Net Sales

–5% (from $1,653M in Q1 2024 to $1,566M in Q1 2025)

Soft global demand and continued distribution challenges reduced overall sales. The decline builds on the previous period’s vulnerability where similar headwinds were already evident, reinforcing a downward trend in revenue generation. " "

Home and Commercial Solutions

–9% (from $893M in Q1 2024 to $812M in Q1 2025)

The segment’s decline is driven by persistent soft demand, ongoing distribution losses, and category exits that had begun impacting net sales in earlier periods. This drop reiterates issues seen in past quarters where business exits and weak demand were already a concern. " "

Outdoor and Recreation

~–10% (from $201M in Q1 2024 to $182M in Q1 2025)

Significant pressure from weak global demand and distribution issues continues to affect this segment, echoing prior downward trends. The nearly 10% dip from Q1 2024 confirms that the segment’s challenges, such as currency headwinds and market softness, remain unresolved. " "

Operating Income

+31% (from $16M in Q1 2024 to $21M in Q1 2025)

Despite marginal overall profitability, improved cost discipline, productivity gains, and pricing actions have driven operating income up by 31%. This highlights that previous cost-saving initiatives and efficiency measures have begun to yield beneficial effects compared to the prior period. " "

Net Income

Worsened from a loss of $9M to a loss of $37M

While operating performance improved, rising non-operating expenses such as higher interest costs and other charges have deepened the net loss. This deterioration indicates that factors beyond core operations—previously less impactful—are now significantly pressuring the bottom line. " "

Cash and Cash Equivalents

–37% (from $372M in Q1 2024 to $233M in Q1 2025)

A marked decline in cash is attributed to lower operating cash flows and increased outflows, likely from higher working capital requirements and dividend or financing actions. The trend suggests that improved operational metrics have not yet translated into robust liquidity compared to the previous year. " "

Total Stockholders’ Equity

–13% (down to $2,690M)

The reduction in equity reflects cumulative effects of net losses and dividend payments eroding retained earnings. This decrease builds on earlier period challenges where similar financial stresses were already beginning to impact the overall capital base. " "

Net Sales

FY 2025

Expected to decline between –4% and –2% "

Maintained net sales guidance; category growth expectations moderated from previously flat to down 1%–2% " " "

no change

Core Sales

FY 2025

Expected to be between –2% and +1% "

Adjusted core sales guidance based on a more challenging environment "

lowered

Normalized Operating Margin

FY 2025

Expected to be between 9% and 9.5% "

Maintained guidance for normalized operating margin " " "

no change

Normalized Diluted EPS

FY 2025

$0.70 to $0.76 "

Maintained guidance for normalized EPS " " "

no change

Tariff Impact

FY 2025

no prior guidance

Estimated ~$0.20 normalized EPS impact (if the 125% China tariff remains in effect for the full year, partly offset) " " "

no prior guidance

Foreign Exchange

FY 2025

no prior guidance

Foreign exchange rates have moved largely in favor, contributing positively "

no prior guidance

Back Half Performance

FY 2025

no prior guidance

Stronger top-line performance expected in the second half, driven by innovation launches and distribution gains "

no prior guidance

A&P Investment

FY 2025

no prior guidance

Plans to spend more on A&P than at any point over recent years "

no prior guidance

Inventory Management

FY 2025

no prior guidance

Proactively adjusted inventory planning to avoid overbuilding and ensure strong cash flow "

no prior guidance

Domestic Manufacturing Advantage

Consistently emphasized in Q4 2024, Q3 2024 and Q2 2024 with details on a strong U.S. manufacturing base, nearly $2 billion investment since 2017, and strategic benefits in categories such as writing, coolers, and food storage ( " " " " " ).

In Q1 2025, the discussion remains robust with emphasis on the company’s extensive U.S. base (15 U.S. plants plus 2 USMCA-compliant plants) and its role in producing tariff‑free products, reinforcing competitive advantages ( " " ).

Consistent focus on domestic manufacturing with an increasing emphasis on automation and its role in mitigating tariff risks.

