Hello and welcome to the Burlington Stores, Inc. Third Quarter 2024 Earnings Webcast and Conference Call. Please note that this call is being recorded. After the speakers’ remarks, there will be a question-and-answer session. [Operator Instructions] I'd now like to hand the call over to David Glick, Group Senior Vice President, Investor Relations, and Treasurer. You may now begin.

Thank you, operator, and good morning, everyone. We appreciate everyone's participation in today's conference call to discuss Burlington's fiscal 2024 third quarter operating results. Our presenters today are Michael O'Sullivan, our Chief Executive Officer, and Kristin Wolfe, our EVP and Chief Financial Officer. Before I turn the call over to Michael, I would like to inform listeners that this call may not be transcribed, recorded, or broadcast without our expressed permission. A replay of the call will be available until December 3rd, 2024. We take no responsibility for inaccuracies that may appear in transcripts of this call by third parties. Our remarks and the Q&A that follows are copyrighted today by Burlington Stores. Remarks made in this call concerning future expectations, events, strategies, objectives, trends, or projected financial results are subject to certain risks and uncertainties. Actual results may differ materially from those that are projected in such forward-looking statements. Such risks and uncertainties include those that are described in the company's 10-K for fiscal 2023 and in other filings with the SEC, all of which are expressly incorporated herein by reference. Please note that the financial results and expectations we discussed today are on a continuing operations basis. Reconciliations of the non-GAAP measures we discuss today to GAAP measures are included in today's press release. Now, here's Michael.

Thank you, David. Good morning everyone, and thank you for joining us. I would like to cover four topics this morning. Firstly, I will discuss our third quarter results. Secondly, I will review our fourth quarter outlook. Thirdly, I will share some comments on our longer-term model and specifically our new store program. And lastly, I will describe our preliminary thinking on our sales and earnings growth outlook for 2025. Then I will pass the call to Kristin to share the financial details. Okay, let's start with our Q3 results. Total sales increased 11% in the third quarter, on top of 12% sales growth last year. The major driver of this growth is our new store opening program. We continue to be very pleased with the performance of our new stores, and we are excited by the strength of our new store pipeline. I will talk more about our new store program in a few moments. Comp store sales for the third quarter increased 1%. This was on top of 6% comp growth in the same period in 2023. Our comp sales trend in the third quarter was impacted by significantly warmer temperatures than last year. After stripping out the impact of these warmer temperatures, our underlying comp store sales growth was very healthy. To explain and illustrate this, I am going to provide more context on our Q3 comp performance than I normally would. In the past, I have described Q3 as having two very distinct sales drivers. For the first half of the period, the trend is dominated by back-to-school selling. Typically, this lasts through the second week of September. After that, the trend depends critically on the weather. If the temperature for the remainder of the quarter is cooler than last year, then that helps to drive…

Thank you, Michael, and good morning, everyone. Let me start with our third quarter results. Total sales grew 11% on top of 12% total sales growth in the third quarter of 2023. Comp sales grew 1%, which was on top of 6% last year. This result was at the midpoint of our guidance range. Our adjusted EBIT margin expanded 80 basis points versus last year. The drivers of this margin expansion were higher gross margin and leverage on supply chain costs. Let me walk through the details. The gross margin rate for the third quarter was 43.9%, an increase of 70 basis points versus last year. This was driven by a 50 basis point increase in merchandise margin due to strong regular price selling, which generated faster inventory turns and lower markdowns, and also due to higher markup from better buying. Freight expenses decreased 20 basis points in the quarter. Product sourcing costs were $210 million versus $200 million in the third quarter of 2023, decreasing 50 basis points as a percentage of sales. This was entirely driven by supply chain expense leverage from continued progress on our distribution center productivity initiatives. Adjusted SG&A costs in Q3 were 40 basis points lower than last year. When excluding approximately $10 million in expenses associated with the acquisition of Bed Bath & Beyond leases in the prior year, adjusted SG&A de-levered by 10 basis points. Q3 adjusted EBIT margin was 5.6%, 80 basis points above last year. We had guided to 60 basis points to 80 basis points of improvement. Our adjusted earnings per share in Q3 was $1.55, at the high end of our guidance range and represents a 41% increase versus the prior year. Last year's Q3 2023 results exclude approximately $10 million of pre-tax expenses associated with Bed Bath…

