Financial Data and Key Metrics Changes - Net sales for Q1 2025 were $175.6 million, down from $193.4 million in the prior year, with same-store sales decreasing by 7.8% compared to Q1 2024 [6] - Gross profit for Q1 2025 was $54.3 million, compared to $60.4 million in the same quarter last year, resulting in a gross profit margin of 30.9%, down from 31.2% [13] - The net loss for Q1 2025 was $17.3 million, or $0.78 per basic share, compared to a net loss of $8.3 million, or $0.38 per basic share in Q1 2024 [14] - EBITDA for Q1 2025 was negative $12 million, compared to negative EBITDA of $6.5 million in the prior year [15] Business Line Data and Key Metrics Changes - On a same-store basis, hard goods decreased by 4.7%, apparel declined by 8.7%, and footwear was down by 11.8% [7] - Transactions for the period were down 5.3%, and the average sale decreased by 2.5% [8] Market Data and Key Metrics Changes - Sales in January and February were particularly challenging due to unfavorable seasonal weather, resulting in winter-related sales down nearly 25% [6] - March same-store sales were flat compared to the prior year, benefiting from an approximate 300 basis point impact from the Easter calendar shift [7] Company Strategy and Development Direction - The company continues to optimize its store portfolio, closing eight stores in Q1 2025 and anticipating the closure of approximately seven additional stores throughout the year [10] - The company is focused on capitalizing on sales opportunities during high-volume periods such as Memorial Day and Father's Day, with healthy inventory levels prepared in advance of tariff impacts [11][12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the fluidity of macroeconomic conditions and the uncertainty in the overall environment, emphasizing the need to monitor tariffs and their impact on the supply chain and consumer spending [12] - For Q2 2025, the company expects same-store sales to be down in the low to mid-single-digit range, reflecting ongoing macroeconomic headwinds [17] Other Important Information - Merchandise inventory at the end of Q1 2025 increased by 6.5% year over year, primarily due to earlier scheduling of spring and summer merchandise deliveries [15] - Capital expenditures for Q1 2025 totaled $1.7 million, with expectations for full-year CapEx in the range of $4 million to $7 million [16] Q&A Session Summary Question: What are the expectations for same-store sales in Q2 2025? - Management expects same-store sales to be down in the low to mid-single-digit range compared to Q2 2024, influenced by macroeconomic headwinds and calendar shifts [17] Question: How is the company managing inventory levels? - The company believes its inventory is well positioned to drive sales during the upcoming summer season, having received products in advance of tariff impacts [15]

Core Viewpoint - Bank of America Securities analyst Steve Byrne downgraded Dow Inc. from Buy to Underperform, citing a "perfect storm" of weakening macroeconomic conditions, rising U.S. feedstock costs, and increasing trade barriers [1] Group 1: Financial Forecasts - EBITDA forecasts for 2025 and 2026 have been significantly reduced by 17% and 23%, respectively, now expected at $4.8 billion and $5.4 billion [1] - Projected free cash flow shortfalls for 2025-26 are expected to widen to $2.6 billion from the previously estimated $1.25 billion [3] Group 2: Dividend and Leverage Concerns - Dow's annual dividend of around $2 billion is now seen as increasingly at risk [3] - Net leverage is expected to approach 3x through 2027 [3] Group 3: Revenue and Market Risks - Dow's reliance on sectors like housing, construction, and automotive could significantly pressure earnings amid a slowing global economy [4] - Approximately 30% of Dow's revenue comes from the more resilient packaging segment, but strong dependence on polyethylene exports poses notable risks [4] - The U.S. is a major net exporter of polyethylene, accounting for 40%-50% of Dow's sales, with China representing over 20% of these exports [4] Group 4: Price and Demand Outlook - Recent steep tariffs imposed by China threaten Dow's critical revenue stream [5] - Anticipated lower volumes and weaker profit margins across key segments have led to downward revisions in estimates [5] - For U.S. polyethylene, expected price gains have been revised down to just 1 cent per pound over the next three months, compared to a previously expected 3 cents, with price declines anticipated later in the year [5] - The cautious outlook is attributed to concerns about weakening demand and already high inventory levels [6]

