Financial Data and Key Metrics Changes - For Q3 2025, net sales were $758 million, with operating income of $29 million and earnings per share (EPS) of $0.32, compared to EPS of $1.62 in the previous year [7][16] - Year-to-date sales reached nearly $2 billion, with an operating income of $59 million, representing a 3% operating margin, and year-to-date EPS of $0.75 [7][10] - Adjusted Q3 EPS was $0.74, down from $1.64 a year ago, reflecting significant one-time charges [16][28] Business Line Data and Key Metrics Changes - U.S. Retail segment saw a 3% increase in net sales, with a positive 2% comparable sales growth [18][19] - U.S. Wholesale segment experienced a decline in sales, particularly in the Simple Joys brand, while International segment sales increased by 5% [25][26] - Adjusted operating income declined by nearly $40 million, with U.S. Retail and U.S. Wholesale contributing equally to this decline [16][17] Market Data and Key Metrics Changes - International sales were up 5%, with strong performance in Mexico (+16% comp) and a 10% increase in sales to international partners [26] - U.S. Retail's average unit retail (AUR) increased in the mid-single digits, contributing to a low single-digit increase in average transaction values [14][19] - The impact of higher tariffs on gross margin was approximately $20 million in Q3, with gross margin decreasing to 45.1% [13][44] Company Strategy and Development Direction - The company is focused on transforming its business model, aiming for sustainable and profitable growth while managing costs and enhancing productivity [4][32] - Plans include closing 150 North American stores, which is expected to lead to a sales transfer to nearby stores and e-commerce channels [36][68] - The company is also investing in demand creation and marketing, with a planned increase of nearly 20% in marketing spend for 2026 [40][41] Management's Comments on Operating Environment and Future Outlook - Management highlighted the significant impact of tariffs, estimating an annualized incremental impact of $200 million to $250 million for 2025 [44] - The company has not reinstated sales and earnings guidance due to ongoing uncertainties regarding tariffs and consumer response to price increases [45][52] - Management expressed confidence in achieving sales growth in 2026, primarily driven by price increases rather than unit growth [75][76] Other Important Information - The company ended Q3 with $184 million in cash and a strong liquidity position, with net inventories up 8% year-over-year [27][28] - The company is pursuing a new credit facility and evaluating opportunities to refinance existing senior notes [29][30] Q&A Session Summary Question: What is happening with the Simple Joys brand and its future? - Management indicated that Simple Joys will be reduced in significance as the focus shifts to core brands like Carter's and OshKosh, which are expected to grow on platforms like Amazon [61][62] Question: Can you elaborate on the store closures and expected sales transfer? - The company expects a 20% transfer rate of sales to nearby stores and e-commerce channels, with closed stores generating about $110 million in revenue [68] Question: What is the preliminary view on sales growth for 2026? - Management expects sales growth to be higher than typical due to price increases, with a focus on maintaining competitiveness in the market [75][76]

Financial Data and Key Metrics Changes - Brunswick reported third quarter sales of $1.4 billion, a 7% increase year-over-year, with adjusted earnings per share (EPS) of $0.97, impacted by variable compensation and tariffs but showing growth excluding those items [5][20][21] - Free cash flow for the third quarter was $111 million, totaling $355 million year-to-date, marking a $348 million improvement over the same period last year [5][18][21] - The company is on track to retire approximately $375 million of debt by year-end 2025, increasing its debt reduction guidance for the year to $200 million [18][19] Business Line Data and Key Metrics Changes - The propulsion business saw a 10% sales growth, with all product categories (outboard, sterndrive, and controls rigging) performing well [22] - Engine Parts and Accessories segment sales increased by 8%, benefiting from strong boater participation and favorable weather [22][24] - The boat segment reported a 4% sales growth, with premium brands performing particularly well, and Freedom Boat Club contributing approximately 13% of segment sales [25][26] Market Data and Key Metrics Changes - U.S. retail powerboat industry was down over 9% year-to-date, but Brunswick's brands outperformed the industry, maintaining a stable market share of 49.4% in the outboard engine segment [12][13] - Dealer inventory levels are historically low, with Brunswick's global pipeline down over 2,200 units compared to 2024 [14][15] - The company anticipates a modestly stronger retail market in 2026, driven by interest rate reductions and macroeconomic