1Revenue declined 10.6% to $282.3M, reflecting macroeconomic pressures on consumer discretionary spending, which management addressed through pricing and promotional actions to stimulate demand.
2Gross margin expanded to 43.2%, as the company managed its merchandise mix and inventory, partially mitigating the impact of lower sales volume on profitability.
3Operating loss narrowed 75.9% to -$12.6M, demonstrating improved expense discipline as the company aligns costs with revenue expectations in pursuit of profitability.
4Net loss improved 75.2% to -$13.7M, a key step in the company's financial turnaround, supported by the operational improvements seen in reduced operating losses.
5Free cash flow was $1.0M, generated from operations after minimal capital expenditures, supporting the company's primary liquidity needs for inventory and operating expenses.
6Management continues to invest in operations and infrastructure to drive efficiencies and growth, while strategically allocating capital based on performance evaluation and future plans.