Q4 2025 Bob's Discount Furniture Inc Earnings Call

March 17, 2026

125 fourth quarter and full year earnings conference call at.

At this time, we kindly request that all participants remain in listen only mode. A question and answer session will follow the formal prepared remarks.

As a reminder, this conference call is being webcast live and recorded for replay.

On the call today are Bill Burton, President and Chief Executive Officer, and Carl Lukacs, Executive Vice President and Chief Financial Officer.

Before we start I'd like to remind everyone that the language on forward looking statements included in the earnings release also applies to the comments made during the call.

The release can be found on the web site at IR Dot My Bob's Dot com, along with reconciliations of non-GAAP financial measures mentioned on the call with their corresponding GAAP measures let.

Let me now turn the call over to Bill Barton.

Thank you operator, good afternoon, and thank you for joining us today for our fourth quarter and full fiscal year 2025 earnings call.

Its an historic moment for the Bob's team to present, our first earnings call as a public company following our successful IPO last month.

But we believe that everyone deserves a home they love.

This core belief goes back to our founding and the important role we play in providing high quality.

This furniture at everyday low prices.

At the center of our flywheel and in everything we do is value without compromise.

This promise is what has propelled us to become a coast to coast high growth retailer with over 200 showrooms across 2006 states.

We are powered by the dedication and hard work of our nearly 6000 team members, who live our values of honesty integrity transparency and fund everyday.

The bonds way represents a culture that sets us apart.

Our guest experience specialists present, a welcoming low pressure sales environment that differentiates the customer experience.

Our team members build careers at bogs, evidenced by an average store manager tenure of over seven years, coupled with a strong track record of internal promotion.

Our customer satisfaction ratings exceeding 90% are a testament to our compelling store and online experience. In addition to our curated assortment and differentiated value proposition.

I want to thank each of our team members were getting bobs to where we are today.

The continued commitment that will propel us into the future.

Before I dive into what makes Bob So unique I want to briefly touch on highlights from our full year performance two.

2025 was a strong year as we continued to gain market share and successfully navigated ongoing macro uncertainty.

For the full year total net sales increased 16, 8% driven.

Driven by new store expansion and comparable sales growth of seven 7%.

Adjusted EBITDA grew 24, 1%.

Our performance is reflective of both our structural advantages and continued strong execution.

<unk>, new store economics, and an enhanced omnichannel experience supported by investments in initiatives that are still in the early stages of yielding results.

At buds, providing value to our customers at the center of our flywheel supported by distinct cost advantages as we scale.

These strategic advantages are what makes Bob so differentiated in the marketplace are.

Our first advantage is our merchandising strategy, which centers on a narrow and deep curated assortment.

<unk>, our everyday low price model.

We estimate that on average our pricing is about 10% below our value oriented furniture competitors lowest promoted prices, which we believe equates to roughly 20% to 25% below their listed prices.

Our curated assortment allows us to leverage our scale, coupled with deep vendor relationships to provide both quality and style and to maintain our price leadership.

This strategy enabled a strong in stock positions with 87% of our inventory available for delivery in as little as three days.

Our second strategy advantage is our omnichannel capability, which is a key differentiator Bob's.

Furniture is inherently an omnichannel purchase.

We are uniquely positioned to meet customers wherever they are in the shopping journey, whether online or in store.

Our retail footprint spans coast to coast and offer significant white space opportunity supported by a proven and portable model highlighted a warm and friendly shopping environment.

Our stores feature free snacks, and coffee available in our cafes and knowledgeable sales associates equipped with digital and AI driven technology to enhance the selling experience.

In addition, during 2023, we completed a digital transformation that optimized our website and enables customers to transact seamlessly wherever they prefer.

In 2025, we began to see the financial benefit of a newly launched feature we call omni cards, a digital card that travels with the customer between stores and online.

Today, if you find something you love and Abob store, but are not ready to complete the purchase and associate can created digital cart in E mail it to.

You can complete the transaction online come back into the store will get on the phone with us.

We're committed to executing a frictionless experience wherever the customer prefers to transact, including the same prices across channels, the same product and the same delivery experience.

Our omni card penetration was a meaningful driver of 2025 sales performance.

Positively impacting conversion and we expect to see continued contributions from this initiative over time.

Our third strategic advantages driving brand awareness through marketing leverage and compelling messaging.

Our marketing strategy is proven and resonates with our customers.

As we scaled the business across more markets, we've increased national aided brand awareness to 45% growing consistently each year and leaving room for continued expansion.

As a point of reference in our top 10, DMA, our aided brand awareness averages approximately 70%.

These three advantages everyday low price seamless omnichannel experience and growing brand awareness worked together to attract a broad customer base.

Our differentiated voice resonates broadly across multiple cohorts.

We attract customers throughout all life stages, and income levels, including higher income value seeking households in.

In 2025, we saw a meaningful increase in new customers, earning over $150000 underscoring the broad appeal of our value proposition.

We also see a strong balance across age cohorts, which makes sense given that consumers often purchase furniture at major life milestones for the setting up their first home growing a family or entering retirement and downsizing.

Looking ahead, we are focused on three primary strategies drive our long term growth.

Growing our store base across new and existing markets.

Customers.

As we scaled the business across more markets, we've increased national aided brand awareness to 45% growing consistently each year and leaving room for continued expansion.

Arriving comparable sales.

And leveraging our scale and density to drive efficiency and margin expansion.

Let me walk you through how we're executing on each of these priorities.

As a point of reference in our top 10, DMA, our aided brand awareness averages approximately 70%.

First store growth, we continue to execute on a disciplined expansion strategy built around our proven portable store model that delivers strong cash on cash returns and an average payback period of approximately two years.

These three advantages everyday low price seamless omnichannel experience and growing brand awareness worked together to attract a broad customer base.

We ended 2025 with 209 stores, adding 20, new locations, which represented 11% growth.

Our differentiated voice resonates broadly across multiple cohorts.

During 2025, we entered two new markets, including our first entry into the southeast region in North Carolina.

We attract customers throughout all life stages, and income levels, including higher income value seeking households, and.

In 2025, we saw a meaningful increase in new customers, earning over $150000 underscoring the broad appeal of our value proposition.

By the end of the fourth quarter, we opened six stores in North Carolina and performance to date has exceeded our expectations.

We anticipate opening an additional four stores in North Carolina in 2026, as we continue to densify. This important market for US which is representative of how we grow.

We also see a strong balance across age cohorts, which makes sense given that consumers often purchase furniture and major life milestones for the setting up their first home growing a family or entering retirement and downsizing.

We do not just open stores, we developed markets.

We spent time studying pricing and competition conducting focus groups evaluating cluster based real estate opportunities and building a market specific approach to driving brand awareness as.

Looking ahead, we are focused on three primary strategies to drive our long term growth.

Growing our store base across new and existing markets.

<unk> comparable sales.

As we look ahead, we will apply a similar playbook from our successful North Carolina openings as we enter new markets in 2026 and beyond.

And leveraging our scale and density to drive efficiency and margin expansion.

Let me walk you through how we are executing on each of these priorities.

We have a strong pipeline visibility with plans to open approximately 20, new stores in 2026, and we see clear and actionable path to more than 500 stores by 2035, representing almost two five times our current footprint.

First store growth.

We continue to execute on a disciplined expansion strategy built around our proven portable store model that delivers strong cash on cash returns and an average payback period of approximately two years.

We ended 2025 with 209 stores, adding 20, new locations, which represented 11% growth.

Turning next to our plans to drive comparable sales growth. We believe the three foundational elements drive sustainable comp store sales.

During 2025, we entered two new markets, including our first entry into the southeast region in North Carolina.

<unk> qualified traffic, increasing conversion and growing average order value.

Let's start with traffic, we think about driving traffic to our stores and our website through a comprehensive strategy that revolves around investing in and leveraging our robust customer data platform to broaden our customer reach.

By the end of the fourth quarter, we opened six stores in North Carolina and performance to date has exceeded our expectations.

We anticipate opening an additional four stores in North Carolina in 2026, as we continue to densify. This important market for US which is representative of how we grow we.

For example, our deep customer insights allow us to efficiently identify and segment customer cohorts that have a high propensity to purchase from bonds and to provide targeted product recommendations to drive repeat purchases in 2025, we saw outsized performance and higher income cohorts and we see opportunity.

We do not just open stores, we developed markets.

We spent time studying pricing and competition conducting focus groups evaluating cluster based real estate opportunities and building a market specific approach to driving brand awareness.

As we look ahead, we will apply a similar playbook from our successful North Carolina openings as we enter new markets in 2026 and beyond.

To continue driving incremental sales through additional consumer cohorts within age household income and regional targeting.

We have strong pipeline visibility with plans to open approximately 20, new stores in 2026, and we see clear and actionable path to more than 500 stores by 2035, representing almost two five times our current footprint.

Our marketing approach is highly digital and tailored to the communities that we serve.

By combining data driven precision with creative community focused messaging, we're not just driving traffic, we're building lasting customer relationships that fuel sustainable growth.

Turning next to our plans to drive comparable sales growth, we believe that three foundational elements drive sustainable comp store sales.

Turning to conversion.

We've made multiple investments in recent years and our in store technology.

Diving qualified traffic, increasing conversion and growing average order value.

Tools, such as AI, driven workforce scheduling systems manager check in tools and real time conversion dashboards support our associates. So they can provide a consistently excellent positive experience for the customer, including selling with the support of the omni cart that I mentioned earlier.

Next increasing average order value.

As an everyday low price leader, we don't drive comparable sales with price increases.

Rather <unk> growth is supported by offering additional features and benefits to our merchandize that can drive average ticket and create a compelling proposition to trade into our better and best categories.