stability [34][35] Company Strategy and Development Direction - Brunswick is focusing on financial and operational efficiencies, including consolidating boat manufacturing facilities to reduce costs and improve profitability [9][17] - The introduction of innovative products, such as the CIMRAD AutoCaptain autonomous boating system, reflects the company's commitment to technological advancement and market leadership [32][33] - The company aims to maintain a competitive edge through its vertically integrated U.S. manufacturing base and tariff mitigation strategies [11][34] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the retail environment, noting a positive inflection point and stable dealer sentiment despite previous macroeconomic shocks [42][43] - The company expects to continue generating strong free cash flow and is comfortable with its full-year EPS guidance despite increased tariff impacts [26][35] - Management highlighted the importance of ongoing product development and operational efficiency improvements in driving future growth [68][89] Other Important Information - Brunswick's liquidity remains strong, with $1.3 billion available, including access to an undrawn revolving credit facility [19] - The company has seen significant improvements in gross margins and operational performance through strategic initiatives [25][68] Q&A Session Summary Question: Retail outlook and 2026 expectations - Management noted that retail performance has stabilized, with premium and core products outperforming value segments, and expressed confidence in a flat to slightly up market for 2026 [42][43] Question: Impact of U.S. tariffs on competitors - Management confirmed that competitors are beginning to implement price increases in response to tariffs, while Brunswick continues to gain market share [52][54] Question: Navico's operating earnings and margin expansion - Management confirmed that Navico's margins would have improved absent the impacts of tariffs and variable compensation, with expectations for further expansion as headwinds are lapped [62][68] Question: Inventory levels and market share growth - Management indicated that dealer inventory levels are healthy, with a focus on maintaining fresh inventory as they enter 2026, and expressed confidence in continued market share growth for Mercury [85][86] Question: 2026 guidance and destocking effects - Management clarified that mid to high single-digit revenue growth for 2026 will be driven by a combination of market share gains, pricing actions, and improved discounting, with minimal impact from lapping destocking [94][95]

Financial Data and Key Metrics Changes - The company reported consolidated net revenues of $777.3 million for Q4, with adjusted diluted EPS of $0.71, reflecting a significant increase of 150% year-over-year [6][14] - Consolidated adjusted EBITDA increased by 33.1% year-over-year, while operating income improved significantly from the previous year, which had been impacted by an impairment charge [13][14] - The net leverage ratio improved to 3.1 at the end of the year, down from 4.8 at the end of the previous quarter [17] Business Line Data and Key Metrics Changes - The motorhome RV segment experienced double-digit top-line growth driven by higher unit volume and favorable product mix, particularly from Grand Design's motorized Lineage lineup and Newmar [15][16] - The towable RV segment saw a slight revenue decline year-over-year, attributed to a shift towards more value-oriented consumers, although operating income margin increased by 210 basis points [15] - The marine segment reported double-digit revenue growth, with both Chris-Craft and Barletta managing production effectively despite industry headwinds [16][17] Market Data and Key Metrics Changes - Retail RV registrations declined in August, but dealer inventories improved, contributing to a healthier channel [7][8] - The company expects wholesale RV shipments for calendar 2025 to be between 320,000 and 340,000 units, with a forecast of 315,000 to 345,000 units for calendar 2026 [8][19] - The inventory turn rate was 1.9 times at the end of Q4, with a target of achieving higher turns over time [9] Company Strategy and Development Direction - The company is focused on revitalizing the Winnebago motorhome and towables lineup, aligning operations with market demand, and streamlining cost structures [24][25] - Strategic initiatives include new product introductions, improved dealer partnerships, and operational efficiencies to drive growth in the Winnebago-branded motorhomes and travel trailers [12][19] - The company aims for a net leverage ratio of approximately 2x by the end of fiscal 2026, prioritizing improvements in growth and net leverage [23] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for fiscal 2026, emphasizing execution over assumptions about market recovery, with expectations for consolidated net revenues between $2.75 billion and $2.95 billion [19][20] - The company anticipates