Financial Data and Key Metrics Changes - The company reported net sales of $400.4 million for the fourth fiscal quarter, representing a decline of 11.7% compared to the prior year [4][14] - Adjusted EBITDA for the quarter was $47.1 million, or 11.8% of net sales, down from 12.1% in the same period last year [8][16] - Adjusted net income was $24 million, or $1.61 per diluted share, compared to $28.2 million, or $1.78 per diluted share last year [16] - The gross profit margin decreased by 160 basis points to 17% of net sales from 18.6% in the prior year [15] - For the full fiscal year, net sales were $1.7 billion, a decrease of 7.5% year-over-year [18] Business Line Data and Key Metrics Changes - Remodel net sales, which include home centers and independent dealers, decreased by 10.4% in the fourth quarter [14] - New construction net sales decreased by 13.4% for the quarter compared to last year [14] - The home center business saw a low single-digit negative comp, while the pro business reported a positive comp for the quarter [5][6] Market Data and Key Metrics Changes - Existing home sales fell by 0.5% month-over-month to a seasonally adjusted rate of 4 million in April 2025, with a year-over-year decline of 2% [4] - The NAHB housing market index fell to 34 in May, marking the lowest level since November 2023 [7] - Single-family housing starts experienced negative comps from January to April [7] Company Strategy and Development Direction - The company focuses on three main strategic pillars: growth, digital transformation, and platform design [10] - Key accomplishments include product innovation, capacity investments, and channel expansion, with over 30% of made-to-order sales coming from products launched in the last three years [10][11] - The company is enhancing its manufacturing capabilities and transitioning independent distributor customers to a new brand [11][12] Management's Comments on Operating Environment and Future Outlook - The management expects demand trends to remain challenging, with net sales for fiscal year 2026 projected to range from low single-digit declines to low single-digit increases [9][20] - The outlook is influenced by macroeconomic factors, including interest rates, tariff changes, and consumer behavior [20] - Management believes that a decline in mortgage rates and increased consumer confidence could positively impact the housing market [9] Other Important Information - The company repurchased 1.17 million shares during fiscal year 2025, representing about 7.5% of outstanding shares [19] - Free cash flow totaled $65.7 million for the current fiscal year, down from $138.5 million in the prior year [18] - The company has a net leverage ratio of 1.56 times adjusted EBITDA at the end of the fourth quarter [19] Q&A Session Summary Question: Impact of tariffs on full year guidance - Management indicated that the outlook was significantly influenced by tariffs, estimating a cost impact of approximately $20 million [26][27] Question: Gross margin improvement - The improvement in gross margins was attributed to operational adjustments made in response to previous demand softness [28][30] Question: Revenue guidance assumptions - The revenue guidance assumes a recovery in both remodel and new construction markets in the second half of fiscal year 2026 [35][36] Question: Cost side considerations - Management acknowledged potential commodity inflation and labor costs as factors to consider for the full year guidance [43] Question: Savings from facility closure - The closure of a components facility is expected to yield annual savings of $5 million to $6 million [45] Question: Automation investments progress - Management described the company as being in the early stages of its automation investment journey, with significant spending planned for fiscal year 2026 [53][54]

Financial Data and Key Metrics Changes - The company reported net sales of $400.4 million for Q4 2025, a decline of 11.7% compared to the prior year [4][14] - Adjusted EBITDA for the quarter was $47.1 million, representing 11.8% of net sales, down from 12.1% in the same period last year [7][17] - Adjusted net income was $24 million or $1.61 per diluted share, compared to $28.2 million or $1.78 per diluted share last year [17] - The gross profit margin decreased by 160 basis points to 17% of net sales from 18.6% in the prior year [15] - For the full fiscal year, net sales were $1.7 billion, a decrease of 7.5% year-over-year [19] Business Line Data and Key Metrics Changes - Remodel net sales decreased by 10.4% in Q4, with home centers and dealer distributors both declining by approximately 10-11% [14] - New construction net sales decreased by 13.4% for the quarter compared to last year [14] - The home center business saw a low single-digit negative comp, while the pro business reported a positive comp for the quarter [5] Market Data and Key Metrics Changes - Existing home sales fell by 0.5% month-over-month to a seasonally adjusted rate of 4 million in April 2025, with a year-over-year decline of 2% [4] - The NAHB housing market index dropped to 34 in May, marking