Thank you for standing by. My name is Valerie, and I will be your conference operator today. Welcome to the Canadian Tire Corporation earnings call. All lines have been placed on mute to prevent any background noise. If you would like to ask a question, simply press star then 1 on your telephone keypad. To withdraw your question, press star then two. Now I will pass along to Karen Keyes, Head of Investor Relations for Canadian Tire Corporation. Karen. Thank you, Valerie, and good morning, everyone. Welcome to Canadian Tire Corporation's Q1 2023 results conference call. With me today are Greg Hicks, President and CEO, Gregory Craig, Executive Vice President and CFO, and TJ Flood, President of Canadian Tire Retail. Before we begin, I want to draw your attention to the earnings disclosure, which is available on the website. It includes cautionary language about forward-looking statements, risks, and uncertainties, which also apply to the additional material included this quarter to help you better understand the results discussion during today's conference call. After our remarks, the team will be happy to take your questions. We will try to get in as many questions as possible, but ask that you limit your time to one question plus a follow-up before cycling back into the queue. We welcome you to contact investor relations if we don't get through all the questions today. I'll now turn the call over to Greg. Greg. Thank you, Karen. Welcome, everyone. I'll start by saying that despite the challenging macro environment, we remain confident that our diligent focus on our Better Connected strategy positions us well for the short and long term. Similar to last quarter, this morning I'll discuss what we're seeing in terms of consumer demand. Before I do, I'll give you some color on our Q1 results. As is typical in the Q1, our financial services segment drove our Q1 results, offsetting a retail segment earnings decline that was driven by a number of factors, including the fire at our A.J. Billes distribution center. The weather in Q1 also did us no favors, especially in Ontario, where a warm winter was followed by a slow start to spring. This, along with a more challenging consumer demand environment, contributed to the decline in comparable sales at CTR. Increased expenses combined with the impact of dealers carrying higher inventory levels into Q1 resulted in a revenue and earnings decline compared to last year, which drove our normalized EPS to CAD 1. Mark's and Sport Chek had a successful quarter, both achieving growth and comparable sales compared to Q1 of last year. Mark's also secured its 11th consecutive quarter of growth, and we see opportunities to invest in sustaining that growth going forward. Across our business, we continue to manage OpEx well, even as we invest to ensure we have the right building blocks in place for the future. As we navigate a constantly evolving economic landscape, our Triangle Rewards and credit card data enable us to keep our finger on the pulse of customer trends. Our credit card data reveals that consumer spending has slowed, with spend per member remaining flat relative to Q1 of last year, marking the first slowdown since 2020. The observations we made among our Triangle Rewards members also reflects this downward trend in spending, with spending at our retail banners declining across all income groups. Furthermore, we noticed a shift in consumer behavior as customers moved away from best level products in certain categories, such as tires and household consumables, towards our better and good level products. The current high inflation rates have led customers to prioritize essential products over higher ticket discretionary ones, which as you would expect, has a more market impact on sales at Canadian Tire Retail than our other banners. In a quarter like this one, it is difficult to separate that from the impact of weather. Despite these challenges, we remain focused on delivering value to our customers. We continue to reorient our tactics while staying anchored in our Better Connected strategy to provide more paths to value. The first path is through our Triangle Rewards program. We often talk about the importance of converting shoppers into members, as that enables us to provide more value through Canadian Tire Money and offers for the products our members want and need. Our ability to communicate promotions directly to our members through email, our app, and relevant one-on-one offers continues to translate into sales and fuels the redemption flywheel and associated spend. When it comes to deepening engagement to drive sales, we now have another tool in our toolbox, Triangle Select, which we launched nationally in March. Following a successful beta test of Triangle Select in 2022, the team launched the program nationally, and as of April 30th, 22,000 members have signed up and collectively earned nearly CAD 2 million in incremental Canadian Tire Money through their Select memberships. Through our recently announced partnership with Suncor, we've expanded the reach of our Triangle Rewards program, providing even more value by giving members more opportunities to earn CTM in a high-frequency category. By expanding the distribution of Canadian Tire Money for more than 200 gas stations to a network of more than 1,800, we're driving more value for Canadians at the pumps while exploiting more value for our shareholders from an asset we own. The partnership is a win-win for our customers and our shareholders. The second critical path for delivering value to customers is our unique multi-category product assortment. In the quarter, 36% of our total retail sales came from our own brands, a portfolio we are continuing to grow as part of our Better Connected strategy. At CTR, we are strengthening our assortments, including in our MotoMaster brand with new product launches and expansions. We also recently introduced our Stratus bike brand in a category that is a key driver for our playing division. Our Party City and Petco shop-in-shops continue to drive sales for CTR, with sales up 38% and 18% respectively in the quarter. At Sport Chek, we are building momentum with our Forward With Design brand. We've expanded the styles and colors and introduced an elevated technical apparel line within the brand, as well as growing the work leisure range for men. National brands too remain an important part of our assortment, especially at Mark's. Among our top-selling national brands, Columbia, Silver, and Timberland PRO saw the highest growth among new-to-CTC customers. Our expanded national brand partnership with Columbia and Levi's in select stores continue to deliver exceptional growth, and we remain focused on finding new ways to deliver more value, including through the recent launch of a Levi's next gen shop-in-shop in Langley, British Columbia. We know it's not just about having the right products. It's also about showcasing them to our customers effectively and providing