[Financial Highlights & Outlook](index=1&type=section&id=Financial%20Highlights%20%26%20Outlook) La-Z-Boy reported strong Q4 and full-year fiscal 2025 results, with consolidated sales growing 3% to $571 million and $2.1 billion respectively, alongside robust operating cash flow and increased shareholder returns [Fourth Quarter & Full Year Fiscal 2025 Highlights](index=1&type=section&id=Fourth%20Quarter%20%26%20Full%20Year%20Fiscal%202025%20Highlights) La-Z-Boy achieved strong Q4 and full-year fiscal 2025 results, with consolidated sales growing 3% to $571 million and $2.1 billion respectively, alongside robust operating cash flow and increased shareholder returns Fiscal 2025 Fourth Quarter Financial Highlights | Metric | Value ($ millions) | Change vs. Prior Year | | :--- | :--- | :--- | | Consolidated Delivered Sales | $571 | +3% | | Retail Segment Delivered Sales | - | +8% | | Wholesale Segment Delivered Sales | - | +2% | | GAAP Operating Margin | 5.2% | - | | Adjusted Operating Margin | 9.4% | Flat | | GAAP Diluted EPS | $0.36 | - | | Adjusted Diluted EPS | $0.92 | - | | Operating Cash Flow | $62 | +17% | Fiscal 2025 Full Year Financial Highlights | Metric | Value ($ millions) | Change vs. Prior Year | | :--- | :--- | :--- | | Consolidated Delivered Sales | $2,100 | +3% | | Retail Segment Delivered Sales | - | +5% | | Wholesale Segment Delivered Sales | - | +2% | | Joybird Delivered Sales | - | +5% | | GAAP Operating Margin | 6.4% | -20 bps | | Adjusted Operating Margin | 7.6% | - | | GAAP Diluted EPS | $2.35 | - | | Adjusted Diluted EPS | $2.92 | - | | Operating Cash Flow | $187 | +18% | | Returned to Shareholders | $113 | - | - The company-owned La-Z-Boy Furniture Galleries store base grew to **203 stores**, now representing **55% of the total network**[4](index=4&type=chunk)[6](index=6&type=chunk) - For the full year, the company added **11 new stores** and acquired **7 independent stores**[4](index=4&type=chunk)[6](index=6&type=chunk) [Management Commentary](index=2&type=section&id=Management%20Commentary) Management attributes strong performance to the Century Vision strategy, expanding direct-to-consumer reach and supply chain efficiency, confident in outperforming peers despite economic uncertainty - The company is executing its Century Vision strategy, focusing on growing its direct-to-consumer business and owning the end-to-end consumer experience[6](index=6&type=chunk) - The company-owned store footprint has grown to **over 200 stores**, nearly doubling in the last 10 years and now representing **55% of the total network**[6](index=6&type=chunk) - The core North America La-Z-Boy wholesale business achieved sales growth and margin expansion for **four consecutive quarters** in fiscal 2025[6](index=6&type=chunk) - Despite expecting continued economic uncertainty, management is confident in the business model's strength to outperform peers, leveraging its **98-year history**, strong balance sheet, and agile supply chain[6](index=6&type=chunk) [First Quarter Outlook](index=2&type=section&id=First%20Quarter%20Outlook) For Q1 fiscal 2026, La-Z-Boy anticipates outperforming the industry with modest sales growth and an adjusted operating margin of 5.5% to 7.0%, despite temporary pressures and distribution network investments Q1 Fiscal 2026 Guidance | Metric | Guidance Range ($ millions) | | :--- | :--- | | Delivered Sales | $490 - $510 | | Adjusted Operating Margin | 5.5% - 7.0% | - The company expects to outperform the industry, driven by growth in its company-owned Retail segment and core North America La-Z-Boy wholesale business[7](index=7&type=chunk) - Q1 adjusted operating margin will be impacted by transitory pressure from UK and Joybird businesses and investment in a distribution and home delivery redesign project[7](index=7&type=chunk) [Detailed Financial and Segment Performance](index=3&type=section&id=Detailed%20Financial%20and%20Segment%20Performance) This section provides a detailed breakdown of the company's consolidated and segment-specific financial results for the reported periods [Consolidated Financial Results](index=3&type=section&id=Key%20Results) For Q4 FY2025, consolidated sales grew 3% to $571 million, while GAAP operating income fell 41% to $29.5 million due to a goodwill impairment charge, and adjusted operating income rose 3% to $53.6 million Q4 Fiscal 2025 vs. Q4 Fiscal 2024 | Metric | Q4 FY2025 ($ millions) | Q4 FY2024 ($ millions) | Change | | :--- | :--- | :--- | :--- | | Sales | $570.9 | $553.5 | +3% | | GAAP Operating Income | $29.5 | $50.1 | -41% | | Adjusted Operating Income | $53.6 | $52.1 | +3% | | GAAP Diluted