Financial Data and Key Metrics Changes - The company experienced a challenging year in 2025, with mixed performance across its portfolio, particularly impacted by tariffs and macroeconomic conditions [12][14] - Capital expenditures were significantly high due to the construction of a new distribution center, leading to increased debt levels of $132 million [12][14] - The customer retention rate stood at 62%, indicating strong loyalty among customers [11] Business Line Data and Key Metrics Changes - Tommy Bahama, the largest brand, faced softness in key markets, while Lilly Pulitzer and emerging brands showed strong performance, with the latter growing 17% in the third quarter [12][10] - Johnny Was, an acquisition that has not performed well, is undergoing a turnaround plan with new leadership and a focus on artisanal details [10][29] Market Data and Key Metrics Changes - The company reported that it reduced its reliance on China from 40% to about 10% in sourcing, demonstrating resilience in navigating tariff challenges [21] - The overall market environment remains challenging, but there are signs of optimism with GDP growth and favorable consumer conditions expected in 2026 [19] Company Strategy and Development Direction - The company is focusing on cost reduction initiatives, including indirect spending and SG&A expense reductions, to improve profitability [14][18] - There is a strategic emphasis on leveraging successful practices from Lilly Pulitzer across other brands, particularly in merchandising and customer engagement [25] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2026, citing internal initiatives and a potentially improving macroeconomic environment [19][30] - The company plans to deliver guidance in March, indicating a proactive approach to future performance [30] Other Important Information - The company has revamped its website to enhance user experience and information accessibility [3] - The holiday season performance is critical, with expectations to be at the low end of guidance due to previous challenges [13] Q&A Session Summary Question: How is the business positioned for recovery after challenging years? - Management highlighted strong performances from Lilly Pulitzer and emerging brands, aiming to replicate their success across the portfolio through better merchandising and cost management [17] Question: What is the impact of tariffs on sourcing and product assortment? - The company faced significant challenges due to tariffs, particularly during peak buying periods, but has since optimized its sourcing structure to reduce reliance on high-tariff regions [22][23] Question: What are the plans for Johnny Was moving forward? - The focus will be on stabilizing the brand by emphasizing its unique artisanal details and correcting the product line to better align with market demands [29]

Group 1 - Honeywell International Inc. is recognized as one of the 12 Best DOW Stocks to Buy in 2026 [1] - Mizuho analyst Brett Linzey has lowered Honeywell's price target to $240 from $250 while maintaining an Outperform rating, citing an uneven industry backdrop [2] - Mizuho notes that the "tariff fog" is beginning to lift, indicating potential improvements in the industry environment [3] Group 2 - Honeywell has entered an agreement with Technip Energies to provide integrated LNG pretreatment and liquefaction solutions for Commonwealth LNG's export facility in Louisiana [3] - The project will utilize Honeywell's single-mixed refrigerant liquefaction technology and six modularized coil-wound heat exchangers, aiming to produce approximately 9.5 million tonnes of LNG annually [4] - Honeywell's heat exchangers are designed to enhance efficiency, safety, and reliability while allowing high gas throughput in a compact footprint [4] Group 3 - Honeywell is a diversified industrial company serving various industries and regions, supported by the Honeywell Accelerator operating system and the Honeywell Forge platform [5]

Economic Outlook - Tax cuts are expected to provide a boost to growth in the new year, but inflation and labor market risks remain concerns [1] - There are tailwinds for demand from consumer tax policies and a corporate investment boom, but a disconnect between GDP and job growth is anticipated [2] - Productivity growth in the third quarter was significant, but labor input remained flat, raising questions about sustainability [3] Consumer Spending and Income - Growth in real disposable income was reported as zero, which may hinder consumer spending moving into the fourth quarter and next year [4] - A strong second half of 2026 is anticipated due to cash influx from tax refunds into households and struggling small businesses [4] Inflation Trends - Current inflation readings are closer to 3% rather than the targeted 2%, attributed to tariff and goods inflation issues [5][6] - Forecasts suggest a slower decline in inflation rates than previously expected, with potential delays in tariff impacts [7] - The direction of inflation is expected to trend lower, but concerns about real income growth and unemployment may shift focus for the Federal Reserve [8] Fiscal Policy and Economic Stability - The Federal Reserve may need to consider long-term fiscal stability due to significant budget deficits, which are currently at 6% of GDP at full employment [9] - There is a looming concern regarding bankruptcy in social security and the need for reform in entitlement programs [9] - The economic outlook for spring is predicted to be challenging, with a potential stagflation scenario emerging early in the year [11][12]

