The company’s shift toward an asset-light strategy yielded significant top-line growth, with franchise and wholesale revenue jumping 86.9% to $346.7 million. This expansion was largely powered by a 320% increase in luxury goods sales and the addition of 68 new wholesale partners. While directly-operated stores grew by 15.7%, the company is increasingly converting underperforming retail locations into franchise outlets to optimize operating expenses.

Despite the revenue climb, net income fell to $0.7 million from $6.6 million in the prior year, a decline management attributed primarily to tax-related adjustments rather than operational weakness. Gross margin compressed by 3.9 percentage points to 7.5%, reflecting the lower-margin nature of the wholesale business compared to traditional retail. However, disciplined cost management allowed operating expenses to grow at a substantially slower rate than revenue—29.6% versus 77.6%—demonstrating improved operating leverage. The company closed the year with $2.1 million in cash, down from $4.8 million, while managing $186.8 million in accounts receivable generated by its rapid wholesale expansion.