I would like to welcome everyone to Sleep Country's Q2 2023 Results Conference Call. Yesterday, Sleep Country released its financial results for the second quarter of 2023. A copy of the earnings disclosure is available on their investor relations website and includes cautionary language about forward-looking statements, risks, and uncertainties, which also applies to the discussion during today's conference call. I would now like to turn the call over to Stewart Schaefer, President and CEO. Please go ahead, sir. Thank you, good morning, everyone. Thank you for joining us today. With me is Craig De Pratto, our CFO. I'm pleased to discuss one of the strongest second quarters in our company's history, second in revenue, only to the same period last year, which was up over 18%. These results were delivered against challenges in a less favorable macro environment than we expected, the impact of which was partially mitigated by the company's proactive strategic initiatives around cost controls, direct sourcing, and targeted advertising for more profitable segments of our business. As Canadians adapt to an environment of higher interest rates and inflation, we continue to see a slowdown in consumer spending on large discretionary goods that began in the second half of 2022. We still feel that the consumer spending is cautious but healthy, albeit our mid-to-lower end of the business is softer, down high- single- digits, but holding up better than the industry, which has reported to be down 20%-25% in units. With still near record low unemployment, we believe that there was no material change in the competitive landscape and held our share of market and remained focused on executing on our strategic initiatives as our customers temporarily shift their spend away from large ticket purchases in favor of travel and leisure, while also navigating higher food, rent, and mortgage payments. Our digital platforms continue to experience softness as customers come back into our retail stores post-pandemic. The shift we have experienced between our digital platforms and our brick-and-mortar over the last few years only reaffirms our long-term strategic plans to build a seamless omni-channel experience and allow our customers to shop how they want, when they want, and where they want. As for some positive growth highlights for the quarter, first off, during the quarter, a big focus was on our two recent acquisitions, Silk & Snow and Casper Canada. I'm very happy to report that our plans are well underway to enhance and grow the value of these two powerful brands. We couldn't be happier with the team at Silk & Snow and the results they are delivering and are excited to see a strong alliance that is being formed between the teams at Endy, Silk & Snow, Hush, and Casper Canada as they organically share best practices to drive our businesses. Second, this quarter, we signed off on the final plans to open up our very first Endy and Silk & Snow retail locations. With these two new store openings planned for Q4, we are excited to bring these digital brands into a tactile environment. Third, at Casper Canada, all of our teams have been working closely together to execute on our four-stage plan to relaunch Casper Canada and enhance this valuable asset for years to come. As we said last quarter, Casper will be a 2024 story as we put our plans into place for the remainder of this year. That being said, I'm pleased to report the progress of our plan, which was to discontinue the 2022 lineup in our 289 Sleep Country and Dormez-vous stores and reintroduce a Canadian-inspired collection with lower prices and expanded margins, which is well underway. Number two, replatforming both the site and our POS systems to be independent of Casper USA and over to a new platform controlled and managed by our teams, in progress and to be completed in Q3. Number three, realign our marketing and ad campaigns to our targeted strategic approach that we have successfully implemented with our Canadian digital brands. In progress also, we will flick that switch when our new platform launches. Number four, We continue to double down on our investment in the Casper people, who are hard at work every day, and share with them the enhanced magic that all our teams will bring to their skill set in both their digital and brick-and-mortar business. We are well underway and are happy with the progress we are seeing. Once we secure the foundation of this powerful brand, we look forward to methodically and thoughtfully rolling out an expanded footprint of this business across the country. Looking ahead to the second half of the year, we will also be redefining the definition of luxurious sleep with the introduction of our newest concept, a high-end luxury category of sleep called The Rest, opening in November in Yorkdale Shopping Centre. The Rest will redefine luxury sleep with a bespoke sleep experience. Lastly, we expanded our partnership with Walmart Canada, with the opening of two additional Sleep Country Express stores in Walmart Supercentres, bringing the total number of express locations to 19, and we continue to build out our full-service Sleep Country retail footprint with four new stores planned to open in the back