Financial Data and Key Metrics Changes - For Q3 2025, Oil-Dri reported a net income of $11,644,000, which is greater than all but eight of its 84 prior fiscal years [6] - Year-to-date net cash provided by operating activities was $55,000,000, an increase of 49% compared to the same period in fiscal year 2024 [15] - The effective tax rate for Q3 2025 was estimated at 18%, down from 23% in Q3 2024, with a full-year estimate of about 19% compared to 20.5% last year [20][21] Business Line Data and Key Metrics Changes - The Ultra Pet acquisition has performed well, meeting internal financial benchmarks and providing cost synergies, particularly in logistics and administration [24] - Animal health and nutrition revenues were flat year-over-year for the past quarter, but year-to-date performance remains strong [33][34] Market Data and Key Metrics Changes - The U.S. renewable diesel production was down 12% in Q1 2025, while Oil-Dri's business in this sector was up 13% due to new plants coming online [36][38] - The lightweight litter segment is growing more than the overall litter category, positioning Oil-Dri for long-term success [40] Company Strategy and Development Direction - The company plans to continue investing in capital expenditures, with an expected total of approximately $143,000,000 over five years [8] - A disciplined approach to capital deployment will balance shareholder returns with reinvestment in the business and potential M&A opportunities [15][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the sustainability of cash flow generation, which inspired a 16% increase in dividends [15] - The company remains focused on long-term growth, emphasizing the importance of maintaining a strong capital structure and investing in R&D [61][64] Other Important Information - The board raised the dividend by 16%, marking the 22nd consecutive year of increased dividends [9][18] - The company has shifted more than half of its warehouse forklift fleet to electric, moving away from propane or natural gas [49] Q&A Session Summary Question: Was the flat performance in animal health and nutrition due to seasonality or tariff issues? - Management indicated that the flat performance was due to tariff-related volatility and logistics challenges, but year-to-date performance remains strong [34] Question: How did Oil-Dri outperform in the renewable diesel sector despite market declines? - The company secured new business from new plants coming online, contributing to its growth despite overall market declines [36][38] Question: What is the strategy for growing private label clay cat litter distribution? - Management remains optimistic about the lightweight litter segment and is actively targeting national retailers to expand distribution [40][41] Question: Are there alternatives to natural gas for production? - Currently, liquid natural gas is the most cost-effective option, but the company is exploring alternative technologies and optimizing fuel consumption [46][48] Question: Is artificial intelligence being utilized to control expenses? - The company is in the early stages of integrating AI to enhance efficiency in customer service and accounts payable, with plans for broader applications in the future [55][57]

Financial Data and Key Metrics Changes - T-Mobile reported a record year in 2024, achieving over 6 million postpaid customer net additions, the highest in its history, and the lowest postpaid phone churn ever [16] - The company returned $14.4 billion to stockholders in the previous year, reflecting strong financial performance [20] Business Line Data and Key Metrics Changes - T-Mobile's broadband segment saw significant growth, with 6.9 million customers using T-Mobile high-speed Internet as of March [17] - The introduction of a 5G network slice specifically for first responders demonstrates T-Mobile's commitment to enhancing service offerings [18] Market Data and Key Metrics Changes - T-Mobile's market presence expanded significantly, resonating with customers in both large and small markets, as well as rural areas [16] - The company is making strides in the satellite market, with over 600 satellites in orbit, covering nearly half a million square miles without ground cellular service [19] Company Strategy and Development Direction - T-Mobile's long-term strategy focuses on using technology and digital capabilities to deepen customer relationships and enhance value [20] - The company aims to continue innovating and challenging the status quo, which has led to industry-leading customer and service revenue growth [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's momentum and its ability to invest in future growth, supported by strong 2024 results [20] - The CEO highlighted the importance of customer-centric innovation and the company's commitment to delivering the best network and experience [15] Other Important Information - The company has laid the groundwork