Financial Data and Key Metrics Changes - The company reported a consolidated revenue of $1.1 billion, a decline of 5% compared to the previous year, with comparable sales decreasing by 3% [20][21] - Adjusted operating loss for the quarter was $68 million, with an adjusted loss per share of $0.29 [5][22] - Gross profit dollars were $322 million, with a gross margin of 29.6%, impacted by approximately $75 million in inventory write-downs [21][22] Business Line Data and Key Metrics Changes - American Eagle comparable sales were down 2%, while Aerie comparable sales declined by 4% [5][20] - Aerie faced challenges in soft apparel, particularly in fleece tops and shorts, while experiencing growth in intimates and offline categories [12][14] - American Eagle saw improvements in women's business, particularly in social casual dressing and achieved its best quarter ever in fleece [15][16] Market Data and Key Metrics Changes - Traffic was up across brands and channels, but the company faced pressure from lower average unit retails (AURs) and conversion rates [20][21] - The company is working to reduce sourcing exposure to China to under 10% this year, with plans to further diversify its supply chain [24] Company Strategy and Development Direction - The company is focused on optimizing operations and strengthening its supply chain, including closing two Edge fulfillment centers, which is expected to generate annualized savings of approximately $5 million [7][8] - Capital allocation priorities include investments for long-term growth while returning capital to shareholders, including a $200 million accelerated share repurchase program [9][23] - The company is committed to improving product performance and is preparing for the back-to-school season with fresh merchandise [24][38] Management's Comments on Operating Environment and Future Outlook - Management expressed disappointment with first-quarter performance but remains optimistic about the second half of the year, hoping for economic stimulation from potential tax plans [28][29] - The company has paused full-year guidance until there is greater visibility but expects improvement as the year progresses [8][24] Other Important Information - The company recorded a $75 million inventory write-down due to product misses and higher costs, leading to increased promotions [5][12] - SG&A expenses increased by 2% due to higher advertising investments, with a focus on customer-facing spend [22][66] Q&A Session Summary Question: What is the company's view of the consumer today and its impact on the retail landscape? - Management is optimistic about the consumer outlook and believes that potential tax plans could stimulate the economy in the second half of the year [28][29] Question: Can you break down the assumptions for gross margin and promotional activity for the second quarter? - The company expects to maintain promotional activity to clean inventory for the back-to-school season, embedding a negative 3% comparable sales expectation [30][31] Question: What are the merchandising issues and how quickly can the company get back on trend? - Management acknowledged product issues but is working swiftly to address them, focusing on clean inventory for the back-to-school season [36][37] Question: How is the company planning its capital allocation and CapEx expenditures? - The company reduced its CapEx guidance to $275 million, recadencing projects to preserve cash in response to business conditions [46][47] Question: How did digital performance compare to stores during the quarter? - The company saw an uptick in digital channels and is leaning into this area for future growth [71] Question: What is the outlook for promotions and SG&A expenses? - The company anticipates continued promotional activity to clean inventory, with SG&A expected to remain flat for the year, focusing on advertising spend [62][66]

Dell (DELL) Q1 2026 Earnings Call May 29, 2025 04:30 PM ET Company Participants Paul Frantz - Vice President of Investor RelationsJeff Clarke - Vice Chairman and Chief Operating OfficerYvonne McGill - Chief Financial OfficerAmit Daryanani - Senior Managing Director - Equity ResearchBen Reitzes - Managing Director – Head of Technology ResearchErik Woodring - Managing Director - Equity ResearchMichael Ng - Managing Director - Global Investment ResearchSamik Chatterjee - Managing DirectorAsiya Merchant - Techn ...

Zscaler (ZS) Q3 2025 Earnings Call May 29, 2025 04:30 PM ET Company Participants Ashwin Kesireddy - Vice President of Investor Relations & Strategic FinanceJay Chaudhry - CEO, Chairman & FounderRemo Canessa - CFOKevin Rubin - CFOBrad Zelnick - Managing DirectorSaket Kalia - Managing DirectorRoger Boyd - Executive DirectorShaul Eyal - Managing Director - Equity ResearchMichael Richards - Equity Research Senior AssociateGray Powell - Managing Director Conference Call Participants Ittai Kidron - MD & Senior An ...

