Financial Performance - Net sales for the 13 weeks ended May 3, 2025, were $2,848,367, an increase of 4.5% compared to $2,725,848 for the same period in 2024[80] - Comparable sales increased by 2.9% for the 13 weeks ended May 3, 2025, compared to a 1.6% increase for the same period in 2024[80] - Gross profit for the quarter was $1,114,219, up from $1,069,780 in the prior year, reflecting a gross margin improvement[80] - Operating income for the quarter was $401,777, slightly higher than $400,948 in the same quarter last year[80] - Net income for the 13 weeks ended May 3, 2025, was $305,052, compared to $313,113 for the same period in 2024, indicating a decrease of 2.6%[80] Expenses and Costs - Selling, general and administrative expenses rose to $710,613 from $665,913, reflecting increased operational costs[80] - Selling, general and administrative (SG&A) expenses increased by $44.7 million or 6.7%, amounting to $710.6 million, with SG&A as a percentage of net sales rising to 24.9%[84] - Net income decreased to $305.1 million for the 13 weeks ended May 3, 2025, down from $313.1 million in 2024, primarily due to increased SG&A expenses and income tax expense[88] Store Operations - The number of stores at the end of the period increased to 1,451 from 1,395 year-over-year[80] - The company opened six new stores during the 13 weeks ended May 3, 2025, compared to 12 new stores opened in the same period in 2024[99] Cash and Liquidity - Cash and cash equivalents were $454.6 million as of May 3, 2025, compared to $524.6 million on May 4, 2024[89] - Net cash provided by operating activities increased to $220.0 million for the 13 weeks ended May 3, 2025, compared to $159.3 million in 2024[95] - The company had no outstanding borrowings under its credit facility as of May 3, 2025, indicating strong liquidity management[105] Market Outlook and Strategy - The company anticipates that persistent inflation and macroeconomic pressures may negatively impact sales trends throughout fiscal 2025[68] - The long-term growth strategy includes expanding omnichannel capabilities and opening new stores to drive profitable growth[66] - The beauty market is expected to continue expanding, supported by ongoing consumer engagement with beauty products[67] Inventory Management - Merchandise inventories increased by $215.5 million or 11.3%, totaling $2.1 billion as of May 3, 2025[98] Share Repurchase - The company repurchased 986,733 shares at a total cost of $362.1 million during the 13 weeks ended May 3, 2025[108]

Dell Technologies Delivers First Quarter Fiscal 2026 Financial Results ROUND ROCK, Texas — May 29, 2025 — Dell Technologies (NYSE: DELL) announces financial results for its fiscal 2026 first quarter. The company also provides guidance for its fiscal 2026 second quarter and full year. First-Quarter Summary Exhibit 99.1 "All of our core businesses grew as we reached $23.4 billion in revenue in our first quarter, and non-GAAP EPS grew three times faster than revenue," said Yvonne McGill, chief financial office ...

Financial Performance - Q4 revenue was $388 million, up 16% year-over-year, with Elastic Cloud revenue at $182 million, up 23% year-over-year[1][6] - FY25 total revenue reached $1.483 billion, an increase of 17% year-over-year, with Elastic Cloud revenue at $688 million, up 26% year-over-year[1][6] - Total revenue for the three months ended April 30, 2025, was $388,432, representing a 16% year-over-year increase[35] - Total subscription revenue for the year ended April 30, 2025, was $1,384,520, an 18% increase year-over-year[35] - Subscription revenue increased to $361,741 thousand for the three months ended April 30, 2025, up 16.3% from $310,984 thousand in the prior year[33] - Elastic Cloud revenue reached $181,507 for the three months ended April 30, 2025, with a 23% year-over-year growth[35] Profitability Metrics - GAAP operating loss for Q4 was $12 million, with a GAAP operating margin of -3%, while non-GAAP operating income was $60 million, with a non-GAAP operating margin of 15%[6] - Non-GAAP net income for the year ended April 30, 2025, was $217,837, up from $123,568 in 2024, reflecting a 76% increase[39] - Non-GAAP earnings per share (diluted) for the three months ended April 30, 2025, was $0.47, compared to $0.21 in the same period last year[39] - Non-GAAP operating margin for FY26 is expected to be approximately 16%[14] - Gross profit for the three months ended April 30, 2025, was $290,647 thousand, compared to $247,128 thousand for the same period in 2024, reflecting a 17.6% increase[27] - Adjusted free cash flow for the three months ended April 30, 2025, was $84,862, compared to $60,103 for the same period in 2024, marking a 41% increase[37] Customer Growth - Total customer count with Annual Contract Value (ACV) greater than $100,000 increased to over 1,510, compared to over 1,460 in Q3 FY25[7] Future Guidance - The company expects Q1 FY26 revenue to be between $396 million and $398 million, representing 14% year-over-year growth at the midpoint[11] - Non-GAAP diluted earnings per share for Q1 FY26 is expected to be between $0.41 and $0.43, assuming between 107.5 million and 108.5 million diluted weighted average ordinary shares outstanding[12] Strategic Initiatives - The company announced the acquisition of Keep Alerting Ltd, enhancing its AIOps capabilities[10] - A five-year global Strategic Collaboration Agreement was signed with Amazon Web Services (AWS) to deepen partnership through solution integrations[10] - The company plans to expand Elastic Cloud Serverless, now available in 1 region on Google Cloud and 4 regions on AWS[10] Balance Sheet Highlights - Cash and cash equivalents increased to $727,543 thousand as of April 30, 2025, from $540,397 thousand as of April 30, 2024[29] - Total assets grew to $2,592,853 thousand as of April 30, 2025, compared to $2,242,566 thousand as of April 30, 2024[29] - Deferred revenue increased to $802,117 thousand as of April 30, 2025, up from $663,846 thousand as of April 30, 2024, indicating strong future revenue potential[29] - Total remaining performance obligations reached $1,545,412, reflecting a 14% increase year-over-year[35]

Exhibit 99.1 ULTA BEAUTY ANNOUNCES FIRST QUARTER FISCAL 2025 RESULTS Net Sales Increased 4.5% to $2.8 Billion Comparable Sales Increased 2.9% Net Income of $305.1 Million or $6.70 Per Diluted Share Company Updates Fiscal 2025 Guidance Bolingbrook, IL – May 29, 2025 – Ulta Beauty, Inc. (NASDAQ: ULTA) today announced financial results for the thirteen-week period ("first quarter") ended May 3, 2025. | | | 13 Weeks Ended | | | | --- | --- | --- | --- | --- | | | May 3, | | May 4, | | | (Dollars in millions, ex ...

Financial Performance - For the three months ended April 30, 2025, revenue was $276.3 million, a year-over-year growth of 4%[113] - Billings for the three months ended April 30, 2025, were $242.3 million, an increase of 27% from $190.5 million for the same period in 2024[123] - Revenue for the three months ended April 30, 2025 was $276,272,000, a $11,614,000 or 4% increase from $264,658,000 in 2024, driven by seat growth and strong attach rates[145][147] - Gross profit for the three months ended April 30, 2025, was $215.6 million, with a gross margin of 78.0%[113] - Operating income for the three months ended April 30, 2025, was $6.3 million, with an operating margin of 2.3%[113] - Non-GAAP free cash flow for the three months ended April 30, 2025, was $118.3 million, a decrease of 4% from $123.2 million for the same period in 2024[127] Remaining Performance Obligations - Remaining performance obligations (RPO) as of April 30, 2025, were $1.469 billion, representing a 21% increase from $1.212 billion as of April 30, 2024[119] - The increase in RPO was primarily driven by expansion within existing customers and the addition of new customers, with a 390 basis point impact from favorable foreign currency exchange rates[120] Customer Retention - The net retention rate is a key metric indicating the long-term value of subscription agreements, reflecting the company's ability to retain and grow revenue from existing customers[129] - The net retention rate was 102% and 101% as of April 30, 2025 and 2024, respectively, indicating strong customer retention despite budget scrutiny[130] - The company expects to maintain a net retention rate above 100% in the foreseeable future as it continues to penetrate customer accounts[130] Expenses - Cost of revenue increased by $2,421,000 or 4% to $60,673,000, with gross margin remaining at 78%[148] - Research and development expenses rose by $9,628,000 or 15% to $72,301,000, representing 26% of revenue, driven by increased headcount and related costs[150][151] - Sales and marketing expenses increased by $6,426,000 or 7% to $99,099,000, accounting for 36% of revenue, influenced by workforce reorganization and employee-related costs[152][153] - General and administrative expenses grew by $4,808,000 or 15% to $37,861,000, representing 14% of revenue, primarily due to increased stock-based compensation and headcount[154][155] Cash Flow and Investments - As of April 30, 2025, cash and cash equivalents totaled $792.1 million, with operating cash flow generated of $127.1 million during the three months[161] - Net cash provided by operating activities decreased by $4.1 million to $127.1 million, attributed to a $9.0 million decrease in net income[162] - Net cash used in investing activities decreased by $12.8 million to $(10.4) million, primarily due to a $14.2 million decrease in purchases of short-term investments[164] - Net cash used in financing activities increased by $26.1 million to $(61.8) million, mainly due to a $17.5 million increase in stock repurchases[165] Debt and Financing - The company issued $460.0 million of 1.50% convertible senior notes due September 15, 2029, with a conversion price of approximately $43.46 per share[166] - A share repurchase plan was authorized, with $150 million allocated for repurchases; 1.6 million shares were repurchased at an average price of $31.28 per share for a total of $49.6 million[171] - The company had no debt outstanding on the June 2023 Facility as of April 30, 2025[169] Foreign Currency Exposure - Approximately one-third of the company's revenue is represented by customer contracts denominated in foreign currencies, including the Japanese Yen, Euro, and British Pound[186] - For the three months ended April 30, 2025, total revenue was unfavorably impacted by approximately 90 basis points due to foreign currency fluctuations compared to the prior period[187] - The company recognized $2.8 million in foreign currency exchange gains for the three months ended April 30, 2025, net of losses from foreign currency derivative contracts[189] - The company has entered into foreign currency derivative contracts to hedge unrealized gains and losses from remeasurement of monetary assets and liabilities denominated in foreign currencies[189] - The company has increasing exposure to fluctuations in foreign currency exchange rates as foreign operations grow, particularly in Japan[186] - The company has entered into foreign currency derivative contracts designated as cash flow hedges to mitigate the impact of foreign exchange rate fluctuations on future cash flows and earnings[189] Interest Income and Expense - Interest income for the three months ended April 30, 2025 was $6,698,000, an increase of $1,009,000 or 18% from $5,689,000 in 2024, attributed to higher cash and short-term investment balances[156][157] - Interest expense increased by $1.9 million, or 235%, to $(2.7) million for the three months ended April 30, 2025, primarily due to a $2.1 million increase related to the 2029 Convertible Notes[158] Tax Provision - Provision for income taxes rose by $0.3 million, or 7%, to $4.95 million, mainly due to increases in foreign income taxes from profitability and U.S. income taxes from the release of the U.S. valuation allowance[160]

Financial Performance - Fourth quarter net revenues reached $1.73 billion, a 4% increase year-over-year[1] - Fiscal year 2025 net revenues totaled $6.57 billion, reflecting a 5% year-over-year growth[1] - Billings for fiscal year 2025 amounted to $6.78 billion, an 8% increase year-over-year[3] - Net revenues for Q4 FY25 were $1,732 million, a 3.8% increase from $1,668 million in Q4 FY24[49] - Product revenues reached $845 million in Q4 FY25, up 4.8% from $806 million in Q4 FY24[52] - Net income for Q4 FY25 was $340 million, a 16.8% increase from $291 million in Q4 FY24[49] - Non-GAAP net income for FY2025 reached $1,516 million, up 10.3% from FY2024's $1,375 million[58] - Earnings per share for fiscal year 2025 were $5.67, up from $4.63 in fiscal year 2024[6] - Net income per share for Q4 FY25 was $1.65, compared to $1.37 in Q4 FY24, marking a 20.4% increase[62] Cash Flow and Shareholder Returns - The company plans to return $1.57 billion to stockholders through share repurchases and cash dividends in fiscal year 2025[3] - Free cash flow for Q4 FY25 was $640 million, which is 37.0% of net revenues[55] - The company repurchased $250 million of common stock in Q4 FY25, compared to $100 million in Q4 FY24[51] Assets and Liabilities - Total assets increased to $10,823 million as of April 25, 2025, compared to $9,887 million on April 26, 2024, reflecting a growth of approximately 9.4%[47] - Current assets rose to $5,851 million, up from $4,897 million, indicating an increase of about 19.4% year-over-year[47] - Total liabilities increased to $9,783 million, compared to $8,741 million, marking a growth of about 11.9%[47] - Long-term debt rose to $2,485 million from $1,992 million, reflecting an increase of approximately 24.8%[47] - The company reported a significant increase in accounts receivable, which grew to $1,246 million from $1,007 million, a rise of about 23.7%[47] - The total current liabilities increased to $4,662 million, up from $4,106 million, indicating a growth of approximately 13.5%[47] Operational Efficiency - Gross profit for Q4 FY25 was $1,193 million, compared to $1,176 million in Q4 FY24, reflecting a gross margin of 68.8%[49][52] - Non-GAAP income from operations for Q4 FY25 was $496 million, representing 