for future fiber expansion through joint ventures with fast-growing fiber providers [17] - T-Mobile's political engagement is described as striving for neutrality, with a balanced approach in political contributions through its employee-funded PAC [24] Q&A Session Summary Question: Will the company return to political neutrality? - Management clarified that T-Mobile strives for political neutrality and advocates for stockholders' best interests, with contributions being nearly evenly split between political parties [24] Question: How does the compensation committee determine the CEO's target compensation? - The compensation committee does not consider the "compensation actually paid" figures when determining the CEO's target compensation for the upcoming year, emphasizing a pay-for-performance approach [27]

Financial Data and Key Metrics Changes - The company reported net sales of $452.2 million for Q2 2025, a 70% increase compared to the same period in 2024, primarily driven by the Tymon acquisition [14] - Net income for the quarter was $20.5 million or $0.44 per diluted share, compared to $15.4 million or $0.46 per diluted share in Q2 2024 [14] - Adjusted EBITDA increased by 54.7% to $61.9 million compared to $40 million in the same period last year [15] Business Line Data and Key Metrics Changes - North American Fenestration segment net sales decreased by 5.5% to $151 million, with estimated volume decline of approximately 7% year over year [16] - European Fenestration segment revenue increased by 8.3% to $61.3 million, with estimated volume up approximately 9% year over year [17] - North American Cabinet Components segment reported net sales of $51.2 million, with estimated volume decline of approximately 3% [18] - Tymon business reported net sales of $190.1 million, with an estimated revenue decline of approximately 2% due to soft market demand [19] Market Data and Key Metrics Changes - In North America, volumes increased month over month in Q2, but year-over-year volume declined due to low consumer confidence related to higher interest rates [7][8] - In Europe, consumer confidence was negatively impacted by higher interest rates and geopolitical conflicts, but market share gains in specific product lines helped offset weaknesses [10][11] Company Strategy and Development Direction - The company is focused on integrating the Tymon acquisition, expecting to realize cost synergies of approximately $45 million, a 50% increase from the original target [6] - The integration strategy includes geographic expansion, operational optimization, new product development, and portfolio analysis, aligned with a profitable growth strategy [7] - The company aims to drive above-market growth and improve margin profiles [7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in minimizing tariff impacts by localizing supply chains and utilizing surcharge pricing mechanisms [10] - The company reaffirmed net sales guidance of approximately $1.84 billion to $1.86 billion and adjusted EBITDA guidance of $270 million to $280 million for fiscal 2025 [22] - Management noted that the integration is shifting towards growth-focused projects that will drive margin expansion [12] Other Important Information - The company repurchased approximately $23.5 million of its stock in Q2 2025 and has $35.6 million remaining on its share repurchase program [11] - Cash provided by operating activities was $28.5 million, down from $33.1 million in Q2 2024, impacted by the integration of the Tymon acquisition [20] Q&A Session Summary Question: Can you provide more details on raising the synergy target from $30 million to $45 million? - Management indicated that the increase is due to operational efficiencies and procurement synergies identified during the integration process [26][27] Question: Has the tariff issue created opportunities for domestic sourcing? - Management confirmed that the domestic manufacturing footprint has led to increased quoting opportunities and successful spot purchases, particularly in the cabinet segment [29][30] Question: Where in the Tymon portfolio have cost synergies been realized faster than expected? - The main area of faster realization has been in procurement, with additional synergies identified in corporate functions such as finance and HR [37][38] Question: Is the $6.5 million in intangible asset amortization a good run rate for the future? - Management stated that Q2 is a decent run rate for intangible amortization, with a full-year guidance of around $60 million for adjusted D&A [39]

