a.k.a. Brands Holding Corp. Price & Performance (AKA)

With that, I'll turn the call over to Tron. Good afternoon, everyone, and thanks for joining us. This marks my first call as the permanent CEO, I'm thrilled to build on the foundation we've established over the past few years and need AKA brands through this next chapter of growth. I'd also like to introduce Kevin Grant, our Chief Financial Officer, was appointed to the role in the January? Prior to becoming the CFO, Kevin was the company's Controller and a key senior leader at AKA Brands since April 2021. Kevin joined AKA from Walmart he spent seven years in senior finance positions and prior to that, he spent eleven years at Ernst and Young. I'm excited to have him on the call today. 2024 was an exciting and pivotal year for AKA Brands. Marking a fundamental shift in our trajectory. I'm particularly proud that we delivered results ahead of our expectations. Which is a testament to our team's ability to execute at the highest levels. Thank you to our team for their hard work and dedication building next generation fashion brands as well as their consistent innovation and enthusiasm towards serving our customers. Before I go through the results, I'd like to highlight some key achievements from the past year.

In 2024, we achieved a significant milestone by stabilizing the business and returning to growth. We delivered $575,000,000 in net sales, representing a 5.2% increase over the prior year. In The U. S, which is our largest market, we delivered an impressive 17% net sales growth. Underscoring the strength of our brands and the long runway of opportunity ahead in the region. We successfully attracted new customers strengthening our bond with existing ones. Resulting in an impressive 9% growth in our trailing twelve month active customer base surpassing 4,000,000 customers. We expanded our omni channel initiatives to drive profitable growth We opened five Princess Polly stores throughout California, Arizona and Boston and our women's brands further their wholesale tests with leading retailers such as Nordstrom. We enhanced our assortment with fresh high quality merchandise resulting in stronger full price sales. A 200 basis point improvement in gross margin to 57%. And lastly, given the strength and flexibility of our business model, we delivered $23,300,000 of adjusted EBITDA which represented significant year over year growth of 69%. Our strong financial performance and ability to execute our strategy gives me great confidence in AKA Brands' many profitable growth opportunities ahead. [indiscernible] As we look at 2025, we are steadfast in our focus on growing our brands and enhancing our overall profitability.

Momentum continues with the quarter to date net sales growth consistent with our Q1 outlook of 4% to 6%. We're confident in our full year sales outlook of $600,000,000 to $610,000,000 representing growth of 5% at the midpoint and adjusted EBITDA of 27.5% to $29,500,000 for the year. Building on the success of last year, we remain focused on three key priorities: First, we will attract or retain customers through our direct to consumer channels. Our brands are early on in their journey, we believe we have significant opportunity to grow awareness of our brands. Includes the evolution of our Test and Repeat merchandising model, and delivering on our promise of curating new on trend exclusive fashion to customers weekly. We'll also leverage differentiated and innovative strategies across multiple marketing platforms to deepen our direct connection with customers. Second, building upon our already success, will expand our reach and total addressable market through physical retail and growing our wholesale partnerships. As you saw in our press release this afternoon, we will open seven new Princess Polly stores in 2025. With our first store in New York City slated to open next week. We're also expanding our wholesale presence. Princess Polly and Petal and Buck will launch across Nordstrom's entire store fleet this month.

And third, we remain committed to streamlining our operations strengthening our financial foundation. As part of this, will continue to harness the power of our flexible technology ecosystem which allows us to explore new AI capabilities to deliver great customer experience and drive operational excellence with minimal capital investment and resources. In combination with our comprehensive set of customer data, we will leverage AI driven solutions to personalized customer journeys optimize marketing streamlined inventory planning and operational workflows. Now let me share some recent highlights from our brands as well as growth drivers for 2025. Starting with Princess Polly, our largest brand, that's well known for its trend driven designs and authentic connection with its customers. Several years as an online owning brand. And I'm pleased that the brand continues to resonate with its customers through innovative merchandising and marketing strategies. Anchored on our data driven test and repeat merchandising models Princess Polly consistently drops new collections and styles to stay ahead of the trends and capitalize in big moments such as upcoming fest Core to the Princess Polly brand is its next generation marketing approach which blends traditional and cutting edge marketing initiatives to foster deep connection with its customer.

