Resideo Technologies (NYSE:REZI) Fireside Chat November 18, 2025 08:00 AM ET Company ParticipantsMike Carlet - CFORob Aarnes - President of P&S and CEO of ADI Post SpinNeil Matalia - Catalyst Driven InvestmentsOperatorHello and welcome. Please note members of the Media and Press are not authorized to participate in this event and should disconnect from the call now. The content presented on this conference is proprietary to and/or subject to copyright subjects to 3rd parties. You may not generally record, t ...

Summary of Brilliant Earth Group (BRLT) FY Conference Call - August 27, 2025 Company Overview - **Company**: Brilliant Earth Group (BRLT) - **Industry**: Jewelry - **Market Size**: $350 billion global jewelry industry [5][10] Core Business Insights - **Mission**: To be the next generation fine jeweler, connecting with consumers through an authentic mission-driven brand [3][4] - **Target Audience**: Primarily consumers aged 25 to 44 with household incomes between $100,000 to $200,000 [6] - **Product Offerings**: Proprietary collections such as the Jane Goodall collection and the Soul collection, which are unique to Brilliant Earth [4][7] Business Model and Strategy - **Omnichannel Experience**: Seamless shopping experience across showrooms, website, and customer service [4][5] - **Data and Technology**: Capital-efficient model leveraging data and technology to adapt quickly to market trends [5][10] - **Supply Chain**: Globally diversified supply chain reducing dependence on any single geography [8][9] Financial Performance - **Growth Rate**: 16% CAGR from 2019 to 2024, with gross profit margin increasing from 42% in 2019 to 60% in 2024 [12][13] - **Q2 Performance**: - Net sales of $109 million, a 3% increase [14] - Average order value (AOV) of $2,074 [14] - 18% year-over-year growth in total orders and 11% in repeat orders [14] - Gross margin of 58.3% [14] - Adjusted EBITDA of $3.2 million, marking the sixteenth consecutive quarter of positive adjusted EBITDA [15] Inventory and Working Capital - **Inventory Turns**: Approximately four times, compared to the industry average of one to two times [11][23] - **Virtual Inventory Model**: Allows for a diverse product assortment while keeping balance sheet inventory low [23] Market Opportunities - **Fragmented Industry**: Two-thirds of the jewelry industry consists of smaller independent players, presenting an opportunity for market share capture [10] - **Fine Jewelry Growth**: Significant growth in fine jewelry bookings, up 38% year-over-year, indicating a strategic focus on this segment [16] Future Outlook - **Growth Targets**: Aiming for low teens year-over-year growth by 2027, supported by showroom expansion and brand awareness [29] - **Gross Margin Target**: Maintaining high 50s percentage gross margin through 2027 [30] - **Adjusted EBITDA Margin**: Targeting a double-digit margin by 2027 [30] Brand Highlights - **Celebrity Engagements**: Collaborations with celebrities like Beyoncé and Selena Gomez, enhancing brand visibility [21][22] - **Showroom Performance**: Strong double-digit metro uplift in sales post showroom openings, with 81% growth in orders from walk-in customers without appointments [25][27] Capital Structure - **Debt Management**: Paid off outstanding term loan balance of under $35 million, ending Q2 with $99 million in net cash [17][24] - **Share Buyback Program**: Executed share buybacks totaling $1 million [41] Conclusion - **Strategic Positioning**: Brilliant Earth is well-positioned to capture growth in the fragmented jewelry market through its unique brand, innovative product offerings, and efficient operational model [31]

Summary of Brilliant Earth Group (BRLT) Conference Call - August 19, 2025 Company Overview - **Company Name**: Brilliant Earth Group (BRLT) - **Founded**: February 2005 - **Mission**: To create a more transparent, sustainable, and compassionate jewelry industry - **Business Model**: Asset-light, data and technology-enabled, with a focus on omnichannel experience across 42 showrooms and digital platforms [3][4] Consumer Insights - **Typical Consumer Profile**: Ages 25 to 44, with an annual household income of $100,000 to $200,000 - **Shopping Behavior**: Consumers prioritize meaningful brand connections and seamless shopping experiences across various touchpoints [5][6] - **Bridal Jewelry**: This category remains resilient, with total orders growing 18% year-over-year [6] Omnichannel Strategy - **Retail Strategy**: Showrooms drive incremental revenue, with strong double-digit metro bookings uplift in the year after opening [9][10] - **Walk-in Purchases**: Q2 saw an 81% year-over-year order uplift for retail customers without scheduled appointments [10] Competitive Differentiators - **Brand Authenticity**: Focus on transparency and sustainability in sourcing [11] - **Product Offering**: Proprietary, beautifully designed products, including award-winning collections [12] - **Data Technology**: Strong data and AI-enabled model to enhance customer experience and operational efficiency [12] Marketing and Customer Acquisition - **Brand Awareness**: Gained through high-profile endorsements and social media, contributing to organic growth [14] - **Repeat Purchases**: Achieved 11% year-over-year growth in repeat orders in Q2, driven by the fine jewelry collection [15] Financial Performance - **Growth Metrics**: 16% five-year CAGR from 2019 to 2024, with gross margins expanding from 42% to 60% [17] - **EBITDA**: 16 consecutive quarters of positive adjusted EBITDA [17] - **Cash Position**: Ended Q2 with approximately $99 million in net cash, a 5% year-over-year increase [18] - **Dividend Declaration**: Announced a one-time dividend of approximately $25.3 million [18] Seasonality - **Sales Trends**: Q4 is the largest quarter due to gifting, but purchases occur throughout the year for various occasions [21] Strategic Levers for Success - **Key Strategies**: Premium brand positioning, differentiated business model, data-driven decision-making, and seamless omnichannel platform [22] Conclusion - **Outlook**: The company is well-positioned to continue growing and gaining market share in the jewelry industry while maintaining profitability and making long-term investments [19][22]

