Tom Russo's Trades and Holdings in Q1 2025

Breaking down the stocks Tom Russo (Gardner Russo & Quinn) bought, sold, and held in Q1 2025, including their holdings at the end of the quarter. All data sourced from Gardner Russo & Quinn's 13F filed on May 13, 2025.

Who are Tom Russo and Gardner Russo & Quinn?

Tom Russo is the founder and managing member of Gardner Russo & Quinn LLC (commonly referred to as GRQ). The firm is known for its concentrated portfolio, typically consisting of around 85 positions with the top 10 holdings comprising approximately 80% of assets, reflecting a focus on a core group of long-held, high-conviction investments with low annual turnover (averaging around 5.5%). His investment strategy is a global value investing approach inspired by Warren Buffett's principles, emphasizing companies with the "capacity to reinvest" and "capacity to suffer" — meaning they can endure short-term earnings pressures to compound intrinsic value at high rates over decades through strategic reinvestments. Russo focuses on underfollowed or undervalued global brands, often family-controlled, that expand into large addressable markets, with strong qualitative factors like pricing power, indispensable products, high returns on invested capital, reinvestment opportunities in emerging economies, and low agency costs.

Q1 '25 13F filed with SEC

Holdings in Q1 2025

Current Investment Strategy

Gardner Russo & Quinn's Tom Russo maintained his concentrated global value approach in Q1 2025, with the top 10 holdings comprising approximately 80% of the $8.9 billion portfolio anchored by long-held positions in AbbVie, Lindt & Spruengli, and Abbott, while selectively initiating small positions in consumer and hospitality brands including Hyatt Hotels, Herc Holdings, H&M, Yeti, and SSP Group. The firm exited legacy consumer holdings Mondelez and Richemont during the quarter, reflecting Russo's patient, low-turnover strategy of investing in family-controlled businesses with pricing power and the capacity to reinvest through economic cycles.

New Investments

Hyatt Hotels H

Tom Russo bought $1.43M of Hyatt Hotels in Q1 2025. Hyatt experienced paradoxical Q3 2025 results with revenue climbing 9.6% year-over-year to $1.79 billion, yet earnings collapsed as the company swung to a $49 million net loss compared to prior-year profitability. The stock significantly underperformed Wall Street expectations, missing EPS consensus by 161.22%, highlighting mounting margin pressures despite strong 7.6% Net Package RevPAR growth. Recent announcements of increased capital returns (~$350 million) and a new $1.5 billion credit facility provide financial flexibility, though investors remain concerned about sustaining profitability as upscale segment demand softens.

• Revenue increased 9.6% year-over-year to $1.79 billion in Q3 2025, but earnings swung from $0.94 EPS to -$0.30 EPS.
• Company missed EPS estimate by 161.22% and revenue estimate by 2.54%, signaling severe profitability challenges.
• Net Package RevPAR increased 7.6% in Q3, demonstrating fundamental demand strength despite margin compression.

Herc HRI

Tom Russo bought $1.27M of Herc in Q1 2025. Herc delivered strong top-line growth in Q3 2025, with revenues up 35% year-over-year to $1.30 billion and adjusted EBITDA rising 24% to $551 million, beating revenue expectations despite a challenging year for the equity. The company's stock has declined 29.6% year-to-date, significantly underperforming the S&P 500's 16.9% gain, reflecting investor concerns over declining net income, elevated debt at 3.8x net leverage, and H&E Equipment Services integration risks. Management reaffirmed full-year guidance and completed the H&E technology integration along with the Cinelease divestiture for $100 million in cash, providing confidence in operational execution despite near-term margin pressures and profitability challenges.

• Q3 adjusted EPS of $2.22 beat consensus estimates by 21.31%, though full-year revenue guidance of $3.8 billion missed analyst expectations by 14.2%.
• Equipment rental revenue grew 30% year-over-year to $1,122 million, with adjusted EBITDA margin strong at 42.3%.
• Free cash flow margin improved 360 basis points to 10.9% despite operating margins compressing 230 basis points from 23.7% to 21.4% year-over-year.

H&M HMSB.DE

Tom Russo bought $1.16M of H&M in Q1 2025. H&M demonstrated strong operational momentum in Q3 2025 with 40% operating profit growth to SEK 4.91bn, delivering 270 basis points of operating margin expansion despite ongoing strategic store portfolio optimization. The company achieved this through meaningful margin expansion—with gross margins reaching 52.9% (up 180 basis points) and selling/administrative expenses falling 5%—while underlying sales grew 2% in local currencies. The successful August launch in Brazil, improved customer offerings, and strengthening competitive positioning signal operational inflection, though near-term performance may face headwinds from rising tariffs.

