Q4 2024 Helen of Troy Ltd Earnings Call

Thank you operator, good morning, everyone and welcome to Helen of Troy's fourth quarter fiscal 2020 for earning.

Operator: Thank you, operator. Good morning, everyone, and welcome to Helen of Troy's fourth quarter fiscal 2024 earnings conference call. The agenda for the call this morning is as follows. I'll begin with a brief discussion of forward-looking statements. Ms. Noel Geoffroy, the company's CEO, will comment on business performance and key accomplishments and then provide some perspective as we begin the new fiscal year. Then, Mr. Brian Grass, the company's CFO, will review the financials in more detail and comment about current trends and expectations for the upcoming fiscal year. Following this, we will take the questions you have for us today.

Conference call.

Speaker Change: The agenda for the call. This morning is as follows.

Speaker Change: Begin with a brief discussion of forward looking statements.

Mr. Welch: Mr. Welch flopped, the company's CEO will comment on business performance and key accomplishments and then provide some perspective as we begin the new fiscal year.

Mr. Welch: Then Mr. Brian grass, the company's CFO will review the financials in more detail and comment about current trends and expectations for the upcoming fiscal year.

Speaker Change: Following this we will take questions you have for us today.

Speaker Change: This conference call may contain certain forward looking statements that are based on management's current expectation with respect to future events or financial performance.

Operator: This conference call may contain certain forward-looking statements that are based on management's current expectations with respect to future events or financial performance. Generally, the words anticipates, believes, expects, and other words similar are words identifying forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties that could cause anticipated results to differ materially from the actual results. This conference call may also include information that may be considered non-GAAP financial information

Speaker Change: Generally the words anticipates believes expects and other words similar are words identifying forward looking statements forward.

Speaker Change: Forward looking statements are subject to a number of risks and uncertainties that could cause anticipated results to differ materially from the actual results.

Speaker Change: This conference call May also include information that may be considered non-GAAP financial information. These non-GAAP measures are not an alternative to GAAP financial information and may be calculated differently than the non-GAAP financial information disclosed by other parties. The company cautions listeners not to place undue reliance on forward looking statements or.

Operator: These non-GAAP measures are not an alternative to GAAP financial information and may be calculated differently than the non-GAAP financial information disclosed by other parties. The company cautions listeners not to place undue reliance on forward-looking statements or non-GAAP information. Before I turn the call over to Ms. Schifois, I would like to inform all interested parties that a copy of today's earnings release has been posted on the Investor Relations section of the company's website at www.

Speaker Change: non-GAAP information.

Speaker Change: Before I turn the call over to initial thoughts I would like to inform all interested parties that a copy of today's earnings release has been posted to the Investor Relations section of the company's website at Www Dot Helen of Troy Dot Com. The earnings release contains tables that reconcile non-GAAP financial measures to their corresponding GAAP based measures.

Operator: HelenOfTroy.com. The earnings release contains tables that reconcile non-GAAP financial measures to their corresponding GAAP-based measures. The release can be obtained by selecting the Investor Relations tab on the company's homepage and then the Press Releases tab. I will now turn the conference call over to Ms. Schifois.

Speaker Change: The release can be obtained by selecting the Investor Relations tab on the company's homepage and then the press releases tab I will now turn the conference call over to Mr. <unk>.

Noel Geoffroy: Thank you, Jack. Hello, everyone, and thank you for joining us today. Today marks my first public remarks as Helen of Troy's CEO. I'm honored to lead this great organization with an inspiring purpose of elevating lives in moments that matter everywhere, every day, and I am optimistic and energized by what lies ahead for the company. Today we reported fourth-quarter results that came in ahead of our expectations. We exceeded the full year fiscal 24 consolidated net sales and adjusted EPS outlook we provided in January.

Speaker Change: Thank you Jack Hello, everyone and thank you for joining us today.

Jack: Today marks my first public remarks, as Helen of Troy CEO I'm honored to lead this great organization with an inspiring purpose of elevating lives in moments that matter everywhere every day and I am optimistic and energized by what lies ahead for the company.

Jack: Today, we reported fourth quarter results that came in ahead of our expectations, we exceeded the full year fiscal 'twenty for consolidated net sales and adjusted EPS outlook, we provided in January.

Noel Geoffroy: During the fiscal year, we expanded gross profit margin by 390 basis points and increased adjusted operating margin by 50 basis points, even as we used fuel generated by Project Pegasus to make incremental strategic investments in our business. We generated $269 million in free cash flow and strengthened our durable balance sheet by reducing our total debt by $269 million to $665.7 million.

Jack: During the fiscal year, we expanded gross profit margin by 390 basis points and increased adjusted operating margin by 50 basis points, even as we use fuel generated by project Pegasus to make incremental strategic investments in our business.

Jack: We generated $269 million in free cash flow and strengthened our durable balance sheet by reducing our total debt by $269 million to $665 $7 million.

Noel Geoffroy: I am pleased with the continued execution and consistency of our results, particularly in light of an ongoing difficult macroeconomic environment and the changes that our organization is navigating. Today's results reflect the strength of our brand portfolio, the progress of our strategic initiatives, and the talent and dedication of our associates, all of which provide us with a strong platform to build upon in Fiscal 25 and beyond. During the past fiscal year, we made significant progress on the goals we set for ourselves.

Jack: I am pleased with the continued execution and consistency of our results, particularly in light of an ongoing difficult macroeconomic environment and the changes that our organization is navigating.

Jack: Today's results reflect the strength of our brand portfolio the progress of our strategic initiatives and the talent and dedication of our associates all of which provides us with a strong platform to build upon in fiscal 'twenty five and beyond.

During the past fiscal year, we made significant progress on the goals, we set for ourselves I'm pleased with the passion and engagement of the entire Helen of Troy team as we continue to embrace our new structure as a true global operating company.

Noel Geoffroy: I am pleased with the passion and engagement of the entire Helen of Troy team as we continue to embrace our new structure as a true global operating company. This structure includes next-level centralization of shared services to leverage our functional expertise, our first-ever centralized marketing center of excellence to bring new capability and scale, business units that are even more focused on brand-building and consumer-centric innovation, and our newly formed North American Regional Market Organization, or NARMO, which mirrors our international RMO to drive excellent in-market execution.

Jack: This structure includes next level centralization of shared services to leverage our functional expertise our first ever centralized marketing center of excellence to bring new capability and scale business units that are even more focused on brand building and consumer centric innovation and our newly formed North American regional market organization or <unk>.

Jack: <unk>, which mirrors, our international arm al to drive excellent end market execution.

Jack: Despite fiscal 'twenty for being one of the tougher macroeconomic years for discretionary consumer goods, we found a way to deliver our plan, while navigating a number of challenges, including inflationary pressures coupled with continued predictions of recession.

Noel Geoffroy: Despite fiscal 24 being one of the tougher macroeconomic years for discretionary consumer goods, we found a way to deliver our plan while navigating a number of challenges, including inflationary pressures coupled with continued predictions of recession, lengthy COVID hangover effects impacting some of our categories, shifts in shopping patterns between brick and mortar and online, changes in the retailer landscape as they adjusted to consumer spending and shopping dynamics, and the effects of geopolitical events.

Jack: The COVID-19 hangover effects impacting some of our categories shifts in shopping patterns between brick and mortar and online changes and the retailer landscape as they adjusted to consumer spending and shopping dynamic and the effects of geopolitical events.

Noel Geoffroy: We braced for the impacts of these challenges and responded by lowering inventories, reducing costs, leveraging our scale to find new growth opportunities, and keeping a laser focus on ROI with the investment fuel generated by Project Pegasus. Last October, we unveiled Elevate for Growth, our exciting six-year strategic plan that represents an important pivot for the company. The plan emphasizes increased growth investment and a new portfolio management approach with defined criteria to make sharper resource allocation choices based on growth potential and return on investment. We have also doubled down on delighting consumers with next-level brand building and innovation. We are striving for consumer obsession in all that we do.

Jack: We brace for the impact of these challenges and responded by lowering inventories reducing cost leveraging our scale to find new growth opportunities and keeping a laser focus on ROI with the investment fueled generated by project Pegasus.

Jack: Last October we unveiled elevate for growth are exciting six year strategic plan that represents an important pivot for the company.

Jack: The plan emphasizes increased growth investment at a new portfolio management approach with defined criteria to make sharper resource allocation choices based on growth potential and return on investment.

We also doubled down on delighting consumers with next level brand building and innovation.

Jack: We are striving for consumer obsession and all that we do.

Noel Geoffroy: We committed to upgrading our data insight and analytic capabilities to solve business issues better and faster to enhance our productivity. Our new state-of-the-art distribution center in Galloway, Tennessee that opened in Fiscal 24 is a great example of that. We did all this while still preserving the company's strong foundation, balance sheet, and long-term investments that we believe will deliver a bright future for all Helen of Troy stakeholders.

Jack: We committed to upgrading our data insight and analytic capabilities to solve business issues, better and faster to enhance our productivity.

Jack: Our new state of the Art distribution center in Galloway, Tennessee that opened in fiscal 'twenty four it is a great example of that.

Jack: We did all this while still preserving the company's strong foundation balance sheet and long term investments that we believe will deliver a bright future for all Helen of Troy stakeholders.

Jack: Before turning to our fourth quarter results I want to highlight four foundational elements of elevate for growth that I spoke about during October investor day.

Noel Geoffroy: Before turning to our fourth-quarter results, I want to highlight four foundational elements of Elevate for Growth that I spoke about during October's Investor Day. These four elements excite me and give me confidence that we will emerge in a stronger position even as we navigate an environment where we expect consumers will continue to face tough choices when it comes to discretionary spending. First, we have a diversified and well-recognized family of trusted brands with an enviable reputation as a leader across multiple categories and geographies. Our brands continue to be highly rated by consumers and receive awards and recognition from prestigious periodicals and industry organizations such as Consumer Reports, Wired, Red Dot, Good Housekeeping, Beauty Publications, Food Network, and Forbes.

Jack: These four elements excite me and give me confidence that we will emerge in a stronger position, even as we navigate an environment, where we expect consumers will continue to face tough choices when it comes to discretionary spending.

Jack: First we have a diversified and well recognize family a trusted brand with an enviable reputation as a leader across multiple categories and geographies.

Jack: Our brands continue to be highly rated by consumers and receive awards and recognition from prestigious periodicals and industry organizations, such as consumer report wired Red Dot good housekeeping beauty publication food network and forms.

Noel Geoffroy: We believe our strong brands have many opportunities to stretch into attractive adjacent spaces to further excite existing consumers and attract new ones. We identified new opportunities to expand distribution of our brands into incremental channels and customers, and those efforts paid off in Fiscal 24 as we surpassed the internal goals we set for ourselves. For example, at one of our key mass customers, we secured higher than expected incremental distribution of our OXO outdoor grilling line and key Revlon hair appliance. We expect a further benefit from a full fiscal year of this new distribution in addition to even more opportunities in Fiscal 25.

Jack: We believe our strong brands have many opportunities to stretch into attractive adjacent spaces to further excite existing consumers and attract new ones.

Jack: We identified new opportunities to expand distribution of our brands into incremental channels and customers and those efforts paid off in fiscal 'twenty four as we surpassed the internal goals, we set for ourselves.

Jack: For example, at one of our key mass customers, we secured higher than expected incremental distribution of our ASO outdoor grilling line and key Revlon hair appliances, we expect to further benefit from a full fiscal year of this new distribution. In addition to even more opportunities in fiscal 'twenty five.

Second we are generating fuel from project Pegasus to incrementally invest in growth opportunities and capabilities. This will enable us to strategically invest in our brands with precision marketing and further product and commercial innovation.

Noel Geoffroy: Second, we are generating fuel from Project Pegasus to incrementally invest in growth opportunities and capabilities. This will enable us to strategically invest in our brands through precision marketing and further product and commercial innovation. Third, we are advantageously positioned to fully leverage our operational and organizational scale and assets. I am delighted that our team is embracing our new global operating model to enable greater focus and centralized expertise.

Jack: Third we are advantageously positioned to fully leverage our operational and organizational scale and asset <unk>.

Jack: I'm delighted that our team is embracing our new global operating model to enable greater focus and centralized expertise I.

Noel Geoffroy: I am also excited to fully leverage our new state-of-the-art Tennessee Distribution Center to bring significant new scale and service capabilities that will set us up for years to come. Finally, and most importantly, I'm energized as I continue partnering with our talented and exceptional associates to further build on our strong culture. I am proud of our ability to attract, develop, and retain a diverse team.

Im also excited to fully leverage our new state of the art, Tennessee distribution center to bring significant new scale and service capabilities that will set us up for years to come.

