Company Leadership Changes - Kristen Actis-Grande, the Executive Vice President and Chief Financial Officer of MSC Industrial Supply Co., will step down effective August 8, 2025, to take a CFO position at another publicly traded company [1] - Greg Clark, the Vice President of Finance and Corporate Controller, will serve as the interim CFO following Actis-Grande's departure while a search for a permanent CFO is conducted [2][3] Financial Performance and Outlook - The company reported that average daily sales for June were up 2.5% year-over-year, indicating positive sales momentum [3] - The fiscal fourth quarter performance is trending towards the upper half of the average daily sales and adjusted operating margin ranges provided in the July 1, 2025 earnings release [3] - The guidance for average daily sales growth for the fourth quarter is projected to be between (0.5)% and 1.5% year-over-year [4] - The adjusted operating margin is expected to be in the range of 8.5% to 9.0% [5] Company Overview - MSC Industrial Supply Co. is a leading North American distributor of metalworking and maintenance, repair, and operations (MRO) products and services, with approximately 2.4 million products and a workforce of over 7,000 associates [7]

Investors interested in Industrial Products stocks should always be looking to find the best-performing companies in the group. MSC Industrial (MSM) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? Let's take a closer look at the stock's year-to-date performance to find out.MSC Industrial is a member of the Industrial Products sector. This group includes 189 individual stocks and currently holds a Zacks Sector Rank of # ...

Core Viewpoint - MSC Industrial Direct Co. (NYSE: MSM) reported earnings that exceeded sell-side consensus expectations, indicating strong performance and potential for continued growth [1]. Company Summary - The company was last covered in June with a buy rating, and it has since delivered better-than-expected results [1]. - The stock has shown positive movement following the earnings report, suggesting investor confidence [1]. Analyst Background - The analyst has over 15 years of experience in investing and has provided research services to mid-sized hedge funds with assets under management between $100 million and $500 million [1]. - The focus is primarily on medium-term investing, targeting ideas with catalysts for value unlocking or short selling in the presence of downside catalysts [1]. - The analyst has a background in analyzing industrial, consumer, and technology sectors, which informs investment decisions [1].

Company Overview - MSC Industrial currently holds a Momentum Style Score of A, indicating strong momentum potential [3] - The company has a Zacks Rank of 2 (Buy), suggesting favorable market performance [4] Price Performance - Over the past week, MSC Industrial shares increased by 5.25%, outperforming the Zacks Industrial Services industry, which rose by 2.19% [6] - The monthly price change for MSC Industrial is 10.38%, compared to the industry's 3.35% [6] - Over the past quarter, shares have increased by 19.59%, and over the last year, they have gained 19.28%, while the S&P 500 moved 15.13% and 13.62%, respectively [7] Trading Volume - The average 20-day trading volume for MSC Industrial is 740,790 shares, which is a useful indicator of market interest [8] Earnings Outlook - In the past two months, 7 earnings estimates for MSC Industrial have moved higher, with no downward revisions, increasing the consensus estimate from $3.52 to $3.64 [10] - For the next fiscal year, 4 estimates have increased while 1 has decreased [10] Conclusion - Given the strong momentum indicators and positive earnings outlook, MSC Industrial is positioned as a promising investment opportunity [12]