Financial Data and Key Metrics Changes - In the second quarter of fiscal year 2025, total revenues increased to $37.4 million from $22.4 million in the same quarter of the previous year [32] - The loss from operations narrowed to $35.8 million compared to $41.4 million in the second quarter of fiscal year 2024 [33] - The net loss attributable to common stockholders was $38.8 million, compared to $32.9 million in the prior year, with a net loss per share of $1.79 versus $2.18 [33] - Adjusted EBITDA improved to negative $19.3 million from negative $26.5 million year-over-year [33] - Cash, restricted cash, cash equivalents, and short-term investments totaled $240 million as of April 30, 2025 [34] Business Line Data and Key Metrics Changes - Product revenues were $13 million, a significant increase from zero in the prior year [34] - Service agreement revenues rose to $8.1 million from $1.4 million, driven by module exchanges under a long-term service agreement [34][35] - Generation revenue decreased to $12.1 million from $14.1 million, primarily due to lower power output from maintenance activities [36] - Advanced Technology contract revenues fell to $4.1 million from $6.9 million [36] Market Data and Key Metrics Changes - Backlog increased by approximately 18.7% to $1.26 billion compared to $1.06 billion as of April 30, 2024, partly due to a long-term service agreement [39] - The company anticipates significant demand for distributed power generation in the U.S., Asia, and Europe, aligning with its strategic focus [31][32] Company Strategy and Development Direction - The company announced a restructuring plan prioritizing sales of its molten carbonate platform and reducing overhead to enhance profitability [6][10] - Focus will remain on validating and demonstrating solid oxide technology while optimizing supply chains and driving efficiency [7][8] - The company aims to achieve positive adjusted EBITDA once its Torrington facility reaches an annualized production rate of 100 megawatts [9][31] - Strategic partnerships, such as the Dedicated Power Partners initiative, are expected to accelerate deployment in data centers and large-scale applications [15][16] Management's Comments on Operating Environment and Future Outlook - Management highlighted strong global power demand and the structural shifts in energy needs driven by AI and data centers [12][13] - The company is committed to disciplined cost management, expecting to reduce operating expenses by 30% annually compared to fiscal year 2024 [18][30] - Management expressed confidence in the company's ability to navigate the evolving energy landscape and capitalize on market opportunities [29][30] Other Important Information - The restructuring plan includes a global workforce reduction and a recalibration of production schedules to align with contracted demand [30] - The company is focusing on energy integration, combining fuel cell solutions with other generation technologies to enhance reliability and efficiency [10][11] Q&A Session Summary Question: Can you discuss the momentum in procuring customers and orders for DPP? - Management indicated active conversations with data center customers and positive momentum in turning partnerships into transactions [44] Question: What is the timeline for achieving EBITDA neutrality at the 100 megawatt production level? - Management stated that achieving this level depends on the flow of orders, with a focus on distributed generation opportunities [46][47] Question: How does the manufacturing side drive profitability compared to generation? - Management clarified that while generation contributes, the focus is on product and service sales, particularly through partnerships like DPP [52] Question: Will pricing for data center applications change due to rising gas turbine costs? - Management sees rising costs as an opportunity rather than a challenge, expecting stable pricing for customers [55] Question: What types of customers are moving fastest in the power generation opportunity for AI and data centers? - Management noted a fragmented market with various customer segments, including traditional developers and hyperscalers, all actively engaged [60][61]

Financial Data and Key Metrics Changes - In the second quarter of fiscal year 2025, total revenues increased to $37.4 million from $22.4 million in the same quarter of the previous year [32] - The loss from operations narrowed to $35.8 million compared to $41.4 million in the second quarter of fiscal year 2024 [33] - The net loss attributable to common stockholders was $38.8 million, compared to $32.9 million in the prior year, with a net loss per share of $1.79 versus $2.18 [33] - Adjusted EBITDA improved to negative $19.3 million from negative $26.5 million year-over-year [33] - Cash, restricted cash, cash equivalents, and short-term investments totaled $240 million as of April 30, 2025 [34] Business Line Data and Key Metrics Changes - Product revenues were $13 million, a significant increase from zero in the prior year [34] - Service agreement revenues rose to $8.1 million from $1.4 million, driven by module exchanges under a long-term service agreement [34] - Generation revenue decreased to $12.1 million from $14.1 million due to lower power output from maintenance activities [35] - Advanced