In 2025, as part of our strategy to attract and retain customers, Princess Polly will lead with its influencer strategy on social media, to over 30 different marketing platforms, including WeChat, Netflix, out of home billboards to build upon the momentum and brand affinity. [indiscernible] primarily digital for its fashion brands, the brand is expanding its footprint to remain at the forefront of the next generation of retail.

In September of twenty twenty three, Princess Polly took a significant step by launching the brand into physical retail woods for a store in Los Angeles. [indiscernible] in store customer response exceeded our expectation validated our omni channel vision, led Princess Polly to opening five more stores in 2024. [indiscernible] stores drive revenue and profitability However, their strategic value lies in expanding brand awareness, acquiring the customers and creating deeper, more meaningful connections where our existing customers through enhanced touch physical experiences. More than 30% of customer shopping in our stores are new to Prince Polly on their first visit. And importantly, while it's still early days, we've observed an incremental lift in our online business in the surrounding radius when a store opens. Confirming our thesis that we're expanding our market share with each new location. We are excited to announce that we will be opening our latest expression of the Princess Polly brand in Seoul, New York City next week. The opening will be supported by an engaging series with launch celebrations, featuring in store grand opening events and citywide activations. We encourage those of you in New York to come out and experience the brand first hand.

Building on the store momentum, I'm excited to announce that Princess Polly will seven new stores across The U. S. In 2025. Which would bring the total number of stores to 13 by year end. In addition to New York City, Princess Polly will unveil stores in top shopping destinations across the country including New York, Florida, California, Ohio and Pennsylvania. From a timing perspective, four stores will open in the first half of the year with the remaining stores slated to open in the back half. Building upon its omni channel model, Princess Polly is also expanding its reach through strategic partnerships with leading retailers. Following a highly successful pilot across 20 North Trim locations in the fourth quarter, Princess Polly will launch new styles across all Nordstrom stores nationwide in the first quarter. Further validating that broader consumer exposure can consistently drives strong demand for our brands. Establishing the groundwork for future global expansion. Pedal and Pub or other women's brands appeals to females in their 20s and 30s, with its stylish feminine designs that make fashion accessible and empowering for life's biggest moments. Building on its digital foundations, Petal and Pop results are strategically expanding into new channels, brand awareness while achieving strong performance across all partnership launches.

As we announced in January, Pedal and Pop had a very successful test across Nordstrom's website and half of their store fleet in 2024, and will now be featured in all Nordstrom stores later this month. Addition to its omni channel expansion, Petal and Pop continues driving customer engagement multi channel marketing strategies leveraging influencer partnerships, social media campaigns, in person events, and out of home advertising including high impact billboards. The brand is equally focused on strategically expanding its assortment highlighting key trends such as everyday basics, Elevated shoreprints and this season's trending colors. Pedal and Bob also continues to strengthen its exclusive style portfolio capturing additional share of wallet with its second wedding guest, modern romance collection which exceeded performance expectations and deeply resonated with customers during the collections debut last spring. I'm more confident than ever that Petal and Pop is well positioned to capitalize on significant untapped market potential. Shifting to our streetwear brands, we've made great progress over the last eighteen months optimizing Cotchy Kings operations across both and the results are very encouraging. We've added strategic hires in the beginning of twenty twenty five, including a new President of Australia, the Global Head of in house brands.

Brings valuable experience to both our U. S. And Australian operation team. Positioning Country Kings for long term growth and innovation. Culture Kings stands apart in the three way landscape by leading with its in house design apparel positioning the brand for sustained long term growth. Culture King's in house brands including sought after labels like Minimal, Loiter, Carre and Saint Morte consistently rank among top sellers both online and at the Las Vegas flagship store. To complete the three wear outfit and enhance its market credibility, we Kutcha Kings complements these in house brands with exclusive footwear, headwear and accessories from premium third party brands including industry titans like New Era, Mitchell and Nest and New Balance. In the back half of last year, Conjure Kings began narrowing its focus on their top in house and third party brands that really move the needle. This included shifting our in house brands to a test and repeat merchandising approach which creates more fashion newness and reduces inventory risk. Project Kings in house brand, Loiter, leading this merchandising transition showcasing the effectiveness of the model. In the fourth quarter, Reuter put up another quarter of triple digit revenue growth with gross profit dollars growing even faster year over year.