the lowest level since November 2023 [6] - Single-family housing starts experienced negative comps from January to April [6] Company Strategy and Development Direction - The company focuses on three main pillars: growth, digital transformation, and platform design [10] - Key accomplishments include product innovation, capacity investments, and channel expansion despite a challenging macroeconomic environment [10] - The company is enhancing its manufacturing capabilities and transitioning independent distributor customers to a new brand [11][12] Management's Comments on Operating Environment and Future Outlook - Management expects demand trends to remain challenging, with net sales outlook ranging from low single-digit declines to low single-digit increases for fiscal year 2026 [9][21] - The company anticipates that as mortgage rates decline and consumer confidence increases, there will be a potential for higher ticket home projects [9] - Management highlighted the importance of removing uncertainty related to tariffs for future growth [50] Other Important Information - The company repurchased 1.17 million shares for $96.7 million during fiscal year 2025, representing about 7.5% of outstanding shares [20] - Free cash flow totaled $65.7 million for the fiscal year, down from $138.5 million in the prior year [19] Q&A Session Summary Question: Impact of tariffs on full year guidance - Management indicated that the outlook was significantly influenced by tariffs, estimating a cost impact of approximately $20 million [27][28] Question: Improvement in gross margins - The improvement in gross margins was attributed to operational adjustments made in Q4 following a challenging Q3 [30][31] Question: Revenue guidance assumptions for end markets - The revenue guidance assumes a consistent recovery across both remodel and new construction markets, with expectations for better performance in the second half of fiscal year 2026 [37][38] Question: Cost considerations beyond tariffs - Management acknowledged potential commodity inflation and labor costs as additional factors impacting guidance [44] Question: Savings from facility closure - The closure of a components facility is expected to yield annual savings of $5-6 million in EBITDA [46]

Financial Performance - Net sales for the fourth quarter of fiscal 2025 decreased by $52.9 million, or 11.7%, to $400.4 million compared to the same quarter of the prior fiscal year[3]. - Net income for the fourth quarter of fiscal 2025 was $25.6 million, a decrease of 4.6% year-over-year, representing 6.4% of net sales[5]. - Adjusted EBITDA for the fourth quarter of fiscal 2025 decreased by $7.6 million, or 13.9%, to $47.1 million, or 11.8% of net sales[5]. - For the fiscal year ended April 30, 2025, net sales decreased by 7.5% to $1,709.6 million from the prior fiscal year[4]. - Net income for the fiscal year 2025 was $99.5 million, a decrease of 14.4% year-over-year, representing 5.8% of net sales[5]. - Adjusted EBITDA for the fiscal year 2025 was $208.6 million, or 12.2% of net sales, down from $252.8 million, or 13.7% of net sales in the prior fiscal year[5]. - Net income for the three months ended April 30, 2025, is $25.566 million, a decrease from $26.798 million in the same period last year[28]. - Adjusted EBITDA for the twelve months ended April 30, 2025, is $208.630 million, compared to $252.773 million for the same period in 2024[28]. - Net sales for the three months ended April 30, 2025, are $400.395 million, a decline from $453.278 million in Q2 fiscal 2024[28]. Cash Flow and Liquidity - Cash provided by operating activities for the fiscal year was $108.4 million, with free cash flow totaling $65.7 million[8]. - As of April 30, 2025, the company had $48.2 million in cash and access to $314.2 million under its revolving credit facility[7]. - Free cash flow for the twelve months ended April 30, 2025, is $65.684 million, down from $138.509 million in the previous year[33]. - Cash provided by operating activities for the twelve months ended April 30, 2025, is $108.447 million, down from $230.750 million in the previous year[33]. Future Outlook - The company expects net sales for fiscal 2026 to range from low-single digit declines to low-single digit increases[12]. - The targeted Adjusted EBITDA range for fiscal 2026 is set at $175 million to $200 million[12]. Restructuring and Adjustments - The company incurred restructuring charges of $2.956 million in Q2 fiscal 2025, related to workforce reductions and facility closures[29]. - The company has adjusted its definition of Adjusted EPS to exclude changes in the fair value of foreign exchange forward contracts starting Q2 fiscal 2025[25]. Earnings Per Share - Adjusted EPS per diluted share for Q2 fiscal 2025 is $1.61, down from $1.78 in Q2 fiscal 2024, while GAAP EPS is $1.71 compared to $1.69 in the prior year[31]. - The net income margin for Q2 fiscal 2025 is 6.4%, compared to 5.9% in the same quarter last year[28]. Leverage - Net leverage as of April 30, 2025, is 1.56, indicating the company's leverage position after accounting for cash and cash equivalents[36].

