What changed
Q2 FY26 GAAP EPS of $0.70 compares to $0.94 in the prior-year period. Revenue was $115M, down 7.2% YoY. Management lowered FY2026 revenue guidance to $0.5B-$0.5B and pre-tax income to $0.1B-$0.1B. The print reflects occupancy cost deleverage and increased promotional activity, while wholesale opportunities may take longer to realize.
Why it matters
Q2 FY26 GAAP EPS of $0.70 compares to $0.94 in the prior-year period. Revenue was $115M, down 7.2% YoY. Management lowered FY2026 revenue guidance to $0.5B-$0.5B and pre-tax income to $0.1B-$0.1B. The print reflects occupancy cost deleverage and increased promotional activity, while wholesale opportunities may take longer to realize.