Overview
- The retailer posted a Q3 loss of $0.72 per share on $150.166 million in sales, missing consensus for a $0.59 loss and $154.146 million in revenue.
- Gross margin fell to 56.1% as inbound transportation and tariff expenses rose, and operating loss widened to $15.8 million.
- Cash declined to $23.7 million from $61.7 million a year earlier and inventory reached $129.7 million, even as five new showrooms opened in the quarter.
- Management lowered fiscal 2026 guidance to GAAP EPS of $0.15–$0.49 and revenue of $685–$705 million, and projected Q4 EPS of $1.88–$2.22 on $236–$256 million in sales, both below Street views.
- Shares fell about 18% in premarket trading after the report, as the CEO noted marketing changes with solid quarter-to-date holiday performance.