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Good afternoon, ladies and gentlemen, and welcome to Zoo Med Inc. 4th Quarter Fiscal 2025 Earnings Conference Call. At this time, all participants are in the listen-only mode. We will conduct a question-and-answer session towards the end of this conference. Before we begin, I'd like to remind everyone of the company's Safe Harbor language. Today's conference call includes comments concerning Zoo Med, Inc., business outlook, and contains forward-looking statements. These following statements and all other statements that may be made on this call are not based on historical facts or subject to risk and uncertainties. Actual results may differ materially. Additional information concerning a number of factors that could cause actual results to differ materally from the information that will be discussed is available in the domain's filings with the SEC. At this time, I would like to turn the call over to Rick Brooks, Chief Executive Officer. you may begin hello and thank you everyone for joining us on today's call with me today is chris work our chief financial officer i'll begin with remarks about our fourth quarter performance and the successful holiday season we just completed before reflecting on our strong full year 2025 results and discussing our strategic priorities chris will then take you through the financials and our outlook for fiscal 2026. After that, we'll open the call to your questions. We're pleased with our fourth quarter results, which capped off a second consecutive year of important progress for Zoomies. Two important results were highlighted by robust full-price selling in North America during the important holiday season, which fueled mid-single digit comparable sales growth in the region and meaningful growth, margin expansion. In addition, the work we've done focused on assortment and full-price selling in our European business drove 660 basis points of year-over-year product margin improvement. This, coupled with disciplined expense management, resulted in 380 basis points on operating margin growth, despite sales being down high single digits year-ever-year in local currency for the quarter. Our performance in both regions reflects the continued effectiveness of our full-priced selling and cost-saving strategies, even as we faced regional headwinds. From a category perspective, men's led our pods of comparable sales growth during the holiday period, followed by women's, accessories, and hard goods. This broad-based strength across multiple categories validates our merchandising approach and the investments we've made in product newness and private-level expansion throughout the year. Reflecting on fiscal 2025, we took important steps towards returning to historical levels of sales and earnings. Our merchandise assortments and customer experience initiatives generate positive content every quarter, ranging from low single digits to high single digits, and a 4.3% comparable sales scheme for the year, on top of a 4% increase in 2024. Our North American businesses demonstrate consistent momentum, registering eight consecutive quarters of comparable sales growth. Our strategic shift in Europe, implemented just one year ago, gained momentum as we moved through the year. This consists of bringing newness, strong inventory management, full-price selling, and expense management that we believe will drive the business to better results in the near term. The combined impact of our initiatives helped to improve full-year earnings per share to $0.78 from a loss of $0,09 last year. These results validate the strategic initiatives we've been executing and position us well for continued success in 2026. As we look ahead, we remain focused on the same three strategic priorities that have driven our success throughout 2025. First, driving revenue growth through consumer-focused strategic initiatives. Our commitment to refreshing our product mix with innovative, distinctive offerings has proven to be a cornerstone of our success. In 2025, we launched over 150 new and emerging brands across our banners, and this newness continues to generate exceptional customer response. Private-level penetration reached its highest level in company history in 2025, at approximately 30% of sales, up from 12% five years ago. This sustained expansion demonstrates our organization's ability to identify emerging trends and create compelling products that resonate with our customers, while simultaneously enhancing our margin profile. Our investments in delivering exceptional customer experience across both physical and digital touchpoints continue to yield strong results. Enhanced staff development programs and technological capabilities we've implemented allow us to engage with customers where they want, when they want and in more personalized ways, strengthening the relations we have that have long served as another cornerstone of our success. Second, sustaining our rigorous commitment to profitability optimization across our geographic footprint. Within North America, our premium pricing strategies continue to support both margin expansion and market share growth, while the operational improvements we've executed throughout 2025 are keeping sales growth well ahead of our expense growth. Our continued focus in this area has established a more efficient and profitable framework that positions the business for a strong flow throughout incremental sales to fuel operating margin gains. Regarding our international operations, while Europe continues to face challenging market conditions, our disciplined approach to new assortments, full-price selling, and expense management is starting to show results. The significant product margin improvements we achieved in the fourth quarter and full year demonstrate the effectiveness of our strategy, and we remain committed to our long-term vision for the countries in which we operate. We continue to see tremendous value in our