Q1 2022 MYT Netherlands Parent BV Earnings Call

Greetings and welcome to the Mitel yourself first quarter fiscal 2022 earnings conference call.

At this time all participants are in a listen only mode.

Today's call is being recorded and we have allowed that one hour for prepared remarks and Q&A.

It is now my pleasure to introduce your host me.

Starting my marketing beer my duties as Chief Financial Officer.

Sir please begin.

Thank you operator, and welcome everyone to mitral results Investor Conference call. The first quarter of fiscal year 2022.

With me today is our CEO Mike later.

Before we begin we'd like to remind you that our discussions today will include forward looking statements any comments, we make about expectations are forward looking statements and are subject to risks and uncertainties, including the risks and uncertainties described in our previous annual reports.

Many factors could cause actual results to differ materially.

We are in a no duty to update forward looking statements.

In addition, we will refer to certain financial measures not reported in accordance with IRS on this call.

You can find reconciliations of these non <unk> financial measures in our earnings press release, which is available on our Investor Relations website at investors thoughts mitral you start off the call.

I will now turn the call over to Michael.

Thank you welcome also from my side, a very warm welcome all of you and thank you for joining our call today.

We will today comment on the results and performance of all so that's cool to fiscal year 2022 weeks.

We are extremely pleased with our results and performance.

We believe they clearly show the fundamental strength and long term growth potential of our business.

As we hopefully the pandemic behind us.

First we delivered again excellent growth and consistent profitability, which is quite unique in our sector.

Second we have to deliver growth consistent with the recent quarters demonstrating our long term expansion is based on a fundamental change of consumer behavior that has maybe been accelerated by the pandemic that.

There's still a long runway.

But our superior business model and excellence in execution was again evidenced by many of our strong performance Kpis and business milestones, while other players continue to struggle.

Let me now comment in more details on these three key messages for today.

First in the first quarter, we grew our gross merchandise value GMB by 29, 7% compared to Q1 fiscal year 2021.

This was a bust our continued long term guidance of 22% to 25% annual GMB growth.

We combine this growth with a gross margin of 49.0% compared to 46, 4% in Q1 fiscal year 2021.

Driving continued strong profitability.

We believe that our sharp multi brand luxury customer focus strong brand partnerships and a focused profit making business model will allow us to continue scaling and delivering consistent profitability.

In our view this makes my Teresa quite unique in the sector.

Second our multi year growth potential as evidenced by the two year growth rate in <unk> of 65, 3% in the first quarter of fiscal year 2022.

Over Q1 of fiscal year 2020.

The last four quarters, we have delivered to your growth rates in net sales of 58, 4% in Q1.

64% in Q2.

66, 1% in Q3 and of 65% in Q4 fiscal year 2021 over the corresponding quarters in fiscal year 2019.

We believe the fundamental drivers for our growth are the changing consumer behavior and luxury shopping.

And our superior business model.

It is estimated by some consulting firms that over 30% of the personal luxury goods spend will be online by 2025.

While the shift of consumer demand to online in luxury has been accelerated by the pandemic. We clearly believe this trend will continue.

Probably at a lower pace in the post pandemic world, but it will continue.

Third we believe that we have delivered.

Again, many significant proof points over the last quarter of our superior business model and our excellence in execution.

As explained before.

Our business focuses on the highly curated multi brand offer attuned to the big spending wardrobe building customer segment, which provides us with the best customer base in luxury.

We have successfully expanded our LTM active customer base by 35, 2% year over year to 705000.

This was of course fueled by new customer growth and we were once more able to reduce our customer acquisition costs why the repurchase rate of new customer cohorts remain very stable.

In addition to new customers. We also again grew our top customer base, which is a key source of profitable growth.

Over proportionally by 41.0% in the first quarter compared to Q1 of his to give 2021.

Our best customers, we introduced a new resale service in Q4 of fiscal year 2021, together with SG, our colleague chief that not only allows us to support the circular economy, but we can also clearly see the positive spending impact of the additional funds that our cup.

<unk> can generate through simply reselling items to boost your colleague Keith and receiving immediate payment in the form of my Teresa store credits customers that have earned store credits through this service exhibit significant higher EOG in their next purchase.

One of the key attraction for our Woodford building customers is privileged access to exclusive products and prelaunch is through our outstanding brand partner relationships. We were again honored with outstanding support from our brand partners in Q1 of fiscal year 2022.

