Revenue Growth and Top-Line Recovery
Total revenues of $52.0 million in Q1 2026, up 11% year-over-year. This marked the second consecutive quarter of year-over-year revenue growth and a return to double-digit top-line growth.
Record First-Quarter Profit and Sustained Profitability
Net income of $1.2 million in Q1 2026, the record first-quarter profit since 2022 and the company's eighth consecutive profitable quarter (versus $0.1 million in Q1 2025).
Strong Gross Profit and Stable Margin
First-quarter gross profit of $34.0 million, up 10% year-over-year, with gross margin remaining stable at 65%.
Branded Apparel Momentum
Branded apparel grew more than 81% year-over-year and now accounts for 24% of total revenue, up from 15% in Q1 2025, reflecting successful execution of the consumer lifestyle/brand strategy.
Improved Expense Efficiency
Total operating expenses increased 7% year-over-year to $33.0 million, but operating expenses as a percentage of revenue decreased from 65% to 63%, indicating improved cost discipline.
Capital Allocation and Shareholder Focus
Company highlighted ongoing share repurchase program and emphasized disciplined cost control, signaling a focus on shareholder value.