a seamless shopping experience, which leads me to the third piece of the larger value equation, our omni-channel experience. We're already seeing the impact of our new Concept Connect store investments at CTR. In our store projects to date, we are seeing an almost 700 basis point delta in top-line performance relative to a comparable peer group of stores, and feedback related to customer experience has improved significantly. We're also seeing increased basket sizes and traffic, higher growth of our own brands, and disproportionate growth among our key categories, including pet, automotive, and Party City, among others. Our one digital platform is now live across CTR, Party City and Atmosphere, with Sport Chek and Mark's to follow in Q2. We're also providing more convenience by adding new features to our mobile app, including the ability to book auto service appointments and enhance personalization and recommendation features. Our app continues to perform extremely well. In addition to maintaining a solid 4.7 out of 5 in the App Store, we've grown monthly active users by 15% year-over-year to 1.8 million. Finally, on last quarter's call, I mentioned we just launched an express same-day delivery pilot with DoorDash at 10 CTR stores in Ottawa. The initial results have been very strong. Average click-to-delivery time is just over two hours. The program has an NPS score of 80, and we're recovering 100% of the costs. Given the success of the pilot, we plan to expand to the Ottawa Valley in Q2 and have our sights set on taking this program national throughout the back half of the year. While we continue to adjust tactically to provide more value, we do so within the building blocks of our Better Connected strategy and guided by our brand purpose. In addition to making life better for our customers, we drove positive social change in Canada during Q1. For example, we launched our women's sport initiative, which involved a multimillion-dollar investment and the commitment to allocating 50% of our sponsorship dollars to women's professional sports. The response to this initiative was overwhelmingly positive, demonstrating the significant need and demand for this type of funding. Jumpstart had an outstanding quarter, helping more than 250,000 kids across the country, a new record for quarterly disbursements. We also mandated Safe Sport Training for all Jumpstart community grant recipients, resulting in over 5,000 coaches and youth activity leaders completing their Respect in Sport training in Q1. Along with proactively supporting our communities through programs like Jumpstart, we're there to help when disaster strikes. Our thoughts are with those affected by the devastating wildfires in Alberta. In addition to supporting our local stores in the impacted regions, we've made a donation to the Red Cross Alberta Fires Appeal. Many Canadian Tire, Mark's, and Sport Chek stores across our store network will also be accepting donations to the Red Cross at their registers. We continue to demonstrate we're a brand Canadians can trust to do the right thing, reinforcing the strong emotional connection our customers and communities have with us. Our team members, too, feel this emotional connection to our brand as demonstrated not only by their outcomes, but also their actions throughout the quarter. When the fire broke out at our A.J. Billes Distribution Centre on March 15th, our teams flawlessly managed through the high-stress situation, from protecting the health and safety of our team members through a seamless evacuation to managing the remediation efforts. In a matter of days, the team set up a temporary auto parts distribution center and diverted high volume SKUs to neighboring DCs to help flow product to our CTR stores. The fire certainly disrupted our operations and performance this quarter, which Gregory will speak to during his prepared remarks. Throughout the challenge, we once again witnessed our team's commitment, grit, and fortitude, and I want to thank them for their incredible efforts. I'm so grateful and proud that regardless of what we're up against, all our team members remain focused on making life in Canada better for all our stakeholders. With that, I'll pass it over to Gregory. Thanks, Greg. Good morning, everyone. As you heard from Greg, Q1 included some one-off events for CTC. I'll begin my prepared remarks today by providing some additional context on each of these before diving into our operational results. Q1 has historically been a financial services quarter, given it is the smallest retail quarter from an earnings perspective. This quarter was no different, with strength in our financial services business offsetting an expected decline in retail. You'll remember that on our last call, we outlined a few items we expected to materialize in Q1. First, we expected CTR dealer shipments to be lower than in 2022, as the dealers drew down on high levels of spring/summer inventory. Second, we anticipated elevated supply chain costs in support of higher levels of inventory, as well as increased investment in our Better Connected strategy. What we could not have expected, however, was the fire at our A.J. Billes distribution center. Our EPS of CAD 0.13 reflects the CAD 68 million of direct costs incurred in the last 2 weeks of the quarter relating to lost inventory, building damage, and cleanup of the DC as a result of the fire. Normalizing for the direct costs related to the fire, the majority of which we expect to recover through insurance in later quarters, EPS was CAD 1. In addition to the direct fire-related costs incurred, there were some other impacts. The fire forced us to close 1 of the 3 zones of the DC, slowing shipments out of the other zones and redirecting capacity to other DCs. These inefficiencies and shipment delays effectively cost us around CAD 20 million of IBT or approximately CAD 0.26 of EPS. The speed of which we're able to get the teams working together to address this unexpected event further proves the resilience of our model. While our real estate and operations teams still have much remediation work to do, not the least of which is getting a new roof on the building, we are ramping capacity back up every week, and our supply chain team has been working closely with the dealers to prioritize getting delayed shipments out. Another item that materialized in Q1 was our exit from our dedicated ocean charter contract. We have talked before about how instrumental our supply chain team is and how it is continually on the lookout for opportunities to improve the business and maximize returns. It was with this lens that we took the decision to exit this quarter the contract. Exiting the contract allows us to lock in more favorable ocean freight costs going forward and will ultimately be favorable contributor to gross margin. This did, however, result in a one-time cost of CAD 13.5 million in the quarter, the equivalent of around CAD 0.17 of EPS. Before I move on to the