We launched exclusive collections and styles as well as executed prelaunch US was brands such as Sunday home Hoochie Roll Cisgender, Bhutan, Tom Ford Louie and many more.

Our top customers being invited to money can't buy experiences is a key benefit to the relationship was Mitra REIT.

The first quarter, we were finally able to organize such experiences and top customers events again around the world.

Highlights included dinner Shimon Ashish creative director in Paris at dinner at the state of the della bulb family owning tops.

The lunch at the private both for its state in the Hamptons and an event at the TRP Temple and Chengdu.

We also demonstrated again the first quarter of fiscal year 2022, the quality of our execution.

We maintained business continuity across all operations with a focus on health and well being of all my Teresa employees as the top priority.

This highly correlates with the very high customer satisfaction measured internally with our net promoter score of 83.0% in Q1 of fiscal year 2022 significantly up compared to Q1 of fiscal year 2021.

The health of our business was also demonstrated by the high full price share of our sales driving very robust gross margin.

Finally in the first quarter of fiscal year 2022, we also launched the curated platform model the first major Brian.

This model for selected brand partners is an evolution of our partnership approach. It gives brand partners full control over the inventory until it is sold by us to the <unk> customers.

But it is not a marketplace model.

We continue to curate the assortment under the CPA.

And the inventory is shipped from our warehouse.

There is no drop shipping under the CPA.

This ensures that we continue to achieve the high customer satisfaction, we enjoy today.

Our product curation and service excellence.

How about the CPM provides us with better access to highly desirable products and in season replenishment not.

<unk> not available to us today.

This will be greatly appreciated by our customers and provides us with top line ups.

With all of the above it should come as no surprise that we are very satisfied with our performance in the first quarter of fiscal year 2022, and have full confidence to continue achieving strong results in fiscal year 2020.

And now I hand over to Martin to discuss the financial results in detail.

Thank you Michael.

I will now review the financial results of the fiscal first quarter July to September 2021, and we will provide additional detail on some of the key topics previously mentioned.

Unless otherwise stated all numbers referred to euro.

As Michael highlighted we're very pleased with our performance during the first quarter above expectations, where we delivered strong gross merchandise value or <unk> and net sales growth due to robust new customer growth and strong <unk>.

Shifting customer cohort performance.

With our proven business model, we could scale significantly.

In the first quarter without any compromise on the quality of our profits.

<unk> during the quarter was $163 9 million.

A 29, 7% increase.

On the $26 4 million.

In the prior year quarter.

As you will recall, we made the decision to shift the focus of our topline reporting to GMB.

Gross merchandise value as an operating measure.

Which is fully in line with our strategy as it captures the total amount of merchandise that our customers.

<unk> on our platform.

And it shows the full depth of our customer relationships.

We also confirm our full fiscal year guidance of 22% to 25% GMB growth.

Customer engagement and retention continue to track wary, well as our active customers who shop with us in the last 12 months grew by 35, 2%.

705 stylists.

This underlines our absolute and successful focus on our customers.

My Teresa is uniquely positioned to attract new customers with the highest value and retain the best ones visible in our strong top customer growth.

During the first quarter net sales increased by $31 5 million or 24, 9% year over year.

$257 8 million.

This is in line with our strong GMB growth.

And the planned slow ramp up of the CPM business.

As planned.

For spring summer 'twenty, two and especially fall winter of 'twenty two.

Additional brands will shift from the wholesale model to the CPM.

With more clarity now on the greed season for the model switch.

We expect the CPM share for the full fiscal year 'twenty two.

We well below the 20% maximum share guidance.

For this reason we increased our net sales guidance for fiscal year 'twenty two.

To be in the range of 700 to 720 million Euro.

This equals a 14% to 18% net sales growth.

Compared to fiscal year 'twenty one.

We expect similar growth rates in fiscal year 'twenty three.

Due to selected brands shifting from the wholesale model to the CPM.

After which net sales will be growing again more in line with GMB yearly growth rates.

We were able to grow significantly and with double digits in all regions of the world.

The U S remains a top growth region with 49% net sales growth.

Impaired to the prior year quarter.

We continue to invest in growing our local team and increasing the number of marketing as well SPR events.

Our total orders.

Shipped in the last 12 months.

Increased by 35, 3% to over 1.5 dollars 8 million.

Gross profit of $77 3 million was an increase of $18 6 million or 31, 8% year.

Year over year.

The gross profit margin of 14, nine zero percent improved by 260 basis points compared to the prior year period, or 46, 4% driven by our continued higher level of full price sell through.

