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Executive Michel Brousset confirmed two key launches: the Hydro Grip Skin Tint and a new Jelly Skincare line, both shelved together. He stated that while there is potential to expand in Ulta Beauty, the company's strategy is to deliberately limit distribution to maintain high per-door productivity and ensure brand awareness keeps pace. He confirmed the brand is not in Ulta at Target. Executive Manuel Manfredi provided the 2024 CapEx figure of $2.9 million and noted operating cash flow details would be in the 20-F filing.

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Executive Michel Brousset pointed to community growth metrics like a 700,000 increase in Instagram followers as a proxy for awareness, rather than specific numbers. He emphasized a strategy of controlled, productive distribution in the U.S. while expanding internationally. For expansion, he cited liquid foundation and lipsticks as two major makeup categories where Milk currently has no presence, representing significant white space.

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Executive Michel Brousset stated that marketing investment increased substantially in H1 and will continue to grow in H2, funded by a 'virtuous circle' of operational efficiency and revenue growth. Regarding Obagi's international business, he clarified that they use a direct subsidiary model in Southeast Asia and distributors elsewhere, with strict inventory monitoring that mitigates any risk of channel overstock.

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CFO Shane Jones clarified the $2-3M tariff impact estimate includes currently proposed retaliatory tariffs but not hypothetical future ones on U.S. exports to Asia. CEO Terrence Moorehead and Jones identified Taiwan, Japan, and a significant rebound in Korea (up 21%) as the primary drivers of Asia's strength. Moorehead expressed confidence in sustainable, though not 21%, growth in Korea due to improved fundamentals. On digital, they stated it represents about 25% of North American revenue, while China's business is 100% digital live streaming.

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CEO Terrence Moorehead attributed North American headwinds to both strapped consumers and temporary friction from the phased rollout of a new digital platform, with back-end tools for distributors still being implemented. Regarding costs, Moorehead and CFO Shane Jones confirmed the company is on track to achieve its $10 million savings target by year-end, with more savings expected in 2025. Jones noted that FX and inflation have masked benefits but expects a gross margin inflection in Q4. Moorehead added that there are no significant raw material shortages at present.

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CEO Cynthia Williams explained that while global Q4 POS grew 4% (led by 17% growth in Europe), the Q1 guidance reflects softer U.S. consumer behavior, lower foot traffic at mass retail partners, and logistical disruptions at the U.S.-Mexico border impacting Pop! Yourself deliveries. She clarified that the guidance includes tariffs on Chinese-made components for Pop! Yourself, but the primary issue with Mexico is border delays, not new tariffs. Williams confirmed that mitigating actions like cost-sharing, production shifts, and potential pricing adjustments are factored into the outlook.

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Chief Financial Officer Yves Le Pendeven clarified that consumer sensitivity is less about price point and more about waiting for promotional events to make gift purchases. Chief Executive Officer Cynthia Williams added that Bitty Pop! sales remain strong without discounting and positioned Fanatics as a key partner, not a competitor. Regarding costs, Yves Le Pendeven stated past savings are now annualized and being reinvested in marketing, while Cynthia Williams noted that new hires are for backfilling roles and building capabilities for future growth.

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Executive Michel Atwood stated that the most significant destocking effects are past, with the gap between sell-in and sell-out moderating in Q4. He noted that while competition is increasing and pressuring peer margins, Interparfums has maintained its operating margin. Executive Jean Madar expressed confidence in gaining market share in 2025, driven by a strong innovation pipeline. He detailed that the Ferragamo launch will begin in Q2 2025, accelerate in Q3, and target the U.S., Italy, and Mexico.

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CFO Jim Maloney provided the full-year 2024 operating cash flow ($24.5M) and capex ($7.5M) and confirmed the 2024 company-led marketing spend was approximately $24M. He stated that for 2025, the company will invest in growth where it is most efficient, whether through company-led marketing or coach compensation, which remains their largest marketing investment. CEO Dan Chard added that coach-led acquisition is the most efficient use of capital. Regarding LifeMD, Chard clarified that while coaches actively refer customers without a primary care physician to LifeMD, the majority of customers on GLP-1s obtain them through their own providers. He also stated that Medifast is not contemplating major changes to its front-loaded compensation plan. On cash flow, Maloney expressed confidence, citing the recent cancellation of their credit facility as a sign of strength. He projected that the number of active coaches will continue to decline in Q1 until the coach productivity metric turns positive.

