Net Sales

Down 2.1% to $3.0 billion "

Sales declined by 2.1% to $3.0 billion due to reduced consumer spending amid macroeconomic uncertainties, contrasting with previous period levels when consumer demand was relatively stronger. " "

Comparable Sales

Down 1.7% "

Comparable sales decreased by 1.7%, reflecting ongoing challenges in maintaining customer traffic and demand compared to prior period performance when customer engagement was higher. "

Gross Profit and Margin

Gross profit down from $1.32B to $1.29B; margin declined from 43.1% to 42.7% " "

Gross profit and margin fell because higher costs and lower sales volumes, driven by inflationary pressures and operational adjustments, disrupted the previously higher margins, shifting from earlier performance markers. " "

Net Loss

$10.5 million loss " "

Transitioning from a profit in the prior year to a $10.5 million loss, the current period was impacted by restructuring costs, impairment charges, and business transformation expenses, which were not as prominent in previous periods. " "

Restructuring & Integration Costs

$11.8 million "

Incurred restructuring and integration costs of $11.8 million as part of a strategic overhaul, contrasting with lower or no such costs in the previous period, reflecting an active change in operational strategy. "

Inventory

Increased from $571.3M to $599.8M " "

Inventory levels grew from $571.3M to $599.8M due to adjustments in operational strategies and supply chain management under uncertain economic conditions, differing from the leaner inventory approach in the earlier period. " "

Debt Management

Increased from $434.2M to $496.5M " "

Total debt increased from $434.2M to $496.5M as the company adopted new financing strategies to support restructuring and integration initiatives, a notable change from the lesser debt burden seen in the previous period. " "

Financial Statement Presentation

Reclassification of expenses "

The reclassification of certain expenses from cost of sales to operating expenses as part of a business transformation effort affected the comparability of metrics with prior periods, altering the way performance is reported. "