There is nothing quite like the immersive experience of the Culture Kings Las Vegas flagship store and we're actively looking for our next Culture Kings store location in The U. S. Which will be smaller than our Vegas store while retaining key immersive elements such as the half basketball court and half wall. Immersive store and retail payment atmosphere are core to the KJK's marketing strategy of creating unforgettable moments around product launches, in person experiences, and tenfold moments that resonate deeply with its customer base. Before I pass it to Kevin, I'd like to reiterate my thanks to our incredible team for delivering a great year. Portfolio consists of young brands still early in the growth trajectories substantial global potential ahead. I'm confident that we have the right strategic initiatives in place complete alignment across our teams drive another year of strong performance in 2025. With that, I'll turn it over to Kevin to walk you through the financials. Thanks, Kieran. Let me start by saying that I'm thrilled to take on the role of CFO at AKA Brands I look forward to working closely with all of you. As Kieran noted, prior to assuming the role of CFO, I was the company's Controller and have been deeply involved in the company's financials, since before our initial public offering.

Now let me dive deeper into our fourth quarter results give you our view on 2025. As Kiera noted, for the fourth quarter, net sales increased 6.8% to $159,000,000 and 6.7% on a constant currency basis This was driven by strength in our U. S. Business in which net sales increased 21.6% compared to the fourth quarter of last year. This was partially offset by a 9.6% sales decline in Australia and New Zealand as compared to the fourth quarter of twenty twenty three. And net sales in Rest Of World region declined 13.5% year over year. Early signs from Australia in 2025 are encouraging. And we expect the region to improve this year thanks to our teams extensive work in transitioning Culture Kings to a test and repeat model, while optimizing operational efficiencies across the region. Total orders for the fourth quarter were 2,040,000 increasing 3.6% as compared to the fourth quarter last year. Our trailing twelve month active customer by the end of the fourth quarter a robust 9.4% increase compared to a year ago. Our fourth quarter average order value was $78 increasing 2.6% compared to the fourth quarter last year. Turning now to our profitability metrics.

Gross margin was in line with our expectations and expanded four sixty basis points to 55.9% compared to 51.3% in the same period last year. The increase in gross margin was driven by a higher and we also received the benefit of lapping markdown actions that we took in Australia in the fourth quarter of twenty twenty three. Selling expenses were 44,600,000.0 compared to $42,300,000 in the fourth quarter of twenty twenty three. As a percentage of net sales, selling expenses were 28% compared to 28.4% a year ago. Marketing expenses in the quarter were 22,300,000.0 compared to $17,300,000 in the fourth quarter of twenty twenty three.

As a percentage of net sales, marketing expenses were 14% compared to 11.6% the fourth quarter of twenty twenty three. General and administrative expenses were $24,900,000 compared to $22,300,000 in the fourth quarter of twenty twenty three due to an increase in incentive compensation and non routine legal matters. As a percentage of net sales, G and A expenses increased to 15.7% from 15% in the fourth quarter of last year. We're pleased that we delivered adjusted EBITDA of $6,200,000 compared to $1,300,000 in the same period last year, ahead of expectations Adjusted EBITDA margin for the fourth quarter of twenty twenty four increased 300 basis points to 3.9% compared to 0.9% in the same period last year. Turning now to the balance sheet. We ended the quarter with $24,200,000 in cash and cash equivalents, compared to $21,900,000 at the end of the fourth quarter of twenty twenty three. And we ended the year with $111,700,000 of debt As a reminder, we significantly reduced our leverage by over a turn and a half over the past two years, and we're committed to bringing leverage down even [indiscernible] We ended the quarter with $95,800,000 in inventory, an increase of 5% compared to a year ago.

We are very pleased with our ability to effectively manage our inventory growth below our net sales growth demonstrating the benefits of the test and repeat merchandising approach. Looking at 2025, we feel good about the quality and composition of our inventory. And we are confident that we are well positioned as we head into our brand key spring and summer seasons. [indiscernible] We generated $7,000,000 in operating cash in the fourth quarter, compared to $15,000,000 in operating cash in the same period last year. A quick update on our stock buyback program. We continue to believe that our stock is undervalued And in the fourth quarter, we purchased 11,000 shares for a total cost of 243,000. As of the end of twenty twenty four, we have 1,300,000.0 remaining in our share repurchase authorization. [indiscernible] Looking ahead, as Kiran mentioned, we're encouraged by the momentum we're seeing and confident that our strategic initiatives will deliver solid top line growth and profitability over the near and long term. For the full year of 2025, we expect net sales of $600,000,000 to $610,000,000 representing growth in the range of 4% to 6% driven by double digit growth in The U. S, region and improving trends in the Australia and New Zealand region.

