Home Sales Performance - Home sales revenue decreased by 5.3% to $650.3 million for the three months ended April 30, 2025, compared to $686.9 million for the same period in 2024[118]. - The average price per home decreased by 5.5% to $506,081 for the three months ended April 30, 2025, down from $535,408 in the same period of 2024[126]. - Net contracts decreased by 7.5% for the three months ended April 30, 2025, primarily due to macroeconomic uncertainty affecting consumer confidence[122]. - Contract backlog decreased to 1,711 homes as of April 30, 2025, down from 2,018 homes a year earlier, representing a 12.5% decrease in dollar value to $988.2 million[124]. - The number of homes delivered increased by 0.2% to 1,285 for the three months ended April 30, 2025, compared to 1,283 in the same period of 2024[127]. - Sale of homes for the three months ended April 30, 2025, was $650.3 million, a decrease from $686.9 million in the same period of 2024[133]. Financial Performance - Income before income taxes decreased to $26.5 million for the three months ended April 30, 2025, compared to $69.4 million for the same period in 2024[121]. - Gross margin percentage decreased to 13.8% for the three months ended April 30, 2025, down from 19.5% in the same period of 2024[119]. - Selling, general and administrative expenses increased by $4.6 million to $51.1 million for the three months ended April 30, 2025[137]. - Income before income taxes in the Northeast for the three months ended April 30, 2025 was $31.4 million, a decrease of $0.3 million compared to the prior year[145]. - Income before income taxes in the Southeast decreased by $26.7 million to $0.4 million for the three months ended April 30, 2025[149]. - Income before income taxes in the West decreased by $16.7 million to $18.9 million for the three months ended April 30, 2025[153]. - Financial services income before income taxes increased to $8.4 million for the three months ended April 30, 2025, compared to $5.1 million in the prior year[157]. Inventory and Costs - Total inventory increased by $42.4 million to $1.5 billion at April 30, 2025, driven by new land purchases and development[181]. - Cost of sales, excluding interest expense and land charges, was $537.6 million for the three months ended April 30, 2025, compared to $531.4 million in 2024[133]. - The total cost of sales, excluding interest expense and land charges, was 82.7% for the three months ended April 30, 2025, compared to 77.4% in 2024[134]. - Construction costs represented approximately 50.2% of the homebuilding cost of sales for the six months ended April 30, 2025[191]. Market Conditions and Risks - The company continues to utilize quick move-in homes to address affordability challenges in the current market environment[114]. - The company continues to face risks related to rising construction costs and potential impacts on gross margins due to inflation and economic conditions[190]. - The annual inflation rate in the U.S. was 2.3% in April 2025, significantly lower than its peak of 9.1% in June 2022, which may impact home sale prices[190]. Liquidity and Financing - The company spent $467.4 million on land purchases and development during the six months ended April 30, 2025, while maintaining total liquidity of $202.4 million[117]. - Total liquidity at April 30, 2025 was $202.4 million, including $74.0 million in cash and $125.0 million of borrowing capacity[162]. - The company’s long-term debt as of April 30, 2025, totals $854.968 million, with a weighted average interest rate of 10.21%[198]. - Nonrecourse mortgage loans totaled $78.1 million at April 30, 2025, with a weighted-average interest rate of 8.2%[174]. - Senior notes and credit facilities net of discounts were $864.3 million as of April 30, 2025[168]. Joint Ventures and Share Repurchases - The company has 27 unconsolidated joint ventures with a total of 5,002 homes, indicating ongoing collaboration in homebuilding[184]. - The company repurchased 257,908 shares for a market value of $30.1 million at an average price of $116.70 per share during the six months ended April 30, 2025[178]. - The company had $30.6 million authorized for stock repurchases as of April 11, 2025[177]. Community and Sales Dynamics - As of April 30, 2025, the company has a total of 42,447 homes across 125 active selling communities, with 12,627 homes actively selling and 29,820 homes proposed[184]. - The number of active selling communities decreased from 130 on October 31, 2024, to 125 on April 30, 2025, reflecting a slight contraction in market presence[187]. - The total number of unsold homes increased from 1,106 on October 31, 2024, to 1,132 on April 30, 2025, indicating a decrease in sales pace during the second quarter of fiscal 2025[187]. Financial Services Performance - Financial services revenue increased by 24.2% to $21.3 million for the three months ended April 30, 2025, compared to $17.2 million for the same period in 2024[125]. - Financial services assets decreased by $42.0 million to $161.6 million as of April 30, 2025, primarily due to a reduction in the volume of loans originated[188]. - Financial services liabilities also decreased by $42.6 million to $140.6 million at April 30, 2025, correlating with the decrease in mortgage loans held for sale[189]. Impairments and Cancellations - Inventory impairments totaled $3.1 million for the three months ended April 30, 2025, compared to $0.2 million in the same period of 2024[136]. - Contract cancellation rate for the first quarter of 2025 was 16%, up from 14% in 2024[139].