This continued strength in our gross profit margin.

Reflects the unique high end positioning of <unk> in the market.

With our focus on the high end customer.

Shipping and payment costs grew by $5 1 million to $20 million.

Driven by an increase in total order ships.

As a percentage of GMB.

Shipping and payment costs in this quarter.

Marginally increased to 12, 2% from 11, 7% in the prior year quarter.

Driven by country mix and a higher share of international sales.

During the first quarter marketing expenses increased to $22 4 million compared to $17 4 million.

Primarily due to the increase in the number of customers require.

As a percentage of <unk>.

Marketing expenses slightly decreased to 13, 7% from 13, 8% in the prior year period.

We were able to again increase performance marketing efficiencies.

But as desired.

We are now finally able to spend more on events and PR activations.

Selling general and administrative expenses grew by 26 million to $36 2 million.

Predominantly driven by onetime granted share based compensation expenses related to the IPO.

We adjusted our net effect of $15 5 million in relation to these one time granted share based compensation expenses.

As we do not consider them to be indicative of our core operating performance.

As they relate to the IPO transaction.

With this adjustment.

SG&A expenses as percent of GMB increase.

Increased modestly to 12, 6% from 12, 1%.

Due to an increase in insurance and public company costs.

Adjusted EBITDA was $14 million.

As compared to $10 4 million in the prior year quarter.

This is a profit increase of 34%.

This growth is driven by robust topline growth and strong gross profit margin in this quarter.

The adjusted EBITDA margin expanded by 60 basis points to eight 9% of sales.

We confirm our adjusted EBITDA margin guidance being at the upper half of our long term range of 7% to 9% on net sales.

Full fiscal year.

Adjusted EBITDA in this quarter.

It is only adjusted for the one time granted share based compensation mentioned above.

Depreciation and amortization expenses were relatively stable at $2 2 million compared to the prior year period at 2.0 milk.

My Teresa.

This strong increase in profitability.

Also on adjusted operating income level.

The first quarter of fiscal 2022, my choice, our reported and adjusted operating income of $11 8 million.

Compared to the $8 4 million in the previous year quarter.

Industrial presenting a solid growth of 47.

7%.

Adjusted net income was.

It was at $8 2 million as compared to $5 4 million in the prior year period.

And thus representing a solid growth of 51, 7%.

We continue to focus on delivering profitable growth.

Which remains clearly visible now very simple and transparent P&L.

With only one adjustment.

EBITDA adjusted EBITDA adjusted operating income and adjusted net income are non <unk> measures.

Moving to the cash flow statement during the three months ended September 32021, operating activities used $19 2 million in cash and cash equivalents.

Primarily driven by a $17 9 million seasonal increase in inventories.

We exited the quarter in a strong financial position with cash and cash equivalents of $55 7 million.

And total unused availability under the revolving credit facilities of $90 million as of September 32021.

My Teresa has no liabilities to banks and.

And equity ratio.

About 75%.

And for its size solid cash position.

For the full fiscal year 'twenty two we expect.

Positive free cash flow.

And therefore targets to a positive operating and free cash flow conversion.

This.

Underlines, our superior capital light model.

We expect a positive free cash flow for the full fiscal year. Despite our continued investments in our it infrastructure.

As we discussed last quarter and as Michael touched on earlier, we continue to be very excited about our curated platform model our CPM.

Our CPM is neither.

An E concession model, nor a marketplace.

It combines the best elements of <unk> and <unk> models.

Truly customer focused.

And unique mitral visa hybrid model.

In the first quarter of fiscal 2022.

We have already seen some ramp up of this curated platform model.

As we're just starting and have contractual confidentiality agreements in place we are not disclosing the CPM share of GMB.

And not to the level of the platform fee.

As stated before.

We expect the CPM share.

In our business for the full fiscal year 2022 to be well below 20% of our total platform revenues.

And in the medium term.

We expect the share to be not higher than 35%.

We expect the CPM share to gradually increase over time, but my Teresa expects for the majority of the luxury brands.

To continue to operate under the wholesale business model.

As it fits perfectly the needs of the majority of our luxury brands.

GPM integrates mitral user with our brand partners direct retail operations and provides access to products at scale and.

And maintain.

Our customer value proposition.

The key value driving characteristics of the CPM or <unk>.

Two new product curation by my Teresa.

Continued content creation by mitral.

Financial inventory ownership by the brand partner.

