Greetings and welcome to the AKA Brands Holden Corp. Second Quarter Fiscal 2026 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance, please press star or zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce Casey White, General Counsel. Please go ahead.

Good afternoon. Thank you for joining AKA Brands to discuss our second quarter, 2026. Before we get started, I'd like to remind you of the company's safe harbor language. Management may make forward-looking statements within the meaning of the Private Securities Litigation Reform Act 1995. All statements made on this call that do not relate to matters of historical fact should be considered forward-looking statements, including when we refer to expectations, projections, and other characterizations of future events, including guidance and underlying assumptions. Any forward-looking statement providing during this call, including projections for future performance, is based on management's expectations as of today. We undertake no obligation to update forward-looking statements except as required by applicable law. These statements are neither promises nor guarantees and are subject to known and unknown risks and uncertainties that could cause actual results, performance, or achievements to differ materially from those expressed or implied by the forward-looking statement. For a further discussion of risks related to our business, please see our filings with the SEC. Please note, we assume no obligation to update any such forward-looking statements. This call will also contain non-GAAP financial measures such as adjusted EBITDA and adjusted EBITDA margin. Reconciliations of these non-GAAP measures to the most comparable GAAP measures are included in the release furnished to the SEC and available on our website. With that, I'll turn it over to Kieran.