Home Sales Performance - Home sales revenue decreased by 5.3% to $650.3 million for the three months ended April 30, 2025, compared to $686.9 million for the same period in 2024[118]. - The average price per home decreased by 5.5% to $506,081 for the three months ended April 30, 2025, down from $535,408 in the same period of 2024[126]. - Net contracts decreased by 7.5% for the three months ended April 30, 2025, primarily due to macroeconomic uncertainty affecting consumer confidence[122]. - Contract backlog decreased to 1,711 homes as of April 30, 2025, down from 2,018 homes a year earlier, representing a 12.5% decrease in dollar value to $988.2 million[124]. - Sale of homes for the three months ended April 30, 2025, was $650.3 million, a decrease from $686.9 million in the same period of 2024[133]. - Contract cancellation rate for the first quarter of 2025 was 16%, up from 14% in 2024[139]. Financial Performance - Income before income taxes decreased to $26.5 million for the three months ended April 30, 2025, compared to $69.4 million for the same period in 2024[121]. - Gross margin percentage decreased to 13.8% for the three months ended April 30, 2025, down from 19.5% in the same period of 2024[119]. - Homebuilding gross margin decreased to 13.8% and 14.5% for the three and six months ended April 30, 2025, compared to 19.5% and 18.9% for the same periods in 2024[134]. - Selling, general and administrative expenses increased by $4.6 million to $51.1 million for the three months ended April 30, 2025[137]. - Income from unconsolidated joint ventures decreased by $2.1 million to $9.0 million for the three months ended April 30, 2025, primarily due to losses from two joint ventures[160]. - Corporate general and administrative expenses decreased to $29.5 million for the three months ended April 30, 2025, down from $32.5 million for the same period in the prior year, mainly due to lower stock compensation expenses[158]. Operational Metrics - The number of homes delivered increased by 0.2% to 1,285 for the three months ended April 30, 2025, compared to 1,283 in the same period of 2024[127]. - Net contracts per active selling community decreased to 11.2 and 20.8 for the three and six months ended April 30, 2025, from 13.9 and 24.2 in the prior year[138]. - Total home sites available increased due to acquiring new land parcels, partially offset by home deliveries[183]. - As of April 30, 2025, the company has a consolidated total of 42,447 homes across 125 active selling communities, with 12,627 homes actively selling and 29,820 homes proposed[184]. - The total unsold homes increased from 1,106 on October 31, 2024, to 1,132 on April 30, 2025, reflecting a decrease in sales pace during the second quarter of fiscal 2025[187]. Regional Performance - Homebuilding revenue in the Northeast increased by 29.2% to $257.3 million for the three months ended April 30, 2025, driven by a 36.0% increase in homes delivered[144]. - Income before income taxes in the Northeast decreased slightly by 1.0% to $31.4 million for the three months ended April 30, 2025, primarily due to a $1.7 million increase in selling, general and administrative expenses[145]. - Homebuilding revenue in the Southeast decreased by 42.0% to $74.7 million for the three months ended April 30, 2025, attributed to a 37.8% decrease in homes delivered[148]. - Income before income taxes in the Southeast dropped significantly by 98.6% to $0.4 million for the three months ended April 30, 2025, due to decreased homebuilding revenue and a significant decrease in gross margin percentage[149]. - Homebuilding revenue in the West decreased by 8.0% to $332.4 million for the three months ended April 30, 2025, impacted by a 3.4% decrease in homes delivered[152]. - Income before income taxes in the West decreased by 46.8% to $18.9 million for the three months ended April 30, 2025, primarily due to decreased homebuilding revenue and increased