European Wax Center Inc (EWCZ) 2025 Q1 法說會逐字稿

Good morning, ladies and gentlemen and thank you for standing by. Welcome to European Wax Center's first quarter fiscal 2025 earnings call. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a question-and-answer session. In order to facilitate as many participants as possible, we ask that you please limit yourself to one question and one follow up during the Q&A session. If you have additional questions, you may rejoin the queue. On the call today are Chris Morris, Chairman and Chief Executive Officer, and Tom Kim, Chief Financial Officer. I would now like to turn the conference over to Bethany Johns, director of investor relations. Then we may begin.

女士們、先生們，早安，謝謝你們的支持。歡迎參加歐洲蠟中心 2025 財政年度第一季財報電話會議。此時，所有參與者都處於只聽模式。演講者演講結束後，將有問答環節。為了方便盡可能多的參與者，我們要求您在問答環節中只提出一個問題並進行一次跟進。如果您還有其他問題，可以重新加入佇列。今天參加電話會議的有董事長兼首席執行官克里斯莫里斯 (Chris Morris) 和首席財務官湯姆金 (Tom Kim)。現在我想將會議交給投資者關係總監 Bethany Johns。然後我們就可以開始了。

Good morning, everyone. Thank you and welcome to European Wax Center's first quarter fiscal year 2025 earnings call. On today's call, Chris Morris will provide an update on his first full quarter with the company and discuss additional details regarding progress made on our priorities. Then Tom will discuss our first quarter performance and fiscal 2025 outlook. Following the prepared remarks, the team will be available to take questions. Before we start, I would like to remind you of our legal disclaimer. We will make certain statements today which are forward-looking within the meaning of the federal securities laws, including statements about the outlook of our business and other matters referenced in our earnings release issued today. These forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially. Please refer to our SEC filings as well as our earnings release issued today for a more detailed description of the risk factors that may affect our results. Please also note that these forward-looking statements reflect our opinions only as of the date of this call, and we take no obligation to revise or publicly release the results of any revision to our forward-looking statements in light of new information or future events. Also, during this call, we will discuss non-GAAP financial measures which adjust our GAAP. To eliminate the impact of certain items, you will find additional information regarding these non-gap financial measures and a reconciliation of these non-GAAP to GAAP measures in our earnings release. A live broadcast of this call is also available on the investor relations section of our website at investors.waxcenter.com. I will now turn the call over to Chris Morris. Chris.

大家早安。謝謝您，歡迎參加歐洲蠟中心 2025 財年第一季財報電話會議。在今天的電話會議上，克里斯莫里斯將介紹他在公司工作的第一個完整季度的最新情況，並討論有關我們優先事項進展的更多細節。然後湯姆將討論我們的第一季業績和 2025 財年展望。準備好發言後，團隊將回答問題。在我們開始之前，我想提醒您注意我們的法律免責聲明。我們今天將做出一些符合聯邦證券法含義的前瞻性聲明，包括有關我們業務前景和今天發布的收益報告中提及的其他事項的聲明。這些前瞻性陳述涉及許多風險和不確定性，可能導致實際結果大不相同。請參閱我們向美國證券交易委員會提交的文件以及我們今天發布的收益報告，以獲得可能影響我們業績的風險因素的更詳細描述。另請注意，這些前瞻性陳述僅反映我們截至本次電話會議之日的觀點，我們不承擔根據新資訊或未來事件修改或公開發布前瞻性陳述修訂結果的義務。此外，在本次電話會議中，我們將討論調整我們 GAAP 的非 GAAP 財務指標。為了消除某些項目的影響，您可以在我們的收益報告中找到有關這些非差距財務指標的更多資訊以及這些非 GAAP 指標與 GAAP 指標的對帳。本次電話會議的現場直播也可在我們網站的投資者關係部分（網址：investors.waxcenter.com）上觀看。現在我將電話轉給克里斯莫里斯。克里斯。

Okay, thank you, Bethany and good morning everyone. Thank you for joining us to discuss European Wax Center's first quarter 2025 financial performance. I'm pleased to share that we delivered solid first quarter results of USD225.9 million in system-wide sales, 70 basis points of positive same sort of sales growth, and USD18.8 million in adjusted EBITDA. These results demonstrate that our guests value our unparalleled waxing services, and our business is on the right track, enabling us to reiterate our outlook today. At the same time, we recognize the consumer backdrop and supply chain environment remain uncertain. I want to emphasize that the fundamentals of our model remain strong, and we are actively managing these dynamics which Tom will speak to in the second half of today's call. But first, I'd like to take a moment to share a few reflections from my 1st 100 days with EWC.

好的，謝謝你，Bethany，大家早安。感謝您加入我們討論歐洲蠟中心 2025 年第一季的財務表現。我很高興地告訴大家，我們第一季取得了穩健的業績，全系統銷售額達到 2.259 億美元，同類銷售額增長了 70 個基點，調整後 EBITDA 達到 1880 萬美元。這些結果表明我們的客人重視我們無與倫比的打蠟服務，並且我們的業務正走在正確的軌道上，這使我們能夠重申今天的展望。同時，我們認識到消費者背景和供應鏈環境仍然不確定。我想強調的是，我們模型的基本面仍然強勁，我們正在積極管理這些動態，湯姆將在今天電話會議的後半部分談到這些動態。但首先，我想花點時間分享一下我在 EWC 工作的第一個 100 天的一些想法。

Over the past few months, I've spent a lot of time visiting centers across some of our largest markets coast to coast from New York and New Jersey to Florida and California and several states in between. I've been interfacing heavily with our franchise partners, associates, guests, and stakeholders with a goal of understanding our competitive advantages and setting the priorities for sustainable growth. As a result, my belief in EWC's potential has never been stronger. I'm invigorated by the passion we all share for this iconic brand and the incredible work our talented franchisees and associates do each day to deliver the unparalleled guest experience unique to European Wax Center. My 1st 100 days haven't just been a period of listening learning. They've also been a time of action. As I mentioned last quarter, it's evident that we have a lot of opportunities to solidify the foundation of this business. We've already taken a lot of steps designed to improve execution, strengthen operations, and build momentum.

在過去的幾個月裡，我花了很多時間參觀我們一些最大市場的中心，從紐約和新澤西到佛羅裡達和加利福尼亞，以及其間的幾個州。我一直與我們的特許經營合作夥伴、同事、客人和利益相關者密切交流，目的是了解我們的競爭優勢並設定可持續增長的優先事項。因此，我對 EWC 潛力的信心從未如此強烈。我們對這個標誌性品牌的熱情以及我們才華橫溢的加盟商和員工每天所做的出色工作讓我深受鼓舞，他們為歐洲蠟像中心帶來了無與倫比的客戶體驗。我的第一個 100 天不僅僅是一段聽力學習期。這也是採取行動的時期。正如我上個季度提到的，很明顯我們有很多機會鞏固這項業務的基礎。我們已經採取了許多措施來改善執行力、加強營運和增強動力。

I believe 2025 is a reset year, but let me be clear, what we need to do to reignite our growth isn't complex because the core of our concept remains strong. We need to focus on the basics, bring energy back to the brand, and ensure we have the tools needed to execute flawlessly. This includes modernizing the marketing engine, making sure franchisees are set up for success, and being disciplined and strategic in our approach to new center expansion. Together with my new executive team, we are sharpening our vision for the future. We continue to ground our actions in driving sales, improving for profitability, and reigniting unit growth, which I believe are critical to delivering near-term results and best positioning us to revitalize our long-term growth story. I'm incredibly proud of the progress we've made on each of these priorities over the past two months, and I'm excited to walk you through our accomplishments and our action plans for Q2 and beyond.

我相信 2025 年是重置之年，但讓我明確一點，我們需要做的事情來重新點燃我們的成長並不復雜，因為我們的理念核心依然強大。我們需要專注於基本面，為品牌注入活力，並確保我們擁有完美執行所需的工具。這包括使行銷引擎現代化、確保加盟商成功、以及在新中心擴張的方法上採取紀律性和策略性。我和我的新管理團隊正在一起銳化對未來的願景。我們將繼續採取行動推動銷售、提高獲利能力並重新激發單位成長，我相信這對於實現近期業績和讓我們重振長期成長前景至關重要。我對我們在過去兩個月在每一個優先事項上所取得的進展感到無比自豪，我很高興向你們介紹我們在第二季度及以後所取得的成就和行動計劃。

First, driving sales through traffic growth. Our core guests continue to love European Waxing and remain stable, but to increase four wall sales and profitability, we need to drive more new guests and get non-core guests to visit us more often and to do that well, we are building a data-rich digital first marketing engine underpinned by a clear and relevant brand identity. Our marketing team is acting with conviction to deliver near term wins by laying the groundwork to fuel sustainable long-term sales growth. We are methodically and deliberately approaching this effort from a few angles. We began in Q4 by building the measurement foundation to truly understand our advertising effectiveness and support a modern approach to marketing.

第一，透過流量成長拉動銷售。我們的核心客戶繼續喜愛歐洲除毛並且保持穩定，但為了增加四面牆的銷售額和盈利能力，我們需要吸引更多的新客戶並讓非核心客戶更頻繁地光顧我們，為了做好這一點，我們正在構建一個數據豐富的數字優先營銷引擎，並以清晰相關的品牌標識為基礎。我們的行銷團隊堅定地採取行動，為推動長期可持續的銷售成長奠定基礎，從而取得短期勝利。我們正從幾個角度有條不紊地、慎重地進行這項工作。我們從第四季度開始建立測量基礎，以真正了解我們的廣告效果並支持現代行銷方法。

We introduced that technology in Q1 and as a result, we are leveraging our data with our digital social media partners better than ever before, enabling our media dollars to be more efficient and lowering our cost per acquisition. Most importantly, we're seeing early signs of traction with new guests. On a 2-year basis, 2025 new guest trends have improved each month, given us confidence that we're headed in the right direction. In terms of non-core guests, we're significantly increasing our ability to engage with them through email and SMS, which should enable us to unlock additional visits. This is a great example of the kind of basic sharpen the edges opportunities we have uncovered which we anticipate will result in better guest engagement. We're still not where we need to be, but we're pleased with the progress we've made so far. To drive new guest acquisition for the long term, we are redefining our target guest profile and reinvigorating our brand identity. We performed extensive research and testing in Q1 that has given us 3 valuable insights.

