Overview
- Q3 FY25 net sales rose 9% to $1.47 billion, topping guidance, as adjusted gross margin expanded about 170 basis points and losses narrowed.
- The company raised full‑year guidance to $6.45–$6.48 billion in net sales and $350–$375 million in adjusted operating income, with tariffs now expected to be a ~$90 million headwind.
- Q4 guidance calls for $2.17–$2.20 billion in revenue and $265–$290 million in adjusted operating income, with the gross margin outlook including about $65 million of net tariff impact.
- Management credited execution of its ‘Path to Potential’ plan and higher regular‑price selling, while an analyst cited an 8% same‑store sales gain and strong Black Friday traffic driven by a 40% site‑wide offer.
- Shares traded near a 52‑week high around $49.68 as price targets moved higher, including Telsey to $50, UBS to $60, and Goldman Sachs to $47.