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 November 1, 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: 001-34918 VERA BRADLEY, INC. (Exact name of registrant as specified ...

Financial Performance - Net sales increased from $293.6 million in Q3 2024 to $320.8 million in Q3 2025, a 9.3% increase[54] - Comparable store net sales for Q3 2025 increased 8.3% compared to Q3 2024, driven by a 6.4% increase in transactions and a 4.2% increase in average unit retail[54] - Gross profit for Q3 2025 was $153.9 million, representing 48.0% of net sales, up from 47.7% in Q3 2024[59] - Year-to-date net sales rose from $838.5 million in the first three quarters of 2024 to $898.7 million in 2025, a 7.2% increase[55] - Online sales for Q3 2025 increased 13.6% to $53.0 million compared to $46.6 million in Q3 2024[54] - Year-to-date net income for fiscal 2025 was $128.9 million, compared to $118.3 million for fiscal 2024[64] Operational Efficiency - Income from operations for Q3 2025 was $60.9 million, or 19.0% of net sales, compared to $54.5 million, or 18.6% of net sales, in Q3 2024[63] - The company plans to open 2 new stores and complete 6 full store remodels during the remainder of fiscal 2025, with estimated capital expenditures of $50.0 to $55.0 million[68] Financial Position - The company had working capital of $294.7 million as of November 1, 2025, including $316.2 million in cash and cash equivalents[65] - The company has an unsecured line of credit of $25.0 million with Wells Fargo Bank, with no bank borrowings as of November 1, 2025[70] - As of November 1, 2025, the liability for unredeemed gift cards and certificates was $13.0 million, down from $17.0 million as of February 1, 2025[71] - The accrued liability for sales returns was $3.9 million as of November 1, 2025, compared to $2.6 million as of February 1, 2025[72] - The adjustment to inventory for markdowns and/or obsolescence was $10.0 million as of November 1, 2025, an increase from $9.2 million as of February 1, 2025[75] - Total contractual obligations amounted to $510.9 million as of November 1, 2025, with operating lease payments constituting $460.7 million[78] - The Company has an unsecured line of credit of $25.0 million, with $10.0 million available for letters of credit[78] Seasonal Impact - The holiday and back-to-school seasons accounted for approximately 35% of the Company's fiscal year net sales for fiscal years 2024, 2023, and 2022[79] Risk Factors - A one-quarter percent decline in the interest/dividend rate on cash and investments would decrease the Company's net income by approximately $0.5 million[81] - The Company does not anticipate that the tax reform provisions in the One Big Beautiful Bill Act will have a material impact on its consolidated financial statements[74] - The Company regularly evaluates its estimates related to inventory, investments, incentive bonuses, and income taxes, which could affect reported results[70]

Financial Performance - Net sales increased by 3.3% to $616.2 million in Q3 Fiscal 2026, compared to $596.3 million in Q3 Fiscal 2025, driven by a 3% increase in comparable sales and a 5% increase in same store sales[58]. - Gross margin rose by 1.2% to $288.6 million, but as a percentage of net sales, it decreased from 47.8% in Q3 Fiscal 2025 to 46.8% in Q3 Fiscal 2026[59]. - Selling and administrative expenses increased by 0.3% to $275.7 million, while as a percentage of net sales, it decreased from 46.1% to 44.7%[60]. - Operating margin decreased to 1.4% in Q3 Fiscal 2026 from 1.7% in Q3 Fiscal 2025, primarily due to lower gross margin and higher asset impairment charges[61]. - Net earnings for Q3 Fiscal 2026 were $5.4 million, or $0.50 diluted earnings per share, compared to a net loss of $18.9 million, or $1.76 diluted loss per share, in Q3 Fiscal 2025[64]. Segment Performance - Journeys Group net sales increased by 3.9% to $376.7 million, with an operating margin improvement of 190 basis points to 5.5%[69][71]. - Schuh Group net sales rose by 1.6% to $123.8 million, but operating income fell by 78.6% to $669,000, resulting in an operating margin of 0.5%[74][75]. - Johnston & Murphy Group net sales increased by 3.4% to $81.2 million, but experienced an operating loss of $595,000, with an operating margin of (0.7)%[76][77]. - Genesco Brands Group's net sales increased 3.2% to $34.6 million for Q3 Fiscal 2026 from $33.5 million in Q3 Fiscal 2025, driven by higher footwear sales of Dockers and private label[78]. - Gross margin decreased by 34.9% to $7.7 million in Q3 Fiscal 2026, with gross margin as a percentage of net sales dropping from 35.5% to 22.4%[78]. - Operating income fell 85.5% to $541,000 in Q3 Fiscal 2026, resulting in an operating margin decline from 11.1% to 1.6%[78]. Year-to-Date Performance - For the first nine months of Fiscal 2026, net sales increased 3.6% to $1.64 billion, with a 4% increase in comparable sales[82]. - Gross margin for the first nine months of Fiscal 2026 increased 1.7% to $759.8 million, but decreased as a percentage of net sales from 47.3% to 46.4%[83]. - Selling and administrative expenses for the first nine months of Fiscal 2026 rose 1.4% to $789.0 million, but decreased as a percentage of net sales from 49.3% to 48.2%[86]. - The net loss for the first nine months of Fiscal 2026 was $34.3 million, or $3.31 diluted loss per share, compared to a net loss of $53.3 million, or $4.90 diluted loss per share, in the same period last year[90]. - Journeys Group net sales increased 5.1% to $967.5 million in the first nine months of Fiscal 2026, with an 8% increase in comparable sales[91]. - Schuh Group net sales increased 2.2% to $346.3 million, but total comparable sales decreased 2% due to a challenging retail environment in the U.K.[93]. - Johnston & Murphy Group net sales decreased 0.8% to $226.8 million, primarily due to decreased same store sales and a 3% decrease in the average number of stores[95]. Expenses and Cash Flow - Corporate and other expenses for the first nine months of Fiscal 2026 were $28.8 million, up from $27.2 million in the same period of Fiscal 2025, with asset impairment and other charges of $4.7 million included in Fiscal 2026[99]. - Net interest expense increased by 6.8% to $3.7 million in the first nine months of Fiscal 2026, compared to $3.4 million in the same period of Fiscal 2025, primarily due to increased borrowings in the U.K.[100]. - Net cash used in operating activities decreased by $1.5 million to $(27,597) thousand in the first nine months of Fiscal 2026 compared to $(29,108) thousand in Fiscal 2025[103]. - Net cash used in investing activities increased by $24.8 million to $(52,185) thousand in the first nine months of Fiscal 2026, reflecting higher capital expenditures related to retail store investments[103]. - Cash provided by financing activities increased by $17.9 million to $72,435 thousand in the first nine months of Fiscal 2026, primarily due to increased net borrowings[104]. Capital Expenditures and Obligations - Total capital expenditures for Fiscal 2026 are expected to be approximately $55 to $65 million, with about 80% allocated for new stores and renovations[111]. - The company repurchased 604,531 shares of common stock for $12.6 million at an average cost of $20.79 per share during the first nine months of Fiscal 2026[112]. - Contractual obligations increased by 26% compared to February 1, 2025, primarily due to increased long-term debt and lease obligations[110]. - As of November 1, 2025, the company had $65.0 million in U.S. revolver borrowings and was in compliance with all relevant terms of the Credit Facility[106]. - The company expects to meet its liquidity needs in Fiscal 2026 through cash on hand, cash from operations, and borrowings under its Credit Facility[107].