我們在第一季推出了這項技術，因此，我們能夠比以往更好地利用與數位社群媒體合作夥伴的數據，使我們的媒體資金更加高效，並降低每次收購的成本。最重要的是，我們看到了新客人受到歡迎的早期跡象。以兩年計算，2025 年新客人趨勢每月都有所改善，這讓我們有信心朝著正確的方向前進。對於非核心客人，我們正在顯著提高透過電子郵件和簡訊與他們互動的能力，這將使我們能夠獲得更多的訪問量。這是我們發掘出的提升邊緣機會的一個很好的例子，我們預計這將帶來更好的客人參與度。我們還沒有達到我們需要的水平，但我們對迄今為止的進展感到滿意。為了長期吸引新客人，我們正在重新定義目標客人形象並重塑我們的品牌形象。我們在第一季進行了廣泛的研究和測試，並獲得了 3 個寶貴的見解。

First, out of home waxing still represents a large and stable addressable market. Second, we can cast a wider net with new guests by leaning into those who offer a higher lifetime value and are more profitable and more likely to be retained. And third, we can deliver a clear message that better resonates with the high value guests I just described. Armed with this new information, we are taking immediate action to improve marketing content this quarter. The initial phase of refining our message and creative assets is already underway with a new champion ad expected to be live for the peak summer waxing season.

首先，戶外打蠟仍然是一個龐大且穩定的潛在市場。其次，我們可以更廣泛地吸引新客人，傾向於那些提供更高終身價值、更有利可圖且更有可能被留住的客人。第三，我們可以傳遞清晰的訊息，更好地引起我剛才描述的高價值客人的共鳴。有了這些新訊息，我們將立即採取行動，改善本季的行銷內容。我們對資訊和創意資產進行改進的初始階段已在進行中，新的冠軍廣告預計將在夏季打蠟高峰期上線。

We plan to launch bigger, more holistic brand strategy work later this year. Together with improvements we've made leveraging data and lowering our cost of acquisition. We expect to refine our marketing mix and more effectively drive traffic in the second half of 2025. As a reminder, this is a key assumption in the high end of our outlook. Our second area of focus is cultivating a more effective corporate infrastructure to support franchisees, facilitating higher for all profitability through operational excellence. We realize franchisees are the primary customers we serve, and their success drives our success. Our immediate priority is to narrow the gap between underperforming centers and the broader network. We've increased the capacity of our franchisee support team and we're spending more time working hand in hand with operators.

我們計劃在今年稍後啟動更大、更全面的品牌策略工作。我們也利用數據做出了改進並降低了收購成本。我們預計將在 2025 年下半年改進我們的行銷組合併更有效地推動流量。提醒一下，這是我們展望高端的關鍵假設。我們的第二個重點領域是培育更有效的企業基礎設施來支援特許經營商，透過卓越的營運促進所有人實現更高的獲利能力。我們意識到特許經營者是我們服務的主要客戶，他們的成功推動著我們的成功。我們的當務之急是縮小表現不佳的中心與更廣泛的網絡之間的差距。我們增加了特許經營者支援團隊的能力，並花更多時間與營運商攜手合作。

We recently deployed new tools that offer enhanced tracking, accountability and transparency, making it easier than ever for both us and our franchise partners to see opportunities and action plans. Our operations team is also driving 50% more engagement with our learning management system combined these actions have started to generate KPI improvement underperforming centers regarding our long-term goal of operational excellence, we've made progress on our search for a strong Chief Operating Officer to evolve our structure and processes. We also look forward to engaging with our partners next week at our annual franchisee event where we will reinforce our aligned focus on reigniting sustainable, profitable growth both at the individual center level and across the network as a whole.

我們最近部署了新的工具，提供增強的追蹤、問責和透明度，使我們和我們的特許經營合作夥伴比以往更容易看到機會和行動計劃。我們的營運團隊也推動了學習管理系統參與度的提高，這些舉措相結合，已開始對錶現不佳的中心進行 KPI 改進，以實現我們卓越運營的長期目標，我們在尋找強有力的首席營運官來改進我們的結構和流程方面取得了進展。我們也期待下週在我們的年度特許經營活動上與我們的合作夥伴進行交流，我們將在活動中強調我們的一致重點，即重新點燃單一中心層面和整個網路的可持續獲利成長。

Moving to my 3rd focus area, implementing a more sophisticated development approach focused on thoughtful, profitable expansion. We continue to partner closely with franchisees to evaluate near-term growth plans while prioritizing long-term network health to prepare for 2026 new center openings, we've identified under penetrated trade areas with strong existing demand for out of home hair removal, which we believe will pave the way for franchisees to resume unit growth while best positioning their centers for success. Longer term, we plan to utilize a more strategic development approach. We've upgraded our market planning tool to a purpose-built solution with enhanced analytics and forecasting capabilities.

轉到我的第三個重點領域，實施更複雜的開發方法，重點是深思熟慮、有利可圖的擴張。我們繼續與特許經營商密切合作，評估近期增長計劃，同時優先考慮長期網絡健康狀況，為 2026 年新中心的開業做好準備，我們已經確定了滲透率較低的貿易區，這些地區對戶外脫毛有強勁的需求，我們相信這將為特許經營商恢復單位增長鋪平道路，同時為他們的中心找到最佳的成功定位。從長遠來看，我們計劃採用更具策略性的發展方法。我們已將市場規劃工具升級為具有增強分析和預測功能的專用解決方案。

This leap in sophistication should enable us to more accurately model new site potential moving forward. We've also implemented a rigorous site approval process for new centers. We believe that both of these actions should enable better new center performance and support more sustainable growth over time. Ultimately, we remain confident that our efforts to drive sales and improve four wall profitability will best position the network to return to net unit growth by the end of 2026 and last but not least, we've made substantial progress in assembling a team of season leaders who will help execute these priorities for 2025 and beyond.

這種複雜程度的飛躍應該使我們能夠更準確地模擬新站點未來的潛力。我們也對新中心實施了嚴格的場地審批流程。我們相信，這兩項措施都將使新中心的業績更加出色，並支持更永續的成長。最終，我們仍然相信，我們推動銷售和提高四牆盈利能力的努力將使網絡在 2026 年底之前恢復淨單位增長，最後但同樣重要的是，我們在組建季度領導團隊方面取得了實質性進展，他們將幫助執行 2025 年及以後的這些優先事項。

Our Chief Commercial Officer, Katie Mullen, and Chief Information and digital Officer, Chris Andrews, officially joined at the end of Q1 and are off to a running start, and they've done a tremendous amount of work in the short time they've been with us. And finally, I'm excited to introduce Tom Kim, our new Chief Financial Officer, for the first time today. Tom joined us last month and is a strategic CFO with franchise experience and a history of driving profitable growth. He will be a valuable and impactful partner in executing our strategic priorities and reigniting growth for a European wax Center, and I look forward to all of you getting to know him better in the coming weeks and months. So, with that, I'll pass things over to Tom to review our Q1 financial results and our outlook for 2025, Tom.

我們的首席商務官凱蒂·馬倫 (Katie Mullen) 和首席資訊及數位長克里斯·安德魯斯 (Chris Andrews) 於第一季末正式加入，並取得了良好的開端，他們在加入我們的短時間內完成了大量工作。最後，我很高興今天首次介紹我們的新任財務長湯姆金 (Tom Kim)。湯姆 (Tom) 上個月加入我們，他是一位策略首席財務官，擁有特許經營經驗和推動盈利增長的歷史。他將成為我們執行策略重點和重振歐洲蠟中心成長的寶貴且有影響力的合作夥伴，我期待大家在未來幾週和幾個月內更了解他。因此，我將把事情交給湯姆來審查我們的第一季財務表現和 2025 年的展望，湯姆。

Thank you, Chris. I'm excited to be on my first earnings call as part of the European Wax Center team. With my background leading finance for consumer and franchise businesses, it was easy to see that EWC's category leadership position, meaningful white space, and strong free cash flow profile offer a compelling and attractive opportunity. I look forward to partnering with the team and our franchisees to capitalize on our opportunities as we solidify our foundation and reinvigorate our unit growth.

謝謝你，克里斯。我很高興能作為歐洲蠟中心團隊的一員參加我的第一次收益電話會議。憑藉我領導消費者和特許經營業務財務的背景，很容易看出 EWC 的類別領導、有意義的空白空間和強大的自由現金流狀況提供了一個引人注目且極具吸引力的機會。我期待與團隊和我們的特許經營商合作，利用我們的機會鞏固我們的基礎並重振我們的單位成長。

Before I begin my remarks, I'd like to remind everyone that our discussion of growth rates on this call referred to the first quarter of fiscal 2025 compared to the first quarter of fiscal 2024. For comparability purposes, please note that our centers are closed on Easter Sunday, which fell in Q1 fiscal 2024 but shifted to Q2 fiscal 2025. Now to our results. We ended Q1 with 1,062 centers representing 1% growth year over year. We had 5 gross openings during the quarter and 10 closures, resulting in 5 net center closures. We were expecting 6 to 7 net closures but benefited from an opening that shifted forward into Q1.