Jack: Finally, and most importantly, I'm energized because I continue partnering with our talented and exceptional associates to further build on our strong culture I'm proud of our ability to attract develop and retain a diverse team I believe our culture is a competitive advantage that delivers benefits to all our stakeholders by bringing new perspective.

Noel Geoffroy: I believe our culture is a competitive advantage that delivers benefits to all our stakeholders by bringing new perspectives, experiences, and expertise, resulting in great brands that elevate consumers' lives with thoughtful and effective solutions. Turning now to our fourth quarter business results. Consolidated net sales increased 1% as we benefited from growth in online, international, and club channel sales in home and outdoor, and prestige hair care. These factors were partially offset by declines in air purifiers, fans, and heaters driven by askew rationalization efforts and softer consumer demand and a decline in humidification reflecting cough cold flu illness below the prior year and pre-COVID historical averages.

Jack: Experiences and expertise, resulting in great brands that elevate consumers lives with thoughtful and effective solution.

Jack: Turning now to fourth quarter business results.

Jack: <unk> net sales increased 1% as we benefited from growth in online International club channel sales in home and outdoor in prestige hair care.

Jack: These factors were partially offset by declines in air Purifiers fans and heaters, driven by our SKU rationalization efforts and softer consumer demand and a decline in humidifier, Haitian reflecting cough cold flu illness below the prior year and pre Covid historical averages.

Noel Geoffroy: Adjusted diluted EPS was $2.45, or a 21.9% increase over the same period last year and also slightly ahead of our expectations. Overall, macro trends in the quarter reflected a consumer who remained cautious with their money and increasingly prioritized their discretionary spending on travel and other entertainment experiences over tangible goods.

Jack: Adjusted diluted EPS was $2.45 or 21, 9% increase over the same period last year and also slightly ahead of our expectation.

Overall macro trends in the quarter reflected a consumer who remain cautious with their money and increasingly prioritized their discretionary spending on travel and other entertainment experiences over tangible goods as.

Noel Geoffroy: As we move into fiscal 25, we are seeing these trends intensify. Turning now to our segment, home and outdoor nut sales increased 5.4% over the prior year period due to growth in the home category, insulated beverageware, packs, and travel, and international. OXO remains the number one branded line in the kitchen utensils and canister food storage categories and gained share in kitchen utensils over the last 12-month period. The brand achieved strong results driven by distribution gains in the mass channel, the timing of club promotional programs, as well as strength and new distribution in grocery. International business was also a highlight in the quarter.

Jack: As we move into fiscal 'twenty five we are seeing these trends intensify.

Jack: Turning now to our segments home and outdoor net sales increased five 4% over the prior year period due to growth in the home category insulated beverage ware packs and travel and international.

Jack: OXXO remains the number one branded line in the kitchen utensils, and canister food storage categories and gained share in kitchen utensils over the last 12 month period.

Jack: The brand achieved strong results driven by distribution gains in the mass channel the timing of club promotional programs as well as strength in new distribution in grocery International was also a highlight in the quarter.

Noel Geoffroy: Be and Win Where the Shopper Shops is one of our Elevate for Growth strategic choices. I'm pleased to share that our NARMO and Home and Outdoor teams have collaborated to secure exciting OXO distribution. At Walmart, our OXO Softworks Kitchen Gadgets have expanded, we added our grilling line, and we are pleased to gain additional placement for OXO in other key categories later in Fiscal 25. This is notable as 90% of the U.S. population lives within 10 miles of a Walmart store.

Jack: B and win where the shopper shops is one of our elevate for growth strategic choices I'm pleased to share that our <unk> in home and outdoor teams have collaborated to secure exciting OXXO distribution wins.

Jack: At Walmart or oxo Softworks kitchen gadgets has expanded we added our grilling line and we are pleased to gain additional placement for OXXO and other key categories later in fiscal 'twenty five.

This is notable as 90% of the U S population lives within 10 miles of a Walmart store.

Jack: Hydro flask performed well online driven by continued positive reception to our new travel Tumblr seasonal colors and promotion as well as post holiday replenishment.

Noel Geoffroy: HydroFlask performed well online, driven by continued positive reception to our new travel Tumblr, seasonal colors and promotions, as well as post-holiday replenishment. We are excited about where we are heading with this key brand. Being consumer-obsessed with HydroFlask means launching on-trend color, design, style, customization, and personalization options. In addition, we need to offer different container and cap configurations to meet the needs of various consumer usage occasions, whether in the car, at the gym, in the park, around the house, or at school.

Jack: We are excited about where we're heading on this key brand being consumer obsessed with hydro flask means launching on trend color design style customization and personalization options.

Jack: In addition, we need to offer different container and cap configurations to meet the needs of various consumer usage occasions, whether in the car at the gym in the park around the house or at school.

Noel Geoffroy: We are also evolving our marketing content and targeting with the support of our new Marketing Center of Excellence, allowing us to better connect with our hydroflask consumers with the right message, in the right place, at the right time. You'll see us expand on these concepts with new product offerings such as the new Sugar Crush Limited Edition available in bottles and travel tumblers featuring a beautiful waterfall of pastel colors and the new insulated shaker bottle designed with an internal whisk ball perfect for mixing a smoothie or protein shake.

We are also evolving our marketing content and targeting with the support of our new marketing center of excellence, allowing us to better connect with our hydro flask consumer with the right message in the right place at the right time Youll.

Jack: You'll see us expand on these concepts with new product offerings, such as the new sugar Crush limited edition available in bottles and travel tumblers, featuring a beautiful waterfall of pastel colors, and the new insulated Shaker bottle design with an internal with ball perfect for mixing a smoothie our protein shake.

Noel Geoffroy: You will also see us further expand the distribution of the hydroflask in Fiscal 25. Osprey sales should strengthen internationally with growth in EMEA and APAC on strong demand for travel packs. In North America, we made further inroads into key sporting goods retailers. For Fiscal 24, overall U.S. brand share strengthened for luggage, and we extended our number one position in technical path. 2024 marks Osprey's 50-year anniversary, and we were honored to be recognized in Outside Magazine. Osprey's focus remains on making the world's best packs suited for a wide range of activities featuring our unique and superior design, craftsmanship, and commitment to sustainability, all backed by our almighty guarantee.

You will also see us further expand distribution of hydro flask in fiscal 'twenty five.

Jack: Osprey sales showed strength internationally with growth in EMEA and APAC on strong demand for travel path.

In North America, we made further inroads in key sporting good retailers.

Jack: For fiscal 'twenty, four overall U S brand share strengthened for luggage and we extended our number one position in technical path.

Jack: 2024 marks Ospreys 50 year anniversary and we were honored to be recognized and outside magazine.

Jack: Osprey focus remains on making the world best path suited for a wide range of activities, featuring our unique and superior design craftsmanship and commitment to sustainability all backed by our Almighty guarantee.

Noel Geoffroy: Our new collection continues to build on the brand's strengths and heritage, including new designs for different occasions like biking, day packs, and inclusive sizes so everyone can experience the outdoors with the very best gear. Perfect examples are three new additions to Osprey's extended fit line of packs, which became available this spring and are already garnering positive consumer response on social media. Osprey's Farpoint 55 travel pack has also been a hit, achieving 4.6 stars on Amazon out of over 1,300 reviews.

Jack: Our new collection continues to build on our brand strength and heritage, including new designs for different occasions, like biking day packs and inclusive sizes. So everyone can experience the outdoors with the very best gear.

Jack: Perfect. Examples are three new additions to Osprey is extended fit line of pack, which became available. This spring and are already garnering positive consumer response on social media.

Jack: Osprey Far-point 55 travel pack has also been ahead, achieving four six stars on Amazon out of over 1300 reviews.

Noel Geoffroy: We believe Osprey has a bright future ahead, building on its strengths, continuing to extend into new adjacencies, and leveraging the Helen of Troy operational and organizational scale. Switching gears now to our beauty and wellness segment, net sales declined 2.5%, primarily driven by air purifiers, fans, and heaters, reflecting softer consumer demand and our skew rationalization. We also saw a decline in humidification, reflecting a cumulative cough, cold, and flu season illness incidence below the prior year and pre-COVID historical averages.

Jack: We believe Osprey has a bright future ahead building on its strengths continuing to extend into new adjacencies and leveraging the Helen of Troy operational and organizational scale.

Jack: Switching gears now to our beauty and wellness segment net sales declined two 5%, primarily driven by air Purifiers fans and heaters, reflecting softer consumer demand and our SKU rationalization effort.

Jack: We also saw a decline in humidifier patient, reflecting accumulative cough cold and flu season illness incidents below the prior year and pre Covid historical averages.

Noel Geoffroy: These factors were partially offset by growth in hair appliances and thermometry, which helped drive overall international sales and growth in Prestige Hair Care. We also benefited from an incremental seven weeks of Curlsmith sales compared to the prior period as we acquired Curlsmith in April 2022. In beauty, online sales for our volumizers strengthened in the quarter, and we also benefited from incremental doors and distribution in the mass channel across our hair tool portfolio.

Jack: These factors were partially offset by growth in hair appliances, and thermometry, which helped drive overall international sales.

Jack: And the growth in prestige hair care.

Jack: We also benefited from an incremental seven weeks across net sales compared to the prior period as we acquired Karl Smith in April 2022.

Jack: In beauty online sales for our volume either strengthened in the quarter and we also benefited from incremental doors and distribution in the mass channel across our hair tool portfolio.

Noel Geoffroy: Drybar and Carlsmith Prestige continue their momentum driven by their innovation pipeline and marketing support. As one example, our Drive-R Hot Roller Club Rollers arrived at our key retailers in early February and quickly became a consumer sought-after innovation, making it our best-selling tool in those retailers within weeks. In wellness, the cough, cold, and flu season was below the prior year in pre-COVID historical averages for both our quarter and the fiscal year.

Jack: Drive Arne CRO Smith prestige continued their momentum driven by their innovation pipeline and marketing support.

As one example, I drive our Hot Roller club rollers arrived at our key retailers in early February and quickly became a consumer sought after innovation, making it our best selling tool and those retailers within weeks.

Jack: And wellness the cough cold and flu season was below the prior year and free Covid historical averages for both our quarter and the fiscal year.

Noel Geoffroy: This impacted sales of our products designed to help relieve cough, cold, and congestion symptoms, such as humidifiers, inhalants, and related consumables. As mentioned during our January call, we saw a softer start to the season. However, as the quarter progressed, influenza-like illnesses increased some, and retailers were able to meet this consumer demand with their existing inventory.

Jack: This impacted sales of our products designed to help relieve cough cold and congestion symptoms, such as humidifiers inhalants and related consumable.

Jack: As mentioned during our January call, we saw softer start to the season as the quarter progressed influenza like illnesses increased thumb and retailers were able to meet this consumer demand with their existing inventory.

Noel Geoffroy: Therefore, we have not seen incremental replenishment orders so far in Q1 of Fiscal 25. International was a standout in the quarter, posting double-digit growth as we benefited from more focused strategic choices on must-win brands and markets, strengthened distribution and distributor partnerships, and implemented a more integrated organizational structure of our EMEA team. Growth was driven by performance anemia, with strong demand for both Bron and Revlon. Hydroflask benefited from our new strategic outdoor sports, lifestyle, and travel initiatives in Europe, while leveraging Osprey's European distribution footprint to accelerate growth.

Jack: Therefore, we have not seen incremental replenishment orders so far in Q1 of fiscal 'twenty five.

Jack: International was a standout in the quarter posting double digit growth as we benefited from more focused strategic choices, our must win brands and market strength in distribution in this distributor partnership and implemented a more integrated organizational structure of our EMEA team.

Jack: Growth was driven by performance in EMEA with strong demand for both brawn and Revlon.

Jack: Hydro flask benefited from our new strategic outdoor sports lifestyle and travel initiatives in Europe, while leveraging osprey European distribution footprint to accelerate growth. We will continue to prioritize international growth leveraging the must win brand and market choices selected and elevate for growth looking ahead as we face what we believe will be a <unk>.

Noel Geoffroy: We will continue to prioritize international growth, leveraging the must-win brand and market choices selected in Elevate for Growth. Looking ahead, as we face what we believe will be a tough environment of increasingly soft consumer discretionary spending, I am confident that our strategic plan and efforts position us to achieve our Fiscal 25 objectives, which Brian will take you through shortly. In the current business environment, we believe it is imperative that we remain agile, invest incrementally to further strengthen our brand, leverage our organizational structure and scale, and control our controllables.

Jack: Tough environment of increasingly fast consumer discretionary spending I am confident that our strategic plan and efforts position us to achieve our fiscal 'twenty five objectives, which Brian will take you through shortly.

