Frederick Wightman • Wolfe Research, LLC

Answer

CFO and COO Gina Goetter explained that the primary margin offset in outer years is the amortization of capitalized video game development costs, which will mainly impact the Wizards segment's margin percentage. She confirmed the 2025 guidance incorporates the announced tariffs on Chinese imports, which is the main exposure for Hasbro, with minimal impact from Mexico or Canada.

Ask Fintool Equity Research AI

Answer

CEO Jason Lippert stated that the plan does not currently reflect tariffs but estimated a potential 50 basis point impact from China tariffs, which he believes can be mostly mitigated through pricing and supplier negotiations. He noted that 99% of chassis steel is domestic. CFO Lillian Etzkorn confirmed that established pass-through mechanisms exist for steel and aluminum. Regarding mix, Lippert anticipates the elevated single-axle trailer mix, which rose in 2024, will begin to normalize sometime in Q2 2025 as dealer inventories of that product have been addressed.

Ask Fintool Equity Research AI

Answer

CEO Jason Lippert stated that the RV mix should normalize, with low-content single-axle trailers expected to decrease from their recent peak. He projected 2025 wholesale shipments to be in the 335,000 to 355,000 unit range. Regarding China, he noted that LCI has been actively de-risking its supply chain since 2020. VP of Finance and Treasurer Lillian Etzkorn added that commodity price pass-throughs are not expected to be a material factor in the upcoming year.

Ask Fintool Equity Research AI

Answer

Chief Financial Officer Jonathan Root explained that the 'quality of inventory' is significantly better entering 2025, with a healthier mix of desirable, redesigned Touring models. Consequently, dealer support will be more 'surgical' and targeted at specific models rather than the broad, family-wide support seen in 2024. Chief Executive Officer Jochen Zeitz added that strategic pricing for 2025 models also reduces the need for such support.

Ask Fintool Equity Research AI

Answer

CFO Jonathan Root detailed the path to the 15% OI margin target, highlighting benefits from aligning production with retail (leverage), achieving a real $400M in cost productivity, surgical pricing actions, and disciplined OpEx. CEO Jochen Zeitz added that dealer support includes significant co-marketing funds, achievable retail targets, and enhanced digital lead generation, not just inventory management.

Ask Fintool Equity Research AI

Answer

CEO Ynon Kreiz affirmed a positive long-term industry view, noting the 2024 market stabilized better than expected and that a normalized movie slate will provide buoyancy in 2025. He described the 'Mattel Brick Shop' as a new growth driver that leverages the company's design and supply chain strengths. Notably, it will be launched under the trusted Mattel parent brand rather than the Mega brand.

Ask Fintool Equity Research AI

Answer

CFO Anthony DiSilvestro acknowledged the question and clarified that while the tax rate favorability does move the EPS up within the guided range, the effect was not significant enough to warrant a change to the overall $1.35 to $1.45 range.

Ask Fintool Equity Research AI

Answer

CEO Philip Singleton and President/COO Anthony Aisquith described October and November as strong months, with December being more typical. Regarding margins, Singleton explained that exiting brands are sold at or below cost, creating a drag on gross profit. He noted, however, that current model year margins are holding up well. CFO Jack Ezzell added that this margin pressure will likely persist into Q2 but should improve as they clear through the discontinued inventory.

Ask Fintool Equity Research AI

Answer

CEO Austin Singleton expressed cautious optimism for a slight new boat margin improvement in 2025 as dated inventory clears, likely in the second half of the fiscal year. Executive Jack Ezzell added that Q4 margins were suppressed by restructuring charges and should normalize higher. Ezzell quantified the cost savings, stating a March action of $10 million is partially baked in, with another $5 million action from September expected to benefit fiscal 2025.

Ask Fintool Equity Research AI

Answer

CEO Mike Speetzen explained that the final EPS guide was impacted by softer late Q4 retail, higher finished goods inventory requiring lower 2025 production, and a significant headwind from resetting employee incentive compensation. CFO Bob Mack added that the strong free cash flow guidance is driven by lower CapEx after a heavy investment cycle and a planned $150-$200 million reduction in finished goods inventory.