China Sourcing Reduction

Discussed throughout previous quarters (Q4 2024, Q3 2024, Q2 2024) as part of tariff mitigation, reducing dependency from 35%-40% down to 15% of COGS and aiming for less than 10% by year‑end; involved in‐sourcing production and qualification of alternative suppliers ( " " " " " " ).

In Q1 2025, the reduction continues to be central; emphasis remains on further reducing China sourcing to 10% by end‑2025 and leveraging North American production to mitigate tariff impacts on sensitive categories (e.g. baby gear) ( " " ).

Steady strategy with proactive positioning—measures remain in place with slight acceleration in targets and integration with pricing and tariff mitigation initiatives.

Tariff Exposure and Mitigation Strategies

Previously detailed in Q4 2024, Q3 2024 and Q2 2024 with discussions on tariff exposures (e.g. China tariff effects, baby gear exemptions) and multi‐pronged mitigation strategies including pricing actions, in‐sourcing, and shifting sourcing to alternate geographies ( " " " " " ).

Q1 2025 emphasized significant tariff exposure due to the 125% China tariff—especially in baby gear—and outlined two rounds of price increases, inventory management steps, and enhanced use of domestic supply, with forward‐looking price adjustments and lobbying efforts ( " " " " " ).

Evolving focus: The mitigation measures are consistent but with enhanced detail on pricing actions and inventory strategies, reflecting continued concern and proactive measures to offset tariff impacts.

New Product Innovation and Pipeline Developments

Q4 2024 and Q3 2024 highlighted a strong and expanding innovation pipeline with Tier 1 initiatives growing from 1 to mid‑teens, significant new product launches (e.g. Rubbermaid Easy Store, Oster blenders, FoodSaver innovation) and positive sentiment on consumer-led, proprietary products ( " " " " ). Q2 2024 also conveyed optimism and improved innovation contributions.

In Q1 2025, the sentiment is very positive with a rebuilt multiyear innovation funnel, upcoming launches such as Rubbermaid Easy Store and FoodSaver consumables wins starting July 2025, and active discussions across 19 categories, underscoring confidence in sustained growth ( " " " ).

Positive and evolving: Consistent focus on innovation with an expanded pipeline and clear strategic milestones targeted for the second half of 2025.

Portfolio Rationalization and Brand Divestitures

Detailed in Q4 2024 and Q3 2024 – discussions on reducing the number of brands from 80 to 55 with plans to exit further small brands (targeting about 50), and massive SKU reductions from over 100,000 to less than 20,000 for complexity reduction and margin improvement ( " " " " ). Q2 2024 did not include specific commentary.

Q1 2025 did not contain any specific mention of portfolio rationalization or divestitures.

Less emphasis in current period; a topic prominent in earlier periods but not discussed in Q1 2025, possibly indicating integration of prior actions or lower strategic focus at this time.

Outdoor & Recreation Segment Performance and Turnaround Efforts

In Q4 2024, Q3 2024 and Q2 2024, extensive discussion covered the O&R segment’s challenges, sequential improvements, strategic shifts (e.g. evolving Coleman strategy), new marketing campaigns, innovation pipeline expectations for 2026, and turnaround efforts despite lower margins ( " " " " " " " ).

Q1 2025 did not include specific commentary on O&R performance or turnaround; aside from noting higher inventory levels, there were no detailed updates.

Discontinued focus: Once a significant discussion point, it is absent in Q1 2025, suggesting a temporary deprioritization or transition in focus away from the segment.

Strategic Pricing Adjustments and Pricing Benefit Variability

Consistently discussed in Q4 2024, Q3 2024 and Q2 2024 with explanations on price/mix benefits, adjustments to offset FX headwinds, detailed pricing line logic, and management of structural profitability through selective price increases and mix optimization ( " " " " ).

In Q1 2025, the company detailed targeted tariff-related pricing actions (two rounds of 10% increases), integration of foreign exchange improvements, and adjustments based on elasticity and competitor responses, emphasizing proactive and deliberate pricing strategy ( " " " " " ).

Consistent and proactive: The pricing strategy remains a core focus with additional emphasis on tariff-related actions and fine-tuning based on consumer and competitor reactions.

