Hi, everyone, and welcome to this Bang & Olufsen's interim report for Q2 2023, 2024. Today's call is being recorded. For the first half of this call, all participants will be in a listen-only mode. Afterwards, there'll be a question and answer session. To ask a question, please press five star on your telephone keypad. I would like to introduce your first speaker, CEO Kristian Teär. Please begin. Hello, everyone, and thank you for joining the call. As always, I have Nikolaj Wendelboe, our CFO, with me. I will begin with the financial highlights for our second quarter, followed by an update on how we are progressing with our transition towards luxury, timeless technology and our key priorities. Nikolaj will take us through the financials in more details, and I will conclude the presentation part before opening up for questions. If we move to slide number 5. In the quarter, we delivered a positive EBIT and free cash flow, despite a revenue decline of 16%. We are not satisfied with the revenue development. However, this is also partly a consequence of the deliberate strategic choices as we continue to execute in line with our luxury, timeless technology strategy. Let me exemplify. We exited multi-brand stores not aligned with our strategy. We invested in our branded channels, especially with the opening of flagship stores in London and New York. We improved product quality and introduced two new product innovations. We increased brand awareness through our partnership with Ferrari, and we added more customers and increased the number of customers owning more than two products. We are pleased to report another quarter of positive earnings with an EBIT margin of 3%, and we delivered a record high gross margin of 53.1%. This is the third quarter in a row we are delivering a gross margin above 50%. This shows that we're building a more robust company. The continuous improvement of our gross margin has also enabled an important gradual strategic shift away from non-luxury multi-brand doors towards branded channels. In our branded channels, we can showcase the breadth of our portfolio and brand and give our customers the full B&O experience, as well as support better price stability and build brand equity. Over the past 12 months, we have closed more than 2,000 multi-brand doors as part of this strategic reorientation, which supports our ambition to deliver more sustainable growth. As mentioned, we are not satisfied with revenue development in Q2, which amounted to DKK 700 million, a decline of 16% in local currencies compared to Q2 of last year. If you look at the first 6 months of our financial year, revenue declined by 8% in local currencies. We had expected negative growth for the quarter since we had a very successful launch of Theatre last year, and we have exited from multi-brand and e-tail doors. Overall, our branded channels continued to perform well. We did, however, continue to see more cautious replenishment of inventory from our monobrand partners. Sales were also impacted by the slower-than-expected economic recovery in China. This is also why we report a higher negative growth than expected. For brand partnering and other activities, revenue declined by 27% in local currencies. This was driven by several factors, but especially license income from our automotive partner was impacted by factory strikes in the U.S. So despite the revenue development, we are pleased to deliver a record high gross margin and profitable quarter. This also supported the improvement of our free cash flow, which increased by DKK 23 million compared to Q2 last year. Please turn to the next slide. We continue to see stable consumer demand in most markets, with like-for-like sell-out growing 2%. Like-for-like sell-out for our company-owned stores grew by 10%. Looking at product categories, we had positive traction on most product categories. Our Flexible Living category grew by 6%. On-the-Go category grew by 3%, while the Stage category declined by 2%. In general, we don't see like-for-like sell-out being negatively impacted by the price increases. In EMEA, like-for-like sell-out declined by 1% year-on-year. The company-owned stores delivered solid sell-out growth, driven by growth across markets, particularly in London and Paris. Monobrand stores had a small sell-out decline. Sell-out in Americas declined by 6%. Negative growth was seen across all channels, except in e-commerce, which showed solid sell-out growth. Our company-owned stores reported negative growth due to the relocation of our Madison store, which was closed for a month. Our Soho store reported double-digit sell-out growth during the quarter. In APAC, like-for-like sell-out grew 8%, mainly driven by China, with a sell-out growth of 17%. Sell-out growth in China was across product categories and channels, though generated from a low comparable due to the restrictions and regional lockdowns last year. In addition, improved inventory levels had a positive effect on sell-out. Please move to the next slide. We made progress with our strategic initiatives in the quarter. I will highlight some of our achievements across our five shifts. This quarter, we had a particular focus on improving the channel network and retail excellence. We have added retail capabilities to my global leadership team by hiring a new head of global