Greetings, ladies and gentlemen, and welcome to the Inter Parfums Fourth Quarter 2021 Conference Call and Webcast. 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 zero on your telephone keypad. Please note that this call is being recorded. I will now turn the call over to Russell Greenberg, Executive Vice President and Chief Financial Officer for Inter Parfums. Mr. Greenberg, you may begin. Thank you. Good morning and welcome to our 2021 year-end conference call. As always, this conference call may contain forward-looking statements which involve known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from projected results. These factors include, but are not limited to, the risks and uncertainties discussed under the headings "Forward-Looking Statements" and "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31st, 2021 and other reports we file from time to time with the Securities and Exchange Commission. We do not intend to and undertake no duty to update the information discussed. When we refer to our European-based operations, we are primarily talking about sales of prestige fragrance products managed through our 73%-owned French subsidiary, Inter Parfums SA. When we discuss our U.S.-based operations, we are primarily referring to sales of prestige fragrance products managed through our wholly-owned domestic subsidiaries. Following up on yesterday's news release, 2021 was the best year in our 33 years as a public company. Over the course of the year, our sales exceeded expectations in every quarter, leading to record net sales of $879.5 million, up 23% from 2019 and up 63% from 2020. Moreover, as compared to 2019, our earnings per share rose 45% to $2.75. As we discussed on our last conference call when we announced initial guidance for 2021 back in November of 2020, it was a lack of visibility, not modesty or conservatism, that led us to forecast around $615 million in net sales and $1.22 in EPS. While we were delighted by the upside surprise in orders throughout the year, we were even more delighted that we were sufficiently prepared to produce and ship the goods, despite the continuation of the COVID pandemic and the supply chain disruptions that have ensued. I just want to go back to a few points raised when we announced our 2021 third quarter results. At that time, we stated that one of the main reasons why third quarter sales were much better than expected was because customers shifted some of their deliveries from Q4 into Q3 in fear of supply chain disruptions that might hurt their holiday season business. As a consequence, our third quarter advertising and promotion expenses were disproportionately low relative to sales and wound up with nearly a 26% operating margin. As unusual as the third quarter was, the fourth quarter was equally unusual, but in a completely different way. If you've been following our company for any length of time, you will know that historically, our spend on advertising and promotion is heavily weighted to the fourth quarter because it encourages holiday season sell-through and follow-on orders in the new year. In 2021, the fourth quarter spend on advertising and promotional items was exceptional, 36% of net sales because we attempted to reach our target spend of 21% of net sales for the full year. Despite the major advertising programs executed in connection with the large number of new product launches, we were only at 14% of net sales for the first nine months of 2021, and we reached 20% for the full year. The big spend on advertising promotion in the fourth quarter, coupled with deliveries shifting from Q4 to Q3, explains the modest loss in the final quarter of the year. Back to a discussion for the full year. For European-based operations, gross profit margins were 67%, 64% and 66% in 2021, 2020 and 2019 respectively. Distribution in the U.S. for products that are sold by our European-based operations is handled by a 100% owned distribution subsidiary. As such, those sales are direct to retailers and result in higher margins. Net sales of our U.S. distribution subsidiary increased 86% in 2021 as compared to 2020. This is what gave rise to the increase in our gross margin in 2021. The launch of new products, including Montblanc Explorer Ultra Blue, I Want Choo by Jimmy Choo, Coach Dreams Sunset, Fleur de Peau, Rochas Girl, and Kate Spade New York, also generated higher selling prices and higher gross margins. The weak dollar relative to the euro, as always, has a margin-depressing effect, which partially offset some of the margin-enhancing effect from the other inputs I just mentioned. For U.S. operations, gross profit margin was 53%, 52%, and 53% in 2021, 2020, and 2019 respectively. The 2021 rollout of new products for several of our brands, including GUESS, Anna Sui, and Oscar de la Renta, and very importantly, MCM, help boost our gross margins. As noted, new products have been generating margins in the United States. SG&A expense as a percent of net sales was 46% in 2021 and 48% in both 2020 and 2019. The decline in 2021 was primarily due to lower-than-planned promotion and advertising expenses that were caused by higher-than-expected sales increase. Our operating margins came in at 17% in 2021, compared to 13% in 2020 and 15% in 2019. We closed the year with working capital of EUR 465 million, including approximately EUR 320 million in cash equivalents, and short-term investments. We had a working capital ratio of 2.9 to 1. The EUR 133 million of long-term debt relates to our Inter Parfums SA new headquarters in Paris, and the acquisition of those headquarters. Cash provided by operating