Financial Data and Key Metrics Changes - First quarter sales from continuing operations grew 5% on both a reported and operational basis, totaling $2.63 billion, exceeding previous guidance of 3% to 4% [6][12] - Adjusted earnings per share from continuing operations were $0.55, up 53% compared to the prior year, driven by favorable top line results and lower non-operational expenses [27][33] - Adjusted gross margin from continuing operations was 41.8%, a decrease of 160 basis points year-over-year, impacted by higher planning and fulfillment costs [29] Business Line Data and Key Metrics Changes - Medical Products and Therapies (MPT) segment sales were $1.3 billion, increasing 6%, with strong growth in U.S. Infusion systems [13][14] - Healthcare Systems and Technologies (HST) segment sales totaled $704 million, increasing 6%, driven by 14% growth in the U.S. for Care and Connectivity Solutions [18][19] - Pharmaceutical segment sales were $581 million, increasing 3%, with injectables and anesthesia sales growing 4% [22] Market Data and Key Metrics Changes - The U.S. market showed strong recovery with hospitals beginning to rebuild inventory levels, particularly in IV Solutions, which is expected to improve as allocations are removed [16][62] - International procurement remains a part of operations, with ongoing impacts from U.S. and retaliatory tariffs affecting the supply chain [39][40] Company Strategy and Development Direction - The company is focused on leveraging its verticalized operating model to enhance agility and drive profitable growth [5] - Continued investments in innovation are prioritized to bring new products to market and redefine healthcare delivery [26] - The search for a permanent CEO is active, with the board working with a leading search firm to identify the right candidate [9] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the volatility in the global macro environment and the uncertainty created by new tariffs, but remains positive about opportunities for sales growth and margin expansion [8][34] - The company expects total sales growth of 7% to 8% on a reported basis for the full year 2025, with operational growth of 4% to 5% [35][42] Other Important Information - The company is actively working on mitigating the impacts of tariffs, including optimizing supply chains and seeking exemptions [40] - Adjusted operating margin from continuing operations is expected to be between 16% to 16.5% for the full year [41] Q&A Session Summary Question: What actions are being taken to offset tariff headwinds? - Management is optimizing supply chains, negotiating with suppliers, and seeking exemptions while maintaining targeted pricing strategies [47][48] Question: How should we think about the sustainability of the HST business recovery? - The HST segment has shown strong order growth and competitive wins, with management optimistic about its future performance despite monitoring the capital environment [52][56] Question: What is the expected impact of IV Solutions on the business as hospitals return to normal inventory levels? - Hospitals are expected to continue conservation efforts, but some are using more solutions than pre-hurricane levels, indicating a mixed recovery [60][62] Question: Can you provide clarity on the potential impact of pharmaceutical tariffs? - The company is monitoring the situation closely, with a small exposure from the Clarus plant, and is proactive in scenario planning [66] Question: What are the expectations for operating margin expansion in 2026? - Management remains committed to margin expansion, but acknowledges that the tariff environment will influence future projections [100][102]

Financial Data and Key Metrics Changes - Consolidated net sales declined 2.9% to $458 million in the fiscal third quarter [5][9] - Gross profit reached a record $106 million, with a gross profit margin improvement of 90 basis points to 23.1% [8][11] - Operating income increased by 41.9% to $50 million, driven by lower SG&A costs and gross margin improvement [11][13] - Diluted earnings per share increased by 44.7% to $1.49 [12] Business Line Data and Key Metrics Changes - Retail segment net sales decreased by 2.6%, with a 0.7% decline when excluding exited bakery lines [5][6] - Foodservice segment net sales declined by 3.2%, impacted by weather and industry-wide declines in restaurant traffic [7][8] - Licensing program in the retail segment showed growth, particularly with Chick-fil-A sauce and Texas Roadhouse dinner rolls [6][16] Market Data and Key Metrics Changes - In the frozen dinner roll category, the combined growth of Sister Schubert's and Texas Roadhouse brands was 11.6%, increasing market share to 60.9% [6] - Frozen garlic bread sales grew by 6.8%, with a market share increase to 43.9% [6] - Chick-fil-A dressings grew by 4%, contributing to a category-leading share of 27.2% [7] Company Strategy and Development Direction - The company aims to accelerate core business growth, simplify the supply chain, and expand through focused M&A and strategic licensing [15][16] - Planned closure of the sauce and dressing facility in Milpitas, California, to optimize the manufacturing network [17] - Acquisition of the Atlanta-based facility is expected to enhance the manufacturing network and support growth [18][19] Management's