In addition, we're excited about our store clustering initiatives, where we're emphasizing specific assortments by region.

<unk> to continue driving incremental sales through additional consumer cohorts within age household income and regional targeting.

We are piloting this initiative in some of our more urban store locations around New York City, where we emphasize products for smaller space living.

Our marketing approach is highly digital and tailored to the communities that we serve.

By combining data driven precision with creative community focused messaging, we're not just driving traffic we are building lasting customer relationships that fuel sustainable growth.

This allows us to more efficiently aligned inventory with customer demand and showcase products that resonate in these markets, while leveraging our existing supply chain and inventory planning capabilities.

Turning to conversion.

We are in the very early innings of this initiative, but we believe this could be a meaningful unlock for us.

We've made multiple investments in recent years and our in store technology.

We also believe that offering our customers more constructive financing options to be a meaningful opportunity for us to drive higher average order value.

Tools, such as AI, driven workforce scheduling systems manager checking tools and real time conversion dashboards support our associates. So they can provide a consistently excellent bob's experience for the customer, including selling with the support of the omni cart that I mentioned earlier.

Historically, our financing mix represented approximately 50% of overall purchases, but for 2025 it was 42%.

Next increasing average order value.

We're in the process of transitioning to a new primary financing partner and we believe we have an opportunity to increase that mix.

As an everyday low price leader, we don't drive comparable sales with price increases.

Rather <unk> growth is supported by offering additional features and benefits to our merchandise that can drive average ticket and create a compelling proposition to trade into our better and best categories.

Lastly, let me touch on how we plan to leverage our scale and expand margins as we densify, we will continue to leverage distinct cost advantages across merchandising supply chain marketing and fixed costs.

In addition, we're excited about our store clustering initiatives, where we're emphasizing specific assortments by region.

Our purchasing power with vendors combined with our sophisticated supply chain network provides the foundation for margin expansion, while consistently reinvesting value back into our customers.

We are piloting this initiative in some of our more urban store locations around New York City, where we emphasize products for smaller space living.

As discussed today and with many who we have met with through the IPO process <unk> has a unique and differentiated model.

This allows us to more efficiently align inventory with customer demand and showcase products that resonate in these markets while.

While at face value of the business seems simple executing at scale is complex and takes a strong team to deliver.

While leveraging our existing supply chain and inventory planning capabilities.

We are in the very early innings of this initiative, but we believe this could be a meaningful unlock for us.

I could not be more proud of our teams and the broad based support that we have across the organization.

We also believe that offering our customers more constructive financing options could be a meaningful opportunity for us to drive higher average order value.

Our internal employee survey positions, Bob within the top 5% of consumer retailing peer organizations.

Historically, our financing mix represented approximately 50% of overall purchases, but for 2025 it was 42%.

Looking ahead, despite ongoing macro uncertainty in near term disruptions from winter storms Fox has a long history of navigating successfully in various market conditions and I am confident in our ability to continue to do so.

We're in the process of transitioning to a new primary financing partner and we believe we have an opportunity to increase that mix.

Im energized by the tremendous opportunity still in front of us.

Lastly, let me touch on how we plan to leverage our scale and expand margins as.

We will continue to gain market share through disciplined and prudent execution of our playbook.

As we densify, we will continue to leverage distinct cost advantages across merchandising supply chain marketing and fixed costs.

We have a clear and actionable path forward supported by strong unit.

Economics.

Our proven portable business model that works across diverse markets.

Our purchasing power with vendors combined with our sophisticated supply chain network provides a foundation for margin expansion, while consistently reinvesting value back into our customers.

Best in class Omnichannel capabilities that meet customers, where they want to shop.

A differentiated merchandising strategy that delivers innovation value and quality.

As discussed today and with many who we have met with through the IPO process <unk> has a unique and differentiated model.

And an exceptional team that executes with consistency and passion.

While the face value of the business seem simple executing at scale is complex and takes a strong team to deliver it.

With that let me turn the call over to Carl who will review, our financial results and outlook in more detail.

Could not be more proud of our teams and the broad based support that we have across the organization.

<unk>.

Thank you Bill.

Echoing Bill's remarks, I am incredibly proud of what our team has accomplished to reach this milestone as a newly public company. We have been preparing for this moment with discipline and focus and we now have the teams systems and strategies in place to successfully lead Bob's into this next chapter of growth.

Our internal employee survey positions, Bob within the top 5% of consumer retailing peer organizations.

Looking ahead, despite ongoing macro uncertainty in near term disruptions from winter storms, Bob says a long history of navigating successfully in various market conditions and I am confident in our ability to continue to do so.

Our strong fiscal 2025, particularly during a volatile macroeconomic where we leveraged our investments in tools and capabilities to fuel top line growth and gain market share for the year. We delivered 16, 8% sales growth supported by new store openings and comparable sales growth of seven 7%.

I'm energized by the tremendous opportunity still in front of us.

We will continue to gain market share through disciplined and prudent execution of our playbook.

We have a clear and actionable path forward supported by.

This performance helped to drive 24, 1% year over year growth in adjusted EBITDA and resulted in a healthy adjusted EBITDA margin of 10, 2%, despite navigating a volatile tariff environment for.

Strong unit economics.

Our proven portable business model that works across diverse markets.

Best in class Omnichannel capabilities that meet customers, where they want to shop.

A differentiated merchandising strategy that delivers innovation value and quality and.

For the fourth quarter net revenue increased eight 2% at $648 8 million driven by new store openings and comparable sales growth. We opened three locations in the fourth quarter and we ended the year with a total of 20, new stores and an ending store count of 209 locations.

And an exceptional team that executes with consistency and passion.

With that let me turn the call over to Carl to review, our financial results and outlook in more detail Karl.

Thank you Bill.

As Bill touched on we entered two new markets in 2025, North Carolina, and Vermont and are very pleased with the performance. We've seen in these locations as well as more broadly across our new store cohorts.

Adjusted comparable sales during the quarter increased two 8%.

We had a strong fiscal 2025, particularly during a volatile macroeconomic where we leveraged our investments in tools and capabilities to fuel top line growth and gain market share for the year. We delivered 16, 8% sales growth supported by new store openings and comparable sales growth of seven 7%.

This performance includes an estimated timing shift of deliveries between the third and fourth quarter last year that negatively impacted the fourth quarter comp by about 180 basis points due to a network disruption in 2024.

Our comparable sales performance was primarily driven by growth in conversion and higher average order values in our retail channel as well as increased e-commerce traffic.

This performance helped to drive 24, 1% year over year growth in adjusted EBITDA and resulted in a healthy adjusted EBITDA margin of 10, 2%, despite navigating a volatile tariff environment.

For the year or seven 7% comp was primarily driven by our multi year investments to drive conversion, while we lap the initial impact in the fourth quarter. These foundational improvements will continue to support performance overtime.

For the fourth quarter net revenue increased eight 2% to $648 8 million driven by new store openings and comparable sales growth. We opened three locations in the fourth quarter and we ended the year with a total of 20, new stores and an ending store count of 209 locations.

Fourth quarter gross margins increased 20 basis points to 45, 7% compared to 45, 5% in the prior year.

Year over year increase in our gross margin rate was driven by more normalized freight costs compared to higher costs last year. This.

This increase was partially offset by product mix shifts during.

During the fourth quarter, while we experienced higher costs associated with tariffs, we were able to largely offset the impact through vendor credits and targeted pricing actions.

Adjusted comparable sales during the quarter increased two 8%.

SG&A as a percentage of net revenue increased approximately 30 basis points compared to the prior year.

If we adjust for the fourth quarter timing shift of deliveries last year. The SG&A rate would have been flat for the quarter.

In total net income grew over 6% to $41 million compared to $38 6 million last year and adjusted EBITDA increased four 9% to $76 5 million.

Our comparable sales performance was primarily driven by growth in conversion and higher average order values in our retail channel as well as increased e-commerce traffic.

Turning to the balance sheet by the end of the fourth quarter, we held approximately $53 million of cash on hand, and maintained total liquidity of nearly $178 million.

Inventories increased approximately 15, 3% compared to the prior year, primarily driven by store growth and increases in comparable sales.

Fourth quarter gross margins increased 20 basis points to 45, 7% compared to 45, 5% in the prior year.

We are comfortable with the level and composition of inventory.

Year over year increase in our gross margin rate was driven by more normalized freight costs compared to higher costs last year.

Capital expenditures for the year were approximately $83 million driven by investments associated with new store growth.

This increase was partially offset by product mix shifts during.

In February we successfully completed our initial public offering resulting in $302 million of net primary proceeds these.

During the fourth quarter, while we experienced higher costs associated with tariffs, we were able to largely offset the impact through vendor credits and targeted pricing actions.

These proceeds together with cash on hand, and other available liquidity were used to prepay all of our $350 million term loan.

SG&A as a percentage of net revenue increased approximately 30 basis points compared to the prior year.

<unk> and our long term debt free balance sheet.

If we adjust for the fourth quarter timing shift of deliveries last year. The SG&A rate would have been flat for the quarter.

Now turning to our outlook as Bill mentioned, we had a strong start to the year with comparable sales growth in the first few weeks of the quarter running modestly ahead of our low single digit algorithm.

In total net income grew over 6% to $41 million compared to $38 $6 million last year, and adjusted EBITDA increased four 9% to $76 5 million.

However that was followed by significant snowfall and prolonged cold weather that materially impacted store traffic and sales across most of our footprint. We're no strangers to winter weather. This year was exceptional as winter storm fern and February Blizzard struck on weekends, which typically generate more than double our <unk>.

Turning to the balance sheet by the end of the fourth quarter, we held approximately $53 million of cash on hand, and maintain total liquidity of nearly $178 million.