selling, general and administrative expenses[153]. Liquidity and Investments - The company spent $467.4 million on land purchases and development during the six months ended April 30, 2025, while maintaining total liquidity of $202.4 million[117]. - Total liquidity as of April 30, 2025, was $202.4 million, including $74.0 million in cash and cash equivalents and $125.0 million of borrowing capacity under the senior secured revolving credit facility[162]. - Cash used in operations was $33.6 million after spending $467.4 million on land and land development in the first half of fiscal 2025[164]. - Investments in unconsolidated joint ventures increased by $40.6 million to $183.5 million as of April 30, 2025, compared to October 31, 2024[180]. - The company repurchased 257,908 shares for a market value of $30.1 million at an average price of $116.70 per share during the six months ended April 30, 2025[178]. Debt and Financing - Senior notes and credit facilities, net of discounts, totaled $864.3 million as of April 30, 2025, down from $896.2 million at October 31, 2024[168]. - The company has 400,000 in long-term debt maturing in 2028 and 430,000 maturing in 2029, with a total long-term debt of $854.968 million as of April 30, 2025[198]. - The weighted average interest rate on long-term fixed-rate debt is 10.21% as of April 30, 2025[198]. - Cash used in financing activities was $81.0 million during the first half of fiscal 2025, primarily due to the redemption of 13.5% Senior Notes[164]. Market Conditions - The annual inflation rate in the U.S. was 2.3% in April 2025, significantly lower than its peak of 9.1% in June 2022, impacting home sales prices[190]. - Construction costs represented approximately 50.2% of the homebuilding cost of sales for the six months ended April 30, 2025[191]. - The company continues to utilize quick move-in homes to address affordability challenges in the current market environment[114].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended April 30, 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 000-55654 NUTRIBAND INC. (Exact name of registrant as specified in its charter) | NEVADA | 81-1118176 | | --- | --- | | (State ...

Financial Performance - Total royalty income for the second quarter of fiscal 2025 was $2,471,301, representing a 10.7% increase compared to $2,232,767 in the second quarter of fiscal 2024[39] - Net income for the second quarter of fiscal 2025 was $2,261,006, an increase of 11.2% from $2,033,899 in the second quarter of fiscal 2024[39] - In the first six months of fiscal 2025, total royalty income increased to $2,976,298, up 12.0% from $2,657,677 in the first six months of fiscal 2024[49] - Trust interest income increased to $32,960 in the first six months of fiscal 2025 compared to $23,793 in the same period of fiscal 2024[53] Royalty and Gas Sales - Natural gas accounted for approximately 92% of the cumulative royalty income received in fiscal 2025[27] - Gas sales for the six months ended 3/31/2025 decreased by 6.1% to 6.062 Bcf compared to 6.459 Bcf in the previous period[52] - Gas sales from western Oldenburg accounted for 29.7% of total gas sales from the Oldenburg concession, contributing approximately 81.8% of all royalties attributable to gas sales[52] - The effective royalty rate on gas sold from western Oldenburg is approximately seven times higher than that from eastern Oldenburg, significantly impacting the Trust's royalty income[45] Expenses and Distributions - Trust expenses for the second quarter of fiscal 2025 increased by 6.7% to $229,519 from $215,201 in the second quarter of fiscal 2024[46] - Trust expenses for the first six months of fiscal 2025 decreased by 1.1%, or $5,002, to $463,484 from $468,486 in the same period of fiscal 2024[53] - The Trust's distribution per unit remained unchanged at $0.20 for the second quarter of fiscal 2025[39] Gas Prices - The average gas price under the Mobil Agreement increased