Jack: And the current business environment. We believe it is imperative that we remain agile invest incrementally to further strengthen our brand leverage our organizational structure and scale and control our controllable.

Jack: Elevate for growth and project <unk> are about leveraging our organization to unleash its full potential and ensuring that the framework and our associates are fully equipped to keep up with the pace of change.

Jack: Just last month I was delighted to attend our new unified <unk> annual sales meeting the enthusiasm and power of this event was inspiring you could feel the optimism teamwork and focus towards elevating our brands to deliver our growth goal.

Noel Geoffroy: Elevate for Growth and Project Pegasus are about leveraging our organization to unleash its full potential and ensuring that the framework and our associates are fully equipped to keep up with the pace of change. Just last month, I was delighted to attend our new unified NARMO annual sales meeting.

Jack: Globally, we have an outstanding worldwide organization that is motivated by our purpose and values and excited for our future our purpose and values set a high bar and this will remain the most important element of Helen of Troy.

Jack: Elevating lives the moments that matter everywhere every day is something that matters to all our stakeholders and importantly can stand the test of time I'm excited and feel incredibly fortunate to have an exceptional team of determines associates, whose dedication and passion will help further elevate our company in this next era I am confident that the best.

Noel Geoffroy: The enthusiasm and power of this event was inspiring. You could feel the optimism, teamwork, and focus towards elevating our brands to deliver our growth goals. Globally, we have an outstanding worldwide organization that is motivated by our purpose and values and excited about our future. Our purpose and values set a high bar, and this will remain the most important element in Helen of Troy. Elevating lives in moments that matter, everywhere, every day, is something that matters to all our stakeholders and, importantly, can stand the test of time.

Jack: <unk> is yet to come.

Speaker Change: Before turning the call over to Brian I would also like to let the investment community know that at the end of May Jack Janssen Senior Vice President of corporate business development will be retiring after 40 years in the consumer products industry 20 of them at Helen of Troy.

Brian L. Grass: Many of you know Jack from the various events and meetings over the past 10 years. He has been instrumental to increasing Helen of Troy's visibility within the financial community and leading our M&A activities.

Noel Geoffroy: I am excited and feel incredibly fortunate to have an exceptional team of determined associates whose dedication and passion will help further elevate our company in this next era. I am confident that the best is yet to come.

We are so grateful for his many years of service and contributions and we'd like to extend our warmest congratulations and best wishes for his future endeavors.

Brian L. Grass: I would also like to welcome spring of key our new senior Vice President business development, and Investor Relations, who joined US on April 1st she brings a wealth of experience and fresh perspective to our team. Many of you also know Anne <unk>, our director of external communications and Investor Relations, who will remain the main point of contact for all investor enquiries.

Noel Geoffroy: Before turning the call over to Brian, I would also like to let the investment community know that at the end of May, Jack Jancin, Senior Vice President of Corporate Business Development, will be retiring after 40 years in the consumer products industry, 20 of them at Helen of Troy. Many of you know Jack from the various events and meetings over the past 10 years. He has been instrumental in increasing Helen of Troy's visibility within the financial community and leading our M&A activities.

Brian L. Grass: Now I will pass the call over to Brian.

Thank you Noel I'm pleased to report fourth quarter results that again exceeded our expectations.

Brian L. Grass: We delivered net sales and adjusted EPS ahead of our outlook, we expanded gross profit and adjusted EBITDA margins in our business continued to generate strong free cash flow.

Brian L. Grass: As Noel mentioned fourth quarter consolidated net sales increased 1% despite unfavorable impacts from SKU rationalization and the bankruptcy of bed Bath and beyond driven by growth from OXXO Hydro flask Osprey dry bar.

Noel Geoffroy: We are so grateful for his many years of service and contributions and would like to extend our warmest congratulations and best wishes for his future endeavors. I would also like to welcome Sabrina O'Keefe, our new Senior Vice President of Business Development and Investor Relations, who joined us on April 1st. She brings a wealth of experience and a fresh perspective to our team. Many of you also know Anne Rakunas, our Director of External Communications and Investor Relations, who will remain the main point of contact for all investor inquiries. Now, I will pass the call over to Brian.

Brian L. Grass: Ron Revlon and Karl Smith.

Brian L. Grass: Growth was partially offset by declines in Honeywell Biggs pure and hot tools.

Brian L. Grass: Gross profit margin improved 570 basis points to 49% compared to 43, 3% in the same period last year, just slightly above our expectations for the quarter.

Brian L. Grass: Year over year improvement was due to lower inbound freight and commodity costs.

Brian L. Grass: Thank you, Noel. I'm pleased to report fourth quarter results that again exceeded our expectations. We delivered net sales and adjusted EPS ahead of our outlook. We expanded gross profit and adjusted EBITDA margins, and our business continues to generate strong free cash flow. As Noel mentioned, fourth quarter consolidated net sales increased one percent despite unfavorable impacts from skew rationalization and the bankruptcy of Bed Bath & Beyond, driven by growth from Oxo, Hydro Flask, Osprey, Dry Bar, Braun, Red Lawn, and Curlsmith.

Brian L. Grass: The decrease in inventory reserve expense.

Brian L. Grass: Lower trade discount promotional program expense and a more favorable product mix within beauty and wellness, including the benefits of SKU rationalization.

Brian L. Grass: These factors were partially offset by a less favorable customer and product mix within home and outdoor.

Brian L. Grass: GAAP operating margin for the quarter was 13, 5% compared to 11, 1% in the same period last year.

Brian L. Grass: On an adjusted basis operating margin increased 320 basis points to 17%.

Brian L. Grass: The increase was driven by the gross profit improvement I just referred to.

Brian L. Grass: Partially offset by increased marketing investment higher annual incentive compensation expense and higher expense associated with the ramp up of our Tennessee distribution facility.

Brian L. Grass: Growth was partially offset by declines in Honeywell, Vicks, Pure, and Hot Tools. Gross profit margin improved 570 basis points to 49% compared to 43.3% in the same period last year, just slightly above our expectations for the quarter. Year-over-year improvement was due to lower inbound freight and commodity costs, a decrease in inventory reserve expense, lower trade discount and promotional program expense, and a more favorable product mix within beauty and wellness, including the benefits of SKU rationalization. These factors were partially offset by a less favorable customer and product mix within home and outdoor.

Brian L. Grass: On a segment basis home and outdoor adjusted operating margin increased 160 basis points to 18, 7% driven.

Brian L. Grass: Driven by lower commodity and inbound freight costs lower trade discount and promotional program expense and a decrease in inventory reserve expense.

Brian L. Grass: These factors were partially offset by higher expense associated with the ramp up of our Tennessee distribution facility, an increase in annual incentive compensation expense and a less favorable customer and product mix.

Adjusted operating margin for beauty and wellness increased 440 basis points to 15, 6%.

Brian L. Grass: GAAP operating margin for the quarter was 13.5%, compared to 11.1% in the same period last year. On an adjusted basis, operating margin increased 320 basis points to 17%. The increase was driven by the gross profit improvement I just referred to, partially offset by increased marketing investment, higher annual incentive compensation expense, and higher expenses associated with the ramp-up of our Tennessee distribution facility. On a segment basis, home and outdoor adjusted operating margin increased 160 basis points to 18.7 percent, driven by lower commodity and inbound freight costs, lower trade discount promotional program expense, and a decrease in inventory reserve expense.

Brian L. Grass: Driven by lower inbound freight.

Brian L. Grass: A decrease in inventory reserve expense.

Brian L. Grass: Lower trade discount promotional program expense.

Brian L. Grass: Decreased distribution expense.

Brian L. Grass: And a more favorable product mix, including the benefits of SKU rationalization.

Brian L. Grass: These factors were partially offset by an increase in marketing investment and higher annual incentive compensation expense.

Brian L. Grass: Net income was $42 $7 million or $1 79 per diluted share.

Brian L. Grass: non-GAAP adjusted diluted EPS grew 21, 9% to $2 45 per share primarily due to higher adjusted operating income in both segments lower interest expense higher interest income and lower shares outstanding partially offset by an increase in the adjusted effective tax rate.

Brian L. Grass: These factors were partially offset by higher expenses associated with the ramp-up of our Tennessee distribution facility, an increase in annual incentive compensation expense, and a less favorable customer and product. Adjusted operating margin for beauty and wellness increased 440 basis points to 15.6%, driven by lower inbound freight and a decrease in inventory reserve expense. Lower Trade Discount Promotional Program Expense, decreased distribution expense, and a more favorable product mix, including the benefits of skew rationalization. However, these factors were partially offset by an increase in marketing investment and higher annual incentive compensation expense.

Brian L. Grass: We continued to generate strong cash flow with cash from operations of $73 6 million in the fourth quarter in line with our expectations.

Brian L. Grass: Yeah.

Brian L. Grass: We ended the quarter with total debt of $666 million, a decrease of $269 million compared to fiscal 'twenty three.

Brian L. Grass: Our net leverage ratio was two times compared to two eight times at the same time last year.

Brian L. Grass: Stepping back to look at the full fiscal year I am pleased with the consistency of our financial performance and our ability to meet or exceed our full year outlook commitments, including net sales adjusted EBITDA margin interest expense adjusted EPS free cash flow and ending net leverage ratio.

Brian L. Grass: I'm also pleased with the improved performance and year over year sales and other key measures throughout the course of the year.

Brian L. Grass: While full year consolidated sales declined three 3%. This included the year over year declines from SKU rationalization and the bed Bath <unk> beyond bankruptcy of approximately three 4% combined.

Brian L. Grass: Net income was $42.7 million, or $1.79 per diluted share. Non-GAAP-adjusted diluted EPS grew 21.9% to $2.45 per share primarily due to higher adjusted operating income in both segments, lower interest expense, higher interest income, and lower shares outstanding, partially offset by an increase in the adjusted effective tax rate. We continue to generate strong cash flow with cash from operations of $73.6 million in the fourth quarter, in line with our expectations. We ended the quarter with total debt of $666 million, a decrease of $269 million compared to fiscal 2023. Our net leverage ratio was two times, compared to 2.8 times at the same time last year.

Brian L. Grass: And was slightly ahead of our full year outlook.

Brian L. Grass: We improved gross margin by 390 basis points, driven by lower inbound freight SKU rationalization lower inventory reserve expense and.

Brian L. Grass: The favorable comparative impact of EPA compliance costs incurred in the prior year.

Brian L. Grass: We improved adjusted EBITDA margin by 100 basis points, despite structural headwinds and lower operating leverage even as we increased our marketing investment $10 million beyond our original target.

Brian L. Grass: We generated free cash flow of $269 4 million, reaching the high end of our outlook, which helped US beat our original interest expense expectations make $50 million of share repurchase not included in our original outlook and still end the year with leverage in line with expectations.

Brian L. Grass: Stepping back to look at the full fiscal year, I'm pleased with the consistency of our financial performance and our ability to meet or exceed our full-year outlook commitments, including net sales, adjusted EBITDA margin, interest expense, adjusted EPS, free cash flow, and ending net leverage ratio. I'm also pleased with the improved performance in year-over-year sales and other key measures throughout the course of the year. While full-year consolidated sales declined 3.3%, this included the year-over-year declines from skew rationalization and the Bed Bath & Beyond bankruptcy of approximately 3.4% combined, and we're slightly ahead of our full-year outlook. We improved gross margin by 390 basis points, driven by lower inbound freight, skew rationalization, lower inventory reserve expense, and the favorable comparative impact of EPA compliance costs incurred in the prior year.

Brian L. Grass: Finally, we made progress in our efforts to optimize our brand portfolio through potential divestiture and are actively engaged in a process that we hope to complete in the second quarter of fiscal 'twenty five.

Brian L. Grass: The likelihood timing and potential impact of the divestiture cannot be reasonably estimated at this time and therefore is not included in our outlook.

Brian L. Grass: We will make an announcement when we have more to share and lifted divestiture does occur we will update our outlook at that time.

Brian L. Grass: Fiscal 'twenty five against our elevate for growth era, which provides our strategic roadmap through fiscal <unk> we.

Brian L. Grass: We intend to further leverage our operational scale and assets, including our state of the art, Tennessee distribution Center.

Brian L. Grass: The go to market structure with the North America, RMS and our expanded shared service capabilities to grow organic sales further expand margins and deploy capital through strategic acquisitions share repurchases and capital structure management.

Brian L. Grass: Turning to our full year outlook for fiscal 'twenty five we have factored in a number of variables, including our view of lingering inflation interest.

