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].

Financial Transactions - Roivant completed the sale of Dermavant to Organon for up to approximately $1.2 billion, including an upfront payment of $175 million and a $75 million milestone payment for FDA approval of VTAMA[36]. - Roivant repurchased a total of 128 million common shares for $1.3 billion, reducing common shares outstanding by 14% from March 31, 2024[36]. - Roivant received cash consideration of $183.6 million from the Dermavant Transaction, with an additional $75.0 million expected upon FDA approval of VTAMA for atopic dermatitis[54]. - Roivant is entitled to milestone payments of up to $950 million based on tiered net sales of VTAMA, with royalties ranging from low-to-mid single digit percentages for sales up to $1 billion and 30% for sales above $1 billion[54]. - Priovant paid Pfizer $10 million for a license agreement to develop and commercialize brepocitinib and TYK2 compounds[127]. - Priovant is obligated to pay Pfizer a mid tens-of-millions sales milestone payment if net sales exceed a mid hundreds-of-millions amount[128]. - Pulmovant made an initial payment of approximately $14 million to Bayer under a license agreement, with potential total payments of up to $280 million based on milestones[140]. Clinical Development and Pipeline - Brepocitinib showed potential best-in-indication results in the Phase 2 NEPTUNE study for non-infectious uveitis, with a treatment failure rate of only 35% at 12 months for the 45 mg dose arm[36]. - Batoclimab met its primary endpoint in the Phase 3 study for myasthenia gravis, achieving a 5.6 point mean improvement and a 93% MG-ADL Response Rate[40]. - Six INDs cleared for IMVT-1402, with studies initiated in five indications, including potentially registrational trials in Graves' disease and myasthenia gravis[40]. - Mosliciguat demonstrated up to approximately 38% reductions in pulmonary vascular resistance in the Phase 1b ATMOS study, with a Phase 2 study initiated for PH-ILD[40]. - Brepocitinib has shown statistically significant efficacy in multiple Phase 2 studies, including a 49.18% placebo-adjusted improvement in the SALT score for alopecia areata[61]. - The ongoing Phase 3 study of brepocitinib in dermatomyositis has enrolled 241 subjects, with topline data expected in the second half of 2025[69]. - The Phase 3 program for non-infectious uveitis has been initiated, with topline data anticipated in the first half of 2027[69]. - The company plans to initiate a potentially registrational trial for IMVT-1402 in Sjögren's disease (SjD) and a second trial in Graves' disease in the summer of 2025[97]. - The company has ongoing trials for IMVT-1402, with topline data expected in 2026 for several indications, including rheumatoid arthritis and myasthenia gravis[74]. Market and Patient Needs - The estimated prevalence of Graves' disease (GD) patients in the U.S. is approximately 880,000, with around 330,000 patients having relapsed on antithyroid drugs (ATDs) and opting not to pursue ablation[76]. - Myasthenia Gravis (MG) has an estimated prevalence of 59,000 to 116,000 cases in the U.S., with 35% of patients not well-controlled on current standard care, representing about 20,000 to 35,000 patients with significant unmet medical needs[77]. - The estimated prevalence of Chronic Cutaneous Lupus Erythematosus (CCLE) and Subacute Cutaneous Lupus Erythematosus (SCLE) is approximately 153,000 in the U.S., with about 50% of patients not adequately responding to first-line therapies, representing around 75,000 patients with significant unmet medical needs[81]. - The estimated prevalence of Chronic Inflammatory Demyelinating Polyneuropathy (CIDP) is approximately 58,000 patients in the U.S., with around 30% inadequately controlled on treatment, representing about 16,000 patients with significant unmet medical needs[79]. - The estimated prevalence of severe Rheumatoid Arthritis (RA) in the U.S. is approximately 490,000, with about 15% being autoantibody positive and inadequately responding to prior treatments, representing around 70,000 patients with significant unmet medical needs[86]. - PH-ILD is estimated to affect up to 200,000 patients in the U.S. and E.U., with a significant unmet need for new drugs[113]. Regulatory and Compliance - The FDA regulates drug approvals under the FDCA and PHSA, requiring substantial time and financial resources for compliance[164]. - The