Positive Adjusted EBITDA
The company sustained positive adjusted EBITDA in the third quarter, consistent with expectations, supported by a leaner cost structure and improved product margins.
Gross Margin Improvement
Gross margins expanded by 450 basis points to 42.6% over the prior year period, indicating significant improvement due to higher margin product categories and fewer markdown sales.
Special Occasion Categories Outperformance
Special occasion and bridesmaids categories continued to outperform, driving year-over-year net sales growth on top of a double-digit comparison in the prior year.
Wholesale Growth
The company achieved triple-digit 7-figure year-over-year growth in wholesale revenue, with an expansion to six major retailers in Q3.
Operational Efficiency and Cost Reduction
OpEx declined 11% year over year, with fixed costs down 18%, enabling another quarter of positive adjusted EBITDA performance.
Increased Average Order Value
Despite a 14% decrease in total orders, the average order value increased by 8%, supporting strong comp performance.
Successful Reorder Strategies
First-time reorders of new products saw sequential and year-over-year growth, with total reorder business showing success across event dress businesses.