Falcon Retail
Quarterly Business Review
Q4 FY2025 | November 2025 — January 2026
Presented March 17, 2026 · Data as of January 31, 2026
Executive Summary
Q4 FY2025 Performance vs Prior Quarter, Prior Year, and Plan
Net Sales
$62.3M
-0.3% vs Q3 | -7.0% vs LY
Gross Margin
$26.1M
-0.2% vs Q3 | -6.9% vs LY
Margin Rate
41.8%
+0.1pp vs Q3 | +0.0pp vs LY
Transactions
161.5K
+0.1% vs Q3 | -6.8% vs LY
Units Sold
403.4K
+0.0% vs Q3 | -6.9% vs LY
Avg Transaction
$385.82
-0.5% vs Q3 | -0.2% vs LY
Customers
72.1K
+0.2% vs Q3 | -3.0% vs LY
vs Plan
$62.3M / $60.9M
+2.4% above plan
Key Takeaway: Q4 finished flat vs Q3 and beat plan by 2.4%, but trails LY by 7% across all metrics. Margin rate held steady at 41.8% despite increased promotional activity. Customer count erosion of 3% YoY is the primary concern.
Quarterly Net Sales Trend
Monthly Revenue Trajectory
FY2025 vs FY2026 month-by-month comparison
Monthly Net Sales — FY2025 vs FY2026
Trend: December was the Q4 peak at $21.4M, consistent with seasonal holiday patterns. November and January bookended at ~$19.7M–$21.2M. FY2026 months are tracking in line with FY2025 through the first quarter.
Category Performance
Q4 FY2025 vs Q4 FY2024 (Prior Year) by product category
Net Sales by Category — Q4 FY2025 vs Q4 FY2024
Category Detail
| Category | Q4 FY25 | Q4 FY24 | YoY % | Margin |
|---|
Insight: All 8 categories declined YoY (5–7%). Bottoms held up best (-5.1%), while Activewear saw the steepest drop (-5.3%). Margin rates remained stable across all categories at ~41.5–42.2%.
Channel Performance
Q4 FY2025 channel mix vs prior year and current quarter
Channel Revenue — Q4 FY2025
Channel Shift: Curbside led in Q4 ($12.6M), overtaking In-Store which dropped to 5th. Digital channels (E-Commerce + Mobile App + BOPIS) captured 60.2% of total sales. In-Store share declined from 20.2% LY to 19.7%.
Regional Performance
Q4 FY2025 vs Q4 FY2024 by region
Regional Revenue — TY vs LY
Regional Breakdown
| Region | Q4 FY25 | Q4 FY24 | YoY % | Share |
|---|
Regional: Southeast remains the #1 region at $17.4M (27.9% share) but declined 7.4% YoY. Southwest saw the largest decline at 8.1%. Mountain held steady as the smallest region at $2.5M.
Store Leaderboard
Top 15 stores by net sales — Q4 FY2025
Top 15 Stores by Net Sales
Top Performer: Arcline St. Louis led the quarter at $2.57M, followed closely by Boston ($2.55M) and Portland ($2.54M). The top 15 stores are tightly clustered within a $85K range — performance is well-distributed.
Digital & Store Traffic
E-Commerce sessions, conversion, and in-store foot traffic
E-Com Sessions
2.43M
-5.5% vs LY
E-Com Orders
150.3K
-4.1% vs LY
E-Com Conversion
5.27%
+0.09pp vs LY
E-Com Revenue
$24.1M
-3.2% vs LY
Store Traffic
1.16M
-5.4% vs LY
Store Conversion
24.8%
-0.1pp vs LY
Avg Basket
$98.82
+1.9% vs LY
Email Captures
33.1K
-5.6% vs LY
E-Commerce: Sessions vs Orders
Store Traffic & Conversion
Digital Health: Despite session decline, e-com conversion improved to 5.27%. Store basket size grew +1.9% — customers visiting stores are spending more per trip. Email capture decline (-5.6%) mirrors traffic trends.
Inventory Health
Sell-through rates, weeks of supply, and markdown depth by category — Q4 FY2025
Sell-Through Rate by Category
Weeks of Supply vs Markdown Depth
Inventory Risk: Footwear (86.5% STR) and Denim (82.3%) are star performers. Bottoms (34.8% STR) and Outerwear (44.3%) need aggressive clearance. Stockout events concentrated in Activewear (89) suggesting demand forecasting gaps.
Customer & Loyalty
Loyalty tier performance — Q4 FY2025 vs Q4 FY2024
Loyalty Tier Detail
| Tier | Customers | Revenue | $/Customer | YoY Rev % |
|---|
Loyalty: Bronze tier dominates at 68.4% of revenue but spend per customer fell 4.3% YoY ($938→$897). Platinum showed the strongest retention (nearly flat customer count) but spend per customer dropped 6.2%. Opportunity: re-engage lapsed Silver/Gold members.
Plan Attainment
Q4 FY2025 actual vs planned targets by fiscal period
Monthly Sales: Actual vs Plan — FY2025 Q4
Plan Performance: Q4 beat overall sales plan by +2.4% ($62.3M vs $60.9M plan). All three months of the quarter exceeded their individual targets: November +44.6%, December +56.5%, January +55.6%. Strong execution across all periods.
Key Actions & Outlook
Strategic priorities for Q1 FY2026 based on Q4 results
Accelerate
Footwear & Denim: Highest STR and GMROI — increase OTB allocation by 15%
Curbside channel: #1 channel by revenue — invest in curbside infrastructure and staffing
E-Commerce conversion: Up +0.09pp YoY — double down on UX improvements and personalization
Fix
Bottoms inventory: 34.8% STR — launch 20%+ markdown clearance event
Customer erosion: -3% YoY unique customers — activate win-back campaign for lapsed buyers
Activewear stockouts: 89 events — improve demand forecasting and safety stock levels
Monitor
In-Store channel: Share declining (20.2%→19.7%) — evaluate store experience investments
Outerwear: Largest inventory position, lowest STR — seasonal clearance timing critical
Bronze loyalty spend: -4.3% per customer — are we over-promoting to price-sensitive segment?
Explore
Mobile App growth: 3rd largest channel — test exclusive app-only promotions
Platinum tier expansion: Only 1,819 customers — create targeted upgrade path from Gold
Regional rebalancing: Mountain region underserved — evaluate market expansion