Financial Data and Key Metrics Changes - Revenue for the fiscal 2026 third quarter grew 18% to $41.8 million from $35.4 million in the same quarter last year, driven by higher shipment volumes to major export markets, including the U.S. and a new customer in Korea [10][11] - Gross profit increased 31% to $7 million for the fiscal 2026 third quarter from $5.4 million in the same quarter last year, with gross profit margin improving to 16.9% from 15.2% [10][11] - Operating income nearly tripled to $1.9 million in the fiscal 2026 third quarter from $708,000 in the same quarter last year [11] - Net income rose to $1.2 million or $0.09 per diluted share for the fiscal 2026 third quarter from $6,000 or $0.00 per diluted share for the same quarter last year [11] Business Line Data and Key Metrics Changes - The company is expanding its manufacturing capacity by acquiring a 184,000 sq ft manufacturing building in Amman, Jordan, with an investment of approximately $5 million for renovations and equipment [4][5] - The new facility is expected to increase manufacturing capacity by at least 40% and employ up to approximately 2,500 workers [8][9] - The company is also pursuing additional facilities in rural towns to support growth objectives and local employment, which is expected to add an additional 5%-10% to total production capacity [9] Market Data and Key Metrics Changes - Buyers from major customers have submitted increased order projections for calendar year 2026, with facilities fully booked through July [9] - The company is recognized as one of the world's preferred manufacturing hubs, particularly in response to shifts in tariff policy [7] Company Strategy and Development Direction - The company plans to diversify its customer base and product mix to support stable year-round production and reduce seasonality impacts [5][10] - The long-term strategy aims to more than double current production capacities in the next five years while focusing on operational efficiency and cost control [10] - The company is working with the Jordan Ministry of Labor to develop additional facilities, enhancing local employment opportunities [9][23] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future prospects, expecting revenue for the fiscal 2026 fourth quarter to increase by 23%-26% over the same quarter last year [14] - The company is focused on cost controls and improving operating efficiency while implementing its long-term expansion strategy [14] - Management is closely monitoring the political situation in the region and has contingency plans in place to ensure stability in operations [43][45] Other Important Information - As of December 31, 2025, the company had cash and restricted cash totaling $13.2 million, with net working capital of $36.4 million [12] - A regular quarterly dividend of $0.05 per share was approved, payable on February 20, 2026 [13] Q&A Session Summary Question: How will the expansions impact the income statement and balance sheet? - The $5 million needed for renovations will be financed by the Housing Bank, showing up as long-term debt on the balance sheet [16][18] Question: Can you provide more detail on the other facilities being considered? - The company plans to set up two satellite factories in rural areas to create job opportunities and improve efficiency [22][23] Question: How quickly will the new capacity ramp up? - Renovations are expected to be completed by the end of 2026, with a gradual ramp-up of operations over 1-2 years [31] Question: What are the expectations for gross margins going forward? - Margins may decrease as the company returns to more complex styles, but efficiency improvements and new technology will help control costs [33] Question: What is the contingency plan regarding political instability in the region? - The company is monitoring the situation closely and has been assured that Jordan will remain stable [43][45] Question: What are the plans for cash on the balance sheet? - The company is utilizing cash for growth and working capital, with plans to consider other financing alternatives once a comfortable level is reached [46][48] Question: How is the relationship with major customers, particularly VF Corp? - There is pricing pressure due to tariffs, but the company maintains strong relationships by providing high-quality manufacturing [50][51]

