Image source: The Motley Fool. Jan. 28, 2026 at 5 p.m. ET CALL PARTICIPANTS Chairman, President, and Chief Executive Officer — Farooq Kathwari Senior Vice President, Chief Financial Officer, and Treasurer — Matthew J. McNulty TAKEAWAYS Net Sales -- $149.9 million, with performance supported by a higher starting retail backlog, increased average ticket, incremental clearance sales, and fewer return...
Image source: The Motley Fool. Jan. 28, 2026 at 5 p.m. ET CALL PARTICIPANTS Chairman, President, and Chief Executive Officer — Farooq Kathwari Senior Vice President, Chief Financial Officer, and Treasurer — Matthew J. McNulty TAKEAWAYS Net Sales -- $149.9 million, with performance supported by a higher starting retail backlog, increased average ticket, incremental clearance sales, and fewer returns, partially offset by lower contract sales and reduced demand. -- $149.9 million, with performance supported by a higher starting retail backlog, increased average ticket, incremental clearance sales, and fewer returns, partially offset by lower contract sales and reduced demand. Retail Written Orders -- Declined 17.9%, with further sequential declines throughout the quarter and an average decrease of 18% per month due to government shutdown impacts and a strong prior year comparison. -- Declined 17.9%, with further sequential declines throughout the quarter and an average decrease of 18% per month due to government shutdown impacts and a strong prior year comparison. Wholesale Orders -- Decreased 19.3%, with similar sequential monthly declines amid lower demand and difficult comparables. -- Decreased 19.3%, with similar sequential monthly declines amid lower demand and difficult comparables. Design Center Traffic -- Fell 11%, contributing to lower order intake and demand challenges. -- Fell 11%, contributing to lower order intake and demand challenges. Wholesale Backlog -- Ended at $49.8 million following reduced contract orders and improved customer lead times. -- Ended at $49.8 million following reduced contract orders and improved customer lead times. Gross Margin -- 60.9%, up by 60 basis points, benefiting from sales mix, reduced headcount, higher average ticket, and lower inbound freight, offset by higher promotional, tariff, and clearance activity. -- 60.9%, up by 60 basis points, benefiting from sales mix, reduced headcount, higher average ticket, and lower inbound...