Nordson (NDSN) Q2 2025 Earnings Call May 29, 2025 08:30 AM ET Company Participants Lara Mahoney - Vice President of Investor Relations & Corporate CommunicationsSundaram Nagarajan - President and CEODaniel Hopgood - Executive VP & CFOAndrew Buscaglia - Executive DirectorSaree Boroditsky - Senior Vice PresidentChristopher Dankert - SVP - Equity Research Conference Call Participants Michael Halloran - Senior Research Analyst - Associate Director of ResearchChristopher Glynn - Managing Director and Senior Anal ...

Financial Data and Key Metrics Changes - The company reported net sales of $400.4 million for the fourth fiscal quarter, representing a decline of 11.7% compared to the prior year [4][14] - Adjusted EBITDA for the quarter was $47.1 million, or 11.8% of net sales, down from 12.1% in the same period last year [8][16] - Adjusted net income was $24 million, or $1.61 per diluted share, compared to $28.2 million, or $1.78 per diluted share last year [16] - The gross profit margin decreased by 160 basis points to 17% of net sales from 18.6% in the prior year [15] - For the full fiscal year, net sales were $1.7 billion, a decrease of 7.5% year-over-year [18] Business Line Data and Key Metrics Changes - Remodel net sales, which include home centers and independent dealers, decreased by 10.4% in the fourth quarter [14] - New construction net sales decreased by 13.4% for the quarter compared to last year [14] - The home center business saw a low single-digit negative comp, while the pro business reported a positive comp for the quarter [5][6] Market Data and Key Metrics Changes - Existing home sales fell by 0.5% month-over-month to a seasonally adjusted rate of 4 million in April 2025, with a year-over-year decline of 2% [4] - The NAHB housing market index fell to 34 in May, marking the lowest level since November 2023 [7] - Single-family housing starts experienced negative comps from January to April [7] Company Strategy and Development Direction - The company focuses on three main strategic pillars: growth, digital transformation, and platform design [10] - Key accomplishments include product innovation, capacity investments, and channel expansion, with over 30% of made-to-order sales coming from products launched in the last three years [10][11] - The company is enhancing its manufacturing capabilities and transitioning independent distributor customers to a new brand [11][12] Management's Comments on Operating Environment and Future Outlook - The management expects demand trends to remain challenging, with net sales for fiscal year 2026 projected to range from low single-digit declines to low single-digit increases [9][20] - The outlook is influenced by macroeconomic factors, including interest rates, tariff changes, and consumer behavior [20] - Management believes that a decline in mortgage rates and increased consumer confidence could positively impact the housing market [9] Other Important Information - The company repurchased 1.17 million shares during fiscal year 2025, representing about 7.5% of outstanding shares [19] - Free cash flow totaled $65.7 million for the current fiscal year, down from $138.5 million in the prior year [18] - The company has a net leverage ratio of 1.56 times adjusted EBITDA at the end of the fourth quarter [19] Q&A Session Summary Question: Impact of tariffs on full year guidance - Management indicated that the outlook was significantly influenced by tariffs, estimating a cost impact of approximately $20 million [26][27] Question: Gross margin improvement - The improvement in gross margins was attributed to operational adjustments made in response to previous demand softness [28][30] Question: Revenue guidance assumptions - The revenue guidance assumes a recovery in both remodel and new construction markets in the second half of fiscal year 2026 [35][36] Question: Cost side considerations - Management acknowledged potential commodity inflation and labor costs as factors to consider for the full year guidance [43] Question: Savings from facility closure - The closure of a components facility is expected to yield annual savings of $5 million to $6 million [45] Question: Automation investments progress - Management described the company as being in the early stages of its automation investment journey, with significant spending planned for fiscal year 2026 [53][54]

