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BUSINESS SEGMENTS
6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
BUSINESS SEGMENTS BUSINESS SEGMENTS
Segment information
The Company operates in two reportable segments: U.S. and International. The U.S. segment is the Company’s domestic business that designs, markets and distributes its products to retailers and distributors, as well as directly to consumers through third parties and its own internet websites primarily in the U.S.. The International segment is the Company’s international business that sells and distributes products to consumers primarily in the U.K., the European Union and the Asia Pacific region.
The Company’s chief operation decision maker (“CODM”) is the Company’s Chief Executive Officer. The Company has segmented its operations to reflect the manner in which the CODM reviews and evaluates the results of its operations. The CODM allocates operating and capital resources and evaluates the performance of the Company’s segments based on segment net sales, segment gross margin, and segment (loss) income from operations. Such measures give recognition to specifically identifiable operating costs. Significant segment expenses that are included in segment operating income consist of cost of sales, distribution expenses (which include freight-out expenses and warehouse expenses) and selling, general and administrative expenses.
Certain general and administrative expenses are not allocated to the Company’s segments as these represent corporate level activities and are reflected below as unallocated corporate expenses. These costs primarily include senior executive salaries and benefits, stock compensation, director fees and accounting, legal fees and consulting fees.
Three Months Ended
June 30,
Six Months Ended
June 30,
2025202420252024
Segment Performance Measures:(in thousands)
Net sales:
U.S.$119,315 $130,503 $247,825 $260,983 
International12,547 11,163 24,122 22,925 
Total net sales$131,862 $141,666 $271,947 $283,908 
Gross Margin:
U.S.$46,769 $50,478 $93,333 $103,761 
International4,070 4,072 8,143 8,336 
Total gross margin$50,839 $54,550 $101,476 $112,097 
(Loss) income from operations
U.S.$(29,620)$9,189 $(27,722)$18,631 
International(3,328)(2,932)(6,280)(6,021)
Unallocated corporate expenses(1)
(4,259)(5,090)(2,106)(9,613)
(Loss) income from operations
$(37,207)$1,167 $(36,108)$2,997 
(1) Unallocated corporate expenses for the six months ended June 30, 2025 included a net legal settlement gain of $6.4 million. Details see NOTE 12 — CONTINGENCIES
Three Months Ended
June 30,
Six Months Ended
June 30,
2025202420252024
Supplemental information for significant segment expenses:(in thousands)
Cost of sales:
U.S.$72,546 $80,025 $154,492 $157,222 
International8,477 7,091 15,979 14,589 
Total cost of sales$81,023 $87,116 $170,471 $171,811 
Freight-out expenses:
U.S.$3,122 $2,042 $6,401 $5,355 
International717 664 1,262 1,461 
Total freight-out expenses$3,839 $2,706 $7,663 $6,816 
Warehouse expenses:
U.S.$10,448 $9,826 $21,960 $19,517 
International3,027 2,520 5,761 4,900 
Total warehouse expenses$13,475 $12,346 $27,721 $24,417 
Selling, general and administrative expenses:
U.S.$29,582 $29,421 $59,457 $60,258 
International3,654 3,820 7,400 7,996 
Unallocated corporate expenses(1)
4,259 5,090 2,106 9,613 
Total selling, general and administrative expenses$37,495 $38,331 $68,963 $77,867 
Goodwill impairment:
U.S.$33,237 $— $33,237 $— 
(1) Unallocated corporate expenses for the six months ended June 30, 2025 included a net legal settlement gain of $6.4 million. Details see NOTE 12 — CONTINGENCIES
Three Months Ended
June 30,
Six Months Ended
June 30,
2025202420252024
(in thousands)
Depreciation and amortization:
U.S.$5,103 $4,611 $10,482 $9,267 
International334 283 653 566 
Total depreciation and amortization$5,437 $4,894 $11,135 $9,833 
Capital expenditures:
U.S.$1,121 $422 $2,688 $938 
International52 76 58 160 
Total capital expenditures$1,173 $498 $2,746 $1,098 
June 30,
2025
December 31,
2024
(in thousands)
Assets
U.S.$447,722 $542,420 
International87,074 88,961 
Unallocated corporate17,081 2,929 
Total Assets$551,877 $634,310