NDA or BLA process requires extensive preclinical and clinical testing, with no guarantee of timely approval[165]. - Clinical trials are conducted in three phases, with Phase 3 trials designed to demonstrate product effectiveness and safety[171]. - The FDA targets ten months for the initial review of a new molecular entity NDA or original BLA, and six months for priority review applications[179]. - The FDA may issue a Complete Response Letter detailing deficiencies in an NDA or BLA, which may require additional clinical data or trials[181]. - Orphan drug designation is granted for products intended to treat rare diseases affecting fewer than 200,000 individuals in the U.S.[182]. - The FDA's fast-track program allows rolling review of sections of an NDA or BLA for products addressing serious conditions[186]. - Priority review reduces the FDA's target action date to six months for new molecular entity NDAs or original BLAs[187]. - Accelerated approval may be granted if a product shows meaningful advantages over existing therapies and meets specific criteria[188]. - Breakthrough therapy designation expedites development and review for products showing substantial improvement over existing therapies[189]. - The FDA requires manufacturers to comply with cGMP regulations for the production of clinical quantities of product candidates, which includes quality control and assurance measures[196]. - The FDA may impose restrictions on marketing or manufacturing, including suspension or withdrawal of product approval, if compliance with regulatory standards is not maintained[201]. Intellectual Property and Licensing - Genevant has over 550 issued patents and pending applications worldwide, focusing on nucleic acid delivery technologies[121]. - Genevant's LNP technology is included in the first FDA-approved systemic RNA-LNP product, Alnylam's Onpattro[129]. - Genevant has licensed rights to six patent families for brepocitinib, including at least 176 issued patents and 62 pending applications, expected to expire as early as 2035[148]. - ISG's in-licensed patent portfolio includes a patent family covering batoclimab with pending applications and issued patents in multiple countries, potentially expiring in 2035[149]. - ISG jointly owns rights to a patent family covering IMVT-1402, with a U.S. patent issued on March 12, 2024, potentially expiring in 2043[152]. - Pulmovant, Inc. holds exclusive rights to five patent families for mosliciguat, with 84 issued patents and 70 pending applications, expected to expire between 2033 and 2042[159]. - Genevant has licensed 28 patent families containing 463 issued patents and 108 pending applications, expected to expire between June 2025 and 2041[161]. Legislative and Market Environment - The ACA increased pharmaceutical manufacturers' rebate liability by raising the minimum basic Medicaid rebate on most branded prescription drugs to 23.1% of average manufacturer price (AMP)[217]. - The Inflation Reduction Act (IRA) includes a drug price negotiation program for certain high-spend Medicare drugs, capping prices by a "maximum fair price"[222]. - The IRA imposes new manufacturer rebate obligations on certain drugs whose prices increase faster than inflation, potentially increasing government discount and rebate liabilities[222]. - The ACA established a new Patient-Centered Outcomes Research Institute to conduct comparative clinical effectiveness research, which may affect the market for certain pharmaceutical products[221]. - The Medicare sequester reductions under the Budget Control Act could trigger up to a 4% reduction in Medicare payments starting January 2025 if certain conditions are met[220]. - The American Rescue Plan Act of 2021 eliminated the Medicaid unit rebate AMP cap effective January 1, 2024, which could significantly impact Medicaid rebate liability for future products[220]. - The federal Physician Payments Sunshine Act requires manufacturers to report certain payments or transfers of value made to healthcare professionals, with extended obligations effective January 1, 2022[212]. - The company is subject to increasing scrutiny from federal and state enforcement bodies regarding compliance with healthcare laws, which could lead to significant penalties[215]. - Legislative changes and regulatory challenges to the ACA and other healthcare laws may continue to exert pressure on pharmaceutical pricing and profitability[218].