Financial Performance - Consolidated net sales for the first nine months of Fiscal 2025 were $1,103,348, a decrease of 2.0% from $1,126,095 in Fiscal 2024[83]. - Operating loss for the first nine months of Fiscal 2025 was $23,481 compared to an operating income of $98,721 in Fiscal 2024[83]. - Net loss for the first nine months of Fiscal 2025 was $20,810, down from net earnings of $75,078 in Fiscal 2024, resulting in a net loss per diluted share of $1.39 compared to earnings of $4.74[83]. - Comparable sales for the third quarter of Fiscal 2025 decreased slightly by 0.2% to $307,344 from $308,025 in the third quarter of Fiscal 2024[95]. - Consolidated net sales for Q3 Fiscal 2025 were $307 million, a decrease of $681,000 or 0.2% compared to $308 million in Q3 Fiscal 2024[96]. - Consolidated net sales for the first nine months of Fiscal 2025 were $1,103 million, a decrease of $22.7 million or 2.0% compared to $1,126 million in Fiscal 2024[134]. - Tommy Bahama net sales decreased by $33 million or 5%, while Lilly Pulitzer net sales increased by $14 million or 6% in the same period[135]. - The overall net sales for the company in Q3 Fiscal 2025 were $307.3 million, slightly down from $308.0 million in Q3 Fiscal 2024[130]. Cost and Expenses - Cost of goods sold increased by 7.5% to $122,073 in the third quarter of Fiscal 2025, impacting gross profit which fell by 4.8% to $185,271[95]. - SG&A expenses rose by 3.8% to $212,554 in the third quarter of Fiscal 2025, contributing to an operating loss of $85,098 compared to a loss of $6,240 in the same period last year[95]. - Gross profit for the first nine months of Fiscal 2025 was $685 million, down $32.7 million or 4.6% from $718 million in Fiscal 2024, with a gross margin of 62.1% compared to 63.8%[143]. - SG&A expenses increased to $661 million, up $26.2 million or 4.1% from $635 million in Fiscal 2024, representing 59.9% of net sales[149]. - Interest expense increased significantly to $4.9 million, up $3.3 million or 212.4% compared to $1.6 million in Fiscal 2024[134]. Impairment and Losses - The company recognized noncash impairment charges of $61 million primarily related to Johnny Was in the third quarter of Fiscal 2025[83]. - Noncash impairment charges totaled $61 million in Q3 Fiscal 2025, including $57 million related to Johnny Was intangible assets[115]. - Johnny Was experienced a substantial operating loss of $61.7 million in Q3 Fiscal 2025, compared to a loss of $4.1 million in Q3 Fiscal 2024, marking a 1412.7% decline[122]. - Net earnings loss was $20.8 million, down $95.9 million or 127.7% from net earnings of $75.1 million in Fiscal 2024[134]. Sales Channels and Growth - Direct to consumer channels accounted for 81% of consolidated net sales in Fiscal 2024, with the remaining 19% from wholesale distribution[76]. - The total number of direct to consumer locations increased to 358 as of November 1, 2025, up from 345 in the previous quarter[90]. - Emerging Brands net sales increased by $5 million, or 17%, driven by a 29% increase in e-commerce sales[104]. - E-commerce sales increased by $5 million, or 5%, with Lilly Pulitzer and Emerging Brands showing significant growth[101]. - Lilly Pulitzer saw a 7% increase in e-commerce sales, contributing to its overall sales growth[139]. - Emerging Brands saw a 12.5% increase in net sales to $108.9 million, but operating income fell to $2, a decrease of 100%[160]. Tax and Interest - The income tax benefit for Q3 Fiscal 2025 was $(23.1) million, a significant increase from $(2.9) million in Q3 Fiscal 2024, reflecting a 691.5% change[127]. - The effective tax rate for Q3 Fiscal 2025 was 26.6%, a decrease from 42.5% in Q3 Fiscal 2024, influenced by various factors including geographic mix of earnings[128]. - The effective tax rate for the first nine months of Fiscal 2025 was 26.7%, up from 22.7% in Fiscal 2024, influenced by various tax factors[164]. Capital and Investments - The company plans to continue investing in direct-to-consumer initiatives and information technology projects, supported by anticipated future cash flows[191]. - Capital expenditures for the First Nine Months of Fiscal 2025 were $93 million, slightly up from $92 million in the same period of Fiscal 2024[206]. - The company is building a new distribution center in Lyons, Georgia, as part of its capital expenditures[207]. - A cash dividend of $0.69 per share was approved, payable on January 30, 2026, to shareholders of record as of January 16, 2026[201]. Debt and Liquidity - Long-term debt increased to $140,436 as of November 1, 2025, compared to $29,304 as of November 2, 2024, indicating a significant rise in leverage[182]. - As of November 1, 2025, outstanding borrowings under the U.S. Revolving Credit Agreement totaled $140 million, with unused availability of $179 million[194]. - The company has maintained compliance with all applicable covenants related to the U.S. Revolving Credit Agreement as of November 1, 2025[199]. - The company is exposed to increased interest rate risks due to higher borrowings compared to February 1, 2025[215].

