[PART I – FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20%E2%80%93%20FINANCIAL%20INFORMATION) This section provides the unaudited condensed consolidated financial information, including statements, notes, management's discussion, market risk, and controls [Item 1. Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents the unaudited condensed consolidated financial statements, including balance sheets, statements of operations and comprehensive income, and cash flows, along with detailed notes explaining the basis of presentation, revenue recognition, leases, and other financial details for the periods ended August 2, 2025, and August 3, 2024 [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section provides a snapshot of the company's financial position, detailing assets, liabilities, and equity at specific reporting dates Condensed Consolidated Balance Sheet Highlights (Dollars in thousands) | Metric | August 2, 2025 | February 1, 2025 | August 3, 2024 | | :-------------------------- | :------------- | :--------------- | :------------- | | Cash and cash equivalents | $39,108 | $27,758 | $25,163 | | Inventories, net | $81,758 | $69,775 | $66,977 | | Total current assets | $144,418 | $126,298 | $117,473 | | Total Assets | $318,238 | $289,956 | $279,459 | | Total current liabilities | $81,072 | $79,394 | $80,313 | | Total stockholders' equity | $155,395 | $139,082 | $125,791 | [Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income%20(Loss)) This section outlines the company's financial performance over specific periods, including revenues, gross profit, net income, and earnings per share Condensed Consolidated Statements of Operations Highlights (Dollars in thousands, except per share data) | Metric | 13 Weeks Ended Aug 2, 2025 | 13 Weeks Ended Aug 3, 2024 | 26 Weeks Ended Aug 2, 2025 | 26 Weeks Ended Aug 3, 2024 | | :---------------------------------- | :------------------------- | :------------------------- | :------------------------- | :------------------------- | | Total revenues | $124,247 | $111,798 | $252,642 | $226,528 | | Consolidated gross profit | $71,511 | $60,569 | $144,498 | $122,734 | | Net income | $12,367 | $8,778 | $27,686 | $20,237 | | Basic income per common share | $0.94 | $0.64 | $2.11 | $1.47 | | Diluted income per common share | $0.94 | $0.64 | $2.11 | $1.46 | - Total revenues increased by **11.1%** for the thirteen weeks ended August 2, 2025, and by **11.5%** for the twenty-six weeks ended August 2, 2025, compared to the prior year periods[14](index=14&type=chunk) - Net income increased by **40.9%** for the thirteen weeks ended August 2, 2025, and by **36.8%** for the twenty-six weeks ended August 2, 2025, compared to the prior year periods[14](index=14&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section details the cash inflows and outflows from operating, investing, and financing activities for the reported periods Condensed Consolidated Statements of Cash Flows Highlights (Dollars in thousands) | Metric | 26 Weeks Ended Aug 2, 2025 | 26 Weeks Ended Aug 3, 2024 | | :-------------------------------------- | :------------------------- | :------------------------- | | Net cash provided by operating activities | $32,017 | $12,413 | | Net cash used in investing activities | $(6,328) | $(5,700) | | Net cash used in financing activities | $(14,425) | $(25,867) | | Increase/(Decrease) in cash, cash equivalents, and restricted cash | $11,350 | $(19,164) | | Cash, cash equivalents and restricted cash, end of period | $39,108 | $25,163 | - Net cash provided by operating activities increased by **$19.6 million** for the twenty-six weeks ended August 2, 2025, primarily due to increased net income and favorable changes in working capital[17](index=17&type=chunk) - Net cash used in financing activities decreased by **$11.4 million**, mainly due to a reduction in share repurchases compared to the prior year[17](index=17&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations and additional information supporting the condensed consolidated financial statements [Note 1. Basis of Presentation](index=7&type=section&id=Note%201.%20Basis%20of%20Presentation) This note explains the accounting principles and conventions used in preparing the unaudited condensed consolidated financial statements - The condensed consolidated financial statements are unaudited and prepared in accordance with SEC rules, with certain GAAP disclosures condensed or omitted[19](index=19&type=chunk) - Due to the seasonal nature of operations, results from a single reporting period are not indicative of full-year results[19](index=19&type=chunk) [Note 2. Revenue](index=8&type=section&id=Note%202.%20Revenue) This note details the company's revenue recognition policies and segment-wise revenue breakdown - The Direct-to-Consumer (DTC) segment accounts for **92% of consolidated revenue** for the second quarter of fiscal 2025[23](index=23&type=chunk) - Revenue from gift cards is deferred until redemption, with unredeemed gift card breakage revenue recorded based on historical redemption patterns[26](index=26&type=chunk) - A hypothetical **1% change** in the fiscal 2024 gift card breakage rate would have resulted in a **$1.1 million change** in breakage revenue[26](index=26&type=chunk) [Note 3. Leases](index=10&type=section&id=Note%203.%20Leases) This note provides information on the company's operating lease arrangements, costs, and right-of-use assets Operating Lease Costs (Dollars in thousands) | Metric | 13 Weeks Ended Aug 2, 2025 | 13 Weeks Ended Aug 3, 2024 | 26 Weeks Ended Aug 2, 2025 | 26 Weeks Ended Aug 3, 2024 | | :---------------------- | :------------------------- | :------------------------- | :------------------------- | :------------------------- | | Operating lease costs | $10,765 | $10,021 | $21,208 | $19,605 | | Variable lease costs | $2,509 | $2,464 | $4,889 | $4,655 | | Short term lease costs | $21 | $33 | $49 | $58 | | **Total Operating Lease costs** | **$13,295** | **$12,518** | **$26,146** | **$24,318** | - The weighted-average remaining operating lease term was **6.1 years** as of August 2, 2025, up from 5.6 years in the prior year[38](index=38&type=chunk) - The operating lease right-of-use asset increased to **$101.0 million** as of August 2, 2025, from $94.2 million in the prior year, driven by new stores and longer-term extensions[39](index=39&type=chunk) [Note 4. Other Assets](index=12&type=section&id=Note%204.%20Other%20Assets) This note details the composition of prepaid expenses, other current assets, and other non-current assets Prepaid Expenses and Other Current Assets (Dollars in thousands) | Metric | August 2, 2025 | February 1, 2025 | August 3, 2024 | | :-------------------------------- | :------------- | :--------------- | :------------- | | Prepaid occupancy | $3,757 | $2,213 | $3,109 | | Prepaid insurance | $451 | $1,248 | $693 | | Prepaid gift card fees | $388 | $493 | $600 | | Prepaid royalties | $203 | $736 | $195 | | Prepaid taxes | $143 | $1,512 | $526 | | Other | $5,084 | $6,467 | $8,135 | | **Total** | **$10,026** | **$12,669** | **$13,258** | Other Non-Current Assets (Dollars in thousands) | Metric | August 2, 2025 | February 1, 2025 | August 3, 2024 | | :-------------------------- | :------------- | :--------------- | :------------- | | Entertainment production asset | $4,336 | $4,222 | $4,562 | | Deferred compensation | $1,549 | $1,684 | $1,017 | | Other | $136 | $195 | $252 | | **Total** | **$6,021** | **$6,101** | **$5,831** | [Note 5. Accrued Expenses](index=12&type=section&id=Note%205.