EPS | $0.36 | $0.91 | -60% | | Adjusted Diluted EPS | $0.92 | $0.95 | -3% | Full Year Fiscal 2025 vs. Full Year Fiscal 2024 | Metric | FY2025 ($ millions) | FY2024 ($ millions) | Change | | :--- | :--- | :--- | :--- | | Sales | $2,109.2 | $2,047.0 | +3% | | GAAP Operating Income | $135.8 | $150.8 | -10% | | Adjusted Operating Income | $160.8 | $159.4 | +1% | | GAAP Diluted EPS | $2.35 | $2.83 | -17% | | Adjusted Diluted EPS | $2.92 | $2.98 | -2% | [Retail Segment Performance](index=3&type=section&id=Retail%20Segment) The Retail segment reported an 8% increase in delivered sales to $247 million in Q4, driven by new and acquired stores and positive same-store sales growth, though adjusted operating margin decreased due to new store investments - Delivered sales increased **8% to $247 million**, primarily due to growth from acquired and new stores[12](index=12&type=chunk) - Written sales for company-owned stores increased **3%**, but written same-store sales decreased **5%**, as weak industry traffic was partially offset by higher average ticket and design sales[11](index=11&type=chunk) - Adjusted operating margin was **13.1%**, down **110 basis points** from the prior year, due to investment in new stores[12](index=12&type=chunk) [Wholesale Segment Performance](index=4&type=section&id=Wholesale%20Segment) The Wholesale segment's sales increased 2% to $402 million in Q4, driven by the core North America business, with adjusted operating margin remaining flat at 8.5% due to offsetting factors including an international customer transition - Sales increased **2% to $402 million**, driven by growth in the core North America La-Z-Boy wholesale business[17](index=17&type=chunk) - Performance was partially offset by the continued impact of a significant customer transition in the international wholesale business[17](index=17&type=chunk) - Adjusted operating margin was **flat at 8.5%** versus the prior year, as margin expansion in the core North America business was offset by the international customer transition and incremental tariff expenses[17](index=17&type=chunk) [Corporate & Other (including Joybird)](index=4&type=section&id=Corporate%20%26%20Other) In the Corporate & Other segment, Joybird's written sales decreased 21% and delivered sales decreased 2% to $36 million, primarily due to economic trends impacting its online consumer base, though its adjusted operating margin remained positive and relatively flat - Joybird written sales decreased **21%** due to economic and industry trends impacting its online consumer base[17](index=17&type=chunk) - Joybird delivered sales decreased **2% to $36 million**[17](index=17&type=chunk) - Joybird's adjusted operating margin was **positive and relatively flat** versus the prior year[17](index=17&type=chunk) [Financial Position and Cash Flow](index=3&type=section&id=Balance%20Sheet%20and%20Cash%20Flow) This section details the company's strong financial position, including cash reserves, debt status, and cash flow activities for the fiscal year [Balance Sheet and Cash Flow](index=3&type=section&id=Balance%20Sheet%20and%20Cash%20Flow%2C%20Fiscal%202025) The company maintained a strong financial position, ending fiscal 2025 with $328 million in cash and no external debt, while operating cash flow increased 18% to $187 million, supporting capital expenditures and $113 million in shareholder returns - Ended the fiscal year with **$328 million in cash** and **no external debt**[17](index=17&type=chunk)[35](index=35&type=chunk) Fiscal 2025 Cash Flow & Shareholder Returns | Metric | FY2025 ($ millions) | Change vs. FY2024 | | :--- | :--- | :--- | | Operating Cash Flow | $187 | +18% | | Capital Expenditures | $74 | +39% | | Free Cash Flow | $113 | +8% | | Share Repurchases | $78 | +48% | | Dividends | $35 | +7% | | Total Cash Returns | $113 | +32% | - The quarterly dividend was raised by **10% to $0.22** in the third quarter, representing the **fourth consecutive annual dividend increase**[4](index=4&type=chunk)[17](index=17&type=chunk) [Financial Statements and Reconciliations](index=5&type=section&id=Financial%20Statements%20and%20Reconciliations) This section provides detailed financial statements and reconciliations of GAAP to adjusted financial measures, offering a comprehensive view of the company's financial performance and position [Notes on Adjusted Financial Measures](index=5&type=section&id=Notes%20on%20Adjusted%20Financial%20Measures) The company uses adjusted financial measures to assess ongoing performance by excluding certain items like a $20.6 million goodwill impairment charge and supply chain optimization