by 10.8% to $14.11 per Mcf in the first calendar quarter of 2025[41] - Gas prices increased by 4.6% to 4.1894 Ecents/Kwh from 4.0068 Ecents/Kwh[52] - Gas prices ($/Mcf) increased by 3.2% to $12.73 from $12.33[52] - Gas prices ($/Mcf) for the OEG Agreement increased by 10.9% to $14.08 from $12.70[52] Future Outlook and Operations - EMPG indicated that it will not be drilling any wells during 2025, focusing instead on workovers and maintenance to manage production decline[55] - The Trust's forward-looking statements are subject to risks including depletion of assets and geopolitical uncertainties[57] Royalty Calculations - The Trust's independent accountants will commence their examination of royalty calculations for 2023 and 2024 in October 2025[28]

Financial Performance - GAAP diluted earnings per share were $2.27, an increase of 11.7% from $2.03 in the prior year, while adjusted diluted earnings per share decreased by 35.9% to $1.30[56] - Net sales for the quarter were $23.8 billion, a decrease of 2.8% compared to the same period last year, with comparable sales down 3.8%[61] - Operating income increased by 13.6% to $1.5 billion, benefiting from $593 million in pretax net gains related to interchange fee settlements[61] - Net earnings for the three months ended May 3, 2025, were $1,036 million, a 10.0% increase from $942 million for the same period in 2024[84] - EBIT increased to $1,498 million, reflecting a 13.0% growth compared to $1,325 million in the prior year[84] - EBITDA for the quarter was $2,285 million, up 11.9% from $2,043 million year-over-year[84] Margins and Returns - The gross margin rate was 28.2%, down from 28.8% in the prior year, reflecting higher markdown rates and increased supply chain costs[74] - The after-tax return on invested capital (ROIC) for the trailing twelve months was 15.1%, slightly down from 15.4% in the previous year[57] - After-tax return on invested capital was 15.1% for the trailing twelve months ended May 3, 2025, slightly down from 15.4% in the previous year[87] Cash Flow and Liquidity - Operating cash flows were $300 million for the three months ended May 3, 2025, down from $1,100 million in the same period last year[91] - Cash and cash equivalents stood at $2.9 billion as of May 3, 2025, compared to $3.6 billion a year earlier[90] - Dividends paid totaled $510 million ($1.12 per share) for the quarter, a 1.8% increase from $508 million ($1.10 per share) in the prior year[94] - The company repurchased shares worth $251 million during the three months ended May 3, 2025[95] Inventory and Sales Dynamics - Inventory as of May 3, 2025, was $13.0 billion, an increase from $12.7 billion in February 2025 and $11.7 billion in May 2024, attributed to lower-than-expected sales[92] - Comparable digitally-originated sales increased by 4.7%, while comparable stores-originated sales declined by 5.7%[61] Tax and Compliance - The effective income tax rate rose to 25.0% from 22.7% in the prior year, primarily due to discrete tax expenses related to share-based compensation[78] Store Operations and Strategy - The company opened 3 new stores, bringing the total store count to 1,981, up from 1,978 at the beginning of the quarter[75] - Target Circle Card penetration decreased to 17.4% from 18.0% year-over-year, indicating a slight decline in customer engagement with the loyalty program[70] - The company is actively monitoring the impact of tariffs and adjusting sourcing and pricing strategies to mitigate potential negative effects on sales[60] Debt Management - The company issued $1.0 billion of debt in March 2025 and repaid $1.5 billion in April 2025[98]