%20Accrued%20Expenses) This note outlines the various categories of accrued expenses, including wages, taxes, and rent Accrued Expenses (Dollars in thousands) | Metric | August 2, 2025 | February 1, 2025 | August 3, 2024 | | :-------------------------------- | :------------- | :--------------- | :------------- | | Accrued wages, bonuses and related expenses | $12,122 | $13,268 | $9,896 | | Current income taxes payable | $2,156 | $580 | $35 | | Sales and value added taxes payable | $2,597 | $1,359 | $2,372 | | Accrued rent and related expenses | $885 | $1,002 | $1,040 | | Accrued expense - other | $1,350 | $0 | $0 | | **Total** | **$19,110** | **$16,209** | **$13,343** | [Note 6. Stock-based Compensation](index=13&type=section&id=Note%206.%20Stock-based%20Compensation) This note provides details on stock-based compensation expense, unrecognized compensation, and vested shares - Stock-based compensation expense included in SG&A was **$0.7 million** for the thirteen weeks ended August 2, 2025 (vs. $0.6 million in 2024) and **$1.2 million** for the twenty-six weeks ended August 2, 2025 (vs. $1.0 million in 2024)[51](index=51&type=chunk) - As of August 2, 2025, there was **$6.4 million** of total unrecognized compensation expense related to unvested restricted stock awards, expected to be recognized over a weighted-average period of **2.1 years**[51](index=51&type=chunk) - The total fair value of shares vested during the twenty-six weeks ended August 2, 2025, was **$2.5 million**, compared to $2.2 million in the prior year[53](index=53&type=chunk) [Note 7. Income Taxes](index=14&type=section&id=Note%207.%20Income%20Taxes) This note explains the company's effective tax rates and factors influencing tax expense Effective Tax Rates | Period | August 2, 2025 | August 3, 2024 | | :---------------------- | :------------- | :------------- | | 13 weeks ended | 19.3% | 24.0% | | 26 weeks ended | 20.8% | 23.8% | - The fiscal 2025 effective tax rate differed from the statutory rate of **21%** primarily due to state income tax expense offset by the tax impact of equity awards vesting, foreign-derived intangible income deduction, and discrete benefits from a prior period tax position settlement[56](index=56&type=chunk) - The 'One Big Beautiful Bill Act' (OBBB), signed July 4, 2025, is expected to have an immaterial impact on FY25 and FY26 effective tax rates[55](index=55&type=chunk) [Note 8. Stockholders' Equity](index=15&type=section&id=Note%208.%20Stockholders'%20Equity) This note details changes in stockholders' equity, including net income, share repurchases, and dividends Stockholders' Equity Changes (Dollars in thousands) | Metric | 13 Weeks Ended Aug 2, 2025 | 13 Weeks Ended Aug 3, 2024 | 26 Weeks Ended Aug 2, 2025 | 26 Weeks Ended Aug 3, 2024 | | :---------------------- | :------------------------- | :------------------------- | :------------------------- | :------------------------- | | Balance, beginning | $148,682 | $128,341 | $139,082 | $129,662 | | Net income | $12,367 | $8,778 | $27,686 | $20,237 | | Share repurchase | $(3,115) | $(9,149) | $(7,323) | $(18,347) | | Cash dividends | $(2,905) | $(2,755) | $(5,796) | $(5,565) | | Balance, ending | $155,395 | $125,791 | $155,395 | $125,791 | - The Company utilized **$7.3 million** in cash to repurchase **167,585 shares** during the twenty-six weeks ended August 2, 2025, under its September 2024 Stock Repurchase Program[58](index=58&type=chunk) - As of September 8, 2025, **$80.0 million** remained available for future repurchases under the September 2024 Stock Repurchase Program[58](index=58&type=chunk) [Note 9. Income per Share](index=16&type=section&id=Note%209.%20Income%20per%20Share) This note presents the basic and diluted income per common share for the reported periods Income per Common Share | Metric | 13 Weeks Ended Aug 2, 2025 | 13 Weeks Ended Aug 3, 2024 | 26 Weeks Ended Aug 2, 2025 | 26 Weeks Ended Aug 3, 2024 | | :-------------------------- | :------------------------- | :------------------------- | :------------------------- | :------------------------- | | Basic net income per common share | $0.94 | $0.64 | $2.11 | $1.47 | | Diluted net income per common share | $0.94 | $0.64 | $2.11 | $1.46 | [Note 10. Comprehensive Income](index=16&type=section&id=Note%2010.%20Comprehensive%20Income) This note explains the components of comprehensive income, primarily foreign currency translation adjustments - The difference between comprehensive income and net income is solely due to foreign currency translation adjustments on subsidiaries' balance sheets[61](index=61&type=chunk) - There were no reclassifications out of accumulated other comprehensive loss for the thirteen weeks ended August 2, 2025, and August 3, 2024[61](index=61&type=chunk) [Note 11. Segment Information](index=17&type=section&id=Note%2011.%20Segment%20Information) This note provides a breakdown of total revenue by reportable segment and geographic area Total Revenue by Reportable Segment (Dollars in thousands) | Segment | 13 Weeks Ended Aug 2, 2025 | 13 Weeks Ended Aug 3, 2024 | 26 Weeks Ended Aug 2, 2025 | 26 Weeks Ended Aug 3, 2024 | | :------------------------ | :------------------------- | :------------------------- | :------------------------- | :------------------------- | | Direct-to-Consumer | $114,635 | $103,455 | $234,224 | $211,323 | | Commercial | $8,629 | $7,294 | $16,251 | $13,278 | | International Franchising | $983 | $1,049 | $2,167 | $1,927 | | **Total Revenue** | **$124,247** | **$111,798** | **$252,642** | **$226,528** | Net Sales to External Customers by Geographic Area (Dollars in thousands) | Geographic Area | 13 Weeks Ended Aug 2, 2025 | 13 Weeks Ended Aug 3, 2024 | 26 Weeks Ended Aug 2, 2025 | 26 Weeks Ended Aug 3, 2024 | | :---------------------- | :------------------------- | :------------------------- | :------------------------- | :------------------------- | | North America | $107,066 | $96,766 | $218,339 | $196,217 | | Europe | $15,775 | $14,012 | $31,402 | $28,461 | | Other | $1,406 | $1,020 | $2,901 | $1,850 | | **Total Net Sales** | **$124,247** | **$111,798** | **$252,642** | **$226,528** | [Note 12. Contingencies](index=20&type=section&id=Note%2012.%20Contingencies) This note discusses ongoing legal disputes and their potential financial impact on the company - The Company is involved in an ongoing dispute with the U.K. customs authority (HMRC) regarding duty assessments since 2012[68](index=68&type=chunk) - As of August 2, 2025, the gross receivable balance related to the HMRC matter was **$5.1 million**, with a reserve of **$3.6 million**, resulting in a net receivable of **$1.5 million**[68](index=68&type=chunk) - Management believes the outcome of this dispute will not have a material adverse impact on the Company's results of operations, liquidity, or financial position[68](index=68&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=21&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides an overview of the company's business, recent updates, and a detailed analysis of its financial performance for the thirteen and twenty-six weeks ended August 2, 2025, compared to the prior year. It also discusses liquidity, capital resources, seasonality, inflation, and critical accounting estimates [Cautionary Notice Regarding Forward-Looking Statements](index=21&type=section&id=Cautionary%20Notice%20Regarding%20Forward-Looking%20Statements) This section warns that the report contains forward-looking statements subject to risks and uncertainties that could cause actual results to differ materially - The report contains forward-looking statements subject to risks and uncertainties, which could cause actual results to differ materially[70](index=70&type=chunk) - Key risks include global economic conditions, inflation, consumer spending, tariffs, competition, supply chain disruptions, and the ability to manage store leases and technology[70](index=70&type=chunk) [Business Overview](index=23&type=section&id=Business%20Overview) This section describes the company's brand evolution, strategic focus, and global operational footprint - Build-A-Bear has evolved into a multi-generational brand offering interactive experiences for creating