Financial Data and Key Metrics Changes - First quarter net sales were $15.5 million, a 4.5% decrease compared to the previous year, driven by declines in sales of bibs, toys, and disposable products, partially offset by increases in bedding and diaper bags due to the Baby Boom acquisition [6][7] - Gross profit decreased by $448,000 from the prior year, with gross profit margin declining from 24.5% to 22.7% of net sales, primarily due to increased tariff costs on imports from China [7][8] - GAAP net loss for the first quarter was $1.1 million, or a $0.10 loss per diluted share, attributed to increased tariffs and inventory shortages [8][9] - Cash and cash equivalents totaled $227,000, down from $521,000 at the end of the previous fiscal year, while inventories increased by 13.6% to $31.6 million [9][10] Business Line Data and Key Metrics Changes - Sales of bibs, toys, and disposable products saw a decline, while sales of bedding and diaper bags increased due to the Baby Boom acquisition [6][7] - Marketing and administrative expenses rose from 26.3% to 30.5% of net sales, reflecting increased costs associated with the Baby Boom acquisition and higher advertising expenses [7][8] Market Data and Key Metrics Changes - The company noted a significant reduction in inventory levels at major retailers, with one retailer's supply dropping from ten weeks to one to two weeks, indicating potential pent-up demand [31][32] Company Strategy and Development Direction - The company is focused on navigating the challenges posed by tariffs and inflation while executing its long-term strategic plan, including expanding its product portfolio and renewing its license agreement with Disney [4][11] - The acquisition of Baby Boom is expected to drive growth, and the company is optimistic about sales trends observed in July [4][11] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the fiscal year, despite ongoing challenges from tariffs and inflation impacting consumer spending [4][11] - The company is hopeful that price increases implemented in response to tariffs will help restore profitability [17][36] Other Important Information - The company declared an $0.08 per share cash dividend, maintaining its commitment to returning value to shareholders [10] Q&A Session Summary Question: Target's Direct Sourcing Strategy - Management hopes that Target's potential reduction in direct sourcing could create opportunities for Crown Crafts to regain programs previously taken over by Target [16] Question: Profitability with 30% Tariff - Management is optimistic about mitigating tariff impacts through price increases and believes profitability can be achieved in the future [17] Question: Expanding Manhattan Toy Sales Overseas - Management sees opportunities for expanding Manhattan Toy sales overseas, especially after consolidating distribution channels [19] Question: Promotion of Products Featured on Netflix - Management confirmed that they are promoting products featured in popular shows and leveraging social media for marketing [20][21] Question: Stabilization of Manhattan Toy Operations - Management believes that operations at Manhattan Toy have stabilized and are seeing improvements in product lines [22][23] Question: Sales Feedback from LEGOLAND Shanghai - Initial sales for plush figures at LEGOLAND Shanghai exceeded expectations, indicating strong demand [24] Question: Sales Performance of Stella Dolls - Management reported that sales of redesigned Stella dolls are performing well, despite previous inventory challenges [25][26] Question: Dividend Sustainability - Management expressed confidence in the company's cash flow and balance sheet, indicating no immediate concerns regarding the dividend [36]

Financial Data and Key Metrics Changes - The company reported earnings of $0.65 per share for Q2 2025, with total loans growing by 1% quarter over quarter and 3% year over year [8][10] - Net interest income reached $300 million, marking a 17% increase compared to the same period last year, and was the highest in the company's history [10][18] - The return on tangible common equity was 12.96%, reflecting a 62 basis point improvement from Q1 [12] Business Line Data and Key Metrics Changes - Commercial and industrial (C&I) loans grew by over $700 million in the first half of 2025, with $356 million added in Q2 alone [6][9] - Total average quarterly loans increased by nearly $400 million compared to Q1, driven primarily by C&I growth [14] - Non-interest income for Q2 was $67 million, a 3% increase year over year, with fee-based revenues and capital markets income contributing to this growth [11][23] Market Data and Key Metrics Changes - Core customer deposits were up 4.3% compared to the same period last year, despite seasonal outflows in Q2 [10][15] - The net interest margin climbed above 3%, with a 29 basis point increase year over year [13][18] - The securities book increased to $9 billion, with an overall yield of 4.24% [22] Company Strategy and Development Direction - The company is focused on executing its strategic plan, which includes enhancing profitability through a mix shift in its asset base and deepening customer relationships [5][12] - The strategy involves replacing lower-yielding residential mortgage loans with higher-yielding C&I loans, aiming for total bank loan growth of 5% to 6% for the year [12][15] - The company remains open to potential acquisitions but emphasizes that any opportunity must align strategically, financially, and culturally with its goals [68][70] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to grow core customer deposits in the second half of the year, citing strong household growth trends and a growing commercial pipeline [16][41] - The management team remains vigilant regarding credit quality, with a proactive approach to managing portfolios amid macroeconomic uncertainties [7][30] - The company expects net interest income growth of 14-15% in 2025, assuming three Fed rate cuts [20] Other Important Information - The company added 19 basis points to its CET1 capital so far in 2025, reflecting a strong capital position [7][25] - Non-accrual loans decreased by 16%, indicating improved credit quality [11][31] - The efficiency ratio improved to below 56%, the lowest level since early 2023 [24] Q&A Session Summary Question: Seasonal decline in deposits - Management acknowledged the seasonal decline but noted that it was anticipated and that the commercial pipeline for deposits has increased significantly [38][40] Question: Update on office CRE portfolio - Management indicated that the office CRE portfolio is evolving positively, with proactive clients benefiting from improvements [47][49] Question: Margin outlook and deposit pricing strategy - Management discussed the importance of asset remixing for margin strength and emphasized disciplined pricing strategies for deposits [54][60] Question: Thoughts on acquisitions - Management reiterated that any acquisition would need to be a good strategic, financial, and cultural fit, while focusing on executing the current strategic plan [68][70] Question: ACL increase for C&I portfolio - Management explained that the increase in the allowance for credit losses (ACL) for the C&I portfolio is due to growth in that segment, reflecting a proactive risk management approach [71][72]

Financial Data and Key Metrics Changes - Fiscal year 2025 saw diluted earnings per share increase by 9% to $14.64, with net income reaching a record $547 million and EBITDA at $1.2 billion, up 13% from the previous year [8][19] - Total inside sales grew by 10.9%, with same-store sales up 2.6%, while prepared food and dispensed beverage sales increased by 10.3% [9][13] - Inside margin expanded by 50 basis points year-over-year to 41.5%, driven by effective vendor partnerships [9][10] Business Line Data and Key Metrics Changes - Total prepared food and dispensed beverage sales rose by 9.7% to $392 million, while grocery and general merchandise sales increased by 13.5% to $1.02 billion [13][14] - Same-store prepared food and beverage sales were up 1.5%, with an average margin of 57.8%, despite a 30 basis point decline from the previous year [14] - Same-store grocery and general merchandise sales increased by 1.8%, with an average margin of 34.8%, up 40 basis points year-over-year [15] Market Data and Key Metrics Changes - Fuel gross profit increased by 11%, with total fuel gallons sold up 13% and an average fuel margin of 38.7 cents per gallon [10][19] - Retail fuel sales rose by $162 million, primarily due to a 17.8% increase in total gallons sold, despite a 9% decline in average retail price [17] Company Strategy and Development Direction - The company emphasized a two-pronged approach of building and acquiring stores, achieving the largest store growth year in its history with 35 new builds and 235 units acquired [7][8] - The strategic plan focuses on accelerating food business, growing unit numbers, and enhancing operational efficiency, with a target of opening at least 80 stores in fiscal year 2026 [24][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business model's strength and durability, anticipating EBITDA growth of 10% to 12% in fiscal year 2026 [21] - The company expects same-store sales growth of 2% to 5% and operating expenses to increase by approximately 8% to 10% [21][22] Other Important Information - The effective tax rate for the quarter was 23%, compared to 22.4% in the prior year, with net interest expense rising to $27.9 million due to financing associated with acquisitions [19][18] - The company plans to allocate approximately $125 million for share repurchases in fiscal year 2026, funded entirely by operating cash flow [21][85] Q&A Session Summary Question: Fuel margins performance and synergies - Management noted that fuel margins exceeded expectations due to effective pricing management and improved procurement capabilities [31][32] Question: Same-store sales outlook for fiscal year 2026 - Management expressed comfort with the guidance range, attributing conservatism to current economic conditions and customer behavior [42][43] Question: Impact of illicit vape on sales - Management acknowledged a negative impact from illicit vape but noted strong growth in nicotine alternatives [52][53] Question: Operating expenses guidance - Management indicated that operating expenses would see mid-teen increases in the first half of fiscal year 2026, primarily due to the integration of acquired stores [60][62] Question: Share buyback strategy - Management clarified that the $125 million share buyback would be funded by operating cash flow, with no debt draw required [81][85]

Financial Data and Key Metrics Changes - Fiscal year 2025 saw diluted earnings per share reach $14.64, a 9% increase from the prior year [9] - The company generated a record $547 million in net income and $1.2 billion in EBITDA, marking a 13% increase from the previous year [9] - Total inside sales grew by 10.9% during the year, with inside same-store sales up 2.6% [10] - Total operating expenses increased by 14.5% or $84 million in the fourth quarter, with approximately 12% attributed to unit growth [19] Business Line Data and Key Metrics Changes - Total prepared food and dispensed beverage sales grew by 10.3%, with same-store sales up 3.5% [10] - Total grocery and general merchandise sales increased by 11.2%, with same-store sales up 2.3% [10] - Fuel gross profit rose by 11%, with total fuel gallons sold up 13% [11] Market Data and Key Metrics Changes - Same-store fuel gallons sold increased by 0.1% with a fuel margin of 37.6¢ per gallon [17] - Retail fuel sales rose by $162 million in the fourth quarter, primarily due to a 17.8% increase in total gallons sold [19] Company Strategy and Development Direction - The company aims to open at least 80 stores in fiscal year 2026, contributing to a total of approximately 500 stores over a three-year strategic plan [24] - The strategic plan focuses on accelerating the food business, growing