Ulta Beauty (ULTA) Q1 2026 Earnings Call May 29, 2025 04:30 PM ET Company Participants Kiley Rawlins - SVP - Investor RelationsKecia Steelman - President & CEOPaula Oyibo - Chief Financial OfficerOlivia Tong - Managing DirectorSimeon Siegel - Managing DirectorKate McShane - Managing DirectorSydney Wagner - Equity Research Senior Associate - Beauty & Personal Care Conference Call Participants Rupesh Parikh - Managing Director and Senior AnalystSusan Anderson - Managing Director & Senior AnalystKorinne Wolfme ...

Financial Data and Key Metrics Changes - The company reported first quarter revenue of $85.9 million, which is up 2.2% sequentially and up 57.6% year over year, exceeding the midpoint of prior guidance [9][27] - Non-GAAP gross margin for fiscal Q1 was 62%, slightly above the midpoint of prior guidance due to a favorable product mix [27] - Non-GAAP net profit for Q1 was $3 million, or $0.07 per diluted share [28] - Cash and marketable securities reached $259.4 million, increasing by $9.1 million from the prior quarter and $56 million year over year [29] Business Line Data and Key Metrics Changes - AI revenue accounted for more than 75% of Q1 revenue, marking the fourth consecutive quarter of record AI revenue [9] - IoT applications increased to mid-single digits sequentially, now representing about three-quarters of total revenue [10] - Automotive revenue declined low single digits sequentially but was up more than 20% year over year [10] Market Data and Key Metrics Changes - The company is increasing its fiscal 2026 revenue growth estimate to a range of 19% to 25%, approximately $348 million at the midpoint [11] - The serviceable available market (SAM) for h AI applications is projected to reach almost $13 billion by fiscal 2031, with a five-year compounded annual growth rate in the high teens [12] Company Strategy and Development Direction - The company is focusing on expanding its edge AI infrastructure, developing a new AI SoC product family to enhance its offerings [12][21] - The company aims to leverage its existing technology to address new application verticals beyond its core enterprise security business [20] - Investment in technology and products is driving both current and future revenue growth opportunities [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in long-term drivers of the h AI strategy despite geopolitical uncertainties [11][24] - The company is maintaining a conservative outlook for the second half of the fiscal year due to geopolitical uncertainties but remains optimistic about second-half growth [11][24] Other Important Information - The company has extended its share repurchase program for an additional twelve months, with approximately $48 million available under the repurchase authorization [29] - A logistics company, WT Microelectronics, represented 63.1% of revenue for the quarter [30] Q&A Session Summary Question: Clarification on full-year guidance and growth profile - Management indicated that there are no concerns about second-half strength, despite geopolitical uncertainties affecting guidance [36][37] Question: Explanation of edge infrastructure products - Management clarified that edge infrastructure involves integrating multiple endpoints to upgrade existing installations, which is a growing trend [46][47] Question: Impact of seasonality on revenue - Management acknowledged that seasonality is uncertain this year due to geopolitical factors but indicated that normal seasonality could still occur [56] Question: Supply chain conversations with customers - Management reported that customers are not building inventory and are closely monitoring the situation [85][86] Question: Gross margin expectations - Management explained that gross margin fluctuations are primarily driven by customer and product mix [88] Question: AI capabilities in cameras and infrastructure - Management emphasized the need for both AI in cameras and edge infrastructure to upgrade existing installations effectively [93][95] Question: Market share outside of China - Management stated that they hold a majority market share in the mid and high-end security camera market outside of China [97]