Financial Performance - Roivant reported consolidated cash, cash equivalents, restricted cash, and marketable securities of approximately $4.9 billion as of March 31, 2025[10]. - Revenue for the three months ended March 31, 2025, was $7,570 million, a decrease of 16.0% compared to $9,020 million for the same period in 2024[29]. - The net loss attributable to Roivant Sciences Ltd. for the three months ended March 31, 2025, was $206,475 million, compared to a net loss of $151,115 million for the same period in 2024[29]. - Loss from continuing operations, net of tax was $252.4 million for Q4 2025, compared to $95.0 million for Q4 2024, with a per share loss of $0.29[23]. - For the fiscal year ended March 31, 2025, loss from continuing operations was $729.8 million, compared to income of approximately $4.5 billion for the previous year[24]. Research and Development Expenses - Research and development (R&D) expenses increased by $37.7 million to $145.2 million for Q4 2025, compared to $107.6 million for Q4 2024, driven by program-specific costs and personnel-related expenses[11]. - For the fiscal year ended March 31, 2025, R&D expenses rose by $110.5 million to $550.4 million, primarily due to increases in program-specific costs and personnel-related expenses[13]. - Research and development expenses for the three months ended March 31, 2025, were $145,238 million, up 35.0% from $107,555 million in the prior year[31]. General and Administrative Expenses - General and administrative (G&A) expenses increased by $39.0 million to $147.1 million for Q4 2025, compared to $108.1 million for Q4 2024, mainly due to share-based compensation expenses[18]. - For the fiscal year ended March 31, 2025, G&A expenses increased by $175.3 million to $591.4 million, largely driven by share-based compensation and personnel-related expenses[20]. Share Repurchase and Outstanding Shares - Roivant repurchased $1.3 billion of the company's shares as of March 31, 2025, reducing outstanding shares by 14% from March 31, 2024[4]. - The weighted average shares outstanding for the three months ended March 31, 2025, were 707,298,861, compared to 802,859,062 for the same period in 2024[29]. Future Plans and Expectations - The company expects topline data from the ongoing Phase 3 trial of brepocitinib in dermatomyositis in the second half of calendar year 2025[9]. - Immunovant plans to initiate potentially registrational trials for IMVT-1402 in Sjögren's disease and Graves' disease in summer 2025[9]. - The company plans to host a live conference call on May 29, 2025, to report its financial results and provide a corporate update[35]. Pipeline and Corporate Strategy - Roivant's pipeline includes several product candidates, including brepocitinib and IMVT-1402, targeting various autoimmune indications[37]. - The company aims to improve patient lives by accelerating the development and commercialization of important medicines[37]. Risks and Uncertainties - The company acknowledges that actual results may differ materially from forward-looking statements due to various risks and uncertainties[40]. - Management's expectations and beliefs are based on current conditions and may change as new information becomes available[40]. - The company operates in a competitive and rapidly changing environment, which introduces new risks over time[40].

Drug Development - Immunovant is focused on developing IMVT-1402, a potential best-in-class FcRn inhibitor, to address autoimmune diseases driven by high levels of pathogenic IgG antibodies [502]. - In a Phase 1 clinical trial, IMVT-1402 demonstrated deep, dose-dependent IgG reductions, with expectations to achieve approximately 80% IgG reductions with 600 mg weekly dosing [504]. - The company has initiated studies in five indications for IMVT-1402, including potentially registrational trials in Graves' disease, difficult-to-treat rheumatoid arthritis, myasthenia gravis, and chronic inflammatory demyelinating polyneuropathy [506]. - Batoclimab's Phase 3 study in myasthenia gravis achieved a 5.6 point mean improvement in the MG-ADL score, with a 93% response rate among AChR+ participants receiving the 680 mg dose [515]. - The Phase 2 proof-of-concept trial for batoclimab in Graves' disease showed a mean IgG reduction of 77% and a 76% response rate after 12 weeks of treatment [510]. - A second potentially registrational trial for IMVT-1402 in Graves' disease is planned to start in summer 2025, enrolling approximately 210 participants [512]. - The company expects to report top-line results from the Phase 3 trial of batoclimab in thyroid eye disease in the second half of calendar year 2025 [513]. - Data from batoclimab studies are being leveraged to inform