Thank you, Kristin. Before I turn the call over to questions, I would like to emphasize three key points from today's call. Firstly, we feel very good about the underlying comp trend that we achieved in the third quarter. Our comp trend after factoring out cold weather categories was around 4%. This was consistent with our comp trends since March of this year. We're also very pleased with our margin performance in Q3. We achieved 80 basis points of leverage on 1% comp growth. Secondly, we believe that we are well positioned as we enter the key holiday selling period in Q4. We are managing our business cautiously, but based on our underlying sales trend in the third quarter and on the strength of our holiday assortments, we are optimistic about our prospects. Thirdly, we feel very good about the progress we are making towards our longer-term financial goals. We will talk more about this progress in our year-end call in March. But we are especially pleased with our new store opening program. The early performance of our 2024 stores has been strong. And our new store pipeline for 2025 and beyond looks very good. I would now like to turn the call over for your questions.

[Operator Instructions] Your first question comes from Matthew Boss from JPMorgan. Your line is now open.

Great, thanks and good morning. So maybe, Michael, just to kick off, on your cold weather businesses and the sensitivity to warmer weather that you cited, in your remarks you said that the weather impacted your 3Q comp by 300 basis points. Does this include the impact from hurricanes? And then just looking forward, do you see risk in the fourth quarter if the weather were to be unseasonably warm or just any additional color on November, maybe fourth quarter to-date trends I think would be really great. Michael O’Sullivan: Well, good morning, Matt. Thank you for the question. Before I answer your question, I would like to make a comment about our cold weather businesses. I realize that in listening to our prepared remarks today, investors might get the mistaken impression that our strong position in cold weather merchandise is somehow a problem. It is absolutely not. The fact that we are one of the first retailers that shoppers think of when they need outerwear is a huge strength for us and a source of competitive advantage. The outerwear business is a great business. We are very good at it, and we will continue to look for ways to build and strengthen that business. But with that said, of course, we know that there will be temperature variations from year to year, especially in a transitional month like October. But those variations tend to even out over time. After an October like the one we've just had, where temperatures were well above the long-term average, the odds are very good that the temperatures next October will be cooler than this year. And that's likely to be a tailwind to our comp in 2025. If that happens, then we'll probably call that out on this call next year. And you…

Great. And then a follow-up for Kristin. If you could just elaborate on your comments about inventory levels exiting the third quarter, if there's any imbalance with outerwear inventory tied to the slower 3Q sales trend, or just any residual markdown risk to consider in the fourth quarter.

Good morning. Thanks, Matt. Regarding inventory levels, we were very pleased with how we managed inventory during the third quarter. As Michael described, our merchants were careful not to overreact to the strong back-to-school selling in the first half of the quarter. We reacted quickly to the warmer temperatures and the resulting challenging sales trends and pull back on receipts. And as a result, as I mentioned, we ended Q3 with comp store inventories down 2%. Our inventories are clean and current and we do not have a major markdown liability heading into the fourth quarter. And finally, as it relates to reserve inventory, our penetration increased to 32% of total inventory versus 30% last year. We are very happy with the great buys we were able to make. We feel good about our reserves, especially the content and values. And finally, I should add, as Michael just mentioned, the slow start to outerwear could perhaps translate to great buying opportunities in the category later in the season.

Great color. Best of luck.

Thanks, Matt.

Your next question comes from Ike Boruchow from Wells Fargo. Your line is now open.