Comments on Operating Environment and Future Outlook - Management anticipates ongoing challenges in the consumer environment but is positioned to respond effectively [16] - Input costs are not expected to significantly impact the upcoming quarter [17] - The company is focused on innovation and distribution expansion in the retail segment [16] Other Important Information - The company reported a cash dividend of $0.95 per share, marking a 6% increase from the previous year [13] - The financial position remains strong with a debt-free balance sheet and $124.6 million in cash [13] Q&A Session Summary Question: Impact of consumer slowdown on foodservice collaboration - Management noted that weather significantly impacted traffic and sales, with expectations of low single-digit declines in foodservice volume [25][28] Question: Balancing distribution gains against consumer softness in retail - Management believes distribution gains from new items will offset consumer softness, projecting low single-digit growth in retail volume [30][32] Question: Weakness in refrigerated dressings and dips - The decline was attributed to the timing of Easter, which shifted sales to the next quarter, impacting consumption data [40][42] Question: Promotional environment at retail - Management indicated a careful approach to trade spending, focusing on effective promotional strategies rather than broad price reductions [46][48] Question: Competitive dynamics and promotional stance - Management emphasized the importance of strategic placements over discounts, noting that private label competition remains manageable [52][54] Question: Quantifying the impact of Easter shift - Management estimated the Easter shift impacted the quarter by at least one percentage point [59][60]

Financial Data and Key Metrics Changes - Consolidated net sales decreased by 2.9% to $458 million for the third quarter [5] - Gross profit reached a record $106 million, with a gross profit margin improvement of 90 basis points to 23.1% [8][9] - Operating income increased by 41.9% to $50 million, driven by lower selling, general and administrative expenses and gross margin improvement [11][12] - Diluted earnings per share increased by 44.7% to $1.49 [12][15] Business Line Data and Key Metrics Changes - Retail segment net sales decreased by 2.6%, with a 0.7% decline when excluding exited bakery lines [5][6] - Foodservice segment net sales declined by 3.2%, impacted by weather and industry-wide declines in restaurant traffic [7][8] - Licensing program in the retail segment showed growth, with Chick-fil-A sauce and Texas Roadhouse dinner rolls performing well [6][18] Market Data and Key Metrics Changes - In the frozen dinner roll category, the combined market share of Sister Schubert's and Texas Roadhouse brands increased by 520 basis points to 60.9% [6] - Frozen garlic bread category saw New York Bakery brand sales grow by 6.8%, increasing market share by 180 basis points to 43.9% [6] - Chick-fil-A dressings grew by 4%, contributing to a category-leading share of 27.2% when combined with Marzetti brand dressings [7] Company Strategy and Development Direction - The company aims to accelerate core business growth, simplify the supply chain, and expand through focused M&A and strategic licensing [17][20] - Planned closure of the sauce and dressing facility in Milpitas, California, to optimize the manufacturing network [19] - Acquisition of the Atlanta-based sauce and dressing facility is expected to enhance the manufacturing network and support growth [20][21] Management's Comments on Operating Environment and Future Outlook - Management anticipates ongoing challenges in the consumer environment but is positioned to respond effectively [18] - Input costs are not expected to significantly impact the upcoming quarter [19] - The company is focused on innovation and distribution expansion for new items in the retail segment [18] Other Important Information - The company reported a cash dividend of $0.95 per share, representing a 6% increase from the prior year [15] - The company maintains a debt-free balance sheet with $124.6 million in cash [15] Q&A Session Summary Question: Impact of consumer slowdown on foodservice collaboration - Management noted that weather significantly impacted Q3 volumes, with some customers closing stores for up to ten days [28][30] Question: Balancing distribution gains against consumer softness in retail - Management believes distribution gains from new items will offset consumer softness, projecting low single-digit volumetric growth [32][34] Question: Weakness in refrigerated dressings and dips - The weakness was attributed to the timing of Easter, which shifted to April, impacting consumption data [44][46] Question: Promotional environment at retail - Management indicated a careful approach to trade spending, focusing on effective promotional strategies rather than broad price reductions [48][50] Question: Competitive dynamics and promotional stance - Management emphasized the importance of relevant new items and effective execution over heavy promotional spending [56][60] Question: Quantifying the impact of Easter shift - Management estimated the Easter shift impacted the quarter by at least one percentage point [62] Question: Impact of weather on foodservice volumes - Management noted that traffic was significantly affected by weather, particularly in January and February [68] Question: Potential of new Chick-fil-A sauce in club channels - Management expressed optimism about the Chick-fil-A sauce's performance in club channels, viewing it as a significant opportunity for growth [70][72]

