All right, thank you for joining us at the Consumer Retail Conference. We are joined in the room, Capri Holdings. Take it away, Paul.
Is it on? All right. Ready to rock. Let's do this. Thanks for being here, CEO John Idol, Capri. Really appreciate your time and the support and the conference. A lot of things going on in terms of your strategies. There's a lot to turn around. Maybe give us sort of an update on the strategic initiatives, what's working, what's not working, and maybe we'll start there and build from that.
Sure. Thank you, and thank you for having me down here today. At Capri, we feel like we're in a very good place right now. Number one, we have two incredible brands. We have Michael Kors, 45-years-old, Jimmy Choo, 30-years-old, and these are brands rich with heritage and good brands will always go through different cycles. We feel like we've identified the opportunities for us. We really started about a little over a year ago, in particular on Michael Kors, and maybe we'll talk about that in a little bit. Where we saw the opportunity was to take both of these heritage brands and to start to look at the marketplace as an opportunity to grow with younger consumers.
That's both with the Gen Z and with millennials as well, and how could we take more market share with that consumer. We looked at that both brands through that lens. Michael Kors in particular, we looked at the Jet Set, and our heritage of that, and we didn't wanna give that up, and we certainly saw that the consumer was responding to that. We just looked at it through a more modern lens. With Jimmy Choo, same story where we saw a brand that has this deep, deep engagement with consumers, how could we modernize it?
Along with that, we looked at both of the brands, and we thought there was an opportunity to reset our strategic pricing architecture and to look at the product and focus a bit more on the trend that really was happening around the world in fashion and make sure that we were on top of that. I think we've been able to do that in both brands in a very short period of time, better than we had done in the past. The last thing is, when we looked at both of the brands, we knew there was an opportunity to change the way that we were marketing. In particular, with both brands, we're utilizing influencers in a much more significant way.
We're also looking at the channels that we're marketing in, primarily social media channels, and we're leveraging those channels and spending a lot more of our capital or financial marketing funds in those channels. It's really starting to pay off for us. The last piece of all of this is, and really more of a Michael Kors issue, is we've reduced substantially the amount of discounting that was going on with the business, and that was a result of really having the wrong product out and much higher prices than the consumer was responding to. You know, I'll talk more about that later.
Having us really reset that in Michael Kors has helped us dramatically with full price sell-throughs, having less markdowns. In Jimmy Choo, it's created a really big opportunity for us, in particular in the accessories world. We feel great about these two heritage brands, luxury brands. The consumer's responding to our new initiatives in terms of marketing product. The next thing is I think as you know, late November, early December, we sold Versace, which put us in a fantastic position because we ended the quarter with $80 million in debt. For a company our size to have that very small amount of debt, our leverage has dropped almost in 1/2. Will continue to go down given our strong free cash flows in the company.
Gives us the opportunity to make significant investments in Michael Kors in particular, a little less so in Jimmy Choo. Talk about that shortly. It gives us the opportunity to reinstate our share repurchase program, which I think you might have seen that we announced a $1 billion share repurchase program, which is quite significant. Shows our belief in the companies, our board of directors' belief in the two brands that we have, and our ability to generate free cash flow, and invest in the company and return capital to shareholders.
You mentioned Jimmy Choo. I'm curious if you look at that brand, we obviously saw decent results last quarter. I'm curious if you look at that brand as having turned a corner. Can we kind of look forward and think that brand's gonna achieve consistent growth?
Yeah. We've had two quarters of comp store sales increases for Jimmy Choo. We are comped up right now in this, which is our Q4, it'd be our third straight quarter of comp store increases. I would say yes, we are on the right track with Jimmy Choo. I'll start with first once again, you know, the marketing of Jimmy Choo. We've really have a new vision of who the Jimmy Choo woman is, and she is effortlessly alluring. That's slightly different than where we were before, which was runway ready and glamour, et cetera.
It's not that she's not still those things, we think that, you know, the way the consumer is looking at brands today and how those brands fit her lifestyle, this was a bit more of a relevant positioning for Jimmy Choo. You can see that in our new marketing campaigns. What's also exciting is the way we're marketing with the consumer with shoes in the casual category. Again, you think of Jimmy Choo for, you know, a glamorous event or a party or a wedding. We really had an opportunity to lean into her, whether she was, you know, going out on the weekends with her friends, just, you know, having a great time or dinner or whatnot, and not being so kind of one-dimensional. That marketing has really been incredible.
