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Executive Michael Monahan explained that guidance was maintained due to lowered expectations for consumable sales in APAC, specifically China, because of tariffs. This also drives the apparent Q2 slowdown. He confirmed that the projected tariff impact is expected to be larger in the second half of the year, offsetting the usual seasonal gross margin strength.

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Executive Michael Monahan outlined three drivers for the Q1 guidance: the slowdown from the China distributor shift ($5-6M impact), persistent macro pressure on global device sales, and a consumer shift to lower-priced base treatments. CEO Marla Beck addressed consumable sustainability, emphasizing the 'wrap the treatment room' strategy and the success of new, clinically-backed booster launches like Hydralock. Monahan added that the growing installed base of over 34,000 systems provides a strong foundation for future consumable revenue.

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CEO Marla Beck confirmed the go-to-market review is global, aimed at improving profitability in all markets that lack scale. She attributed strong consumables per device to the treatment's popularity, demand from medical channels, and the business-driving effect of new product launches. CFO Michael Monahan clarified that his guidance was for Q4 adjusted gross margin to be down sequentially compared to Q3 2024.

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COO Daniel Sullivan clarified that incremental Q3 promotional investment in the U.S. is occurring alongside planned price increases in select international markets. He reiterated the tariff impact is $3-4M in-year with a 3-4% of COGS annualized exposure before mitigation. CEO Rod Little stated there has been no meaningful retailer destocking and noted that while their Private Brands business is strategic and growing internationally, they are not yet seeing a material market shift to private label.

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COO Daniel Sullivan stated that while planned pricing for FY25 has been executed internationally, the current focus is on revenue management and productivity rather than new list price increases, though they are not ruled out. President and CEO Rod Little emphasized that the company will not cut brand investment to offset FX headwinds. Regarding Fem Care, Little expressed confidence based on the category's return to stability, clear line of sight into segment performance, and easier year-over-year comparisons ahead.

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CEO Rod Little explained that growth will be driven by a more effective, locally-driven innovation model, citing recent successful launches in Europe (Wilkinson Sword) and Japan (Schick First). He also noted a significant tailwind from lapping an easy comparison in Fem Care, which is expected to improve from a 10% decline to flat. COO and CFO Daniel Sullivan detailed the reasons for a weak Q1, including cycling a very strong prior-year quarter in Japan, the timing of new product launches and pricing actions hitting later in the year, and the Fem Care recovery being a second-half event.

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CFO Laurent Mercier explained the volume/price gap was due to geographic mix, with strong volume growth in lower-priced markets like Brazil offsetting weakness elsewhere. He described the streamlining as centralizing support functions to align with the new commercial organization. CEO Sue Nabi confirmed the company constantly evaluates its portfolio and is not committed to keeping all brands, citing the recent changes with the SKKN brand as an example.

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CEO Sue Nabi explained that Prestige Fragrances have higher barriers to entry due to their unique, hard-to-replicate scents and scientific know-how, such as longevity-enhancing molecules. To fuel growth in other categories like Color Cosmetics, she stated the company must create similar high-entry-barrier innovations, moving beyond commoditized products to re-attract consumers with unique value.

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CEO Sue Nabi attributed the resilience of Prestige Fragrances to high barriers to entry, such as unique scents and scientific innovation, which make them less replaceable. For other categories like color cosmetics, she argued that the key to growth is creating similar high-barrier innovations that are difficult to copy, moving away from a reliance on commoditized trends from third-party manufacturers.

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CEO Linda Rendle explained that destocking was focused on Household because it contains heavy, space-intensive goods like Kingsford and Litter, which retailers are managing closely. On consumer replenishment, she stated it's too early to tell if there will be a bounce-back, as the downturn began less than one full 90-day purchase cycle ago. She noted it's a question mark for FY26, as it's unclear if consumers will stretch smaller pack sizes or return to buy more frequently.

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CEO Linda Rendle stated that the company assumes an average cold and flu season, which has largely played out as expected. For the Litter category, she confirmed the outlook already includes an elevated promotional environment and increased advertising to support new product launches. She affirmed that Clorox has the financial flexibility to respond to competitive pressures as needed.

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Executive Richard Dierker responded that the company has worked to mitigate tariff impacts specifically to avoid taking broad price increases in the current environment. He emphasized that driving household penetration for HERO and THERABREATH is a key priority, supported by reallocating media and maintaining an 11% marketing-to-sales ratio. CFO Lee McChesney added that the full-year gross margin outlook of a 60 basis point contraction already accounts for various factors, with tariffs being the primary driver of the revised forecast.

