Financial Data and Key Metrics Changes - For the fiscal year, sales were $653.4 million, a decline of 1.7% from the previous year [9][37] - Adjusted operating income for the year was $27.1 million, down from $48.5 million last year [10][39] - Adjusted earnings per share for the quarter and the year were 51 cents and $1.12 respectively [11][37] - Cash at the end of the fiscal year was $208.5 million, with no outstanding debt [11][40] Business Line Data and Key Metrics Changes - In the fourth quarter, sales grew by 3.3% to $181.5 million, with international net sales increasing by 8.8% [10][34] - U.S. net sales decreased by 2.9%, while international sales decreased by 0.2% but increased by 0.6% on a constant currency basis [34][38] - Gross profit as a percentage of sales was 54.2%, up from 53.5% in the previous year [35] Market Data and Key Metrics Changes - U.S. sales in fashion watches and jewelry represent approximately 20% of overall fashion watch sales [12] - International net sales increased by 12.2% on a constant currency basis, indicating growth across all international regions [34] Company Strategy and Development Direction - The company is focusing on brand building efforts and has launched a new brand campaign featuring notable personalities [15][16] - Plans to mitigate cost increases from tariffs include selective price increases and partnerships with vendors [12][42] - The company is committed to maintaining a good, better, best pricing strategy across its brands [56] Management's Comments on Operating Environment and Future Outlook - Management expressed uncertainty regarding future sales due to global economic conditions and tariffs [49][50] - The company will not provide a fiscal 2026 outlook at this time due to the unpredictable impact of tariffs [44] Other Important Information - The company has taken steps to improve its control environment following irregularities in its Dubai sales office [6][7] - A quarterly dividend of 35 cents was declared, reflecting the company's commitment to returning shareholder value [11] Q&A Session Summary Question: Could you talk about your marketing strategy this year, given that you plan to spend less - The company will focus more on digital marketing venues for timely adjustments and increase productivity in marketing efforts [47] Question: Are you expecting sales to increase - Management indicated that predicting sales is difficult due to current uncertainties, including tariffs and trade issues [49][50] Question: Is there a focus on specific product lines or price points - The company is assessing the tariff structure to implement sustainable price increases while maintaining value-oriented price points [55][56] Question: Are there more cost savings initiatives to generate free cash flow this year - The company intends to generate free cash flow and is focused on managing inventory levels and variable expenses [58]