Financial Data and Key Metrics Changes - Revenue for the fiscal 2026 third quarter grew 18% to $41.8 million from $35.4 million in the same quarter last year, driven by higher shipment volumes to major export markets, including the U.S. and a new customer in Korea [9][10] - Gross profit increased 31% to $7 million for the fiscal 2026 third quarter from $5.4 million in the same quarter last year, with gross profit margin improving to 16.9% from 15.2% [10] - Operating income nearly tripled to $1.9 million in the fiscal 2026 third quarter from $708,000 in the same quarter last year [10] - Net income rose to $1.2 million or $0.09 per diluted share for the fiscal 2026 third quarter from $6,000 or $0.00 per diluted share for the same quarter last year [10] Business Line Data and Key Metrics Changes - The company is expanding its manufacturing capacity by acquiring a 184,000 sq ft manufacturing building in Amman, Jordan, with an investment of approximately $5 million for renovations and equipment [4][5] - The new facility is expected to increase manufacturing capacity by at least 40% and employ up to approximately 2,500 workers [7][9] - The company is also developing additional facilities in two rural towns, expected to add an additional 5%-10% to total production capacity [8] Market Data and Key Metrics Changes - Buyers from major customers have submitted increased order projections for calendar year 2026, with facilities fully booked through July [8] - The company is recognized as one of the world's preferred manufacturing hubs, particularly in response to shifts in tariff policy [6][7] Company Strategy and Development Direction - The company aims to diversify its customer base and product mix to support stable year-round production and reduce seasonality impacts [5][9] - Long-term strategy includes more than doubling current production capacities in the next five years while focusing on operational efficiency and cost control [9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future prospects, expecting revenue for the fiscal 2026 fourth quarter to increase by 23%-26% over the same quarter last year [13] - The company is closely monitoring the political situation in the region and has contingency plans in place to ensure stability in operations [41][43] Other Important Information - The effective tax rate for the quarter was lower at 24%, attributed to higher income and adjustments for global operations [58][59] - The company plans to utilize cash more extensively for growth and working capital needs, while also considering debt financing for expansion [45] Q&A Session Summary Question: How will the expansions impact the income statement and balance sheet? - The $5 million needed for renovations will be financed by the Housing Bank, showing up as long-term debt on the balance sheet [15][16] Question: Can you provide details on the new facilities? - The new satellite factories will help create job opportunities in rural areas and are expected to improve overall efficiency [21][22] Question: How quickly will the new capacity ramp up? - Renovations are anticipated to be completed by the end of 2026, with a gradual ramp-up of operations [29] Question: What are the expectations for gross margins going forward? - Margins may decrease as the company returns to more complex styles, but efficiency improvements are expected to help maintain margins [30][31] Question: What is the contingency plan regarding political instability? - The company is monitoring the political situation closely and has been assured that Jordan will remain stable [41][42] Question: What are the plans for cash on the balance sheet? - The company plans to utilize cash for growth and working capital, while also considering debt financing for expansion [45] Question: How is the relationship with major customers like VF Corp? - There is pricing pressure from customers due to tariffs, but the company maintains strong relationships by providing high-quality manufacturing [47][48]

Financial Data and Key Metrics Changes - Revenue for Q3 2026 increased by 18% to $41.8 million from $35.4 million in the same quarter last year, driven by higher shipment volumes to major export markets, including the U.S. and a new customer in Korea [10] - Gross profit rose by 31% to $7 million from $5.4 million year-over-year, with gross profit margin improving to 16.9% from 15.2% due to a favorable product mix and economies of scale [10][11] - Operating income nearly tripled to $1.9 million from $708,000 in the same quarter last year, while net income increased to $1.2 million or $0.09 per diluted share from $6,000 or $0.00 per diluted share [11] - Cash and restricted cash totaled $13.2 million, with net working capital at $36.4 million as of December 31, 2025 [12] Business Line Data and Key Metrics Changes - The company is expanding its manufacturing capacity by acquiring a 184,000 sq ft facility in Amman, Jordan, with an investment of approximately $5 million for renovations and equipment [4][5] - The new facility is expected to increase manufacturing capacity by at least 40%, supporting growing demand from existing customers and new business opportunities [5][9] - The company is also developing additional facilities in rural towns, which are expected to add 5%-10% to total production capacity [9] Market Data and Key Metrics Changes - The company has seen increased order projections from major customers for calendar year 2026, with facilities fully booked through July [9] - Jordan is being recognized as a preferred manufacturing hub, with many global brands diversifying their manufacturing footprint to the region [6][9] Company Strategy and Development Direction - The long-term strategy aims to more than double current production capacities in the next five years while diversifying the customer base and product mix [10] - The company is focused on cost control and operational efficiency as it implements its expansion strategy [13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future prospects, expecting Q4 2026 revenue to increase by 23%-26% year-over-year, with gross margin targets of 14%-16% [13] - The company is closely monitoring the political situation in the region and has contingency plans in place to ensure stable operations [41][45] Other Important Information - The board of directors approved a regular quarterly dividend of $0.05 per share, payable on February 20, 2026 [12] - The effective tax rate for the quarter was lower at 24%, with projections for future rates between 25%-30% as the company engages in tax planning [62][64] Q&A Session Summary Question: How will the expansions impact the income statement and balance sheet? - The $5 million for renovations and equipment will be financed by the Housing Bank, showing up as long-term debt on the balance sheet [16][18] Question: Can you provide details on the new facilities being developed? - The new satellite factories will help create job opportunities in rural areas and are expected to improve overall efficiency [21][22] Question: How quickly can the new capacity be ramped up? - Renovations are expected to be completed by the end of 2026, with a ramp-up period of 1-2 years to fully utilize the new capacity [30] Question: What is the outlook for gross margins going forward? - Margins may decrease as the company returns to more complex styles, but efficiency improvements and new technology will help control costs [33] Question: What is the contingency plan regarding political instability in the region? - The company is monitoring the situation closely and has been assured that Jordan will remain stable, with efficient operations at key ports [41][45] Question: What are the plans for cash on the balance sheet? - The company is utilizing cash for growth and working capital, with plans to consider other financing alternatives once a comfortable level is reached [46][47] Question: How is the health of the largest customers affecting pricing? - There is pricing pressure due to tariffs, but the company maintains strong relationships with customers and is seen as a reliable manufacturer [50][51]