Financial Data and Key Metrics Changes - The company reported net sales of $1.4 billion, an increase of 2.9% compared to the prior year, marking the strongest underlying sales performance since 2021 [28] - Earnings per diluted share were $0.49, exceeding the high end of the guidance range [17] - Gross profit rate was 45.4%, an increase of 160 basis points year-over-year, driven by a 100 basis point improvement in merchandise margin [30][31] Business Line Data and Key Metrics Changes - Body care grew low single digits, driven by the success of the Disney Princess line and the expansion of the everyday luxuries line [21] - Home fragrance also grew low single digits, supported by single wick candles and wallflowers [21] - Soaps and sanitizers grew mid single digits, driven by on-the-go assortments [21] Market Data and Key Metrics Changes - International retail sales grew approximately 10% this quarter, representing about 5% of total net sales [27][30] - U.S. and Canadian store net sales totaled $1.1 billion, an increase of 4.3% versus the prior year [29] Company Strategy and Development Direction - The company aims to transform Bath and Body Works to accelerate growth and deepen customer connections, focusing on consumer-centric strategies [9][10] - Plans include enhancing digital capabilities, improving packaging, exploring new distribution forms, and expanding internationally [12][14] - The strategy will prioritize fewer, bolder initiatives to drive consistent and repeatable growth [53] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to absorb current tariff levels and maintain guidance for the year [33][34] - The company is optimistic about the innovation pipeline for the second half of the year, including new product launches and collaborations [50][75] - Management emphasized the importance of emotional connections with consumers and the need for compelling storytelling in marketing [61][92] Other Important Information - The loyalty program has approximately 39 million active members, up 4% from the prior year, driving increased customer engagement [23][24] - The company plans to maintain capital expenditures of $250 million to $270 million, focusing on real estate and technology [37] Q&A Session Summary Question: What attracted you to Bath and Body Works? - The CEO highlighted the emotional connection of the brand and its strong foundation, including a large number of stores and loyal customers [44] Question: Can you elaborate on the go-forward top line commentary? - Management noted that Disney was a key driver of growth and expressed confidence in upcoming product launches [48] Question: What are the building blocks of opportunity for growth? - The CEO mentioned focusing on fewer priorities and leveraging existing investments to drive growth [55] Question: How do you view pricing strategy in light of tariffs? - Management stated they will remain agile and responsive to customer needs while maintaining value [103] Question: What is the strategy for international expansion? - The CEO emphasized a selective approach to international markets, focusing on understanding local consumer needs [105] Question: How do you plan to enhance marketing efforts? - Management indicated a shift towards emotional storytelling and less reliance on price promotions [61]

SpartanNash Company (SPTN) Q1 2025 Earnings Call May 29, 2025 08:30 AM ET Company Participants Kayleigh Campbell - Head - Investor RelationsTony Sarsam - President and CEOJason Monaco - EVP & CFOBenjamin Wood - VP - Equity ResearchPeter Saleh - MD - RestaurantsScott Mushkin - Founder, CEO, Managing Partner & Director of Research Conference Call Participants Chuck Cerankosky - Managing Director & Research AnalystAlexander Slagle - Stock AnalystAndrew Wolf - SVP & Senior Research Analyst Operator Thank you fo ...

B.O.S. Better Online Solutions (BOSC) Q1 2025 Earnings Call May 29, 2025 08:30 AM ET Company Participants Eyal Cohen - CEOTodd Felte - SVP - Branch Manager Conference Call Participants None - Analyst None Welcome to the BOS conference call. All participants are at present in listen only mode. As a reminder, this conference call is being recorded and will be available on the BOS website as of tomorrow. Before I turn the call over to mister Cohen, I would like to remind everyone that forward looking statement ...

Financial Data and Key Metrics Changes - Total sales grew by 6% compared to 11% growth last year, while comparable store sales were flat, following 2% growth last year [8][29] - EBIT margin increased by 30 basis points, and adjusted EPS was up 18% over last year despite flat comparable sales [10][29] - Gross margin rate for Q1 was 43.8%, an increase of 30 basis points year-over-year, driven by a 20 basis point increase in merchandise margin [27] Business Line Data and Key Metrics Changes - The company experienced a flat comp sales trend across all demographic trade areas, indicating a broad-based slowdown [18][68] - Reserve inventory was up 31% compared to last year, reflecting strong purchasing ahead of tariffs [30][76] Market Data and Key Metrics Changes - The company noted a deceleration in comp sales from Q4 to Q1, with concerns about macroeconomic indicators and potential recession risks [19][84] - The Southeast region outperformed the chain, while the Midwest region trailed due to unfavorable weather [96] Company Strategy and Development Direction - The company is focused on its "Burlington Two Point O" strategy, emphasizing merchandising capabilities and store experience improvements [23][107] - Plans to open 100 net new stores in 2025, with a significant portion expected to open in the latter half of the year [34][116] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the impact of tariffs and the state of the consumer, highlighting the need for flexibility in operations [13][20] - The company is prepared to navigate potential challenges and believes it can emerge stronger from the current environment [17][37] Other Important Information - The company has a new $500 million share repurchase authorization approved by the Board of Directors [30] - Total liquidity at the end of the quarter was approximately $1.1 billion, consisting of cash and availability on the ABL [30] Q&A Session Summary Question: Impact of tariffs on off-price retail - Management indicated that disruption from tariffs could create both risks and opportunities for off-price retailers, depending on the situation [40][46] Question: Monthly comp sales trend in Q1 - Comp sales were down about 2% in February, improved in March, and were flat in April, with May showing similar trends [58][60] Question: Comp performance by demographic - Lower income trade areas outperformed the rest of the chain, while Hispanic consumer trends remained stable [68][72] Question: Freight costs and guidance - Guidance is contingent on holding ocean freight costs to contracted rates, with potential risks from spot market exposure [90][93] Question: Store openings and layout - The company expects 25% of new stores to open in the first half of 2025, with the majority in the third quarter, including newly acquired Joann's locations [116]

