Fortunately, while we will continue to see negative impacts from tariffs, we believe the worst is behind us. Order patterns from our wholesale customers are normalizing, and we are mitigating a larger percentage of the gross margin pressure through strategic pricing actions and sourcing initiatives. Most importantly, underlying consumer demand for our brands and products is strong. Despite the noise from tariffs, our team has stayed laser-focused on executing our strategy to deepen consumer connections thro ...

Financial Data and Key Metrics Changes - Consolidated revenue for Q3 2025 was $667.9 million, a 6.9% increase compared to Q3 2024. Excluding Kurt Geiger, revenue decreased by 14.8% [9] - Net income attributable to Steve Madden Ltd. for the quarter was $30.4 million, or $0.43 per diluted share, compared to $64.8 million, or $0.91 per diluted share in Q3 2024 [13] - Operating income for the quarter was $46.3 million, or 6.9% of revenue, down from $85.4 million, or 13.7% of revenue in the prior year [12] Business Line Data and Key Metrics Changes - Wholesale revenue was $442.7 million, down 10.7% compared to Q3 2024. Excluding Kurt Geiger, wholesale revenue decreased by 19% [9] - Direct-to-consumer (DTC) revenue increased by 76.6% to $221.5 million. Excluding Kurt Geiger, DTC revenue increased by 1.5% [9] - Wholesale footwear revenue was $266.5 million, a 10.9% decrease from the comparable period in 2024, or down 16.7% excluding Kurt Geiger [9] Market Data and Key Metrics Changes - Comp sales for the Kurt Geiger brand were up mid-teens in Q3 2025, indicating strong consumer response [6] - The company ended the quarter with 397 company-operated retail stores, including 99 outlets, and 7 e-commerce websites [10] Company Strategy and Development Direction - The company is focused on deepening consumer connections through compelling products and effective marketing, particularly for the Steve Madden brand [5] - The acquisition integration of Kurt Geiger is on track, with progress on revenue synergies and cost savings opportunities [7] - The company plans to open a handful of stores in the U.S. for Kurt Geiger next year and expects growth in both retail and wholesale channels [29] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by new tariffs but believes the worst is behind them, with order patterns from wholesale customers normalizing [4] - The company expects revenue to increase by 27%-30% in Q4 2025 compared to Q4 2024, with earnings per share projected in the range of $0.41-$0.46 [14] - Management expressed confidence in improved financial performance in Q4 and the long-term growth potential of their brands and business model [8] Other Important Information - Consolidated gross margin was 43.4%, up from 41.6% in the comparable period of 2023, primarily due to the higher mix of DTC from Kurt Geiger [10] - The company approved a quarterly cash dividend of $0.21 per share, payable on December 26, 2025 [14] Q&A Session Summary Question: How is the fashion developing this fall and inventory levels in the wholesale channel? - Management noted strong performance in the core Steve Madden women's shoe business, particularly in boots, and expressed confidence in spring prospects [17][18] Question: What is the expected revenue contribution from Kurt Geiger in Q4? - Management expects Kurt Geiger's revenue contribution to be between $182 million and $187 million, with over 70% coming from DTC [20][21] Question: How is the margin structure expected to recover? - Management believes all margin erosion is recoverable over time, with tariffs expected to be reflected in retail prices [64][65] Question: What is the outlook for the wholesale business by type? - Management indicated the strongest performance is in regular price channels, while value price channels have faced more pressure [85] Question: How is Kurt Geiger performing by region? - Kurt Geiger is growing in all core regions, including the U.K., U.S., and Europe [42] Question: What are the expectations for international brand growth? - Management anticipates high single-digit revenue growth for Steve Madden internationally in 2025 and strong double-digit growth for Kurt Geiger [73]