Which contemplates an approximate $10,000,000 FX headwind. Excluding the impact of FX, our 2025 net sales outlook would be growth in the range of 6% to 9%. We anticipate adjusted EBITDA to be between $27,500,000 and $29,500,000 representing growth in the range of 18% to 27% from last year. [indiscernible] Our adjusted EBITDA outlook contemplates all tariffs enacted to date inclusive of our actions to mitigate the impact. Our outlook also contemplates gross margin approximately flat to last year modest leverage in both selling and marketing expense and slight deleverage in G and A expense excluding stock compensation depreciation and amortization and non routine items due to modest headcount investments to support our channel expansion efforts. For modeling purposes, we are planning fiscal twenty twenty five Depreciation and amortization expense of roughly $18,000,000 to $20,000,000 interest and other expense of approximately $10,000,000 to $12,000,000 and effective tax rate of negative 40% and weighted average diluted share count of approximately $10,800,000 We expect fiscal twenty twenty five capital expenditures in the range of $12,000,000 to 14,000,000 primarily related to opening seven Princess Polly stores this year. [indiscernible] the first quarter of twenty twenty five, we expect net sales to be between $121,000,000 and $124,000,000 which contemplates an FX headwind of approximately $1,500,000 representing growth in the range of 4% to 6% and consistent with our annual outlook. [indiscernible] Adjusted EBITDA is expected to be in the range of $1,500,000 and 2,000,000 driven by sales growth and gross margin expansion as we lap the targeted inventory actions at the Culture Kings brand in the first half of last year.

We are expecting weighted average diluted shares of 10,700,000.0 in Q1 We In closing, we made great progress delivering on our key priorities in 2024, leading to strong top and bottom line results. We are well positioned to build on this momentum as we move into 2025 and I look forward to an exciting year ahead Now, we'll open it up for your questions. Thank you. We'll now be conducting a question and answer And our Please proceed with your question. Hey guys, thanks for taking my questions. First question for me, so it sounds like you were saying that The United States growth in the 2025 guide should be double digits. But just curious if you can comment on maybe what you're seeing outside of The U. S. That gives you confidence in a rebound there? Yes. Thanks, Ryan.

Look, I think overall, it's great to see the progress we're making. The U. S. Growth of 22% in Q4 is seen in the Australia region. I think we've seen improving comps at across the brands. And I think as we continue to bring more and more of Culture Kings own brands onto our test and repeat model Look, we know that model is so strong. We are seeing good good performance there. I think as we talked a little bit about in Q3, Lloyd's continues to be a standout there. We saw comps up over 100% in Q4. Across both regions for Loiter and gross margins up even further. I think as we continue to roll out that test and repeat model, we expect that performance to continue. And look, we have added more talent to the Culture Kings team. We have a new President up roamed in the region in that three way space and across stores and online. And we've also brought in Brad Lancaster to head up our as head of our first party brands. And really kind of seeing them already make an impact in the last couple of months and looking forward to what they can do there and just to help Culture Kings grow, not just in Australia, but really across all regions.

Okay, got it. And then just thinking about the potential impact tariffs here in The United States, maybe comment on your guys' ability to be able to take price and not have that come at the expense of volume or even maybe customer growth.

Yes. Thanks, Ryan. Look, I think our guidance does contemplate all that we've seen in tariffs at this at this point and we're happy to see that or EBITDA is going up even with the impacts of tariffs. I think we are primarily sourced out of China today. Our sourcing team is is actively working with vendors to mitigate the the impact of the tariffs we've seen to date. But look, I think we are uniquely positioned with the business model that we have to take price. And for for us, we think about that because we're pretty much exclusively online today. Although we are adding stores and wholesale. The product we have is exclusive to us. But also with our test and repeat model, right, as we're launching new products each week, we just have a unique opportunity to take price there. And I feel with the strength of our brands, we can do that. It's certainly not where we want to go first. We're actively working with our vendors, looking at moving sourcing to different locations. But we feel good about the guidance and feel good that we can offset the impact of tariffs.

Okay, got it. Thanks for taking my questions.

