Revenue Performance: Q2 revenue of $474.2 million reflects a decline of 3.5% YoY, yet a solid 13.8% increase QoQ. The decrease is mainly due to lower sales in Beauty & Wellness.
Gross Profit: $216.1 million with a margin of 45.6%, down from last year’s 46.7%, indicating pressure on profitability primarily due to unfavorable product mix and inventory obsolescence.
Operating Income: $34.9 million or 7.3% margin, significantly down from 9.5% in the prior year, demonstrating the operational challenges faced during the quarter.
Net Income: $17.0 million, or $0.74 per share, presenting a stark drop in net profitability declining by 37.9% YoY. Non-GAAP adjusted EPS stands at $1.21.
Cash Flow and Debt: Generated free cash flow of $39.7 million, showing a healthy generation despite needs for working capital. Total debt decreased by $35 million to $713 million, providing a net leverage ratio of 2.34x.