Financial Data and Key Metrics Changes - The company reported a core sales decline of 2.1%, which was at the high end of the guidance range, reflecting new product innovation and some pricing benefits [27][32] - Normalized gross margin increased by 150 basis points to 32.5%, marking the seventh consecutive quarter of year-over-year improvement [28][34] - Normalized operating margin was 4.5%, exceeding the guidance range despite increased advertising and promotion investments [34] - The company recorded a normalized diluted earnings per share loss of $0.01, which was $0.05 to $0.08 above the guidance range [35] Business Line Data and Key Metrics Changes - The Learning and Development segment and the International business, which represent nearly 40% of total sales, posted positive core sales growth for the last five consecutive quarters [28][33] - The first quarter net sales included about 2.5 points of currency headwind and just over half a point from category exits [28][33] Market Data and Key Metrics Changes - The company maintained its net sales guidance for the year but moderated expectations for category growth from flat to down 1% to 2% due to lower consumer confidence levels [17][44] - The foreign exchange outlook improved by one to two percentage points based on current rates [19] Company Strategy and Development Direction - The company is focused on product innovation and has rebuilt its multiyear innovation funnel, with new products set to launch in the second half of the year [7][8] - The company believes it is well-positioned to benefit from global trade realignment due to proactive sourcing strategies and investments in domestic manufacturing [9][10] - The company plans to reduce dependency on sourced finished goods from China, aiming to lower this to 10% by the end of 2025 [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the dynamic operating environment and emphasized the importance of their domestic manufacturing capabilities [26][45] - The company expects to fully offset the impact of certain tariffs through proactive actions and has affirmed its 2025 financial outlook for net sales, normalized operating margin, and normalized earnings per share [41][45] - Management acknowledged the challenges posed by the additional 125% China tariff but indicated that they have plans to mitigate its impact [46] Other Important Information - The company has made significant investments in U.S. manufacturing, totaling nearly $2 billion since the 2017 Tax Cuts and Jobs Act, which has enhanced its competitive position [13][14] - The company has a strong pipeline of new products and is actively engaging with retailers to shift their sourcing from China to U.S. or Mexican manufacturing [66] Q&A Session Summary Question: Retail destocking and tariff mitigation efforts - Management noted that they have not seen significant changes in retailer inventory levels in Q1 and are adjusting their core sales guidance out of caution due to macroeconomic forecasts [52][53] - They have taken proactive actions to mitigate the impact of tariffs, particularly in the baby gear category, which is their biggest exposure [54][56] Question: Leveraging U.S. capacity and private label considerations - Management clarified that they are not set up to produce private label products but are encouraging retailers to replace private label items with their branded products, leveraging U.S. manufacturing advantages [63][66] Question: Guidance and market growth expectations - Management explained that while forecasting market growth is challenging, they believe providing guidance is important for clarity and that they have a plan to offset tariff impacts [86][89]

Financial Data and Key Metrics Changes - First quarter revenue was $74.3 million, down 19% sequentially from $91.6 million in Q4 2024 and down 3% year over year from $76.8 million in Q1 2024 [16] - First quarter endpoint IC revenue was $61.2 million, down 17% sequentially from $74.1 million in Q4 2024 and slightly down year over year from $61.5 million in Q1 2024 [16] - First quarter systems revenue was $13.1 million, down 25% sequentially from $17.5 million in Q4 2024 and down 15% year over year from $15.3 million in Q1 2024 [17] - First quarter adjusted EBITDA was $6.5 million, compared to $15 million in Q4 2024 and $6.7 million in Q1 2024 [19] - First quarter GAAP net loss was $8.5 million, while non-GAAP net income was $6.3 million or $0.21 per share on a fully diluted basis [19] Business Line Data and Key Metrics Changes - Endpoint IC revenue exceeded expectations driven by turns orders, with a forecast for an increase in Q2 [16] - Systems revenue exceeded expectations due to strength in both reader and reader IC sales, but a decline is expected in Q2 driven by lower reader IC revenue [17] - First quarter gross margin was 52.7%, compared to 53.1% in Q4 2024 and 51.5% in Q1 2024, with expectations for similar margins in Q2 [17][18] Market Data and Key Metrics Changes - The company holds