ability to identify trends locally in each market before they expand internationally. Third, cap lays on our solid financial foundation to manage volatility by funding strategic expansion. Our financial position remains exceptionally strong, providing us with the flexibility to continue investing in our strategic objectives while delivering value to shareholders. This financial stability enables us to navigate ongoing uncertainties in the macro environment by simultaneously positioning the company for long-term growth and continued market share gains. Despite operating in an environment characterized by economic volatility and evolving global dynamics, I am increasingly confident in our ability to generate value for all of our stakeholders. The fundamental strategies that have powered our performance throughout 2025 continue to demonstrate their relevance, and our team's proven adaptability and execution capabilities fuel my optimism about our trajectory into fiscal 2026. Our direction remains clear and consistent. Maintain our dedication delivering distinctive fashion-forward merchandise through the customer connection strategies that have driven our growth, while preserving the operational discipline that has strengthened our financial performance. We've demonstrated our resilience and ability to execute through various market cycles, and I'm confident we're strategically positioned to continue building on this momentum. turning things over to chris i want to express my appreciation to our entire organization for the continued commitment and exceptional execution throughout 2025. their dedication to our values and our customers remains the foundation for all of our achievements that positions us well for continued success in the year ahead for that let me hand things over to chriss for our financial review thanks rick and good afternoon everyone i'm going to start start with a review of our fourth quarter and full year 2025 results. I'll then provide an update on our first quarter to date sales trends before providing some perspective on the full year. Net sales to the fourth quarter of 2025 increased 4.4% to $291.3 million, compared to $279.2 million in the fourth corner of 2024. Comparable sales were up 2.2% for the quarter. As Rick mentioned, the primary driver was our North America business, which showed outside strength, even as macroeconomic uncertainty spurred by global trade policy continues. For the fourth quarter, North America net sales were $224.4 million, an increase of 4.8% from 2024. Other international net sales, which consist of Europe and Australia, were $66.9 million, up 3% from last year. Excluding the impact of foreign currency translation, North American net sales increased 4.6%, and other international net cells decreased 7.1% year over year. Comparable sales for North America were up 5.5%, marking the eighth consecutive quarter of comparable sales growth in this region. Other international comparable sales declined 7.5% in the fourth quarter. From a category perspective, men's was our largest positive comping category, followed by women's, accessories, and hard goods. Footwear was our only negative comping Category. The consolidated increase in comparable sales was driven by an increase in dollars per transaction, partially offset by a decrease in transactions. Dollars per transaction were up for the quarter, driven by an increase in average unit retail and an increase in units per transaction. Fourth quarter gross profit was $111.4 million, compared to $101 million in the fourth quarter of last year. Gross margin was 38.2% of sales for the quarter, compared with 36.2%. The 200 basis point increase in gross margin was primarily driven by 180 basis points of improvement in product margin and 50 basis points of leverage and store occupancy costs on higher sales than the closure of underperforming stores. These benefits were partially offset by 20 basis points related to increased incentive costs on improved results. SG&A expense in the fourth quarter of 2025 was $86.4 million, or 29.6% of net sales, compared with $80.9 million, which was 29% of net sales in 2024. The 60 basis points improvement in SG&As expenses as a percentage of net sales was driven by 100 basis points of increased incentive costs on improved results and 20 basis points related to corporate wage costs. These cost increases were partially offset by 50 basis points of leverage in store wages related to increased sales and hours management and 20 basis points to leverage in other store operating costs. Operating income in the fourth quarter was $25 million or 8.6% of net sales compared to prior year operating income of $20.1 million or 7.2 percent of net sales. Net income for the fourth quarter was $19.6 million or $1.16 per share. In the year-ago period, we reported net income of $14.8 million or 78 cents per share. Our expected tax rate for the current quarter was 26.3 percent versus 26.1 percent a year ago. Looking at our full-year results, net sales for fiscal 2025 were $929.1 million, dollars an increase of 4.5 percent from 889.2 million dollars for 2024. comparable sales for the full year were up 4.3 percent a consolidated increase in comparable sales was driven by an increase in dollars per transaction partially upset by a decrease in transactions dollars for transaction were up for the quarter driven by the increase in average unit retail and an increase in units per transaction from a category perspective for the full-year women's was our largest positive comping category, followed by men's, hard goods, and accessories. Faux wear was our only negative comping category. From a regional perspective, North American net sales were $757 million, an increase of 5.1% from 2024. Other international net sales were $172 million, up 1.7% from last year. Excluding the impact of foreign currency translation, North American net sales increased 5.2%, and other international net sales decreased 4.2 percent compared