Sep 9, 2026 earnings call — Tariff refunds invested into marketing and growth
Company raised full-year adjusted EBITDA guidance to $75 million to $80 million.
Revenue $0.2B (est $0.2B) · EPS $1.24 (est $0.57)
Key quotes
"We are also very encouraged by the introduction of our Luxe Lounge collection and the relaunch of our denim assortment, which are seeing great early results."
"Our total customer file saw improvement from the start of the year and is showing signs of stabilization from which we have a foundation to grow."
"Our new AI-enabled merchandise planning and allocation system is on track to begin launching later this year and will be an important new tool to support full price selling, which will drive top and bottom line growth."
Analyst Q&A 4
marketing investment and holiday plans
Q (Jungwon Kim · TD Cowen): They asked whether the current guide includes benefits from higher marketing investment and where the company will spend more. They also asked how holiday planning differs from last year and what learnings are applied.
A: Management said they are investing across channels, and $600,000 was already spent that they expect to see return. The main focus is demand generation and awareness that will impact '27 and beyond, and for holiday they will try to protect full-price momentum to limit promotions.
"But the more important investment for us is really when we think about demand generation and the awareness play that will impact '27 and beyond, right?" — Mary Coyne (CEO)
new customers and denim performance
Q (Janine Hoffman Stichter · U.S. Bancorp BTIG): They asked who the new-to-brand customer is and how retention looks, and they asked about bottoms/denim—whether recent gains are industry-driven or from execution.
A: Management said the new-to-brand customer is younger, retaining at a higher rate, and spending more than historically, and reactivated customers show similar metrics. For bottoms, they said bottoms stabilized in Q2 with success in core items and new leg shapes; the denim relaunch—especially wide leg and barrel silhouettes—has driven customer response.
"She also is retaining at a higher rate, and she is spending more than we have seen her spend historically." — Mary Coyne (CEO)
denim changes and online vs in-store
Q (Marni Shapiro · Retail Tracker): They asked what denim looked like historically and what it could become. They also asked how online and in-store customers differ on price, units, and full-price selling.
A: Management said denim used to be one-note, mostly a repeating slim silhouette, but now they are expanding leg shapes and silhouettes so denim fits more parts of the customer's lifestyle. They also said both stores and the direct channel show significant improvement in full-price selling, with AUR and ATV improving in both channels, while the direct channel will still sell markdown product profitably.
"So we're really seeing the end use of it expand as we're giving her new leg shapes and new silhouettes." — Mary Coyne (CEO)
tops, color, and tariff refund use
Q (Dana Telsey · Telsey Group): They asked about tops and dresses—length, balance, color versus neutral—and where tariff refund money will be spent and any effects on Q3/Q4 guidance.
A: Management said tops stabilized in Q2 after Q1 issues; they rebalanced silhouettes and added color and print to tops and dresses for Q3 and Q4, aiming to be in an ideal position by Q1 '27. They added that the tariff refund is being used mainly as a marketing investment to drive awareness and future growth, and the full-year guidance already reflects the refund and these investments.
"And so we're leaning into that momentum and taking advantage of the opportunity to invest primarily in marketing." — Mark Webb