Thank you. And our next question comes from Ashley Owens Hi, good afternoon and thanks for taking the questions. I wanted to start on the gross margin guide. I'm just curious in the past you've discussed how strong margins have really been underscored by the Test and Read Pete model and we really saw that play out within the second half of the year. Could you just give us some perspective as to some of the puts and takes for that last gross margin guide this year and maybe the magnitude of impact from increasing wholesale penetration, tariffs and maybe just also some color on the shaping of the year would be helpful.

Yes. Thanks, Ashley, for the question. As Karen mentioned, earlier, we're really forecasting in our outlook that gross margin will be roughly flat to FY 2024. And there certainly are some puts and takes to that. As we've mentioned, that guidance embeds the impact of known tariffs as well as the actions we're taking to mitigate those tariffs. From a shaping perspective, we certainly will see towards the first half of the year, we're lapping some promotional actions taken in Australia in FY 'twenty four. We'll see some improvement there. As we go through the year, we'll see a shape that looks very similar to FY 'twenty four as we continue through Q4. Q4 is our more promotional period and we'll see gross margin is lower than Q2 and Q3. We do see we will see over time an impact of the growing wholesale initiatives upon our gross margin. In this year, it's not going to be a tremendous impact, but we feel confident with our outlook. Where we're heading for FY 2025.

Okay, great. And then I guess just second on that and just talking about the whole [indiscernible] channel for you guys.

Doing more in terms of expansion this year, but also adding in some of the poly stores as well. Could you just provide updated thoughts on the overall mix of the business and thoughts as to how big of a contributor wholesale could be or get to over the next couple of years? So I think more so in 2026 and beyond just based on what you just said. But any color there? Yes, sure. Thanks, Ashley.

Look, I think we're really happy with the progress we're making across all of brands and leaning into that strategy of putting our product wherever our customers are once it's brand enhancing and has the right economics. I think we've really seen that in The U. S. With that continued plus 20% growth in kind of the back half of 2024. Also with our active customer count up 9% year over year, just really strong engagement there. I think for us, doing that test in Nordstrom with Princes Polly and Petal and Pop in Q4 and seeing them move quickly to to wanting to bring both brands in house for springsummer across all of their chain. I would say, it gives us a lot of confidence wholesale opportunity and I suppose that we're seeing across wholesale stores and and online for all of the brands. I think we feel there's a huge opportunity there. I think as a mix of business, I think long term, we're always going to be predominantly online. But we feel we've just a big opportunity across our brands in all of the channels.

Great. I'll pass it along. Thank you.

Thank you. And our next question comes from Eric Beder with SCC Research. Please proceed with your question.

Good morning.

Excuse me, good afternoon.

Let's talk a little bit about Culture Kings.

It seems like you're making significant progress there. You mentioned in your remarks potentially about adding a store in The U. S. What would kind of be The performance or the markings you would see before you decide that would be something that you'd want to tell us through? And how should we be thinking about that?

Yes, sure, Eric. Look, I think we are we've continued to see great progress with Culture Kings in The U. S, right? From an online perspective, also in their Vegas store and continue to use marketing activations in the store to bring that brand to life online in that those unique retail payment aspects that that they have. I think all of that gives us confidence on the long term opportunity for Culture Kings in The U. S. I think as we've moved more and more of their first party brands onto the test and repeat model. We're also seeing improved sales comps, improved margin performance. And really just great customer reaction to the new product they're bringing in. So I think we're certainly bringing it bringing together all the pieces we need to continue going after that Culture Kings expansion opportunity. We are looking for store locations for Culture Kings We're working through what aspects of the Vegas store we will bring in. To that new location in The U. S. We would like to have one this year and we will share more on timing as we get clarity on the location.

Great. In terms of Princes Pauley and the store expansion, You're up to six coming to 13. What level of infrastructure do you need to build to make sure that the stores kind of maintain the quality control that you want them to have And how should we be thinking about the ability to leverage Afterline infrastructures and how the potential to leverage it going forward? Thank you.

