Welcome to a new episode of Yahoo Finance's opening bid unfiltered podcast. I'm Yahoo Finance executive editor Brian Sazi. I am so excited for my next guest, very special guest, someone whose career I have followed for for a long time.She's killing it at the company uh she is leading. That's Joanne Creviser, the uh Tapestry CEO. Joan, good to see you.Oh, it's been so long. Holy cow. It's been it's been too long.>> I'm feeding off your energy. It's [laughter] definitely been too long. >> I'll try to break it ...

Financial Data and Key Metrics Changes - For Q4 2026, net sales were $771 million, down 8% from $840 million in the same period last year, primarily impacted by a $20 million reduction due to halted shipments to Saks before its bankruptcy [30] - Full year net sales were $2.96 billion, compared to $3.18 billion in the previous year, with a significant decline attributed to the exited Calvin Klein and Tommy Hilfiger licenses [33] - Non-GAAP net income for Q4 was $13 million, or $0.30 per diluted share, down from $58 million or $1.20 per diluted share in the prior year, reflecting a $0.30 impact from the Saks bankruptcy [32] - Full year non-GAAP net income was $116 million, or $2.61 per diluted share, compared to $204 million or $4.42 per diluted share in the previous year [35] Business Line Data and Key Metrics Changes - Key owned brands, including DKNY, Donna Karan, Karl Lagerfeld, and Vilebrequin, collectively delivered mid-single-digit growth, accounting for close to 60% of revenue, up from roughly 50% last year [9] - The wholesale segment's net sales were $737 million in Q4, down from $799 million in the previous year, while retail segment sales increased to $63 million from $56 million [30] - Donna Karan saw approximately 40% growth, with significant increases in both wholesale distribution and online sales [11] Market Data and Key Metrics Changes - International sales accounted for just over 20% of fiscal 2026 net sales, indicating significant growth potential in global markets [10] - The retail segment in North America showed strong comparable store sales increases across Karl Lagerfeld and DKNY retail stores [33] Company Strategy and Development Direction - The company is focused on simplifying its portfolio and enhancing its owned brands, with a strategic priority on capturing the long-term potential of these brands [8] - Investments in infrastructure, technology, and talent are being made to support future growth, with a clear emphasis on direct-to-consumer strategies and international expansion [10][17] - The company aims to return its North American retail segment to profitability by fiscal 2027 through management changes and reduced store footprint [24] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by exiting brands and tariff impacts but expressed confidence in the growth of owned brands and the overall strategic direction [4][49] - For fiscal 2027, the company expects net sales of approximately $2.71 billion, reflecting a reduction due to the loss of Calvin Klein and Tommy Hilfiger sales, but anticipates high single-digit growth from its go-forward brands [27][39] Other Important Information - The company ended the year with over $400 million in cash and more than $900 million in total liquidity, while also returning over $50 million to shareholders through share repurchases and dividends [7][36] - The company has identified $25 million in cost savings initiatives expected to be realized in fiscal 2028 [26] Q&A Session Summary Question: Visibility on own brands and inventory levels - Management indicated strong performance from own brands, with expectations for increased points of sale and controlled inventory levels to support full-price business [49][50] Question: Update on Converse launch - Management discussed the ongoing development of the Converse brand, emphasizing the need for support from Nike for future growth [53][56] Question: Prioritization of acquisitions versus licensing - Management stated that both acquisitions and licensing opportunities are being pursued simultaneously, supported by a strong balance sheet [62] Question: Growth outlook for Donna Karan and key owned brands - Management refrained from disclosing specific sales figures for Donna Karan but expressed confidence in its growth potential and scalability [69][71] Question: Drivers behind SG&A dollar growth - Management noted that SG&A growth is primarily due to maintaining talent and investing in technology and infrastructure, with a focus on cost savings initiatives for the future [72][74]

