Financial Performance - Net sales for the thirteen weeks ended November 1, 2025, were $1,290,619, representing a 7% increase compared to $1,208,966 for the same period in 2024 [102]. - Comparable sales for the thirteen weeks increased by 3%, while the thirty-nine weeks saw a 4% increase compared to the previous year [104]. - Operating income for the thirteen weeks was $155,021, with an operating income margin of 12.0%, down from 14.8% in the prior year [102]. - Net income attributable to A&F for the thirteen weeks was $112,995, resulting in a net income per share of $2.36, compared to $2.50 in the same period last year [102]. - Net income for the thirteen weeks ended November 1, 2025, was $115,100, which is 8.9% of net sales, down from $133,864 or 11.1% for the same period in 2024 [151]. - Adjusted non-GAAP net income attributable to Abercrombie & Fitch for the year-to-date period of Fiscal 2025 was $306,046, representing 8.5% of net sales [125]. - Adjusted non-GAAP net income per diluted share for the thirty-nine weeks ended November 1, 2025, was $6.24, down 12.5% from $7.13 in the prior year [126]. - EBITDA for the thirteen weeks ended November 1, 2025, was $193.6 million, representing 15.0% of net sales, compared to $218.8 million or 18.1% of net sales in the same period of 2024 [127]. - Adjusted EBITDA for the thirty-nine weeks ended November 1, 2025, was $539,204, accounting for 15.0% of net sales, compared to $601,366 or 17.9% for the same period in 2024 [151]. Store Operations - The Company opened 48 new stores, remodeled 24 stores, and closed 10 stores through the end of the third fiscal quarter, with a plan for approximately 40 net store openings in Fiscal 2025 [96]. - The Company is focused on driving sales growth through marketing and store investments while pursuing new geographies via franchise, wholesale, and licensing partnerships [88]. Expenses and Costs - The Company expects to incur approximately $90 million of net tariff expense, or 170 basis points as a percent of net sales, negatively impacting operating profit in Fiscal 2025 [91]. - Cost of sales for the thirteen weeks was $483,670, representing 37.5% of net sales, an increase of 260 basis points from the previous year [108]. - Selling expenses for the thirteen weeks were $420,990, accounting for 35.6% of net sales, an increase of 80 basis points year-over-year [111]. - General and administrative expenses for the thirteen weeks ended November 1, 2025, were $188,246, a decrease of $5 million compared to the same period in 2024, with a percentage of net sales decreasing by 60 basis points to 15.0% [114]. - For the year-to-date period of Fiscal 2025, general and administrative expenses decreased by $12 million compared to the previous year, with a percentage of net sales decreasing by 140 basis points to 15.1% [115]. Cash Flow and Liquidity - Cash and equivalents decreased to $605,783 as of November 1, 2025, from $772,727 as of February 1, 2025 [102]. - For the thirty-nine weeks, net cash provided by operating activities was $313,000, down from $402,756 in the previous year [102]. - The company had cash and cash equivalents of $605.8 million and total liquidity of approximately $1.1 billion, down from $772.7 million and $1.2 billion at the beginning of Fiscal 2025 [131]. - The company expects primary cash requirements over the next twelve months to focus on investments in the business, including inventory acquisition and marketing [129]. Regional Performance - The Americas region saw a net sales increase of 7% for the thirteen weeks, with comparable sales growth of 4% [106]. - Operating income for the Americas region decreased by $16 million, or 360 basis points as a percentage of region net sales, compared to the third quarter of Fiscal 2024 [120]. - Operating income for the EMEA region decreased by $22 million, or 460 basis points as a percentage of region net sales, compared to the year-to-date period of Fiscal 2024 [120]. - Hollister brand net sales increased by 16% for the thirteen weeks, while Abercrombie brand sales decreased by 2% [107]. Tax and Interest - The effective tax rate for the thirteen weeks ended November 1, 2025, was 28.5%, compared to 28.8% for the same period in 2024 [123]. - Interest income, net for the thirteen weeks ended November 1, 2025, decreased by $2.8 million compared to the same period in 2024, primarily due to a reduction in interest income from time deposits and money market accounts [121]. Strategic Initiatives - The Company anticipates implementing new merchandising and human capital management systems in the first half of Fiscal 2026 as part of its multi-year ERP system transformation [88]. - The Company is implementing mitigation strategies to address the impact of tariffs, including evaluating supply chain changes and negotiating with vendors [91]. - The Company has a disciplined investment philosophy aimed at maintaining a durable balance sheet and consistent free cash flow [99]. - The Company continues to monitor global events and assess their potential impacts on business operations [94]. - The enactment of the One Big Beautiful Bill Act did not have a material impact on the Company's consolidated financial statements [98]. Foreign Currency and Risk Management - The company uses foreign currency exchange forward contracts to mitigate risks associated with foreign currency transactions and forecasted transactions [157]. - A hypothetical 10% devaluation of the U.S. dollar against foreign currencies could decrease the fair values of foreign currency exchange forward contracts by approximately $17.5 million [158]. - The company eliminated interest rate risk by redeeming all outstanding 8.75% Senior Secured Notes on July 15, 2024 [155]. - The impact of foreign currency exchange rates on net sales was neutral for the thirteen weeks ended November 1, 2025, with no significant changes reported [149]. Share Repurchase - The company repurchased approximately 4.5 million shares of its Common Stock for about $350 million during the year-to-date period ended November 1, 2025, with $950 million remaining under the $1.3 billion share repurchase program [133].