activities aggregated EUR 120 million for 2021, and that compares to EUR 65 million in 2020. At year-end, inventory stood at nearly EUR 200 million compared to EUR 160 million at year-end 2020. Some other financial points worth mentioning. In our release, we said that 2021 was a highly productive year. Measured in sales per employee, of which we have 467, that translates into $1.9 million in sales per employee. In addition, despite the stellar growth in our business, our 2021 CapEx was a modest $5 million. As we announced yesterday, our board of directors approved a 100% increase in our annual cash dividend rate to $2 per share, of course, payable quarterly. You will recall our board had suspended the cash dividend in 2020 during the height of the COVID-19 pandemic, when the rate was $1.32 per share. Then we reinstituted it last February at $1 per share. Our board made this decision in recognition of the excellent prospects for 2022 and for the coming years, combined with our strong financial position, all of which enables us to grow internally and judiciously invest in new opportunities while rewarding our shareholders. Yesterday, we affirmed our 2022 guidance, calling for net sales of $975 million, resulting in earnings per share of $3 per share. With the usual caveats about the average dollar-euro exchange rate and the COVID-19 pandemic. We also added a third caveat, namely, the financial impact from the geopolitical situation in Eastern Europe. On the latter point, beyond the human toll that the tragic war between Russia and Ukraine is taking, business of all kinds will be affected, including ours. The magnitude of the business impact due to war, sanctions, and price volatility is hard to predict. As per our 10-K in 2021, our sales in Russia totaled $43.4 million or a little bit under 5%. I will turn the call over to Jean. Thank you, Russ, and good morning, everyone. I know we highlighted the many achievements of the past year in the press release we issued yesterday. Record financial results, the addition of several important new brands, the successful execution of major product launches, the acquisition of our new headquarters in Paris, and the establishment of a new Italian subsidiary among them. There is another accomplishment that delights me just as much, namely market share gains. That certainly happened in 2021, when our sales grew by 63% or three times the 21% industry estimate quoted in WWD daily publication last month. The 2021 growth rate for fragrance, which barely moved the needle in past years, far outpaced skincare and makeup. The timing couldn't be better because our business is nearly 100% fragrance. Rather than diluting our concentration into other aspects of the beauty business, we are laser-focused on fragrance, growing our existing brands and new ones still to come. One of the reasons why fragrance sales are on fire is an outgrowth of a pandemic in which something extraordinary happened, especially in the U.S., where in the past, consumers bought and wear fragrance when they left home. During the isolation of COVID-19, consumers increasingly bought fragrance to wear at home, to feel good about themselves, and as a personal self-indulgence. They purchased fragrance online more than ever, and they experimented with different scents. Happily, this trend has traction and is showing no signs of relenting. Another favorable trend that we see developing is the strong interest by young customers in China who are creating fragrance wardrobes around their favorite high-end niche brands, as exemplified for us in Ferragamo, Moncler, and Van Cleef & Arpels. We have and will continue to devote advertising and promotional dollars to attract and retain that expanding market. By the way, when we talk about advertising and promotional dollars, about 80% or more of that is in non-traditional media. We're talking about digital ads, social media like Instagram, Snapchat, TikTok, and WeChat, influencers in the beauty, music, actors, and sports fields, as well as TV and billboards. Far this year, we are feeling continued pressure for sourcing components and finished products. In general, we are taking the steps we deem necessary to have sufficient inventory to meet our sales goals for 2021, 2022, I'm sorry, and beyond. As we have stated, we have been carrying more inventory overall. We had also sourcing similar components from multiple suppliers, and when possible, manufacturing products closer to where they are sold. We have had to become better forecasters of future needs, as some items require almost a one-year lead time. At the same time, we have been investing in more sophisticated inventory management systems and added more people to the inventory management function. In that regard, our U.S. distribution subsidiary for European-based product has encountered some shipping-related issues following a change in the distribution software by the partner. It should be resolved soon, but 2022 first quarter U.S. sales could be impacted. As planned, our operations in Italy have helped mitigate some of the supply chain disruptions. For example, the labor shortage in the U.S. and France are far less a factor in Italy. We are moving some of our manufacturing to Italy. Well beyond our Ferragamo business, Italy is playing an important role as a point manufacturing and distribution. Supply chain disruptions have, and for the foreseeable future, will have an impact on costs in raw materials such as glass, cardboard, wood, and aluminum, plus rising energy costs, and of course, shipping costs. Some items have increased only 5%-10%; other items have doubled in price. On January 1 of this year, we enacted price increases ranging from 3%-5%, and another price increase of a similar magnitude will be enacted in August. As we approach $1 billion in annual sales, we have conducted a self-examination in all functions. In addition to rectifying shortcomings in inventory management that I just mentioned, we have elevated HR to a C-level and recruited a chief human resources officer reporting directly to me. Attracting and retaining the best talent throughout our operation is as important as new product launches are to our future success. 