Welcome to a.k.a. Brands Holding Corp.'s Fourth Quarter and Fiscal 2025 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star and the number zero on your telephone keypad. Please note, this conference is being recorded. I will now turn the conference over to Emily Schwartz, Head of Investor Relations. Thank you, and you may begin. Good afternoon. Thank you for joining a.k.a. Brands to discuss our fourth quarter and fiscal 2025 results released this afternoon, which can be found on our website at ir.aka-brands.com. With me on the call today is Ciaran Long, Chief Executive Officer, and Kevin Grant, Chief Financial Officer. Before we get started, I'd like to remind you of the company's Safe Harbor language. Management may make forward-looking statements which refer to expectations, projections, and other characterizations of future events, including guidance and underlying assumptions. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those expressed. For further discussion of risks related to our business, please see our filings with the SEC. Please note, we assume no obligation to update any such forward-looking statements. This call will also contain non-GAAP financial measures such as adjusted EBITDA, adjusted EBITDA margin, and constant currency net sales. Reconciliations of these non-GAAP measures to the most comparable GAAP measures are included in the release furnished to the SEC and available on our website. With that, I'll turn the call over to Ciaran. Good afternoon, everyone. Thanks for joining us today to discuss our Fourth Quarter and Full Year 2025 Results. I'm pleased to report that we delivered another year of growth, reflecting the continued strength of our brands and the power of our business model. Despite a dynamic environment, we executed on our strategic priorities, strengthened our foundation, and entered 2026 positioned for accelerated growth and expanding margins. I wanna thank our teams across the business for their focus and disciplined execution throughout the year. Their commitment and hard work were central to the progress we made and the momentum we carry into the year ahead. Let me start with a few highlights from the year. For the full year, we grew net sales 4.4% to $600 million, marking another consecutive year of growth. Our U.S. region, which remains our largest and fastest growing market, delivered net sales growth of 7% to $394 million. On a two-year stack, the U.S. is up 25%, further reinforcing our conviction in our U.S. expansion plans. The U.S. now makes up 66% of the business. Princess Polly continued to deliver strong performance throughout the year, generating double-digit net sales growth and advancing its omni-channel expansion strategy. The brand opened seven new stores in the U.S. in 2025 and launched its first location in Australia in the fourth quarter, ending the year with 14 stores globally. Wholesale continued to perform well across the portfolio, with our partnership at Nordstrom exceeding expectations with both Princess Polly, and Petal and Pup delivering strong results. We also strengthened the leadership team, operations, and go-to-market strategy within our streetwear brands. These actions improved merchandising discipline and inventory productivity, positioning Culture Kings and mnml for accelerated growth and stronger margin contribution in 2026. Importantly, we exit the year with inventory down 10% year-over-year, reflecting our continued disciplined approach to inventory management as we improve turns and transition our streetwear business to the test and repeat merchandising approach. In 2025, we also completed an important structural transformation of our supply chain. As discussed in prior quarters, given the rapidly evolving macro environment, we accelerated the diversification of our sourcing strategy to enhance long-term flexibility and resilience. That work is now substantially complete, with approximately 50% of our U.S. sourcing from outside of China, in line with our targets, along with our ability to quickly move to different regions as necessary moving forward. Our test and repeat merchandising model and short lead times, while core to our agility and inventory efficiency, meant we couldn't pre-buy inventory ahead of our elevated tariffs implemented in 2025. Despite the margin headwinds faced throughout the year as we source product at the higher tariff rates, we delivered 30 basis points of gross margin expansion to 57.3% for the year. We estimate that the tariff headwinds offset by our mitigation efforts negatively impacted fiscal 2025 gross margins by approximately 100 basis points. Looking ahead, we're better positioned to adapt quickly to any future trade policy changes while maintaining our competitive advantages in speed and inventory efficiency. The progress we've made over the past two years provides a strong foundation as we look ahead towards 