charges, providing a clearer view of long-term profitability trends - Beginning in Q4 FY2025, the company renamed its Non-GAAP financial measures to 'adjusted' financial measures, with no change in calculation methodology[20](index=20&type=chunk) - Q4 FY2025 adjusted results exclude a **$20.6 million pre-tax goodwill impairment charge** related to the UK wholesale and manufacturing businesses[21](index=21&type=chunk) - Q4 FY2025 adjustments also include a **$3.2 million pre-tax charge** for UK supply chain optimization and **$0.3 million in purchase accounting charges**[21](index=21&type=chunk) - Full-year FY2025 adjusted results exclude the same UK goodwill impairment and supply chain charges, along with **$1.2 million in purchase accounting charges**[24](index=24&type=chunk)[28](index=28&type=chunk) [Consolidated Statement of Income](index=8&type=section&id=LA-Z-BOY%20INCORPORATED%20CONSOLIDATED%20STATEMENT%20OF%20INCOME) The consolidated statement of income details the company's revenues, costs, and profits, showing sales of $2.11 billion and a net income of $99.6 million for the year ended April 26, 2025, impacted by a significant goodwill impairment charge Consolidated Income Statement Data (Year Ended) | (in thousands) | 4/26/2025 | 4/27/2024 | | :--- | :--- | :--- | | Sales | $2,109,207 | $2,047,027 | | Gross Profit | $926,418 | $881,670 | | Operating Income | $135,837 | $150,796 | | Goodwill Impairment | $20,581 | $0 | | Net Income Attributable to La-Z-Boy | $99,556 | $122,626 | | Diluted EPS | $2.35 | $2.83 | [Consolidated Balance Sheet](index=9&type=section&id=LA-Z-BOY%20INCORPORATED%20CONSOLIDATED%20BALANCE%20SHEET) The consolidated balance sheet shows the company's financial position at year-end, with total assets of $1.92 billion, $328.4 million in cash, and total equity of $1.03 billion as of April 26, 2025 Consolidated Balance Sheet Data (Year-End) | (in thousands) | 4/26/2025 | 4/27/2024 | | :--- | :--- | :--- | | Cash and equivalents | $328,449 | $341,098 | | Total current assets | $805,688 | $836,808 | | Total assets | $1,922,162 | $1,913,442 | | Total current liabilities | $420,791 | $437,281 | | Total equity | $1,031,976 | $1,013,360 | | Total liabilities and equity | $1,922,162 | $1,913,442 | [Consolidated Statement of Cash Flows](index=10&type=section&id=LA-Z-BOY%20INCORPORATED%20CONSOLIDATED%20STATEMENT%20OF%20CASH%20FLOWS) For the fiscal year ended April 26, 2025, the company generated $187.3 million in net cash from operating activities, while using $98.4 million for investing and $102.6 million for financing activities, resulting in a $12.6 million decrease in cash Consolidated Cash Flow Data (Year Ended) | (in thousands) | 4/26/2025 | 4/27/2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $187,271 | $158,127 | | Net cash used for investing activities | ($98,389) | ($81,554) | | Net cash used for financing activities | ($102,612) | ($81,227) | | Change in cash | ($12,649) | ($5,580) | | Cash at end of period | $328,449 | $341,098 | [Reconciliation of GAAP to Adjusted Financial Measures](index=13&type=section&id=RECONCILIATION%20OF%20GAAP%20TO%20ADJUSTED%20FINANCIAL%20MEASURES) This section reconciles GAAP results to adjusted figures, showing how Q4 GAAP operating income of $29.5 million was adjusted by $24.1 million to $53.6 million, and full-year GAAP operating income of $135.8 million was adjusted by $25.0 million to $160.8 million, providing a clearer view of core operational performance Q4 FY2025 GAAP to Adjusted Reconciliation (Operating Income) | (in thousands) | Amount | | :--- | :--- | | GAAP operating income | $29,527 | | Purchase accounting charges | $256 | | Supply chain optimization charges | $3,247 | | Goodwill impairment | $20,581 | | **Adjusted operating income** | **$53,611** | Full Year FY2025 GAAP to Adjusted Reconciliation (Operating Income) | (in thousands) | Amount | | :--- | :--- | | GAAP operating income | $135,837 | | Purchase accounting charges | $1,161 | | Supply chain optimization charges | $3,247 | | Goodwill impairment | $20,581 | | **Adjusted operating income** | **$160,826** |

Fiscal 2025 Fourth Quarter Highlights: Consolidated delivered sales of $571 million Up 3% versus prior year Retail segment delivered sales increased 8% Company-owned La-Z-Boy Furniture Galleries® network grew by a total of six stores; 203 company-owned store base now represents 55% of total network Wholesale segment delivered sales increased 2%GAAP operating margin of 5.2%; adjusted(1) operating margin of 9.4%, flat versus the year ago periodGAAP diluted EPS of $0.36 and adjusted(1) diluted EPS of $0.92, bo ...

