Financial Data and Key Metrics Changes - Revenue increased by 17% in Q3 fiscal 2025, with consolidated same store sales growth of 8.6% [6][15] - Earnings per diluted share reached $2.43, up from $1.81 in the prior year period, exceeding guidance by $0.36 [7][19] - Gross profit increased by 20% to $239 million, with a gross profit rate of 39.3%, reflecting a 100 basis point increase [15][16] Business Line Data and Key Metrics Changes - Same store sales in brick-and-mortar increased by 8.2%, while e-commerce sales grew by 11.1% [6][15] - Merchandise margin expanded by 130 basis points, driven by supply chain efficiencies and better buying economies [7][13] - Exclusive brand penetration increased by 180 basis points, contributing to merchandise margin expansion [13][19] Market Data and Key Metrics Changes - The company opened 13 new stores in Q3, bringing the total to 438 stores across 46 states [8][9] - The company plans to open 21 additional stores in Q4, aiming for a total of 60 new stores for the fiscal year [9][20] - Active customers in loyalty programs increased to 9.4 million, a 15% increase year-over-year [12] Company Strategy and Development Direction - The company is focused on expanding its store base, driving same store sales, strengthening omnichannel leadership, and expanding merchandise margins [8][10][12] - The company believes it has the potential to double its store count in the U.S. over the next several years [9] - The new Chief Digital Officer is expected to enhance the company's digital strategy and e-commerce performance [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the current business tone and the start of Q4, with same store sales growth continuing [14] - The company raised its full-year guidance, expecting total sales to reach $1.92 billion, representing a 15% growth over fiscal 2024 [19] - Management noted that inventory levels are healthy, with no significant markdown risks anticipated [37] Other Important Information - The company experienced a $0.22 benefit related to the CEO transition included in Q3 earnings per diluted share [8] - SG&A expenses decreased as a percentage of sales due to the forfeiture of incentive-based compensation related to the CEO transition [16][90] Q&A Session Summary Question: Can you elaborate on traffic and demand in January? - Management noted an acceleration in both men's and women's Western categories, with a strong start to Q4 expected to continue [26][27] Question: What are the drivers of merchandise margin? - Management expects Q4 merchandise margin to increase by 120 basis points, driven by supply chain efficiencies and exclusive brand penetration [29][30] Question: How is inventory positioned for future sales? - Management expressed confidence in inventory levels, stating markdown inventory is lower than previous years and pre-COVID times [37][38] Question: What is the company's exposure to tariffs? - The company has 30% of orders from China and 25% from Mexico, with plans to negotiate pricing with vendors if tariffs increase [51][53] Question: How does the company view store density and cannibalization? - Management indicated that store placement depends on market density, with successful openings within close proximity in urban areas [59][60] Question: What are the opportunities in private label? - The company sees potential in its exclusive brands, particularly in work boots, with plans to expand offerings [70][71] Question: What are the expectations for SG&A expenses next year? - Management anticipates a flat lease expense and potential benefits from reduced incentive-based compensation next year [73][74]