Financial Performance - Net sales for Q1 fiscal 2025 increased by $75 million, or 2%, compared to Q1 fiscal 2024, primarily driven by a 6% increase in online sales [81]. - Gross profit for Q1 fiscal 2025 was $1.45 billion, with a gross margin of 41.8%, up from $1.40 billion and 41.2% in Q1 fiscal 2024 [81]. - Operating income for Q1 fiscal 2025 rose to $260 million, compared to $205 million in Q1 fiscal 2024 [81]. - Net income for Q1 fiscal 2025 was $193 million, an increase from $158 million in Q1 fiscal 2024, with diluted earnings per share at $0.51 compared to $0.41 [81]. Inventory and Expenses - Merchandise inventory as of Q1 fiscal 2025 increased by 7% compared to Q1 fiscal 2024 [81]. - Operating expenses for Q1 fiscal 2025 were $1.19 billion, representing 34.3% of net sales, down from 35.2% in Q1 fiscal 2024 [94]. Tax and Cash Flow - The effective income tax rate for Q1 fiscal 2025 was 26.6%, up from 24.0% in Q1 fiscal 2024 [98]. - Net cash used for operating activities was $140 million in Q1 fiscal 2025, compared to $30 million of net cash provided in Q1 fiscal 2024 [102]. - Free cash flow for the 13 weeks ended May 3, 2025, was $(223) million, compared to $(63) million for the same period in 2024 [107]. Financing Activities - Net cash used for financing activities increased by $76 million in Q1 fiscal 2025, primarily due to $70 million in common stock repurchases [103]. - The company paid a dividend of $0.165 per share in the first quarter of fiscal 2025 and authorized the same amount for the second quarter [108]. Capital Expenditures - Purchases of property and equipment amounted to $(83) million for the 13 weeks ended May 3, 2025, compared to $(93) million in 2024 [107]. Other Considerations - There have been no material changes to contractual obligations and commercial commitments since the last annual report [110]. - No significant changes to critical accounting policies and estimates have occurred since the last annual report [111]. - The market risk profile as of February 1, 2025, has not significantly changed [112].

Financial Performance - Net sales for Q1 fiscal 2025 increased by $75 million, or 2%, compared to Q1 fiscal 2024, primarily driven by a 6% increase in online sales [81]. - Gross profit for Q1 fiscal 2025 was $1.45 billion, with a gross margin of 41.8%, up from $1.40 billion and 41.2% in Q1 fiscal 2024 [81]. - Operating income for Q1 fiscal 2025 rose to $260 million, compared to $205 million in Q1 fiscal 2024 [81]. - Net income for Q1 fiscal 2025 was $193 million, an increase from $158 million in Q1 fiscal 2024, with diluted earnings per share at $0.51 compared to $0.41 [81]. Inventory and Expenses - Merchandise inventory as of Q1 fiscal 2025 increased by 7% compared to Q1 fiscal 2024 [81]. - Operating expenses for Q1 fiscal 2025 were $1.19 billion, representing 34.3% of net sales, down from 35.2% in Q1 fiscal 2024 [94]. Tax and Cash Flow - The effective income tax rate for Q1 fiscal 2025 was 26.6%, up from 24.0% in Q1 fiscal 2024 [98]. - Net cash used for operating activities was $140 million in Q1 fiscal 2025, compared to $30 million provided in Q1 fiscal 2024 [102]. - Free cash flow for the 13 weeks ended May 3, 2025, was $(223) million, compared to $(63) million for the same period in 2024 [107]. - Net cash used for operating activities was $(140) million for the 13 weeks ended May 3, 2025, compared to $30 million for the same period in 2024 [107]. - Purchases of property and equipment amounted to $(83) million for the 13 weeks ended May 3, 2025, compared to $(93) million for the same period in 2024 [107]. Company Operations - The company operated a total of 2,496 company-operated stores as of May 3, 2025, a decrease of 10 stores from the previous year [89]. - The company paid a dividend of $0.165 per share in the first quarter of fiscal 2025 and authorized the same amount for the second quarter [108]. Risk and Compliance - There have been no material changes to contractual obligations and commercial commitments since the last annual report [110]. - No significant changes to critical accounting policies and estimates have occurred since the last annual report [111]. - The market risk profile as of February 1, 2025, has not significantly changed [112].

