- **Q3 Results**: $147M net sales (-2% YoY) due to supply chain disruptions, but +4.4% on 2-year stack. Adjusted EBITDA $7M, gross margin 59.1% (+110bps YoY).
- **Supply Chain Recovery**: Q4 sales tracking +low single digits as inventory normalizes. AOV rebounding in Q4 with better in-stock levels.
- **Brand Momentum**: Princess Polly TikTok impressions +80M, Culture Kings exclusive collaborations, Petal & Pup India launch.
- **Financial Strength**: $23-23.5M FY25 EBITDA guidance, debt refinanced to 2028, cash flow +$21M YoY.
- **Strategic Focus**: AI integration (ChatGPT checkout), store expansion, and supply chain diversification driving long-term growth.

**【CEO Summary Section】**
- **Revenue Performance**: Q3 net sales of $147 million (-2% YoY) due to supply chain disruptions, but +4.4% on a 2-year stack. Year-to-date net sales up 5%.
- **Supply Chain Challenges**: Temporary inventory constraints caused out-of-stocks, impacting AOV (-3.7%) and sales. Q4 in-stock levels improving, with 4Q sales tracking +low single digits.
- **Brand Highlights**: 
  - **Princess Polly**: 11th U.S. store opened, TikTok impressions +80M, Australia store launch pending. Q3 U.S. & Australia sales strong despite headwinds.
  - **Petal & Pup**: Strong wholesale growth (Nordstrom +3x YoY), India launch on Nykaa Fashion.
  - **Culture Kings**: Gross margin expansion, exclusive collaborations (Alpha Industries, Von Dutch). Q4 Formula 1 & One Piece collections planned.
- **AI Integration**: Testing ChatGPT instant checkout, image editing tools, and customer experience workflows across brands.

**【CFO Financial Commentary】**
- **Profitability**: Adjusted EBITDA $7M (Q3) / $17M (YTD), up 100bps in gross margin to 59.1%. FY25 EBITDA guidance $23-23.5M.
- **Balance Sheet**: $23.4M cash, debt $111.3M (down 7% YoY). Refinanced credit facility to 2028 with $85M term loan.
- **Key Metrics**: 
  - Inventory $96.7M (-8.8% YoY), expected flat YoY by end-2025.
  - Active customers 4.07M (+50bps YoY), AOV $78 (down 3.7% YoY).
  - Gross margin guidance 56.6-57% for Q4, 57.6-57.7% FY25.

**【Q&A Key Highlights】**
- **Inventory Normalization**: Q4 inventory improving, tracking flat YoY by year-end. AOV rebounding in Q4 with better in-stock levels.
- **Store Strategy**: 12 Princess Polly stores (11 U.S., 1 Australia), 8-10 more planned for 2026. Culture Kings expanding exclusive collaborations.
- **Marketing Efficiency**: Pulled back spend during Q3 out-of-stocks, resuming in Q4 with normalized inventory.
- **Australia Growth**: 3Q of positive comps, Culture Kings first-party brands driving mid-single-digit growth.
- **Supply Chain Diversification**: Reduced China exposure, new suppliers in multiple regions with quality, pricing, and delivery capabilities.


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