Financial Data and Key Metrics Changes - Consolidated revenue for Q3 2025 was $667.9 million, a 6.9% increase compared to Q3 2024. Excluding Kurt Geiger, revenue decreased by 14.8% [9] - Wholesale revenue was $442.7 million, down 10.7% compared to Q3 2024, with a 19% decrease when excluding Kurt Geiger [9] - Direct-to-consumer revenue increased by 76.6% to $221.5 million, with a 1.5% increase when excluding Kurt Geiger [9] - Net income attributable to Steve Madden Ltd. was $30.4 million, or $0.43 per diluted share, compared to $64.8 million, or $0.91 per diluted share in Q3 2024 [13] Business Line Data and Key Metrics Changes - Wholesale footwear revenue was $266.5 million, a 10.9% decrease from Q3 2024, or down 16.7% excluding Kurt Geiger [9] - Wholesale accessories and apparel revenue was $176.2 million, down 10.3% compared to the prior year, or down 22.5% excluding Kurt Geiger [9] - Direct-to-consumer gross margin was 61.9%, down from 64% in the comparable period in 2024 due to tariff pressures and the addition of Kurt Geiger [11] Market Data and Key Metrics Changes - Comp sales for Kurt Geiger London were up mid-teens in Q3 2025, indicating strong consumer response [6] - The company operated 397 retail stores, including 99 outlets, and 7 e-commerce websites as of the end of the quarter [10] Company Strategy and Development Direction - The company is focused on deepening consumer connections through compelling products and effective marketing, particularly for the Steve Madden brand [5] - Strategic pricing actions and sourcing initiatives are being implemented to mitigate gross margin pressure [5] - The integration of Kurt Geiger is on track, with progress on revenue synergies and cost savings opportunities [7] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by new tariffs but expressed confidence that the worst is behind them [4] - There is optimism for improved financial performance in Q4 2025, with expectations of revenue growth of 27%-30% compared to Q4 2024 [14] - Management believes they have the brands and strategy to drive sustainable revenue and earnings growth over the long term [8] Other Important Information - The company declared a quarterly cash dividend of $0.21 per share, payable on December 26, 2025 [14] - Inventory at the end of the quarter was $476 million, compared to $268.7 million in Q3 2024 [13] Q&A Session Summary Question: How is the fashion developing this fall and what are the inventory levels in the wholesale channel? - Management noted strong performance in the core Steve Madden women's shoe business, particularly in boots, and expressed confidence in spring prospects [17][18] Question: What is the expected revenue contribution from Kurt Geiger in Q4? - Management expects Kurt Geiger's revenue contribution to be between $182 million and $187 million, with over 70% coming from DTC [20][21] Question: How is the margin structure expected to recover? - Management believes all margin erosion is recoverable over time, with expectations to return to pre-tariff margins eventually [64][65] Question: What is the performance outlook for wholesale channels? - Strongest performance is seen in regular price channels, while value price channels have faced more pressure [85] Question: How is the international growth outlook for Steve Madden and Kurt Geiger? - Steve Madden is expected to see high single-digit revenue growth internationally, while Kurt Geiger is anticipated to achieve strong double-digit growth [73]

Financial Data and Key Metrics Changes - Consolidated revenue for Q3 2025 was $667.9 million, a 6.9% increase compared to Q3 2024. Excluding the newly acquired Kurt Geiger, consolidated revenue decreased by 14.8% [9] - Net income attributable to Steve Madden Ltd. for the quarter was $30.4 million, or $0.43 per diluted share, compared to $64.8 million, or $0.91 per diluted share in Q3 2024 [12] - Operating income for the quarter was $46.3 million, or 6.9% of revenue, compared to $85.4 million, or 13.7% of revenue in the comparable period in the prior year [11] Business Line Data and Key Metrics Changes - Wholesale revenue was $442.7 million, down 10.7% compared to Q3 2024. Excluding Kurt Geiger, wholesale revenue decreased by 19% [9] - Direct-to-consumer (DTC) revenue increased by 76.6% to $221.5 million. Excluding Kurt Geiger, DTC revenue increased by 1.5% [9] - Wholesale footwear revenue was $266.5 million, a 10.9% decrease from the comparable period in 2024, or down 16.7% excluding Kurt Geiger [9] Market Data and Key Metrics Changes - Comp sales for the new brand, Kurt Geiger London, were up mid-teens in Q3 2025, indicating strong consumer response [6] - The company ended the quarter with 397 company-operated retail stores, including 99 outlets, and 7 e-commerce websites [10] Company Strategy and Development Direction - The company is focused on deepening consumer connections through compelling products and effective marketing, particularly for the Steve Madden brand [5] - The acquisition integration of Kurt Geiger is on track, with progress on revenue synergies and cost savings opportunities [7] - The company plans to open a handful of stores in the U.S. for Kurt Geiger next year and is working on expanding its international presence [28] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges faced in Q3 due to new tariffs on imports but expressed confidence that the worst is behind them [4] - The company expects revenue to increase by 27%-30% in Q4 2025 compared to Q4 2024, with earnings per share projected to be in the range of $0.41-$0.46 [13][14] - Management believes that the underlying consumer demand for their brands remains strong despite tariff-related challenges [5] Other Important Information - The company declared a quarterly cash dividend of $0.21 per share, payable on December 26, 2025 [13] - Inventory at the end of the quarter was $476 million, compared to $268.7 million in Q3 2024 [12] Q&A Session Summary Question: How is the fashion developing this fall and what are the inventory levels in the wholesale channel? - Management noted strong performance in the core Steve Madden women's shoe business, particularly in boots, and expressed confidence in spring prospects [16][18] Question: What is the expected revenue contribution from Kurt Geiger in Q4? - Management expects Kurt Geiger's revenue contribution to be between $182 million and $187 million, with over 70% coming from DTC [19][20] Question: How is the handbag business performing and what are the expectations for apparel? - The handbag business is expected to stabilize as demand improves, while apparel has been a growth story with good sell-throughs in key accounts [46][47] Question: What is the outlook for wholesale performance by channel? - Strongest performance is seen in regular price channels, while value price channels like off-price and mass have faced more pressure [82] Question: How is the company addressing margin recovery? - Management believes that all margin erosion is recoverable over time, with expectations to return to pre-tariff margins in the core business [64]

Core Viewpoint - Kimberly-Clark is acquiring Kenvue in a cash-and-stock deal valued at $48.7 billion, aiming to create a $32 billion global leader in health and wellness by revenue, with 10 brands generating over $1 billion in annual sales each [1][6]. Deal Details - The acquisition involves Kimberly-Clark paying $3.50 in cash and 0.14625 shares of Kimberly-Clark for each Kenvue share, valuing Kenvue shares at $21.01 [3]. - Post-transaction, Kimberly-Clark shareholders will own approximately 54% of the combined entity, while Kenvue shareholders will hold about 46% [3]. - The deal is expected to close in the second half of next year, with Kimberly-Clark funding the $6.8 billion cash component through cash on hand, new debt, and proceeds from selling a 51% interest in its International Family Care and Professional Business [4]. Strategic Rationale - The merger will create a larger-scale consumer healthcare and wellness company, positioning it as the second-largest player in the sector, behind Procter & Gamble [6]. - The combined entity is projected to generate $32 billion in annual revenue and includes major brands like Huggies, Kleenex, Listerine, and Tylenol [6]. - Kimberly-Clark anticipates capturing about $1.9 billion in cost synergies and $500 million in incremental profit from revenue synergies, netting a total benefit of $2.1 billion within four years of closing [7]. Financial Implications - The combined company is expected to maintain a strong financial position to continue paying and growing dividends, with Kimberly-Clark aiming to reduce its leverage ratio to around 2 times within two years post-transaction [11]. - Kimberly-Clark has a history of paying dividends for 91 consecutive years and increasing payments for the past 53 years, while Kenvue has continued the dividend tradition of its former parent, Johnson & Johnson [10]. Challenges and Opportunities - Kenvue has faced market challenges and legal issues since its independence in 2023, including lawsuits related to Tylenol and baby powder products [9][12]. - The larger scale of the combined company is expected to better position it to address these legacy legal issues, although they may still pose risks to stock price and dividend growth [13][15].