Company Segments - Cooper Companies operates through two segments: CooperVision, focusing on contact lenses, and CooperSurgical, specializing in fertility and women's health[21]. - CooperSurgical offers over 600 products and services, including medical devices for gynecology and obstetrics, and fertility products used in IVF processes[23][31]. Product Innovations - CooperVision's MiSight 1 day lens is the first FDA-approved product to slow myopia progression in children aged 8-12, with approvals in China and Japan expected in 2021 and 2025 respectively[22][30]. - CooperSurgical's Paragard IUD is a hormone-free contraceptive option available in the U.S., competing with hormonal IUDs and other birth control methods[36]. - CooperVision's Biofinity brand is its highest-grossing product, with a focus on silicone hydrogel lenses for various vision correction needs[26]. Research and Development - The company employs approximately 500 people in research and development, focusing on new contact lens designs and manufacturing technologies[44]. - CooperSurgical's research and development includes innovations in instruments, devices, and digital services to improve clinical outcomes[45]. - The company is committed to expanding its integrated solutions model in fertility and women's health through strategic transactions and product development[34]. Market Trends - The market for contact lenses is expanding, particularly in myopia management, with CooperVision investing in education to increase awareness among practitioners and families[29][30]. - CooperSurgical anticipates a shift towards group practices and corporate ownership in OB/GYN and fertility clinics, which may enhance supply chain control and vendor standardization[39]. - The contact lens industry is evolving with new distribution models and online services, which may conflict with CooperVision's strategy[145]. Regulatory Compliance - The majority of medical devices marketed by the company have received FDA clearance through the 510(k) process or approval through the PMA process[51]. - The company maintains ISO 13485 certification and CE marks for its products, which are necessary for marketing medical devices in the EU[61]. - Compliance with general safety and performance requirements is essential for obtaining CE marks, which are necessary for marketing in the EU[65]. - The company must undergo conformity assessments and audits by EU notified bodies to ensure compliance with the EU IVDR for current and future tests[69]. - The FDA's Cybersecurity requirements for medical devices include a comprehensive risk management plan and a Software Bill of Materials (SBOM) to support vulnerability tracking[58]. International Operations - The company derives approximately 50% of its net sales from international markets, indicating a strong reliance on foreign operations for growth[109]. - In Asia Pacific, regulatory approval processes for medical devices are complex and vary significantly by country, often requiring proof of home country approval prior to registration, which can delay product launches[73]. - The NMPA in China mandates physical testing and in-country clinical trials for medical device registrations, impacting the time to market[74]. Financial Risks - The company faces significant risks from current market conditions, including recessionary pressures that could adversely affect liquidity and financial condition[105]. - Inflationary pressures have led to increased costs, which may not be fully passed on to customers, impacting profitability[108]. - Pricing pressure from competitors and changes in third-party reimbursement could adversely affect demand for CooperSurgical products, impacting operating results[126]. Cybersecurity and IT Risks - Cybersecurity threats are increasing, with potential disruptions to information technology systems that could lead to significant financial and reputational harm[121]. - The company is in the process of implementing new ERP systems, which are costly and complex, potentially impacting financial reporting and commercial activities[123]. Employee and Workplace Culture - The company has implemented a Connection & Belonging strategy to foster an inclusive work environment, promoting diversity and innovation[98]. - The company emphasizes employee training and development, offering job-specific training and regular feedback to enhance workplace culture[100]. - The company is experiencing challenges in recruiting and retaining skilled personnel, which could disrupt operations[159]. Competition and Market Position - CooperVision operates in a highly competitive environment, facing significant competition from major players like Johnson & Johnson and Alcon, which may have greater resources[143]. - CooperSurgical competes in the family and women's health care market, focusing on technological and scientific advances, product quality, and customer service[146]. Regulatory Challenges - The evolving regulatory landscape in the EU and UK may significantly impact business operations and compliance costs[186]. - Changes in healthcare legislation, such as the ACA and recent EU regulations, could materially impact the company's revenue and operational costs[210][213]. - Compliance with evolving environmental, social, and governance (ESG) regulations may incur significant costs and affect the company's operations[156].