Financial Performance - Kyndryl achieved $15.1 billion in revenue for fiscal year 2025, ending March 31, 2025[18]. - For the fiscal year ended March 31, 2025, the company reported revenue of $15.1 billion, a decline of 6% compared to $16.1 billion in the previous year[154]. - Net income for the fiscal year 2025 was $252 million, an improvement of $592 million from a net loss of $340 million in fiscal year 2024[155]. - The company’s adjusted EBITDA for fiscal year 2025 was $2.516 billion, up from $2.367 billion in fiscal year 2024[150]. - Revenue from the United States declined by 10%, while Japan saw a 1% increase, Principal Markets revenue decreased by 5%, and Strategic Markets revenue fell by 8% compared to the previous year[155]. - Total assets were $10.452 billion, while total liabilities stood at $9.121 billion, resulting in equity of $1.331 billion[151]. - For the year ended March 31, 2025, total revenue decreased to $15,057 million, a decline of 6% compared to $16,052 million in 2024[159]. - Adjusted EBITDA for the year ended March 31, 2025, increased to $2,516 million, reflecting a 6% increase from $2,367 million in 2024[159]. - Net cash provided by operating activities increased to $942 million in 2025 from $454 million in 2024, primarily due to higher earnings[198]. - Total liabilities decreased by $347 million to $9.1 billion as of March 31, 2025, primarily due to a reduction in operating lease liabilities[195]. - Total equity increased by $209 million to $1.3 billion as of March 31, 2025, mainly due to net income in the period[196]. Market Position and Strategy - The company focuses on driving revenue growth with sustainable margins while investing in high-value, next-generation services[18]. - Kyndryl operates in over 60 countries, providing mission-critical enterprise technology services to thousands of customers[13]. - The market for Kyndryl's services is driven by digital transformation, cloud migration, and increasing data complexity[22][23]. - Kyndryl's services include cloud services, core enterprise services, application and data services, digital workplace services, security and resiliency services, and network and edge services[25]. - The company has established strategic relationships with major technology providers like Amazon Web Services, Google Cloud, and Microsoft since its spin-off[32]. - Kyndryl's competitive strengths include its intellectual property, mission-critical expertise, and a broad ecosystem of technology partners[29][32]. - The company aims to help customers realize the full value of their digital transformations by providing tailored technology solutions[33]. - The company is leveraging partnerships with key hyperscale cloud providers to expand its cloud-related capabilities and maintain tens of thousands of certifications[40]. - The company is focused on expanding its customer base and enhancing existing relationships through its three-A initiatives: Alliances, Advanced Delivery, and Accounts[37]. Workforce and Talent Management - The company has approximately 73,000 employees across more than 60 countries, with 90% working outside the U.S.[58]. - The company is committed to ongoing training and upskilling of its workforce to support technological change and customer needs[61]. - Attracting and retaining key personnel is crucial, as losing key employees could lead to productivity losses and hiring challenges[88]. - The company is committed to fostering employee engagement and building a strong culture to enhance retention and performance[66]. - The company faces intense competition for skilled employees, particularly in AI, machine learning, and software engineering, which could impact its growth strategy[89]. - The company must manage its workforce effectively to avoid negative impacts on employee engagement and retention amid changing skill demands[89]. Risks and Challenges - The company faces risks in maintaining revenue growth due to challenges in attracting new customers and retaining existing ones[76]. - Significant investments in strategic areas are necessary for long-term revenue growth, but these may adversely affect near-term results[77]. - Competition in the market may lead to decreased revenue and pressure on operating margins, particularly for contract renewals[82]. - Economic and geopolitical conditions, including inflation and currency fluctuations, could adversely affect the company's operations and customer demand[90]. - The company may experience disruptions in transactional performance as customers prioritize operational stability and cash preservation amid macroeconomic challenges[90]. - The company is at risk of service delivery issues that could lead to penalties or service credits, adversely affecting customer satisfaction and financial results[93]. - Cybersecurity threats are increasing in sophistication, posing risks to the company's technology infrastructure and potentially leading to significant financial losses[100]. - The company may incur substantial costs in responding to cybersecurity incidents, which could impact its operations and reputation[101]. - The company faces increasing compliance costs and risks due to complex global regulations related to cybersecurity, data governance, and privacy[102]. - The evolving legal landscape may impose significant costs and operational changes, potentially affecting the company's ability to offer certain services[105]. - Legal proceedings and investigatory risks may arise from the company's global operations, potentially leading to significant liabilities[108]. - Environmental regulations could result in cleanup costs and fines, negatively impacting the company's reputation and demand for its products[110]. - The company is exposed to currency risk, which can adversely affect revenue and business operations due to fluctuations in foreign exchange rates[117]. - Changes in market liquidity conditions and customer credit risk could negatively impact the company's financial performance and access to capital[115]. - The company's pension plans may be adversely affected by financial market conditions, impacting future estimated pension liabilities[116]. Corporate Governance and Financial Policies - The company has not paid cash dividends on its common stock since its separation from IBM, with future dividends dependent on various factors[139]. - A share repurchase program of up to $300 million was authorized in November 2024, with $94 million spent to repurchase 2.6 million shares during the year ended March 31, 2025[141]. - The company is in compliance with its debt covenants, maintaining a ratio of indebtedness for borrowed money to consolidated EBITDA of no greater than 3.50 to 1.00[208]. - Provisions in the company's governance documents may discourage takeovers and limit stockholder power, potentially affecting acquisition opportunities[118].