2026 and beyond. In 2024, we stabilized the business and returned to growth. In 2025, we built on that momentum by growing the top line, strengthening our supply chain, expanding our omnichannel presence, and continuing to invest in our brands. As we enter 2026, we have improved operational discipline, stronger inventory health, and a clear path to accelerating growth and expanding margins. I'm confident the momentum in our business is picking up with first quarter to date net sales growth of mid-single digits driven by growth in our U.S. online channels. Our 2026 strategy remains focused on three core priorities. First, attracting and retaining customers through our direct consumer channels with exclusive trend-driven merchandising and innovative marketing. Second, expanding brand awareness and our total addressable market through physical retail and strategic wholesale partnerships. Third, we remain committed to streamlining our operations and strengthening our financial foundation. As part of this, we are actively embedding AI across the organization to enhance the customer experience and drive operational excellence. Our portfolio model and flexible asset-light technology stack enables us to rapidly test and refine solutions at the brand level, scale what works, and unlock value across the entire platform. We're already seeing measurable impact in product imagery, marketing productivity, and inventory and markdown optimization. These capabilities are already improving conversion, sharpening creative execution, and enabling smarter, faster data-driven decision-making across the business. We expect AI to be a meaningful driver of margin expansion in the coming years, and we're scaling these initiatives with discipline and speed. With that, I'll share highlights from each of our brands and the growth drivers for the coming year. Starting with Princess Polly, our largest brand, which comprises more than half of the portfolio. Princess Polly continues to resonate with next generation customers through its trend-driven merchandising, authentic customer connections, and disciplined social-first marketing approach. I'm confident that there's tremendous runway ahead for continued global growth. As mentioned, in 2025, Princess Polly delivered double-digit net sales growth, driven by the success in both its direct consumer business and its omnichannel expansion. The team continues to execute its test and repeat model with discipline, delivering consistent weekly newness that supports strong full price sell-through. Importantly, the improvements we made to our supply chain position the brand to operate with stronger in-stock levels and capture demand more efficiently in 2026. From a marketing standpoint, Princess Polly continues to meet its customers where they are, maintaining a presence across more than 20 social and digital platforms, complemented by in-store events and broader brand initiatives. TikTok remains an important demand generation channel, and in 2025, the brand increased its focus on TikTok LIVE, creator collaborations, and search-driven discovery, driving stronger engagement and efficient customer acquisition. Beyond its online performance, Princess Polly continued to expand its retail footprint, with results exceeding expectations from both a financial and brand awareness perspective. Princess Polly successfully opened seven new stores in the U.S. in 2025, ending the year with a total of 13 stores in the U.S. As mentioned, the brand opened its first store in Australia in Bondi Beach, Sydney in December. The Bondi store has been very well received and reinforces our confidence that Princess Polly's omnichannel strategy resonates well globally. Princess Polly's wholesale business also continued to perform well in the fourth quarter, further expanding brand reach and reinforcing our strategy of meeting customers wherever they choose to shop. Princess Polly will continue to expand and optimize its TikTok shop and wholesale partnerships, ensuring strong brand presentation across key retail partners. Looking at 2026, Princess Polly has a clear runway for sustained global growth, supported by several strategic initiatives. The brand will continue to fuel e-commerce growth by refining its test and repeat strategy and reinforcing brand and product storytelling. Princess Polly will deliver consistent newness, focusing on proven best-selling party styles, while also expanding its casual and basic categories to increase share of wallet. From a marketing perspective, the brand will prioritize influencer-led content and product storytelling across social platforms to drive engagement and full price demand. Princess Polly will continue expanding its U.S. retail footprint with eight new store leases fully executed and additional locations expected to be announced throughout the year. As shared in a related press release today, store openings