Technology contract revenues fell to $4.1 million from $6.9 million [35] - Operating expenses decreased to $26.4 million from $34.3 million, with R&D expenses down to $9.9 million from $16.6 million [37] Market Data and Key Metrics Changes - Backlog increased by approximately 18.7% to $1.26 billion compared to $1.06 billion as of April 30, 2024, partly due to a long-term service agreement [39] - The company anticipates significant demand for distributed power generation in the U.S., Asia, and Europe [30] Company Strategy and Development Direction - The company announced a restructuring plan focusing on the carbonate platform, aiming to reduce operating expenses by 30% annually [30][31] - The strategy includes optimizing the supply chain and enhancing efficiency while preserving long-term flexibility for carbon capture opportunities [6][10] - The company is targeting positive adjusted EBITDA once the Torrington facility reaches an annualized production rate of 100 megawatts [10][31] Management's Comments on Operating Environment and Future Outlook - Management emphasized the strong global demand for power and the structural trends driving the need for clean energy solutions [12][13] - The company is focused on leveraging its carbonate technology to meet the growing demand for distributed energy and grid resilience [23][27] - Management expressed confidence in the restructuring efforts and the potential for future profitability [18][28] Other Important Information - The company is intensifying its focus on its carbonate platform while pausing broader solid oxide R&D efforts [7][8] - The partnership with Diversified Energy and TESSIAC aims to accelerate the deployment of carbonate fuel cells in data centers and large-scale applications [16][17] Q&A Session Summary Question: Can you discuss the momentum in procuring customers and orders for DPP? - Management indicated active conversations with data center customers and positive momentum in the partnership [44] Question: When can we expect to reach EBITDA neutral at 100 megawatts production? - Management stated that achieving 100 megawatts is dependent on order flow, with no additional capital needed to reach that capacity [46][47] Question: How does the manufacturing side drive profitability compared to generation? - Management clarified that the focus is on product and service sales rather than solely increasing the generation portfolio [52] Question: Will future bookings for data center applications reflect similar pricing to past orders? - Management expects stable pricing and views the increasing costs of gas turbines as an opportunity [55] Question: What types of customers are moving fastest in the power generation opportunity for AI and data centers? - Management noted a fragmented market with various customer segments, including traditional REITs and hyperscalers [60][62] Question: What will the agreements with gas distribution customers look like? - Management explained that DPP will generally involve power purchase agreements, with options for long-term service agreements [66]

Financial Data and Key Metrics Changes - The company generated net sales of $116 million in Q1 2025, a decrease of 14% compared to $135 million in Q1 2024 [6][18] - Adjusted EBITDA for Q1 2025 was $3 million, down from $15.5 million in the same period last year [6][18] - Operating expenses decreased by $5 million year-over-year, and net trade working capital was reduced by $86 million [5][11] Business Line Data and Key Metrics Changes - Metem sales increased by 14% year-over-year, while Diamond sales rose by 17% due to increased peanut acreage [9][10] - The absence of a previously canceled herbicide product negatively impacted sales, alongside weakness in the Mexican agave market and drought conditions in Australia [9][18] Market Data and Key Metrics Changes - Inventory levels at distributors are down nearly 23% compared to the previous year, indicating a prolonged destocking period [25] - Corn plantings are at historically high levels, which is expected to positively impact demand for crop protection products [25] Company Strategy and Development Direction - The company is focused on cost containment and improving net working capital, with a goal of achieving a 15% adjusted EBITDA margin over the cycle [11][27] - A transformation plan is in place to streamline operations and improve financial results, with expectations of a cyclical recovery in the agricultural market [24][27] Management's Comments on Operating Environment and Future Outlook - Management noted that while the first quarter was weaker than anticipated, there are signs of recovery as customer activity levels are beginning to pick up [24][62] - The company has adjusted its full-year adjusted EBITDA target range to $40 million to $44 million, down from $45 million to $52 million, reflecting a cautious outlook [13][23] Other Important Information - The company faced delays