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EVP, CFO & Treasurer Kenneth Bowling clarified that the Stokesdale facility has an estimated market value of $40-$45 million against a net book value of $12.1 million, indicating substantial unrealized value. He also explained that the $88.1 million in federal NOL carryforwards represent an 'untapped value' that will provide a 'tremendous benefit' by offsetting future U.S. profits once the company returns to profitability.

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CEO Robert G. Culp IV explained that Culp Inc. has largely absorbed current tariff impacts through strategic options, adjusted pricing, and diversified manufacturing, enabling margin growth. He noted that while price increases are challenging, they are necessary for profitability, and customers understand the competitive landscape. Culp IV detailed that the $10-$11 million in fiscal 2025 restructuring benefits are fully implemented for fiscal 2026, with additional initiatives and price increases expected to impact the second half of fiscal 2026. He characterized the current market downturn as protracted compared to past cycles but affirmed Culp's proactive approach to profitability regardless of market recovery, emphasizing that the company has maintained capacity globally to leverage future demand without significant new spending. CFO Kenneth Bowling clarified that the Stokesdale, NC facility has a net book value of approximately $12 million against an estimated market value of $40-$45 million, and the $88.1 million in federal NOLs represent a significant future tax benefit once the company achieves U.S. profitability.

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CEO Robert G. Culp IV (Iv Culp) explained that Culp Inc. has largely absorbed current tariffs, adjusting pricing and leveraging multiple manufacturing locations to maintain profitability despite past disruptions from high China tariffs. He noted that while pricing is challenging in competitive markets, they are aggressively implementing necessary increases to cover costs and right-size margins. Regarding the $18 million in initiatives, Mr. Culp stated that the $10-$11 million from fiscal 2025 restructuring (Canadian operations) is fully implemented for fiscal 2026, with the remaining initiatives, including price increases, expected to impact the second half of fiscal 2026, with some benefits starting in Q2. He characterized the current market downturn as protracted compared to historical cycles but emphasized Culp's proactive adjustments to achieve profitability independently of a market recovery. Mr. Culp also confirmed that Culp has maintained significant capacity globally, allowing for substantial leverage and margin expansion without major new investments when demand returns. CFO Kenneth Bowling clarified that the Stokesdale facility's net book value is approximately $12.1 million, with an estimated market value of $40-$45 million, and the $88.1 million in federal NOLs represent a significant untapped future tax benefit once the company achieves U.S. profitability.

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CFO Andy Fulmer clarified that retailer inventory was not 'excess' but rather accelerated orders in key categories. CEO Brian Murphy explained a multi-pronged approach to tariffs, including supplier concessions, product redesigns, strategic pricing adjustments, and maintaining new product velocity to feather in higher-margin products, expecting different levers at different times. He emphasized that innovation is critical, with strategic pauses in launches to avoid market noise and maximize impact, referencing FY2023 as an example where careful timing led to significant growth in subsequent years.

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Steve Fife, President and CEO of LifeVantage, acknowledged that Q4 results were softer than anticipated, primarily due to seasonality impacts on the MindBody GLP-1 System in the U.S., while international business remained strong. Regarding the fiscal 2026 outlook, Steve Fife stated that the guidance includes a modest amount of revenue from the LoveBiome acquisition, which is expected to close in Q2 2026, alongside some organic growth. He declined to disclose specific revenue or consultant numbers for LoveBiome at this time but noted it's a three-year-old company with its largest markets in the U.S. (East Coast focus) and Taiwan, with a presence in Europe. Steve Fife highlighted LoveBiome's singular focus on the gut microbiome, especially its P84 product, which regulates, repairs, and restores the gut microbiome. He emphasized the strategic alignment with LifeVantage's activation philosophy and the synergistic potential with the MindBody GLP-1 product, which benefits from a healthier gut.

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Executive Steven Fife attributed the lowered revenue guidance to lingering effects from the Q2 stock-out and uncertainty in the new international launch. Executive Carl Aure added that the drop in Americas active accounts was primarily customer attrition from the same stock-out. Fife also elaborated on marketing learnings for the MindBody product, explaining a strategic shift to emphasize long-term, sustainable health benefits over a simple weight-loss narrative, which has improved consultant success and customer retention.