Financial Data and Key Metrics Changes - Revenue increased by 29% to $121 million for the fourth quarter, with adjusted EBITDA rising 14% to $30 million [3][15] - Gross margin was 55.9%, flat compared to the previous year, while SG&A expenses rose to $47.7 million, an increase of $3.1 million sequentially [15][17] - Free cash flow for the fourth quarter was $19.2 million, with cash at the end of the quarter totaling $222.8 million [17] Business Line Data and Key Metrics Changes - Modern Oral nicotine pouch net sales increased by 266% year-over-year, achieving total revenue of $41.3 million, now accounting for 34% of consolidated net sales, up from 12% a year ago [5][16][17] - Stoker's segment net sales increased by 70% year-over-year to $81 million, with legacy Stoker's brands growing by 9% to $39.7 million [8][16] - Zig-Zag segment net sales decreased by 13% year-over-year to $40 million, which was anticipated [9][16] Market Data and Key Metrics Changes - The nicotine pouch market is expected to approach or exceed $10 billion in manufacturer's revenue by the end of the decade, with the company targeting double-digit market share [7] - The company is focusing on expanding distribution in larger regional and national convenience store chains, with significant investments planned for 2026 [8] Company Strategy and Development Direction - The company is prioritizing investments in its white pouch brands and reallocating sales and marketing resources to enhance brand presence [8][10] - Key initiatives include increasing sales force headcount, improving online presence, and expanding into international markets [8] - The company aims to build lasting consumer relationships through front-loaded investments, expecting consistent repeat purchasing [4] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth trajectory for 2026, with guidance for Modern Oral gross revenue set at $220 million-$240 million [3][17] - The company anticipates first quarter 2026 adjusted EBITDA to be between $24 million and $27 million, reflecting increased investment in sales and marketing [4][17] - Management noted that both existing consumers are using more nicotine pouches and new users are entering the category, providing growth vectors [42] Other Important Information - The company is making significant investments in domestic production, with initial production lines expected to be qualified in the coming months [24] - The company is also focused on optimizing freight costs to enhance margins [25] Q&A Session Summary Question: Investment opportunities in nicotine pouch growth - Management indicated readiness to invest in sales and marketing for nicotine pouch growth, particularly for the launch of ALK in Q2 [21][22] Question: Domestic production outlook - Management expects to qualify production lines soon and will continue to use an Indian partner to supplement growth, with no anticipated supply chain constraints [23][24] Question: Timing of investment in Modern Oral - Investment will be lumpy throughout the year, with high ROI projects prioritized [27][28] Question: FR distribution opportunities - Management sees substantial store opportunities in both chain environments and independent customers, with expectations for continued store growth [33][35] Question: Innovation in the category - Management emphasized winning with existing products while considering future investments in additional flavor options [37][38] Question: Nicotine pouch consumption growth - Both existing consumers using more and new users entering the category are expected to drive growth [41][42] Question: Tax landscape impact - Management believes that tax increases will affect all manufacturers equally and does not anticipate a significant disadvantage [44][45] Question: Revenue performance between FR and ALP - Both brands performed within expectations, with no specific breakdown provided [47][48] Question: Distribution balance between national chains and existing locations - Management sees significant opportunities in both areas and plans to invest in trade programs and strategic partnerships [50][51]

Core Insights - PepsiCo Inc. has experienced a significant stock increase of 18.2% over the past month, driven by strong fourth-quarter 2025 performance and renewed investor optimism [1][3] - The company's earnings exceeded expectations, supported by solid execution, disciplined cost management, and portfolio optimization [1][2] Financial Performance - Fourth-quarter 2025 results showed healthy net revenue growth, particularly in the North America beverage business, aided by enhanced pricing strategies and demand for functional and zero-sugar beverages [2] - Organic revenue growth is projected at 2-4% for 2026, with core constant-currency EPS expected to rise by 4-6% [19] Market Position - PepsiCo's stock has outperformed the Beverages – Soft Drinks industry and the broader Consumer Staples sector, with a notable 9.3% surge following the earnings release [3][6] - The stock is currently priced at $169.15, close to its 52-week high, and trades above its 50- and 200-day moving averages, indicating a bullish outlook [7][8] Competitive Landscape - PepsiCo has outperformed key competitors such as Coca-Cola, Primo Brands, and Monster Beverage, which saw stock increases of 10.4%, 5.9%, and 3.2%, respectively [6] - The company's forward 12-month P/E ratio of 19.52X is below the industry average and significantly lower than competitors like Coca-Cola and Monster Beverage [22] Growth Drivers - Strong performance in North America beverages and international markets, along with brand strength and pricing power, are key growth drivers [11][12][13] - Operational discipline, including automation and supply-chain optimization, supports margin expansion and reinvestment in innovation [14] Future Outlook - Management is focused on improving competitiveness and expanding core operating margins, with a portfolio refresh planned for major global brands [15][16] - Analysts have revised earnings estimates upward, indicating growing confidence in PepsiCo's growth potential [20]

