Financial Data and Key Metrics Changes - The loss before income taxes for the first quarter was $1.3 million, significantly improved from a pretax loss of $18.9 million in the previous year quarter, driven by revenue growth and improving margins [8] - Gross margin for the first quarter improved to 36.6%, up 6.7 points from the prior year, primarily due to overhead absorption from higher volumes and price increases [8] - Operating expenses increased by $2.1 million from the prior year, mainly due to increased sales volume-related expenses, partially offset by decreased warranty expenses [8] Business Line Data and Key Metrics Changes - The fishing segment, particularly the Minn Kota and Humminbird brands, showed solid performance with strong demand for new products like the XPLORE Series and MEGA Live 2 fish finders [4] - In the camping and watercraft segment, investments in digital and e-commerce have paid off, with Jetboil and Old Town seeing growth driven by online sales [4][5] - The diving segment experienced increased sales due to improved global market conditions and innovation, particularly with the SCUBAPRO's new HYDROS PRO 2 product [5][6] Market Data and Key Metrics Changes - The overall market showed signs of stabilization, contributing to double-digit growth in the first quarter, which is typically a slower period [3] - Trade dynamics improved, allowing for healthy demand and sell-in during the first quarter, positioning the trade in a good inventory state [17] Company Strategy and Development Direction - The company aims to maintain a strong innovation pipeline, grow digital and e-commerce momentum, and improve product costs and operating efficiency through cost-saving initiatives [7] - The focus on innovation is critical for maintaining market leadership amidst strong competition [13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the start of fiscal 2026, noting improvements in profitability and execution of growth plans despite uncertainties in the broader environment [4][6] - The company remains confident in its ability to create long-term value for shareholders, with a debt-free balance sheet and ongoing dividend payments [9] Other Important Information - The inventory balance at the end of the first quarter was $183.9 million, down about $17.7 million from the previous year quarter [9] Q&A Session Summary Question: Pricing versus unit volumes - Management indicated that most of the increase in the quarter was driven by unit volume, although pricing adjustments were made in response to cost increases [12] Question: Contribution of new products to sales - Management confirmed that innovation remains critical, with improvements in new product success contributing to growth [15] Question: E-commerce revenue percentage and future goals - E-commerce is the fastest-growing channel, with plans to continue expanding its contribution to overall revenue [16] Question: Current trade inventory levels - Management noted that trade inventory levels are healthy, allowing for good sell-in during the first quarter [17] Question: Future cost savings initiatives - Management emphasized the importance of ongoing cost-saving initiatives to optimize product costs and improve efficiency [18] Question: Warranty expense impact on operating expenses - Warranty expenses had a minor impact on the operating expense percentage, which decreased in the quarter [19] Question: Future tax rate expectations - Management indicated that the tax rate may fluctuate based on profits in various geographies, particularly due to a valuation allowance in the U.S. [21]

Financial Data and Key Metrics Changes - Total company sales for fiscal 2025 were flat compared to the prior year, with an operating loss of $16.2 million, which improved compared to fiscal 2024 [3][9] - Loss before income taxes for 2025 was $9.3 million, an improvement from a pre-tax loss of $29.9 million in fiscal 2024, primarily due to a prior year goodwill write-off and an increase in gross margin [9][10] - Gross margin for fiscal 2025 improved to 35.1%, up 1.2 points from the prior year [9][10] - Operating expenses decreased by 8%, or $20.2 million, from the prior fiscal year [10] Business Line Data and Key Metrics Changes - In the fishing segment, demand exceeded expectations for Humminbird's new Explore series and MEGA Live 2 fish finders, contributing to growth [4] - Camping and watercraft sales declined for fiscal 2025, primarily due to the closeout of Eureka inventory, but excluding this impact, the segment grew by 2% [4] - Diving sales increased due to modest improvements in certain regional markets, with the launch of the new Hydros Pro 2 buoyancy control device receiving positive reception [5][6] Market Data and Key Metrics Changes - The overall watercraft marketplace is still struggling, but Old Town's fishing kayak line is performing well [5] - Digital and e-commerce capabilities are being strengthened, with ongoing efforts to expand the digital footprint fueling growth [6][7] Company Strategy and Development Direction - The company is focused on consumer-driven innovation and enhancing digital and e-commerce capabilities as key strategic priorities [8] - Cost savings programs remain a priority, with efforts to drive optimal product costs and enhance operating efficiencies continuing into fiscal 2026 [7][8] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about market momentum continuing into early fiscal 2026, although it is still too early to confirm a market turnaround [8][13] - The company is committed to innovation as a key focus, especially in a competitive environment where consumers are price-sensitive [15] Other Important Information - The company maintained a debt-free balance sheet and a healthy cash position, confident in its ability to create long-term value for shareholders [11] Q&A Session Summary Question: Has the revenue gain momentum continued into early fiscal 2026? - Management noted excitement about the growth in the third and fourth quarters, indicating that market momentum appears to be continuing, but it is too early to declare a market turnaround [13] Question: What is the outlook for the new product pipeline for 2026? - Management highlighted ongoing momentum in fishing and diving innovations, emphasizing that product innovation remains a key priority [15] Question: How have pricing actions related to tariffs been received by retail partners? - Management stated that pricing actions taken were strategic and have been well-received by retail partners, with no negative impact on business so far [16] Question: How much have operational efficiencies contributed to gross margin improvements? - Management indicated that operational efficiencies contributed over a point of gross margin improvement, with ongoing cost savings initiatives planned for fiscal 2026 [17] Question: What is the expected effective tax rate for fiscal 2026? - Management expects the effective tax rate to return to a more normal range, mid to high 20s, going forward [18]