in filing its 10-K and 10-Q due to internal control matters and the need for a detailed review of major assets [14][16] - The current credit agreement matures in Q3 2026, and the company is exploring options for a longer-term capital structure [21][22] Q&A Session Summary Question: Can you elaborate on the year-over-year top line performance? - Management indicated that the destocking period continued into Q1 2025, affecting sales, but positive trends were observed in May and June [30][34] Question: What were the EBITDA and revenue contributions from Dactol? - Dactol contributed $6 million to top line sales with a gross margin of 13.5% [36][37] Question: What are the expectations for cash taxes this year? - Cash taxes are expected to be in the range of $4 million to $5 million due to international obligations [44] Question: How does the company view the competitive pricing environment? - Management noted unusual competitive activity in Q1, leading to discounting, but expects improvements in pricing as demand increases [58][59]

Financial Data and Key Metrics Changes - The company generated net sales of $116 million in Q1 2025, a decrease of 14% compared to $135 million in Q1 2024 [6][16] - Adjusted EBITDA for Q1 2025 was $3 million, down from $15.5 million in the same period last year [6][16] - Operating expenses decreased by $5 million year-over-year [5][10] - Gross profit margin declined to 26% in Q1 2025 from 31% in the previous year [18] Business Line Data and Key Metrics Changes - Metem sales increased by 14% year-over-year, while Diamond sales rose by 17% due to increased peanut acreage [8][9] - The absence of a previously canceled herbicide product negatively impacted sales [16] - The company faced challenges in the Mexican agave market and drought conditions in Australia, affecting overall performance [8][16] Market Data and Key Metrics Changes - Inventory levels at distributors are down nearly 23% compared to the previous year, indicating a prolonged destocking period [24] - Corn plantings are at historically high levels, which may positively impact demand for the company's products [24] - The company noted a competitive pricing environment, particularly in the fungicide and herbicide categories [56][58] Company Strategy and Development Direction - The company is focused on cost containment and improving net working capital, with a goal of achieving a 15% adjusted EBITDA margin over the long term [10][48] - A transformation plan is in place to streamline operations and improve financial results [26] - The company is exploring options for a longer-term capital structure to replace its current credit agreement [21] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about a recovery in demand as inventory levels are at historic lows [23][62] - The company has adjusted its full-year adjusted EBITDA target range to $40 million to $44 million, down from $45 million to $52 million [12] - Management highlighted the importance of executing the transformation plan to position the company for a cyclical upturn [22][26] Other Important Information - The company faced delays in filing its 10-K and 10-Q due to internal control matters and the need for a detailed review of major assets [13][15] - The company is working on a remediation plan to address identified material weaknesses in internal controls [15] Q&A Session Summary Question: Can you elaborate on the year-over-year top line performance? - Management noted that the removal of the Dactyl product significantly impacted top line sales, along with challenges in the agave market and drought in Australia [31][32] Question: What are the expectations for cash taxes this year? - The company expects cash taxes to be in the range of $4 million to $5 million due to international obligations [43] Question: Can you provide details on pricing pressures and competitive environment? - Management indicated that competitive pricing was influenced by inventory levels and not necessarily by specific product competition, with expectations for improvement in the future [56][58]

Financial Data and Key Metrics Changes - Non-GAAP earnings per diluted share increased to $0.19 from $0.12 year-over-year, exceeding guidance [13][37] - Net sales for the quarter were $584 million, down from $610 million in the same period last year, aligning with expectations [35] - Gross margin percentage was 42.2%, slightly down from 42.5% in the previous year [35][36] - Non-GAAP net income for the first quarter was $8.4 million compared to $5.8 million in the previous year [37] - Ending cash and availability was approximately $740 million, indicating a strong financial position [13][38] Business Line Data and Key Metrics Changes - Wholesale segment net sales decreased to $563 million from $598 million year-over-year [35] - Retail segment net sales increased to $36 million from $31 million in the previous year [35] - Key owned brands, including DKNY, Karl