TORO CO

We operate in two reportable business segments: Professional and Residential. Segment earnings for our Professional and Residential segments are defined as earnings from operations plus other income, net. Our remaining activities are presented as "Other" due to their insignificance. Operating loss for our Other activities included earnings (loss) from our wholly-owned domestic distribution company, Red Iron joint venture, corporate activities, other income, and interest expense. Corporate activities include general corporate expenditures, such as finance, human resources, legal, information services, public relations, and similar activities, as well as other unallocated corporate assets and liabilities, such as corporate facilities and deferred tax assets and liabilities. The following tables summarize net sales for our reportable business segments and Other activities:

The following tables summarize segment earnings for our reportable business segments and operating (loss) for our Other activities:

Professional Segment

Segment Net Sales

Worldwide net sales for our Professional segment for the first quarter of fiscal 2025 increased 1.6 percent compared to the first quarter of fiscal 2024. This increase was driven primarily by higher shipments of golf and grounds products and zero-turn mowers, along with net price realization, partially offset by lower shipments of compact utility loaders.

Segment Earnings

Professional segment earnings for the first quarter of fiscal 2025 increased 12.8 percent compared to the first quarter of fiscal 2024, and Professional segment earnings margin increased to 16.5 percent from 14.9 percent in the first quarter of fiscal 2024. The increase in Professional segment earnings margin was primarily due to net sales leverage, product mix, and productivity improvements, partially offset by higher material, manufacturing, and freight costs.

Residential Segment

Segment Net Sales

Worldwide net sales for our Residential segment for the first quarter of fiscal 2025 decreased 8.0 percent compared to the first quarter of fiscal 2024. The decrease in Residential segment net sales was primarily driven by lower shipments of snow and portable power products, the prior year Pope divestiture, and higher sales promotions and incentives, partially offset by higher shipments of zero-turn and walk power mowers.

Segment Earnings

Residential segment earnings for the first quarter of fiscal 2025 decreased 26.8 percent compared to the first quarter of fiscal 2024, and Residential segment earnings margin decreased to 7.8 percent from 9.8 percent in the first quarter of fiscal 2024. The decrease in Residential segment earnings margin was largely driven by higher material, manufacturing, and freight costs, higher sales promotions and incentives, and product mix, partially offset by productivity improvements.

Other Activities

Other Net Sales

Net sales for our Other activities includes sales from our wholly-owned domestic distribution company net of intersegment sales from the Professional and Residential segments to the distribution company. Net sales for our Other activities in the first quarter of fiscal 2025 decreased by $0.1 million compared to the same period in fiscal 2024.

Other Operating Loss

The operating loss for our Other activities for the first quarter of fiscal 2025 increased $22.1 million compared to the first quarter of fiscal 2024, primarily due to higher productivity initiative charges, higher corporate expenses, and the unfavorable impact from derivative instruments.