Financial Data and Key Metrics Changes - The consolidated net sales decreased by 0.7%, which was at the higher end of the range implied in the full year outlook provided in January, despite an unfavorable foreign currency impact of 0.5% [40] - Consolidated gross profit margin decreased by 40 basis points to 48.6%, primarily due to a less favorable product mix and unfavorable foreign currency impact [41] - Net income was $50.9 million or $2.22 per diluted share, with non-GAAP adjusted EPS at $2.33, down from $2.45 in the same period last year [44] Business Line Data and Key Metrics Changes - The Beauty and Wellness segment saw a slight increase in sales by 0.1%, driven by contributions from Olive and June and growth in Honeywell, Vicks, and Braun [40] - The Home and Outdoors segment experienced an organic business decline of 1.2%, primarily due to Hydro Flask, partially offset by growth in Osprey and OXO [41] - Olive and June outperformed expectations with sales of $23 million, contributing positively to the Beauty and Wellness segment [41] Market Data and Key Metrics Changes - International net sales grew by 5.3%, reflecting expanded distribution and collaboration between brand and sales teams [14] - The U.S. weighted distribution increased by approximately 12% year over year, enhancing brand availability [14] - The wellness business showed stabilization despite a softer cough, cold, and flu season, with Braun and Bix maintaining their positions as the number one and number two brands in U.S. thermometry [16][17] Company Strategy and Development Direction - The company is focusing on diversifying its supply chain outside of China and has paused certain purchases from China to manage short-term demand [8][10] - The strategic choices include growing brands through consumer obsession, leveraging scale, and embracing data analytics [33] - The company plans to lean into international opportunities even more in fiscal 2026, as international markets showed strong performance [33] Management's Comments on Operating Environment and Future Outlook - The management acknowledged the volatile macro environment and the significant uncertainty affecting consumer behavior, leading to a lack of guidance for fiscal 2026 [5][36] - The company is implementing measures to reduce costs and preserve cash flow in anticipation of a difficult economic environment [50] - Management expressed confidence in navigating the current challenges, drawing on past experiences during the COVID-19 pandemic [36] Other Important Information - The company reported the largest year of Project Pegasus savings, which contributed to a 60 basis point increase in gross margin [14] - The acquisition of Olive and June is expected to perform well in a cost-conscious environment, enhancing the company's portfolio [54] - The company ended the fourth quarter with total debt of $917 million, reflecting an increase due to the Olive and June acquisition [45] Q&A Session Summary Question: Can you talk about the diversification of your manufacturing base? - Management indicated that the diversification involves a blend of existing and new suppliers, with a larger percentage being with existing suppliers [59][60] Question: What is the potential cost increase of new manufacturing locations? - Management stated that they are seeing the ability to be cost neutral irrespective of tariffs, with additional costs primarily related to the transition and holding higher inventory [63] Question: Can you provide details on potential price increases? - Management is evaluating pricing across the portfolio, with a focus on being targeted rather than implementing broad price increases [66][69] Question: What is the expected impact of tariffs on fiscal year 2026? - Management estimated over $200 million of impact from tariffs for fiscal year 2026, with 20% to 30% of that not mitigated by cost savings [74] Question: How do you expect Q1 performance compared to Q4? - Management expects Q1 to be weaker than Q4 due to various pressures, including tariff-related impacts and retailer adjustments [78]