Hey, good morning, everyone. Two from me. Michael, first, I guess I was wondering if you could share, you've helped us out in the past, just comments on the health of the low income consumer. I know dollar stores have been struggling this year, but this doesn't seem to have affected your business. I guess just what are you seeing in your customer research, your underlying trends within that segment would be great. Michael O’Sullivan: Well, good morning, Ike. Thank you for the question. Yes, as you know, the lower income customer is a very important customer to us. We tend to index much higher among this demographic than our retail peers. We're very focused on offering great value to that customer, and I would say that we're more tuned in now, more tuned in than we ever were before into what is happening with that customer demographic. I can't really comment on what's happening with dollar stores. Their business is so different to ours given their focus on consumables. But instead, let me describe what we are seeing with the data we have around the lower income customer. One of the things that we track very closely is the performance of our stores based on the demographics of their local trade area. So we segment our stores based upon the demographics of the local trade area and we look at their sales trend. Some of our highest volume and most productive stores are in lower income trade areas. And two years ago in 2022, those stores were underperforming the chain. Now, because they are relatively high volume, that had a big impact on our overall comp trend. If I fast forward to today, our stores in lower income trade areas are outperforming the chain based on comments that we've heard from other discretionary retailers that are focused on lower income customers. We think that may be part of a general trend. We think that customer is looking for great value and maybe for the first time since 2021, it looks like their real incomes are finally edging up. I should also add that in that analysis of store performance by trade area demographics, we are seeing healthy performance in other income bands as well. And we see that as evidence that shoppers from moderate to higher income bands may be trading down. But coming back to the lower income customer, as we've discussed previously, that customer really bore the brunt of cost of living increases in 2022. Unlike other income groups, those shoppers don't have savings or debt capacity that they can use to cushion the impact of higher rent or grocery prices. So in 2022, that customer had to pull back sharply on discretionary spending. Over the past year or so what we're seeing is that as their real incomes have stabilized and started to pick back up, they're spending more and we think that's helping to support the strength of our underlying trend.

Got it. Super helpful. And then maybe follow-up for Kristin. Just on margin expansion, can you maybe give us additional color on the drivers of the margin in Q3 and maybe suggest some details on the Q4 guide, what's embedded in your plan for Q4 margin?

Great. Good morning, Ike. Thanks for the question. I'll start with the third quarter. We were pleased to deliver the 80 basis points of operating margin expansion, especially on a 1% comp. I'll provide a little bit more color on those drivers. Within the gross margin line, the merch margin was up 50 basis points. This was driven by lower markdowns as we had strong regular price selling and faster turns. We also got a bit of help from higher markup driven by better buying. And then in gross margin, freight as a percentage of sales also improved by 20 basis points. Moving down on product sourcing costs, as we mentioned, supply chain leveraged by 50 basis points. This was driven by our continued progress on our efficiency initiatives. These are primarily productivity improvements in distribution centers. And then excluding the impact of Bed Bath & Beyond leases last year, adjusted SG&A was higher by 10 basis points due to deleverage of fixed costs on a 1% comp and the balance of the P&L de-levered by about 30 basis points including depreciation and other income. So that was kind of the third quarter. If we turn now to the fourth quarter, we're maintaining our previously issued guidance. So that was a 5% to 7% total sales growth, a flat to 2% comp growth, and a 50 basis points to 80 basis point decline in EBIT margin. And there are several drivers of the lower projected EBIT margin in Q4 that I want to talk through. First, we have a few transitory headwinds in gross margin in the fourth quarter. There's some incremental ocean freight costs and merch margins that we referenced on last quarter's call with the exposure to the spot market. And clearance levels are expected to be more…

Awesome, thanks so much guys.

Your next question comes from Lorraine Hutchinson from Bank of America. Your line is now open.

Thank you. Good morning. Michael, I realize there's a lot of external uncertainty, but what impact do you think the policies of the new administration might have on your business over the next few years, and how are you preparing for this? Michael O’Sullivan: Well, good morning, Lorraine. I think that's what they might call a $64,000 question. The headline, I think, is it's very difficult to predict. If I think about it, there are some policies that I could absolutely imagine might help our business, especially policies that enhance the real incomes or the discretionary spending power of our core customers. For example, lower taxes on overtime pay or on tips or higher child tax credit or policies that bring down the cost of energy. And of course, as a separate item, if corporate taxes are reduced, then that would be very helpful to our business in terms of earnings and cash. We are a domestic US retailer. We don't have foreign subsidiaries. Our earnings are all in the United States. So lower corporate taxes would have a huge impact. Of course, there are also risks and potential headwinds. For example, if inflation were to pick up again or if there were an economic slowdown. And then there are policies such as tariffs or tighter immigration controls or reductions in federal programs where the potential impact, I think, really depends on the scale of the policy. For example, on tariffs, we don't know how significant those will be, what categories they'll apply to, or even which countries. I think we just have to wait and see the details before we make an assessment. But maybe I should just make a general comment. My experience has been that whenever there is significant uncertainty or disruption in the external environment, then while that can be a headwind and a headache for everyone, including us in the short term, the uncertainty and disruption is often very good for off-price retail in the end. The reason why uncertainty disruptions often work out well for off-price is that the off-price business model, when it's well executed, is better able to handle the uncertainty and respond to whatever happens. The implication for us is that we need to execute our business well. In other words, plan conservatively, maintain flexibility, and be ready to react. If we do that, then there may be some bumps along the road, but I believe that things will work out well for us.