performance of the business segments, I want to highlight a change that impacts the quarterly phasing of the reported results. This stems from a change in accounting estimate being made prospectively from this quarter related to the company's margin sharing agreement with the dealers, or as we refer to it, the MSA. The most important thing to take away from this change, it has no impact on an annual basis, only on the quarter-by-quarter phasing with a favorable impact in the first three quarters, which reverses in the fourth. In Q1, this change had a favorable impact on EPS of $0.66 flowing from a $52 million impact on revenue and margin. As you know, we consider our dealer model to be a significant competitive advantage, and the company's contract with the dealers governs how billions of dollars of margins and expenses are shared between the two groups. Previously, one element of this, the MSA, was primarily recorded in Q4. We are now recognizing the revenue and margin associated with this element quarterly. The change results in less variability in the retail gross margin rate going forward and should make forecasting margin somewhat easier. Notwithstanding this, it's important to remember that there will always be business drivers, including sales growth, banner mix, or product margin that could result in some variability. Given the context of the complexity of the quarter, I'll move on to the performance of the retail business. Retail sales were down 2.8% to CAD 3.3 billion. Petroleum contributed to the decline, down 3.9% on slowing volume growth and lower prices. Retail comparable sales, which exclude petroleum, were down 2.5% overall. All banners were comping off strong growth in Q1 last year. Mark's and Sport Chek had a particularly strong quarter in a more challenging consumer demand environment. Although outerwear and hard goods sales were lower in some provinces due to weather, Mark's and Sport Chek increased promotional intensity, and that contributed to stronger sales. At Canadian Tire Retail, we saw strength in our non-winter related categories, but comparable sales were down 4.8%, mainly due to the impact of unseasonal weather in the form of a warm January and a cold March, which affected both our winter and spring seasonal categories, especially in Ontario. Weather-related factors were responsible for the vast majority of the sales decline, impacting our playing, fixing, seasonal, and gardening divisions with sales items like toboggans, heaters, humidifiers, and snow blowers down in the quarter. Outside of the winter-related categories, the business performed well, led by our two largest divisions, automotive and living. Automotive posted its 11th consecutive quarter of growth, with auto maintenance and auto parts offsetting some softness in replacement battery sales given the warmer weather. In living, our expanded Petco offering with new Petco shop-in-shop boutiques now at 385 Canadian Tire locations drove a 20% increase in pet care sales. Home essentials were also up. As I highlighted earlier, Revenue at CTR was down to the lower shipments as dealers worked to normalize spring-summer inventory, which resulted in the revenue decline outpacing the sales decline this quarter. On a rolling 12-month basis, sales and revenue growth have now converged, as they normally do over time given our dealer model. At Sport Chek, Q1 comparable sales were up close to 4% against a strong winter season last year. Regionally, growth came out of Alberta and Quebec, but Ontario weather was tough for outerwear sales across all brands. The business compensated with growth in athletic, casual, and fan wear sales and leveraged promo to ensure they kept inventory fresh. At Mark's, comparable sales were up almost 5% in Q1, making this the 11th consecutive quarter of growth. Sales of men's and ladies' casual wear were up, with jeans, men's sweaters, and ladies' knits being the key drivers. We continue to aim for a healthy mix of national and own brand sales at Mark's and are very happy with how we are delivering on this strategy and how it's continuing to attract new customers to Mark's. Last week, we were delighted to announce we secured 10 Bed Bath & Beyond locations. Six of these will replace existing Mark's stores in Alberta, BC, and Ontario and build on the strong growth we've been seeing out of Mark's. These relocations will expand our footprint and allow us to showcase a broader assortment range. The remaining four locations in Ontario, we will be opening up new Pro Hockey Life stores, again, building on the strong growth we've been seeing in that banner. Turning now to Helly Hansen, where revenue was almost up 23% in Q1, with another quarter of growth across most channels and regions. Sportswear sell-through of spring-summer was particularly strong in our wholesale channels. E-commerce overall was up 20% and another solid quarter of performance from our US business contributes to this growth. Finally, before I move on to the results from our financial services segment, I'll give you some color on our retail gross margin. Our Q1 reported retail gross margin rate, excluding petroleum, was 35.2%, which includes the benefit from the MSA. Excluding this benefit, retail gross margin rate was down 17 basis points. Despite product cost increases compared to last year, CTR was able to maintain its margin rate. The higher promotional intensity at Sport Chek and Mark's in Q1 did present headwinds, but we were able to offset much of them thanks to strong contribution from Helly Hansen and a generally favorable sales mix among the banners. Looking forward, our product cost comps will become easier, and we feel good about our negotiated freight contracts. Margin may vary somewhat quarter to quarter, but as we have said before, we remain focused on retaining the gross margin expansion we achieved during the pandemic over the long term, while at the same time striking the right balance between demand creation and being price competitive to drive value for our customers. I'll now move on to how financial services performed in Q1. IBT was almost CAD 119 million, down slightly from the all-time high Q1 earnings results over the past two years. Revenue was up over last year, while gross margin was down, and the business did a good job managing OpEx. Despite slowing credit card acquisition and card spend compared to last year, cardholder engagement remained strong. Gross average accounts receivable was up 10.4%, active accounts were up by 4.4%, and average balances were up by 5.8%. Card sales were up 6%, broadly in line with Q4, but down considerably from the 26% growth in card sales we saw last year. Receivables ended the quarter at CAD 6.9 billion, and the ECL allowance was stable at around CAD 897 million. With no increase in allowance in the quarter, but a small seasonal decline in ending receivables, the allowance rate finished the quarter at 13%, slightly above Q4's 12.6%, but still within our targeted