Core Insights - The near-term outlook for the Zacks Industrial Services industry is positive, driven by increasing e-commerce activity and a recent rise in the production index [1][5] - Companies like Siemens, MSC Industrial Direct, and Eos Energy Enterprises are strategically positioned to leverage these trends through cost-cutting, operational efficiency improvements, and investments in automation and digitization [2] Industry Overview - The Zacks Industrial Services industry includes companies providing industrial equipment products and MRO services, serving diverse sectors such as commercial, government, healthcare, and manufacturing [3] - The industry focuses on reducing MRO supply-chain costs and enhancing productivity through inventory management and procurement solutions [3] Trends Impacting the Industry - E-commerce is expected to drive growth, with global e-commerce revenues projected to grow at a CAGR of 18.9% from 2024 to 2030, and the U.S. market at a CAGR of 16.4% [4] - The manufacturing sector, contributing around 70% to the industry's revenues, has shown signs of recovery with the production index entering expansion territory at 50.3% in June, up from 45.4% in May [5] Cost Management Strategies - The industry faces significant inflation, including rising labor, freight, and fuel costs, prompting companies to implement pricing actions, cost-cutting measures, and productivity improvements [6] Market Performance - The Zacks Industrial Services industry has outperformed both its sector and the S&P 500 over the past year, growing 16.5% compared to the sector's 14.8% and the S&P 500's 11.2% [9] - The industry currently trades at a forward 12-month EV/EBITDA ratio of 30.7X, significantly higher than the S&P 500's 13.89X and the Industrial Products sector's 19.94X [12] Company Highlights - Siemens reported a 10% increase in orders and a 7% rise in revenues in Q2, bolstered by acquisitions that enhance its capabilities in industrial AI and simulation [18][19] - Eos Energy Enterprises secured a $22.7 million loan advance to support its production expansion, with projected revenues for 2025 between $150 million and $190 million, up from $15.7 million in 2024 [21][22] - MSC Industrial noted positive trends in its fiscal third quarter, focusing on long-term growth objectives and recent acquisitions to enhance its market position [25]

Core Viewpoint - MSC Industrial Direct Company, Inc. (MSM) is showing potential as a good stock pick due to a recent "golden cross" event and positive earnings outlook, indicating a possible bullish breakout [1][4]. Technical Analysis - A "golden cross" occurs when a short-term moving average (50-day) crosses above a long-term moving average (200-day), suggesting a potential bullish trend [2]. - The golden cross pattern consists of three stages: a downtrend followed by a crossover, and then an upward price movement [3]. Performance Metrics - MSM has experienced an 11.8% rally over the past four weeks, indicating strong momentum [4]. - The company currently holds a 2 (Buy) rating on the Zacks Rank, further supporting the bullish outlook [4]. Earnings Outlook - There have been no cuts to earnings estimates for the current quarter, with four upward revisions in the past 60 days, leading to an increase in the Zacks Consensus Estimate [4]. - The combination of positive earnings revisions and technical indicators suggests MSM may continue to see gains in the near future [5].

Core Insights - MSC Industrial Direct Company, Inc. (MSM) reported adjusted earnings per share (EPS) of $1.08 for Q3 fiscal 2025, exceeding the Zacks Consensus Estimate of $1.03, but reflecting an 18.8% decline year over year [1][7] - The company generated revenues of approximately $971 million, a decrease of 0.8% from $979 million in the same quarter last year, while also surpassing the Zacks Consensus Estimate of $970 million [2][7] - The gross margin improved to 41% compared to 40.9% in the prior year, despite a 0.7% decline in gross profit to $398 million [3][7] Financial Performance - The cost of goods sold decreased by 1% year over year to $573 million, while operating expenses rose by 8% to $312 million [3] - Adjusted operating income fell 21.8% to $87 million, resulting in an adjusted operating margin of 9%, down from 11.4% in the previous year [3][7] - Cash and cash equivalents increased to $71.7 million from $29.6 million at the end of fiscal 2024, while long-term debt rose to approximately $285 million from $279 million [4] Future Guidance - For Q4 fiscal 2025, the company anticipates average daily sales to decline by 0.5% or increase by 1.5% compared to the previous year [5] - The adjusted operating margin is expected to be between 8.5% and 9% for the upcoming quarter [5] Stock Performance - Over the past year, MSC Industrial's shares have increased by 20%, outperforming the industry growth of 15.8% [6]