retail in November. She has vast experience from retail and from the luxury industry, and she will help us to take our retail experience to the next level. We know when we do retail right, with the right training of staff, with the right activations, the right merchandising, the right support from marketing, sell-out increases considerably. Two important milestones were the opening of 2 company-owned stores. We opened a store in New York in November and our new flagship store in London in December. We continued executing structural changes in our channel network to promote and improve our branded channels. We also reduced our presence in selected multi-brand and e-tail stores that do not fit with our luxury positioning. This included exiting some stores, but also being more selective with the product assortment available in the remaining multi-brand and e-tail stores. In Q2, we onboarded 5% new customers and grew the number of customers owning 2 or more products by 2%. The numbers show that we continue to attract customers and expand our business and loyalty with existing customers. Our branding efforts during the quarter centered on activating our partnership with Ferrari. We had multiple activations promoting our Ferrari product collections, launched in Q1, and the Scuderia Ferrari Formula One sponsorship continued to help us build brand reach and awareness. We announced two new product innovations in Q2, both covering the most important use cases of our customer sound and TV ecosystems. Our new Beolab 8 can be used as a system speaker to create an immersive home cinema setup with the compact size of a rear speaker and the beautiful design of a front speaker. It can also be used as a powerful standalone speaker, installed onto walls, set up on floors, secured onto ceilings, or placed on top of any flat surface. It is designed with product longevity in mind, which is a key customer requirement and a core value for B&O products. The speaker is designed using cradle-to-cradle principles and is pending complete certification. The second innovation announced in Q2 was Beosound Bollard. This is our first outdoor speaker, and it's developed in collaboration with Origin Acoustics. With Beosound Bollard, we can now offer our customers a seamless Bang & Olufsen experience outdoors without compromising on quality. The speaker has been available in retail since January 2024 in selected Bang & Olufsen stores and through our customer installation partner, Origin Acoustics. In Q2, we also introduced the beta version of a new, more intuitive and customer-friendly app interface. The improved multi-room app features makes functionality more interactive and easily accessible. The update has been available since January. Our Win City execution continued across our cities, London, Paris and New York. In London, Q2 sell-out growth was 13%. Our two stores in Harrods and Selfridges delivered strong growth and had the best quarter ever. As mentioned earlier, we opened our flagship store on New Bond Street in December, and I will go more into details on that on the next slide. In Paris, sell-out growth was 2%. Our company-owned stores reported high double-digit sell-out growth, while our monobrand network was significantly challenged. Overall performance in Win Paris was not satisfactory, and we are planning and making changes to our organizational setup to enable a better execution. In New York, sell-out declined by 10%. The quarter was impacted by one of our two company-owned stores being closed for a third of the quarter as it was relocated. Sell-out in our Soho store grew double digit, driven by several strong in-store activations. In November, we relocated our store at Madison Avenue. With this new presence in the city's premier shopping district, we can deliver the full brand experience and showcase the breadth of our portfolio, including our bespoke offering. In the second half of the fiscal year, we aim to commence a new Win City, this time in Hong Kong. The city's significant wealth, high density of very high-net-worth individuals, and history of being Asia's most prominent luxury destination. We see ample opportunity to grow our presence. Our current three company-owned stores in Hong Kong will serve as the foundation for reaching our Hong Kong-based target audience. In our brand partnering business, we extended our Cisco partnership with a new true wireless earphone built with enterprise-grade features and customized for professionals. As part of our strategy to strengthen our luxury, timeless technology proposition, we engage in strategic partnership and brand collaborations to support the growth, brand awareness, and customer acquisition. With the expiration of the HP partnership in June 2024, we are pursuing new partnership opportunities which reinforce one or more of our luxury, timeless technology pillars and further expand the proposition of our current brand partnering and licensing model. This will be realized through proprietary software-enabled audio experiences and by leveraging our design and craftsmanship offerings. We have an exciting pipeline, and we'll disclose new partnerships when possible. If we move to the next slide. Before I hand over the word to Nikolaj, I just want to put a few words on the new store concept that we revealed with the opening of our