range of 11.5%-13.5%. Risk metrics are trending as we expected, with PD2+ rates back to historic levels at 3.1%. Our write-off rate was 5.3%, as it continues to return to more historic levels as the increased investment in new accounts, a key strategic initiative that we outlined at our Investor Day, works its way through the portfolio and mature account performance stabilizes. In the context of ongoing economic uncertainty, we continue to watch the macroeconomic indicators and are ready to play our playbook to manage risk as needed. Employment, a key indicator, remains robust and our portfolio remains healthy and continues to perform well. Moving on to operating expense. You may have noticed that we are now reporting SG&A excluding D&A to help illustrate the trends in both lines more clearly. Consolidated Q1 SG&A grew just under 10%, driven by an increase in retail SG&A. Depreciation was up 14%, reflecting our increased level of investments in recent quarters. Operational discipline remains a key focus for us. We continue to find efficiencies in the business, but as has been the case in the past few quarters, SG&A is running at higher levels than previously. Consistent with the second half of 2022, investments associated with our Better Connected strategy drove higher IT costs. In addition, our transition to a cloud-based infrastructure means we are expensing more of our IT spend than we've done historically. We remain in the earlier stages of this transition. As was the case last quarter, we also had higher Sales-related labor costs to support growth at Mark's and Sport Chek and higher volume-related costs, mainly related to supply chain with our continued need for 3PL capacity. Increase in supply chain costs was mainly driven by inventory growth, which started to reverse from where we ended the year. Inventory was up 22% compared to last year versus 30% at the end of Q4. Similar to last quarter, unit cost inflation remained an important contributor to the increase in corporate inventory. To support growth of the direct consumer business, the inventory was up at Helly Hansen. We also continued to have higher levels of corporate inventory at CTR, but growth rates have been coming down as we've adjusted our buys for spring/summer categories. We expect to make further progress on reducing inventory levels as we head into the spring/summer season. On the dealer side, inventory levels are now only slightly above last year. Winter categories ended pretty clean, and we will be adjusting our Christmas buys to reflect the fact that dealers end with slightly higher Christmas inventory. Finally, the growth in OpEx, our new GTA DC, which supports Sport Chek and Mark's, also drove higher costs as it ramped up and became operational in Q1. I'll end my prepared remarks today by giving you some insight as to what we are expecting for Q2. The operating environment remains uncertain, and we will continue to have fire-related headwinds in the Q2. With the fire remediation at our A.J. Billes distribution center still underway, we expect to incur additional costs in Q2. We will be continuing to work with our insurer on our claim over the coming months, we'll update you on expected recoveries in our Q2 call. We also continue to see the impact of delayed shipments until at least the end of June. We expect this will be a headwind to Q2 revenue and currently estimate that the impact could be between CAD 150 million and CAD 200 million, which we expect to recover within the year. In terms of sales performance, early results coming out of the month of April were strong, with CTR comp sales just over 3%, recognizing, though, we still have almost two months left in the quarter. As we move to the second half of the year, we'll be cycling easier sales comps in our retail business and benefiting from fewer costs and freight headwinds. We continue to believe we are better positioned than we've ever been before to operate with agility and manage our business tightly and, as Greg discussed, deliver value to our customers. We remain convinced that our strategic direction is the right one to deliver strong returns to our shareholders over the longer term as we build an even better business. With that, I'll hand it over to Greg for his closing remarks. Thanks, Gregory. There is no question we're in a more challenging consumer environment. Canadians are mindful of how and where they spend as they renew their mortgages and take advantage of their ability to travel, cross-border shop, dine in restaurants, and attend sporting events. As we move from a tough winter into a more seasonable spring and continue ramping up product flow through our distribution centers, the spring/summer sell-through we are seeing demonstrates the strength of our multi-category assortment to meet the wants and needs of Canadians and the power of the Triangle to deliver the value they are looking for. With that, I'll pass it over to the operator for questions. Thank you. At this time, I would like to remind everyone in order to ask a question, please press star then the 1 on your telephone keypad. You can withdraw your question by pressing star then the 2. We ask that you limit yourself to 1 question plus 1 follow-up question before cycling back into the queue. We'll pause for just a moment to compile the Q&A roster. Our first question is from Irene Nattel with RBC Capital Markets. Please go ahead. Thanks, and good morning, everyone. Just listening to the commentary and thinking through how the rest of the year is going to evolve. We've got consumer demand in which people are trading down from Best to Better. We've got inventory that you need to work through. We've got higher cloud-based costs. Of course, the fire impact. As you think through all these various puts and takes, when do you think we'll be in a position where we actually start to see year-over-year comparisons at the earnings line start to trend positively? Right. Irene, it's Greg. Lots in that question. You know, it's As Gregory talked about in his prepared remarks, there was a bunch of one-time things that went against us this year. The fire being the biggest one that obviously we couldn't have forecasted. We're just As Gregory said, we're just not at a point in the investigation right now, given the safety of the environment to have a true handle on impact. I think we suggested our best forecast right now from a revenue standpoint in terms of how it will hit us. Not only will it continue throughout the remainder of Q2, but we indicated the range. We expect, you know, to get that back. You know, what would need to happen for us not to get it back? We'd have to have a lot of cancellations from our dealers, which would be a result of, you know, very peculiar and different, you know, weather environment for seasonal items. At this point, as we suggested, our best guess is that best forecast is that we will get it back, the revenue. The cost, as we talked about, that impact us pretty significantly