28.6% of net revenues[53] - Total operating expenses for Q4 FY25 were $845 million, up from $810 million in Q4 FY24[49] - Research and development expenses for Q4 FY25 were $256 million, down from $271 million in Q4 FY24[60] - Sales and marketing expenses for FY2025 were $1,865 million, an increase of 2% from FY2024's $1,828 million[60] Future Projections - For Q1 FY 2026, net revenues are expected to be in the range of $1.455 billion to $1.605 billion[7] - Full FY 2026 net revenues are projected to be between $6.625 billion and $6.875 billion[8] - The company projects Q1 FY26 GAAP gross margin guidance of 70% - 71% and non-GAAP gross margin guidance of 71% - 72%[76] - For FY26, the company expects GAAP net income per share to be between $5.80 and $6.10, with non-GAAP net income per share guidance of $7.60 to $7.90[83] Strategic Focus - The company is focusing on driving growth in total product revenues through the sale of configured storage systems, emphasizing operational discipline to enhance earnings leverage[25] - NetApp's strategy includes potential simplification of pricing for certain products, which may impact the allocation between hardware and software components[26] - The company aims to maintain strong relationships with customers, partners, and suppliers while navigating global economic uncertainties and market conditions[1]

Revenue Performance - Total net revenue for the three months ended April 30, 2025, was $1,633 million, a 15.2% increase from $1,417 million in the same period of 2024[25]. - Revenue recognized during the three months ended April 30, 2025, from deferred revenue balances was $1.35 billion, compared to $1.19 billion in the same period of 2024[29]. - The Americas contributed $725 million to total net revenue in Q1 2025, up from $619 million in Q1 2024, representing a 17.1% increase[25]. - Net revenue from the Architecture, Engineering, Construction and Operations segment was $809 million, up from $674 million, reflecting a 20% increase year-over-year[25]. - For the three months ended April 30, 2025, Autodesk reported total net revenue of $1.633 billion, an increase of 15.3% compared to $1.417 billion for the same period in 2024[114]. Financial Position - Autodesk's cash equivalents and marketable securities totaled $1,569 million as of April 30, 2025[33]. - As of April 30, 2025, Autodesk's total fair value of marketable debt securities was $485 million, with $194 million due within 1 year and $261 million due in 1 to 5 years[38]. - Autodesk had no material unrealized losses for marketable debt securities as of April 30, 2025, and January 31, 2025, and total unrealized gains were not material for the three months ended April 30, 2025[38]. - The total fair value of financial instruments measured at fair value on a recurring basis was $1,541 million as of April 30, 2025, compared to $1,442 million as of January 31, 2025[46]. - Long-lived assets totaled $258 million as of April 30, 2025, down from $286 million as of January 31, 2025[117]. Stock-Based Compensation - Autodesk recorded stock-based compensation expense related to restricted stock units of $140 million for the three months ended April 30, 2025, compared to $127 million for the same period in 2024, reflecting an increase of approximately 10.2%[55]. - The fair value of shares vested during the three months ended April 30, 2025, was $428 million, up from $396 million in the same period in 2024[54]. - Autodesk granted 2 million restricted stock units during the three months ended April 30, 2025, with a weighted average grant date fair value of $260.61 per share[53]. - Stock-based compensation expense for the three months ended April 30, 2025, totaled $230 million, up from $149 million in 2024, with significant increases in marketing and sales (from $53 million to $97 million) and research and development (from $66 million to $89 million)[62]. - Autodesk recorded stock-based compensation expense related to performance stock units of $21 million for the three months ended April 30, 2025, compared to $6 million for the same period in 2024, indicating a significant increase[59]. Income and Expenses - The consolidated net income for the three months ended April 30, 2025, was $152 million, a decrease of 39.7% from $252 million in the prior year[114]. - Basic net income per share for the three months ended April 30, 2025, was $0.71, down from $1.17 in the same period of 2024[111]. - Autodesk recorded an income tax expense of $82 million on a pre-tax income of $234 million for the three months ended April 30, 2025, compared to $57 million on a pre-tax income of $309 million in 2024[68]. - Autodesk's marketing and sales expenses for the three months ended April 30, 2025, were $398 million, slightly down from $408 million in the same period of 2024[114]. Cash Flow - Net cash provided by operating activities for the three months ended April 30, 2025, was $564 million, an increase from $494 million in the same period of 2024, primarily driven by a $152 million net income and $489 million in non-cash items[209]. - Net cash used in investing activities was $58 million for the three months ended April 30, 2025, compared to a significant outflow of $638 million in the same period of 2024, mainly due to business combinations and marketable securities purchases[211]. - Net cash used in financing activities was $415 million for the three months ended April 30, 2025, primarily due to stock repurchases, compared to $61 million in the same period of 2024[212]. Debt and Financing - The company has entered into a 2025 Credit Agreement providing for an unsecured revolving loan facility of $1.5 billion, with an option to increase to $2 billion[118]. - The 2025 Credit Agreement requires Autodesk to maintain a maximum leverage ratio of Consolidated Covenant Debt to Consolidated EBITDA no greater than 3.50:1.00[119]. - As of April 30, 2025, the total principal outstanding for borrowings is $2.3 billion, with expected future principal payments of $300 million in 2026, $500 million in 2028, and $1 billion thereafter[87]. - Autodesk issued $1.0 billion in 2.4% notes due December 15, 2031, with net proceeds of $988 million used for environmentally and socially responsible projects[80]. - Autodesk issued $300 million of 4.375% notes due June 15, 2025, receiving net proceeds of $296 million after discounts and issuance costs[83]. Strategic Investments and Restructuring - Autodesk's strategic investments in equity securities amounted to $168 million as of April 30, 2025, with no readily determined fair values[43]. - The net unrealized adjustments for strategic investment equity securities were $(93) million as of April 30, 2025, with cumulative negative adjustments totaling $(122) million[44]. - The company initiated a restructuring plan in fiscal 2026 to optimize its go-to-market organization and reallocate resources towards cloud, platform, and artificial intelligence investments[97]. - The restructuring and other exit costs liability as of April 30, 2025, totaled $29 million, with employee termination costs accounting for $28 million of this amount[98]. Market and Customer Insights - The net revenue retention rate (NR3) measures the year-over-year change in recurring revenue for base customers, reflecting the company's ability to maintain and grow its existing customer base[225]. - Recurring revenue consists of revenue from maintenance plans, subscription offerings, and certain other revenue, excluding third-party subscription revenue[227]. - Remaining performance obligations (RPO) represent the total short-term, long-term, and unbilled deferred revenue, indicating future revenue expectations[228]. - The design business includes key products such as AutoCAD, Revit, and Maya, contributing significantly to the company's overall revenue[218].

Sales Performance - Consolidated sales for the three months ended April 30, 2025, were $682,938 thousand, representing a 5.0% increase from $650,642 thousand in the same period of 2024[106]. - For the six months ended April 30, 2025, consolidated sales reached $1,298,358 thousand, a 1.1% increase compared to $1,283,835 thousand in the prior year[106]. - The IPS segment experienced a 6.9% organic sales decrease in the three months ended April 30, 2025, primarily due to weaker demand in polymer processing and industrial coatings[108]. - The MFS segment saw a 10.0% organic sales decrease in the three months ended April 30, 2025, attributed to targeted program rationalization and ongoing destocking[108]. - The ATS segment reported an 18.1% organic sales increase in the three months ended April 30, 2025, driven by strong demand in semiconductor and electronics markets[108]. - The Americas region accounted for 42.8% of total sales in the three months ended April 30, 2025, down from 45.3% in the prior year[110]. - The Asia Pacific region saw a 22.6% organic sales increase in the three months ended April 30, 2025, contributing to a total sales growth of 25.2% in that region[110]. - If transactions for the three months ended April 30, 2025, were translated at 2024 exchange rates, estimated sales would have been approximately $4,000 higher[120]. Profitability - The gross margin for the three months ended April 30, 2025, was 54.7%, down from 56.2% in the same period of 2024, reflecting a 1.5% decrease[106]. - Net income for the three months ended April 30, 2025, was $112,404 thousand, a decrease of 4.9% from $118,217 thousand in