Group 1 - Kayou officially debuts at Spielwarenmesse 2026, marking the full launch of its European strategy and showcasing its integrated product ecosystem and collaborative operational capabilities to European partners [1] - Founded in China in 2011, Kayou has become a leader in collectible cards, stationery, and toys, managing nearly 100 licensed and proprietary intellectual properties (IPs) with over 400 products reaching millions globally [2] - The European market represents the next strategic phase for Kayou after its expansion in Asia and the United States, with a focus on reinterpretation of design and quarterly launches of new series to respond to cultural trends [2] Group 2 - Kayou adheres to a "global vision, local operation" philosophy, establishing logistics centers and regional teams to foster collaboration with local distributors and retailers, providing comprehensive support including product language adaptation and targeted marketing [3] - The exhibition features new collectible cards from IPs like My Little Pony, NARUTO, and Tokidoki, along with stationery, plush toys, and innovative items, showcasing the diversity of Kayou's portfolio [4] - Kayou also introduced original IPs such as Kolorful Ball-joint Doll and NeZha 2 Mechanic-joint Doll, highlighting its strategic expansion in the collectible action figure market [5] Group 3 - Kayou's initial focus includes Germany, France, the United Kingdom, Italy, and Spain, utilizing flexible collaboration models such as distribution agreements, retail supply, co-brand launches, and joint marketing [6] - The company aims to share IP resources, supply chain capabilities, and community experience to build entertainment brands rooted in local culture [6] - Kayou is recognized as a leading entertainment product company listed in the Hurun Global Unicorn Index 2025, building a multidimensional ecosystem through "content + product + community" [7]

Financial Data and Key Metrics Changes - Cimpress achieved a milestone by exceeding $1 billion in quarterly revenue for the first time, with organic constant currency growth of 4% for the first half of the year, surpassing the previous guidance of 2%-3% [9][16] - Revenue for Q2 grew 11% on a reported basis and 4% on an organic constant currency basis, with growth across all segments [9][10] - Adjusted EBITDA increased by $6.6 million year-over-year, with profit dollars up 8% on a consolidated basis [11][12] - Adjusted free cash flow declined by $9.2 million to an inflow of $124 million, attributed to lower net working capital inflows [15][16] Business Line Data and Key Metrics Changes - In the Vista segment, organic constant currency growth was 5%, up from 3% in the prior year quarter, driven by double-digit growth in promotional products, apparel, gifts, and packaging [10][12] - The PrintBrothers segment reported a 26% revenue growth, with a contribution of $18 million from a tuck-in acquisition [11][12] - The Upload and Print segment saw a 6% organic constant currency revenue growth, with increased customer and order counts [11] Market Data and Key Metrics Changes - Strong performance in North America was the main driver of growth acceleration compared to the prior year quarter [11] - In Europe, consumer performance was weaker, with a decline year-over-year in Q2, attributed to tough comparisons from the previous year [21] Company Strategy and Development Direction - Cimpress is focusing on elevated products to improve customer lifetime value and wallet share, with variable gross profit per customer growing 9% year-over-year [4][10] - The company is investing in manufacturing efficiencies and new product introductions through Cross-Cimpress Fulfillment (XCF) [5][8] - Shared technology initiatives are aimed at reducing operating expenses and enhancing customer value [6][39] - The company remains confident in achieving fiscal 2028 targets, including an adjusted EBITDA of at least $600 million [7][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the financial future, highlighting a strong path to fiscal 2028 with significant deleveraging of the balance sheet [7][17] - The impact of tariffs is expected to lessen in future quarters as supply chain remediation continues [14] - Management noted that the hurricane in Jamaica posed challenges but was mitigated through operational adjustments [6][12] Other Important Information - The company completed a tuck-in acquisition for $10.4 million, expected to yield significant synergies [49][51] - Net leverage at the end of Q2 was 2.97 times trailing twelve months EBITDA, down from the previous quarter [15][16] Q&A Session Summary Question: How would you characterize the holiday season that just concluded for Vista? - Management reported a strong quarter for Vista, particularly in North America, with a balanced approach to holiday messaging [18] Question: Can you talk about the biggest areas of outperformance versus your initial FY 2026 guidance? - Management indicated solid execution across the board, with no significant areas of outperformance but some help from currency [24] Question: What are the underlying trends for customer cohorts in promotional products? - Strong growth in elevated products demonstrates increased wallet share among small business customers [30][31] Question: How has the North American business for the Print Group trended? - The Print Group is on track with revenues growing quarter-over-quarter, though still small in scale [34] Question: What is the company's view on Cross-Cimpress Fulfillment? - Management sees significant growth potential in Cross-Cimpress Fulfillment, which has doubled in revenue within a year [42][45] Question: Can you provide details on the tuck-in acquisition made this quarter? - The acquisition was for an Austrian printing group with significant synergy opportunities, expected to exceed a 15% hurdle rate [49][51]