in All of that back. It's just a timing difference with respect to insurance claims. It's really tough to look at, you know, Q1 from a, from an earnings standpoint, given these one-time variables and try to put it into a more normalized state for the balance of the year. We tried to do our best to unpack what was happening at the top line for you. I think we're seeing and we're feeling really good about how the strategy is standing up in front of the customer with almost an 800 basis point swing to the positive in CTR from a comp store sales standpoint. And we're ready for any demand environment that comes our way. It's tough to get the crystal ball out with some of these one-time things impacting us, most notably the fire. That's very helpful. Thank you. Then just, thinking through the commentary around April, I guess the first couple of weeks of May, we have seen the weather turn. As you look at the sell-through at retail, what are you seeing in consumer behavior in response to favorable weather? I mean both in terms of aggregate demand, but also in terms of the tiers. Hey, Irene, it's TJ. Yeah, as we, as we look forward into Q2 here, to your point where we've seen some favorable weather, we've seen the business much more buoyant. As Gregory pointed out, we're up 3% at the end of April, and we like the trajectory of our business where the spring weather has arrived. Provinces like Alberta and the Prairies have really been firing. It's too early. Q1 was such a complex quarter to unpack with all of the weather impacts. We do see some consumer softening signals as well. I think once we get through Q2, we'll be in much better shape to kind of really understand the consumer landscape. I'd say it's a little bit early to prognosticate where we think Q3 and Q4 is gonna land, but we really like the trajectory in Q2 at this point. And when the weather has hit, we like the buoyancy we're seeing. Thanks, TJ. Thank you. Our next question is from Tamy Chen with BMO Capital Markets. Please go ahead. Thanks. Good morning. First, I wanted to ask about the consumer behavior with respect to this trade down. You mentioned reorienting tactics to provide more paths of value. One thing I wanted to ask was, we noticed in one of your more recent flyers, I think some point in March, you started a new format highlighting essentials at dollar price points or just relatively lower price points. I don't think we've seen you do that before, and I think you followed up afterwards with a subsequent one like this in the following weeks. Can you just talk a bit about this strategy? What prompted you to take this approach? Was it successful? Do you anticipate continuing to do that? Yeah. Hi, it's TJ. Maybe I'll take that one. As Greg articulated a little bit earlier, there are a lot of moving parts on the consumer front in Q1 with weather impacts and some of the softening consumer signals. Maybe if I take a step up or a step back here. On the promotional front at CTR, we didn't see a material change in behavior with our discounted mix of sales. It was up a little bit, and our discount rate was up slightly versus year ago, but both way below 2019 levels. As you would expect, and you kinda noticed it here, promotional decisions are made at the category level, and we know where to invest and where not to. If it's warm and dry in January, you won't inspire a lot of demand by discounting a car battery or a snow shovel. Similarly, if there's a foot of snow on the ground in March, you're not gonna inspire much demand on grass seed. Categories like essentials, cleaning products and things like that's where we tend to invest. That tactic you just saw in the flyer is something we've done over the years. Probably in the last couple of years, you haven't seen it as much just given some of the supply challenges we've had. We're gonna continue to kind of lean into our capabilities here, where we've got very strong promotional capabilities in terms of understanding elasticity curves. We do expect the promotional activity to get a little bit more intense as we go forward here, particularly in discretionary categories. We're gonna be watching that really closely. You can expect us with our capabilities around our Triangle ecosystem and our membership base, we add a ton of value there. The assortment range that we have at Good, Better, Best in almost every category in our ongoing flyer program is how we're gonna continue to drive value as we go forward here. Okay, thanks. Now switching gears a bit to the financial services segment. We noticed from the securitized pool, Glacier, that it was disclosed for the month of March, we noticed that the net write-off rate was up 50 basis points, which seems a bit high on a month-over-month basis. I know the actual write-off rate percentage is still, I think still a bit below your historical rate anyways. I'm just curious, just the magnitude of this month-over-month increase. Is this unusual, and does it concern you? Thank you. Yeah, that I know the external community looks. It's Gregory here, by the way. Thanks for the question. I know the team looks at that as a data source, and I think it is a way to get a bit of an interim look. I tend not to look at those drivers on a monthly basis because they're so thanks to your point, they're volatile. It is also a segment of our overall portfolio. I you know. To me, I think the right way to look at our write-off rate is what we produce kind of in the overall MD&A, which includes all of the receivables, not just Glacier, ones that are sold to Glacier. You're right to say write-off rates are increased, but the reality is we knew this was coming. The rolling 12 write-off rate right now is at 5.3%. It's up around 120 basis points versus Q1 a year ago. You know, we've said this was all part of our strategy to frankly, you know, grow the account base. You know, back to our Investor Day, we had probably two years of soft new account growth prior to that. Aayaz and the team have done a great job building out digital capability, and the ability just to kind of grow that customer file again. Frankly, we're probably tapping the brakes on Aayaz and team. They probably want to grow faster than we're frankly letting them right now. This write-off rate performance is right where I would have expected to be. I'll just say it's eventually going to climb back to its historic level. You know, we normally have a loss rate in our book between 6 and 6.5%, and I think it's just a matter of time before our overall rolling 12 write-off rate gets there. That is the right way to look at this. I mean, you can use the monthly as a somewhat as of a barometer, but I'd be a bit careful, is how I would answer your question. Okay. Thank you. Thank you. Our next question is from Luke Hannan with Canaccord Genuity. Please go ahead. Thanks. Good morning, everyone. Maybe sticking with CTFS for a second here. Gregory, you talked in your prepared remarks about being ready to deploy your