The scrutiny follows a September 14, 2026, disclosure where the company reported an 18.9% decline in net sales, totaling $241.8 million. The shortfall pushed GAAP net losses to $31 million, with an adjusted loss of $0.82 per share, exceeding analyst projections of a $0.62 loss. Management blamed the results on a clearance-heavy inventory strategy and technical complications involving the migration of their e-commerce infrastructure to Salesforce.

Investors reacted sharply to the news, driving the stock price down to $1.90 per share by the close of trading on September 15. Pomerantz LLP, a firm specializing in securities class litigation, is now soliciting contact from affected shareholders to evaluate potential claims regarding breaches of fiduciary duty and corporate misconduct.