0001628280-26-022929
SEC filingRevenue was $697.1M (2.4%) Gross Profit was $393.2M (-1.2%) Operating Income was $5.4M (-60.7%) Net Income was $4.1M (-64.8%)
Revenue for fiscal 2026 reached $697.1 million, representing a 2.4% increase from the prior year. This growth occurred despite a slowdown in demand that the company attributes to broader macroeconomic factors, which may continue to affect future periods. The company's ability to grow revenue in this environment reflects the resilience of its product offerings and brand. However, levels of competition and competitor pricing strategies present ongoing challenges to the company's results of operations. The business continues to experience growth in transaction volume and surges in online traffic associated with promotional activities and seasonal trends, which place additional demands on the technology platform.
Cash generation remained a strength for the company. Net cash provided by operating activities increased to $49.3 million, primarily driven by favorable working capital fluctuations, particularly from inventory management. The company reviews inventory levels on an ongoing basis to identify slow-moving merchandise and uses product markdowns to efficiently sell these products. Capital expenditures totaled $23.1 million, primarily related to investments for new showroom openings and the acquisition of intangible assets. This resulted in free cash flow of $26.2 million, demonstrating the company's ability to generate cash from operations while investing in growth initiatives.