Brian L. Grass: We improved adjusted even margin by 100 basis points despite structural headwinds and lower operating leverage, even as we increased our marketing investment $10 million beyond our original target. We generated free cash flow of $269.4 million, reaching the high end of our outlook, which helped us beat our original interest expense expectations, make $50 million of share repurchase not included in our original outlook, and still end the year with leverage in line with expectations.

Brian L. Grass: Interest rates that are higher for longer.

Brian L. Grass: Lower growth expectations from certain retailers.

Brian L. Grass: Softer consumer that is further prioritizing their more limited discretionary spend on experiences and services.

Brian L. Grass: And the cough cold flu season in line with pre Covid historical averages.

Brian L. Grass: In terms of retail inventory, while we see pockets of higher weeks on hand, and some of our categories. We believe retail inventory is healthy overall and we generally expect sell in to closely match sell through.

Brian L. Grass: With the fuel from Pegasus the operational improvements we've made in our elevate for growth strategies. We believe we are well positioned to navigate what we expect will be a softer consumer spending environment.

Brian L. Grass: Finally, we made progress in our effort to optimize our brand portfolio through a potential divestiture and are actively engaged in a process that we hope to complete in the second quarter of Fiscal 25. However, the likelihood, timing, and potential impact of the divestiture cannot be reasonably estimated at this time and therefore are not included in our outlook.

Brian L. Grass: We expect net sales between $1 96, 5 billion and $2 <unk> 5 billion in fiscal 'twenty, five which implies a decline of 2% to growth of 1%.

Brian L. Grass: We will make an announcement when we have more to share, and if the divestiture does occur, we will update our outlook at that time. Fiscal 25 begins our Elevate for Growth era, which provides our strategic roadmap through Fiscal 30. We intend to further leverage our operational scale and assets, including our state-of-the-art Tennessee Distribution Center, improved go-to-market structure with the North America RMO, and our expanded shared service capabilities to grow organic sales, further expand margins, and deploy capital through strategic acquisitions, share repurchases, and capital structure management.

Brian L. Grass: In terms of our net sales outlook by segment, we expect home and outdoor growth of 1% to 4% in the beauty and wellness decline of four and a half to one 5%.

Brian L. Grass: Which includes a year over year headwind of approximately 1% related to the exploration of an out license relationship of one of our wellness brands.

Brian L. Grass: We expect GAAP diluted EPS of $6 68 to.

Brian L. Grass: To $7 45 for the full year and non-GAAP adjusted diluted EPS in the range of $8 70 to $9 20.

Brian L. Grass: Turning to our full-year outlook for Fiscal 25, we have factored in a number of variables, including our view of lingering inflation, interest rates that are higher for longer, lower growth expectations from certain retailers, a softer consumer that is further prioritizing their more limited discretionary spend on experiences and services, and the cough-cold-flu season in line with the pre-COVID historical average. In terms of retail inventory, while we see pockets of higher weeks on hand in some of our categories, we believe retail inventory is healthy overall, and we generally expect sell-in to closely match sell-through.

Brian L. Grass: Which implies an adjusted diluted EPS decline of two 4% to growth of three 3%.

Brian L. Grass: We expect adjusted EBITDA margins to decline roughly 40 basis points.

Brian L. Grass: As benefits from peg assists in other gross profit improvements are reinvested for growth.

Brian L. Grass: You see the current softness in the environment as an opportunity to further invest in the health of our brands and grow our market share.

Brian L. Grass: As such our outlook reflects a year over year increase in growth investment spending of roughly 100 basis points on top of an increase of 100 basis points in fiscal 'twenty four.

Brian L. Grass: With the fuel from Pegasus, the operational improvements we've made, and our Elevate for Growth strategies, we believe we are well positioned to navigate what we expect will be a softer consumer spending environment. We expect net sales between $1.965 billion and $2.025 billion in fiscal 2025, which implies a decline of 2% to growth of 1%. In terms of our Net Sales Outlook by segment, we expect home and outdoor growth of 1%-4% and a beauty and wellness decline of 4.5%-1.5%, which includes a year-over-year headwind of approximately 1% related to the expiration of an out-licensed relationship with one of our wellness brands.

Brian L. Grass: Our adjusted EBITDA outlook also includes a year over year headwind of approximately 50 basis points from the exploration of the out license relationship I referred to earlier.

Brian L. Grass: And some expected margin compression from enterprise technology initiatives included in the elevated for growth strategic plan that are beginning in fiscal 'twenty five.

Brian L. Grass: In terms of project Pegasus, we have updated our expectations to reflect the choices, we are making to maximize the benefits of these initiatives, while minimizing the transitional risk.

Brian L. Grass: We're maintaining the total estimated savings of $75 million to $85 million over the duration of the plan, but have revise the cadence of estimated savings recognition now extending into fiscal 'twenty seven.

Brian L. Grass: We expect GAAP diluted EPS of $6.68 to $7.45 for the full year and non-GAAP adjusted diluted EPS in the range of $8.70 to $9.20, which implies an adjusted diluted EPS decline of 2.4% to growth of 3.3%. We expect adjusted EBITDA margins to decline roughly 40 basis points, as benefits from Pegasus and other gross profit improvements are reinvested for growth. We see the current softness in the environment as an opportunity to further invest in the health of our brands and grow our market share.

Brian L. Grass: After achieving our fiscal 'twenty for Pegasus targets, we now expect the savings in fiscal 'twenty five to be approximately 35% of the total and.

And the balance of savings to fall across fiscal 'twenty, six and 'twenty seven.

Brian L. Grass: We're also lowering the total estimated restructuring charges by $10 million, we now expect onetime pretax restructuring charges of approximately $50 million to $55 million over the duration of the plan.

Brian L. Grass: Compared to our previous estimate of $60 million to $65 million.

Brian L. Grass: We continue to expect restructuring charges to be completed during fiscal 'twenty five.

Brian L. Grass: As such, your outlook reflects a year-over-year increase in growth investment spending of roughly 100 basis points, on top of an increase of 100 basis points in fiscal 24. Our Adjusted EBITDA Outlook also includes a year-over-year headwind of approximately 50 basis points from the expiration of the out-license relationship I referred to earlier and some expected margin compression from enterprise technology initiatives included in the Elevate for Growth strategic plan that are beginning in Fiscal 25. In terms of Project Pegasus, we have updated our expectations to reflect the choices we are making to maximize the benefits of these initiatives while minimizing transitional risk.

Brian L. Grass: We expect a GAAP effective tax rate range of 19% to 21% for the full fiscal year and our non-GAAP adjusted tax rate range of $17 two to 18, 3%.

Brian L. Grass: We expect capital intangible asset expenditures of between 30, and 35 million for fiscal 'twenty, five which includes remaining equipment and technology of approximately $8 million associated with our new Tennessee distribution facility.

Brian L. Grass: And initial capital expenditures related to the first phase of enterprise technology initiatives I referred to earlier.

Brian L. Grass: We expect free cash flow in the range of $255 million to $275 million.

Brian L. Grass: We are maintaining the total estimated savings of $75 to $85 million over the duration of the plan but have revised the cadence of estimated savings recognition, now extending into Fiscal 27. After achieving our Fiscal 24 Pegasus targets, we now expect the savings in Fiscal 25 to be approximately 35% of the total and the balance of savings to fall across Fiscal 26 and 26. We are also lowering the total estimated restructuring charges by $10 million.

Brian L. Grass: And adjusted EBITDA of $324 million to $331 million.

Brian L. Grass: Net leverage ratio as defined in our credit agreement is expected to be between 125 times and one times by the end of fiscal 'twenty five.

Brian L. Grass: In terms of quarterly cadence for sales, we expect a decline of approximately 7% to 5% in the first quarter of fiscal 'twenty fives and.

Brian L. Grass: In a range of flat to 3% growth for each of the remaining quarters.

Brian L. Grass: We expect a slight decline in adjusted EPS for the first half of fiscal 'twenty five.

Brian L. Grass: We now expect one-time pre-tax restructuring charges of approximately $50 to $55 million over the duration of the plan, compared to our previous estimate of $60 million to $65 million. We continue to expect restructuring charges to be completed during Fiscal 25. We expect a gap effective tax rate range of 19-21% for the full fiscal year and a non-gap adjusted tax rate range of 17.2-18.3%.

Brian L. Grass: With the decline of approximately 15% to 20% in the first quarter.

Brian L. Grass: And nearly offsetting growth in the second quarter.

Brian L. Grass: We expect adjusted EPS in the range of flat to 5% growth in the second half of fiscal 'twenty five.

Brian L. Grass: In summary, we're pleased to provide an outlook for both net sales and adjusted EPS growth at the high end of our range.

Brian L. Grass: Further implied gross margin expansion a significant increase in growth investment strong free cash flow further balance sheet productivity and capital deployment Optionality.

Brian L. Grass: We expect capital and intangible asset expenditures of between $30 and $35 million for Fiscal 2025, which includes remaining equipment and technology of approximately $8 million associated with our new Tennessee distribution facility and initial capital expenditures related to the first phase of enterprise technology initiatives I referred to earlier. We expect free cash flow in the range of $255 to $275 million, and to Justin Iveda of $324 to $331 million. The net leverage ratio, as defined in our credit agreement, is expected to be between 1.25 times and 1 times by the end of Fiscal 25.

Brian L. Grass: Our free cash flow outlook at the high end of the range implies a forward free cash flow yield of 11, 6% using monday's market capitalization.

Brian L. Grass: Our adjusted EBITDA outlook at the high end of the range implies an EV to forward EBITDA multiple of nine one times using monday's market capitalization and our outstanding debt at the end of fiscal 'twenty four.

Brian L. Grass: We believe these are compelling metrics with strong underlying business fundamentals to compare favorably with our peer set and the market overall.

Speaker Change: And finally, I want to close by recognizing and congratulating Jack Janssen on his retirement after a distinguished career.

Speaker Change: I've been fortunate to work with Jac for almost 20 years now and have long admired his wisdom leadership charm and sense of humor.

Brian L. Grass: In terms of quarterly cadence of sales, we expect a decline of approximately 7-5% in the first quarter of Fiscal 25, with a range of flat to 3% growth for each of the remaining quarters. We expect a slight decline in adjusted EPS for the first half of Fiscal 25, with a decline of approximately 15-20% in the first quarter and nearly offsetting growth in the second quarter.

Speaker Change: His contributions to Helen of Troy are measurable and he will be missed.

Speaker Change: I'm happy for him and all the boats he will soon need.

Jack I can only hope that you are better at retirement than I was.

Speaker Change: With that I'll turn it back to the operator for questions.

Speaker Change: Thank you we will now be conducting a question and answer session.

Speaker Change: I'd like to ask a question. Please press star one on your telephone keypad.

Speaker Change: A confirmation tone will indicate your line is in the question queue you.

Brian L. Grass: We expect a just DPS in the range of flat to 5% growth in the second half of FY25. In summary, we are pleased to provide an outlook with both net sales and adjusted EPS growth at the high end of our range. Further implied gross margin expansion, a significant increase in growth investment, strong free cash flow, further balance sheet productivity, and capital deployment optionality. Our free cash flow outlook at the high end of the range implies a forward free cash flow yield of 11.6% using Monday's market capitalization.

Speaker Change: You May press Star two if you would like to remove your question from the queue.

Speaker Change: For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys, one moment, please while we poll for questions.

Speaker Change: Thank you. Our first question comes from the line of Peter Grom with UBS. Please proceed with your question.

Peter K. Grom: Thanks, operator, and good morning, everyone, maybe just to start Jack. Thank you so much for all the help over the years, but we wish you nothing about the best of luck moving forward.

Peter K. Grom: Maybe just turning to the questions here and I guess, a couple of questions about the 25 outlook just in the context of <unk>.

Peter K. Grom: What was outlined at the Investor day, and I totally understand that this is never supposed to be are never considered to be guidance, but just going back to that slide that shows the tailwind or the building blocks of growth. There was a lot of us really expected to break your way. This year. So can you maybe just help us understand what's really changed versus October.

Brian L. Grass: Our adjusted EBIT outlook at the high end of the range implies an EV to forward EBIT multiple of 9.1 times using Monday's market capitalization and our outstanding debt at the end of fiscal 24. We believe these are compelling metrics with strong underlying business fundamentals that compare favorably with our peer set and the market overall.

Peter K. Grom: And then just maybe a follow up to that just kind of would love some perspective on the degree of comfort you have in guidance at this point right. It's not lost on many of those also hanging back oftentimes with the management transition, sometimes the outlook, Kevin that a bit more flexibility. So just in the context of the phasing that seems to imply an improvement following a challenging one.

