Financial Data and Key Metrics Changes - The company reported a first quarter net loss per share of $0.05 compared to earnings per diluted share of $0.24 in the prior year period, primarily due to lower gross margins from sales mix changes [8][16] - Consolidated first quarter revenues were down 1% year over year, with a strong balance sheet and net leverage position allowing for a strategic long-term approach to capital allocation [12][17] - Gross margin rate was 36.8% for the first quarter, down from 39.8% in the prior year [14] Business Segment Data and Key Metrics Changes - Branded Products revenue was off less than 1%, with promotional products growing while branded uniform sales declined due to stronger rollouts in the previous year [13] - Healthcare Apparel revenue decreased by 7% year over year, reflecting a decline in Institutional Healthcare Apparel [13] - Contact Center business segment grew revenue by 3%, benefiting from solid retention and growth of existing customers [13] Market Data and Key Metrics Changes - The company noted customer buying hesitancy due to inflation, interest rates, and tariffs, which have slowed decision-making and sourcing challenges [5][6] - The company has a diversified sourcing strategy that mitigates risks associated with high tariffs on products from China [6][9] Company Strategy and Development Direction - The company is focused on strong cost management and has eliminated costs to support profitability as demand normalizes [7][8] - The company plans to invest in growing digital channels and expanding market share in the healthcare apparel segment [11] - The company is actively repurchasing shares, considering it a compelling value, while maintaining significant liquidity for growth [9][17] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for Q2, citing a strong order backlog and customer retention over 90% [10] - The company anticipates revenue for the full year to be in the range of $550 million to $575 million, reflecting a conservative approach due to economic uncertainty [18] - Management emphasized a proven track record of navigating challenging economic times and maintaining a strong position relative to competitors [18] Other Important Information - The company has executed approximately $13 million in annualized savings, primarily within SG&A expenses, to enhance operational efficiency [44][53] - The company ended the first quarter with $20 million in cash and cash equivalents, up from $19 million at the start of the year [16] Q&A Session Summary Question: Discussion on the pipeline in branded products and contact centers - Management highlighted strong pipelines in both segments, with aggressive recruitment and positioning as experts in navigating tariff challenges [21][23] Question: Reduced revenue guidance and conservatism in the second half - Management confirmed a cautious approach while still expecting a ramp-up in the second half, managing costs conservatively [30] Question: Cost perspective on tariffs and price increases - Management indicated the ability to pass on tariff-related costs to customers, with flexibility in pricing strategies [31][32] Question: Impact of tariffs on customer behavior and supply chain disruptions - Management noted that even if tariffs were lifted, it would take time to return to normalcy due to supply chain disruptions [40][43] Question: Insights on SG&A savings and operational efficiencies - Management confirmed that the $13 million in savings would not impact growth and would begin to benefit in the second quarter [44][53] Question: Acquisition opportunities in the current environment - Management is currently conserving cash and not pursuing acquisitions until there is more clarity on tariffs, but sees potential opportunities in the future [55][56]