and accelerate the development of IMVT-1402 [507]. - The Phase 2b trial of batoclimab in chronic inflammatory demyelinating polyneuropathy demonstrated an 84% responder rate in patients achieving at least a 70% IgG reduction [507]. - A potentially registrational trial for IMVT-1402 in CIDP was initiated in March 2025, aiming to enroll approximately 162 participants [521]. - The trial for IMVT-1402 in ACPA-positive D2T RA is expected to enroll approximately 120 participants, with initial results anticipated in 2026 [522]. - A proof-of-concept trial for IMVT-1402 in CLE was initiated in February 2025, with an expected enrollment of approximately 56 participants [524]. - The company plans to initiate a potentially registrational trial for IMVT-1402 in SjD in the summer of 2025, enrolling around 180 participants [523]. Financial Performance - Research and development expenses for the year ended March 31, 2025, increased by $147.99 million compared to the previous year, totaling $360.92 million [540]. - Total operating expenses for the year ended March 31, 2025, were $438.15 million, up from $282.71 million in 2024 [540]. - The net loss for the year ended March 31, 2025, was $413.84 million, compared to a net loss of $259.34 million in 2024 [540]. - General and administrative expenses for the year ended March 31, 2025, were $77.24 million, an increase from $57.28 million in 2024 [540]. - For the year ended March 31, 2025, research and development costs increased by $91.1 million compared to the prior year, with specific increases in endocrine diseases ($29.9 million) and neurological diseases ($52.2 million) due to clinical trial preparations [543]. - Unallocated research and development costs rose by $56.9 million, driven by higher personnel-related expenses of $37.2 million and other expenses of $19.7 million [544]. - General and administrative expenses increased by $20.0 million for the year ended March 31, 2025, primarily due to higher personnel-related expenses and professional fees [550]. - The company has not generated any revenue and continues to incur significant operating losses since inception [530]. - As of March 31, 2025, cash and cash equivalents were $714.0 million, up from $635.4 million in the previous year, while net losses were $413.8 million [552]. - Cash used in operating activities for the year ended March 31, 2025, was $375.9 million, reflecting a net loss from operations of $413.8 million [559]. - Cash provided by financing activities for the year ended March 31, 2025, was $454.5 million, primarily from a private placement that raised $450.0 million [563]. - The company expects to continue incurring significant expenses and increasing operating losses for the next several years, with no revenue generated to date [552]. - The existing cash and cash equivalents of $714.0 million as of March 31, 2025, are expected to be sufficient to fund operating expenses and capital expenditures through the GD readout anticipated in 2027 [570]. - The company anticipates an increase in short-term and long-term capital requirements to fund clinical development programs and manufacturing of IMVT-1402 [572]. - Current funds are insufficient to complete all necessary development and commercial launch of IMVT-1402 or batoclimab, with expected continued net losses [573]. Milestone Payments and Obligations - The company has a remaining minimum obligation of approximately $43.6 million to Samsung for batoclimab drug substance manufacturing, with payments scheduled through fiscal year 2030 [568]. - As of March 31, 2025, the maximum potential milestone payments under the HanAll Agreement could reach $420.0 million, with $32.5 million already paid for prior milestones [569]. - The company made a milestone payment of $12.5 million during the quarter ended September 30, 2023, following the achievement of regulatory milestones [569]. Research and Development Strategy - Research and development costs are expensed as incurred, primarily consisting of employee compensation and third-party expenses for clinical trials [576]. - The company plans to integrate acquired technologies, expand its intellectual property portfolio, and hire additional personnel to support drug development efforts [577]. Liquidity and Market Risks - As of March 31, 2025, cash and cash equivalents are maintained in accredited financial institutions, with no material effect on liquidity from a hypothetical 10% change in interest rates [578]. - The company does not currently face significant foreign currency exchange rate risk, as expenses are primarily in U.S. dollars [579]. - Inflation has not had a material effect on the company's business or financial condition as of March 31, 2025 [580].