2022 is poised to be another record year. The official launch of scents for Moncler, the Moncler pour Homme and Moncler pour Femme, has begun, and the rollout will ultimately reach 3,000 doors. We have major new men's fragrance launches for Coach with Open Road, for GUESS with Homme, and for Boucheron with Singulier. Most of the new product launches are brand extension of strong-selling lines. For example, Montblanc is adding this quarter Legend Red, Jimmy Choo is adding I Want Choo Forever. We have also new sister scents coming to market for Guess Bella Vita, Lanvin Eclat d'Arpège, Kate Spade New York, Rochas Girl, Anna Sui, Oscar, et cetera. We will also have sales of Ferragamo fragrance for the full year as opposed to three months last year. Donna Karan and DKNY fragrance will start on July 1 of this year. With no significant Ferragamo fragrance are being sourced and produced in Italy, and the brand's travel amenities business continues uninterrupted. To keep consumers, retailers, and distributors engaged with the brand, we have extension unveiling for the Signorina and Bright Leather collection later this year. A new pillar is being readied for fall 2023, beginning of 2024. Among our objectives for Ferragamo is to streamline distribution, elevate brand perception, and to establish a clear business focus regarding brand market distribution and investment. While the outlook for our business in 2022 is exceedingly good, there may be further upside as international travel resumes in earnest, supply chain disruptions are largely behind us, and the spread of COVID-19 wanes. Of course, the duration and impact of the heartbreaking war in Eastern Europe is a big unknown. If you have questions, I will be happy to answer after. We remain on the lookout for additional brands. Our targets are names with established business rather than startups. That said, we are also open to ideas with great potential. That could be said about MCM in 2021, and back in time, Jimmy Choo, neither of which had established fragrance business when we teamed up. In 2021, MCM blew through our sales budget three times over. Now Jimmy Choo is our second-largest brand. Italian fashion brands are a priority for us, both ones with established fragrance business and fragrance often. I was in Milan last week for Fashion Week, exploring potential opportunities. Finally, many of our existing licensors have multiple brands under their control, and they may seek to have us partner with them on several of their brands. That brings me to what makes Inter Parfums an attractive partner for brand owners. As we have said before, we are small, but not too small, so that we are able to devote the attention and resources necessary to grow a licensor's fragrance business, which translate into higher royalties and broader brand recognition. Brand owners value the fact that we are a pure play in fragrance. Our distribution network has deep roots in 120 countries with expertise in their local market. Inter Parfums also has a very strong balance sheet. We don't need to raise money to execute any business plans. Our new Paris headquarters will be operational end of this month, giving us greater brand capacity and enhanced coordination of our teams. As I just mentioned, our office in Florence is now fully functional and ready to support and optimize the fragrance potential of possible additional brands. Now, operators, you can open the lines for questions. Thank you. Ladies and gentlemen, at this time, we'll conduct our question and answer session. To ask a question, please press star one on your telephone keypad. A confirmation tone will indicate that your line is in the question queue. You may press the star key followed by the number 2 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. Our first question comes from Linda Bolton-Weiser with D.A. Davidson. Please state your question. Yes. Hi, good morning. Well, congratulations on a great year. I would agree, your business is the strongest I've ever seen it in all these years. Thank you a great story. I guess I just want to start out by asking about Russia, because you do have a little bit more exposure than some of the other companies we cover. What are you seeing right now? Are you still shipping to Russia? Can you remind us, do you use a distributor there? Can you just kind of give us what you're seeing right now? Yeah. Of course. The question, we are using a distributor, and the distributor that we are using is owned by a major retailer called L'Etoile, that has 45% market share in Russia. L'Etoile owns more than 1,000 stores, and all our products are sold in L'Etoile. As Russ said in his remarks, sales in Russia for 2021 represented, Russ, you said $40 million, something like that? Yeah, about $43 million. $43 million. A little less than 5%. In our projections, we are comfortable with the numbers in our guidance. We think that we will not be able to ship as much as last year. We have shipped already in January and February, a good amount of products to Russia. We will