Sub-Brand Success
The sub-brands Festi, Belle Isle, Nightfall, and Retro Chic have outperformed expectations, attracting new clientele and increasing spending. They are planned for expansion, growing from 10% to up to 30% of the portfolio by 2026.
Online Sales Growth
Online sales are approaching 70% of total sales and expected to reach a low to mid-70% penetration by 2026. The digital channel continues to outperform physical stores.
Store Optimization Strategy
A plan to close approximately 180 stores in 2025 is expected to have a negligible impact on net sales, with a projected benefit of 150 to 250 basis points of EBITDA margin expansion.
Reduced China Sourcing
Exposure to China-sourced goods has reduced from mid-teens to low single digits.
Strong Liquidity Position
The company ended the quarter with $23.7 million in cash and $117.3 million available in the revolving credit facility.