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].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Securities registered pursuant to Section 12(b) of the Act: For the quarterly period ended October 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 Number 001-40854 NUTRIBAND INC. (Exact name of registrant as specified i ...

Operating Expenses - Total operating expenses for the three months ended October 31, 2025, were approximately $4,555,000, an increase of $2,413,000 compared to $2,142,000 for the same period in 2024[124] - For the six months ended October 31, 2025, total operating expenses were approximately $8,193,000, up from $4,735,000 in 2024, reflecting an increase of $3,458,000[125] Net Loss - The company reported a net loss of approximately $4,483,000 for the three months ended October 31, 2025, compared to a net loss of $2,103,000 for the same period in 2024[129] - For the six months ended October 31, 2025, the net loss was approximately $6,560,000, slightly higher than the $6,428,000 loss reported in 2024[132] Current Assets and Liabilities - As of October 31, 2025, the company had current assets of $9,834,961, an increase of $939,563 from $8,895,398 as of April 30, 2025[130] - Current liabilities increased to $1,670,308 as of October 31, 2025, compared to $879,953 as of April 30, 2025, reflecting an increase of $790,355[130] - The company had working capital of $8,164,653 as of October 31, 2025, an increase of $149,208 from $8,015,445 as of April 30, 2025[130] Cash Flow - Net cash used in operating activities for the six months ended October 31, 2025, totaled approximately $7,110,000, an increase from $4,012,000 in 2024[134] - The company reported net cash provided by financing activities of approximately $8,898,000 for the six months ended October 31, 2025, primarily from warrant exercises[136] Project Development - The company plans to use Glencore Technology's Jameson Cell Flotation Equipment for enhanced gold and copper recovery at the CK Gold Project[122]

Financial Position - As of October 31, 2025, HP's cash and cash equivalents were $3.69 billion, a decrease from $3.74 billion in 2024[222] - Total debt as of October 31, 2025, was $9.67 billion, with short-term debt at $0.85 billion and long-term debt at $8.82 billion[232] - The weighted-average interest rate on HP's debt increased slightly to 4.6% in 2025 from 4.5% in 2024[232] - As of October 31, 2025, total contractual obligations amount to $14.97 billion, with $2.24 billion due in the short term and $12.73 billion in the long term[241] - Principal payments on debt total $9.69 billion, with $831 million due in the short term and $8.86 billion in the long term[241] - Interest payments on debt are projected at $2.78 billion, with $406 million due in the short term and $2.37 billion in the long term[241] - Purchase obligations are estimated at $1.09 billion, with $509 million due in the short term and $576 million in the long term[241] - Operating lease obligations total $1.39 billion, with $474 million due in the short term and $913 million in the long term[241] Cash Flow - Net cash provided by operating activities for fiscal year 2025 was $3.70 billion, down from $3.75 billion in 2024[222] - Net cash used in investing activities increased to $1.18 billion in 2025, primarily due to higher investments in property and equipment[229] - The cash conversion cycle improved to (38) days in 2025 from (42) days in 2024, driven by changes in accounts receivable and inventory management[224] Shareholder Returns - HP returned $1.9 billion to shareholders in fiscal year 2025, including $1.1 billion in cash dividends and $0.8 billion in share repurchases[231] - The company has approximately $8.4 billion remaining under share repurchase authorizations as of October 31, 2025[231] Liquidity and Financing - HP's liquidity is supported by a $5.0 billion sustainability-linked revolving credit facility maturing in 2029[236] - Third-party short-term financing arrangements are in place to support working capital requirements for certain customers[247] Future Obligations and Plans - The company expects to contribute approximately $43 million to non-U.S. pension plans and $31 million to U.S. non-qualified pension plan participants in fiscal year 2026[242] - Future cash payments related to approved restructuring plans are expected to be around $0.2 billion in fiscal year 2026[243] - Recorded liabilities for uncertain tax positions amount to approximately $797 million, including related interest and penalties[244] - The company has not engaged in off-balance sheet arrangements that would create material relationships with unconsolidated entities[246] Strategic Initiatives - HP's Fiscal 2023 Plan aims to drive growth through investments in product mix and structural cost savings[12]