to 2024. Comparable sales for North America were up 6.7 percent and comparable sales for international were down 5.4 percent for the full year. 2025 gross margin was 35.8 percent of sales compared to 34.1 percent in 2024. The 170 basis point increase was primarily driven by 90 basis points of product of the improvement of product margin and 70 basis points of leverage and store occupancy costs on higher sales and the closure of underperforming stores sgna expense of 315.5 million dollars or 34 percent of net sales for fiscal 2025 compared with 301.1 million dollars for 33.9 net sales in 2024. the 10 basis point increases the percentage net sales is driven by 50 basis points that increase incentive costs on improved results and 40 basis points related to wage and hour of litigation settlements in in California. These benefits were partially upset by 60 basis points of leverage in non-wage store operating costs and 30 basis points to leverage in store wages on increased sales and hours management. Fiscal 2025 operating income was $17 million, or 1.8% in net sales, compared to operating income of $2 million, for 0.2% net sales in the prior year. Net income in fiscal 2025 was $13.4 million, or $0.78 per share, compared to a net loss of $1.7 million, or $ 0.09 per share in the prior year. Fiscal 2025 was negatively impacted by approximately $0,15 per diluted share related to a wage and hour litigation settlement in California. During the balance sheet, the business ended the year in a strong financial position. We had cash incurred in marketable securities of $160.6 million as of January 31st, 2026, up from $147.6 billion as of February 1st, 2025. The increase in cash incurring marketable security over the last year was primarily driven by cash flow from operations of $53.5 million, a $2.9 million benefit from foreign currency fluctuations, and the release of $2,700,000 in restricted cash. Partially offset by common stock repurchases of $38.3 million and capital expenditures of $11.1 million. As of January 31, 2026, we have no debt on the balance sheet and continue to maintain our full unused credit facility. The company repurchased 2.7 million shares during fiscal 2025 at an average cost of $14.18 per share and a total cost of $38,3 million. dollars on march 11 2026 the board of directors approved the repurchase of up to an aggregate of 40 million dollars of common stock the repurge program is expected to continue through january 29 2028 unless the time period is extended or shortened by the board directors this repurchased program supersedes the prior authorized approval approved on board of director's on june 4 2025 that was set to expire on june 30th 2026. we ended the year with 147 million dollars in inventory compared to 146.6 million last year growth of 0.2 percent year over year on a constant currency basis our inventory levels were down 3.8 percent from last year we feel good about our current inventory position now to our first quarter of the day's results total sales for the four-week fiscal period into February 28, 2026, increased 9.8% compared to the four-week fiscal period into March 1, 2025. Comparable sales over the same period increased 7.5%. From a regional perspective, North America net sales for the four week period into Feb 28,2026 increased 5.6% over the four weeks period into March first, 2025, while our other international business increased 27.6%. Excluding the impact of foreign currency translation, North American net sales increased 5.3%, and other international net sales decreased 12% compared with 2025. Comparable sales for our North America business increased 6% for the four-week period ended February 28, 2026, compared to the same weeks in the prior year, while comparable sales in our other international business increased 13.2 percent from a category perspective according to date hard goods is our largest positive company category followed by men's women's and accessories footwear was our only negative company category the consolidated increase in comparable sales was driven by an increase in dollars per transaction partially upset by a decrease in transactions dollars per transaction were up for the quarter driven by the increase in average unit retail and an increase in units per transaction with respect to our outlook for the first quarter of fiscal 2026 i want to remind everyone that formerly our guidance involves some inherent uncertainty and complexity in estimating sales product margin and earnings growth given the variety of internal and external factors that impact our performance our comparable sales results in early fiscal 20 26 have maintained positive momentum and we are are cautiously optimistic that we'll continue to deliver top and bottom line improvements in the first quarter assuming no significant economic impact on the business from the current global conflicts or tariff changes for the first quarter we are anticipating total sales to be between 189 million dollars and 193 million dollars for the 13 weeks ending may 2nd 2026 representing growth of three percent to five percent comparable sales for the same time period are expected to be between two percent and four percent consolidated operating loss for the the first quarter is expected to be between negative $15.6 million and negative $17.8 million compared to a loss of $19.9 million in the prior year. Included in this reduction of our operating loss is continued product margin expansion in North America and Europe, as well as the benefit related to a $2.9 billion one-time wage and hour litigation settlement incurred in the first quarter of 2025. This is an improvement of between 140 to 270 basis points as a percentage of sales. We expect this improvement to be driven by 130 to 200 basis points of gross margin expansion and 10 to 70 basis points at SG&A leverage. Before providing our first quarter EPS guidance, I'd like to point out that our loss per share comparison to the prior year is negatively