Sales Growth and Market Share
Total sales grew $15.4 million or 8.3% over the prior year, and comparable store sales increased by 9.9% over the prior year, indicating a 2-year stack of 13%.
Profitability and Cost Management
Adjusted EBITDA increased by $6.2 million, representing a sales to profit flowthrough of 40%, driven by gross margin expansion of 90 basis points and operating expense leverage of 220 basis points.
Broad-Based Category Performance
Strong performance across all apparel and home categories, with many focused categories experiencing double-digit growth, indicating successful product strategy.
Inventory and Operational Improvements
Average in-store inventories down 4.9% with fresher inventory due to 45% reduction in products aged 7 months or more, and implementation of new wayfinding signage systems in stores.
AI-Based Allocation System
Successful testing of a new AI-based allocation system, which is expected to improve inventory efficiency and operational capabilities.
Financial Position and Liquidity
Strong balance sheet with no debt, $42 million in cash, and $75 million revolver, providing liquidity of approximately $117 million.