That category of casual is starting to bring us a lot of new customers. It's not just we're selling to existing customers, but our new customer acquisition is going up very nicely at Jimmy Choo. The second thing is after the casual shoe success that we're having is accessories. Right at the same time we looked at the strategic architecture of Michael Kors, we decided to look at that for Jimmy Choo and accessories. We had seen that the more pure luxury players had really gotten to almost $3,500 on handbag opening price points. We thought there was a very large category at $1,500 and below, and we introduced two new groups about six months ago, one called Bar and the other called Curve.
Both of these groups are doing fantastic for us, both in our own distribution and in our wholesale partners distribution. We're really filling a niche where many players have kind of left. Again, we make all of our bags in Italy, so it's all beautiful quality. Then we have other bags that are in the 1,500 and higher category, a bag called Cinch, which we've had for some time, doing very, very well for us. Then lastly, our Bon Bon group. We now have four categories inside of Jimmy Choo in handbags that are really showing very strong increases. I think we said last quarter that we saw double-digit increase in all that full price category of bags. That's quite exceptional.
When you look at Jimmy Choo, and I've said now we're on our Q3 of comp store increases, I think we're feeling very good about that brand. We've publicly said we think it's about an $800 million dollar business. I think if we can continue to get things moving at the current rate, it could be bigger than that. We also believe that Jimmy Choo will return to double digit operating margins, somewhere between 10% and 15%. On a $700 million-$800 million dollar business, that's a lot of money for a company like ours. I wanna reiterate Jimmy Choo is not for sale. We think it's a phenomenal asset for us, and we look to continue to grow that brand.
It's great. It's great to see the inflection in that brand. I think what everybody wants to know, though, is like, when is the inflection coming in the Michael Kors brand?
Yeah.
Anything you could provide in terms of how you're thinking about that inflection?
Sure. Again, we started our new strategies or new strategic initiatives in February of this past year. We're basically only a year into this. I would say we focused primarily... Well, let me back up. First thing we did was we looked at our Jet Set heritage through a new modern lens. I think you've probably seen Suki Waterhouse as our main brand ambassador and campaign image lead, and she really embodies what the brand stands for. She's much more natural. She's again very comfortable and looks strong and powerful, and that's a little bit different than the... Again, we had a very glamorous, fast looking image to the company.
It's not that we wanna lose that completely, but this is a more modern take on it. We believe that our consumer is traveling the world in style, that doesn't mean that she's flying off to Saint-Tropez, which is our current campaign, every weekend. It means that you might be going from, you know, Miami to Palm Beach to have dinner. It might mean that you're going from New York to Disney to have a great time with your family. It just means that you're on the move. When you put on Michael Kors, we want you to feel confident. We want you to feel like you have what we call standout style.
What's important about that is we have great data analytics in the company, and we are now seeing that the customer engagement rates are rising very, very rapidly. The customer is responding to the new marketing campaigns, and we can see the rise even at some of our peak campaigns that we had with Bella Hadid. Some of the new campaigns are higher than that, which is really quite interesting for us to see that happen. That's the first thing. The second thing is, again, we had focused on our full price business about being much more focused on trend and what was happening in the marketplace. We were a bit behind on that. I think if you get a chance to see, if you're here, go to see our Aventura store.
If you're in New York, go to see our new flagship in Rockefeller Center, et cetera. You'll see the new store concept, but the product inside of that store is much more on trend. The next thing we did is we looked at our strategic pricing architecture. Coming out of COVID, we raised prices as high as 25% in accessories. The consumer said that that's not the pricing that they wanted to see from us. Therefore, we were taking too many markdowns to get back down to the pricing that we were ultimately selling the product at. Once we changed that strategic pricing architecture in February, we have had quarter on quarter of full price sales increases in our full price channel, which is really extraordinary.
I think we also quoted that last quarter we saw AUR increases, which is also pretty interesting after we lowered prices. We're really having a strong reaction to the strategies that we've put forth from marketing, product and pricing standpoint. Lastly is, as I mentioned, the new store designs. We've talked about the fact that we're gonna renovate 300 stores or 1/2 of our store fleet, 350 stores. And we're gonna spend $300 million doing that. We have the capital to do that. We also have cash, free cash flows to do that. We will do about 100 of those this year. This is the year we really get going on that.