Financial Performance - ChargePoint had an accumulated deficit of $2,067.2 million as of October 31, 2025[163]. - The net loss for the nine months ended October 31, 2025, was $175.8 million, an improvement from a net loss of $218.3 million in the same period of 2024, indicating a 19.4% reduction in losses[235]. - For the nine months ended October 31, 2025, net cash used in operating activities was $(61.608) million, an improvement from $(144.265) million in 2024[233]. - For the nine months ended October 31, 2025, net cash used in operating activities was $61.6 million, compared to $144.3 million for the same period in 2024, representing a 57.3% decrease[234]. - Interest income decreased by 51.1% to $3.392 million for the nine months ended October 31, 2025, down from $6.930 million in 2024, primarily due to lower cash balances[209]. - Interest expense decreased by 5.1% to $21.346 million for the nine months ended October 31, 2025, compared to $22.486 million in 2024[211]. - Other income increased to $2.005 million for the nine months ended October 31, 2025, compared to a loss of $1.090 million in 2024, driven by favorable changes in foreign exchange rates[213]. - Non-cash charges for the nine months ended October 31, 2025, totaled $98.6 million, which included $51.5 million in stock-based compensation[234]. - Net cash used in investing activities was $3.4 million for the nine months ended October 31, 2025, down from $10.1 million in the same period of 2024, reflecting a 66.3% decrease[237]. - Net cash provided by financing activities increased to $18.1 million for the nine months ended October 31, 2025, compared to $16.4 million in the same period of 2024, marking a 10.4% increase[239]. Revenue Sources - ChargePoint's revenue is primarily generated from the sale of Networked Charging Systems, subscriptions to the ChargePoint Platform, and extended warranties, with revenue recognized ratably over the subscription period[161]. - ChargePoint's subscriptions revenue includes ChargePoint Platform software and CPaaS, recognized over time as services are delivered[179]. - ChargePoint's revenue from Networked Charging Systems includes AC and DC products, with revenue recognized upon shipment to customers[178]. - Networked Charging Systems revenue for the three months ended October 31, 2025, was $56,389,000, an increase of 7.1% compared to $52,662,000 for the same period in 2024[183]. - Subscriptions revenue for the three months ended October 31, 2025, was $42,004,000, reflecting a growth of 15.3% from $36,417,000 in the same period of 2024[184]. - Other revenue decreased by 30.9% to $7,281,000 for the three months ended October 31, 2025, down from $10,533,000 in the same period of 2024[185]. Expenses and Profitability - Gross profit for the three months ended October 31, 2025, was $32,486,000, representing a 42.6% increase from $22,786,000 in the same period of 2024[196]. - The gross margin for the three months ended October 31, 2025, improved to 30.7%, up from 22.9% in the same period of 2024[196]. - Research and development expenses decreased to $34,675,000 for the three months ended October 31, 2025, down 9.5% from $38,299,000 in the same period of 2024[199]. - Sales and marketing expenses for the three months ended October 31, 2025, were $24,500,000, a decrease of 29.4% compared to $34,678,000 in the same period of 2024[202]. - General and administrative expenses for the three months ended October 31, 2025, were $17,646,000, a slight decrease of 1.8% from $17,975,000 in the same period of 2024[206]. - General and administrative expenses increased by $15.0 million in non-recurring operating expenses and $3.9 million in other operating expenses for the nine months ended October 31, 2025, compared to the same period in 2024[207]. Market Position and Strategy - ChargePoint is a market leader in North America for commercial Level 2 AC charging and aims to expand its market share in EV charging solutions[172]. - The company targets three key verticals: commercial, fleet, and residential, focusing on various customer segments including retail, healthcare, and municipal fleets[162]. - ChargePoint expects long-term revenue growth in both Networked Charging Systems and subscriptions due to increased demand in the EV and charging infrastructure market[182]. - The company anticipates a decrease in research and development expenses as a percentage of revenue as it optimizes its activities[198]. Cash and Financing - As of October 31, 2025, ChargePoint had cash and cash equivalents of $180.9 million, down from $225.0 million as of January 31, 2025[219]. - ChargePoint expects to continue funding its operations primarily through equity and debt financing due to ongoing net losses and negative cash flows[228]. - The company anticipates that its cash on hand will satisfy its working capital and capital requirements for at least the next twelve months[219]. - ChargePoint entered into a new "at-the-market" sales agreement on September 8, 2025, allowing for the sale of up to $150 million in common stock[227]. - ChargePoint's 2028 Convertible Notes were amended in October 2023, increasing cash interest to 7.0% per annum and extending the maturity date to April 1, 2028[220]. Risks and Challenges - The company is subject to macroeconomic risks, including geopolitical events and inflation, which could impact customer behavior and demand for EV infrastructure[170]. - ChargePoint is exposed to foreign currency risks, particularly with revenue and operating expenses in euros, which may impact financial results as international operations expand[245]. - A hypothetical 10% decrease in foreign currencies against the U.S. dollar would not result in a material foreign currency loss on foreign-denominated balances as of October 31, 2025[246]. - ChargePoint does not currently hedge its foreign currency exchange risk but may consider doing so as international operations grow[247]. - The company has not entered into any off-balance sheet arrangements[240].

