•

Total net sales for the thirteen weeks ended May 5, 2018 were $181.5 million versus $166.1 million for the thirteen weeks ended April 29, 2017. The 9.3% increase in total net sales versus the prior year was partially driven by the calendar shift created by the fifty-third week in fiscal 2017.

•

Total company comparable sales, which includes comparable store and direct to consumer sales, increased by 2.3%.

•

Direct to consumer net sales represented 40.5% of total net sales, compared to 42.6% in the first quarter of fiscal 2017.

•

Gross profit increased to $120.3 million from $115.6 million in the first quarter of fiscal 2017. Gross margin was 66.3% compared to first quarter gross margin of 69.6% in fiscal 2017.  

•

SG&A was $100.3 million compared to $97.0 million in the first quarter of fiscal 2017. First quarter 2018 SG&A included $1.3 million of non-recurring expenses and $0.2 million of accelerated stock compensation expense as a result of a CEO transition. First quarter 2017 SG&A included $3.6 million of non-recurring expenses related to the Company’s initial public offering. Excluding these one-time expenses from both this year’s and last year’s figures, SG&A as a percentage of total net sales was 54.4% compared to 56.3% in the first quarter of fiscal 2017, with the decrease versus the prior year on a percentage basis partially driven by the calendar shift created by the fifty-third week in fiscal 2017.

•

Income from operations, inclusive of non-recurring SG&A expenses, increased to $20.0 million from $18.6 million in the first quarter of fiscal 2017.

•

Adjusted EBITDA^* for the first quarter of fiscal 2018 increased by 1.7% to $31.5 million from $31.0 million in the first quarter of fiscal 2017. As a percentage of total net sales, Adjusted EBITDA was 17.4% compared to 18.7% in the first quarter of fiscal 2017.

•

Interest expense decreased to $4.8 million from $4.9 million in the first quarter of fiscal 2017.

•

Income tax expense was $4.0 million compared to $5.6 million in the first quarter of fiscal 2017, and the effective tax rate was 26.1% compared to 41.1% in the first quarter of 2017.

•

Diluted earnings per share were $0.26 including the impact of one-time expenses, compared to $0.18 in the first quarter of fiscal 2017. First quarter fiscal 2018 diluted earnings per share included approximately $0.03 benefit from the calendar shift created by the fifty-third week in fiscal 2017, and $0.05 benefit from the lower tax rate in fiscal 2018.

•

Adjusted diluted earnings per share^* for the first quarter of fiscal 2018, which includes the benefit of the calendar shift described above and excludes non-recurring expenses and other one-time items, including CEO transition expenses, affecting diluted earnings per share, were $0.29 compared to $0.24 in the first quarter of fiscal 2017. Adjusted diluted earnings per share uses 26% and 40% tax rate assumptions in fiscal 2018 and 2017 respectively. The lower tax rate assumption in 2018, resulting from the U.S. Tax Cuts and Jobs Act enacted in December 2017, results in a benefit of $0.05 in the first quarter of fiscal 2018.

•

Adjusted EBITDA, which represents net income (loss) plus interest expense, provision (benefit) for income taxes, depreciation and amortization, equity-based compensation expense, write-off of property and equipment, and other non-recurring expenses and one-time items. We present Adjusted EBITDA on a consolidated basis because management uses it as a supplemental measure in assessing our operating performance, and we believe that it is helpful to investors, securities analysts and other interested parties as a measure of our comparative operating performance from period to period. We also use Adjusted EBITDA as one of the primary methods for planning and forecasting overall expected performance of our business and for evaluating on a quarterly and annual basis actual results against such expectations. Further, we recognize Adjusted EBITDA as a commonly used measure in determining business value and as such, use it internally to report results.

•

Adjusted Net Income, which represents net income (loss) plus other non-recurring expenses and one-time items. We present Adjusted Net Income on a consolidated basis because management uses it as a supplemental measure in assessing

our operating performance, and we believe that it is helpful to investors, securities analysts and other interested parties as a measure of our comparative operating performance from period to period.

•

Adjusted Earnings per Share (“Adjusted EPS”) represents Adjusted Net Income divided by the number of shares outstanding. Adjusted EPS is presented as a supplemental measure in assessing our operating performance, and we believe that it is helpful to investors, securities analysts and other interested parties as a measure of our comparative operating performance from period to period.

