Financial Data and Key Metrics Changes - Bookings in Q2 increased by 7% to $269 million, driven by strong capital performance and stable aftermarket demand [9] - Revenue decreased by 7% compared to the record revenue in 2024, primarily due to softer capital orders [9] - Adjusted EBITDA was $52 million, down 15% from the previous year, with adjusted EPS at $2.31, down 18% [10][20] - Gross margin improved to 45.9%, up 150 basis points from 44.4% in Q2 2024, attributed to a higher percentage of aftermarket parts [18] Business Line Data and Key Metrics Changes - Flow Control segment revenue increased by 4% to $96 million, with aftermarket revenue making up 75% of total revenue [12] - Industrial Processing segment bookings rose by 9% to $105 million, but revenue decreased by 16% due to weaker capital shipments [14] - Material Handling segment bookings were $71 million, a 16% increase, but revenue declined by 6% [15] Market Data and Key Metrics Changes - Overall market demand in North America was near historical highs, despite ongoing trade policy uncertainties [6][7] - The integration of Dynamic Ceiling Technologies was completed, enhancing market access and growth opportunities [13] Company Strategy and Development Direction - The company aims to capitalize on strong cash flows and improve backlog, with expectations for industrial demand to strengthen in the latter half of the year [16] - The acquisition of Babini is expected to enhance the company's technology offerings in dewatering equipment [16][70] Management's Comments on Operating Environment and Future Outlook - Management noted that trade policy uncertainties and tariff changes have created a cautious environment for capital investment [11][28] - There is optimism for a strong second half of 2025, with expectations for improved capital project activity [28][62] Other Important Information - The company reported a significant increase in operating cash flow by 44% to $40.5 million compared to the previous year [21] - The backlog improved by 16% to $299 million, with a book-to-bill ratio over one for the second consecutive quarter [25] Q&A Session Summary Question: Expectations for sequential order improvement - Management confirmed expectations for strong third and fourth quarters, with capital orders anticipated to increase [33][34] Question: Sustainability of aftermarket parts revenue - Management believes the strong aftermarket revenue is due to the age of the installed base, with a modest decline expected in Q3 [37] Question: Current assets and liabilities - Current assets were approximately $475 million, and current liabilities were about $200 million [41] Question: Impact of capital equipment orders on aftermarket parts - Management anticipates a moderation in aftermarket parts as capital equipment orders increase, affecting gross margins [47] Question: Characterization of underlying demand for capital equipment - Management noted a cautious but improving demand environment, with significant project activity expected as uncertainties clear [59][62] Question: Contributions from acquisitions - The Babini acquisition is expected to have a small impact on the top line, with potential dilution in the short term [68][70]

Financial Data and Key Metrics Changes - The company reported net sales of $1.8 billion for the second quarter, reflecting a 1% increase year-over-year [9] - Gross margin remained stable at 30%, consistent with the same period last year [18] - Operating income improved to $273 million compared to $271 million in the prior year [26] - Diluted earnings per share increased by 4% to $5.17 from $4.99 in the second quarter of the previous year [27] Business Line Data and Key Metrics Changes - Maintenance products showed strong performance, particularly in private label chemical products, contributing to overall sales growth [9] - Sales related to new construction and renovation activities improved, creating less drag on sales than in previous quarters [10] - Chemical sales grew by 1%, despite price deflation and weather challenges [14] - Equipment sales, including cleaners, increased by 1%, reflecting stable replacement volumes [15] Market Data and Key Metrics Changes - Florida and Arizona experienced solid sales growth of 2%, outperforming national averages due to population growth and favorable weather [11] - Texas and California faced challenges with new pool construction, with sales down 23% in both states [11] - European net sales increased by 2% in local currency and 7% in U.S. dollars, with growth particularly in southern countries [12][13] Company Strategy and Development Direction - The company is focused on maintaining its leadership position through strategic investments in digital innovation and expanding its footprint with new locations [19] - The strategy includes enhancing customer experience and expanding private label offerings to capture market share [20] - The company anticipates modest sales growth in the second half of the year, with a full-year performance expected to be relatively flat [30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term fundamentals of the industry, driven by demographic trends and the desirability of at-home leisure [20] - The company remains cautious about new pool construction due to macroeconomic headwinds and lack of interest rate cuts [52] - Management noted that while maintenance and repair business remains resilient, larger renovation projects are being phased to manage consumer spending [38] Other Important Information - The company opened two new locations during the quarter, contributing to its growth strategy [19] - Inventory levels increased by 3% year-over-year, reflecting new product offerings and seasonal stocking [27] - The company completed $104 million in share repurchases during the quarter, exceeding prior year repurchases [29] Q&A Session Summary Question: How should the company think about the full year given the dynamics with tariffs and pricing? - Management highlighted the resilience of the maintenance and repair business and noted that larger renovation projects are being broken into phases to manage costs [38] Question: Why was the EPS guidance lowered for the year? - The adjustment was due to the lack of anticipated interest rate cuts, which are crucial for stimulating new pool construction [52] Question: Are there any inventory benefits to margins in the second quarter? - Management indicated that supply chain improvements and price increases contributed positively to margins, with expectations for continued benefits in the second half [68] Question: What is the outlook for new construction and discretionary spending? - Management expressed skepticism about significant improvements in new construction due to ongoing economic pressures, but noted strong performance in maintenance [63] Question: Is there any product shortage or labor issue affecting the company? - Management reported no significant product shortages or labor issues, indicating that supply chains are generally in good shape [81]

Financial Data and Key Metrics Changes - In Q2 2025, home closing revenue was $1.6 billion, a 5% decrease year-over-year despite a 1% increase in closing volume, primarily due to increased utilization of financing incentives [24] - Adjusted home closing gross margin was 21.4%, down from 25.9% in Q2 2024, reflecting higher lock costs and increased financing incentives [25][30] - Diluted EPS decreased by 35% year-over-year to $2.04 from $3.15 in Q2 2024 [30] Business Line Data and Key Metrics Changes - The company secured orders for 3,914 homes in Q2 2025, with an average absorption pace of 4.3 net sales per month [6][15] - Home deliveries totaled 4,170 homes, with backlog conversion exceeding 200% [7][21] - The cancellation rate remained at 10%, lower than historical averages, attributed to a 60-day closing commitment [15] Market Data and Key Metrics Changes - The Central Region had the highest average absorption pace of 5.2, followed by the East at 4.1 and the West at 3.9 [19] - Demand was strong in markets like Arizona, Dallas, Houston, and Southern California, while Florida and Colorado faced challenges due to increased existing inventory [19] Company Strategy and Development Direction - The company focuses on move-in ready inventory and financing incentives to enhance competitiveness in a challenging market [6][10] - An agile business model allows the company to optimize land strategy and community count, with a target of double-digit growth in community count by year-end [10][18] - The company is committed to maintaining a strong balance sheet while returning cash to shareholders through share buybacks and increased dividends [34][35] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that home buying demand has softened due to rising mortgage rates and consumer hesitancy, but remains optimistic about long-term industry trends [8][9] - The company expects a slower sales pace in Q3 due to seasonal trends but anticipates a pickup in demand in Q4 [18][106] - Management emphasized the importance of maintaining flexibility in operations and capital allocation to navigate economic transitions [39] Other Important Information - The company terminated approximately 1,800 land deals that no longer fit its criteria in Q2 2025 [13][36] - The effective income tax rate increased to 23.9% in Q2 2025, reflecting fewer homes qualifying for energy tax credits [30] Q&A Session Summary Question: Absorption rates on new communities - Management reported that absorption rates have trended well, achieving 4.3 net sales per month from newly opened communities [43] Question: Community count growth expectations - Management expects double-digit growth in community count by year-end, with a solid pipeline for 2026 [45][46] Question: Volume outlook for the remainder of the year - Management indicated that Q3 is expected to be one of the lowest volume quarters due to closed spring demand, but they have the inventory to achieve projected numbers if market conditions cooperate [54][55] Question: Cash capital allocation and share buybacks - Management is considering accelerating share buybacks due to reduced land spend, indicating a rebalancing of capital allocation [56][59] Question: Gross margin expectations - Management noted that Q3 gross margin is expected to decline due to lost leverage from lower volume, with potential recovery in Q4 depending on market conditions [80][82] Question: Land cost inflation and development costs - Management observed that the land market is slowing, with potential for cost savings from rebidding land development jobs, but significant reductions in land prices are not expected until 2026 [87][88]

