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 [28] - 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 of WD-40 Multi-Use Product decreased 1% to $118 million, while WD-40 Specialist products saw an 18% increase to $22.5 million [12][15] - Home care and cleaning product sales declined 18%, reflecting a strategic shift towards higher margin maintenance products [8] Market Data and Key Metrics Changes - Sales in the Americas increased 4% to $71.9 million, with maintenance product sales up 5% [7] - OMEA segment net sales were $58.7 million, a 5% increase, driven by a 27% increase in WD-40 Specialist sales [9] - Asia Pacific sales decreased 10% to $23.9 million, with WD-40 Multi-Use Product sales down 12% [10] Company Strategy and Development Direction - The company is focused on its 4x4 strategic framework, emphasizing maintenance products, geographic expansion, premiumization, and digital commerce [4][14] - The Must-Win Battles include accelerating revenue growth in maintenance products and driving WD-40 Specialist growth [11][15] - The company aims to capture approximately $1.4 billion in growth potential for its flagship WD-40 Multi-Use Product [13] Management 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 across all three trade blocs in the second quarter [6][35] - Management highlighted the importance of promotional activities and customer order patterns in driving future performance [31] Other Important Information - The company reaffirmed its fiscal 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 more than 8% over the prior quarter [29] - The company repurchased approximately 39,500 shares at a total cost of $7.8 million during the first quarter [29] Q&A Session Summary Question: What indicators point to strong results? - Management indicated confidence based on scheduled promotional activities and expected recovery in Asia-Pac markets [37][38] Question: Is the guidance more bullish than originally given? - Management confirmed that they feel confident in reaching the mid to high end of the guidance range due to locked-in promotional activities [37] Question: What steps are being taken to reduce supply chain costs? - The company is implementing new sourcing strategies and optimizing distribution networks to reduce costs [41][42]