in the second half of 2026 include Houston and Frisco in Texas, Orlando, Florida, and Edina, Minnesota. Locations in Jacksonville and Boca Raton in Florida, Nashville, Tennessee, Charlotte, North Carolina, planned for early 2027. While the existing fleet continues to meet our profitability and payback expectations, driving solid forward profitability, each new opening provides an opportunity to further refine execution and enhance store productivity. Lastly, Princess Polly is beginning to lay the foundation for international growth to broaden reach and expand its global presence. Later this month, in partnership with a third-party logistics provider, Princess Polly will unlock distribution in the U.K., improving customer lead times and enhancing the overall experience in the region. This establishes the operational foundation for moderate growth in the U.K. in 2026, with further expansion in the coming years. Turning now to our other women's brand, Petal and Pup. The brand continues to resonate with its core customer through a curated assortment of trend-forward, feminine, occasion-driven styles at accessible price points. In 2025, Petal and Pup delivered solid performance, supported by continued strength in dresses and event wear, while broadening its assortment to capture more everyday demand and repeat purchases. Brand's growing wholesale presence, particularly at Nordstrom, exceeded expectations. Petal and Pup has established a meaningful presence within Nordstrom transaction across all categories, with particular strength in dresses and more casual styles, expanding brand awareness and introducing new customers to the brand. In the fourth quarter, Petal and Pup successfully launched on the rental platform Nuuly, Nykaa Fashion in India and Australian department store, David Jones. With strong initial results out of the gates and plans to further expand on each of these platforms are already underway. Looking ahead to 2026, the focus remains on deepening product differentiation and strengthening brand equity. Petal and Pup will continue to expand its range with a clear emphasis on outfitting its core customer across every aspect of her life. This includes a stronger push into casual wear and elevated separates, particularly tops and knitwear, to complement the brand's established strength in dresses. By building a more balanced and versatile assortment, the brand aims to drive increased repeat rate over time. This strategy will be underpinned by a continued commitment to enhance quality, compelling price points, effortless outfitting, and trend-led perspective. Petal and Pup is also elevating its brand storytelling and community engagement, shifting beyond purely product-led campaigns towards more cohesive and authentic brand narratives. The recent refresh of its branding, website, and visual identity supports this evolution. Alongside the launch of an evergreen brand campaign across social channels and key out-of-home placements this month. Omnichannel and international expansion also remains a key growth driver for Petal and Pup. In addition to continued expansion with Nordstrom, Nuuly and existing partners, Petal and Pup will launch with Dillard's, Von Maur, and select independent boutiques in 2026, further extending its reach and awareness in the U.S. market. I'm confident that Petal and Pup is well-positioned for continued growth in 2026 as it strengthens its assortment and expands its reach. Turning now to our streetwear brands. Culture Kings remains one of the most distinctive experiential retail concepts in the market, blending global streetwear, music, sports, and culture into a highly immersive customer experience. In 2025, the focus was on strengthening the fundamentals of the business in both the U.S. and Australia to position the brand for accelerated growth in 2026 and beyond. Culture Kings exclusively designed in-house brands are a key differentiator and central to its growth strategy. In 2025, the company intensified its focus on this portfolio, including brands such as mnml, Loiter, 73Studio, Carré, Saint Morta, and American Thrift, by evolving its merchandising approach, relaunching priority brands, and elevating product quality. Investments in Loiter drove double-digit revenue and gross profit dollar growth in 2025, validating the strategy. Building on that momentum, 73Studio and American Thrift were relaunched in the fourth quarter with a refined design direction and stronger go-to-market execution. Early sell-through and improved new style velocity from the refreshed brands has been encouraging, reinforcing confidence in the own brand strategy heading into 2026. Own brand penetration is expected to continue expanding, supported by faster product cycles, tighter assortment, and a clear brand point of view. This more focused product strategy is designed to drive stronger full price sell-through and support margin