the number of units, and enhancing operational efficiency [27] - The company is committed to improving operating expense management and generating more free cash flow [31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business model's strength and durability, indicating the ability to succeed in various economic climates [12] - The company expects EBITDA to increase between 10% to 12% in fiscal year 2026, with inside same-store sales projected to rise by 2% to 5% [23] - Management acknowledged the impact of external factors, including inflation and consumer behavior, on sales outlook [46][62] Other Important Information - The effective tax rate for the quarter was 23%, compared to 22.4% in the prior year [21] - The company plans to allocate approximately $125 million for share repurchases in fiscal year 2026 [23][88] Q&A Session Summary Question: Fuel margins performance and expectations - Management noted that fuel margins exceeded expectations due to effective pricing management and improved procurement capabilities [34] Question: Guidance and synergies from acquisitions - Management discussed the expected headwinds from acquisitions and the anticipated synergies, particularly in fuel pricing and overhead rationalization [36] Question: Inside sales performance and drivers - Management acknowledged that inside sales fell slightly short of expectations due to a softer start in the fiscal year and adverse weather conditions [54] Question: Impact of illicit vape on sales - Management confirmed that illicit vape has negatively impacted the vape category, but noted growth in nicotine alternatives [59] Question: Consumer behavior and promotional strategies - Management indicated that consumer traffic remains stable, with targeted promotions aimed at different income cohorts [61][63] Question: Operating expenses guidance - Management provided insights into the expected cadence of operating expenses, highlighting the impact of acquisitions on the first half of fiscal year 2026 [66] Question: Share buyback strategy - Management clarified that the planned share buybacks would be funded through operating cash flow, with no additional debt drawn [88]

Financial Data and Key Metrics Changes - The company reported a record adjusted EBITDA of nearly $77 million for Q1 2025, a 2.6% increase compared to Q1 2024's adjusted EBITDA of $74.9 million [6][21] - Consolidated net sales increased by 3.7% to over $2.9 billion compared to $2.8 billion in Q1 2024 [7][20] - Gross profit for the quarter rose to $481 million, representing 16.5% of net sales, up from 15.7% in the prior year [20] Business Line Data and Key Metrics Changes - Retail segment sales grew by 19.6% to $947.2 million, driven by recent acquisitions and a 1.6% increase in comparable store sales [23] - Wholesale segment net sales were nearly $2 billion, with military channel sales growing for 13 consecutive quarters, although there was softness in national accounts [9][22] - Retail adjusted EBITDA decreased to $15.1 million from $17.3 million in the prior year due to higher labor and occupancy costs [23] Market Data and Key Metrics Changes - The company experienced an 80 basis point headwind in comparable store sales due to temporary store closures from an ice storm [8][50] - Food at home inflation expectations were revised to 2% for the fiscal year, up from a previous expectation of 1% [28][72] Company Strategy and Development Direction - The company is focusing on a cost leadership program expected to deliver $50 million in annual benefits, with $20 million anticipated in the current year [11][19] - The strategic plan aims to unlock the potential of the retail business, with initiatives improving execution and enhancing the shopper experience [12][30] - Expansion plans include increasing capital deployment into store remodels, convenience store sector growth, and expanding the Hispanic food market footprint [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 2025 targets despite challenging market conditions, reaffirming yearly guidance [16][25] - The company noted that inflationary pressures are stable, with a slight upward trend in food prices [72] - Management highlighted the importance of adapting to consumer trends, including a focus on health and value [80][82] Other Important Information - The company generated $25.8 million in cash from operating activities during the quarter, down from $36.5 million in Q1 2024 [24] - Liquidity at the end of the quarter was approximately $270 million, providing capacity for strategic growth plans [25] Q&A Session Summary Question: Expansion of Hispanic store format - The company currently has four Super Mercado stores in Omaha and plans to open two to three more in the Midwest this year [33][34] Question: Performance of newly acquired stores - Newly acquired Hispanic stores have shown strong performance, leading in both top and bottom line metrics [38] Question: Cost leadership program details - The cost leadership program is expected to deliver $20 million in benefits this year, with most impacts seen in the second half [45][46] Question: Retail profitability pressures in Q1 - The ice storm and pharmacy-related pressures significantly impacted profitability, with losses estimated between $1 million to $2 million due to spoilage [52][54] Question: Competitive environment differences - The company noted similar promotional activities in both wholesale and retail segments, with a strong military business performance [58][61] Question: Food at home inflation expectations - The increase to a 2% inflation expectation reflects a gradual upward trend in the marketplace [72][73] Question: Impact of food stamp changes - The impact from changes in food stamps was slightly negative in Q1, but not significantly amplified due to a low proportion of shoppers using SNAP [85] Question: M&A activity outlook - The company remains open to acquisition opportunities, actively seeking both smaller tuck-in acquisitions and larger opportunities [87]