BOBS · Bob's Discount Furniture, Inc.

Bob's Discount Furniture reported mixed Q1 FY2026 results. Net revenue grew 8.5% to $578.1 million, driven by new store openings and a 1.2% comparable sales increase, which was supported by higher conversion and average order value in both retail and eCommerce, partially offset by adverse weather. Gross margin remained flat at 44.4% as favorable product mix and lower freight costs were offset by fixed costs from the new Midwest distribution center and inventory growth. SG&A rose 9.0% to $235.1 million, with SG&A as a percentage of revenue increasing slightly to 40.7% due to incremental marketing, occupancy costs, and a $2.0 million termination fee related to the advisory agreement with the controlling stockholder. Net income plunged to $2.5 million from $13.1 million, largely due to the termination fee and higher expenses. Adjusted net income was $11.1 million, down from $14.1 million. Adjusted EBITDA was nearly flat at $37.6 million, with margin contracting 50 basis points to 6.5%. Management expressed confidence in the company's strategic positioning, citing market share gains despite industry headwinds. The company reaffirmed its full-year 2026 guidance, including net revenue of $2,600-$2,625 million, adjusted EBITDA of $255-$265 million, and approximately 20 new store openings. Additionally, the company amended its credit facility on April 29, 2026, increasing availability to $200 million and extending maturity to April 2031, enhancing financial flexibility.