stuffed animals, expanding into e-commerce, licensing, and entertainment content[72](index=72&type=chunk) - The company's strategy focuses on leveraging brand strength to evolve its brick-and-mortar footprint, expand internationally via partner-operated and franchise models, and grow its e-commerce business[74](index=74&type=chunk) - As of August 2, 2025, the company operated **368 corporately-managed stores**, **157 partner-operated locations**, and **102 international franchised stores** globally[75](index=75&type=chunk) [Business Update](index=24&type=section&id=Business%20Update) This section highlights the company's strategic priorities, including global expansion, digital transformation, and capital allocation - Strategic priorities include global expansion of experience locations, accelerating comprehensive digital transformation, and driving profitable growth through investment while returning capital to shareholders[81](index=81&type=chunk) - The company opened a net **29 retail experience locations** during the first twenty-six weeks of fiscal 2025 and expects at least **60 net new units** in fiscal 2025[81](index=81&type=chunk) - Over a third of total stores are now in non-traditional settings, reflecting a shift in location strategy[81](index=81&type=chunk) [Retail Stores](index=25&type=section&id=Retail%20Stores) This section provides an overview of the company's retail store strategy and operational models, including corporately-managed, partner-operated, and international franchise locations [Corporately-Managed Locations](index=25&type=section&id=Corporately-Managed%20Locations) This section details the number and format of stores directly managed by the company across different regions Corporately-Managed Store Count | Region | August 2, 2025 | August 3, 2024 | | :------------- | :------------- | :------------- | | North America | 327 | 321 | | Europe | 41 | 40 | | **Total** | **368** | **361** | - As of August 2, 2025, **53%** of corporately-managed stores were in an updated Discovery format[82](index=82&type=chunk) - Future expansion of the retail store fleet may include more non-traditional locations, such as concourse format shops[82](index=82&type=chunk) [Partner-Operated Locations](index=25&type=section&id=Partner-Operated%20Locations) This section describes the growth and capital-light nature of the company's partner-operated retail locations Partner-Operated Store Count | Metric | August 2, 2025 | August 3, 2024 | | :---------------- | :------------- | :------------- | | Beginning of period | 138 | 92 | | Opened | 19 | 15 | | Closed | 0 | 0 | | **End of period** | **157** | **107** | - The partner-operated model is capital-light for the Company, with partners building and operating the workshops, covering real estate, labor, and inventory costs[83](index=83&type=chunk) - These locations are heavily weighted towards the hospitality industry, advancing the focus on non-traditional and tourist areas[83](index=83&type=chunk) [International Franchise Stores](index=25&type=section&id=International%20Franchise%20Stores) This section outlines the expansion and operational model of the company's international franchise store network International Franchise Store Count | Metric | August 2, 2025 | August 3, 2024 | | :---------------- | :------------- | :------------- | | Beginning of periods | 92 | 83 | | Opened | 15 | 6 | | Closed | (5) | 0 | | **End of period** | **102** | **89** | - The Company leverages new formats developed for corporately-managed locations, such as concourses and shop-in-shops, with its franchisees[86](index=86&type=chunk) - Sourcing fixtures and other supplies for franchisees from China significantly reduces capital and expenses for opening new franchises[86](index=86&type=chunk) [Results of Operations](index=27&type=section&id=Results%20of%20Operations) This section analyzes the company's financial performance, including revenues, gross profit, and expenses, for the reported periods [Thirteen weeks ended August 2, 2025 compared to August 3, 2024](index=27&type=section&id=Thirteen%20weeks%20ended%20August%202,%202025%20compared%20to%20August%203,%202024) This section compares the company's financial results for the thirteen-week period, highlighting changes in revenue, gross margin, and SG&A expenses - Consolidated revenues increased by **$12.4 million (11.1%)** to **$124.2 million**, driven by a **$11.2 million (10.8%) increase** in Net Retail sales and a **$1.3 million (18%) increase** in Commercial revenue[88](index=88&type=chunk) - Retail gross margin increased by **$10.3 million** to **$66.1 million**, with the rate improving by **370 basis points** due to improved merchandise margin[93](index=93&type=chunk) - Selling, general and administrative (SG&A) expenses increased to **$56.4 million (45.4% of consolidated revenue)** from $49.2 million (44.0%), primarily due to higher store-level compensation, corporate costs, and general inflationary pressures[94](index=94&type=chunk) [Twenty-six weeks ended August 2, 2025 compared to August 3, 2024](index=29&type=section&id=Twenty-six%20weeks%20ended%20August%202,%202025%20compared%20to%20August%203,%202024) This section compares the company's financial results for the twenty-six-week period, detailing changes in revenue, gross margin, and SG&A expenses - Consolidated revenues increased by **$26.1 million (11.5%)** to **$252.6 million**, driven by a **$22.9 million (10.8%) increase** in Net Retail sales and a **$3.0 million (22%) increase** in Commercial revenue[97](index=97&type=chunk) - Retail gross margin increased by **$19.8 million** to **$134.1 million**, with the rate improving by **320 basis points** due to improved merchandise margin[101](index=101&type=chunk) - SG&A expenses increased to **$110.0 million (43.5% of consolidated revenue)** from $96.8 million (42.7%), driven by higher store-level compensation, corporate costs, and general inflationary pressures[102](index=102&type=chunk) [Earnings before Interest, Taxes, Depreciation, and Amortization (EBITDA)](index=30&type=section&id=Earnings%20before%20Interest,%20Taxes,%20Depreciation,%20and%20Amortization) This section presents the company's EBITDA and analyzes the factors contributing to its changes for the reported periods EBITDA (Dollars in millions) | Metric | 13 Weeks Ended Aug 2, 2025 | 13 Weeks Ended Aug 3, 2024 | 26 Weeks Ended Aug 2, 2025 | 26 Weeks Ended Aug 3, 2024 | | :------------------------------------------------ | :------------------------- | :------------------------- | :------------------------- | :------------------------- | | Income before income taxes (pre-tax) | $15,318 | $11,545 | $34,949 | $26,574 | | Interest income, net | $(206) | $(188) | $(406) | $(614) | | Depreciation and amortization expense | $3,668 | $3,636 | $7,368 | $7,294 | | **Earnings before interest, taxes, depreciation, and amortization** | **$18,780** | **$14,993** | **$41,911** | **$33,254** | - EBITDA increased by **$3.8 million (25.3%)** to **$18.8 million** for the thirteen weeks ended August 2, 2025, and by **$8.7 million (26.0%)** to **$41.9 million** for the twenty-six weeks ended August 2, 2025[105](index=105&type=chunk)[106](index=106&type=chunk) - The increase in EBITDA was driven by gross profit resulting from increased retail and commercial margins, partially offset by higher SG&A expenses[105](index=105&type=chunk)[106](index=106&type=chunk) [Seasonality and Quarterly Results](index=30&type=section&id=Seasonality%20and%20Quarterly%20Results) This section discusses the impact of seasonal factors and other variables on the company's operating results and quarterly performance - Operating results can fluctuate significantly due to factors such as economic conditions, consumer spending, timing of licensed product sales, marketing initiatives, and store operations[107](index=107&type=chunk)[108](index=108&type=chunk) - Sales