Financial Data and Key Metrics Changes - The company's first quarter net sales were $107.6 million, a decrease of 7.1% compared to the previous year [8] - Comparable net sales decreased by 7%, an improvement from an 11.2% decrease in the previous quarter [4] - Gross margin was 19.8% of net sales, down from 21% last year, while product margins improved by 40 basis points [9] - The net loss was $22.2 million or $0.74 per share, compared to a net loss of $19.6 million or $0.65 per share last year [11] Business Line Data and Key Metrics Changes - Net sales from physical stores decreased by 7.4%, while e-commerce net sales decreased by 5.8% [8] - Physical stores represented 79.8% of total net sales, while e-commerce represented 20.2% [8] Market Data and Key Metrics Changes - The company ended the first quarter with 238 total stores, a net decrease of eight stores compared to a year ago [9] - Total balance sheet inventory was 3.8% lower than at the end of last year's first quarter [11] Company Strategy and Development Direction - The company is actively pursuing marketing opportunities to build mindshare with current and prospective customers, including launching a TikTok shop [5][6] - The focus is on solidifying the company's position at the intersection of youth culture, fashion, and music to improve customer affinity [8] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the potential stabilization of the business, noting improvements in merchandise assortment and customer engagement [15] - The company expects to end the second quarter with total liquidity of approximately $106 million to $111 million, remaining debt-free [13] Other Important Information - The company anticipates a comparable net sales range of a decrease of 5% to flat for the second quarter [12] - There are plans to close two additional stores in the third quarter, with up to 15 more closures possible depending on lease negotiations [13] Q&A Session Summary Question: Can you unpack the cadence of the first quarter and provide transaction versus ticket breakdown? - February was down 5.7%, March down 13.8%, and April was up 1.5%. Traffic was down low single digits, but average sale was up 1% in May [18] Question: Any impact from last year's calendar shift in June and July? - The bulk of sales volume occurs at the end of the quarter, with May typically representing only about 25% of the second quarter [20] Question: What is the outlook on merchandise assortments? - Merchandise is selling better, particularly in the junior category, and traffic has been consistently improving [22][31] Question: What is the expected impact of tariffs on margins? - No material impact is expected from tariffs for the remainder of the year, with product margins anticipated to be consistent with last year [25][26] Question: Have there been discussions with activist investors? - No discussions have occurred with new investors, and no requests for board seats have been made [38] Question: What is the outlook on occupancy costs? - Occupancy costs will continue to be lower due to store closures, but leveraging will depend on achieving flat or positive comparable sales [40][41]