"Consolidated Revenues -- $62.3 million, down 11.7%, with sequential improvement from the prior quarter's 24.6% decline. Direct Segment Revenues -- $49.7 million, a 5.3% decrease, representing improved performance from the previous quarter's 16.2% decline. Comparable Channel Sales -- Positive sales in brand channels for five consecutive months, led by product innovation and stretching from back-to-school through Black Friday. Net Loss from Continuing Operations -- Negative $8.3 million, or negative $0.30 per diluted share, compared to negative $3.7 million, or negative $0.13 per share, the previous year."
"Inventory Write-Down & Media Credit Write-Off -- $5.9 million charge due to strategic product shift toward cotton and heritage prints, and $4 million charge for unused television media credits, totaling a $0.35 negative impact on EPS. Gross Margin (Reported/Adjusted) -- $26 million, or 41.7%; excluding inventory write-down, adjusted margin is 51.2%, marking the third consecutive quarter of improvement. SG&A Expenses -- $37.4 million, or 60% of net revenues, reduced by $6.2 million mainly through lower compensation and cost initiatives, partially offset by the media write-off."
"Inventory Position -- Quarter-end inventory at $82.9 million, down 24.3%; inventory turns below 2, with a target to exceed 2-3 turns over 12-18 months. Outlet 2.0 Initiative -- Implementation includes a 35% reduction in SKUs, pilot in seven stores, and early qualitative feedback described as positive, with in-line performance despite lower assortment breadth. Cotton Product Innovation -- Cotton penetration now exceeds 50%, up from below 40%, with the original 100 bag driving more than twice the Gen Z penetration of average products. Cash and Borrowings -- $10.7 million in cash and cash equivalents; $10 million drawn on $75 million ABL facility."
Consolidated revenues totaled $62.3 million, down 11.7% year-over-year, with sequential improvement from the prior quarter. Direct segment revenues declined 5.3% to $49.7 million while brand channel comparable sales were positive for five consecutive months. Net loss from continuing operations was $8.3 million, or $0.30 per diluted share. Charges included a $5.9 million inventory write-down tied to a product shift and a $4 million unused television media credit write-off. Reported gross margin was 41.7%, with adjusted margin of 51.2%. Inventory declined 24.3% to $82.9 million. Outlet 2.0 and cotton product initiatives showed early positive results. Cash totaled $10.7 million with $10 million drawn on a $75 million ABL.
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