Comparable Store Sales Growth
Comparable store sales for continuing locations increased 1.2% in the quarter (Oct -2%, Nov +4%, Dec +1%) marking the fourth consecutive quarter of positive comps and the first positive two‑year stack in over two years.
Gross Margin Expansion
Gross margin expanded 60 basis points year‑over‑year to 34.9%, driven primarily by 80 bps benefit from lower material costs and 30 bps benefit from lower occupancy as a percentage of sales (partially offset by 50 bps headwind from higher technician labor as a percentage of sales).
Profitability Improvement (GAAP)
Operating income increased to $18.6M (6.3% of sales) versus $10.0M (3.3% of sales) in the prior year. Net income rose to $11.1M and diluted EPS was $0.35, compared with $4.6M and $0.15 respectively in the prior year period.
Inventory Management Progress
System inventory reduced by over $7.0M in the quarter and total inventory is down approximately 16% since March (now more than $28.0M), indicating improved inventory efficiency.
Real Estate Dispositions Driving Cash Proceeds
During Q3 the company exited 32 leases and sold 20 owned locations generating $17.3M in proceeds, bringing fiscal year‑to‑date proceeds to $22.8M; YTD disposals and divestitures contributed materially to cash generation.
Marketing and CRM Rollout Expansion
Expanded multichannel digital marketing to ~340 additional store locations, extended call center support to 114 more stores (now over 830 stores served), and activated CRM campaigns to drive customer revisit and service activation.
Strong Cash Generation and Financial Flexibility
Generated $48.0M of cash from operations in the first nine months; ended Q3 with net bank debt of $40.0M, approximately $425.0M available on the credit facility, and cash & equivalents of ~$5.0M, supporting dividends and capital priorities.