historically peak in the fourth quarter due to the holiday season, and the timing of holidays and school vacations can impact quarterly results[110](index=110&type=chunk) [Liquidity and Capital Resources](index=32&type=section&id=Liquidity%20and%20Capital%20Resources) This section assesses the company's cash position, operating cash flows, inventory levels, and planned capital expenditures - As of August 2, 2025, the consolidated cash balance was **$39.1 million**, with **82%** domiciled within the U.S[112](index=112&type=chunk) - Net cash provided by operating activities increased by **$19.6 million** for the twenty-six weeks ended August 2, 2025, primarily due to increased net income and favorable working capital changes[113](index=113&type=chunk) - Total inventory at quarter-end was **$81.8 million**, a **22% increase** from the fiscal 2024 second quarter, driven by additional tariff costs and accelerated purchases for tariff-mitigation plans[120](index=120&type=chunk) - The Company expects to spend approximately **$20 to $25 million** on capital expenditures in fiscal 2025[119](index=119&type=chunk) [Off-Balance Sheet Arrangements](index=33&type=section&id=Off-Balance%20Sheet%20Arrangements) This section confirms the absence of any off-balance sheet arrangements for the company - The Company has no off-balance sheet arrangements[123](index=123&type=chunk) [Inflation](index=33&type=section&id=Inflation) This section addresses the impact of inflationary pressures on the company's costs and its strategies for mitigation - Inflationary pressures, particularly rising store labor costs and tariffs on inventory purchases, are expected to continue into fiscal 2025[124](index=124&type=chunk) - The Company is implementing mitigating actions, such as strategic price increases on highly sought-after products and leveraging distribution costs[124](index=124&type=chunk) - Failure to recover increased costs through price increases or a decrease in consumer spending due to inflation could adversely affect financial results[124](index=124&type=chunk) [Critical Accounting Estimates](index=33&type=section&id=Critical%20Accounting%20Estimates) This section reviews the company's significant accounting policies and estimates that require management's judgment - The Company's accounting policies and estimates, including those related to long-lived assets, leases, revenue recognition, and income taxes, are reevaluated on an ongoing basis[126](index=126&type=chunk) - There have been no material changes to the critical accounting estimates disclosed in the Annual Report on Form 10-K for the year ended February 1, 2025[127](index=127&type=chunk) [Recent Accounting Pronouncements](index=34&type=section&id=Recent%20Accounting%20Pronouncements) This section refers to disclosures regarding recent accounting pronouncements in the company's annual report - Information on recent accounting pronouncements is disclosed in Note 1 to the Condensed Consolidated Financial Statements in the Annual Report on Form 10-K for the year ended February 1, 2025[128](index=128&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=34&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section states that there have been no material changes to the company's quantitative and qualitative disclosures about market risk since its last Annual Report on Form 10-K - There have been no material changes to the Company's Quantitative and Qualitative Disclosures About Market Risk as disclosed in its Annual Report on Form 10-K for the fiscal year ended February 1, 2025[129](index=129&type=chunk) [Item 4. Controls and Procedures](index=34&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of August 2, 2025. No material changes in internal control over financial reporting occurred during the quarter - Management concluded that the Company's disclosure controls and procedures were effective as of August 2, 2025[130](index=130&type=chunk) - No material changes in internal control over financial reporting occurred during the quarter covered by this report[132](index=132&type=chunk) - Control systems provide reasonable, not absolute, assurance and are subject to inherent limitations such as faulty judgments, errors, collusion, or management override[131](index=131&type=chunk) [PART II – OTHER INFORMATION](index=35&type=section&id=PART%20II%20%E2%80%93%20OTHER%20INFORMATION) This section contains additional information not covered in the financial statements, including risk factors, equity sales, other disclosures, and exhibits [Item 1A. Risk Factors](index=35&type=section&id=Item%201A.%20Risk%20Factors) This section states that there have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K - There have been no material changes to the Company's risk factors as disclosed in its Annual Report on Form 10-K for the year ended February 1, 2025[135](index=135&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=35&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the company's common stock repurchases under its September 2024 Stock Repurchase Program during the quarter ended August 2, 2025 Issuer Purchases of Equity Securities (May 4, 2025 - August 2, 2025) | Period | Total Number of Shares Purchased | Average Price Paid Per Share | Maximum Dollar Value Remaining Under Program | | :-------------------------- | :----------------------------- | :--------------------------- | :------------------------------------------- | | May 4, 2025 - May 31, 2025 | - | $ - | $84,992,834 | | June 1, 2025 - July 5, 2025 | 23,720 | $52.71 | $83,742,469 | | July 6, 2025 - August 2, 2025 | 35,363 | $52.08 | $81,900,801 | | **Total** | **59,083** | **$52.33** | **$81,900,801** | - The September 2024 Stock Repurchase Program, authorized for up to **$100 million**, allows repurchases through September 30, 2028[138](index=138&type=chunk) [Item 5. Other Information](index=35&type=section&id=Item%205.%20Other%20Information) This section discloses the adoption of Rule 10b5-1 trading plans by several directors and executive officers for the sale of company common stock - CFO Voin Todorovic adopted a Rule 10b5-1 Trading Plan on June 9, 2025, for the sale of up to **12,744 shares**, expiring December 11, 2025[139](index=139&type=chunk) - President and CEO Sharon John adopted a Rule 10b5-1 Trading Plan on June 13, 2025, for the sale of up to **42,643 shares**, expiring December 5, 2025[139](index=139&type=chunk) - Chairman of the Board Craig Leavitt adopted a Rule 10b5-1 Trading Plan on July 1, 2025, for the sale of up to **8,250 shares**, expiring December 5, 2025[139](index=139&type=chunk) [Item 6. Exhibits](index=37&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed as part of the quarterly report on Form 10-Q, including organizational documents, employment agreements, and various certifications - The exhibits include certifications pursuant to Section 302 and Section 906 of the Sarbanes-Oxley Act of 2002, executed by the President and CEO and the CFO[141](index=141&type=chunk) - Various Inline XBRL documents (Instance, Schema, Calculation, Definition, Label, Presentation Linkbase Documents) are filed as part of the report[141](index=141&type=chunk) [Signatures](index=38&type=section&id=Signatures) This section contains the official signatures of the company's President and Chief Executive Officer and Chief Financial Officer, certifying the quarterly report - The report was signed on September 11, 2025, by Sharon John, President and Chief Executive Officer, and Voin Todorovic, Chief Financial Officer[145](index=145&type=chunk)

OXFORD INDUSTRIES, INC. Table of Contents (Exact name of registrant as specified in its charter) UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended August 2, 2025 or o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from____to____ Commission File Number: 1-4365 Georgia 58-0831862 (State or ot ...

