Reported results
- Net sales increased 9.1% to $741.3 million (GAAP), driven by new store unit growth, with comparable store sales declining 1.8%.
- Net income increased to $85.5 million (GAAP) compared to $61.3 million in the prior year period.
- Net income per diluted share increased 43.4% to $1.42 (GAAP), with adjusted net income per diluted share also at $1.42.
- Gross margin increased 360 basis points to 43.5%, benefited by 380 basis points from IEEPA tariff refunds and lower tariff rates.
- Adjusted EBITDA increased to $127.1 million, representing 17.1% of net sales, compared to $93.8 million (13.8% of net sales) in the prior year.
- Opened 15 new stores in the quarter, ending with 686 stores in 36 states, an 11.9% year-over-year store growth.
Guidance
- Fiscal 2026 net sales guidance: $2.928 to $2.941 billion (updated from $2.980 to $3.000 billion).
- Fiscal 2026 comparable store sales growth: 0% to 0.5% (updated from ~2%).
- Fiscal 2026 gross margin: ~41.3% (updated from ~40.7%).
- Fiscal 2026 operating income: $345 to $350 million (updated from $340 to $348 million).
- Fiscal 2026 adjusted net income: $275 to $279 million (updated from $271 to $277 million).
- Fiscal 2026 adjusted net income per diluted share: $4.57 to $4.65 (updated from $4.45 to $4.55).
- Fiscal 2026 new store openings: 75 (unchanged).
- Fiscal 2026 capital expenditures: $103 to $113 million (unchanged).
- Fiscal 2026 share repurchases: ~$175 million (updated from ~$125 million).
Notes
The company updated its fiscal 2026 outlook to better align with recent sales trends. The company received $28.3 million in IEEPA tariff refunds in Q2 2026, which it intends to reinvest in pricing actions. Store closures of one in Q2 and two projected for the full year were related to storm damage. Adjusted net income and adjusted net income per diluted share exclude excess tax benefits related to stock-based compensation.
Price and volatility reaction
The stock moved +2.1% on the print. No front-expiry chain was on file, so there is no straddle expected move. 30-day ATM implied volatility moved -14.0 vol points across the event (constant-maturity series — not the front-week crush).
| Measure | Value | Basis |
|---|---|---|
| Close before release | 72.34 | 2026-09-01 |
| Close after release | 73.87 | 2026-09-02 |
| Realised move | +2.1% | close to close |
| 30d ATM IV change | -14.0 vol pts | constant-maturity series, not the front expiry |
Source
The figures above come from the earnings release the company filed with the SEC on 2026-09-02 (8-K, Item 2.02). Read the original filing on sec.gov.