Financial Performance - For the three months ended November 1, 2025, the company reported revenue of $342.1 million, a year-over-year increase of 7.3%[79] - The net loss from continuing operations for the three months ended November 1, 2025, was $6.4 million, compared to a net loss of $6.3 million for the same period in the prior year[81] - Adjusted EBITDA for the three months ended November 1, 2025, was $13.4 million, slightly down from $13.5 million for the same period in the prior year[85] - Free Cash Flow for the three months ended November 1, 2025, was $5.6 million, down from $9.9 million for the same period in the prior year[86] - Revenue for the three months ended November 1, 2025, increased by $23.3 million, or 7.3%, compared to the same period in the prior year, primarily due to a 5.3% improvement in net revenue per active client[106] Client Metrics - The number of active clients decreased to approximately 2,307,000 as of November 1, 2025, representing a year-over-year decline of 5.2%[79] - Net revenue per active client increased to $559, reflecting a year-over-year increase of 5.3%[90] Expenses - Marketing expenses for the three months ended November 1, 2025, were $33.9 million, compared to $30.0 million for the same period in the prior year[94] - Cost of goods sold for the same period increased by 10.8% to $192.8 million, resulting in a gross margin decrease of 180 basis points to 43.6%[105][107] - Selling, general, and administrative expenses (SG&A) rose by $4.1 million to $157.9 million, with SG&A as a percentage of revenue decreasing to 46.2% from 48.2% year-over-year[108][109] Cash Flow and Liquidity - Cash provided by operating activities from continuing operations was $10.9 million, down from $14.3 million in the same period last year[118][120] - As of November 1, 2025, the company had $114.5 million in cash and cash equivalents and $129.7 million in investments[112] - The company entered into a $50.0 million revolving credit facility on December 4, 2023, with $31.3 million in excess availability as of November 1, 2025[113] - Cash used in investing activities was $5.7 million for the three months ended November 1, 2025, compared to $35.7 million in the prior year[121][122] Tax and Market Risk - The effective tax rate for the three months ended November 1, 2025, was (0.9)%, compared to (2.6)% for the same period in the prior year[110][111] - There were no material changes in market risk compared to the previous fiscal year[128] Strategic Focus - The company anticipates that macroeconomic uncertainty may negatively impact consumer discretionary spending in the remainder of fiscal 2026[91] - The company continues to focus on improving client retention and acquisition strategies to enhance overall client experience[80] - The company leverages AI and data science to optimize inventory management and enhance client engagement[92] Share Repurchase - The company repurchased 2,302,141 shares of Class A common stock for $30.0 million, with $120.0 million remaining under the share repurchase program[117]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Table of Contents For the quarterly period ended October 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-39504 SNOWFLAKE INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of ...