• Operating profit jumped 40% to SEK 4.91bn in Q3 2025 with EPS reaching SEK 2.01 per share, representing 40% year-over-year growth.
• Operating margin expanded 270 basis points to 8.6%, driven by 180 basis point improvement in gross margin to 52.9% and a 5% reduction in selling and administrative expenses.
• Cash flow from operating activities increased 22% to SEK 9.98bn, reflecting improved working capital management from lower inventory and successful execution of the store optimization strategy.

Yeti YETI

Tom Russo bought $1.08M of Yeti in Q1 2025. Yeti delivered $487.77 million in Q3 2025 revenue, representing 2% year-over-year growth and surpassing consensus estimates by 1.85%, though profitability contracted with EPS declining to $0.61 from $0.71 a year ago and $0.66 last quarter. The company beat earnings expectations by 7.02%, driven by double-digit growth in Coolers & Equipment and 14% international growth, signaling strength in core segments despite margin compression. The stock has significantly underperformed the market, declining 13.3% year-to-date versus the S&P 500's 15.6% gain, reflecting investor caution about the deteriorating earnings trajectory.

• EPS declined 14% year-over-year to $0.61 and contracted 7.6% sequentially from $0.66 in Q2 2025.
• Revenue grew 2% YoY to $487.77 million with consensus beat of 1.85%, driven by double-digit Coolers & Equipment growth and 14% international segment increase.
• Stock underperformed market by approximately 29% (down 13.3% YTD versus S&P 500's 15.6% gain).

SSP Group SSPG.L

Tom Russo bought $1.06M of SSP Group in Q1 2025. SSP Group demonstrated strong operational momentum in FY24, with revenue reaching £3,433m (+17% YoY) and EBITDA surging +28% to £343m, reflecting robust recovery in travel-related food and beverage demand post-pandemic. The company improved profitability significantly, with net income more than tripling to £27.4m and EPS nearly tripling to £0.03, while maintaining healthy free cash flow of £175.25m. The stock has recovered from its 52-week low of 135.00 GBp to trade near 161.00 GBp, though underlying profitability remains constrained relative to debt levels, with a debt-to-equity ratio of 7.15x.

• Revenue growth accelerated 17% YoY in FY24 to £3,433m, with EBITDA expanding 28% to £343m driven by recovery in airport and travel hub locations.
• EPS improved 200% from £0.01 to £0.034 in FY24, while free cash flow per share reached 0.3349 GBp reflecting operational cash generation strength.
• Stock up 19% from 52-week lows at 135.00 GBp to current 161.00 GBp, though forward valuations remain elevated at 1,202x P/E given profitability constraints.

Levi Strauss LEVI

Tom Russo bought $1.06M of Levi Strauss in Q1 2025. Levi Strauss delivered a strong third quarter with $1.54 billion in net revenues and 34 cents in adjusted EPS, both beating consensus estimates and demonstrating solid underlying business momentum despite a challenging retail environment. The company raised its full-year fiscal 2025 revenue guidance to approximately 3% growth from prior guidance of 1-2%, driven by resilient pricing power, robust Direct-to-Consumer performance, and international strength that has now delivered positive comps for the 14th consecutive quarter. With a compelling 14.17x P/E ratio and analyst consensus rating of Strong Buy, the stock's 63.1% rally over three months reflects investor confidence in the company's ability to navigate tariff headwinds through operational excellence and brand momentum.

• EPS beat by 9.7% at 34 cents versus 31 cents estimate, with 110 basis points of gross margin expansion offsetting tariff headwinds.
• Net revenue growth of 7% year-over-year with 6.9% organic growth; Direct-to-Consumer accelerating at 11.3% with e-commerce up 18%.
• Stock price target of $26.25 implies 22.55% upside potential, with analyst consensus rating Strong Buy and trailing twelve-month EPS of $1.51.

Generac GNRC

Tom Russo bought $1.04M of Generac in Q1 2025. Q3 2025 results disappointed with revenue down 5% to $1.11 billion and net income plummeting 41.5% to $66 million, primarily due to weak residential demand falling 13% amid below-average outage activity. Commercial & Industrial partially offset with 9% growth, while data center generator backlog doubled signaling future opportunity. Management's flat full-year revenue guidance with adjusted EBITDA margins around 17% suggests the company expects cyclical stabilization.

• EPS declined 40.3% year-over-year; net income fell to $66 million.
• Residential segment contracted 13% to $627 million; C&I grew 9% to $358 million.
• Data center backlog doubled; stock fell ~9% following earnings release.