Core Insights - The article highlights the investment strategies and achievements of Paul Franke, a seasoned investor with 38 years of trading experience, emphasizing his contrarian stock selection style and algorithmic analysis [1] Group 1: Investment Strategy - Paul Franke developed a system called "Victory Formation," which focuses on identifying supply/demand imbalances through specific stock price and volume movements [1] - The strategy recommends investors to maintain a diversified portfolio of at least 50 well-positioned stocks and to use stop-loss levels of 10% or 20% on individual investments to enhance market outperformance [1] Group 2: Stock Selection Focus - The "Bottom Fishing Club" articles target deep-value stocks or those showing significant positive technical momentum reversals [1] - The "Volume Breakout Report" articles analyze stocks that exhibit positive trend changes supported by strong price and volume trading activity [1]

Group 1 - American Woodmark (NASDAQ: AMWD) reported fiscal Q3 results that were mostly in line with MasterBrand Cabinets (MBC) [1] - The results indicate that current investment decisions are influenced by the performance of these companies [1]

Financial Performance - The Company reported net income of $16.6 million, or 4.2% of net sales, for the third quarter of fiscal 2025, down from $21.2 million, or 5.0% of net sales, in the same period of the prior year[88]. - Net sales for the third quarter of fiscal 2025 were $397.6 million, a decrease of $24.5 million or 5.8% compared to the same period of fiscal 2024[93]. - Gross profit margin for the third quarter of fiscal 2025 was 15.0%, down from 19.2% in the same period of fiscal 2024, representing a 420 basis point decrease[95]. - Adjusted EBITDA for the third quarter of fiscal 2025 was $38.4 million, representing 9.7% of net sales, down from $50.6 million or 12.0% of net sales in the same quarter of the prior fiscal year[112]. - Adjusted EPS per diluted share for the three months ended January 31, 2025, was $1.05, down from $1.56 in the same period of the prior fiscal year[113]. - Net income for the three months ended January 31, 2025, was $16.6 million, a decrease of 22.5% compared to $21.2 million for the same period in 2024[108]. Sales and Market Trends - Builder sales decreased by 10.4% in the third quarter of fiscal 2025 compared to the same period of fiscal 2024[94]. - Remodeling sales decreased 2.3% during the third quarter of fiscal 2025 compared to the same prior year period[93]. - The company expects a mid-single digit decline in net sales for fiscal 2025 compared to fiscal 2024 due to a softer repair and remodel market[114]. Expenses and Cost Management - General and administrative expenses decreased by $12.5 million or 40.1% during the third quarter of fiscal 2025 compared to the same period of the prior year[98]. - The effective income tax rate for the three-month period ended January 31, 2025, was 16.0%, down from 25.4% in the comparable prior year period[99]. - The Company expects to incur total pre-tax restructuring costs of $6.0 million to $8.5 million related to the closure of its manufacturing plant in Orange, Virginia[91]. Cash Flow and Debt - Cash and cash equivalents totaled $43.5 million as of January 31, 2025, a decrease of $43.9 million from April 30, 2024, primarily due to significant stock repurchases[117]. - Total long-term debt was $375.3 million as of January 31, 2025, with approximately $314.2 million available under the Revolving Facility[119]. - The company repurchased $12.6 million of its common shares during Q3 of fiscal 2025, with $145.4 million remaining available for repurchases as of January 31, 2025[126]. Strategic Initiatives - The company plans to continue investing in digital transformation and automation while being opportunistic in share repurchases[115]. - The company plans to continue investing in digital transformation and automation while deprioritizing debt repayments[115]. - A stock repurchase program of up to $125 million was authorized by the Board of Directors on November 29, 2023[124]. - The Company authorized an additional stock repurchase program of up to $125 million, supplementing the previous program authorized on November 29, 2023[125]. Economic Indicators - The unemployment rate increased to 4.0% as of January 2025 compared to 3.7% as of January 2024[89]. - Mortgage interest rates increased to approximately 7.0% in January 2025, an increase of approximately 25 basis points compared to the same period in the prior year[89]. Accounting Policies and Estimates - The Company has not made significant changes to its critical accounting policies since the last Annual Report on Form 10-K for the fiscal year ended April 30, 2024[128]. - Estimates are based on historical experience and reasonable assumptions, which may lead to differences in actual results under varying conditions[128]. - The carrying values of assets and liabilities are determined through judgments that may not be apparent from other sources[128]. - Actual results may differ from estimates due to different assumptions or conditions[128]. - The Company continues to monitor its accounting policies to ensure they remain relevant and accurate[128]. - Historical experience plays a crucial role in forming the basis for estimates[128]. - The Company emphasizes the importance of reasonable assumptions in its financial reporting[128]. - The results of the estimates are critical for understanding the financial position of the Company[128].

