in long-term growth prospects.
Strategic Revenue Management and Partnership Expansion with Disney and National Geographic
Implementation of new revenue management capabilities and strategic pricing architecture.
Enhanced partnership with Disney leading to a 45% increase in bookings from Disney travel advisers and enabling Disney Vacation Club members to redeem points for cruises.
Launch of National Geographic Refrain Travel campaign increasing search volumes by 122%.
Reactivation of youth travel program 'Explorers and Training' targeting multigenerational travel, with nearly 25% of travelers under 16 during peak seasons.
Dafinchi