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Executive Steven Fife stated that MindBody's subscription rate is tracking higher than the company average, with over 50% of new customers joining on subscription. CFO Carl Aure noted that while standalone sales were high initially, the trend is moving toward a higher proportion of sales in stacks. Regarding a special dividend, Aure confirmed it is an option but is being balanced against the need for internal investments in brand awareness and ensuring sufficient inventory for international launches.

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Chief Financial Officer Carl Aure stated that while they expect to hit the high end of their guidance, it was too early—only two weeks post-launch—to formally raise it, given the inventory situation. Executive Steven Fife addressed the stock-out, noting that consultant excitement remains high as thousands of new users can now create testimonials, driving future demand. Fife detailed the product's pricing, with a 30-day supply costing $179 on subscription for customers. He also outlined the international launch plan, with Canada currently having access for personal consumption and a broader rollout planned for most markets in March/April 2025, subject to regulatory approval.

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CFO Carl Aure indicated that fiscal 2025 would see moderate improvement each quarter, with momentum building in the second half after a Q2 product launch. Executive Steven Fife attributed the growth in active accounts to the company's new Evolve compensation plan, which has improved both retention and enrollment. Fife noted the plan's flexibility attracts both traditional direct sellers and affiliate-style marketers. Regarding the new weight management product, Fife explained it is a natural, two-part system designed to activate the body's own GLP-1 production, differentiating it as a healthy, long-term alternative to drug-based options.

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Chairman, President & CEO Ron Lombardi explained that the lack of available third-party, high-volume sterile eye care capacity, combined with Clear Eyes' unique bottle, makes sourcing difficult, necessitating the in-house move. He stated that no major step-up in capital spending is expected, with the long-term outlook only moving from 1-2% to 1-3% of sales. CFO & COO Christine Sacco confirmed that the e-commerce channel was an area with a disconnect between consumption and shipments, and that the inventory build from Q4 had been worked off, with the current issue being new order volatility in July.

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Chairman, President & CEO Ron Lombardi stated that the Opella transaction does not fundamentally change the competitive landscape for Prestige. He noted that, similar to previous spinouts from large pharmaceutical companies, it could create future M&A opportunities as brands may come to market over time, viewing it as "more of the same."

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CEO Stephan Gratziani stated that distributors will have flexible options to offer the Protocol app as a standalone tool or bundled with products, and confirmed that subscriptions are a key part of the future strategy. He also noted that global expansion for Protocol is planned for 2026. CFO John DeSimone addressed the debt, explaining they will actively consider refinancing high-cost debt after a no-call protection period ends in April, citing the company's improved financial position.

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CEO Stephan Gratziani clarified that distributors will have options, allowing them to offer the Protocol app as a standalone tool or bundled with the new supplement, supporting both existing and new business models. He acknowledged past subscription models were not ideal but sees significant future potential. Gratziani confirmed plans for a global Protocol rollout beginning in 2026. CFO John DeSimone addressed the debt, stating the company will actively consider refinancing its high-cost debt when the no-call protection expires in April, citing the company's much-improved financial position.

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CEO Stephan Gratziani clarified that customers will have flexible options, allowing them to use the app with existing products or purchase the new supplement, supporting both current and new business models. He noted a global rollout for Protocol is planned for 2026. CFO John DeSimone stated that the company will actively consider refinancing its high-cost debt after a no-call protection period ends in April, citing the company's much-improved financial position.

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CEO Stephan Gratziani clarified that distributors will have flexible options, allowing them to offer the app as a standalone support tool or bundled with the new product to fit existing and new business models. He emphasized that while the subscription model is a key future element, it will take time to build. He also confirmed plans for global expansion of Protocol beginning in 2026. CFO John DeSimone addressed the debt, stating that the company will actively consider refinancing its high-cost debt after the two-year no-call protection on its bond expires in April 2026, citing the company's much-improved financial position.

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CEO Stephan Gratziani clarified that distributors will have flexible options to offer the Protocol app as a standalone tool or bundled with products, supporting both current business models and creating new ones. He confirmed a global rollout is planned for 2026. CFO John DeSimone added that the company will actively consider refinancing its high-cost debt once the no-call protection period ends in April, citing the company's significantly improved financial position.

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CFO John DeSimone clarified that Pro2col investment will not permanently elevate CapEx, as it involves reprioritizing existing spend and leveraging the significant technology infrastructure already built. President and incoming CEO Stephan Gratziani reported strong excitement for the Flex45 challenge, with over 200,000 distributors preregistering and tens of thousands actively participating, viewing it as a simple, effective program for engagement and onboarding.