Inventories increased approximately 15, 3% compared to the prior year, primarily driven by store growth and increases in comparable sales.

Days sales, resulting in five times more operational our losses than last year.

Taken together, we estimate that weather represented an approximate 340 basis point headwind to comparable sales growth in January and February.

We are comfortable with the level and composition of inventory.

Total capital expenditures for the year were approximately $83 million driven by investments associated with new store growth.

Encouragingly as we moved into March traffic has rebounded and our recent sales trends have benefited from a partial recapture of lost sales from the weather impacted weeks.

In February we successfully completed our initial public offering resulting in $302 million of net primary proceeds these.

Therefore, we expect the first quarter to deliver comparable sales growth of approximately one point out the one 5%.

These proceeds together with cash on hand, and other available liquidity were used to prepay all of our $350 million term loan.

For the first quarter, we also expect EBITDA margins to be around 6% compared to 7% last year driven by flow through of the expected comparable sales performance as well as opportunistic marketing spend.

<unk> and our long term debt free balance sheet.

As a reminder, the first quarter is typically our lowest EBITDA margin quarter, driven by lower sales volume.

As we look to the remainder of the year, we continue to anticipate top line performance in line with our long term algorithm.

For the full year, we expect net revenue of $2 6 billion to $2 $6 5 billion.

Courted by comparable sales growth of one five to two 5%.

Days sales, resulting in five times more operational our losses than last year.

As I mentioned in March we expect to realize a partial recovery from the last weather related sales and the midpoint of our comparable sales growth range assumes no additional recovery beyond the first quarter and no additional benefits from the macro environment with respect to the housing market our consumer health.

Taken together, we estimate that weather represented an approximate 340 basis point headwind to comparable sales growth in January and February.

Encouragingly as we moved into March traffic has rebounded and our recent sales trends have benefited from a partial recapture of lost sales from the weather impacted weeks.

Turning to profitability, we expect adjusted net income between 121 and $129 million and adjusted EBITDA between 255 and $265 million.

Therefore, we expect the first quarter to deliver comparable sales growth of approximately one point out to one 5%.

At the midpoint, our outlook implies an adjusted EBITDA margin of around 10% driven by an expectation of relatively flat gross margin performance year over year and slight operating expense de leverage to invest in our 2026 Greenfield store growth and the associated marketing expense.

As a reminder, the first quarter is typically our lowest EBITDA margin quarter, driven by lower sales volume.

In addition, our outlook incorporates pre opening cost of $23 million to $24 million, reflecting the potential strategic acceleration of a handful of store openings into early 2027.

As we look to the remainder of the year, we continue to anticipate top line performance in line with our long term algorithm.

For the full year, we expect net revenue of $2 6 billion to $2 $6 5 billion.

<unk>, a 50 <unk> week impact, which we expect to contribute approximately $40 million in net revenue and $5 million and adjusted EBITDA.

Courted by comparable sales growth of one five to two 5%.

Turning to Capex, we plan to spend approximately $110 million to $115 million of net capital expenditures focused on store growth and supporting infrastructure, including a new distribution center in Atlanta that is expected to open in 2027 with a majority of that associated capital to occur this year.

Turning to profitability, we expect adjusted net income between 121 and $129 million and adjusted EBITDA between 255 and $265 million.

Year.

We expect to open approximately 20 stores in 2026 or 10% store growth.

Our 2026th cohort includes new Greenfield markets in South Carolina, and Tennessee. In addition.

At the midpoint, our outlook implies an adjusted EBITDA margin of around 10% driven by an expectation of relatively flat gross margin performance year over year and slight operating expense deleverage to invest in our 2026 Greenfield store growth and the associated marketing expense.

To continuing our expansion in North Carolina, where we saw strong reception last year.

Our pipeline also includes a handful of single store market locations in the Midwest.

As a reminder, greenfield and single store market locations typically require investment in marketing and supply chain in the first year, which is fully factored into our expectations.

In addition, our outlook incorporates pre opening cost of $23 million to $24 million, reflecting the potential strategic acceleration of a handful of store openings into early 2027.

In the first quarter of 2026, we opened a new regional fulfillment center in the Midwest to support continued expansion in this region.

And a 50 <unk> week impact, which we expect to contribute approximately $40 million in net revenue and $5 million and adjusted EBITDA.

And finally to help with modeling, we expect our full year tax rate of around 27% and full year share count of approximately $137 million.

We expect to generate positive free cash flow for the year with the first half of the year, including consistent borrowings under our revolver to support the full repayment of our long term debt.

We expect to incur net interest expense of approximately 8 million of which $5 million is expected to be incurred in the first quarter.

Air.

We expect to open approximately 20 stores in 2026 or 10% store growth.

Compared to $7 million and full year 2025.

This excludes the onetime impact of debt extinguishment costs.

Our 2026 cohort includes new Greenfield markets in South Carolina, and Tennessee. In addition to continuing our expansion in North Carolina, where we saw strong reception last year.

In closing, we continue to have high confidence in our ability to deliver on 2026, and our long term financial targets and the execution of our significant white space potential our long term financial model expects to drive approximately 9% revenue growth supported by 10% unit growth and low.

Our pipeline also includes a handful of single store market locations in the Midwest.

As a reminder, greenfield and single store market locations typically would require investment in marketing and supply chain in the first year, which is fully factored into our expectations.

Single digit comparable sales growth, yielding approximately 10% to 12% EBITDA growth.

In the first quarter of 2026, we opened a new regional fulfillment center in the Midwest to support continued expansion in this region.

With our proven strategies exceptional team and clear roadmap, we are well positioned to execute on our 2026 objectives and drive sustained value creation over time with that let me hand, it back over to bill for closing remarks.

And finally to help with modeling, we expect a full year tax rate of around 27% and full year share count of approximately $137 million.

In closing Bob This is a brand that can win in all seasons.

We expect to generate positive free cash flow for the year with the first half of the year, including consistent borrowings under our revolver to support the full repayment of our long term debt.

Despite ongoing macroeconomic uncertainty we remain confident in our ability to continue to grow and take market share.

We're energized by the tremendous white space in front of US and are encouraged with the performance of our new store program.

We expect to incur net interest expense of approximately $8 million of which $5 million is expected to be incurred in the first quarter.

We remain focused on executing our strategic initiatives, while preserving the Bob's culture that.

Compared to $7 million and full year 2025.

Differentiates us in the marketplace.

This excludes the onetime impact of debt extinguishment costs.

At Bob's our commitment to honesty integrity transparency and fun isn't just a philosophy, it's the Bob's way and is a proven formula for sustained growth and shareholder value.

In closing, we continue to have high confidence in our ability to deliver on 2026, and our long term financial targets and the execution of our significant white space potential or long term.

When you build a business that puts people first you don't just build loyalty you outperformed the industry is.

<unk> financial model expects to drive approximately 9% revenue growth.

It's how we consistently deliver attractive returns and why we are positioned to capture the significant opportunity ahead.

Courted by 10% unit growth and low single digit comparable sales growth.

Yielding approximately 10% to 12% EBITDA growth.

Looking forward our ambition is clear.

With our proven strategies exceptional team and clear roadmap, we are well positioned to execute on our 2026 objectives and drive sustained value creation over time.

We're targeting 10% plus unit growth annually with a path to 500 plus stores by 2035, which.

Which is more than double our footprint today.

As we grow we're committed to the Bob's way in every market, while strengthening our advantages as a business the disciplined execution best in class unit economics and operational excellence.

With that let me hand, it back over to Bill for closing remarks.

In closing Bob This is a brand that can win in all seasons.

Despite ongoing macroeconomic uncertainty we remain confident in our ability to continue to grow and take market share.

What started as a better way to buy furniture is now a better way to build a business and we're just getting started.

We're energized by the tremendous white space in front of US and are encouraged with the performance of our new store program.

I couldnt be more excited about what lies ahead as we continue to transform how america shops with furniture.

We remain focused on executing our strategic initiatives, while preserving the Bob's culture that differentiates us in the marketplace.

Thank you to our incredible team, our loyal customers and now our shareholders, who believe in the Bob's way.

That Bob's our commitment to honesty integrity transparency and fund isn't just a philosophy, it's the Bob's way and is a proven formula for sustained growth and shareholder value.

With that I would like to open the floor to questions operator.

Thank you, we'll now be conducting a question and answer session.

Like to ask a question. Please press star one on your telephone keypad, a confirmation tone will indicate your line is in the question queue. You May press star two if you'd like to remove your question from the queue for participants using speaker equipment that may be necessary to pick up the handset before pressing the star of Q.

When you build a business that puts people first.

Just build loyalty you outperformed the industry.

It's how we consistently deliver attractive returns and why we are positioned to capture the significant opportunity ahead.

One moment, please while we poll for questions.

Looking forward our ambition is clear.

We're targeting 10% plus unit growth annually with a path to 500 plus stores by 2035, which.

Thank you. Our first question is from Christopher <unk> with Jpmorgan.

Which is more than double our footprint today.

As we grow we're committed to the Bob's way in every market, while strengthening our advantages as a business to disciplined execution best in class unit economics and operational excellence.

Christopher your line on mute.

Yes.

Thanks, Good evening guys.

My first question is if you look at the first the fiscal year outlook. The high end of your sales and EBITDA dollar outlook is in line with where the street had modeled you.

What started as a better way to buy furniture is now a better way to build a business and we're just getting started.

I couldnt be more excited about what lies ahead as we continue to transform how america shops with furniture.

Widen the low end, so $2 55 in EBITDA at the low end to what extent is that that wider range simply due to something that changed in your first quarter outlook because of the storms versus a change in <unk> and going forward.

Thank you to our incredible team, our loyal customers and now our shareholders, who believe in the Bob's way.