new store on New Bond Street in London. We believe that providing superior and multi-sensory retail experiences are key to our strategic transition. Over the past year, we have developed and refined a new concept to enable to provide that experience to our branded channels across the world. The new concept applies principles of modern luxury and is designed to provide the ultimate listening and visual experience... and showcase the full potential and brand, including a designated bespoke and event area for private and personalized customer events. This London store is a pilot of the new concept, and it is, in the months to come, we will extract learnings from staff and customers. It's too early to say how it will unfold in all branded retail, but it sets the bar for how we intend to deliver experiences for our customers in key locations across the world. All in all, we have made solid progress with our key priorities in the first half of 2023/24, which has contributed to a more clear positioning of our brand and more robust company. With that, I would like to turn over to Nikolaj. Thank you, Kristian. Now, please turn to page 10. Reported revenue in Q2 was DKK 700 million and a decline of 16% in local currencies compared to Q2 of last year. Reported regional product sales decreased by 17% or 15% in local currencies. This was due to several factors, which I will go more into detail with on the next slide. In terms of channels, the decline was across most channels and especially related to the multi-brand and E-tail channels. As mentioned, we are undergoing a strategic transformation in our channel network to focus more on branded channels. This means that we, across regions, are becoming more selective in terms of how and where customers can experience our brand and products, aiming to ensure they get the right experience. This also meant discontinuing more multi-brand stores, resulting in less overall volume into multi-branded channels in Q2. Our brand partnering and other activities declined by 28.8% against last year, corresponding to a 26% decline in local currencies. This was mainly related to reduced license income, as the automotive industry was impacted by factory strikes in the U.S. License income from HP also declined. Income from product collaboration was lower due to the ramp-up of the Cisco partnership last year. During the quarter, we expanded the partnership with Cisco and introduced the Bang & Olufsen Cisco 950 earphones. That did not affect performance in Q2 and is expected to generate revenue in the second half of the fiscal year. Please turn to the next page. In EMEA, revenue declined 14.5% or 15% in local currencies to DKK 342 million. Company-owned stores and e-commerce delivered growth. Monobrand declined, mainly due to the price increases implemented September 1, pulling some demand from Q2 into Q1. For the first half of 2023-24, revenue from branded channels in EMEA increased 9% year-on-year. We continue to optimize the channel network, and the number of monobrand stores will reduce by 14 year-on-year. Revenue from multi-brand and e-tail decreased significantly. As part of the strategic transformation, the number of multi-brand stores in EMEA have been reduced by 125 stores since Q2 of last year. In terms of e-tail platforms, we have limited the assortment available. In Americas, reported revenue was DKK 72 million on a year-on-year decline of 31.3% or -27% in local currencies. In general, the loss of Beosound Theatre in Q2 of last year meant high comparables. Company-owned stores were also impacted by a store closure due to the relocation of our Madison store. Our Soho store reported double-digit growth during the quarter. The custom installation channel declined due to high comparables, while the monobrand channel declined partly due to an unsatisfactory performance in California. Revenue from the multi-brand channel was reduced. As part of the strategic transformation, we entered the partnerships with both T-Mobile and Verizon and have consequently reduced the channel by more than 2,000 doors since Q2 of last year. Revenue in APAC was DKK 211 million, corresponding to a 15% decline or -10% in local currencies. Revenue from China decreased by 24.5%, or -16% in local currencies, and accounted for approximately 54% of total APAC revenue. In China, the e-tail network continues to struggle with traffic, and the channel declined during the period. Multi-brand reported growth after the channel was reset over the past quarters. Excluding one partner with high inventory levels, our monobrand channel delivered growth during the period, reflecting the mentioned reduced sensitivity in customer behavior in this customer segment. For the Stage category, revenue decreased by 16% to DKK 278 million. The development was mainly driven by the successful launch of Beosound Theatre in Q2 of last year. The good performance continued on a more normalized level. The decline was partly offset by the launch of Beolab 8 at the end of the quarter, as well as higher revenue from Beolab 50. For the Flexible Living category, revenue declined by 5% to DKK 135 million. Sales volumes were generally lower, reflecting a high comparable in China due to inventory replenishment in Q2 of last year. For the On-the-Go category, revenue declined by 24% to DKK 212 million. Across