Rukun Duggal's questions to Stran & Company Inc (SWAG) leadership • Q1 2025
Question
Rukun Duggal of Chandern asked if Stran & Company plans to report adjusted earnings to separate onetime expenses and whether the recent inventory increase was a strategic move to get ahead of tariffs or part of the normal business cadence.
Answer
Executive Andrew Shape confirmed that the company is preparing to release adjusted EBITDA figures that exclude onetime expenses related to the audit, acquisitions, and ERP implementation, pending final compliance review. Regarding inventory, Shape stated the increase is a positive indicator of customer commitments, not speculative buying. He elaborated on the company's multi-faceted tariff mitigation strategy, which includes diversifying manufacturing to regions like Vietnam and India, negotiating with partners, and leveraging contract protections. He noted that direct imports from China represent less than 20% of the business.