With a continued uneven operating environment, we estimate that 1Q:26 revenue slipped 2.6% to $136.4 million. Mainly reflecting our assumption of effective operating expense management and a larger tax benefit (versus 1Q:25), we estimate a loss of $0.17 per share compared to a loss of $0.25 per share in 1Q:25. After the 5.1% revenue decline in 2025, we still expect sales to recover for LCUT in 2026 and 2027 as the company will likely benefit from price increases, expected sales growth of Dolly licensed products and other initiatives. Given our concerns, however, about the effect of higher fuel prices on consumer spending and the company's distribution expenses, we reduce our 2026 and 2027 EPS estimates to $0.57 and $0.70, respectively (from $0.65 and $0.77). Our moderate risk rating factors in our expected earnings recovery in 2026 and healthy free cash flow prospects.