speakers and headphones, the development was mainly driven by a few large deals in headphones and earphones in Q2 of last year as part of our efforts to reduce end-of-life inventory. In general, the optimization of the multi-brand channel affected this category negatively for the quarter. The decrease was partly offset by improved average selling prices. Please turn to the next page. Our gross margin increased to 53.1% from 44.4% in Q2 of last year. The normalization of component and logistic costs have significantly lifted the margin level for the third quarter in a row. In Q2 of last year, extraordinary costs adversely impacted the margin by approximately six percentage points. In addition, price increase supported an improved gross margin, as well as relatively more revenue from branded channels. The strong gross margin also contributed to an EBIT margin before special items of 3% against 1.6% last year. Please turn to the next page. Looking at the underlying development, the gross margin was favorably impacted by a change in product mix towards higher margin projects, products, as well as price increases implemented since last year. An improved channel mix, combined with a strong price focus, also supported higher margin levels. Last year, the gross margin in the On-the-Go category was impacted by a few larger deals on headphones and earphones to reduce end-of-life inventories. Gross margin from brand partnering and other activities was 87.9%, compared to 82.6% last year. The increase in gross margin was mainly due to a lower proportion of product revenue from our brand collaboration with Cisco. Last year, we ramped up our partnership with Cisco to sell the Bang & Olufsen Cisco 980 headset for hybrid work. Please turn to the next page. Total capacity costs were DKK 355 million and 4% below Q2 of last year. Development cost was DKK 71 million against DKK 81 million last year, driven by lower incurred cost and a higher capitalization ratio compared to last year. Distribution and marketing costs decreased by DKK 9 million to DKK 246 million. The decrease was mainly reduced, related to the launch of Beosound Theatre last year and reduced warranty cost. The marketing cost ratio was 10.6%, compared to 9.5% last year. Administrative expenses increased by DKK 5 million to DKK 38 million, driven by higher costs for patent protection and extraordinary amortizations of IT assets. Special items were DKK 4 million against DKK 1 million last year, which were related to a reorganization in EMEA. Please turn to the next page. Net working capital decreased by DKK 25 million during the quarter to DKK 286 million. Net working capital to the last twelve months' revenue was 11% and slightly below last year. Inventories declined by DKK 18 million during the quarter, driven by our focus on inventory management. Since Q2 of last year, we have reduced our inventory by DKK 108 million. Trade receivables increased by DKK 38 million to DKK 365 million. The increase was driven by higher sales in Q2 compared to Q1. Sales with extended credit accounted for 2% of revenue in the quarter, compared to 1% in Q1. In Q2 of last year, extended credit was 12% of sales due to product launches. Trade payables increased by DKK 48 million to DKK 451 million, mainly related to the timing of supply. Please turn to the next page. The free cash flow improved by DKK 23 million to DKK 24 million. The developments in last year were driven by the improved EBITDA and the positive change in net working capital. Capital expenditures were DKK 57 million, which was overall in line with last year. Investments were primarily within intangible assets and related to new products and platforms. Finally, capital resources, consisting of available liquidity and available drawing right on our revolving credit facility, stood at DKK 323 million, up DKK 13 million from Q1. This was mainly due to the improved free cash flow. Our available liquidity was DKK 163 million at the end of the quarter, consisting of cash and securities, offset by repo transactions. And with that, I would like to hand the word back to Kristian. Thank you, Nikolaj. So if you please turn to the next page. Moving to status on our outlook for 2023, 2024. We maintain our outlook for the year. However, revenue growth is now expected to be in the low end of the range. This is due to the lower-than-expected revenue from APAC in Q2 and the delay of a product launch we expected in second half. Consequently, this also lowers the expectations for free cash flow to the low end of the range. Excluding one delay, our product launches are on track, and we have disclosed two our product launches, namely the Beosound Bollard and Beolab 8. The expectations to EBIT margin before special items is unchanged and driven by a strong margin that we expect to continue around the 50% for the remainder of the year. Please turn to the next page. So to recap, Q2 was a quarter impacted by several factors. We are pleased to see the significant increase in gross margin. This is the third quarter in a row we are reporting a gross margin above 50%, and this quarter was record high, 53.1%. This confirms that we're building a more robust company. We are not pleased with the development of revenue since we had expected a stronger recovery in China. We saw a continued stable demand