Financial Performance - Net sales for the three months ended November 1, 2025, were $85,126, an increase of $4,964 or 6.2% compared to $80,162 for the same period in 2024[164] - Gross profit for the three months ended November 1, 2025, was $41,907, up 4.6% from $40,058 in the prior year, with a gross margin of 49.2% compared to 50.0%[165] - Selling, general and administrative (SG&A) expenses increased by $2,175 or 6.3% to $36,472, maintaining a consistent percentage of sales at 42.8%[165] - Net income for the three months ended November 1, 2025, was $2,726, down from $4,349 in the same period last year, with diluted earnings per share at $0.21 compared to $0.34[163] - For the nine months ended November 1, 2025, total net sales were $216,300, an increase of $2,798, or 1.3%, compared to $213,502 for the same period in 2024[178] - Gross profit for the nine months ended November 1, 2025, increased by 2.8% to $108,008, with a gross margin of 49.9%, up from 49.2% in the prior year[179] - SG&A expenses decreased by $4,381, or 4.4%, to $95,860 for the nine months ended November 1, 2025, representing 44.3% of sales compared to 47.0% in the prior year[180] Segment Performance - Vince Wholesale segment net sales increased by $3,250 or 6.7% to $52,015, driven primarily by increased shipments[173] - Income from operations for the Vince Wholesale segment rose by $211 or 1.2% to $18,434, despite increased SG&A expenses and a decrease in gross margin due to tariffs[174] - Vince Direct-to-consumer segment net sales increased by $1,714, or 5.5%, to $33,111 for the three months ended November 1, 2025, compared to $31,397 for the same period in 2024[176] - Income from operations for the Vince Direct-to-consumer segment rose to $1,177 for the three months ended November 1, 2025, up from $614 in the same period in 2024, driven by increased net sales[177] - Net sales from the Vince Wholesale segment increased by $861, or 0.7%, to $127,067 for the nine months ended November 1, 2025, primarily due to increased shipments of off-price products[188] - Income from operations for the Vince Direct-to-consumer segment improved to $588 for the nine months ended November 1, 2025, compared to a loss of $848 in the same period in 2024[191] Expenses and Financing - Interest expense decreased by $718 or 42.5% to $973 due to lower levels of debt under the Third Lien credit facility[166] - Interest expense decreased by $2,306, or 46.3%, to $2,678 for the nine months ended November 1, 2025, primarily due to lower debt levels[181] - Net cash used in operating activities was $12,681 for the nine months ended November 1, 2025, compared to $633 for the same period in 2024, driven by cash outflows in working capital[195][196] - Net cash provided by financing activities was $17,310 for the nine months ended November 1, 2025, compared to $3,087 for the same period in 2024, indicating a significant increase of 460%[198][199] Capital and Debt Management - Capital expenditures for the nine months ended November 1, 2025, were $4,165, up from $2,725 in the same period in 2024, primarily related to retail store buildouts[197] - The company had $47,255 available under the 2023 Revolving Credit Facility as of November 1, 2025, with $27,563 in borrowings and $6,191 in letters of credit outstanding[210] - The weighted average interest rate for borrowings under the 2023 Revolving Credit Facility was 6.6% as of November 1, 2025[210] - The 2023 Revolving Credit Facility has a total capacity of $85,000, with a letter of credit sublimit of $10,000, and matures on June 23, 2028[202] - Following the P180 Acquisition, the outstanding principal amount of the Third Lien Credit Facility was reduced by approximately $27,000, leaving $7,500 remaining outstanding[219] - The company recorded a gain upon extinguishment of the Third Lien Credit Facility amounting to $11,575, which was recognized as a capital contribution within equity[220] - The company is in compliance with all applicable covenants as of November 1, 2025[210] Company Structure and Operations - The company operates 46 full-price retail stores and 14 outlet stores, with a focus on the Vince brand following the sale of the Rebecca Taylor and Parker brands[153] - The company has identified two reportable segments: Vince Wholesale and Vince Direct-to-consumer, with unallocated corporate expenses related to the Vince brand[158] Taxation and Compliance - The provision for income taxes for the three months ended November 1, 2025, was $2,002, compared to $0 in the prior year, reflecting a shift from losses to taxable income[168] - The company is classified as a "smaller reporting company" and is not required to provide certain market risk information[224] Industry Context - The apparel and fashion industry is cyclical, affecting revenues based on economic conditions and seasonal trends[221] - Management's discussion and analysis relies on condensed consolidated financial statements based on critical accounting policies[222] - As of November 1, 2025, there have been no material changes to the critical accounting estimates[223]

