Financial Performance - Comparable store sales increased by 1.1% in Q2FY26, marking the third consecutive quarter of positive comps[11] - Adjusted diluted EPS was $0.21, exceeding the $0.17 in Q2FY25, a 23.5% increase[11, 13] - Gross margin expanded by 40 basis points year-over-year to 35.7%[11, 13] - Sales decreased by 4.1% from $301.4 million to $288.9 million[13] Strategic Initiatives - The company is focusing on four key areas: driving profitable customer acquisition & activation, improving customer experience & selling effectiveness, increasing merchandising productivity & mitigating tariff risk, and closed store real estate dispositions[5, 6] - The company exited 21 leases and sold 3 owned locations, generating $5.5 million in proceeds[6] - Inventory levels were reduced by approximately $11 million sequentially[11] Fiscal 2026 Expectations - The company expects the store optimization plan to reduce total sales by approximately $45 million in fiscal 2026[19] - CAPEX spend is expected to be $25 million to $35 million[19] Balance Sheet and Liquidity - Net bank debt was approximately $50 million as of September 2025[17] - Availability under the credit facility was approximately $410 million, with cash and equivalents of approximately $10 million as of September 2025[17]