Core Insights - Deckers Outdoor Corporation's performance is primarily driven by strong consumer demand for its flagship brands, HOKA and UGG, with year-over-year sales growth of 10% and 3.6% respectively in Q4 FY25 [1][9] Brand Performance - HOKA's sales reached $2.2 billion in FY25, reflecting a 23.6% year-over-year increase, supported by new product launches and international expansion, particularly in EMEA and China [4][2] - UGG generated $2.5 billion in sales for FY25, marking a 13.1% year-over-year growth, with a focus on expanding its product line beyond cold-weather offerings [4][3] International Growth - HOKA's international revenues grew by 39% year-over-year, now accounting for 34% of total brand sales, while UGG's international revenues increased by 20%, representing 39% of total sales [4][2] Competitive Landscape - Key competitors in brand innovation include Wolverine World Wide, Inc. and Urban Outfitters Inc., with Wolverine's Saucony and Merrell brands showing strong revenue growth [5][6] - Urban Outfitters' brand portfolio also demonstrated positive performance, with notable increases in net sales for its brands [7] Financial Performance and Valuation - Deckers' shares have declined by 50% year-to-date, compared to a 17.6% decline in the industry [8] - The company trades at a forward price-to-earnings ratio of 16.45X, slightly below the industry's average of 17.01X [10] - Zacks Consensus Estimate indicates a projected earnings decline of 4.4% for FY26, with a potential recovery of 9.1% in FY27 [11]

Financial Data and Key Metrics Changes - The preliminary voting results indicated that all director nominees were duly elected to serve until the 2026 annual meeting [21] - The selection of Ernst and Young LLP as the independent registered public accounting firm for the fiscal year ending 12/31/2025 was ratified by approximately 100% of the votes cast [22] - A nonbinding advisory vote on the compensation of the company's named executive officers was approved by approximately 94% of the votes cast [22] Business Line Data and Key Metrics Changes - The company launched several new products in the first quarter, including two new full sugar Monster flavors and various strategic brands in EMEA [27][28] - The Ultra family of products has been growing at over 20% [45] - The company is expanding its Predator brand in various markets, including a national rollout in China [29][56] Market Data and Key Metrics Changes - According to Nielsen, sales in the energy drink category increased by 12.5% year-over-year, with Monster's sales increasing by 10.1% [31] - In Mexico, Monster's sales increased by 17.6%, and its market share rose to 31.2% [34] - In EMEA, the energy drink category grew approximately 13.6% year-over-year, with Monster's market share increasing in several countries [35][36] Company Strategy and Development Direction - The company continues to focus on expanding its energy drink category while exploring opportunities in other beverage categories, including alcoholic beverages [52] - The upcoming launch of Blind Lemon, a new hard lemonade line, is part of the strategy to boost profitability in the Alcohol Brands division [53] - The company is optimistic about the long-term prospects for the Monster brand in China and is excited about the rollout of Predator [56] Management's Comments on Operating Environment and Future Outlook - Management noted a strong recovery in the U.S. energy category, driven by functionality, value proposition, and diverse offerings [43][44] - The company is focused on long-term value creation opportunities and optimizing trade spend [51] - Management expressed confidence in the company's growth strategy and innovation pipeline for 2026 and beyond [62] Other Important Information - The company highlighted that Nielsen data does not capture all sales channels, including foodservice and e-commerce [30] - The company acknowledged the impact of increased input costs and tariffs on aluminum but does not expect a significant impact on gross margins in the short term [49][50] Q&A Session Summary Question: Key factors behind the recovery and sustainability of revenue growth in the U.S. Energy category - Management attributed recovery to functionality, affordable value, image, and diverse offerings appealing to a broad consumer base [43][44] Question: Drivers of strong industry-wide scanner data and consumer preferences - Management noted growth from new consumers, particularly younger females, and a narrowing price differential between energy drinks and other beverages [47][48] Question: Strategy for protecting gross margins - Management discussed input cost increases and a hedging strategy for aluminum, emphasizing ongoing cost savings and pricing evaluations [49][50] Question: Role of Alcohol Brands division in overall strategy - Management stated the focus remains on energy drinks while exploring growth in alcoholic beverages, including the launch of Blind Lemon [52][53] Question: Update on dual brand price point strategy in China - Management highlighted optimism for the Monster brand in China and the rollout of Predator as a key growth driver [56][57] Question: Ongoing involvement of Rodney Sachs in the company - Management confirmed that Rodney Sachs will focus on marketing and innovation while remaining involved in legal matters [58][60]