Financial Data and Key Metrics Changes - Tapestry reported a record revenue of $7 billion for fiscal year 2025, with an operating margin of 20% and adjusted EPS of $5.1, all showing significant growth compared to the previous year [5][27]. - The company achieved a 5% revenue growth overall, with Coach leading at 10% growth [27][28]. - Gross margins increased by 210 basis points, and EPS grew by 19% year-over-year [27][31]. Business Line Data and Key Metrics Changes - Coach experienced a 10% revenue increase for the year, with a 13% constant currency growth in Q4, driven by strong performance in North America (up 16%), China (up 22%), and Europe (up 12%) [11][28]. - Kate Spade's revenue decreased by 13% in Q4, reflecting ongoing brand reset efforts, while the company is focused on increasing brand awareness and customer acquisition [19][21]. - Stuart Weitzman was sold to Caleres, aligning with Tapestry's strategy for disciplined capital allocation [24]. Market Data and Key Metrics Changes - North America sales increased by 8%, with significant contributions from Coach [28]. - In Europe, revenue grew by 10%, driven by local consumer spending and new customer acquisition, particularly among Gen Z [29]. - Greater China saw an 18% revenue growth, indicating strong performance across all channels, especially digital [29]. Company Strategy and Development Direction - Tapestry aims to leverage its competitive advantages, global scale, and strong fundamentals to drive sustainable growth [10][25]. - The company is focused on building emotional connections with younger consumers, particularly Gen Z and millennials, to enhance customer lifetime value [7][12]. - Tapestry is investing in brand marketing and product innovation to strengthen its market position and drive future growth [21][23]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating a complex macroeconomic environment, highlighting the resilience and agility of the business [6][10]. - The company anticipates continued mid-single-digit revenue growth for fiscal year 2026, despite facing tariff-related challenges [39][40]. - Management emphasized the importance of customer acquisition and retention, particularly among younger demographics, as a foundation for future growth [66][67]. Other Important Information - Tapestry returned $2.3 billion to shareholders in fiscal year 2025, including $300 million in dividends and $2 billion in share repurchases [32][33]. - The company recorded a non-cash impairment charge of over $850 million related to Kate Spade, reflecting current business trends and strategic investments [36]. Q&A Session Summary Question: Can you help us unpack your outlook for fiscal '26 and what you're seeing in the business right now? - Management highlighted strong top-line results and continued growth momentum, particularly at Coach, while acknowledging tariff impacts [50][52]. Question: Can you help us with the data or the new customer growth? - Management noted significant new customer acquisition, particularly among Gen Z and millennials, which is expected to drive future growth [66][67]. Question: Can you talk about structurally what is different today for Coach? - Management emphasized the brand's direct-to-consumer focus, geographic diversification, and data-driven decision-making as key structural advantages [94][96]. Question: Can you elaborate on the phasing of gross margin for fiscal '26? - Management indicated that gross margins would be stronger in the first half of the year, with tariff impacts expected to affect the second half [86][87].

