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: Anthony Lebiedzinski - Sidoti & Company - Analyst
: Thank you and good morning, everyone. And yeah, thanks for taking the questions. So, it's really great to see the progress with the inventory
reductions and great to hear also about the success of the new products.
So, I guess, first, how does the pipeline look like for new products without you guys sharing too much of the secret sauce? But the -- just wondering
how do we think about the new product introductions in the upcoming quarters?
Question: Anthony Lebiedzinski - Sidoti & Company - Analyst
: Understood. Okay, thank you. So given what's happening here in the world as far as to just dealing with the tariffs and consumer confidence, kind
of where it is, just that -- understanding that you guys have a seasonal business.
But just wondering if you guys could talk about the trends during the quarter whether there were big changes from January to March and like
maybe, if you look at it on a year-to-year basis, I know for the quarter your sales were down about 4%. But, did you just wondering if there was
significant changes variability for on a year-over-year basis as you progress to the quarter, given what's happening out there?
Question: Anthony Lebiedzinski - Sidoti & Company - Analyst
: Yes.
Question: Anthony Lebiedzinski - Sidoti & Company - Analyst
: Understood. Okay. Yeah. Thanks, Helen. Okay. And then, just wondering, so since the new tariffs were announced on April 2, obviously, there's
been some back and forth, some changes. Just wondering if you've seen any notable change since then in terms of your ordering patterns from
retailers, what's been the response, curious to get your at least high level thoughts on that?
Question: Anthony Lebiedzinski - Sidoti & Company - Analyst
: Thanks, Dave. And then, so just thinking about the impact of tariffs, so just maybe, first, if you could address how much you guys have exposure
to China, which is getting hit the hardest in terms of the tariff rates?
And then, you just had to -- how do we think about like the response from you whether I know you guys talked about potential pricing actions, so
it's not -- those have not yet been implemented, but just maybe walk us through, your China and other countries' exposure? Just rough estimates
and then, how do you respond to that and just would love to hear your thoughts on that?
Question: Anthony Lebiedzinski - Sidoti & Company - Analyst
: Thanks, Dave. Okay. And then, just following up, as far as, the quarter that you reported. So part of the gross margin puts and takes, where the -- I
guess on the negative side, the discounting on the positive side of the cost savings program.
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So yeah, can you provide any more details as to how much you suffer from those things? The mag -- just wanted to understand the magnitude of
that, especially this cost savings program and whether, there's still more to be realized from the cost savings as we look towards the key summer
months here.
Question: Anthony Lebiedzinski - Sidoti & Company - Analyst
: Gotcha. Okay. So, do you think it could be more than that 1 to 2 points of gross margin when you're done with this cost savings program?
Question: Anthony Lebiedzinski - Sidoti & Company - Analyst
: Understood. Okay. Okay. And then lastly for me, it looks like the tax rate in the quarter was unusually high. Can you comment on what happened
there and what is your outlook for the fiscal year?
Question: Anthony Lebiedzinski - Sidoti & Company - Analyst
: Understood. Okay. Well, thank you very much and best of luck, dealing with this crazy world here.
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