for our products in most markets. Our customer base continued to grow, and we saw higher repeat purchases. We strengthened our luxury timeless technology proposition in Q2 to build long-term growth with focus on the channel network, which also meant discontinuing multi-brand doors in the quarter, even though it has a short-term revenue effect. Key strategic milestones were also the relocation of Madison Avenue store in New York and the opening of our new flagship store on New Bond Street in London. The latter features our brand new store concept. We continue to deliver on the Win City strategy, and we'll add the next city, Hong Kong, in the coming month. Given the market environment, we continue to be prudent with our investments and cost levels. We do, however, remain confident in the direction, and our insights confirm that this is a very attractive opportunity where we have pole position.... And finally, as I just said, we maintain our outlook for the year. However, revenue and free cash flow is expected to be in the low end of the range, despite the lower revenue level. The expectation for EBIT margin before special items is unchanged. With that, we would like to open up for questions. We will now start the question and answer session. If you do wish to ask questions, please press five star on your telephone keypad. If you wish to withdraw it, you may do so by pressing five star again. There will be a brief pause while questions are being registered. The first question will be from the line of Niels Granholm-Leth from Carnegie. Please go ahead. Your line now be unmuted. Good morning, and thank you for taking my questions. First question is on new partnerships to compensate for the termination of the HP contract. Could you talk about what will be the expected effect of the run out of the HP contract? And is it realistic that new contracts would be able to fully compensate for the termination of this contract? Secondly, you have announced the intention to become the owner of more of your B&O stores. Could you talk about how many stores that you expect to take over per year, and how you expect to finance this? Thank you. Thank you, Niels. Kristian here. I'll start, and I'll pass on to Nikolaj as well. We have had a very successful partnership with HP running over many years, and this last contract expires in June this year, and it will not be renewed. We are working, of course, with an interesting funnel of partners, like I said, in brand partnering and in brand licensing. We have also refined and developed the concept that we are offering to our brand partnering, which is now more than audio tuning and putting our name on the product. We want our brand partners to offer a complete immersive experience and get into the B&O world, and get into the B&O app, and become also customer of ours, which was not the case with HP. We will announce them when we announce them, but this opens up for new, different opportunities for us that we did not have the possibility to do before. Then also on HP, it's going to be. There's a wind down process with all of this, so it doesn't end abruptly on June of this year. It's going to be winded down and obviously we'll have revenue during that period as well. We expect there will be some smaller drops, but we don't expect this to be dramatic, and we also expect that we will be able to announce new partnerships going forward. Nikolaj, you want to add anything? Maybe just to be a little bit more precise on some of these things. It's not a termination. I think it's very important to state, once again, the contract is running out, as it's always been intended that it would at the end of 2024, as we have stated also when we entered the contract. So this is not news in that respect. Then there's a run-off period, as Kristian said, so we will still have HP revenue also in the next financial year. Because even though the contract is ending, as long as they are selling models with our name on, we will also get revenue from that. And then we're seeing growth in other parts of the brand partnering business. So, we believe the impact on the short-term is manageable and is not impacting the outlook for this year at all. On your second question, Niels, on how many stores we will open. We will not disclose that, but we'll start by moving, like we said, the Win City concept to Hong Kong, where we have three stores currently. And again, going that that is time to money, effort to money, probability to money is good when we have three stores that we can use as a base to establish and put the same concept in place. We have a few discussions ongoing on different places and different locations and different cities where we would like to have flagship stores. We also have partners who are interested in establishing similar flagship stores, like the London one, in a few locations, so we will have to come back to that in at the right time. Maybe, maybe just to add, so we know these locations. We know the 12 cities that we are turning into Win Cities over time, and we're not gonna disclose a plan on that for the next years. So we are now in New York, London, Paris, and the next one is Hong Kong. And then, when we are ready to take the next one after Hong Kong, we will of course disclose that as well. Okay, great. Can you just remind us how many stores do