Core Insights - Merck (MRK) reported Q3 2025 adjusted EPS of $2.58, exceeding the Zacks Consensus Estimate of $2.36, with a year-over-year increase of 64% on a reported basis and 65% excluding foreign exchange [1][10] - Revenues for Q3 increased by 4% year-over-year to $17.28 billion, surpassing the Zacks Consensus Estimate of $17.06 billion [1][10] Sales Performance of Key Products - Keytruda, Merck's leading oncology drug, generated sales of $8.14 billion, an 8% increase year-over-year, but fell short of the Zacks Consensus Estimate of $8.40 billion [3] - Alliance revenues from Lynparza and Lenvima contributed positively, with Lynparza sales rising 12% to $379 million and Lenvima revenues totaling $258 million, up 2% [4] - Welireg recorded sales of $196 million, reflecting a 41% increase due to higher demand in the U.S. and early uptake in Europe [5] - HPV vaccines, Gardasil and Gardasil 9, saw a 25% decline in sales to $1.75 billion, primarily due to lower demand in China and Japan [6] - Capvaxive, a new pneumococcal vaccine, generated $244 million in sales, up from $129 million in the previous quarter [7] - The diabetes drug franchise, Januvia/Janumet, saw a 29% increase in sales to $624 million, driven by higher net pricing in the U.S. [8] Animal Health Segment - The animal health segment generated revenues of $1.62 billion, a 9% increase year-over-year, driven by higher demand for livestock products [11] 2025 Guidance - Merck narrowed its 2025 sales guidance to $64.5-$65.0 billion, reflecting a slight adjustment from the previous range [12] - Adjusted EPS guidance for 2025 was raised to a range of $8.93 to $8.98, incorporating a revised negative impact from foreign exchange [13] - The updated EPS outlook includes benefits from a revised AstraZeneca deal and improved operations, partially offset by costs from the acquisition of Verona Pharma [14][15] Market Reaction - Despite strong Q3 results, Merck's shares fell over 2% in pre-market trading due to Keytruda's weaker-than-expected sales and the narrowed sales guidance [19]

Core Viewpoint - Interparfums, Inc. reported a record third quarter with consolidated sales growth of 1% for both the third quarter and year-to-date periods, driven by consumer interest in prestige and luxury fragrances despite a more selective spending environment [4]. Financial Performance - **Net Sales**: - Total net sales for the three months ended September 30, 2025, were $430 million, a 1% increase from $425 million in 2024. For the nine months ended September 30, 2025, net sales were $1,102 million, also a 1% increase from $1,091 million in 2024 [2]. - **European Operations**: - European based net sales rose 5% to $295 million for the third quarter, and 6% to $784 million for the nine months, supported by strong performance from the Jimmy Choo brand [2][5]. - **United States Operations**: - United States based net sales decreased by 6% to $137 million for the third quarter and by 10% to $327 million for the nine months, with organic net sales down 6% year-to-date, excluding the impact of the discontinued Dunhill license [2][8]. Market Dynamics - **Exchange Rate Impact**: - The average dollar/euro exchange rate for the third quarter of 2025 was 1.17, compared to 1.10 in the same period of 2024, resulting in a positive 2% foreign exchange impact [3]. - **Brand Performance**: - The Jimmy Choo brand grew 16% in the third quarter, while Lacoste fragrances are on track to achieve $100 million in sales this year [5]. - Coach brand sales increased by 6% for the quarter and 18% year-to-date, while Roberto Cavalli fragrance sales rose 44% in the quarter [6][11]. - Donna Karan/DKNY saw a decline of 14% in the third quarter, attributed to high growth levels in the previous year [10]. Management Insights - Management expressed optimism about the resilience of the overall market and the company's innovation and portfolio evolution, despite macroeconomic headwinds [4][12]. - The company is focusing on long-term strategies, innovative product development, and high service levels to expand market share as the industry evolves [12].

Group 1 - The company conducted a pre-close catch-up for Q4 fiscal year 2025, aiming to align all stakeholders before entering the silent period [1] - There has been significant currency volatility, with a 6% devaluation of the U.S. dollar, leading to negative translational headwinds on revenue for the quarter [2] - The company previously projected comparable revenue growth between 5.5% and 6% and adjusted EPS between EUR 2.30 and EUR 2.45 for Q4 [3] Group 2 - Q4 is expected to be the strongest quarter in absolute terms, although it will be less loaded compared to previous quarters [3]

