Core Insights - Boot Barn's shares surged 34% this week due to tariff relaxation on Chinese imports and positive fiscal fourth-quarter earnings guidance [1][2] - Despite missing revenue expectations, the company's forward guidance and commentary on tariff mitigation led to a significant recovery in stock price [2][5] Financial Performance - For the quarter ending March 29, Boot Barn reported a revenue increase of 16.8% to $453.7 million, with same-store sales growth of 6% and earnings per share of $1.22, reflecting a 27% increase [3][6] - Although the reported results were strong, they fell short of analyst expectations, who anticipated higher consumer demand due to impending tariffs [5] Future Outlook - CEO John Hazen projected 65 to 70 new store openings for the upcoming fiscal year, which would represent a nearly 15% increase in store count compared to the previous year [6] - Management forecasted flat same-store sales at the midpoint for the year ahead, which was considered better than expected given low consumer confidence [6] Tariff Mitigation Strategy - The company plans to reduce its exposure to China, decreasing the percentage of exclusive brands sourced from China from 24% in fiscal 2025 to 12% in 2026 [7] - The recent agreement to roll back retaliatory tariffs will still leave a 30% tariff on Chinese imports, down from 145% [7] Market Position - Despite the recent rally, Boot Barn's stock remains approximately 12% below its all-time highs set in January [9] - The stock trades at around 26.5 times the midpoint of this year's earnings guidance, which is considered high for a fashion-oriented retailer in an uncertain economic climate [9][10]

Financial Performance & Highlights - Expion360's revenue increased to $2 million in Q1 2025, compared to $1 million in Q1 2024[47] - Gross profit increased to $05 million in Q1 2025, compared to $02 million in Q1 2024[47] - Gross margin increased to 245% in Q1 2025, compared to 229% in Q1 2024[47] - Net loss decreased to $(12) million in Q1 2025, compared to $(22) million in Q1 2024[47] - The company closed a $26 million registered direct offering in January 2025[20, 47] Strategic Initiatives & Market Positioning - Began fulfilling purchase orders for Home Energy Storage Solutions ("HESS") in January 2025[20, 26] - Exploring a potential collaboration with NeoVolta Inc to engineer a state-of-the-art battery manufacturing facility[20] - RV industry shipments increased 14% in the first quarter of 2025[48] Technology & Product Development - e360 12 volt 450 Ah battery features new proprietary anode/cathode design that increases energy density by >32%[29] - The company has 11 patents pending across its five market segments[23]

Financial Data and Key Metrics Changes - The company reported a record revenue of €574 million for the second quarter, representing a 19% year-over-year increase and an 18% increase in constant currency, exceeding the annual guidance of 15% to 17% [6][15][22] - Gross margin improved to 57.7%, up 140 basis points year-over-year, driven by better cost absorption and selected price adjustments [16][19] - Adjusted EBITDA for the quarter was €200 million, up 23% year-over-year, with a margin of 34.8%, an increase of 110 basis points [17][22] - Adjusted net profit reached €103 million, a 33% increase year-over-year, with adjusted EPS rising to €0.55 from €0.41 [18][22] Business Line Data and Key Metrics Changes - Revenue growth was balanced between B2B and DTC channels, with B2B up 18% and DTC up 17% in constant currency [8][15] - Closed toe silhouettes saw revenue growth at twice the rate of the overall group, increasing their share of business by 400 basis points [9][12] - The DTC channel's growth was supported by investments in online and owned retail stores, with a membership base exceeding 10 million, up over 25% year-over-year [8][15] Market Data and Key Metrics Changes - In the Americas, revenue increased by 23% in reported currency and 20% in constant currency, with strong growth in both B2B and DTC channels [10][12] - EMEA experienced 12% growth, with DTC outpacing B2B growth by 1.5 times [11][12] - The APAC region was the fastest-growing segment, with a 30% increase driven by strong DTC growth [12][13] Company Strategy and Development Direction - The company aims to expand its retail presence, targeting 100 owned stores by the end of the fiscal year, with a long-term goal of 150 stores by 2027 [9][56] - The strategy includes leveraging vertical integration to mitigate tariff impacts and maintain pricing flexibility [20][21] - The company is focused on capturing market share and shelf space, particularly in regions where competitors are struggling [24][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating macroeconomic uncertainties, viewing the current environment as an opportunity rather than a risk [5][29] - The company anticipates continued strong demand across all product channels and categories, with expectations to meet or exceed financial targets for fiscal year 2025 [22][24] - Management noted that the recent depreciation of the dollar may create headwinds for