Financial Data and Key Metrics Changes - The company reported a positive same-store sales comp of +0.3% and total revenue growth of +2.3% for the December quarter, driven by strength in retail and league businesses [4] - The company experienced a drag from the events business, which had been a significant issue in previous quarters, but showed improvement in January with strong double-digit results [4][5] Business Line Data and Key Metrics Changes - Retail comp was just shy of 2% at 1.7%, while retail food sales grew by 10.9%, and retail non-alcoholic comp increased by 26.2% [28] - The events business, previously a drag, has shown organic growth in January and February, contributing positively to overall performance [11][19] Market Data and Key Metrics Changes - The company closed on the acquisition of Raging Waters, the largest water park in California, which is expected to contribute significantly to EBITDA in the upcoming quarters [7] - The company operates approximately 100 Lucky Strike locations and plans to sunset the Bowlero brand by the end of the calendar year, simplifying its portfolio [7] Company Strategy and Development Direction - The company is shifting towards a balanced approach that emphasizes both same-store sales growth and EBITDA expansion, with more targeted investments [6] - A refreshed AMF look is planned for rollout later this year, aiming to strengthen the brand's value-oriented offering and differentiate it from Lucky Strike [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving guidance despite challenges, citing strong January results and a favorable comp environment for the upcoming months [11][46] - The company is focused on optimizing costs and improving margins, particularly in the water park segment, which is expected to contribute positively in the fourth quarter [46] Other Important Information - The company made significant investments in marketing, resulting in a 200% increase in media impressions and a 28% increase in online revenue year-over-year [24] - The introduction of server tablets in locations has led to a 7% increase in average check size, indicating positive impacts from technology investments [30] Q&A Session Summary Question: Why didn't the company lower EBITDA guidance for the full year? - Management remains confident in achieving guidance due to improvements in the events business and strong performance in retail and leagues [10][11] Question: What was the impact of the corporate events business on margins in the second quarter? - Direct drags included a $6 million increase in center payroll and a $4 million increase in marketing investment, which affected profitability [15] Question: What initiatives have been made to rebuild the events business? - The company implemented dynamic pricing strategies and improved marketing partnerships, which have positively impacted the events business [19][20] Question: How did food and beverage sales trend during the quarter? - Retail food sales outperformed, while alcohol sales were down, prompting a shift towards zero-proof beverage offerings [28][29] Question: What are the prospects for growth in the water parks? - The company has plans for expansions and improvements in water parks, with expectations for significant revenue increases from these investments [50][52]

Financial Data and Key Metrics Changes - The company reported a positive same-store sales comp of +0.3% and total revenue growth of +2.3% for the December quarter [4] - The events business showed its best performance in years, ending nearly flat for the quarter, indicating a turnaround [4][5] - Investments in payroll, marketing, and activity levels were made to drive traffic, although not all spending generated the expected ROI, particularly in incremental labor [5] Business Line Data and Key Metrics Changes - Retail and leagues performed well, contributing to the overall revenue growth, while the events business began to recover [4] - Retail comp was reported at 1.7%, with food sales outperforming at +10.9%, while alcohol sales were down by 4.7% [29] - The company is focusing on a zero-proof beverage program, which has shown positive results, and plans to introduce new offerings like Dirty Soda and Boba drinks [30] Market Data and Key Metrics Changes - The company closed on the acquisition of Raging Waters, which is expected to contribute significantly to EBITDA in the upcoming quarters [6] - The company operates approximately 100 Lucky Strike locations and plans to sunset the Bowlero brand by the end of the calendar year, simplifying its portfolio [7] Company Strategy and Development Direction - The company is shifting towards a balanced approach that emphasizes both same-store sales growth and EBITDA expansion, with more targeted investments [5] - A refreshed AMF look is planned for rollout later this year, aiming to strengthen its value-oriented offering and differentiate it from Lucky Strike [8] - The company aims to build critical mass in the Lucky Strike brand, expecting to reach 200 locations by the end of 2026, which will enhance marketing efforts [63][64] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving EBITDA guidance despite challenges, citing strong performance in retail and leagues as well as a turnaround in the events business [10][12] - The company anticipates significant seasonal lift to earnings from its water parks and family entertainment centers as summer approaches [6][46] - Management acknowledged the impact of recent snowstorms on revenue but remains optimistic about the overall performance moving forward [70] Other Important Information - The company has made significant investments in marketing, resulting in a 200% increase in media impressions and a 28% increase in online revenue year-over-year [22] - The company is focused on optimizing labor costs and marketing efficiency to improve profitability [35][38] Q&A Session Summary Question: Why didn't the company lower EBITDA guidance for the full year? - Management expressed confidence in achieving guidance due to a turnaround in the events business and strong performance in retail and leagues [10][11] Question: What were the main drags on margins in the second quarter? - Direct drags included increased payroll costs, marketing investments, and labor inefficiencies [15] Question: What initiatives have been made to rebuild the events business? - Dynamic pricing strategies were implemented, which helped recover from previous declines in the events business [19][20] Question: How did food and beverage sales trend during the quarter? - Retail food sales grew by 10.9%, while alcohol sales were down, prompting a shift towards zero-proof beverage offerings [29][30] Question: What are the prospects for growth in the water parks? - The company has plans for expansions and improvements in its water parks, which are expected to yield high returns [51][55] Question: How should investors think about the next 50 Lucky Strike conversions? - The upcoming conversions are expected to follow a similar pattern to the first 100, with a focus on building brand presence in various markets [61][63]