[FORM 8-K Filing Details](index=1&type=section&id=FORM%208-K%20Filing%20Details) This section details the Form 8-K filing, covering registrant information, securities registration, and general filing specifics [Registrant and Filing Information](index=1&type=section&id=Registrant%20and%20Filing%20Information) This section provides the administrative details of the Form 8-K filing, including the registrant's identity, incorporation state, address, and the report's filing date - Registrant: **PACS GROUP, INC.**, incorporated in Delaware[1](index=1&type=chunk) - Filing Date: **September 11, 2025**[1](index=1&type=chunk) - Registrant's principal executive offices: **262 N. University Ave., Farmington, Utah 84025**[1](index=1&type=chunk) [Securities Registration](index=1&type=section&id=Securities%20Registration) This part details the company's registered securities, their trading symbol, and the exchange on which they are listed, also indicating that the registrant is not an emerging growth company Securities Registration Details | Title of each class | Trading Symbol(s) | Name of each exchange on which registered | | :------------------ | :---------------- | :---------------------------------------- | | Common Stock, $0.001 par value per share | PACS | The New York Stock Exchange | - The registrant is not an emerging growth company[3](index=3&type=chunk) [Item 2.02 Results of Operations and Financial Condition](index=2&type=section&id=Item%202.02%20Results%20of%20Operations%20and%20Financial%20Condition) This section reports the announcement of preliminary operating metrics and clarifies the filing status and associated liabilities [Announcement of Preliminary Operating Metrics](index=2&type=section&id=Announcement%20of%20Preliminary%20Operating%20Metrics) PACS Group, Inc. issued a press release on September 11, 2025, announcing select unaudited preliminary operating metrics, which is furnished as Exhibit 99.1 to this Form 8-K - On **September 11, 2025**, PACS Group, Inc. issued a press release[4](index=4&type=chunk) - The press release announced select unaudited preliminary operating metrics[4](index=4&type=chunk) - A copy of the press release is furnished as **Exhibit 99.1** to this Current Report on Form 8-K[4](index=4&type=chunk) [Filing Status and Liabilities Disclaimer](index=2&type=section&id=Filing%20Status%20and%20Liabilities%20Disclaimer) This section clarifies that the information in this Form 8-K, including Exhibit 99.1, is furnished and not considered 'filed' for Section 18 liability purposes of the Exchange Act, nor is it automatically incorporated by reference into other filings - The information in this Form 8-K (including Exhibit 99.1) shall not be deemed 'filed' for purposes of **Section 18 of the Securities Exchange Act of 1934**[5](index=5&type=chunk) - It is not subject to the liabilities of that section[5](index=5&type=chunk) - It shall not be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as expressly set forth by specific reference[5](index=5&type=chunk) [Item 9.01 Financial Statements and Exhibits](index=2&type=section&id=Item%209.01%20Financial%20Statements%20and%20Exhibits) This section lists the financial statements and exhibits included in the Form 8-K filing [Exhibits List](index=2&type=section&id=Exhibits%20List) This section provides a table listing the exhibits accompanying the Form 8-K filing, specifically the press release and the interactive data file Form 8-K Exhibits | Exhibit No. | Description | | :---------- | :---------- | | 99.1 | Press Release of the Company dated September 11, 2025 | | 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | [SIGNATURES](index=3&type=section&id=SIGNATURES) This section formally concludes the report with the authorized signature and date [Execution of Report](index=3&type=section&id=Execution%20of%20Report) This section formally concludes the report, confirming its execution on behalf of PACS Group, Inc. by its Chief Executive Officer - The report was duly caused to be signed on behalf of **PACS GROUP, INC.**[8](index=8&type=chunk)[9](index=9&type=chunk) - Signed by **Jason Murray**, Chief Executive Officer[10](index=10&type=chunk) - Date of signature: **September 11, 2025**[10](index=10&type=chunk)

Exhibit 99.1 Kroger Reports Second Quarter 2025 Results and Updates Guidance for 2025 Second Quarter Highlights CINCINNATI, September 11, 2025 – The Kroger Co. (NYSE: KR) today reported its second quarter 2025 results, updated guidance and shared progress on key priorities. Comments from Chairman and CEO Ron Sargent "Kroger delivered another quarter of strong results, which demonstrates the clear and measurable progress we've made on our priorities – to simplify our organization, to improve the customer exp ...

Bickley continued, "We are in the early stages of making meaningful adjustments to our product design and assortment, driving innovation back into our core DNA and what made Vera Bradley successful. As part of our fall and holiday assortments, we are bringing back iconic styles such as the Vera Tote along with exciting new product designs with great details. Our assortments will be more balanced across fabrications, silhouettes and prints. And we are super excited for the hero heritage re-issue of the origi ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the quarterly period ended July 31, 2025 OR TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the transition period from to . Commission File No. 001-36830 KALVISTA PHARMACEUTICALS, INC. (Exact name of registrant as specified in its charter) Delaware 20-0915291 (State or other jurisd ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended August 3, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-38555 THE LOVESAC COMPANY (Exact name of registrant as specified in its charter) | Delaware | 32-0514958 | | --- | --- | ...

Exhibit 99.1 THE LOVESAC COMPANY REPORTS SECOND QUARTER FISCAL 2026 FINANCIAL RESULTS Q2 FY26 Net Sales Increased 2.5% to $160.5 Million vs. Q2 FY25 STAMFORD, Conn., September 11, 2025 (GLOBE NEWSWIRE) -- The Lovesac Company (Nasdaq: LOVE) ("Lovesac" or the "Company"), the Designed for Life home and technology brand best known for its Sactionals, The World's Most Adaptable Couch, today announced financial results for the second quarter of fiscal 2026, which ended August 3, 2025. Shawn Nelson, Chief Executiv ...

Exhibit 99.1 KalVista Pharmaceuticals Provides Operational Update and Reports Fiscal Quarter Financial Results -EKTERLY® now approved in the US and UK; first and only oral on-demand therapy for acute attacks of hereditary angioedema- -Initiated US EKTERLY launch in July; received 460 patient start forms through August- -European Medicines Agency adopted a positive opinion recommending approval of sebetralstat and confirmed maintenance of orphan designation in EU; decision expected early October- -$191M in c ...

