Financial Data and Key Metrics Changes - In Q4 2025, net revenue was $63 million, a decrease of 5% year-over-year, driven by an 11% decrease in total orders placed, partially offset by a 6% increase in average order value [33] - For the full year, net revenue totaled $282.3 million, a decrease of 11% versus 2024 due to a 15% decrease in total orders placed, partially offset by a 2% increase in average order value [33] - Gross margin for Q4 was 44.3%, up 640 basis points year-over-year, and for the full year, gross margin increased 200 basis points to 43.2% compared to 2024 [34] - Adjusted EBITDA for Q4 was positive $2.6 million compared to a $3.3 million loss in Q4 2024, marking a $5.9 million improvement year-over-year [38] - The net loss for Q4 improved to $0.4 million from a $31.9 million loss in the same period last year [37] Business Line Data and Key Metrics Changes - The wholesale business delivered triple-digit year-over-year growth in 2025, with significant expansion into major retail partners [6] - Special occasion and event wear continued to outperform, contributing to a healthy year-over-year net sales growth [9] - Product margins improved for the fifth consecutive quarter, with a 240 basis points increase in Q4 compared to the prior year period [10] Market Data and Key Metrics Changes - The company expanded its wholesale presence to nine major retail partners, resulting in triple-digit, seven-figure growth in wholesale revenue [12] - The in-store experience is expected to enhance customer trust and connection, contributing to long-term brand loyalty [27] Company Strategy and Development Direction - The company is focusing on strengthening its casual and footwear categories to improve order economics and drive repeat purchase frequency [21] - There is a strategic emphasis on expanding wholesale and leveraging technology to enhance customer engagement and operational efficiency [21] - The company aims to prioritize profitability and the quality of its assortment over short-term revenue growth [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate near-term volatility while strengthening long-term margin structure [18] - The company expects Adjusted EBITDA to improve significantly year-over-year in fiscal 2026, with a focus on higher quality demand and disciplined order economics [44] - Management acknowledged the ongoing challenges in repositioning casual and footwear categories but remains optimistic about future growth [8] Other Important Information - The company appointed Heidi Crane as the permanent CFO, emphasizing her financial discipline and strategic insight [19] - An amendment to the certificate of incorporation was approved to decrease the number of authorized shares of common and preferred stock, pending stockholder approval [20] Q&A Session Summary Question: What are the expectations for Adjusted EBITDA in the upcoming quarters? - Management expects Adjusted EBITDA to be negative for the first quarter but significantly improved year-over-year, with a positive inflection anticipated for the full year of fiscal 2026 [42][44] Question: How is the company addressing the challenges in casual and footwear categories? - The company is narrowing its assortment and focusing on higher quality product launches to better align with customer preferences and improve margins [15][21]

Financial Data and Key Metrics Changes - In Q1, net revenue was approximately $64.2 million, a decrease of 17% year over year, driven by a 17% decrease in total orders placed and a 5% decrease in average order value [24] - Gross margin for the quarter was 40.3%, down 200 basis points compared to the prior year, while product margin improved by 100 basis points [24] - The net loss for Q1 worsened to $8 million from $5.7 million in the same period last year, with adjusted EBITDA loss at approximately $4.7 million compared to a $2.7 million loss in Q1 2024 [25][26] - Free cash flow during Q1 was $7.8 million, reflecting a $1.8 million increase year over year, and net debt was reduced to $1.5 million, a $7.2 million reduction from the previous quarter [28] Business Line Data and Key Metrics Changes - The Special Occasion and Bridesmaids categories continued to drive healthy year-over-year net sales growth, while casualwear and footwear remained under pressure [7] - Wholesale revenue had triple-digit year-over-year growth, driven by growth among major partners and strong momentum in specialty retail [10] - Inventory management resulted in a 4% year-over-year inventory reduction, with product margins increasing sequentially for the second consecutive quarter [8][9] Market Data and Key Metrics Changes - Active customers increased quarter over quarter despite a year-over-year decline, reflecting the success of recent brand efforts [16] - The Love Rewards loyalty program membership continued to see double-digit growth, contributing to an overall increase in total membership [16] Company Strategy and Development Direction - The company is focused on strengthening its financial foundation, optimizing its business, and broadening its customer base through strategic initiatives [8] - A key focus area is SKU management, shifting towards deeper buys on a narrower, more curated SKU set supported by data insights [13] - The company is committed to maintaining positive cash flow and investing in long-term objectives to support a return to growth [31] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the uncertain macroeconomic environment and potential unstable consumer sentiment due to international trade policies and tariffs [13] - The company expects to generate positive adjusted EBITDA in Q2 and is committed to strengthening its liquidity position [30] - Despite macro headwinds, management remains confident in their strategies for sustainable growth and margin improvement [31] Other Important Information - The company executed a fourth amendment to its credit agreement, suspending the measurement of certain financial covenants for Q1 while pursuing alternative financing [28] - The recent pause on U.S.-China reciprocal tariffs has not changed the company's conviction around supply chain diversification and direct sourcing strategies [15] Q&A Session Summary Question: No questions were asked during the Q&A session - There were no questions at this time, and the conference call concluded [33]