Inventory sitting in the mitral used a warehouse until return end of season.

And regular in season replenishment.

The CPM enables my Teresa.

Continue to do what it does pass.

Curation.

Engaging marketing concepts.

And superior customer service.

The strategic partnership provides for upside potential on the topline.

Due to in season replenishment and access to exclusive products.

Without any inventory aging risk.

The unit economics under the CPM.

A very similar so the unit economics under the wholesale model.

In addition, the <unk>.

He ran a platform model provides us with an even better capital efficiency.

We only pay for the merchandise after we sold the item.

I will now turn the call back over to Michael for his.

Concluding remarks.

Thank you Martin.

We are very pleased with the strong first quarter earnings results.

We see ourselves perfectly positioned to take advantage of the ongoing shifts to online and luxury spend.

The continued consolidation and Brian distribution.

And the global expansion opportunities.

Even more importantly.

We continue to see ourselves also perfectly positioned to take advantage of the long term opportunity in the markets.

Our multi brand digital platforms will continue to gain share.

And with that I'd like to ask the operator to open up for your questions.

At this time, if you would like to ask a question Press Star then the number one on your telephone keypad.

And at Star one on your telephone keypad.

We ask you to limit your question to one question and one follow up please.

Please wait for a moment and your names will be called.

Your first question comes from the line of Kimberly Greenberger from Morgan Stanley. Your line is open. Please ask your question.

Great. Thank you so much.

Very very nice print this morning, and thanks for taking the question.

In terms of the longer term outlook on online luxury spending.

Michael I think you mentioned that we've seen a very accelerated shift to luxury online shopping through the pandemic you expect.

<unk> strong growth.

Post pandemic, but perhaps at a slower rate can you just talk about your long term outlook and then I have a follow up on your revenue this quarter this quarter and this year. Thanks, so much.

Yes.

Thanks Kimberly.

Yes, you summarized it very well.

We are sorry.

Sorry Optima.

Optimistic on the long term.

Online share and thus overall market growth for us.

The pandemic has accelerated it.

Thus we were.

Some quarters its way above our long term growth of 22% to 25% and we have reiterated a couple of times that while there has been.

And acceleration.

Moving into the post pandemic World and you could argue are we already in it or it's still sort of moving into it.

The only thing we expect is probably a slower rate than what we've seen before more in line with what we always expect the 22% to 25% but.

There was some questions.

Whether that would be a contraction as people would.

Mark back to stores, we didn't expect that and we also don't.

Don't see that the momentum that we have shown in top line in this first quarter.

Our view strongly confirms our view that it may slow down, but I will not take anything away from the huge long term growth potential.

Okay, great and that that takes me to my follow up and does that sort of expectation longer term for 22% to 25% growth in online luxury goods spend align very nicely with your medium term.

Revenue and GMB growth targets.

So that so that makes a ton of sense and I know you laid it out very well on on slide 21.

I just wanted to make sure I understood the sort of path between here and the medium term.

You talked about today, so it sounds like current year.

<unk> 22 in fiscal 'twenty three revenue growth.

Through this period of CPM adoption would run in that 14% to 18% range before re accelerating just want to make sure I understand this correctly.

Is there a.

Do you have visibility in terms of.

Then the rate of adoption in CPM and do you already have the group of brands identified.

For that.

For that shift.

Ultimately over the next two years, how many brands do you contemplate might be on that CPM model.

Yes, thanks for the question because indeed, it may require some clarification I mean, as we transitioned some of our business I mean, we always stated that.

Even after fully rollout, we don't expect more than 35% of the total transaction volume from one platform to be in the CPM, but as we now start there is of course a transition period.

And thus the sales growth.

For technical reasons will slow down as on the CPM, We don't book the transaction the transaction gross merchandise value as revenue, but the transacted fee or the charge platform fee and for us.

The business continues to grow fully in line with the 22% to 25%, but the revenues we book.

Our technically lower because we switched from merchandize value being booked two piece being booked and.

We expect that.

35%, which is the Max.

We project today will take us into fiscal year 'twenty four we have the group of Ryan's identified as Martin explained in his remarks today.

We have now also been a clarity on.

And which season.

We'll switch to this model I mean at the moment, we have just one major brand as you can see the difference between <unk> and net sales in this quarter is still.

Quite small.

And as it gradually moves into it.

We will.

We don't expect even this year more than.

Close to 20%, but once this transition period is over.

Sales and <unk> sales will be in lock step again and so.