With that I would like to open the floor to questions operator.

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

Sure Chris.

All in first quarter and related to.

The weather related impact and just to level set on the weather it was significant and prolonged concentrated in the first quarter and 80% of our regions were impacted including the west coast. So the.

One moment, please while we poll for questions.

Guy in there that the midpoint of the guide really does assume that the first quarter impact flows through to the full year and the remaining of the.

Thank you. Our first question is from Christopher <unk> with Jpmorgan.

The quarters are in line with our long term algorithm.

And then as you think about the nature of your category, it's very much a considered purchase I'm not sure.

Christopher your line on mute.

Have you seen in the past when you have weather events like this obviously with very east coast oriented footprint you do see weather impacts is it something where you typically recapture nearly 100% of that demand I E. There's one to one 5% why wouldn't we carryover into the.

Thanks, Good evening guys.

First question is if you look at the first the fiscal year outlook. The high end of your sales and EBITDA dollar outlook is in line with where the street had modeled you.

Widen the low end, so $2 55 in EBITDA at the low end to what extent is that that wider range simply due to something that change in your first quarter outlook because of the storms versus a change in <unk> and going forward.

Quarter, considering if youre thinking about it getting silver prior unless something changes you would still shop for it just just down the road or are you trying to take into account some of the macro uncertainty given what's going on geopolitically.

Sure Chris.

All in first quarter and related to.

Yeah, Hey, Chris This is bill.

The weather related impact and just to level set on the weather it was significant and prolonged concentrated in the first quarter and 80% of our regions were impacted including the west coast. So.

Look so.

As you know we've been around a long time, we've seen these kind of impacts before and our experience and what we believe we're experiencing today the weather impact we will deliver.

Deliver all the sales that were made and there is usually.

Guide there the midpoint of the guide really does assume that the first quarter impact flows through to the full year and the remaining of the quarters are in line with our long term algorithm.

Partial amount of the demand that we don't recover so it's not 100% recovery from the loss demand that a high percentage of it and we think we're seeing that now and we believe that we'll see all of that impact in the first quarter.

And then as you think about the nature of your category, it's very much a considered purchase I'm not sure if you've seen in the past when you have weather events like this obviously with very east coast oriented footprint you do see weather impacts is it something where you typically recapture nearly a $100.

Hey, Chris let me add to that just in terms of the rebound of traffic that we saw in March really the demand. This month's includes that partial recapture.

And as a result, we're running a bit higher than the algo in March so far so really confident in the demand we're seeing.

Some of that demand I E. There's one to one 5% why wouldn't we carryover into the second quarter, considering if youre thinking about it getting silver prior unless something changes you would still shot for it just just down the road or are you trying to take into account some of the macro uncertainty given what.

The directional guide for Q1 to one to one five.

That's really from a delivery perspective, so the demand is certainly there and we have two weeks until the end of the quarter.

To deliver the demand that we have seen so there's a couple of big delivery days coming up as we get to the end of the quarter. So that represents the range that we provided.

Going on geopolitically.

And just to make sure I understand that the 340 basis points in January and February.

Yeah, Hey, Chris This is bill.

So.

We've been as you know we've been around a long time, we've seen these kind of impacts before and our experience and what we believe we are experiencing today.

Youre planning algo of about 2% that would imply that.

You were you were down about a point in those two months and therefore, the recapture would would suggest that March is obviously.

Weather impact we will.

Deliver all the sales that were made and there's usually.

Running something in the phase III in that 4% range.

Partial amount of the demand that we don't recover so it's not 100% recovery from the lost demand that a high percentage of it and we think we're seeing that now and we believe that we will see all of that impact in the first quarter.

Yes.

March performance is running above the algo and again, that's that's all a result of this partial recapture that we're seeing right now.

Hey, Chris let me add to that just in terms of the rebound of traffic that we saw in March.

Got it thanks, so much.

Really the demand this month's includes that partial recapture.

Thank you. Our next question is from Michael Lasser with UBS.

And as a result, we are running a bit higher than the algo in March so far so really confident in the demand we're seeing.

Good evening. Thank you so much for taking my question.

The market is probably going to look at this situation and say.

The directional guide for Q1 to one to one five.

That was a very significant weather events.

That's really from a delivery perspective, so the demand is certainly there and we have two weeks till the end of the quarter.

To what degree is there cushion.

In Bob's outlook for the second half of the year is some other exogenous variables, we're happy to materialize, especially as you get into a period, where youre going to have tougher comparison. So what factors would you point to to say this was a one.

To deliver the demand that we have seen so there's a couple of big delivery days coming up as we get to the end of the quarter. So that represents the range that we provided.

And just to make sure I understand that the 340 basis points in January and February if youre planning algo of about 2% that would imply that.

One off event and we still feel highly confident in the outlook for the back half of the year. Thank you very much.

You were you were down about a point in those two months and therefore to recapture what would suggest that March is obviously.

Hey, Michael This is bill Great question. So look first off on the the weather event in the first quarter. So we're no stranger to weather events in the first quarter of the year and we mentioned that this year. This has been an extreme outcome. Our planning would have anticipated a normal kind of weather event year, which we've seen in prior years, but at this time we.

Running something in the.

Say, 3% to 4% range.

Yes. The March performance is running above the algo and again, that's that's all a result of this partial recapture that we're seeing right now.

Got it thanks, so much.

<unk> five times.

Operating our losses due to weather that we saw last year. So it was a pretty extreme event, but the planning a called for.

Thank you. Our next question is from Michael Lasser with UBS.

Good evening. Thank you so much for taking my question.

Normal weather than kind of Q1, having said that as we go forward into Q3 Q2 through Q4, I have a high confidence in our plans.

The market is probably going to look at this situation and say.

That was a very significant weather events.

Build in adequate visibility to what the kind of events that we would expect in a normal course of business and having said that theres a lot of things going on in the macro that we certainly can't anticipate but I feel very confident watching the momentum that we've had in the first quarter going into the second second third and fourth quarters that we'll be able to deliver against those.

To what degree is there a cushion.

In Bob's outlook for the second half of the year as some other exogenous variables.

Happy to materialize, especially as you get into a period, where youre going to have tougher comparisons. So what factors would you point to to say this was a one off event and we still feel highly confident in the outlook for the back half of the year. Thank you very much.

And I will jump in with <unk>.

Two quick things.

First is the midpoint of the range, we assumed really.

Underscores all the comp driving initiatives that bill mentioned in his remarks.

Hey, Michael This is bill Great question. So look first off on the the weather event in the first quarter. So we are no stranger to weather events in the first quarter of the year and we mentioned that this year. This has been an extreme outcome. Our planning would have anticipated a normal weather event year, which we've seen in prior years.

The high end of the range would be any potential tailwind that we would see whether that's competitive dislocate competitive dislocations anything in housing the consumer and the low end would be any other headwinds that would be from the consumer and so thats, where we look at the range of the mid point really is our confidence.

But at this time, we saw a five times the amount of operating our losses due to weather that we saw last year. So it was a pretty extreme event, but the planning it called for.

And the execution of the plan we have today and then the second point I'll mention just in terms of the weather impact we feel very confident at the impacts we saw in Q1. It was whether we've done detailed analytics to look on a day by day basis.

Normal weather event kind of Q1, having said that as we go forward into Q3 Q2 through Q4, I have a high confidence that our plans.

<unk> analyzed what that weather impacted days compared to non weather impacted days, where and that gives us confidence that Q1 was truly a weather dislocation.

Build in adequate visibility to the kind of events that we would expect in a normal course of business and having said that theres a lot of things going on in the macro that we certainly can't anticipate but I feel very confident watching the momentum that we've had in the first quarter going into the second second third and fourth quarters that we'll be able to deliver against those.

Understood.

Borrow my friend Bill.

Comment from now there's a lot going on in the world. So can you give us a sense of what has changed in your profitability outlook.

For this year today versus.

And I will jump in too.

Since the beginning of the year. It sounds like you might have pushed a little bit more towards marketing for demand generation, obviously theres been a lot.

Thanks.

First is the midpoint of the range, we assumed really.

Underscores all the comp driving initiatives that bill mentioned in his remarks.

A lot of moving pieces with respect to the tariffs and now finally.

The high end of the range would be any potential tailwind that we would see whether that's competitive dislocated competitive dislocations anything in housing the consumer and the low end would be any other headwinds that would be from the consumer and so thats, where we look at the range of the mid point really is our confidence.

Some of these fuel related headwinds that could impact things like delivery and freight costs. So how have you factored in all of those moving pieces into your outlook. Thank you very much.

Yes, Michael This is bill again look this is a lot of things going on issue as you mentioned.

We've been around a long time, so we have essentially a playbook for every one of these types of events.

And the execution of the plan we have today and then the second point I'll mention just in terms of the weather impact we feel very confident that the impact we saw in Q1. It was whether we've done detailed analytics to look on a day by day basis.

On the on the oil price situation and it wasn't that long ago that we all had to deal with.

Increased freight costs and fuel costs and so we feel very good that we have a playbook in place. We're a large player we've got great relationships with both our ocean freight and delivery partners.

To really analyze what the weather impacted days compared to non weather impacted days, where and that gives us confidence that Q1 was truly a weather dislocation.

We're feeling very confident on being able to deal with whatever fuel shocks come our way we contract a long way out and in fact, we are right now enter into our contract negotiations for next year with the Ocean freight carriers, who were feeling pretty good about that.

Understood.

Borrow my friend Bill just comment from now there's a lot going on in the world. So can you give us a sense of what has changed in your profitability outlook.

For this year today versus.

Speaking to market Anthos you asked the question about marketing so in the first quarter, we took some opportunity too.

Since the beginning of the year. It sounds like you might have pushed a little bit more towards marketing for demand generation.