Summary of Brilliant Earth Group (BRLT) FY Conference Call Company Overview - **Company**: Brilliant Earth Group (BRLT) - **Industry**: Jewelry - **Market Position**: Positioned as a next-generation jeweler catering to millennial and Gen Z consumers with a focus on authenticity and mission-driven branding [2][4] Core Insights and Arguments - **Business Model**: The company operates an asset-light, data-driven model that allows for agility in responding to market trends, which is advantageous in the fragmented jewelry industry [3][8] - **Customer Demographics**: The primary customer base consists of millennials and Gen Z with household incomes between $100,000 and $200,000, who value a seamless and personalized shopping experience [4][5] - **Market Size**: The global jewelry industry is valued at approximately $350 billion, with two-thirds comprised of smaller independent retailers, presenting an opportunity for Brilliant Earth to gain market share [8] - **Sales Growth**: The company achieved a 16% compound annual growth rate (CAGR) in net sales from 2019 to 2024, while gross profit margins increased from the low 40s to 60% [9][10] - **Q1 2025 Performance**: Reported net sales of $94 million with an average order value of over $2,000, and a gross margin of 58.6% [11][12] Financial Highlights - **Adjusted EBITDA**: Achieved $1.1 million in adjusted EBITDA for Q1 2025, marking consecutive quarters of positive adjusted EBITDA since going public [11] - **Cash Position**: Ended Q1 2025 with $92.5 million in net cash, reflecting a year-over-year growth of 5% [12][16] - **Inventory Efficiency**: The company reported inventory turns of four times, significantly higher than the industry average of one to two times, indicating efficient working capital management [15][19] Strategic Initiatives - **Product Expansion**: Focus on increasing the share of fine jewelry, which contributed 14% of total bookings in Q1, representing a growth opportunity beyond engagement and wedding rings [13][14] - **Showroom Growth**: Opened new showrooms, bringing the total to 42, which are expected to drive incremental bookings and enhance customer engagement [20][21] - **Innovation and Technology**: Emphasis on investing in data, systems, and processes to drive operational efficiencies and sustainable growth [21][22] Long-term Goals - **Sales Growth Target**: Aiming for low teens year-over-year growth in net sales by 2027, driven by improvements in engagement rings and fine jewelry sales [22][23] - **Gross Margin Target**: Targeting high 50s gross margin percentage through 2027 by focusing on premium brand positioning and procurement efficiencies [23] - **Adjusted EBITDA Margin**: Aiming for a double-digit adjusted EBITDA margin by 2027 [24] Additional Noteworthy Points - **Celebrity Engagement**: Highlighted a collaboration with Beyoncé, which included a unique jewelry piece, showcasing the brand's appeal to influencers and celebrities [18] - **Omnichannel Experience**: Commitment to creating a seamless omnichannel experience for customers, integrating digital and physical touchpoints [20][24] This summary encapsulates the key points from the Brilliant Earth Group's FY conference call, highlighting the company's strategic positioning, financial performance, and future growth initiatives.

Financial Data and Key Metrics Changes - Q4 net sales were $119.5 million, representing a 4% decline year-over-year, while full-year net sales reached $422.2 million, a 5% decline year-over-year [7][30] - Total orders grew by 10% year-over-year in Q4 and 7% year-over-year for the full year, with repeat orders increasing by 18% in Q4 and 17% for the full year [8][30] - Gross margin expanded by 90 basis points year-over-year in Q4 to 59.6%, and by 270 basis points for the full year to 60.3% [9][32] - Adjusted EBITDA for Q4 was $6.9 million, with a margin of 5.8%, significantly exceeding guidance, while full-year adjusted EBITDA was $21.1 million, or a 5% margin [11][33] Business Line Data and Key Metrics Changes - Engagement rings showed improved year-over-year unit comps in Q4, with strong performance in price ranges under $5,000 [13][14] - The fine jewelry segment recorded strong double-digit bookings growth in Q4, contributing 27% of total bookings, a 600 basis point increase year-over-year [17][21] - The company launched the Flawless Collection, which has performed strongly, indicating customer trust in the brand [15] Market Data and Key Metrics Changes - The company opened new showroom locations in New York City and Boston, contributing to increased customer engagement and bookings [20][21] - The fine jewelry assortment saw significant growth, particularly during the holiday season, indicating a shift in consumer preferences towards gifting and self-purchase [18][19] Company Strategy and Development Direction - The company aims to drive sustainable long-term growth by enhancing the omnichannel experience, offering premium products, and investing in brand amplification [23][24] - Plans for 2025 include expanding showroom locations and continuing to innovate product offerings, particularly in fine jewelry [24][25] - The company is focused on maintaining a premium brand positioning while navigating a dynamic macroeconomic environment [25] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the trajectory of the bridal business and the overall engagement ring market, anticipating continued improvement in unit trends [26][63] - The company expects Q1 net sales to be slightly down year-over-year but anticipates a slight sequential improvement from Q4 [26][27] - For the full year, net sales are expected to grow slightly, with profitability anticipated to be lower due to strategic investments [27][43] Other Important Information - The company ended Q4 with approximately $162 million in cash, reflecting a year-over-year increase, and a net cash position of approximately $106 million [39][40] - The company has a disciplined approach to managing expenses, with operating expenses as a percentage of net sales slightly increasing year-over-year [34][38] Q&A Session Summary Question: What is the gross margin guidance for 2025? - Management expects a high-50s gross margin for 2025, driven by brand strength and procurement efficiencies [48][49] Question: What strategies are in place to drive repeat orders? - The company focuses on brand resonance and customer experience, along with introducing new collections to drive repeat orders [51][54] Question: What are the engagement trends and how do they affect guidance? - Management noted improvements in engagement ring unit trends and expects continued growth driven by showroom investments and fine jewelry success [63][66] Question: How does the company view the balance between physical and digital sales? - The company sees opportunities in both channels and is strategic about showroom locations to enhance customer experience [71][72] Question: What are the key features of the investment story that may be underappreciated? - The company's consistent profitability, strong cash position, and unique brand resonance are highlighted as key strengths [73][75]