Brian L. Grass: And finally, I want to close by recognizing and congratulating Jack Jancin on his retirement after a distinguished career. I've been fortunate to work with Jack for almost 20 years now, and I have long admired his wisdom, leadership, charm, and sense of humor. His contributions to Helen of Troy are immeasurable, and he will be missed, but I'm happy for him and all the ships he will soon meet. Jack, I can only hope that you're better at retirement than I was. And with that, I'll turn it back to the operator for questions.

Peter K. Grom: Can you maybe just discuss your comfort or visibility you Ms outlook is achievable just kind of given the operating backdrop. Thanks.

Operator: Thank you. We will now be conducting our question and answer session. If you would like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star 2 if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys.

Peter K. Grom: Okay, Peter it's Brian and I'm going to start in a while can build.

Brian L. Grass: I'd say.

Brian L. Grass: Look let's take this in sequence, let's start with Q1, and then we can talk about the whole year and the factors that are there the whole year and then I'll go into you know what gives us confidence that we can hit that outlook with respect to Q1.

Brian L. Grass: We're now we now know how the cough cold flu season played out we did not know that when we had investor day in October and based on the way. It's played out we are expecting reduced replenishment orders in Q1, and that's what we've seen so far versus the same period last year. When there was a stronger season and it drove solid work.

Operator: One moment, please, while we poll for questions. Thank you. Our first question comes from the line of Peter Grom with UBS. Please proceed with your question.

Brian L. Grass: Shipment in Q1 of last year.

Peter K. Grom: Thanks, Operator. Good morning, everyone.

<unk> also seen pockets of higher inventory and the outdoor channel both domestically and internationally and so it will take a period of time to work through that inventory and then we have seen some speed bumps and shipments during Q1, resulting from the system integration of Pearl Smith and certain other DTC platform.

Peter K. Grom: Maybe just to start, Jack, you know, thank you so much for all the help over the years, and we wish you nothing but the best of luck moving forward. Maybe just, you know, turning to the questions here, and I guess a couple questions about the 25 outlook, just in the context of what was outlined at the investor day, and I totally understand that this was never supposed to be or never considered to be guidance, but just going back to that slide that shows the tailwinds or the buildings, lots of growth, there was a lot that was really expected to break your way this year, so can you maybe just help us understand what's really changed versus October, and then just maybe a follow-up to that, you know, just kind of, we'd love some perspective on the degree of comfort you have in the guidance at this point, right?

Brian L. Grass: Enhancements, but.

Brian L. Grass: But we believe we're largely past those speed bumps now and then some additional factors that impacted the full year again, a lot of these where we were not aware of in October.

Brian L. Grass: We've shared in other manufacturers and retailers retailers of all subsided and increasingly soft consumer environment.

Brian L. Grass: That was really a.

Brian L. Grass: A bit of a change versus what we saw in October.

Brian L. Grass: And hopefully you've also seen lower growth expectations from certain retailers like Ulta Amazon.

Brian L. Grass: Amazon target.

Brian L. Grass: Which have all come out with recent reports.

Peter K. Grom: It's not lost on many of those listening that sometimes with management transitions, the outlook can embed a bit more flexibility, so just in the context of the phasing that seems to imply an improvement following a challenging 1Q, can you maybe just discuss your comfort or visibility of this outlook as achievable, just kind of given the operating backdrop? Thanks.

Brian L. Grass: We also had an expiration of an out license relationship on one of our brands.

Brian L. Grass: That we licensed the trademark to in exchange for royalty income and that has a meaningful impact on revenue and <unk>.

Brian L. Grass: Earnings.

Brian L. Grass: Okay, Peter, it's Brian, and I'm going to start, and Noel can build. I'd say... Look, let's take this in order and start with Q1, and then we can talk about the whole year and the factors that are there for the whole year, and then I'll go into what gives us confidence that we can hit that outlook. With respect to Q1, we now know how the cough, cold, and flu season played out. We did not know that when we had it last October, and based on the way it's played out, we are expecting reduced replenishment orders in Q1, and that's what we've seen so far versus the same period last year when there was a stronger season, and it drove solid replenishment in Q1 of last year.

Brian L. Grass: Actively dropped straight to the bottom line with respect to earnings and again that is not something.

Brian L. Grass: We have complete visibility on when we gave investor day.

Brian L. Grass: Long term guidance are glad <unk> pointed out it was long term and not fiscal 'twenty five long term guidance in October.

Brian L. Grass: And then lastly, what gives us confidence in improvement in in kind of the last three quarters of the year. We know we have incremental distribution that will layer in throughout the year and will actually build so it's a building built kind of building layers of distribution throughout the year.

Brian L. Grass: In terms of absolute marketing spend Q1 is our lowest level of spend and so we anticipate the benefit of that incremental investment will accelerate over the course of the year. So there will be more spanned over the course of the year, which will drive we believe more volume.

Brian L. Grass: We've also seen pockets of higher inventory in the outdoor channel, both domestically and internationally, and so it will take a period of time to work through that inventory. And then we have seen some speed bumps in shipments during Q1 resulting from the system integration of Pearlsmith and certain other DTC platform enhancements, but we believe we're largely past those speed bumps now. And then some additional factors that impact the full year, again, a lot of these we were not aware of in October. You know, we've shared, and other manufacturers and retailers have also cited an increasingly soft consumer environment. That was really a bit of a change versus what we saw in October.

Brian L. Grass: We're doing repositioning on key brands like hydro flask and dry bar, but that is still early on and it will take time to build momentum behind those efforts.

Brian L. Grass: And then we have new product innovation and refreshes weighted to quarters two through four so those layer in later in the quarter and then again, we saw speed bumps in shipments in Q1 as a result of system work that we were doing that we don't expect in the later quarters. So that that's kind of the high level.

Brian L. Grass: And hopefully, you've also seen lower growth expectations from certain retailers like Ulta, you know, Amazon, Target, which have all come out with recent reports. We also had an expiration of an out-licensed relationship on one of our brands that we licensed a trademark to in exchange for royalty income, and that had a meaningful impact on revenue and earnings. It effectively dropped straight to the bottom line with respect to earnings.

Brian L. Grass: A summary of our <unk>.

Brian L. Grass: Entire fiscal 'twenty five outlook with a little bit of comparison to what we saw in October versus what we're seeing now.

Speaker Change: That's really helpful I'll pass it on.

Speaker Change: Sorry go ahead Rob.

Brian L. Grass: Again, that is not something we had complete visibility on when we gave Investor Day long-term guidance. I'm glad you pointed out it was long-term and not fiscal 25 long-term guidance in October. And then lastly, what gives us confidence in improvement in the last three quarters of the year? We know we have incremental distribution that will layer in throughout the year and will actually build. It's kind of building layers of distribution throughout the year. In terms of absolute marketing spend, Q1 is our lowest level of spend.

Rob: I think Brian covered it covered it well I think we you know I feel.

Rob: Especially in the last few levers that Brian pointed out on why better the rest of the year I feel.

Rob: A good degree of confidence on the incremental distribution in particular those.

Rob: Those are areas, where you have ongoing customer retailer conversations you look at their plan of ground timing et cetera. So.

Rob: Things things can change as the year goes along but visibility into those those things are.

Rob: Our our solid in my view.

Speaker Change: Great. Thank you so much I'll pass it on thank you.

Brian L. Grass: And so we anticipate the benefit of that incremental investment will accelerate over the course of the year. Thus, there will be more spending over the course of the year, which will drive, we believe, more volume. We're doing repositioning on key brands like Hydroflask and Drybar, but that is still early on, and it will take time to build momentum behind those efforts. And then we have new product innovation and refreshes weighted to quarters two through four.

Speaker Change: Our next question comes from the line of her past Creek with Oppenheimer. Please proceed with your question.

Herb Creek: Good morning, and thanks for taking my questions and also congrats and best wishes on retirement.

Speaker Change: So just starting out with the I guess the competitive promotional backdrop would just love to hear the way as you guys are seeing on the competitive promotional brought and then your expectations. This year just on the promotional backdrop.

Brian L. Grass: So those are later in the quarter. And then again, we saw speed bumps in shipments in Q1 as a result of system work that we were doing that we don't expect in later quarters. So that's kind of the high-level summary of our entire fiscal 25 outlook with a little bit of comparison to, you know, what we saw in October versus what we're seeing now.

Speaker Change: Yes, I can start again I mean in Q4, we actually had less promotional expense, but you know going into next year with the softer consumer.

Speaker Change: Yes, I think it's reasonable to expect that you could have pressure.

Peter K. Grom: That's really helpful. I'll pass it on.

Speaker Change: In terms of promotion and how will the competitive dynamic play out I mean, I think at this point in time, we feel comfortable with how we're positioned and we've made some adjustments honestly to position ourselves well and don't see a significant headwind, but again, that's one where the consumer or the customer competitive dynamics could change.

Noel Geoffroy: No, I was just going to say I think Brian covered it well. I think, you know, I feel, especially in the last few letters that Brian pointed out about kind of why it's better for the rest of the year. I feel a good degree of confidence in the incremental distribution in particular. You know, those are areas where you have ongoing customer retailer conversations, you look at their planet gram timings, etc. So, you know, things can change as the year goes along, but visibility to those things is solid, in my view.

Speaker Change: During the year and we'll have to adjust if you want to add yeah, I don't I don't see major shifts right now we continue to watch we continue to pay attention to what's out there as Brian mentioned.

Peter K. Grom: Great. Thank you so much. I'll pass it on. Our next question comes from the line of Rupesh Parikh with Oppenheimer. Please proceed with your question. Good morning and thank you.

Speaker Change: We made a few select adjustments on some of our hydro flask items as we looked across our assortment in some of the competitive assortment and found a few places that we thought we could be a bit sharper.

Operator: Our next question comes from the line of Rupesh Parikh with Oppenheimer. Please proceed with your question.

Speaker Change: But I don't see major other changes unless dynamics kind of evolve over the course of the year.

Rupesh Dhinoj Parikh: Yeah, I could start again. I mean, in Q4 we actually had less promotional expenses. But, you know, going into next year with the softer consumer, Yes, I think it's reasonable to expect that you could have pressure, you know, in terms of promotion and how the competitive dynamic will play out. I mean, I think at this point in time, we feel comfortable with how we're positioned and we've made some adjustments, honestly, to position ourselves well and don't see a significant headwind.

Speaker Change: And then my I guess my follow up question this year perhaps.

Speaker Change: For the fiscal year very strong gross margin improvement.

Speaker Change: Is there any color you can share in terms of gross margin expectations in the key puts and takes we should be thinking around the gross margin line.

Speaker Change: Yeah, I can give you some color where were.

Speaker Change: I try not to guide to specific gross profit guidance for fiscal 'twenty five but implied in our outlook is gross margin expansion and you can you can understand the extent debate. If you consider that we are we have a drag of 100 basis points.

Rupesh Dhinoj Parikh: But again, that's one where the consumer or the customer competitive dynamics could change during the year, and we'll have to adjust. Yeah, I don't see major shifts right now. We continue to watch, and we continue to pay attention to what's out there, as Brian mentioned.

Noel Geoffroy: Yeah, I don't I don't see major shifts right now. We continue to watch, and we continue to pay attention to what's out there. As Brian mentioned, we made a few select adjustments on some of our hydroflask items as we looked across our assortment and some of the competitive assortment and found a few places that we thought, you know, we could be a bit sharper. But I don't see any major other changes unless dynamics kind of evolve over the course of the year.

Speaker Change: Good too.

Speaker Change: Yeah.

Speaker Change: We called out in the earnings release, how we have the drags of 100 basis points on increased marketing investment for growth investment and then we have a 50 50 basis point compression coming from the loss of the out license relationship and then overall, our adjusted EBITDA margin.

Speaker Change: Is contracting only 40 basis points. So you at least we're having at least expansion of.

Brian L. Grass: Yeah, I can give you some color. We're trying not to give specific gross profit guidance for fiscal 25, but implied in our outlook is gross margin expansion. And you can understand the extent of it if you consider that we, you know, we have a drag of 100 basis points related to We called out in the earnings release how we have a drag of 100 basis points on increased marketing investment or growth investment, and then we have a 50 basis point compression coming from the loss of the out-license relationship.

Speaker Change: 110 basis points implied.

Speaker Change: Implied through those comments, where we're again, we're not doing specifics with respect to gross margin, but hopefully you get some idea of the dimensionality of the gross margin expansion for fiscal 'twenty five.

Speaker Change: Great. Thank you all possible.

Speaker Change: Okay.

Speaker Change: Our next question comes from the line of Robert <unk> with CJS Securities. Please proceed with your question.