Those new stores are seeing very solid traffic increases and very solid sales increases. We know that it's working. We know that the new product, new marketing, new pricing architecture and store renovation program is working. I'll wrap that all around the full price business. I know that, you know, you all saw us comp positive in our full price in Q2. In Q3, we did not comp positive, that was by design, and that was because we removed a tremendous amount of promotional activity in our full price channel. You'll see a little bit of bumpiness like that in our full price channel. Sitting here quarter to date, we're actually positive in full price. I don't know that we'll end the quarter that way or not, we're positive right now.
That just shows you that the consumer, again, she's reacting, you know, very strongly to the activities and the way that we're positioning the brand. In terms of outlet, that's where we need more work. We had you know, when we went off on this new strategic architecture, we had to get the full price piece right first. When the consumer's responding there, they are definitely. You'll see that trickle down into the outlet channel. The outlet channel has been an issue of the product really being off trend. We in Q3 had to clear a lot of that product. We're almost out of it at this point. When you go to our outlet stores, the new floor sets have really just started to hit.
We have a little bit come in our fiscal Q3. The sell-throughs on that product have been excellent. They've also been at higher AURs. We won't get the full range of product that we need in the outlet stores until the fall season, really sort of starting in August. A couple of things to note. In outlet, we've had two big pullbacks in promotional activity, so that's just the amount of sale days, the amount of discount that we did. Secondly, we've had a very big pullback. Around October of this past year, we eliminated what was referred to as Daigou sales, and this is where we sold to certain bulk buyers. You can no longer inside of our stores transact on that.
We do have an app that you can see, but even on that app, we reduce the discount by 50%. That is costing millions of dollars a quarter. We know it's the right thing to do. That will no longer be a headwind for us after October. Really, after October, a lot of the reduction in promotional activity as well as the Daigou sales will be behind us. We'll have a tremendous amount of new product. I use the number of about 75% in the outlet stores. That will really happen July and August. I think you're gonna see similar things to what we've got happening in our full price Michael Kors business start to happen in our outlet channel.
Additionally, same thing in outlet that we're doing with Michael Kors in full price, very heavily, use of influencers because the outlet channel is just like the full price channel. She wants trend. She wants to see fashion. It's no longer where you can just take an old product, you know, bring it down after it's been a few years in full price, because if you don't give it to her, someone else in these centers is going to give it to her. As well as the fact that we have a lot of tourists, you know, traveling, and they're looking for fashion and trend. Additionally, in the outlet stores, we are now selling our full price line, what we call icons. We have three groups in that.
It's Hamilton, which is one of our iconic bags, for the last 15+ years. We have a new group called Leila, and then lastly, Nolita. All three of those, when you walk in our outlet stores, it's highly identified. It's called Icons. It's representing in those stores where it has gone in about 5% of sales. We think we can grow that business inside of our channel. I would say we feel in full price, we have made a turn. It's, it's definitely in place. It's there. In outlet, we've got a little more work to do. We're very-- We've gone from cautiously optimistic, which is, I think, what I said in our Q3 earnings calls, to we are optimistic.
That's the inflection change in where we are. The last thing is our wholesale business. Our wholesale business made, I hope we emphasized it enough, we made a very big step change in wholesale during the holiday season. The wholesale partners were not keeping up with what we saw in our own full price channel. That is now getting to be close to similar. Again, the assortments look good in the stores. Consumers are reacting. We have not only in North America is our business getting much, much better in our wholesale partners, but in Europe, we have partners who we actually exited the stores who have come back to us and said, "We would like you to come back in.
We actually need you to come back in." The reason for that is, many of you know the luxury, the more top of the luxury market has slowed down, and we'll maybe talk about that a little bit later. The more accessible part of the luxury market is actually doing quite well. It's not just certain brands that might be associated with our company, but you see other brands, ready-to-wear brands also doing very, very well in this kind of accessible category. All of a sudden, a lot of our wholesale partners around the world are going, "We want not only Michael Kors back, but we want you in more doors, et cetera." We're very positive about what's happening in our wholesale channel.
I wanna remind everyone, the wholesale channel for next year, we are still planning it down. I think we've said that a number of times publicly. We are reducing our off-price business that we do today. It's predominantly a North America business. Over time, we will significantly reduce that business. We think that's right for the health of the company, which, and maybe is a good way for me to just give you a little color on. You know, we believe that total Capri, we will grow low single digits next year. We think we're gonna have gross margin expansion, and we'll talk, I'm sure, about tariffs and whatnot shortly. We think our SG&A is gonna be roughly flattish for the group.
