Financial Data and Key Metrics Changes - Revenue increased by 9% in Q3 2025 and 18% on a two-year basis, despite challenging housing market conditions [4] - Adjusted operating margin was 11.6%, below the guidance midpoint of 12.5% due to higher-than-expected tariff expenses [4][6] - Adjusted EBITDA margin was reported at 17.6%, with free cash flow of $83 million in Q3 and $198 million year-to-date, on track to meet the annual target of $250 million to $300 million [4][5][7] Business Line Data and Key Metrics Changes - The company is making progress in reducing excess inventory, which is estimated at $300 million, with inventory down 11% year-over-year and $82 million lower than Q2 [5] - Market share gains are primarily coming from fragmented design showrooms and regional high-end furniture stores, with two-year share gains ranging from 12 to 28 points [5] Market Data and Key Metrics Changes - The company is navigating the worst housing market in nearly 50 years, with existing home sales projected to average 4.07 million from 2023 to 2025, compared to 4.09 million in 1978 [9] - Tariffs have disrupted supply chains, leading to increased prices and multiple rounds of price negotiations [9] Company Strategy and Development Direction - The company is focused on long-term growth, emphasizing innovation and investment during challenging times, with plans for a significant product transformation in the spring of next year [10][11] - The launch of RH Paris is seen as a pivotal move in building a global luxury brand, with plans for additional locations in Milan and London [20][21] - The company is developing a global hospitality business to enhance brand awareness and cash flow, with the RH Ocean Grill expected to generate significant operating income [12] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the unusual market conditions and the risks associated with tariffs and supply chain disruptions, but remains optimistic about gaining market share [9][10] - The company is preparing for a potential recovery in the housing market and believes its investments will pay off in the long run [8][61] Other Important Information - The company has opened a freestanding interior design office in Palm Desert, generating $1 million a month in design business [13] - The acquisition of Michael Taylor Designs is expected to enhance the company's offerings in the high-end market [56] Q&A Session Summary Question: How has RH Paris influenced performance expectations ahead of RH Milan and RH London? - Management noted that RH Paris is unique and has set a tone for future openings, emphasizing the importance of location and brand perception in Europe [16][17] Question: How did customers respond to price increases in Q3? - Management indicated that they are learning from the price increases and navigating the tariff situation, with a focus on maintaining fairness in pricing [47][48] Question: Is the company considering slowing the pace of initiatives for predictability? - Management expressed a commitment to high ambitions and strategic growth, emphasizing the importance of long-term brand building over short-term results [58][60]

Financial Data and Key Metrics Changes - Net sales for Q3 2025 were $101.9 million, down from $107.5 million in Q3 2024, primarily due to a 7.4% decrease in comparable sales, although new stores contributed to non-comparable sales [22][24] - Gross margin rate decreased to 42.7% from 45.1% in the same quarter last year, with occupancy costs contributing 210 basis points to the decline [23] - EBITDA for the quarter was a loss of $2 million compared to earnings of $1 million in Q3 2024 [24] Business Line Data and Key Metrics Changes - The shift towards value-driven private brands was noted, as these brands sell at lower average unit retails but generate higher margins [22] - The add-to-sales ratio for Q3 increased slightly to 6% from 5.7% last year, indicating strong returns from paid search and social channels [24] Market Data and Key Metrics Changes - Comparable sales by month showed negative trends: -6.7% in August, -9.3% in September, and -5.8% in October, with October being the best month year-to-date [22] Company Strategy and Development Direction - The merger with FullBeauty aims to create a scaled, category-defining retailer for inclusive apparel, addressing the fragmented market for plus-size and big and tall customers [4][10] - The combined company will leverage strengths in manufacturing, data science, and digital scale to enhance operational efficiency and customer experience [8][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the merger's potential to create long-term value for shareholders and improve operational efficiencies [4][10] - The focus will be on capturing $25 million in annual run rate cost synergies by 2027, with significant actions expected within the first 12 months post-merger [17][18] Other Important Information - The merger is structured as a 100% stock transaction, with DXL shareholders owning 45% and FullBeauty shareholders owning 55% of the combined company [17] - The combined entity is expected to generate approximately $1.2 billion in net sales and $70 million in Adjusted EBITDA post-merger [10][11] Q&A Session Summary Question: What is the expected capital structure post-closing? - The total debt expected upon closing is $172 million, with a term loan maturing in August 2029 at LIBOR plus 750 [28][30] Question: What will be the post-closing cash balance for the combined entity? - Specific pro forma numbers will be provided in the proxy statement, but the focus is on the $172 million term loan as the outstanding debt [32] Question: What are the trends in sales and EBITDA profitability for FullBeauty? - FullBeauty has seen similar comp trends to DXL, working on cost structure and marketing expenses to maintain EBITDA flow-through [53] Question: How will the two businesses manage promotions and pricing? - The focus will be on capturing cost and commercial synergies, with opportunities for cross-selling and leveraging each brand's strengths [42][46]

