A fashion novel about what happens when American budget jeans brands Lee and Wrangler team up with Norwegian outdoor specialist Helly Hansen might leave one struggling to see just where the plot was headed. The brands come from two different worlds and the age of the big houses of brands has dimmed in the U.S. as VF Corp. shrank, Tapestry Inc.’s deal to buy Capri Holdings fell apart and producers like PVH Corp. focused in on their biggest brands. More from WWD But Scott Baxter, president, chief executive ...

Financial Data and Key Metrics Changes - Revenue for Q3 reached an all-time high of $149.7 million, up 14% year over year and 9% sequentially [21] - Gross margin percentage was 27%, consistent with Q3 last year and up from 26% sequentially [22] - Adjusted EBITDA was a record $10.6 million, up 11% year over year and 32% sequentially [23] - Free cash flow of $7.7 million grew 148% year over year, marking the second highest level since disclosure began [25] - Net income turned positive at $832,000, a significant turnaround from a $2.8 million net loss in Q2 [8] Business Line Data and Key Metrics Changes - Bricks-and-mortar revenue was a record, up 18% year over year, with same-store sales growth accelerating to 7.4% [6][21] - Bricks-and-mortar adjusted EBITDA was $12.7 million, an all-time high, up 42% year over year [8][23] - E-commerce business continues to underperform, representing less than 3% of consolidated revenues [46] Market Data and Key Metrics Changes - Canna Cabana's market share across five operating provinces reached 12%, the highest level since legalization [6] - In Germany, High Tide has a 16% market share, positioning itself strongly in the medical cannabis market [12] Company Strategy and Development Direction - The company aims to leverage its relationships with licensed producers to channel German medical cannabis shipments through its network [10] - High Tide's acquisition of Remexian reflects a disciplined shareholder-first approach, targeting growth in the German market [9][15] - The company plans to expand its presence in other European markets, including the UK, Poland, Czechia, and Switzerland [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the continued strength of the bricks-and-mortar business, with no signs of slowing down in same-store sales [6][30] - The company is optimistic about the integration of Remexian and the potential for growth in the German market [62] - Management acknowledged temporary challenges in the supply chain from Portugal but expects normalization by November [40] Other Important Information - The company closed a $30 million junior subordinated loan with Kronos, validating its strategy and execution [17] - High Tide has now sold over $1.9 billion of federally legal cannabis, establishing itself as a leader in the industry [10] Q&A Session Summary Question: On same-store sales, how much of the recent acceleration is due to industry improvement versus market share gains? - Management indicated that the same-store sales growth is primarily due to having the best retail model, not just competitor closures [29][30] Question: What is the company's philosophy on capital allocation post-Remexian transaction? - Management highlighted the need for working capital to support Remexian's growth and emphasized organic store openings while considering M&A opportunities [36][39] Question: How confident is the company in executing a turnaround for the e-commerce business? - Management acknowledged the underperformance but expressed optimism about new initiatives and partnerships to improve the segment [46] Question: What is driving the expansion of margins in the bricks-and-mortar segment? - Management attributed margin increases to a combination of white label sales, price stabilization, and operational efficiencies [49][53] Question: How are newer stores performing relative to prior cycles? - Management reported that new stores are ramping up sales faster than expected, benefiting from brand recognition and high-quality locations [57][58] Question: What are the opportunities across Europe for future investments? - Management confirmed ongoing monitoring of other EU markets for compelling commercial opportunities while focusing on the integration with Remexian [61]