half of this year. Along with the growth of our retail footprint, w e continue to build the most innovative product lineup of sustainable sleep essentials and create opportunities for product sourcing across all our brands. In Q3, we will begin offering new Hush, Silk & Snow, and Casper products in our Sleep Country and Dormez-vous? stores, and we are currently rolling out three new Casper mattress models to all our Sleep Country and Dormez-vous stores that we expect will be hugely popular with our customers. At the same time, we are focused on managing costs and driving efficiencies throughout our organization and see great opportunities to leverage our infrastructure and scale as a consolidated company across the three acquisitions that we have made in the last two years. In May, we opened our largest and most technologically advanced distribution center to date in Kitchener, Ontario, tripling our warehouse capacity to meet the growing needs of our customers and business. We continue to transform our digital capacity and build new technology that will integrate our systems and enhance our omni-channel service with the planned launch in Q3 of our newest digital platform, powered by BigCommerce. Our technology and transformation teams are hard at work building our integrated systems of the future that will harness our data with advanced AI customization tools to maximize our engagement in ROAS with our customers. We are proud to be releasing our second ESG report this month. This report outlines the progress we've made on our commitment to being a purpose-led, sustainable business, focused on helping people enhance their overall health and well-being, building a best-in-class culture, and supporting positive social change and protecting our planet. As always, we are incredibly grateful to our entire teams, who proudly represent all our fantastic brands and have worked tirelessly over the last few years to transform the sleep industry in Canada and our businesses, making us Canada's favorite and most trusted sleep expert. Looking ahead, we remain cautiously optimistic for the second half of 2023 and beyond, as we continue to focus on optimizing our investments, delivering a seamless customer experience across all our brands and channels, and driving growth in our business and value for our shareholders. With that, I will now turn it over to Craig to discuss our financial results. Thank you, Stewart, good morning, everyone. We continue to be pleased with the financial performance of our business, including our Q2 2023 results. We saw a decrease in our revenues by CAD 10.4 million, or 4.6% from our highest Q2 revenue ever of CAD 227.6 million in Q2 2022, to CAD 217.2 million in Q2 2023. This change was mainly due to a decrease in same-store sales, which was partially offset by wrap stores opened in 2022, as well as incremental revenue earned from our acquisitions of Silk & Snow in January 2023 and Casper Canada in April 2023. Our Q2 2023 same-store sales were - 10.9%, co-ming off of same-store sales growth of 15.1% in Q2 2022 and 65.5% in Q2 2021. If we were to normalize our Q2 2023 revenues and remove the incremental revenue earned from Silk & Snow and Casper Canada from our results, we would have still achieved the second highest Q2 revenue in the company's 29-year history. Our Q2 revenues from our e-commerce platform increased by 320 basis points, from 18.1% in Q2 2022 to 21.3% in Q2 2023. Taking a step back and looking at our total revenues over the last four years, from 2019 to 2023, we have achieved a strong CAGR of 6.5%. Moving on, our gross profit, gross profit decreased CAD 2.7 million from CAD 81.7 million in Q2 2022 to CAD 79 million in Q2 2023. Our gross profit margin increased 50 basis points from 35.9% for Q2 2022 to 36.4% for Q2 2023, mainly due to higher average unit selling prices and lower product costs, partially offset by higher sales and distribution compensation costs and deleveraging tied to our occupancy and depreciation costs. Our improved gross margin this quarter was negatively impacted by our deleveraging, tied to our G&A expenses. Total G&A expenses increased by CAD 9 million, or 19.7%, from CAD 45.7 million in Q2 2022 to CAD 54.7 million in Q2 2023, of which CAD 2.1 million of the CAD 9 million increase was due to incremental media and advertising expenses, and CAD 2.6 million was due to compensation costs. Both increases were primarily tied to incremental spend from our Silk & Snow and Casper acquisitions. Additionally, total G&A expenses were impacted due to higher professional fees driven by the acquisition of Casper and intangible depreciation costs, which were largely tied to our recent acquisitions. As a reminder, our D2C brands, such as Hush and Silk & Snow, which are earlier in their growth cycle, have higher marketing and fixed costs as a percentage of total revenues, and therefore cause a deleveraging impact at the consolidated level. Taking a step back, EBITDA decreased by CAD 10.5 million, or 20.1%, from CAD 51.9 million in Q2 2022 to CAD 41.4 million in Q2 2023. Adjusting our EBITDA for LTIP, ERP, and acquisition-related costs, our operating EBITDA decreased by CAD 9 million, or 17%, from CAD 53.2 million in Q2 2022 