Financial Data and Key Metrics Changes - The company reported a revenue of $78.1 million for the first quarter, a decrease of 7.6% compared to the previous year [8] - Gross margin fell to 34.1% from 36.9% in the previous quarter, attributed to a transition phase in production [8][10] - The company experienced an operating loss of €800,000 for the quarter, with net financial costs increasing to $2.9 million from $2.2 million due to currency volatility [10] Business Line Data and Key Metrics Changes - The transition of Natuzzi Edition production from China to Italy impacted gross margins, leading to a temporary decrease in profitability [9][10] - Significant investments of approximately $2 million were made primarily on factory improvements during the quarter [10] Market Data and Key Metrics Changes - Consumer confidence in the US has declined to levels not seen since early 2023, with European confidence down by 3.1 percentage points [11] - The market environment remains challenging, with consumers postponing durable purchases [12] Company Strategy and Development Direction - The company is focusing on enhancing its brand commercial strategy, integrating collection, marketing, and customer experience [16] - Natuzzi plans to strengthen its retail and wholesale channels, with a particular emphasis on the North American market [21] - The company is exploring sustainable production locations for Natuzzi Editions to mitigate tariff impacts [33] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the difficult business environment, exacerbated by US trade duties and geopolitical tensions [16] - The company is committed to protecting margins and is actively reviewing pricing strategies in response to tariffs [33][36] - There is a focus on improving operational efficiency and brand strength to deliver sustainable value to stakeholders [24] Other Important Information - The company has returned to the Salon del Mobile Fair in Milan, unveiling new collections that reflect its evolution as a global lifestyle brand [17] - The introduction of a new software platform for retail performance assessment is showing early signs of improvement [45] Q&A Session Summary Question: Impact of production shift on gross margin - The production shift from China to Italy has caused disruptions, leading to a decrease in gross margin [31] Question: Future gross margin expectations - Management is reviewing pricing strategies and production allocations to protect margins, but specific guidance on future margins was not provided [36] Question: Sustainability of operating expenses - Operating expenses were reduced to $27.4 million, and management expressed confidence in maintaining this level with ongoing cost reviews [39] Question: Early signs of improvement in retail technology - The new performance assessment platform is enabling data-driven decisions and improving store performance [45] Question: Potential of the commercial division - The trade and contract division is seeing growth, with a focus on B2B relationships and bespoke solutions for hospitality and residential sectors [62]

Financial Data and Key Metrics Changes - Consolidated revenue for Q1 2025 was $553.5 million, a 0.2% increase compared to Q1 2024 [13] - Net income attributable to Steve Madden Limited was $42.4 million, or $0.60 per diluted share, compared to $47 million, or $0.65 per diluted share in Q1 2024 [17] - Consolidated gross margin increased to 40.9% from 40.7% in the comparable period of 2024 [15] - Operating income for the quarter was $56.1 million, or 10.1% of revenue, down from $61 million, or 11% of revenue in the prior year [16] Business Line Data and Key Metrics Changes - Wholesale revenue was $439.3 million, up 0.2% compared to Q1 2024, with wholesale footwear revenue at $296.1 million, also a 0.2% increase [13] - Direct to consumer segment revenue declined 0.2% to $112.1 million, with a modest increase in digital sales offset by a decline in brick-and-mortar [14] - Licensing royalty income increased to $2.2 million from $1.8 million in Q1 2024 [14] Market Data and Key Metrics Changes - The company expects to reduce production sourced from China to the mid-teens for fall 2025 and to the mid-single digits by spring 2026 [7] - The company has begun selectively raising prices to consumers and wholesale customers, with an average increase around 10% [49] Company Strategy and Development Direction - The acquisition of Kurt Geiger was highlighted as a significant investment, with the brand showing strong momentum and alignment with the company's strategic initiatives [10] - The company is focusing on diversifying production out of China to mitigate tariff impacts and has successfully negotiated discounts on products from China [6][9] - The company aims to leverage its strong balance sheet and marketing investments to navigate current challenges and capture market share [9][11] Management's Comments on Operating Environment and Future Outlook - Management acknowledged meaningful headwinds due to new tariffs but expressed confidence in the company's ability to adapt and grow [6][11] - The company has withdrawn its 2025 financial guidance due to uncertainty related to tariffs [19] - Management noted that consumer demand remains stable but is being monitored closely due to declining consumer confidence [66] Other Important Information - The company completed a reduction in force that will result in over $12 million in annual savings [9] - Inventory increased to $238.6 million, driven by longer lead times and diversification efforts [18] Q&A Session Summary Question: How is the company handling orders from China? - The company is taking most production that is far along but has negotiated price concessions to mitigate damage [23] Question: What countries is the company moving production to? - Production is being shifted to countries like Cambodia, Vietnam, Mexico, and Brazil, with a focus on Mexico and Brazil for improved speed [26] Question: What is the impact of tariffs on margins? - The company is accepting lower margins when moving production to other countries and is experiencing price pressure due to increased demand [30] Question: How is the company managing inventory growth? - Inventory growth is primarily due to longer lead times and diversification efforts, with confidence in inventory health for Q2 [45] Question: What is the company's strategy regarding price increases? - The company is raising prices selectively, with an average increase around 10%, while monitoring demand elasticity [49] Question: What is the outlook for the handbag category? - The company expects continued pressure in the handbag category due to excess inventory in the channel [87] Question: How is the company addressing private label versus branded performance? - The branded business performed better in Q1, with a focus on growing the international business due to tariff impacts [80]

Group 1 - Apple plans to shift most of its iPhone assembly business for U.S. sales to India by the end of 2026 due to the impact of U.S. government trade conflicts [1] - Currently, approximately 80% of the 60 million iPhones sold annually in the U.S. are assembled in China, with only 20% assembled in India [1] - The value of iPhones assembled in India is projected to reach $22 billion by March 2025, reflecting a 60% increase from the previous year [1] Group 2 - Analysts express skepticism about the feasibility of moving assembly operations to India, citing cost and sales challenges [2] - The cost of assembling iPhones in India is estimated to be 5% to 8% higher than in China, potentially costing Apple $30 billion to $40 billion if fully transitioned [1] - Concerns are raised regarding whether India's infrastructure can handle the increased production volume [1]