Oct 1, 2026 earnings call — Tariff refunds and margin improvement
Consolidated revenue was $82.8 million, a 3.4% increase, with gross margin 57.5%.
Revenue $0.1B (est $0.1B) · EPS $0.24 (est $0.13)
Key quotes
"And let me start by discussing the $2.8 million in tariff refunds that we received from U.S. Customs and Border Protection as a result of the U.S. Supreme Court's February 2026 decision invalidating the IEEPA tariffs imposed by the President in 2025."
"These efforts are paying off with e-commerce written sales up 48% this quarter and website delivered sales rising more than 42%."
"We're on track to meet our goal of reducing the annual run rate of expenses by an additional $1.5 million to $2 million."
Analyst Q&A 4
pricing and sales, store openings, Black Friday
Q (Anthony Lebiedzinski · Sidoti): Analyst asked how much of revenue change came from price versus unit volumes. He also asked about regional differences in Labor Day sales, plans for new stores in FY27, and Black Friday promotion details and margin impact.
A: Management said wholesale units were down low single digits and unit price rose less than double digits; retail was similar. Labor Day strength was consistent across regions. They will open 2 stores next year (net +1 after a reposition) and do not expect Black Friday to hurt margins much.
"I won't give you the exact percent, but it was low single digits." — John Daniel (CFO)
consumer demand, margins, inventory, dividend
Q (Linda Weiser · Water Tower): Analyst asked how consumers are behaving and why retail growth is slower than in Q4, and whether higher mortgage rates hurt demand. She also asked if Q4 gross margin could rise excluding a tariff refund, whether SG&A savings were realized, why inventory dropped, and if the dividend might be cut to fund growth.
A: Management said consumers remain cautious; project (bigger-ticket) business is strong but customers take longer to decide and may delay purchases, and higher mortgage rates are not a tailwind. They said written retail margins look better for September and hope that helps Q4, they realized the quarterly effect of the $1.5 million to $2 million savings, and inventory fell largely due to reductions in imported product, Club Level motion inventory, and a move toward domestically cut-and-sewn special orders. On dividends, they review them each quarter, view the dividend as important, prefer to pay from operating cash flow, and expect the fourth quarter to generate the most cash.
"I would say for us, we feel the consumer remains cautious." — Robert Spilman (CEO·CHAIR)
pricing and sales, store openings, Black Friday
Q (Anthony Lebiedzinski · Sidoti): Analyst asked how much of revenue change came from price versus unit volumes. He also asked about regional differences in Labor Day sales, plans for new stores in FY27, and Black Friday promotion details and margin impact.
A: Management said wholesale units were down low single digits and unit price rose less than double digits; retail was similar. Labor Day strength was consistent across regions. They will open 2 stores next year (net +1 after a reposition) and do not expect Black Friday to hurt margins much.
"I won't give you the exact percent, but it was low single digits." — John Daniel (CFO)
consumer demand, margins, inventory, dividend
Q (Linda Weiser · Water Tower): Analyst asked how consumers are behaving and why retail growth is slower than in Q4, and whether higher mortgage rates hurt demand. She also asked if Q4 gross margin could rise excluding a tariff refund, whether SG&A savings were realized, why inventory dropped, and if the dividend might be cut to fund growth.
A: Management said consumers remain cautious; project (bigger-ticket) business is strong but customers take longer to decide and may delay purchases, and higher mortgage rates are not a tailwind. They said written retail margins look better for September and hope that helps Q4, they realized the quarterly effect of the $1.5 million to $2 million savings, and inventory fell largely due to reductions in imported product, Club Level motion inventory, and a move toward domestically cut-and-sewn special orders. On dividends, they review them each quarter, view the dividend as important, prefer to pay from operating cash flow, and expect the fourth quarter to generate the most cash.
"I would say for us, we feel the consumer remains cautious." — Robert Spilman (CEO·CHAIR)