Increase in Sales and Gross Margin
Sales for Q2 2025 were $181 million, up 1.3% from the previous year, with a gross margin increase of 40 basis points to 60.8%.
Memorial Day Sales Success
Sales increased by over 3% during the 2-week period and by more than 14% over the 4-day period, with all key metrics showing improvement.
Web Sales Growth
Web sales grew by 8.4% for the quarter, driven by a 15.6% increase in organic traffic after converting to Adobe's Edge delivery service.
Positive Traffic Trends
Traffic in the quarter remained positive in the mid-single digit compared to the same period last year.
Design and Special Order Business Recovery
Special order capabilities from China vendors are expected to be fully operational in Q3 after tariff reductions.
AI and Marketing Strategy
Use of AI algorithms and increased investment in marketing resulted in more effective engagement and sales.
Debt-Free Balance Sheet
The company ended the quarter with $107.4 million in cash and cash equivalents and no funded debt.