Good afternoon, and thank you for joining us to discuss our second quarter 2026 results. In the second quarter, we generated net sales of $160.1 million, essentially flat to the prior year, while driving adjusted EBITDA growth of 16% year over year to 8.7 million, further validating that the structural improvements we've made across the business are enabling strong profit flow through. We delivered on our growth expectations in both the US and rest of world geographies with net sales of 2% and 51% respectively. The Australia and New Zealand region were the outlier, with net sales there contracted approximately 13%, pressured by a challenging macro backdrop and a tough prior year comparison from the clearance of non-go-forward goods. Importantly, Q3 to date momentum has accelerated in all regions, with overall net sales growth in the high single digits alongside healthy margins, giving us continued confidence in our outlook for the second half of the year. We're seeing clear proof points of success across both our women's and men's businesses, reinforcing that our strategic initiatives are resonating with customers and positioning as well for long-term growth. As I highlighted on our Q1 call, AKA Brands is a fundamentally repositioned operating model anchored on profitability and durability. Our second quarter results are a clear reflection of that transformation, with strong profit flow through, driving adjusted EBITDA growth in the mid-teens. Our performance this quarter was driven by the expanded distribution of our brands across stores, wholesale, and marketplace, the strengthening of our operational foundation, and continued financial discipline across the business. We're off to a solid start in Q3, and I remain confident that 2026 will serve as another meaningful proof point that our strategy is working and our business is on a stronger trajectory. Reiterating our strategy, we've continued building out our omni-channel model beyond our direct-to-consumer routes. Princess Polly now operates 13 U.S. stores plus our first two Australian locations, with more openings planned in both markets this year. As we announced this morning, Koji Kings is also expanding its store footprint in the U.S., with a signed lease for a new store in Puerto Rico and final negotiations for a major metropolitan opening later this year. At the same time, we are expanding our wholesale and marketplace partnerships, which are exceeding expectations, expanding brand awareness, attracting new customers, and creating incremental growth opportunities. And behind the scenes, we've laid the operational groundwork for this expansion. Inventory has been well managed, driving more full price sell-through, and improved inventory turns are giving us greater flexibility to invest in growth. That discipline has also enabled Culture Kings and Minimal to further evolve towards a test and repeat merchandising model, which has been a multi-year initiative that is now showing up clearly in our margin improvements. As I previously mentioned, we also completed a full overhaul of our sourcing network in 2025, diversifying across geographies and vendors. That gives us a more resilient supply chain, one built to support test and repeat and to handle the current trade environment as we keep growing. Together, these initiatives have strengthened our financial model. We ended the quarter with our strongest balance sheet since becoming a public company, reducing our inventory by 14% and our debt by 8% versus the prior year. And we ended the period with net leverage of 3.37 times. This provides us with increased financial flexibility to continue investing in both growth and profitability. Looking ahead, three priorities remain, driving direct-to-consumer growth through differentiated products and marketing, expanding reach through retail, wholesale, and marketplace, and continuing to sharpen our operating model. We're also scaling our AI investment, already seeing early gains in imagery, marketing efficiency, and inventory with more margin benefit expected over time. turning now to our brand highlights princess poly our largest brand delivered another strong quarter the brand's expanding omni-channel presence continued to extend its reach beyond its successful direct-to-consumer model driving growth across port new and returning customers with stores wholesale and marketplace each making meaningful contributions princess poly's thousand square foot pop-up at The Grove in Los Angeles, which opened in May, far exceeded our expectations and we're excited to have made The Grove a permanent location. Princess Polly is on track to open four additional stores in the U.S. and one in Australia, all by year-end. Looking ahead to 2027, we plan to open as many as 10 new Princess Polly stores, with five leases already executed in major trade areas, including Charlotte, Boca Raton, Nashville, Burlington, and Jacksonville. Longer term, we see the potential for a minimum of 100 Princess Polly stores in the U.S. alone, up from a current fleet of 13 stores. As I mentioned, our sales growth of more than 50% in the rest of the world was another bright spot in the quarter. The largest driver was the UK distribution center that launched in March, which is delivering the customer experience we envisioned. The two-day delivery window is transforming conversion with momentum compounding week over week. This confirms for us the tremendous growth opportunity we have for Princess Polly in the UK and internationally, which we will look to capitalize on over the coming years. From a merchandising perspective, Princess Polly enters the back-to-school selling season with an evolved approach that builds on its test and repeat model. Beginning this month and informed by strong customer feedback, the brand expanded its offering with deeper buys in core seasonal styles across denim, sweats, and tops. This is designed to capitalize on peak selling throughout the season, both in stores and online. I want to be clear though, test