Core Viewpoint - The acquisition of Kenvue by Kimberly-Clark is valued at over $40 billion, creating the second largest consumer packaged goods company globally, but Wall Street is skeptical, leading to a 14% drop in stock price [1][2]. Group 1: Rationale for the Acquisition - The merger aims to create a leading global health and wellness company by combining two iconic American brands [3]. - The deal is expected to generate significant shareholder value through both cost and revenue synergies, with potential value creation in the tens of billions [4][5]. - The complementary nature of the product and geographic portfolios is highlighted, with both companies strong in different markets and product categories [7][9]. Group 2: Market Opportunities - Kimberly-Clark has a strong presence in markets like Indonesia, South Korea, and Mexico, while Kenvue excels in India and Western Europe, presenting growth opportunities [11]. - The companies plan to leverage their strengths in online sales, which accounted for 100% of Kimberly-Clark's growth in North America this year [13][14]. Group 3: Legal and Regulatory Considerations - Concerns regarding potential liabilities from lawsuits, particularly related to Tylenol and talc claims, have been acknowledged, but the company is confident in its due diligence and legal strategy [15][16][18][22]. - The acquisition is expected to face scrutiny from regulatory bodies, but the companies believe it will ultimately benefit consumers and shareholders [25][26]. Group 4: Brand Strategy and Consumer Trends - The companies aim to enhance their brand portfolios, with aspirations to grow existing brands and potentially add new ones [27]. - Despite economic challenges, there is evidence of strong demand for premium products, and the companies are adapting to consumer preferences by offering value-oriented options [30][32].

Financial Data and Key Metrics Changes - For Q3 2025, equipment rental revenue increased approximately 30% year-over-year, driven by the acquisition of H&E Equipment Services Inc. and strong contributions from mega projects and specialty solutions [23] - Adjusted EBITDA rose 24% compared to the previous year's third quarter, benefiting from higher equipment rental revenue and used equipment sales [23] - Net income for the third quarter included $38 million of transaction costs related to the acquisition, with adjusted net income at $74 million [25] Business Line Data and Key Metrics Changes - Local accounts represented 52% of rental revenue, down from 53% a year ago on a pro forma basis, while national accounts continue to show robust private funding for large-scale projects [14] - The company is focusing on optimizing its fleet management and has made significant progress in disposing of underutilized and aged equipment [19][20] Market Data and Key Metrics Changes - The industrial spending forecast indicates strong capital and maintenance spending through the end of the decade, with non-residential construction starts in 2025 estimated at $467 billion, a 4% increase year-over-year [16] - The mega project pipeline is projected to exceed $650 billion for 2025, indicating significant growth opportunities in the construction sector [16][17] Company Strategy and Development Direction - The company is prioritizing the integration of H&E Equipment Services Inc. and has paused other M&A initiatives to focus on achieving cost and revenue synergies [10] - Plans include consolidating general rental branches and expanding specialty equipment locations, aiming for a 25% increase in specialty network next year [9][11] Management's Comments on Operating Environment and Future Outlook - Management noted that while local market growth is limited due to high interest rates, robust activity in mega projects continues to drive demand [4][14] - The company remains confident in its ability to deliver full value from the acquisition and achieve long-term growth strategies [10][12] Other Important Information - The company completed a full systems integration in just 90 days, significantly faster than the typical timeline for similar-sized companies [6] - The integration allows for real-time visibility into performance metrics