you actually own, as of now? Twelve. Thank you, Niels. The next question will be from the line of Poul Jessen from Danske Bank. Please go ahead. Your line now be unmuted. Yes, thank you for taking the questions. To follow up on Niels' question about HP, should it be understood that you are not going just to do a royalty agreement, but as you said, to be more, technology-wise? Should that we then see it as a Cisco or Balenciaga model going forward, and thereby also a lower margin on the revenue you'll get than you had on the Ford or HP contracts? Yeah. So let me start on this one. First of all, we have done more than 100 million audio tunes on HP laptops and put our brand name on those laptops, and that has been great, but we don't own these customers, nor do we have any relation with these customers. In the brand partnerships going forward, we intend to capture this customer data as well, and to offer them more services and more experiences and bring them in to the B&O world. We actually expect, on the contrary to what you suggested, that the licensing fees will go up when we do that, because we have more services and more experiences to offer. Okay. And then more or less in the same space, there was a story out last week that on Ferrari, that you were not among the sponsors for Ferrari in 2024. Is that something you can confirm or reject? I saw the same article that you saw, and we had first, we had a 1-year contract with Ferrari last year. We had a very good experience from this partnership with Scuderia Ferrari and with Ferrari on the product licensing business, and they also had a good experience. So, we are expecting to renew that contract. It's not done yet, but it's expected to be renewed. The season hasn't started yet. Okay. Okay. Now, there is a month or so until they start the, Yeah the races. Exactly. About the guidance for you. You moved to the lower end of the range now. It's obvious that China is growing weaker than expected, but if you do the change, is it mainly China, and should we see. Or what's in your model now? Are you looking at China continuing at the current rates, or are you assuming that there should be some recovering in the second half? Yeah. And then Nikolaj. Yeah. So, on China, we are assuming that we are sort of on average on current levels also in the second half. So, we are not projecting sort of major improvements in China, in the second half of the year. I think when you look at it from a growth perspective, we do hope that we will see some growth in China, actually, in the second half, because the comparables are becoming even lower. As you might recall, it was in December last year that China went from zero COVID policy to full opening, and there was a couple of months after that where everything stood still. And that impacted our Q3 last year quite a lot. So if you look at our APAC numbers for last year, I think the number is down to DKK 149.5 million. So we do believe that we should be able to to improve on that number. But compared to where we are right now, what we've seen in Q1 and Q2, we don't see any sort of major improvements going forward. So that's an important part of the reason why the outlook is now in the low end of the range. But we also—I think, besides China, we also are, of course, mindful of macroeconomic conditions in, especially Europe, and how that's evolving and is following also the luxury sector in how that develops in Europe, which is generally struggling more than in the rest of the world. So we are also, in our outlook, assuming that the euro will not be impacted further than what we are seeing at the moment. And then on the channel inventories, if you look at the recent quarters, then you had a very volatile impact from the changes in inventories, both positive and this quarter, negative. How do you see or how should we look at that going forward? That revenue should more be like a sell-out or that there will be a positive or negative impact from inventories on the sell-in? So we, when you look at inventory in across the channels, and especially in the monobrand channel, which is the channel that has the highest sort of total level of inventory, because that's also where most of the revenue is. We are seeing sort of, on a general note, inventory reductions during Q2, both in absolute numbers and also in weeks at hand. So our monobrand partners have reduced their inventory. So when you look into Q3, Q4, I don't see the inventory level impacting revenue, either in sort of a positive or in a negative way. It's of course following sell-out, and then of course, when we launch products, there's a temporary impact from store filling, et cetera, on inventory levels. The product delay you talked about, is that moved into next financial year, or is it just moved to later in this year? Oh, it's going to be moved into next year. Okay. I'll step back to details, otherwise I'll come back. Thank you, Poul. As a reminder, please press 5 star to ask a question. There will be a brief pause while new questions are being registered. The next question will be a follow-up from the line of Poul. Please go ahead. Your line will now be unmuted. Okay, I'll continue then. About the termination of the multi-brand stores, which is quite dramatic in North America. Should we see the same in Europe and Asia, or are you making a