Financial Data and Key Metrics Changes - The company reported consolidated net sales of $154.4 million, a 1% increase compared to the previous year [4] - Gross margin improved to 56.2%, up 150 basis points sequentially from the fourth quarter and 140 basis points year-over-year [7][30] - Operating income declined 7% to $23.3 million, while net income fell 8% to $17.5 million [30] - Diluted earnings per share were $1.28, reflecting an 8% decrease from the previous year [30] Business Line Data and Key Metrics Changes - Maintenance products accounted for approximately 96% of total net sales, reaching $148.9 million, a 2% year-over-year increase [4] - Sales in the Americas increased by 4% to $71.9 million, with maintenance products growing by 5% [8] - Sales of WD-40 Specialist products rose 18% to $22.5 million [16] - Home care and cleaning product sales declined 18%, reflecting a strategic shift towards higher-margin maintenance products [9] Market Data and Key Metrics Changes - Sales in Asia Pacific decreased by 10% to $23.9 million, with WD-40 Multi-Use Product sales down 12% [11] - In EIMEA, net sales were $58.7 million, a 5% increase, driven by a 27% increase in WD-40 Specialist sales [10] - Sales in India increased by $1.4 million, while sales in China grew by 8% [14] Company Strategy and Development Direction - The company is focused on its 4x4 strategic framework, emphasizing maintenance products and geographic expansion [4][13] - The Must-Win Battles include accelerating revenue growth in maintenance products, premiumization, and driving WD-40 Specialist growth [15] - The company aims to capture approximately $1.4 billion in growth potential for its flagship WD-40 Multi-Use Product [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in a strong rebound later in the fiscal year, despite a slower start [6][34] - The company anticipates solid growth across all three trade blocs in the second quarter [7][37] - Management highlighted the importance of promotional activities and customer order patterns in driving future performance [21][42] Other Important Information - The company reaffirmed its fiscal year 2026 guidance, expecting net sales between $630 million and $655 million [34] - A quarterly cash dividend of $1.02 per share was approved, reflecting an increase of over 8% from the previous quarter [31] - The company repurchased approximately 39,500 shares at a total cost of $7.8 million during the first quarter [31] Q&A Session Summary Question: What indicators point to strong results? - Management indicated confidence in achieving mid to high end of guidance due to scheduled promotional activities [40][41] Question: Are there signs of recovery in Asia distributor markets? - Management confirmed early signs of recovery in Asia distributor markets, with expectations for stronger results in the second quarter [44] Question: Can you elaborate on supply chain cost reduction efforts? - Management discussed new sourcing strategies and structural changes to reduce costs, particularly in can and specialty chemical sourcing [53][54] Question: Is the guidance for gross margins sustainable? - Management expressed confidence in maintaining gross margins above 55%, while acknowledging external risks [61][62]

Financial Data and Key Metrics Changes - The company reported consolidated net sales of $154.4 million, a 1% increase compared to the previous year [4] - Gross margin improved to 56.2%, up 150 basis points sequentially from the fourth quarter and 140 basis points year-over-year [6][34] - Operating income declined 7% to $23.3 million, while net income fell 8% to $17.5 million [27] - Diluted earnings per share were $1.28, reflecting an 8% decrease from the previous year [28] Business Line Data and Key Metrics Changes - Maintenance products accounted for approximately 96% of total net sales, with net sales reaching $148.9 million, a 2% year-over-year increase [4] - Sales in the Americas increased by 4% to $71.9 million, with maintenance products growing by 5% [8] - Sales of WD-40 Specialist products rose 18% to $22.5 million, indicating strong growth potential [15] Market Data and Key Metrics Changes - Sales in Asia Pacific decreased by 10% to $23.9 million, with a notable decline in distributor markets [11] - In OMEA, net sales increased by 5% to $58.7 million, driven by a 27% increase in WD-40 Specialist sales [10] - The Americas segment represented 47% of global business, while OMEA accounted for 38% and Asia Pacific for 15% [9][12] Company Strategy and Development Direction - The company is focused on its 4x4 strategic framework, emphasizing maintenance products and geographic expansion [4] - The Must-Win Battles include accelerating premiumization, driving WD-40 Specialist growth, and enhancing digital commerce [14][15][16] - The company aims to capture approximately $1.4 billion in growth potential for its flagship WD-40 Multi-Use Product [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in a strong rebound later in the fiscal year, despite a slower start [5][31] - The company anticipates solid growth in the second quarter, with promotional activities already scheduled [36] - Management highlighted the importance of operational excellence and employee engagement, achieving a record high employee engagement index score of 95% [17][34] Other Important Information - The company reaffirmed its full-year 2026 guidance, expecting net sales between $630 million and $655 million, representing a growth of 5% to 9% [32] - A quarterly cash dividend of $1.02 per share was approved, reflecting an increase of over 8% from the prior quarter [29] - The company is actively progressing on the divestiture of its home care and cleaning business, with ongoing discussions with potential buyers [30] Q&A Session Summary Question: What indicators point to strong results? - Management indicated confidence based on scheduled promotional activities and expected recovery in the Americas and Asia-Pac markets [36] Question: Is the guidance for the mid to high end of the range more bullish than previously stated? - Management confirmed that the confidence in achieving the mid to high end of the range is based on locked-in promotional activities [36] Question: Are there signs of recovery in Asia distributor markets? - Management confirmed early signs of recovery in Asia distributor markets, with expectations for stronger results in the second quarter and back half of the year [38] Question: What steps are being taken to reduce supply chain costs? - Management detailed initiatives in global sourcing and distribution network optimization to reduce costs [40][42]