the number one endpoint IC market share, capturing 85% of the industry's 2024 unit volume growth [10] - A geographic shift in sourcing products from China to other regions represents roughly 15% of endpoint ICs, with the company’s exposure being much less [12] Company Strategy and Development Direction - The company aims to extend its technology lead, market share, and platform adoption while managing business with a steady hand [15] - The focus remains on investing in enterprise solutions that transform the industry, particularly in retail, supply chain, and logistics [7][14] - The company is strategically shifting investments away from China towards the U.S. and Europe to mitigate tariff impacts [15] Management's Comments on Operating Environment and Future Outlook - Management acknowledges extraordinary macro uncertainty but believes the long-term growth opportunity remains intact [7] - The company expects a modest increase in channel inventory in Q2 as partners build optionality, but anticipates normalization and bookings growth if consumer demand holds [12][22] - Management remains optimistic about the enterprise end customer base and believes that those leveraging the platform will outperform competitors [7][28] Other Important Information - The company ended Q1 with cash, cash equivalents, and investments of $232.5 million, down from $239.6 million in Q4 2024 [19] - Free cash flow was negative $13 million, driven primarily by unfavorable working capital timing, which is expected to reverse in Q2 [20] Q&A Session Summary Question: How are you thinking about the impact of tariffs on demand? - Management indicated that they are navigating the tariff situation and believe that enterprises are undershipping consumer demand due to geographic shifts in sourcing [28][30] Question: What is the outlook for inventory levels? - Management stated that channel inventory is not high relative to consumer demand and that partners are adjusting their inventory strategies due to tariffs [44][70] Question: What are the growth opportunities for 2025 and beyond? - Management highlighted food as a significant opportunity but noted that it would be more material in 2026 and beyond, with a focus on fixed reading solutions in supply chains [74][76] Question: How is the M800 ramp progressing? - The M800 is expected to ramp nicely, with anticipated gross margin benefits as it becomes a volume runner later in the year [58][93] Question: What is the status of the large logistics customer? - Management reported continued support and growth with the logistics customer, despite inventory issues at the channel partner level [86]

Core Insights - BOS Better Online Solutions Ltd. has secured a new order worth $375,000 for an automatic sorting machine from a global fashion retailer, scheduled for delivery in Q4 2025 [1][2] - The order reflects the strong sales momentum in 2025 for BOS, particularly in its RFID division, which has expanded its offerings to include automatic sorting and packing machines [2] - The automatic sorting machines are designed to enhance shipment accuracy, increase volume capacities, and reduce reliance on workforce resources, positioning the RFID division as a vital growth engine for the company [2] Company Overview - BOS integrates advanced technologies across three specialized divisions: Intelligent Robotics, RFID, and Supply Chain [4] - The Intelligent Robotics division focuses on automating industrial and logistics inventory processes, improving efficiency and precision [4] - The RFID division optimizes inventory management with solutions for marking and tracking, ensuring real-time visibility and control [4] - The Supply Chain division integrates franchised components directly into customer products, addressing evolving needs for innovative solutions [4]

Financial Data and Key Metrics Changes - The company reported revenues of $40 million for year '24, a decrease from the record $44 million in year '23, reflecting a return to normalized purchasing after post-COVID restocking [15] - For year '25, the company projects revenues of $44 million and net income of $2.5 million, indicating a 10% year-over-year increase [16][23] - The backlog increased by 35% to $27 million at the end of year '24, driven by exposure to the booming defense sector [16] Business Line Data and Key Metrics Changes - The supply chain division has doubled its engineering team and tripled the number of manufacturers represented, enhancing market position and growth trajectory [7] - The RFID division is expanding its salesforce to capture the rebound in the Israeli civil market and will add off-the-shelf packing machines for logistics centers [18] - The robotic division is preparing for its first installation of a robotic production line in Europe in the first half of the year [19] Market Data and Key Metrics Changes - The Israeli defense budget rose 73% year-over-year, while Europe's defense budget increased by 16% year-over-year, positively impacting key clients and the company [17] - The company has achieved $4 million in overseas sales in year '24 from its supply chain division, indicating successful international expansion [19] Company Strategy and Development Direction - The growth strategy focuses on strengthening relationships with defense clients and expanding