With ongoing sluggishness in the housing market and the absence of the Home Meridian segment (nearly all of which was divested in December), we estimate that 1Q:F27 sales were down around 29% year over year to $60.8 million. On a brighter note, with the exit from the low-margin Home Meridian segment and reduced operating costs, we estimate that HOFT narrowed its loss to $0.09 per share in 1Q:F27 versus a loss of $0.25 per share in 1Q:F26. Although we continue to expect the operating environment will remain choppy near term, we still expect F2027 to be a tale of two halves, with the back half set to benefit from shipments of Margaritaville-licensed products starting in 3Q:F27 and other initiatives. Along with benefits from a reduced operating expense structure, we estimate that HOFT will reverse its F2026 loss of $0.33 per share and post EPS of $0.60 in F2027 and $1.33 in F2028. Our moderate risk rating on HOFT factors in our expectation of an earnings rebound in F2027 and expected free cash flow generation.