Core Insights - La-Z-Boy Incorporated is expected to report fourth-quarter earnings of 93 cents per share, a decrease from 95 cents per share in the same period last year, with projected quarterly revenue of $557.44 million, slightly up from $553.53 million a year earlier [1] Group 1: Earnings Expectations - Analysts anticipate La-Z-Boy's quarterly earnings to be 93 cents per share, down from 95 cents per share year-over-year [1] - The company projects quarterly revenue of $557.44 million, compared to $553.53 million in the previous year [1] Group 2: Analyst Upgrades and Price Target - Keybanc analyst Bradley Thomas upgraded La-Z-Boy from Sector Weight to Overweight, setting a price target of $46 [2] Group 3: Dividend Insights - La-Z-Boy currently offers an annual dividend yield of 2.26%, translating to a quarterly dividend of 22 cents per share, or 88 cents annually [2] - To achieve a monthly income of $500 from dividends, an investment of approximately $265,357 or around 6,818 shares is required [3] - For a more modest monthly income of $100, an investment of $53,087 or about 1,364 shares is necessary [3] Group 4: Dividend Yield Calculation - The dividend yield is calculated by dividing the annual dividend payment by the stock's current price, which can fluctuate based on changes in stock price and dividend payments [4][5]

Core Viewpoint - La-Z-Boy Incorporated is set to report its Fiscal 2025 Fourth Quarter results on June 17, 2025, with a subsequent investor conference call scheduled for June 18, 2025 [1] Company Overview - La-Z-Boy Incorporated is a vertically integrated furniture retailer and manufacturer, known for its iconic recliner invented in 1927, and is committed to quality and consumer compassion [4] - The company operates nearly 200 company-owned La-Z-Boy Furniture Galleries stores and is part of a broader network of over 360 stores, including an e-commerce platform [5] Conference Call Details - The conference call will be webcast live, with slides available at the company's investor relations website [2] - Dial-in numbers for the live conference call are provided for both U.S./Canada and international callers, along with a participant access code [2] - An archive of the conference call will be available online for one year, with a telephone replay accessible for two weeks [3]

Company Overview - La-Z-Boy Incorporated is a global leader in the retail and manufacture of residential furniture, known for its iconic recliner invented in 1927 [2] - The company operates as a vertically integrated furniture retailer and manufacturer, emphasizing quality and consumer compassion [2] Financial Highlights - La-Z-Boy declared a quarterly cash dividend of $0.22 per share, to be paid on June 16, 2025, to shareholders of record as of June 3, 2025 [1] Retail and Wholesale Segments - The Retail segment includes nearly 200 company-owned La-Z-Boy Furniture Galleries stores, part of a network of over 360 stores nationwide, complemented by La-Z-Boy.com [3] - Joybird, an e-commerce retailer and manufacturer of modern upholstered furniture, operates 12 stores in the U.S. [3] - The Wholesale segment manufactures custom furniture for its Furniture Galleries and various retail channels, including brands like England Furniture Co., Kincaid, American Drew, and Hammary [3]

Company Performance - La-Z-Boy (NYSE: LZB) reported strong fiscal 3Q25 results with year-over-year sales growth across all segments, particularly in Joybird, its direct-to-consumer online segment [1] Investment Strategy - The investment approach focuses on identifying value opportunities, especially in small and mid-cap sectors where market inefficiencies are prevalent [1] - The strategy includes looking for industry leaders in out-of-favor sectors, quality companies facing temporary setbacks, and businesses with strong balance sheets and robust cash generation [1] Analytical Approach - The analysis emphasizes balance sheet strength from a credit perspective, near-term cash flow generation, next twelve-month earnings forecasts, and book value analysis, particularly for financial sector investments [1] Professional Background - The investment philosophy is supported by over 10 years of experience in financial sector consulting, which aids in identifying overlooked opportunities [1]