在我開始發言之前，我想提醒大家，我們在這次電話會議上討論的成長率是指 2025 財年第一季與 2024 財年第一季的比較。為了方便比較，請注意，我們的中心在復活節星期天關閉，該節日原定於 2024 財年第一季度，但已轉移到 2025 財年第二季度。現在來看看我們的結果。我們第一季結束時擁有 1,062 個中心，年增 1%。本季我們總共開設了 5 家門市，關閉了 10 家門市，因此淨關閉了 5 家門市。我們原本預計會有 6 到 7 家門市淨關閉，但受益於第一季提前開業。

System-wide sales increased 2.1% to USD225.9 million from USD221.4 million, with year over year growth driven by the shift in the Easter holiday and payment timing. Same store sales crew 70-basis points. Adjusting for the Easter shift, we estimate it would have been approximately flat. While transaction growth remains pressured, as Chris mentioned, we're starting to see some improvement in new guest trends. We are still in the early stages of enhancing our marketing and operational capabilities under the leadership of our new executive team, and we're excited about the work we're doing to drive top line momentum. Total revenue of USD51.4 million decreased approximately 400,000 or 90-basis points, primarily due to lower retail and wholesale product revenue. Additionally, this is the final quarter we are lapping a COVID-related surcharge with product revenue that we eliminated early last year.

全系統銷售額從 2.214 億美元成長 2.1% 至 2.259 億美元，年成長主要得益於復活節假期和付款時間的變化。同店銷售額成長70個基點。根據復活節的變化進行調整後，我們估計它會大致持平。儘管交易成長仍然面臨壓力，但正如克里斯所提到的，我們開始看到新客人趨勢有所改善。在新管理團隊的領導下，我們仍處於提升行銷和營運能力的早期階段，我們對推動營收成長動能所做的工作感到非常興奮。總收入為 5,140 萬美元，減少約 40 萬美元或 90 個基點，主要原因是零售和批發產品收入下降。此外，這是我們最後一個季度將與 COVID 相關的附加費與去年年初取消的產品收入進行疊加。

Q1 revenue exceeded our internal expectations due to franchisee order patterns and a successful retail promotion both of which we believe pulled forward some demand. As expected, gross margin increased modestly to 74.2%, primarily due to a higher mix of royalty and marketing fees. SG and A expenses increased USD1.9 million to USD15.3 million, primarily driven by higher stock-based compensation and executive severance costs that we exclude from adjusted EBITDA. Advertising expense decreased USD1.4 million due to the timing of spend within the fiscal year. Adjusted EBITDA of USD18.8 million increased 7.2% from USD17.5 million in the prior year period. Adjusted EBITDA margin increased to 36.5% from 33.7% and was higher than our full year expectations of approximately 33% due to the revenue, advertising and SGN expense timing that benefited Q1. Net interest expense increased slightly to USD6.6 million and income tax expense increased to USD1.4 million from USD1.2 million last year. Adjusted net income increased 10.3% to USD9.5 million from USD8.6 million last year. We have updated our definition of adjusted net income to better align the metric with management's review of our core ongoing operations by excluding non-cash amortization of intangible assets.

由於特許經營商的訂單模式和成功的零售促銷，第一季的收入超出了我們的內部預期，我們相信這兩者都拉動了一些需求。正如預期的那樣，毛利率小幅增長至 74.2%，這主要歸因於特許權使用費和行銷費用的增加。銷售及行政開支增加 190 萬美元，達到 1,530 萬美元，主要原因是我們從調整後的 EBITDA 中排除了更高的股票薪酬和高管遣散費用。由於財政年度內的支出時間安排，廣告費用減少了 140 萬美元。調整後 EBITDA 為 1,880 萬美元，較去年同期的 1,750 萬美元成長 7.2%。調整後的 EBITDA 利潤率從 33.7% 上升至 36.5%，高於我們全年預期的約 33%，這得益於第一季的營收、廣告和 SGN 費用時機的有利影響。淨利息支出小幅增加至 660 萬美元，所得稅支出從去年的 120 萬美元增加至 140 萬美元。調整後淨收入從去年的 860 萬美元成長 10.3% 至 950 萬美元。我們更新了調整後淨收入的定義，透過排除無形資產的非現金攤銷，使該指標與管理層對我們核心持續經營業務的審查更好地保持一致。

Please refer to the earnings released for further details and a reconciliation to adjusted net income as reported in prior periods. Lastly, as a housekeeping item, as of May 9, 2025, there are 43.3 million Class A common shares outstanding and 22.1 million potentially diluted shares related to Class B shares and outstanding equity awards. Now turning to the balance sheet, our USD40 million revolver remains fully undrawn, and we ended the quarter with USD58.3 million in cash and USD389 million outstanding under our senior secured notes. Our net leverage ratio at quarter end was 4.3 times and would have been approximately 3.8 times, excluding the USD41.2 million in stock buybacks we executed during the trailing 12 months.

請參閱已發布的收益以了解更多詳細資訊以及與前期報告的調整後淨收入的對帳。最後，作為一項日常事務，截至 2025 年 5 月 9 日，共有 4,330 萬股 A​​ 類普通股在流通，另有 2,210 萬股與 B 類股票和流通股權獎勵相關的潛在稀釋股份在流通。現在轉向資產負債表，我們的 4000 萬美元循環信貸仍未全部提取，本季度末我們擁有 5830 萬美元現金和 3.89 億美元的優先擔保票據未償還餘額。我們季末的淨槓桿率為 4.3 倍，如果不包括過去 12 個月我們執行的 4,120 萬美元股票回購，則約為 3.8 倍。

As of quarter end, we had USD8.8 million remaining under our USD50 million share repurchase authorization. In terms of our capital allocation priorities. Our attractive asset li and capital li franchise model continued to generate healthy free cash flow that we believe will enable us to remain opportunistic. Q1 was yet another strong quarter, as net cash provided by operating activities was USD12.7 million compared to USD700,000 in investing cash outputs. We remain comfortable meeting our debt service obligations under our flexible whole business securitization.

截至季末，我們的 5,000 萬美元股票回購授權中還剩餘 880 萬美元。就我們的資本配置優先順序而言。我們具有吸引力的資產負債率和資本負債率特許經營模式繼續產生健康的自由現金流，我們相信這將使我們能夠保持機會主義。第一季又是一個強勁的季度，經營活動提供的淨現金為 1,270 萬美元，而投資現金產出為 70 萬美元。在靈活的整體業務證券化下，我們仍然能夠輕鬆履行債務償還義務。

And we value the optionality to invest in reigniting our core business while maintaining a strong balance sheet to position us well through a variety of macroeconomic conditions. Turning now to our outlook for 2025, which we are reiterating today. Let me start with our underlying assumptions which are based on a stable consumer environment in 2025. As a reminder, in March, we shared that the high end of our outlook assumed that our marketing efforts would begin to drive more traffic in the back half of 2025 with trends improving through the second half. The lower end of our outlook assumes that while we make progress against our priorities, the modest transaction decline we continue to see in mature centers persist throughout this year.

我們重視投資重振核心業務的選擇權，同時保持強勁的資產負債表，以便我們在各種宏觀經濟條件下保持良好地位。現在我們來談談我們對 2025 年的展望，今天我們重申這一點。首先，我要介紹我們的基本假設，這些假設是基於 2025 年穩定的消費環境。提醒一下，我們在三月分享了我們展望的高端假設，即我們的行銷工作將在 2025 年下半年開始帶來更多流量，並且下半年趨勢會有所改善。我們的低端展望假設，雖然我們在實現優先事項方面取得了進展，但我們在成熟中心看到的交易量適度下降的現象將在今年持續下去。

While we normally do not comment on quarter to day trends. We recognize that the macro environment has been incredibly dynamic over the past few weeks. Normalizing for Easter holiday shift, mature center transaction trends have been stable year-to-date, and our outlook assumptions for the full year remain intact. Importantly, our unit expectations for the year remain unchanged. We expect 10 to 12 gross openings and 40 to 60 center closures or 28 to 50 net center closures. In Q2 franchisees have opened 1 and closed 2 centers so far, and we expect 7 to 8 net closures for the quarter.

雖然我們通常不會對季度趨勢發表評論。我們認識到過去幾週宏觀環境變化劇烈。由於復活節假期的正常化，成熟中心的交易趨勢今年迄今一直保持穩定，我們對全年的前景假設保持不變。重要的是，我們對今年的單位預期保持不變。我們預計總開業數量為 10 至 12 個，中心關閉數量為 40 至 60 個，或淨中心關閉數量為 28 至 50 個。截至目前，第二季特許經營商已開設 1 家門市並關閉 2 家門市，我們預計本季將淨關閉 7 至 8 家門市。

We continue to expect system-wide sales between USD940 million and USD960 million representing approximately flat year over year growth at the midpoint. Same store sales are expected to be flat to 2%, which assumes some sales recapture for compos closures during the year. We expect that Q2 same store sales could be flat to down slightly due to the Easter shift, implying expected improvement in the 2-year stack from Q1 to Q2. Consistent with last quarter, our outlook for full year revenue remains between 210 and 214 million and approximately 22.3% of system-wide sales. As I mentioned earlier, we expect that franchisees shifted product purchases into Q1 due to April's tariff announcement and a successful retail promotion, which will likely impact revenue recognized in Q2. On this topic, let me take a minute to discuss the potential impact of increased tariffs on our business and fiscal 2025 approximately half of our product costs is currently subject to the 10% global tariff.