internationally [17] - The company aims to deepen its offerings to defense clients, including the recent addition of cable in line [18] - The company is leveraging its Israeli defense client base to align with their global subcontractors for international growth [18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for year '25, citing a strong backlog and growth in the defense sector as key drivers [16][23] - The company is in excellent financial shape with $21 million in equity and zero bank debt, providing flexibility for strategic growth [23][24] - Management highlighted the significant discount at which the company is trading compared to broader market benchmarks, indicating a compelling investment opportunity [20][21] Other Important Information - The company has partnered with a US-based investor relations firm to enhance its presence in the US capital market, resulting in increased trading volume from 4,000 shares to 58,000 shares [21][22] - The company recorded an impairment charge of $1.2 million related to goodwill, which impacted net income for year '24 [32] Q&A Session Summary Question: Guidance on the new robotics line in Europe and its impact from the war in Ukraine - Management clarified that they do not have direct sales in Europe but align with major Israeli clients who export and require local production [28][29] Question: Clarification on tax loss carry forward - Management confirmed approximately $30 million in carry forward tax losses, which could provide up to $6 million in future tax savings, with only $1 million recognized as an asset [31] Question: Impact of new head of procurement on defense contracts - Management expressed confidence that the new hire will help capitalize on opportunities in the defense market and indicated updates will be provided if significant developments occur [35]

Financial Data and Key Metrics Changes - The company reported revenues of $40 million for year '24, a decrease from the record $44 million in year '23, reflecting a return to normalized purchasing after post-COVID restocking [15] - For year '25, the company projects revenues of $44 million and net income of $2.5 million, indicating a 10% year-over-year increase [16][23] - The backlog increased by 35% to $27 million at the end of year '24, driven by exposure to the booming defense sector [16] Business Line Data and Key Metrics Changes - The supply chain division has doubled its engineering team and tripled the number of manufacturers represented, enhancing market position and growth trajectory [7] - The RFID division is expanding its salesforce to capture the rebound in the Israeli civil market and will add off-the-shelf packing machines for logistics centers [18] - The robotic division is preparing for its first installation of a robotic production line in Europe in the first half of year '25 [19] Market Data and Key Metrics Changes - The Israeli defense budget rose by 73% year-over-year, while Europe's defense budget increased by 16% year-over-year, positively impacting key clients [17] - The company has achieved $4 million in overseas sales in year '24 from its supply chain division, indicating successful international expansion [19] Company Strategy and Development Direction - The growth strategy focuses on strengthening relationships with defense clients and expanding internationally [17] - The company aims to deepen its offerings to defense clients, including the recent addition of cable in line [18] - The company is leveraging its Israeli defense client base to align with their global subcontractors for international growth [18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for year '25, citing a growing backlog and favorable trends in the defense sector [16][23] - The company is in excellent financial shape with $21 million in equity and zero bank debt, providing flexibility for strategic growth [23][24] - Management highlighted the significant discount at which the company is trading compared to broader market benchmarks, indicating a compelling investment opportunity [20][21] Other Important Information - The company has partnered with a US-based investor relations firm to enhance its presence in the US capital market, resulting in increased trading volume from 4,000 shares to 58,000 shares [21][22] - The company recorded an impairment charge of $1.2 million related to goodwill, impacting net income for year '24 [32] Q&A Session Summary Question: Guidance on the new robotics line in Europe and its impact from the war in Ukraine - Management clarified that they do not have direct sales in Europe but align with major Israeli clients who export and require local production [28][29] Question: Clarification on tax loss carry forward - Management confirmed approximately $30 million in carry forward tax losses, which could provide up to $6 million in future tax savings, with only $1 million recognized as an asset [31] Question: Impact of new head of procurement on defense contracts - Management expressed confidence that the new hire will help capitalize on opportunities in the defense market and indicated updates will be provided if significant developments occur [35]