and repeat remains the core of Princess Polly's assortment strategy. What we're doing is layering in Evergreen programs season after season in the categories where customer demand has proven durable. Taken together, these results underscore while global expansion of Princess Polly's addressable market remains a key strategic priority. Our smaller women's brand, Petal & Pup, continue to expand its wholesale and marketplace distribution in Q2. Nordstrom remains a productive partner with strong unit velocity and sell-through across dresses and casual styles in-store and online. Macy's was a notable Q2 call-out and newly remains a strong growth partner with Topps now the number one performing category on the platform, reinforcing the strength of our expanding separates offering. Petal & Pub continues to build distribution of its expanding lifestyle assortment by adding more specialty wholesale partners and during this quarter it will take another important step, taking part in the specialty retail trade show Magic in Las Vegas, the largest wholesale trade show in the U.S. Looking ahead for Petal & Pop, we've intentionally pulled forward our product flow with fall launching in August and holiday in October, four to six weeks earlier than last year. This gives both our direct-to-consumer and wholesale partners a longer selling window heading into the back half. Petal & Pop is well positioned for the second half, and I'm confident in the white space runway and long-term trajectory of the brand. Turning now to our streetwear brands. Over the past several years, we've strengthened the foundation of the streetwear business, and we're now applying the same omni-channel playbook that has driven success across our women's brands. We're expanding beyond direct-to-consumer through stores and wholesale, while continuing to execute our disciplined full-price test-and-repeat merchandising strategy. Customers are responding to improved product and a less promotional approach driving strong sell-through. While sales were not at the level we expected for Culture Kings in Australia in the quarter, the business contributed meaningfully to the overall gross margin expansion. Culture Kings experiential retail model together with its portfolio of in-house brands that we have now transitioned to a test and repeat model including Minimal, Loiter and Caray provide a strong foundation as we expand across new channels. Minimal's recent performance have been among the strongest we've seen from the brand, with several key products achieving exceptional success in TikTok shop, and Minimal now ranking as a top five brand in the men's category on the platform. Loiter will lean further into collaborations with their recent WrestleMania partnership and the upcoming Sonic the Hedgehog collaboration serving as great examples of how differentiated the Loiter brand is. And finally, in Q2, Caray launched their first global collaboration with Coca-Cola centred around the World Cup, and we're excited by Caray's product pipeline and future collaborations. The team's continued work expanding the in-house brand portfolio, curating third-party brands such as Nuera, Adidas, and Asics, and driving the strategic transition towards a more full-priced, test-and-repeat model sets the stage for meaningful, profitable growth ahead. Marketing remains a key strength for Culture Kings. Brand activations, creator partnerships, and exclusive collaborations continue to drive traffic, customer engagement, and cultural relevance, reinforcing the foundation for profitable growth. Our men's brands are known as solid footing to follow a similar path to our women's business. expanding reach through brick-and-mortar retail, wholesale partnerships, and marketplaces. We're still early in this journey, but I'm confident that we're in a strong position to meaningfully grow our men's total addressable market. As I've mentioned, we signed a new Culture King store lease in Puerto Rico, and we're in the final negotiations for another opening in a major metropolitan market. We expect to have both new stores open in Q4, 2026. These will be Culture King's first new U.S. store opening since 2022 and mark an important milestone in the brand's next phase of growth. New stores will draw on the learnings from our highest performing Australia locations, as well as our highly productive and profitable Las Vegas flagship. In closing, our second quarter results reinforce that the operating model we've built is delivering. We post double-digit adjusted EBITDA growth, positive operating cash flow year-to-date, and our strongest balance sheet position since our IPO. The work we've put into go-to-market strategy, sourcing, inventory, and channel expansion is translating directly into profit flow-through. Q3-to-date trends have been strong, and we continue to make progress building out our omni-channel model. Well underway in women's, just beginning in men's. Taken together, that gives me real confidence in both the back half of the year and the long-term opportunity across our brand portfolio. I want to thank our teams for their continued hard work and commitment. Our results are a direct reflection on their dedication to our brands and our customers. Before I turn it over to Kevin, I want to take a moment to note a change to our board. Eileen Eskenazi has stepped down after many years of dedicated service, and on behalf of the entire company, I want to thank her for her contributions and counsel over time. I'm delighted to welcome Kerry Cassidy to the board. Kari brings deep expertise in talent and organizational leadership, having served as Chief People Officer of Restoration Hardware and held senior leadership roles at Levi Strauss, Barclays, and First Data, and currently serves on the board of Fuma and GL Mazzetta. As we scale our brand's portfolio, her perspective on leadership and organizational performance will be a real asset to this board. We're excited to have her on board. With that, I'll turn it over to Kevin.