to CAD 44.2 million in Q2 2023. Operating EBITDA margin for the quarter decreased 300 basis points versus the prior year. Finance-related expenses increased by CAD 1.3 million, from CAD 5.3 million in Q2 2022, to CAD 6.6 million in Q2 2023, mainly due to the decrease in an unrealized gain on our company's interest rate swap and an increase in interest expense on the company's lease obligations and its senior secured credit facility, which is impacted by higher interest rates and debt levels. These changes were partially offset by a decrease in accretion expense as a result of lower redemption liabilities related to the Hush acquisition. Net income attributable to the company decreased by CAD 10 million, from CAD 22.7 million in Q2 2022, to CAD 12.7 million in Q2 2023. Adjusting for LTIP, ERP, and acquisition, acquisition-related costs, as well as accretion expenses related to the redemption liabilities for Hush and Silk & Snow, adjusted net income attributable to the company decreased by CAD 10.9 million from CAD 25.7 million in Q2, 2022, to CAD 14.8 million in Q2, 2023. Diluted earnings per share decreased by CAD 0.25, or 41%, from CAD 0.61 in Q2, 2022, to CAD 0.36 in Q2, 2023. The change in diluted EPS of CAD 0.25 was mainly impacted by a CAD 0.28 decrease in EPS due to lower EBITDA, as discussed, as well as CAD 0.07 decrease in EPS due to higher interest expense on our senior secured facility and leases, and CAD 0.04 decrease in EPS due to higher depreciation and amortized expense, mainly driven by the intangible depreciation as a result of the acquisitions of Silk & Snow and Casper Canada. These decreases were partially offset by lower accretion expense of CAD 0.05 per share and a decrease in income taxes of CAD 0.11 per share. Income taxes decreased due to lower taxable income, in addition to a lower effective tax rate by 1.2% from 28.4% in Q2 2022 to 27.2% in Q2 2023. As of June 30th, 2023, our cash balance was CAD 41 million or CAD 48.1 million, with an additional CAD 90.9 million of liquidity available to us. This does not include the CAD 100 million accordion available to us through our credit facility. On to some capital allocation items. During the second quarter, we did not purchase any of our common shares under our NCIB. We suspended the repurchases during the acquisition process of Casper Canada, which closed in mid-April, and while we put an automatic share purchase plan ahead of our Q2 blackout, the share price remained above our predetermined purchase threshold. We do intend to execute our NCIB as opportunities arise in the second half of 2023, and I would like to remind everyone that nearly 2/3 of our repurchases in 2022 occurred in the second half of the year as we enter our seasonally higher sales periods. On August 10th, 2023, the board approved a quarterly dividend of CAD 0.237 per share, which will be payable on August 31st, 2023, to shareholders of record at the close of business on August 25th, 2023. Regarding our CapEx for 2023, we continue to plan on opening a minimum of six new Sleep Country Dormez-vous stores and do two store renovations to our new store concept. In Q2 2023, we opened a new warehouse in Ontario and consolidated its operations with an existing warehouse. Additionally, we continue to invest in our ERP and technology to further enhance our digital capabilities and omni-channel experience. We spend approximately 1% of revenue for ongoing store and DC maintenance. Thank you. I'll now pass the call back over to Stewart for closing remarks. Thank you, Craig. Our accomplishments in the quarter are a testament to our unwavering commitment to our strategic plan to build the country's best sleep ecosystem, along with the adaptability and resilience of our team. Our continued investment in an incredible portfolio of brands with an expansive and innovative product lineup, while expanding our distribution channels and touch points, has enabled us to create the most robust omni-channel sleep experience in Canada. This quarter, Sleep Country was one of the many organizations affected by the previously unknown vulnerability in the widely used MOVEit software. Our organization has determined that no meaningful Sleep Country Canada customer information was affected. Our websites and payment portals all remain safe to use. I want to congratulate the technology and transformation teams for doing an excellent job in safeguarding our business. Looking ahead, we approach the remainder of the year with cautious optimism for the macro environment. While we continue to focus on driving efficiencies and results and managing our strong balance sheet, we remain committed to identifying opportunities that align with our long-term strategic goals while delivering growth and value to our shareholders. Thank you once again to our fabulous teams at Sleep Country, Dormez-vous, Endy, Hush, Silk & Snow, and Casper, and to all our partners for the commitment and support for all our customers and our businesses, and have a good summer. With that, we conclude our remarks and open it up for questions. Thank you, sir. Ladies and gentlemen, we now begin the question and answer session. If you'd like to ask a question, please press star followed by number