Company Overview - La-Z-Boy Incorporated is a global leader in the retail and manufacture of residential furniture, known for its iconic recliner invented in 1927 [2] - The company operates as a vertically integrated furniture retailer and manufacturer, emphasizing quality and consumer compassion [2] Retail Segment - The Retail segment includes nearly 200 company-owned La-Z-Boy Furniture Galleries stores, part of a broader network of over 360 stores nationwide [3] - Joybird, an e-commerce retailer and manufacturer of modern upholstered furniture, operates 12 stores in the U.S. [3] Wholesale Segment - In the Wholesale segment, La-Z-Boy manufactures custom furniture for its Furniture Galleries and various retail channels [3] - England Furniture Co. offers custom upholstered furniture, while casegoods brands Kincaid, American Drew, and Hammary provide diverse home furnishings [3] Upcoming Events - La-Z-Boy executives will participate in a fireside chat at the Raymond James 46th Annual Institutional Investors Conference on March 3, 2025, at 4:00 p.m. ET [1] - The presentation will be webcast live and archived on the company's investor relations website [1]

Group 1 - La-Z-Boy Incorporated, a furniture retailer and wholesaler, experienced a 4% increase in share price on February 19th [1] - The share price surge occurred the day after management provided positive updates [1] Group 2 - Crude Value Insights offers an investing service focused on oil and natural gas, emphasizing cash flow and growth prospects [1] - Subscribers have access to a stock model account, cash flow analyses of exploration and production firms, and live sector discussions [2]

Financial Data and Key Metrics Changes - Consolidated delivered sales reached $522 million, up 4% year-over-year [8][36] - Non-GAAP operating margin expanded by 20 basis points to 6.8% [9][36] - GAAP diluted EPS was $0.68, compared to $0.66 in the prior year [37] Business Segment Data and Key Metrics Changes - Retail segment sales increased by 11% to $228 million, driven by same-store sales growth [9][38] - Wholesale segment delivered sales grew by 2% to $363 million, supported by the North America La-Z-Boy brand [40] - Joybird reported delivered sales of $37 million, up 9% year-over-year, achieving breakeven operating profit [41][28] Market Data and Key Metrics Changes - Total written sales for the company-owned retail segment increased by 15% year-over-year [13] - Written same-store sales for the entire La-Z-Boy Furniture Galleries network increased by 5% [14] - The furniture and home furnishing industry grew by 5% during the fiscal third quarter [15] Company Strategy and Development Direction - The Century Vision strategy aims to drive top-line growth at double the market rate and maintain double-digit operating margins [17][50] - The company plans to expand its La-Z-Boy Furniture Galleries network to over 400 stores in the coming years [19] - A focus on enhancing brand reach through strategic partnerships and expanding distribution channels is emphasized [22][76] Management's Comments on Operating Environment and Future Outlook - The management acknowledges a volatile operating environment but remains optimistic about growth opportunities despite industry challenges [11][33] - The company expects fourth-quarter delivered sales in the range of $545 million and non-GAAP operating margin between 8.5% and 9.5% [50] - Management is monitoring the evolving global tariff and trade environment while planning for various scenarios [51][117] Other Important Information - La-Z-Boy was named to Forbes' list of America's best large employers for 2025 [56] - The company has a strong balance sheet with $315 million in cash and no externally funded debt [46] Q&A Session Summary Question: Can you provide insights on the trends throughout the quarter? - Management noted that strength was strongest during the holiday period, with overall year-on-year strength across all three months of the quarter [62] Question: What are the expectations for operating margins in the fourth quarter? - Management highlighted that core North America La-Z-Boy wholesale business has shown margin expansion, while challenges remain in the international business [68][70] Question: What is the status of strategic partnerships? - Management confirmed ongoing investments in comfort studios and emphasized the importance of existing partnerships while exploring new opportunities [74][78] Question: How is the core wholesale segment performing? - Management expressed satisfaction with progress in the core North America wholesale business, noting improvements in supply chain efficiency [85] Question: What is the outlook for Joybird? - Management indicated that Joybird is positioned for growth with plans to open three to four new stores next year, while maintaining financial discipline [106]