Thank you. And then, Kristin, can you provide any additional details on how you're thinking about the outlook for 2025? In your remarks, you mentioned the possible comp range of flat to plus 2% and the modest margin expansion at the high end. I'm curious about your confidence in the level of margin expansion and what the major drivers of expansion are likely to be.

Thanks, Lorraine. It's a good question. First, I'd caveat a bit that what we've shared with you is our preliminary plan for fiscal ‘25 and that could change obviously if conditions change over the course of the next few months and as Michael just described, there really do remain a lot of unknowns whether it's fiscal policy, tariffs, or the health of our core customer et cetera. But that said, given what we know today, we've done a lot of work on our preliminary budget for next year and we can share some high-level thinking. First, on a flat to 2% comp, we would expect high single-digit revenue growth driven by 100 net new stores. And while we would, of course, strive to do better than this, planning our comp sales and our expenses on the conservative comp range gives us flexibility to react to our business, to effectively chase and to flow through any upside, as well as more effectively manage any downside risks. And at the 2% comp, we would expect to get some modest operating margin improvement, perhaps 20 basis points to 30 basis points. Similar to 2024, we expect most of the same drivers, including merch margin improvement and continued benefit from supply chain productivity initiatives. And I do want to acknowledge that this operating margin expansion is a bit less than where we started fiscal 2024 and there are just a couple of reasons for that. First, we’ve captured supply chain cost savings at a faster pace than we've expected. In a long-range plan we shared this time last year, we spoke to driving 100 basis points of supply chain cost savings over the first three years in our long-range plan. We will likely recognize about half of that, around 50 basis points in fiscal 2024. So the balance we expect over fiscal ‘25 and ‘26. And secondly, we're being a bit more cautious on freight for next year. We've made very good progress on freight this year, but we want to plan conservatively here based on uncertainty, certainly around tariffs, and what impact that could have on freight rates next year. So ultimately we expect the margin improvement on a 2% comp to come from incremental merchandise margin improvement from faster turns and lower markdowns and additional supply chain efficiencies. These would be offset by some deleverage in store costs like occupancy on the 2% comp. And I also want to call out that for every 100 basis points of comp above the 2% comp, we would expect 10 basis points to 15 basis points of incremental EBIT margin. So, of course, a final caveat, these assumptions could change as the external environment evolves, but I did want to give a sense for our assumptions at this stage as we've done historically.

Thank you. Michael O’Sullivan: Thanks, Lorraine.

Your next question comes from John Kernan from TD Cowen. Your line is now open.

Good morning, congrats on the continued margin expansion. Michael O’Sullivan: Thanks, John.

Michael, maybe another $64,000 question here. You've been at Burlington for five years. That's a long time for a CEO in this sector these days. There's been a number of CEO turnover announcements recently, including among one of your off-price peers. How are you thinking about your own timeframe in the role and how are you feeling about the executive team at Burlington overall? Michael O’Sullivan: Well, good morning, John. That's two $64, 000 questions. That's great. The direct answer to your question is that I'm not going anywhere. I'm a young man and I'm not thinking of retirement. I'm 100% committed to Burlington. But maybe I should just take a minute to expand on that answer. In the 2023 to 2028 long-range plan, we've laid out, I think, fairly ambitious growth goals, 500 net new stores, 60% higher sales, and a tripling of operating income. I intend to be around to hit those financial targets. And I should add that those growth numbers are not just -- just the beginning for Burlington. We have potential well beyond 2028. Leaving aside the numbers though, on a personal level, I feel really vested in driving our business to its full potential, and in the specific initiatives that will get us there. And we're doing some tremendously exciting things in merchandising, localization, supply chain, store environment, and with our new store and store relocation programs. And I plan to be right here working with my team to support and help drive those specific programs. So lastly, let me talk about the team. I don't mean to brag, but I genuinely feel like I've assembled the A-Team here at Burlington. Across the company, we've been able to bring in tremendous talent. That's especially true at the senior level. We have a huge amount of off-price experience. But we've also successfully brought in functional and category expertise and experience from other retail environments. Add to that, we have a very strong and experienced base of long-tenured and homegrown Burlington talent. And whenever you put together a new team like that, it can take a little bit of time to gel, but over the past 12 to 18 months, I've seen a real maturation in that group. I think our senior leaders are operating very effectively as a team.