impacted by favorable foreign exchange valuation and interest income items in the first quarter of 2025, this did not repeat in the first quarter of 2026. Also, due to share buybacks in fiscal 2025, we have reduced our basic shares outstanding by approximately 10%, negatively impacting our loss per share guidance by an additional 7 cents per share. With that, we anticipate that our loss per share will be between negative 77 cents and negative 87 cents compared to a loss of negative 79 cents in the prior year as we consider the outlook for the full fiscal year 2026 with seven consecutive quarters of positive comparable sales behind us and momentum into the new year we are confident in our strategy and execution however caution is warranted given the ongoing volatility in the macro environment we will refrain from giving specific annual guidance but will provide some context around how we see the business trending throughout the year Top-line strength continues in North America, and we have lapped the promotional period in our European business last year, but along with a difficult snow season contributed to the fourth-quarter sales decline in the region. Both North America and Europe are trending positive in the first quarter to date. With relative stability in the macro environment, we believe we can grow total sales in the low single digits for the year, inclusive of the negative impact of closed stores worth approximately $12 million in sales. From a product margin perspective, 2025 was at a high point, excluding the stimulus-driven 2021 results. We believe that we will continue to grow our product margin year-over-year in 2026 through steady improvements in North America and continued pricing discipline in our international entities. We believethat our private label business will continueto grow, helping drive the overall results, including potential tariff benefits should the current situation hold throughout the year. In addition to product margin growth, we believe further leverage exists in our occupancy costs and other components that will drive gross margin expansion. With sales growth discussed, we would anticipate leverage of our SG&A costs further contributing to operating margin expansion With the previously mentioned assumptions, we anticipate operating margin growth in the 50 to 100 basis point range in fiscal 2026. While effective tax rates will fluctuate by quarter, we anticipate that our full-year effective tax rate will be roughly 35% to 40% in fiscal 26, compared to an effective tax ratio of 44.4% in 2025. We are planning to open five new stores in 2026, all within the U.S. This compares to six total stores opened in 2025 and seven stores in 2024. We plan to close approximately 25 stores during fiscal 2026, including 20 in North America and five internationally, and we'll close 17 stores during the fiscal of 2025. We expect our capital expenditures for 2026 to be between $14 million and $16 million, compared to $11.1 million in fiscal 2025 and $15 million in 2024. We expect that depreciation and amortization, including non-cash lease expense, will be approximately 18.9 million dollars down from 21.3 million dollars in 2025 we are currently projecting our diluted share account for the full year to be approximately 17.1 million shares this share account does not include the impact of any future shared share repurchases including those under the repurchase agreement announced today and with that operator would like to open the call up for question. Thank you. Ladies and gentlemen, to ask the question, please press star 11 on your telephone, then wait for your name to be announced. To withdraw your question, please press start 11 again. Please stand by while we compile the Q&A roster. Our first question comes from the line of Mitch Comet with Seaport. Your line is open. uh yes thanks for taking my questions um let me begin with europe i just want to better understand what's going on there um you know in the in in the fourth quarter other international was i think it was a negative seven five comp and i know that you guys shifted your focus to more full price selling in the quarter and now i think chris you said you're running up a 13-2 quarter to date for other international so did something change in terms of the full price selling focus or was it just not were you not lapping uh that issue in in like quarter to date um you know what help me understand why why we're seeing such a big swing in the comp performance from fourth quarter to q1 to date and other international i assume it's europe that's that's driving that yeah yeah thanks mitch and and you are right here sometimes this is europe just driving it and i think as you know mitch following as closely as you have i mean uh we started this kind of change in strategy and in late 2024 uh really trying to kind of reimagine what was happening in europe as we were growing at quite a cliff uh but not getting to where we wanted to be from a profitability and cash flow perspective so our our determination at that time is really to slow growth and focus on growing the core business and driving to profitability and cash flow. As you know, things don't move as quickly as you like sometimes, but the team put a plan together. It included some change of people within the entity, and that took some time to kind of gain traction. So as we moved across 2025, we saw that business shrink from about $135 million to just under 135 million euros, I should say. You know, this included across 2025 product margin growth of 250 basis points with Q4 of 660 basis points. A big win for us as we really reimagined the product portfolio and how we were buying inventory was even though, you know, sales were down pretty meaningfully in Q4, high single digits, we still saw $1.8 million of operating profit growth on the back of really strong full-price selling and expense control. And this is really despite a pretty soft winter overall for Q4. So also really focused on inventory management, more relevant products. And I think it put us in a spot to start 2026 just in a way better position than we were a year earlier. As you mentioned, you know, we have just under 90 stores now operating in nine countries. 