Financial Data and Key Metrics Changes - The third quarter earnings performance exceeded expectations, with reported net sales increasing by 4% driven by the Sovos acquisition and organic net sales growth of 1% [5][29] - Adjusted EBIT increased by 2% year-over-year, resulting in a slight margin decrease due to lower net pricing realization [9][30] - Adjusted EPS was down 3%, with a net positive contribution from the Sovos acquisition [10][30] Business Line Data and Key Metrics Changes - Meals and Beverages division reported organic net sales growth of 6%, driven by volume and mix growth of 7% [13][35] - Snacks business experienced a 5% decline in organic net sales, primarily due to lower volume and mix [20][36] - The overall consumption of Meals and Beverages leadership brands increased by 2%, while Snacks leadership brand consumption declined by 3% [11][13] Market Data and Key Metrics Changes - In-market consumption for Meals and Beverages outpaced category consumption, while Snacks lagged behind due to competitive pressures [7][10] - The consumer environment showed a preference for home-cooked meals, leading to increased demand for Meals and Beverages products [11][62] - The Snacks category faced a 3% decline in in-market consumption, attributed to deteriorating consumer confidence and increased competition [20][72] Company Strategy and Development Direction - The company is focused on near-term in-market execution and mitigating tariff impacts while investing in brand growth and capabilities [8][27] - A growth office has been established to enhance consumer insights, brand activation, and innovation [27] - The company aims to improve efficiency and effectiveness across the organization to facilitate long-term growth [27][41] Management's Comments on Operating Environment and Future Outlook - Management noted that consumers are making more deliberate spending decisions, impacting the Snacks business negatively [6][26] - The company expects adjusted earnings to be at the low end of the guidance range due to slower recovery in the Snacks business [7][39] - There is optimism regarding the sustainability of the at-home cooking trend, which has positively impacted the Meals and Beverages division [60][64] Other Important Information - The company has estimated the net incremental headwind of tariff-related costs to be up to $0.03 to $0.05 per share for fiscal 2025 [39][40] - Capital expenditures for fiscal 2025 are expected to be approximately 4.5% of net sales, reflecting a decrease from prior guidance [41] Q&A Session Summary Question: What is the pressure on the Snacks business? - Management indicated that about two-thirds of the pressure is due to overall category performance and one-third from in-market execution, with a focus on innovation and value [45][47] Question: What are the key factors for fiscal 2026? - Management noted that recovery in the Snacks business is expected to take place in fiscal 2026, with a need for increased marketing support [52][54] Question: How sustainable is the at-home cooking trend? - Management expressed optimism about the sustainability of the at-home cooking trend, supported by the company's diverse portfolio [60][64] Question: What is the impact of tariffs on future guidance? - Management clarified that the estimated tariff impact is being phased in and should not be annualized at this time due to the evolving trade landscape [75][80] Question: What is the growth expectation for Rao's? - Management expects high single-digit growth for Rao's in fiscal 2025, with confidence in the brand's trajectory [83][84]

Kenvue (KVUE) Q1 2025 Earnings Call May 08, 2025 08:00 AM ET Company Participants Sofya Tsinis - Vice President Investor RelationsThibaut Mongon - CEO & DirectorPaul Ruh - Chief Financial OfficerBonnie Herzog - Managing Director Anna Lizzul - Vice President - Equity ResearchNik Modi - Managing DirectorFilippo Falorni - Director - Equity ResearchAlec Legg - Vice President , Equity Research Conference Call Participants Peter Grom - Equity Research AnalystAndrea Teixeira - AnalystKeith Devas - AnalystJavier Es ...