Brick & Mortar PerformanceSales were pressured by weaker-than-expected brick & mortar performance, leading to management announcing the winddown of their B&M business by early 2025, which represented less than 4% of total sales.
Financial GuidanceManagement lowered their FY24 guidance to $200M to $205M due to weaker-than-anticipated B&M weakness which impacted 3Q and expected to continue in 4Q.
Gross MarginsGross margins in the quarter deleveraged primarily from increased promotional activity.