reported growth and margins in the latter half of the year [21][22] Other Important Information - The company is proactively managing working capital, improving its inventory-to-sales ratio to 36% from 40% year-over-year [19] - Capital expenditures for the quarter were approximately €21 million, with plans to invest around €80 million for the year [19][75] Q&A Session Summary Question: Confidence in outlook despite macro uncertainty - Management views the current situation as an opportunity and is confident in fully offsetting tariff effects, with no changes in consumer demand observed [29][30] Question: DTC strength and implied top-line deceleration - Management acknowledged reduced visibility in the second half due to a heavier DTC mix but emphasized strong order books and continued growth in closed toe products [38][39] Question: Plans for tariff mitigation - The company is less exposed to tariffs due to European sourcing and manufacturing, allowing for pricing flexibility without impacting consumer demand [46][47] Question: Gross margin drivers and future expectations - Management expects gross margin improvements to continue, with better absorption and pricing strategies contributing positively [40][41] Question: Cash flow and uses in the back half of the year - The company prioritizes investments in business growth and debt reduction, with potential for share repurchases considered [74][75] Question: Trends in younger customers and in-person shopping - A global trend of younger consumers preferring in-person shopping was noted, enhancing brand engagement [78] Question: Demand outlook in the back half of the year - Management sees no significant impact on demand from tariffs, maintaining a balance of stock to sales [81][82] Question: Membership growth and its impact on DTC sales - Membership has grown significantly, with members spending 20% more on average, indicating a strong return on investment for marketing efforts [113][129] Question: Pricing strategy and product performance - Consumers are increasingly favoring higher price points, with closed toe products outpacing sandals in growth [131]

Financial Data and Key Metrics Changes - First quarter net sales totaled $239 million, down just 6% in constant currency, with core sales declining 8% year-over-year, showing a sequential improvement from a 12% decline in Q4 [27][28] - Gross margin expanded to 61.1%, an increase of 880 basis points compared to the previous year, primarily due to higher product margins and reduced promotional activity [28][29] - Adjusted operating income improved from a loss of $20 million last year to a profit of $10 million this year, resulting in an adjusted operating margin of 4.3% [30] Business Line Data and Key Metrics Changes - The Fossil traditional watch business posted growth of 7% globally, excluding the impact of the additional retail week and store closures, up from low single-digit growth in Q4 [28] - The Kors brand returned to growth with double-digit gains in Q1, while Armani Exchange also saw double-digit growth, although the Armani brand faced challenges in China [14] Market Data and Key Metrics Changes - The wholesale business for the core brand grew in double digits year-over-year in the U.S., with continued momentum in scalable markets like India [15] - Inventory levels totaled $182 million, down 19% compared to a year ago, indicating effective inventory management [31] Company Strategy and Development Direction - The turnaround plan focuses on three pillars: refocusing on core brands, rightsizing the cost structure, and strengthening the balance sheet [8][19] - The company is investing in brand marketing and enhancing storytelling around major product launches to drive engagement and demand [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to drive growth despite macroeconomic challenges, citing strong demand trends and effective turnaround initiatives [7][24] - The company reiterated its full-year guidance, expecting worldwide net sales to decline in the mid to high teens, while anticipating continued narrowing of year-over-year sales declines [37] Other Important Information - The company has taken steps to reduce SG&A expenses by $17 million, representing an 11% decrease versus the prior year [29] - A sale-leaseback agreement for the European distribution center is expected to close in Q2, bringing in excess of $20 million to the balance sheet [31] Q&A Session Summary Question: How is the company addressing the global tariff environment? - Management highlighted the company's diverse global footprint and established vendor relationships as key advantages in mitigating tariff impacts, with plans to increase prices strategically [33][36] Question: What are the expectations for the remainder of the year? - The company expects to continue narrowing year-over-year sales declines and remains confident in its ability to offset potential tariff impacts, even under challenging macroeconomic conditions [37]