Financial Performance - Consolidated sales increased by $21.4 million, or 4%, in the third quarter of fiscal 2025 compared to the same period last year, driven by same-store sales growth in the Retail business and higher volume in the Joybird business [105]. - Operating income for the third quarter of fiscal 2025 was $35.2 million, an increase of 8% from $32.6 million in the same quarter last year [104]. - The operating margin improved to 6.7% in the third quarter of fiscal 2025, up from 6.5% in the prior year [104]. - For the first nine months of fiscal 2025, consolidated sales rose by $44.8 million, or 3%, primarily due to incremental sales from Retail acquisitions and higher delivered volume in the Joybird business [105]. - Gross margin increased by 170 basis points in Q3 2025 and 90 basis points in the first nine months of fiscal 2025 compared to the same periods a year ago [107]. - Retail segment sales rose by $23.0 million, or 11.2%, in Q3 2025, and $24.4 million, or 3.9%, in the first nine months of fiscal 2025 compared to the same periods a year ago [110]. - Same-store sales increased by 7% in Q3 2025 and 1% in the first nine months of fiscal 2025 compared to the same periods a year ago [111]. - Wholesale segment sales increased by $6.6 million, or 2%, in Q3 2025, and $23.0 million, or 2%, in the first nine months of fiscal 2025 compared to the same periods a year ago [115]. - Operating income for the Retail segment was $24.5 million in Q3 2025, a 9.6% increase compared to the same period a year ago, while it decreased by 8.2% in the first nine months of fiscal 2025 [109]. - Joybird sales increased by $3.0 million in Q3 2025 and $8.4 million in the first nine months of fiscal 2025 compared to the same periods a year ago [118]. Strategic Initiatives - The strategic plan, Century Vision, aims to grow sales and market share while strengthening operating margins by 2027 [95]. - The company plans to enhance its enterprise capabilities to support growth and potential acquisitions, emphasizing an agile supply chain and modern technology [99]. - Joybird, acquired in fiscal 2019, is focused on profitable growth through increased digital marketing spend and expansion of product assortment [98]. - The company expects to grow its Retail segment through increased company-owned store count and upgrading existing locations [101]. Cash Flow and Investments - Net cash provided by operating activities was $125.3 million in the first nine months of fiscal 2025, an increase of $19.9 million compared to the same period a year ago [128]. - Net cash used for investing activities in the first nine months of fiscal 2025 was $71.2 million, an increase of $17.2 million compared to the same period last year, primarily due to higher capital expenditures [129]. - Cash used for capital expenditures was $51.5 million, up from $38.0 million in the same period last year, with full-year fiscal 2025 capital expenditures expected to be between $70 million and $80 million [131]. - Cash used for acquisitions totaled $24.8 million, primarily for retail businesses in Davenport, Iowa, Melbourne and Cocoa, Florida, and Toledo, Ohio [131]. - Cash paid to shareholders in quarterly dividends amounted to $25.9 million, with the board of directors expected to continue declaring regular dividends [137]. - The company anticipates continued stock repurchases in fiscal 2025, subject to market conditions, with 4.0 million shares remaining available for repurchase [132]. - Cash from the sale of investments, net of purchases, was $4.9 million during the first nine months of fiscal 2025 [131]. Financial Position - As of January 25, 2025, the company had no borrowings outstanding under its $200 million unsecured revolving credit facility, which matures on October 15, 2026 [130]. - The effective tax rate was 25.1% for Q3 2025 and 25.6% for the first nine months of fiscal 2025, compared to 20.2% and 24.5% for the same periods in fiscal 2024 [123]. - The company remains in compliance with financial covenants under the Credit Facility, ensuring adequate liquidity for operations over the next 12 months [130]. - The company recorded $4.0 million in severance-related expenses and $3.0 million in accelerated depreciation due to the closure of a cut and sew facility in Mexico [92]. - SG&A expenses as a percentage of sales increased by 150 basis points in Q3 2025 and 70 basis points in the first nine months of fiscal 2025 compared to the same periods a year ago [107].