Financial Data and Key Metrics Changes - Earnings for Q3 2025 were $3.36 per diluted share, down from $4.10 in the prior year quarter [11] - Consolidated revenues for the quarter were $9.2 billion, with a pre-tax income of $1.4 billion and a pre-tax profit margin of 14.7% [7][11] - Net income for the quarter was $1 billion, with home sales revenues of $8.6 billion on 23,160 homes closed, compared to $9.2 billion on 24,155 homes closed in the prior year quarter [11][12] - The cancellation rate for the quarter was 17%, up from 16% sequentially but down from 18% in the prior year quarter [12] Business Line Data and Key Metrics Changes - Home sales gross margin was 21.8%, stable sequentially but expected to decrease in Q4 due to increased sales incentives [13] - Homebuilding SG&A expenses increased 2% year-over-year, with SG&A as a percentage of revenues at 7.8%, up 70 basis points from the prior year [14] - Rental operations generated $55 million of pre-tax income on $381 million of revenues from single-family and multifamily rental homes [18] Market Data and Key Metrics Changes - The average closing price for the quarter was $369,600, down 1% sequentially and down 3% year-over-year [11] - The average number of active selling communities was up 4% sequentially and up 12% year-over-year [12] - The company ended the quarter with 38,400 homes in inventory, of which 25,000 were unsold [16] Company Strategy and Development Direction - The company remains focused on maximizing capital efficiency and generating substantial operating cash flows while delivering returns to shareholders [9] - The strategic relationship with Forestar, a majority-owned residential lot development company, is vital for providing finished lots to the homebuilding industry [20] - The company plans to repurchase $4.2 billion to $4.4 billion of common stock in fiscal 2025, subject to cash flow and share price changes [24] Management's Comments on Operating Environment and Future Outlook - Management noted that new home demand is impacted by affordability constraints and cautious consumer sentiment, with expectations for elevated sales incentives in Q4 [10] - The company has a positive outlook for the housing market over the medium to long term, despite current economic volatility [25] - Management expects consolidated revenues for the full year of fiscal 2025 to be approximately $33.7 billion to $34.2 billion [24] Other Important Information - The company has a strong balance sheet with low leverage and healthy liquidity, totaling $5.5 billion of consolidated liquidity at June 30 [22] - The return on equity for the trailing twelve months ended June 30 was 16.1%, with a return on assets of 11.1% [23] - The company repurchased 9.7 million shares during the quarter for $1.2 billion, reducing the outstanding share count by 9% from a year ago [23] Q&A Session Summary Question: Trends in incentives and competitive pressures - Management indicated that incentives have been choppy throughout the quarter, responding to market conditions and competition [30] Question: Consumer strength and impact of student loan repayments - Management noted an increase in FHA product selection among buyers but did not see significant impacts from student loan repayments [34] Question: Fourth quarter gross margin outlook - Management expects a decline in gross margin due to higher incentives, despite a strong performance in Q3 [39] Question: Community count and market management - Management anticipates moderation in community count as they manage inventory and respond to market absorption rates [56] Question: Resale inventory competition - Management does not see significant competition from resale inventory, as new home construction remains attractive to buyers [82]