Investments in some.

Marketing opportunities specific to <unk>.

Obviously theres been a lot.

A lot of moving pieces with respect to the tariffs and now finally.

Competitive dislocation, where it made sense.

Her name out there as well as take advantage of other opportunities that come up we plan on marketing obviously ahead of time with our <unk>.

Some of these fuel related headwinds that could impact things like delivery and freight costs. So how have you factored in all of those moving pieces into your outlook. Thank you very much.

Methodology that we've developed over many many years, but at the same time, we're very agile and when we see an opportunity in the market to lean in we took advantage of that we spent a very little amount on marketing post the weather event just to get some of that traffic back in but most of it was to take advantage of new market opportunities that presented themselves in the first quarter.

Yes, Michael This is bill again like this there's a lot of things going on issue as you mentioned and we.

We've been around a long time, so we have essentially a playbook for every one of these types of events.

On the on the oil price situation and it wasn't that long ago that we all had to deal with.

And then Michael just to wrap up on what's included in the guide from a tariff perspective, its really current landscape. So we're not baking in any potential benefit of refunds were not baking in any change in policy. So it's consistent with how we've operated last year from a fuel perspective.

Increased freight costs and fuel costs and so we feel very good that we have a playbook in place we're a large player.

Relationships with both our ocean freight and delivery partners. So we're feeling very confident on being able to deal with whatever fuel shocks come our way we contract a long way out and in fact, we are right now enter into our contract negotiations for next year with the Ocean freight carriers. So we're feeling pretty good about that.

Q1 directional guide does include a little bit of surcharges related to current fuel prices further.

For the remainder of the year. It assumes this normalizes beginning in Q2.

Speaking to market answered you asked the question about marketing so in the first quarter, we took some opportunity too.

The only thing that I'd add that did change a bit and profitability outlook.

From a pipeline perspective, we do from time to time see opportunities to accelerate our store pipeline and we are looking at potential acceleration of some of our 2027 locations that would go to the earlier part of 2007 versus the midpoint.

Investments in some.

Marketing opportunities specific to <unk>.

Competitive dislocation, where it made sense.

Her name out there as well as take advantage of other opportunities that come up we plan on marketing obviously ahead of time with our <unk>.

That would put some of the preopening expense and capital expense charges into 2026, and Thats reflected now in the guide.

Thank you very much.

Thanks, Michael.

Our next question is from Simeon Gutman with Morgan Stanley.

Hey, Bill Hey, Karl first to start just to paraphrase something when I think Carl said.

And then Michael just to wrap up on what's included in the guide from a tariff perspective, its really current landscape. So we're not baking any potential benefit of refunds were not baking in any change in policy. So it's consistent with how we've operated last year from a fuel perspective. The Q1 directional guide does include a little bit of search.

You expect to comp positive in all quarters of the year.

And the.

The benefit or the recapture from weather is imputed into your first quarter guide.

And Youre, making no assumption for that it rolls over to the second quarter, but is there still a possibility you still see some in the second quarter as well.

<unk> related to current fuel prices further.

You are correct in your assumption that we are.

For the remainder of the year. It assumes this normalizes beginning in Q2.

Forecasting positive quarters for the rest of the year the partial recapture assumed in the guide is really that it's complete by March.

The only thing that I'd add that did change a bit and profitability outlook.

And that's what we've seen typically historically as bill was describing when we've seen events like this before.

We have a pretty good sense of the duration and the level of partial recapture so right now the guide assumes that there is no further recapture into the second quarter or beyond.

That would put some of the preopening expense and capital expense charges into 2026, and Thats reflected now in the guide.

Okay, and then the follow up.

You said it about every market effectively including California, but maybe give another chance here, maybe you are being overly cautious about this but were there any markets that didn't experience that double whammy weekend, where sales are much higher are there any places where you can point to underlying.

Thank you very much.

Thanks, Mike.

Our next question is from Simeon Gutman with Morgan Stanley.

Hey, Bill Hey, Carl Henning first to start just to paraphrase something when I think Carl said.

You expect to comp positive in all quarters of the year.

<unk> trends, where I understand you don't want to extrapolate for the rest of the country I would assume things were more steady, but if there's any markets that you can speak to be a good opportunity.

And the.

The benefit or the recapture from weather is imputed into your first quarter guide.

And youre, making no assumptions for that it rolls over to the second quarter, but is there still a possibility you still see some in the second quarter as well.

It's really tricky, 80% as well as our estimate of the regions that were impacted.

The way that we look at sizing this was truly on a day by day basis, and comparing weather impacted days versus non weather impacted days, if I was to point to any region specifically it would be our recent new entry into the southeast and sort of the continued momentum we're seeing there in some of our non comp locations specifically in North Carolina.

You are correct in your assumption that we are.

Forecasting positive quarters for the rest of the year the partial recapture assumed in the guide is really that it's complete by March.

And that's what we've seen typically historically as bill was describing when we've seen events like this before.

Lineup.

We have a pretty good sense of the duration and the level of partial recapture so right now the guide assumes that there is no further recapture into the second quarter or beyond.

That's helpful and just to close the loop on those locations would you say theres been any sensitivity to like recent economic shocks or it's too early to say.

Yes, well so far no in fact, we have seen an increase in the customer cohorts across all income demos Simeon and encouragingly the.

Okay, and then the follow up.

Over $150000 income demos have grown faster than the others. They have all grown this year, but the more affluent ones are growing faster and they are buying behavior shifted from a focus on good two more of our better or mid tier pricing, which is very encouraging. So all the behaviors, we're seeing across the cohorts are very encouraging.

Absent the weather impact that when you peel that away, but we really like the underlying momentum across all the cohorts.

Its really tricky to 80% as well as our estimate of the regions that were impacted.

Okay. Thanks, good luck.

Thanks Sumit.

The way that we looked at sizing this was truly on a day by day basis, and comparing weather impacted days versus non weather impacted days, if I wish to point to any region, specifically it would be our recent new entry into the southeast and sort of the continued momentum we're seeing there in some of our non comp locations specifically in North Carolina.

Our next question is from Oliver Winter mantle with Evercore ISI.

Thanks, guys I.

I had a question regarding also the comp guidance throughout the year.

If we assume that we are staying in the low single digits for second third and fourth quarter.

Daina.

As you mentioned it looks like the two year comp would be.

That's helpful and just to close the loop on those locations would you say theres been any sensitivity to like recent economic shocks or it's too early to say.

Would go to a double digit.

Given the second quarter and third quarter, we're already double digits in 2025, if you could maybe just talk a little about about the two year comp and how youre going to.

Yes, well so far no in fact, we have seen an increase in the customer cohorts across all income demos Simeon and encouragingly the.

<unk> double digit comps in the second and third quarter, what's the drivers is conversion.

Over $150000 income demos have grown faster than the others. They have all grown this year, but the more affluent ones are growing faster and they are buying behavior shifted up from focus on good two more of our better or mid tier pricing, which is very encouraging. So all the behaviors, we're seeing across the cohorts are very encouraging.

Traffic some information that would be helpful. Thanks.

Alright, Thanks, Dave Great question. Thank you for that yes look I think.

As we discussed during the IPO Road show.

The big step up in our comp performance last year was because of systemic initiatives that we've been working on for a couple of years, there really created a step change up in performance in our stores that continue throughout the year and into this year. So we're operating at a whole another level. So comping on top of that feels pretty good to us in fact, if you think about this first quarter.

Absent the weather impact that when you peel that away, but we really like the underlying momentum across all the cohorts.

Okay. Thanks, good luck.

Yes, Thanks Sumit.

Our next question is from Oliver Winter mantle with Evercore ISI.

And the guide that we've given.

In fact, a positive comp on top of a positive comp last year as well. So we have high confidence that all the initiatives put in place that were performing last year, continuing to and that will be able to have positive comps on top of those strong quarters that we experienced last year. Karl do you want to add anything to that okay.

Thanks, guys.

I had a question regarding also the comp guidance throughout the year.

If we assume that we are staying in the low single digits for second third and fourth quarter.

As you mentioned it looks like the two year comp would be.

Okay.

Alright. Thank you and then just as a follow up on the gross margin line. If you could maybe talk about the drivers.

Would go to a double digit.

Given the second quarter and third quarter, we're already double digits in 2025, if you could maybe just talk a little about about the two year comp and how youre going to.

In 2026 on your gross margins and if you could maybe the cadence throughout the year. Thank you very much.

Sure. So the guide assumes a relatively consistent year over year gross margin imply.

<unk> double digit comps in the second and third quarter, what's the drivers is conversion.

Implied in that is also some of the gross margin impact that we saw in Q1 typically with a sales impact.

Traffic some information that would be helpful. Thanks.

Alrighty. Thanks, Dave Great question. Thank you for that yes look I think as we discussed during the IPO Road show.

The flow through that would be more concentrated in SG&A.

The big step up in our comp performance last year was because of systemic initiatives that we've been working on for a couple of years, there really created a step change up in performance in our stores. The continued throughout the year and into this year. So we're operating at a whole another level. So comping on top of that feels pretty good to us in fact, if you think about this first quarter and.

In Q1, given the weather impact we did see some gross margin.

Headwind as it relates to some supply chain inefficiencies. So that's going to be reflected in our full year guide, but otherwise it's consistent flat year over year in terms of the midpoint of the guidance range.

Thank you very much and good luck.

Thanks Ali.

The guide that we've given.

It's in fact, a positive comp on top of a positive comp last year as well. So we have high confidence that all the initiatives put in place that were performing last year, continuing to and that will be able to have positive comps on top of those strong quarters that we experienced last year. Karl do you want to add anything to that Thats correct. Okay.

Our next question is from Robby <unk> with Bank of America.