Core Insights - BOS Better Online Solutions Ltd. reported a 14.7% year-over-year increase in net income, reaching $2.3 million, driven by improved gross margins and operational efficiency [1][4][7] - The company anticipates a further 10% growth in both sales and net income for 2025, projecting revenues of $44 million and net income of $2.5 million [1][4] Financial Highlights for 2024 - Total revenues decreased by 9.7% to $39.9 million from $44.2 million in 2023, impacted by one-time post-COVID restocking activities in the previous year [2][7] - Gross profit margin improved to 23.3% from 20.8% in the prior year, indicating enhanced operational efficiency [7] - Operating profit fell to $1.4 million from $2.5 million in 2023, primarily due to a $1.2 million non-cash impairment of goodwill and other intangible assets [7] - EBITDA rose to $3.25 million compared to $3.06 million in 2023 [7] Fourth Quarter Highlights - Revenues for Q4 2024 declined by 4.6% to $10.4 million from $10.9 million in Q4 2023 [7] - Gross profit margin for Q4 increased to 22.9% from 19.2% year-over-year [7] - Operating loss for Q4 amounted to $616,000, a decline from an operating income of $400,000 in Q4 2023, attributed to the same impairment charge [7] - Net income for Q4 was $485,000, or $0.08 per basic share, compared to $427,000, or $0.07 per basic share, in Q4 2023 [7] Strategic Focus - The company aims to deepen its penetration in the defense sector, leveraging strong customer relationships and anticipating robust ordering patterns in 2025 [5] - BOS is pursuing opportunities to expand into new overseas markets by utilizing its connections with Israeli defense customers [5] Board Updates - On March 19, 2025, BOS appointed Osnat Gur as Board Chair and Avi Dadon as a new independent director, both bringing extensive experience to the company [6][8]

Financial Data and Key Metrics Changes - Total sales for Q3 2024 were $40.2 billion, an increase of 6.6% from the same period last year [6][28] - Comparable sales declined by 1.3% year-over-year, with U.S. stores experiencing a negative comp of 1.2% [6][28] - Adjusted diluted earnings per share were $3.78, down from $3.85 in Q3 2023, reflecting a decrease of approximately 2% [6][31] - Gross margin was approximately 33.4%, a decrease of 40 basis points from the previous year [29] - Operating margin for Q3 was 13.5%, compared to 14.3% in Q3 2023 [30] Business Line Data and Key Metrics Changes - Positive comps were seen in power, outdoor garden, building materials, indoor garden, and paint departments, while lumber, plumbing, and hardware were above the company average [21] - Comp transactions decreased by 0.6%, and comp average ticket decreased by 0.8% [21] - Pro sales outpaced DIY customer sales, indicating stronger performance in the professional segment [22] Market Data and Key Metrics Changes - Mexico and Canada posted comps above the company average, with Mexico showing positive comps in the quarter [7] - The impact of hurricanes contributed approximately $200 million in sales, positively affecting total company comps by about 55 basis points for the quarter [29] Company Strategy and Development Direction - The company aims to enhance the interconnected experience and grow pro wallet share through differentiated capabilities and new store openings [9][10] - Investments are being made in supply chain capabilities, including direct fulfillment centers to improve delivery speeds [10] - The focus remains on supporting the growth of the SRS team and leveraging cross-sale opportunities [12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged continued macroeconomic uncertainty and its impact on larger remodeling projects due to higher interest rates [9][68] - The company updated its fiscal 2024 guidance, expecting total sales growth of approximately 4% and adjusted diluted earnings per share to decline by about 1% [33][35] - Management remains optimistic about market share growth despite current challenges [35] Other Important Information - The company opened 5 new stores, bringing the total store count to 2,345 [31] - Merchandise inventories increased to $23.9 billion, up approximately $1.1 billion compared to Q3 2023 [32] - Return on invested capital was approximately 31.5%, down from 38.7% in Q3 2023 [32] Q&A Session Summary Question: Impact of hurricane-related sales - Management noted that hurricane-related sales contributed approximately 55 basis points to Q3 comps, with a focus on generators and cleanup products [41][42] Question: Needs-based vs discretionary projects - Management indicated that needs-based projects are being completed, while larger discretionary projects are being deferred due to economic conditions [44] Question: Progress with SRS and cross-selling - Management reported strong progress with SRS, contributing $2.9 billion in Q3, and highlighted the potential for cross-selling opportunities [51][49] Question: Gross margin pressures - Management explained that the primary impact on gross margin was from the mix due to SRS, with an expected annualized impact of about 70 basis points [54][56] Question: Market share performance - Management expressed confidence in gaining market share, particularly in seasonal categories and building materials [61][63] Question: Future housing market outlook - Management discussed the relationship between interest rates and housing turnover, emphasizing the need for stability in rates to encourage home improvement projects [96][97]