have to think that this will have to stop. For how long, we don't know. Is it three months, six months, the whole year, two years? Honestly, nobody knows. When I spoke to Russia yesterday, there were a lot of people in the stores buying products. The devaluation of the ruble has not been seen by any customers yet. Of course, it's a main concern for the company. Russ, you want to add something? No, I think we're approaching it very cautiously. We are monitoring the situation. As Jean indicated, we've revisited our budgets, and we're still comfortable with our overall projections. It is something that has to be monitored on almost a daily basis. We are working with our distributor and with our sales teams to make sure that we have as much information as we possibly can. Another thing also, as we are reducing our forecast for shipments in Russia, we are going to, of course, reduce our advertising expenditure in Russia. I'm thinking of couple of TV campaigns that were supposed to happen this year that we have put on hold for now. It's a pity because we had a good position in Russia. We had some important launch. Ferragamo has a good positioning in Russia. If the business is interrupted, we'll have to wait. What is your biggest- Yeah. -brand in Russia besides Ferragamo? Lanvin is number one. Jimmy Choo, then Ferragamo, then Guess. Okay. Thank you. Thank you. Can I just ask about the pricing? You gave a lot of details on that, and so you've got another round coming in August. I'm curious if you've already announced that to customers, and if so, do you think that's going to pull forward some sales as they try to buy ahead of that price increase in the first half of the year? This is a very good question. When we announced the price increase that will happen in January of this year, when we announced that six months before the price increase, we had certain people who wanted to buy in advance, and we refused to ship to a level that is higher than normal. It will happen again, and we will monitor that carefully. Basically, let's not forget that we still have a lot of supply chain issue. The idea is not to overstock anybody. Right now, the inventory is fierce. We have to be very smart on where we put this inventory. I will not accept for people to pile up on inventory in order to avoid the price increase or something like that. It could happen. Not too many people had a problem with the price increase. Let's not forget that it's the first price increase that we've done in at least five or six years. Our products are still positioned at a retail price that is a little bit lower than the competition. We do not feel any problems. It was absolutely accepted by all our partners, retailers, or distributors. Great. Just one last one from me. I was just curious about the gross margin. Why was it down year-over-year and down versus third quarter? Why was that? I thought the direct distributors would help the gross margin, and that would be sustainable. The gross margin was 63% for the year, for 2021, which was higher than 2020. Russ, you want to go in the details of the quarters? With respect to the margins, our margins have been consistently better pretty much quarter-by-quarter. When you look at the fourth quarter itself, there is a slight decline in the total from 64 to just about 63, a little bit under 63. A lot of that is really just timing and mix of product. When you're analyzing it and getting that close, it's very difficult. Most of the shipping activity from the U.S. distribution subsidiary, as I mentioned, its sales were up almost 80%. That is really what was driving the increase in the margin. There is also a little bit of a negative impact because of currency fluctuation. That currency fluctuation really kind of raised its head towards the end of the year. Other than that, I don't really believe I can dissect it any further than that. Yeah, going forward for this year, for 2022, we do not anticipate a margin lower than what we had in 2021. We are working on improving the margins. Russ, you are forecasting, what, a 63% or 64% margin, something like that? Yeah, almost exactly the same as what we have in 2021. Our goal really is to raise the margin in the U.S. to bring that closer and closer to the type of margin that we can see in our European operations. This is underway. I looked at the numbers for the first two months, and in the U.S., where our margin is lower than in Europe, we are doing better in the first two months of this year compared to last year in terms of margin. Yeah. Okay, Linda? Yes. Very good. Thank you very much. Thank you, Linda, for your questions. Next. If we have next. Our next question comes from Wendy Nicholson with Citi. Please go ahead. Hi, guys. Congratulations on an amazing year. I wanted to follow up. I know, Jean, you said you'd been in Milan in the fashion shows, clearly, lots of folks are seeing sort of the great growth in fragrances generally. I just wanted to sort of qualitatively, it looks like you guys have the bandwidth to take on more licenses and maybe acquire some more brands. Are you seeing anything different in the marketplace, sort of either from a royalty payment that the brands are asking for? Because it feels like it could get more competitive in terms of sort of the hunt for more brands, or are you not seeing that right now? No. We see definitely some competition from other players. Let's not forget that we are not the only one, and we are maybe one of the smallest ones. The hunt is on. People are looking for more brands. Groups are looking for more brands. L'Oréal is looking for more brands and other groups