Sales Performance - Signet's total sales increased by 3.1% in Q3 Fiscal 2026 compared to the same period in Fiscal 2025, with same-store sales growth of 3.0%[123] - Total sales for the third quarter of Fiscal 2026 increased by 3.1% year over year to $1.39 billion, with same store sales rising by 3.0%[131] - Year-to-date sales increased by 2.7% to $4.47 billion, with same store sales up by 2.5%[137] - North America sales for the year-to-date were $4.18 billion, an increase of 2.4%, with same store sales also up by 2.4%[140] - International sales for the year-to-date increased by 4.8% to $258.9 million, with a 1.2% increase at constant exchange rates[141] Average Unit Retail (AUR) - Average unit retail (AUR) increased by 7.7% in North America and 3.0% in the International segment compared to Q3 Fiscal 2025, driven by a focus on lab-grown diamond fashion and higher gold prices[123] - The average unit retail (AUR) increased by approximately 7% in the third quarter compared to the prior year, driven by improved assortments in bridal and fashion categories[131] Strategic Initiatives - The Grow Brand Love strategy launched in Fiscal 2026 focuses on sustainable growth, product innovation, and brand loyalty, with three strategic imperatives identified[122] - The Company is strategically managing marketing spend to increase efficiency and capitalize on consumer demand during the holiday season[126] - The Company plans to continue focusing on organic growth and market share expansion in core areas such as Bridal, while optimizing its real estate footprint[176] Financial Performance - Gross margin for the third quarter was $518.8 million, representing 37.3% of sales, up from 36.0% in the prior year quarter[142] - Selling, general and administrative expenses (SG&A) were $485.3 million, or 34.9% of sales, nearly flat compared to 34.8% in the prior year[144] - Operating income for the third quarter was $23.9 million, or 1.7% of sales, compared to $9.2 million, or 0.7% of sales, in the prior year[147] - Adjusted operating income for Q3 was $32.0 million with an adjusted operating margin of 2.3%, compared to $16.2 million (1.2% margin) in the prior year[169] - Fiscal 2026 adjusted diluted EPS was $0.63, compared to $0.24 in Fiscal 2025, reflecting a significant increase of 162.5%[172] - Net income for the 39 weeks ended November 1, 2025, was $44.4 million, a turnaround from a net loss of $39.4 million in the prior year, representing an increase of $83.8 million[186] Cash Flow and Debt Management - The Company had $234.7 million in cash and cash equivalents as of November 1, 2025, with no outstanding borrowings on its asset-based revolving credit facility (ABL) which has a borrowing capacity of $1.2 billion[174] - Free cash flow for the 39 weeks ended November 1, 2025, was $(151.1) million, an improvement from $(304.2) million in the prior year[163] - The net cash used in operating activities was $58.0 million for the 39 weeks ended November 1, 2025, an improvement from $189.8 million in the prior year[185] - The adjusted leverage ratio was maintained at 1.1x through the end of Fiscal 2025, reflecting the retirement of all funded debt[179] - As of November 1, 2025, the Company had no outstanding debt and an available borrowing capacity of $1.2 billion under the ABL, compared to $253.0 million of debt outstanding in the prior year[193] - Net cash was $234.7 million as of November 1, 2025, a significant improvement from net debt of $95.3 million as of November 2, 2024[194] Store Operations - As of November 1, 2025, Signet operated 2,607 retail locations, including 2,262 in the US and 91 in Canada, alongside a digital presence[120] - The Company closed 46 stores and opened 11 stores during the 39 weeks ended November 1, 2025, resulting in a net decrease in selling square footage of 0.6% in North America and 2.7% internationally[188] Market Risks and Economic Factors - The Company continues to monitor macroeconomic factors, including inflation and geopolitical conflicts, which may affect operations and cash flows[128] - The Company is monitoring macroeconomic uncertainties, including tariffs and inflation, which could negatively impact merchandise costs and consumer spending, potentially affecting fair value estimates[200] - The Company uses derivative financial instruments to manage market risks related to foreign currency exchange rates, interest rates, and precious metal prices[202] - As of November 1, 2025, the Company's market risk profile has not materially changed since February 1, 2025, as disclosed in its Annual Report[205] Impairments and Restructuring - Asset impairments for the 39 weeks ended November 1, 2025, totaled $84.9 million, down from $169.3 million in the prior year[145] - The Company recorded restructuring and related charges of $26.1 million in Fiscal 2026, primarily due to its Grow Brand Love strategy initiatives[173] - Impairment charges of approximately $54 million, $13 million, and $3 million were recognized for Digital brands, James Allen, and Diamonds Direct trade names, respectively, due to declining cash flow projections[199]