Core Viewpoint - MSC Industrial reported a slight decline in revenue for the quarter ended May 2025, with a revenue of $971.15 million, down 0.8% year-over-year, but exceeded the Zacks Consensus Estimate by 0.1% [1] Financial Performance - Earnings per share (EPS) for the quarter was $1.08, a decrease from $1.33 in the same quarter last year, but surpassed the consensus EPS estimate of $1.03 by 4.85% [1] - The company’s stock has returned +6.3% over the past month, outperforming the Zacks S&P 500 composite's +5.2% change [3] Key Metrics - Sales Days were reported at 64, matching the average estimate based on nine analysts [4] - Total Company Average Daily Sales (ADS) was $15.2 million, slightly above the $15.12 million average estimate from six analysts [4] - Days Sales Outstanding was 39, compared to the average estimate of 40 from two analysts [4]

[PART I. FINANCIAL INFORMATION](index=5&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section presents the company's unaudited condensed consolidated financial statements and management's discussion of financial condition and results of operations [Financial Statements (Unaudited)](index=5&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents the unaudited condensed consolidated financial statements for the thirteen and thirty-nine weeks ended May 31, 2025, including balance sheets, income, comprehensive income, equity, and cash flow statements Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | May 31, 2025 | August 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$2,475,594** | **$2,462,313** | | Total current assets | $1,236,763 | $1,188,089 | | **Total Liabilities** | **$1,100,029** | **$1,061,031** | | Total current liabilities | $644,265 | $605,427 | | **Total Shareholders' Equity** | **$1,375,565** | **$1,401,282** | Condensed Consolidated Statements of Income Highlights (in thousands, except per share data) | Metric | Thirteen Weeks Ended May 31, 2025 | Thirteen Weeks Ended June 1, 2024 | Thirty-Nine Weeks Ended May 31, 2025 | Thirty-Nine Weeks Ended June 1, 2024 | | :--- | :--- | :--- | :--- | :--- | | Net sales | $971,145 | $979,350 | $2,791,346 | $2,868,667 | | Gross profit | $397,739 | $400,447 | $1,141,156 | $1,182,175 | | Income from operations | $82,735 | $106,766 | $217,261 | $299,529 | | Net income attributable to MSC | $56,845 | $71,705 | $142,782 | $202,902 | | Diluted EPS | $1.02 | $1.27 | $2.55 | $3.59 | Condensed Consolidated Statements of Cash Flows Highlights (in thousands) | Cash Flow Activity | Thirty-Nine Weeks Ended May 31, 2025 | Thirty-Nine Weeks Ended June 1, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $253,461 | $303,433 | | Net cash used in investing activities | ($41,563) | ($83,213) | | Net cash used in financing activities | ($169,598) | ($244,475) | | Net increase (decrease) in cash | $42,104 | ($24,124) | | Cash and cash equivalents—end of period | $71,692 | $25,928 | [Note 2: Revenue](index=11&type=section&id=Note%202.%20Revenue) Revenue recognition is detailed, noting the company operates as a single segment, with **95%** of revenue from the United States for the thirty-nine weeks ended May 31, 2025 - The company operates as a single operating and reportable segment, distributing metalworking, MRO, Class C consumables, and OEM products and services[35](index=35&type=chunk)[37](index=37&type=chunk) Revenue Disaggregation (Thirty-Nine Weeks Ended May 31, 2025) | Category | Percentage of Revenue | | :--- | :--- | | **By Geography** | | | United States | 95% | | North America (Total) | 99% | | **By Customer End-Market** | | | Manufacturing Heavy | 58% | | Other | 42% | | **By Customer Type** | | | Core and Other Customers | 54% | | National Account Customers | 37% | | Public Sector Customers | 9% | [Note 9: Debt](index=17&type=section&id=Note%209.%20Debt) Total debt, including finance leases, increased to **$521.0 million** as of May 31, 2025, with the company in compliance with all debt covenants Debt Composition (in thousands) | Debt Instrument | May 31, 2025 | August 31, 2024 | | :--- | :--- | :--- | | Amended Revolving Credit Facility | $80,000 | $74,000 | | Uncommitted Credit Facilities | $216,000 | $209,500 | | Private Placement Debt | $220,000 | $220,000 | | **Total debt, including obligations under finance leases** | **$521,033** | **$508,764** | - Subsequent to the quarter end, the company paid **$20.0 million** to satisfy its 3.79% Senior Notes due June 11, 2025, using existing cash resources[70](index=70&type=chunk) [Note 10: Shareholders' Equity](index=18&type=section&id=Note%2010.