the prior year[106]. - Operating profit for the three months ended April 30, 2025, was $168,750 thousand, a slight increase of 0.1% from $168,616 thousand in the same period of 2024[111]. - Net income for the six months ended April 30, 2025, was $207,056, or $3.62 per diluted share, reflecting a 9.1% decrease in net income and an 8.4% decrease in diluted earnings per share compared to the same period in 2024[119]. - Net income for the three months ended April 30, 2025, was $112,404, or $1.97 per diluted share, representing a 4.9% decrease in net income and a 3.9% decrease in diluted earnings per share compared to the same period in 2024[118]. Cash Flow and Liquidity - Cash and cash equivalents increased by $14,205 during the six months ended April 30, 2025, with approximately 78% held at various foreign subsidiaries[123]. - Net cash provided by operating activities for the six months ended April 30, 2025, was $278,292, a decrease from $294,964 in the same period of 2024[123]. - The company is well-positioned to manage liquidity needs, with cash on hand of $130,157 and available borrowings totaling $806,477 as of April 30, 2025[125]. - The company has a $1,150,000 unsecured multi-currency credit facility, with $280,000 outstanding on the term loan facility and $243,000 on the revolving credit facility as of April 30, 2025[124]. Taxation - The effective tax rate for the three and six months ended April 30, 2025, was 19.0%, lower than the U.S. tax rate of 21%, primarily due to foreign-derived intangible income deductions[117]. Capital Expenditures - Additions to property, plant, and equipment for the six months ended April 30, 2025, were $37,439, driven by productivity and growth projects, including a new manufacturing facility[123]. Interest Expense - Interest expense for the three months ended April 30, 2025, was $26,572, an increase from $20,109 in the same period of 2024, primarily due to higher average debt levels from acquisitions[114].

Financial Performance - Total retail sales for Q1 2025 were $168.4 million, a decrease from $175.3 million in Q1 2024, primarily due to store closures[66] - Total revenues for Q1 2025 were $170.2 million, down from $177.1 million in Q1 2024[67] - Net income for Q1 2025 was $3.4 million, or 2.0% of total revenues, down from $11.0 million, or 6.3% in Q1 2024[60] - Same-store sales were flat for the quarter, with e-commerce sales accounting for less than 5.0% of total sales[66] Cost and Expenses - Cost of goods sold was $109.3 million, or 64.9% of retail sales, compared to $112.5 million, or 64.2% in Q1 2024[69] - SG&A expenses were $55.3 million, or 32.8% of retail sales, compared to $56.8 million, or 32.4% in Q1 2024[70] Tax and Store Closures - The effective income tax rate for Q1 2025 was 21.9%, compared to 5.6% in Q1 2024[74] - The company expects to close approximately 50 stores in fiscal 2025[67] Cash Flow and Investments - Net cash provided by investing activities totaled $7.9 million in Q1 fiscal 2025, down from $14.6 million in Q1 fiscal 2024, primarily due to decreased sales of short-term investments[81] - Net cash used in financing activities was $0.9 million in Q1 fiscal 2025, a decrease from $5.6 million in Q1 fiscal 2024, attributed to no dividends paid and reduced stock repurchases[82] - Capital expenditures for the first three months of fiscal 2025 totaled $1.0 million, down from $3.3 million in the same period last year[80] Share Repurchase and Credit Facility - As of May 3, 2025, the company had 703,419 shares remaining in open authorizations under its share repurchase program[83] - The company has established an asset-based revolving credit facility of up to $35.0 million, with $30.0 million available as of May 3, 2025[78][79] Investment Portfolio - The company's investment portfolio is primarily in corporate bonds and taxable governmental debt securities with ratings of A or better, with maturities ranging from 10 days to 2.9 years[85] - Deferred compensation plan assets were $9.2 million as of May 3, 2025, slightly down from $9.3 million on February 1, 2025[86] Market Risk - The company is subject to market rate risk from interest rate changes related to financing, investing, and cash management activities, but does not consider this exposure to be material[88]