Financial Performance - Reported sales for Q1 2025 were $614.2 million, down 6.8% year-on-year, and below expectations [3] - Famous Footwear sales decreased by 6.3%, with comparable sales down 4.6% compared to Q1 2024 [4] - Net earnings were $6.9 million, or $0.21 per diluted share, compared to $30.9 million, or $0.88 per diluted share in Q1 2024 [4] - The total net sales for the consolidated segment decreased to $614,221,000 in Q1 2025 from $659,198,000 in Q1 2024, reflecting a decline of approximately 6.8% [18] - For the thirteen weeks ended May 3, 2025, Caleres, Inc. reported net earnings of $6,943,000, a decrease from $30,939,000 for the same period in 2024, resulting in a diluted earnings per share of $0.21 compared to $0.88 [21] - Gross profit was $278.7 million, with a gross margin of 45.4%, down 150 basis points from the previous year [4] - Gross profit for the consolidated segment was $278,694,000, down from $309,095,000 in the prior year, leading to a gross margin of 45.4%, down from 46.9% [18] - Operating earnings for the consolidated segment were $11,584,000, significantly lower than $42,758,000 in the same quarter of 2024, resulting in an operating margin of 1.9% compared to 6.5% [18] - For the thirteen weeks ended May 3, 2025, Caleres, Inc. reported EBITDA of $28,051,000, down from $57,381,000 for the same period in 2024, reflecting a decrease in EBITDA margin from 8.7% to 4.6% [23] - Adjusted net earnings attributable to Caleres, Inc. for the thirteen weeks ended May 3, 2025, were $7,409,000, compared to $30,939,000 in the same period of 2024, with an adjusted diluted earnings per share of $0.22 [22] Expenses and Cost Management - SG&A expenses as a percentage of net sales increased to 43.4%, up 300 basis points year-on-year [4] - The company announced structural cost-cutting actions to reduce SG&A by $15 million on an annualized basis [3] - The company implemented expense reduction initiatives that resulted in a positive impact of $6,103,000 on earnings [19] - The adjusted operating earnings for the Famous Footwear segment were $12,211,000, down from $42,758,000 in the prior year [19] Debt and Borrowings - Borrowings under the asset-based revolving credit facility were $258.5 million, up $67.5 million from Q1 2024 [11] - Caleres, Inc. reported borrowings under the revolving credit agreement of $258,500,000, an increase from $191,000,000 in the previous year [23] - The debt/EBITDA leverage ratio increased to 1.5 from 0.8 year-over-year, indicating a higher level of debt relative to earnings [23] Inventory and Store Operations - Inventory increased by 8.1% compared to Q1 2024 [11] - The company ended the period with 950 company-operated stores, a slight decrease from 954 stores in the previous year [18] Market Outlook - The company has suspended guidance due to market uncertainty [6] - Total charges related to acquisition and integration costs for the Stuart Weitzman brand amounted to $627,000 for the quarter [19] Trailing Twelve Months Performance - For the trailing twelve months ended May 3, 2025, net earnings attributable to Caleres, Inc. were $83,259,000, a decrease from $167,603,000 in the previous year [23] - The trailing twelve months EBITDA was reported at $177,371,000, with a margin of 6.6%, down from $247,157,000 and 8.8% respectively [23] - The adjusted EBITDA for the trailing twelve months was $187,882,000, with an adjusted EBITDA margin of 7.0%, compared to $253,260,000 and 9.0% in the prior year [23]

Financial Results and Projections - Bath & Body Works, Inc. announced anticipated financial results for Q1 2025, with a focus on revenue growth and user engagement metrics[6]. - The financial results and strategic direction will be further detailed in the upcoming earnings call[6]. Leadership Changes - The company appointed Daniel Heaf as the new Chief Executive Officer effective May 16, 2025, succeeding Gina Boswell[8]. - Ms. Boswell's termination will trigger severance payments as per her executive severance agreement, which was previously disclosed[15]. - The press release detailing these changes was issued on May 19, 2025, highlighting the leadership transition[16]. Compensation and Incentives - Mr. Heaf's annual base salary is set at $1,350,000, with a target annual incentive opportunity of 190% of his base salary[10]. - The company plans to provide Mr. Heaf with an annual equity incentive award opportunity valued at $8,000,000 starting in the 2026 fiscal year[10]. - A one-time award of restricted stock units valued at $2,500,000 will be granted to Mr. Heaf, with vesting occurring over three years[10]. Strategic Focus - The company is expected to continue its focus on market expansion and new product development under the new leadership[16]. - The company is committed to maintaining its competitive edge through strategic leadership and operational improvements[16].