Financial Performance - Net sales increased by 5% to $13.1 billion for the first quarter of fiscal 2026, compared to $12.5 billion in the same period last year[86]. - Consolidated comparable sales (comp sales) rose by 3% for the first quarter of fiscal 2026, consistent with the previous year's growth[88]. - Diluted earnings per share for the first quarter of fiscal 2026 were $0.92, a slight decrease from $0.93 in the first quarter of fiscal 2025[106]. - The pre-tax profit margin decreased to 10.3% in the first quarter of fiscal 2026, down from 11.1% in the same quarter last year[86]. - Cost of sales, including buying and occupancy costs, increased to 70.5% of net sales, up from 70.0% in the first quarter of fiscal 2025[101]. - Selling, general and administrative (SG&A) expenses as a percentage of net sales rose to 19.4%, compared to 19.2% in the prior year[102]. Inventory and Capital Management - Average per store inventories increased by 7% at the end of the first quarter of fiscal 2026 compared to the same period last year[86]. - The company returned $1 billion to shareholders through share repurchases and dividends during the first quarter of fiscal 2026[86]. - Capital expenditures for the first three months of fiscal 2026 are anticipated to be approximately $2.1 billion to $2.2 billion, focusing on store improvements and new store investments[134]. Segment Performance - Segment profit for the Marmaxx segment increased to $1.107 billion, with a segment profit margin of 13.7% for the first quarter of fiscal 2026[111]. - Marmaxx net sales for Q1 fiscal 2026 were $8.1 billion, a 4% increase from $7.8 billion in Q1 fiscal 2025, driven by a 2% increase in comp sales and a 2% increase in non-comp sales[112][113]. - HomeGoods net sales for Q1 fiscal 2026 were $2.3 billion, an 8% increase from $2.1 billion in Q1 fiscal 2025, with comp sales also increasing by 4%[117]. - TJX Canada net sales for Q1 fiscal 2026 were $1.1 billion, a 3% increase from the previous year, with comp sales up by 5%[120]. - TJX International net sales for Q1 fiscal 2026 were $1.7 billion, an 8% increase from $1.5 billion in Q1 fiscal 2025, with comp sales increasing by 5%[124]. Profit Margins by Segment - Segment profit margin for Marmaxx decreased to 13.7% in Q1 fiscal 2026 from 14.2% in the same period last year, primarily due to expense deleverage[114]. - HomeGoods segment profit margin increased to 10.2% in Q1 fiscal 2026 from 9.5% in the same period last year, driven by lower supply chain costs[118]. - TJX Canada segment profit margin decreased to 10.7% in Q1 fiscal 2026 from 12.3% in the same period last year, impacted by lower merchandise margin[121]. - TJX International segment profit margin increased to 4.3% in Q1 fiscal 2026 from 4.0% in the same period last year, due to lower administrative costs[126]. Corporate Expenses and Risk Management - General corporate expenses increased to $215 million in Q1 fiscal 2026 from $153 million in Q1 fiscal 2025, primarily due to unfavorable mark-to-market adjustments[127][128]. - There have been no material changes in the company's primary risk exposures or management of market risks from those disclosed in the Annual Report on Form 10-K for the fiscal year ended February 1, 2025[141].

