Zara-Owner Inditex Sales Rise Even as Global Economy Cools
Revenue at the world's largest listed clothing retailer, not including currency effects, rose 6% in the five weeks to June 9 and grew faster than in the first quarter. Operating profit and revenues for that period were in line with analyst estimates.
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Yahoo
2 hours ago
- Yahoo
KFC and Pizza Hut U.S. challenged by ‘gaps in value perception'
You can find original article here Nrn. Subscribe to our free daily Nrn newsletter. Yum Brands reported second quarter results Tuesday before market and — once again — Taco Bell is doing the heavy lifting for the company's domestic business. Taco Bell U.S.'s same-store sales grew 4%, while KFC and Pizza Hut U.S. both fell by 5%, and Habit Burger & Grill's same-store sales declined by 4%. During the company's earnings call, chief executive officer David Gibbs said the KFC and Pizza Hut domestic businesses struggled from 'gaps in value perception.' KFC's performance marked its sixth straight quarter of same-store sales declines. The company is working to strike the right balance between innovative product launches and value through its new Comeback campaign, launched in response to market share loss to competitors such as Popeyes, Chick-fil-A, and Raising Cane's last year. Gibbs said Scott Mezvinsky, who was named KFC CEO earlier this year, has a 'compelling strategy on energizing the brand, enhancing relevance, and deepening engagement,' informed by his experience at Taco Bell, where he most recently served as president of North America and International. In global markets, KFC leverages successful product launches to modernize the brand, and we may see more of that trickle into the domestic market. For instance, the Korean BBQ Sandwich launch in Spain was recently introduced to additional European markets, while KFC's Kwench beverage lineup is also expanding its test to additional markets. Gibbs said KFC's Saucy concept, first opened in December in Orlando, Fla., is generating 'materially higher weekly sales' than the traditional KFC it replaced, and the company plans to add several more test units by the end of this year near the original location. 'Saucy is connecting with younger demographics and one-third of its customers are under the age of 30,' Gibbs said. 'We're eager to leverage invaluable consumer insights relevant to the larger KFC system.' For Pizza Hut, Gibbs said the chain's innovative launches, including Cheesy Pizza Bites and Ranch Lover's Flight, mixed well, but 'insufficient value messaging resulted in transaction weakness.' 'The team learned from this and going forward will establish compelling value propositions, including Wing Wednesdays and Tuesday $2 Personal Pan Pizzas,' Gibbs said. Pizza Hut also launched a new mobile app, which is expected to create a tailwind in the third quarter. The Habit's negative performance was driven by continued softness in consumer demand, Gibbs said, and the chain has improved its value offerings in response, including the launch of the Gotta Habit Menu. Taco Bell shines once again Meanwhile, Taco Bell outpaced the broader limited-service category by 4 percentage points, according to Gibbs. Much of this momentum has been driven by the creation of new occasions, a stronger focus on beverages, and Crispy Chicken launches, such as nuggets, tacos, and burritos. Total chicken sales at Taco Bell are up more than 50% in the past two years. 'We expect this momentum to continue as Crispy Chicken becomes a permanent platform in 2026,' Gibbs said. 'The momentum behind new occasions will also continue with shredded beef later this year.' Taco Bell also continues to work toward its aspiration of reaching $5 billion in beverage sales by 2030 with the expanded test of its Live Más Café concept to 30 restaurants by the end of this year. 'Beverages is one of those things we're incredibly excited about. Nobody is more naturally positioned to succeed in beverage than Taco Bell,' Gibbs said. 'Live Más Caféis putting a lot of our theories into actions in a big way. The results have been stellar and prompted us to lean in and be much more aggressive on beverages.' Taco Bell has also found its stride in value, including its $5, $7, $9 Luxe Box offerings. Gibbs said the chain is well positioned to thrive in the current value environment and has even recently gained market share from not just quick-service competitors, but also fast casual brands. 'We've had sales and (transaction) growth across all income bands at Taco Bell,' he said. 'If you take the top 10 restaurant companies that are publicly traded, Taco Bell is the only one that has had positive quarterly sales for five years in a row. This year, they haven't had a single negative week. Most people are reporting negative quarters, we haven't had a negative week. The brand is truly on a roll.' Contact Alicia Kelso at Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 hours ago
