Aug 21, 2026 earnings call — Quarter results and store growth
Net sales for the quarter rose 4.6% to $320 million.
Revenue $0.3B (est $0.3B) · EPS $0.87 (est $0.81)
Key quotes
"Our women's business continued its strong performance during the quarter, increasing 9.5% on top of an 18.5% increase in the second quarter of 2025."
"On the merchandise margins, the numbers that we gave merchandise margins for the quarter were up 110 basis points offset by about 65 basis points of tariff refund impact."
"During the quarter, we opened 5 new stores completed 5 full store remodels, 4 of which were relocations in new outdoor shopping centers and closed 1 store."
Analyst Q&A 3
merchandise margin and marketing spend
Q (Mauricio Serna · UBS): They asked what drove the 45 basis points of merchandise-margin improvement beyond the 65 basis points from tariff refunds, whether more tariff refunds are expected in the back half, and how refunds are being accounted for. They also asked how much marketing dollars rose year-over-year and whether the marketing spend is delivering returns for possible acceleration later in the year.
A: Management said merchandise margins were up 110 basis points, which was 45 basis points excluding the 65 basis points from tariff refunds. They said the 45 basis points came from a slight increase in private label (about 100 basis points), stronger regular-price selling, fewer markdowns, and broad-based strength in men's and women's. They said all expected tariff refunds were received totaling $2.5 million (a little over $2 million credited to cost of goods sold in Q2 and a small amount flowing into Q3) and they would not give a dollar figure for marketing; the 45 basis points of marketing deleverage was spread across CTV, Spotify, search, social creators, and email, and they have invested in tooling and seen a nice response.
"As far as tariff, all of the refunds that we expect to receive, were received." — Thomas Heacock (CFO)
women's strength and footwear weakness
Q (John Bratz · Kansas City Capital): He asked why women's sales have been stronger than men's and what explains the ongoing weakness in footwear, including whether footwear is being deemphasized. He asked if the softness is company-specific or industry-wide.
A: They said women's strength is driven by new product and fashion—denim, casuals, and coordinated top groupings—that have created excitement and grown the business. The men's business is steadier and more weather-sensitive but remains solid; footwear needs a strong brand like Hey Dudes to drive huge volume, so footwear will remain a smaller part of the business until they find the right new fashion item, and the footwear category is difficult for most people right now.
"The men's will be a small part of our business until we hit the right new fashion item to drive it." — Dennis H. Nelson (CEO)
back-to-school timing and sales
Q (Mauricio Serna · UBS): He asked whether back-to-school shopping has been delayed into August and if that explains a slower July, and what they are seeing now.
A: They said school start dates and tax-free timing change by state each year, so timing shifts make it hard to call out a clear pattern across all stores. Those timing differences can create comp challenges in some markets, but overall it tends to average out most of the time.
"But overall, it seems to average out most of the time." — Dennis H. Nelson (CEO)