Financial Performance - As of March 31, 2025, Immunovant's cash and cash equivalents totaled approximately $714 million, providing runway for announced indications through GD readout expected in 2027[9]. - Research and development expenses for the fourth quarter ended March 31, 2025, were $93.7 million, a 42% increase from $66.1 million for the same period in 2024[10]. - General and administrative expenses for the fourth quarter ended March 31, 2025, were $20.2 million, up from $14.8 million in the prior year, reflecting a 36% increase[11]. - The net loss for the fourth quarter ended March 31, 2025, was $106.4 million ($0.64 per common share), compared to a net loss of $75.3 million ($0.52 per common share) for the same period in 2024, representing a 41% increase in net loss[12]. - For the fiscal year ended March 31, 2025, research and development expenses were $360.9 million, a 70% increase from $212.9 million in the previous fiscal year[13]. - The net loss for the fiscal year ended March 31, 2025, was $413.8 million ($2.73 per common share), compared to a net loss of $259.3 million ($1.88 per common share) for the fiscal year ended March 31, 2024, indicating a 59% increase in net loss[16]. Clinical Development - Immunovant plans to initiate a potentially registrational trial evaluating IMVT-1402 in Sjögren's disease and a second trial in Graves' disease in the summer of 2025[6]. - The company is developing IMVT-1402 in six announced indications, including potentially registrational trials in Graves' disease and difficult-to-treat rheumatoid arthritis[3]. - Immunovant's current management team is focused on rapid clinical execution for the six announced indications for IMVT-1402, with a second potentially registrational study in Graves' disease expected to start in summer 2025[7]. Study Results - Positive results from batoclimab studies showed a 5.6-point improvement in MG-ADL score in the higher dose arm and an 84% responder rate in CIDP patients achieving greater than 70% IgG reduction[4].

Financial Performance - Total sales for Q1 fiscal 2025 were $105.5 million, down 8.6% from $115.5 million in Q1 fiscal 2024, with comparable sales decreasing by 9.4%[5] - Net loss for Q1 fiscal 2025 was $(1.9) million, or $(0.04) per diluted share, compared to net income of $3.8 million, or $0.06 per diluted share in Q1 fiscal 2024[20] - Adjusted EBITDA for Q1 fiscal 2025 was $0.1 million, a significant decrease from $8.2 million in Q1 fiscal 2024[21] - Gross margin rate for Q1 fiscal 2025 was 45.1%, down from 48.2% in Q1 fiscal 2024, primarily due to increased occupancy costs and markdown activity[10] - SG&A expenses as a percentage of sales increased to 45.0% in Q1 fiscal 2025 from 41.1% in Q1 fiscal 2024[13] - Free cash flow before capital expenditures for store development was $(14.5) million for Q1 fiscal 2025, compared to $(4.6) million in Q1 fiscal 2024[50] Cash and Investments - Cash and investments decreased to $29.1 million as of May 3, 2025, from $53.2 million as of May 4, 2024, reflecting $13.6 million in share repurchases[27] - Cash and cash equivalents decreased to $8.1 million as of May 3, 2025, down from $11.9 million on February 1, 2025[46] Inventory Management - Inventory decreased by approximately $5.8 million to $85.5 million as of May 3, 2025, compared to $91.2 million as of May 4, 2024[28] - Inventory levels as of May 3, 2025, were $85.5 million, an increase from $75.5 million on February 1, 2025, but a decrease from $91.2 million a year earlier[46] Future Outlook - The company expects a single-digit decrease in comparable sales for Q2 fiscal 2025, with a return to positive results in the second half of the fiscal year[9] - The company anticipates that the impact of current tariffs on financial results for fiscal 2025 could increase costs by less than $2.0 million, or approximately 40 basis points as a percentage of sales[40] Expansion Plans - FiTMAP sizing technology is currently in 52 DXL retail locations, with plans to expand to 85 stores by the end of fiscal 2025 and up to 200 stores by the end of fiscal 2027[30] - The company plans to open six additional DXL stores during fiscal 2025, with capital expenditures expected to range from $19.0 million to $21.0 million[29] Sales Breakdown - For Q1 fiscal 2025, direct sales were $29.1 million, representing 27.5% of total sales, down from $34.6 million or 30.0% in Q1 fiscal 2024[31] - Total sales for the three months ended May 3, 2025, were $105.5 million, a decrease from $115.5 million in the same period last year[45] - The company reported a net loss of $1.9 million for Q1 fiscal 2025, compared to a net income of $3.8 million in Q1 fiscal 2024[48] - Adjusted EBITDA for Q1 fiscal 2025 was $0.1 million, significantly lower than $8.2 million in Q1 fiscal 2024, resulting in an adjusted EBITDA margin of 0.1% compared to 7.1%[48]