one on your telephone keypad. If your question has been answered and you would like to withdraw from the queue, please press star followed by number two. If you're using a speakerphone, please lift your handset before pressing any keys. One moment please while we compile the roster. Your first question comes from Martin Landry with Stifel GMP. Please go ahead. Hi, good morning, guys. Morning, Martin. Morning. I would like to touch on your EBITDA margins. You know, they have eroded in recent quarters, and it's partly as a result of the acquisitions that you've done. Some of them have a bit of a lower profitability at the EBITDA level. You know, how much of the 300 basis points margin erosion that we've seen in the quarter comes from acquisitions? Any color on that would be helpful. Yeah. Hi, Martin. Yeah, on the EBITDA margin, a, a large component of the deleveraging that we did see, you know, this quarter and we have seen over the last kind of two quarters, is those, those new investments do have a deleveraging impact because their fixed cost base at the G&A level is higher. In addition, as we continue to grow, those businesses, you know, digitally, the cost of, of marketing, which gets grouped into our G&A lines, is higher and ticks higher. I would look at it as these businesses mature, and then also as we go into seasonally, higher selling periods of the back half of the year, we should see less, you know, less, pressure on, at the G&A level. It is mostly tied to acquisitions. Then the other thing that you always have to remember is taking a step back at G&A, we always will have a deleveraging in periods of time where you have a decrease in sales year-over-year, which is just tied to your occupancy costs and depreciation costs of our warehouse. This quarter, from a store perspective, we did renew approximately 24 new leases, and under IFRS 16, those do get, you know, accounted for with the new, more recent, higher interest rates. There is additional, you know, pressure there. Then at the G&A level, on the warehouse side, we did open the new warehouse in Kitchener. We also did take possession, or not possession, but we're in the build-out phase or fixturing period of the Montreal warehouse. Again, those are valued at, you know, at the higher interest rate environment. We did see some pressure just tied to occupancy and depreciation as well, in this quarter. Okay, that's helpful. You, you touched a little bit on it, but, Casper, you just acquired Casper, and I, and I think that's a bit margin, you know, dilutive for, for now at the EBITDA level. Like, when can we expect you guys to lap the dilution from, from your acquisitions? I know there's some initiatives that, Stewart, you mentioned about improving the profitability of, of Casper. If we can get maybe just some, some, some visibility as to when we, you know, turn that corner. Yeah, no, that's, that's a great question, Martin. We look at the 2024. Specifically for Casper, 2024 is, is kind of that, that year where it'll be the kind of Casper story. Now on the, on the Silk & Snow, it's very similar. I think 2024 is when you see us lapping and, you know, looking at the, the margin in a more, you know, normalized manner going forward. I'd say we'll have a little bit of pressure, you know, in the back half of 2023 on those new investments, which will have a little bit of delevering impact. In 2024 is when we kind of see, you know, more, more level results on those and more predictable kind of margin profiles for those two investments. I don't know, Stewart, if you have anything else to add around the- Yeah. ... marketing component. Yeah. Well, I'll just add back to, I guess, the real question, Martin, is in terms of the plan. As we said right from the very beginning, I mean, we're thrilled to now own this powerful brand with one of the highest awarenesses in mattresses. We were less impressed, which is why it created an opportunity for us, with how the business was managed in Canada. The first step for us, was to discontinue the American-made mattresses that were designed for the U.S. and reintroduce a collection of mattresses that are suited for Canadians. There's not a ginormous difference, but there is definitely a difference that we know very well. Also, Casper was one of our lowest margin contributors. Now hopefully it'll be one of our highest margin contributors, and that's already starting to materialize with the new three beds that have rolled out. The wreck and rebuild we're doing on the POS and the e-commerce sites. You live in Montreal, Martin, the French website is a disaster. The new one will be fabulous because, again, no disrespect to our southern friends, that wasn't their forte. It'll go on to our new platform, which we're gonna be going on to Shopify for Casper and within our stores also on the POS. That's what we're very excited about and having great conversations with them. Once that's replatformed, we're gonna flick the switch on our advertising, which we completely pulled back. Also, in the numbers, again, we didn't want to call it out because we don't wanna make any excuses, over CAD 500,000 was in ad spend that we couldn't. The ad campaigns were handled by an agency out of New