Financial Data and Key Metrics Changes - Sales increased by 2.7% to $301 million in the first quarter, driven by a 5.7% increase in comparable store sales, partially offset by sales reduction from closed stores [18] - Gross margin decreased by 170 basis points year-over-year, primarily due to higher technician labor costs and material costs [19] - Net loss was $8.1 million compared to net income of $5.9 million in the same period last year, with diluted loss per share at $0.28 compared to diluted earnings per share of $0.19 [22] Business Line Data and Key Metrics Changes - Tire units increased by 3% in the first quarter, with market share gained in higher margin tiers [18] - The company closed 145 underperforming stores, which generated approximately 5% of total sales in fiscal 2025, expected to improve profitability [6][7] Market Data and Key Metrics Changes - Comparable store sales growth was mid-single digits in the quarter, marking two consecutive quarters of positive comps for the first time in years [15] - Preliminary fiscal July comparable store sales were up 2%, indicating a sixth consecutive month of consistent growth [17] Company Strategy and Development Direction - The company is focusing on four key areas for performance improvement: closing unprofitable stores, increasing merchandising productivity, driving profitable customer acquisition, and enhancing customer experience [5] - The onboarding of a new Senior Vice President of Merchandising is expected to improve product availability and assortment [8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's durable business model and strong financial position, despite challenges from tariffs and inflation [27] - The company is not providing specific guidance for fiscal 2026 but expects year-over-year comparable store sales growth driven by the improvement plan [24][25] Other Important Information - The company reduced inventory levels by approximately $10 million due to the reduction in store count [15] - Cash from operations was slightly negative in the quarter, primarily due to timing of vendor payments [23] Q&A Session Summary Question: Improvement in SG&A and impact from store closures - Management noted that SG&A showed improvement year-over-year, with some benefits from closed stores, but only for one month in June [31] Question: Same store sales outlook for the back half of the year - Management indicated confidence in achieving steady year-over-year increases in comparable store sales, focusing on trends rather than monthly fluctuations [35] Question: Details on gross margin decline - The decline was attributed to higher technician labor and material costs, with expectations for some cost pressures to ease as the year progresses [39][40] Question: Traffic and ticket trends - Traffic was steady, while ticket size increased, with optimism for continued strong average revenue per order (ARO) [42] Question: Impact of store closures on margins - The impact of store closures was smaller in Q1 due to only one month of closure benefits, but expected to be more meaningful going forward [50] Question: Sales trajectory and volatility explanation - Management explained that previous year comps were easier to outperform, and ongoing marketing efforts and tools like Confidrive are expected to drive incremental sales [58][60] Question: Long-term gross margin expectations - Management expects gross margin to remain pressured in FY 2026 but believes the business can expand margins over time with growing comparable sales [63]

Core Insights - The ambiguity of the new U.S. tariff regime is impacting global markets, including RH, a luxury home furnishing retailer, which is closely tied to housing market trends facing challenges in affordability [2][3] Business Strategy - RH is actively investing in diversified business plans to enhance revenue visibility and ensure long-term margin expansion [3] - The company plans to reduce its sourcing from China from 16% in Q1 FY25 to 2% by Q4 FY25, with projections of 52% of upholstered furniture produced in the U.S. and 21% in Italy by the end of 2025 [3][7] - To mitigate risks from the domestic market, RH is focusing on international markets, particularly Europe, with plans for new gallery openings in Paris, London, and Milan [4] Financial Performance - In Q1 FY25, RH's adjusted operating margin increased by 50 basis points to 7%, and adjusted EBITDA margin rose by 80 basis points to 13.1% [5] - The company maintains its fiscal 2025 adjusted operating margin guidance of 14% to 15% and adjusted EBITDA margin guidance of 20% to 21% [5][7] Stock Performance - RH's stock has gained 16.4% over the past three months, outperforming the Hoya Capital Housing ETF (HOMZ) [6] - The stock is currently trading at a forward price-to-sales (P/S) ratio of 0.95, which is lower than Ethan Allen's 1.19 and higher than Arhaus's 0.83, indicating a potentially attractive valuation for investors [10] Earnings Estimates - Earnings estimates for RH for fiscal 2025 and 2026 have been revised downward to $10.76 and $14.61 per share, respectively, but still reflect year-over-year growth of 99.6% and 35.8% [11][12]

Core Insights - Emerson Electric Co. is positioned for a strong upswing in the coming quarters due to management's effective strategies in reducing tariff risk through surcharges and price increases, along with mitigation efforts across its manufacturing and supply chain footprint [1] Group 1 - The company has implemented surcharges and price increases to manage tariff risks [1] - Mitigation efforts have been made across the manufacturing and supply chain to further reduce risks [1]

