Operational Stability and Systems Fixes
Order management system issues from last year were addressed and systems remained stable throughout the holiday season, representing a clear operational improvement versus prior period.
Organizational Simplification and Leadership Additions
Moved to a function-based operating structure to reduce duplication and speed decision-making; workforce reductions and leadership realignments executed; Alex Selikowski hired as CIO to lead technology, data, cybersecurity and BI.
Cost Savings Achieved and Targeted
Approximately $15 million in annualized run-rate cost savings achieved in fiscal 2026 quarter; company continues to target roughly $50 million of total run-rate savings across fiscal 2026 and fiscal 2027.
Improved Marketing Efficiency
Ad spend to sales ratio improved as marketing spend was reduced on a dollar basis and marketing contribution margin became a strategic focus; intentional discipline on marketing intended to improve long-term profitability.
Growth in Wholesale, B2B and Third‑Party Marketplaces
Stronger performance in B2B/wholesale partially offset e-commerce weakness; expansion of third-party marketplace offerings (Uber, DoorDash, Amazon, Walmart.com) noted as growing rapidly and expanding reach.
Healthy Liquidity and Balance Sheet Actions
Cash balance of $193.3 million, net cash position of $42.3 million at quarter end; borrowings under revolver were fully repaid during the quarter.
Conversion and AOV Improvements
Average order value (AOV) increased 5.2% year-over-year; company reported tests improving product discoverability and conversion on online experiences.