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President, CEO & Director Andrew Clyde stated there were no significant performance differences between Walmart and non-Walmart locations and that the competitive dynamic is generally stable, aside from occasional new entrants in specific growth markets. Regarding OpEx, both Andrew Clyde and EVP & COO Mindy West stressed that cost control is always a critical priority and part of the company's DNA, essential for maintaining their zero breakeven target and everyday low-price model, regardless of the operating environment.

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President, CEO & Director, Andrew Clyde, stated there were no significant differences in performance based on location type but noted that markets with many low-price competitors can be more challenging. Regarding OpEx, he framed it as a core part of maintaining their zero breakeven target, allowing the company to retain more of the structurally resilient fuel margin. EVP & COO, Mindy West, emphasized that while mathematically more important in certain cycles, a ruthless focus on cost must always be part of the company's culture to support its everyday low price model.

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CEO Andrew Clyde noted a record number of job applicants is easing wage pressure and overtime, which also benefits shrink. He also highlighted lower payment fees as a cost benefit. COO Mindy West added that store productivity initiatives are underway. Clyde confirmed new stores are outperforming the fleet, with larger formats enabling a broader, high-return merchandise offer.

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Linda Findley, President & CEO, stated that product changes are driven by extensive consumer research and leveraging the company's vast sleep data, with new products expected to roll out in 2026. She emphasized that the product is highly differentiated. On distribution, Findley clarified that the company is holistically exploring all channels, including wholesale and other direct-to-consumer models, with a primary focus on preserving the strength and margin profile of its vertical model.

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The company aims to "rethink" marketing with a focus on digital efficiency rather than just cutting spend. Promotions are a well-understood lever, and tariff impacts will be managed through various means before resorting to strategic price increases. The store portfolio is currently managed organically but is under review as part of the broader strategic evaluation.

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CFO Francis Lee attributed the robust gross margin performance to a program of material cost reductions, supplier negotiations, and operational efficiencies, which he expects to continue. CEO Shelly Ibach added that the higher-margin Climate series is outperforming expectations, creating a favorable product mix that should benefit results through the first three quarters of 2025.

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President & CEO Melinda Whittington emphasized La-Z-Boy's strong competitive position due to its US-centric manufacturing, which allows for responsible pricing. She noted that only nominal price increases have been passed and no major changes are anticipated. SVP and CFO Taylor Luebke explained that the full-year margin outlook is highly dependent on the uncertain health of the industry; while the company aims to outperform the market and expand margins if conditions are stable, the current volatile environment makes forecasting difficult.

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President and CEO Melinda Whittington stated that the company is well-positioned against potential tariffs due to its large North American manufacturing footprint and noted that historically, such costs have been passed through. She also highlighted a significant opportunity with wholesale partners, who are drawn to La-Z-Boy's financial stability. SVP and CFO Bob Lucian explained that the long-term target for the cash balance is now in the low-$200 million range, reflecting the larger retail mix of the business.

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EVP and CFO Jeff Howie explained that the 60 basis point gross margin decline was expected, with lower merchandise margins from higher input costs (ocean freight, tariffs) being largely offset by 120 basis points in supply chain savings and occupancy leverage. He emphasized that the company's promotional stance has not changed, and the penetration of full-price selling actually increased during the quarter.

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CFO Jeff Howie explained that the 60 basis point gross margin decline was in line with expectations, driven by higher input costs from ocean freight and tariff mitigation. This was largely offset by 120 basis points in supply chain savings and occupancy leverage. He stressed that the company's promotional stance has not changed, and the penetration of full-price selling actually increased during the quarter.

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EVP and CFO Jeff Howie explained that the 60 basis point gross margin decline was anticipated and resulted from higher input costs, such as ocean freight and tariff mitigation, which were largely offset by supply chain savings and occupancy leverage. He stressed that the company's promotional stance has not changed, noting that the penetration of full-price selling actually increased during the quarter.