Financial Performance - Net sales decreased from $1.51 billion to $1.46 billion, representing a period-over-period decrease of 3.1% and a comparable sales decrease of 2.2%[81] - Operating income increased to $29.2 million, compared to $4.0 million in the prior year period[81] - Net income attributable to Class A and B-1 common stockholders was $9.3 million, compared to a net loss of $16.7 million in the prior year period[81] - Adjusted EBITDA increased from $81.2 million to $98.6 million[81] - Gross profit margin improved to 38.9% for the thirteen weeks ended November 1, 2025, compared to 38.1% for the same period in 2024[85] - Selling, General and Administrative (SG&A) expenses as a percentage of net sales decreased to 36.9% for the thirteen weeks ended November 1, 2025, compared to 37.8% for the same period in 2024[86] - Comparable sales change was a decrease of 2.2% for the thirteen weeks ended November 1, 2025[82] - Services and other sales increased by 2.6% to $254.8 million for the thirteen weeks ended November 1, 2025[83] Cash Flow and Liquidity - Free Cash Flow improved to $70.6 million for the thirty-nine weeks ended November 1, 2025, compared to a negative $9.4 million for the same period in 2024[98] - Net cash provided by operating activities was $160.5 million for the thirty-nine weeks ended November 1, 2025, up from $81.7 million for the same period in 2024[104] - Liquidity as of November 1, 2025, was $732.9 million, including cash and cash equivalents of $237.4 million and $495.5 million available on the ABL Revolving Credit Facility[100] Debt and Interest - Interest expense decreased by $3.0 million, or 8.3%, to $32.8 million for the thirteen weeks ended November 1, 2025, compared to $35.8 million for the same period in 2024[87] - The company has a secured term loan facility maturing on March 4, 2028, and an ABL Revolving Credit Facility with availability of up to $581.0 million[108] - As of November 1, 2025, the company had $1,595.3 million outstanding under the First Lien Term Loan with no amounts outstanding under the ABL Revolving Credit Facility[117] - A 100 basis points increase in variable rates on the First Lien Term Loan and ABL Revolving Credit Facility would increase annual cash interest by approximately $16.2 million[117] Tax and Accounting - The effective tax rate for the thirteen weeks ended November 1, 2025, was (205.4)%, resulting in an income tax benefit of $6.3 million, compared to an effective tax rate of 4.9% and a benefit of $0.9 million for the same period in 2024[89] - There have been no material changes to critical accounting policies and estimates compared to the 2024 Form 10-K[113] - The company reviews accounting policies, assumptions, estimates, and judgments to ensure financial statements are presented fairly in accordance with GAAP[112] Market Risks - The company is subject to market risks primarily associated with interest rate fluctuations and changes in credit standing[116] - The company has entered into cash flow hedges to limit maximum interest rates on a portion of its variable-rate debt[117] - The company does not enter into forward currency contracts to hedge foreign currency exposure, and a hypothetical 10% change in foreign currency exchange rates would not materially affect operating results[120] - Future results may differ materially from estimated results due to adverse changes in interest rates or debt availability[118] - The company’s expenses are generally denominated in the currencies of the jurisdictions where it operates[120] - Substantially all cash and cash equivalents were maintained at major financial institutions in the U.S., with current deposits likely exceeding insured limits[119] Operational Changes - The sales decrease was primarily due to lower transaction volume and a lower pet care center count, alongside a focus on profitability and margin management[83] - Total pet care centers in the U.S. and Puerto Rico decreased to 1,389 at the end of the period, down from 1,413[82] - Other non-operating income was $0 for the thirteen and thirty-nine weeks ended November 1, 2025, compared to $8.5 million and $5.8 million for the same periods in 2024[88] - The company anticipates that current resources and cash flows will be sufficient to finance operations and capital investments for at least the next 12 months[101]

Financial Performance - Walmart accounted for 15.6% of consolidated gross sales less returns and allowances during fiscal 2025, with the top five customers representing approximately 38%[29] - The company reported a revenue of $1.5 billion for Q3 2023, representing a 15% year-over-year increase[217] - The company provided guidance for Q4 2023, expecting revenue to be between $1.6 billion and $1.8 billion, indicating a potential growth of 7% to 20%[217] - The gross margin for Q3 2023 was reported at 45%, a slight increase from 43% in Q2 2023[217] Debt and Assets - The Company's long-term debt had a fair value of $2.6 billion as of October 26, 2025, compared to $2.5 billion as of October 27, 2024[213] - The Company's net asset position in foreign currencies was $0.8 billion as of October 26, 2025, down from $1.2 billion as of October 27, 2024[214] - The balance of corporate-owned life insurance policies classified as trading securities totaled $219.2 million as of October 26, 2025, compared to $209.7 million as of October 27, 2024[215] Employee and Safety Metrics - Approximately 20% of the Company's employees were covered by collective bargaining agreements as of October 26, 2025[20] - The Company completed approximately 1,200 safety assessments each month during fiscal 2025[26] - As of October 26, 2025, approximately 50% of the Company's team members had five or more years of service[23] Innovation and R&D - The Company has thirteen U.S.-granted and six foreign-granted patents as of October 26, 2025[32] - Investment in R&D increased by 25% year-over-year, totaling $300 million, focusing on innovative technologies[217] - New product launch scheduled for Q1 2024, anticipated to contribute an additional $200 million in revenue[217] Market and Customer Metrics - User base grew to 10 million active users, a 20% increase compared to the previous quarter[217] - Customer retention rate improved to 85%, up from 80% in the previous quarter[217] - Market expansion efforts led to a 30% increase in sales in the Asia-Pacific region[217] - The company plans to enter the European market by mid-2024, targeting a revenue contribution of $100 million in the first year[217] Acquisitions and Investments - The company completed an acquisition of a tech startup for $500 million, expected to enhance product offerings[217] Commodity and Risk Management - The fair value of the Company's cash flow commodity contracts was $5.5 million as of October 26, 2025, compared to $(5.9) million as of October 27, 2024[212] - The Company employs hedging programs to manage commodity price risk, utilizing futures, swaps, and options contracts[212]