[Executive Summary & Key Performance Drivers](index=1&type=section&id=Executive%20Summary%20%26%20Key%20Performance%20Drivers) The company is driving towards profitability through cost-reduction and growth initiatives, with key performance indicators showing progress in Q2 and 1H FY26 [Executive Commentary](index=1&type=section&id=Executive%20Commentary) CEO Jeremy Hoff outlines strategic steps to achieve profitability through cost reduction and growth, with Hooker Branded reaching breakeven and Domestic Upholstery significantly reducing losses - Company is taking **decisive steps** to return to **profitability** through **cost-reduction** and **growth initiatives**[2](index=2&type=chunk) - Hooker Branded achieved **breakeven** in Q2 FY26 despite weak demand and restructuring charges[3](index=3&type=chunk) - Domestic Upholstery **reduced operating loss by nearly 70%** in Q2 FY26, including restructuring costs[3](index=3&type=chunk) - HMI's fixed cost structure is expected to be **aligned for a sustainable business** by the end of Q3 FY26, with performance **significantly enhanced** by year-end[3](index=3&type=chunk) - New expense structure, **reducing fixed costs by approximately 25%**, is largely expected to be in place by the end of Q3 FY26[3](index=3&type=chunk)[10](index=10&type=chunk) [Key Performance Drivers: Q2 & 1H FY26](index=1&type=section&id=Key%20Performance%20Drivers%3A%20Q2%20%26%201H%20FY26) The company is executing a multi-phase cost reduction strategy targeting $25 million in annualized savings by FY27, with Q2 FY26 showing mixed results across segments and significant debt reduction - Multi-phase cost reduction strategy aims for approximately **$25 million in annualized savings** by fiscal year 2027[5](index=5&type=chunk) - Achieved **$3.7 million in expense reductions** in 1H FY26, despite **$1.7 million in restructuring charges**[5](index=5&type=chunk)[6](index=6&type=chunk) Key Performance Metrics | Metric | Q2 FY26 | Change YoY | | :-------------------------- | :------ | :--------- | | Hooker Branded Sales | +$465K | +1.3% | | Hooker Branded Operating Results | Breakeven | vs. $329K loss PY | | Domestic Upholstery Operating Loss | Reduced by nearly $900K | | | Consolidated Net Sales | $82.1M | -13.6% | | Consolidated Operating Loss | $4.4M | vs. $3.1M PY | | Consolidated Net Loss | $3.3M | | | Debt Repayment YTD | $16.5M | | | Borrowing Capacity | $57.7M | | - HMI net sales **down 44.5% YoY**, driven by customer bankruptcy impact and tariff mitigation[6](index=6&type=chunk) - Q2 orders for Hooker Branded **increased by 11%**, and Domestic Upholstery **by 2%**, with backlog **up 7% YoY**[6](index=6&type=chunk) [Cost Reduction and Operational Strategy](index=1&type=section&id=Cost%20Reduction%20and%20Operational%20Strategy) The company is executing a multi-phase cost reduction plan targeting $25 million in annualized savings by FY27, while also pursuing strategic growth initiatives [Multi-Phase Cost Reduction Plan Details](index=1&type=section&id=Multi-Phase%20Cost%20Reduction%20Plan%20Details) The company is implementing a multi-phase cost reduction strategy to achieve approximately $25 million in annualized savings by fiscal year 2027, focusing on warehousing, distribution, and administrative expenses - Target of approximately **$25 million in annualized savings** by FY27, representing nearly **25% of fixed costs**[5](index=5&type=chunk)[8](index=8&type=chunk)[10](index=10&type=chunk)[11](index=11&type=chunk) - Savings breakdown includes **$11 million** in warehousing/distribution and **$14 million** in selling/administrative expenses[8](index=8&type=chunk) Cost Reduction Plan Summary | Fiscal Year | Initiative | Identified Reductions | Achieved Savings | Restructuring Charges | | :---------- | :-------------------------------- | :-------------------- | :--------------- | :-------------------- | | FY25 | Phase 1 | $10 million | $3 million | N/A | | FY26 | Phase 2 | $15 million | $3.7 million (1H) | $1.7 million (1H) | | FY27 | Annualized Target | N/A | $25 million | N/A | - Incurred **$4.9 million in restructuring charges** in FY25, including **$3.6 million in severance**[11](index=11&type=chunk) - Incurred **$2.5 million in restructuring costs** in 1H FY26, including **$1.7 million in severance** and warehouse consolidation, and **$0.8 million** from inventory liquidation at the Georgia warehouse[11](index=11&type=chunk) - Expecting approximately **$2 million in additional charges** in 2H FY26, primarily related to fixed asset write-offs and severance for the Savannah warehouse exit[11](index=11&type=chunk) - Savannah warehouse closure and lease termination effective **October 31, 2025**[11](index=11&type=chunk) - Vietnam warehouse opened in **May 2025**, reached **two-thirds capacity**, reducing direct container lead times from six months to four to six weeks[11](index=11&type=chunk)[12](index=12&type=chunk) [Phase 1: Initial Cost Reductions (Fiscal 2025)](index=2&type=section&id=Phase%201%3A%20Initial%20Cost%20Reductions%20(Fiscal%202025)) Phase 1 of the cost reduction plan identified $10 million in expense reductions for fiscal 2025, achieving $3 million in savings through facility downsizing and workforce reductions - Identified **$10 million in expense reductions** in fiscal 2025, achieving **$3 million in savings**[5](index=5&type=chunk) - Reduced fixed costs by **over $10 million** through facility downsizing, workforce reductions, and other fixed cost reductions[11](index=11&type=chunk) - Incurred **$4.9 million in restructuring charges** in FY25, including **$3.6 million in severance**[11](index=11&type=chunk) [Phase 2: Logistics & Operations Consolidation (Fiscal 2026)](index=2&type=section&id=Phase%202%3A%20Logistics%20%26%20Operations%20Consolidation%20(Fiscal%202026)) Phase 2 targets an additional $15 million in expense reductions for fiscal 2026, with $3.7 million achieved in 1H FY26, including the closure of the Savannah warehouse and opening of a Vietnam warehouse - Identified an additional **$15 million in expense reductions** for Fiscal 2026[5](index=5&type=chunk) - Achieved **$3.7 million in expense reductions** in the first half of fiscal 2026, despite **$1.7 million in restructuring charges**[5](index=5&type=chunk) - Savannah Warehouse: Entered into an agreement for full closure and lease termination effective **October 31, 2025**[11](index=11&type=chunk) - Vietnam Warehouse: Opened in **May 2025**, reached approximately **two-thirds capacity**, reducing direct container lead times from six months to four to six weeks[11](index=11&type=chunk) - Incurred **$2.5 million in restructuring costs** during 1H FY26, including **$1.7 million in severance** and warehouse consolidation costs and **$0.8 million** from inventory liquidation[11](index=11&type=chunk) [Strategic Growth Initiatives](index=2&type=section&id=Strategic%20Growth%20Initiatives) The company is investing in strategic growth opportunities, including the Collected Living platform, leveraging the Vietnam warehouse, and launching the Margaritaville licensed collection - Strategic growth priorities include advancing **Collected Living** merchandising platform, leveraging **Vietnam warehouse**, and launching **Margaritaville licensed collection**[7](index=7&type=chunk)[12](index=12&type=chunk) - Margaritaville launch is scheduled for the **October High Point market**, positioning the company for the **second half of fiscal 2027**[12](index=12&type=chunk) - Vietnam warehouse is already **shortening container lead times** and creating new mixability opportunities, **reducing overall inventory requirements**[12](index=12&type=chunk) [Segment Performance Analysis](index=3&type=section&id=Segment%20Performance%20Analysis) This section analyzes the Q2 and 1H FY26 performance of Hooker Branded, Home Meridian, and Domestic Upholstery segments, highlighting sales, gross profit, and operating results [Hooker Branded Segment](index=3&type=section&id=Hooker%20Branded%20Segment) The Hooker Branded segment achieved modest sales growth and breakeven operating results in Q2 and 1H FY26, with incoming orders and backlog showing positive trends Hooker Branded Segment Performance | Metric | Q2 FY26 | 1H FY26 | Change YoY (Q2) | Change YoY (1H) | | :-------------------- | :------ | :------ | :-------------- | :-------------- | | Net Sales | +$465K | +$766K | +1.3% | +1.1% | | Gross Profit | -$167K | -$560K | | | | Gross Margin | 29.1% | 29.5% | -80 bps | -100 bps | | Operating Results | Breakeven | Breakeven | vs. $329K loss PY | vs. $150K loss PY | | Restructuring Costs | $655K | $782K | | | | Incoming Orders (Q2) | +10.6% | | | | | Quarter-end Backlog | $15,701K | | Consistent YoY, +20% from FY-end | | [Home Meridian (HMI) Segment](index=3&type=section&id=Home%20Meridian%20(HMI)%20Segment) The Home Meridian segment experienced significant sales decline and operating losses in Q2 and 1H FY26, primarily due to reduced hospitality business, macroeconomic pressures, and a major customer bankruptcy Home Meridian