Financial Data and Key Metrics Changes - The company reported net sales of $397.6 million, a decline of 5.8% compared to the prior year, which was below expectations due to softer demand in the remodel market and a significant decline in new construction activity [7][23] - Adjusted EBITDA was $38.4 million, representing 9.7% of net sales, down from 12% in the previous year, indicating a 230 basis point decline year-over-year [12][26] - Adjusted net income was $15.9 million or $1.05 per diluted share, compared to $25.1 million or $1.56 per diluted share last year [26] Business Line Data and Key Metrics Changes - New construction net sales decreased by 10.4%, while repair and remodel net sales were down 2.3% [24] - The home center made-to-order business remained flat year-over-year, while the stock kitchen business saw mid-single-digit growth [8] - The distribution business experienced a decline of double digits due to reduced new construction activity [9] Market Data and Key Metrics Changes - Single-family housing starts showed negative comparisons versus the prior year, particularly in markets like Atlanta, Florida, and Southern California [10] - The company noted a rotation down in made-to-order new construction offerings, leading to an unfavorable mix impact [10] Company Strategy and Development Direction - The company is focused on three main strategic pillars: growth, digital transformation, and platform design [17] - Recent initiatives include the conversion of distribution business customers to the new brand 1951 Cabinetry and the launch of new finishes and styles [18][19] - The company is also evaluating pricing strategies to mitigate inflationary impacts and potential new tariffs [32] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns about ongoing macroeconomic challenges, including declining consumer sentiment and inflation risks, with expectations of a mid-single-digit decline in net sales for the full fiscal year [14][30] - The outlook for adjusted EBITDA is revised to a range of $210 million to $215 million, driven by softening sales volumes and increased manufacturing deleverage [31] Other Important Information - The company announced the closure of its Orange, Virginia manufacturing location, which is expected to improve operational efficiencies [27] - Free cash flows totaled $31.5 million year-to-date, a decrease from $131.7 million in the prior year, primarily due to changes in operating cash flows [28] Q&A Session Summary Question: What portion of your reduced guide is attributed to the slower R&R environment and builders reducing inventory? - Management indicated that both factors were key contributors to the overall comp rate for the quarter and that the full-year outlook assumes a similar operating environment in Q4 [38] Question: Have you begun to see any positive impacts from the hurricanes last fall or potentially the fires in Southern California? - Management noted some positive comps in Florida from hurricane-impacted stores, but nothing material for the overall quarter [40] Question: Can you discuss pricing considerations and the options you're contemplating? - Management stated that if tariffs are implemented and cannot be fully mitigated, pricing action will likely be necessary, with discussions ongoing about potential surcharges [44][47] Question: Is dealer demand bottoming, and what is the outlook for R&R? - Management expressed hope that demand is bottoming out, with expectations for an increase in the future, particularly in the second half of 2025 [50][51] Question: Can you quantify the impact of mix headwinds within the new construction business? - Management confirmed a rotation down in product offerings, with builders trying to lower price points to improve affordability [55] Question: What would be the annual benefit from closing the Orange facility in terms of EBITDA and gross margins? - Management indicated that the impact would be incorporated into the fiscal year '26 outlook, with further details to be provided in the next call [63]

Financial Data and Key Metrics Changes - The company reported net sales of $397.6 million, a decline of 5.8% compared to the prior year, which was below expectations due to softer demand in the remodel market and a significant decline in new construction activity [7][23] - Adjusted EBITDA was $38.4 million, representing 9.7% of net sales, down from 12% the previous year, indicating a 230 basis point decline [12][26] - Gross profit as a percentage of net sales decreased by 420 basis points to 15% from 19.2% reported last year [24] - Adjusted net income was $15.9 million or $1.05 per diluted share, down from $25.1 million or $1.56 per diluted share last year [26] Business Line Data and Key Metrics Changes - New construction net sales decreased by 10.4%, while repair and remodel net sales were down 2.3% [24] - The home center made-to-order business was roughly flat year-over-year, while the stock kitchen business saw mid-single-digit growth [8] - The distribution business experienced a double-digit decline due to slowed new construction activity [9] Market Data and Key Metrics Changes - Single-family housing starts showed negative comparisons versus the prior year, indicating a slowdown in the market [9] - The company noted a rotation down in its made-to-order new construction offerings, leading to an unfavorable mix impact [10] Company Strategy and Development Direction - The company is focused on three main strategic pillars: growth, digital transformation, and platform design [17] - Recent initiatives include the conversion of distribution business customers to the new brand 1951 Cabinetry and the launch of new finishes