Core Insights - The investment landscape for 2026 is perceived as offering deeper and wider opportunities despite high market valuations and indices [2] - Current equity markets are characterized by greed and impatience, leading to a focus on short-term performance rather than long-term value [3] - Investor psychology is shifting towards perceived risk aversion, which may actually be driving them away from areas with genuine mispricing [4] Performance and Net Asset Value - Dynasty Trust reported a quarterly return of -2.29% and a net asset value per unit of $1.3030 as of December 31, 2025 [5] - Over the rolling 12 months, the return was 8.19%, and over two years, it was 12.93% [5] - The inception return of Dynasty Trust stands at 36.74% [5] Market Dynamics - The S&P 500 index saw a significant concentration of performance in its top 10 stocks, which now account for 39.2% of the index [6] - Smaller companies and controlled entities have recently fallen out of favor, impacting the performance of Dynasty Trust [6] Currency Impact - The Australian dollar's fluctuations against the euro and US dollar affected returns, with a 5.5% decline against the euro and a 6% rise against the US dollar in 2025 [7] - The overall impact of currency changes on performance was minimal, costing only 11 basis points [7] Positive Contributors to Performance - Seven securities contributed positively to Dynasty Trust, with Sportradar (SRAD) showing a 68% gain and Catapult International a 54% gain [8] - Other notable contributors included Viel et Cie (48% gain) and Avolta (30% gain) [8] Negative Contributors to Performance - Six securities detracted from returns, with Novo Nordisk (NVO) down 28% due to drug pricing uncertainties [9] - Other significant detractors included Bolloré (19% decline) and EuroEyes International (24% decline) [9] Investment Strategy - The company emphasizes investing in controlled public companies, which historically have shown long-term benefits [11] - The focus is on avoiding dilution of investment skills by steering clear of extraneous factors like stock or currency hedging [11] Market Trends - The technology sector has seen a significant rerating, while other sectors have experienced derating from already pessimistic valuations [13] - A bifurcation in the market is evident, with technology stocks performing well while other sectors lag behind [17] Valuation Insights - Many European holding companies are trading at significant discounts to NAV, with an average discount increasing from 30% to 30.6% over three years [14] - The high pricing of privately held technology companies has widened discounts for European firms, leading to investor skepticism [19] Specific Company Analysis: Hansa Investment Company - Hansa trades at a 44% discount to NAV, with a pro-forma cash exposure of approximately 35% of NAV [32] - The company has initiated share repurchases post-merger with Ocean Wilson, which is expected to enhance NAV [38] Specific Company Analysis: D'leteren - D'leteren is facing challenges due to increased leverage and cyclical pressures, impacting reported profits [41] - The company has initiated a €100 million stock buyback program to manage its capital structure [44] - The valuation of D'leteren's stake in Belron is under scrutiny, with significant skepticism regarding private equity valuations [60]

Financial Data and Key Metrics Changes - Net sales increased by 19% to $614 million, driven by new store openings and comparable store sales growth [16] - Comparable store sales rose by 3.3%, supported by a mid-single-digit increase in transactions, partially offset by a decrease in average ticket price [16] - Adjusted net income and adjusted earnings per share increased by 29% to $46 million and $0.75, respectively [17] - Adjusted EBITDA increased by 22% to $73 million, with an adjusted EBITDA margin increase of 30 basis points to 11.9% [17] - Total cash and investments rose by 42% to $432 million, with no meaningful long-term debt [18] Business Line Data and Key Metrics Changes - The company opened 32 new stores in Q3, totaling 645 stores, representing an 18% year-over-year growth [15] - Membership in the Ollie's Army loyalty program increased by 12% to 16.6 million members, driven by new customer acquisition [15] - The top five performing categories were food, seasonal, hardware, stationery, and lawn and garden [16] Market Data and Key Metrics Changes - The company noted strength in higher-income consumers, particularly those with household incomes above $100,000, and upper middle-income consumers [28] - There was a slight softness in the lower-income consumer segment, potentially attributed to external economic factors [29] Company Strategy and Development Direction - The long-term target is to reach 1,300 stores, with a commitment to a minimum of 10% annual unit growth [5] - The company is focusing on customer acquisition and loyalty through the Ollie's Army program, which has shown strong growth [8] - The marketing strategy is shifting towards a digital-first approach, reallocating resources from traditional print to digital media [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning, citing strong deal flow, expanding customer base, and widening price gaps [24] - The company raised its full-year sales and earnings outlook based on better-than-expected Q3 results and a strong start to Q4 [15] - Management acknowledged the challenges in the retail environment but emphasized the opportunities for growth due to market consolidation [6] Other Important Information - The company plans to expand its Texas distribution center by 150,000 sq ft and increase service capacity by approximately 50 stores [13] - Capital expenditures totaled $31 million for the quarter, primarily for new store openings and supply chain investments [18] Q&A Session Summary Question: Can you frame out the state of your consumer in light of your basket commentary? - Management noted strength in higher-income consumers and some softness in lower-income consumers, potentially due to external factors [28][29] Question: Could you elaborate on the components of the third-quarter comp? - Management reported a positive 3.3% comp, with mid-single-digit positive transaction trends, while basket size declined due to lower average unit retail [35][36] Question: Can you talk about customer acquisition trends? - Management highlighted strong customer acquisition, particularly among younger demographics and higher-income groups, with good retention rates [44] Question: What are your expectations for the Q4 comp? - Management indicated that comps are currently running ahead of guidance, driven by strong transaction trends and improved average unit retail [86] Question: How do you see the impact of tariff-related expenses on gross margin? - Management acknowledged that tariff-related expenses impacted gross margin but noted several tailwinds that could support margin stability [89]

Sustainability & Waste Reduction - The speaker highlights the shift from sustainability being a buzzword to becoming a lifestyle, emphasizing changes in everyday practices [1] - The talk advocates for reusing and donating unused stationery items instead of discarding them, promoting responsible consumption and waste reduction [4][5] - The speaker's project, Edo Tools at Ease, aims to provide underprivileged students with quality stationery items through donation drives and a tech-enabled supply request system [2][3] Energy Conservation - The Ujala scheme in India reduced LED bulb prices from approximately 450-500 rupees to 70 rupees, promoting energy conservation and reducing electricity bills for millions of families [1] Call to Action - The talk encourages the audience to identify and reuse existing resources, emphasizing that small, individual efforts contribute to significant collective change [4][6] - The speaker urges the audience to take action and start making sustainable choices, highlighting that the power to change lies in their hands [7]