Latest news with #inventorymanagement
CNA
11-05-2025
- Business
- CNA
Singapore restaurants already hit by price, supply fluctuations thanks to US tariffs
Some restaurants in Singapore are already seeing price and supply fluctuations, more than a month after the US announced widespread tariffs. To adapt, they have had to manage orders and inventory more carefully. This includes menu engineering, making orders fewer times a week, and making sure every ingredient gets used to its fullest. Caitlin Ng with more.
Yahoo
09-05-2025
- Business
- Yahoo
Leslies Inc (LESL) Q2 2025 Earnings Call Highlights: Navigating Challenges with Strategic ...
Sales: $177.1 million, down from $188.7 million in the prior year. Gross Profit: $43.9 million, compared to $54.3 million in the prior year. Gross Margin: 24.8%, down from 28.8% in the prior year. SG&A Expenses: $92.3 million, up from $84.9 million in the prior year. Adjusted EBITDA: Loss of $36 million. Inventory Reduction: 12% decrease year-over-year, ending at $335.1 million. Pro Sales Improvement: 700 basis point improvement from a 9% decline in the prior year. Conversion Rate Improvement: Increased by 174 basis points year-over-year. Inventory Turns: Improved by 8% year-over-year. Debt Reduction: $27 million reduction in secured term loan, now at $756.7 million. Revolving Credit Facility: $101.5 million outstanding, expected to be repaid in full during the third quarter. Capital Expenditure Reduction: Reduced by $5 million, now expected to be $30 to $35 million for the year. Warning! GuruFocus has detected 8 Warning Signs with LESL. Release Date: May 08, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Leslies Inc (NASDAQ:LESL) achieved a 174 basis point improvement in conversion rates, attributed to enhanced in-stock levels and team expertise. The company successfully launched 26 Local Fulfillment Centers (LFCs) on time and under budget, improving inventory management and customer service. Leslies Inc (NASDAQ:LESL) introduced a new loyalty program with tiered benefits, aiming to increase customer engagement and retention. The partnership with Uber for same-day delivery is expected to enhance customer convenience and optimize asset utilization. Pro sales showed a 700 basis point improvement year over year, indicating strong momentum in the professional segment. Sales declined by 6% year over year, primarily due to weaker foot traffic and colder temperatures affecting demand. Gross margin decreased from 28.8% to 24.8%, impacted by increased distribution center and occupancy costs, as well as mix and volume challenges. SG&A expenses rose to 52.1% of net sales, driven by higher labor costs and executive transition expenses. The company reported an adjusted EBITDA loss of $36 million for the quarter, reflecting ongoing financial challenges. Leslies Inc (NASDAQ:LESL) faces tariff exposure estimated at $10 to $12 million annually, which could impact product costs. Q: Can you provide context on Leslie's competitive landscape and market share performance this quarter? A: Jason McDonell, CEO, explained that the quarter's top-line performance was impacted by weather, particularly in January and February. While specific market share numbers are not available due to varied competition across product categories, Leslie's is making significant progress in the pro segment, suggesting a gaining share position. The company is focusing on engaging both pro and DIY customers through initiatives like improved in-stock rates, enhanced mobile app features, and new marketing programs. Q: Could you expand on the strategic pricing increases mentioned, and how they relate to tariffs? A: Tony Iskander, Interim CFO, stated that pricing adjustments will only be made to offset tariff impacts, which represent less than 1% of total sales. Therefore, significant pricing changes are not anticipated. Q: Aside from weather, are there other factors contributing to the comp weakness in Q2? A: Jason McDonell noted that weather was a significant factor, but the company is seeing positive trends in conversion rates, which improved by 174 basis points. This improvement is attributed to better in-stock rates and the expertise of team members, particularly after water tests. Q: How is Leslie's planning for inventory purchases in the second half of 2025, given past slow starts to spring? A: Jason McDonell emphasized a precision inventory mindset, focusing on optimizing inventory levels to improve working capital and reduce debt. Tony Iskander added that inventory optimization will help mitigate tariff impacts by utilizing existing stock. Q: Can you discuss the cost optimization pillar and its impact on the expense ratio? A: Tony Iskander highlighted that the cost optimization pillar focuses on indirect procurement costs, with expected savings of $5 to $10 million. The company is also evaluating asset utilization for further cost efficiencies. Jason McDonell added that local fulfillment centers (LFCs) are helping drive cost efficiency and improve inventory management. Q: How does the partnership with Uber for same-day delivery fit into Leslie's strategy? A: Jason McDonell explained that the partnership with Uber aligns with the company's focus on customer centricity and convenience. It allows Leslie's to fulfill customer needs