and styles [18][19] - The company announced the closure of its Orange, Virginia manufacturing location to consolidate production and improve operational efficiencies [20][27] Management's Comments on Operating Environment and Future Outlook - Management expressed that demand trends are expected to remain challenging, with a projected mid-single-digit decline in net sales for the full fiscal year [14] - Concerns regarding consumer sentiment, inflation risks, and interest rates were highlighted as macroeconomic challenges [14] - Management remains optimistic that mortgage rate relief and increased consumer confidence could benefit the business in the long term [11] Other Important Information - The company had a cash balance of $43.5 million at the end of the third fiscal quarter, with access to an additional $314.2 million under its revolving credit facility [13] - Free cash flows totaled $31.5 million year-to-date, a decrease from $131.7 million in the prior year, primarily due to changes in operating cash flows [28] Q&A Session Summary Question: What portion of your reduced guide is attributed to the slower R&R environment and builders reducing inventory? - Management indicated that both factors were key contributors to the overall comp rate for the quarter and that the full-year outlook assumes a similar operating environment in Q4 [38] Question: Have you begun to see any positive impacts from the hurricanes last fall or potentially the fires in Southern California? - Management noted some positive comps in Florida from hurricane-impacted stores, but nothing material for the overall quarter [40] Question: Can you discuss pricing considerations and the options you're contemplating? - Management stated that if tariffs come through and cannot be fully mitigated, pricing action will likely be necessary, with discussions ongoing about potential surcharges or list price changes [44][47] Question: Is dealer demand bottoming, and is there a sense of stabilization in that part of the demand world? - Management expressed hope that demand is bottoming out, with expectations for an increase in the future, particularly in the second half of 2025 [50][51] Question: Can you quantify the impact of mix headwinds within the new construction business? - Management confirmed a rotation down in product offerings, with builders trying to lower price points to improve affordability, leading to a decrease in the number of cabinets going into homes [55][56]

Financial Performance - Net sales for the third quarter of fiscal 2025 decreased by $24.5 million, or 5.8%, to $397.6 million compared to the same quarter last fiscal year[3]. - Net income for the third quarter was $16.6 million, or $1.09 per diluted share, representing 4.2% of net sales, down from $21.2 million, or $1.32 per diluted share, in the same quarter last year[3]. - Adjusted EBITDA for the third quarter decreased by $12.2 million, or 24.0%, to $38.4 million, or 9.7% of net sales, compared to $50.6 million, or 12.0% of net sales, last fiscal year[3]. - For the first nine months of fiscal 2025, net sales decreased by $85.0 million, or 6.1%, to $1,309.2 million compared to the same period of the prior fiscal year[6]. - Adjusted EPS per diluted share for the first nine months of fiscal 2025 was $5.28, down from $6.81 in the same period of the prior fiscal year[6]. - For the three months ended January 31, 2025, net income was $16,571,000, a decrease of 22.5% compared to $21,227,000 for the same period in 2024[28]. - Adjusted EBITDA for the three months ended January 31, 2025, was $38,445,000, down 24% from $50,615,000 in the prior year[28]. - Adjusted EBITDA margin for the three months ended January 31, 2025, was 9.7%, compared to 12.0% for the same period in 2024[28]. - Adjusted EPS per diluted share for the three months ended January 31, 2025, was $1.05, down from $1.56 in the same period of 2024[31]. - Net sales for the three months ended January 31, 2025, were $397,580,000, a decrease of 5.5% from $422,102,000 in the prior year[28]. - The company reported a net income margin of 4.2% for the three months ended January 31, 2025, compared to 5.0% for the same period in 2024[28]. Cash Flow and Capital Management - Cash provided by operating activities for the first nine months was $63.7 million, with free cash flow totaling $31.5 million[7]. - The company repurchased 132,075 shares for $12.6 million during the third quarter and 752,412 shares for $69.1 million during the first nine months of fiscal 2025[8]. - Free cash flow for the nine months ended January 31, 2025, was $31,490,000, a decline of 76% from $131,697,000 in the same period of 2024[33]. - As of January 31, 2025, the company had $43.5 million in cash and access to $314.2 million under its revolving credit facility[7]. Restructuring and Costs - Total pre-tax restructuring costs related to the closure of the Orange, Virginia manufacturing plant are expected to be between $6.0 million and $8.5 million[3]. - The company incurred restructuring charges of $520,000 in the three months ended January 31, 2025, related to workforce reductions and facility closures[29]. Future Outlook - The company expects a mid-single digit decline in net sales for the full fiscal year and an Adjusted EBITDA range of $210 million to $215 million[2][11]. - Net leverage as of January 31, 2025, was 1.53, calculated as net debt of $331,860,000 divided by trailing 12 months Adjusted EBITDA of $216,209,000[35]. Adjustments in Reporting - The company adjusted its definition of Adjusted EPS per diluted share to exclude changes in fair value of foreign exchange forward contracts starting in the second quarter of fiscal 2025[25].

