Product InnovationThe introduction of new products like Evercouch and Recliner, alongside target marketing, is expected to drive improved performance in the second half of the fiscal year.
Showroom StrategyShowroom net sales accelerated to +18% y/y, the highest growth rate for the channel since fiscal 3Q24, reflecting a strategic decision by the company to lean into Showrooms.
ValuationThe company's valuation is considered attractive at current levels, trading at a lower multiple compared to the peer average, supporting the Buy rating.