Despite pulling in adjusted earnings per share of 10 cents in the quarter, the company missed analysts' estimates by 4 cents. The stock also took a hit from JPMorgan downgrading the retailer to underweight from neutral.
Still, the company stacked up solid gains over last year's second quarter: Net income rose to $3.2 million from a net loss of $900,000 the same time last year.
Revenue was also up 2.8% to $224.5 million year over year, thanks in part to "incremental" sales from new stores.
"We continued to make progress" on new product strategies, said CEO Melissa Reiff, who also noted in a statement that the company completed its debt refinancing and attracted customers with custom closets.
"However," said Reiff, "elements of our merchandise campaign test and learn efforts, mostly around our other product categories, did not resonate with customers as well as we expected, curtailing our comparable store sales and earnings performance for the quarter."
Currency costs also hit the company.