York. There was a transition phase and a timeline of when and what you could cancel that was already booked within the market. There was a CAD 500,000 plus of wasted spend that was happening while we discontinued the floor model. I'm saying the beginning of 2024. I'm optimistic for Q4, I'd rather underpromise and overdeliver, the first quarter of 2024. Okay, that's super helpful, guys. Thank you. I'll pass along the line. Thanks, Martin. Thank you. Your next question comes from Stephen MacLeod of BMO Capital Markets. Please go ahead. Thank you. Morning, guys. Morning. Morning, Steve. Morning. Thanks for that great color on the last couple questions. Very helpful. Just wanted to ask a little bit about sort of how you saw consumer spending and same store sales evolving through the quarter, and if you're able to share any color on what you're seeing on a quarter-to-date basis? Yeah. I guess very similar to what we were seeing in Q1. I mean, the back half of Q2, everyone knows, is old history. The pressure is for sure on the lower end of the business. There are more price-sensitive consumer. You know, I've been doing this for 29 years, I've lived through, I don't know how many recessions and stock market crashes, not that we have a stock market crash. We always see a little bit of a pause when there's a little bit of a pause on consumer confidence or a shift in terms of their overall spending. We have not seen any signs of a recession. I mean, there's for sure a recession within the mattress industry, especially within the United States, and there's definitely a slowdown here, but these are still quite bullish normal numbers historically for our brands. Usually, if we see the slowdown, we see it across all categories. To be specific, it's our mid to lower end that's having the biggest impact, but our mid- to- high- end, mid and higher- end has been fine. Interestingly enough, our accessories across the board, which is usually a gauge for us of consumer confidence, 'cause they're coming in, they're interacting with, with the brand, they're kicking the tires, buying a nice pillow, and then creating a lead generator for us for when they're ready to buy a mattress, but maybe they're pausing a little bit more. Like we have said, cautiously optimistic, and, you know, we don't give guidance, but July came in better than June finished. Let me just say that. We are comping off of lower numbers from last year, so we have a lot of things on the go that are in place, and we're hoping that as long as the consumer stays the way they are, and the macro environment doesn't get worse, and people get used to the new world of 22-year high interest rates, I think we'll be fine. Okay, great. Sorry, could you just clarify the comment on accessories? Were you saying that they've held in okay, and then obviously, the growth was up year-over-year? Yeah. I mean- Yeah. That's a big part of our business. People forget that in years ago, when we introduced the accessories, we introduced accessories, at what we used to call a lead generator. We just wanted someone to cross the lease line to experience Sleep Country or Dormez-vous. It then became an incredibly profitable business and obviously a big focus for us because, we, we think there's lots of runway to grow there. In previous recessions that I have lived through, everything goes soft. Everything. Right across the board, everything goes soft. Whether this is a recession or not or a slowdown just on discretionary spend or a shift in spend on pause, we have not seen that in our accessory business, which we look at that as a very good sign. In fact, some of our categories have ticked up. For us, that means our customers are still engaging with us on our smaller items, which are very profitable, which has an impact also on our gross profit margin, which is one of the comments I made in my, that our advertising campaigns were targeting some of our more profitable channels, which is the accessories, because we call it the Starbucks effect. They're coming in, they still wanna feel a little bit good, they're thinking about their health and well-being, and maybe just at the moment, they're pausing to buy a mattress. Right. Okay, that's great. Thank you. Then maybe just, just on, just on that gross margin comment, you know, we did see some growth on a year-over-year basis in, in Q2. I'm just curious if you could give. You know, is that sort of a new, new run rate that we should expect? I know last year's H2 comps are, are quite difficult, but I'm just wondering if you can give a little bit of color on how gross margins should evolve over the next couple quarters. Yeah, Stephen, I think you're talking about overall, gross margins, correct? Yes, that's right. Yeah. Yeah. Yeah. I, you know, I think we've said on previous calls is we kind of expect the, like, a leveling of, of our gross, gross profit margin on a year-over-year basis. We did have a little bit of a, you know, an uptick, this quarter, very slight. I would expect, you know, more consistent with year-over-year, like a stabilization rather than, counting on continued expansion. Again, we're gonna do all the things- we tend to continue to drive margin, and we've got lots of things in the