Financial Data and Key Metrics Changes - In Q3 2025, total sales reached $197.1 million, reflecting a 10.1% increase compared to Q3 2024. Comparable store sales grew by 10.8%, with a two-year stack growth of 16.5% [25][26] - Year-to-date comparable store sales increased by 10%, with a two-year stack of 12.3% [30] - Gross margin for Q3 was 38.9%, which is 90 basis points lower than Q3 2024 but aligned with expectations [27][28] - Adjusted EBITDA for Q3 was a loss of $2.9 million, an improvement from a loss of $3.3 million in the previous year [30] Business Line Data and Key Metrics Changes - Strong performance was noted across all product categories, with particular strength in children's, men's, and basic apparel [5][6] - The children's division achieved double-digit growth, while men's and women's categories also showed positive momentum [14][15] Market Data and Key Metrics Changes - Sales increases were observed across all store volume groups and geographies, indicating broad-based improvement [6][26] - The company reported strong customer traffic and basket performance, demonstrating the loyalty of its customer base [9][10] Company Strategy and Development Direction - The company aims to achieve approximately $45 million of EBITDA by 2027, representing a $60 million increase from 2024 levels, driven by consistent comparable store sales performance and strategic new store expansion [4][24] - A three-phased transformation strategy is in place, focusing on repair, execution, and optimization to drive sustainable growth [36][37] - The company is investing in technology infrastructure, including a new CRM and loyalty platform, to enhance customer relationships and engagement [10][66] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the turnaround strategy, highlighting the resilience of the consumer despite macroeconomic changes [47] - The company expects continued sales momentum into Q4, with full-year comparable store sales growth projected at high single digits [32][33] Other Important Information - The company remodeled 24 stores in Q3 and plans to open three new stores, bringing the total to 593 locations across 33 states [20][21] - The company has no debt and maintains a strong cash position of $51 million, providing flexibility for growth initiatives [32] Q&A Session Summary Question: What are the biggest merchandising opportunities? - Management highlighted growth in young men's and women's plus-size categories, as well as opportunities in footwear and extreme value segments [40][42][45] Question: How did sales trends perform throughout the quarter? - Sales patterns remained consistent, with strong performance in August and October, while the middle month showed slight softness [46][48] Question: What is the current status of extreme value deals? - Extreme value deals currently represent 2-3% of sales, with plans to increase this to about 10% as the company matures its offerings [54][55] Question: What is the plan for store openings in 2026? - The company plans to open stores in three distinct timeframes: early spring, July, and October, with a focus on consistent growth [57][58] Question: What progress has been made on shrink mitigation efforts? - New AI-capable camera systems have been rolled out to enhance loss prevention, with expectations for a decrease in shrink rates in 2026 [61][62] Question: Can you elaborate on the CRM and loyalty program? - The company plans to launch a CRM in Q1 2026, aimed at enhancing customer engagement and providing exclusive access to deals [66][67]