flat to modest low single-digit growth in the towable RV segment, while the marine segment is expected to see a decline in sales due to soft retail trends [22] - Management highlighted the importance of controlling internal factors to drive profitability, regardless of market conditions [51] Other Important Information - The company returned $88.9 million to shareholders in fiscal 2025, including $50 million in share repurchases and $38.9 million in dividends, marking the 45th consecutive quarterly dividend payment [17][18] - The company is actively addressing tariff challenges through supplier engagement and sourcing strategies [19] Q&A Session Summary Question: Can you discuss the impact of tariffs on EPS guidance? - Management indicated that the guidance includes the anticipated full impact of tariffs, which remains dynamic, and they are actively finding ways to mitigate tariff exposure [27][28] Question: What are the assumptions for retail and wholesale shipments in 2025 and 2026? - Management confirmed expectations for a significant inventory reduction in 2025 and a flat retail environment for 2026, with no significant dealer destocking anticipated [33][34] Question: How does the company view market share trends, especially with a shift towards low-end units? - Management acknowledged pressure on market share in the Class B and fifth wheel categories but expressed confidence in stabilizing and growing share through strategic initiatives [43][47] Question: What are the expectations for warranty expenses in FY2026? - Management expects warranty expenses to remain consistent with FY2025, with no major drivers anticipated to change the trend [75][76]

Financial Data and Key Metrics Changes - The company reported adjusted diluted earnings per share of $0.71 on net revenues of $777.3 million, with a significant increase in adjusted EBITDA by 33.1% year over year [9][18][25] - Consolidated gross profit increased due to higher revenues, although gross margin declined primarily due to costs associated with the ongoing transformation of the Winnebago branded businesses [18][21] - The net leverage ratio improved to 3.1 at the end of the year, a substantial improvement from 4.8 at the end of the third quarter [22] Business Line Data and Key Metrics Changes - The Towable RV segment saw a slight revenue decline year over year, reflecting a shift towards more value-oriented consumers, but operating income margin increased by 210 basis points due to targeted price increases and improved efficiencies [19] - The Motorhome RV segment experienced double-digit top-line growth driven by higher unit volume and favorable mix, particularly from Grand Design RV's motorized Lineage lineup [20] - The Marine segment reported double-digit revenue growth, with both Chris Craft and Barletta managing production effectively in a cautious retail environment [21] Market Data and Key Metrics Changes - RV retail registrations declined in August, but retail demand remained stable on a trailing three-month basis, with dealer inventories improving [10] - Wholesale RV shipments are expected to be in the range of 315,000 to 345,000 units for calendar year 2026, with a median estimate of 330,000 units [11][25] - The company anticipates a decline in sales in the Marine segment due to continuing soft retail trends [28] Company Strategy and Development Direction - The company is focused on executional drivers that contribute to volume, share, and profitability, with new product introductions and improved dealer partnerships expected to benefit the Winnebago branded motorhomes business [16] - Strategic actions are being taken to revitalize the Winnebago Motorhome and Towables lineup, align operations with market demand, and streamline the cost structure [30] - The company aims for a net leverage ratio approximating two times by the end of fiscal year 2026, prioritizing improvements to growth and net leverage [29] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for fiscal year 2026, grounded in execution rather than assumptions about market recovery, with expectations for improved results driven by strategic initiatives [30] - The company is closely monitoring the tariff environment and has implemented proactive strategies to mitigate tariff challenges [24] - Management indicated that the RV consumer base is becoming younger and more diversified, which is beneficial for the industry [63] Other Important Information - The company returned $88.9 million to shareholders in fiscal year 2025, consisting of $50 million in share repurchases and $38.9 million in dividends [22] - The company repaid $159 million of debt during the past year, reinforcing its commitment to shareholder value [22] Q&A Session Summary Question: Can you talk about the unmitigated tariff expenses? - Management indicated that the guidance includes the anticipated full impact of tariffs on business performance, acknowledging the dynamic nature of the tariff environment [36] Question: What should be expected for retail and wholesale shipment numbers? - Management expects a relatively flat retail and wholesale shipment environment, with a focus on actions within their control to drive stronger results [40][49] Question: How does the company view market share trends? - Management acknowledged recent pressure on market share in certain segments but expressed confidence in plans to stabilize and grow share in fiscal year 2026 [62] Question: What are the expectations for warranty expenses in FY 2026? - Management expects consistent warranty rates in FY 2026, with no major drivers for change identified at this time [96]