differentiation between the strategies there? And second question is: What kind of impact should we see for the remainder of the year of not selling into the multi-channel anymore? Yeah. What's the negative impact from the sales here? So let me start, Poul. So we have terminated multi-brand partners in Americas. We have terminated them in EMEA. We terminated three partners in EMEA and two in the U.S. We will continue with some other partners in the multi-brand channel, like I said, with a limited part of the assortment, and not with the full assortment. The China situation is very different as well because we have two big e-tail platforms that we will continue to operate with. And we will, of course, monitor this really closely so that we balance out the growth that we expect from mono-brand channels to be balanced out with the reduction we have in multi-brand. So we will have to wait and see a little bit, but I think the biggest chunk has been executed already, in this quarter. You want to add anything, Nikolaj? Yes. Yeah, in. When you look at multi-brand, sort of the physical multi-brand channel, not e-tail, the restructuring in China has actually, in fact, taken place. That's also why we're actually seeing some growth in multi-brand in China in this quarter, because that restructuring was done since last year. In Americas, we are there, so that has been reduced to the level. There might be actually some increases going forward in more quality doors, lifestyle multi-brand doors. And then I think in EMEA, there might be a few adjustments still to make in the multi-brand channel. So we decreased with 125 doors during this quarter, and there are still some pruning to do, but the big chunk has been taken now. That's been mainly for the On-the-Go segment that we have the impact? That's of course mainly On-the-Go and some of the flex speakers where we have an impact. So that's correct. Yeah, so that's correct. Okay. And then, Paris, where you say a reorganization, does that mean you take over the two partner stores? No. But we will need to support them in a different way than what we have done so far. So we have a change of management in France, and we will reinforce with more competencies around this field. 'Cause our own company store in Paris is doing really, really well. And the partner that we have is also a very good partner, has been a long-term partner, and he's now handing over to his son. And that has had some hiccups. So we will go back there, and we're confident we will be able to fix that and get back on track, without having to open our own stores there, or more own stores. Okay. Okay, and two questions left. California, you say that you are not satisfied. What's going wrong over there? Yeah. So, we have one partner who is running several stores, and, also here, the competencies and the investments have not been satisfactory, so we will have to also review that and see on how we can support him and them better, and also considering taking some of the stores over that are the good stores. 'Cause the potential- Yeah is really big in some of these cities, and we know we have the target audiences there, but we are not doing enough in terms of marketing, in terms of activation, in terms of service and support. So we believe we will have more upside as well, but currently it's not working to satisfaction. All right. And then my final question is about logistics, now that we have the trouble down in the Red Sea, and you are commenting on that yesterday, on the considerations you have on changing. Should we see that have a major impact on your business, on the gross margin, or how you will look at it from your point of view? Maybe I start, and then Nikolaj can comment as well. But, yeah, I was featured on the picture, Poul, but it wasn't me making any interview with them on this topic. I know. I know. I would have talked about the blue ocean and not the Red Sea if they would have asked me this question. But, nevertheless, we don't expect this to be major. We have contingency plans, and we're, of course, following what is happening, and I think we all learned from the COVID, which was, I mean, completely different level than what this is. This is, . two weeks more sailing time if you have it on a boat. And, of course, you can—most of our products can be also flown or put on rail, and we have our distribution centers in different places. So little bit more costly maybe, but no major impact. Nikolaj, you want to add? No, I think that's- So we should see it as slightly higher inventory because you have the goods on the- Yeah, there could be- Transportation for a longer time. There could be some inventory effect because you are 10 days more on ship, but we will also probably do some more air freights to be a little bit more effective. There will be a slight cost increase and some longer lead times, but it's nothing compared to what we saw during the COVID crisis. At least not what we see at this point in time. Okay, perfect. That was all for me. Thank you, Poul. As there are no more questions, I will hand it back to the speakers for any closing remarks. Thank you, everybody, for joining today, and if you have... Thank you for your questions. If you have any additional questions, please feel free to reach out to our very capable IR department. Thank you very much.