Record Annual Sales and Strong Comparable Growth
Fiscal 2025 net sales increased ~23% to $4.8B (Winnie said >$4.7B), driven by a comparable sales increase near 12.8% (nearly 13%) and broad-based strength across categories and districts.
Outstanding Fourth Quarter Performance
Q4 net sales rose 24% to $1.7B with a 15.4% comparable sales increase (Q4 comp drivers: +8% ticket, +7% transactions), and operating profit grew ahead of comp sales.
Margin and EPS Expansion
Fiscal 2025 adjusted operating margin expanded ~70 bps to ~10% and adjusted EPS grew 32% to $6.67; adjusted net income grew 33% to $370M, evidencing bottom-line leverage on top-line growth.
Quarterly Profitability and Cash Generation
Q4 adjusted operating income grew 23% to $313M; Q4 adjusted net income rose 25% to $240M and adjusted EPS was $4.31 (+24%). Company ended FY25 with ~$932M in cash, cash equivalents and investments.
Store Growth and Productivity
Expanded store base by ~8.5% in 2025 with 150 net new stores (management commentary) and ended the year with 1,921 stores in 46 states (entered OR and WA); disciplined grand openings and improved new-store productivity.
Inventory and In-Store Execution Improvements
Invested to improve in-stock positions and store labor at peak periods; average per-store units up ~9% and physical inventory initiative produced a shrink benefit (inventory true-up) of ~50 bps year-over-year.
Strategic Shift to Social and Omnichannel
Reallocated marketing to social/creator content, begun building a customer database/CRM, expanded omnichannel (third-party delivery, buy-online options) and are amplifying viral trends to drive traffic and repeat visits.
Constructive 2026 Outlook
Guidance for FY26: sales $5.2–$5.3B (≈+10% at midpoint), comparable sales +3–5% (≈17% on a 2-year stack at midpoint), adjusted operating margin +100 bps to 10.9% at midpoint, and adjusted EPS $8 (+20% vs FY25). Q1 guide: sales $1.18–$1.20B (≈+23% midpoint), comps +14–16%, adj EPS $1.63 (+90% vs prior-year Q1).