Financial Data and Key Metrics Changes - The company reported net sales of $452.5 million, a decline of 4.5% year-over-year, which was in line with previous expectations [5][14] - Adjusted EBITDA was $60.2 million, representing 13.3% of net sales, down from 15.3% the previous year [8][18] - Gross profit margin decreased by 290 basis points to 18.9% compared to 21.8% last year, primarily due to lower sales volumes and rising input costs [15] - Adjusted net income was $32 million or $2.08 per diluted share, down from $41.1 million or $2.50 per diluted share last year [17] - Free cash flow totaled $30.1 million year-to-date, a decrease from $109.9 million in the prior year [18] - Net leverage increased to 1.4 times adjusted EBITDA from 1.05 times last year [19] Business Line Data and Key Metrics Changes - The new construction channel experienced positive unit growth, but this was offset by a negative price mix [7][48] - All channels reported declines in sales during the quarter, with specific impacts noted in the remodel market due to macroeconomic pressures [14][48] Market Data and Key Metrics Changes - Existing home sales fell to a 14-year low, impacting demand for remodel projects [6] - The company expects the repair and remodel market to decline mid-single digits, while new construction is projected to increase low single digits [10][20] Company Strategy and Development Direction - The company is focused on three main strategic pillars: growth, digital transformation, and platform design [11] - Investments in digital transformation include optimizing Salesforce and planning for ERP implementation [12] - The company aims to continue share repurchases while prioritizing investments in automation and digital transformation [23] Management's Comments on Operating Environment and Future Outlook - Management noted that high interest rates and lower consumer confidence are dampening demand, particularly for larger discretionary projects [14][24] - The outlook for fiscal year 2025 remains unchanged, with expectations of low single-digit sales declines [20] - Management expressed confidence in the long-term fundamentals of the housing market, anticipating a recovery in the future [24] Other Important Information - The company repurchased 349,000 shares, representing 2.3% of shares outstanding during the quarter [9] - The company has access to an additional $313.2 million under its revolving credit facility [9] Q&A Session Summary Question: Supply chain exposure to Mexico due to potential tariffs - Management acknowledged uncertainty regarding future tariffs but expressed confidence in their ability to adapt and mitigate impacts through resourcing and pricing adjustments [27][28] Question: Pricing actions in other channels beyond the dealer channel - Management confirmed no additional pricing increases have been announced beyond the dealer channel, which had an increase effective October 1 [30] Question: Sales outlook and maintained guidance - Management indicated that the maintained sales guidance reflects expectations of better performance in the second half, driven by pricing and easier comparisons [35][36] Question: Cost side expectations for the second half - Management noted continued increases in input costs, particularly in particle board, labor, and delivery [37] Question: Risks to sales and volume outlook - Management believes current sales trends are primarily macro-driven, with potential risks from policy uncertainties [42] Question: Retail promotions and volume expectations - Management reported consistent promotional activity year-over-year, with no significant changes expected [45] Question: Breakdown of sales decline by channels - Management stated that all channels experienced declines, with new construction showing unit growth but a negative price mix [48] Question: Expectations for free cash flow relative to EBITDA - Management indicated that free cash flow expectations remain consistent, with some pressure on working capital due to inventory constraints [56] Question: Impact of hurricanes on new construction in the Southeast - Management confirmed some impacts from hurricanes but does not expect material effects on Q3 performance [57]