我們繼續預期全系統銷售額將在 9.4 億美元至 9.6 億美元之間，中間值與去年同期相比成長大致持平。預計同店銷售額將持平至 2%，這是假設年內複合飲料封蓋能重新獲得一些銷售額。我們預計，由於復活節的影響，第二季同店銷售額可能持平或略有下降，這意味著從第一季到第二季的兩年疊加情況預計會有所改善。與上一季一致，我們對全年營收的預期仍在 2.1 億至 2.14 億之間，約佔全系統銷售額的 22.3%。正如我之前提到的，我們預計，由於 4 月份的關稅公告和成功的零售促銷，特許經營商會將產品購買轉移到第一季度，這可能會影響第二季度確認的收入。關於這個主題，請容許我花一點時間來討論一下提高關稅對我們的業務和2025財年的潛在影響，目前我們大約一半的產品成本受到10%的全球關稅的影響。

While the majority of our retail products are sourced domestically, a portion of our medical supplies and retail product components are sourced from China and our proprietary wax is sourced from Europe. That said, our cross functional team is doing an excellent job acting quickly with our suppliers to mitigate the risk of cost increases and identifying alternatives where it makes sense. We recognize that this is a highly fluid environment, and we are still working through several options, but based on what we know today, we feel confident in our ability to manage the estimated tariff impact within our current outlook. We continue to plan advertising expenses slightly higher than 3% of system-wide sales in fiscal 2025 to support the traffic driving initiatives Chris described earlier.

雖然我們的大部分零售產品都來自國內，但我們的部分醫療用品和零售產品組件來自中國，我們的專有蠟來自歐洲。也就是說，我們的跨職能團隊正在出色地與供應商一起迅速採取行動，以降低成本增加的風險並找到合理的替代方案。我們認識到這是一個高度流動的環境，我們仍在研究幾種選擇，但根據我們今天所了解的情況，我們有信心在目前的前景範圍內管理預計的關稅影響。我們繼續計劃在 2025 財年將廣告費用控制在略高於全系統銷售額 3% 的水平，以支持 Chris 先前描述的流量驅動計劃。

Compared to 2024, our current plans are to spread advertising expense more evenly throughout the year. Our adjusted EBITDA outlook remains at USD69 million to USD71 million and reflects our expectation of SGNA growth primarily driven by personnel to help us achieve our strategic goals and normalize incentive compensation. Finally, we expect adjust the net income between USD31 million and USD33 million which is consistent with our previous guidance of 16 to USD18 million plus approximately USD15 million of intangible asset amortization expense. Net of an approximately 23% effective tax rate before discrete items.

與 2024 年相比，我們目前的計劃是全年更均勻地分攤廣告費用。我們調整後的 EBITDA 預期仍為 6,900 萬美元至 7,100 萬美元，這反映了我們對 SGNA 成長的預期，主要由人員推動，以幫助我們實現戰略目標並規範激勵性薪酬。最後，我們預計調整淨收入在 3,100 萬美元至 3,300 萬美元之間，這與我們先前的 1,600 萬至 1,800 萬美元的預期一致，加上約 1,500 萬美元的無形資產攤銷費用。扣除單獨項目前約 23% 的有效稅率。

As we look to the back half of the year, European Wax Center is certainly not unique in navigating an uncertain macro environment. We are acting thoughtfully and swiftly to drive sales, improve for wall profitability, and reignite unit growth. Our pursuit of these priorities is within our control, even if the environment is not. While it's still early days, we believe we are putting the right people and actions in place to drive near term results and long-term growth for European wax Center, its franchisees, and its shareholders. With that operator, please open up the line for questions.

展望下半年，歐洲蠟業中心在應對不確定的宏觀環境方面並不是唯一一家。我們正在深思熟慮並迅速採取行動來推動銷售，提高牆面獲利能力，並重新激發單位成長。即使環境不可控，我們對這些優先事項的追求也在我們的掌控之中。雖然現在還處於早期階段，但我們相信我們正在安排合適的人才和行動來推動歐洲蠟中心、其特許經營商和股東的近期業績和長期成長。請與那位接線生聯繫，以便我們解答疑問。

As a reminder, if you'd like to ask a question at this time, please press 11 on your touchstone phone and wait for your name to be announced. To withdraw your question, please press 11 again. Please stand by while we compile the Q&A roster. Well first question comes from Dana Telsey with Telsey Advisory Group.

提醒一下，如果您現在想提問，請在您的 Touchstone 電話上按 11，然後等待播報您的名字。若要撤回您的問題，請再按 11。請稍候，我們正在編制問答名單。第一個問題來自 Telsey 顧問集團的 Dana Telsey。

Good morning, everyone. Chris, did you think about your game plan? Hi, if you think about the game plan going forward in. Can you talk a little bit about what changed this quarter, the outlook for the 2nd quarter and the frequency of the wax past customers, what's happening with your promotional rates, and then just expanding on the potential tariff impact. Are there other places to source from and what are you seeing from franchisees and ordering patterns? Thank you. And then I just have a quick follow up.

大家早安。克里斯，你想過你的比賽計畫嗎？你好，如果你考慮一下接下來的比賽計畫。您能否談談本季的變化、第二季的前景和過去客戶的頻率、促銷價格的變化情況，然後進一步談談潛在的關稅影響。還有其他來源嗎？您從特許經營商和訂購模式中看到了什麼？謝謝。然後我再快速跟進。

Okay, great. Well, good morning, Dana. We had a little bit of trouble on the audio. It was choppy, but I'm pretty sure I captured your two questions. If not, just please clarify. In terms of what's changed, I'll tell you the first thing I'll tell you is that we're very pleased with the progress that we've made, just in this short period of time since our team's been assembled. We've got a very clear line of sight on where the opportunities are, the, where we need to focus. And I feel very good about, how things are progressing with respect to Q2 outlook, I would say, overall, we're moving in line with kind of where we expected to be at the very beginning of this year, which is, one of the reasons why we feel so comfortable reiterating our annual guidance, for the full year.

好的，太好了。早安，達娜。我們在音頻方面遇到了一點麻煩。雖然不太連貫，但我很確定我理解了你的兩個問題。如果沒有，請澄清。就發生了哪些變化而言，我要告訴你的第一件事是，我們對我們自團隊組建以來在短短的時間內取得的進展感到非常滿意。我們非常清楚機會在哪裡，以及我們需要關注的地方。我對第二季前景的進展感到非常滿意，我想說，總體而言，我們的進展與今年年初的預期一致，這也是我們如此放心地重申全年業績指引的原因之一。

So things are progressing along according to plan. A lot of the things that we're working on are a little bit longer term in nature. It takes time for these things to build, and so we've always viewed this year as a year where as our strategies start to take hold, that'll benefit more of the second half of the year than the first half of the year.

事情正在按照計劃進行。我們正在進行的許多工作本質上都是比較長期的。這些事情的建立需要時間，因此我們一直將今年視為我們的策略開始發揮作用的一年，這將使下半年比上半年受益更多。

So all in, we feel great.

總而言之，我們感覺很棒。

There's still a lot of work ahead of us. But our team is, we're getting our feet under us. We know exactly where to focus and we're making a lot of progress. In terms of promotional activity, I, there's, there hasn't been any material change at all in promotional activity.

我們面前還有很多工作要做。但我們的團隊正在努力站穩腳步。我們清楚地知道應該關注什麼，並且我們正在取得很大進展。就促銷活動而言，我認為促銷活動根本沒有任何實質的變化。

Over the last few months, and we don't expect that that's going to change as we move forward. We see our biggest opportunity is just being more effective with the use of our marketing dollars, being smarter and more targeted with the way we're approaching paid media and having just a relentless focus on new guest acquisition. So, I don't believe at this point in time, we're not sitting here thinking that that's, that we're going to have to move into a heavy promotional period. That's not where the opportunity is at all. So there hasn't been any change on that. We don't expect there to be any change. And then with respect to wax pass sales, as the business, as we've mentioned, we're very pleased that on a two-year stack we've seen steady improvement in our comp store sales as well as steady improvement in new guest acquisitions.

在過去的幾個月裡，我們預計這種情況不會隨著我們前進而改變。我們認為，我們最大的機會就是更有效地利用我們的行銷資金，更聰明、更有針對性地對待付費媒體，並堅持不懈地關注新客人的獲取。所以，我認為，目前我們不會坐在這裡想著，我們將不得不進入一個大力促銷的時期。機會根本不在這裡。因此，這方面沒有任何變化。我們預計不會有任何變化。然後關於蠟像通行證的銷售，正如我們所提到的，作為一項業務，我們非常高興地看到，在兩年的時間裡，我們的同店銷售額穩步提高，新客人數量也穩步提高。

We've also seen something similar on wax pass sales, so we had a nice Q4, we, we're feeling good, I think the way we think about the business right now is, it's, the word right now that we use is stability. So, the business appears to be stabilizing and we're starting to see some early tractions on all of our strategies, with respect to tariffs. Yeah, I mean, I can tell you our just like every other company in the US, our team is maniacally focused on looking at all, ways of managing through tariff exposure. Tom took the time today to walk you through where that exposure exists in our business.

我們在蠟通行證銷售方面也看到了類似的情況，所以我們度過了一個愉快的第四季度，我們感覺很好，我認為我們現在對業務的看法是，我們現在使用的詞是穩定。因此，業務似乎正在趨於穩定，我們開始看到所有與關稅相關的策略都取得了一些早期進展。是的，我的意思是，我可以告訴你，就像美國的其他公司一樣，我們的團隊瘋狂地專注於尋找透過關稅風險進行管理的所有方法。湯姆今天花了一些時間向您介紹我們業務中存在哪些風險。

We still feel very comfortable that we can manage this year, manage around tariffs and still deliver on our annual guidance, but we're, basically our approach is we're leaving no stone unturned. We're looking at every single possible scenario, including, looking at other sources for some of our medical equipment. I would not look for us to change our comfort wax formula that's fundamental to our brand and it would be, more challenging for us to find a different supplier, but for all other areas of the business we're actively exploring all those opportunities.