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Incoming CEO Stephan Gratziani attributed the growth to a series of initiatives launched in early 2024, particularly the 'Herbalife Premier League,' which for the first time created a focused program for recruiting and activating new distributors. He also cited more advanced, DMO-centric training and the efforts of the distributors themselves. While the average sales leader number has stabilized, he noted the timing of significant growth will vary by region but expressed confidence the company will 'hit our stride' in the second half of 2025.

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Chairman and CEO Jim McCann stated that, in hindsight, he would have preferred to keep the approximately $50 million in revenue from the shuttered stores, reaffirming his belief in a multichannel strategy. He described the new Long Island store as a successful 'stage' for multiple brands and live 'Celebrations Experiences,' with strong early results. President Tom Hartnett confirmed plans to open a 'handful' of year-round stores and expand the seasonal store program over the next 18 months, aided by a new real estate executive.

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CEO Jim McCann and President Tom Hartnett described the potential impact of Colombian tariffs as 'painful' and 'damaging,' noting the U.S. floral industry's dependence on the country for 50-60% of its supply. McCann explained that the strong wholesale performance was counter-indicative, reflecting increased in-store retail traffic which drew from e-commerce. However, he expects both channels to perform well going forward as the company has cultivated new wholesale relationships, broadening its customer base.

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CFO Bill Shea explained the $3 million wholesale order shift from Q1 to Q2 was a simple timing issue dictated by clients. CEO Jim McCann noted the seasonal labor situation has stabilized. On costs, Shea mentioned benefits from lower fuel surcharges and logistics optimization are helping offset carrier rate hikes. Management collectively highlighted that this year's excellent pear crop reduces the need for third-party sourcing and extends the selling season, which is a net positive.

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CFO Bill Shea indicated that revenue trends should improve in Q2 but stopped short of forecasting positive growth. He explained Q4 margins were impacted by lower sales leverage but met expectations. CEO Jim McCann confirmed the guidance allows for increased marketing spend, with potential upside dependent on its yield. Regarding Personalization Mall, McCann and President Tom Hartnett noted it was impacted by its lower-income customer focus but is gaining traction by integrating the higher-end Things Remembered brand onto its efficient operational platform.

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Chairman and CEO James McCann stated that, in hindsight, he would have preferred to keep the approximately $50 million in revenue from the closed stores, calling the decision a mistake. He praised the new Long Island store as a 'beautiful stage' for multiple brands and a hub for customer experiences, noting that well-executed retail is 'free marketing.' President Tom Hartnett confirmed that future plans include opening a handful of year-round stores over the next 18 months while also 'doubling down' on the successful seasonal holiday store concept.

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Chief Field Operations Officer Nicholas Johnson characterized the GLP-1 emergence not as a controversy but as a market disruption requiring coach retraining, noting new coaches are adapting well. Chairman and CEO Dan Chard elaborated that the market now better understands GLP-1s as a tool, not a total solution, creating opportunities for coaches to address issues like muscle loss and weight regain. He stated that 50% of coaches have supported a GLP-1 user. Regarding cost, Chard explained most clients use the standard plan at around $400/month, with GLP-1 costs typically handled separately through a client's own physician and insurance.

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CFO Doug Hekking projected strong cash generation in 2025, with plans to retire the $23 million in debt from the Hiya deal by mid-year. He stated share repurchases would at least offset dilution from equity compensation. Hekking confirmed Hiya has low capital intensity and that overall CapEx would be around 1-1.5% of sales. CEO Jim Brown clarified that the changes are 'tweaks' to make the direct selling model more attractive upfront, reiterating a firm commitment to the existing channel.

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CFO Michael Schwindle explained the first-half inventory build was a temporary timing issue from overlapping assortments for Project Restoration, and he expects inventory to be a source of cash in the second half. He and CEO Jacqueline Ardrey affirmed that this is an investment year, and maintaining CapEx and marketing spend is crucial for long-term growth. Regarding the election, Ardrey stated the company is focused on 'controlling the controllables' and not speculating on political impacts.

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CFO Vojin Todorovic stated that the company continuously evaluates its capital allocation strategy, balancing business investments with shareholder returns. He noted that the current global expansion is asset-light through partners, but they continue to invest in corporate stores and are open to opportunities with a strong ROI. CEO Sharon John added that while the company maintains an open mind for synergistic acquisitions, its most significant historical purchase was the acquisition of its U.K. store operations.

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