2026 is off to a really strong start. The 13.2% international comp is really all driven by Europe. You know, We're not immune to the macro forces here, but we are just really laser focused on operating profit and cash flow. And that, you know, includes really trying to drive a high concentration of sales out of our existing units and online where possible, rationalizing the business. So it's really most core tasks around just how do we bring great product into the business and serve the customer, improving product margin, you know managing and reducing expenses where possible and just laser focused on inventory levels so i think all of that has really led to what we see now is really four months in a row of much better results but we have a long way to go so we're encouraged by what we've seen over the last four months but um like i said there's still a lot of work to be done and hopefully we've laid a good framework for that to be down in 2026. i think you know at the end of the day uh we continue to believe that you know this international growth is a positive thing for us, and it really is our best way to serve our customers, which exist all around the world, and our brands, and how we bring brands around the world, and then just as importantly, how we identify trends, because trends do emerge locally and grow globally, and if we are in more locations, it allows us to see those trends and help them move around the world. So we're definitely encouraged with the last four months in February for sure, And we're hoping to build some continued momentum into 2026. And then as far as the comp guide for the quarter, I think you said a two-to-four comp. Quarter to date, you're running a plus 7.5. I know February is a fairly small month. But why are you anticipating, you know, worse comp performance over the balance of the quarter? And then maybe as you address that question, can you also maybe speak to what you're seeing in terms of like tax refunds so far? And then how are you thinking about higher gas prices potentially impacting your consumers? Yeah, all good questions. Let me start with kind of the guide, but I think these are going to sort of blend together. Obviously, we had a great February, really, across the business. International, we just spoke about. But North America was very strong, too, up six comps across the four weeks of February. I'll tell you, as we started to see the global conflict unfold, we did see some softness in week five and have kind of guided the business into what we saw as a slowdown. And from where we were in February, and so while still positive, we just saw some softness in the business, and that's how we planned the quarter to come out. Now, whether that's tied to rising fuel prices and a little bit of uncertainty in the macro environment, I think that's to be determined, and we just need more time to figure it out. But in relation to putting the guide together and how we saw our comp guide, this is really about kind of looking at what's our current run rate sort of post-February and drawing that out across the rest of the quarter. All right. That's helpful. Thanks. Thank you. Our next question comes from the line of Richard Magnuson with B. Rowley. Your line is open. All right, thank you for taking our call. So, first off, it looks like your private label penetration was strong in Q4 at probably around 30%, but during the holiday season, did you notice any change in certain categories regarding the performance of private label versus, you know, the branded products, or was it pretty much the same trends in different categories that you saw throughout the year? i'll i'll start richard and then chris can add in but give you some context but i don't think we saw any major changes there are certain certain categories business that are really really really dominated by our by our private level our own brands and so sometimes it's hard to compare the branded portfolio versus our private label brands um and um so yeah i think as each of them a target a bit different segment of our business and so I don't think that would call out any significant trend direction changes from a private label predictive that I can think of in terms of the category performance for the for the brands that they performed well and but we also had some new brands that have performed really well too on the branded side so I think it's a combination of both and the new brands tend to be more focused on the t-shirts and fleas and hats and the more screenable portion of the business so i think your private level is more dominated by the so as compartments within the business so they're kind of a bit separated in that sense um but both have i think have done well okay and then um my last second question is uh easter's looks like just over three weeks away Nate, what can you tell us about your expectations of timing regarding your spring assortments and any of the observed consumer preferences and the impact of recent weather in different parts of the U.S. and the cadence of promo around Easter weekend? Sure. I'll kind of take a crack at it. This kind of falls into our planning arena and let Rick talk. Obviously, Easter has pulled up, uh so we are have kind of started our um uh putting our product out in a way that will take advantage of that obviously and planning the business uh to have a little higher bump in the the middle part of the quarter versus a little bit later in the quarter so uh we're certainly planning on that you know richard from a promotional perspective this is just not really our game um we try to stay really full price and full margin i think you see that within our our product margin results here across 2025 and really the last