playbook when it comes to managing risk in this kind of environment. Have you had to take any actions yet when it comes to maybe limiting credit increases for certain customers or pulling back on granting credit increases in certain jurisdictions? Have you had to, let's say, pull any tools out of that toolbox just yet? Yeah. Thanks, Luke. It is Gregory here. I think what I would say is a couple things. One, we've certainly taken our foot off the accelerator in terms of new account growth. I think that is one. I'll get to your playbook question in a second, but just given some of the uncertainty, I know we have taken our foot off the accelerator a little bit and are more careful around kind of new account acquisition. I would say that's probably taken effect around the edges. I don't think the team's made a wholesale strategy change and said, "No credit limit increases," or, "Let's look at credit limit decreases on a broad scale." I think just, sure, I think it'd be safe to say there's tightening going on around the edges around scores for new accounts being slightly higher and you know, limits being granted probably a little bit lower. Luke, nothing on scale yet is what I would say. You know, not necessarily geographically focused, i.e., let's look at one jurisdiction or one province and take a specific action there. Now they have the ability to do that if the team gets uncertain, but, you know, I wouldn't say they've enacted something that specific yet, just a more general tightening is what I would say. Okay, thanks. For my follow-up here, just on the competitive landscape, we've seen some headlines that some of your, we'll call them indirect competitors, have left Canada or at least scaled back their operations materially. I'm curious to know the white space that's been left behind, have you been able to take share from those larger competitors, or are you noticing small chains or independents stepping up to fill that void? Just curious on your thought if there's been any noticeable shifts as a result of those larger players leaving. Yes. Greg, Luke. Again, I think it's difficult in Q1. I like TJ's commentary with respect to, you know, it's a very difficult quarter to incent demand for the categories in which we compete. You know, discounting a car battery at 50% off is probably not gonna get anybody off their couch. Really looking at share from the context of Q1 in terms of any shifts is difficult. What we can say is we feel really good about our positioning, Luke. I mean, we're really happy, as we said in our commentary, with being able to pick up the Bed Bath & Beyond, you know, leases. We talked about what we're doing with the space. It's about 250,000 sq ft of retail space. About 150,000 of that is incremental. We're very confident in our ability to drive, you know, equal to or better productivity on the top line with the incremental square footage. I would call it a nice kind of tuck-in piece of work. You know, we were active on more, but we felt like the price being paid was getting steep, so we feel good about where we landed. You know, we're continuing to be active on a couple of additional lease negotiations beyond the 10, so we'll see where we land. What I would say to your question is we just continue to be here with our strong retail portfolio while many struggle in this country, which leads to opportunities like Bed Bath & Beyond or share consolidation opportunities, to your point. Know that we're gonna be active in these situations. You know, we've worked really hard to earn the trust of Canadians and develop the capabilities to win in this market. We're gonna continue to play our game and be opportunistic when situations like the Bed Bath & Beyond situation present themselves. That kind of situation definitely fits that opportunistic approach. Okay. Thank you. Thank you. Our next question is from Vishal Shreedhar with National Bank Financial. Please go ahead. Hi. I was wondering if you could give us some more perspective on your partnership with Suncor. The benefits of frequency and more potential members using Triangle. You know, I think that's clear, but, you know, should we expect benefit on profitability from better supply contract, and if so, when should we see that start dropping in the P&L? Sure, Vishal, it's Greg. let me take that, and I'll start with the broader, just the context, I guess, for the agreement. I think I'd start with the strategy that we outlined at Investor Day. You know, ultimately, we said that we continue to focus on finding ways to add appeal and relevance to our existing network of retail banners participating in Triangle Rewards. You know, we've talked in previous calls, you and I have talked about, you know, being focused on ensuring that our assets are connected first, and then think about where the Rewards program could go after that. So we feel like the assets are connected into the program properly. You know, feeling good about the proposition for the customer. Maybe even more importantly, we've been working so diligently on the customer data infrastructure, and the, you know, the marketing communications tech stack that kind of lives behind the curtains, to be advantaged on an ongoing basis in personalization capabilities. You know, we joke internally that the sophistication of our I.T. context diagram for our marketing function is you just would never guess it's marketing. You know, we need to make sure that we can add ongoing value, and that's what those back office capabilities are about in terms of sustained personalization capability. We feel like now is the time, and that we're in a good place for exploring partnering, and the role that it could play in that ultimate objective that I, you know, that I talked about, that we outlined at Investor Day. I think for this particular relationship, you know, we're very excited about adding a partner in a high-frequency category. We really think it's gonna help relevance for Triangle members. It gives us national coverage in a category that's really important. The timing obviously is really good given the economic environment. That'd be the first part of your question, kind of highest order strategic rationale. As it relates to value, I guess value streams from the Suncor relationship, there's really, you know, the three streams. There's the expanded coverage, which I just alluded to. Coverage goes from roughly low 50s in terms of having a gas station issuing Canadian Tire Money within a 5-kilometer radius of a Canadian Tire store, 50% penetration to mid-80s. So we think there's a lot more Canadian Tire Money that's gonna be issued in the marketplace that will feed our retail flywheel. That's the primary value driver. The secondary value driver is in the fuel supply contract with, you know, with Suncor. Again, you know, in the grand scheme of things, the profitability of the petroleum business, you know, isn't material to our overall, you know, pre-tax income delivery at the consolidated