Brian L. Grass: And then overall, our adjusted EBITDA margin is contracting only 40 basis points, so we're having at least an expansion of 110 basis points implied through those comments. Again, we're not doing specifics with respect to gross margin, but hopefully, you get some idea of the dimensionality of the gross margin expansion for Fiscal 25.

Speaker Change: Hi, This is Justin on for Robert.

Justin: So you know going back to the analyst day, one of the messages are key messages and our view was your ability to ratchet investment spending up and down depending on the macro environment and other factors to achieve.

Operator: Our next question comes from the line of Robert Lewick with CJS Securities. Please proceed with your question.

Justin: Steady bottomline growth.

Justin: Given the revenue outlook that you've laid out. This morning, why do you think fiscal 'twenty five is the right time to ramp up growth investments spending by 100 bps. In addition to the incremental spend included in your elevate for growth plans.

Justin: Hi, This is Justin on for Robert. So, you know, going back to the analyst, one of the messages or key messages, in our view, was your ability to ratchet investment spending up and down depending on the macro environment and other factors to achieve, you know, steady bottom line growth. So, given the revenue outlook that you laid out this morning, why do you think fiscal 25 is the right time to ramp up growth investment spending by 100 bps in addition to the incremental spend included in your Elevate for Growth plans?

Justin: Yeah, I think as we looked at.

Justin: Our brands and the need to be.

Justin: A mind aware build top of mind awareness be available where our key shoppers are shopping we needed to put some investment I mean now in my view now is the time in these kind of trough consumer environments. These are the moments when you need to really invest in the strength of your brands.

Noel Geoffroy: Yeah, I think, you know, as we looked at our brands and the need to be, you know, top of mind aware, you know, build top of mind awareness, be available where our key shoppers are shopping, we needed to put some investment in now. In my view, now is the time in these kind of tough consumer environments; these are the moments when you need to really invest in the strength of your brands. And so, you know, the 100 basis point investment comes out of the fuel from Project Pegasus, and we will use the portfolio. The following sentences use commas to indicate a definite meaning:

Justin: And so the 100 basis point investment is.

Justin: It comes out of the fuel from project Pegasus.

Justin: And where are we will use the portfolio.

Justin: The new portfolio strategy that we laid out so we'll lean in to those brands and invest in the areas that we think the ROI is very good we'll adjust throughout the year based on how the return on investment is playing out how the responsiveness of the brands.

Our playing out but we believe this is the right time to invest and the strength and the health of our brands.

Speaker Change: The other thing I would add is that there are less peg a savings expected for fiscal 'twenty five that did factor into kind of the algorithm and with less savings.

Brian L. Grass: The other thing I would add is that there are less Pegasus savings expected for Fiscal 25 that factor into kind of the algorithm, and with less savings, you know, there's more compression, but I agree with Noel that now is the right time to do it. So we get a little leakage in terms of EPS, but again, the right thing to do, and we have no concerns about our ability to ultimately achieve the Pegasus savings, which will come a little bit later, and it's really tied to a piece of technology development that is taking a little bit longer to get that developed and in place, but we're comfortable that we're going to get there.

Speaker Change: There's more compression, but I agree with Noel now is the right time to do it. So we get a little leakage in terms of of EPS, but again, the right thing to do and we have no concerns about our ability to ultimately achieve the Pegasus savings will just come a little bit later, and it's really tied to a piece of technology developed.

Speaker Change: That is taking a little bit longer to get that developed and in place, but we're comfortable that we're going to get there.

Speaker Change: Alright, I appreciate the additional color there and then one more follow up.

Justin: I appreciate the additional color there. And then, one more follow-up question, you know, your guidance calls for healthy cash flow generation, and your target leverage of one and a quarter to one at the end of the year. I assume, you know, that's exclusive of any potential buybacks. And then, you know, along those lines, you could talk about your willingness to be opportunistic and aggressive, repurchasing shares, you know, particularly in light of this modest leverage and, you know, possible share price weakness this morning.

Speaker Change: Your guidance calls for healthy cash flow generation in your target leverage of one and a quarter to one at the end of the year I assume that's exclusive of any potential buybacks and then along those lines could you talk about your willingness to be opportunistic and aggressive repurchasing shares, particularly in light of this.

Speaker Change: Modest leverage.

Speaker Change: Possible share price weakness this morning.

Speaker Change: Yes, yes, that's correct that our outlook does not include the impact of any share repurchase, but I would say our mindset is that we are open to buy with respect to capital deployment.

Brian L. Grass: Yes, that's correct that our outlook does not include the impact of any share repurchase, but I would say our mindset is that we're open to buy with respect to capital deployment, which would include share repurchase, and we're looking at acquisitions as well. So I think we are in a position, balance sheet-wise, where we're interested in deploying capital.

Speaker Change: Which would include share repurchase and we're looking at acquisitions as well. So I think we are in a position balance sheet wise, where we're interested in deploying capital.

Speaker Change: Alright, I appreciate you taking my questions. Thank you.

Justin: I appreciate you taking the questions. Thank you.

Speaker Change: Our next question comes from the line of Linda Bolton Weiser with D. A Davidson. Please proceed with your question.

Operator: Our next question comes from the line of Linda Bolton Weiser with D.A. Davidson. Please proceed with your question.

Speaker Change: Yes, hi.

Linda Ann Bolton: Yes, hi. So... Can you talk about... just the beauty area? I think you said that Hot Tools was down in FY 24, and yet you had the consumables launch that would have helped that brand. So can you talk about that a little bit more? And are consumables now ending the exclusivity at Ulta? So will you be expanding it? And then I thought you said beauty was up in the fourth quarter. So, kind of what were the roots of beauty being up in the fourth quarter, if I caught that correctly? Thank you.

Speaker Change:

Speaker Change: So.

Speaker Change: Can you talk about.

Speaker Change: Just the beauty area.

Speaker Change: I think you said that hot tool was.

Speaker Change: One on FY 'twenty, four and yet you'll have the consumables laws that would have helped that brand. So can you talk about that a little bit more.

Speaker Change: And as the consumables now ending the exclusivity at Altra also will you be expanding it and then I thought you said beauty was up in the fourth quarter, so kind of what where the roots of the beauty being up in the fourth quarter, if I caught that correctly. Thank you.

Brian L. Grass: Hi Linda, it's Brian. I want to start because I want to clarify.

Speaker Change: Hi, Linda it's Brian I want to start because I want to clarify we called out hot tools being down in the quarter, but it was up for the full fiscal year. So I just want to get that clear I don't know if you like.

Noel Geoffroy: We called out Hot Tools being down in the quarter, but it was up for the full fiscal year. So I just want to get that clear. Yeah, and I think driven by, as you pointed out Linda, the launch of the liquids in addition to the tools drove Hot Tools up for the year. In terms of that line, it does continue to be at Ulta. We did continue to work with them to expand some of the end caps, etc., on the Hot Tools liquids.

Brian L. Grass: I think and.

Brian L. Grass: Driven by as you pointed out Linda the you know the launch of the liquids. In addition to the tools drove hospitals up for for the year.

Brian L. Grass: And.

Brian L. Grass: In terms of that line is it does continue to be at Ulta, We did.

Brian L. Grass: Continue to work with them to expand some of the untapped et cetera on the hospitals liquids and we are now looking to expand that further into other retail and other retail customers in terms of the broader hair tools I think.

Noel Geoffroy: And we are now looking to expand that further into other retail customers. I maintain that consumer-centric innovation across our portfolio of brands. We have Revlon, Hot Tools, Drybar, and now CurlSmith, so we really hit that good, better, best, which is a great position to be in in the world of the current consumer environment. We can meet the full range of consumer needs. Revlon offers consumers great value. Our Revlon Volumizer is still the number one hot air styling tool in the market.

Brian L. Grass: I maintain a consumer centric innovation across our portfolio of brands, we have Revlon and hot tools drive are an outgrowth met so we really hit that good better best which is a great position to be in and in a world of kind of the current consumer environment. We can meet the full range of consumer needs Ravelin offers consumers at great value.

Brian L. Grass: You are a revlon volumize or is still the number one hot air Sterling Island tool in the market.

Noel Geoffroy: It's a price point that's much more accessible, plus we have a whole range of other appliances that have done well for us, and mass retailers, in particular. And then on the higher end, as I mentioned in my remarks, one of our newest innovations, the Drybar Roller Club, the hot rollers, have done well for us. We just launched them in February, and they've already become our top-selling tool in some of the beauty retailers. So it's a good example of how when you meet the range of needs with the range of brands that you have, you can cover the market and start to get the right momentum going.

Brian L. Grass: A price point, that's much more accessible plus we have a whole range of other appliances that have done well for us in mass retailers in particular, and then on the higher end I mentioned in my remarks.

Brian L. Grass: One of our newest innovations that drive our roller cloud the hot roller have.

Brian L. Grass: I have done well for us we just launched them in February and it has already become our top selling tool and some of the BD retailer. So it's a good example of how when you meet the range of needs with a range of brands that you have you can you can cover the market and start to get the right momentum going.

Speaker Change: Thanks, and then in terms of you referred to some speed bumps that affected shipping in the fiscal first quarter. It sounds like they were very specific thing is there any way to quantify the speed bump impact on revenue in the first quarter of 'twenty five and then is there any of that revenue.

Linda Ann Bolton: Thanks. And then in terms of you referring to some speed bumps that affected shipping in the fiscal first quarter, it sounds like they were very specific things. Is there any way to quantify the speed bump impact on revenue in the first quarter of fiscal 25? And then is any of that revenue just delayed revenue, or is it completely lost due to these speed bumps that you had in shipments in the first quarter?

Speaker Change: This delayed revenue or is that completely lost due to the speed bumps that you had in shipments in first quarter.

Brian L. Grass: Yeah, Linda, we still work through system things. I don't think it would make a lot of sense to try and be so precise in terms of quantification. But yes, we were specific, and it was isolated to two or three areas where, in Curlsmith, we are integrating that business into our ERP system and are effectively done with that integration. We're working out the kinks right now.

Speaker Change: Yeah, Linda I mean, we're we still work through system things I don't think it would make a lot of sense to try and be so precise in terms of quantification, but yes, we were specific and it was isolated to.

Speaker Change: Two or three areas, where and Karl Smith.

Speaker Change: Integrating that business into our ERP system, and and are effectively done with that integration, we're working out the kinks right now, but as we went through that.

Brian L. Grass: But as we went through that, we did get some speed bumps in terms of shipments, and I would say at this point in time, our view is that we probably won't recapture those shipments. So I would say retailers will buy back what they need, but they're not going to overbuy and recoup what we weren't able to ship in the first quarter. And then on the DTC, you probably are aware of the brands where we have the highest DTC presence.

Did get some speed bumps in terms of shipments and I would say at this point in time our view. It is that we're probably won't recapture those shipments. So I would say that hey, you know retailers will buy buyback what they need but we're not they're not gonna overbuy and kind of recoup what what we weren't able to ship in the first quarter.

Speaker Change: And then in the DTC.

Speaker Change: You probably are aware the deep the brands, where we have the highest DTC presence, we upgraded the platform in one of our businesses and you know again working through things.

Brian L. Grass: We upgraded the platform in one of our businesses, and again, we are working through things there and likely won't recoup lost volume there. And then the other business was really just instituting changes and enhancements. It wasn't really a platform upgrade, but as we continue to evolve and put new features in, constant maintenance and attention are required. And we saw some declines there, too. So hopefully, that gives you what you need. It's probably a combination of goes across three different brands and not something that we expect to recoup, but we expect robust volume from our DTC platforms going forward. That's why we do the enhancements. And so maybe there's a little bit of a lift later because we have those in place now, but not a recoupment of the shipments we lost specifically in the first quarter.

Speaker Change: Things, there and and likely won't recoup.

Speaker Change: Lost volume there and then the other business was really just instituting changes and enhancements it wasn't really a platform upgrade but as we continue and evolve and put new features in.

Speaker Change: Constant maintenance and attention as required and we saw some some declines there. So hopefully that gives you. What you need is it's a combination of probably goes across three different brands and not something that we expect to recoup, but we expect you know we expect robust volume from our <unk>.

Speaker Change: C platforms going forward, that's why we do the enhancements and so maybe there's a little bit of lift later, because we have those in place now, but not a recoupment of the shipments we lost specifically in the first quarter.

Linda Ann Bolton: Thanks. And then finally, you seem very excited about the distribution expansions that you're getting in FY 25. Can you quantify how much of the revenue growth you're guiding to is pipeline fill? And then, you know, how do you compare that in FY 26? I know this is looking like a long time. But, you know, if the pipeline fill is a significant contributor, do you expect to get more shelf space gains going forward? And do you have visibility on that? Thanks.

Speaker Change: Yes.

Speaker Change: Thanks, and then finally.

