That said, the company still faces a weak consumer environment and execution risk from its expansion plans, including the Container Store deal. Losses also remain, so the turnaround is not fully proven yet. The path to sustainable profitability will be the real test from here.
For now, I see this as an early recovery play. If growth can be sustained in the coming quarters, there’s room for re-rating — otherwise, this could just be a short-term bounce. I’ll be watching closely whether this strength can carry into the next earnings cycle.
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