We think there's gonna be very significant operating margin expansion, 50%, 60%, maybe even more percent operating margin expansion. When you look at that, and you look at that where the EPS is, Capri is gonna grow very quickly. Again, maybe it's off of a lower base, but it's gonna grow very quickly, and I think we've got the pieces in place now to do that. Jimmy Choo definitely has turned the corner. Michael Kors is, I think what we said to you, we were looking for this year to get on solid footing. I think we feel like we're now on solid footing.
Optimistic that next year can be an inflection or more optimistic.
Yeah. I think that's right. I think we went from being very cautious in all of our calls and presentations with everyone. We didn't wanna get, you know, ahead of ourselves or over our skis. You know, in our world what happens. If you just get a little bit of fire, if you get a little bit of, you know, a little bit of momentum, it turns into fire. Again, we are still the second largest, you know, accessible accessories player in the world. We have a very large footwear business. I should comment on that, on Michael Kors. Actually, the area where we need a little more work is actually our footwear business, and sizable to us.
We do have competitors in that world and they have taken market share from us. Very excited about the new product that's arrived in the stores literally just in the last 30 days, and we're seeing our business start to turn there. If we can get that category moving more quickly, that will also help accelerate our situation, both in our full price outlet and in our, in our wholesale channel. That's kind of the next big piece that we're working on right now, I think we'll be in a not a perfect place by the fall season, but a better place.
Excellent. You mentioned earlier, I think, spending a bunch of hundreds of millions of dollars on stores. I think part of that is remodel programs. Maybe you can talk about what you've seen thus far in your store remodels, what you expect go forward?
That's right. Well, again, the great news is after selling Versace, we have very little debt on the companies and we are going to be generating much better free cash flows as we move forward, so we have the capital to be able to invest in renovating stores. We have approximately 700 stores around the world, and our intention is to renovate half that store fleet in about three years. We got a few of them done this past year, just a handful, and the early signs of that renovation are that traffic is up and sales are up even more than the traffic. That's a very good result.
Obviously, part of that's the better product, better pricing, but consumers can feel that there's a change happening. The marketing campaign's changing. The stores with our new residential feel inside them is really looking exciting. I do have to tell you, we've got two stores or three stores open so far with what we call a Jet Set Lounge. We put in, we're offering, obviously, coffees and teas, et cetera, but we have non-alcoholic champagne. I think our European stores might have alcoholic I don't know. We are not charging for that product when you come into the stores today. That may change over time, but it's increased dwell time significantly, and it's a great experience.
We're gonna expand that in a number of stores very rapidly, a lot of the remodels that you'll see are gonna have this Jet Set Lounge. It's a wonderful Instagram opportunity too for consumers to come in. They have fun there. It's really turned into something that's a big plus, especially for our flagships. Actually, next week, I believe it is, we'll open our new flagship in Beijing, and it will actually have a full restaurant for Michael Kors inside of it as well. We're in a shopping mall called China World. We're very excited about that initiative as well. We'll open about 100 of renovated stores, and that's both full price and outlet.
If you get a chance, if you're in the New York, New Jersey area, you can see our flagship in Rockefeller Center. You could also go out to Jersey Gardens and see the newly renovated with the new format outlet store as well. We think, again, the more the customer sees this happen, the more they're going to say, "I like this shopping environment with Michael Kors. I wanna be a part of this experience." Our salespeople are very excited about this. In addition to that, you know, we've got a number of really exciting clienteling initiatives going on inside both full price and outlet. We have a tremendous amount of new technology for our sales associates to use.
It's creating real strong momentum for the teams at the store level.
Excellent. Coming back to something you mentioned earlier, I think you said 10%-15% on Jimmy Choo in terms of the margin.
Yes.
I think you also laid out a low twenties margin for the Michael Kors brands. This is all at your investor day.
Yep.
How do you feel about hitting those targets? What are the drivers to kinda get you to where you wanna be versus where you are now?
Jimmy Choo used to be a double-digit operating margin business. A lot of reasons why that, you know, has come down to, it's a small loss today. I'd start out by first saying that Jimmy Choo, we have a store network of about 230 stores globally. We'll reduce that slightly, probably closer to 200 stores over time. There, as a matter of as these stores increase productivity, it just drops straight to the bottom line. For Jimmy Choo, it's about store productivity. Seeing us have three-quarters of comp store growth, that's already going to lean into the concept of profitability. That's number one. Number two, I think you heard us talk about our wholesale. Sales results have been really quite powerful.