- Yahoo
DXP Enterprises, Inc. Reports Second Quarter 2025 Results
$112.9 million in cash $498.7 million in sales, a 4.6 percent sequential and 11.9 percent year-over-year increase GAAP diluted EPS of $1.43 $57.3 million in earnings before interest, taxes, depreciation & amortization and other non-cash charges ("Adjusted EBITDA") Completed two acquisitions through Q2 and one subsequent to quarter end HOUSTON, August 06, 2025--(BUSINESS WIRE)--DXP Enterprises, Inc. ("DXP" or the "Company") (NASDAQ: DXPE) today announced financial results for the second quarter ended June 30, 2025. The following are results for the three months ended June 30, 2025, compared to the three months ended June 30, 2024, and March 31, 2025, where appropriate. A reconciliation of the non-GAAP financial measures can be found in the back of this press release. Second Quarter 2025 Financial Highlights: Sales increased 11.9 percent to $498.7 million compared to $445.6 million for the second quarter of 2024 and increased 4.6 percent sequentially from $476.6 million for the first quarter of 2025. Net income increased 41.3 percent for the second quarter to $23.6 million, compared to $16.7 million for the second quarter of 2024 and $20.6 million for the first quarter of 2025. Earnings per diluted share for the second quarter was $1.43 based upon 16.5 million diluted shares, compared to $1.00 earnings per diluted share in the second quarter of 2024, based on 16.7 million diluted shares. Adjusted EBITDA for the second quarter was $57.3 million compared to $48.2 million for the second quarter of 2024 and $52.5 million for the first quarter of 2025. Adjusted EBITDA as a percentage of sales, or Adjusted EBITDA margin, was 11.5 percent, 10.8 percent, and 11.0 percent, respectively. Cash flow from operating activities increased 26.5 percent for the second quarter to $18.6 million, compared to $14.7 million for the second quarter of 2024. Free Cash Flow (cash flow from operating activities less capital expenditures) for the second quarter was $8.3 million, compared to $5.9 million for second quarter of 2024. Business segment financial highlights: Service Centers' revenue for the second quarter was $339.7 million, an increase of 10.8 percent year-over-year, with a 14.8 percent operating income margin. Innovative Pumping Solutions' revenue for the second quarter was $93.5 million, an increase of 27.5 percent year-over-year, with a 19.9 percent operating income margin. Supply Chain Services' revenue for the second quarter was $65.4 million, a decrease of 0.4 percent year-over-year, with a 8.0 percent operating income margin. David R. Little, Chairman and Chief Executive Officer commented, "Second quarter results reflect the execution of our growth strategy and the resilience and durability of DXP's business. We are pleased with our sequential and year-over-year sales growth and strength in our gross profit margins. This resulted in operating leverage that produced earnings per share of $1.43. DXP's second quarter 2025 sales were $498.7 million, or a 4.6 percent increase over the first quarter of 2025 and 11.9 percent increase over 2024. Sequential organic sales for the quarter increased 12.3 percent or $51.9 million and acquisitions added another $24.6 million in sales during Q2. Adjusted EBITDA grew $4.8 million, or 9.2 percent over the first quarter of 2025. During the second quarter of 2025, sales were $339.7 million for Service Center, $93.5 million for Innovative Pumping Solutions, and $65.4 million for Supply Chain Services. Overall, we are very pleased with our performance and the progress DXP continues to make as a growth company, and we are excited to enter the second half of 2025." Kent Yee, Chief Financial Officer and Senior Vice President, remarked, "DXP achieved another high watermark quarter with a 4.6 percent sequential and 11.9 percent year-over-year sales increase