Core Viewpoint - Kandal M Venture Limited has successfully closed its initial public offering, raising $8.0 million by offering 2,000,000 Class A ordinary shares at a price of $4.00 per share, with plans to expand its market reach and enhance production capabilities [1][4]. Company Overview - Kandal M Venture Limited is a contract manufacturer specializing in affordable luxury leather goods, with manufacturing operations based in Cambodia. The company primarily produces various types of handbags and smaller leather goods such as wallets [7]. Offering Details - The initial public offering consisted of 2,000,000 Class A ordinary shares priced at $4.00 each, resulting in gross proceeds of $8.0 million before expenses [1]. - The company has granted underwriters a 45-day option to purchase an additional 300,000 Class A ordinary shares at the offering price [2]. - The offering was conducted on a firm commitment basis, with Dominari Securities LLC as the lead underwriter and Revere Securities LLC as the co-underwriter [3]. Use of Proceeds - The net proceeds from the offering will be utilized for several strategic initiatives, including: - Expanding the customer base by entering key European markets - Enhancing production capacity - Establishing a new design and development center to improve product development capabilities - Providing additional working capital and general corporate purposes [1]. Regulatory Information - A registration statement on Form F-1 was filed with the U.S. Securities and Exchange Commission (SEC) and was declared effective on June 23, 2025. The final prospectus was filed on June 25, 2025, and is available on the SEC's website [4].

Financial Data and Key Metrics Changes - Consolidated net sales decreased by 0.7%, which was at the higher end of the range implied in the full-year outlook despite an unfavorable foreign currency impact of 0.5% [61] - Consolidated gross profit margin decreased by 40 basis points to 48.6% primarily due to a less favorable product mix and customer mix [62] - GAAP operating margin for the quarter was 0.4% compared to 13.5% in the same period last year, primarily due to non-cash asset impairment charges of $51.5 million [63] - Non-GAAP adjusted EPS was $2.33, down from $2.45 in the same period last year, primarily due to lower adjusted operating income and higher interest expense [69] Business Line Data and Key Metrics Changes - Total sales in the Beauty & Wellness segment increased by 0.1%, driven by contributions from Olive & June, Honeywell, Vicks, and Braun [61] - Home & Outdoor saw an organic business decline of 1.2%, driven by Hydro Flask, partially offset by growth in Osprey and OXO [62] - Adjusted operating margin for Beauty & Wellness declined by 220 basis points to 13.4%, primarily due to incremental growth investments and a less favorable product mix [67] Market Data and Key Metrics Changes - International net sales grew by 5.3%, reflecting expanded distribution and greater collaboration between brand and sales teams [25] - The US weighted distribution increased by approximately 12% year-over-year, making brands more available to shoppers [25] - The competitive environment intensified, with retailers closely managing their inventory [21] 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 [14][15] - The company aims to leverage its brands that resonate well during economic downturns, offering value to consumers [18] - Strategic choices include growing brands through consumer obsession, leveraging scale, and opportunistic M&A [50] Management's Comments on Operating Environment and Future Outlook - The management acknowledged significant uncertainty and disruption due to global trade policy changes, impacting consumer behavior [11] - The company is not providing fiscal '26 guidance due to the volatile environment and is assessing the incremental tariff impact [53] - Management expressed confidence in navigating the current environment, drawing on past experiences during the pandemic [54] Other Important Information - The company reported the largest year of Project Pegasus savings, contributing to a 60 basis point increase in gross margin [24] - The acquisition of Olive & June is expected to perform well in a cost-conscious environment [84] - The company ended the fourth quarter with total debt of $917 million, reflecting the acquisition of Olive & June [69] Q&A Session Summary Question: Can you talk about the diversification of your manufacturing base? - Management indicated a blend of existing and new suppliers for diversification efforts, with a larger percentage being existing suppliers [88][90] 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 mainly from the transition process [93] Question: What are the expected tariff impacts for the year? - Management estimated over $200 million of impact to fiscal year '26 based on current tariff rates [105] Question: Do you expect positive free cash flow for the full year? - Management confirmed that they expect positive free cash flow for the full year [107] Question: What are the expectations for Q1 sales dynamics? - Management anticipates softness in Q1 due to various factors, including retailer adjustments and direct import impacts [110]