Net Sales

+2.5% (from $1,097,854K to $1,125,567K)

The modest increase in Net Sales suggests a steady revenue improvement possibly driven by organic growth and maintained market demand, reflecting the company’s ability to drive sales even amid evolving market conditions. " "

Gross Profit

+5.7% (from $323,880K to $342,445K)

The increase in Gross Profit indicates improved cost management or a more favorable product mix that enhanced margins compared to the previous period, suggesting some operational efficiencies were realized despite overall market challenges. " "

Operating Income

Shift from +$11,373K to –$22,508K

The dramatic reversal in Operating Income is primarily due to the introduction of $33,875K in Restructuring Charges—expenses that were not present in Q4 2024—and a 6% rise in SG&A expenses, which together overwhelmed the modest improvements seen in Sales and Gross Profit. " "

Net Income

Shift from +$2,311K to –$23,317K

The inversion in Net Income reflects the compounded impact of negative operating results, elevated restructuring costs, and higher administrative expenses, which together eroded profitability despite the incremental growth in top-line revenues. " "

SG&A Expenses

+6% (from $312,507K to $331,078K)

The 6% increase in SG&A Expenses underscores higher store-related and corporate administrative costs, hinting at underlying operational pressures and investments that contributed to the overall deterioration in operating margins. " "

Restructuring Charges

Newly introduced at $33,875K

The introduction of Restructuring Charges at $33,875K marks a significant shift in the cost structure, reflecting the company’s move toward a cost base realignment through strategic restructuring initiatives intended to improve long-term cash flow and profitability despite short-term financial impacts. " "