Bob's Discount Furniture (BOBS) investor relations material

Executive summary

• Net revenue for Q2 2026 increased 8.8% year-over-year to $619.6 million, driven by new store openings, comparable sales growth of 2.3%, and strong e-commerce performance.

• Four new stores opened in Q2, expanding the footprint to 218 locations across 27 states, including new markets in South Carolina and Charlotte, NC.

• Gross profit rose 20.7% to $319.1 million, aided by $37.9 million in one-time IEEPA tariff refunds.

• Adjusted EBITDA margin was 9.8%, reflecting resilience amid softer industry traffic and a challenging macro backdrop.

• Value proposition and targeted marketing attracted higher-income households and supported market share gains.

Financial highlights

• Retail channel revenue increased 6.0% and e-commerce revenue surged 24.1% year-over-year, with digital penetration at 17.3%.

• Adjusted gross margin (excluding tariff refunds) was 45.4%, down from 46.4% due to higher freight costs.

• Adjusted net income was $27.8 million, down from $32.2 million in Q2 2025; adjusted diluted EPS was $0.20, down from $0.29.

• Cash and equivalents stood at $32 million, with total liquidity of $176.6 million and a debt-free balance sheet.

• Inventories decreased 1.3% to $345.9 million, partly due to tariff refunds.

Outlook and guidance

• Full-year 2026 guidance reiterated: net revenue of $2.6–$2.625 billion, comparable sales growth of 1.5%–2.5%.

• Adjusted net income expected between $121–$129 million; adjusted EBITDA between $255–$265 million.

• 53rd week expected to contribute $40 million in net revenues and $3.5 million in net income.

• Capital expenditures planned at $110–$115 million, mainly for store and distribution center expansion.

• Targeting 10% unit growth in 2026, with about 20 new stores and continued Southeast expansion.