Financial Data and Key Metrics Changes - The company reported a consolidated net sales decrease of 3.4%, with organic net sales declining by 10.8% [18][19] - Adjusted EPS was reported at $1.71, reflecting challenges in pricing realization and increased operational costs [23] - Gross profit margin decreased by 200 basis points to 46.9%, primarily due to higher tariffs and inventory obsolescence [21] - SG&A ratio increased by 160 basis points, influenced by the acquisition of Olive & June and higher freight costs [22] Business Segment Performance Changes - Home and outdoor segment net sales declined by 6.7%, while beauty and wellness segment net sales decreased by 0.5% [11][20] - Organic beauty and wellness sales fell by 13.9%, with tariff-related disruptions contributing significantly [20] - Olive & June outperformed expectations with nearly $38 million in sales, indicating strong brand performance amidst overall declines [11] Market Data and Key Metrics Changes - International sales fell by 8.1%, reflecting challenges in global markets [11] - The company noted a bifurcated economy, with high-income households showing robust spending while lower-income consumers are cautious due to inflation [4] Company Strategy and Development Direction - The company is focused on re-energizing brands, improving operational efficiency, and investing in innovation to drive growth [7][9] - Strategic priorities include enhancing consumer engagement, sharpening execution, and fostering brand loyalty [6][8] - The company plans to maintain a disciplined approach to resource allocation, focusing on high-impact opportunities for long-term growth [9][10] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging external environment but expressed confidence in the company's ability to stabilize and grow [4][5] - The focus will shift towards revenue improvement rather than cost reduction, with an emphasis on innovation and brand building [32][55] - Management expects to provide a more detailed fiscal 2027 outlook in April, indicating a commitment to long-term growth strategies [10][24] Other Important Information - The company is implementing mitigation strategies for tariffs, including supplier diversification and cost reductions, to reduce the impact on operating income [17][18] - Inventory levels are projected to be between $475 million and $490 million at year-end, including tariff-related costs [25] Q&A Session Summary Question: Insights on top-line trends and brand performance - Management is encouraged by growth in brands like Osprey and Olive & June, while acknowledging the need for improvement in declining categories [29][30] Question: Earnings guidance and future outlook - Management indicated that the current earnings guidance may serve as a base for future growth, emphasizing the importance of investing in innovation [31][32] Question: Return to consumer-centric innovation - Management is committed to revitalizing underperforming brands and expects to see benefits from these efforts in the upcoming quarters [38][40] Question: Category demand and consumer behavior - Management noted that while some categories are experiencing growth, others are declining, and they are focused on leveraging strong brands to navigate the market [48][50] Question: Leverage and portfolio optimization - Management is focused on improving balance sheet efficiency and is open to evaluating the brand portfolio for long-term value creation [70][72]