level. But there is definitely a nice stream of benefit there relative to the way we've operated in the past. The third is just the rebranding, as we, as we move forward with an industry leader. We really like this deal, Vishal. It's, it's great for the customer. And we, you know, most importantly, it kicks back significant value to our core retail business on an ongoing basis. Okay. Thank you for that. I just wanted to switch gears here to Helly Hansen. You talked about some good growth in the U.S. Obviously, in the past you've talked about expanding or contemplating taking your brands, many of them which are very strong and exploring opportunities to sell those more broadly internationally. I'm wondering if this is something we should look at and consider as you reflect upon the opportunities associated with your other brands and how near term of an opportunity is this for a growth driver for Tire? It's a jump ball. Greg, you wanna start, or do you want me to start? Let me start with just Helly. glad you called it a really strong quarter, strong revenue, good margin expansion relative to last year. The core sport wholesale business really drove away. I think it was a 40% plus growth rate over last year. with strong growth in e-commerce, domestically, the brand in Canada, double digits, which as you've heard us talk about is, you know, a big area of focus and lots of traction on the D2C channel, specifically in the U.S. As it relates to, you know, the own brand portfolio beyond, the kind of the walls of Canada, so to speak, or the confines of Canada, it's still, you know, very modest, you know, sales and income delivery from any activity, beyond Helly Hansen. We've got a little bit of activity with Woods. We're really pleased with some of our work efforts around the Sherwood brand, as an example, which has a global, a small but growing global presence. You know, I wouldn't as we kind of outlined the big drivers of value delivery in our Investor Day, extending own brands, internationally, isn't one of our key focus areas on a go-forward basis in the short to medium term. Thank you. Thank you. Our next question is from Chris Lee with Desjardins. Please go ahead. Hi. Good morning, everyone. Sorry if I missed it earlier. Gregory, just a couple of maybe modeling type questions. You mentioned, I think in the beginning that for Q2, the revenue impact from some of the shipments because of DC fires, about CAD 150 million-CAD 200 million. I was wondering if you can share with us what would that be in terms of earnings before tax impact. I think the impact was around CAD 20 million in Q1. Do you have a number to share for Q2? It's Gregory here, Chris. Gives me a chance to make a overall comment on this. We talked a lot about, you know, do we feel the need to kind of add this disclosure in as we went through the quarter? To be honest, we still have a hole in the roof. You know, it's difficult really to know when this remediation is going to be complete. What we tried to do is estimate our best view in terms of where the world is right now. As Greg said earlier, we think we're gonna pick all this back up again. We need to, you know, we need to get through the remediation efforts. We need to get through the next few months, and the team is going full out on this, to Greg's comments earlier. Really pleased with the progress that they've been able to achieve. It's been phenomenal. What we wanted to do is highlight a range of where we thought kind of revenue would be impacted. I mean, simplistically, you know, to me, if you want to use something, you could just use kind of an average margin rate for the retail segment if you'd like. You know, it's probably a bit. I would use that directionally as to what you're gonna do at this point. I think the bigger question we're gonna have is we're gonna need to update that as we get into the Q2 once we actually find out what the remediation efforts were. I think that's a bigger update than anything else, Chris. For all of us, to be frank, this is gonna be an estimate at this time that might have some variability still in it, kind of one way or the other. Like maybe the team gets this done faster. We wanted to give you the best estimate we have as we're sitting here right now, and that's what we've tried to do. That's helpful. My other question is just on the SG&A expenses at the retail level, and in particular, the investment that you're making on the IT-based, the cloud-based investment. I know you don't disclose what the number is, but let's just say for argument's sake, you know, this year you're investing $100 million, you know, of IT-based investments that are going through your P&L statement this year. Is the way to think about next year is that those $100 million will not gonna reoccur, so you do actually get a bit of a step down because these are obviously more one time in nature? Are they actually recurring, that the run rate is gonna be this level going forward? Let's try to take. First of all, I'm not. I mean, I'm gonna say nice try first. I'm not gonna give you. I will give you a little more color on what I think you're poking at. Let's say for a second that our IT spend doesn't change in a full 12-month period, just as an example. What I'm trying to highlight in my comments is right now, we've not, we're not at the mature mix of kind of cloud-based versus non-cloud-based. I think we're still a few, maybe two, three quarters until we're there. Frankly, that's another thing I think we'll have to keep, you know, updating on as we move forward, because. Let's assume for simplicity that it will be the case. I think once we're at kind of that mature level of investment of what percentage cloud-based is, a year after that, assuming spend was flat, then I'd say you should expect the same type of expense in any given quarter. There's two things right now. We are seeing increases in spend for IT, that is true, which I think will start to level off from the increase perspective, but more of that spend will be attracted to the P&L or will reach the P&L because it will be cloud-based as we're growing the percentage from where we are right now towards more cloud-based spend. Does that make sense, Chris? Yep. Yeah, I think so. Yep. Okay. Thanks very much. Thank you. Our next question is from George Doumet with Scotiabank. Please go ahead. Yeah. Good morning, guys. I just wanted to double-click on that April 3% comp. Can you maybe talk, was that all strength related to weather or were there other categories in there? Generally speaking, can you talk a little bit about promo levels by, maybe by category and kind of where you see those promotion levels heading to, kind of as we go through the year? Yeah, George, it's TJ. Just a little bit more color. As we said, through April, we're up 3%, and particularly where we see the weather has broken in areas like Alberta and in the Prairies, we've had particular strength and particular strength in our spring, summer businesses. I