expansion in the year ahead. In addition to the in-house brands, Culture Kings continues to enhance its third-party assortment from leading national headwear and footwear brands such as New Era, ASICS, Adidas, and more to complete the streetwear outfit. Beyond its online channel, Culture Kings' retail footprint and retail-tainment ethos remain central to the model. The stores, including the Las Vegas flagship and nine locations across Australia and New Zealand, serve as meaningful revenue drivers and powerful marketing engines. Each location delivers a differentiated and immersive experience that builds loyalty, drives customer acquisition, and reinforces the brand authority in streetwear. In the fourth quarter, the team relocated the Brisbane store into a newly renovated 5,000 sq ft format designed to serve as a more productive and repeatable model. While the store retains high impact features such as the hat wall and half basketball court, the format is being tested as a prototype for future U.S. expansion. Early results have been encouraging, and the learnings from Brisbane will directly inform the next phase of U.S. store growth. We're actively pursuing a location for the second U.S. store, and we'll provide updates on future calls. Looking ahead to 2026, I'm confident that Culture Kings is set up for success. With operational improvements in the rearview, a healthier inventory position, strong and accelerating performance at its in-house brands, and more stores on the horizon. I'm encouraged by the progress and excited for the future. Before I turn it over to Kevin, I want to again express my gratitude to our incredible team. The past year required agility, resilience, and an unwavering focus on execution. Our teams across all functions rose to the challenge, successfully navigating the supply chain transformation while continuing to deliver compelling products and experiences to our customers. I'm confident that we have the right operational foundation, the right team, and the right strategic priorities to drive accelerating growth in 2026 and beyond. With that, I'll turn it over to Kevin. Thanks, Ciaran. Turning to our financial results for the fourth quarter. Net sales increased 3.1% to $164 million, in line with our guidance. As we noted on our third quarter call, due to the accelerated supply chain transition, we entered October with meaningful out-of-stock positions in key best-selling styles, which limited sales in the early part of the quarter. Inventory levels stabilized as we moved through the quarter, and we ramped up our marketing engine to regain sales momentum. Net sales in Australia were also in line with expectations, increasing 1.6% to $58.1 million. As Ciaran mentioned, we entered 2026 with strong momentum, with first quarter -to -date net sales growth in the mid single digits. As a reminder, as we continue expanding across channels, the shape of the P&L will continue to evolve, though we expect overall margin dollars to increase as we pursue the growth opportunity ahead of us. Total orders were 2.2 million, up 6.4% year-over-year. Trailing 12-month active customers, excluding wholesale, were 4.18 million, compared to 4.07 million a year ago, and average order value was $76, down 2.6% year-over-year. Turning to our profitability metrics. Gross margin declined 30 basis points to 55.6% compared to 55.9% last year, reflecting the impact of the out of stocks and best sellers in October, partially offset by a higher mix of retail stores. Selling expenses were $51 million, or 31% of net sales, reflecting the retail footprint expansion and one-time fulfillment charges. Marketing expense was $20.5 million, or 12.5% of net sales. General and administrative expenses were $30.3 million, or 18.5% of net sales. G&A expenses increased year-over-year, primarily due to charges for a non-recurring legal matter, as well as an increase in headcount to support our channel expansion strategy. We delivered adjusted EBITDA of $2.5 million, or 1.5% of net sales. For the full year, net sales increased 4.4% to $600 million, in line with our expectations, and compared to $574.7 million a year ago. On a constant currency basis, net sales increased 5%. Adjusted EBITDA for the year was $19.7 million, or 3.3% of net sales, compared to $23.3 million or 4.1% of net sales a year ago, as tariffs and inventory disruptions pressured results. As Ciaran mentioned, the tariff headwinds, partially offset by our mitigation efforts, negatively impacted margin by approximately 100 basis points. Turning to the balance sheet, we ended the year with $20.3 million in cash and cash equivalents, compared to $24.2 million at the end of the fourth quarter of 2024. Debt at the end of the quarter was $111.1 million, compared to $111.7 million at the end of the fourth quarter of 2024. As a reminder, we successfully refinanced our debt in October and extended the