Hey, Bill Hey, Karl Thanks for taking my question I wanted to follow up on just.

Maybe maybe looking at the 20% of stores not impacted by storms.

Any any color you can give on.

Alright. Thank you and then just as a follow up on the gross margin line. If you could maybe talk about the drivers in 2026 on your gross margins and if you could maybe the cadence throughout the year. Thank you very much.

Are you seeing a lot of benefits from tax refunds right now.

Maybe a little more on the customer trade up in those stores are you getting a lot more best versus good going.

Sure. So the guide assumes a relatively consistent year over year gross margin.

I know that you're entering this year with.

Prices a little higher.

Any response to that.

Implied in that is also some of the gross margin impact that we saw in Q1 typically with.

And then maybe in other would just be it sounds like North Carolina is going well have you have you not seen any competitive response to you guys going in there.

Our sales impact you would see flow through that would be more concentrated in SG&A.

Yes, listen I'd Ravi it's good good to hear from you a couple of things related to your questions.

In Q1, given the weather impact we did see some gross margin headwind as it relates to some supply chain inefficiencies. So that's going to be reflected in our full year guide the otherwise, it's consistent flat year over year and in terms of the midpoint of the guidance range.

Number one you mentioned our prices.

One of the things when we when we take price we always do it in a manner that protects value proposition to the consumer we always want to be the best value in the market and so what we've seen is a continued positive consumer response to our prices across our regions. So when we look at the non weather impacted days, we're very encouraged by again the performance across our good better.

Thank you very much and good luck.

Thanks Ali.

Our next question is from Robby <unk> with Bank of America.

Hey, Bill Hey, Karl Thanks for taking my question I wanted to follow up on just.

Your best and this is in all the regions, including the ones that were weather impacted so that's the way we looked at it rather than one region versus another we've looked at each region individually weather versus non weather impacted we looked across the cohorts, we looked across our our product assortment and our good better best and we're really pleased with the performance we've been seeing as I mentioned.

Maybe looking at the 20% of stores not impacted by storms in.

Any any color you can give on.

Are you seeing a lot of benefits from tax refunds right now.

Maybe maybe a little more on the customer trade up in those stores are you getting a lot more best versus good going.

Earlier for example, we've seen all the cohorts stepping up more into the better price tier from good.

And you're entering this year with.

And the more affluent consumers in fact stepping up even more so it's a continuation of the trends we saw last year the weather hit in the middle of the quarter. It was unfortunate, but I couldnt be more proud of the team and how they responded the Bob's way and taking care of the customers fulfilling those deliveries, but then getting back on track with our great values and again as we said.

Prices a little higher.

Any response to that and.

And then many of the other would just be it sounds like North Carolina is going well have you have you not seen any competitive response to you guys going in there.

Yes listen Ravi it's good good to hear from you a couple of things related to your questions.

Seen post weather event in the month of March across our regions. We're really pleased with the momentum on the comp growth that we're seeing going into the second quarter and.

Number one you mentioned our prices.

And let me just jump in there on tax refunds as well. So historically, we have correlated well with tax refund season.

There's a few dynamics in the industry going on right now specifically in March as we see this outperformance.

Certainly the recaptured due to weather demand and you could certainly say that there is tax refund benefit happening in March as well.

And then just a quick follow up.

Sorry, if I missed this but the propensity of your customers to use financing or are you seeing any signs of that going the other direction starting to use financing again.

Now on <unk>.

So far in 2026, it's pretty similar to how we ended the year. So we're closer to that low 40% area, where historically we have been.

Earlier for example, we've seen all the cohorts stepping up more into the better price tier from good and the more affluent consumers in fact stepping up even more so it's a continuation of the trends we saw last year the weather hit in the middle of the quarter. It was unfortunate, but I couldnt be more proud of the team and how they responded the Bob's way and taking.

50%.

We see great opportunity with a new partner coming onboard midyear synchrony, we see several benefits in terms of better approval ratings.

More customer data and analytics, and then better or just overall.

Care of the customers fulfilling those deliveries, but then getting back on track with our great values and again as we've seen post weather event in the month in the month of March across our regions. We're really pleased with the momentum and the comp growth that we're seeing going into the second quarter and.

<unk> terms, so I'm really looking forward to that partnership in helping drive that opportunity to impact.

Got it thank you.

Thanks Roger.

And let me just jump in there on tax refunds as well. So historically, we have correlated well with tax refund season.

Our next question is from Bobby Griffin with Raymond James.

There's a few dynamics in the industry going on right now specifically in March as we see this outperformance.

Good afternoon. Good afternoon, everybody. Thanks for taking the questions I guess first from me Carl could you maybe since <unk> double clicking into the gross margins.

Certainly the recapture due to weather demand and you could certainly say that there is tax refund benefit happening in March as well.

Called out flat for the year, but it seems like you have your the headwind you've got <unk> as a headwind what are some of the good guys to help us get back to flat for the year.

And then just a quick follow up.

Sorry, if I missed this but the propensity of your customers to use financing or are you seeing any signs of that going the other direction starting to use financing again.

Sure.

So one thing we're seeing.

From a full year basis is.

We are looking at maintaining.

Maintaining our.

Now on <unk>.

The playbook that we had last year with the tariff mitigation and we're maintaining our.

So far in 2026, it's pretty similar to how we ended the year. So we're closer to that low 40% area, where historically we have been.

Our dynamic pricing.

Teams to make sure that we're holding to a targeted gross margin that we want to be at so that's really our target area, where we're able to focus on and.

50%.

We see great opportunity with a new partner coming onboard midyear synchrony, we see several benefits in terms of better approval ratings.

<unk> hit our profitability that we see as as where you want to land.

More customer data and analytics, and then better or just overall.

From the headwind in Q1, again thats more weather concentrated in some of the supply chain dynamics happening.

Transaction terms, so I'm really looking forward to that partnership in helping drive that opportunity to impact.

But to your point.

Any fuel cost is not embedded in the guide if that was to extend beyond the first quarter.

Got it thank you.

Thanks Rod.

Yeah.

Alright, I appreciate that and then maybe secondly, just given the environment here is a lot more dynamic and you guys. We don't have as much history may be with the company being out here public can you just talk about the different opportunities inside the P&L you can flex given if things move one way or another.

Our next question is from Bobby Griffin with Raymond James.

Good afternoon. Good afternoon, everybody. Thanks for taking the questions I guess first from me Carl could you maybe since <unk> double clicking into the gross margins.

Called out flat for the year, but it seems like you have fuel was a headwind you've got <unk> as a headwind what are some of the good guys to help us get back to flat for the year.

How you can manage and kind of this more dynamic environment Geo politically.

Sure.

I'll start with is we have a long history of <unk>.

Sure.

One thing we're seeing from.

Managing through any macroeconomic environment.

From a full year basis.

We are looking at maintaining.

That was.

Maintaining our.

Our supply chain dislocation, COVID-19 et cetera financial crisis, and we tend to do better and take market share. During these periods thats been our history because of the value and discounted player. So in terms of <unk>.

The playbook that we had last year with that the tariff mitigation and we're maintaining our.

Our dynamic pricing.

Teams to make sure that we're holding to a targeted gross margin that we want to be at so that's really our target area, where we're able to focus and and hit our profitability that we see as as where you want to land.

Flexing, we're a large player where national coast to coast.

So we're able to use that strength really the size of our business to navigate these these types of environments.

From the headwind in Q1, again thats more weather concentrated in some of the supply chain dynamics happening.

Yes.

You were always Bobby looking at different initiatives to get efficiency, regardless of whether there is economic challenges or not and so a number of the things that we've taken on in the last few years has been reflected in our outsized performance both in our topline growth with strong comps, we saw last year as well as our growing EBITDA margin over the last handful of years.

But to your point.

Any fuel cost is not embedded in the guide if that was to extend beyond the first quarter.

Alright.

I appreciate that and then maybe secondly, just given the environment here is a lot more dynamic and you guys. You know we don't have as much history may be with the company being out here probably can you just talk about the different opportunities inside the P&L you can flex given if things move one way or another.

So we took this company from pre Covid.

Mid to high single digit ebitdas up to around 10% EBITDA for the last three years. So we have a history of being very disciplined operators at the SG&A level as well as driving top line and we're very disciplined in gross margin.

And how you can manage and kind of this more dynamic environment due to geopolitical.

Sure.

I'll start with is we have a long history of.

Just know Karl mentioned, our pricing dynamics. So we have a pricing analytics team that has some very very data driven by market and they can flex our pricing both to protect our value proposition and to protect our margins. So we are very agile and dynamic when it comes to market conditions and I think the recent track record has demonstrated that.

Managing through any macroeconomic environment.

Whether that was.

Supply chain dislocation, COVID-19 et cetera financial crisis, and we tend to do better and take market share. During these periods, that's been our history because of the value and discounted player. So in terms of.

Thank you I appreciate the details best of luck here wrapping up the first quarter.

<unk>, we're a large player where national coast to coast.

Yes, Thanks, Bob.

So we're able to use that strength really the size of our business to navigate these these types of environments.

Our next question is from Brad Thomas with Keybanc capital markets.

Yes.

You were always.

Hi, good afternoon. Thanks for the questions I wanted to start with E Commerce, and maybe seeing if we could follow up around recent trends in E Commerce and I know those will still be somewhat connected to someone visited the store, but curious what you are seeing there of late and then maybe more broadly how you think about e-commerce continuing to drive.

Bobby looking at different initiatives to get efficiency, regardless of whether there's economic challenges or not and so a number of the things that we've taken on in the last few years has been reflected in our outsized performance both in our topline growth. The strong comps, we saw last year as well as our growing EBITDA margin over the last handful of years. So we took this.

Sales going forward here.