Financial Performance - The Company reported diluted earnings per share of $0.33 for Q2 FY2025, a decrease of 3% compared to the same period last year[96]. - Net sales for Q2 FY2025 were $2.90 billion, a slight increase of 0.4% year-over-year, with organic net sales growth of 1%[98]. - Total segment profit for Q2 FY2025 decreased by 3%, with declines in the Foodservice and International segments offsetting growth in the Retail segment[96]. - Gross profit for Q2 FY2025 was $484.4 million, representing 16.7% of net sales, down from 17.4% in the prior year[103]. - Earnings before income taxes for the quarter were $230,489, a decrease of 5.6% compared to $244,139 in the prior year[114]. - Adjusted Operating Income (Non-GAAP) for the quarter ended April 27, 2025, was $264,903,000, a decrease of 3.9% compared to $275,914,000 for the same period in 2024[132]. - The adjusted diluted earnings per share (Non-GAAP) for the quarter ended April 27, 2025, was $0.35, compared to $0.38 in the same quarter of 2024[132]. Sales and Segment Performance - Retail segment net sales decreased by 0.3% to $1,783,835 for the quarter, with a volume decline of 6.6%[115]. - Foodservice segment net sales increased by 0.5% to $936,442, with organic net sales growth of 3.6%[117]. - International segment net sales grew by 7.0% to $178,533, driven by strong performance in exports and the China market[120]. - Total segment profit decreased by 2.9% to $296,175 for the quarter, with notable declines in the International segment profit by 20.7%[114]. - The Company expects net sales growth from each of its segments in Q3 FY2025 compared to the prior year[100]. - The company anticipates an increase in Retail segment profit for the third quarter of fiscal 2025, driven by top-line growth[116]. - The Foodservice segment is expected to see profit growth in the third quarter of fiscal 2025, supported by organic top-line growth[119]. - The International segment is projected to increase profit in the third quarter of fiscal 2025, despite ongoing softness in Brazil[122]. Cash Flow and Expenses - Cash flow from operations was $366 million for the first six months of FY2025, a 43% decrease from the prior year, primarily due to an inventory build[101]. - Cash Provided by Operating Activities for the six months ended April 27, 2025, was $365,646,000, compared to $640,127,000 in the same period of 2024[137]. - Cash and Cash Equivalents at the end of the period for the six months ended April 27, 2025, were $669,688,000, down from $1,486,368,000 in the prior year[137]. - Net unallocated expense increased by 7.8% to $65,411 for the quarter, primarily due to reduced interest income[123]. - SG&A expenses for Q2 FY2025 were $251.4 million, a decrease of 5.7% year-over-year, primarily due to lower advertising expenses[105]. - Advertising investments in Q2 FY2025 were $36 million, an 18% decrease compared to the previous year[107]. Capital Expenditures and Dividends - The Company paid cash dividends totaling $314,000,000 during the first six months of fiscal 2025, compared to $305,000,000 in the same period of fiscal 2024[140]. - The Company reported an increase in capital expenditures to $147,000,000 for the first six months of fiscal 2025, up from $107,000,000 in the prior year[140]. - Capital expenditures for fiscal 2025 are estimated to be between $275 million and $300 million, focusing on value-added capacity, infrastructure, and new technology[144]. - The Board of Directors approved an increased annual dividend rate for fiscal 2025, raising it to $1.16 per share from $1.13 per share, marking the 59th consecutive annual dividend increase[143]. Debt and Financial Position - As of April 27, 2025, the Company has $2.9 billion of fixed rate unsecured senior notes due in fiscal years 2027, 2028, 2030, and 2051, with $37 million in interest payments made in the first half of fiscal 2025[145]. - The Company maintains a $750 million unsecured revolving credit facility, which can be increased by an additional $375 million under certain conditions, with no outstanding borrowings as of April 27, 2025[146]. - The Company's long-term debt had a fair value of $2.5 billion as of April 27, 2025, with a 10% decrease in interest rates potentially increasing its value by $68 million[163]. - The Company held $247 million in cash and cash equivalents in its international subsidiaries as of April 27, 2025[148]. - The Company's net asset position in foreign currencies was $1.2 billion as of April 27, 2025, primarily exposed to Chinese yuan, Indonesian rupiah, and Brazilian real[164]. - One customer accounted for more than 10% of net accounts receivable as of April 27, 2025, indicating concentration of credit risk[166]. Commodity and Risk Management - The fair value of the Company's cash flow commodity contracts was $7.8 million as of April 27, 2025, compared to $(5.9) million as of October 27, 2024[162]. - The balance of corporate-owned life insurance policies classified as trading securities totaled $208.6 million as of April 27, 2025[165]. - The Company is authorized to repurchase up to 3,677,494 shares of common stock, with no shares repurchased in the first half of fiscal 2025[149].