to $498.7 million and 11.5 percent Adjusted EBITDA margins. We have closed two acquisitions through the second quarter, and one subsequent, and we anticipate closing at least three or four more acquisitions during the second half of 2025. This quarters financial results reflect continued execution of our strategic goals and the impact of our diversification efforts, an overall reduced energy industry exposure, and a strong balance sheet to support our key initiatives. Total debt outstanding as of June 30, 2025, was $626.8 million. DXP's secured leverage ratio or net debt to EBITDA ratio was 2.4:1.0 with a covenant EBITDA of $221.1 million for the last twelve months ending June 30, 2025." Conference Call Information DXP Enterprises, Inc. management will host a conference call, August 7, 2025, at 10:30 a.m. Central Time, to discuss the Company's financial results. The conference call may be accessed by going to Interested investors and other parties can listen to a webcast of the live conference call by logging onto the Investor Relations section of the Company's website at The online replay will be available on the same website immediately following the call. A slide presentation highlighting the Company's results and key performance indicators will also be available on the Investor Relations section of the Company's website. To learn more about DXP Enterprises, Inc., please visit the Company's website at About DXP Enterprises, Inc. DXP Enterprises, Inc. is a leading products and service distributor that adds value and total cost savings solutions to industrial customers throughout North America and Dubai. DXP provides innovative pumping solutions, supply chain services and maintenance, repair, operating and production ("MROP") services that emphasize and utilize DXP's vast product knowledge and technical expertise in rotating equipment, bearings, power transmission, metal working, industrial supplies and safety products and services. DXP's breadth of MROP products and service solutions allows DXP to be flexible and customer-driven, creating competitive advantages for our customers. DXP's business segments include Service Centers, Innovative Pumping Solutions and Supply Chain Services. For more information, go to Non-GAAP Financial Measures DXP supplements reporting of net income with certain non-GAAP measurements, including EBITDA, Adjusted EBITDA, EBITDA Margin, Adjusted EBITDA Margin, and Free Cash Flow. This supplemental information should not be considered in isolation or as a substitute for the unaudited GAAP measurements. Additional information regarding EBITDA, Adjusted EBITDA, EBITDA Margin, Adjusted EBITDA Margin, Free Cash Flow and net debt referred to in this press release are included below under "Unaudited Reconciliation of Non-GAAP Financial Information". The Company believes EBITDA provides additional information about: (i) operating performance, because it assists in comparing the operating performance of the business, as it removes the impact of non-cash depreciation and amortization expense as well as items not directly resulting from core operations such as interest expense and income taxes and (ii) the performance and the effectiveness of operational strategies. Additionally, EBITDA performance is a component of a measure of the Company's financial covenants under its credit facilities. Furthermore, some investors use EBITDA as a supplemental measure to evaluate the overall operating performance of companies in the industry. Management believes that some investors' understanding of performance is enhanced by including this non-GAAP financial measure as a reasonable basis for comparing ongoing results of operations. By providing this non-GAAP financial measure, together with a reconciliation to its most directly comparable GAAP financial measure, the Company believes it is enhancing investors' understanding of the business and results of operations, as well as assisting investors in evaluating how well the Company is executing strategic initiatives. Free Cash Flow reconciles to the most directly comparable GAAP financial measure of cash flows from operations as provided below. We believe Free Cash Flow is an important liquidity metric because it measures, during a given period, the amount of cash generated that is available to fund acquisitions, make investments, repay debt obligations, repurchase shares of the Company's common stock, and for certain