For the Thirteen Weeks Ended

May 5, 2018

April 29, 2017

Net sales

$

181,541

$

166,126

Cost of goods sold

61,200

50,518

Gross profit

120,341

115,608

Selling, general and administrative expenses

100,294

97,033

Operating income

20,047

18,575

Interest expense

4,817

4,945

Income before provision for income taxes

15,230

13,630

Provision for income taxes

3,972

5,603

Net income and total comprehensive income

$

11,258

$

8,027

Net income per common share attributable to common shareholders

Basic

$

0.27

$

0.19

Diluted

$

0.26

$

0.18

Weighted average number of common shares outstanding

Basic

42,216,331

42,518,143

Diluted

43,407,414

43,680,485

May 5, 2018

February 3, 2018

Assets

Current assets:

Cash

$

28,663

$

25,978

Accounts receivable

9,087

4,733

Inventories, net

77,503

80,591

Prepaid expenses and other current assets

21,560

21,166

Total current assets

136,813

132,468

Property and equipment, net

113,348

118,420

Intangible assets, net

145,765

148,961

Goodwill

197,026

197,026

Other assets

620

682

Total assets

$

593,572

$

597,557

Liabilities and Shareholders’ Equity

Current liabilities:

Accounts payable

$

33,308

$

53,962

Accrued expenses and other current liabilities

55,582

48,759

Current portion of long-term debt

2,799

2,799

Total current liabilities

91,689

105,520

Long-term debt, net of discount and current portion

238,523

238,881

Deferred income taxes

44,294

46,263

Other liabilities

28,019

27,577

Total liabilities

402,525

418,241

Commitments and contingencies

Shareholders’ Equity

Common stock, par value $0.01 per share; 250,000,000 shares authorized;

43,759,200 and  43,752,790 shares issued and outstanding at May 5, 2018 and February 3, 2018, respectively

438

437

Additional paid-in capital

118,153

117,393

Accumulated earnings

72,456

61,486

Total shareholders’ equity

191,047

179,316

Total liabilities and shareholders’ equity

$

593,572

$

597,557

For the Thirteen Weeks Ended

May 5, 2018

April 29, 2017

Net income

$

11,258

$

8,027

Interest expense

4,817

4,945

Provision for income taxes

3,972

5,603

Depreciation and amortization

9,357

8,799

Equity-based compensation expense ^(a)

760

24

Write-off of property and equipment ^(b)

12

2

Other non-recurring expenses ^(c)

1,346

3,585

Adjusted EBITDA

$

31,522

$

30,985

(a):

Represents expenses associated with equity incentive instruments granted to our management and board of directors. Incentive instruments are accounted for as equity-classified awards with the related compensation expense recognized based on fair value at the date of the grants.

(b):

Represents net gain or loss on the disposal of fixed assets.

(c):

Represents items management believes are not indicative of ongoing operating performance. For the period ended April 29, 2017, these expenses are primarily composed of legal and professional fees associated with the initial public offering completed March 14, 2017 and subsequent transitioning to a public company. For the period ended May 5, 2018, these expenses include costs related to a CEO transition.

For the Thirteen Weeks Ended

May 5, 2018

April 29, 2017

Net income and total comprehensive income

$

11,258

$

8,027

Add: Provision for income taxes

3,972

5,603

Income before provision for income taxes

15,230

13,630

Add: Other non-recurring expenses^(a)

1,346

3,585

Add: Accelerated equity-based compensation expense

244

—

Adjusted Income before provision for income taxes

16,820

17,215

Less: Adjusted Tax Provision^(b)

4,373

6,886

Adjusted net income

$

12,447

$

10,329

Adjusted net income per common share attributable to common shareholders

Basic

$

0.29

$

0.24

Diluted

$

0.29

$

0.24

Weighted average number of common shares outstanding

Basic

42,216,331

42,518,143

Diluted

43,407,414

43,680,485

(a):

Represents items management believes are not indicative of ongoing operating performance. For the period ended April 29, 2017, these expenses are primarily composed of legal and professional fees associated with the initial public offering completed March 14, 2017 and subsequent transitioning to a public company.  For the period ended May 5, 2018, these expenses include costs related to a CEO transition.

(b):

The adjusted tax provision for adjusted net income is estimated by applying a rate of 26% for fiscal 2018 and 40% for fiscal 2017, to the adjusted income before provision for income taxes.