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $43.5 million, down 18.7% year over year, primarily due to lower repeat order volume and disruptions from the e-commerce platform transition [20][21] - Adjusted EBITDA for Q1 was negative $1.6 million, reflecting a margin of negative 3.7%, compared to positive $1.9 million or a 3.5% margin in Q1 2024 [11][26] - Gross margin was 53%, a decline of 260 basis points, influenced by the absence of certain customer fees and reduced inventory sell-through benefits [22] Business Line Data and Key Metrics Changes - Total orders for the quarter were 622,000, a decline of 20% year over year, driven by a smaller active customer base and short-term disruptions during the e-commerce platform migration [20][22] - Active customers totaled 678,000 at quarter end, down 16% compared to the prior year, reflecting the impact of reduced advertising spend in previous years [22] - DTC net revenue per order was $66.49, a slight increase of 0.3%, driven by a change in order mix to include higher-priced items [22] Market Data and Key Metrics Changes - The company is navigating a macroeconomic environment with newly implemented tariffs, taking steps to protect margins through pricing adjustments and supplier renegotiations [9][10] - The transition to a new e-commerce platform is expected to have a long-term positive impact, despite short-term revenue headwinds [6][9] Company Strategy and Development Direction - The company is focused on four strategic pillars: sustained profitability, balance sheet strength, revenue growth, and environmental and human health [5][12] - The e-commerce platform migration is seen as a foundational shift, providing enhanced flexibility and infrastructure for future growth [6][8] - The company aims to expand its product assortment, particularly in clean beauty, personal care, and wellness, to drive improvements in net revenue per order and order frequency [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed disappointment with Q1 results but noted internal progress, including stronger first-order conversion rates and order economics [5][32] - The company expects Q1 to be the lowest revenue quarter of 2025, with revenue improving through the second and third quarters, leading to slight year-over-year growth in Q4 [29][30] - Management remains committed to transparency and accountability while executing strategies for long-term sustainable growth [30] Other Important Information - The company amended its asset-based loan facility, extending its maturity to April 2028 and increasing availability under the facility [12][28] - The company completed asset acquisitions of third-party brands Grab Green and Eat Greens, integrating them into operations and migrating customers to the Grove website [14][15] Q&A Session Summary Question: Marketing efforts and customer acquisition - Management noted that marketing has helped drive new customers to the platform, with advertising spend at 6.4% of sales for the quarter, and they are seeing better returns on new customer acquisition [36][38] Question: Status of the platform transition - Management indicated that they are through the most challenging parts of the platform transition and are seeing week-over-week progress [39][40] Question: Sales trajectory for third-party and owned brands - Management expects a steady improvement in sales, guiding towards year-over-year growth in Q4, with owned brands' revenue percentage decreasing but not significantly impacting margins [41][42]

Financial Data and Key Metrics Changes - Full year fiscal 2025 revenue reached a record $1,900,000,000, reflecting a $1,000,000,000 increase over the last four fiscal years [8] - Earnings per diluted share grew by 23% to $5.88, an increase of $1.08 over the prior year [8] - Fourth quarter total revenue increased by 17%, with earnings per diluted share at $1.22 compared to $0.96 in the prior year [9][10] Business Line Data and Key Metrics Changes - Consolidated same store sales increased by 6% in the fourth quarter, with brick-and-mortar sales up 5.5% and e-commerce sales up 9.8% [9][10] - Merchandise margin expanded by 210 basis points in the fourth quarter and by 130 basis points for the full year [21][25] - Exclusive brand penetration increased to 38.6% for fiscal 2025, with a growth of 1,500 basis points over the last four years [21] Market Data and Key Metrics Changes - The company opened 60 new stores in fiscal 2025, expanding its footprint into four new states, ending the year with 459 stores [14] - The customer loyalty database grew by 14% year-over-year, reaching 9,600,000 active customers [17] Company Strategy and Development Direction - The company plans to open 65 to 70 new stores in fiscal 2026, maintaining a growth rate of 15% [15] - The strategy includes a focus on exclusive brands and managing pricing in response to tariff impacts [12][22] - The company aims to maintain merchandise margin rates while potentially sacrificing some margin to gain market share [23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating ongoing uncertainties related to tariffs and consumer demand [10][29] - The company anticipates a potential decline in merchandise margin in the second half of fiscal 2026 due to