In North America alone, the total brand grew over 20% in North America last quarter. Big piece of that was our wholesale business. We occupy a very unique role in luxury with Jimmy Choo.
As many of our competitors have moved, footwear pricing to $1,000-$1,500, we have a lot of product, everything from sneakers that start for $550, to fun little jellies that we had at $495, to some of our opening price point evening at $895, et cetera, et cetera, where we can be a very important part of our wholesale partners globally assortments so that they can offer their customer an opportunity to have luxury, but not everything is at this very high price. Consumers have gotten choiceful.
I don't care whether you're at the luxury level or the accessible luxury level, there's no question that people are a bit more careful about what they're spending. Jimmy Choo is the beneficiary of that right now. I mentioned before, the accessories piece, as we build the accessories category from it's roughly 25% today, and we think we can get that to probably closer to 40% over time, accessories are just much more profitable than footwear. That's really a positive thing for Jimmy Choo. The last thing is the Jimmy Choo store fleet is pretty much fully renovated at this point. You know, we'll renovate, I don't know, 10 stores or 15 stores a year. There's not a heavy capital lift for us there.
Again, Jimmy Choo is in a very good position to get to this 10%-15% operating income and have a very steady positioning on that. As it relates to Michael Kors, we've been much higher than the 20% goal that we're talking about today. For us, we first and foremost went through our fleet optimization program, which is pretty much done at this point. I think we've closed 150+ stores, which were loss-making stores for us, a big drag on the company. That's behind us. As I mentioned earlier, you know, the SG&A for Capri is gonna be roughly flat on a year-on-year basis. By the way, that'll go up and down based on currency.
Sometimes we'll tell you it'll be up slightly, sometimes we'll tell you it'll be down, it just depends on where the dollar is on any given day. But again, we're in a similar position to Jimmy Choo. As we start to lever these stores, and we're clearly starting to see that in our full price channel, we're starting to see comp store increases. That's just gonna flow right through. That's the first thing, productivity. The second thing is, we are going to have gross margin expansion, and that'll start next quarter. Tariffs are obviously heavily impacted us, I think almost 300 basis points in Q3. We see that as a opportunity now to, let's hope, stabilize.
We did take price increases in the Q1 . Not anything huge, about 5%-6%, and we took those globally to help offset some of the tariffs. Secondly, we've got some mitigation efforts going on with our suppliers. But that will help expand gross margin for the company. As you keep these SG&A fixed, the gross margin expands, and we get modest growth on the top line. You can do the math. It's gonna have operating margin expansion for us. We feel relatively comfortable that we will get there. Again, the most important thing we're gonna do in this upcoming year is we're going to see profitability expansion for both brands.
we wanna make sure we keep this as a, our feet on the ground and not try to do something that won't be sustaining and long term in its, in its, in its execution.
Yeah. What kind of market do you think you're gonna be playing in over the next couple of years? Like, talk to us about the luxury handbag market as a whole and just sort of what the backdrop is as you try to achieve all these goals.
Well, the overall luxury accessories market is, you know, depends on who you speak to. You know, we think it will still be down again this coming year. That's again, the more expensive part of the luxury market is definitely suffering today. I think that's customers are choiceful. Secondly, there are aspirational customers who just can't get into that market. At this point, it's just too expensive for them. That's why you see our more accessible part of the luxury market really starting to get some traction. There are other players than the typical ones that you might talk about that are having great success. A brand I'll give you is Longchamp.
Longchamp is doing fantastic in the marketplace. You know, there's just more than us and certain other brands that are doing well. That just says the category bodes well, which means we can take market share and market share from the overall global luxury handbag business. Even though I think the luxury handbag market will be down slightly this year again, I think we can grow market share. I think we're actually have a tailwind in that our category is fitting more into where the consumer is today and kind of what they're looking for, there. I also think that, you know, we're gonna bode well with our footwear business in both Jimmy Choo and Michael Kors because of a very similar thing happening.
Got it. That's the market that you're, that you play in. How about the consumer in general? You know, the, quote-unquote, the consumer. What's your view of the health of the consumer? I don't wanna be blind to, you know, events in recent days and over the past week. Maybe tie into what's going on in the Middle East and, you know, your own exposure and any views on how that might impact your business.
