Repair and Remodel Outlook
Q: Any changes to the outlook for repair and remodel given rate moves?
A: Management sees no change in the repair and remodel outlook despite recent rate moves. They expect the market to be flat to down low single digits, anticipating an uptick in the second half of the year. First-quarter performance was as expected, and guidance is being held.

Capital Allocation and Acquisitions
Q: How is the company approaching capital allocation and potential acquisitions?
A: The company maintains its capital allocation strategy, focusing on bolt-on acquisitions in Paint and Plumbing, with approximately $600 million available for acquisitions or share buybacks. They are considering opportunities, including a significant paint asset under strategic review, consistent with their strategy.

Plumbing Margins Outlook
Q: What is the outlook for Plumbing margins following a strong Q1?
A: Despite a 19.1% Plumbing margin in Q1, the full-year margin guidance remains unchanged at 18.5%. Management cites a pipeline of productivity initiatives and expects no significant negative headwinds. Potential risks include commodity volatility and freight costs, but these are deemed manageable.

International Plumbing Performance
Q: What are expectations for International Plumbing sales?
A: The International market is expected to be down low to mid-single digits. While Germany shows stability, China remains variable. The company anticipates continued market share gains with Hansgrohe outperforming major competitors.

Price and Commodity Cost Dynamics
Q: How are price and commodity costs affecting margins?
A: In Plumbing, a low single-digit price tailwind is expected for the year, with commodities being relatively neutral. In Paint, commodity impacts are not expected to be significant for the year, though there's monitoring of potential upward pressures from oil and TiO₂ prices.

Cost Savings Initiatives
Q: Can you elaborate on cost-saving programs in Plumbing?
A: The company is executing on purchasing efficiencies, value engineering, and productivity improvements through their operating system. Initiatives include consolidating component sets, optimizing labor productivity, and leveraging technology, contributing to margin enhancements.

Kichler and Liberty Hardware Performance
Q: What's driving the decline in Kichler and hardware businesses?
A: Kichler and Liberty were down more than the overall portfolio, partly due to strategic decisions like exiting less profitable lines. As the year progresses, these businesses are expected to align more closely with repair and remodel industry trends.

Working Capital Improvements
Q: What drove the improvements in working capital, and what's the outlook?
A: Disciplined management led to improved working capital, which is expected to end the year around 16.5% of sales, similar to 2023 levels. Seasonal factors contribute to higher Q1 levels, but the company anticipates staying in line with normalized trends.

Consumer Price Sensitivity
Q: How is consumer price sensitivity impacting demand?
A: Management finds it challenging to assess price elasticity due to recent significant inflation. While some price sensitivity exists at lower price points and in specific markets like China, overall mix impact has been minimal.

Delta Brand Performance
Q: Is the growth in Delta sustainable in a down market?
A: Delta saw revenue growth, particularly in the wholesale channel, and management maintains cautious optimism. Performance aligns with full-year guidance, anticipating stabilization in North American Plumbing.

Incremental Margins with Volume Recovery
Q: How should we view incremental margins if volumes turn positive?
A: Incremental margins are expected to be consistent with historical levels at 30–35% in Plumbing, slightly lower in Decorative Architectural. No change is expected in the drop-down on incremental volume.