Financial Data and Key Metrics Changes - Consolidated net sales were $147 million, with a retail written order growth of 5.2% despite lower delivered unit volumes and reduced traffic [5][6][9] - Adjusted diluted EPS was $0.43, and the effective tax rate was 25.4% [8][9] - The company ended the quarter with total cash and investments of $193.7 million and no debt, generating $16.8 million in operating cash flow [8][9] Business Line Data and Key Metrics Changes - Retail written orders grew by 5.2%, driven by improved order conversion and increased promotional activities, while wholesale orders decreased by 7.1% due to lower contract business [5][6] - The wholesale backlog was $53.5 million, with a $4.7 million increase in the last three months due to incoming contract orders [6][9] Market Data and Key Metrics Changes - U.S. government sales were impacted by delays ahead of the government shutdown, affecting new orders [4][28] - The company noted a 30% decrease in traffic to design centers, but those who visited were more qualified buyers [19] Company Strategy and Development Direction - The company focuses on a vertically integrated business model, emphasizing technology investments and a strong retail footprint [4][10] - Marketing costs increased by 44%, with a focus on national marketing initiatives, including direct mail and paid search campaigns [11][30] - The company aims to maintain its brand strength and improve customer service through technology and talent [10][12] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about future performance despite ongoing economic uncertainty [15][35] - The company is focused on operational efficiencies and has reduced headcount by 4.7% from a year ago [8][12] Other Important Information - The company has paid a special cash dividend of $0.25 per share and a regular quarterly cash dividend of $0.39 per share [9] - New product launches are expected to enhance sales, with products introduced in design centers by spring 2026 [14][15] Q&A Session Summary Question: Retail written order trends during the quarter - Management noted lower traffic but more qualified customers, leading to consistent increases in written orders [19] Question: Promotional activity and expectations for the year - The company has maintained promotional activities without major changes, which has helped maintain margins [20] Question: Impact of tariffs on pricing - Management indicated that tariffs have less impact due to a strong North American manufacturing presence, with some price increases implemented [22][23] Question: Retail segment performance and future growth - Management aims to approach last year's performance despite challenges, with a focus on qualified customer interactions [26][27] Question: Contract side challenges with the State Department - The government shutdown has impacted new orders, with hopes for normalization once the government reopens [28][29] Question: Increased marketing spend and its effectiveness - The increase in marketing spend is directed towards direct mail and digital campaigns, with expected long-term benefits [30][31]