Financial Data and Key Metrics Changes - Preliminary first quarter 2025 revenue was $37.9 million, up 28% year-over-year but down 6% sequentially from Q4 2024 [18] - Sold 73 LDDs, an increase of 11% year-over-year but a decrease of 12% from Q4 2024 [18] - Sold 27,579 LALs, up 36% from Q1 2024 but down 5% sequentially from Q4 2024 [19] - Revised full-year revenue guidance from $185 million to $197 million down to $160 million to $175 million, reducing implied growth from 32%-41% to 14%-25% [19] Business Line Data and Key Metrics Changes - LDD installed base reached 1,044 units, up 43% year-over-year and 8% sequentially [18] - LAL sales experienced a year-over-year increase but a sequential decline, indicating a shift in market dynamics [19] Market Data and Key Metrics Changes - The premium IOL market showed signs of weakness, impacting LAL sales and leading to a year-over-year drop in same-store LAL sales [10][14] - The overall premium IOL market has been less sensitive to macroeconomic trends historically, but recent changes in consumer sentiment have affected decision-making [11][14] Company Strategy and Development Direction - The company is focusing on refining clinical education and practice adoption programs to address procedural declines [15] - Plans to expand into European markets while building clinical expertise and pursuing regulatory approvals in Asia [16][17] - Emphasis on leveraging customer interactions and product enhancements to drive growth [22] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the need to reset 2025 guidance due to macroeconomic headwinds and competitive product launches [17] - Confidence remains in the long-term opportunity to reshape the premium IOL market despite current challenges [17][22] Other Important Information - Customer satisfaction is at an all-time high of 97%, indicating strong support for the company's technology [22] - The company is committed to aligning operating expenses with revenue growth, reducing operating expense guidance from $165 million to $170 million to $150 million to $160 million [20][21] Q&A Session Summary Question: Guidance and underlying assumptions - Management indicated that the lack of significant increases in LAL procedures in March impacted guidance, reflecting changes in customer behavior [26] Question: Components of the miss in Q1 - Management noted a combination of factors including weakened premium IOL market, new product launches, and macroeconomic dynamics as contributors to the miss [32] Question: Utilization rates by cohort - Management confirmed that utilization rates have been consistent across cohorts, with no significant disparities noted [37] Question: Product pipeline and competition - Management expressed confidence in their product pipeline and noted that they do not see direct competition to LAL technology [42] Question: Impact of competitor recall - Management acknowledged the potential for opportunity but stated that the impact of competitor recalls is uncertain [70] Question: LDD demand and pricing strategy - Management expects LDD sales to increase in 2025 but acknowledged that overall demand may be affected by the premium IOL market's softness [76] Question: Confidence in market penetration - Management expressed confidence in continued market penetration, citing many practices that have yet to adopt their technology [90]

Core Viewpoint - Boston Scientific (BSX) is experiencing growth driven by product launches, strategic acquisitions, and international expansion, with a Zacks Rank of 2 (Buy) indicating positive market sentiment [1]. Group 1: Growth Drivers - The company is successfully expanding its operations internationally, particularly in Europe, the Middle East, and Africa (EMEA), where sales grew 11.6% year over year on an operational basis in the fourth quarter [2]. - New product launches, such as the next-generation accurate Prime Valve and LUX-Dx II, along with strong uptake of FARAPULSE, are contributing to growth in the EMEA region [2]. - The Endoscopy business within MedSurg is seeing strong growth in endoluminal surgery and single-use imaging franchises, supported by positive reimbursement wins for the ESG weight loss procedure [3]. Group 2: Strategic Acquisitions - Recent acquisitions, including Cortex for advanced AF mapping and Silk Road for vascular medicine, are expected to enhance the product portfolio and boost long-term revenue [4]. - The acquisition of Axonics in the fourth quarter of 2024 is also part of the company's strategy to expand its offerings [4]. Group 3: Stock Performance - Over the past three months, BSX shares have increased by 14.1%, outperforming the industry, which saw a decline of 5.7% [5]. - The company's international market expansion and new product launches are anticipated to sustain this upward trend in stock performance [5]. Group 4: Challenges - The company faces challenges from difficult macroeconomic conditions, including geopolitical pressures and disruptions in global supply chains, which may impact operating expenses [6]. - In the fourth quarter of 2024, BSX experienced a 27.9% increase in the cost of products sold, leading to a contraction in gross margin by 138 basis points [6]. - Currency fluctuations pose a risk, with 40% of sales coming from international markets, and a projected 100-basis point headwind from foreign exchange on revenues for 2025 [7]. Group 5: Competitive Landscape - The medical devices market is highly competitive, with Boston Scientific facing competition from major players like Johnson & Johnson, Abbott, Medtronic, Stryker, Smith & Nephew, and Edwards Lifesciences [8].