For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Q: Despite an increase in premiumization, why has the average selling price (ASP) declined? A: Unidentified_3 (CFO): The ASP decline is driven by a higher mix of open footwear and accessory sales, such as socks, which have a lower ASP. However, margins have improved by 20 basis points, indicating that the product mix is not diluting overall profitability.

Q: Is the slower growth in online volumes a strategic decision by the company? A: Unidentified_2 (CEO): No, the growth in online volumes is aligned with demand. The company operates each channel strategically to contribute meaningfully to overall revenue. The online channel saw a higher proportion of outright sales, which contributed to ASP increases.

Q: How is the demand scenario and competitive landscape, especially with the BIS inventory cleanup? A: Unidentified_2 (CEO): The non-BIS inventory liquidation has been slower than expected but is under control. Demand has been positive in the north, east, and west regions, with some softness in metros and tier-one cities. The sneaker segment has shown strong growth, contributing to higher ASPs.