我們仍然感到非常有信心，我們可以管理好今年，管理好關稅，仍然實現我們的年度指導，但我們基本上的做法是竭盡全力。我們正在研究每一種可能的情況，包括尋找部分醫療設備的其他來源。我不會指望我們改變對我們的品牌至關重要的舒適蠟配方，而且對我們來說，找到不同的供應商會更具挑戰性，但對於業務的所有其他領域，我們正在積極探索所有這些機會。

Thank you, and just on the next, the center closures out there, what are you hearing from franchisees? Is it how do you think about the return to unit growth by the end of fiscal 26? What are you learning? Thank you.

謝謝，接下來，關於中心關閉的問題，您從加盟商那裡聽到了什麼消息？您如何看待 26 財年末單位成長的恢復？你在學什麼？謝謝。

Sure, yeah, you bet. The first thing I'll say, I said this in February, I'll say it again, we've just, we're so blessed to have such high-quality franchise partners who care deeply about our brand. There is just an undeniable passion for what we do, and all of our franchisees want us to win, all of them. And I think that is such a great place to start. But the reality is that the past couple of years have been tough, and as it's been tough for us to consistently grow our transactions on a sustainable basis, month to month. And when transactions are declining, that puts pressure on the bottom line.

當然，是的，沒錯。我要說的第一件事，我在二月就說過，現在我再說一遍，我們很幸運能擁有如此高品質的特許經營合作夥伴，他們非常關心我們的品牌。我們對所做的事情懷有不可否認的熱情，我們所有的加盟商都希望我們能夠成功，所有人。我認為這是一個很好的起點。但現實情況是，過去幾年一直很艱難，我們很難逐月持續增加交易量。當交易量下降時，就會給利潤帶來壓力。

Combined with that, we have, as we've discussed with you before, we went through this period of time where we're in high growth mode. For all the right reasons, we, were outgrowing units at a very rapid pace and now with the benefit of hindsight, we grew a little too quickly. And so, the combination of Those two things happen at the same time is kind of what's led to closures. Our franchisees, they're fighting the good fight and doing everything they can to kind of manage through this. The range of closures that we've identified 40 to 60, those are just simply underperforming units. Those are units that just have yet to really kind of break through on topline. And so those units are still under pressure. But that's precisely why we are really focused very heavily on building these strong partnerships with our franchisees, really dialing in on the tools that that's going to help us focus on where there's opportunities to improve profitability, to give the franchisee the support they need and give us the time to continue to build out this marketing engine to where we can be smarter and more effective about the use of our marketing dollars to drive new guest acquisition and we believe that, managing the business that way is going to put us in the best possible position to support our franchisees and minimize closures. So, Overall, not much has changed since the last time we talked about this, but I can tell you that. This is a very strong partnership with the franchisees to improve the business.

除此之外，正如我們之前與您討論過的，我們經歷了一段高速成長的時期。出於所有正確的理由，我們的成長速度非常快，現在回想起來，我們的成長速度有點太快了。因此，這兩件事同時發生就導致了關閉。我們的加盟商正在奮力拼搏，竭盡全力度過難關。我們確認關閉的工廠數量為 40 至 60 個，這些工廠都是表現不佳的工廠。這些單位尚未真正在收入上取得突破。因此這些單位仍面臨壓力。但這正是我們真正重視與特許經營商建立牢固的合作夥伴關係的原因，我們真正利用這些工具來幫助我們專注於提高盈利能力的機會，為特許經營商提供他們所需的支持，並讓我們有時間繼續構建這個營銷引擎，以便我們能夠更聰明、更有效地利用我們的營銷資金來推動新客人的吸引，我們相信，以這種方式管理業務將使我們處於最佳方式管理業務。所以，總的來說，自從我們上次談論這個問題以來並沒有太大的變化，但我可以告訴你。這是與特許經營商建立的非常牢固的合作夥伴關係，旨在改善業務。

Thank you.

謝謝。

You bet. Thank you.

當然。謝謝。

Our next question comes from Jonathan Coop with Baird.

我們的下一個問題來自貝爾德的喬納森·庫普。

Yeah, hi, good morning, Chris & Tom, one question I want to ask, just looking at the latest financial disclosure documents, it looks like the high end of the cost to build, disclosed in those documents increased pretty substantially compared to recent years. Could you just give a current view of sort of, key investments, anything driving inflation, and then over time here the return to net unit growth, would you say it's more based on optimizing the cost and the operations are more about the top line initiatives.

是的，嗨，早上好，克里斯和湯姆，我想問一個問題，只要看一下最新的財務披露文件，看起來這些文件中披露的高端建築成本與近年來相比大幅增加。您能否給出目前對關鍵投資、推動通貨膨脹的任何因素的看法，然後隨著時間的推移，這裡的淨單位增長回報，您是否認為它更多地基於優化成本，而運營更多地是關於頂線計劃。

Yeah, you bet. So let me, Jonathan, let me kind of go in reverse order. So, as we focus on returning to NCO growth, there are two guiding principles that we're following. Number one, in the near term, what where we're focused is let's focus on markets where we believe there's enough density to support the volumes, we need for our franchisees to get an effective return and where we have an opportunity to open in those markets without impacting our core, so basically identifying kind of the low hanging fruit where there's still opportunity for us to expand while protecting our core, so no risk of any cannibalization and the good news is that there's still, there's plenty of markets out there where we have the opportunity to grow. That's the first guiding principle.

是的，沒錯。那麼，喬納森，讓我按相反的順序來講。因此，當我們專注於恢復 NCO 成長時，我們遵循兩個指導原則。首先，在短期內，我們的重點是讓我們專注於那些我們認為有足夠密度來支持銷量的市場，我們需要我們的特許經營商獲得有效的回報，並且我們有機會在這些市場開業而不會影響我們的核心，所以基本上確定那些唾手可得的果實，我們仍然有機會在保護核心的同時進行擴張，這樣就不會有任何蠶食的風險，讓我們有機會仍然有很多增長。這是第一個指導原則。

The second guiding principle is working closely with our franchisees to ensure that in these markets that, they're going to be able to achieve a return on investment that they find compelling and exciting to put dollars at risk. And so, when we're working through that, similar tariffs, all we're leaving no stone unturned. So we're working very hard at, the entire unit economics profile and seeing where we have opportunities to improve, and that's, ensuring that our franchisees are set up for success on the top line, working closely with them on franchise profitability and also addressing the overall capital investment. The reason you've seen, our capital investment going up, it's not something that we're, there's no fundamental changes in our model, that's just simply, inflationary pressure that everybody's been feeling.

第二個指導原則是與我們的特許經營者密切合作，以確保在這些市場中，他們能夠獲得他們認為值得且值得冒險的投資回報。因此，當我們處理類似的關稅問題時，我們會竭盡全力。因此，我們正在非常努力地研究整個單位經濟狀況，並尋找改進的機會，即確保我們的特許經營商能夠在營收上取得成功，與他們密切合作，提高特許經營的盈利能力，並解決整體資本投資問題。您所看到的，我們的資本投資增加的原因並不是我們的模式發生了根本性變化，而只是每個人都感受到的通膨壓力。

Okay, great, that's really helpful and just one follow up I know you talked about the annual franchises and convention coming up here. Could you just maybe share Chris more when you think about the key themes you hope to get across, during that event, anything you're willing to share thanks again.

好的，太好了，這真的很有幫助，還有一個後續問題，我知道您談到了即將舉行的年度特許經營和大會。您能否與克里斯分享更多關於您希望在該活動期間傳達的關鍵主題，以及您願意分享的任何內容，再次感謝。

Yeah, sure. So, it's next week, we have, I'm sure many franchise partners listening to this call today, so, I guess I will be giving them a sneak peek into what they're going to be hearing next week. Number one, we're going to just go through a full situation assessment so we're all on the same page on where we are as a brand and as a network. We're going to discuss, where we see opportunities in front of us. We're going to talk a lot about our plan to win. And we're going to spend time on, our partnership between the brand and our franchise network on how we're going to work together to maximize our potential and I think our goal is everyone walks out of that meeting feeling very informed, feeling very supportive, and that there's a clear plan of attack not only in 2025 but 2026 and beyond. And we've got a unified vision and a commitment to one another to get out and drive this business in a very smart and profitable way. So, really looking forward to spending time with our partners next week and sharing that message and then hearing what's on their mind.

是的，當然。所以，下週，我相信有很多特許經營合作夥伴今天都會聽這個電話會議，所以，我想我會讓他們先睹為快，了解一下下週他們將要聽到的內容。首先，我們將進行全面的情況評估，以便我們對品牌和網路的現狀達成共識。我們將討論我們面前存在哪些機會。我們將詳細討論我們的獲勝計劃。我們將花時間討論品牌和特許經營網絡之間的合作關係，探討如何共同努力，最大限度地發揮我們的潛力。我認為，我們的目標是每個人在會議結束後都感到非常了解，感到非常支持，並且不僅在 2025 年，而且在 2026 年及以後都有明確的進攻計劃。我們擁有統一的願景和相互的承諾，以非常聰明且有利可圖的方式推動這項業務。因此，我們非常期待下週與我們的合作夥伴共度時光，分享這一訊息，然後聽聽他們的想法。

That's great. Thanks again

那太棒了。再次感謝

You bet. Thank you.

當然。謝謝。

Our next question comes from John Heinbockel with Guggenheim.