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The company provided specific 2024 financials and confirmed confidence in 2025 free cash flow, having canceled their credit facility. They stated that 2025 marketing spend will be optimized between company-led efforts and coach compensation. Most GLP-1 users source their own medication, but the LifeMD partnership is available. The company feels its compensation plan is already well-structured and not in need of an overhaul. Coach counts are expected to decline in Q1, lagging the improving productivity metric, which is driven more by customer acquisition than order value.

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The company declined to specify the portion of GLP-1 users sourced via LifeMD but defended the partnership's structure. Clinical trial costs are estimated at under $2 million, primarily occurring in 2025. New products will launch for the 2025 resolution season, with pricing to be announced. The cash position is strong, and the credit facility was canceled as it was deemed unnecessary, saving on fees.

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CFO John DeSimone explained the guidance range reflects potential upside or downside risk primarily in the U.S. and China. He confirmed that currency headwinds of approximately 80 basis points are masking significant underlying EBITDA margin improvement. Incoming CEO Stephan Gratziani addressed China, attributing the weakness to a major strategic shift toward a customer-focused model and a new loyalty program. He noted the transition was slower than expected but is yielding the desired results in the customer base, with new initiatives planned to accelerate growth.

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President Stephan Gratziani explained that China's volume was impacted by a strategic shift to a new customer loyalty program, which boosted new customers by 65% but temporarily de-emphasized sales representative recruiting. CFO John DeSimone confirmed that significant cost savings have been realized, contributing to margin improvement, and stated the negative gross margin mix was primarily due to lower sales in the high-margin China market.

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Chairman and CEO Tarang Amin countered that the company has an incredibly strong innovation pipeline and does not 'copy' products but rather takes inspiration and adds a unique 'e.l.f. twist,' particularly on value. CFO Mandy Fields highlighted the lip category as a prime example of success in a conquest category, noting that the company grew its share by over 800 basis points, demonstrating that its innovation model allows it to gain significant share in new segments.

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CFO Mandy Fields clarified that the negative mix was from Naturium's planned expansion into wholesale, while international growth is a positive for gross margin due to the absence of U.S. tariffs. CEO Tarang Amin explained the hesitation on a long-term algorithm, citing that their previous one proved too conservative and that they prefer investors to focus on their three key metrics: net sales growth, adjusted EBITDA growth, and market share gains.

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CEO Ron Lombardi clarified the Dramamine extension targets stress-induced nausea and the Fleet expansion is into constipation products aligned with its 'serious relief' heritage, not competing with fiber supplements. He also expressed confidence in Q4 momentum. CFO and COO Christine Sacco explained the free cash flow guidance of '$240 million or more' already implies potential upside, accommodating the strong performance.

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CEO Ynon Kreiz agreed that Mattel's supply chain is a significant competitive advantage, enabling the company to manage complexity and excel in challenging market conditions. He stressed the advantage is not just about cost but also quality, service levels, and retail collaboration. He noted that supply chain efficiencies were a key driver of the strong gross margin and profitability improvements achieved in 2024.

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CEO Ynon Kreiz confirmed the Fisher-Price Wood line is now expanding globally after its exclusive period with Walmart and noted the overall brand has great momentum. Regarding competitors, he emphasized Mattel's focus on its own strategy and the competitive advantage of its scaled, in-house supply chain, which is symbiotic with its entertainment franchise strategy.

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CEO Linda Rendle explained that there is no single consumer metric that perfectly correlates with category performance. CFO Kevin Jacobsen clarified that the digital transformation is a 5-year, $560-$580 million program currently in its fourth year. He expects spending to decrease next year and conclude after fiscal year '26, at which point the charges will cease.

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CEO Jim McCann explained that a Friday Valentine's Day is best for sales because customers are at work with fewer gifting options. CFO James Langrock and McCann assured that while not 100% fixed, any remaining OMS issues for the food business will be manageable and not impact customers due to lower volumes. President Tom Hartnett described digital ad rates as a 'mixed bag' post-election. Langrock quantified tariff exposure as minimal, with only $40-$45 million in purchases from China out of a nearly $1 billion cost of goods sold base.