%20Shareholders%27%20Equity) The company repurchased **494,000 shares** for **$39.1 million** and paid **$142.3 million** in dividends during the thirty-nine weeks ended May 31, 2025 - During the thirty-nine weeks ended May 31, 2025, the company repurchased **494,000 shares** of Class A Common Stock for **$39.1 million**[74](index=74&type=chunk) - The company paid aggregate regular cash dividends of **$2.55 per share**, totaling **$142.3 million**, for the thirty-nine-week period ended May 31, 2025; this is an increase from $2.49 per share in the prior-year period[77](index=77&type=chunk) - As of May 31, 2025, **1,413,000 shares** were available for repurchase under the Share Repurchase Plan[72](index=72&type=chunk) [Note 11: Restructuring and Other Costs](index=19&type=section&id=Note%2011.%20Restructuring%20and%20Other%20Costs) Restructuring costs totaled **$6.4 million** for the thirty-nine weeks ended May 31, 2025, a decrease from the prior year, driven by workforce realignment and supply chain optimization Restructuring and Other Costs (in thousands) | Cost Category | Thirty-Nine Weeks Ended May 31, 2025 | Thirty-Nine Weeks Ended June 1, 2024 | | :--- | :--- | :--- | | Consulting-related costs | $4,130 | $4,435 | | Associate severance and separation costs | $2,176 | $6,319 | | Equity award acceleration costs | $124 | $383 | | **Total** | **$6,430** | **$11,787** | - The company disposed of its Columbus, OH customer fulfillment center, resulting in a loss on sale of property of **$1.2 million**[83](index=83&type=chunk)[62](index=62&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=22&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management reports a challenging business environment with soft demand, leading to decreased net sales and income from operations, while executing its 'Mission Critical' strategy [Business Overview and Strategy](index=22&type=section&id=Business%20Overview%20and%20Strategy) MSC, a leading MRO and metalworking products distributor, is executing its 'Mission Critical' strategy to capture market share, improve profitability, and enhance operational efficiency - The company's 'Mission Critical' strategy is now in its second phase, focusing on core customers, OEM fasteners, and driving productivity improvements to reduce operating expenses as a percentage of sales[94](index=94&type=chunk)[96](index=96&type=chunk) - Growth in high-touch solutions continues, with vending machines in service increasing to **28,741** (up from 26,438 YoY) and In-Plant programs growing to **399 locations** (up from 325 YoY)[93](index=93&type=chunk) [Results of Operations - Thirteen Weeks Ended May 31, 2025](index=24&type=section&id=Results%20of%20Operations%20-%20Thirteen%20Weeks%20Ended%20May%2031%2C%202025) Net sales decreased **0.8%** to **$971.1 million** for Q3 FY2025, with income from operations falling **22.5%** to **$82.7 million** due to lower sales volume and higher operating expenses Q3 FY2025 vs Q3 FY2024 Performance (in thousands) | Metric | Q3 FY2025 | Q3 FY2024 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Net Sales | $971,145 | $979,350 | ($8,205) | (0.8)% | | Gross Profit | $397,739 | $400,447 | ($2,708) | (0.7)% | | Income from Operations | $82,735 | $106,766 | ($24,031) | (22.5)% | - The decrease in net sales was driven by a **$20.4 million** drop in sales volume, partially offset by a **$7.7 million** positive impact from pricing[103](index=103&type=chunk) - Operating expenses increased by **$23.3 million**, primarily due to higher payroll and payroll-related costs (**$15.1 million** increase) and higher freight expense[108](index=108&type=chunk)[109](index=109&type=chunk)[110](index=110&type=chunk) [Results of Operations - Thirty-Nine Weeks Ended May 31, 2025](index=27&type=section&id=Results%20of%20Operations%20-%20Thirty-Nine%20Weeks%20Ended%20May%2031%2C%202025) Net sales decreased **2.7%** to **$2.79 billion** for the thirty-nine weeks ended May 31, 2025, with income from operations declining **27.5%** to **$217.3 million** due to lower sales volume and increased expenses YTD FY2025 vs YTD FY2024 Performance (in thousands) | Metric | YTD FY2025 | YTD FY2024 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Net Sales | $2,791,346 | $2,868,667 | ($77,321) | (2.7)% | | Gross Profit | $1,141,156 | $1,182,175 | ($41,019) | (3.5)% | | Income from Operations | $217,261 | $299,529 | ($82,268) | (27.5)% | - The decrease in gross profit margin was primarily a result of higher inventory cost and customer mix, as sales to national account and public sector