Lagerfeld, and Donna Karan, experienced double-digit growth, offsetting losses from exited businesses [5][14] Market Data and Key Metrics Changes - International markets are seen as significant growth opportunities, particularly in Europe [14][22] - The brand Donna Karan saw nearly 50% sales growth, with strong performance in dresses and suit separates [15][16] - DKNY and Karl Lagerfeld also reported strong sales growth, particularly in North America and Europe [20][22] Company Strategy and Development Direction - The company is focused on driving growth through its owned brands, which are expected to be sustainable long-term profit drivers [13][14] - Strategic initiatives include sourcing diversification, vendor negotiations, and selective price increases to mitigate tariff impacts [7][39] - The company is also enhancing its omni-channel capabilities and optimizing its global store footprint [30][31] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the consumer environment despite macroeconomic uncertainties [6][33] - The potential unmitigated tariff impact for fiscal 2026 is estimated at approximately $135 million, with ongoing efforts to mitigate this through various strategies [7][39] - The company remains committed to investing in key owned brands and growth initiatives despite challenges [12][33] Other Important Information - The company successfully renegotiated favorable lease terms for corporate offices and is streamlining its warehouse network [11] - The planned relaunch of the Sonya Riquel brand was postponed due to uncertainties in the operating environment [12][54] Q&A Session Summary Question: Pricing Power and Areas for Price Increases - Management indicated strong cooperation from retailers in adjusting pricing, focusing on areas where consumers will accept price increases [45][46] Question: Impact of Sonya Riquel Postponement on Guidance - The decision to postpone the Sonya Riquel launch was made to avoid losses, but strength in other brands allows the company to maintain its sales guidance [53][54][75] Question: Inventory Levels and Supply Chain Challenges - Inventory levels are expected to align with sales growth, with management actively managing inventory purchases in light of supply chain disruptions [78][80] Question: Promotions and Consumer Demand - Management does not anticipate significant pressure on promotions, citing strong demand for their products and effective management of inventory levels [84][85]

Financial Data and Key Metrics Changes - The company achieved revenue of $2.1 billion, representing a 4.6% year-over-year growth driven by 3.8% organic growth and contributions from the acquisition of Quality Uptime Services [19][20] - Adjusted EPS was $0.86, up from $0.82 in the prior year, reflecting higher segment earnings and lower corporate costs [20] - Adjusted EBITDA was $125.9 million, compared to $121 million last year, with an adjusted EBITDA margin remaining flat at 6.2% [20][21] Business Line Data and Key Metrics Changes - The Building and Industrial (B and I) segment generated $1 billion in revenue, up 3% year-over-year, driven by improved conditions in the US prime commercial office market [21] - The Maintenance and Distribution (M and D) segment reported revenue of $398.1 million, a 2% increase year-over-year, returning to organic growth due to new contract wins and expansion with existing clients [23][24] - The Technical Solutions segment delivered 19% revenue growth to $210.2 million, with 10% from organic growth and 9% from the acquisition of Quality Uptime Services [25] Market Data and Key Metrics Changes - The prime vacancy rate for commercial office space decreased by 50 basis points year-over-year to 14.8%, indicating a recovery in the market [8] - E-commerce sales grew by 6.1% year-over-year, reaching $300.2 billion, representing 16.2% of total retail [14] - Domestic air travel remains strong, with TSA data showing daily screenings frequently exceeding 2.5 million in May [14] Company Strategy and Development Direction - The company is focusing on high-quality office properties, manufacturing and distribution facilities, and energy resiliency, expecting to benefit from delayed projects resuming in the third quarter [7][16] - The strategy includes evolving service offerings in M and D to include ancillary support services, enhancing client relationships and deepening strategic partnerships [10] - The company is prioritizing internal investments and is optimistic about the M and A pipeline, indicating a strong interest in acquiring companies that can enhance strategic value [96] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in core markets despite ongoing macroeconomic uncertainty, particularly in high-quality office properties and manufacturing [7][8] - The company anticipates continued organic growth in B and I and M and D, with expectations for strong performance in the second half of the year [44][70] - Management highlighted the importance of the ERP implementation in improving operational efficiency and cash flow [30] Other Important Information - The company ended the quarter with total indebtedness of $1.6 billion and available liquidity of $657.8 million [26][27] - Free cash flow for the quarter was $15 million, an improvement of $138 million over the first quarter, with expectations for continued improvement in the second half [27][28] - The company reaffirmed its full-year adjusted EPS guidance to be in the range of $3.65 to $3.80 [29] Q&A Session Summary Question: What is the expected earn-out on RavenBold? - The total earn-out for this year is expected to be about $30 million, with the previous year's earn-out being $75 million [36] Question: How is the company positioned for organic growth in the B and I business in the second half? - Management is optimistic about maintaining positive organic growth in B and I, despite potential choppiness [44] Question: Can you elaborate on the new solutions offered in the M and D segment? - The company is expanding its service offerings to include material handling and test balancing, which are expected to enhance client relationships and margins [51][53] Question: What is the breakdown of the $1.1 billion in new bookings? - The new bookings were evenly paced across the board, with significant contributions from various segments [61] Question: What is the status of project delays in ATS? - Project delays are primarily due to customer approvals, but management expects a normalization in the second half of the year [67] Question: How is the education segment performing? - The education segment is stable, with a good pipeline and strong renewals, although it is not expected to grow at double-digit rates [70][71]

Financial Data and Key Metrics Changes - Non-GAAP earnings per diluted share increased to $0.19 from $0.12 year-over-year, exceeding guidance [11] - Net sales for the quarter were $584 million, down from $610 million in the same period last year, aligning with expectations [32] - Gross margin percentage was 42.2%, slightly down from 42.5% in the previous year [32] - The company ended the quarter with a net cash position of approximately $239 million, compared to $82 million in the prior year [34] Business Line Data and Key Metrics Changes - The wholesale segment's net sales decreased to $563 million from $598 million year-over-year [32] - The retail segment's net sales increased to $36 million from $31 million in the previous year [32] - Key owned brands, including DKNY, Karl Lagerfeld, and Donna Karan, experienced double-digit growth, offsetting losses from exited businesses [4][12] Market Data and Key Metrics Changes - International markets are identified as significant growth opportunities, particularly in Europe [12] - Donna Karan saw nearly 50% sales growth, with strong performance in dresses and suit separates [14] - DKNY and Karl Lagerfeld also reported double-digit growth, with DKNY gaining share across multiple categories [17][19] Company Strategy and Development Direction - The company is focused on driving growth through its owned brands, which are seen as sustainable profit drivers [11] - Strategic initiatives include sourcing diversification, vendor negotiations, and selective price increases to mitigate tariff impacts [6][36] - The company is optimizing its global store footprint and enhancing its omni-channel capabilities [28] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the consumer environment and the health of the brands [5] - The company is actively working to mitigate the estimated $135 million tariff impact through various strategies [6][36] - Future growth is anticipated through the expansion of owned brands and strategic licenses, with a focus on long-term sustainability [22][28] Other Important Information - The company has successfully renegotiated lease terms for corporate offices and is streamlining its warehouse network [9] - The North American retail segment is expected to break even this year, enhancing operating income by $14 million [10] - The launch of the Sonya Riquel brand has been postponed due to market uncertainties [10] Q&A Session Summary Question: Pricing power and areas for price increases - Management indicated strong cooperation from retailers in adjusting pricing, particularly for newer brands like Donna Karan and Karl Lagerfeld [41][42] Question: Impact of Sonya Riquel postponement on guidance - The decision to postpone was made to avoid losses, and management remains confident in the overall strength of the portfolio [50][51] Question: Inventory levels and expectations for Q2 - Inventory levels are expected to align with sales growth, with a focus on managing supply chain challenges [74][75] Question: Promotions and consumer demand - Management does not anticipate significant pressure on promotions, citing strong demand for quality products [78][79]