Acquisition and Financial Performance - The acquisition of Foot Locker was completed on September 8, 2025, for a total purchase consideration of $2.5 billion, with Foot Locker generating $8 billion in sales for fiscal 2024[86]. - Foot Locker Business reported net sales of $930.9 million and a net loss of $45.1 million for the third quarter of 2025, reflecting operations from the acquisition date[87]. - The company incurred $154.4 million in pre-tax acquisition-related costs, including $146.6 million in merger and integration costs[87]. - The acquisition of Foot Locker involved recording valuation allowances of approximately $288.5 million for deferred tax assets not likely to be realized[100]. - Corporate expenses included $138.5 million in merger and integration costs related to the Foot Locker acquisition[131]. - The acquisition of Foot Locker was completed for a total consideration of $2.5 billion, including $2.1 billion in share consideration[140]. Sales and Revenue Trends - Pro forma comparable sales for the Foot Locker Business decreased by 4.7% and 3.2% for the 13 and 39 weeks ended November 1, 2025, respectively, with international comparable sales declines of 10.2% and 9.9%[87]. - For Q4 2025, Foot Locker expects gross margin rates to decline by 1,000 to 1,500 basis points compared to the same period last year, with pro forma comparable sales projected to decrease mid to high single digits[92]. - Net sales increased by 36.3% to $4.17 billion in the current quarter, including $930.9 million from the Foot Locker Business, with a 5.7% increase in comparable sales for the DICK'S Business[104]. - Net sales for the 39 weeks increased 15.1% to $10,989.1 million, including $930.9 million from Foot Locker and a 5.0% increase in comparable sales for the DICK'S Business[117]. - DICK'S Business net sales increased 5.9% to $3,236.9 million for the current quarter, driven by a 5.7% increase in comparable sales[127]. Cost Management and Future Projections - Future actions to optimize the Foot Locker inventory and store portfolio are expected to incur estimated pre-tax charges of $500 million to $750 million, with anticipated cost synergies of $100 million to $125 million[88]. - The company anticipates selling, general and administrative expenses to deleverage in fiscal 2025 due to strategic investments in digital, in-store, and marketing initiatives[93]. - The DICK'S Business expects comparable sales growth for 2025 to be in the range of 3.5% to 4.0%, with earnings per diluted share projected between $14.25 and $14.55[91]. Market Conditions and Strategic Initiatives - The macroeconomic environment remains dynamic, influenced by elevated interest rates and inflationary pressures, which could impact consumer spending behavior[89]. - The company has transformed its business through strategic pillars, enhancing merchandise assortment and store experiences to drive sustained profitable growth[84]. - The company plans to continue investing in digital and in-store opportunities to grow market share and accelerate eCommerce channels[85]. - The company believes there is strength in the sports industry, with upcoming events like the 2026 World Cup and the 2028 Olympics expected to drive demand[85]. Operational Metrics and Cash Flow - Cash flow generation supports liquidity needs and capital expenditures, with lower operating cash flows typically experienced in the first and third fiscal quarters[96]. - Cash on hand as of November 1, 2025, was $0.8 billion, with access to a $2.0 billion Credit Facility[138]. - Net cash provided by operating activities decreased by $193.0 million to $487.3 million for the 39 weeks ended November 1, 2025, compared to $680.3 million in the prior year[154]. - Cash used in investing activities increased by $104.0 million to $661.3 million, driven by a $227.7 million increase in gross capital expenditures and $257.1 million cash acquired from the Foot Locker acquisition[155]. - The net decrease in cash and cash equivalents was $868.6 million for the 39 weeks ended November 1, 2025, compared to a decrease of $342.6 million in the prior year[153]. Profitability and Expenses - The company reported a net income of $75.2 million, or $0.86 per diluted share, which includes a $45.1 million net loss from the Foot Locker Business[104]. - Income from operations decreased to $93.1 million in the current quarter compared to $286.0 million for the same quarter last year[110]. - Gross profit increased to $1,380.9 million but decreased as a percentage of net sales by 264 basis points, primarily due to lower gross margin in the Foot Locker Business[111]. - Selling, general and administrative expenses increased 41.5% to $1,118.6 million, with a significant portion attributed to the Foot Locker Business since acquisition[112]. - Effective tax rate increased to 28.0% in the current quarter, impacted by losses in foreign jurisdictions and non-deductible acquisition-related costs[116].