Core Insights - Hardman Johnston Global Advisors reported underperformance in its portfolio for Q3 2025, with a return of 5.02% net of fees, compared to 7.62% for the MSCI AC World Net Index [1] Company Overview - Boston Scientific Corporation (NYSE:BSX) is highlighted as a key stock in the investor letter, operating in the MedSurg and Cardiovascular segments of the medical device industry [2] - As of December 24, 2025, Boston Scientific's stock closed at $96.13 per share, with a market capitalization of $142.51 billion [2] Performance Analysis - Boston Scientific experienced a one-month return of -4.78% but gained 5.56% over the last 52 weeks [2] - The company was identified as a significant driver of underperformance within the healthcare sector, alongside Vertex Pharmaceuticals [3] Market Context - The Trump administration's Section 232 tariff investigation into medical devices has increased macroeconomic uncertainty, but Boston Scientific is well-positioned to manage potential tariffs due to its diverse supply chain and increased U.S. manufacturing footprint post-COVID [3] - The company has strong pricing power and has largely mitigated tariff impacts thus far [3] - The market is witnessing a rotation from medical devices to pharmaceuticals/biotech, influenced by recent deals such as the one between Pfizer and the Trump administration [3] Growth Prospects - Boston Scientific's diversified growth profile across various franchises, including cardiology, electrophysiology, endoscopy, and urology, supports a favorable outlook [3] - The introduction of Farapulse, a pulsed-field ablation technology, is expected to drive significant growth in the electrophysiology segment [3] - Management has set new long-term targets of 10% organic revenue growth, 50 basis points of annual margin expansion, and double-digit EPS growth through 2028, with a strong track record of exceeding previous targets [3]

For more on what this all means for the markets, let's bring in UBS Global Wealth Senior Portfolio Manager, Alan Rex Shaffen. Alan, thank you for being here. Um, what do you make of Kevin Hassid's comments there.>> You know, I I think it's Leslie, thank you for having me on, Carl. Thank you. Um, what you saw in 2025 was a period of fog and uncertainty.And I think what you heard from from Kevin Hasset and what you're seeing in the administration that 2026 is going to be a time of clarity, of normalization, a ...

Core Viewpoint - The price has increased by over 20% since early July, following President Donald Trump's suggestion of a 50% tariff [1] Group 1 - The price increase is attributed to the potential implementation of a significant tariff [1]

Group 1 - Clearwater Analytics is being taken private, indicating a significant shift in its corporate structure and potential for future growth opportunities [1] - Disney's latest Avatar film has topped the box office, reflecting strong consumer interest and potential revenue generation for the company [1]

Group 1: Market Volatility and Reactions - The year 2025 has been marked by significant market volatility, heavily influenced by presidential announcements, particularly from Donald Trump, leading to rapid fluctuations in market values [1] - Following the announcement of a 10% universal tariff on all US imports, the S&P 500 dropped over 10%, erasing approximately $5 trillion from global markets [5] - A subsequent 90-day pause on new reciprocal tariffs resulted in a market rebound, with the S&P 500 surging 9.52% [5][6] Group 2: Trump Media & Technology Group (DJT) - Trump Media & Technology Group (DJT) saw its stock surge 13.03% after announcing a merger with TAE Technologies, a nuclear fusion company, indicating a pivot from social media to energy [3] - DJT stock closed at $16.80 before the merger announcement, marking a significant rise, and trading volume reached 99.5 million shares, 1,265% above its three-month average [3] - Despite the recent surge, DJT stock remains down 58% over the past year, highlighting ongoing volatility [3] Group 3: Pharmaceutical Industry Developments - Trump announced new drug pricing deals with nine major pharmaceutical companies, including Merck and Pfizer, aimed at lowering Medicaid drug prices [7] - Merck committed to approximately 70% discounts on diabetes treatments, while Pfizer agreed to significant price cuts and a $70 billion investment in U.S. research [8] - These deals included a three-year exemption from Section 232 tariffs for the pharmaceutical companies, creating a win-win scenario for both the industry and consumers [8] Group 4: Nvidia and Geopolitical Dynamics - The U.S. government approved the export of Nvidia's H200 chips to select Chinese customers, with a 25% revenue cut going to the government, reflecting complex geopolitical dynamics [9][10] - Nvidia's stock saw a positive reaction, closing at $176.29 and rising to $183.40 following the announcement, despite ongoing investor caution regarding China exposure [10] Group 5: Economic Overview - Despite stock market gains of 13% to 20% year-to-date, public sentiment regarding the economy remains low, with 70% of Americans describing it as "poor" [11] - Trump's approval rating on economic performance has dropped to between 31-39%, indicating a disconnect between market performance and public perception [11] - The Federal Open Market Committee has been cutting interest rates to stimulate the economy, reflecting concerns about rising prices and unemployment [12]

Core Insights - The federal government is set to issue a one-time, tax-free payment of $1,776, termed the 'Warrior Dividend,' to approximately 1.45 million eligible military service members this holiday season [1][7] - This benefit is designed to honor the year of the nation's founding, 1776, and is expected to provide a short-term boost to U.S. consumer spending [3][6] Funding Details - The funding for the 'Warrior Dividend' is expected to come from revenue generated through tariffs and provisions in the One Big Beautiful Bill [2][4][7] - Specific details on the funding mechanism remain unclear, but President Trump has indicated that the tariff revenue will play a significant role [3][7] Eligibility Criteria - The benefit will be available to service members across all ranks, specifically those in active duty service in pay grades O-6 and below as of November 30 [5] - Reserve component service members must be on active-duty orders for 31 days or more as of the same date to qualify for the dividend [5][6] - The distribution of the 'Warrior Dividend' is expected to occur before December 20 of this year [6]

We only lost FedEx saying Tariff.6-1 on these earnings call mentions.Gotta love it.Easy (@EasyEatsBodega):Going a wee bit hard on some Earning Call markets today.Using @MentionMetrix and filtering based on the past year.Actually reading the full transcript where words are mentioned, and seeing if we can get some Wins here. https://t.co/sfVVIYnIk5 ...