also. What I'm selling to this new potential licensor is our success story. We took some brands that were handled by much bigger companies, and we were able to make it much bigger. For instance, Montblanc was with Procter & Gamble, doing $50 million a year. We are now at $150 million. Coach was handled by The Estée Lauder Companies Inc., doing really nothing. Coach is over $100 million under Inter Parfums. Even though some brands were with bigger companies than us, I think that the attention that we can provide will make the difference. This is my pitch to them. I think that Italy has still some fabulous fashion companies that do not have yet fragrance. Again, there is no guarantee, and again, we are not the only company competing for this business. Let's wait and see. I think that the company's enjoying a nice momentum. People feel comfortable. We have also the resources to handle more in New York and in Paris. We can absolutely take one, two, three, four more brands, and still not increase tremendously our G&A. It will be interesting to see what we can do this year. That actually leads me exactly to the second question. Russ, the statistic you threw out in terms of sales per employee is off the charts and fantastic. Is there any part of the organization where you're feeling stretched, whether it's on the distribution side, the sales side, the creative side? Is there any part where because obviously, I think you're a partner of choice because you've been so successful with so many brands, but is there any place where you're feeling stressed or pressured or where you might need to reinvest more? Would it be on the COGS side or on the SG&A side? It's really interesting that you mention that. With the success that we've seen over the last couple of years, especially moving through 2020, and into what is a record year in 2021, human resources has really been a very key focused area. As Jean mentioned in his remarks, we've created a C-level position for human resources here in the United States. Finding qualified people is a very difficult job function today. The world is a different place. We have open positions that we are looking to fill. There are opportunities and although we are hiring and will continue to hire, this is an area that we really need to concentrate on very insightfully. From the U.S. operations business, we've practically doubled the business just in the last couple of years, and the growth trajectory is even greater than that going forward. The human resource element is very important to us. We are really challenged with it and dealing with those challenges on a daily basis. Interesting. Yes, we have increased the human resource also in France. We've increased the department in order to make sure to attract the right talent, to keep the talent. We have also created the HR function in Italy, for the same reasons. Definitely, looking at the people, hiring the right people, strengthening the department. If you ask me, where do we have some stretch, I will say, more in operation than anything, especially in the U.S. Operations are becoming a little complicated, and we are need to have more people, like I mentioned in my remarks, in inventory management and planning. This is key. Also, we are improving our IT systems, making some investments in this department. The idea will be to get ready for the next step. We are, let's say, okay for now, if we want the business to grow above and way above the 1 billion EUR, we'll have to continue to improve. Okay. Perfect. Russ, just last question. I'm sorry. The promotion in advertising as a percentage of sales for 2022. Just the phasing of it. Obviously this year it was heavily weighted to the fourth quarter. Do you think it's still going to be that heavily weighted or are we going to see sort of return to more normal pattern in 2022? Oh, I think it's still going to be heavily weighted in the fourth quarter. Again, because that is the holiday season. Spending in that period not only facilitates your sales for the holiday season, but it also supports your sales coming for the following year. Again, we will target our 21%. That is the target for 2023. I'm sorry, for 2022. It may not be as high as the 36% that we spent in this particular fourth quarter. Certainly will be a relatively high number. Perfect. Okay. Thank you so much. No problem. Thank you, Wendy. Thank you. Our next question comes from Steph Wissink with Jefferies. Please state your question. Thank you. Good morning, everyone. I wanted to just ask a little bit about some of the data statistics we've been seeing out there around some of the more high potency juices outperforming maybe some of the more neutralized fragrances. Talk a little bit about in your portfolio, did you see the same thing? Did you see some of your higher potency perfumes and colognes outperforming the other juices? Secondly, or related to that, any- I'm sorry, I didn't hear. Can you repeat slowly? Yes. Just wondering about within the mix of your fragrance- Yeah business, did you see sales of perfumes and colognes, the more high potency, outperform the eau de parfum versus maybe some of the eau de toilettes? I think some of the industry statistics were saying there was a trade up. Higher potency. Yeah, or higher potency. Yeah. If you could just share a little bit about what's happening within the category, relative to kind of what's happening fragrance versus other categories. Absolutely. It's interesting that you ask this question. Absolutely. The more concentrated, and by the way, more expensive fragrance, are definitely in a higher demand. We see that started