Matthew Koranda's questions to GigaCloud Technology (GCT) leadership • Q2 2025
Question
Matthew Koranda from Roth Capital Partners asked about the specific drivers behind the Q2 revenue beat relative to guidance and sought clarification on the 2.5% gross margin headwind expected in Q3, including potential mitigation strategies.
Answer
CFO Erica Wei attributed the Q2 outperformance primarily to the Noble House portfolio, which performed better than their conservative estimates during its first peak outdoor season. Wei confirmed the 2.5% margin headwind for Q3 is an unmitigated figure and that the company plans to use targeted price increases to offset it, though she cautioned that the supply chain will need time to adjust.