Leadership Changes - The Board of Directors terminated CEO J. Ashley Buchanan for Cause on April 30, 2025, following an investigation into unethical business practices[5][6]. - Interim CEO Michael J. Bender was appointed following Mr. Buchanan's departure, with compensatory arrangements yet to be determined[9][11]. - Mr. Buchanan will forfeit all equity awards and reimburse the company $2,500,000 as part of his termination agreement[7]. - The company emphasized that Mr. Buchanan's termination was not related to its financial performance or reporting[8]. - The Board reduced the number of directors from 12 to 11 after Mr. Buchanan's termination[8]. Financial Performance - Kohl's Corporation announced preliminary expectations for its first quarter 2025 results, with a quarterly earnings conference call scheduled for May 29, 2025[4]. - Forward-looking statements regarding the company's performance are subject to risks and uncertainties that could materially affect actual results[15]. Shareholder Meeting - The annual meeting of shareholders is scheduled for May 14, 2025, where Mr. Buchanan's nomination for election will be withdrawn[8]. - The press release regarding these matters was issued on May 1, 2025[13].

Financial Performance - Comparable sales decreased by 2.6% from the prior-year period, with North America region sales decreasing by 0.5%[5] - Net loss is expected to be $363 million, compared to net income of $8 million in the same period last year[5] - First quarter loss per share is expected to be $3.81, compared to earnings per share of $0.09 in Q1 2024[5] - Non-GAAP net loss is expected to be $6 million, compared to net income of $21 million in the prior-year period[5] - For the first quarter of 2025, the company reported a pre-tax loss of $270 million compared to a pre-tax income of $13 million in the same period of 2024[20] - Adjusted income before income taxes (non-GAAP) for Q1 2025 was $2 million, down from $29 million in Q1 2024, reflecting a significant decline[20] - The net loss for Q1 2025 was $363 million, compared to a net income of $8 million in Q1 2024[20] - Adjusted net loss income (non-GAAP) for Q1 2025 was $6 million, a decrease from $21 million in Q1 2024[20] - Diluted loss per share for Q1 2025 was $3.81, compared to diluted earnings per share of $0.09 in Q1 2024[20] - Adjusted diluted loss earnings per share (non-GAAP) for Q1 2025 was $(0.07), down from $0.22 in Q1 2024[20] Impairment Charges - Non-cash impairment charges totaling $276 million are expected, primarily related to a tradename and goodwill impairment[5] - The company recorded impairment charges of $140 million for the WSS tradename and $110 million for goodwill in Q1 2025 due to a decline in stock price and market capitalization[21] - A valuation allowance of $117 million was recorded on deferred tax assets related to net operating loss carryforwards in Q1 2025, indicating a reduced likelihood of utilizing these assets[22] Merger Agreement - Foot Locker and DICK'S Sporting Goods announced a merger agreement with an equity value of approximately $2.4 billion and an enterprise value of approximately $2.5 billion[6] - Shareholders will have the option to receive either $24.00 in cash or 0.1168 shares of DICK'S common stock for each share of Foot Locker common stock[6] - The transaction is subject to shareholder approval and is expected to close in the second half of 2025[7] Strategic Focus - The company is focusing on enhancing in-store experiences and digital offerings, including new mobile apps for Champs Sports and Kids Foot Locker[2] - The company closed all stores in South Korea, Denmark, Norway, and Sweden as part of its strategy to improve international operations[21] - The company reported a $5 million gain on the sale of its Greece and Romania businesses in Q1 2025[22] Reporting Schedule - Foot Locker plans to report full financial results for Q1 2025 on May 29, 2025, but will not hold a conference call due to the pending transaction[8]