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CEO Matthew Farrell stated that the premium innovations are not a disadvantage, citing the strong performance of Hardball litter and consumer appeal of POWER SHEETS. He noted that while their core brands are value-focused, their consumers have historically traded up. CFO Rick Dierker added that a product like Deep Clean, while premium for the ARM & HAMMER brand, still represents a value in the overall category's mid-tier, attracting consumers from higher-priced brands.

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Richard Dierker (CFO and Head of Business Operations) explained that the Q2 gross margin beat was driven by favorable product mix within the personal care portfolio. He attributed the expected second-half deceleration to a combination of slightly more inflation, a less favorable product mix, and the reserved 'dry powder' for potential trade and couponing expenses.

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CEO Christopher Peterson explained the market share outlook is unchanged because potential upside from 17 additional categories under discussion is not yet factored into guidance. He confirmed minor pricing was taken on other items, but baby gear was ~90% of the action. He stated that competitors have largely moved production to Asia, leaving Newell uniquely positioned with available U.S. and Mexico capacity to fill supply disruptions as retailers pause China orders.

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CEO Christopher Peterson detailed the varied performance, noting strength in Learning & Development, sequential improvement in Home & Commercial, and a longer turnaround for Outdoor & Recreation. He emphasized that future gains will come from product mix rather than price increases. CFO Mark Erceg added that while productivity currently drives margin expansion, improved price/mix management will become a more significant contributor going forward.

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Noel Wallace, Chairman, President and CEO, clarified the main issue in North America was a volume decline driven by lower store traffic and conversion, which they aim to address with innovation. For Latin America, he expressed confidence due to exceptionally strong brands, a solid innovation pipeline, and announced pricing actions. He sees no fundamental issues, expecting the market to rebound as macroeconomics improve, consistent with historical patterns.

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CEO Noel Wallace stated that the promotional environment remains constructive, with isolated pockets of heightened competition in markets like India and South Africa, which have been factored into their plans. He confirmed that pricing has already been announced in Latin America to offset currency devaluation. He reiterated that in Europe, the strategy is less about direct price increases and more about driving value through innovation.

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Noel Wallace, Chairman, President and CEO, reiterated the strategy of accelerating premium innovation while also thoughtfully managing promotional cadence, digital and paper coupons, and price pack architectures across all price tiers. He described the consumer environment as more 'normalized,' with slightly higher coupon redemption rates but promotional activity largely in line with post-COVID levels, and highlighted the use of AI and analytics to optimize promotional ROI with retailers.

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Executive Andre Schulten explained that the Q4 impact of $100M-$160M reflects only one month of the effect due to accounting policies where tariffs are treated as an inventoriable cost. Multiplying this monthly impact by twelve aligns with the $1B-$1.5B annual estimate. He declined to detail specific pricing plans by category, stating it is a complex exercise the teams are currently undertaking.

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Andre Schulten, an executive, said China's recovery will be a mix of both improving market comps and P&G's own business improvements. Regarding investment, he and CEO Jon Moeller explained the focus is now on optimizing the marketing playbook and improving content quality and efficiency—such as bringing key opinion leader support in-house—rather than simply increasing spending.

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Executive Andre Schulten explained that the portfolio strategy allows for varied performance across categories at different times. He highlighted that Beauty, excluding China and SK-II, is actually performing very well, with strong growth in North America and Europe. He noted that all categories have rich opportunities for innovation, but they don't all materialize at the same time.

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Executive Michel Brousset confirmed that Milk Makeup is not losing any space at Sephora. He reiterated that the flat Q1 outlook is overwhelmingly due to anniversarying a uniquely large Jelly launch from the prior year, with a smaller impact from retailer inventory adjustments. He emphasized their strategy is driven by innovation and distribution, making it less dependent on overall market dynamics. Executive Manuel Manfredi clarified that for logistical reasons, the Ulta Beauty sell-in was split between Q4 and Q1.

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Executive Michel Brousset outlined a high-growth algorithm well ahead of the market, fueled by a strong gross margin that enables reinvestment for growth and EBITDA expansion. He noted that while the beauty market is competitive, Waldencast's focus is on creating unique products, like Milk's Jellies, rather than on competitors. He confirmed that out-of-stocks from high demand were a headwind in Q2 but are now largely resolved.

