Quarterly and Annual Sales Growth
Q4 net sales were $201.9M, up 9.5% year-over-year; comparable store sales (comps) increased 8.2% in Q4. Full-year 2025 net sales were $759.0M, up 5.0% with comps up 2.1%.
Improving Same-Store and Written Sales Momentum
Total written sales in Q4 rose 3.5% (comps up 3.2%). Q4 marked the second consecutive quarter of positive comps, with strong after-Thanksgiving sales up 6.2%.
Average Ticket and Design Business Strength
Q4 average ticket rose 10.9% to $3,759; design average ticket increased 11.9% to $8,072. Design accounted for 33.3% of sales, driven by upholstery special orders up 14.8%.
E-commerce and Digital Engagement Gains
Written e-commerce sales increased 12.3% in Q4 and web traffic and key site engagement grew double digits year-over-year, contributing to in-store performance.
Adjusted Gross Margin Improvement (Ex-LIFO)
Excluding Q4 LIFO expense ($3.9M) and prior-year LIFO pickup, adjusted gross profit margin increased 100 basis points to 62.4% from 61.4% year-over-year.
Profitability and Earnings Per Share
Q4 pretax income was $10.8M with operating margin of 5.3%; Q4 net income was $8.5M, or $0.51 per diluted share, up from $0.49 a year ago. Full-year EPS was $1.19, flat with prior year.
Strong Balance Sheet and Capital Allocation
Ended Q4 with $125.3M cash and cash equivalents and no funded debt. Paid $20.8M dividends in 2025, repurchased $4.8M of stock during the year, and Board approved an additional $15M buyback authorization.
Planned Store Growth and Capital Investment
Ended year at 129 stores; plans for 5 new stores in 2026 (including entry into Pennsylvania) plus 4 remodels. 2026 CapEx planned at ~$33.5M to support store growth, remodels and IT/distribution investments.
Inventory Positioned to Support Demand
Year-end inventory was $96.2M with management stating inventories are positioned to keep best sellers in stock and expecting inventories to decline over the next 6 months as purchases work through.