maturity to 2028. As Ciaran mentioned, we're really pleased with the progress we've made improving the quality and quantity of our inventory. We ended the quarter with $86.2 million in inventory, down 10% compared to $95.8 million at the end of the fourth quarter of 2024. Turning now to our outlook. We are entering 2026 with momentum and a stronger operating foundation. Our outlook is based on the tariff rates in place exiting 2025 and does not include the impact of any potential refunds as a result of the Supreme Court's decision to overturn the IEEPA tariffs. For fiscal 2026, we expect net sales to be between $625 million-$635 million, representing growth of 4.2%-5.8%. We expect adjusted EBITDA of between $27 million and $29 million. For modeling purposes, we anticipate fiscal 2026 stock-based compensation of approximately $6.5 million-$7 million, depreciation and amortization expense of roughly $20 million-$21 million, interest and other expense of approximately $16 million-$18 million, an effective tax rate of -10%, CapEx between $18 million-$20 million, and weighted average diluted share count of approximately $11 million. For the first quarter, as mentioned, quarter-to-date net sales growth is tracking mid single-digits, with strength on our online channels in the U.S. As a reminder, in March of last year, Princess Polly and Petal and Pup launched across all Nordstrom stores, creating a more challenging wholesale comparison as we progress through the quarter. For the first quarter, we expect net sales to be between $130 million and $132 million, reflecting a low single-digit growth rate. For modeling purposes, for Q2 through Q4, we expect high single-digit growth on a two-year stack. Due to the timing of tariff impacts, adjusted EBITDA comparisons will be more challenging in the first quarter before normalizing in the second quarter. We expect adjusted EBITDA between $1.5 million and $2 million in the first quarter. For modeling purposes, for Q2 and Q3, we expect an EBITDA margin expansion of about 100 basis points and a larger expansion in Q4 compared to the same period last year. In closing, entering 2026, the business is operating from a position of greater strength. The progress we made in 2025 across supply chain diversification, inventory discipline, and omnichannel expansion has positioned the business to accelerate growth and improve profitability in the year ahead. As a result, we believe 2026 represents an inflection point for the company with clear drivers to support top line growth and margin expansion. With that, we'll open the call for questions. Thank you. We will now be conducting a question-and-answer session. If you would like to ask a question, please press star and the one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star and the two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment while we poll for questions. Our first question comes from Ryan Meyers with Lake Street Capital. You may proceed with your question. Hey, guys. Thanks for taking my questions. first off, just thinking about the EBITDA guide for 2026. Obviously a pretty significant step up here from what you guys reported in 2025. Can you just walk us through kind of the key drivers of that? Is most of that coming from the gross margin side? You know, are we seeing any operating expense leverage? Then are there any, you know, lower non-recurring costs? Just kind of bridge that gap for us would be helpful. Yeah. Thanks, Ryan, for the question. Yeah, you know, we're coming out of the quarter with good momentum. You know, that strong performance for the year, the over 4% growth, 5% on a constant currency basis. We've mentioned we've seen mid-single digit growth so far in Q1. You know, the guide for the year on the top line is that sort of mid-single digits. Then from a profit perspective, we mentioned, you know, EBITDA, we expect over the entire year about 120 basis points of EBITDA expansion. I would say the bulk of that, Ryan, comes from gross margin. You know, we mentioned the headwind of the 100 basis points in gross margin in FY 2025, so we'll be moving past that in the year. We're finishing inventory in a really strong position, down 10% year-over-year and down 10% sequentially. We're feeling great about that. We'll have some channel mix impact in the gross margin as well. The balance of the EBITDA improvement will come across the rest of the operating expense lines. As mentioned, we'll continue to see the shape of the P&L move as we, you know, as the channels change shape of the P&L. Overall, feel really good about that guidance. On the non-recurring charges, no, not really anything of note for the guide for FY 2026. Okay, got it. Just switching to the retail business. You know, can you guys tell us what percentage of the revenue mix now does come from retail? Obviously pretty significant store openings in 2025, expected again here in 