我們的下一個問題來自古根漢的約翰·海因博克爾。

So, there's two Chris, after you end up sort of cleaning up the centers that are underperforming, I'm curious how much of the remaining base? Do you think, would be characterized as underperforming, right? And is that solely the ones that are underperforming, is that solely an AUV issue? And then if that's true, how do you think about, I guess marketing is the answer, but how do you think about, and this has been an issue getting the AUV sort of accelerating faster. How do you, what's the one or two things that do that?

所以，有兩個克里斯，在你最終清理了表現不佳的中心之後，我很好奇還剩下多少基地？您認為，這會被視為表現不佳，對嗎？這些是否都是表現不佳的，是否只是 AUV 的問題？如果這是真的，您怎麼想，我想行銷就是答案，但是您怎麼想，這一直是讓 AUV 加速更快的問題。您如何做到的？有哪一兩件事可以做到這一點？

Yeah, so great questions. Here, it's mainly an AUV issue, the challenge that we have is, the centers that we've identified as risk of closure, it's an AUV issue. There's always room for improved profitability, but make no mistake, top line is, what's kind of led to these units be, being on that closure list. And as top line is, everything in a multi-unit business, especially a business with high labor costs, because the more you can grow your top line and the more leverage you're going to get on that labor investment. Our, so our focus is on first and foremost, partnering directly with our franchisees on, developing effective strategies to grow new guest acquisition.

是的，這些問題很棒。這裡主要是一個 AUV 問題，我們面臨的挑戰是，我們已確定關閉風險的中心是一個 AUV 問題。獲利能力總是有提升的空間，但毫無疑問，最重要的是，是什麼原因導致這些單位被列入關閉名單。至於營業收入，多部門企業中的一切，特別是勞動成本高的企業，因為您的營業收入成長越多，您在勞動投資上獲得的槓桿就越大。因此，我們的首要重點是直接與我們的特許經營商合作，制定有效的策略來增加新客人的吸引力。

So, that's all the work that our new Chief Commercial Officer is leading. It's the investments that we've made in building out a digital platform, a data analytics platform to get smarter about, how we're deploying those marketing dollars, and we, we're very pleased with what we've been able to see so far. As I said, we've, period to period on a two-year stack, we've seen improvement in our comp store sales as well as. Steady improvement in new guest acquisitions, but we're still a long way away from where we need to be. So, our very first focus is on continuing that work on growing new guest acquisition. Where we see the opportunity is not only getting smarter about digital marketing, performance marketing, but also our brand identity.

這就是我們新任首席商務官領導的所有工作。我們在建立數位平台、數據分析平台方面進行了投資，以便更聰明地部署這些行銷資金，我們對目前所取得的成果感到非常滿意。正如我所說，在兩年的時間裡，我們的同店銷售額也逐年提高。新客人吸引量穩定提升，但我們距離目標還有很長的路要走。因此，我們的首要任務是繼續努力吸引更多新客人。我們看到的機會不僅在於數位行銷、績效行銷變得更加智能，還在於我們的品牌形象變得更加智能。

So, we've done over the last few weeks or the last say thirteen weeks, we have done a deep dive into our business, commissioned a tremendous amount of research to really understand better about how our brand is showing up and against different target audiences. And so through that segmentation of work, we feel that we've identified some opportunities to reach a different group of guests, maintain the guests that we have, but also reach a new group of guests, and we feel like that we've got a clear line of sight on what the message needs to be to resonate with that guest as well as the service model to deliver on that brand promise. So, I think going forward where we see the opportunity is twofold.

因此，在過去幾週或過去十三週裡，我們對我們的業務進行了深入研究，進行了大量的研究，以便更好地了解我們的品牌在不同目標受眾中的呈現方式。因此，透過這種工作細分，我們覺得我們已經發現了一些機會來接觸不同的客人群體，維護現有的客人，同時也接觸新的客人群體，我們覺得我們已經清楚地知道需要什麼樣的信息才能引起客人的共鳴，以及兌現品牌承諾的服務模式。因此，我認為未來我們看到的機會是雙重的。

Really sharpening our skill set on driving performance marketing and then combining that with, a new brand identity that, or refined, I should say refined brand identity that we think is going to be more effective in the market. So we're excited to work on that. And then just continue to work with our operators on, profitability just to continue to get smarter and smarter about, areas of, opportunity to drive efficiency at the unit level with respect to, how once we get through this round of closures, how the health of the system, I believe we're going to learn a lot as we move throughout this year, but our belief is.

真正磨練我們在推動績效行銷方面的技能，然後將其與新的品牌形象相結合，或者說精煉的品牌形象，我應該說精煉的品牌形象，我們認為這將在市場上更有效。因此我們很高興致力於此。然後繼續與我們的運營商合作，提高盈利能力，不斷變得更加聰明，在各個領域，在單位層面提高效率的機會，一旦我們度過這一輪關閉，系統的健康狀況如何，我相信我們在今年將會學到很多東西，但我們的信念是。

We're focused on the right things and as our strategies unfold throughout this year and we execute on getting momentum on the top line, we execute on improving profitability, we execute on returning to growth without impacting our core. We believe when all that comes together, we're going to have a very healthy portfolio of centers and we'll be poised for ongoing growth from that point forward.

我們專注於正確的事情，隨著我們今年策略的展開，我們致力於獲得營收成長動力，我們致力於提高獲利能力，我們致力於在不影響核心業務的情況下恢復成長。我們相信，當所有這些都結合在一起時，我們將擁有一個非常健康的中心組合，並且我們將為從那時起的持續增長做好準備。

And one quick one follows up, you mentioned high value guest. I'm curious, some of this may be intuitive, but the characteristics of a high value guest and are there high value guests' potential that you weren't targeting before, right? That you now will?

接下來還有一點，您提到了高價值客戶。我很好奇，其中一些可能是直觀的，但高價值客人的特點以及是否存在您之前沒有瞄準的高價值客人的潛力，對嗎？現在你願意嗎？

Yes, the short answer is yes. I mean that's the answer. Yeah, we we've identified, we believe and we're testing, we're going through. I think that the thing to keep in mind with our management team is. The skills that we are building internally are around doing a deep dive into the research, gain, gather insights from that research, and then go through a rigorous test and learn process. And so, with that in mind, the research identified a group of high value customers that we believe that we can target and have quite a bit of success with. So now that we've gathered that insight, we're going through, a testing a learning process and we're excited about it. We think that there's an opportunity there and we think that, it's an opportunity where we can build on what we have. It's not substituting what we have.

是的，簡短的回答是肯定的。我的意思是這就是答案。是的，我們已經確定，我們相信，我們正在測試，我們正在經歷。我認為我們的管理團隊要牢記的事情是。我們內部建構的技能是深入研究、從研究中獲得見解，然後經過嚴格的測驗和學習過程。因此，考慮到這一點，研究確定了一群高價值客戶，我們相信我們可以瞄準這些客戶並取得相當大的成功。所以現在我們已經獲得了這些見解，我們正在經歷一個測試學習過程，我們對此感到興奮。我們認為那裡有機會，我們認為，這是一個我們可以利用現有資源進行進一步發展的機會。它並沒有取代我們已經擁有的東西。

Thank you.

謝謝。

You bet. Thank you.

當然。謝謝。

Our next question comes from Korinne Wolfmeyer with Piper Sandler.

我們的下一個問題來自 Piper Sandler 的 Korinne Wolfmeyer。

Hey, good morning team. Thanks for taking the question. I want to touch a little bit on what you're seeing just in the general market conditions with your consumers, obviously very dynamic macro backdrop right now and want to understand, what kind of trends maybe changed or stayed stable throughout the quarter and then how are you thinking about the market as it relates to the high end and the low end of the guidance range. Thank you.

嘿，大家早安。感謝您回答這個問題。我想稍微談談您所看到的消費者整體市場狀況，顯然目前的宏觀背景非常活躍，我想了解一下，在整個季度中哪些趨勢可能發生了變化或保持穩定，然後您如何看待市場與指導範圍的高端和低端的關係。謝謝。

The thing I'll tell you is that that's so compelling about our brand is just how resilient our core guest is, and that is such a strength that, and so rare and multi-unit consumer businesses. So, I'll, that stability and resilience of our core guest has continued throughout, yeah, as a very difficult and challenging consumer environment. So we really haven't seen any change, and no negative change at all in our core guests. As you've heard me say now a few times that one of the things that has us pleased is we are seeing sequential improvement in both comps for sales and new guest acquisition on a two-year basis, a two-year stack. And so that, that's telling you that we're seeing overall improvement across all guest profiles, not only our core, but our episodic guests. It's not, it's kept in mind these are minor sequential improvements, so, just tempering your expectations, but we are seeing stability and, an underlying trend that is upward sloping and that has us very encouraged again, just given the backdrop and the consumer environment.

我要告訴你的是，我們的品牌之所以如此引人注目，是因為我們的核心客戶非常有韌性，這是一種優勢，也是我們罕見的多單元消費業務的優勢。所以，我認為，在一個非常困難和充滿挑戰的消費環境中，我們核心客戶的穩定性和彈性一直持續著。所以我們確實沒有看到任何變化，我們的核心客人也沒有看到任何負面變化。正如您多次聽我說過的那樣，讓我們感到高興的事情之一是，我們看到銷售額和新客人獲取量在兩年內連續改善，這是一個兩年的累積。所以，這告訴你，我們看到所有嘉賓資料都有了整體改善，不僅是我們的核心嘉賓，還有我們的臨時嘉賓。事實並非如此，請記住，這些都是連續的小幅改進，因此，只是調整了您的期望，但我們看到了穩定性和向上傾斜的潛在趨勢，考慮到背景和消費者環境，這再次讓我們感到非常鼓舞。

And then and then on the guidance for the high end just to reiterate the things that Chris mentioned that we're diving deeper into research and learning and implementing on the marketing side with new guests and other marketing initiatives, the high end of the guidance assumes that some of these green shoots that are taking place really build out in the latter half of this year and that starts to take us to the higher end of the revenue range versus these marketing initiatives take more of a foothold in the beginning of 2026, well then subsequently that puts us at the lower end of the range. Nevertheless, we have taken into account where we're headed based on both of those ranges and we are very confident in managing to the guidance, which is why we've reiterated it today.

