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- **Record Q3 Growth**: $122.7M revenue (+2.7% YoY) despite $4M tariff impact, with Mini Beans sales up 60% Q3.
- **Global Expansion**: 24 new stores (70% international), re-entering Germany, and 2026 co-branded Hello Kitty locations.
- **Black Friday Success**: Best in company history, driven by holiday merchandising and 3M+ Mini Beans sold.
- **Tariff Mitigation**: 2026 Chinese tariffs to drop to 20%, plus cost control and price adjustments to offset headwinds.
- **Digital Strategy**: E-commerce YTD down <1%, focusing on omnichannel engagement and AI-driven personalization.

**【CEO Opening Remarks】**
- Q3 2025 revenue reached $122.7 million, up 2.7% YoY, with pretax income of $10.7 million despite $4 million tariff impact.
- Full year guidance reaffirmed for >$500 million revenue, driven by 60+ new store openings and 20%+ growth in commercial segment.
- Mini Beans sales approached 3 million units, with 60% Q3 growth, expanding into independent retailers.
- Black Friday 2025 was the company's best ever, with strong holiday merchandising and marketing efforts.

**【COO Retail Expansion Update】
- 24 net new stores opened in Q3, 70% outside the U.S., bringing total to 651 locations across 33 countries.
- 375 corporately managed stores, 108 franchises, and 168 partner-operated locations, with partner-operated now 25% of total.
- Reentered Germany with 3 stores, and launched co-branded Hello Kitty & Friends workshops in Los Angeles, expanding to American Dream and Mall of America in 2026.

**【CEO Digital & Brand Initiatives】
- Appointed Senior VP of E-commerce to balance e-commerce and in-store experiences, leveraging AI for personalized interactions.
- Mini Beans expanded into thousands of new retail points, with 60% Q3 growth and 2025 sales exceeding 3 million units.
- Halloween collection saw double-digit growth, driven by exclusive Hello Kitty co-branded characters and the new Posable Bat.

**【CFO Financial Review】
- Q3 GAAP net income $10.7 million, down 18% YoY due to tariffs and higher SG&A expenses (45.1% of revenue vs. 43.3% last year).
- Commercial revenue up 15.3% YoY, with Q4 expected to grow >30% to meet >20% full year target.
- Returned $26.1 million to shareholders YTD through dividends and buybacks, with $70 million remaining under repurchase authorization.
- Inventory increased 17% to $83.3 million to mitigate tariff risks and support commercial growth.

**【Q&A Highlights】
- Tariff mitigation: 2026 tariffs on Chinese imports to drop from 30% to 20%, plus cost control and price adjustments.
- Mini Beans success: $10 collectibles driving repeat purchases, with 60% Q3 growth and expansion into independent retailers.
- Promotional strategy: Tight discount management maintained 53.7% gross margin despite tariffs, with focus on high-margin experiences.
- Digital transformation: E-commerce down 10.8% Q/Q due to licensing shifts, but YTD down <1% with focus on omnichannel engagement.
- Global expansion: 30%+ growth in international stores, with Germany re-entry and co-branded locations driving brand awareness.

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