Financial Data and Key Metrics Changes - The company reported a return on equity of 23% for the trailing twelve months ended June 30 [5] - Net new orders in Q2 totaled 7,083 homes, down 7% year-over-year, with a cancellation rate of 11% [13][14] - Home sale revenues were $4.3 billion, down 4% from the prior year, driven by a 6% decrease in deliveries to 7,639 homes [15] - Gross margin for Q2 was 27%, at the top end of guidance, with incentives at 8.7% of gross sales price, up from 6.3% last year [18][19] - Net income for Q2 was $608 million, or $3.30 per share, compared to $809 million, or $3.83 per share in the prior year [22][23] Business Line Data and Key Metrics Changes - Closings in Q2 were 38% first-time buyers, 42% move-up buyers, and 20% active adult buyers, with active adult orders up 9% [15][16] - The average sales price for closings was $559,000, reflecting a 2% increase [15] - The company started 7,220 homes in Q2, down 11% from the previous year [16] Market Data and Key Metrics Changes - Florida operations saw a 2% increase in net new orders year-over-year, benefiting from migration patterns and strong land positions [7][27] - The company experienced challenges in markets such as Dallas, Boston, and California, particularly among move-up buyers [28][29] Company Strategy and Development Direction - The company is focusing on a diversified operating model to sustain performance amid challenging market conditions [6] - There is a strategic emphasis on serving active adult buyers, with new community openings contributing to demand [15] - The company plans to manage land spend and starts to align inventory with current sales rates [11][16] Management's Comments on Operating Environment and Future Outlook - Management noted that consumer confidence is uncertain, impacting buyer activity, but overall demand remains reasonable [9][10] - The company anticipates closing between 29,000 homes for the full year, refining guidance due to lower absorption rates [17] - Management expressed optimism about the potential for market share growth as demand strengthens [71][72] Other Important Information - The company repurchased 3 million shares for $300 million in Q2, returning $600 million to shareholders in the first half of 2025 [23] - The company invested $1.3 billion in land acquisition and development in Q2, maintaining a strong land pipeline with 250,000 lots controlled [24][25] Q&A Session Summary Question: Did the improvement in demand seen in June carry through into July? - Management observed positive consumer response in late June when rates dropped, but July showed mixed demand with some fluctuations [35][36] Question: How did stick and brick costs trend in the quarter? - Stick and brick costs remained stable at $79 per square foot, with some potential relief in development costs anticipated [39][40] Question: Can you elaborate on the rationale for using land developers for options? - The company prefers working with underlying land sellers for better execution of price and risk mitigation, while also utilizing land bankers moderately [44][45] Question: What is the impact of potential Canadian tariffs on lumber costs? - Approximately 20% to 25% of lumber is sourced from Canada, and while tariffs could increase costs, the overall impact is not expected to be catastrophic [52][54] Question: How do move-up margins compare to active adult margins? - Active adult communities generate higher margins compared to move-up communities, contributing positively to overall margin performance [82][84]

Core Insights - Snap-on Inc. reported second-quarter 2025 results with earnings and revenues exceeding Zacks Consensus Estimates, although earnings declined 3.9% year-over-year and revenues remained flat compared to the prior year [1][3]. Financial Performance - Earnings per share were $4.72, surpassing the Zacks Consensus Estimate of $4.61, but down from $4.91 in the same quarter last year [3]. - Net sales reached $1.179 billion, flat year-over-year, and exceeded the Zacks Consensus Estimate of $1.154 billion, with an organic sales decline of 0.7% offset by favorable foreign currency translation [3]. - Gross profit was $595.5 million, a decrease of 0.3% year-over-year, with a gross margin of 50.5%, down 10 basis points from the previous year [4]. - Operating earnings before financial services totaled $259.1 million, down 7.6% year-over-year, with operating earnings as a percentage of sales contracting to 22% [5]. - Consolidated operating earnings, including financial services, were $327.3 million, down 6.6% year-over-year, with operating earnings as a percentage of sales contracting to 25.5% [6]. Segment Analysis - Sales in the Commercial & Industrial Group decreased 6.5% year-over-year to $347.8 million, primarily due to weaker performance in Asia Pacific and Europe [7]. - The Tools Group segment saw sales increase by 1.9% year-over-year to $491 million, driven by stronger demand in the U.S. [8]. - Sales in the Repair Systems & Information Group improved 3% year-over-year to $468.6 million, supported by increased activity with OEM dealerships [9]. - The Financial Services business reported a revenue increase of 1.2% year-over-year to $101.7 million [10]. Financial Position - As of the end of the second quarter 2025, Snap-on had cash and cash equivalents of $1.46 billion and shareholders' equity of $5.7 billion [11]. - The company anticipates capital expenditures of $100 million for the full year 2025 [11]. Future Outlook - Management expects resilience in markets and operations against uncertainties, aiming to advance core growth strategies and expand into new markets and industries [12]. - The effective tax rate is projected to be between 22-23% for 2025 [12].