然後，關於高端指導，我重申一下克里斯提到的事情，我們正在深入研究、學習，並在營銷方面實施新客人和其他營銷計劃，高端指導假設其中一些正在發生的綠芽在今年下半年真正形成，並開始將我們帶到收入範圍的高端，而這些營銷計劃在 2026 年初佔據更大的立足點，那麼隨後這將使我們處於範圍的高端。儘管如此，我們已經根據這兩個範圍考慮了我們的發展方向，並且我們對實現指導非常有信心，這就是我們今天重申這一點的原因。

Very helpful. Thanks so much for the color. And then I want to touch a little bit on the advertising spend in the quarter. It did come in a little bit lighter and it seemed like maybe there was some timing shift. Can you just give us a little bit more color on, what exactly was going on there and how we should be thinking about the cadence of ad spend for the remainder of the year?

非常有幫助。非常感謝這個顏色。然後我想稍微談談本季的廣告支出。它確實變得更輕了一點，似乎可能存在一些時間上的變化。您能否向我們詳細介紹當時的具體情況，以及我們應該如何考慮今年剩餘時間的廣告支出節奏？

Yeah, good question. It is worth a call out that as we've looked at this year's budgeting and the efforts and also with Katie joining us and thinking through efficiencies of marketing spend, What we've budgeted for this year is much more of a leveling of marketing spend in comparison to prior quarters and prior years and so it is worth the call out that as we think about a quarter over quarter spend, you are going to see a little bit more of a of a matching to the revenue system-wide nature of the business versus. I think there was some lumpiness in prior quarters and spending in those quarters. Great, thanks so much.

是的，好問題。值得一提的是，當我們回顧今年的預算和努力，並且凱蒂加入我們並思考行銷支出的效率時，我們今年的預算與前幾季和前幾年相比，行銷支出更加平衡，因此值得一提的是，當我們考慮季度環比支出時，你會看到與業務收入系統範圍的性質更加匹配。我認為前幾個季度以及這些季度的支出存在一些不穩定的情況。太好了，非常感謝。

Thank you.

謝謝。

As a reminder, if you'd like to ask a question at this time, please press 11 on your touchstone phone. Our next question comes from Kelly Krego with City.

提醒一下，如果您現在想提問，請在 Touchstone 電話上按 11。我們的下一個問題來自 City 的 Kelly Krego。

Hi, thanks for taking our question. I guess just to follow up on an earlier question, is there any way to sort of flush out the performance of underperforming stores, versus healthy stores in the base to kind of understand. The drag that you're seeing on the total comps, and then just on as you've seen stores close, just curious if you're, can quantify or talk about at this point in the sales transfer. What happens to that customer when a store closes in a given market? Are you seeing that transfer to others, to other units or, and just any other detail there and then just has one follow up thanks.

您好，感謝您回答我們的問題。我想只是為了跟進之前的問題，有沒有什麼方法可以比較出表現不佳的商店與表現健康的商店的業績，以便了解情況。您所看到的對總體可比銷售額的拖累，以及您所看到的商店關閉，只是好奇您是否可以量化或談論銷售轉移的這一點。當某個市場的一家商店關門時，顧客會怎麼樣？您是否看到該資訊轉移到其他人、其他單位或任何其他細節，然後僅進行一次跟進，謝謝。

Okay, all right, yes thanks Kelly. Yeah, well, first of all, I'll go in reverse order. So, on sales transfer, it really depends. It's store, it's center by center. There are certainly cases where we do see sales transfer. It's, you're never going to transfer 100% of the sales, but there are some cases where you do see some fraction of your sales transferring into the existing base. It really just depends on where that unit is located and the unique dynamics of that market. One of the benefits we have is our wax pass, and so when you have wax pass holders and a center closes, those wax pass users will look for other nearby centers so they can continue to redeem their wax pass. But it's just, it's, as I said, it's on a case-by-case basis.

好的，好的，謝謝凱利。是的，首先，我將按相反的順序進行。因此，對於銷售轉移，這確實取決於情況。這是商店，它是中心。確實存在我們見到銷售轉移的情況。是的，你永遠不可能轉移 100% 的銷售額，但在某些情況下，你確實會看到部分銷售額轉移到現有基礎。這實際上取決於該單位的位置以及該市場的獨特動態。我們的其中一個優勢是我們的蠟通行證，因此當您有蠟通行證持有者並且一個中心關閉時，這些蠟通行證用戶將尋找其他附近的中心，以便他們可以繼續兌換蠟通行證。但正如我所說，這只是根據具體情況而定的。

In regards to your very first question, I I'd rather not just get into those details in this platform. What I can tell you is that we've factored in, everything that you mentioned into our guidance for the year. So we obviously have a very good feel for how underperforming centers are performing relative to our core, and I've mentioned that those underperforming centers have lower AUVs, which is why they're on that watch list. But I, I'd rather not get into like the granularity of the impact that they're having on the total system, just know that that's all factored into our annual guidance.

關於您的第一個問題，我不想在這個平台上討論這些細節。我可以告訴你的是，我們已經將你提到的所有內容都納入了我們今年的指導中。因此，我們顯然非常清楚表現不佳的中心相對於我們的核心的表現如何，而且我已經提到過，那些表現不佳的中心的 AUV 較低，這就是它們被列入觀察名單的原因。但我，我不想深入探討它們對整個系統的影響的粒度，只知道這些都已計入我們的年度指導中。

Got it. And then just could you just provide us an update on where what percentage of your sales are coming from core of wax pass gas versus, non-wax past customers and what is the right place for a goal for where you'd like to be with that longer term? Thanks.

知道了。然後，您能否向我們提供最新信息，說明您的銷售額中有多少百分比來自蠟通氣核心客戶，有多少百分比來自非蠟通氣客戶，以及您希望長期實現的目標是什麼？謝謝。

Sure, so we're still, we continue to run right around 75% of our sales are wax pass holders, so it's a substantial part of our business model. And at this point in time, we're comfortable with that. I wouldn't look for us to make material changes, as we move forward, as you heard me say, as we're building out our commercial office and really getting really smart about how we're using our marketing dollars. There, it's very possible that we're going to test and learn and find some other ways of driving revenue into the business that might impact that that ratio, but at this point in time we have no immediate plans to change, so I would expect that 75% to continue throughout the remainder of this year. Thank you.

當然，我們仍然，我們大約 75% 的銷售額來自蠟通行證持有者，所以這是我們商業模式的重要組成部分。目前，我們對此感到滿意。正如您所聽到的，隨著我們不斷前進，我不會指望我們做出實質性的改變，因為我們正在建立我們的商業辦公室，並且真正聰明地使用我們的行銷資金。在那裡，我們很有可能會進行測試和學習，並找到一些其他可能影響該比率的方法來增加業務收入，但目前我們還沒有立即改變的計劃，所以我預計 75% 的比例將在今年剩餘時間內繼續保持。謝謝。

Thank you.

謝謝。

Our next question comes from Simeon Goodman with Morgan Stanley.

我們的下一個問題來自摩根士丹利的西蒙古德曼。

Good morning, everyone. Hey Chris. So, we spent some time on this call. We talked about the marketing funnel and some targeting, and then we talked about franchisee execution. I wanted to take your temperature on both of those and put a couple more up on the board. The waxer consistency and then the value that the business is conveying to the consumer. So if you take all four of those, I wanted to see, where the priority sits, it sounds like there's more focus on the marketing and the franchisee execution. Less so on those other two, but just wanted to see if there's an opportunity with them as well. Thanks.

大家早安。嘿，克里斯。因此，我們花了一些時間進行這通通話。我們討論了行銷管道和一些目標，然後討論了特許經營商的執行情況。我想測量一下你對這兩件事的態度，然後再在板上貼幾個。打蠟機的一致性以及企業向消費者傳達的價值。因此，如果將這四個方面都考慮進去，我想看看優先順序在哪裡，聽起來似乎更專注於行銷和特許經營執行。對另外兩個不太一樣，但我只是想看看他們是否也有機會。謝謝。

Yeah, no, really good insight into the business, and I would say the priorities are exactly how you laid it out. The very first priority is on the marketing funnel. The second priority is working closely with our operators on the execution. And by the way, that goes hand in hand in terms of execution. There's two things that we're focused on. One is working directly with our partners on improving profitability. The other side of it is Really, being very focused on managing the guest experience in the best possible way to grow topline. So that would be the next priority.

是的，對業務有很好的洞察力，我想說優先事項正是您所列出的。首要任務是行銷通路。第二個優先事項是與我們的操作員密切合作執行。順便說一句，這與執行是相輔相成的。我們關注的是兩件事。一是直接與我們的合作夥伴合作，提高獲利能力。另一方面，我們確實非常注重以最佳方式管理客人體驗，以增加營業額。所以這將是下一個優先事項。

The third would be Waxer consistency and the fourth would be the value to the consumer based on all of our research, we don't believe we have a value problem. So we feel comfortable with. The value, in the market, so, that's good news. Wax your consistency, there's always, given that that's the core of our business, and it's the biggest item on our P&L, there's always opportunity to improve, but we've got to first focus on marketing and execution, those are the top two, and but then a very, fast follow is. Continuing to work closely with our franchise partners on creating a world-class environment for our wax specialists to thrive and to be fulfilled and which would drive retention and execution.