Fielmann FIE.DE

Tom Russo bought $1.01M of Fielmann in Q1 2025. Fielmann delivered 9% consolidated sales growth through the first nine months of 2025, reaching €1,842 million, with particularly strong momentum in its US operations following the Shopko Optical integration, though Q3 results missed analyst expectations by 2-3% on sales and 7-8% on EBITDA. Despite the quarterly miss, the company maintains robust European profitability margins of 24.8% and reaffirmed full-year guidance of approximately €2.5 billion in sales with ~24-25% EBITDA margins, positioning it to exceed its Vision 2025 objectives announced in 2019. The earnings shortfall was primarily driven by North American margin compression as the company completes its retail concept transformation in the US market, though organic growth of 4% across both Europe and North America in Q3 signals underlying business health.

• Adjusted EBITDA margin expanded to 24.8% in Europe for 9M 2025, up 170 basis points from 23.1% in the prior year period.
• Consolidated sales grew 9% YoY through 9M 2025 to €1,842 million, with US market surging 69% due to successful Shopko Optical integration.
• Q3 organic growth reached 4% in both European and North American markets, though total sales of €620 million fell 2-3% short of consensus estimates.

Warby Parker WRBY

Tom Russo bought $941.58K of Warby Parker in Q1 2025. Warby Parker delivered a strong Q3 2025 with 15.2% year-over-year revenue growth to $221.7 million and 9.3% customer growth to 2.66 million active customers, demonstrating acceleration in both topline and customer metrics. The company meaningfully expanded profitability, with adjusted EBITDA margin increasing 2.6 points to 11.6% and net income improving $9.9 million year-over-year, reflecting operational discipline despite the stock declining 11.29% post-earnings due to slight misses on revenue and EPS expectations. Strategic partnerships with Google and Samsung for AI-powered smart glasses, combined with a major optical lab system upgrade and 45 new store openings planned for 2025, position the company for continued market share gains in the $68 billion U.S. eyewear market.

• Q3 net revenue increased 15.2% YoY to $221.7 million with net income improving $9.9 million year-over-year.
• Active customers grew 9.3% to 2.66 million on a trailing 12-month basis with average revenue per customer up 4.8% to $320.
• Adjusted EBITDA margin expanded 2.6 points to 11.6% with full-year 2025 guidance raised to $871-874 million revenue (13% growth).

Ralph Lauren RL

Tom Russo bought $905.03K of Ralph Lauren in Q1 2025. Ralph Lauren delivered exceptional Q3 results with revenue of $2.01 billion representing 16.5% year-over-year growth and beating analyst expectations by 6.5%. Adjusted EPS of $3.79 exceeded consensus by 10%, while adjusted operating margin expanded 230 basis points to 18.7%, driven by favorable product mix and lower input costs. Strong execution across all geographies, particularly 30% growth in China and double-digit gains in each region, has prompted management to raise full-year guidance.

• Adjusted EPS grew 16% year-over-year to $3.79 per share, beating analyst estimates by 10%.
• Adjusted operating margin expanded 230 basis points to 18.7%, with gross margin up 200 basis points to 68.4%.
• Revenue growth of 16.5% YoY with double-digit gains across all regions; China sales surged 30% year-over-year.

John Bean Technologies JBT

Tom Russo bought $885.95K of John Bean Technologies in Q1 2025. JBT Marel delivered strong Q3 2025 results with revenue of $1.0 billion, exceeding consensus of $933.8 million by 7.1% and driving upward full-year 2025 guidance revisions. The company demonstrated operational excellence through robust supply chain efficiency and effective cost management, with a substantial backlog of $1.3 billion providing future revenue visibility. However, persistent financial health challenges including negative net margins of -5.08%, weak profitability metrics (Piotroski F-Score of 3), and distress-zone valuation (Altman Z-Score of 1.52) suggest market caution despite operational improvements.

• Q3 2025 revenue beat consensus estimates by 7.1% ($1.0B vs $933.8M forecast), with 49% of revenue from recurring services providing earnings stability.
• Backlog expanded to $1.3 billion with quarterly orders of $946 million, supporting revenue growth trajectory and visibility.
• Financial health concerns persist with net margin of -5.08%, operating margin of 3.42% below industry average, and Altman Z-Score of 1.52 signaling distress zone.

Rational RAA.DE

Tom Russo bought $805.69K of Rational in Q1 2025. Rational AG delivered solid Q3 2025 performance with 6% revenue growth to €312.0 million, accelerating from mid-year momentum and driving nine-month revenues to €918.2 million (+5% YoY). The company maintained strong profitability with an EBIT margin of 25.5% for the nine-month period, reaffirmed full-year guidance for mid-single-digit growth and 25-26% EBIT margins, resulting in a 7% stock price increase. Key drivers included robust European performance (particularly 18% growth in Germany) and strong iVario product momentum, though currency headwinds and softness in Asia offset some gains.