Financial Data and Key Metrics Changes - The company reported record revenues and net income for Q1 2025, with a revenue target of $44 million and net income of $2.5 million for the full year [4][8] - The backlog decreased to $22 million from a record $27 million in December, which still covers approximately 50% of the annual revenue target [15][24] Business Line Data and Key Metrics Changes - The company is expanding its offerings in the defense sector, including a new cabling line that enhances its value proposition [5] - The robotic division is set to install its first European production line, marking a significant step in international expansion [6] Market Data and Key Metrics Changes - The Israeli defense budget increased by 73% year-over-year, while Europe's defense budget rose by 16%, creating a favorable demand environment for the company [7] - The company achieved a compounded annual growth rate of 49% in net income from 2021 to 2025 [7] Company Strategy and Development Direction - The growth strategy is based on deepening client relationships and international expansion, particularly through partnerships with Israeli defense global subcontractors [5][6] - The company is exploring acquisition opportunities that align with its business, particularly in the civil and defense markets [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in exceeding the full-year targets due to a strong backlog and favorable market conditions [4][25] - The company maintains a conservative approach while focusing on organic growth opportunities, especially in the Israeli and Indian markets [11] Other Important Information - The company has a strong financial foundation with $4 million in cash, zero bank debt, and $23 million in equity, providing flexibility for strategic growth [7][8] - The company trades at a price-to-earnings ratio of 10 and a price-to-book value ratio of 1, indicating attractive valuation compared to broader market multiples [8] Q&A Session Summary Question: Can you talk about margins moving forward as the company continues to grow and expand? - Management indicated that gross margins are expected to remain stable as the company expands its offerings, allowing for higher pricing and margins [10] Question: Do you see continued growth coming from the defense sector? - Management confirmed that the defense market is robust, with a focus on organic growth opportunities, while also exploring potential acquisitions [11] Question: Can you address the backlog? - The backlog dropped to $22 million, which is still considered high and covers a significant portion of annual revenues, reflecting confidence in future performance [15][24] Question: Was there a specific defense program that drove the business this quarter? - Management noted that components were embedded in one of Israel's leading munitions, indicating a broad-based demand rather than reliance on a single program [17] Question: Any plans for the $4 million in cash? - The cash will be used for working capital and potential future acquisitions in the defense market [20] Question: Can you provide comments about the second quarter? - Management stated that they usually provide an annual outlook and will have more information for the second quarter results in August [27]

Financial Data and Key Metrics Changes - Total sales grew by 6% compared to 11% growth last year, while comp sales were flat after 2% growth last year, both metrics at the midpoint of guidance [7][10] - EBIT margin increased by 30 basis points, and adjusted EPS was up 18% over last year despite flat comp sales [8][28] - Gross margin rate for Q1 was 43.8%, an increase of 30 basis points versus last year, driven by a 20 basis point increase in merchandise margin and a 10 basis point decrease in freight expense [26] Business Line Data and Key Metrics Changes - Comp store sales were flat, with a notable deceleration from Q4 to Q1, affecting all demographic trade areas [17][68] - The beauty business was the best performing category in Q1, while overall performance across categories was fairly broad based [97] Market Data and Key Metrics Changes - Comparable store inventories were down 8% versus the end of Q1 2024, with reserve inventory up 31% compared to last year, reflecting strategic acquisitions to mitigate tariff impacts [28][76] - The Southeast Region outperformed the chain, while the Midwest Region trailed due to unfavorable weather [95] Company Strategy and Development Direction - The company is focused on its "Burlington Two Point O" strategy, emphasizing merchandising capabilities and store experience improvements [21][105] - Plans to open 100 net new stores in 2025, with a significant portion expected to open in the latter half of the year [23][115] - The company is actively managing tariff impacts by seeking margin and expense savings opportunities [9][54] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns about external uncertainties, particularly regarding tariffs and the state of the consumer, which could impact sales trends [10][36] - The company has a playbook to manage through economic slowdowns and inflation, focusing on providing value to customers [19][84] - Management remains optimistic about long-term growth potential despite short-term challenges [20][88] Other Important Information - The company ended Q1 with approximately $1.1 billion in total liquidity, including $371 million in cash [29] - A new two-year $500 million share repurchase authorization was approved by the Board of Directors [30] Q&A Session Summary Question: Impact of tariffs on off-price retail - Management indicated that disruption from tariffs could create both risks and opportunities for off-price retailers, with recent tariff reductions potentially leading to attractive buying opportunities [40][46] Question: Monthly comp sales trend in Q1 - Comp sales were down about 2% in February, improved in March and April, with May month-to-date trends similar to the March-April combined period [58][61] Question: Comp performance by demographic - Lower income trade areas outperformed the chain, and Hispanic consumer trends showed relative strength, although border stores underperformed [70][72] Question: Freight costs and guidance - Guidance is contingent on holding ocean freight costs to contracted rates, with secured truck and intermodal capacity at favorable rates [89][91] Question: Marketing programs update - The marketing strategy has evolved to focus on value, with an integrated approach to enhance customer experience and store layout [102][105]

