Shares fell sharply by 22.3% as investors reacted negatively to cautious outlook signals and margin pressures despite reported revenue growth.

• Net revenue grew 28% year-over-year, driven by accelerated active customer growth and strong core U.S. e-commerce performance.
• Broadened product offerings and new launches, including maternity styles and a Star Wars collection, aimed to deepen market penetration.
• Adjusted EBITDA margins reportedly exceeded expectations by 170 basis points, but unplanned fuel surcharges and opportunistic investments added cost pressure.
• Management emphasized operational discipline and long-term structural tailwinds but indicated more cautious near-term momentum.
• Market reaction suggests that deceleration concerns or cautious guidance overshadowed reported execution and growth metrics.