customers carry lower margins[121](index=121&type=chunk) [Liquidity and Capital Resources](index=30&type=section&id=Liquidity%20and%20Capital%20Resources) As of May 31, 2025, the company had **$71.7 million** in cash and **$449.3 million** in net debt, with net cash from operations at **$253.5 million** for the thirty-nine-week period Key Liquidity Metrics (in thousands) | Metric | May 31, 2025 | August 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $71,692 | $29,588 | | Total debt | $521,033 | $508,764 | | Net debt | $449,341 | $479,176 | | Working Capital | $592,498 | $582,662 | - Net cash from operating activities decreased to **$253.5 million** from $303.4 million in the prior-year period, primarily due to lower net income[134](index=134&type=chunk)[135](index=135&type=chunk) - Net cash used in financing activities decreased significantly to **$169.6 million** from $244.5 million, mainly due to lower share repurchases (**$39.1 million** vs $167.2 million YoY)[139](index=139&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=32&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company refers to its Annual Report on Form 10-K for detailed market risk information, noting no significant changes in its financial instrument portfolio or interest rate risk since August 31, 2024 - There have been no significant changes in the company's financial instrument portfolio or interest rate risk since the fiscal year-end of August 31, 2024[148](index=148&type=chunk) [Controls and Procedures](index=33&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were not effective as of May 31, 2025, due to a material weakness in IT general controls related to user access - Disclosure controls and procedures were concluded to be **not effective** as of May 31, 2025[150](index=150&type=chunk) - The ineffectiveness stems from a material weakness in IT general controls (ITGCs) related to user access for certain financial reporting systems, specifically affecting revenue and inventory transactions[151](index=151&type=chunk) - A remediation plan is underway and has made substantial progress, but the weakness will not be considered fully remediated until controls operate effectively for a sufficient period[152](index=152&type=chunk)[153](index=153&type=chunk) [PART II. OTHER INFORMATION](index=34&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section covers legal proceedings, risk factors, equity security sales, other information, and exhibits filed with the Form 10-Q [Legal Proceedings](index=34&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in routine legal claims and a specific class action lawsuit filed March 14, 2025, regarding stock reclassification, which it intends to vigorously defend - A class action and derivative lawsuit was filed on March 14, 2025, by Macomb County Retiree Health Care Fund against the company, officers, directors, and shareholders related to the company's stock reclassification[156](index=156&type=chunk)[89](index=89&type=chunk) - The complaint alleges breaches of fiduciary duties and breach of contract, seeking unspecified damages; the company intends to vigorously defend itself[156](index=156&type=chunk) [Risk Factors](index=34&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the company's risk factors from those disclosed in the Annual Report on Form 10-K for the fiscal year ended August 31, 2024 - There have been no material changes in the Company's risk factors from those disclosed in the Annual Report on Form 10-K for the fiscal year ended August 31, 2024[157](index=157&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=34&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased **117,494 shares** of Class A Common Stock during the quarter, with **1,413,423 shares** remaining available under the repurchase plan as of May 31, 2025 Issuer Purchases of Equity Securities (Thirteen-Week Period Ended May 31, 2025) | Period | Total Shares Purchased | Average Price Paid Per Share | | :--- | :--- | :--- | | 3/2/2025-4/1/25 | 54,184 | $75.50 | | 4/2/25-5/1/25 | 62,300 | $70.96 | | 5/2/25-5/31/25 | 1,010 | $81.14 | | **Total** | **117,494** | | - As of May 31, 2025, the maximum number of shares that may yet be repurchased under the Share Repurchase Plan was **1,413,423**[159](index=159&type=chunk) [Other Information](index=34&type=section&id=Item%205.