The company reported a profit of $18.4 million for the quarter ended Aug. 2, a sharp increase from the $1.3 million recorded during the same period last year. While the refund windfall played a central role in these figures, Chief Executive Stephanie Pugliese credited the performance to internal inventory discipline and a strategic promotional reset. Adjusted earnings reached 50 cents a share, mirroring the net profit result.

Despite the bottom-line success, the retailer faced a dip in top-line growth, with net sales sliding to $121.4 million from $131.7 million. Looking ahead, management raised its full-year adjusted Ebitda expectations by $10 million, setting a new target range of $38 million to $42 million. The company maintained its annual net sales forecast between $540 million and $560 million, signaling stability as it navigates the remainder of the fiscal year.