Foreign Exchange Headwinds and Currency Dislocation

Q4 2024, Q3 2024, and Q2 2024 discussed currency headwinds (2.6% in Q4, approximately 3% in other quarters) and dislocation issues tied to FX fluctuations impacting net sales and margin, with plans for future pricing adjustments to address these challenges ( " " " " " " ).

In Q1 2025, the call noted about a 2.5-point currency headwind, but also an updated, more favorable full-year outlook (improved by 1-2 percentage points) along with measures to adjust prices to mitigate the dislocation impact ( " " " ).

Stable with slight improvement: FX headwinds remain a challenge but the outlook has improved somewhat, with ongoing efforts to mitigate their impact with targeted pricing actions.

Cost Savings, Margin Expansion, and Productivity Improvements

Discussed thoroughly in Q2 2024, Q3 2024 and Q4 2024 – initiatives included SKU rationalization, supply chain efficiency, automation investments, productivity programs like FUEL, and significant gross and operating margin improvements through structural changes, leading to sequential quarter-over-quarter gains ( " " " " " " ).

In Q1 2025, strong emphasis on additional commodity and input savings (e.g. crude oil and natural gas price drops), continued SKU simplification, and a record seventh consecutive quarter of improved normalized gross margins, underpinned by productivity improvements and cost control measures ( " " " ).

Consistent improvement: Continued emphasis on productivity and cost control with notable momentum in margin expansion and efficiency gains sustained into Q1 2025.

Supply Chain and Retail Transition Challenges

In Q2 2024, Q3 2024 and Q4 2024, discussions centered on optimizing supply chains through SKU and distributor rationalization, ERP consolidation, proactive inventory management and tariff mitigation; retail challenges included transitions in distribution and adjustments in retail inventory practices ( " " " " " ).

Q1 2025 maintained focus on supply chain challenges in the context of tariff impacts, detailing strategic moves such as inventory pre-buy, paused Chinese orders, and leveraging domestic manufacturing advantages to ensure retailer shelves remain stocked ( " " " ).

Steady focus with tactical adjustments: The ongoing initiatives to rationalize the supply chain and manage retail transitions continue, with Q1 2025 emphasizing tariff mitigation as a central element.

Soft Consumer Demand and Lower Market Growth Expectations

In Q2 2024, Q3 2024 and Q4 2024, the narrative reflected soft consumer demand driven by inflation and wage pressures, with revised expectations (down low single digits to flat or slight recovery) and recognition of consumer segmentation impacts, particularly among lower-income groups ( " " " " " " " ).

In Q1 2025, management lowered market growth assumptions from flat to down 1-2% to prevent overbuilding inventory, while also noting potential tailwinds in categories like kitchen products if consumer behavior shifts toward at-home activities ( " " " ).

Cautious but adaptive: Persistent concerns on consumer demand are evident, with a conservative short‑term forecast but acknowledgement of possible compensatory trends in specific segments.

Underutilized Production Capacity Risks

Not mentioned in Q2, Q3 or Q4 2024 earnings calls.

In Q1 2025, a new point emerged describing significant underutilized capacity in U.S. and Mexican facilities—exemplified by a blender plant operating at 50% capacity—indicating readiness to ramp up production, especially for tariff‑free, branded products ( " " ).

Emerging topic: Newly highlighted in Q1 2025, suggesting an opportunity to leverage idle capacity as market conditions evolve, particularly in response to tariff pressures and shifting retailer demands.

Declining Emphasis on Specific Category Wins (e.g. FoodSaver, Rubbermaid)

In Q2 2024, Q3 2024 and Q4 2024, discussions centered on innovative product launches and competitive wins in categories such as FoodSaver and Rubbermaid with clear strategic innovation and market wins, not a reduction in emphasis ( " " " " ).

In Q1 2025, rather than a decline, the call underscored specific wins in FoodSaver consumables and Rubbermaid food storage, emphasizing strong category performance and domestic production advantages; there was no indication of de‑prioritization ( " " ).

Consistent emphasis: The focus on these key categories remains strong across periods, with Q1 2025 reinforcing their strategic importance rather than showing a declining emphasis.