Lululemon Athletica (NasdaqGS:LULU) Q3 2026 Earnings Call December 11, 2025 04:30 PM ET Company ParticipantsHoward Tubin - VP of Investor RelationsJay Sole - Managing DirectorDana Telsey - CEO and CROPaul Lejuez - Managing DirectorCalvin McDonald - CEOMeghan Frank - CFOMichael Binetti - Senior Managing DirectorBrooke Roach - VP and Equity ResearchJanine Stichter - Managing DirectorConference Call ParticipantsLorraine Hutchinson - Retail AnalystMark Altschwager - Senior Research AnalystMatthew Boss - Equity ...

Comtech Telecommunications (NasdaqGS:CMTL) Q1 2026 Earnings Call December 11, 2025 04:30 PM ET Company ParticipantsKen Traub - Chairman, President and CEOMike Bondi - CFOMike Crawford - Senior Managing Director and Head of the Discovery GroupMaria Ceriello - Senior Director of FP&AOperatorWelcome to Comtech Telecommunications Corp's conference call for the first quarter of fiscal 2026. As a reminder, this conference call is being recorded. I would now like to turn the call over to Maria Ceriello, Senior Dir ...

Financial Data and Key Metrics Changes - Comtech reported net sales of $111 million for Q1 2026, a decrease from $130.4 million in the previous quarter but exceeding the midpoint of revenue guidance [13] - Gross profit for Q1 2026 was $36.8 million, representing a 153.3% increase from $14.5 million in Q1 2025, with a gross profit margin of 33.1% [14] - The company reported an operating loss of $2.8 million in Q1 2026, significantly improved from an operating loss of $129.2 million in Q1 2025 [15] - Adjusted EBITDA for Q1 2026 was $9.6 million, compared to an adjusted EBITDA loss of $30.8 million in Q1 2025 [16] - Operating cash flows were $8.1 million for Q1 2026, a substantial improvement from negative $21.8 million in Q1 2025 [17] Business Line Data and Key Metrics Changes - The Satellite and Space Communications segment reported a GAAP operating profit of over $3 million in Q1 2026, compared to a GAAP operating loss of approximately $119 million in the same period last year [8] - The Illyrium segment achieved adjusted EBITDA of $11.3 million, a slight increase from $11.0 million in the prior year [10] Market Data and Key Metrics Changes - The company secured approximately $27 million in initial funding toward a multi-year contract extension valued at over $130 million, which will contribute to future backlog [16] - Illyrium was awarded over $15 million in incremental multi-year funding for next-generation solutions development [12] Company Strategy and Development Direction - Comtech is focused on optimizing cash flow and has strategically phased out low-margin products to transition to higher-margin opportunities [25] - The company aims to capitalize on attractive growth opportunities in its business segments, particularly in satellite and space communications [4] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's revitalized financial health, which is expected to enhance employee retention, customer trust, and vendor relationships [21] - The company is at an inflection point, with improved margins and strategic growth opportunities ahead [25] Other Important Information - Mary Jane Raymond has joined the board of directors, bringing governance and operational expertise [22] Q&A Session Summary Question: Will the $130 million of new bookings flow to backlog in the current quarter? - A portion will be booked in the first quarter, but the majority will be booked in the second quarter [24] Question: What are the expectations for top-line growth given the transition to higher volume production? - The focus is on optimizing cash flow, with a belief that the company is at an inflection point for regrowth after phasing out low-margin business [25] Question: Any updates on the PIK preferred stock obligation? - No specific comments were made, but the company is exploring various options to improve its capital structure [27]

Frequency Electronics (NasdaqGM:FEIM) Q2 2026 Earnings Call December 11, 2025 04:30 PM ET Company ParticipantsThomas McClelland - President and CEOWiliam Bremer - Founder and Chief Investment OfficerBrett Reiss - Senior VPSteve Bernstein - CFOConference Call ParticipantsNone - Analyst 2George Marema - Research AnalystNone - Analyst 1Jeff Van Rhee - Partner and Equity Research AnalystOperatorGreetings, and welcome to the Frequency Electronics second quarter fiscal 2026 earnings release conference call. At th ...