• Q3 2025 revenue increased 6% to €312 million, with nine-month total at €918.2 million representing 5% YoY growth..
• EBIT margin remained stable at 25.5% for the nine-month period, with Q3 reaching 25.9%, supported by gross margin of 58.7%..
• iVario product group expanded 11% over nine months and 16% in Q3 2025, offsetting iCombi growth of 4% for nine months..

BP BP

Tom Russo bought $212.88K of BP in Q1 2025. BP delivered strong operational and financial performance in Q3 2025, demonstrating resilience in its integrated energy portfolio. The company generated $7.8 billion in operating cash flow and achieved $1.2 billion in profit attributable to shareholders, supported by improved upstream production and downstream refining efficiency, while maintaining a disciplined capital allocation strategy focused on shareholder returns and strategic divestments.

• Operating cash flow reached $7.8 billion in Q3 2025, with underlying replacement cost profit of $2.2 billion.
• Upstream segment production increased 3% with high plant reliability; downstream refining availability improved to 96.6%.
• Expected divestment proceeds to exceed $4 billion for 2025 and capital expenditure guidance set at approximately $14.5 billion annually.

Added, Trimmed, and Exited

Added

Tom Russo increased four existing positions during Q1 2025, led by Ashtead Group (AHT.L) with 796,643 additional shares, followed by meaningful additions to Uber (UBER) (+280,808 shares), Heineken Holding (HEIO.AS) (+279,676 shares), and DoorDash (DASH) (+123,534 shares).
What it means: Russo significantly increased exposure to equipment rental and on-demand platform businesses, sectors that align with his "capacity to reinvest" philosophy. The substantial add to Ashtead Group (now worth $295M) and the new $1.27M position in Herc (HRI) suggest conviction in the North American equipment rental market's long-term growth trajectory. The continued accumulation of Uber and DoorDash, which delivered 28.96% and 29.04% returns respectively since last quarter, indicates confidence in the network effects and margin expansion potential of platform businesses despite their relatively higher valuations. The add to Heineken Holding (up 24.93%) reinforces his long-standing thesis on global beer brands' pricing power in emerging markets.

Trimmed

Gardner Russo & Quinn reduced 16 existing holdings, with notable trims to Alphabet (GOOG) (-529,330 shares, down 25.67% in value), Richemont (CFR.SW) (-432,893 shares), Campari (-344,380 shares, down 61.92%), JPMorgan (JPM) (-218,355 shares), payment processors Mastercard (MA) (-168,290 shares) and Visa (V) (-73,995 shares, down 29.19%), and spirits producers Pernod Ricard (-156,087 shares), Brown-Forman (BF-A) (-143,998 shares), and Wells Fargo (WFC) (-130,655 shares, down 66.79%).
What it means: The portfolio rebalancing reveals a strategic rotation away from underperforming luxury and spirits holdings—Campari (-61.92%), Pernod Ricard (-17.15%), and Brown-Forman (-17.54%)—likely reflecting concerns about tariff headwinds, China demand weakness, and margin pressures in the premium alcohol category. The significant reduction in Wells Fargo (down 66.79%) and trim to JPMorgan suggests less conviction in traditional banking models amid an uncertain interest rate environment. The paring of mega-cap technology positions (Alphabet, Netflix, Mastercard, Visa) appears to be profit-taking or loss-harvesting to fund new opportunities in consumer retail and industrials where Russo sees better risk-reward profiles aligned with his long-duration, reinvestment-driven strategy.

Exited

Tom Russo completely liquidated two positions: Mondelez (MDLZ) (4,400 shares worth $262,812) and Richemont (CFRUY) ADR (12,140 shares worth $184,730), while maintaining a substantial position in Richemont (CFR.SW) ordinary shares worth $655M.
What it means: The exit from Mondelez represents a departure from a core global consumer staples holding, potentially driven by valuation concerns, slowing volume growth in developed markets, or capital redeployment into higher-conviction consumer brands like Levi Strauss (LEVI), Ralph Lauren (RL), and Warby Parker (WRBY) where brand reinvestment opportunities may be more compelling. The liquidation of the Richemont ADR position appears to be a structural consolidation into the Swiss-listed ordinary shares, simplifying the holding structure while maintaining meaningful exposure ($655M) to luxury watches and jewelry—though the overall Richemont position was trimmed by 432,893 shares, suggesting some loss of conviction in near-term luxury demand amid China headwinds.

Disclaimer: All posts are for informational purposes only. They are NOT a recommendation to buy or sell the securities discussed. Please do your own research and due diligence before investing your money.