第三個是 Waxer 的一致性，第四個是根據我們所有的研究對消費者的價值，我們認為我們沒有價值問題。因此我們感到很舒服。所以，這個市場價值是個好消息。保持一致性，鑑於這是我們業務的核心，也是我們損益表中最大的項目，總是有改進的機會，但我們必須先專注於行銷和執行，這是最重要的兩個，然後是一個非常快速的跟進。繼續與我們的特許經營夥伴密切合作，為我們的蠟專家創造一個世界一流的環境，使他們能夠蓬勃發展並獲得滿足，並推動保留和執行。

Okay, and then to follow up on the underperforming franchises or franchisees, can you talk about what you've uncovered? And is there a situation in which franchise businesses are generating cash and there isn't that spark to get better, or is it more location and not enough staff at these sites? Like what are you finding is the diagnosis?

好的，那麼為了跟進表現不佳的特許經營權或特許經營商，您能談談您發現了什麼嗎？是否有這樣的情況：特許經營企業雖然產生了現金，但卻沒有改善的動力，還是因為這些地點的地理位置更優越，但員工不足？您發現的診斷結果是什麼？

Well, I hate to say it's a combination of all, but that is the answer. It's kind of a combination; it's like there's different circumstances across each individual unit. I do think what happens is when Top line, when you don't see top line, the natural instinct is to really manage your business differently and, in some cases, you don't end up making the best decisions for the business, but it's just simply because you're in survival mode. So, it's just, you've got a variety of different reasons. You've got, when the unit was opened, one, we grew too quickly and we just opened some units in, bad locations.

好吧，我不想說這是所有因素的結合，但這就是答案。這是一種組合；就好像每個單位的情況都不同。我確實認為，當你看不到營收時，自然的本能就是以不同的方式管理你的業務，在某些情況下，你最終不會為業務做出最好的決策，但這只是因為你處於生存模式。所以，這只是因為你有各種不同的理由。當該單位開業時，首先，我們發展得太快了，所以我們就在糟糕的位置開設了一些單位。

In some cases, they were too close to each other. In other cases, the franchisee was just spread really thin and didn't have the infrastructure in place to support that unit and then in other cases, we just didn't follow the right, plan, to set this the center up for success. So, we didn't invest the right money in local marketing, we didn't invest the right money in having the team members trained. There's just really just, again, it's just all symptomatic of just growing really fast. So, where we see the opportunity is in kind of the few areas. One, Last year towards the end of 2024, our team, the team before we got here, rolled out a new center playbook, and that playbook provided specific initiatives around the right LSM investment, making sure that the unit didn't open until we had the right staffing, a good game plan on how to engage in the local community and ensure the marketing was there. And we have seen that those units are ramping faster than before the playbook. So, that's number one that that we're focused on. And then secondly are all these other initiatives just being really smart about where we open, how we manage that opening the partnership that we have with the franchisees and the support we're providing and I think that's going to, that's really going to make all the difference.

在某些情況下，它們彼此靠得太近了。在其他情況下，特許經營商的規模非常分散，並且沒有適當的基礎設施來支持該單位，而在其他情況下，我們只是沒有遵循正確的計劃來將該中心設置為成功中心。所以，我們沒有在本地行銷上投入正確的資金，也沒有在團隊成員培訓上投入正確的資金。確實，這都是快速成長的症狀。所以，我們看到的機會就在這幾個領域。第一，去年接近 2024 年底，我們的團隊（我們來到這裡之前的團隊）推出了一個新的中心劇本，該劇本圍繞正確的 LSM 投資提供了具體的舉措，確保該單位在我們擁有合適的人員、如何參與當地社區並確保營銷到位之前不會開放。我們已經看到這些單位的發展速度比劇本之前更快。所以，這是我們關注的首要問題。其次，所有這些其他舉措都非常明智，包括我們在哪裡開設新店、如何管理與特許經營商的合作關係以及我們提供的支持，我認為這將會產生很大的不同。

Okay, thanks Chris. Good luck and welcome, Tom.

好的，謝謝克里斯。祝你好運，歡迎你，湯姆。

Thank you.

謝謝。

Our next question comes from Scott Ciccarelli with Trust.

我們的下一個問題來自 Trust 的 Scott Ciccarelli。

Good morning guys. Scott Ciccarelli. Can you provide some specific examples of the changes you've made or are making on the marketing front to drive new customer acquisition? I mean, the goal certainly sounds logical, but maybe a few examples might help the group here. And then secondly, a follow up on tariffs. You said tariffs are included in your guide, but what is the strategy for dealing with higher input prices? Like, let's just assume that you do have higher prices. Like, is it to pass on higher prices to the customer? Are you going to eat it? Is the franchise going to eat it just kind of high level there? Thank you.

大家早安。斯科特·西卡雷利。您能否提供一些具體例子來說明您在行銷方面已經做出或正在進行的改變，以推動新客戶的獲取？我的意思是，這個目標聽起來確實合乎邏輯，但也許一些例子可能會對這裡的團隊有所幫助。其次，跟進關稅問題。您說指南中包含了關稅，但應對更高投入價格的策略是什麼？比如，我們就假設你的價格確實較高。例如，是否要將更高的價格轉嫁給客戶？你要吃它嗎？特許經營權是否會在那裡以高水準存在？謝謝。

Yeah, sure. Okay, so on tariffs, Scott. Yeah, we're looking at all available options to us right now, so we're not prepared to say, specifically which lever we're going to pull. I can tell you we're looking at everything that you said, the guiding principles around tariffs is we want to do the right thing for the brand, we want to do the right thing for our franchise partners and we want to do the right thing for all of our stakeholders. So, we're looking at all these different options, but what I can tell you is based on everything we know. We feel very confident we're going to be able to manage through navigate through tariffs to be able to deliver on our annual guidance so but not prepared to tell you exactly what that plan is because it's being developed as we speak. And the first question, remind me again, Scott, what was your first question?

是的，當然。好的，關於關稅，斯科特。是的，我們正在考慮目前所有可用的選項，所以我們還沒有準備好具體說我們要採取什麼措施。我可以告訴你，我們正在考慮你所說的一切，圍繞關稅的指導原則是，我們想為品牌做正確的事情，我們想為我們的特許經營合作夥伴做正確的事情，我們想為我們所有的利益相關者做正確的事情。所以，我們正在考慮所有這些不同的選擇，但我能告訴你的是基於我們所知道的一切。我們非常有信心，我們將能夠透過關稅來實現我們的年度指導，但我們還沒有準備好告訴你具體的計劃，因為它正在製定中。第一個問題，史考特，再提醒我一下，你的第一個問題是什麼？

Yeah, just some specific examples on the changes you're making to the marketing front for new customer acquisition.

是的，這只是一些關於您為吸引新客戶而在行銷方面做出的改變的具體例子。

Yeah, okay, yeah, so keep in mind we're in the early stages of building out this marketing engine, so a lot of what you're going to hear from me is just blocking and tackling, but it's things that, as I said, we feel very good about the work that we're doing. The first thing is, we talked about implementing this technology in the 4th quarter and that we've been able to leverage that in Q1 and that's just simply, being able to see, to develop a link between when a guest receives the marketing impression versus what the guess behavior is in center.

是的，好的，是的，所以請記住，我們正處於建立這個行銷引擎的早期階段，所以你從我這裡聽到的很多內容只是阻止和解決問題，但正如我所說的，我們對我們正在做的工作感到非常滿意。首先，我們談到了在第四季度實施這項技術，我們已經能夠在第一季度利用它，這只是簡單地能夠看到，在客人收到行銷印象的時間與中心猜測行為之間建立聯繫。

That's something, a lot of consumer brains have had, we have not had, and so what that does is that gives us incredible insight into the best use of our paid media dollars. It also puts us in the best possible position to run through a test and learning process to get smarter and better at paid media. So we've been able to really drive efficiency on our paid media, which has really helped our CPAs. So that's been kind of first and foremost, and then, on, the other items that we've been doing is we've been testing different creative messages, we've been testing different. Aspects of the creative, so how guests feel about different images, how guests feel about different messages, and we're really starting to H1 in on that right combination that's going to drive, the greatest incrementality. So, just as I said, just very early innings, we've done a lot of research during this period of time that's also helped inform where we're going from this point in time.

這是許多消費者的大腦所具備而我們所不具備的，因此它能讓我們深入了解如何最好地利用我們的付費媒體資金。這也使我們處於最佳位置，可以透過測試和學習過程，在付費媒體方面變得更聰明、更好。因此，我們能夠真正提高付費媒體的效率，這對我們的 CPA 確實有幫助。所以這是最重要的，然後，我們一直在做的其他事情是我們一直在測試不同的創意訊息，我們一直在測試不同的。創意的各個方面，例如客人對不同圖像的感受，客人對不同訊息的感受，我們真正開始在 H1 上找到能夠推動最大增量的正確組合。所以，正如我所說的，在非常早期的階段，我們在此期間做了大量的研究，這也有助於我們了解從現在開始的方向。

Got it. Thank you.

知道了。謝謝。

That concludes today's question and answer session. I'd like to turn the call back to Chris Morris for closing remarks.

今天的問答環節到此結束。我想請克里斯莫里斯 (Chris Morris) 作最後發言。

Okay, thank you, everybody. We really appreciate the interest. We look forward to continuing to share our results as we move forward. Have a great day. Thank you.

好的，謝謝大家。我們非常感謝您的關注。我們期待在未來的進展中繼續分享我們的成果。祝你有美好的一天。謝謝。

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

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。