Frequency Electronics (NasdaqGM:FEIM) Q2 2026 Earnings Call December 11, 2025 04:30 PM ET Company ParticipantsThomas McClelland - President and CEOWiliam Bremer - Founder and Chief Investment OfficerBrett Reiss - Senior VPSteve Bernstein - CFOConference Call ParticipantsNone - Analyst 2George Marema - Research AnalystNone - Analyst 1Jeff Van Rhee - Partner and Equity Research AnalystOperatorGreetings, and welcome to the Frequency Electronics Second Quarter Fiscal 2026 Earnings Release Conference Call. At th ...

Kestra Medical Technologies (NasdaqGS:KMTS) Q2 2026 Earnings Call December 11, 2025 04:30 PM ET Company ParticipantsStephanie Piazzola - VP of Equity Research Medical TechnologyVaseem Mahboob - CFOBrian Webster - President and CEODavid Roman - Managing DirectorNeil Bhalodkar - VP of Investor RelationsNone - Company RepresentativeConference Call ParticipantsLarry Biegelsen - Senior Medical Device Equity Research AnalystMarie Thibault - Managing Director and Medical Technology and Digital Health AnalystMichae ...

Kestra Medical Technologies (NasdaqGS:KMTS) Q2 2026 Earnings Call December 11, 2025 04:30 PM ET Company ParticipantsStephanie Piazzola - VP of Equity Research Medical TechnologyVaseem Mahboob - CFOBrian Webster - President and CEODavid Roman - Managing DirectorNeil Bhalodkar - VP of Investor RelationsNone - Company RepresentativeConference Call ParticipantsLarry Biegelsen - Senior Medical Device Equity Research AnalystMarie Thibault - Managing Director and Medical Technology and Digital Health AnalystMichae ...

Financial Data and Key Metrics Changes - The company reported revenue of $17.1 million for Q2 fiscal 2026, representing a 24% sequential increase and the third highest quarterly revenue in the past decade [3][11] - Consolidated net income for the quarter was approximately $1.8 million, or $0.18 per share, compared to approximately $2.7 million, or $0.28 per share for the same period of the previous fiscal year [15] - The fully funded backlog at the end of October 2025 was approximately $82 million, up from approximately $70 million at the previous fiscal year-end [16] Business Line Data and Key Metrics Changes - Revenue from commercial and U.S. government satellite programs was approximately $4.6 million, down from $9.4 million in the same period of the prior fiscal year [11] - Revenue from non-space U.S. government and Department of Defense customers was $11.9 million, accounting for approximately 69% of consolidated revenue, compared to 37% in the prior fiscal year [11] - Other commercial industrial revenues were approximately $560,000, slightly down from approximately $591,000 in the prior fiscal year [12] Market Data and Key Metrics Changes - The company anticipates significant growth in non-space defense products, which contributed to the increase in backlog [45] - The company expects a reversal in backlog growth towards space-related contracts in the upcoming quarters [46] Company Strategy and Development Direction - The company is focusing on growth opportunities in quantum sensing, proliferated satellites, and alternative position navigation and timing (ALT-PNT) programs, which are expected to be additive to the current business [5][6] - The company has established a facility in Colorado focused on quantum technology and low-phase noise oscillator technology, aiming to attract talent from local research institutions [22][23] - The company maintains strong strategic partnerships with major prime contractors, enhancing its competitive position in the defense sector [6][7] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth trajectory, citing a strong core business and new market opportunities [9] - The company believes that defense spending will remain robust regardless of political changes, driven by global security concerns [68][69] - Management indicated that many delays in revenue recognition were due to customer-driven issues rather than the government shutdown, and they expect to see normalization of margins in the near term [30][39] Other Important Information - The company is debt-free and has a strong working capital position of approximately $31 million, with a current ratio of approximately 2.6 to 1 [16] - The company plans to continue investing in R&D to maintain its technological edge [14] Q&A Session Summary Question: Can you provide details on the Golden Dome Awards? - Management indicated that they anticipate participating in various aspects of the Golden Dome initiative, particularly in ground-based and space-based missile defense [20][21] Question: What activities are ongoing in Colorado? - The Colorado facility focuses on quantum technology and low-phase noise oscillator technology, with several senior scientists hired from NIST [22][23] Question: Will margins normalize in the near term? - Management confirmed that they expect margins to normalize as program requirements have been resolved and new contracts are anticipated [39] Question: How does the company view growth opportunities irrespective of political changes? - Management believes that growth in the space sector is largely independent of politics, and defense spending is expected to remain strong due to global security concerns [68][69] Question: Is there potential for Turbo in commercial drones? - Management sees potential for Turbo in both military and commercial applications, but anticipates more immediate opportunities in military [72][73] Question: What is the company's position on international business? - The company has some significant business overseas and is actively pursuing additional opportunities, though export controls present challenges [79][80]