Store Operations - As of November 1, 2025, Build-A-Bear operated 375 corporately-managed stores globally, 168 partner-operated locations, and 108 international franchised stores, with a total of 651 locations[74]. - During the first thirty-nine weeks of fiscal 2025, Build-A-Bear opened a net of 52 new retail experience locations, with expectations of at least 60 new locations for the full fiscal year[80]. - 53% of corporately-managed stores were in an updated Discovery format as of November 1, 2025, indicating a shift towards modernized retail experiences[81]. - The number of partner-operated locations increased to 168 by the end of the third quarter of 2025, with relationships including Carnival Cruise Line and Great Wolf Lodge Resorts[82]. - The company opened 21 new franchised stores during the thirty-nine weeks ended November 1, 2025, bringing the total to 108 franchised stores[84]. Financial Performance - The company reported growth in total revenues and pretax profit in fiscal years 2022, 2023, and 2024, driven by strategic initiatives implemented prior to and during the pandemic[80]. - Total revenues increased by $29.4 million or 8.5% for the thirty-nine weeks ended November 1, 2025, driven by an 8.0% increase in Net Retail sales and a 15% increase in Commercial revenue compared to the same period in 2024[97]. - Net retail sales for the thirty-nine weeks ended November 1, 2025, were $346.5 million, up from $320.8 million for the same period in 2024, with existing stores contributing $17.2 million and new stores contributing $11.4 million[98]. - Commercial revenue reached $25.2 million for the thirty-nine weeks ended November 1, 2025, compared to $21.9 million in the prior year, reflecting a $3.3 million increase primarily from wholesale accounts[99]. - Retail gross margin dollars increased by $20.9 million to $194.6 million for the thirty-nine weeks ended November 1, 2025, with the retail gross margin rate improving by 210 basis points compared to the previous year[101]. - EBITDA for the thirty-nine weeks ended November 1, 2025, increased by $6.2 million or 12.4% to $56.1 million from $49.9 million for the same period in 2024[106]. Strategic Initiatives - Build-A-Bear's digital transformation includes enhancements in marketing, loyalty programs, and digital content to increase consumer engagement and expand its total addressable market[80]. - The company aims to drive profitable growth while returning capital to shareholders through dividends and share repurchases, supported by improved cash flows from robust operating margins[80]. - Build-A-Bear's retail strategy includes expanding into non-traditional locations, such as tourist destinations, and evolving its store formats to adapt to market trends[73]. - The company leverages its brand strength through outbound licensing agreements and engaging content creation to enhance its product offerings and consumer experiences[79]. - Build-A-Bear's omnichannel capabilities include both physical and digital engagement, with retail stores acting as mini distribution centers for efficient fulfillment of digital demand[77]. Cash Flow and Investments - As of November 1, 2025, the consolidated cash balance was $27.7 million, with 79% domiciled in the U.S.[112]. - Net cash provided by operating activities increased by $12.7 million to $40.3 million for the thirty-nine weeks ended November 1, 2025, compared to $27.6 million for the same period in 2024[113]. - Cash used in investing activities increased by $3.3 million to $12.9 million for the thirty-nine weeks ended November 1, 2025, primarily due to increased capital expenditures[114]. - Cash used in financing activities decreased by $5.9 million to $27.5 million for the thirty-nine weeks ended November 1, 2025, driven by reduced share repurchases[115]. - Capital spending totaled $12.9 million for information technology projects and new store openings, with an expected expenditure of $20 to $25 million in fiscal 2025[119]. - Purchase obligations totaled approximately $119.7 million as of November 1, 2025, with $27.4 million due in the next 12 months[121]. Market Conditions - Inflation has impacted operations, particularly through higher store labor costs and increased input prices, with expectations of continued inflationary pressures throughout fiscal 2025[124].