Got it, thank you, that's good to hear. And then Kristin, can you share some more details on the supply chain savings initiatives? You spoke to some of these in response to Lorraine's question. We can see in the model you've achieved strong leverage on expenses throughout this year, but how do we think about the basis point opportunity related to supply chain expenses in ‘25 and beyond?

Good morning, John. Appreciate the question. We are really pleased that supply chain de-leverage recapture is running ahead of schedule. As I just described in an earlier question, we estimate that supply chain productivity improvement, we target driving potentially 100 basis points of the 400 basis points of margin improvement we outline in the long-range plan. Again, in Q3, supply chain leveraged 50 basis points as our efficiency initiatives helped drive cost savings in DC. We have a number of productivity initiatives we're working on in DC operations. We're redesigning how merchandise flows within the DC, automating select processes, ultimately reducing touches and time to process merchandise and saving labor dollars in DC. And as I mentioned a few moments ago looking ahead into Q4, it's important to keep in mind that we will be lapping the quarter last year when we first started to drive meaningful cost savings in our supply chain. In Q4 last year we leveraged supply chain expense by 40 basis points and this was a real turning point for us on the expense line a year ago. So we would expect to show more modest leverage on supply chain in Q4 this year. We'll probably end ‘24 showing product sourcing leverage of around 50 basis points better than last year. So we're about halfway there to the 100 basis points goal embedded in our five-year plan. And then longer term, beyond 2028, we do have an opportunity to drive incremental leverage as we modernize our supply chain with new, larger, and much more automated DCs that we expect to open to support our growth. As I mentioned, our southeast DC in Savannah Georgia is slated to open in 2026 and it's a great example of this. And with new DCs, we have an opportunity to design these distribution centers for off-price and with more automation.

That's very helpful. Thank you. Michael O’Sullivan: Thanks, John.

Your next question comes from Brooke Roach from Goldman Sachs. Your line is now open.

Good morning and thank you for taking our question. Michael, can you provide an update on the strategy to increase the mix of better brands within the Burlington assortment? Michael O’Sullivan: Good morning, Brooke. Thank you for the question. I think I'm going to reframe your question slightly. Rather than just focusing on better brands, I would say that for the last couple of years, we've been working to elevate our assortments and thereby deliver even better value to the customer. Now, in businesses like, say, sportswear or footwear, that means a higher mix of better or recognizable brands. But in other areas like home or juniors, it's more about the quality or the design or the fashion. Now together with price, those are all drivers of value. And the importance of each driver depends on the business and also depends on the customer, which is why our [Technical Difficulty] work very hard to make sure that we're offering great value, but within the context of a good, better, best assortment. Now, as we've discussed before, this isn't a new strategy. When you boil it down, the strategy is and always has been to offer great value to shoppers. Elevating our assortment in terms of brand mix, fashion, design, and quality is more of an evolution rather than a revolution. There's no significant hit to merchant margin here. In fact, as Kristin described in the prepared remarks, in Q3, we achieved an increase in merchant margin driven by lower markdowns and higher markup. Together with our strong underlying sales trend, we see that as evidence that our elevation strategy is working.

Great. And then just for Kristin, tariffs have been mentioned a few times on today's call. Can you speak in more detail on how you're thinking about tariffs should they be implemented and the potential impact on Burlington's business?

