Breaking: President Trump said he will hit China with an additional 100% tariff and impose new export controls on critical software products, starting Nov. 1 https://t.co/4rQ5sB3BGn ...

*US TO IMPOSE 100% TARIFF ON CHINA STARTING NOV 1Thank you, Mr. President, for allowing us to purchase BTC at a steep discount 🫡 https://t.co/oVQy6RqCUF ...

Breaking: U.S. President Donald Trump stated that China has issued a strongly worded letter to the international community, announcing plans to impose sweeping export controls on nearly all products starting November 1, 2025. In response, Trump declared that the United States will impose a 100% tariff on Chinese goods—on top of existing duties—and implement export controls on all critical software beginning the same day. https://t.co/gR8lVKE9Tf ...

BREAKING: 🇺🇸🇨🇳 TRUMP HAS IMPOSED A 100% TARIFF ON CHINA STARTING FROM NOVEMBER 1ST. https://t.co/NekGC5jBVN ...

BREAKING: 🇺🇸 President Trump to impose 100% tariff on China starting Nov 1 https://t.co/HhAFS87C9w ...

BREAKING: 🇺🇸🇨🇳 President Trump to impose 100% tariff on China starting November 1st. https://t.co/eBCzqjqIhh ...

🚨 BREAKING 🚨🇺🇸 PRESIDENT TRUMP WARNS ABOUT “MASSIVE TARIFF HIKE” ON CHINESE IMPORTS TO THE U.S.THIS IS WHY MARKET IS DUMPING !! https://t.co/MWWTZUX0YW ...

Financial Data and Key Metrics Changes - Total consolidated revenue increased by $4.5 million or 5.9% compared to the prior year, with a 7.3% increase when excluding sales from Noa Home [15] - Gross margin improved by 320 basis points to 56.2%, driven by better wholesale margins, slightly offset by lower retail margins [15] - Operating income was $600,000 or 0.7% of sales, a significant improvement from a loss of $6.4 million in the same quarter last year [16] - Diluted earnings per share were $0.09, compared to a loss of $0.52 in the previous year [16] Business Line Data and Key Metrics Changes - Wholesale net sales increased by $3 million or 6.2%, with a 9.2% increase in shipments to the retail store network [16] - Retail net sales increased by $4.6 million or 9.8%, although gross margin declined by 40 basis points due to lower margins on in-line and clearance goods [18] - Orders from corporate and licensed stores grew by 5.9%, driven by a 9.8% increase in company-owned retail stores [9] Market Data and Key Metrics Changes - Outdoor sales were up 18%, indicating strong performance in that segment [10] - Written retail sales increased by 2.4% in the quarter, reflecting a cautious consumer sentiment [10] Company Strategy and Development Direction - The company is focusing on innovation in product lines, aggressive marketing initiatives, and leveraging technology to adapt to the current market challenges [4] - There is an emphasis on creating custom design solutions and expanding e-commerce capabilities [6] - The company plans to open two new stores in 2026 and has recently reopened a corporate store in Concord, North Carolina [13] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the ongoing challenges in the housing market and consumer caution regarding significant investments in home furnishings [5] - The company remains optimistic about the potential for market share gains due to its domestic manufacturing capabilities, despite the competitive landscape [45] - Management expressed caution regarding future gross margin improvements, suggesting that margins may stabilize in the 55-56% range [28] Other Important Information - The company continues to pay a quarterly cash dividend of $0.20 per share, maintaining a strong balance sheet with no outstanding debt [13] - Operating cash flow was negative for the quarter, leading to a reduction in cash and short-term investments by $5.2 million [18] Q&A Session Summary Question: Did August see the same case with written sales as delivered sales? - Management confirmed that August was the best month for both wholesale and retail orders, with positive momentum continuing into September [24] Question: What trends were observed during the Labor Day holiday season? - Management noted that the trend has been slightly better than previous months, although the overall environment remains challenging [24] Question: What is the extent of the pricing increase due to tariffs? - Management indicated that surcharges have been levied on products from Vietnam and India, with Vietnam at 20% and India at 50% [26] Question: How should future gross margins be viewed? - Management suggested that gross margins are expected to stabilize around the current levels, with slight improvements possible but not dramatic [28] Question: What is the outlook for new product introductions? - Management expressed optimism about the new product pipeline, particularly whole-home collections, and plans to focus on a more strategic introduction approach [29]

Trade Deal Concerns - The EU is concerned that new US trade demands are undermining the trade deals previously agreed upon [1] - The original deal, sealed in July, included a 15% tariff ceiling on most goods [2] - There is fear that the US wants to alter the terms of the trade deal, particularly regarding digital regulation [3] Key Issues of Contention - US governments, especially during Donald Trump's administration, have viewed EU regulation on big tech as excessively burdensome [3] - EU environmental laws, specifically those related to climate, are also emerging as a point of concern [4] - EU ambassadors in Brussels are expected to be briefed on discussions with the US side regarding these issues [3]

Industry Impact - EU steel tariff hike threatens "biggest ever crisis" for UK industry [1]