Financial Data and Key Metrics Changes - In Q1, the company experienced an organic sales decline of approximately 3%, with underlying performance showing a negative 1% when excluding ERP impacts and out-of-stock issues [27][32] - The company expects organic sales growth in the front half of the fiscal year to be negative, low single digits, while the back half is anticipated to be positive, low single digits [9][10] - The company refined its estimates for ERP-related sales headwinds from a range of 7-8 percentage points to a point estimate of 7.5 percentage points [72] Business Line Data and Key Metrics Changes - The company launched a new ERP system in the U.S., which is expected to strengthen operations and unlock new value streams [5] - Innovations are planned across major brands, including new products in Glad and Brita, aimed at capturing consumer interest and addressing market challenges [38][39] - The trash bags and cat litter categories are facing increased promotional activity and competitive pressure, impacting market share [41][42] Market Data and Key Metrics Changes - The U.S. retail category is expected to grow at a muted rate of 0-1%, below historical averages, with improvements anticipated in the back half of the year [9][10] - The company is observing a stable consumer wallet, but significant changes in spending behavior are noted, leading to a more competitive environment [16][17] - The company is monitoring private label competition closely, particularly in categories like Brita and bleach, where some consumers are trading down [65][66] Company Strategy and Development Direction - The company is focused on demand creation plans to deliver superior value to consumers and reinvigorate category growth [5] - There is a strong emphasis on innovation across all major brands, with plans to launch new products that address consumer needs and preferences [39] - The company maintains a long-term focus on strengthening its core brands while exploring portfolio adjustments to enhance shareholder value [53][55] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to navigate the current competitive landscape and deliver expected performance despite challenges [96] - The company is optimistic about the benefits of the new ERP system, which is expected to enhance operational efficiency and consumer value [84] - Management is closely watching consumer behavior and market dynamics, indicating a readiness to adapt strategies as needed [81] Other Important Information - The company has seen a slight improvement in commodity costs, leading to a more favorable outlook for input costs and inflation [21][22] - Promotional spending has increased in certain categories, but overall promotional activity remains rational [17] Q&A Session Summary Question: Can you provide insights on organic sales growth expectations for the second quarter and the rest of the year? - Management indicated that organic sales growth in the front half would be negative, low single digits, while the back half is expected to show positive growth driven by innovation and improved market share [9][10] Question: How is the competitive environment affecting promotions and pricing strategies? - Management noted increased promotions in certain categories, with a generally rational competitive environment, while also emphasizing the need to balance short-term share loss with long-term value creation [16][17] Question: What is the company's outlook on gross margins and cost pressures? - Management expects gross margins to expand in the back half of the year, despite some operational challenges and increased trade spending [23][24] Question: How is the company addressing market share challenges in key categories? - Management acknowledged a decline in market share due to ERP implementation but expressed confidence in plans to regain share through innovation and targeted spending [32][33] Question: Can you elaborate on the company's innovation plans for the second half of the year? - Management highlighted ongoing innovations across major brands, including new product launches in Glad and Brita, aimed at capturing consumer interest and addressing competitive pressures [38][39]