Company and Industry Summary Company Overview - The company reported net sales of **$20.97 billion** for the month, representing an increase of **6.8%** from **$19.64 billion** in the same period last year [3] Sales Performance - Comparable sales results for the month were as follows: - **U.S.**: **4.1%** - **Canada**: **3.3%** - **Other International**: **6.6%** - **Total Company**: **4.3%** - **E-commerce**: **11.6%** [3] - When excluding impacts from changes in gasoline prices and foreign exchange, comparable sales were: - **U.S.**: **5.5%** - **Canada**: **6.3%** - **Other International**: **8.4%** - **Total Company**: **6%** - **E-commerce**: **12%** [4] Traffic and Transaction Insights - Comparable traffic or frequency increased by **3.4%** worldwide and **2.8%** in the U.S. [4] - The average worldwide selling price per gallon of gas decreased by approximately **10.4%** year-over-year [5] - Average transaction value increased by **0.9%**, and when excluding gas deflation and foreign exchange, it was up **2.5%** [5] Regional Performance - Strongest comparable sales in the U.S. were observed in the **Northwest**, **Midwest**, and **Los Angeles** regions [6] - Internationally, the best results were in **Mexico**, **Taiwan**, and **Korea** [6] Merchandising Highlights - Foods and sundries showed positive mid to high single-digit growth, with strong performance in: - **Cooler** - **Candy** - **Frozen Foods** - Fresh foods increased by high single digits, particularly in: - **Meat** - **Bakery** - Non-foods also performed well with mid single-digit growth, especially in: - **Jewelry** - **Majors** - **Gift Cards** - Ancillary business sales declined by low to mid single digits, while pharmacy, optical, and hearing aid departments were top performers [7][8] Challenges and Risks - The negative impact of foreign currencies on total and comparable sales was approximately: - **Canada**: **-1.6%** - **Other International**: **-1.0%** - **Total Company**: **-0.4%** [5] - Gas price deflation negatively impacted total reported comparable sales by approximately **-1.3%** [5] - The negative impact of cannibalization was approximately **-70 basis points** for the company in May [6] Future Outlook - The upcoming June reporting period will include five weeks, starting from June 2 and ending July 6, compared to the previous year's five weeks from June 3 to July 7 [8]

Financial Data and Key Metrics Changes - Conagra reported organic net sales of $3.2 billion in Q2, reflecting a 30 basis point increase year-over-year, driven by volume growth in the domestic retail business [19] - Adjusted gross margin was 26.4%, and adjusted operating margin was 15.3%, down 52 and 57 basis points respectively compared to the prior year, but up 110 basis points from Q1 [20] - Adjusted earnings per share (EPS) were $0.70, a decrease of $0.01 from Q2 of the previous year [20] Business Line Data and Key Metrics Changes - Grocery and Snacks segment delivered net sales of $1.3 billion, representing 1.2% organic growth driven by increased volumes and favorable price mix [21] - Refrigerated and Frozen segment also reported $1.3 billion in net sales, flat compared to the prior year, with increased volumes offset by negative price mix [21] - International segment saw organic net sales decline by 0.7%, driven by a 2.4% volume decline, partially offset by a 1.7% increase in price mix [21] Market Data and Key Metrics Changes - Conagra's portfolio held or gained volume share in 67% of its categories in Q2, marking the fifth consecutive quarter of share gains [8] - In the frozen and snacks domains, 87% of the portfolio held or gained volume share in Q2 [9] - The company outperformed its closest peer by 24 percentage points in share performance [10] Company Strategy and Development Direction - The company plans to maintain its strategy focused on brand building and innovation, despite economic pressures and inflation [5][17] - Conagra aims to prioritize top-line momentum and consumer loyalty through continued investments in brand building [17] - Limited pricing actions will be implemented to offset rising cocoa and sugar prices while maintaining a disciplined approach to brand management [17][29] Management's Comments on Operating Environment and Future Outlook - Management noted that inflation and unfavorable foreign exchange rates will pressure profitability in the second half of the fiscal year [5][15] - The expectation for inflation relief has been pushed to fiscal 2026, with ongoing economic pressures shaping consumer purchasing decisions [5][15] - The company updated its guidance for fiscal 2025, expecting organic net sales growth near the midpoint of a range of down 1.5% to flat [18][29] Other Important Information - Conagra generated $754 million in net cash flows from operating activities in the first half of fiscal 2025, down from the prior year [26] - The company has repaid over $600 million of debt in the last twelve months, aiming for a long-term net leverage goal of three times by the end of fiscal 2026 [28][31] - The adjusted tax rate is expected to be approximately 23%, down from 23.5% based on year-to-date favorability [31] Q&A Session Summary Question: What are the expectations for organic net sales growth? - The company now expects full-year organic net sales growth to be near the midpoint of the guidance range of minus 1.5% to flat growth versus fiscal 2024 [29] Question: How is the company addressing inflation and foreign exchange impacts? - Limited pricing actions will be taken to offset some inflation in cocoa and sugar, while the company remains committed to brand investments [17][29] Question: What is the outlook for free cash flow conversion? - The company expects full-year free cash flow conversion to be greater than 100%, with stronger performance anticipated in the second half of the year [28][31]