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]

Financial Data and Key Metrics Changes - Total net sales for the first quarter were $77.3 million, down 9.5% from the prior year [11] - Adjusted gross profit was $42.8 million, representing 55.4% of net sales, compared to 59.5% in the prior year [12] - GAAP net loss was reduced to $12.2 million, down over 65% from the fourth quarter [13] - Adjusted EBITDA for the quarter was $3.5 million, with a margin of 4.5% of net sales, compared to $4.3 million or 5% of net sales in the prior year [13] Business Line Data and Key Metrics Changes - Chubby's segment sales grew by 43.9%, contributing an incremental $13 million in sales through retail expansion and increased direct-to-consumer (DTC) sales [7][11] - Solo Stove segment sales declined by $25.3 million, primarily due to the elimination of extensive discounting and a lack of new product launches [8][11] Market Data and Key Metrics Changes - The company is diversifying its manufacturing footprint to mitigate tariff impacts, with plans to reduce reliance on China-sourced products [10] - Tariffs did not impact first quarter results, but proactive steps are being taken to offset expected costs starting in the second quarter [10] Company Strategy and Development Direction - The company is focused on a profit-oriented transformation plan, leveraging its entrepreneurial culture to build and scale its outdoor lifestyle portfolio [6][7] - Strategic initiatives include organizational design, marketing effectiveness, pricing strategies, and product innovation [15][17][18][19] - New product launches are anticipated to ramp up in Q4, with a focus on premium brand offerings and reduced promotional activities [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the business as initiatives begin to yield results, with expectations to stabilize performance in the second half of the year [7][21] - The company is working closely with lenders to address its debt structure and has a plan to regain compliance with NYSE listing requirements [5][6][21] Other Important Information - The company reported a going concern disclaimer in its Form 10-Q due to expected non-compliance with certain financial covenants [14] - The company has implemented significant performance improvements and cost reduction initiatives to enhance financial performance [10][12] Q&A Session Summary - The management indicated that a Q&A session would be limited due to ongoing discussions with lenders regarding the company's debt structure, leading to many "no comment" responses [21]

Financial Data and Key Metrics Changes - Total net sales for Q1 2025 were $77.3 million, down 9.5% from the prior year [11] - Adjusted gross profit was $42.8 million, representing 55.4% of net sales, compared to 59.5% in the prior year [12] - GAAP net loss was reduced to $12.2 million, down over 65% from the fourth quarter [13] - Adjusted EBITDA for the quarter was $3.5 million, with a margin of 4.5% of net sales, compared to $4.3 million or 5% of net sales in the prior year [13] Business Line Data and Key Metrics Changes - Chubby's segment sales grew by 43.9%, contributing an incremental $13 million in sales through retail expansion and increased DTC channel sales [7][11] - Solo Stove segment sales declined by $25.3 million, primarily due to the elimination of extensive discounting and a lack of new product launches [8][11] Market Data and Key Metrics Changes - The company is diversifying its manufacturing footprint to mitigate tariff impacts, with plans to reduce reliance on China-sourced products [10] - The company is exploring near-shore options and U.S. production alternatives to offset expected tariff costs starting in Q2 [10] Company Strategy and Development Direction - The company is focused on a profit-oriented transformation plan, emphasizing operational financial improvements for both the near and long term [6][20] - Strategic initiatives include aligning DTC and retail promotional strategies, implementing pricing strategies, and enhancing product innovation [18][19] - The company plans to launch five new products in the Solo Stove division this year, with a focus on premium brand launches and reduced promotional activities [19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the business as initiatives begin to yield results, particularly in the Chubby's segment [7] - The company is working closely with lenders to address its debt structure and has a plan to regain compliance with NYSE listing requirements [5][6] - Management acknowledged the challenges posed by tariffs but is taking proactive steps to mitigate their impact [10] Other Important Information - The company reported a going concern disclaimer in its Form 10-Q due to expected non-compliance with certain financial covenants [14] - The company is not planning any acquisitions in 2025, focusing instead on stabilizing performance [14] Q&A Session Summary - The management indicated that many questions would require a "no comment" response due to ongoing discussions with lenders regarding the company's debt structure [21]