Financial Data and Key Metrics Changes - The company reported net sales of $400.4 million for Q4 2025, a decline of 11.7% compared to the prior year [4][14] - Adjusted EBITDA for the quarter was $47.1 million, representing 11.8% of net sales, down from 12.1% in the same period last year [7][17] - Adjusted net income was $24 million or $1.61 per diluted share, compared to $28.2 million or $1.78 per diluted share last year [17] - The gross profit margin decreased by 160 basis points to 17% of net sales from 18.6% in the prior year [15] - For the full fiscal year, net sales were $1.7 billion, a decrease of 7.5% year-over-year [19] Business Line Data and Key Metrics Changes - Remodel net sales decreased by 10.4% in Q4, with home centers and dealer distributors both declining by approximately 10-11% [14] - New construction net sales decreased by 13.4% for the quarter compared to last year [14] - The home center business saw a low single-digit negative comp, while the pro business reported a positive comp for the quarter [5] Market Data and Key Metrics Changes - Existing home sales fell by 0.5% month-over-month to a seasonally adjusted rate of 4 million in April 2025, with a year-over-year decline of 2% [4] - The NAHB housing market index dropped to 34 in May, marking the lowest level since November 2023 [6] - Single-family housing starts experienced negative comps from January to April [6] Company Strategy and Development Direction - The company focuses on three main pillars: growth, digital transformation, and platform design [10] - Key accomplishments include product innovation, capacity investments, and channel expansion despite a challenging macroeconomic environment [10] - The company is enhancing its manufacturing capabilities and transitioning independent distributor customers to a new brand [11][12] Management's Comments on Operating Environment and Future Outlook - Management expects demand trends to remain challenging, with net sales outlook ranging from low single-digit declines to low single-digit increases for fiscal year 2026 [9][21] - The company anticipates that as mortgage rates decline and consumer confidence increases, there will be a potential for higher ticket home projects [9] - Management highlighted the importance of removing uncertainty related to tariffs for future growth [50] Other Important Information - The company repurchased 1.17 million shares for $96.7 million during fiscal year 2025, representing about 7.5% of outstanding shares [20] - Free cash flow totaled $65.7 million for the fiscal year, down from $138.5 million in the prior year [19] Q&A Session Summary Question: Impact of tariffs on full year guidance - Management indicated that the outlook was significantly influenced by tariffs, estimating a cost impact of approximately $20 million [27][28] Question: Improvement in gross margins - The improvement in gross margins was attributed to operational adjustments made in Q4 following a challenging Q3 [30][31] Question: Revenue guidance assumptions for end markets - The revenue guidance assumes a consistent recovery across both remodel and new construction markets, with expectations for better performance in the second half of fiscal year 2026 [37][38] Question: Cost considerations beyond tariffs - Management acknowledged potential commodity inflation and labor costs as additional factors impacting guidance [44] Question: Savings from facility closure - The closure of a components facility is expected to yield annual savings of $5-6 million in EBITDA [46]

Nordson (NDSN) Q2 2025 Earnings Call May 29, 2025 08:30 AM ET Speaker0 Thank you for standing by, and welcome to the Nordson Corporation Second Quarter Fiscal Year twenty twenty five Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer Thank you. I'd now like to turn the call over to Laura Mahoney. You may begin. Speaker1 Good morning. This is Laura Mahoney, Vice President of Investor Relations and Corporate Com ...