Financial Data and Key Metrics Changes - Revenue for Q3 was $678 million, representing a 23% year-over-year increase and a 5% sequential increase [29] - Annual recurring revenue (ARR) was approximately $2.9 billion, with a year-over-year growth of 23% [29] - Remaining performance obligations (RPO) grew 30% year-over-year to $4.978 billion [30] - Total calculated billings increased 25% year-over-year to $785 million [30] - Free cash flow margin was 18%, including data center CapEx at 11% of revenue [32] Business Line Data and Key Metrics Changes - New logo annual contract value (ACV) grew over 40% year-over-year [7] - Zero Trust Everywhere, Data Security Everywhere, and AgenTic Operations are significant growth drivers, with combined ARR approaching $1 billion [18] - ZDX CoPilot bookings grew over 70% year-over-year to nearly $75 million [24] - SecOps solutions saw over 120% year-over-year growth in ACV [26] Market Data and Key Metrics Changes - Americas represented 54% of revenue, EMEA was 30%, and APJ was 16% [29] - The dollar-based net retention rate was 114% [31] Company Strategy and Development Direction - The company aims to reach $5 billion or more in ARR, focusing on Zero Trust and AI security [28] - The Z Flex program allows customers to flexibly scale their adoption of the platform, contributing over $65 million in TCV bookings [16] - The acquisition of Red Canary is expected to enhance capabilities in Managed Detection and Response (MDR) and Threat Intelligence [26][66] Management's Comments on Operating Environment and Future Outlook - Customers remain cautious about IT spending due to economic uncertainty, but prioritize cyber and data protection [15] - The company is seeing strong demand for its platform despite macroeconomic challenges [50] - Management is optimistic about the growth potential in federal business, although it is not a significant revenue contributor currently [88] Other Important Information - The company appointed Kevin Rubin as the new Chief Financial Officer [36] - The acquisition of Red Canary is valued at $675 million and is expected to close in August 2025 [66] Q&A Session Summary Question: How does the company ensure customer focus amidst rapid product expansion? - The company has implemented a two-tier sales model with takeoff teams for new product areas, allowing for focused expertise [43][44] Question: What is the outlook on macro trends affecting the business? - The spending environment remains challenging, but cybersecurity projects are prioritized, especially those involving Zero Trust and AI [50][51] Question: Can you elaborate on the Z Flex program? - Z Flex provides customers with flexibility in purchasing and deploying modules without lengthy procurement cycles, starting with larger customers [46][47] Question: What are the growth drivers in the new product categories? - The company is seeing significant growth in Zero Trust Everywhere, Data Security Everywhere, and AgenTic Operations, with impressive growth rates in each category [18][94] Question: What attracted the company to acquire Red Canary? - The acquisition was driven by the need to accelerate the vision of becoming a leading player in the security market, leveraging Red Canary's technology and expertise [64][66]

Financial Data and Key Metrics Changes - Revenue reached $23.4 billion, up 5% year-over-year, driven by growth across all core markets [6][20] - Earnings per share increased by 17% to $1.55, growing three times faster than revenue [6][20] - Net income rose 13% to $1.1 billion, primarily driven by stronger operating income [21][22] - Gross margin was $5.1 billion, or 21.6% of revenue, down 80 basis points due to a competitive pricing environment [20][21] Business Line Data and Key Metrics Changes - ISG revenue was $10.3 billion, up 12%, with servers and networking revenue at a record $6.3 billion, up 16% [22][23] - CSG revenue rose 5% to $12.5 billion, with commercial revenue up 9% to $11 billion, while consumer revenue declined 19% to $1.5 billion [25][26] - PowerStore demand rose double digits, growing for five consecutive quarters [11] Market Data and Key Metrics Changes - Strong demand for AI optimized servers, with $12.1 billion in orders booked in Q1, surpassing all shipments in FY 2025 [7][22] - Enterprise AI customers grew sequentially across key industry verticals, including WebTech, financial services, and education [7][8] - Commercial demand was strongest in North America, with EMEA and APJ regions also showing double-digit growth [12] Company Strategy and Development Direction - The company is focused on expanding its leadership in AI, investing in innovation, and deepening customer partnerships [9][16] - Continued emphasis on modernizing data centers with the introduction of sixteenth and seventeenth generation servers [17][18] - The company aims to capture more value from its platforms by increasing the mix of Dell IP storage [24][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong demand for AI servers and the ability to execute on large, complex customer deployments [37][50] - The company anticipates a continued PC refresh cycle as the installed base upgrades to new devices [27][30] - Management remains cautious about traditional server and storage performance due to the dynamic macro environment [30][31] Other Important Information - Record Q1 cash flow from operations of $2.8 billion, driven by profitability and working capital improvement [26] - The company returned $2.4 billion to shareholders through stock repurchases and dividends [27] - Full year revenue guidance is reiterated at $101 billion to $105 billion, with expectations for ISG to grow in the high teens [30][31] Q&A Session Summary Question: Can you discuss the AI server revenue outlook? - Management indicated that the backlog for AI servers is healthy, with expectations to exceed $15 billion for the fiscal year [36][41] Question: What are the expectations for the second half guidance? - Management expects to ship approximately $7 billion of AI servers in the first half, with optimism for converting more pipeline in the second half [44][46] Question: How is the storage attach opportunity evolving alongside AI servers? - Management noted modest improvements in storage and networking attach rates, emphasizing the importance of deployment and installation services [54][56] Question: Are tariffs impacting the financial outlook? - Management confirmed that current guidance includes all known tariff impacts and that input costs are expected to be deflationary [66][68] Question: What is the demand landscape for AI servers? - Management highlighted a diverse customer base, including CSP and enterprise customers, with significant growth in repeat enterprise customers [72][76] Question: How is the competitive environment affecting pricing? - Management stated that ASPs remained stable, with no price increases, and noted aggressive competition in large deals [90][92]