few years is we've really been able to grow product margin and that's not just our private label business. That's our branded business as well, really working with our partners to refine this. So I don't see anything specific there. We do have a variety of what I will call sort of, you know, spring season initiatives that as you would imagine would play into the gift giving that happens around Easter, but also just into what you would expect from the seasonal floor set. So I'm not going to go into those in detail either. That's kind of part of our product and secret sauce. But, you know, we're always trying to bring new in. I think that's what the customer wants. That what we're really happy we've been able to provide within private label. And, you know what, kind of add on to your last question, too, of what we'll be able to do in our branded portfolio. I mean, our branded, our top 20 brands really continue to gain traction this year is a percent of the total business, which we view as a good thing. I mean, we go through these cycles where, you know, our biggest brands will kind of ebb and flow, and sometimes they disaggregate, and we bring on a lot of new brands, and other times they aggregate, and hopefully that leads to, you know, really strong results as they grow in breadth and depth, right? So, I think all those things are playing into the business. You see it really across all of our categories, whether we're talking about Q4 or whether we're talking about february we're up with the exception of footwear footwear continues to be the one area of challenge for us but um that's our model uh so we're we're really excited to be running a total comp and obviously running a big portion of the business positive thank you thank you as a reminder ladies and gentlemen that's star one one to ask the question Please stand by for our next question. Our next question comes from the line of Marcus Belanger with Wimbledon. Your line is open. Hi, you guys got me? We got you. Awesome, awesome. I'm on for Dylan Cardin. Just wanted to ask a follow-up to an earlier question about international. Obviously, you've seen a lot of volatility in that area. Can you tell me what you guys are doing to stabilize the area and have greater visibility into future growth? And then I have a follow-up. Yeah, I'll kind of add on to my earlier comment and let Rick jump in if he has anything to add. I mean, I think like all of our business, it really does start with product. So as we thought about reimagining the business at the end of 24, you know, part of it was slowing growth just to make sure the focus was really laser focused. But it was about looking at products and saying, how do we see trends, see where that customer's at, see who that customer is, and bring it to them in a way that they will adapt to and they'll be excited about. And of course, we can sell it at full price. So this was really about rethinking that, really starting to look at our assortments and who we are carrying and how we are caring them and what they were saying to the customer and starting to push that into the business in a different way than we've been doing. Obviously, as you can imagine, that takes time when you buy seasons ahead of time. So, you know, for us, we knew in the turnover at the end of late 2024 that it would be sort of a, you know, back-to-school holiday time period where we start to see this take shape. And we were pretty encouraged by some of the early areas we reimagined in bet and what those meant going into Q4. And then, you know, some of those same items that we were dropping even late into Q4 that we're, you Know, driving into the 2026. So it's really about product. I mean, there's a huge part of execution beyond that of, you Now, your store environment and the people in stores and how they bring the product to life. We continue to invest in that we continue to invest in our teams there, just like we do here in North America. I Mean, this is really about driving a human-to-human relationship, right, and how you connect with your customer and how you talk with them. And so that's been part of what we've driven as well, and we think, you know, when you have the right product and you can bring it to them in a way that you really connect with them, I think that drives a different experience and hopefully one that brings that customer back again and again. Can I just add that, again, just for context, I think we have looked deeply at every area of our business in Europe, and as Chris said earlier, that we we've made some personnel changes in terms of some of the leadership in europe and how we're leading particularly in some really key areas and we we're just giving no stir no stone unturned as we revisit every aspect of what we're doing and again i really encourage this as chris laid out with the q4 report so i just highlight again that that was against a very one of our worst snow years ever in europe that we have a very dominant position in the snow retailing business in Europe. So despite the difficult snow year, we still were able to improve the bottom line results by a pretty good amount. So we're really encouraged. I think we're heading the right way. But as Chris said, we have a long ways to go and a lot of work to do and more work to come. And we're very, very focused on making sure that we are continuing to improve these assortments, bring newness into the business, make sure that we're delivering great experience for customers and commercializing our offering as we think about delivering to customers across all channels. Thank you. Thank you for stores. Where are you guys in terms of how many more years maybe do you guys think about closing stores? And then for the new stores that you are opening for this year, it looks like you're going to open up five. How are, you know, over the last couple of years, how have those new stores been performing? Are they at a higher, you Know, mature? Do you think that they're going hit