Core Viewpoint - Andrew Peller Limited reported strong financial results for fiscal 2025, highlighting growth in revenue, gross margins, and net earnings, while adapting to changes in Ontario's distribution landscape and government support for the wine industry [3][5][8]. Financial Highlights - Revenue for the year ended March 31, 2025, was $389.6 million, an increase of 1.0% from $385.9 million in the prior year [5][8]. - Gross margin for the year was 42.8%, up from 39.0% in the previous year, driven by lower costs and the Ontario Grape Support Program [5][9]. - EBITA increased by 25.0% to $62.9 million for the year, compared to $50.3 million in fiscal 2024 [5][11]. - Net earnings for the year were $11.1 million ($0.26 per Class A Share), a significant improvement from a net loss of $2.9 million in the prior year [5][16]. Quarterly Performance - For the fourth quarter of fiscal 2025, revenue was $75.5 million, down 11.2% from $85.0 million in Q4 2024, primarily due to timing issues related to the Easter holiday and revenue recognition from the Ontario VQA Support Program [7][8]. - Gross margin for Q4 was 52.6%, compared to 41.8% in the same quarter of the previous year, largely due to the inclusion of support from the Ontario Grape Support Program [5][9]. - EBITA for Q4 increased by 46.0% to $13.5 million, up from $9.3 million in Q4 2024 [5][11]. - The net loss for Q4 improved to $0.7 million (loss of $0.02 per Class A Share), compared to a loss of $6.9 million in Q4 2024 [5][16]. Cost Management - Selling and administrative expenses as a percentage of revenue decreased to 34.7% for Q4 and 26.6% for the year, down from 42.1% and 28.4% respectively in the prior year [10]. - The company achieved $10.7 million in cost savings for the year, up from $9.3 million in 2024, through various cost-saving programs [9]. Market Dynamics - The increase in revenue was attributed to sales to big box stores, while retail store sales declined in the second half of the fiscal year due to new distribution guidelines in Ontario [8]. - The company noted a strong performance in sales to third-party restaurants and hospitality locations, although estate winery and wine club sales faced challenges due to reduced consumer spending [8]. Government Support - The company expressed support for recent Ontario government policies that benefit the grape and wine industry, viewing them as a key driver of economic growth [3].

Financial Data and Key Metrics Changes - In Q1 2025, the company achieved an 18% year-over-year increase in net sales to $11.7 million, up from $9.9 million in the same period last year, marking the fifth consecutive quarter of double-digit sales growth [5][13] - The gross margin for Q1 2025 was 41.9%, a 1.9 percentage point improvement compared to Q1 2024, despite commodity price pressures [6][14] - The net loss narrowed to $200,000 in Q1 2025 from a $1 million loss in Q1 2024, and adjusted EBITDA was positive at $400,000 compared to a negative $800,000 in the prior year [11][16] Business Line Data and Key Metrics Changes - The wholesale channel led growth with a 35% year-over-year increase, now accounting for nearly half of total revenue [7][13] - E-commerce sales grew by 6% year-over-year, contributing 53% of total net sales, driven by strong performance on Amazon [6][14] - Direct-to-consumer sales saw over 75% coming from repeat customers and subscribers, indicating strong customer loyalty [7] Market Data and Key Metrics Changes - The company experienced distribution gains in grocery and club stores, which contributed to the significant growth in the wholesale channel [8][13] - Improved inventory management and targeted marketing execution on Amazon drove platform demand for layered superfood products [6][14] Company Strategy and Development Direction - The company aims to maintain annual gross margins in the upper 30s while prioritizing volume growth to build a larger, more profitable business [10] - The strategic focus remains on driving growth through Amazon and expanding wholesale distribution, with a target of a 50-50 split between wholesale and e-commerce by 2025 [31] - The company is committed to operational efficiencies and strategic sourcing to mitigate the impact of commodity price inflation and tariffs [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about potential commodity price corrections in 2025 that could enhance profitability [10] - The company reaffirmed its full-year guidance, expecting net sales between $52 million and $54 million, representing 20% to 25% growth versus the prior year [19][18] - Management remains confident in the company's ability to deliver long-term value for shareholders despite current industry headwinds [20] Other Important Information - The company ended the quarter with $7.2 million in cash and no debt, indicating a strong balance sheet [17] - The company invested in building inventory safety stock to minimize out-of-stock issues and capture future growth opportunities [17] Q&A Session Summary Question: Clarification on tariffs and their impact on trade spend - Management indicated that the current 10% tariff is manageable, but future tariffs could have a more significant impact, which they believe they can accommodate within their financial guidance [25][26] Question: Details on wholesale strength and promotional spend - Management highlighted strong growth in coffee and instant latte products, with improved velocities and distribution gains contributing to wholesale growth [32][36] Question: Performance of the new liquid creamer product - Management noted that velocities are coming in as expected, with some challenges due to inventory transitions, but overall confidence remains high for future performance [39][40] Question: Marketplace strategy and its impact on core product innovation - Management clarified that the marketplace is a supportive component of the DTC platform, aimed at enhancing customer engagement rather than generating significant revenue [50][51] Question: Impact of Palisade fires on sales - Management reported no noticeable negative impact on sales from the Palisade fires, although they provided support to first responders [55]