other activities. Information Related to Forward-Looking Statements The Private Securities Litigation Reform Act of 1995 provides a "safe-harbor" for forward-looking statements. Certain information included in this press release (as well as information included in oral statements or other written statements made by or to be made by the Company) contains statements that are forward-looking. These forward-looking statements include, without limitation, those about the Company's expectations regarding the Company's expectations regarding the filing of the Form 10-Q; the description of the anticipated changes in the Company's consolidated balance sheet and the results of operations and the Company's assessment of the impact of such anticipated changes; the Company's business, the Company's future profitability, cash flow, liquidity, and growth. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future; and accordingly, such results may differ from those expressed in any forward-looking statement made by or on behalf of the Company. These risks and uncertainties include, but are not limited to: the effectiveness of management's strategies and decisions; our ability to implement our internal growth and acquisition growth strategies; general economic and business conditions specific to our primary customers; changes in government regulations; our ability to effectively integrate businesses we may acquire; new or modified statutory or regulatory requirements; availability of materials and labor; inability to obtain or delay in obtaining government or third-party approvals and permits; non-performance by third parties of their contractual obligations; unforeseen hazards such as weather conditions, acts of war or terrorist acts and the governmental or military response thereto; cyber-attacks adversely affecting our operations; other geological, operating and economic considerations and declining prices and market conditions, including supply or demand for maintenance, repair and operating products, equipment and service; inability of the Company or its independent auditors to complete the work necessary in order to file the Form 10-Q in the expected time frame; unanticipated changes to the Company's operating results in the Form 10-Q as filed or in relation to prior periods, including as compared to the anticipated changes stated here; unanticipated impact of such changes and its materiality; ability to obtain needed capital, dependence on existing management, leverage and debt service, domestic or global economic conditions, ability to manage changes and the continued health or availability of management personnel and changes in customer preferences and attitudes. In some cases, you can identify forward-looking statements by terminology such as, but not limited to, "may," "will," "should," "intend," "expect," "plan," "anticipate," "believe," "estimate," "predict," "potential," "goal," or "continue" or the negative of such terms or other comparable terminology. More information on these risks and other potential factors that could affect the Company's business and financial results is included in the Company's filings with the Securities and Exchange Commission, including in the "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of the Company's most recently filed periodic reports on Form 10-K and Form 10-Q and subsequent filings. The Company assumes no obligation to update any forward-looking statements or information, which speak as of their respective dates. DXP ENTERPRISES, INC. AND SUBSIDIARIESUNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS($ thousands, except share amounts) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Sales $ 498,682 $ 445,556 $ 975,251 $ 858,191 Cost of sales 340,869 307,763 667,173 596,516 Gross profit 157,813 137,793 308,078 261,675 Selling, general and administrative expenses 111,827 100,441 221,577 195,192 Income from operations 45,986 37,352 86,501 66,483 Interest expense 14,744 15,384 29,404 30,928 Other income, net (354 ) (1,035 ) (1,672 ) (3,004 ) Income before income taxes 31,596 23,003 58,769 38,559 Provision for income taxes 7,984 6,310 14,568 10,534 Net income 23,612 16,693 44,201 28,025 Preferred stock dividend 22 22 45 45 Net income attributable to common shareholders $ 23,590 $ 16,671 $ 44,156 $ 27,980 Net income $ 23,612 $ 16,693 $ 44,201 $ 28,025 Foreign currency translation adjustments 2,563 93 2,649 (521 ) Comprehensive