Core Insights - The company reported a third consecutive quarter of positive same-store sales growth, with a 2.2% increase year-over-year, driven by strong performance in hunting, shooting sports, and fishing categories [4][12][13] - E-commerce sales grew by 8% in the quarter, with successful ship-to-home and buy online pickup in-store (BOPUS) strategies enhancing customer engagement [1][4] - The company is focused on inventory efficiency, reducing total inventory by 3.2% year-over-year, and aims to end the year with lower inventory levels than the previous year [16][17] Sales Performance - Key categories such as hunting and shooting sports saw a 5% increase, while fishing experienced exceptional growth of 14% [2][12][13] - Apparel sales grew by approximately 1%, with notable strength in technical outdoor wear, although camping sales declined due to its discretionary nature [2][12][13] Financial Metrics - Net sales for the quarter reached $331.3 million, reflecting a 2.2% increase compared to the prior year [12] - Gross margin improved to 32.8%, a 100 basis point increase from the previous year, driven by better product margins and lower freight expenses [13][14] - Adjusted EBITDA grew by 13% to $18.6 million, indicating improved profitability [15] Inventory Management - Total inventory at the end of Q3 was $424 million, down from $438.1 million the previous year, with a strategic focus on reducing slow-moving inventory [16][17] - The company anticipates ending the year with inventory below $330 million, which is $12 million less than the prior year [17] Marketing and Customer Engagement - The company is enhancing its digital marketing efforts to drive customer acquisition and engagement, particularly through its "Adventure Like a Local" campaign [7][19] - Increased promotional activities are being implemented to maintain sales momentum amid a challenging consumer environment [19][20] Future Outlook - The company is adjusting its full-year guidance due to macroeconomic headwinds and a pressured U.S. consumer, expecting net sales to be flat to slightly up [19][20] - Focus for 2026 will be on sustainable profitable growth, with an emphasis on inventory efficiency and disciplined cost management [20][46]