Speaker Change: No.

Speaker Change: You know in terms of the you seem very excited about the distribution expansion that you are getting in FY 'twenty five can you quantify how much of the revenue growth you're guiding to is pipeline fill.

Speaker Change: And then.

Speaker Change: Now how do you comp that in FY 'twenty six I know this is looking at a long time, but.

Speaker Change: Is the pipeline fill is a significant contributor do you expect to get more shelf space gains going out and do you have visibility on that thanks.

Speaker Change: Yeah, I would say you know going after as you probably remember from the Investor day going after white space distribution opportunities has been a key priority as we form the North American RMR. We were pleased with some progress that we made in 'twenty four or are we kind of set an internal goal for ourselves of this with a new organization and exceeded that of that one.

Noel Geoffroy: Yeah, you know, I would say, going after, as you probably remember from the investor, going after white space distribution opportunities has been a key priority as we formed the North American RMO. We were pleased with some progress that we made in 24. We kind of set an internal goal for ourselves that this was a new organization and exceeded that. Some of that was some of the comments that I made in the remarks around OXO software gadgets and OXO grilling, and Walmart are two nice examples there.

Speaker Change: Some of the comments that I made it in the remarks around.

Speaker Change: OXXO software gadgets, and Okta, grilling and Walmart are too nice examples there.

Noel Geoffroy: So we got, you know, some in 24. And we've got a positive outlook for some additional opportunities in fiscal 25. And I think it'll be an ongoing area that we continue to go after year in and year out. That's part of the beauty of the North American retail market, where that becomes their focus. If it's not getting a whole new brand into distribution, sometimes it's just, you know, getting the right assortment in there.

Speaker Change: So we got some in 'twenty four we've got.

Positive outlook for some some additional opportunities in fiscal 'twenty, five and I think it'll be an ongoing area that we continue to go after yearend and year out that's part of the beauty of our North American arm of where that becomes their focus if it's not getting a whole new brand into distribution, sometimes it's just.

Speaker Change: Getting the right assortment in there youre looking at a a skus these skus and really making sure you've got your highest velocity high turning skus in the best retailers at the best time. So I don't think we get it and then it all goes away I think in my experience that's an ongoing activity.

Noel Geoffroy: You're looking at A, A SKUs, B SKUs and really making sure you've got your highest velocity, high-turning SKUs in the best retailers at the best time. So I don't think it's we get it, and then it all goes away. I think, in my experience, that's an ongoing activity that the North American RMO will be going after year in and year out.

Speaker Change: <unk>.

Speaker Change: The North American RMR will be will be going after yearend and you're out and I agree with everything Noel said, but but I think it does when it does layer in the first time like in the second third and fourth quarters will cause some lumpiness compared to the first quarter, which is part of the reason why we have the cadence that we do with re.

Brian L. Grass: I agree with everything Noel said, but I think it does cause some lumpiness compared to the first quarter, which is part of the reason why we have the cadence that we do with respect to sales in fiscal 25. But what we've seen with our new distribution that we have in fiscal 24 is strong replenishment and strong results.

Speaker Change: Aspect of sales in fiscal 'twenty, five, but what we've seen with our new distribution that we have in fiscal 'twenty. Four is strong replenishment strong result, so.

Speaker Change: No we don't see it as a kind of you fill it in and then don't get the repeat business, we've been able to in some cases expand the business, where we've added these layers of distribution. So we think it's a good sustainable long term growth strategy. We plan to continue to use and then just on your last point.

Brian L. Grass: So we don't see it as a kind of you fill it in and then don't get the repeat business. We've been able to, in some cases, expand the business where we've added these layers of distribution. So we think it's a good, sustainable, long-term growth strategy we plan to continue to use. And then, just on your last point, I think it'd be premature to talk about the visibility and the drivers of this in fiscal year 26. We're really not to the point where we do that. Now, obviously, if we get the sell-through, we get the benefits of everything we do in fiscal 25, but I think it's premature to talk about that.

Speaker Change: We I think it would be premature to talk about the visibility and the drivers of this in fiscal year 'twenty six were really not to the point, where we do that now obviously, if if we get the sell through we get the benefits of everything we do in fiscal 'twenty, five, but but I think it's premature to talk about 'twenty six.

Speaker Change: Okay and then my final question is on M&A.

Linda Ann Bolton: Okay, and then my final question is on M&A. You know, you're talking about looking at a potential acquisition. It just seems like with Curlsmith integration issues and all the moving parts going on and other integration or other execution issues, it just seems... And I think before you had said you might actually do an acquisition before the divestiture. Is that still the case? And are you seeing the M&A valuation so attractive that that's what's making you seem very agreeable to doing another deal? Thanks. Yep.

Speaker Change: You know you're talking about looking at a potential acquisition. It just seems like with Karl Smith integration issues and all the moving parts going on and other integration or other execution issues.

Speaker Change: It just seems.

Speaker Change: Alright.

Speaker Change: Not wise for me to be adding more onto the play with another acquisition and I think before you had said you might actually do an acquisition before the divestments or is that still the case or are you seeing the M&A valuations so attractive.

Brian L. Grass: Yep. First, let me say M&A processes evolve, and so you can have a point of view at one period of time that completely changes the next period of time, and we're not going to lock ourselves into an acquisition that doesn't make sense just because we talked about being in the market for acquisitions. So yes, we did talk about one before.

Speaker Change: What's making you.

Speaker Change: It seem like very agreeable to doing another deal. Thanks.

Speaker Change: But first let me say M&A processes evolve and so you can have a point of view at one period of time that completely changes. The next period of time, and we're not going to lock ourselves into an acquisition that doesn't make sense, just because we talked about being in the market for acquisitions. So yes, we did talk about one before things Chi.

Brian L. Grass: Things change, and we have to adjust. Yes, I think valuations are at a good point. We see this as an opportunity to buy attractive assets at reasonable valuations, and so it makes sense. And then, with respect to Curlsmith, we called it out because it had an impact on shipments, but I think you have to have the perspective that when people do systems integrations, there can often be very big problems.

Speaker Change: James and we have to adjust we are yes, I think valuations are at a good point, we see this as an opportunity to buy attractive assets at reasonable valuations and so we think it makes sense and then with respect to Karl Smith, we called it out because it had an impact on shipments, but the I think you have.

Speaker Change: Have the perspective of when people do systems integrations. There there can often be very big problems. These were not very big problems. Just these were minor hit hiccups and the ability to ship and its a very complicated integrations that have to occur. This I actually would view as a success it.

Brian L. Grass: These were not very big problems. These were minor hiccups in the ability to ship, and these are very complicated integrations that have to occur. This, I actually, would view as a success. It had a slight impact on Q1, but our integration of Curlsmith was largely successful, and so I would not see it as a reason to not do further acquisitions.

Speaker Change: As a slight impact on Q1, but our integration of Karl Smith was largely successful and so I would not see it as a reason to not do further acquisition.

Linda Ann Bolton: Okay, thank you very much. I appreciate it.

Speaker Change: Okay. Thank you very much I appreciate it.

Speaker Change: Our next question comes from the line of Olivia Tong with Raymond James. Please proceed with your question.

Operator: Our next question comes from the line of Olivia Tong with Raymond James. Please proceed with your question.

Olivia Tong Cheang: Great. Thank you and congrats Jack on your retirement best of luck with everything and great working with you.

Olivia Tong Cheang: Great. Thank you. And congratulations, Jack, on your retirement. Best of luck with everything, and it was great working with you. Thank you.

Olivia Tong Cheang: Hum.

Olivia Tong Cheang: I wanted to focus my questions more on the Q2 to Q4 expectation.

Olivia Tong Cheang: I wanted to focus my questions more on your Q2 to Q4 expectations. I'm hoping you can provide additional color on the building blocks to drive the improvement in revenue, because we obviously hear all the debate around the consumer slowdown and are seeing increasing signs of that. So what would be driving retailers to increase your distribution if the macros are not in favor? And let me leave it there, and then I'll ask my next question.

Olivia Tong Cheang: Hoping you can provide additional color on the building blocks to drive the improvement in revenue.

Speaker Change: It looks like you're all the debate around a consumer slowdown seeing increasing signs of that.

Speaker Change: So what is right what would be driving retailers to increase your distribution of the macros are not in favor.

Speaker Change: And I'll, let me leave it there and then I'll ask my next question.

Noel Geoffroy: Yeah, I think, you know, the drivers that we see, the first, which you just touched on, Olivia, is the further incremental distribution later in the year. And I think, in the case of some of the opportunities we have, we have some really strong brands with strong consumer appeal that aren't in some retailers, and they're excited and anxious to get our brands on their shelves and into distribution. And so, you know, we feel good about it. I think, you know, the one that we shared is OXO Softworks and Walmart.

Speaker Change: Yeah, I think you know the the drivers that we see the first and you just touched on Olivia is the further incremental distribution later in the year and I think in.

Speaker Change: In the case of some of the opportunities. We have we have some really strong brands with strong consumer appeal that arent in some some retailers in there they're excited and anxious to get our brands on their shelves and in distribution.

Speaker Change: And so we feel good about it I think.

Speaker Change: One that we shared is access software and Walmart.

Noel Geoffroy: I mean, that's one where Walmart is really pleased to have, I think, you know, the brand on the shelf. It's a leading brand and one that their shoppers were looking for. So I feel confident and very good about those opportunities.

Speaker Change: One more Walmart really pleased to have I think the brand on the shelf, it's a leading brand and one that their shoppers were looking for so I feel.

Confident and very good about those opportunities. The other one we talked about it is the incremental marketing investment we talked about bringing in a building a kind of a first ever marketing center of excellence within Helen of Troy that team is now partnering with our business CNS brand teams to.

Olivia Tong Cheang: The other one we talked about is the incremental marketing investment. You know, we talked about bringing in, you know, building kind of the first ever marketing center of excellence within Helen of Troy. That team is now partnering with our business unit brand teams to upgrade our creative, upgrade our full funnel experience plans, and invest incrementally behind it so that we can drive even more interest, awareness, and desire for our brands. And then I think the repositioning of a few of the key brands is also important to point out.

Speaker Change: Upgrade our creative upgrade our full funnel experience plans in investing incrementally behind it so that we can drive even more interest awareness desire for our brands and then I think the repositioning on a few of the key brands. It is also important to point out if you look at hydro flask.

Olivia Tong Cheang: If you look at Hydro Flask, and I talked quite a bit about that in my prepared remarks, some of the new items like the Sugar Crush that just came out, getting, you know, a lot of positive traction for new innovation like that that's very appealing and investing behind that so that we get the word out about some of these new items that are very desirable. The Dry Bar Hot Rollers is another example of that.

Speaker Change: And I talked quite a bit about back in the prepared remarks, some of the new items like the sugar crushed that just came out getting in a lot of positive traction for new innovation like that that's very appealing and investing behind that so that we get the word out of some of these new items that are very viable hot drive the <unk>.

Speaker Change: <unk> Hot rollers, and it's another example of that so when you put those innovations out he's got to spend the marketing behind them to drive that awareness the desire.

Olivia Tong Cheang: So when you put those innovations out, you've got to put the marketing behind them to drive that awareness, the desire, and the purchase of those items. So those are the areas that we're excited about in the back half. They are a little bit more quarter two through four weighted than quarter one, as Brian and I shared. And those are the things that give me strong confidence for us in that year to come.

Speaker Change: The.

Speaker Change: The purchase of those items. So those are those are the areas that we're we're excited about in the back half they are a little bit more quarter, two through four weighted than quarter one.

Speaker Change: Brian and I shared.

Speaker Change: And those are the things that gives me strong confidence for us and that year to go.

Noel Geoffroy: Donna, thanks. Maybe I can ask a little bit about any divergence you're seeing between performance and the more premium end of your portfolio versus the mid-price, specifically more around beauty appliances. Obviously, we've heard some commentary out of a key retailer. Are you seeing similar divergence in terms of performance, or is your outlook more reflective of what they're saying and an expectation that that's going to happen even if you haven't seen it so far?

Speaker Change: Got it.

Speaker Change: Maybe I can ask a little bit about.

Speaker Change: Any divergences between the more political comments in the more premium end of your portfolio of questions. The midprice.

Speaker Change: Specifically more around beauty appliances, no offices in person.

Speaker Change: Hmm commentary out of out of the Cleveland <unk>.

Speaker Change: Similar.

Speaker Change: A similar divergence in terms of performance or is the outlook more reflective of what they're saying on an expectation that that's going to happen. Even if you haven't seen it so far.