income $ 26,175 $ 16,786 $ 46,850 $ 27,504 Earnings per share: Basic $ 1.50 $ 1.05 $ 2.81 $ 1.75 Diluted $ 1.43 $ 1.00 $ 2.67 $ 1.66 Weighted average common shares outstanding: Basic 15,694 15,868 15,696 15,998 Diluted 16,534 16,708 16,536 16,838 DXP ENTERPRISES, INC. AND SUBSIDIARIESUNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS($ thousands, except share amounts) June 30, 2025 December 31, 2024 ASSETS Current assets: Cash $ 112,930 $ 148,320 Restricted cash — 91 Accounts receivable, net of allowance of $3,665 and $5,172, respectively 361,393 339,365 Inventories 110,758 103,113 Costs and estimated profits in excess of billings 57,260 50,735 Prepaid expenses and other current assets 41,320 20,250 Total current assets 683,661 661,874 Property and equipment, net 107,207 81,556 Goodwill 461,298 452,343 Other intangible assets, net 78,485 85,679 Operating lease right of use assets, net 60,835 46,569 Other long-term assets 20,908 21,473 Total assets $ 1,412,394 $ 1,349,494 LIABILITIES AND EQUITY Current liabilities: Current maturities of debt $ 6,595 $ 6,595 Trade accounts payable 104,764 103,728 Accrued wages and benefits 37,449 41,650 Customer advances 16,018 13,655 Billings in excess of costs and estimated profits 22,906 12,662 Short-term operating lease liabilities 17,071 14,921 Other current liabilities 40,646 50,773 Total current liabilities 245,449 243,984 Long-term debt, net of unamortized debt issuance costs and discounts 620,239 621,684 Long-term operating lease liabilities 45,402 33,159 Other long-term liabilities 33,212 27,879 Total long-term liabilities 698,853 682,722 Total liabilities 944,302 926,706 Commitments and Contingencies Shareholders' equity: Series A preferred stock, $1.00 par value; 1,000,000 shares authorized 1 1 Series B preferred stock, $1.00 par value; 1,000,000 shares authorized 15 15 Common stock, $0.01 par value, 100,000,000 shares authorized; 20,401,857 issued and 15,694,084 outstanding at June 30, 2025 and 20,402,861 issued and 15,695,088 outstanding at December 31, 2024 204 204 Additional paid-in capital 217,982 219,511 Retained earnings 433,826 389,670 Accumulated other comprehensive loss (30,961 ) (33,610 ) Treasury stock, at cost 4,707,773 and 4,707,773 shares, respectively (152,975 ) (153,003 ) Total DXP Enterprises, Inc. equity 468,092 422,788 Total liabilities and equity $ 1,412,394 $ 1,349,494 SEGMENT DATA($ thousands, unaudited) Three Months Ended June 30, Six Months Ended June 30, Sales 2025 2024 2025 2024 Service Centers $ 339,731 $ 306,516 $ 666,806 $ 594,952 Innovative Pumping Solutions 93,540 73,377 179,722 135,592 Supply Chain Services 65,411 65,663 128,723 127,647 Total Sales $ 498,682 $ 445,556 $ 975,251 $ 858,191 Three Months Ended June 30, Six Months Ended June 30, Operating Income 2025 2024 2025 2024 Service Centers $ 50,171 $ 43,855 $ 97,215 $ 84,175 Innovative Pumping Solutions 18,642 13,366 32,049 20,336 Supply Chain Services 5,229 5,823 10,792 11,085 Total Segments Operating Income $ 74,042 $ 63,044 $ 140,056 $ 115,596 RECONCILIATION OF OPERATING INCOME FOR REPORTABLE SEGMENTS($ thousands, unaudited) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Income from operations for reportable segments $ 74,042 $ 63,044 $ 140,056 $ 115,596 Adjustment for: Amortization of intangibles 5,327 4,719 10,684 9,088 Corporate expenses 22,729 20,973 42,871 40,025 Income from operations $ 45,986 $ 37,352 $ 86,501 $ 66,483 Interest expense 14,744 15,384 29,404 30,928 Other income, net (354 ) (1,035 ) (1,672 ) (3,004 ) Income before income taxes $ 31,596 $ 23,003 $ 58,769 $ 38,559 RECONCILIATION OF NON-GAAP FINANCIAL INFORMATION($ thousands, unaudited) We define and calculate EBITDA as Net income attributable to DXP Enterprises, Inc., plus interest, taxes, depreciation, and amortization. We define and calculate Adjusted EBITDA as Net income attributable to DXP Enterprises, Inc., plus interest, taxes, depreciation, and amortization minus stock-based compensation expense and all other non-cash charges, adjustments, and non-recurring items. We identify the impact of all other non-cash charges, adjustments and non-recurring items because we believe these items do not directly reflect our underlying operations. We define and calculate EBITDA Margin as EBITDA divided by sales. We define and calculate Adjusted EBITDA Margin as Adjusted EBITDA divided by sales. The following table sets forth the reconciliation of EBITDA, EBITDA