RMCF Q4 2026 Earnings Call Transcript

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Date

Tuesday, June 2, 2026 astatine 9 a.m. ET

Call participants

• Chief Executive Officer — Jeffrey Richart Geygan

• Chief Financial Officer — Carrie E. Cass

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Full Conference Call Transcript

Jeffrey Richart Geygan: Thank you, and bully morning, everyone. Before I get into our broader concern discussion, I privation to code our fiscal 4th quarter. The results fell abbreviated of what we acceptable retired to execute and accountability for that rests with me. The superior contented driving this shortfall was our packaged merchandise assortment determination that did not align with our impermanent expectation. Particularly with our boxed offerings. We leaned excessively heavy into larger format boxes and a premix of ample and upland sized pieces of candy that retrospectively did not align with impermanent preferences. That impacted gross having an outsized effect connected profitability.

For reference, our lowest borderline income are ingredients, followed by supplies, past bulk candy, and finally, our champion borderline point is simply a packaged product. Package income for the 4th were astir $1.5 cardinal beneath expectations affecting store sales, and disproportionately impacting our ecommerce concern which is mostly made up of packaged product. Since twelvemonth end, we person conducted extended user probe involving much than 1 1000 participants which has provided america with a clearer knowing of wherever our packaged assortment strategy missed the mark. Current feedback points to request for greater assortment variety, much tiny portion format offerings, and a premix of items including caramels, nuts, creams, toffee, coagulated molded chocolates, and meltaways.

We are addressing this concern present and expect to person a afloat lineup of reconfigured packaged items connected store shelves by Labor Day. Our offerings volition see 34, 6, and 4 portion sized assortments. Boxes volition beryllium slimmed down, and usage insubstantial cups alternatively of integrative trays allowing greater merchandise flexibility and velocity of change. We judge our updated container configuration and related contented enactment are amended aligned with however stores and online guests privation to beryllium served with this item. We volition beryllium utilizing cupful benignant packaging which we judge volition amended presentation, trim accumulation and packaging costs, and little our terms points to amended competitory positioning portion driving greater income volumes.

The 4th was besides impacted by respective different factors, astir of which were impermanent oregon onetime successful nature. For example, we deliberately exited from a specialty markets lawsuit narration with a antagonistic borderline offering This impacted gross by astir $1.5 million. To circular it out, we besides experienced impermanent disruptions related to our ecommerce transition, incurred costs associated with disposing of supplies of outdated packaging, and faced an elevated level of nonrecreational work fees each of which impacted 4th fourth results. While these items created adjacent word pressure, they bash not alteration our agelong word strategical view. Our concern translation remains intact, and connected track.