Financial Data and Key Metrics Changes - In Q1 2025, the company achieved an 18% year-over-year increase in net sales to $11.7 million, up from $9.9 million in the same period last year, marking the fifth consecutive quarter of double-digit sales growth [4][12] - The gross margin for Q1 2025 was 41.9%, a 1.9 percentage point improvement compared to Q1 2024, despite commodity price pressures [5][13] - The net loss narrowed to $200,000 in Q1 2025 from a $1 million loss in Q1 2024, and adjusted EBITDA was positive at $400,000 compared to a negative $800,000 in the prior year [10][14] Business Line Data and Key Metrics Changes - The wholesale channel led growth with a 35% year-over-year increase, now accounting for nearly half of total net sales [6][12] - E-commerce sales grew by 6% year-over-year, contributing 53% of total net sales, driven by strong performance on Amazon [5][13] - Direct-to-consumer sales saw over 75% coming from repeat customers and subscribers, indicating strong customer loyalty [6] Market Data and Key Metrics Changes - The company reported significant distribution gains in grocery and club stores, contributing to the wholesale growth [6][12] - The company is optimistic about resolving supply chain constraints and expects to drive accelerated growth in coconut milk products in the second half of 2025 [7][10] Company Strategy and Development Direction - The company aims to maintain annual gross margins in the upper 30s while prioritizing volume growth to build a larger, more profitable business [9] - The strategy focuses on robust growth on Amazon and expanding wholesale distribution, with a target of a 50-50 split between wholesale and e-commerce by 2025 [30] - The company is committed to operational efficiencies and strategic sourcing to mitigate rising commodity costs and tariffs [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about potential commodity price corrections in 2025 that could enhance profitability [9] - The company remains confident in its 2025 outlook and ability to deliver long-term value for shareholders despite current industry headwinds [19][20] - Management highlighted the importance of maintaining strong supplier relationships and operational efficiencies to navigate inflationary pressures [8][14] Other Important Information - The company ended the quarter with $7.2 million in cash and no debt, indicating a strong balance sheet [15] - The company is investing in building inventory safety stock to minimize out-of-stock issues and capture future growth opportunities [15][17] - Full-year guidance expects net sales between $52 million and $54 million, representing 20% to 25% growth versus the prior year [18] Q&A Session Summary Question: Clarification on tariffs and their impact - Management indicated that the current 10% tariff is manageable, but future tariffs could have a more significant impact, which they believe they can accommodate within their financial guidance [24][25] Question: Details on wholesale strength and promotional spend - Management noted that wholesale growth is driven by distribution gains and improved velocities, particularly in coffee and instant latte products, with promotional spending being efficient despite exceeding expectations [30][36] Question: Performance of the new liquid creamer product - Management reported that velocities for the new liquid creamer are in line with expectations, although the transition has been challenging due to timing issues with major accounts [39][40] Question: Marketplace strategy and its impact - The marketplace is a non-strategic component aimed at enhancing the DTC platform by offering lifestyle products, which helps drive traffic and retention without significant financial expectations [48][49] Question: Impact of Palisade fires on sales - Management stated that while there was displacement in Southern California, there was no noticeable negative impact on sales, and they provided support to first responders as a goodwill gesture [52][53]

Core Insights - Revolve Group's stock declined by 10.40% following the release of its quarterly results, which were in line with expectations but included a lowered gross margin guidance for the year [1] - The fashion industry is currently under pressure, and while Revolve's results were solid, the lowered guidance and slower growth in early Q2 contributed to the stock sell-off [1] Financial Performance - In Q1, Revolve's revenue increased by 10% to $296.7 million, slightly missing estimates of $297.8 million [3] - Gross margin decreased from 52.3% to 52%, while operating income surged by 57% to $14.7 million due to modest growth in marketing and selling costs [3] - Earnings per share rose from $0.15 to $0.16, beating consensus estimates by one cent [3] Future Outlook - Co-CEO Michael Mente expressed confidence in the company's ability to navigate current economic challenges and gain market share, despite uncertainties related to the global economy and trade war [4] - The company reported that net sales in April slowed to mid-single-digit growth, although international performance was stronger [4] - For the full year, Revolve revised its gross margin outlook down from 52.4%-52.9% to 50%-52%, influenced by current tariff levels [5] - If the trade war eases, Revolve could see potential upside, especially as its stock has fallen over 50% from its peak late last year [5]