Core Insights - General Motors reported strong third-quarter results for 2025, with revenue slightly decreasing year-over-year, beating consensus estimates for both revenue and earnings per share (EPS) [1] - The company raised its full-year guidance, reflecting confidence in its performance trajectory [1] Financial Performance - Third-quarter revenue was $48.59 billion, a slight decrease from $48.76 billion in the previous year, and adjusted EPS reached $2.80, surpassing the anticipated $2.31 despite a 5% year-over-year decline [1][2] - Net income for the quarter was $1.32 billion, significantly down from $3 billion the previous year, impacted by changes in electric vehicle strategy and production adjustments [2] - Adjusted earnings before interest and taxes (EBIT) totaled $3.38 billion, down from $4.12 billion a year prior [3] Market Position - GM's market share in the U.S. reached 8.3%, the highest since 2017, with quarterly U.S. sales increasing by 8% to 710,347 units [3] Guidance Updates - The company raised its full-year adjusted EBIT guidance to a range of $12 billion to $13 billion, up from $10 billion to $12.5 billion [4] - Adjusted automotive free cash flow is now expected to be between $10 billion and $11 billion, with adjusted diluted EPS projected between $9.75 and $10.50 [4] Tariff Mitigation Strategies - GM expects annual tariff costs for 2025 to be between $3.5 billion and $4.5 billion, a reduction from earlier forecasts of up to $5 billion [5] - The company expressed gratitude for recent tariff relief efforts aimed at domestic manufacturers, which are expected to enhance competitiveness by lowering domestic manufacturing costs [5]

Core Viewpoint - General Motors (GM) is increasing its full-year adjusted earnings forecast due to better-than-expected third-quarter performance, with shares rising over 9% prior to market opening Group 1: Earnings Performance - For the third quarter, GM reported earnings of $1.33 billion, or $1.35 per share, compared to $3.06 billion, or $2.68 per share, in the same period last year [5] - Adjusted earnings were $2.80 per share, surpassing analysts' expectations of $2.28 per share [6] - Revenue for the quarter reached $48.59 billion, exceeding Wall Street's estimate of $44.27 billion [6] Group 2: Tariff Impact and Mitigation - GM has reduced its full-year gross impact expectations from tariffs to a range of $3.5 billion to $4.5 billion, down from a previous guidance of $4 billion to $5 billion [2] - The company anticipates that its tariff mitigation actions will offset approximately 35% of the impact due to a lower tariff base [2] - President Trump extended tariff relief for domestic automakers on auto parts until 2030, which is part of a broader effort to promote American manufacturing while mitigating costs from import taxes [3][4] Group 3: Future Outlook - GM now forecasts full-year adjusted earnings between $9.75 and $10.50 per share, an increase from the prior outlook of $8.25 to $10 per share [6] - Analysts predict full-year earnings of $9.46 per share, indicating a positive outlook for GM's financial performance [6]

Core Insights - Lovesac has implemented a four-pronged tariff strategy to mitigate tariff costs, which includes negotiating with suppliers, diversifying the supply base, raising prices, and cutting costs throughout the business [2][7]. Group 1: Tariff Strategy Implementation - The initial focus of the strategy was on negotiating new agreements with longstanding suppliers [3]. - The company aims to reduce its production share in China to the mid-teens percentage by the fiscal year ending February 2026 [3]. - U.S. tariffs have also affected sourcing from other countries like Vietnam, Malaysia, and Indonesia, where tariffs have increased from 10% to around 20% [4]. Group 2: Pricing and Cost Management - Price increases were implemented after analyzing Lovesac's pricing compared to competitors [5]. - The company is also focusing on cost savings through improvements in logistics, including inbound transportation and outbound logistics [5][6]. - Optimization efforts for warehousing and last-mile shipping are currently underway [6]. Group 3: Future Tariff Challenges - Tariff pressures are expected to increase, with potential new tariffs of 25% on upholstered furniture announced by President Trump, set to rise to 30% in January 2026 [6].