After that which we expect for the transition period to be.

Well well progressed with fiscal year 2004, when we come back to our long term expected, 22% to 25% <unk>.

But what we want to stress is the value creation of mitral visa the inherit inherent value of our business is of course the customer relationship.

And the customer relationship in terms of depth and strains is best captured by the amount of money they transact on our platform.

So.

While I fully understand as an accounting measure of net sales remains quite important I think.

I understand the importance of our business in terms of market share in terms of brand relationships.

You have to look at <unk>. The GMB growth you see clearly indicates we have taken massive market share over the last 12 months.

Absolutely very clear thank you.

Your next question comes from the lineup Matthew Boss from JP Morgan. Your line is open. Please ask your question.

Great. Thanks, So Michael as we think about category recovery by region exiting the pandemic could you speak to the curve Youre seeing in Europe, Asia, and the U S and specifically any changes that youre seeing in the assortment tied to broader reopening activity and just what it means for your model.

I'll try my best this is partly forecasting and predictions, but I can tell you what we see today, so what we see today.

Is.

Not as steep curve in Asia, but that has more to do with the fact that there was not.

Real recovery needed because ever since last year kind of summer they were in our control mode. So the recovery curve is not as steep as we see in other regions, but.

The contraction was also negative.

The steepest curves, we see in the U S.

Ever since late spring consumers in the U S has really rebounded in terms of spending.

The curve in Europe is not as steep and of course in Europe you have.

Still some significant variations between between regions or countries so to speak in terms of categories across the globe.

It is of course categories that have suffered due to the lack of locations. So vacations swimwear skiwear.

Going out in terms of gowns yields clutch is going back to office in terms of.

Jack cuts in terms of.

Low fours. So these are the categories that are recovering.

<unk> rebounding, whereas the categories that have really.

Quote unquote benefitted from the pandemic, which we are more niche flat sneakers cashmere.

We are taking a pause we believe this is not.

A long term change of behavior of this has to do with pent up demand and so things will come back and more.

And more balance, but we also always believed even before pre pandemic that.

It is.

It continues to be a shift away from pure Street wear styles best described by.

Who these capex jumbos sneakers track suits to a more address Scott and that we saw even before the breakout the kinetics, so and that we believe is an ongoing trend.

More fashion trend than anything related to economic situations or or lifestyles.

And we feel we can benefit from this because we were never positioned strongly on street wear style, we will always more positioned bulson women's wear and men's wear in a more dressed more mature more.

Timing is luxury positioning.

Great and then just as a follow up how best to think about the multiyear margin implications from the scaling of your CPM model.

More so how do you see this model evolution should we think about it is accretive to your 7% to 9% EBITDA margin target over time.

So as we look at the CPA model and that's what is both built into our guidance and.

And our expectation that the CPM has a different.

Gross margin logic.

But also some different cost.

Implications in terms of marketing and SG&A, So EMEA and unit economics under the CPM are very similar to unit economics on the wholesale even though sale.

Sales that you book a differently. So we continue to commit and guides towards 7% to nine.

For this season for this fiscal year to the upper half.

There is always room for improvement in potential but.

As there is a gradual introduction of CPM and not overnight.

We will continue to update our guidance as we see how the model unfolds. So for us it is.

Strategically accretive because of the replenishment opportunities because of the access to product and operation.

It is.

It is a washington that sense financially sorry, not operations.

Great Best of luck.

Again, if you would like to ask a question Press Star then the number one on your telephone keypad.

Your next question comes from the line of Oliver Chen from Cowen <unk> Company. Your line is open. Please ask your question.

Hi, Good morning. Thank you for taking our question. This is Kimberly hung on for Oliver just two questions on on CPM. One how much interest are you getting from new brands that are currently not working with my Teresa.

Especially with new brand acquisition, I think more likely to come through.

So the CPM model or through wholesale and then just on the tech adoption and the software that has to do with the in stock levels and integrating the inventory level for.

For real time inventory breathe.

Much capex as their need and how does that.

Adoption of integration going on the brand side.

Thank you.

Thank you.

Let me start with your second question. So we are already successfully light was one major Brian So in terms of fundamental development. It is done.

Of course every time you onboard another brands Theyre always nuances that always specifics that you need to adapt but that is incremental technology in development. So in terms of being able to run the model.

We are already able to run the model as evidenced by already we have a major brand running on CPO.

On the first part.

That is more.

<unk>, we believe the CPM offers for brands.