Financial Performance - For the three months ended October 31, 2025, the company reported a net loss of $(334,027), or $(0.17) per share, compared to a net income of $26,657, or $0.01 per share in the same period of 2024[70]. - Revenues decreased to $5,251,414 from $5,539,129 in the comparable period, primarily due to tenant losses and decreased rents[71]. - Real estate operating expenses increased to $4,077,513 from $3,750,139, driven by higher real estate taxes, insurance, and maintenance expenses[72]. - Administrative and general expenses decreased to $1,189,818 from $1,292,753, mainly due to lower legal and professional fees[73]. Cash Flow and Liquidity - Net cash provided by operating activities was $1,922,263, an increase from $1,802,641 in the prior year[78]. - As of October 31, 2025, total liquidity was $2,188,982, including cash and cash equivalents[80]. Capital Expenditures and Debt - The company anticipates incurring an additional $1.9 million in capital expenditures over the next twelve months[80]. - The company has outstanding mortgage debt of approximately $3.2 million, with a maturity date of April 1, 2040[81]. Lease Agreements - The company exercised a lease extension for its Jamaica Avenue property, extending the lease through May 31, 2040[75]. - The company leased 20,000 square feet of retail space at its Massapequa building for a monthly rent starting at $4,500, increasing to $5,500 after the first year[76].

FOR IMMEDIATE RELEASE Ciena Reports Fiscal Fourth Quarter 2025 and Year-End Financial Results HANOVER, Md. - December 11, 2025 - Ciena Corporation (NYSE: CIEN) today announced financial results for its fiscal fourth quarter and year ended November 1, 2025. ® "Our record fiscal fourth quarter and full-year performance reinforces our position as the global leader in high-speed connectivity with an expanding role in the AI ecosystem," said Gary Smith, president and CEO, Ciena. "Looking ahead, we are confident ...

Financial Performance - Net sales for the thirteen weeks ended November 2, 2025, were $150,166, a slight increase from $149,905 for the same period in 2024, representing a growth of 0.2%[20] - Gross profit for the thirty-nine weeks ended November 2, 2025, was $249,215, compared to $252,053 for the same period in 2024, indicating a decrease of 1.1%[20] - The net loss for the thirteen weeks ended November 2, 2025, was $10,551, compared to a net loss of $4,930 for the same period in 2024, reflecting an increase in losses of 114%[20] - Operating loss for the thirty-nine weeks ended November 2, 2025, was $39,581, compared to $33,950 for the same period in 2024, an increase of 16.5%[20] - For the thirteen weeks ended November 2, 2025, total net sales were $150.2 million, a slight increase from $149.9 million for the same period in 2024[40] - The company reported a net cash used in operating activities of $34,093 for the thirty-nine weeks ended November 2, 2025, compared to $5,046 for the same period in 2024, indicating a significant increase in cash outflow[24] - For the thirty-nine weeks ended November 2, 2025, total net sales were $449.069 million, compared to $439.138 million for the same period in 2024, representing a 2.1% increase[75] - The basic and diluted net loss per share for the thirteen weeks ended November 2, 2025, was $0.72, compared to $0.32 for the same period in 2024, indicating a significant decline in earnings per share[48] Assets and Liabilities - Total current assets decreased from $246,597 as of February 2, 2025, to $185,986 as of November 2, 2025, a decline of 24.5%[18] - Total liabilities decreased from $315,895 as of February 2, 2025, to $306,207 as of November 2, 2025, a reduction of 3.4%[18] - Cash and cash equivalents dropped significantly from $83,734 as of February 2, 2025, to $23,722 as of November 2, 2025, a decrease of 71.6%[18] - As of November 2, 2025, customer deposit liabilities amounted to $8.7 million, down from $11.3 million as of February 2, 2025[38] - As of November 2, 2025, the company's borrowing availability under the line of credit was $36,000,000, up from $32,600,000 as of February 2, 