Segment Performance | Metric | Q2 FY26 | 1H FY26 | Change YoY (Q2) | Change YoY (1H) | | :-------------------- | :------ | :------ | :-------------- | :-------------- | | Net Sales | -$13.6M | -$21.2M | -44.5% | -37.2% | | Gross Profit | -$4.9M | -$5.6M | | | | Gross Margin | 6.2% | 10.6% | -1,330 bps | -590 bps | | Operating Loss | $3.9M | $6.8M | vs. $0.9M loss PY | vs. $4.2M loss PY | | Restructuring Costs | $1.2M | $1.4M | | | | Quarter-end Backlog | $16,138K | | Down from $43,918K PY | | - Sales decline driven by project-based hospitality (**40%**), traditional channels (**35%** due to macro/tariffs), and major customer bankruptcy (**25%**)[16](index=16&type=chunk) - Gross margin decline due to **unfavorable customer/product mix**, **higher warehousing expenses**, **severance**, and **inventory liquidation**[16](index=16&type=chunk) [Domestic Upholstery Segment](index=3&type=section&id=Domestic%20Upholstery%20Segment) The Domestic Upholstery segment maintained flat net sales in Q2 FY26, significantly reducing operating losses and expanding gross margins, with incoming orders and backlog showing growth Domestic Upholstery Segment Performance | Metric | Q2 FY26 | 1H FY26 | Change YoY (Q2) | Change YoY (1H) | | :-------------------- | :------ | :------ | :-------------- | :-------------- | | Net Sales | Flat | -$1.0M | | -1.7% | | Gross Profit | +$659K | +$1.2M | | | | Gross Margin | 18.5% | 18.4% | +220 bps | +240 bps | | Operating Loss | -$408K | -$1,004K | Reduced by $877K (68%) | Reduced by $1.6M (61%) | | Restructuring Costs | $152K | $265K | | | | Incoming Orders (Q2) | +1.6% | | | | | Quarter-end Backlog | $19,313K | | +7% YoY | | - Indoor residential divisions posted **sales increases**, signaling **early recovery**[16](index=16&type=chunk) - Sunset West sales **fell 9.7%** due to supply chain disruptions, which stabilized post-quarter[16](index=16&type=chunk) [Financial Position and Capital Management](index=4&type=section&id=Financial%20Position%20and%20Capital%20Management) This section details the company's cash, debt, and inventory levels, along with its capital allocation strategies focused on debt reduction, liquidity, and shareholder returns [Cash, Debt and Inventory](index=4&type=section&id=Cash%20%2C%20Debt%20and%20Inventory) Cash and cash equivalents decreased to $821,000 at quarter-end, primarily due to $16.5 million in debt repayment and dividends, while inventory levels decreased and borrowing capacity remained strong Cash, Debt and Inventory Levels | Metric | As of August 3, 2025 (Q2 FY26) | Change from Feb 2, 2025 (FY-end) | | :-------------------------- | :------------------------------ | :------------------------------ | | Cash and Cash Equivalents | $821,000 | -$5.5 million | | Inventory Levels | $58.5 million | -$12.3 million | | Debt Repaid YTD | $16.5 million | | | Available Borrowing Capacity | $57.7 million (Q2 end) | | | Available Borrowing Capacity (as of Sept 10, 2025) | $67.9 million | | [Capital Allocation](index=4&type=section&id=Capital%20Allocation) CFO Earl Armstrong highlights the company's focus on debt reduction, liquidity strengthening, and shareholder returns through dividends, supported by cost-saving measures and strategic growth priorities - **Reduced debt**, **strengthened liquidity**, and continued **returning capital to shareholders through dividends** over the past year[20](index=20&type=chunk) - Cost-saving measures are **enhancing near-term liquidity** and creating a **foundation for strategic growth**[20](index=20&type=chunk) - Focus remains on capital allocation strategies that drive **long-term value creation**, balancing **cost initiatives with key growth priorities**[20](index=20&type=chunk) [Tariff Impacts and Mitigation Strategies](index=4&type=section&id=Tariff%20Impacts%20and%20Mitigation%20Strategies) The company is implementing various mitigation strategies across segments to address the new 20% US tariff on imports from Vietnam and assessing potential impacts of possible lumber tariffs - US Government announced a **20% tariff** on imports from Vietnam, effective **August 1, 2025**[17](index=17&type=chunk) - Domestic Upholstery mitigates impact through **new fabric sourcing** for component parts[18](index=18&type=chunk) - Hooker Branded is **remerchandising lines** and **evaluating pricing on a SKU-by-SKU basis** to manage tariff impact[18](index=18&type=chunk) - HMI has implemented **near-term mitigation efforts** and is pursuing additional measures for existing collections[18](index=18&type=chunk) - Company is assessing potential impacts of **possible lumber tariffs**[18](index=18&type=chunk) [Business Outlook](index=4&type=section&id=Business%20Outlook) Despite industry headwinds from low home sales and inflation, the company observes encouraging order momentum and focuses on scaling its cost structure, launching new collections, and pursuing growth in key channels - July orders for Hooker Branded and Domestic Upholstery were **up 24% YoY**[21](index=21&type=chunk) - Q2 orders for Hooker Branded were **up nearly 11%**, and Domestic Upholstery **up 1.6%**[21](index=21&type=chunk) - Industry headwinds include **low existing home sales**, **elevated mortgage rates**, and **persistent inflation**[21](index=21&type=chunk) - Company focus areas: **scaling cost structure**, **Margaritaville collection debut**, and **growth in hospitality, contract, and outdoor channels**, supported by Vietnam warehouse[21](index=21&type=chunk) [Company Information & Disclosures](index=4&type=section&id=Company%20Information%20%26%20Disclosures) This section provides an overview of Hooker Furnishings, its business, and important disclosures regarding investor communications and forward-looking statements [About Hooker Furnishings](index=5&type=section&id=About%20Hooker%20Furnishings) Hooker Furnishings Corporation is a global designer, marketer, and importer of diverse furniture and home décor, also manufacturing premium custom furniture domestically across various brands - Hooker Furnishings is a **global leader** in home furnishings, designing, marketing, and importing various furniture types and home décor[1](index=1&type=chunk)[24](index=24&type=chunk) - Company also **domestically manufactures premium residential custom leather, fabric-upholstered, and outdoor furniture**[24](index=24&type=chunk) - Operates **multiple brands** including Hooker Furniture, Bradington-Young, HF Custom, Hooker Upholstery, Shenandoah Furniture, H Contract, Home Meridian (Pulaski Furniture, Samuel Lawrence Furniture, Prime Resources International, Samuel Lawrence Hospitality), and Sunset West[24](index=24&type=chunk) [Additional Information](index=5&type=section&id=Additional%20Information) Hooker Furnishings uses its Investor Relations website as a primary channel for disclosing material information to investors, in compliance with Regulation FD - **Investor Relations website** is used for disclosing material information to investors and complying with **Regulation FD**[25](index=25&type=chunk) - Investors should monitor the **IR website, press releases, SEC filings, conference calls, webcasts, and social media**[25](index=25&type=chunk) [Forward-Looking Statements](index=5&type=section&id=Forward-Looking%20Statements) This section highlights that forward-looking statements are subject to various risks and uncertainties, including tariffs, economic conditions, and operational challenges, with no obligation for updates - Forward-looking statements are subject to **risks and uncertainties** that could cause actual results to **differ materially**[26](index=26&type=chunk) - Key risks include **tariffs** (Vietnam, potential lumber), **general economic conditions** (housing, interest rates, inflation), **cyclical nature** of the furniture industry, and outcomes of **cost reduction and HMI restructuring plans**[28](index=28&type=chunk) - Other risks include **Savannah warehouse exit**, **Vietnam warehouse