tariff impacts [22][29] - Management highlighted the importance of maintaining strong customer relationships and brand loyalty as key drivers for future growth [18][35] Other Important Information - The company has authorized a share repurchase program of up to $200,000,000, reflecting confidence in cash flow generation [34] - The company expects to face a tariff impact of approximately $8,000,000 in fiscal 2026, with strategies in place to mitigate this [11][41] Q&A Session Summary Question: Can you elaborate on April and May same store sales? - Management noted strong sales trends in the first quarter, with a guidance of plus 6% for the entire quarter, consistent with Q4 [38][40] Question: Can you elaborate on pricing power for the Boot Barn brand? - Management indicated that they have seen good pricing power, with typical price increases absorbed by customers, but expect some elasticity of demand due to mid-single-digit price increases [41][42] Question: What about product shortages from China? - Management stated that only 5% of exclusive brand products are sourced from China, with efforts to diversify production to other countries [48][49] Question: How do you plan to leverage SG&A expenses? - Management expects to leverage SG&A through normalized incentive compensation and lower legal expenses, benefiting from new store openings [78] Question: What is the outlook for merchandise margins? - Management anticipates strong margins in the first half of fiscal 2026 but expects pressure in the second half due to tariffs [70][71] Question: How is the competitive landscape behaving? - Management noted that larger competitors remain rational, while smaller mom-and-pop retailers may face challenges due to price increases [90][91]

Financial Data and Key Metrics Changes - Full year fiscal 2025 revenue reached a record $1,900,000,000, marking a $1,000,000,000 increase over the last four fiscal years, driven by 186 new stores and strong same-store sales growth [5][6] - Earnings per diluted share grew by 23% to $5.88, an increase of $1.08 over the prior year [5] - Fourth quarter total revenue increased by 17%, with earnings per diluted share at $1.22 compared to $0.96 in the prior year [6][22] Business Line Data and Key Metrics Changes - Merchandise margin expanded by 130 basis points for the full year and by 210 basis points in the fourth quarter [5][19] - Same-store sales increased by 6% in the fourth quarter, with brick-and-mortar stores up 5.5% and e-commerce up 9.8% [6][22] - Exclusive brand penetration increased to 38.6% for fiscal 2025, with a growth of 1,500 basis points over the last four years [19] Market Data and Key Metrics Changes - The company opened 60 new stores in fiscal 2025, expanding its footprint into four new states, ending the year with 459 stores [11] - The customer loyalty database grew by 14% year-over-year, reaching 9,600,000 active customers [14] Company Strategy and Development Direction - The company plans to open 65 to 70 new stores in fiscal 2026, maintaining a 15% growth rate in new units [12] - The focus remains on expanding exclusive brands while driving growth within third-party partners, with a goal to maintain merchandise margin rates despite potential price increases due to tariffs [20][21] - The company is diversifying its supply chain to reduce reliance on China, with only 5% of exclusive brand goods expected to be sourced from China in the second half of fiscal 2026 [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating ongoing uncertainties related to tariffs and consumer demand, with a strong trend of growth continuing into fiscal 2026 [7][27] - The company anticipates potential merchandise margin pressure in the second half of fiscal 2026 due to tariff impacts, but expects to leverage strong sales growth in the first half [20][27] Other Important Information - The company has authorized a share repurchase program of up to $200,000,000, reflecting confidence in strong cash flow generation [32] - Inventory increased by 25% year-over-year, attributed to new store openings and proactive shipment pull-forwards in anticipation of tariffs [26] Q&A Session Summary Question: Can you elaborate on April and May same-store sales? - Management noted strong sales trends in the first six weeks of Q1, with a consistent performance across major merchandise categories, expecting to maintain positive comp growth [37][38] Question: Can you elaborate on pricing power and tariff headwinds? - Management indicated that tariffs are expected to impact margins by approximately $8,000,000, with price increases anticipated in the summer [39][41] Question: How are new markets performing compared to legacy markets? - New store openings have positively impacted e-commerce sales, with notable increases observed in states like New York [95][96] Question: What is the strategy for managing SG&A expenses? - Management expects to leverage SG&A through normalized expenses and increased store count, which helps cover fixed costs [72][77] Question: How does the company view the competitive landscape? - Management has not observed significant changes in competitor behavior, noting that larger competitors remain rational while smaller players may face challenges [90][91]