Financial Data and Key Metrics Changes - The company reported a consolidated net sales decrease of 3.4%, which was better than expected, with organic net sales declining by 10.8% [27] - Gross profit margin decreased by 200 basis points to 46.9%, primarily due to higher tariffs and unfavorable inventory obsolescence impacts [29] - Adjusted EPS was reported at $1.71, with a year-to-date free cash flow of $29 million despite $58 million in tariff-related cash outflows [32] Business Line Data and Key Metrics Changes - Home and outdoor net sales declined by 6.7%, while beauty and wellness net sales decreased by 0.5%, with organic beauty and wellness sales down by 13.9% [28] - Olive & June outperformed expectations with nearly $38 million in sales, contributing positively to the beauty and wellness segment [17] - Organic direct-to-consumer revenue increased by 21% [19] Market Data and Key Metrics Changes - International sales fell by 8.1%, reflecting challenges in the global market [17] - The company noted a bifurcated economy, with high-income households showing robust spending while lower and middle-income consumers were more cautious due to inflation [5] Company Strategy and Development Direction - The company is focused on investing in brand loyalty, innovation, and talent to restore growth [5][6] - Four strategic priorities were outlined: re-energizing brands and people, adapting structure to center on consumers, strengthening the portfolio for predictable growth, and improving asset efficiency [9] - The company plans to maximize operational efficiency and balance sheet health while investing in long-term growth opportunities [14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about product innovation and upcoming launches, emphasizing the need to adapt to consumer preferences [6][10] - The company anticipates continued margin pressure due to consumer trade-down behavior and a more promotional environment [37] - Management expects to see improvements in revenue and operating leverage as they shift focus from cost reduction to revenue growth [44][68] Other Important Information - The company is navigating tariff impacts, with a full-year expected impact of $50 million to $55 million on gross profit [25] - Inventory is projected to be between $475 million and $490 million at year-end, including estimated tariff-related costs [34] - The company is evaluating its brand portfolio for potential optimization and divestiture opportunities [82][86] Q&A Session Summary Question: What is the status of declining categories and turnaround efforts? - Management is encouraged by growth in brands like Osprey and Olive & June but acknowledges the need for improvement in declining categories [40] Question: Is this year's earnings guidance the bottom for earnings power? - Management indicated a focus on growth and innovation, suggesting that the current guidance may serve as a base for future growth [42][43] Question: How is the company approaching consumer-centric innovation? - Management emphasized the need to invest in underperforming brands and ensure they are set up for success [49][51] Question: What is the outlook for category demand and potential improvements? - Management believes that brands with strong propositions will continue to perform well, even in challenging times, and expects improvements in demand as the economy stabilizes [60][61] Question: How does the company plan to manage leverage and portfolio optimization? - Management is focused on tightening the balance sheet and improving operational efficiency while considering portfolio evaluations for long-term value [82][86]

Core Insights - L Catterton has entered a strategic partnership with Haldiram's to enhance its market leadership in India and support international expansion [1][2] Company Overview - Haldiram's is a leading multinational packaged food company known for a diverse range of snacks, sweets, and ready-to-eat products, established in 1937 [5] - The brand is recognized as a pioneer in branded traditional snacks in India and has a significant international presence [5] Partnership Details - The partnership will leverage L Catterton's global consumer sector expertise, operational capabilities, and industry network to benefit Haldiram's [2][3] - Sanjiv Mehta, L Catterton's Executive Chairman of India, brings extensive experience from his previous role as Chairman/CEO of Hindustan Unilever Limited [2][3] Strategic Goals - Haldiram's aims to develop a global 'India for the World' brand through initiatives in brand building, new product development, supply chain optimization, geographic expansion, and talent development [3] - The collaboration is expected to drive growth in India's evolving consumer market and facilitate Haldiram's internationalization [4] L Catterton Overview - L Catterton manages approximately $39 billion in equity capital across private equity, credit, and real estate, with the ability to invest between $5 million and $5 billion in consumer businesses [6] - The firm has made over 300 investments in iconic consumer brands since its founding in 1989 [6]

Core Insights - Dutch Bros is in the early stages of its growth journey, with potential to either emulate Starbucks' success or face challenges similar to Shake Shack [1] - The company operates a drive-thru model focused on convenience and speed, contrasting with Starbucks' café experience [2][3] - Dutch Bros has a significant expansion opportunity, targeting 7,000 stores nationwide from its current 1,043 [5] Business Model - A typical Dutch Bros shop costs approximately $1.7 million to build, with a payback period of about two years, indicating a more cost-effective model compared to Starbucks [2] - The company generates around 80% of its sales from cold and energy drinks, appealing to a younger demographic [3] Financial Performance - Same-store sales are projected to grow in the mid-single digits in 2025, continuing from 2024 performance, with shop-level margins nearing 30% [6] - Dutch Bros has maintained consistent profitability since 2024, suggesting effective scaling [6] Growth Potential - The company could explore new revenue streams through ready-to-drink products or retail energy beverages, enhancing its brand beyond drive-thru sales [7] - Dutch Bros' brand remains concentrated in the western U.S., providing ample room for eastward expansion [5] Challenges - Rapid expansion poses risks to maintaining company culture and service quality, which are critical for customer loyalty [9] - The capital-intensive nature of the business model means that rising labor or ingredient costs could significantly impact net margins [10] - The reliance on discretionary cold drinks may lead to cyclical revenue patterns, especially during economic downturns [11] Investor Considerations - Investors should monitor same-store sales, shop-level margins, and sustainable profits as key indicators of the company's long-term growth potential [14] - The company has the opportunity to learn from both Starbucks and Shake Shack, navigating the balance between growth and operational consistency [12][14]