mean, good weather obviously helps us on numerous fronts on the business itself, but also traffic into our stores. We're seeing good buoyancy as I described earlier in April. We do expect promotional intensity likely to heat up, particularly in the discretionary categories. If you look at the competitive landscape, and we articulated it coming into Q1 that we were heavy on the spring, summer side of inventory. I think that's something that's prevalent in the industry, not just in spring, summer, but just inventory levels in general on the discretionary side. I think we are going to expect some promotional activity to heat up here. When you look at it in the context of our business, we feel very good about our ability to not only manage our margins, but inspire consumer demand with all of the tools that we have in our arsenal, whether it be from Triangle or our discounting program through our flyer, and all of our analytical models there. That's a little bit of a view going forward. Once we get through Q2, we'll probably have a better, ability to tease out, kinda weather versus consumer sentiment at this point. Okay, thanks. Just for my follow-up on inventories, can you talk a little quickly about, I guess, the level of comfort, quality and inventory in general? Excluding the unit cost inflation in there, can you maybe talk about kind of the cadence of normalization that you would expect to go through maybe over the next couple of quarters? Yeah, George, it's TJ again. Maybe I'll take this one again. There's a lot of components when it comes to looking at our inventory picture at CTR. Let me just give you a snapshot of where we are today, and then I can walk you through what we think that means going forward. On the corporate side, we continue to make strides in managing our inventory as our rate of growth is down versus the rate of growth last quarter. You would have seen in the MD&A where we're at. We've come down in terms of rate of growth on the corporate side. While it's up, you mentioned inflation, we do have growth. 40% of that on the corporate side of things can be attributed to inflation. We're heading in the right direction in terms of the rate of growth, and we're gonna be continuing to manage our inventory very surgically. On the dealer side, as Gregory mentioned, they're only up slightly year-over-year in inventory, and that's entirely attributable to inflation. They're in much cleaner shape. When we look ahead here, as Gregory mentioned, you've got a couple components as you look into the back half of the year. Dealers did finish with a little bit higher inventory level in Christmas decor. The winter seasonal stuff, although it's a little bit elevated, nothing for major concern, but it's very important to understand that as you look to the back half of the year, two-thirds of our inventory comes from non-seasonal product. Two-thirds of our shipments, I should say, to dealers, comes from non-seasonal products. It's a bit too early to tell what that looks like. As we get through Q2, we'll be in better shape to kind of understand or be able to prognosticate what the POS to revenue kinda ratio will look like. We're feeling good about our inventory right now and we're making progress to balance that kind of bringing our inventory down, but also being there where we see the consumer demand. Great. Thanks for your answers. Thank you. Our next question is from Mark Petrie with CIBC. Please go ahead. Yeah, good morning. Thanks. Just to follow up on the topic actually, TJ, on the dealer inventory. They're still higher on sort of spring, summer, seasonal, also on Christmas decor a little bit, and then there's inflation. Is it fair to say that their core inventory or inventory on core goods is lower? And what do you attribute that to? Yeah, Thanks, Mark. It's TJ again here. I think that's probably well said. I think the big difference now as we go forward with the dealers is I think you're going to find that they're gonna draw inventory much closer to when the POS comes. What we had seen during the pandemic is just given scarcity of supply, they really pulled forward their inventory buys, which created a much different revenue profile for us. They've adjusted that going into this year because they feel much better. I mean, fire notwithstanding, they feel much better about our ability to fulfill the demand that they have. I think you're gonna see a bit of a convergence on revenue to POS for the rest of the year. Overall, with the base business, to your point, they're a lot cleaner. When I say base business, thinking about things outside of spring, summer, and the winter seasonal stuff, they're much cleaner and most of their inventory growth right now is inflationary based. We'll get through Q2 and be able to provide a little bit better color on what the back half of the year looks like from that perspective. Okay. Okay, great. That's helpful. Then I guess probably for Gregory, can you just elaborate on what would drive the MSA accrual to be higher than the historical average in any given period? I mean, I know it's not really overly material to Q1, but I just wanna make sure that we sort of understand the drivers of what actually would drive that accrual in each period. Thanks. Yeah. As I said, kind of I think in the remarks, Mark, and thanks. It is Gregory, by the way. You know, there's an overall dealer contract that governs how we share kind of all of our billions of CAD of cost and of margin, and this is kinda one of the elements. It contains, as I said, elements of cost, elements of margin. Really all this does is just as those elements might change from year to year, quarter to quarter, it would reflect kind of change in from that perspective. What you've given me the window, so I'm gonna take it, the reality is this does not have an impact for the full year. I just wanna keep reiterating that to make sure that everybody understands. Old accounting, new accounting, you know, whatever we're going to recognize for a full 12 months is still the same amount we're going to recognize. Karen and team, the IR team, will be available to help 'cause I know this is new and, you know, we've added some disclosure, enhanced disclosure on the website as well to kinda help you guys work through this. We're available after the call to keep building that through. That's how I would answer. This is just one of the elements that governs like, you know, there's a number of agreements that we have under the master dealer contract. This is one of the pieces of it. Okay. I'll take it offline, please. Thanks. Thanks. All the best. Thank you. There are no further questions registered at this time. I would like to turn the meeting back over to Greg. Thanks, Valerie. Thank you for your questions and for joining us this morning. We look forward to sharing more at our annual meeting of shareholders at 10:00 A.M. today. Bye for now. Thank you. This will conclude today's earnings call. You may now disconnect.