Financial Data and Key Metrics Changes - Consolidated net sales decreased by 8.9%, with organic net sales declining by 16% when excluding Olive & June [39] - Non-GAAP adjusted EPS was $0.59, down from $1.21 in the same period last year, primarily due to lower adjusted operating income and higher interest expense [48] - Free cash flow was positively impacted by $23 million year-to-date, despite a cash flow drag of approximately $34 million from higher tariff payments [20] Business Line Data and Key Metrics Changes - Beauty and Wellness segment saw an organic sales decline of 18.2%, with approximately 5 percentage points attributed to tariff-related disruptions [43] - Home and Outdoor segment net sales declined by 13.7%, with about 4 percentage points of this decline due to tariff-related disruptions [41] - Olive & June contributed $33.4 million in revenue, exceeding expectations and helping to offset declines in other areas [30][44] Market Data and Key Metrics Changes - DTC revenue grew by 15% year-over-year, indicating strong consumer engagement despite broader market challenges [20] - International sales in the Beauty and Wellness segment were affected by government incentives favoring localized fulfillment in China, impacting global brands like Braun [29] Company Strategy and Development Direction - The company aims to re-energize its brands and focus investments on those with the most promise, emphasizing consumer-centric strategies [13][14] - Plans include improving asset efficiency, maintaining shareholder-friendly policies, and enhancing working capital efficiency [16][17] - The company is committed to reducing organizational complexity and empowering teams to make quicker decisions [11][12] Management's Comments on Operating Environment and Future Outlook - Management acknowledges ongoing challenges due to tariffs and changing consumer behaviors but remains optimistic about the potential for recovery and growth [18][40] - The focus will be on balancing short-term adjustments with long-term investments in innovation and growth [28][50] - Management expects a gradual improvement in financial performance as transitory impacts from tariffs dissipate [70][71] Other Important Information - The company is actively working on tariff mitigation strategies, including supplier diversification and cost management [25][38] - The effective tax rate is expected to range from 15% to 16% for the full fiscal year, with adjustments in Q3 and Q4 [55] Q&A Session Summary Question: Portfolio evaluation and divestiture opportunities - Management sees promise in all brands but is evaluating the portfolio for long-term planning [67] Question: Earnings base for future growth - Management believes there are transitory impacts affecting current earnings, which should improve in the second half of the year [70][71] Question: Revitalizing brands and restoring growth - Key steps include focusing on consumer insights, driving innovation, and improving decision-making processes [79] Question: Optimal leverage and capital structure - Management aims for leverage closer to two times and is in discussions with lenders for potential flexibility [83] Question: Growth opportunities in categories - Management is exploring growth opportunities across existing and potential new categories [88]

Financial Data and Key Metrics Changes - Consolidated net sales decreased by 8.9%, with organic net sales declining by 16% when excluding Olive & June [39] - Non-GAAP adjusted EPS was $0.59 compared to $1.21 in the same period last year, reflecting lower adjusted operating income and higher interest expense [48] - Free cash flow was positive at $23 million year-to-date despite a cash flow drag of approximately $34 million from higher tariff payments [20] Business Line Data and Key Metrics Changes - Beauty and Wellness segment saw an organic sales decline of 18.2%, with approximately five percentage points attributed to tariff-related disruptions [43] - Home and Outdoor segment net sales declined by 13.7%, with about 4 percentage points of this decline due to tariff-related disruptions [41] - Olive & June contributed $33.4 million in revenue, exceeding expectations and helping to offset declines in other areas [30][44] Market Data and Key Metrics Changes - DTC revenue grew by 15% year-over-year, indicating strong consumer engagement despite broader market challenges [20] - International sales in the Beauty and Wellness segment were impacted by government incentives favoring localized fulfillment in China, affecting global brands like Braun [29] Company Strategy and Development Direction - The company aims to re-energize its brands and focus investments on those with the most promise, emphasizing consumer-centric strategies [13][14] - Plans to improve asset efficiency and maintain shareholder-friendly policies, including reducing debt and considering future acquisitions [17] - The leadership intends to simplify operations and enhance decision-making speed to foster innovation and responsiveness to market needs [12][11] Management's Comments on Operating Environment