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CFO Bill Shea confirmed expectations for significant improvement in Q2 revenue trends, driven by improving e-commerce momentum and a $20 million year-over-year increase in wholesale orders. CEO Jim McCann and President Tom Hartnett acknowledged elevated media rates due to the election but expect moderation. McCann expressed strong optimism about the Macy's pop-ups, suggesting a return to brick-and-mortar retail is being considered pending the results of this test.

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CFO Bill Shea explained that the lost BloomNet contract ended in December of the prior year, so the company will anniversary the impact after the first two quarters of FY25, with growth expected in the second half of the year. CEO Jim McCann and President Tom Hartnett stated that early signs for the seasonal labor force are strong, expecting it to be 'readily available' with 'steady economics,' similar to the previous year.

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Andre Schulten, an executive, detailed pockets of strength in U.S. Beauty (deodorants, personal care) but acknowledged weakness in Skin Care, where Olay is down double-digits. Jon Moeller, Chairman, President and CEO, explained that the overall segment's volume decline was heavily influenced by its significant presence in China, where volumes are still recovering and weighed on the global segment's results.

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Executive Andre Schulten reported that Olay's new innovations like Super Serums and Melts are highly successful in North America, while acknowledging an opportunity to rejuvenate the core jar business. In China, he noted that after divesting a brand, the focused Hair Care portfolio is performing well with strong innovation, highlighting that Pantene was the #1 online hair care brand in the last quarter, though the overall market remains down.

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Sara Hyzer, VP and CFO, quantified the customer bankruptcy's impact at approximately $800,000 and noted higher accruals for a growth reward program contributed to the SG&A increase. She also confirmed the Q2 easy comparison was due to a $2.5 million disruption from the prior year's ERP implementation. Steve Brass, President and CEO, clarified that U.S. promotions were not unusually large but reflected strong retail POS sales, up 4-5%. He explained the sales cadence involves strong H1 growth in Brazil tapering in H2, while Asia distributor markets are expected to pick up in H2. He attributed strong European performance to broad-based execution across the region.

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CFO Sara Hyzer confirmed the FY2025 guidance is on a pro forma basis, fully excluding the brands targeted for divestiture, and noted the company will provide non-GAAP comparisons. She explained that future margin gains will be more gradual and driven by supply chain initiatives, with an assumed oil price of $70-$90 per barrel. Hyzer projected back-half weighted sales growth for the year. President and CEO Steve Brass added that Asia-Pacific growth will start slower due to tough comps, while Brazil's incremental growth will be front-loaded. He attributed China's strong performance to successful, ongoing sampling and distribution expansion programs.

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President and CEO Denise Paulonis reiterated the company's guidance for low single-digit comp growth and margin expansion, expressing conviction in their plans. She explained that owned brands (like the successful 'Bondbar') and national brands are complementary and part of a modern specialty retail strategy. Regarding drugstore closures, she stated the company focuses on its own customer acquisition strategy rather than tracking specific competitor impacts.

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CFO Michael Monahan explained that both interest rates and credit approval availability affect sales, with no single trigger point for improvement. He noted that well over 75% of sales are financed by third parties. He clarified that year-over-year ASPs improved due to reduced discounting, which helped margins, but this was offset by pressures from higher overhead costs and the sales mix of refurbished Elite systems.

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CFO Doug Hekking clarified that increased Q4 promotions will primarily impact the associate incentives line, driving lower margin guidance. Chief Commercial Officer Brent Neidig stated the new whey protein is for a broad market, not just GLP-1 users, and that the core nutritionals category remains the focus for 2025. On capital allocation, Hekking reiterated priorities are organic investment, M&A, and then buybacks. Regarding China, Neidig and Hekking noted that current government stimulus is not yet directly impacting consumer spending but is a positive long-term signal for consumer sentiment.

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CFO Brian Grass stated that the new distribution gains secured for the second half of fiscal 2025 are expected to be larger than the carryover gains from fiscal 2024 that benefited the first half, though he did not provide a specific quantification. CEO Noel Geoffroy commented that having brands like Curlsmith and Drybar in Ulta at Target is a positive for brand visibility and accessibility due to high foot traffic, viewing it as a benefit even if its direct impact isn't broken out separately from overall Ulta sales.

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CFO Heather Stark explained that lower new subscriber growth in April was due to a planned marketing shift to May. She noted ARPU is showing 'green shoots' of stabilization and is expected to expand over time. She also confirmed that clinical promotions are in line with the company's overall strategy and that there are no new triggers that would cause a loss of access to the revolver.

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