pipeline. If I was planning the back half of the year, I'd just look at kind of year-over-year, similar profile. Okay, that's great. Thanks, Craig. Thanks, Stewart. Appreciate it. Thanks, guys. Thanks. Thank you. Your next question comes from John Zamparo with CIBC. Please go ahead. Thank you. Good morning, guys. Morning, John. Morning, John. I'd like to get a better sense of consumer behavior. Just want to follow up on some of the prior questions. Clearly, you think there's an opportunity with your higher end models, and that's evident through launching The Rest. You're also leaning more into the Walmart partnership with the nine additional stores planned there. When it comes to lower prices or lower price models or lower income consumers, is it that you think there's an opportunity to take share even though that segment isn't performing as well? Just would like to better understand that dynamic. Yeah. I'm smiling, John. You can't see me, but I always laugh because it's always about taking share. We lay in bed, we're happy with our 40% market share, but we wonder why 60% of the population are still not shopping with us. We do believe that it's across all segments, across all channels, and we don't manage the business based on a quarterly basis. Nothing's changed or shifted in our minds strategically. In fact, on times like this, there is an opportunity, because of the strength of our balance sheet, to accelerate certain things. We think with the growing population, 500,000 newcomers coming to Canada, that that's a very important part, that Walmart is a big component of introducing the brand, even if it's not transactional at the moment, it does give it an enormous amount of exposure. It is an area that we want to grow our unfair share. A more difficult segment of the market to grow in a down market, which is what we have right now in that category. Again, we put these things in place for years, and we're optimistic, very optimistic in terms of when it turns, we'll be ready for them. On the mid to high end, that's our sweet spot. You know, the acquisition of Casper is a big component of that. The mid to high end is definitely where the biggest profitable part of our business is. It costs us the same amount of money to deliver a CAD 2,000 mattress as it does a CAD 200 mattress, and all the other metrics that go along with that. So that's why we're expanding on our regular store base. If we find great opportunities for fabulous real estate, that's, that's in the pipe. We have many stores in the pipeline that are hopefully coming up over the next three years. The high end, this is something that we've talked about for a long time. Obviously, it will not be a huge expansion, but we do see an opportunity for this to grow to about six to eight stores strategically across Canada and some very affluent markets where we have customers that are asking for something a little bit more special. You've seen this trend develop in the United States successfully in a few different areas, and so we're going to be very careful and methodical as we enter into this space. Yorkdale Mall, as you know, is like the premier mall, and that will be a good testing place for us. We're gonna test, test, test and see if what happens, what we think is gonna happen, happen, then we'll consider other markets. Okay, I appreciate that, that color. Sticking with Yorkdale, I wonder why Hush wasn't the brand that, that you plan to open with later this year, given the test did seem quite successful and also that accessories are outperforming mattresses at the moment? It's that. Great question. They're, they're still not far behind, but it's more that we have to expand the merchandising selection. Hush is a fabulous brand for us. As they introduce other products under like, everyone knows them as Hush weighted blankets, but their sheets are now their, their cooling sheets are probably their best sellers. They're selling mattresses now. There's new pillows that are rolling out. When you enter into the brick-and-mortar world, you, you need to be able to fill up that square footage. It's a little different in terms of how we transact online and what we transact per square foot within our stores. Mike Douglas, our head of merchandising, is overseeing this mission for us for all our businesses and expanding the accessories, and Hush is number one on that. Let's see what happens on the next call. Maybe I'll surprise you. Okay, fair enough. Two more from me. One, the change in store renovations target, now you're down to two for the year. Is that a function of you just have a lot going on on the brick-and-mortar side, you don't entirely know what the next generation of stores will look like? Or, is there some other factor beyond that? Yes, yes and yes. We do. Like, like, when we put this script together and we look around as a team and we are hitting on... Like, park the macro environment for a second. We're hitting on all cylinders in all the areas of and the strategic objectives that we laid out. This team has been working like dogs in the last two years, and we're really pleased and ahead of schedule on a lot of the things that we're doing. This, the remainder of this year is to buckle down and really drive