2025, indicating improved liquidity[58] Sales Channels - Showroom sales accounted for $102.7 million, representing a 12.1% increase from $91.0 million in the prior year[40] - Internet sales decreased to $37.3 million from $44.9 million, a decline of 16.9% year-over-year[40] - Net sales from showrooms constituted 68.4% and 60.7% of total net sales for the thirteen weeks ended November 2, 2025, and November 3, 2024, respectively[88] - Ecommerce sales represented 24.8% and 29.9% of total net sales for the thirteen weeks ended November 2, 2025, and November 3, 2024, respectively[88] - Other net sales, including pop-up-shop sales, accounted for 6.8% and 9.4% of total net sales for the thirteen weeks ended November 2, 2025, and November 3, 2024, respectively[90] Expenses - Research and development expenses were $2.3 million for both the thirteen weeks ended November 2, 2025, and November 3, 2024[34] - Shipping and handling costs increased to $31.3 million for the thirteen weeks ended November 2, 2025, compared to $26.1 million in the prior year, reflecting a 19.7% increase[36] - Total lease expense for the thirty-nine weeks ended November 2, 2025, was $31,490,000, an increase from $30,086,000 for the same period in 2024, reflecting a year-over-year increase of approximately 4.7%[49] - Selling, general and administrative (SG&A) expenses rose by $3.2 million, or 4.5%, with SG&A as a percentage of net sales increasing to 49.9% from 47.9%[110] - Advertising and marketing expenses are projected to rise as the company drives net sales growth[101] Equity and Stock - The company incurred $8,201 in equity-based compensation for the thirty-nine weeks ended November 2, 2025, compared to $6,687 for the same period in 2024, an increase of 22.6%[24] - The company recognized equity-based compensation expense of $2.4 million for the thirteen weeks ended November 2, 2025, compared to $2.8 million for the same period in 2024[66] - The total unrecognized equity-based compensation cost related to unvested RSU and PSU awards was approximately $20.3 million as of November 2, 2025[67] - The company repurchased and retired 306,325 shares of common stock for $6.0 million during the thirty-nine weeks ended November 2, 2025[70] - As of November 2, 2025, approximately $14.1 million remained available for future purchases under the share repurchase program[71] Legal and Compliance - The company has been involved in multiple legal proceedings, including a derivative action that was settled on October 2, 2025, concluding the litigation[54] - There were no material changes in internal control over financial reporting during the quarter ended November 2, 2025[147] Future Outlook - The company expects gross profit to increase as net sales grow and scale economics are realized with manufacturing partners[97] - Selling, general and administrative expenses are expected to increase as the company continues to grow its business[100] - The company continues to monitor inflationary pressures and their impact on costs, implementing pricing strategies and productivity improvements[144] - Macroeconomic factors such as inflation and elevated interest rates have negatively impacted demand, contributing to a slowdown in business[85]

Financial Performance - Q3 FY26 net sales increased by 0.2% to $150.2 million compared to Q3 FY25, driven by showroom growth despite declines in internet and other sales channels[1][3][7] - Showroom sales rose by 12.8% to $102.7 million, while internet sales decreased by 16.9% to $37.3 million in Q3 FY26[3][7] - Gross profit decreased by $3.4 million, or 3.9%, with gross margin declining 240 basis points to 56.1% due to increased transportation and tariff costs[3][7] - SG&A expenses increased by 4.5% to $75.0 million, primarily due to payroll and overhead costs[3][7] - The operating loss for Q3 FY26 was $15.8 million, compared to a loss of $7.7 million in the prior year, resulting in an operating margin of (10.5)%[3][7] - Net loss for Q3 FY26 was $10.6 million, or $(0.72) per share, compared to a net loss of $4.9 million, or $(0.32) per share, in Q3 FY25[3][7] - The operating loss for the thirteen