Yes. Thanks, Eric. Look, we're really pleased with what we see so far on the Princes Poly stores. And as we think about that, around building that brand. We see 30% of the customers coming into the store are new to the brand. We've also seen very clearly now that there the stores are having a halo effect within the region of the store and we're kind of measuring that on about a 10 mile radius. And so all giving us a lot of confidence. I would say, look, the stores are new to Princess Polly and working through that. They have added some talent last year, but that is doing a great job of rolling out the new stores, operating them. I feel, look, we have high expectations for the brand. We have high expectations internally and we're continuing to the team are continuing to push themselves to do better, bring bring do better from a merchandising and a visual merchandising perspective in the store. We will add some talent we will continue to add some talent this year [indiscernible] pretty modest and all contemplated in our guidance. And look, I feel like there's just a lot of opportunity for Princes Fawley themselves across all their channels that they're in to continue to to build that brand.

Great. Good luck for 2021.

Thanks. Thank you. And as a reminder, And our next question comes from Randy Konik with Jefferies. Please proceed with your question.

Hey, thanks a lot. Sorry, I got on a little late here.

Just walk us through your thoughts on Just the environment right now, it seems like you guys are getting seems to be stable. Stabilization and trends and getting more visibility in the business. Maybe just walk us through that where we've come from over the last few quarters And then how you think about kind of the trends in your idiosyncratic trends in your business relative to the environment will super helpful as we think about the balance of 2025?

Yes, sure, Randy. And look, I'm I'm delighted with the work the team has done to kind of bring us through the journey and bring a lot more stability to what we have. And really, I think just keep demonstrating the opportunity that we have long term with all of these brands. If I think maybe regionally, I think we are seeing improvements in comp in Australia, I think as I talked about a lot of that coming from moving Culture Kings on to that test and repeat from merchandising model. I think we feel very confident that we would continue to see improvements there coming from moving them onto that test or repeat model, but also the talent that we've brought in and the opportunity that they can go our after there. And so feeling good in the progress that we are making there.

I think, look, the standout for us continues to be The U. S, right?

Overall growth of 17% last year coupled with 9% growth in inactive customers. As Kevin talked about, margins up, EBITDA margins up significantly year over year. And I think really showing, I think, the power of this model and the strength and opportunity we have across these brands. Think for us, it's been I would say Q1 we certainly saw a suppose, a distracted consumer in that January period and a combination of the fires, weather TikTok distraction as well. I think we are seeing improvements in comp as we've gone through the quarter. I think particularly at Poly that and Petal that springsummer products has really kicked in. In. We feel really good about the inventory and the newness that we're bringing in. And for poly there, white dresses is kicked off in a big way, a little bit later than last year, but becoming strong. And for Petal, just doing a really nice job with the newness that they have across prints, some of the elevated florals and from a color perspective, [indiscernible] performing really strongly for them. So look, I think we feel really good about the opportunity. We feel we've got a a unique model here that allows us to operate differently and just gives us a great long term opportunity.

Very helpful. Last question. I saw the announcement about the Princess stores, Princess Polly stores in 2025. Can you give us your Thoughts on like a a broader long term vision on how you think about different channels of distribution now that you're building more of a stores business, you have done some stuff in wholesale, and obviously the DTC [indiscernible] Maybe give us your thoughts on how your vision let's say, three to five years away on how you kind of think about the different channels and how they should kind of [indiscernible] Yes. Thanks, Randy. Look, I think again, it's a huge opportunity. I think the tests we've done across the brands have been been really informative for us. And I think it's fantastic success that each of the brands have seen in the different channels. And as we think about it, it's very much back to that strategy, right? Are we putting our products in front of customers where they are?

Brand enhancing from a customer a brand building perspective and also does it have the right economics for us. I think they're really the choices we'll make. I think as we think about the different channels, our online business is uniquely positioned with our test and repeat model to bring in newness every week. That's core to what we do. It's core to the brands. It's really what our customers want. I think that's something we want to bring to life in our own stores. And we are working to to do that. That newness every week really works for us. I think with wholesale partners, that's a little bit more difficult. And but still great places to just show off great product, put it in front of new customers. And look, we're seeing that success in what we're doing at Nordstrom and some of our other wholesale partners. So So I think we've continued to lean into those three areas.

And I feel like we'll make sure I think long term, we'll predominantly be direct to consumer business, but I feel there's big meaningful opportunities for us with our own stores and from a wholesale Great. And I look forward to seeing you a couple of weeks at the Princess store.

Yes, we invite you all to come there. It's a superstore and we're delighted to open it up in New York next week. Thank you.

There are no further questions at this time. That also does conclude today's teleconference. Thank you for your participation. You may disconnect your lines at this time.