Revenue Performance - For the three months ended October 31, 2025, consolidated revenue decreased by $4.8 million, or 1%, compared to the prior year, with Adjusted Revenue of $421.8 million[150][151]. - Revenue for the six months ended October 31, 2025 decreased by $11.9 million, or 1%, compared to the prior year, with a constant currency decrease of 2%[196]. - Adjusted Revenue for the six months ended October 31, 2025 was $818.6 million, consistent with the prior year, while US GAAP Revenue was $818.6 million, a decrease of 1%[197][200]. - 48% of Adjusted Revenue for the year ended April 30, 2025, was recurring revenue, indicating a stable revenue stream[144]. Segment Performance - Research revenue increased by $16.6 million, or 6%, to $278,514 million for the three months ended October 31, 2025, driven by growth in Research Publishing[185]. - Learning revenue decreased by $18.3 million, or 11%, to $143,237 million for the three months ended October 31, 2025, due to market-related softness[189]. - Research revenue increased by $33.0 million, or 6%, for the six months ended October 31, 2025, compared to the prior year[227]. - Learning revenue decreased by $27.5 million, or 10%, for the six months ended October 31, 2025, compared to the prior year[231]. Income and Earnings - Operating income for the same period increased by $8.9 million, or 14%, to $73.0 million, driven by lower operating and administrative expenses[155][164]. - US GAAP Income Before Taxes for the six months ended October 31, 2025, was $75.7 million, an increase from $71.9 million in 2024, representing a growth of 2.4%[221]. - Non-GAAP Adjusted Income Before Taxes increased to $113.2 million for the six months ended October 31, 2025, compared to $103.1 million in 2024, reflecting a growth of 9.8%[221]. - Diluted earnings per share increased to $0.84 for the three months ended October 31, 2025, compared to $0.74 in 2024, marking a 14% rise[182]. - Diluted Earnings per Share rose to $1.05 for the six months ended October 31, 2025, up from $0.71 in 2024, marking an increase of 48.6%[224]. Expenses and Cost Management - Operating and administrative expenses decreased by $13.8 million, or 6%, to $225.1 million, primarily due to restructuring and cost savings initiatives[154]. - Operating and administrative expenses decreased by $22.3 million, or 5%, to $465.4 million for the six months ended October 31, 2025[201]. - Interest expense decreased to $11.7 million for the three months ended October 31, 2025, down from $14.5 million in the prior year[169]. - Interest expense decreased to $22.7 million for the six months ended October 31, 2025, down from $27.3 million in the prior year[213]. Cash Flow and Financial Position - As of October 31, 2025, the company had cash and cash equivalents of $67.4 million, with approximately 95% located outside the US[239]. - The company reported approximately $871.7 million of debt outstanding as of October 31, 2025, with $423.5 million of unused borrowing capacity[241]. - For the six months ended October 31, 2025, net cash used in operating activities was $(76.5) million, an improvement from $(94.0) million in the prior year[243]. - Net cash provided by investing activities for the six months ended October 31, 2025 was $72.4 million, compared to net cash used of $(44.5) million in the prior year[252]. - Net cash used in financing activities was $(13.0) million for the six months ended October 31, 2025, a decrease from net cash provided of $113.1 million in the prior year[253]. Taxation - The US GAAP Effective Tax Rate increased to 22.6% for the three months ended October 31, 2025, compared to 17.3% in 2024, primarily due to a change in jurisdictional mix of earnings[178]. - The US GAAP Effective Tax Rate decreased to 25.3% for the six months ended October 31, 2025, down from 45.8% in 2024, mainly due to a change in jurisdictional mix of earnings[222]. Shareholder Returns - The company increased its quarterly dividend to shareholders to $1.42 per share annualized, up from $1.41 per share in the prior year[254]. - The company repurchased $35.1 million of shares during the six months ended October 31, 2025, compared to $25.0 million in the prior year[255]. Restructuring and Cost Savings - The Global Restructuring Program is expected to yield annualized cost savings of approximately $115 million, with about $110 million realized in fiscal year 2026[159]. - Adjusted EBITDA for the three months ended October 31, 2025, was $115.1 million, reflecting an 8% increase compared to the prior year[155][166]. - Adjusted EBITDA for the six months ended October 31, 2025 was $185.5 million, an increase of 4% compared to the prior year[210]. - Adjusted EBITDA for the Research segment increased by 14% to $93,280 million on a constant currency basis[187]. - Adjusted EBITDA for the Learning segment decreased by 14% to $57,435 million on a constant currency basis, primarily due to lower revenue[190][233]. Foreign Currency Impact - The company recorded foreign currency translation losses of approximately $(10.0) million for the six months ended October 31, 2025, primarily due to fluctuations in the US dollar relative to the British pound sterling[263].