weeks ended November 2, 2025, was $15.804 million, compared to a loss of $7.723 million in the prior year, indicating a significant increase in losses[22] - The net loss for the thirty-nine weeks ended November 2, 2025, was $28.041 million, compared to a net loss of $23.751 million for the same period in 2024, representing an increase of approximately 18%[22] - For the thirteen weeks ended November 2, 2025, the net loss was $10,551,000 compared to a net loss of $4,930,000 for the same period in 2024, representing a year-over-year increase in losses of approximately 114%[26] - The total net loss for the thirty-nine weeks ended November 2, 2025 was $28,041,000, compared to a net loss of $23,751,000 for the same period in 2024, indicating an increase in losses of about 18%[26] Cash and Assets - Cash and cash equivalents decreased to $23.7 million as of November 2, 2025, down from $61.7 million a year earlier[9] - Cash and cash equivalents decreased to $23.722 million as of November 2, 2025, down from $83.734 million at the beginning of the period[24] - Total current assets decreased to $185.986 million as of November 2, 2025, compared to $246.597 million as of February 2, 2025[20] - Total merchandise inventory increased to $129.7 million as of November 2, 2025, primarily due to increased freight capitalization and planned stock inventory[9] - Total liabilities as of November 2, 2025, were $306.207 million, a decrease from $315.895 million as of February 2, 2025[20] Future Outlook - The company aims to reach three million Lovesac households by 2030, focusing on product innovation and marketing evolution[2] - For the full year of fiscal 2026, the company expects net sales in the range of $685 million to $705 million and adjusted EBITDA between $37 million and $43 million[14] Expenses and Other Financial Metrics - The company reported a net cash used in operating activities of $34.093 million for the thirty-nine weeks ended November 2, 2025, compared to $5.046 million for the same period in 2024[24] - The company incurred $18.211 million in capital expenditures for property and equipment during the thirty-nine weeks ended November 2, 2025[24] - Interest income, net for the thirty-nine weeks ended November 2, 2025 was $(632,000), down from $(2,139,000) in the same period of 2024, indicating a decrease of approximately 70%[26] - Depreciation and amortization expenses for the thirty-nine weeks ended November 2, 2025 totaled $11,451,000, up from $10,924,000 in the same period of 2024, marking an increase of about 4.8%[26] - Equity-based compensation expenses for the thirty-nine weeks ended November 2, 2025 were $8,337,000, an increase from $6,748,000 in the same period of 2024, representing a growth of approximately 23.5%[26] Non-Recurring Expenses - The company reported a total of $3,397,000 in other non-recurring expenses for the thirteen weeks ended November 2, 2025, which included severance and professional fees related to financial statement restatements[27] - Other non-recurring expenses for the thirty-nine weeks ended November 2, 2025 included impairment charges related to the Best Buy partnership discontinuation[27] - The company incurred a loss on disposal of assets amounting to $2,000 for the thirteen weeks ended November 2, 2025, compared to $12,000 for the same period in 2024[27] Tax and Income - The income tax benefit for the thirteen weeks ended November 2, 2025 was $(5,047,000), compared to $(2,092,000) for the same period in 2024, reflecting an increase in tax benefits of approximately 141%[26]