actually a year ago, beginning of last year. That's why we are coming up with more eau de parfum or extreme concentration and things like that in order to go after this market, definitely. Any intention to extend some of your fragrance licenses into the home fragrance category? Home fragrance, by extension, we do have some home fragrance business. We do some candles. We make some diffusers. It's not a big business for us, and we make it as a peripheral product to our smell. No, the company does not intend to make it a sub-segment by itself. My last one is really quickly, Jean, you were mentioning that your A&P spend continues to shift more digital, I think in your opening remarks, you also talked about e-commerce was one of the strongest channels. Talk a little bit more about how you expect that to evolve over the next several years. Do you expect brick-and-mortar to gain back some share from commerce, and does that change your marketing budget in terms of where the dollars are spent? Thank you. Yes. Thank you. I think this trend is not going to reverse. It's going to be today, we are at 80% digital and TV. We continue to spend on TV in certain markets. This will continue. We have started also some good business with Amazon, We're advertising also on Amazon, The return on investment is great. I think that these trends are definitely here to stay. We still have to do some work on our penetration on e-commerce. When you put together all the brick-and-mortars partners that have website such as sephora.com or macys.com, you add it to the business that we do with the pure e-commerce player, it's starting to become a very interesting piece of business. We have hired, by the way, people just to take care of this part of the business. That's what I can tell you for now. Very helpful as always. Thank you, everyone. Thank you. Thank you. Our next question comes from Hamed Khorsand with BWS Financial. Please state your question. Hi. Could you just talk about your ad strategy, especially at the beginning of 2022, given that most of your higher degree of spending occurred in Q4, I would expect that you would see some sort of sales benefit in 2022. How are you going to adjust your ad spending given that kind of high degree of spending that happened in Q4? Yeah. Russ, if you want to answer, go ahead. Clearly, one of the reasons for spending as much as we usually do in a normal year in Q4 is not only to drive the holiday season, but also to help drive reorders going into the new year. As we approach, because of the spend that we did at the end of Q4 2021, we're already seeing the benefits from reorders and increased sales just in January and February. We're clearly on target with respect to our internal projections, and clearly it is the spend that we did at the end of 2021 that is driving the increase in that business. As Jean mentioned, too, that there's a greater proportion of our spend is in the digital side. We're dealing with working with influencers, working with other websites like WeChat and Instagram and so on and so forth. This is where we create content so that our customers can actually see and interact, if you will, with the different brands. That happens throughout the year. It's just that there's a much bigger push at the end of the year, because of the holiday season, sales season. I think that we can see just in January, February, and March, we are seeing the positive impact of this overspending that we've done in the last part of 2021. Sales are higher than expected in January and February, higher than projections, and of course, much higher than last year. Definitely we will continue to do this strategy, which is to over-invest in certain markets, and the market that we have chosen is America and China for now. It was Russia as of two weeks ago, but we put Russia on hold. This is where we think we have the best return on investment dollar. Got it. The other follow-up I had was, given your success that you had last year at 19.5%, 20%, any reason to gain a 21% spend? Are you overcrowding the ad market with spending? I don't know. I want absolutely to continue at this level, and why not more? If we're able to increase our gross margin, if we're able to leverage our G&A, I want to spend more and more in advertising. This advertising is insurance that we'll have new customers, that products will gain market share. This is absolutely necessary, and I prefer to spend it than to keep it in our pocket. Let's put it this way. I think that with this type of operating margins that we have now, 16%-17%, it's good enough. Of course, we can always increase, and maybe we'll increase. If we increase, I would like to take some of this increase and put it in advertising. It's working, we shouldn't stop. Absolutely. Great. Thank you. Thank you, Hamed. Thank you. Thank you for your call. Thank you. Is there any other call or any other questions, I mean? Sir, there are no further questions at this time. I'll hand the floor back to you for closing remarks. Thank you. Okay. Thank you. Thank you, operator, and thank you all for tuning in to our conference call. I just want to add that Jean and I will be presenting virtually on March 10th at the D.A. Davidson Consumer Conference, and hopefully we will be live at the Jefferies Consumer Conference, which runs from June 21st and June 22nd in Nantucket. Thank you, Linda and Steph, for those invitations. As usual, if anyone has further questions, please contact me by email. Thank you for joining the call. Stay well and stay safe. Thank you. This concludes today's conference. All parties may disconnect. Have a great day.