Thanks, Kieran. For the second quarter, net sales and adjusted EBITDA were in line with our expectations, with adjusted EBITDA growing 16%, reflecting continued execution against our full-year plan. Let me walk you through the drivers. Net sales were $160.1 million for the second quarter, compared to $160.5 million a year ago. On a constant currency basis, net sales declined 5.3%. By region, net sales in the U.S. increased 2.1% to 110.7 million. Net sales in the rest of the world increased 50.5% to 9.6 million, driven in part by the opening of our new UK distribution center. In the Australia and New Zealand region, net sales declined 13% to 39.8 million, where we're seeing consumers under increased pressure from the macro environment. Total orders were $2.04 million, down 0.5% year-over-year. Trailing 12-month active customers, excluding wholesale, increased 4.4% to $4.31 million compared to $4.13 million a year ago. And average order value was $78, consistent with last year. Gross margin increased 360 basis points to 61.1%. Let me provide some additional detail on our Q2 gross margin. The reported 61.1% rate did not include any IEPA refunds. Of the 360 basis points of year-over-year expansion, approximately 240 basis points related to lower year-over-year tariffs. The remaining expansion of 120 basis points was driven largely by our streetwear brands, a direct result of higher full-price selling, partially offset by higher air freight costs. Our outlook, which I'll cover in a moment, assumes a gross margin of approximately 59% for Q3 and reflects current tariff rates and elevated air freight costs. Moving to selling expenses. Selling expenses were $47.8 million compared to $45.4 million a year ago. The increase was driven by higher in-store selling expenses as we continue to increase our retail footprint. As a percentage of net sales, selling expenses were 29.9% compared to 28.3% a year ago. Marketing expenses were 21.4 million compared to 19.9 million a year ago and 13.3% of net sales. General and administrative expenses were 27.5 million flat with a year ago. Adjusted EBITDA increased 16% to $8.7 million in the second quarter, our highest quarterly adjusted EBITDA since Q2 2022, driven primarily by higher gross margin. This compared to $7.5 million a year ago. Our adjusted EBITDA margin grew 80 basis points to 5.5%. Turning to the balance sheet, we ended the quarter with $21.1 million in cash and cash equivalents compared to $23.1 million a year ago. During the quarter, we received substantially all of the $25.8 million in expected IEPA tariff refunds, which is reflected in our operating cash flow. Total debt at the end of the quarter declined 8.1% to $99.9 million from $108.7 million a year ago as we continue to focus on reducing our leverage and strengthening our balance sheet. Net leverage declined to 3.37 times at the end of the quarter, compared to 3.5 times a year ago. We ended the quarter in a healthy position with $79.9 million in inventory, down $13.6 from a year ago. Turning now to our outlook. We're pleased with our strong start to Q3, with net sales up high single digits, and are confident in the strategic initiatives in place as we head into the back half of the year. We are reiterating our guidance for fiscal 2026. We continue to expect net sales to be between $625 to $635 million and adjusted EBITDA of between $30 to $32 million. For the third quarter, we expect net sales to be between $160 and $164 million. As I mentioned, we expect gross margin of approximately 59% and adjusted EBITDA of between $8 and $8.5 million in the third quarter. For modeling purposes, we expect to incur a one-time charge of approximately $3 million in Q3 related to a planned distribution center relocation that will be reported in selling expenses but excluded from adjusted EBITDA. For the full year, we anticipate fiscal 2026 stock-based compensation of approximately $6.5 to $7 million, depreciation and amortization expense of roughly $20 to $21 million, interest and other expense of approximately $16 to $18 million, an effective tax rate of negative 10%, CapEx between $18 to $20 million, and weighted average diluted share count of approximately $11 million. In closing, we are pleased with our execution this quarter against our strategic plan. We believe we are well positioned to build on this momentum and continue delivering long-term value for our stockholders. With that, we'll open the call for questions.