operations**, **customer concentration**, **offshore sourcing reliance**, **IT security**, and **product defects**[28](index=28&type=chunk) - The company undertakes **no obligation to update** forward-looking statements[29](index=29&type=chunk) [Consolidated Financial Statements](index=7&type=section&id=Consolidated%20Financial%20Statements) This section presents the company's consolidated statements of operations, comprehensive income, balance sheets, and cash flows for Q2 and 1H FY26, highlighting key financial changes [Consolidated Statements of Operations](index=7&type=section&id=Consolidated%20Statements%20of%20Operations) For Q2 FY26, net sales decreased to $82.1 million, resulting in a net loss of $3.3 million, while 1H FY26 also saw reduced net sales and a net loss of $6.3 million Consolidated Statements of Operations | Metric | Q2 FY26 (13 Weeks, in thousands) | Q2 FY25 (13 Weeks, in thousands) | 1H FY26 (26 Weeks, in thousands) | 1H FY25 (26 Weeks, in thousands) | | :-------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Net Sales | $82,149 | $95,081 | $167,465 | $188,652 | | Gross Profit | $16,837 | $20,922 | $35,838 | $40,294 | | Operating (Loss) / Income | $(4,401) | $(3,149) | $(7,965) | $(8,169) | | Net (Loss) / Income | $(3,277) | $(1,951) | $(6,329) | $(6,042) | | Basic EPS (in dollars) | $(0.31) | $(0.19) | $(0.60) | $(0.57) | [Consolidated Statements of Comprehensive (Loss) / Income](index=8&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20(Loss)%20%2F%20Income) The consolidated comprehensive loss for Q2 FY26 was $3.3 million and $6.4 million for 1H FY26, including actuarial adjustments and their tax effects Consolidated Statements of Comprehensive (Loss) / Income | Metric | Q2 FY26 (13 Weeks, in thousands) | Q2 FY25 (13 Weeks, in thousands) | 1H FY26 (26 Weeks, in thousands) | 1H FY25 (26 Weeks, in thousands) | | :-------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Net (Loss) / Income | $(3,277) | $(1,951) | $(6,329) | $(6,042) | | Total Comprehensive (Loss) / Income | $(3,311) | $(1,996) | $(6,397) | $(6,132) | [Consolidated Balance Sheets](index=8&type=section&id=Consolidated%20Balance%20Sheets) As of August 3, 2025, total assets decreased to $278.0 million, driven by reductions in current assets, while total liabilities and shareholders' equity also declined Consolidated Balance Sheets | Metric | As of Aug 3, 2025 (in thousands) | As of Feb 2, 2025 (in thousands) | Change (in thousands) | | :-------------------------- | :------------------------------- | :------------------------------- | :-------------------- | | Total Assets | $278,043 | $313,942 | -$35,899 | | Cash and Cash Equivalents | $821 | $6,295 | -$5,474 | | Inventories | $58,532 | $70,755 | -$12,223 | | Total Current Assets | $108,142 | $141,124 | -$32,982 | | Long Term Debt | $5,225 | $21,717 | -$16,492 | | Total Liabilities | $84,923 | $109,559 | -$24,636 | | Total Shareholders' Equity | $193,120 | $204,383 | -$11,263 | [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities significantly increased to $18.1 million in 1H FY26, while net cash used in financing activities rose substantially due to debt repayments Consolidated Statements of Cash Flows | Metric | Aug 3, 2025 (in thousands) | July 28, 2024 (in thousands) | | :------------------------------------ | :------------------------- | :------------------------- | | Net Cash Provided by Operating Activities | $18,107 | $5,314 | | Net Cash Used in Investing Activities | $(2,021) | $(808) | | Net Cash Used in Financing Activities | $(21,560) | $(5,615) | | Net Decrease in Cash and Cash Equivalents | $(5,474) | $(1,109) | | Payments for Long-Term Loans | $(48,955) | $(700) | | Proceeds from Revolving Credit Facility | $32,440 | $0 | [Segment Financial Performance](index=10&type=section&id=Segment%20Financial%20Performance) This section provides a detailed financial breakdown of net sales, gross profit, and operating results by segment, along with order backlog data for Q2 and 1H FY26 [Net Sales, Gross Profit / (Loss), and Operating (Loss) / Income by Segment](index=10&type=section&id=Net%20Sales%2C%20Gross%20Profit%20%2F%20(Loss)%2C%20and%20Operating%20(Loss)%20%2F%20Income%20by%20Segment) This section details net sales, gross profit, and operating results for Hooker Branded, Home Meridian, Domestic Upholstery, and All Other segments for Q2 and 1H FY26, highlighting varied performance Net Sales by Segment | Segment | Q2 FY26 (in thousands) | % Net Sales (Q2 FY26) | Q2 FY25 (in thousands) | % Net Sales (Q2 FY25) | 1H FY26 (in thousands) | % Net Sales (1H FY26) | 1H FY25 (in thousands) | % Net Sales (1H FY25) | | :------------------ | :--------------------- | :-------------------- | :--------------------- | :-------------------- | :--------------------- | :-------------------- | :--------------------- | :-------------------- | | Hooker Branded | $36,250 | 44.1% | $35,785 | 37.6% | $73,359 | 43.8% | $72,593 | 38.5% | | Home Meridian | $16,932 | 20.6% | $30,516 | 32.1% | $35,742 | 21.3% | $56,940 | 30.2% | | Domestic Upholstery | $28,677 | 34.9% | $28,556 | 30.0% | $57,590 | 34.4% | $58,583 | 31.1% | | All Other | $290 | 0.4% | $224 | 0.2% | $774 | 0.5% | $536 | 0.3% | | **Consolidated** | **$82,149** | **100%** | **$95,081** | **100%** | **$167,465** | **100%** | **$188,652** | **100%** | Gross Profit / (Loss) by Segment | Segment | Q2 FY26 (in thousands) | % Net Sales (Q2 FY26) | Q2 FY25 (in thousands) | % Net Sales (Q2 FY25) | 1H FY26 (in thousands) | % Net Sales (1H FY26) | 1H FY25 (in thousands) | % Net Sales (1H FY25) | | :------------------ | :--------------------- | :-------------------- | :--------------------- | :-------------------- | :--------------------- | :-------------------- | :--------------------- | :-------------------- | | Hooker Branded | $10,541 | 29.1% | $10,708 | 29.9% | $21,605 | 29.5% | $22,165 | 30.5% | | Home Meridian | $1,054 | 6.2% | $5,946 | 19.5% | $3,787 | 10.6% | $9,397 | 16.5% | | Domestic Upholstery | $5,305 | 18.5% | $4,646 | 16.3% | $10,585 | 18.4% | $9,351 | 16.0% | | All Other | $(63) | -21.7% | $(378) | -168.8% | $(139) | -18.0% | $(619) | -115.5% | | **Consolidated** | **$16,837** | **20.5%** | **$20,922** | **22.0%** | **$35,838** | **21.4%** | **$40,294** | **21.4%** | Operating (Loss) / Income by Segment | Segment | Q2 FY26 (in thousands) | % Net Sales (Q2 FY26) | Q2 FY25 (in thousands) | % Net Sales (Q2 FY25) | 1H FY26 (in thousands) | % Net Sales (1H FY26) | 1H FY25 (in thousands) | % Net Sales (1H FY25) | | :------------------ | :--------------------- | :-------------------- | :--------------------- | :-------------------- | :--------------------- | :-------------------- | :--------------------- | :-------------------- | | Hooker Branded | $10 | 0.0% | $(329) | -0.9% | $37 | 0.1% | $(150) | -0.2% | | Home Meridian | $(3,916) | -23.1% | $(896) | -2.9% | $(6,754) | -18.9% | $(4,169) | -7.3% | | Domestic Upholstery | $(408) | -1.4% | $(1,285) | -4.5% | $(1,004) | -1.7% | $(2,593) | -4.4% | | All Other | $(87) | -30.0% | $(639) | -285.3% | $(244) | -31.5% | $(1,257) | -234.5% | | **Consolidated** | **$(4,401)** | **-5.4%** | **$(3,149)** | **-3.3%** | **$(7,965)** | **-4.8%** | **$(8,169)** | **-4.3%** | [Order Backlog](index=11&type=section&id=Order%20Backlog) The consolidated order backlog was $51.2 million as of August 3, 2025, with varied trends across segments, including a significant decrease for Home Meridian and growth for Domestic Upholstery Order Backlog by Segment | Reporting Segment | August 3, 2025 (in thousands) | February 2, 2025 (in thousands) | July 28, 2024 (in thousands) | | :------------------ | :---------------------------- | :------------------------------ | :--------------------------- | | Hooker Branded | $15,701 | $13,109 | $15,895 | | Home Meridian | $16,138 | $21,002 | $43,918 | | Domestic Upholstery | $19,313 | $18,123 | $18,066 | | All Other | $- | $402 | $- | | **Consolidated** | **$51,152** | **$52,636** | **$77,879** |