Revenue Performance - Product revenue for Q3 FY2026 was $534.8 million, an 18% increase from $454.7 million in Q3 FY2025[172] - Subscription services revenue for Q3 FY2026 was $429.7 million, a 14% increase from $376.3 million in Q3 FY2025[172] - Total revenue for Q3 FY2026 reached $964.5 million, a 16% increase from $831.1 million in Q3 FY2025[172] - Subscription Annualized Recurring Revenue (ARR) at the end of Q3 FY2026 was $1.84 billion, reflecting a 17% year-over-year growth[178] - Total remaining performance obligations (RPO) at the end of Q3 FY2026 were $2.9 billion, indicating a 24% year-over-year growth[179] - Revenue in the United States grew 22% in Q3 FY2026, from $561.9 million to $683.2 million[175] - Revenue from the rest of the world grew 4% in Q3 FY2026, from $269.2 million to $281.3 million[175] Product Development and Expenses - The introduction of new products at Pure//Accelerate included the general availability of Pure Storage Cloud Azure Native and FlashArray//X R5[157] - The company expects research and development expenses to increase in absolute dollars to support product development and operational scale[165] - Sales and marketing expenses are anticipated to rise as the company invests in capturing growth opportunities, particularly in the enterprise market[166] - Total product cost of revenue decreased by $2,964 thousand (2%) in Q3 2026 compared to Q3 2025, while total subscription services cost of revenue increased by $21,890 thousand (23%) in the same period[182] - Product gross margin improved to 72% in Q3 2026 from 66% in Q3 2025, driven by royalties from hyperscaler shipments and a favorable product mix[182] - Research and development expenses increased by $56,278 thousand (28%) in Q3 2026 compared to Q3 2025, primarily due to higher employee compensation and related costs[186] - Sales and marketing expenses rose by $37,987 thousand (15%) in Q3 2026 compared to Q3 2025, mainly due to increased employee compensation and travel costs[188] - General and administrative expenses increased by $25,959 thousand (39%) in Q3 2026 compared to Q3 2025, driven by higher employee compensation and related costs[192] Financial Position and Cash Flow - Cash, cash equivalents, and marketable securities totaled $1.5 billion at the end of Q3 2026, sufficient to fund operating and capital needs for at least the next 12 months[197] - A $500 million revolving credit facility was established in June 2025, replacing a prior $300 million facility, with proceeds available for general corporate purposes[199] - The company may pursue acquisitions or investments in complementary businesses and technologies to support growth opportunities[198] - U.S. Dollar denominated borrowings under the Credit Facility bear interest at a base rate with a margin ranging from 0% to 0.50% or the term SOFR rate with a margin from 0.875% to 1.50%[200] - As of the end of Q3 fiscal 2026, there were no outstanding borrowings, and the company was in compliance with all covenants under the Credit Facility, maintaining a Consolidated Net Leverage Ratio of 3.5:1[201] - Outstanding letters of credit increased from $7.2 million at the end of fiscal 2025 to $13.5 million at the end of Q3 fiscal 2026[202] - The company repurchased approximately 0.6 million shares at an average price of $87.23 per share for a total of $53.3 million during Q3 fiscal 2026, and 3.9 million shares for $215.4 million in the first three quarters of fiscal 2026[203] - Net cash provided by operating activities increased from $545.1 million in the first three quarters of fiscal 2025 to $612.1 million in fiscal 2026, driven by higher net income and stock-based compensation[205] - Capital expenditures in the first three quarters of fiscal 2026 amounted to $197.8 million, supporting the Evergreen//One offering and data center expansion[208] - Net cash used in financing activities during the first three quarters of fiscal 2026 was $449.966 million, primarily due to share repurchases and tax withholding remittances[210] - The company had cash, cash equivalents, and marketable securities totaling $1.5 billion at the end of Q3 fiscal 2026, with a potential $7.0 million decrease in fair value due to a hypothetical 1.00% increase in interest rates[219][220] Foreign Currency and Other Income - Adverse changes in foreign currency exchange rates of 10% could have resulted in an approximate $8.8 million impact on income before income taxes at the end of Q3 fiscal 2026[222] - Other income increased by $38,461 thousand in the first three quarters of fiscal 2026 compared to the same period in fiscal 2025, primarily due to gains from the sale of equity securities[195]

