Core Viewpoint - BasicNet's acquisition of Woolrich has led to a dispute with trade unions over the relocation of corporate operations, which the company claims is a strategic move to revitalize the brand and ensure job continuity [1][3]. Group 1: Acquisition Details - BasicNet acquired Woolrich for 90 million euros from L-Gam, which had owned the brand since 2018 [1][5]. - The acquisition includes the rights to the Woolrich brand for Europe and 100% of Woolrich Europe SpA, which manages its distribution and retail activities [5]. Group 2: Employment and Operations - Woolrich employs 109 workers in Bologna and 30 in Milan, with the company planning to relocate these employees to its headquarters in Turin [1]. - Retail employees in Bologna and Milan will not be affected by the corporate relocation, as Woolrich operates two flagship stores in these cities [2]. Group 3: Company Statements and Future Plans - BasicNet stated that the relocation is aimed at strengthening Woolrich's brand value and creating synergies for future growth [3]. - The company is committed to safeguarding jobs and will utilize welfare measures to assist employees who cannot relocate [3]. - Co-CEO Alessandro Boglione emphasized the importance of employees and the company's commitment to working with trade unions for a smooth transition [4].

Financial Data and Key Metrics Changes - In Q3, the company reported net sales of $1.6 billion, a decrease of 1% compared to the prior year, and adjusted earnings per diluted share of 35 cents, both below expectations [21][22] - The gross profit rate was 41.3%, down 220 basis points year-over-year, primarily due to a 260 basis point decrease in merchandise margin impacted by tariffs [23] - Operating income for Q3 was $161 million, down 26% from the previous year [24] Business Line Data and Key Metrics Changes - All core categories experienced low single-digit declines, indicating a need for focused investment in these areas [22] - U.S. and Canadian store net sales totaled $1.2 billion, flat compared to the prior year, while direct net sales decreased by 7% to $299 million [22] - International net sales increased by 6% to $73 million, with system-wide retail sales growing 16% [23] Market Data and Key Metrics Changes - The company anticipates Q4 sales to decline by high single digits compared to last year, influenced by macro consumer sentiment and competitive retail dynamics [25][26] - Consumer confidence has been declining, affecting purchase intent, particularly at the start of the holiday season [25] Company Strategy and Development Direction - The company is focusing on a consumer-first strategy with four pillars: creating innovative products, reigniting the brand, winning in the marketplace, and operating with speed and efficiency [20][10] - Plans include reducing SKU complexity, exiting non-core categories, and enhancing digital and retail experiences to attract younger consumers [12][18] - The company aims to invest in its core categories and improve product offerings to meet evolving consumer demands [11][68] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that the current consumer environment is challenging, and the brand has not fulfilled its potential [5][34] - The company does not expect growth for the full year of 2026 but anticipates improvements as new initiatives take effect in the second half of the year [37][47] - Management expressed confidence in the brand's future and the strategic actions being taken to drive sustainable growth [18][20] Other Important Information - The company plans to deliver $250 million in cost savings over the next two years, with over half identified for 2026 [17] - Capital expenditures for the year are projected at approximately $240 million, down from previous guidance [27] - Free cash flow expectations for the full year are approximately $650 million, reflecting current performance trends [28] Q&A Session Summary Question: What changed between when the CEO first joined and current expectations? - The CEO noted that the brand is not fulfilling its potential and that the focus on adjacencies has led to underinvestment in core categories [34][35] Question: What are the key KPIs for the new strategy? - The CEO highlighted metrics such as total active consumers and growth in core categories, along with improvements in digital traffic and dwell time [45][46] Question: How will the company balance investments and cost cuts? - The CFO explained that the $250 million in savings will help fund necessary investments, with a focus on high-value consumer areas [56] Question: What is the plan for the Amazon partnership? - The CEO stated that the Amazon launch will start with a small assortment of evergreen products, aiming to enhance brand perception and sales [62] Question: How will the company exit non-core categories? - The CEO indicated that SKU rationalization will begin in Q1, focusing on consumer feedback to simplify offerings [80][81]

Core Insights - Wendy's has launched Project Fresh, a strategic plan aimed at revitalizing the brand, driving growth, enhancing profitability, and increasing shareholder value [1][2]. Group 1: Project Fresh Overview - Project Fresh is designed to strengthen Wendy's brand and operational performance through a unified approach called "One Wendy's" [2][5]. - The plan focuses on four core pillars: brand revitalization, system optimization, operational excellence, and capital reallocation to foster profitable growth [2][4]. Group 2: Key Actions and Strategies - Brand revitalization will leverage Wendy's heritage of quality and innovation, utilizing data-driven customer segmentation to enhance marketing effectiveness [5]. - System optimization aims to prioritize Average Unit Volume (AUV) growth in the U.S. by optimizing labor and operating hours, and collaborating closely with franchisees [5]. - Operational excellence will involve increased investments in customer experience, technology, and training to improve restaurant efficiency [5]. - Capital allocation will be optimized, including a reduction of approximately $20 million in capital for the Build to Suit program in 2025, allowing for more investment in technology and marketing [5]. Group 3: Leadership and Future Plans - The Board of Directors is actively engaged in the CEO selection process, targeting completion by the end of the year to ensure strong leadership for the next growth phase [3]. - Further details on Project Fresh initiatives will be provided during the third quarter results announcement on November 7, 2025 [6].

Financial Data and Key Metrics Changes - For the second quarter, the company reported revenues of $70.9 million, a decline of approximately 25% compared to the previous year, aligning with internal forecasts [9][22] - The net loss from continuing operations for the second quarter was -$0.5 million, or -$0.02 per diluted share, compared to net income of $2.6 million, or $0.09 per diluted share in the prior year [22] - Gross margin was $35.4 million, or 49.9% of net revenues, slightly up from 49.8% in the prior year [23][24] - SG&A expenses totaled $36.3 million, or 51.2% of net revenues, compared to $43.6 million, or 46.4% of net revenues a year ago [24] Business Line Data and Key Metrics Changes - Direct segment revenues for the second quarter were $60.5 million, a 16.2% decrease from $72.2 million in the prior year [23] - Indirect segment revenues totaled $10.3 million, a 52.5% decrease from $21.8 million in the prior year, primarily due to a decline in key account orders and liquidation sales [23] Market Data and Key Metrics Changes - The company experienced sequential improvement in comparable store sales across its store fleet and online channels during the second quarter [9] - Inventory decreased by 13.2% to $96.7 million compared to $111.4 million at the end of the second quarter last year [25] Company Strategy and Development Direction - The company is implementing a comprehensive strategy to revitalize its market position, focusing on brand strength, product innovation, and targeted marketing [4][5] - Five key strategic initiatives have been identified: sharpening brand focus, developing a cohesive omnichannel strategy, updating the outlet strategy, improving the operating model, and reimagining organizational structure [10][16][20][21] - The company is focusing on enhancing customer experience in its outlet stores and aligning promotional strategies across channels to reduce confusion and improve margins [17][18] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the challenging operating environment but expresses confidence in the current trends and improvements being made [21][26] - The company is not providing guidance due to the dynamic consumer environment but is focused on enhancing operational discipline [26] Other Important Information - The company is in the process of searching for a new CEO and is meeting with promising candidates [8] - The estimated annualized impact of tariffs is $11 million, with efforts underway to mitigate these impacts [26] Q&A Session Summary - The Q&A session was not detailed in the provided content, and no specific questions or answers were recorded. The session concluded without further inquiries from participants [27]