Financial Data and Key Metrics Changes - The company reported first quarter revenue of $85.9 million, which is up 2.2% sequentially and up 57.6% year over year, exceeding the midpoint of prior guidance [7][25] - Non-GAAP gross margin for Q1 was 62%, slightly above the midpoint of prior guidance due to a favorable product mix [25] - Non-GAAP net profit for Q1 was $3 million, or $0.07 per diluted share [26] - Cash and marketable securities reached $259.4 million, increasing by $9.1 million from the prior quarter [27] Business Line Data and Key Metrics Changes - AI revenue accounted for more than 75% of Q1 revenue, marking the fourth consecutive quarter of record AI revenue [8] - IoT applications increased to mid-single digits sequentially, now representing about three-quarters of total revenue [8] - Automotive revenue declined in low single digits sequentially but was up more than 20% year over year [8] Market Data and Key Metrics Changes - The company is increasing its fiscal 2026 revenue growth estimate to a range of 19% to 25%, approximately $348 million at the midpoint [9] - The serviceable available market (SAM) for h AI applications is projected to reach almost $13 billion by fiscal 2031, with a five-year compounded annual growth rate in the high teens [11] Company Strategy and Development Direction - The company is focusing on expanding its edge AI infrastructure market, developing new AI SoC product families to enhance its offerings [11][12] - The company aims to leverage its existing technology to address new application verticals beyond its core enterprise security business [19] - Investment in technology and products is driving both current and future revenue growth opportunities [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in long-term drivers of the h AI strategy despite geopolitical uncertainties [10][23] - The company is prepared for short-term surprises while focusing on innovation and market development [23] - Management indicated that while there is uncertainty regarding the second half of the fiscal year, they remain optimistic about growth [35] Other Important Information - The company has extended its share repurchase program for an additional twelve months, with approximately $48 million available under the authorization [28] - A logistics company, WT Microelectronics, represented 63.1% of revenue for the quarter [29] Q&A Session Summary Question: Clarification on full-year guidance and growth profile - Management indicated that there are no concerns about second-half strength, but geopolitical uncertainty has led to a broader guidance range [34][35] Question: Explanation of edge infrastructure products - Management clarified that edge infrastructure involves integrating multiple endpoints to upgrade existing installations, which is a growing trend [42][44] Question: Supply chain conversations with customers - Management reported that customers are not building inventory and are cautious about the current geopolitical situation [78][80] Question: Gross margin expectations - Management explained that gross margin fluctuations are primarily driven by customer and product mix [81] Question: AI capabilities in cameras and video management systems - Management noted that both cameras and AI boxes are necessary to upgrade the installed base and enhance AI capabilities [88][90] Question: Market share outside of China - Management stated that they hold a majority market share in the mid and high-end security camera market outside of China [92] Question: Edge AI infrastructure product development - Management confirmed that the second chip for edge AI infrastructure is a response to market demand and will leverage existing technology for faster development [96]

Financial Data and Key Metrics Changes - For the first quarter, net sales increased by 4.5% to $2.8 billion, with operating profit at 14.1% of sales and diluted earnings per share at $6.70 [6][25][29] - Comparable sales rose by 2.9%, driven by a 2.3% increase in average ticket and a 0.6% increase in transactions [25] - Gross margin decreased by 10 basis points to 39.1%, primarily due to deleverage of store and supply chain fixed costs [27] - SG&A expenses increased by 6.7% to $711 million, with SG&A as a percentage of sales rising to 24.9% [28] Business Line Data and Key Metrics Changes - Fragrance was the strongest performing category, delivering double-digit growth, while skincare and wellness saw high single-digit growth [10] - Hair care was roughly flat, with growth in hair color and accessories offset by declines in hair care tools [11] - Makeup category experienced a slight decrease in comp sales, driven by mass makeup, while prestige makeup remained flat [11][12] Market Data and Key Metrics Changes - Consumer engagement with beauty remains strong, with beauty and wellness prioritized by consumers despite economic pressures [7] - The beauty category is expected to normalize growth rates, projected at 2% to 5% over the next few years [56] Company Strategy and Development Direction - The company is focused on executing the Ulta Beauty Unleashed plan to accelerate performance and maintain leadership [7][19] - Strategic priorities include scaling new businesses, enhancing digital capabilities, and optimizing cost structures [17][19] - The company plans to open stores in Mexico City, Kuwait City, and Dubai later this year, alongside launching an online marketplace [18] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the operating environment, acknowledging ongoing consumer pressures and macroeconomic uncertainties [31][32] - The company updated its sales expectations for the year, projecting net sales between $11.5 billion and $11.7 billion, with comp sales growth expected to be flat to up 1.5% [31][32] Other Important Information - The company launched 19 new brands during the quarter, many of which are exclusive to Ulta Beauty [15] - The active loyalty member base reached a record 45 million, up 3% year over year [14] Q&A Session Summary Question: Insights on the Ulta Beauty Unleashed plan - Management highlighted improved in-store execution and marketing efforts as key contributors to the success of the Ulta Beauty Unleashed plan [36][40] Question: Full year outlook and promotional strategies - Management discussed expectations for comp sales growth and the rationality of promotions, emphasizing a cautious approach due to market dynamics [42][45] Question: Newness and innovation pipeline - Management expressed confidence in a balanced pipeline of new products across categories, with a focus on exclusivity [48][50] Question: Demand improvements and competitive intensity - Management noted that competitive intensity remains high, but the company is well-positioned to drive market share through its initiatives [51][54] Question: E-commerce growth drivers - Management attributed the 10% growth in e-commerce to enhancements in digital capabilities and a focus on app engagement [92][93]