Ask Fintool Equity Research AI

Answer

CEO Mike Speetzen suggested that 'flat is probably a good starting point' for 2025 EPS, reflecting a cautious outlook on retail. CFO Robert Mack listed tailwinds like operational efficiencies and lower interest rates, and headwinds like a challenged industry, bonus normalization, and commodity pressure. Regarding Marine, Speetzen and Mack affirmed their commitment, highlighting that the business has strong EBITDA margins, generates significant cash flow, and holds market-leading positions, making it a core part of the portfolio.

Ask Fintool Equity Research AI

Answer

Executive Michael McLamb cited encouraging retail activity post-hurricanes in November, generally positive boat show traffic, and improved clarity in the geopolitical environment as reasons for optimism. Executive Bill McGill added that January was showing improvement after a tough December. On the Florida recovery, McGill noted that while disrupted stores are back to normal, the timeline is less certain for communities with significant storm damage, as customers need to get their lives and properties back in order.

Ask Fintool Equity Research AI

Answer

CEO Bill McGill and CFO Michael McLamb clarified that they expect the heavy promotional environment to continue, not necessarily accelerate, which could pressure margins in the near term. McLamb explained that cost-cutting initiatives are working to offset inflation, with the goal of moving SG&A as a percentage of sales from ~27% partway towards the fiscal 2023 level of ~26%, acknowledging it is a challenge.

Ask Fintool Equity Research AI

Answer

CEO Michael Happe expressed confidence in the back half of the year due to emerging "green shoots." CFO Bryan Hughes quantified the Motorhome margin pressures, noting deleverage (~4.5 pts) and discounting (~3 pts) were the largest factors, while the Grand Design start-up was a smaller drag of less than 1 point, with expectations for it to be accretive by the end of fiscal 2025.

Ask Fintool Equity Research AI

Answer

President and CEO Michael Happe clarified the comment was a general projection that conditions would be better in 12-15 months. He reiterated that the company is planning for potential favorability beginning in the spring of calendar 2025 (fiscal Q3), driven by factors like easing inventory and a better post-election economic environment, but declined to provide a precise timeline for each subsegment.

Ask Fintool Equity Research AI

Answer

CFO Bruce Beckman described the shipment delays as having a minimal, modest impact, shifting some volume from Q2 into the second half of the year. CEO Steven Menneto explained that after being a drag, the former Tommy's markets are expected to provide a tailwind for a few months as liquidated inventory is sold.

Ask Fintool Equity Research AI

Answer

An executive, likely CFO Bruce Beckman, reported that inventories, which were 4-5 weeks high, are now in line with historical trends, but dealers are expected to lower them further in FY25. The slight Q4 EBITDA miss was attributed to higher-than-expected promotional spending. CEO Steve Menneto commented that while rate cuts would be a long-term positive, the exact inflection point for consumer demand is difficult to predict.

Ask Fintool Equity Research AI

Answer

CEO Josh Weinstein attributed the acceleration to a combination of factors rather than a single initiative, including better advertising, strong trade partner performance, and improved website usability. He specifically called out the Alaska season as being "off the charts" and a significant contributor, as it tends to attract a higher percentage of new-to-cruise guests. He summarized the strategy as a continued focus on "doing the basics better."

Ask Fintool Equity Research AI

Answer

CFO Sebastien Martel explained that the year-round product revenue guidance was reduced by about $165 million at the midpoint. He specified that approximately 80% of this adjustment comes from the side-by-side category, reflecting market softness and a cautious shipment plan. The remainder is split between ATVs and 3-wheel vehicles. He reiterated a bullish long-term view on ORV.

Ask Fintool Equity Research AI

Answer

CFO Sebastien Martel stated that on a percentage of revenue basis, the current forecast for powersports promotions is in line with pre-COVID levels, though the absolute cost is higher due to elevated interest rates impacting retail financing programs. He identified potential interest rate cuts as a key catalyst that would provide comfort to dealers by lowering their significant floor plan financing costs, which are currently about 500 basis points higher than pre-COVID.

Ask Fintool Equity Research AI