Financial Data and Key Metrics Changes - The consolidated net sales for the second quarter were $92.3 million, down 29.9% year-over-year but up 19.4% sequentially from Q1 [15][19] - Adjusted EBITDA for the quarter was $10.5 million, with a margin of 11.4% of net sales, compared to $15.4 million or 11.7% of net sales in the prior year [19] - The second quarter GAAP net loss was $20.8 million, while adjusted non-GAAP net income was essentially breakeven at $1 million [19] Business Segment Data and Key Metrics Changes - The Chubby segment reported sales of $44.5 million, up 13.1% due to retail expansion and increased direct-to-consumer (DTC) sales [16] - The Solo Stove segment sales were $32.4 million, down significantly due to a decline in DTC channel sales as a result of prioritizing Minimum Advertised Price (MAP) strategies [16][19] Market Data and Key Metrics Changes - Retail channel sales remained stable compared to the same period in 2024, driven by increased demand for Chubby's products, offset by reduced replenishment for the Solo Stove segment [17] - The company ended the quarter with inventories at $84.1 million, down $24.5 million from year-end [20] Company Strategy and Development Direction - The company is focused on driving bottom-line profitability, optimizing marketing spend, and investing in new product innovation [9][10][11] - A strategic transformation plan is in place to create a structurally smaller, profit-driven business model, with no current planned acquisitions [21][24] - The company aims to enhance customer connections through relevant product experiences rather than relying heavily on discounts [9] Management's Comments on Operating Environment and Future Outlook - The consumer landscape remains challenging, with discretionary spending under pressure and consumers showing heightened sensitivity to price and value [13] - Management is optimistic about the long-term shareholder value driven by the execution of their transformational profit-focused business model [14][19] - The company anticipates a more stable revenue cadence post-2025 as new product launches accelerate [16] Other Important Information - The company completed debt refinancing, removing the going concern disclaimer and reinstating active trading on the New York Stock Exchange [6][20] - The company has a CRM database of approximately 2.5 to 3 million customers, which is a significant asset for marketing [35] Q&A Session Summary Question: Evolution of the Solo Stove customer and brand loyalty - Management noted that a significant portion of purchases are from new customers, but core customers are also engaging with new product categories [30][34] Question: Changes in pricing and inventory management - Management confirmed that they are selectively targeting key retailers and have aligned promotional strategies to help retailers sell through excess inventory [36][38]