Financial Performance - Hooker Furnishings reported a consolidated net sales decrease of 14.4% in Q3, primarily due to an $11 million reduction in shipments from the Samuel Lawrence Hospitality segment[8]. - Net sales for the thirteen weeks ended November 2, 2025, were $70,730,000, a decrease of 14.5% compared to $82,670,000 for the same period in 2024[27]. - Consolidated net sales for the thirteen weeks ended November 2, 2025, were $70,730 million, down from $82,670 million in the same period of 2024, representing a decrease of 14.4%[38]. - Gross profit for the thirty-nine weeks ended November 2, 2025, was $52,736,000, down from $55,681,000 in 2024, reflecting a decline of 3.4%[28]. - The company reported a net loss of $21,174,000 for the thirteen weeks ended November 2, 2025, compared to a net loss of $4,131,000 for the same period in 2024[30]. - Basic loss per share for the thirteen weeks ended November 2, 2025, was $1.99, compared to a loss of $0.39 per share in the same period of 2024[28]. - Operating loss for the thirty-nine weeks ended November 2, 2025, was $17,418,000, compared to an operating loss of $9,581,000 in 2024[28]. - Net loss for the thirty-nine weeks ended November 2, 2025, was $27,503 million, compared to a loss of $10,174 million for the same period in 2024[35]. Cost Management - The company achieved approximately $25–$26.5 million in annualized savings from its multi-phase cost-reduction program, reducing its overall cost structure by 25% over the past 18 months[4][6]. - Selling and administrative expenses for the thirty-nine weeks ended November 2, 2025, were $52,667,000, down from $62,408,000 in 2024, indicating a reduction of 15.6%[28]. Impairment Charges - The company recorded non-cash impairment charges totaling $22.1 million in Q3, impacting its operating loss of $16.3 million for the quarter[8]. - The company incurred goodwill and trade name impairment charges of $15,576,000 for the thirteen weeks ended November 2, 2025, compared to $781,000 in the same period of 2024[28]. - The company reported a tradename impairment of $15,576 million for the thirty-nine weeks ended November 2, 2025, compared to $778 million in the previous year[35]. Sales and Orders - Hooker Branded net sales increased by 1.1% in both Q3 and the nine-month period, driven by higher average selling prices despite lower unit volume[7]. - Domestic Upholstery net sales rose by $870,000, or 3.0%, in Q3, with a mixed performance across divisions[13]. - Order backlog declined by 10.3% from fiscal year-end and 23.8% from the prior-year Q3, attributed to a large hospitality project in the previous year[8]. - The order backlog as of November 2, 2025, was $32,735 million, a decrease from $42,938 million in October 2024, reflecting a decline of 23.7%[41]. Cash and Liquidity - Cash and cash equivalents decreased to $1.4 million, with $63.8 million in available borrowing capacity as of quarter-end[11][12]. - Cash used in financing activities for the thirty-nine weeks ended November 2, 2025, was $25,511 million, compared to $8,311 million in the same period of 2024, indicating increased cash outflows[36]. - Cash and cash equivalents decreased from $6,295 million at the beginning of the year to $1,354 million at the end of the quarter, a decline of 78.4%[36]. Strategic Initiatives - A new share repurchase program has been authorized, allowing the company to repurchase up to $5 million of its outstanding common shares, alongside a recalibrated dividend reduced by 50% to $0.46 per share annually[14][15]. - The launch of the Margaritaville licensed collection is expected to drive significant organic growth, supported by a 14,000-square-foot showroom and 55 committed retail galleries across the U.S.[4]. - The company aims to improve profitability despite macroeconomic challenges, focusing on its core businesses for sustainable growth[18]. Risks and Challenges - Future risks include potential adverse political acts affecting international markets and the cyclical nature of the furniture industry, which is sensitive to consumer confidence[24]. - The company plans to monitor macroeconomic conditions and adjust its strategies accordingly to mitigate risks associated with consumer spending patterns[24]. Assets and Liabilities - Total assets decreased from $313,942 million in February 2025 to $240,237 million in November 2025, a decline of approximately 23.4%[32]. - Long-term debt increased significantly from $21,717 million in February 2025 to $3,815 million in November 2025, indicating a reduction in leverage[33]. - Total current liabilities remained relatively stable at $39,541 million in November 2025 compared to $39,974 million in February 2025[33].