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CEO Amanda Baldwin detailed a three-pronged strategy to return to growth: harnessing the innovation engine with new launches like the scalp treatment, executing a new brand marketing strategy to tell the company's story effectively, and maintaining executional excellence. COO & CFO Catherine Dunleavy added that achieving the high end of the guidance range is directly tied to the speed of progress on these three priorities, which are being monitored with detailed metrics.

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CEO Amanda Baldwin explained that the company's strong financial position allows it to make difficult but necessary choices for long-term health. She stressed that realigning the international business is critical to capitalizing on future marketing and innovation. While declining to give a specific timeline, she assured a process that balances urgency with thorough analysis and partner selection.

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CFO Eva Boratto acknowledged that January was lighter but in line with external markets, and reiterated that the company is pleased with the start to Q1, driven by newness. For the full-year gross margin, she noted benefits from prior cost reductions are offset by some pressure from product mix and newness, which typically launch at lower margins before scaling.

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CEO Gina Boswell stated the company aims to deepen engagement with its 38 million active loyalty members (up 4% YoY), focusing on increasing the frequency of earning and redeeming points. Regarding manufacturing, she declined to comment on competitors but emphasized that the company's 85% North American production is a significant competitive advantage, driving speed and agility.

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CEO Denise Paulonis confirmed that the Q2 guidance reflects the January macro impacts and expressed confidence in navigating the year through strategic tactics, highlighting innovation and new brand imaging as key drivers. CFO Marlo Cormier addressed tariffs, stating that exposure is minimal (less than 10% of product from Asia/China) and that the company would use its previous playbook of vendor switching, volume shifts, and potential price increases to mitigate any impact.

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President and CEO Denise Paulonis and CFO Marlo Cormier outlined a path to a low double-digit operating margin driven by low single-digit sales growth and the 'Fuel for Growth' program, which is expected to deliver over $40 million in savings in FY25. Paulonis noted that growth is coming from new and reactivated customers, partly via the 'Licensed Colorist OnDemand' platform. E-commerce initiatives include expanding marketplace partnerships like DoorDash and Instacart, which drove $13 million in growth, alongside enhancing the company's own digital platforms.

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CFO Mandy Fields emphasized looking at the second half's 14-16% growth outlook in aggregate, given that some pipeline shipments were pulled into Q3. She noted that digital and international channels continue to perform strongly outside of U.S. scanner data. Chairman and CEO Tarang Amin added that the company is taking a cautious stance but sees the environment as a great opportunity to build share, highlighting the 90 basis points gained in a weak January. He confirmed they will continue to emphasize their strong value proposition.

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CEO Tarang Amin attributed the outperformance to the brand's core value proposition, powerhouse innovation (6 of the top 10 new launches), and disruptive marketing. He explained the Dollar General expansion aligns with the mission of making beauty accessible, specifically targeting underserved rural consumers, and noted the brand is displacing others with a premium endcap presentation.

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CEO David Maura detailed plans to mitigate tariffs by moving production, aiming for 30-40% of U.S.-bound HPC products to be sourced outside China by year-end, while also using pricing and supplier negotiations. CFO Jeremy Smeltser quantified the currently announced tariff impact at approximately $12 million for the fiscal year and confirmed the company's plan is to mitigate the vast majority of it through their established playbook of cost improvements, supplier concessions, and pricing actions, thus maintaining the EBITDA outlook.

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CEO Noel Geoffroy characterized the consumer environment as a continuation of recent trends, with lower-income consumers remaining cautious. She confirmed that significant distribution gains for OXO and Hydro Flask are a positive tailwind. While the weak illness season is a current headwind for Wellness, she noted the company typically assumes an average season for planning purposes. She concluded that the Beauty business still requires more work but has new innovation in the pipeline.

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CEO Noel Geoffroy explained that normalizing categories like kitchen utensils are now driven by more traditional factors like new home formation and dining-in trends. She noted that while some retailers are managing inventory tightly, she does not see a major, unusual inventory issue across the market. CFO Brian Grass stated that the high end of the guidance assumes current POS trends hold steady, and a decline in those trends would be the primary factor pushing results toward the low end.

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EVP and CFO Tracey Travis explained that while gross margin is expected to improve, the significant sales decline, concentrated in highly profitable China and Travel Retail markets, creates substantial operating expense deleverage. This is compounded by protected investments in advertising for the holiday season and store build-outs for growing brands. President and CEO Fabrizio Freda emphasized the negative mix impact from declines in these high-scale, high-profitability markets.

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