and Future Outlook - Management acknowledges ongoing challenges from tariffs and consumer caution but expresses optimism about the potential for recovery and growth [17][40] - The company is focused on balancing short-term adjustments with long-term investments in innovation and growth [28] - Management expects a gradual improvement in financial performance as transitory impacts from tariffs and market conditions dissipate [69][70] Other Important Information - The company reported a GAAP operating loss of $315.7 million, primarily due to non-cash asset impairment charges [45] - The effective tax rate decreased to 6.4% due to the tax effect of impairment charges and increased tax benefits for discrete items [48] Q&A Session Summary Question: Portfolio evaluation and divestiture opportunities - The CEO expressed excitement about the portfolio and noted that all brands have promise, but evaluations for potential divestitures are ongoing [61][66] Question: Earnings base for future growth - Management indicated that current earnings are impacted by transitory factors, and they expect improvements in the second half of the year to serve as a foundation for future growth [68][70] Question: Revitalizing brands and restoring growth - The CEO emphasized the importance of consumer insights, innovation, and improving decision-making processes to revitalize brands and drive growth [77][78] Question: Optimal leverage and capital structure - Management aims for leverage closer to two times and is in discussions with lenders to ensure flexibility in the capital structure [82] Question: Growth opportunities in categories - The CEO acknowledged potential growth opportunities in both existing and new categories, emphasizing a consumer-centric approach [87]

Financial Data and Key Metrics Changes - Consolidated net sales decreased by 8.9%, with organic net sales declining by 16% when excluding Olive & June [44] - Non-GAAP adjusted EPS was $0.59, down from $1.21 in the same period last year, primarily due to lower adjusted operating income and higher interest expense [53] - Consolidated gross profit margin decreased by 140 basis points to 44.2%, impacted by higher tariffs and increased retail trade expenses [49] Business Line Data and Key Metrics Changes - Beauty and Wellness segment saw organic sales decline of 18.2%, with approximately 5 percentage points attributed to tariff-related disruptions [48] - Home and Outdoor segment net sales declined by 13.7%, with about 4 percentage points of this decline due to tariff-related disruptions [46] - Olive & June contributed $33.4 million in revenue, exceeding expectations and helping to offset some declines in other segments [49][48] Market Data and Key Metrics Changes - DTC revenue grew by 15% year over year, indicating strong consumer engagement despite broader market challenges [24] - International sales in the Beauty and Wellness segment were affected by government incentives favoring localized fulfillment in China, impacting global brands like Braun [32] Company Strategy and Development Direction - The company aims to re-energize its brands and focus investments on those with the most promise, emphasizing consumer-centric strategies [18] - Plans include improving asset efficiency, maintaining shareholder-friendly policies, and investing in core business areas while reducing debt [21] - The leadership is focused on simplifying operations and enhancing decision-making speed to drive innovation and market responsiveness [16] Management's Comments on Operating Environment and Future Outlook - Management acknowledges ongoing challenges from tariffs and consumer behavior shifts but remains optimistic about long-term growth potential [21][39] - The company is committed to balancing short-term adjustments with long-term investments in innovation and growth [31] - Management expects a gradual improvement in financial performance as transitory impacts from tariffs and market conditions dissipate [78] Other Important Information - The company is actively working on tariff mitigation strategies, including supplier diversification and cost management measures [28] - The leadership transition is seen as a positive step, with new CEO Scott Azzell bringing a competitive and consumer-focused approach [13][14] Q&A Session Summary Question: How does the company view its portfolio and potential divestitures? - The new CEO sees promise in all brands but is evaluating the portfolio for long-term planning [75] Question: What are the expectations for future earnings growth? - Management believes there are transitory impacts affecting fiscal 2026 that will not persist into fiscal 2027, providing a foundation for future growth [78] Question: What steps are needed to revitalize brands that are not growing? - Key steps include focusing on consumer insights, driving innovation, and improving decision-making processes [86] Question: What is the optimal leverage and capital structure for the business? - The company aims for leverage closer to two times and is in discussions with lenders for potential flexibility [90]