and operational KPIs, enhancing decision-making capabilities [7][8] Q&A Session Summary Question: What is the status of the fleet right-sizing process? - The heavy lifting was completed in Q3, with more work expected in Q4, aiming to close this part of the process by the end of the year [31][33] Question: How does the mix of national accounts impact margins? - Management does not expect significant margin dilution from national accounts or mega projects, as these projects typically involve minimal movement and higher volumes of specialty products [35][36] Question: Can you clarify the consolidation of general rental locations? - The strategy involves opening specialty businesses within general rental branches rather than closing them, with plans for 50 new specialty locations [38] Question: Are there updates on cost and revenue synergies? - Cost synergy targets are evolving, with ongoing efficiency reviews now that the companies are on the same platform [40] Question: How is customer attrition being managed post-acquisition? - Customer attrition has stabilized, and efforts are being made to engage with former H&E Equipment Services Inc. customers to regain business [44][61]

Summary of Skyworks Solutions and Qorvo Conference Call Industry and Companies Involved - **Industry**: RF (Radio Frequency) semiconductor industry - **Companies**: Skyworks Solutions (NasdaqGS:SWKS) and Qorvo Core Points and Arguments 1. **Transaction Overview**: Skyworks and Qorvo are merging to create a U.S.-based global leader in high-performance RF, analog, and mixed-signal semiconductors with a combined enterprise value of approximately $22 billion [6][7][8] 2. **Shareholder Structure**: Upon closing, Skyworks and Qorvo shareholders will own approximately 63.37% of the combined company, with Qorvo shareholders receiving 0.96 shares of Skyworks common stock plus $32.5 in cash for each share of Qorvo [6][7] 3. **Financial Highlights**: The combined company will have revenue of approximately $7.7 billion and adjusted EBITDA of $2.1 billion, with a mobile business valued at $5.1 billion and a diversified broad markets platform worth $2.6 billion [7][8][9] 4. **Cost Synergies**: The transaction is expected to be immediately accretive to non-GAAP EPS post-close, with anticipated annual cost synergies of $500 million or more within 24 to 36 months [8][12] 5. **Market Diversification**: The merger will enhance scale and diversify revenue across various markets, including mobile, defense, aerospace, edge IoT, AI data centers, and automotive [9][10][11] 6. **R&D and Manufacturing**: The combined entity will have enhanced R&D resources and a stronger manufacturing platform, with approximately 8,000 engineers and over 12,000 patents [17][18] 7. **Regulatory Approval**: The companies are confident in obtaining regulatory approvals, expecting to close the transaction early in calendar year 2027 [13][50] 8. **Customer Support**: Both companies have received support from major customers, indicating confidence in the transaction's benefits [22][76] Additional Important Content 1. **Synergy Breakdown**: More than half of the $500 million in synergies are expected to come from operational expenses (OpEx), with the remainder from cost of goods sold (COGS) [23][66] 2. **Long-term Growth Model**: The combined company anticipates mid to high single-digit growth, with the handset market projected to grow in low single digits and broad markets in low double digits [61][62] 3. **Focus on Premium Markets**: The combined company will continue to focus on premium and flagship phone markets, while moving away from lower-margin segments [52][49] 4. **Future M&A Opportunities**: The favorable capital structure of the combined company will allow for potential future mergers and acquisitions [34][35] 5. **Manufacturing Optimization**: Both companies are working to optimize their manufacturing footprints, which is expected to contribute to cost synergies [35][72] This summary encapsulates the key points discussed during the conference call regarding the merger between Skyworks Solutions and Qorvo, highlighting the strategic benefits, financial implications, and future outlook for the combined entity.