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EVP and CFO Jeff Howie clarified that the gross margin decline was expected and driven by higher input costs, which were largely offset by significant supply chain savings. He stressed that the promotional stance has not changed, with full-price selling penetration actually increasing slightly in the quarter. President and CEO Laura Alber indicated that Jeff Howie's answer was comprehensive.

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Walmart U.S. CEO John Furner reported that Walmart Connect grew 31% year-over-year, excluding VIZIO. He stated that the VIZIO integration is in its early stages but expressed excitement about its potential. The strength in the core advertising business was driven by growth from both marketplace sellers and first- and third-party suppliers.

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J.D. Walker, President of Garden Consumer Products, confirmed a delayed but promising start to the garden season, noting strong consumer engagement when weather is favorable. He mentioned that the live goods business is set for a much better year after SKU rationalization. CEO Niko Lahanas praised the live goods team and highlighted the record performance of the Wild Bird business. On tariffs, Lahanas reiterated that the company is looking at all options, including supply chain optimization and continuing its 'Cost and Simplicity' program to enhance efficiency.

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CEO Nicholas Lahanas and Pet President John Hanson expressed support for addressing the de minimis loophole, noting it should level the playing field for durables. J.D. Walker, President of Garden Consumer Products, stated the live goods business has improved its model by rightsizing SG&A and rationalizing products. Lahanas described the new Georgia facility as a state-of-the-art hub with potential to handle both Pet and Garden products.

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J.D. Walker, President of Garden Consumer Products, expressed cautious optimism for the spring, noting that retailers are planning to load stores early and that encouraging consumption trends are emerging in live goods. CEO Nicholas Lahanas addressed tariffs, stating the company's China COGS exposure is now below 5%. He also noted that a new administration could create a more favorable M&A environment, for which Central is well-positioned due to its strong liquidity.

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CEO Rob DeMartini explained the $70 million figure is based on projecting current sales productivity across the newly added store slots. He expressed concern for the Q2 consumer psyche due to potential tariff impacts but noted some volume improvement after a weak April, though the consumer remains cautious.

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M. Kathwari, Chairman, President and CEO, explained that Ethan Allen's tariff impact is minimal due to 75% of its furniture being made in North America, with less than 5% cost of goods exposure to China. He noted that while they haven't raised prices yet, they are monitoring the situation. Regarding recent trends, Mr. Kathwari stated that April saw continued softness but improved late in the month, and May has shown a more positive trend, although the company remains cautious.

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Chairman, President and CEO M. Kathwari attributed the strong written orders to a combination of strong product programs, an effective retail network, and a special savings promotion. He stated that while January started slow due to weather, activity has since become more robust. Mr. Kathwari confirmed they will use a mix of regular and special promotions going forward and highlighted that recent success was also fueled by new product introductions and a 15% increase in marketing spend to attract new customers.

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CFO Fahmi Karam and CEO Mitchell E. Fadel explained that Upbound has not yet seen any tariff-related price increases and has multiple levers to mitigate potential impacts, such as adjusting weekly payments or term lengths. They noted that over 70% of key products are assembled in the U.S., limiting direct exposure. Regarding Brigit, Mr. Karam stated that the integration is on track, with initial marketing collaborations underway and data-sharing initiatives planned for later in the year to enhance underwriting across all brands.

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CEO Mitchell E. Fadel expressed high confidence in sustained low double-digit growth, citing numerous major retail wins that outweigh any single account loss. He highlighted the new AI-powered 'leasability engine' for the marketplace, which has enabled the recent addition of major retailers like Amazon, Walmart, and Target, suggesting significant future growth potential beyond the 30% growth seen in Q3.

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CEO Steven Michaels addressed the dual impact of inflation and tariffs, noting that while modest price increases can be a positive, price shocks risk demand destruction. He stated the current uncertainty is having a greater behavioral impact on consumers than actual price changes. Regarding Big Lots, Michaels confirmed they have a strategic marketing plan to direct former Big Lots customers to other retail partners, and they are seeing success in reactivating these customers across different verticals.