Sure. I'll start with the Middle East first, and then I'll talk about the general consumer. We have about 50 stores in the Middle East. The majority of them have reopened. We don't know what this is going to mean in terms of our revenues there. They're all, not all of them, the majority of them are licensed. We do own, in a joint venture, a number of Jimmy Choo stores. We just don't know what it's gonna mean for obvious reasons. There will be an impact. I don't believe it will be material for the company. I think that's the first place to start.
For anyone who's listening to this, our, you know, our hearts and souls go out to those people who are being impacted in the region, as well as any of our, you know, troops and people who have lost their lives. Hopefully, you'll all say a prayer for people's safety. I think that if you would have asked me this question a week ago, I would have given you a different answer. Let me start with the consumer. The consumer that we see in North America is strong. They continue to be involved in fashion and shopping. I think if you have been into a shopping mall recently, shopping malls are back. They're especially with younger consumers.
They, they find it a phenomenal social experience. That's a really good thing for us. Not only is the e-commerce channel a great and vibrant channel, but the malls are back. They've been back for the last couple of years. We see that continuing. Again, it's very social inside of malls, and many of our partners are doing even better job with restaurants and activities and whatnot. We're very bullish on shopping malls in North America. We also think the customer, you know, is in a good place. What happens now, given, you know, with this rapid rise in oil prices, et cetera, we hope that this will, you know, be short-lived.
I don't think for the moment it's gonna have a significant impact on us. If things continue on, obviously, that could be something we'll have to examine very closely. The North American consumer is healthy. Interestingly enough, the consumer in Europe has been relatively healthy, at least for us. We've, again, had 3+ quarters of very strong growth in Europe. It's been our best performing region in the world. We, again, before this conversation of what's happened over the last week, would've said, you know, we remain optimistic there. Oddly enough, I think if a region was going to feel more impact than any of the ones, I would think Europe would, just from a psychological standpoint. Lastly, Asia.
There's no question Asia is rebounding, and we see it, and in particular China. The consumer is starting to shop again. I know that they have a lot of financial issues beyond retail and fashion, but we can definitely see the consumer is engaging. Again, this accessible category is very important, as he and she are coming back out to shop, they are probably even more choiceful than some of the North American consumers. We think we are setting ourselves up to be in a great place to really take advantage of that moving forward. State of the consumer would've been pretty healthy. What happens from here, we're just not sure.
Yeah. Certainly a lot of moving pieces on that, on that front. I guess, you know, along those same lines, moving pieces, tariffs. You know, obviously, we've seen some changes over the past several weeks.
Yeah.
Maybe talk about what that might mean for you, potential benefits.
Sure. The tariffs, as many of you know, changed a couple times. They are technically now about 15%. I think that's the global tariff coming in. You could say on the one hand that, well, they were 19%-ish average before, now they're 15%, shouldn't there be an advantage? We're not looking at that because we don't know what could happen, you know, in the next few months. Are there other areas where they could still get back to the additional tariffs? We're not planning that there's any pickup. Any guidance we give you about the business will include as if it was what we thought it was before. I think the impact is about $125 million for us next year, something like that.
That will stop being a headwind for us, in a sense, really towards the last quarter of this year, because remember, even though we were selling more full price product, which had a bigger impact on us for tariffs in Q3, we still have a lot of carry over product that still has to move through the system. Tariffs become I'd say a zero headwind in Q4 of next year. As I said before, we're taking price increases. We're having better full price sell-throughs with the reduction of sale activities, promotional activities. Our suppliers are working with us to help mitigate some of those costs. There will be a headwind, which we don't know what it is, but there's gonna be fuel surcharges. You'll be hearing people talk about that momentarily.
That's why I say whatever we picked up in the tariffs, I'm sure we're gonna give back in fuel surcharges.
Understood. We're getting close to time. You've had a new CFO, COO, maybe talk about, you know, who he is.
Yeah
... and what he brings to the table.
Yeah. Sure, sure. Tyler Redden is terrific individual. Had a long career at United Airlines. He's got tremendous operational experience, which I think is very important for us. Spent a long period of time at Hertz also, and some other companies in between. His last position was at The Body Shop. Spent a few years there, and really helped reorganize them and prepared them for sale, et cetera. I think he's gonna just be a terrific addition for our company. We're excited to have him join, and he'll join at the end of the month.
That's great. Thanks so much for your time. Appreciate you doing this.
Thank you very much.
Thanks, everybody, for tuning in.
Thanks. Bye.