Good morning, Brooke. Yeah, it's a very good question. It's one that's pretty difficult to answer at this point. Michael talked about next year's uncertainties, including the unknowns on tariffs. But I can provide some tariff data and some history to put this in context. So our direct import exposure where we are directly paying the tariffs to import goods into the US is relatively small and much lower than many retailers. In 2024, we expect to have directly imported about 8% of our merchandise. And of those direct imports, the majority is from China. So let's call it about 7% of our merchandise has direct tariff exposure to China. So, well over 90% of our buys are on merchandise where we are not directly paying the tariff. And as an off-price retailer with a flexible buying model, we do have the ability to negotiate the price we pay and to mitigate that impact. And most importantly, we will ensure we continue to provide value. We provide value to the customers and sustain a value gap, i.e., savings, versus full price retailers. And as we did in 2018 and the 2019 timeframe, we will look for strategies to offset incremental tariffs, we'll work with vendor partners on the cost side, as well as examining our sourcing, where we source from. And we managed as well during the last iteration of tariffs, and we actually saw our merge margin was up in both fiscal ‘18 and ‘19. And finally, and most importantly, as Michael kind of described earlier, tariffs will likely lead or could lead to disruption, which is ultimately good for off-price. Manufacturers may build up inventory levels to get out in front of tariffs or production in various categories could move from one country to another. These sorts of disruptions do create buying opportunities for off-price. So ultimately we acknowledge there's tremendous uncertainty around tariffs, but our off-price model is flexible in terms of what we buy and from where. And our direct import penetration is low. So ultimately, we see that as a positive as we face this potential issue.

Great. Thanks so much. I'll pass it on.

Thanks, Brooke.

Your next question comes from Alex Straton from Morgan Stanley. Your line is now open.

Thanks a lot. Maybe for Michael, taking a step back, what Burlington 2.0 initiatives are you most excited about right now? And how will those show up in Burlington's financial profile over time? Michael O’Sullivan: Well, good morning, Alex. Thank you for the question. I really like this question. Let me talk a little bit about. Well, first of all, there are many important initiatives going on across the company in merchandising, stores, supply chain, real estate and IT. But to answer your question, maybe I should just highlight two specific initiatives that we've recently rolled out and that I expect will have a big impact over time. Firstly, in 2023, we completely refreshed and updated the suite of reports that our merchants use to analyze sales trends. But then, in the first half of this year, so quite recently, we followed that up and rolled out a new in-season trending process. Now that allows merchants and planners to more frequently and rapidly react to what they're seeing in those sales reports. They can re-fork our sales and they can move open to buy dollars into businesses that are trending. And they can pull money out of areas that are not trending. Now, to some degree, of course, they've always been able to do that to some degree. But the new reports are more accurate and up to date, and they provide our merchants with better visibility to support that reporting process. And add to that, the new process enables greater frequency and speed in making those changes. So, I think those improvements were already helping us to more rapidly and effectively chase or pull back based on the trend. Secondly, in the summer, we turned on new store-level sales and allocation algorithms to more effectively respond to trends of the individual store class level and thereby drive greater customization of the assortment by store. Now, those localization algorithms are based on machine learning and over time, they're going to optimize the allocation of receipts based on store class level selling. That'll take some time for that effect to really build, but it should drive stronger sales, faster turns and lower markdowns. I think that the two initiatives I've just described provide a good illustration of what we're trying to do with Burlington 2.0. We know that when it comes to processes, systems, tools, and execution, we're behind our off-price peers. But that's just another way of saying we have huge opportunity and upside. And we're very focused on that upside and on narrowing that gap versus our peers. The two initiatives that I've described, I think, are good examples of how we're going to do that.

That's really exciting. Thanks for sharing that. Maybe one more near-term question for Kristin. Can you just provide some color on comp trends in the quarter as it relates to regular price versus clearance selling?

Alex, good morning. Yeah, thanks for the question. I acknowledge that this was a benefit to merch margin in Q3, but let me provide just a little more detail. Our regular price selling continues to be very strong. In the third quarter, regular price sales once again outpaced our trend. Regular price selling did a 3 comp increase in Q3, 200 basis points above our overall trend. We continue to benefit from our approach of chasing the business, operating with leaner inventories, driving faster turns, and thereby incurring lower markdowns which then translates to higher merchandise margins. And we really do see this as further validation on our merch 2.0 initiatives, our growth and maturation of our merchandising team, and strong inventory control. And I believe I mentioned this in an earlier question, but it's worth reiterating, in regards to Q4, clearance levels are projected to be more similar to last year's levels, which would provide less merch margin benefit in Q4 than we've seen year to date.

Operator, I think we're at time. You can turn the call back to Michael.

Thank you so much. We are now done with the Q&A session. I'd now like to hand back over to Michael O'Sullivan for a final remark.

Well, let me close the call by thanking everyone for your interest in Burlington Stores. We look forward to talking to you again in March to discuss our fourth quarter 2024 fiscal results. I'd like to wish everyone a happy Thanksgiving and thank you for your time today.

Thank you for attending today's call. You may now disconnect. Have a wonderful day.