Olivia Tong Cheang: Yeah, you know, what I would say about hair tools is again, what I really like about our portfolio is that we cover the range. We have that good, better, best, Revlon, Hot Tools, Dry Barn, Curlsmith at the high end. So wherever the consumer is, we have an opportunity to be there with the right kind of assortment, price point, retailer channel, etc. to meet those needs.

Speaker Change: Yeah, you know what I would say inherent tool is.

Speaker Change: Again, what I really like about our portfolio. We cover the range, we have that good better best Revlon and hot tools drive Arne Karlsson up at the high end. So wherever the consumer is we have an opportunity to be there with the right kind of assortment price point.

Speaker Change: Retailer channel et cetera to meet those needs. So I would say we had good performance at sort of the Revlon entry point and with some new broadened distribution in mass of kind of the opening price point hair dryers straighteners.

Noel Geoffroy: So I would say we had good performance at sort of the Revlon entry point end with some new broadened distribution in mass of kind of those opening price point hair dryers, straighteners, you know, there's a perfect match essential hair dryer, for example, at more of a $25 price point that's doing well; the Drymax hair dryer, you know, at below $40 price point, those sorts of tools that are responding well when the consumer is pin But by the same token, as I mentioned, we're also seeing, at the high end, really strong uptake on the Drybar Hot Tool, and the Drybar Hot Rollers that are at a higher price point.

Speaker Change: There is a perfect match with central hair dryer for example at.

Speaker Change: That's more of a $25 price point, that's doing well the dry Max hair dryer.

Speaker Change: Below $40 price point, those sorts of tools that are resonating well when the consumers pinched, but by the same token as I mentioned, we're also seeing at the high end really strong uptake on the drive our hospital the drive our hot rollers that are a higher price point. So yeah. There's there's pockets of the market is doing.

Noel Geoffroy: So yeah, there's pockets of the market doing well if the innovation is appealing and the innovation draws people to it. I would say Prestige Liquids continues to grow. We continue to see that as a strong category. However, as we've heard with some of the retailers, it's slowing a little bit versus where it was in the most recent few months.

Speaker Change: Well if the innovation is appealing in the innovation draws them them to it I would say prestige liquid liquids continues to grow we continue to see that as a strong category as we've heard with some of the retailers that it's slowing.

Speaker Change: A little bit versus where it was the most recent few months, but that's an area that we continue to feel strongly about its an area that we continue to launch new innovation, whether it's on Karl Smith with a new volume line, new items and dry bar et cetera. So I think the key here to sum it up is really to have strong innovation across all.

Olivia Tong Cheang: But that's an area that we continue to feel strongly about. It's an area that we continue to launch new innovation, whether it's on Pearlsmith with a new volume line, you know, new items in Drybar, etc. So I think the key here, you know, to sum it up, is really to have strong innovation across all of the different price points and all of the different channels to meet the various consumers where they are. That's going to be key in this environment.

Speaker Change: All of the different price points and all of the different channels to meet the various consumers where they are that's going to be key in this in this environment.

Speaker Change: Understood. Thanks, so much.

Olivia Tong Cheang: I understand. Thanks so much.

Operator: Our next question comes from the line of Susan Anderson with Canaccord Genuity. Please proceed with your question.

Speaker Change: Our next question comes from the line of Susan Anderson with Canaccord Genuity. Please proceed with your question.

Susan Kay Anderson: Hi, good morning. Thanks for taking my question, and I want to send my congratulations to Jack as well on your retirement. You'll definitely be missed. It was great working with you while you were at Helen of Troy.

Susan Kay Anderson: Hi, Good morning, Thanks for taking my question and on S and my congrats to Jack as well in your retirement and you're definitely be Miss David's great working with you all you're at Helen of Troy.

Susan Kay Anderson: I guess maybe just to start out on just the outdoor category, I think you mentioned some pockets of higher retail inventory there. Are you seeing that also in some other categories? And then for outdoor, I was just curious, is the weakness just across the packs, or are you seeing weakness and maybe higher inventory in other areas as well?

Susan Kay Anderson: I guess, maybe just to start out on just the outdoor category I think you mentioned some pockets of higher retail inventory. There are you seeing that also in some other categories and then an outdoor I was just curious is the weakness just across the tax or are you seeing weakness.

Susan Kay Anderson: Weakness, there maybe higher inventory in other areas as well.

Noel Geoffroy: Thanks, Susan. Yeah, you know, I would say retailer inventory is always a function of, you know, what's happening from a consumer standpoint. So, you can see different adjustments that they make based on how the consumer is purchasing. But the one we called out was in outdoor.

Speaker Change: Thanks, Susan Yes, I would say you know retailer inventory is always a function of what what's happening from a consumer standpoint. So you can see different adjustments that they make based on how the consumers' purchasing but the one we called out was an outdoor and as we looked across both domestically and internationally.

Noel Geoffroy: And as we looked both domestically and internationally, we saw a little bit more elevated inventory, not necessarily in our areas per se, but kind of across their entire store inventory, which then reduces their open to buy in our areas and in other areas where they're kind of managing their total inventory levels. Tech packs for us on Osprey are obviously, you know, kind of the core of the business. We have a very strong number one position.

We saw a little bit more elevated inventory not necessarily in our areas per se, but kind of across their entire store inventory, which then reduces their open to buy and in our areas and in other areas that they are kind of managing their total inventory levels.

Speaker Change: Tap path for US is on Osprey is obviously.

Speaker Change: Kind of the core of the business, we have a very strong number one position, we extended that number one position over the last year, but the category has slowed versus where it was we do see growth in some of the other adjacent categories and Osprey has gone into some of the areas like Ah.

Noel Geoffroy: We extended that number-one position over the last year, but the category has slowed versus where it was. However, we do see growth in some of the other adjacent categories that Osprey has gone into. So some of the areas, like duffels and travel packs and lifestyle packs, etc., show a little bit more growth. But we called it out kind of the pocket of inventory in outdoor because we were seeing it both domestically and internationally.

Speaker Change: Duffels and travel packs and lifestyle packs et cetera show, a little bit more growth, but we called out kind of the pockets of in the pocket of inventory in outdoor because we were seeing it both domestically.

Speaker Change: And internationally.

Susan Kay Anderson: Got it. Okay, great. Thanks. And then I guess maybe just talk about Axo a little bit. It's obviously done very well with a lot of new innovation. I'm curious to hear about what you have coming out this year and then also just the timeline of the Walmart rollout in stores. Like, how should we expect that to flow throughout the year?

Speaker Change: Got it okay, great. Thanks, and then I guess, maybe just talk about oxo a little bit. It's obviously done very well with a lot of new innovation I'm curious to hear about what you have coming out this year and then also just the timeline of the Walmart rollout in stores.

Speaker Change: How should we expect that to flow throughout the year.

Noel Geoffroy: Yeah, you know, OXO remains number one in kitchen utensils, canister food storage, some really nice adjacent categories, like in coffee, our baby and toddler feeding area, you know, lots of new products constantly coming out on OXO. It's one of the hallmarks of the brand. In terms of Walmart in particular, the kitchen utensil set has already happened, that's already in the market, so you can see that, as for grilling, it kind of, the expansion happened right towards the end of our fiscal 24, so that's out in stores now, and as I mentioned in my remarks, there are some other OXO categories that we anticipate expanding over the course of 25.

Speaker Change: Yeah OXXO OXXO.

Speaker Change: OXXO remains number one in kitchen utensils canister food storage.

Speaker Change: Nice adjacent categories like in coffee.

Speaker Change: Our baby and toddler feeding area.

Speaker Change: Lots of new products constantly coming out on OXXO. It it's one of the hallmarks of the brand.

Speaker Change: Terms of Walmart in particular, the kitchen utensils that has already happened that's already in end market.

Speaker Change: You can you can see that as as grilling it kind of.

Speaker Change: The expansion happened right towards the end of our fiscal 'twenty four so that that's out in the stores now and as I mentioned in my remarks Theres. Some other oxo categories that that we anticipate expanding over the course of 'twenty five.

Susan Kay Anderson: Okay, great. And then just one last question. So on Hydro Flask, it sounds like obviously tumblers continue to do well. I'm curious just if you see any other, I guess, bottle formats coming out for Fiscal 25, or if you expect kind of the tumblers to be the hot format and, I guess, maybe more of the newness coming from colorways or types of accessories to go with those.

Speaker Change: Okay, Great and then just one last question so on hydro flask. So it sounds like obviously at Tumblr continues to do well I'm curious just if you see any other I guess bottle format coming out for fiscal 'twenty five or if you expect kind of the tablet barriers to be.

Speaker Change: <unk> format, and I guess, maybe more of the newness coming from color ways or types of accessories to go with those.

Noel Geoffroy: Yeah, I would say on HydroFlask, you know, tumblers do continue to be where a lot of the growth and where a lot of the energy is as we think about kind of the Gen Z female target that looks at these not only for functionality but also great design to match their personal style. I do think as a result of what I just said, the colors like Sugar Crush, you know, that we did a limited launch on DTC that sold very, very quickly.

Speaker Change: Yeah, I would say on hydro flask Temblors do continue to be you know.

Speaker Change: Where where a lot of the growth and where a lot of energy as we think about kind of a gen Z female target that looks at these not only for the functionality, but also great designed to match their personal style I do think as a result of what I just add the colors like sugar crash.

We did a limited launch on and on DTC that that moves very very quickly. We've also got some customer exclusive there.

Noel Geoffroy: We've also got some customer-exclusives. There's a Blossom Colorway that we've got in partnership with a sporting goods partner of ours. We've got another, you know, Pastel Design and one of our major prestige food partners. And so these sorts of things are very interesting to the consumer, right? They're very willing to purchase multiples if it's a color or design or a special edition that they have to have. And so I think that's going to continue to be an important area. Configurations of, you know, shapes, caps, et cetera, are also going to be important.

Speaker Change: Ah Blossom.

Speaker Change: Color way that we've got in partnership with our sporting goods partner of ours, we've got another.

Speaker Change: Pastel design and one of our major prestige food.

Speaker Change: Partner. So these sorts of things are very interesting to this consumer right there, they're very willing to purchase multiples, if it's a color or design or a special dividend that they have to have.

Speaker Change: So I think that's going to continue to be an important area configurations of.

Speaker Change: Shapes caps et cetera is also going to be important one of the other ones I mentioned that we launched it is off to a nice start of the insulated shaker bottle, so really great for smoothies or protein shakes et cetera.

Noel Geoffroy: One of the other ones I mentioned that we launched that is off to a nice start is the Insulated Shaker Bottle, so really, you know, great for smoothies or protein shakes, et cetera. You know, that's a new shape that's coming, and I think you can expect to see more configurations and more, you know, different formats as we go across the year to meet those different occasions as we've done more work to understand our target, as well as distribution opportunities.

Speaker Change: That's a new shape, it's coming in and I think you can expect to see more configurations and more different formats.

Speaker Change: As we go across the year to meet those different occasions.

Speaker Change: Done more work to understand our target as well as distribution opportunities.

Noel Geoffroy: You know, this is a brand where, as we expand the target consumer, we need to be where those shoppers are shopping. So that's, you know, another opportunity. And then the personalization customizations, that's also a big part of this category, and our new capability in our facility in Tennessee will only make us better at that. So, as I said in my remarks, I'm excited about some of the pivots that we're making both in product innovation, design, and marketing as we move forward on Hydroflask. It's one of the other areas I'm excited about and confident about for the rest of Fiscal 25.

Speaker Change: This is a brand as we expand the target consumer where we need to be where those shoppers are shopping. So that's another opportunity and then the personalization customization. That's also a big part of it.

Speaker Change: Of this category and our new capability and our facility in Tennessee will only make us better at that so I'm as I said in my remarks, I'm excited about some of the pivots that we're making both on the product innovation. The design the marketing as we as we move forward on hydro flask. It's one of the other areas on excited and confident.

And then in the rest of fiscal 'twenty five.

Susan Kay Anderson: Great. That sounds exciting. Thanks so much. Good luck the rest of the year.

Great that sounds exciting. Thanks, so much Greg good luck the rest of the year.

Operator: All right. Thanks so much, everyone. We thank you for your interest and support, and we really look forward to speaking with many of you over the coming days and weeks. Thanks for joining us.

Speaker Change: Alright, thanks, so much everyone.

Speaker Change: Thank you for your interest and support and we really look forward to speaking with many of you over the coming days and weeks thanks for joining us.

Operator: Ladies and gentlemen, this does conclude today's teleconference. You may disconnect your lines at this time. Thank you for your participation and have a wonderful day.

Speaker Change: Ladies and gentlemen, this does conclude today's teleconference. You may disconnect. Your lines at this time. Thank you for your participation and have a wonderful day.

Speaker Change: Yeah.