Core Viewpoint - VF Corp forecasts fourth-quarter revenue above analysts' estimates, but shares fell 7% due to concerns over the impact of tariffs on its business [1][3]. Group 1: Financial Performance - VF Corp reported third-quarter revenue of $2.88 billion, exceeding analysts' average estimate of $2.76 billion [5]. - The company posted adjusted earnings of 58 cents per share, surpassing the estimate of 45 cents [5]. - For the fourth quarter, VF Corp expects revenue to be flat to up 2%, while analysts anticipated a 2.6% decline [5]. Group 2: Impact of Tariffs - The company sources about 85% of its products for sale in the U.S. from Southeast Asia and Central and South America, and anticipates a profit hit of approximately $100 million in fiscal 2026 due to tariffs [2]. - CEO Bracken Darrell indicated that tariffs are "just starting to hit" the business, and the company is working on mitigating these impacts [3]. Group 3: Brand Performance - The North Face and Timberland brands experienced an 8% growth across the Americas, Europe, and Asia during the holiday quarter [3]. - The Vans unit reported an 8% decline in sales, and there are concerns about its turnaround, particularly in the U.S. market [4].

Courtney Reagan joins us with a look at the choices retailers need to make and the prices that we all might pay for this holidays. Hopefully they're going to be lower. Court >> see kind of depends on what you get.I mean since April 2nd trade deals of course you know been negotiated with lower rates for some countries though India tariffs are higher than initially announced. China remains in flux and then other types of tariffs like on upholstered furniture for example those have also been levied. So, while ...

Core Insights - The conversation focuses on the transition from generative AI to agentic AI, highlighting Salesforce's new offering, Agentforce, which aims to enhance customer and employee interactions through autonomous AI agents [2][3][4] - Salesforce has reported significant growth, achieving its first $10 billion quarter, with Agentforce being the fastest-growing product in its lineup [7][12] - The digital labor revolution is identified as a major opportunity, estimated to be worth between $3 trillion and $12 trillion, as companies begin to integrate digital workers alongside human employees [4][5][15] Company Developments - Salesforce has been involved in AI for over a decade, with its Einstein platform being a leading enterprise AI solution, processing approximately one trillion AI transactions weekly [3][4] - The company is not planning to hire additional software engineers this year, as existing engineers are becoming more productive with new AI tools [14] - Agentforce has seen rapid adoption, with 5,000 transactions reported in a recent quarter, including 3,000 paid transactions, indicating strong customer interest [7][12] Competitive Landscape - Salesforce differentiates itself from competitors like Microsoft by offering a more integrated and user-friendly approach to AI solutions, avoiding the complexities associated with Microsoft's Copilot [11][12] - The architecture of Salesforce's platform is emphasized as a key factor in its success, allowing for seamless integration of AI capabilities across various business functions [13][19] - The company has successfully integrated acquisitions like Slack and Tableau into its ecosystem, enhancing their value through the addition of agentic capabilities [20][22] Future Outlook - The CEO predicts a shift towards lower-cost infrastructure for AI deployment, as companies invest heavily in data centers [26][27] - The large language model (LLM) market is described as a commodity space, with ongoing competition driving innovation and cost reduction [27][29] - There is optimism about the future of artificial general intelligence (AGI), although its definition and timeline remain uncertain [30][31]