Summary of Solventum (SOLV) 2025 Conference Call Company Overview - **Company**: Solventum (SOLV) - **Date of Conference**: May 13, 2025 - **Key Speakers**: Brian Henson (CEO), Wade McMillan (CFO) Key Points Company Progress and Transformation - The company has experienced significant transformation since going public over a year ago, with rapid changes in leadership and organizational structure [5][6][7] - A focus on cultural change has led to increased autonomy, quicker decision-making, and accountability within the organization [6][7] - The company is in the process of a significant divestiture related to purification and filtration, which is expected to enhance operational focus [6][7] Financial Performance - The company reported a Q1 growth of 4.3%, which was adjusted to 2.5% when accounting for one-time items related to the separation and ERP cutover [13][15] - The underlying business strength is attributed to commercial changes and new product launches, leading to increased confidence and raised guidance for the year [14][15] - The growth rate of 2.5% is more than double the growth rate for all of 2024, indicating strong performance across all segments [15] Market Dynamics - The dental market is currently the only challenged segment, but it remains stable [13] - The company is experiencing broad-based growth across its four segments, with a strong start to the year [15] ERP Implementation - The company has developed a robust mitigation strategy for the ERP implementation, focusing on risk management and customer interaction [21][22] - The implementation is ongoing, with positive early indicators, and the company is prepared for potential challenges [24][25] Tariff Impact - The company anticipates benefits from the reduction of tariffs, which previously impacted earnings per share (EPS) guidance [29][30] - The tariff impact was significant, with China accounting for approximately 50% of the overall tariff burden [30] - The company expects to see a positive effect on EPS as tariffs decrease, although the exact financial impact is still being assessed [32] MedSurg Business Overview - The MedSurg business is divided into wound care ($1.8 billion) and infection prevention/surgical solutions ($2.8 billion) [39] - The company holds a significant market share in negative pressure wound therapy, with growth opportunities in both traditional and single-use categories [45][46] - The specialized sales organization is expected to drive growth in the advanced wound care segment, particularly through new technologies [47][56] Growth Drivers - Key growth drivers identified include IV site management and sterilization assurance, with a focus on digitizing sterilization processes to improve market penetration [60][62] - The Tegaderm product line, enhanced with FDA-approved infection reduction claims, is positioned for growth through upselling to existing customers [68][69] Capital Allocation and Future Strategy - Proceeds from the purification and filtration divestiture will primarily be used to pay down debt, with future considerations for M&A opportunities [73][75] - The company is focused on enhancing its commercial organization, introducing new products, and pursuing inorganic growth through acquisitions [75] Additional Insights - The company has undergone significant changes in its commercial organization, which has been carefully managed to avoid disruptions [70][71] - The leadership is optimistic about the future, with a clear strategy for growth and market development [75]

Financial Data and Key Metrics Changes - First quarter revenue was $134 million, at the high end of guidance of $125 million, driven by stronger sell-through [13] - Non-GAAP operating expenses decreased by 26% year over year to $62 million from $83 million [14][18] - GAAP and non-GAAP loss per share were $0.30 and $0.12 respectively, with adjusted EBITDA loss reduced by nearly 50% year over year to negative $16 million [16][19] - Inventory at the end of the quarter was $96 million, a 27% decrease year over year [16] Business Line Data and Key Metrics Changes - Revenue from the retail channel was $94 million, accounting for 70% of Q1 2025 revenue, up from 68% in Q1 2024 [14] - Revenue from the GoPro.com channel, including subscription and service revenue, was $40 million, representing 30% of Q1 2025 revenue, down from 32% in Q1 2024 [14] - Subscription and service revenue grew 4% year over year to $27 million, primarily due to a 5% increase in ARPU [15] Market Data and Key Metrics Changes - Sell-through was approximately 440,000 units, down from 530,000 units in the prior year period, primarily due to decreases in Asia Pacific driven by macroeconomic issues and competition [17] - In the United States, sell-through was down 10% year over year, while sell-in was up 7% year over year [28] Company Strategy and Development Direction - The company plans to continue making strategic investments in product innovation to return to growth and diversify its