a higher sales per store maturity curve than your other stores? Just any comments on basic productivity for the first year or two years for your new stores? Thank you. Yeah, sure. And let me, you know, I'll talk about new stores real quickly, and then we can talk about closures. I think, you Know, this is really, I would say post pandemic, you've seen our store closed, our store openings slow from historical levels, which we kind of knew was going to be part of it. obviously with North America more built out and international being our area of further growth over the last few years, as we've talked about here on the call today, we have slowed international just from a standpoint of really focusing on profitability and cash flow. So the store opening cadence is much less. I think when you think about opening approximately five stores a year in North America, the last few classes of stores. It's been really good. We've been able to be selective in where we're opening and really try to fill markets or fill opportunities we've wanted to get into for a long time. There's still a fair amount of good assets in the country that we want to get in. We just have to find that right fit, that right location within the mall, that's the right economics that makes sense for us to be able to invest in. I'm quite happy with how the real estate team and our store operations team has performed here in the last few years in our openings and, you know, each class having, you know, more winners than tougher situations. So that's a really good thing. From a closure perspective, you know, we started moving more significantly in closing stores in 2023, and then in 2024, a few more, and last year was around 17. We are forecasting we'll be ahead of that 17 number this year. Although, I'll tell you, these are forecasts. You're not quite sure what's going to happen in those markets and how malls will move or economics can change. But we are expecting to close approximately 20 stores in North America and five internationally. And our closure process is, as you would expect, it's a diligent process, right? It's looking at each trade area we're in, each market we're In. Are there underperformers? are there opportunities for consolidation, and trying to figure out where those opportunities are. I mean, we look at everything from sales and profitability, what the store's impact on that trade area is in regards to how it helps fulfill product and, you know, even kind of leverage with the A centers in the market. Obviously, the conditions of the centers, who the landlords are, how they're investing in the center. You know, we try to really manage the peak performance. Um, you know, and if that, uh, peak performance was 10 plus years ago, sometimes it speaks to where that center is, is headed. Right. And, uh. And then obviously we try to do whatever we can around store economics before we, we walk away. But, you Know, all those things combined, uh it's about sales growth. And I think that's why when we talk about 2026, we talked about growing sales in the low single digits, despite, you know closing some stores that are about 12 million dollars impact so um at the end of the day i mean we're really just trying to consolidate we've given ourselves a challenge for quite some time but you know we don't want to have one more store than we need in any given trade area right that's just extra capital inventory you've got tied up so uh we're Really trying to be intentional about it internationally this will be a few more closures than we've had historically uh in 2026 is expected and that's really just kind of um i'll say trimming that portfolio as well right we're trying to look at stores and say okay these ones are definitely working they're great locations there's a maybe mid-class that is uh that we're that we'RE happy with but we think we can still do better and there's uh there's the third class that's kind of the lower class of stores that we are like all right we really have to make movement here or we will see consolidation and and that where we're kind of at at this point is kind of going okay some of these are not making the traction we need and and their closures to make the overall business better i just added that again with a little bit longer context as chris said 10 15 years out what we're seeing in the u.s is actually finally the end of i think the final leg on a bunch of of small locations at the lower end c and d volume locations where we had traditionally they will make some money but now they've just got to the point where they're just not working anymore but the important point in this is that, as you saw in the results in 24 and 25 when we closed units, total sales grew in North America. So what we're really talking about is how customer behavior has changed and moved to different centers within the trade areas. And I think this is kind of a long-term tale of playing out of better malls are winning and the muster malls are finally really losing to the point of closure. And we're often one of the last retailers leave in some of these centers. But it's not about, per se, sales declining. It's about how customers are moving to the better retail experiences and the stronger and better malls. Thank you. Thank You. Ladies and gentlemen, I'm showing no further questions in the queue. I would now like to turn the call back to Rick for closing remarks. All right. Thank you again for all of your questions today. And we always appreciate your great interest in what we're doing and the progress we're making towards building back towards our historical profitability levels. And as I said earlier, I really want to thank everyone on our team and our partners and our brand partners for the support as we really drive better results. So much appreciated from everybody. And we'll talk to you again in June. Thank you. Ladies and gentlemen, that concludes today's conference call. Thank you for your participation. You may now disconnect.