An interesting alternative to traditional wholesale with some specific advantages for them.

And thus we believe strongly that offering an alternative model, where an additional model makes us even more attractive to brand partners and <unk>.

Hopefully will allow us to attract brands that we don't carry today, but this is.

Irrespective nation at this stage.

Got it thank you.

Can just ask one more on shipping and payment expenses and the near term how are you thinking about.

That that line given the inflationary.

Environment, and the supply chain delays and especially with your carriers and then in the long term are there any automation opportunities to leverage that line item. Thank you.

So the view, we have on shipping and payment and wholesale and marketing is.

We will be facing.

Cost pressures as of the Paas, we will be facing efficiency requirements as in the past so.

We are.

Vince that we will be capable as we have done in the paas to manage these cost lines to be very stable.

As a core element of our economic model and.

Automation in terms of data management data processing automation also in terms of material goods flow can certainly one element of it.

But the biggest.

Opportunities for savings is.

Closer integration closer data exchange there is still a lot of paperwork involved in the whole process of getting a good show.

Getting a good through customs and there is massive.

Still efficiency gains to be made so.

We recognize there are cost pressures out there we see them there are inflationary pressures.

Also very strong conviction that as in the past, we will manage those with continuous scale deficiencies.

Got it thank you so much.

Your next question comes from the line of Michael Binetti from Credit Suisse. Your line is open. Please ask your question.

Thanks. Good morning. This is Rick Patel on for Michael.

Can you help us better understand the drivers for the revenue guidance increase.

How should we think about what's embedded in terms of higher demand versus what you expected 90 days ago versus the potential impact.

That CPM might be having in the coming quarters and as far as your guidance for EBITDA goes that is intact I know, it's a fairly wide range, but can you help us think about the puts and takes there.

The higher revenue expectations.

I mean, the change in net sales is more.

A technical so.

Hand, it over to Martin because he is also well positioned to comment on the EBITDA.

Dictation.

Yes, sure happy to do so.

Exactly I mean, the driver for the net sales increase in guidance is a pure technical.

With the with the CPM ramp up and now knowing when the brands will.

Ship their seasons.

<unk> being a bit later.

That's why the net sales increases to seven from seven to $700 million to $720 million.

And the EBITDA adjusted EBITDA margin guidance.

At the upper half of the range of 7% to 9%.

We think it's quite unique is quite good and it's quite narrow and obviously it relates to the.

The higher <unk>.

Net sales guidance.

Great and can you also help us think about the outlook for marketing how should we be thinking about the potential for leverage there.

And now that you have more visibility on CPM.

The puts and takes on that line.

On the marketing costs as we as we stated always we.

We want to reinvest that continued performance marketing efficiencies into more.

Brand building activities.

Into more PR and Vince in a post pandemic world and therefore, we guide more towards a stable marketing cost ratio and that includes also CPM.

Thanks, very much I mean, I think the best way to think about it as medium term.

High growth rates, 22% to 25% medium term.

We'll manage cost pressures, we will take advantage of.

Reinvestment opportunities of cost savings, so that the EBIT margin.

Does it well.

The 7% to 9% because.

As we have done over the last couple of months, we want to continue to grow and take market share.

There is inherent leverage in our model.

New customer acquisition becomes less important for the overall growth number.

And that will come at some point of course, because the base continues to grow and grow in.

Our sense of new customers to drive the growth.

Relatively becomes smaller, but we don't see that point at the moment, there's so much business to be grabbed outside.

Our current base and we want to grab it at the moment.

That's helpful. Thank you.

Again, if you would like to ask a question Press Star then the number one on your telephone keypad.

Your next question comes from the line up gaff-rigged them in deaths from Bank of America. Your line is open. Please ask your question.

Hi, there. Thanks for taking my question I just have.

One for me. Please can you just comment a little bit on <unk>.

Any change of trends that you've seen.

In the last few weeks versus versus Q1 fiscal year 2022.

Any fjord.

Seeing acceleration slowdown and your comments on the current trading would be interesting. Thank you.

Sure.

I mean, the best way to describe is that we see continued good momentum.

Details will follow as we don't give any updated guidance by quarter, but.

We are.

We are very pleased with the Q1 and we see continued good momentum.

In our business okay. Thanks.

Again, if you would like to ask a question Press Star then the number one and your telephone keypad.

Yeah.

There are no further question at this time.

This concludes today's conference call. Thank you for participating you may now disconnect.

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