Overview
- Third-quarter sales fell 1% to $1.59 billion with adjusted EPS of 35 cents, both below estimates, as merchandise margin shrank and tariffs delivered an estimated $35 million hit.
- Full-year guidance now calls for low-single-digit net sales declines and at least $2.87 in adjusted EPS, with fourth-quarter sales guided to a high-single-digit drop and EPS of at least $1.70.
- CEO Daniel Heaf launched the Consumer First Formula, targeting $250 million in savings over two years, exiting haircare and men’s grooming, and refocusing on body care, home fragrance, soaps and sanitizers.
- The company plans an early-2026 Amazon debut to capture demand and curb an estimated $60–$80 million in gray‑market sales, alongside simpler store assortments and revamped digital experiences.
- Shares sank about 25% and are down more than 50% this year, while analysts cut targets and ratings; management still projects roughly $650 million in 2025 free cash flow, including $400 million in buybacks.