Thank you. We'll now be conducting a question and answer session. If you would like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star 2 if you'd like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment, please, while we poll for questions. Thank you. Our first question is from Ryan Myers with Lake Street.

Hey, guys. Thanks for taking my questions. Congrats on a strong quarter. You know, just thinking about the unchanged revenue guidance, obviously you guys are expecting to see some pretty significant momentum here in the second half of the year. And I know you faced some easier compares from last year's second half, but just, you know, walk us through maybe what you're seeing in the business right now is demand picking up. Is it maybe a continuation of what you saw in the first half of the year, just so as we understand kind of the strength in the second half of the year?

Yeah, thanks, Ryan. You know, I think it is great to see that kind of we're now up high single digits as we kind of, you know, go through Q3. And I think, look, it's somewhat the performance, I would say, kind of certainly for U.S. and rest of the world that we started seeing as we saw kind of improving comps there and performance as we went through Q2. And, look, you know, with U.S. is running up double digits quarter to date, you know, I think there's a combination of drivers there, right? I would say compared to this time last year, our inventory is just in a much better position and our inventory flows in a much better position. You know, we certainly had a lot of challenges, you know, last year as we made such significant transition to our supply chain. and we also have more wholesale partners more marketplace you know which more distribution points which continues to build there and then look from a store perspective we have seven more stores um you know as we can we'll end q3 than we had last year so obviously some some nice comp from there and i think look one of the standouts of last quarter was that you know the performance that we saw in the rest of world group and particularly kind of what we see happening from opening up that UK distribution center with rest of world up over 50% in the quarter. So I think, look, there's a lot of strong momentum across the business. And I think, you know, great, like I said, to see us back at double digit growth in the US and high single digits overall.

Right, for sure. And then, you know, thinking longer term, you guys had said Princess Polly targeting at least 100 stores. So what are you seeing from the current store base in terms of productivity and paybacks that kind of gives you the confidence in that target longer term?

Yeah, I think, you know, with 13 doors open so far, so look, it was still early days on kind of the opportunity that we have. you know we'll do another look to do another 10 at least next year and then certainly see kind of a hundred potential in the U.S. and I think look what we're seeing at the moment is that you know the stores are introducing us to new customers they also have a nice halo effect for the online business and we just see really really strong productivity you know we're modeling them all to have a payback of two years or less and I would say we're seeing kind of better performance than that across the fleet and I think look we're still early days I think how we are evolving our approach to assortment being more evergreen I think is particularly helpful for the stores excited to see how they perform now in the back to school season with more of that denim fleece and tops inside there and just kind of really showing up in a strong way for their customers. So, yeah, I think we're just really excited about the opportunity.

Got it. No, that's great to hear. Thanks for taking my questions.

Our next question is from Eric Better with SCC Research.

Good afternoon. Congratulations. Let's talk about Culture Kings. When we see the new stores coming to Puerto Rico in the metropolitan area, how can you compare and contrast that into what we're seeing, what the stores were in Vegas? and how you're looking upon kind of leveraging those?

Yeah, I think, look, Eric, we are super excited, you know, that we will have another two stores open for Culture Kings in the U.S. before the end of the year. Like you said, one in Puerto Rico, one in another major metropolitan area. I think, you know, the stores that we will open will be more in that kind of, you know, four-and-a-half to five-and-a-half, 6,000-square-foot size, So certainly smaller than Vegas, you know, from a size perspective, you know, I think it won't have some of the, you know, the really big features that Vegas has. But I think, you know, we'll take a lot of learnings from, you know, the new Brisbane store that we have in Australia, how well that's performing, and what we've learned from Vegas, right? You know, I think it will very much continue to be, you know, I would say headwear, footwear, core components of the store, but also really leading with our own first party brands. And I would say in particular, Minimal, Loiter, you know, St. Martha, American Trift continue to, you know, have really strong performance, you know. And I would say now kind of across the world as we bring in new products, you know, we're starting to see that and how it's, you know, a meaningful increase to the overall gross margin of the business. But we can also see on that newer product we're bringing in, you know, in Australia and the US, it's growing double digits, even more growth from a gross margin dollar perspective. So I think, you know, it's going to be great to have some more doors open and really show off the Culture Kings brand to people.

Anya, so Australia, could you talk back a little bit more about the two things? One is you opened another Princess Polly store. How are the Princess Polly stores doing and what's the potential for that? And so I think what are, what are you seeing economically that's kind of causing kind of Australian growth after a very long period of positives there?

