Sep 3, 2026 earnings call — Customer file growth and July inflection
Raised full-year adjusted EBITDA outlook to $76 million to $86 million, reflecting an $11.1 million tariff refund.
Revenue $0.2B (est $0.2B) · EPS $0.05 (est $-0.03) · Next-quarter revenue outlook $0.2B–$0.2B
Key quotes
"On today's call, I will review our second quarter performance, including the meaningful improvement we saw in the business as the quarter progressed, and I will share an update on our primary focus for 2026, which is customer file growth through acquisition, reactivation, and retention."
"With our product assortments modernized, sub-brand scaling, pricing architecture and channels optimized, and a brand positioning and mission consistently clear, what was needed was a structural rebuilding of our marketing engine."
"We are placing significant emphasis on our mobile app, which converts approximately 7x the rate of our desktop and mobile web experiences."
Analyst Q&A 2
July sales and gross margin drivers
Q (Corey Tarlowe · Jefferies): The analyst asked what caused the July inflection — traffic, conversion, AUR, or customer acquisition — and asked how the company plans to rebuild gross margin to 24 months and what opportunities exist.
A: Management said July inflected positively from both traffic and conversion, driven by all 11 marketing channels turning positive. They noted digital customer reactivation was low single digit positive and frequency in the active file improved. For margin, they said tariff benefits, improved multi-country sourcing, refined pricing, introduction of OPP and "fashion at a price" should flow through into margin into third and fourth quarter, and footwear's high attachment and new-customer lift has driven substantive margin improvement.
"It was both traffic and conversion, but really a function of all 11 of our marketing channels inflecting positive." — Ashlee Wheeler
Do sub-brands bring new customers or bigger baskets?
Q (Carly Chasen · Goldman Sachs): The analyst asked whether sub-brands are mainly bringing new customers or mainly increasing basket size and wallet share among existing customers.
A: Management said sub-brands expanded wallet among existing customers but also are key to customer acquisition and reactivation, especially in the back half of the year. They said a dedicated Festi paid media plan launches on the 25th of this month and that Festi is their largest sub-brand and expected to be most accretive for new customer acquisition and reactivation.
"To start, we saw expansion of wallet among existing customers, but we know that they are key to customer acquisition and reactivation, and even more so as we head into the back half of this year." — Ashlee Wheeler