Financial Performance - Net sales for Q3 2025 were $235.2 million, a decrease of 10.9% compared to $263.8 million in Q3 2024[19] - Gross profit for Q3 2025 was $82.2 million, down 13.6% from $95.2 million in the same period last year[19] - The company reported a net loss of $6.4 million for Q3 2025, compared to a net loss of $1.2 million in Q3 2024[19] - The company’s operating income for Q3 2025 was $205, significantly lower than $7.2 million in Q3 2024[19] - Net income for the nine months ended November 1, 2025, was $5,940,000[21] - Net income for the nine months ended November 2, 2024, was $19,306,000, compared to $1,081,000 for the same period in 2025[24] - The net loss for the three months ended November 1, 2025, was $6.426 million, compared to a net loss of $1.194 million for the same period in 2024[123] Assets and Liabilities - Total current assets decreased to $188.7 million as of November 1, 2025, from $226.2 million as of February 1, 2025[17] - Total liabilities amounted to $609.5 million, down from $679.5 million at the end of the previous reporting period[17] - The accumulated deficit increased to $330.2 million from $331.3 million, indicating ongoing financial challenges[17] - Total stockholders' deficit as of November 1, 2025, was $(206,515,000)[21] - Total stockholders' deficit as of November 2, 2024, was $(189,286,000), reflecting an increase from $(211,717,000) at February 3, 2024[22] Inventory and Expenses - Inventory levels decreased to $128.8 million from $148.5 million, reflecting a reduction of 13.2%[17] - Selling, general and administrative expenses were $66.3 million, a decrease of 11.6% compared to $74.9 million in Q3 2024[19] - Selling, general and administrative expenses for the three months ended November 1, 2025, were $66.256 million, representing 28.2% of net sales[123] - Selling, general and administrative expenses for the nine months ended November 1, 2025, decreased by $21.4 million, or 9.4%, to $206.8 million, representing 27.1% of net sales, down from 27.5%[139] Cash Flow - Cash provided by operating activities was $65,366,000 for the nine months ended November 2, 2024, compared to a cash used of $7,122,000 for the same period in 2025[24] - Net cash used in operating activities during the nine months ended November 1, 2025, was $7.1 million, a significant decrease from $65.4 million provided during the same period in 2024[156] - Net cash used in investing activities was $5.4 million for the nine months ended November 1, 2025, down from $12.6 million in the prior year, primarily due to fewer new store openings and remodels[158] Sales Performance - Apparel sales accounted for $213.6 million in the three months ended November 1, 2025, down from $230.8 million in the prior year, representing a decline of 7.5%[49] - Non-apparel sales decreased significantly to $12.3 million from $24.9 million, a decline of 50.5% year-over-year[49] - For the nine months ended November 1, 2025, total net sales were $763.9 million, down 7.8% from $828.2 million in the same period of 2024[49] - Comparable sales decreased by 8% for the three months ended November 1, 2025, compared to the same period in the previous year[100] Stock and Shareholder Information - Common shares outstanding increased to 99,197,000 as of November 1, 2025[21] - The company repurchased common stock totaling $(20,285,000) including excise tax[21] - The company entered into a stock repurchase agreement on June 23, 2025, agreeing to purchase $20.0 million of shares at a price of $3.32 per share, repurchasing 6,030,908 shares[64] Legal and Compliance - The company has been named as a defendant in six pending class action lawsuits related to data security, with no determination on the probability of loss at this time[81] - Management concluded that disclosure controls and procedures were effective as of November 1, 2025, ensuring timely and accurate reporting[164] Marketing and Future Plans - The company plans to close approximately 100 additional stores by the end of fiscal year 2025, following the closure of 74 stores through the end of the third quarter of fiscal year 2025[98] - The company plans to continue investing in brand awareness and customer engagement through targeted marketing efforts[112] - The company anticipates growth in operating expenses due to increased spending on advertising and hiring additional personnel[114]