efficiencies and maximize the value of the investments that we have made, and make sure that we are razor-focused on executing. That's what we're really good on, and we have our hands full there. Add in the macro environment, we're also cautious. Our balance sheet is still incredibly strong. We like having a war chest because you never know what other opportunities pop up. On the renovation side, we could pause that a little bit, and we'll reconsider that in Q1. I also don't wanna be doing renovations in the third quarter, which is one of our biggest quarter, especially if we're thinking that there's a bit of a pent-up demand. Your last comment on the two renovations, those are the two new store concepts that we've been mentioning. We're ready to roll out our two new store concepts, which is going to bring a digital optimization component within our stores and a fresh new look and feel, and an expansion of our accessory side of our business. Again, we like to test, test, test, before we decide that if something is going to move the needle before we allocate capital to do it across the board. Okay, understood. That's helpful. My last question's on, on margins, and, and you talked in your prepared remarks and also the press release about the idea of managing costs and driving efficiencies, and specifically the, the new DC and transforming your digital capacity. Are we right to think about the benefits mostly being on gross margin rather than SG&A? Is there anything you can say to help us frame the magnitude of that benefit, whether it's dollars or, or in percent? Yeah, I mean, on, you know, I think as we look at all of the different efficiencies that we can use from, you know, from a roll-up perspective of the D2Cs and centralizing certain departments, there will be an impact over, you know, that we'll see through 2024, that would hit G&A. There's a lot of different synergies, and those are some of the reasons why we looked at these different acquisitions. There will be some benefit there. Then again, we continue to look at our product sourcing roadmap, additional scale as we roll in some of these additional investments. There will be some, you know, we feel, you know, margin opportunities. I wouldn't count on that in the back half of this year. It's more of a 2024 story. I think the other component is also, with some of the acquisitions like Casper, we, you know, we saw a good, a good opportunity to expand, you know, our gross profit margin while providing the customer with a better pricing on a just as good or better, better. There's opportunities like that, that we're gonna continue to explore. I could see relief in both buckets. Lastly, the marketing as we mature in those D2Cs, they do become more efficient as they grow up. And, and so we're, we'll see some, you know, some opportunity there as well. Again, this is more of a 2024 and beyond story, rather than 2023 back half. I just wanna add, John, we don't make your jobs easy, and we get it, and that's why we try to be as transparent as possible. It's sometimes hard to read the tea leaves, because some of the investments that we're making today, we won't reap the benefits until farther periods outwards. Every one of the acquisitions that we've done, we're not buying these companies just to buy them. We're buying them to grow them. We do believe each one of the brands that we've acquired can live within the Sleep ecosystem as we expand out the footprint, both digitally and retail across Canada. We want Canadians to shop with one of our brands, that our customers choose whatever that appeals to them, and we just wanna make it easier and more seamless for them. Like, even just the investment in the Kitchener DC, it triples our capacity of our distribution. Clearly, that's not gonna be filled for years to come. Our two super hubs, Belleville and Calgary, which support our direct sourcing part of our business as our margins expand, they're not anywhere near full capacity. We have to plan these moves so that while we're doing these acquisitions and while we're growing organically, the Sleep Country Dormez-vous? business, that we have the ability to service our customers in the way they, they are used to and they expect to be served. Excellent. All right, I appreciate the caller, and I'll pass it on. Thanks very much. Thanks, John. Have a good weekend. Thanks, John. Thank you. Your next question comes from Brian Morrison with TD Securities. Please go ahead. Morning, Stewart. Good morning, Craig. Hey, Brian. Hey, Brian. How's it going? Good, thanks. Stewart, I want to start off with your cautiously optimistic comment. I know you don't provide guidance, but it sounds like July's off to a decent start, especially for accessories. I'm wondering if you might be able to just talk about how mattress sales have the cadence of them maybe over the last six weeks. You did have one of Canada's most representative retailers come out yesterday and say that they've seen a substantial decline in sales the past six weeks. I'm just wondering if you're seeing anything remotely similar to that? I will say to you, 'cause I wanna give you guys as much color as possible. Let's start with the easy one. Accessories seem to be holding