Yeah, thanks, Eric. Look, it was great. Princess Polly opened their second store in the Gold Coast area after the first one in Bondi Beach last year. And I would say, look, phenomenal success. You know, the amount of traffic they got on that first weekend, and I would say kind of performance has continued to be really strong for the brand. You know, the brand is obviously Princess Polly just really well established in Australia. and you know this is the second store so i would say that kind of that customer has been um you know really waiting and longing to you know get in in their field and and touch and feel the product so i think look just super success there i think longer term in australia we could certainly see you know a handful maybe up to 10 stores um as a reminder we've got eight stores for culture kings in australia i think we'll continue to be a predominantly a direct to consumer business down there but certainly could see you know a handful of stores down there for for princess poly you know and then um as it relates to the the region itself you know um yeah like you like you mentioned we we had been on a a nice period of seeing growth from the region and look the um you know the region was up 3.8 percent in q1 and and culture kings was pretty much flat comping and we certainly saw pressure there from a macro perspective you know significant kind of fuel hikes rate hikes and and i would say what we are seeing and have heard from other retailers is pretty similar that kind of you know pressure degrading in in june and into july i would say look some of the bright spot for for us are obviously seeing the the stores in the region positive comping in july it's great to see that i think it's really showing the progress um that we've made on resetting that business getting the right product in there moving past the older product and that newer stuff as i mentioned you know we are seeing double digit comps on that product um and even more from a gross margin perspective so i think look all of that is pointing to us feeling that um you know that business is going to get back on track we're making really good progress on doing that and gives us a lot of confidence to open new stores now in the U.S. for the brand as well.

Great. Thank you.

Our next question is from Randy Connick with Jeff.

Hey, guys. Thanks for taking my questions. I guess what I want to ask about is now with the announcement of Princess Polly thinking at least 100 stores, I think it would be super helpful to understand how you think about long-term penetration by channel, let's say, how you think about e-com versus stores versus wholesale of the broader of the entire kind of portfolio. And then can you give us some like high-level thoughts on how you think about margin contribution or overall margin by channel so we kind of think through how we think about overall long-term operating margins for the entire company. That'd be super helpful.

Yeah, I think, you know, it's certainly great, the work we've done over the last couple of years. You know, I would say look at the individual brands, but also across the group on, you know, really following that strategy of leaning into the direct-to-consumer with, you know, product from a marketing perspective, but also opening up these new channels. And I think, look, we've learned a lot over the last couple of years from a store perspective, from a wholesale, from a marketplace, you know, even from TikTok, I would say, over the last 12 months and the kind of the opportunity across them all, I would say, all have slightly different operating model, all have slightly different, I would say, you know, economics from a, you know, more from a geography of gross margin selling and marketing perspective. I think what we can see with them all, Randy, is, look, there's just a huge opportunity for us, right? We're really early on, and I think when we kind of put our product in front of customers, they are reacting to it really positively and giving us confidence to lean into these opportunities. You know, I certainly think, you know, for, you know, if today we had, you know, 100 stores for Princess Polly, I think with the, you know, with the halo benefit that we would get to the online business, as well as how many more customers we'd introduce to the brand, you will still see that direct-to-consumer business being larger than stores. And then I would say that, you know, for us then, you know, wholesale marketplace would be materially smaller than both of those opportunities as well, but still, you know, meaningful to the overall business. So I think, you know, probably for me, that mix longer term, I think, majority still direct to consumer with stores next and then wholesale marketplace. And I think a version of that holds through certainly across the streetwear business and probably for Petal & Pop as well, although the timing of it might be a little bit different on that brand.

Got it. And then my last question would be, you know, when I look at the cash flow statement in the press release, it looks like, you know, debt pay down exceeded CapEx on a six month basis. So maybe give us some perspective of how you're thinking, again, let's say medium term, about capital deployment to grow, let's say, Princess Polly units or stores, and then versus your thoughts on debt paydown. Like, how do you think about that kind of interplay between CapEx utilization for stores and debt paydown?

Yeah, thanks, Randy. Yeah, no, we finished the quarter, obviously, in a really great spot on the balance sheet, as we talked about. You know, we did have the IEPA cash come in during the quarter, which was obviously great. The debt is down year over year 8%, and our leverage is down both sequentially from Q1 and also year over year down to 3.3. You know, it will continue to be a priority for us to bring down debt, to generate cash, And we definitely see the potential to do that. If you kind of reflect back and look at the last 18 months, which smooths out some of the ins and outs of all the tariff noise, we've generated $35 million of operating cash and that we've put $25 million to CapEx and $10 million to debt. So, you know, you can see that we have that track record of being able to fund the growth and then also to continue to bring down debt and to bring down the leverage. and that will certainly be a priority for us to chase the growth and also to do it in a healthy way from a balance sheet perspective.