Financial Data and Key Metrics Changes - Consolidated earnings for Q1 2025 were $0.98 per diluted share, an increase from $0.91 in Q1 2024, reflecting an almost 8% improvement in consolidated results [5][6][16] - The company confirmed its earnings guidance for 2025 with a consolidated range of $2.52 to $2.72 per diluted share [21][22] Business Line Data and Key Metrics Changes - Avista Utilities showed strong performance, contributing to the overall improvement in earnings [6][16] - Capital expenditures at Avista Utilities were $100 million in Q1 2025, with expectations of $525 million for the full year and nearly $3 billion from 2025 to 2029, indicating a growth rate of 56% [20][21] Market Data and Key Metrics Changes - The company is actively engaging with potential new large load customers, which could enhance regional grid infrastructure and provide economic benefits [7][8] - The RFP process for generation needs identified for 2029 is underway, with bids expected to range from 50 megawatts to 400 megawatts [8][9] Company Strategy and Development Direction - The company is focused on infrastructure improvements and safety measures to mitigate wildfire risks, with recent legislation supporting wildfire mitigation plans [10][11][12] - The company is pursuing a multi-pronged approach to address tariff risks and is working with suppliers to mitigate potential impacts [13][14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about meeting consolidated earnings targets for 2025 and highlighted the importance of regulatory outcomes in supporting financial performance [6][16] - The company anticipates a return on investments in the long term, despite current volatility in the market [17][23] Other Important Information - A settlement related to the Babb Road Fire litigation is expected to have no impact on earnings due to anticipated insurance proceeds [12] - The company is committed to maintaining high safety and reliability standards in its operations [12] Q&A Session Summary Question: Impact of IRA changes on RFP process - Management acknowledged uncertainty and indicated that opportunities for refreshing bids may be considered during the RFP process [25][26] Question: Natural gas sourcing for large load customers - Management stated that the sourcing of natural gas will depend on the outcomes of the RFP and ongoing discussions with large load customers [27][28] Question: Wildfire settlement implications - Management clarified that the settlement does not set a precedent for future events, as each situation will be evaluated on its own merits [32] Question: Valuation impact from biotech trials - Management indicated that while there could be future impacts from ongoing trials, it is too early to assess their effect on valuation [33][35] Question: Forward gas and power markets impact on recovery - Management explained that there are no expected material changes in 2025 or 2026 regarding power cost recovery due to the current regulatory framework [41][42] Question: Managing affordability with growth - Management highlighted the integrated resource planning process as a tool to balance cost and compliance while engaging with large load customers [45]

Financial Data and Key Metrics Changes - The consolidated earnings for the first quarter of 2025 were $0.98 per diluted share, an increase from $0.91 in the first quarter of 2024, reflecting an almost 8% improvement in consolidated results [5][6][16] - The company confirmed its earnings guidance for 2025 with a consolidated range of $2.52 to $2.72 per diluted share [21] Business Line Data and Key Metrics Changes - Avista Utilities showed strong performance, contributing to the overall improvement in earnings [6][16] - Capital expenditures at Avista Utilities were $100 million in the first quarter of 2025, with an expected total of $525 million for the year [19][20] Market Data and Key Metrics Changes - The company is actively engaging with potential new large load customers, which could enhance regional grid infrastructure and provide economic benefits [7][8] - The company is monitoring the impact of proposed tariffs by the new administration, which have not materially affected financial results to date [13][15] Company Strategy and Development Direction - The company is focused on infrastructure improvements and safety measures to mitigate wildfire risks, with recent legislation supporting wildfire mitigation plans [9][10][12] - The company plans to release a final RFP for generation bids in May, with bids due in June, indicating a proactive approach to meet future energy needs [8][21] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about meeting consolidated earnings targets for 2025 and highlighted the importance of ongoing discussions with large load customers [6][7] - The company anticipates a long-term earnings growth rate of 4% to 6% from a forecast 2025 base year [23] Other Important Information - The company reached a settlement related to the Babb Road Fire, which will not impact earnings due to expected insurance proceeds [12] - The company expects to issue up to $120 million of long-term debt and $80 million of common stock in 2025 [21] Q&A Session Summary Question: Regarding the RFP process and potential cost impacts from IRA changes or tariffs - Management acknowledged the uncertainty and indicated that they would consider refreshing bids if necessary during the RFP process [25][26] Question: On the natural gas needs related to large load customers - Management stated that the specifics would depend on the results of the RFP and ongoing discussions with large load customers [28][29] Question: Thoughts on the wildfire settlement and its precedent - Management clarified that the settlement does not set a precedent for future events, as each situation will be evaluated on its unique facts [32] Question: Impact of biotech trials on the valuation of the unregulated business - Management indicated that while there could be future impacts, it is too early to determine any valuation changes from the ongoing trials [33][34] Question: Changes in forward gas and power markets affecting future power expense recovery - Management explained that there are no expected material differences in 2025 or 2026 until the recovery mechanism is reset [41][42] Question: Managing affordability issues with growth and self-build generation - Management emphasized the integrated resource planning process to balance cost and compliance while engaging with large load customers to help with affordability [45]