quickly, reducing delivery times from days to minutes or hours, while also providing cost savings by fulfilling orders locally. Q: What gives Leslie's confidence in reiterating its full-year sales outlook despite Q2 challenges? A: Jason McDonell noted that a significant portion of sales is still expected in the second half of the year. The company is optimistic due to improvements in conversion rates, the launch of new initiatives like the DIY loyalty program, and enhanced customer engagement strategies. Q: What factors contribute to the expected gross margin improvement in the second half of the year? A: Tony Iskander mentioned that the Q4 tailwind from rebate timing will benefit gross margins. Additionally, new initiatives focused on customer centricity and convenience are expected to positively impact margins, despite earlier challenges from mix and lower volume. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Associated Press
07-05-2025
- Business
- Associated Press
Netstock's Tariff Impact Report Provides Proactive Strategies for SMB Resilience
BOSTON, May 07, 2025 (GLOBE NEWSWIRE) -- Netstock , a leader in supply chain planning solutions for small and medium-sized businesses (SMBs), today announced the release of its Tariff Impact Report 2025: 5 Proactive Strategies for SMBs . Developed in collaboration with trusted supply chain expert Lora Cecere, Founder of Supply Chain Insights , the report analyzes the challenges posed by the dynamic tariff landscape and offers five actionable strategies to help SMBs navigate these complexities. 'The Tariff Impact Report emphasizes the critical need for SMBs to embrace inventory management solutions—made smarter by AI and powered by real-time analytics,' said Ara Ohanian, CEO of Netstock. 'In today's unpredictable tariff environment, these tools are not just for optimization—they are fundamental for survival. Relying on excel-based quarterly planning isn't enough in this volatile landscape. SMBs need daily, AI-driven insights to effectively adapt.' The current climate of new and unpredictable tariffs generates significant uncertainty for businesses. For SMBs, maintaining flexibility and preparedness amidst this volatility is particularly challenging. To gain a deeper understanding of how SMBs are responding, Netstock surveyed over 120 of its customers, representing American SMBs with revenues under $500 million. 'For small and medium manufacturers, historical data offers limited guidance,' said Lora Cecere, Founder of Supply Chain Insights. 'Instead, companies should evolve to use market data using AI-powered advanced analytics.' Drawing on the survey data and expert insights, the Tariff Impact Report 2025 identifies five key areas where businesses can take proactive steps to mitigate tariff-related challenges. Use analytics to be proactive in the management of cross-border trade in the environment of increased tariffs. Netstock's survey found that only 12% of SMBs are relying heavily on analytics during this dramatic shift in supply chain management. Traditional methods will struggle in the new supply chain environment. Aggressive analytics are essential for SMBs to manage costs and build resilience. Nearshoring as an option. Only 15% of SMB respondents claimed they could easily reshore operations. For SMBs where nearshoring isn't viable, the key to navigating tariff volatility lies in leveraging visual and descriptive analytics, coupled with supply chain planning decision support. Cross-functional analysis of trade-offs, informed by logistics and transportation data, becomes critical for making proactive and effective choices. The impact on inventory. With over half of SMBs anticipating tariff-driven cost increases for the majority of their inventory, inventory planning technologies are crucial. Enhancing demand forecasting with Forecast Value Add (FVA) and using actual lead times for safety stock calculations are vital for mitigating longer lead times and potential shortages. Impacts will not just be on supply. Demand will change as well. Tariffs will significantly impact consumer demand and sentiment, leading to potential shifts in purchasing behavior. SMBs must prioritize channel data in demand planning and focus on FVA, recognizing that historical demand patterns will be less reliable. Expect the unexpected. The unprecedented impact of tariffs means there's no existing playbook to follow and Netstock's survey reveals that only 22% of SMBs have successfully implemented strategies to manage tariffs. Organizations must become highly proactive, fostering internal cooperation and building adaptability to navigate continuously evolving market conditions. The Netstock Tariff Impact Report 2025 is now available at [ Tariff Impact Report 2025: 5 Proactive Strategies for SMBs ]. About Netstock Netstock is a global leader in inventory optimization and supply chain planning software for SMBs. With over 2,400 customers in 67 countries, Netstock's AI-driven solutions help businesses streamline operations, improve forecasting, and optimize inventory to meet market demands. From automated recommendations to actionable insights, Netstock enables companies to enhance decision-making, reduce costs, and improve overall supply chain efficiency. Visit to learn more. Contact: [email protected]