Financial Performance - Net income for the thirteen weeks ended November 1, 2025, was $9,205,000, compared to $12,348,000 for the same period in 2024, representing a decrease of approximately 25.5%[126] - Adjusted EBITDA for the thirty-nine weeks ended November 1, 2025, was $77,174,000, down from $92,642,000 in the same period in 2024, indicating a decline of about 16.7%[126] - Net sales for the thirteen weeks ended November 1, 2025, were $150,528,000, slightly lower than $151,260,000 for the same period in 2024, reflecting a decrease of approximately 0.5%[126] - Adjusted EBITDA margin for the thirteen weeks ended November 1, 2025, was 16.1%, down from 17.7% in the same period in 2024, showing a decline of 1.6 percentage points[126] - Operating income for the thirteen weeks ended November 1, 2025 was $14.9 million, a decrease of $4.3 million, or 22.4%, from $19.2 million in 2024[128] - Net income for the thirteen weeks ended November 1, 2025 was $9.2 million, down $3.1 million, or 25.5%, from $12.3 million in 2024[128] - For the thirty-nine weeks ended November 1, 2025, net sales decreased by $9.9 million, or 2.1%, to $458.1 million from $468.0 million in 2024[140] - Gross profit for the thirty-nine weeks ended November 1, 2025 decreased by $12.7 million, or 3.8%, to $322.4 million, with a gross margin of 70.4% compared to 71.6% in 2024[142] Expenses and Costs - Selling, general and administrative (SG&A) expenses increased by $3.2 million, or 3.6%, to $91.8 million, representing 61.0% of net sales compared to 58.6% in 2024[132][134] - SG&A expenses for the thirty-nine weeks ended November 1, 2025 increased by $7.4 million, or 2.8%, to $271.5 million, representing 59.3% of net sales compared to 56.4% in 2024[143][144] - Gross profit for the thirteen weeks ended November 1, 2025 decreased by $1.3 million, or 1.2%, to $106.7 million, with a gross margin of 70.9% compared to 71.4% in 2024[131] - Interest expense for the thirty-nine weeks ended November 1, 2025 was $8.2 million, a decrease of $4.8 million, or 36.8%, from $13.0 million in 2024[147] Cash Flow and Financing - Net cash provided by operating activities decreased by $13.2 million to $43.7 million for the thirty-nine weeks ended November 1, 2025, compared to $56.9 million for the same period in 2024[158][160] - Net cash used in investing activities was $8.8 million for the thirty-nine weeks ended November 1, 2025, down from $10.0 million in the prior year[161] - Net cash used in financing activities significantly decreased to $12.4 million for the thirty-nine weeks ended November 1, 2025, from $70.3 million in the same period of 2024[162] - The Company had outstanding letters of credit amounting to $4.3 million and a maximum additional borrowing capacity of $35.7 million as of November 1, 2025[156] - As of November 1, 2025, the company had $58.0 million in cash and $35.7 million of total availability under its ABL Facility[150] - The Company approved a share repurchase program authorizing the repurchase of up to $25.0 million of common stock over two years[151] - As of November 1, 2025, the Company had a remaining Term Loan Facility principal balance of $74.3 million, due on May 8, 2028[155] - The Company made voluntary prepayments of $58.2 million and $27.2 million on the Term Loan Credit Agreement in May and June 2024, respectively[154] Strategic Initiatives and Market Conditions - The ongoing implementation of strategic initiatives, including upgrades to the ecommerce platform and information systems, is expected to impact future operating results positively[110] - The company faces challenges from overall economic trends, including inflationary pressures and reduced consumer confidence, which may affect sales[107] - The retail industry remains highly competitive, with the company needing to effectively anticipate fashion trends to maintain customer appeal[109] - Changes in U.S. trade policy and tariffs may increase merchandise costs, potentially impacting gross margins in future quarters[113] - The migration of single-channel customers to omnichannel customers is significant, as omnichannel customers spend three times more on average[115] Compliance and Insurance - The Company transitioned to a self-insured group health insurance program in January 2025, with costs accrued based on known claims and estimated incurred but not reported claims[166] - The Company is in compliance with all covenants contained in its outstanding debt arrangements as of November 1, 2025[156]