In our view, macroeconomic and tariff uncertainties were the main catalysts for LCUT's 3% year-over-year revenue decline to $137.4 million in 2Q:25. Assuming some operating margin pressure as well, partly offset by an expected tax benefit, we estimate a loss of $0.17 per share compared to a loss of $0.03 per share in 2Q:24. We think the rest of 2025 will be similarly pressured, though likely smaller losses in the international segment will be a partial offset, in our view. Hence, we estimate that EPS in 2025 will drop to $0.14 from $0.58 in 2024. Assuming improved clarity about tariffs, a better macroeconomic landscape and benefits from a few internal initiatives, we estimate EPS will rebound to $0.55 in 2026. Our moderate risk rating factors in our expectation for an earnings recovery in 2026 and healthy free cash flow prospects.