Improved Gross Margin
Gross margin increased to 53.3%, up 30 basis points from the same quarter last year, attributed to more targeted promotional strategies and reduced discounting.
SG&A Cost Reduction
SG&A expenses were reduced by 14% year-over-year, driven by lower stock-based compensation, fulfillment costs, and broader cost optimization initiatives.
Positive Adjusted EBITDA Outlook
The company anticipates achieving positive adjusted EBITDA in the fourth quarter, benefiting from reduced advertising spend and SG&A reductions.
Expansion in Product Assortment
Third-party assortment expanded significantly, with brands up 50% and individual products up 61% year-over-year, especially in high potential categories like clean beauty, personal care, and wellness.