Yeah, Hey, Brian it's good to hear from you. If this is bill.

Company from pre Covid.

Yes look we're an omnichannel retailer and e-commerce plays a vital role in that.

Historically or at least in recent years, we've been running about 14% e-commerce and about 76%.

<unk>.

I'm sorry, 86%.

Just know Karl mentioned, our pricing dynamics. So we have a pricing analytics team fits in very very data driven by market and they can flex our pricing both to protect our value proposition and to protect our margins. So we are very agile and dynamic when it comes to market conditions and I think the recent track record has demonstrated that.

Transacted in stores, but honestly, we don't really look at it that way, we look at it as an omnichannel across the board.

The vast majority over 70% of our consumers will Trump will work with us across channels, and we're kind of agnostic, whether they close online or in store, having said that we've put a lot of effort into bringing our E. Commerce environments was 2023 up to par, making sure that it creates a ruined customer experience to the in store.

Thank you I appreciate the details best of luck here wrapping up the first quarter, yes.

Yes, Thanks, Bob.

So that the consumer can add that seamless customer experience as they move between channels and.

Our next question is from Brad Thomas with Keybanc capital markets.

And we're seeing a lot of improved customer satisfaction and transactions on the website. So again, whether they want to transact in the store or online or over the phone its all the same to us.

Hi, good afternoon. Thanks for the questions I wanted to start with E Commerce, and maybe seeing if we can follow up around recent trends in E Commerce and I know those will still be somewhat connected to someone visited the store, but curious what you are seeing there of late and then maybe more broadly how you think about e-commerce continuing to drive.

And in fact during during.

During the weather outage, we were their online being able to take orders and service customers through our E Commerce channel, but it's one of our faster growing channels for sure as customers get more and more comfortable moving between channels, we mentioned in our opening monologue omni.

Sales going forward here.

Yeah, Hey, Brad its good to hear from you. If this is bill yes.

Yes look we're an omnichannel retailer and e-commerce plays a vital role in that.

How many channel cart that we introduced a few years ago. The travels with the customer between channels, that's become very very popular and in fact, it's one of our highest average ticket and highest closing rates are at conversion rates from the Omnichannel cart. So E. Commerce continues to be a vital part of our business, it's a fast growing channel and as.

Historically or at least in recent years, we've been running about 14% e-commerce and about 76%.

<unk>.

I'm sorry, 86%.

Transacted in stores, but honestly, we don't really look at it that way, we look at it as an omnichannel across the board.

The vast majority over 70% of our consumers will Trent will work with us across channels, and we're kind of agnostic, whether they close online or in store, having said that we've put a lot of effort into bringing our E. Commerce environments was 2023 up to par, making sure that it creates a ruined customer experience to the in store.

Mentoring to our physical.

Channels as we think about our omnichannel offering to the consumer.

I appreciate that.

Maybe one other area that we have been getting questions about it.

You are moving into the South and you spoke positively about what youre seeing in North Carolina.

So that the consumer can add that seamless customer experience as they move between channels and we're seeing a lot of improved customer satisfaction and transactions on the website. So again, whether they want to transact in the store or online or over the phone its all the same to us.

But it does.

Unique about the furniture industry is pretty regional industry, both in the style of software and competitors being different and so could you just speak a little bit more of the confidence you have in your ability to be successful in the southeast much like you've been in other regions you've gone into.

In fact during <unk>.

Yes, you bet Brad Great question, Great question, well first off let me back up and say that as we talked about opening stores, but we developed markets. We will spend on average two years planning studying and planning for a new market entry and we did exactly that with Lasalle, obviously, we look at things like our merchants study.

Harmony channel cart that we introduced a few years ago that travels with the customer between channels has become very very popular and in fact, it's one of our highest average ticket and highest closing rates are at conversion rates is from the Omnichannel cart. So E. Commerce continues to be a vital part of our business, it's a fast growing channel and as.

Furniture being bought in those markets the styles et cetera, We study our competitors' set we hope focus groups with consumers to see how our branding and our marketing resonates with consumers. So we spend a great deal of time in a very disciplined way developing our entry plan and as you know North Carolina is Mecca for furniture.

<unk> to our physical.

It is a place that you wouldn't want to enter casually. So we spent a good two years planning that entry and the net result of all that is that those stores opened strong all performing that cohort as all performing above plan and we're really pleased with the reception we've had into the North Carolina market.

Channels as we think about our omnichannel offering to the consumer.

I appreciate that.

Maybe one other area that we have been getting questions about it.

You all moving into the South and you spoke positively about what youre seeing in North Carolina.

But it does.

So we finished the year with six stores I believe in North Carolina were opening another four this year and with that strength. We're also opening into more southern markets, South Carolina, and Tennessee, but again, we're taking the time to study and plan entry into those markets not presuming for a second that this northeastern heritage.

Brand will resonate the same way in the south and in fact, we modified some of our merchandising we modified some of our brand messaging. We kept the core message of course, Bob's way, who we are didn't change, but some of it we modified to that consumer set and boy, what we've really been performing well done there just gives us a ton of confidence to.

Furniture being bought in those markets the styles et cetera, We study our competitors' set while we held focus groups with consumers to see how our branding and our marketing resonates with consumers. So we spend a great deal of time in a very disciplined way developing our entry plan and as you know North Carolina is Mecca for furniture right.

You also heard that we're opening.

Distribution center in Georgia in 2027 that will be able to service all of our stores that we anticipate having in the southeast. So we're really excited about success down there, but Moreover, I think it speaks to the discipline and the methodology, we use to study plan and enter markets.

I appreciate it thank you bill.

Yeah. Thanks, Brett.

Our next question is from Mike Baker with da Davidson.

Okay great.

So we finished the year with six stores I believe in North Carolina. We are opening another four this year and with that strength. We're also opening into more southern markets, South Carolina, and Tennessee, but again, we're taking the time to study and plan entry into those markets not presuming for a second that this northeastern heritage.

Just wanted to follow up really on that last point and talk about maybe this is related to that last point you talk about the local merchandising initiative.

How far along you are in that.

Any particular call out your opportunities there.

Yes, Mike Great question. So look historically Bob's has had the same product offering in all of our stores across the country over the last few years you. In fact, you heard us talking our monologue about an initiative, we call clustering, which is looking at a similar characteristics of stores be it geographic or be it kind of.

Brand will resonate the same way in the south and in fact, we modified some of our merchandising we modified some of our brand messaging. We kept the core message of course, the Bob's way, who we are it didn't change, but some of it some of it we modified to that consumer set and boy, we've really been performing well done there just gives us a ton of confidence to.

Tumor and really kind of fine tuning the offering we have in those markets. We clearly did that as we entered the southeast when you think about <unk>.

You also heard that we're opening a distribution center in Georgia in 2027 that will be able to service all of our stores that we anticipate having in the southeast. So we're really excited about the success down there, but Moreover, I think it speaks to the discipline and the methodology, we use to study plan and enter markets.

<unk> for more light colored furniture et cetera, we anticipate and this is just broadbrush numbers, where we anticipate that roughly 80% of our merchandising will be the same in all the stores across all of our regions and we may vary as much as up to 20%.

I appreciate it thank you bill.

Locally and locally is really regional not really store by store, but regional.

Yeah. Thanks, Brett.

Our next question is from Mike Baker with D. A Davidson.

So we're really focusing a lot on making sure that that we're providing the right merchandise to the consumer at the same time, managing our inventory well, we have rapid turnover much quicker than the industry on average and so we want to maintain that inventory efficiency, but at the same time, bringing the right merchandise to market to those consumers.

Okay great.

Just wanted to follow up really on that last point and talk about maybe this is related to that last point and talk about the local merchandising initiative.

How far along you are in that.

Any particular call out your opportunities there.

That makes sense. Thanks, if I can ask one more you had said something on the in the prepared remarks about going after additional cohorts that you don't hit now just curious if you could give a little more detail on that or is that.

Yes, Mike Great question. So look historically Bob's has had the same product offering in all of our stores across the country over the last few years. In fact, you heard us talking our monologue about an initiative, we call clustering, which is looking at similar characteristics of stores be it geographic or be it kind of.

You don't want to talk about for competitive reasons.

Well I think what we're trying to say Mike was not.

Not that we're not hitting now, but we have a very large customer database right. We've been doing this 35 years and so we have a lot of information about customers and their different behaviors. So we slice and dice that information study and market specifically to different cohorts in different ways and I think that that's a bit of what we were reflecting on when we find.

Tumor and really kind of fine tuning the offering we have in those markets. We clearly did that as we entered the southeast when you think about.

Propensity for more light colored furniture et cetera, we anticipate and this is just broad brush numbers, but we anticipate that roughly 80% of our merchandising will be the same in all the stores across all of our regions and we may vary as much as up to 20% locally and locally it's really regional not really store by store.

In our high value cohort that we think we can fine tune our messaging our fine tune, our merchandising will lean into it will test. It first we're a test and learn organization and then we'll lean into it and we're just constantly doing that turning our customer database and finding ways to attract and go after a new cohorts and I think that's kind of the message we were trying to get across there.

Regional.

We're really focusing a lot on making sure that that we're providing the right merchandise to the.

Consumer at the same time, managing our inventory well, we have rapid turnover much quicker than the industry on average and so we want to maintain that inventory efficiency, but at the same time, bringing the right merchandise to market for those consumers.

Okay, Yeah that makes sense.

Thank you.

Yes.

Our next question is from Peter Benedict with Baird.

Hey, good afternoon guys.

Thanks for taking the question so.

One is just kind of back on the pricing you talked about your dynamic pricing approach it sounds like that.

That being flex with an offset maybe some of the higher cost that come through I'm.

I'm wondering how that maybe.

