Sequential Improvement and Strategic Progress
The company posted another quarter of sequential improvement with comparable sales down 2.4%, a 260 basis point improvement from the second quarter, indicating strengthening consumer demand and improved in-store execution.
Gross Profit and Margin Improvement
Gross profit dollars exceeded last year by $5.8 million, with a 210 basis point improvement in gross margin, highlighted by a 100 basis point increase in merchandise margin.
Debt Reduction and Cash Flow
Strong cash flow generation allowed the company to pay down $47 million of debt during the quarter.
Positive Trends in Product Categories
The top eight brands posted a positive 4% comp for the quarter, and boots saw an 8% increase in regular price product sales. The athletic category also showed improvement with a 1% comp in adult athletic and an 8% comp in kids' athletic.
Brand Segment Performance
Topo brand delivered 25% growth over Q3 last year, and Jessica Simpson saw an 8% increase in external wholesale sales.