2026. You know, is that starting to become a more meaningful percentage of the overall revenue mix? You know, how should we think about the growth of the stores or the revenue growth at the stores, relative to the direct-to-consumer business? Is the growth outpacing that there? Just, you know, any more details on that as it's becoming a larger portion of the business. Yeah. Ryan, this is Ciaran. We are really happy with the store performance. You know, I think for us, seeing really good productivity on a sq ft, in the Princess Polly stores, you know, also really strong four-wall profitability. I think, you know, really feel good about the opportunity that we have to continue to lean into stores. You know, with now 13 open in the U.S., which is great progress. You know, as we mentioned, signed eight more leases, I would say kind of four to five of them will open in FY 2026. You know, we're gonna continue to lean into the opportunity that we have at the stores. I think, you know, tremendous growth. It's also great for us, you know, bringing in new customers. We're also seeing a nice halo effect from the online business or to the online business from the store. I think just kind of more and more ahead of us. Got it. Thank you for taking my questions. The next question comes from the line of Dana Telsey with Telsey Group. You may proceed with your question. Hi, good afternoon, everyone. As you think about the Princess Polly business and the opening of the eight stores, how do you envision the business retail versus wholesale, your direct online? What do you want the complexion to look like? Can you talk about what the gross margin differentials is between? Thank you. Yeah, sure, Dana. Look, I think there is tremendous opportunity. Just as a reminder, you know, Princess Polly is about, you know, half the revenue for the group at the moment. You know, 13 stores open. Also a great presence in Nordstrom across all Nordstrom stores in the U.S., just like the Petal and Pup brand has. You know, seeing really good response rate really across all of the channels for new and existing customers. I think, look, from a long-term perspective, you know, we're gonna continue to, you know, to grow the online business. We think we are still have a lot of opportunity there. Obviously from a wholesale and stores perspective, we are, you know, extremely early. I think, as it relate to those, I would see the more focus from the Polly team is on opening stores and building out that store footprint. You know, I would say on the Petal team, they're more focused on the wholesale opportunity in front of them, and we mentioned a few of the new partners that they have this year and coming in 2026. You know, from a margin perspective, I would say, look, it's all, you know, they're all profitable channels. They're all bringing new customers. You know, we do see gross margins a little bit higher in the stores than online as the stores are a little bit less promotional at this stage. Obviously, gross margin's lower in the wholesale channel, but, you know, very limited selling expenses, marketing in those channels as well. Kind of on a contribution profit basis, pretty similar across them all, really gives us confidence to our ability to push into them all and that they'll all be margin accretive. Just lastly, the shaping of the year. How are you thinking of the cadence with top line and adjusted EBITDA, given the lapping of tariffs and the supply chain transition that you had? Thank you. Yeah, Dana. From a top line perspective, we've talked about that sort of mid-single digit growth for the full year and the guide for FY 2026. As you alluded to, there's definitely a lot of disruption with the tariffs and supply chain issues in FY 2025 that sort of disrupts our normal cadence. That's why we're guiding from a top line perspective, the growth from Q2 through Q4 on a two-year stack, it's sort of that high single digit perspective. We mentioned EBITDA over the balance of the year, expanding about 120 basis points with that really picking up in Q2. Q2 and Q3 look very similar, and will be about 100 basis points higher than FY 2025, with a little bit of a larger impact in Q4. Thank you. The next question comes from the line of Eric Beder with SCC Research. Please proceed with your question. Good afternoon. Can you talk a little bit, I know, a little bit about the inventories here, but that's a really nice number, down 10%? I'm assuming given the tariffs that, skew count, that's down even more. Is that something that, you know, what we should be thinking about that going forward for this year, given the, kind of ups and downs in the tariffs last year? Yeah, Eric, I think, you know, really, really good to see kind of inventory down 10%, you know, and doing that in a period where we're, you know, growing the overall business up 4.4% for the year, you know, and in a period when