Well it fits with the broader promotional environment I know you guys arent promotional but of.

Now something you don't want to talk about for competitive reasons.

Well I think what we're trying to say Mike was.

But the industry typically has and so I'm just curious what you've seen navy over last few months on how some of the competitive market have been behaving any changes on that front just kind of curious what you're seeing thank you.

Not that we're not hitting now, but we have a very large customer database right. We've been doing this 35 years and so we have a lot of information about customers and their different behaviors. So we slice and dice that information study in market specifically to different cohorts in different ways and I think that that's a bit of what we were reflecting on when we file.

Yes, Peter Great question. So look a couple of things over the last three years, we implemented a pricing analytics function here pause that allowed us to take a look at zone pricing around the country.

That high value cohort that we think we can fine tune our messaging our fine tuned our merchandising will lean into it will test. It first we're a test and learn organization and then we'll lean into it and we're just constantly doing that churning, our customer database and finding ways to attract and go after a new cohorts and I think that's kind of the message we were trying to get across there.

And really get specific as to opportunities in competitor dynamics in different markets and that capability really came home and helped us a great deal during during the.

Tariff period.

We were able to maintain our value commitment to the consumer at the same time protect our merchandize margins. So.

Okay, Yeah that makes sense. Thank you.

So we have the capability now to be very flexible by market to maintain that commitment and protect margins.

Yes.

Our next question is from Peter Benedict with Baird.

Look the competitors make make moves at different times as you called out quite rightly, we're an everyday low price player. We don't promote but where we see that we have an opportunity to.

Hey, good afternoon guys.

Thanks for taking the questions. So.

One is just kind of back on the pricing you talked about your dynamic pricing approach it sounds like.

That being flex with an offset maybe some of the higher cost that come through I'm.

Reduced price to protect our value proposition or in some cases take price to protect our margin. We can do that in a very surgical plan and thoughtful way and so as we sit here today and I'm proud to say that we maintain our commitment in every market. We serve to the consumer who has the right to know that when they come into our bobs or getting the very best value.

Im wondering how that may be.

With the broader promotional environment I know you guys arent promotional but the but.

But the industry typically has and so I'm just curious what you've seen navy over last few months on how some of the competitors market have been behaving any changes on that front just kind of curious what you're seeing thank you.

And so that's how we think about managing our pricing, but we're not promotional we don't run sales, we've never run a sale, but will change our prices as we need to achieve those two objectives I just mentioned.

Yes, Peter Great question. So look a couple of things over the last three years, we implemented a pricing analytics function here at <unk> that allowed us to take a look at zone pricing around the country.

Okay got it and I guess my follow up maybe for you just back from the therapy shoot it felt like.

And really get specific as to opportunities in competitor dynamics in different markets and that capability really came home and helped us a great deal during during the <unk>.

It felt like the outlook assumes the post SCOTUS ruling.

There are regime I guess.

Is that is that the right way to think about it.

Tariff period.

We were able to maintain our value commitment to the consumer at the same time protect our merchandize margins. So.

And I guess when does that really start to affect you.

Those rates different rates to be helping you in the back half of the year or just maybe a little bit more on that would be helpful. Thanks.

So we have the capability now to be very flexible by market to maintain that commitment and protect the margins.

Sure. So the assumption in the guide is really current policy. So post ruling we're not making any assumption about any follow up.

Look the competitors make make moves at different times as you called out quite rightly, we're an everyday low price player. We don't promote but where we see that we have an opportunity to.

In terms of implications for some sort of other offset so the guide assumes current policy pre ruling and how we've already been structured the pricing dynamics in the vendor contributions that we did to offset those tariff costs tariff costs. So that's what's assumed in the guidance.

Reduced price to protect our value proposition or in some cases take price to protect our margin. We can do that in a very surgical plan and thoughtful way and so as we sit here today and I'm proud to say that we can maintain our commitment in every market. We serve to the consumer who has the right to know that when they come into our bobs or getting the very best value.

Got it thanks, so much.

Yes, Thanks Peter.

Thank you our last question is from Anthony Cal combo with <unk>.

Capital markets.

Okay afternoon. Thanks for squeezing me in congratulations with the IPO.

Obviously, there's a lot of macroeconomic uncertainty.

Okay got it and I guess my follow up maybe just back to the therapy shoot it sound like.

Well you can make some.

Sort of sub optimal housing markets like how do you think about the opportunity, let's say that.

It felt like the outlook assumes the post SCOTUS ruling.

Sara regime I guess.

U S housing market.

Is that the right way to think about it.

In 2026.

And I guess when does that really start to affect you.

How do you think about the opportunities for you in that in that scenario from the outside perspective.

Those rates different rates to be helping you in the back half of the year or just maybe a little bit more on that would be helpful. Thanks.

<unk>.

Yes, Anthony Great question. Thank you. So look first off we are not necessarily tied to housing we prosper in all macroeconomic climates.

Sure. So the assumption in the guide is really current policy. So post ruling we're not making any assumption about any follow up.

Good and challenged again, we've been around for 35 years, we've seen all kinds of different macro environments. We know how to deal with all of them one of the things that we've learned along the way is that value is always involved and there is always demand for furniture and so if we stay true to our knitting and true to our value proposition, there's always plenty of dynamic.

In terms of implications for some sort of other offset so the guide assumes current policy pre ruling and how we've already been structured the pricing dynamics in the vendor contributions that we did to offset those tariffs tariff costs. So that's what's assumed in the guidance.

Demand for furniture, and we tend to pick up market share in those times.

Got it thanks, so much.

We're also very agile so we can make moves as needed.

Yes, Thanks Peter.

Yeah.

Pending on the macro but again, we really do prosper in all economic times theirs.

Thank you our last question is from Anthony Cal combo with <unk>.

Capital markets.

It's interesting even though furniture is a discretionary purchase it's not optional alright every home in America is furniture furniture has its own lifecycle.

Okay afternoon. Thanks for squeezing me in congratulations with the IPO.

Obviously, there's a lot of macroeconomic uncertainty.

<unk> changed.

<unk> have gone well, even in some not sort of sub optimal housing markets like how do you think about the opportunity, let's say that.

<unk> said I think in our prepared remarks, right young people start their first home and start a family of retired upsize downsize and in the distressed macro environments.

U S housing market.

In 2026 like how do you think about the opportunities for you in that in that scenario for what upside perspective. Thank you.

He is even more important and so we really see that we pick up market share in challenging times. So we would certainly benefit for many housing recovery, but theres no housing recovery presumed in our guidance and in meantime, we're just making sure we deliver those values to the consumers that they've come to expect from bonds, yes, just to reiterate.

Yes, Anthony Great question. Thank you. So look first off we're not necessarily tied to housing we prosper in all macroeconomic climate scope.

Good and challenged again, we've been around for 35 years, we've seen all kinds of different macro environments. We know how to deal with all of them one of the things that we've learned along the way is that value is always invoke and theres always demand for furniture, and so if we stay true to our knitting and true to our value proposition, there's always plenty of dynamic.

What Bill said the midpoint of our guidance assumes no potential housing recovery or change in consumer really no major change to macro for the better or worse.

Certainly we would benefit from a housing recovery and that would be on the upper end of the guidance range.

Man for furniture, and we tend to pick up market share in those times.

Got it and then just as a quick follow up.

Brian singer.

Commentary on financing.

We're also very agile so we can make moves as needed.

<unk>.

If I recall correctly, so synchronous could be your first of all could you also have a second look.

Pending on the macro but again, we really do prosper in all economic times theirs.

Our credit provider and then also we started can you just remind me about <unk>.

It's interesting even though furniture is a discretionary purchase it's not optional right every home in America is furniture furniture has its own lifecycle.

So credit waterfall.

Sure. That's correct. So we do have a full waterfall.

Needs change as.

We have.

Several different tertiary.

As we said I think in our prepared remarks right young people start their first home and start a family of retired upsize downsize and then in the distressed macro environments values, even more important and so we really see that we pick up market share in challenging times. So we would certainly benefit from any housing recovery.

<unk> and we have a lease to own buy now pay later the majority of the financing sales are in that first year, which would be a significant opportunity as we migrate over to synchrony.

Got it thank you.

Yes, you bet.

But theres no housing recovery presumed in our guide and in meantime, we are just making sure we deliver those values to the consumer that they've come to expect from box, yes, just to reiterate what bill said the midpoint of our guidance assumes no potential housing recovery or change in consumer really no major change to macro for the better or worse.

Thank you we have reached the end of our question and answer session I would now like to hand, the floor back over to management for any closing remarks.

Yes. Thank you operator listen I want to thank everybody for joining us today, and we look forward to speaking with all of you again on our next earnings call. Thanks for joining us picture.

This concludes today's conference you may disconnect your lines at this time. Thank you for your participation.

So certainly we would benefit from a housing recovery and that would be on the up and up the guide range.

Got it and then just as a quick follow up I was curious.

Senior common.

Commentary on financing.

Sure.

If I recall correctly.

It could be your first if you also have a second look.

Our credit provider and then also we saw can you just remind me about the types of credit waterfall.

Sure. That's correct. So we do have a full waterfall.

We have.

Several different tertiary labels and we have a lease to own buy now pay later the majority of the financing sales are in that first tier which would be a significant opportunity as we migrate over to synchrony.

Got it thank you.

Yes, you bet.

Thank you we have reached the end of our question and answer session I would now like to hand, the floor back over to management for any closing remarks.

Yes. Thank you operator listen I want to thank everybody for joining us today, and we look forward to speaking with all of you again on our next earnings call. Thanks for joining us take care.

This concludes today's conference you may disconnect your lines at this time. Thank you for your participation.

Q4 2025 Bob's Discount Furniture Inc Earnings Call

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