up still very nicely. The mattress business is soft, but not as soft as Q2 at the moment. Specifically to your question, over the last six weeks, and I said this to the board, and again, we don't have a crystal ball, we're not economists. You guys are better at that than us, and we have no idea what tomorrow will bring. If you lay over days when the stock market is up and when the stock market is down, it definitely has a play on consumer confidence because these last six weeks have been a bit of a yo-yo. We've had strong up days, and we've had big down days. What we usually see is consistency across the country, because, I mean, habits are the same from coast to coast, but we haven't been seeing that. When, when oil dipped down towards $70, Alberta got quiet. As oil now pushes above $80 again, Alberta gets busy. I mean, it's, it's been really funny times and trying to, trying to plan on our advertising, 'cause that's the one big lever that we always have to determine if we want to drive. Is it the right time to drive even more people through our doors? Are we gonna get the efficiency on this spend? That only is answered if the customer is there. We have been leaning a little bit more into our advertising on accessories, 'cause that seems to be very healthy. We're launching two new campaigns that we're very excited about, which is part of the additional advertising spend that was in Q2 as we create the content. Endy is launching a new awareness campaign called Rise to Shine, which is, which is going to hit in Q3, this, this quarter, excuse me. Sleep Country is launching also a new campaign that's focusing on our sleep experts with the tagline, "We solve sleep." We're, we're gonna, we're gonna roll the dice in terms of driving awareness and hopefully the customers out there in Q3, with the ability to always pull it back if we're not seeing it there. I know that's a long answer, maybe not giving you what you need, but that is the, our best guess. I appreciate that. Second question, maybe for both of you. What's the decision to integrate Silk and Hush and Casper as opposed to, into Sleep Country stores, as opposed to keeping them independent? Craig, with your earlier comment on these banners having a higher fixed cost structure, we should expect them to have a higher margin profile upon maturity, such as Endy. Would that be correct? That's correct. Yes. Yeah. On the accessory side of it, we have an eye on the possibility of the post-sale component of our business. We believe, like, these weren't retail stores that we bought. These were brands, very powerful brands that have high awareness and affinity with Canadians. We control what the product is. So a Silk & Snow or a Hush or a Casper pillow doesn't necessarily, or sheets or whatever it may be on the accessory side, doesn't necessarily need to be the same product in a Casper store or a Silk & Snow store or a Hush store in the future. We have a captive audience that we believe, are willing to pay a premium dollar for a premium brand. If that helps elevate the overall experience for the customer to acquire a Casper pillow while they're buying a Tempur-Pedic mattress, we wanna make sure that we make that opportunity for them. Okay, last question. Craig, your message on the NCIB in the second half of last year obviously blacked out last period. With a little bit more debt due to the acquisitions, should we expect that kind of CAD 50 million target to still be intact on the NCIB? Should we have look for some of the free cash flow to be allocated to debt instruments? No, I think, you know, we're not, you know, I think that CAD 50 million is still, you know, doable. Again, we're, we'll always continue to be opportunistic with, with repurchases. We have lots of you know, access to liquidity, and then we're coming into our seasonally higher sales periods as well, which generate, you know, much, much more of the free cash flow for our business. We're not really changing our outlook on that at this time, just with the understanding that we'll make the purchases in an opportunistic way. We're, we're gonna make sure we optimize our shareholder value by, being opportunistic, whether it's in a buyback, whether it's in any other new business, whether it's expanding our own footprint, or raising the dividend, which was just done, like. In May. In May, thank you. We wanna be able to be smart with our cash. We like to have war chest, 'cause you never know what tomorrow will bring. We have a long runway on things that we're planning, and as we have in the last year and a half, we've been very opportunistic and we'll continue to be so. All right. Good luck. Enjoy the rest of your summer. Thank you. You too. Thanks, Brian. Thank you, gentlemen. There are no further questions at this time. I will turn the call back to Mr. Schaefer for closing. Well, thank you again, everyone. We really appreciate your support. It's been a rainy summer, but hopefully, we'll get a little bit of sun for the remainder of August, and you can enjoy the last part of it. We'll speak to you on the next call. Be well. Ladies and gentlemen, this concludes your conference call for today. We thank you participating and ask that you please disconnect your line.