Financial Performance - The company reported a loss after tax of $79.2 million in FY23, compared to a loss of $47.8 million in FY22, largely due to higher finance and capital raising costs[832]. - Net cash used in operating activities increased to $52.5 million from $46.0 million, with customer receipts rising by $12.1 million and government grants by $11.7 million[807]. - The Group projects to raise approximately US$27.5 million (A$42.3 million) through the partial use of its US$60 million (A$92.3 million) Capital Equity Facility (CEF) over the next 12 months[905]. - The Company projects net cash outflows from operating activities of approximately US$70.5 million, with net cash inflows from financing activities of US$33 million[871]. - The Group has deferred total payments of $8.9 million to suppliers, with payments required to be made in November 2023[909]. - The Company is not yet profitable and does not expect to generate positive net operating cash flows in the next 12 months[912]. - A material uncertainty exists regarding the Group's ability to continue as a going concern, which may affect asset realizability and liability discharge[913]. Debt and Financing - The total amount borrowed under the New Debt Program is US$60 million (A$90.1 million), with US$13.1 million deducted for costs and US$9.9 million used to repay previous lenders[821]. - Adjusted debt increased by $50.1 million to $50.4 million in FY23, primarily due to the New Debt Program[835]. - The New Debt Program includes financial covenants requiring minimum cash available and EBITDA thresholds, with potential breaches forecasted for February 2024 and August 2024[882]. - Carbon Revolution entered into a New Debt Program with a term loan of USD 60 million (AUD 90.1 million) at an interest rate of 8.5%[928]. - Principal repayments for the new loan will commence in December 2024, with monthly repayments of USD 2 million[928]. - The company has incurred costs of USD 20.6 million related to the establishment of the term loan, which are being amortized over the loan term[935]. Operational Developments - The first phase of the Mega-line was commissioned and is producing customer wheels, with production rates steadily increasing[819]. - The company has thirteen active awarded programs with five global OEMs, with six currently in production and seven in development[824]. - The company aims to reduce cash burn by minimizing operating and capital expenditure while expanding production capacity[837]. - The Company plans to launch new programs, including wheels for JLR Range Rover Sport SV and Ford Mustang Dark Horse, while raising sufficient funds to support growth[852]. - The company anticipates strong demand for its wheels and expects production rates to rise as global automotive supply chain issues are resolved[829]. - The Company expects to reduce the direct cost per wheel from $2,658 in FY23 to approximately $1,500 in the long term due to the operational Mega-line expected in 2025[924]. - The Company is subject to various testing and validation procedures for its wheel products, developed in conjunction with customers[874]. Investment and Shareholder Information - The Company entered into OIC Documents with OIC Investors, resulting in initial gross proceeds of US$35 million (A$54.7 million) from the issuance of Preferred Shares and OIC Warrant[846]. - An additional US$35 million (A$54.7 million) is available in escrow, with up to US$40 million (A$62.5 million) in aggregate proceeds contingent on further conditions for future manufacturing facility development[846]. - The OIC Warrant allows OIC to purchase up to 543,918 Ordinary Shares at an exercise price of US$0.01 per share[846]. - The Preferred Shares carry a fixed dividend rate of 12% per annum, payable quarterly in cash or additional shares at the Company's discretion[876]. - The Company has allocated US$15.5 million (A$23.2 million) into reserve funds, with specific amounts scheduled for release based on conditions met[856]. - The Company has issued US$35 million (A$54.7 million) of Preferred Shares to OIC, with US$35 million (A$54.7 million) in gross proceeds received[892]. Market and Risk Factors - Carbon Revolution's exposure to foreign currency risk is primarily related to its USD-denominated term loan and sales from new wheel programs scheduled to commence production in H2 2024[633]. - The Group's ability to raise further capital is subject to consent from OIC, which may restrict the Company's business activities[898]. - Management is seeking an extension of time to complete a project under a government grant agreement due to delays in compliance with expenditure requirements[934]. - The company actively reviews its funding position to ensure adequate facilities are maintained for current and anticipated needs[639]. - The company has a compound annual growth rate of 14.8% for wheel volume[934].