Financial Data and Key Metrics Changes - Total revenues for Q1 2025 were $392.4 million, an increase from $388.5 million in Q1 2024, primarily driven by a 3.1% increase in comparable restaurant revenue and a 6.8% increase in net menu price, despite a 3.5% decline in guest traffic [10][11] - Adjusted EBITDA for Q1 2025 was $27.9 million, an increase of $14.5 million compared to Q1 2024, attributed to cost efficiency gains and menu price increases [12] - Restaurant level operating profit as a percentage of restaurant revenue was 14.3%, an increase of 330 basis points compared to the same quarter last year [11] Business Line Data and Key Metrics Changes - The revamped Red Robin Royalty program had approximately 15.3 million members at the end of Q1 2025, contributing to increased guest engagement and frequency of visits [8] - The company has focused on operational efficiency through its managing partner program, which incentivizes restaurant leaders to achieve strong financial results [7] Market Data and Key Metrics Changes - The company anticipates comparable restaurant sales to remain generally unchanged at approximately 0% for the year, with expectations of a decline of about 3% in Q2 2025 due to headwinds from the loyalty program changes [14][16] - Guest traffic was down 3.5% in Q1 2025, with expectations of a continued decline of approximately 4% for the remainder of the year [32][34] Company Strategy and Development Direction - The company aims to strengthen its financial position by reducing debt and increasing free cash flow generation, allowing for greater flexibility in investment opportunities [22] - Key priorities for 2025 include retaining operational improvements, returning to sustainable traffic growth, and reinvesting in restaurant facilities and atmosphere [19][20] - The company is focused on enhancing guest engagement and marketing strategies to restore Red Robin as a preferred dining option [20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's progress but acknowledged the need for continued improvement in guest experience and traffic growth [18][19] - The broader macroeconomic environment and consumer trends have led to a more cautious outlook for the remainder of the year, prompting a reduction in revenue guidance [14][15] Other Important Information - The company ended Q1 2025 with $24.2 million in cash and cash equivalents, $9.1 million in restricted cash, and $35 million available under its revolving line of credit [13] - The company plans to close 10 to 15 restaurants by the end of the year, with closures expected to be evenly spread throughout the year [48] Q&A Session Summary Question: Profitability in Q1 and maintaining guidance - Management noted that efficiency gains in labor contributed significantly to Q1 profitability, despite anticipated pressure from tariffs and traffic declines [30][31] Question: Menu price contribution throughout the year - Management expects menu price contribution to decline throughout the year, projecting about 4% check growth in Q2, 4% in Q3, and 2% in Q4 [35] Question: Loyalty program effectiveness - Management confirmed that the loyalty program is performing well, with significant opportunities for further growth and engagement [39] Question: Traffic trends and promotions - Management indicated that traffic trends are consistent with previous expectations, and the Hot Honey promotion has exceeded expectations [46][47] Question: Selling expenses and media spend outlook - Management expects selling expenses to remain around $30 million for the year, with some variability quarter to quarter [68] Question: Refinancing debt outlook - Management is optimistic about refinancing opportunities following strong Q1 results, but no specific timeline was provided [72][73]