With ongoing choppy demand, we estimate that July quarter sales slipped 6.8% from a year earlier to $88.6 million. On a brighter note, assuming a slightly higher gross margin and lower S&A expenses, we now assume that HOFT narrowed its loss to $0.16 per share in 2Q:F26, from $0.19 per share in 2Q:F25. With tariff uncertainty continuing, we trim our F2026 EPS estimate by $0.04 to $0.01, though we maintain our view that better macroeconomic conditions, potential interest rate reductions, ongoing traction with the company's revenue initiatives and cost cutting actions will enable HOFT to improve EPS to $1.38 in F2027. Despite recent challenges, the company's balance sheet remains in good shape, with debt to total capital at only 10% at the end of 1Q:F26. Our moderate risk rating on the stock factors in our expectation of an earnings recovery in F2026, the good balance sheet and projected free cash flows.