such progress on diversifying our sourcing last year as well. You know, I would say a big driver of that change in inventory is just the progress we've made at the Culture Kings business and moving them onto test and repeat. You know, it's a slow build to change that and kind of such a transformational difference for the group. I think the leadership team that's, you know, been in there now for 12 months and longer have just made huge progress, and that's a big driver of the inventory change. I think, you know, look, I think philosophically, we always want to, you know, have lower inventory growth and sales growth, and that's how we're looking to go through this year. Okay. Australia, New Zealand, full quarter, four quarters of growth here. You know, is this market back? How can you leverage that even more now that pretty much the inventories have been cleaned up and some of the other positives have rolled through there? Yeah. It is great to see four quarters in a row of growth in the Australia region. I think, you know, look, Petal and Pup and Princess Polly have been doing well there because they have been on that test and repeat model. I think now that Culture Kings is and the new leadership and kind of ways of working that the team has there, we're really seeing progress there. We're seeing, you know, real improvements in productivity for new products and new SKUs that we're bringing in. I think there's, you know, back to growth there is great. You know, also as we talked about, we opened and, well, we relocated a store in Brisbane for Culture Kings, you know, down at a 5,000 sq ft kinda size. It's a new model that we can, you know, testing there. We can do that quickly and then leverage the rollout in the U.S. You know, I think for us, we are expecting moderate growth in Australia, but I think, you know, glad that it's back to growth and will be consistently there. Just to follow up on that, what is the average size of the Culture Kings stores outside of the Brisbane store in Australia and New Zealand? Yeah. Traditionally they were more in that kind of 8 00 sq ft- 1,000 sq ft size. As a reminder, you know, the Vegas store in the U.S. is bigger again. For us really figuring out as we look to scale in the U.S., how do we retain those key aspects of the retailtainment that is just core to Culture Kings, sets it apart from anybody else out there, and is really the opportunity for us to show off the great one key brands that we have in that business. Look, you know, we're fortunate that you can test a bit quicker down in Australia from a store side and also, you know, being the off season there, it does give us a good view into what should be best sellers in the U.S. going forward. Great. Thank you. Our last question comes from Ashley Owens with KeyBanc Capital Markets. Please proceed. Hi. Great. Thanks so much. Maybe to start, and correct me if I'm wrong, but I believe I heard that the 1Q quarter -to -date growth has been mid-single digits. Can you just provide more detail as to what's shaping the key assumptions driving deceleration from current trends in the quarter and maybe from a brand perspective, where that moderation is coming from or if this is just general conservatism built in? Yeah. Hey, Ashley. Yeah, you know, good observation. Yeah, we've seen, you know, strong mid-single digit growth so far in the quarter, and that's largely coming from the U.S. online business, which is great to see. Just as a reminder, we launched in all the Nordstrom stores, for both Polly and Pedal in March of 2025, That's what's driving kind of that more difficult comp as we move through the quarter and kind of explains where we're guided for Q1. Okay. That's super helpful. Maybe just to follow up, thinking about some of the other drivers of growth in 2026, how we should break this down or balance between order growth and AOV as the primary drivers. I know AOV was declining in through the first half of the year. We're also lapping really strong order volume in 2Q and then a little bit in 3Q as well. Just any insight there would be helpful. Thank you. Yeah, for sure, you know, from a, you know, we're pleased really to see in the year, that growth in our active customers as well as that strong growth in orders. Q4 order growth was over 6%, that's really what drove the top line performance. you know, listen, like with our evolving channel mix, we're gonna see some up and down in the AOV, we've got channels like wholesale will drive the AOV up. We've got other channels like TikTok and new categories that will drive the opposite. We've modeled AOV flat for FY 2026 with the top line growth really coming from growth in orders. Great. Thank you so much. Ladies and gentlemen, this now concludes our question and answer session and does conclude today's conference as well. Thank you for your participation. Please disconnect your lines and have a wonderful day.