supply chain, including exploring domestic production [6][10] - GoPro is focused on launching new products while preserving cash to repay debt and drive growth in 2025 and 2026 [24][23] - The company aims to introduce the Max 2 360 camera in 2025 and expects to end 2025 with 2.4 million subscribers [22][23] Management's Comments on Operating Environment and Future Outlook - Management noted that the operating model is becoming leaner and more efficient, positively impacting financial results [11] - The company expects revenue for Q2 2025 to be $145 million, down 22% year over year, with unit sell-through expected to decrease by 20% [21] - Management highlighted that the macro environment, competition, and delays in new product launches are expected to impact units and revenue in 2025 [22] Other Important Information - The company reported a strong aggregate retention rate for subscriptions at 70%, up from 69% both sequentially and year over year [8] - GoPro is actively managing its balance sheet and expects to reduce inventory sequentially by $20 million [20] Q&A Session Summary Question: Can you help us understand the sources of stronger sell-through in the quarter? - Management indicated that there was no pull-forward demand; sales were linear throughout the quarter [27] Question: What happened with the sell-through in the U.S. and Asia? - Management noted that Asia was down 54% due to macroeconomic issues and competition, particularly in China, Japan, and South Korea [30] Question: Can you elaborate on the tariff situation? - Management confirmed that the tariff impact on cameras entering the U.S. is zero due to diversified production outside of China [35] Question: What are the dynamics in Asia currently? - Management highlighted that competition and macroeconomic issues are affecting sales in Asia, with a nationalistic trend to buy local impacting performance [39]

Financial Data and Key Metrics Changes - For Q1 2025, total net sales were $190.7 million, in line with guidance, with a gross margin of 40.3% and adjusted EBITDA at a negative $4.7 million, both better than expected [7][22][20] - Adjusted net loss was $17.8 million or $0.33 per share, which was also better than expectations [22] - Cash and cash equivalents stood at $25.9 million, total debt increased to approximately $202.2 million, and total company liquidity decreased to $90.9 million [23][24] Business Line Data and Key Metrics Changes - Direct to consumer sales accounted for 22% of gross sales, comparable to the previous year [21] - Shipping delays affected sales of the Pop Yourself line in Q1, indicating operational challenges [22] Market Data and Key Metrics Changes - In the U.S. market, year-to-date point of sale (POS) was down mid-single digits, but recent trends showed low single-digit growth in the past four weeks [35][37] - In Europe, POS grew by 8%, significantly outpacing the overall toy market growth of 1% [8][38] Company Strategy and Development Direction - The company aims to diversify into sports, gaming, and music while enhancing retail opportunities and experiential engagements [6] - A focus on tariff mitigation strategies has been implemented, including sourcing diversification and cost discipline measures [10][11] - The company is committed to maintaining pricing to ensure accessibility for fans, despite rising costs [13][34] Management's Comments on Operating Environment and Future Outlook - Management acknowledged intensified pressures from tariffs and selective consumer behavior, leading to the withdrawal of the 2025 outlook [9][24] - The company remains confident in its ability to offset incremental tariff costs through strategic actions [25][26] - Management emphasized the importance of partnerships and community engagement in navigating the current macro environment [28] Other Important Information - The company has reduced its global workforce by over 20% as part of cost-saving measures [12][46] - A cross-functional tariff task force has been established to address the impact of tariffs on operations [10] Q&A Session Summary Question: Can you offer extra color on mitigation efforts regarding price adjustments and retailer sentiment? - Management indicated that pricing decisions were made in January, and discussions with retail partners have been positive, supporting the decision to maintain price points [32][33] Question: Can you discuss POS trends and expectations for the upcoming months? - Management noted that while the U.S. market faced challenges, recent trends showed improvement, and Europe continued to perform well with high single-digit POS growth [35][38] Question: Clarification on pricing plans and margin drivers? - Management confirmed that planned price adjustments were not in direct response to tariffs and that gross margins exceeded expectations due to slight improvements across various metrics [42][44] Question: Regarding the headcount reduction, how should it be viewed moving forward? - Management explained that the majority of the headcount reduction has already occurred, with ongoing benefits expected throughout the year [46][48]