Same‑store sales

Q2 2025

Decline expected in the mid‑ to high‑single‑digit range vs. Q1 2024 "

Decline expected in the low to mid‑single‑digit range vs. Q2 2024 "

raised

Net loss per basic share

Q2 2025

$0.75–$0.85, with no tax benefit; compared to $0.38 in Q1 2024 "

$0.75–$0.90, with no tax benefit; compared to $0.46 in Q2 2024 "

lowered

Consistent Inventory Management

In Q2, Q3, and Q4 2024, management reports focused on reducing inventory levels (declines of 10.8%, 8.7%, and 5.6% YoY respectively) to align with soft sales and seasonal fluctuations " " " "

In Q1 2025, inventory is up 6.5% YoY due to early receipts of seasonal merchandise to preempt tariff impacts and prepare for spring/summer selling periods " "

Shift from reactive inventory reductions to proactive, strategic stocking to mitigate tariff and seasonal risks.

Seasonal Ordering

Prior periods emphasized adjusting seasonal ordering to respond to weather extremes (e.g. soft winter sales in Q3 and Q4, back-to-school and Labor Day in Q2) " " "

Q1 2025 highlights strategic extra product intake ahead of tariffs and to capitalize on improved weather conditions for summer sales " "

Consistent focus, with an increased proactive approach to align ordering with anticipated sales windows.

Store Portfolio Optimization

Q2, Q3, and Q4 2024 discussed plans to open a few stores while closing a significant number (e.g. opening 3 and closing 11 stores in Q2 and Q3; anticipating 15 closures in Q4) " " "

Q1 2025 details eight store closures already and plans for about seven more closures over the remainder of the year "

Continuation of strict portfolio rationalization with a steady emphasis on reallocating resources to top-performing locations.

Evolving Sales Performance Trends and Shifting Recovery Sentiment

Earlier periods described softness in same‐store sales, declines in key merchandise categories, and mixed signals with sequential improvements noted in Q3 and Q4 " " "

Q1 2025 reports net sales decline and same‐store sales down 7.8%, with March showing improvements due to better weather conditions "

Persistent soft performance with signs of recovery emerging from improved weather; cautious optimism remains but challenges persist.

Profitability Pressures and Margin Compression Issues

Q2, Q3, and Q4 2024 highlighted margin compression caused by higher occupancy/distribution costs and decreased merchandise margins, leading to widening net losses " " "

Q1 2025 shows continued margin compression with a decrease in gross profit margin (from 31.2% to 30.9%) and an increased net loss, driven by similar factors as before "

Ongoing profitability pressures with slight worsening margins, reflecting consistent cost challenges over time.

Macroeconomic and Operational Headwinds

All previous periods discussed persistent macroeconomic challenges—including inflation, consumption pressure, and weather impacts—with adjustments in inventory and promotional strategies; tariff issues were less emphasized " " " "

Q1 2025 introduces a heightened focus on tariff uncertainties with proactive extra inventory promotion and continues to cite unfavorable weather (e.g. a 25% decline in winter-related sales in Jan/Feb) " " "

Continued pressure from external economic factors, with an added emphasis on navigating tariff uncertainties alongside traditional weather-related challenges.

Financial Flexibility and Capital Management

Q2 and Q4 2024 detailed measures such as dividend suspensions and credit facility extensions to bolster flexibility; Q3 2024 noted a healthy balance sheet with zero borrowings " " " "

There is no mention of credit facility extensions or dividend suspensions in the Q1 2025 period

This topic is no longer mentioned in the current period, suggesting a possible shift in focus or satisfaction with previous measures.

Changing Guidance and Future Outlook Uncertainty

Q2, Q3, and Q4 2024 provided cautious guidance with expectations of further same‐store sales declines and uncertainties due to persistent macroeconomic headwinds and weather-related issues " " "

Q1 2025 reiterates a cautious outlook with projected declines in same‐store sales (low to mid-single digits) and an anticipated net loss per share increase, emphasizing ongoing uncertainties such as calendar shifts and tariff impacts "

Steady uncertainty with challenging guidance continuing; companies remain cautious in forecasting short-term recovery despite some sequential improvements.

Emerging Focus on Store Remodeling and Capital Allocation for Operational Enhancements

Q2, Q3, and Q4 2024 emphasized CapEx investments in store remodeling, distribution center upgrades, and technology, with considerable spend ranges mentioned (e.g. $9–$14 million in Q2 and $10–$14 million in Q3/Q4) " " "

In Q1 2025, modest CapEx of $1.7 million in Q1 with full-year expectations of $4–$7 million highlights continued focus on remodeling and operational improvements "

Continued strategic priority on operational enhancements, though the scale of investment appears moderated in the current period, likely reflecting cautious capital allocation amid a challenging environment.