Margin, Adjusted EBITDA and Adjusted EBITDA Margin to the most comparable U.S. GAAP financial measure (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Income before income taxes $ 31,596 $ 23,003 $ 58,769 $ 38,559 Plus: Interest expense 14,744 15,384 29,404 30,928 Plus: Depreciation and amortization 9,490 8,127 18,624 15,665 EBITDA $ 55,830 $ 46,514 $ 106,797 $ 85,152 Plus: other non-recurring items(1) — 500 235 1,342 Plus: stock compensation expense 1,483 1,212 2,800 2,076 Adjusted EBITDA $ 57,313 $ 48,226 $ 109,832 $ 88,570 Operating Income Margin 9.2 % 8.4 % 8.9 % 7.7 % Net Income Margin 4.7 % 3.7 % 4.5 % 3.3 % EBITDA Margin 11.2 % 10.4 % 11.0 % 9.9 % Adjusted EBITDA Margin 11.5 % 10.8 % 11.3 % 10.3 % (1) Other non-recurring items includes unique acquisition integration costs and other non-cash, non-recurring costs not related to continuing business operations. We define and calculate organic sales to include locations and acquisitions under our ownership for at least twelve months. "Acquisition Sales" are sales from acquisitions that have been under our ownership for less than twelve months and are excluded in our calculation of Organic Sales. "Business Days" are days of the week, excluding Saturdays, Sundays, and holidays, that our locations are open during the year. Depending on the location and the season, our branches may be open on Saturdays and Sundays; however, for consistency, those days have been excluded from the calculation of Business Days. We define and calculate Sales per Business Day as sales divided by the number of Business Days in the relevant reporting period. We define and calculate Organic Sales per Business Day as Organic Sales divided by the number of Business Days in the relevant reporting period. The following table sets forth the reconciliation of Acquisition Sales, Organic Sales and Organic Sales per Business Day to the most comparable U.S. GAAP financial measure (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Sales by Business Segment Service Centers $ 339,731 $ 306,516 $ 666,806 $ 594,952 Innovative Pumping Solutions 93,540 73,377 179,722 135,592 Supply Chain Services 65,411 65,663 128,723 127,647 Total DXP Sales $ 498,682 $ 445,556 $ 975,251 $ 858,191 Acquisition Sales $ 24,605 $ 23,403 $ 55,717 $ 35,178 Organic Sales $ 474,077 $ 422,153 $ 919,534 $ 823,013 Business Days 63 64 126 127 Sales per Business Day $ 7,916 $ 6,962 $ 7,740 $ 6,757 Organic Sales per Business Day $ 7,525 $ 6,596 $ 7,298 $ 6,480 We define and calculate free cash flow as net cash (used in) provided by operating activities less purchases of property and equipment. The following table sets forth the reconciliation of Free Cash Flow to the most comparable GAAP financial measure (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Net cash from operating activities $ 18,646 $ 14,735 $ 21,619 $ 41,724 Less: purchases of property and equipment (10,346 ) (8,825 ) (30,260 ) (11,719 ) Free Cash Flow $ 8,300 $ 5,910 $ (8,641 ) $ 30,005 View source version on Contacts Kent YeeSenior Vice President,
Forbes
3 hours ago
- Forbes
Big-Box Retailing Tycoon's Wealth Takes A Hit As Filipinos Skimp On Home Improvement
William Belo. Wilcon Depot This story is part of Forbes' coverage of Philippines' Richest 2025. See the full list here . Home improvement tycoon William Belo's net worth slumped over 40% to $520 million as shares of his big-box retailer Wilcon Depot sank to an eight-year low in April amid sluggish demand. In the first quarter, the company had net income of 536 million pesos ($9.5 million), down 28% year-on-year partly due to the cost of new store openings, while sales edged up to 8.4 billion pesos. Belo's daughter Lorraine Belo-Cincochan, the company's president and chief executive, said in a May statement that a sales surge during the Easter period made her hopeful that demand would pick up later this year. New stores are also seeing increased footfall, she added. The company opened its 100th store at the end of 2024 and plans to add eight more this year. While falling interest rates and easing inflation may suggest that demand for home improvement products could revive, a June report by J.P. Morgan Asia Pacific Equity Research cautions that consumer confidence about splurging on big-ticket items could take a while to return. Moreover, the report cites intense competition from smaller stores that stock cheap Chinese goods as another drag that Wilcon must contend with.
