Financial Data and Key Metrics Changes - The company reported net sales of $339 million, a 5% increase from the first quarter of 2024, and a 7% increase on a like-for-like basis [14][15] - Gross margin expanded by 120 basis points to 63.7% from the prior year period [15] - Operating income was $75 million for the quarter, a 10% increase from the prior year, resulting in an operating margin of 22% [15] Business Line Data and Key Metrics Changes - European operations saw net sales rise by 7% or 9% excluding foreign exchange impacts, with net income attributable to these operations growing 7% to $48 million [17] - U.S. operations experienced a 3% increase in net sales on a like-for-like basis, but reported a 1% decline due to the discontinuation of the Dunhill license [18][19] Market Data and Key Metrics Changes - The fragrance market remains strong, with the company noting that fragrance continues to grow compared to other beauty segments like makeup and skincare [30] - The U.S. market showed a slight decline of 2% for the quarter, but March and February were slightly up compared to the prior year [28][30] Company Strategy and Development Direction - The company is refining its brand portfolio to focus on high-potential brands and plans to exit some smaller or underperforming brands [8][9] - A new brand called Solferino is set to launch in July, and the company will assume full ownership of Off White brand names in 2026 [8][9] - The acquisition of the Annick Goutale brand is planned for 2026, with preparations already underway [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the current macro environment, reaffirming full-year guidance for 2025 of $1.51 billion in net sales and EPS of $5.35 per share [23] - The company is actively planning to mitigate potential impacts from tariffs through adjustments in supply chain and pricing strategies [11][13] Other Important Information - The company has a strong balance sheet with $172 million in cash and cash equivalents and working capital of $600 million [19] - The company is focused on improving its MSCI score, recently achieving a BBBB rating and targeting BBBBBB in the next major update [14] Q&A Session Summary Question: Insights on U.S. Business and Retailer Destocking - Management noted that destocking at retailers has largely abated, and there is no significant disconnect between sell-in and sell-out [27][28] Question: Global Consumer Perspective on Fragrance Trends - Management indicated that while the first quarter was not as strong as last year, the fragrance business is still growing, with challenges noted in Europe [30][31] Question: Tariff Exposure and Gross Margin Progression - Management estimated a potential 300 basis point impact from tariffs but expects to mitigate this through various interventions [40][41] Question: Luxury and Premium Portfolio Strategy - Management believes the luxury category will continue to outperform, with a focus on premiumization and distinctive offerings [52][53]