Financial Data and Key Metrics Changes - Total revenue increased by 17% year-over-year to $1.5 billion [14] - Adjusted diluted EPS grew by 5% to $1.22, while diluted EPS decreased by 10% to $1.06 [15] - Total expenses rose by 29% to $998 million, primarily due to the Paycor acquisition [15] - Cash flow from operations was $718 million for the first quarter [15] - The company returned $549 million to shareholders through dividends and share repurchases [15] Business Line Data and Key Metrics Changes - Management Solutions revenue increased by 21% to $1.2 billion, driven by the addition of Paycor and higher revenue per client [14] - PEO and Insurance Solutions revenue grew by 3% to $329 million, supported by an increase in average PEO worksite employees [14] - Interest on funds held for clients rose by 27% to $48 million due to the inclusion of Paycor balances [14] Market Data and Key Metrics Changes - The PEO business experienced mid-single-digit worksite employee growth, with strong demand and retention performance [11] - The small business employment environment remains stable, with no signs of recession and moderating wage inflation [11][12] Company Strategy and Development Direction - The integration of Paycor is on track, with targeted revenue synergies and cost synergies expected to exceed initial estimates [4][5] - The company is focusing on cross-selling opportunities, particularly in retirement, ASO, and PEO solutions to Paycor's client base [5][6] - The Partner Plus program for brokers has seen nearly double enrollment, indicating strong momentum in referral channels [7][8] - New product offerings, such as Bill Pay Powered by BILL, aim to enhance service delivery for small and mid-sized businesses [8][9] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about the resilience of small businesses and expects renewed business confidence due to clarity on tariffs, taxes, and inflation [11][12] - The company anticipates total revenue growth for fiscal 2026 to be between 16.5% and 18.5%, with Management Solutions expected to grow by 20%-22% [16][17] - Adjusted operating income margin is projected to be approximately 43% [16] Other Important Information - The company has launched AI-driven tools to enhance client experiences and operational efficiency [9][10] - The integration of Paycor is expected to provide additional growth opportunities and improve overall service offerings [4][5] Q&A Session Summary Question: Update on demand environment and employer size segments - Demand remains consistent with historical trends, with increased activity and solid RPO bookings [20][21] Question: Paycor recurring revenue growth - Recurring revenue growth for Paycor is expected to be double digits for the full year, with Q1 performance in line with expectations [22][23] Question: PEO environment characterization - PEO continues to perform well with mid-single-digit worksite employee growth and record retention [25][26] Question: Direct expenses and SG&A comparison - Direct expenses showed strong leverage, while SG&A expenses were impacted by integration costs [31][32] Question: Paycor integration and recurring revenue - Integration is progressing well, with high retention rates and strong sales performance [38][39] Question: EPS increase drivers - EPS guidance was raised due to strong retention and confidence in achieving cost and revenue synergies [47][48] Question: PEO market competitiveness - The competitive environment remains stable, with a focus on value proposition rather than aggressive pricing [59][60] Question: Bill.com partnership and customer profile - The partnership aims to enhance payment capabilities for small businesses, integrating with existing platforms [65][66] Question: Regulatory environment impact - The company does not expect significant impacts from regulatory changes, with small businesses remaining resilient [82][83]

Transaction Overview - ADS will acquire National Diversified Sales (NDS) for approximately $1 billion, or $875 million when adjusted for expected tax benefits[9] - The transaction value represents a multiple of 10x NDS Adjusted EBITDA from TTM ended June 2025, inclusive of expected run-rate cost synergies[9] - Approximately $25 million of annual cost synergies are expected to be realized by year 3[9, 35] - The transaction is expected to close in the first quarter of CY2026[9] NDS Overview - NDS is a leading U S supplier of residential stormwater management, landscape irrigation and connecting flow management components for water infrastructure[10] - Landscape Irrigation accounts for approximately 30% of NDS' business mix, while Flow Management accounts for approximately 15%[12] - The Americas account for 90% of NDS' geographic revenue[12] Financial Impact - Pro forma net sales including $25 million cost synergies is approximately $3 2 billion[34] - Pro forma adjusted EBITDA including $25 million cost synergies is approximately $980 million[34] - Pro forma adjusted EBITDA margin including $25 million cost synergies is approximately 31%[34]