The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Brian Gordon - Water Tower Research - Analyst
: Hey, good morning, everyone. First of all, thanks. Thanks for taking my questions. Certainly a challenging quarter. I my first question is on the
sequential improvement that we saw in the mattress industry. I think it's pretty impressive given the current industry headwind. Is it right to think
that you guys are gaining share in this business? And what do you, what do you attribute the strong order growth here? Yeah.
Question: Brian Gordon - Water Tower Research - Analyst
: Oh, okay. Ju just to follow up. So do you see that positive momentum, going through Q3, Q.
Question: Brian Gordon - Water Tower Research - Analyst
: Excellent. So my next question is on the upholstery side of the business. I mean, I would say that the contraction that we did see while it was
potentially unexpecteds, it's definitely not surprising given, you know what's happening in the industry overall. My question though would be how
much of the change that you guys saw is a reflection of the underlying demand versus your customers just being more conservative and how
they're building inventories for 2025. And do you have any insight into what that Delta might be between the inventory build and the end demand
dynamics?
Question: Brian Gordon - Water Tower Research - Analyst
: That's, that's, that's good to hear. Yeah, certainly that, that's good to hear. I, if I could pivot just very quickly though to the contract and hospitality
side that, on a relative basis, was, was an out performer, could you maybe break down the difference between what's happening on the office side
versus the hospitality side?
Question: Brian Gordon - Water Tower Research - Analyst
: Great. Thank you.
Question: Brian Gordon - Water Tower Research - Analyst
: No, thank you. I think I think that's a good point to note. The next question, if I may maybe more of a question for Ken, there's obviously a lot of
moving parts with the with the restructuring. I was hoping that maybe we could get a little bit more insight into what the economics of the mattress
business is going to look like when we move through the current restructuring, kind of more specifically how should investors be thinking about
what the break even point for this segment could be? And then you know what the contribution margins look like on the other end of this.
Question: Brian Gordon - Water Tower Research - Analyst
: Yeah, I would agree with that. I think as I look at, you know, the model of the potential for, really, significant operating leverage moving forward
is, is probably what I am most focused on. So definitely, thanks for that. II have one kind of final question. And, and this is, you know, probably more
for you. How concerned are you about the potential for increased tariffs under the new administration? And what are, what's the set of options
that you guys have at the ready to respond to, any potential changes that you see on that front?
Question: Brian Gordon - Water Tower Research - Analyst
: Great, great. Thank. Thank you, everyone. And best of luck for the third quarter and we'll, we'll be speaking again soon.
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