Yeah, and I would just add on, Randy, I think certainly from a, you know, it's great to see the progress on EBITDA, you know, 16% growth, you know, year to date. It's up, I think, over 35% for the six-month period versus last year. But, look, we're still, you know, haven't seen the full benefit of the progress we're making on the streetwear business, right? It's great to see the margin of 120 basis points. And I think as we've talked about for a while now, you know, customers would start first seeing the new product and really reacting positively to it. Great to see that. We'd see it in the financials and gross margin first, which we have now for the last couple of quarters. I think next we'll start seeing it in increasing EBITDA. And then we'll really start seeing it from a comp perspective. And I think when that really kicks in at the level we kind of expect that it can, I think we'll continue to, you know, increase EBITDA, increase cash flow, and increase our ability to lean into these growth opportunities that we have.

Thanks, guys.

Our next question is from Dana Telsey with Telsey Advisory Group.

Hey, everyone. Nice to see the progress. On Princess Polly, the 100-store opportunity, I could definitely see that. As you think about the go forward and the expansion there, how many – can you open a year? Are you seeing as you open more, are there – whether it's cost to open, whether it's fixtures, is there leverage that you can get? And as you think about the store size and where you're going, is there different store sizes in different types of neighborhoods? And then at Culture Kings, any learnings from culture, from Princess Polly about opening stores in the U.S., what you should or shouldn't do? And then just on the retail stores part versus wholesale, how do you think of the margin structure of retail and wholesale?

Yeah, thanks, Dana. I think, gosh, I think we've learned a lot, I would say. You know, I think we're super fortunate, right, with just the level of data that we have and how we can analyze where our customers are, you know, customer frequency, customer white space that we have, you know, and how that lines up with different mall locations and opportunities that are there. For us, we can really kind of focus in on what are the right spots for us to open a store. And look, it's somewhat then around timing from, you know, is there the size that we want and with the economics that we want. I think we're very much at this stage looking for those kind of right spots, right locations, right economics for us, rather than chasing a kind of particular store count. I do think, look, I'd love to do what expected 10 stores next year for Princess Polly. That's a 50% increase year over year to the overall fleet. And I think, look, as we continue to refine how we're opening stores, we can accelerate that process as well. You know, as it relates to the cost to open stores, I think, look, we're certainly, you know, have been refining over these, you know, first 13 that we've opened the, you know, how the store should be laid out, what fixtures really make sense for us, you know, for us and for our customers with how they shop. So I think very early days on, you know, figuring out how we bring down the, you know, the costs of store openings. And, you know, I would say that from a fixture perspective and just also kind of from a speed of opening. And I think, look, we are taking those learnings across to Culture Kings as well, right? We are not needing to rebuild systems, tools, processes as we open more stores for Culture Kings. So I think, you know, they'll benefit from some of the work that Princess Polly has done and will allow them to be more efficient and quicker with opening stores. um and then just from a margin perspective look i i would say the certainly from a um a gross margin perspective obviously kind of you know stores materially higher you know um you know from getting full price at retail and then just all of the margin there versus the the wholesale um you know and then but obviously you have higher selling expenses and some marketing expenses for for stores rather than wholesale. So I think, look, you kind of blend out to a, I suppose, a EBITDA before GNA, pretty similar across both channels, but obviously you're getting that full retail from a store perspective.

Thank you.

Thank you. Ladies and gentlemen, this concludes our question and answer session and does conclude today's conference as well. You may disconnect your lines at this time. Thank you again for your participation, and have a wonderful day.