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CEO Steven Michaels confirmed that the Big Lots situation is a one-time event and expressed confidence in the stability of other large retail partners, many of whom are secured under multi-year contracts. He described the new business pipeline as strong and conducive to adding new retailers. CFO Brian Garner noted that while they don't guide to a specific free cash flow number, 2025 should not have unique dynamics that would alter the historical relationship between EBITDA and cash flow generation.

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CEO Steve Michaels explained that while the American Signature partnership will primarily benefit 2025, the Big Lots situation creates an estimated 100-150 basis point headwind for Q4 GMV. He attributed overall growth to successful marketing, strong retail partnerships, and tighter credit from prime lenders. CFO Brian Garner added that Q4 write-offs are expected to decrease sequentially from Q3's 7.7%, in line with typical seasonality. Michaels also noted that approval rates were tightened by about 100-150 basis points year-over-year to manage portfolio health.

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Gary Friedman, executive, acknowledged the risk of backlash but believes the tariff situation is a global negotiation that will likely resolve. Regarding clearance, he explained it's a normal function of a down housing market and the company's own significant product line transformation, which necessitates marking down older or underperforming collections.

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CEO Gary Friedman stated that the true inflection and conversation about the European business will begin after the flagship galleries in Paris, London, and Milan open in 2025 and 2026. He described the initial openings as strategic moves for 'conversation, not commerce' to establish the brand's image. He expects the opening of major market flagships will significantly lift brand awareness and drive business to all European locations.

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COO Ken Bull stated that the store remodel program, which was paused last summer, remains on hold. He noted that prior to the pause, remodels consistently delivered a comp lift in the hundreds of basis points. For the current year, the company will only perform a few selective remodels, with the primary focus being on opening 150 new stores.

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Interim President and CEO Kenneth Bull stated that customer surveys show high satisfaction with checkout speed, so they do not see a negative sales impact from the process. Executive Chairman Thomas Vellios addressed the pricing question by expressing strong confidence in the merchandising team's ability to deliver extreme value within the current price structure once focus and discipline are restored, effectively dismissing the 'Ten Below' concept.

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Executive Eric van der Valk explained that while about 50% of business comes from China, Ollie's flexible buying model allows it to be a price follower and avoid products if terms are unfavorable, viewing tariffs as a long-term opportunity. He also expressed high confidence in exceeding the 10% unit growth target in both 2025 and 2026 due to a strong pipeline of bankruptcy-acquired and organic sites.

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CEO-elect Eric van der Valk stated that Ollie's has proactively invested in infrastructure, including project management, store setup teams, and its DC network, which can now support up to 750 stores. CFO Robert Helm indicated the 2025 outlook will align with the long-term algorithm targeting a 14% EBITDA margin, with potential for outsized EPS growth due to front-loaded store openings.

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CEO John Swygert stated that acquiring and holding stores with 'dead rent' for long periods is not a feasible strategy. Executive Vice President and COO Eric van der Valk added that while they are proficient in navigating these opportunities, any acceleration in store openings would be done without risking the core business. Regarding the holidays, management noted they are well-positioned and excited about their seasonal and toy assortments but that it was too early to speculate on consumer behavior.

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CEO Eric van der Valk stated that Ollie's is working collaboratively with vendors and is fiercely committed to maintaining its value proposition and price gaps, acting as a fast follower on market pricing. CFO Robert Helm added that the real estate pipeline for 2026 is very strong, with the potential for another year of above-algorithm store growth.

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Recent trends have been volatile, with a strong end to 2024 followed by a muted President's Day period. Same-store sales growth for Mattress Firm in 2025 will be largely dependent on the overall market. A leadership change was recently made, and management is actively working to ensure the right team is in place, with more information expected within a quarter.

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The executive responded that the luxury segment is holding up well for them. Stearns & Foster was their best-performing brand, followed by Tempur, with both showing growth in Q3. This performance contrasts with the broader U.S. industry, which was estimated to be down 9-10%, indicating their high-end products are performing very well.

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