%20Other%20Information) Kimberly Shacklett, SVP, Sales and Customer Success, adopted a Rule 10b5-1 trading plan on April 9, 2025, for the sale of up to **4,259 shares** of Class A Common Stock - On April 9, 2025, Kimberly Shacklett, SVP, Sales and Customer Success, adopted a Rule 10b5-1 trading plan[160](index=160&type=chunk) - The plan provides for the sale of up to **4,259 shares** of Class A Common Stock and will expire on October 16, 2025[161](index=161&type=chunk) [Exhibits](index=36&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including officer certifications and Inline XBRL data files for interactive reporting - The filing includes certifications from the Principal Executive Officer and Principal Financial Officer pursuant to Sarbanes-Oxley Act Sections 302 and 906[164](index=164&type=chunk) - Inline XBRL documents are included as exhibits for interactive data reporting[164](index=164&type=chunk)

Financial Data and Key Metrics Changes - Average daily sales (ADS) for the fiscal third quarter declined 0.8% year over year but improved 7% quarter over quarter, exceeding historical sequential averages [8][24] - Gross margins were reported at 41%, improving 10 basis points year over year, while adjusted operating margins were at 9%, down 240 basis points compared to the prior year [9][29] - Reported operating margin for the quarter was 8.5%, compared to 10.9% in the prior year quarter [29] Business Line Data and Key Metrics Changes - Core customer daily sales were down 0.8% year over year, while public sector sales improved 2.4% year over year [10][25] - The installed base of vending machines increased to over 28,700, with average daily sales through vending up approximately 8% year over year [26] - Sales to customers with an implant program grew 10% year over year, also representing approximately 19% of total company net sales [26] Market Data and Key Metrics Changes - Conditions in primary end markets remain subdued, particularly in automotive and fabricated metals, while aerospace continues to show growth [14] - The manufacturing business sentiment has fluctuated, with readings returning to negative numbers in April and May, reflecting customer caution around tariffs [15] Company Strategy and Development Direction - The company is focused on three critical areas: reenergizing the core customer, maintaining momentum in high-touch solutions, and optimizing cost to serve [7] - The company is implementing a sales optimization initiative and productivity efforts to lower costs, alongside a tariff management plan [6][20] - The company aims to deliver $10 million to $15 million in annualized savings by fiscal year 2026 through network optimization initiatives [22] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding future production levels, despite current macroeconomic uncertainties [15] - The company remains committed to its strategic initiatives and is confident in the opportunities ahead, despite the subdued manufacturing environment [15][16] Other Important Information - The company repurchased approximately 117,000 shares during the quarter, returning approximately $56 million to shareholders [30] - Free cash flow conversion is expected to be approximately 120% for the full year, an increase from prior expectations of 100% [32] Q&A Session Summary Question: Price outlook for Q4 and next year - Management indicated that recent price increases would likely contribute low single digits to revenue, with ongoing inflationary pressures from suppliers [41][42] Question: Q4 margin outlook - Management expects operating margins to be flat to down 50 basis points quarter over quarter, with better gross margin performance anticipated [46][48] Question: Supplier price increases - Discussions with suppliers are ongoing and fluid, with general inflationary pressures being observed across the supply chain [55] Question: Core account growth potential - Management is encouraged by progress in core accounts and aims for growth consistent with company averages, focusing on marketing and web pricing [75][76] Question: Website metrics and marketing effectiveness - The company has seen consistent improvements in website traffic and conversion rates, driven by a combination of digital and personal outreach marketing efforts [90][91] Question: Digital Core initiative - The Digital Core initiative is being reactivated to enhance core order-to-cash systems, aimed at unlocking productivity [97] Question: Trends through June - Sales trends in June were reported as fairly consistent throughout the month [98]