Good afternoon, and welcome to Lulus first quarter 2022 earnings conference call. Today's call is being recorded, and we have allocated 1 hour for prepared remarks and Q&A. At this time, I would like to turn the conference over to Naomi Beckman-Straus, General Counsel at Lulus. Thank you. You may begin. Good afternoon, everyone, and thank you for joining us to discuss Lulus first quarter 2022 results. Before we begin, we would like to remind you that this conference call will include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements made on this call that do not relate to matters of historical fact should be considered forward-looking statements, including but not limited to statements regarding management's expectations, plans, strategies, goals and objectives and their implementation. Our future expectations regarding financial results, references to the second quarter ending July 3rd, 2022, and outlook for the year ending January 1, 2023. Market opportunities, product launches and other initiatives, and our growth. These statements, which are subject to various risks, uncertainties, assumptions, and other important factors, could cause our actual results, performance or achievements to differ materially from results, performance or achievements expressed or implied by these statements. These risks, uncertainties and assumptions are detailed in this afternoon's press release, as well as our filings with the SEC, including our annual report on Form 10-K for the fiscal year ended January 2nd, 2022, filed with the SEC on March 31st, 2022, all of which can be found on our website at investors.lulus.com. Any such forward-looking statements represent management's estimates as of the date of this call. While we may elect to update such forward-looking statements at some point in the future, we undertake no obligation to revise or update any forward-looking statements or information except as required by law. During our call today, we will also reference certain non-GAAP financial information, including Adjusted EBITDA, Adjusted EBITDA margin, and net debt. We use non-GAAP measures in some of our financial discussions as we believe they more accurately represent the true operational performance and underlying results of our business. The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for, or superior to the financial information prepared and presented in accordance with GAAP. Our non-GAAP measures may be different from non-GAAP measures used by other companies. Reconciliations of GAAP to non-GAAP measures, as well as the description, limitations, and rationale for using each measure can be found in this afternoon's press release and in our SEC filings. Joining me on the call today is our CEO, David McCreight, our Co-President and CFO, Crystal Landsem, and Co-President and CIO, Mark Vos. Following our prepared remarks, we'll open the call for your questions. With that, I'll turn the call over to David. Thank you, Naomi, and good afternoon, everyone. I'm proud to address you today with my partners and co-presidents, Mark and Crystal. We continue to see significant momentum in our business, and we are extremely pleased with the progress we've made in our first 2 quarters as a public company. As a reminder, since completing our IPO during the fourth quarter of 2021, we have fully paid off our long-term debt and, as a result, have an exceptionally strong balance sheet combined with a healthy cash flow from operations that we believe positions us well to execute on our growth plans. Our LuCrew has done a tremendous job in delighting our customers and executing on our strategy, and the results from the first quarter are a testament to their impactful work. During Q1, we generated nearly $112 million of revenue, representing growth of 62% year-over-year, even as we anniversaried last year's stimulus in the quarter. Our Adjusted EBITDA was $9.9 million versus $5.4 million over the prior year period. We saw excellent growth in active customers in both new and repeat, reaching 3 million in the last 12 months, ended April 3rd, 2022, compared to 1.9 million for the same period last year. We are driving this growth with efficient first order contribution margin, profitable performance marketing spend, and compelling assortments. We were happy to see growth in both new and repeat customers for the quarter. Based on customer demand, the Lulus brand seems robust given the broad strength in our customer-related metrics for Q1, and our marketing efforts and assortments continue to build loyalty and engagement among our brand fans. From a merchandising perspective, we were pleased by the Q1 response to our event offering and more recently to our non-event offering. Our event dressing category remains a pivotal segment of our business, and we saw a meaningful lift in demand driven by in-person events resuming. In non-event categories, our team continues to evolve our offering, planning to increase mind share and occupy more of our closet, which is reflected in our continued double-digit revenue growth in these classes. Data is critical to all our decision-making at LBLU, and we use data insights to optimize almost all elements of our business, particularly in our product creation and curation cycle. Our test learn and reorder approach supports lower markdowns and decreases fashion risks, and we view this as a key differentiator from other companies in the industry. As a reminder, roughly 70% of our revenue is from algorithmic-driven purchasing. A leading indicator of future success for our business model is the number of new products that are tested and adopted for future reorder pipelines. Well, the new product results from Q1 look strong, and our reorder pipeline looks robust, which gives us confidence in achieving our growth targets in 2022 and beyond. These exceptional first quarter results highlight the massive potential of our affordable, fresh fashion model among millennial and Gen Z women. We continue to engage her online through digital channels and social media, as well as on our own platforms through reviews, feedback surveys, and one-on-one interactions with our incredible customer service team. Our LuCrew works every day to make our customer touchpoint special, which ultimately leads to stronger customer engagement and loyalty and increases word-of-mouth introductions to a growing community of Lulus' brand fans. We believe there are vast pools of untapped customers who have yet to meet our brand. By mining insights, learn from our rigorous performance marketing testing, building awareness capability, and encouraging more word-of-mouth introductions, we are optimistic about our growth for years ahead. Analytic data shows that while Millennials remain our largest cohort spend, the rate of adoption by Gen Z gives us confidence in our long runway. We attribute the apparent embrace of Gen Z to the appeal of our product offer and our evolving ability to interact with them in ways and platforms that they find appealing. On supply chain, we are continuing to monitor developments in China, the new coronavirus strains, as well as other supply chain risks. As we've highlighted in prior earnings call, we now place orders about 4-6 weeks earlier than we did during pre-pandemic times to continue meeting our customers' needs, as well as to mitigate pressure and avoid scrambling for costly air freight. As a reminder, this slightly longer lead time does not significantly impact our brand because the vast majority of our orders are for previously tested product. Also, we are not a fast fashion brand, so we have less product trend risk and are therefore less sensitive to a slightly longer lead time. That being said, we have not yet noticed nor been informed of any major changes in our product lead times from prior quarters. As a new company, we've been sharing with you much of the Lulus growth story, our beginnings, our roots in digital and analytics, our passions for our customers. One of the perhaps underappreciated elements of our business model is the resilience. I thought it a good time to highlight today what gives us structural resilience compared to others in our industry. We have a loyal and growing customer following, supported by our accessible price points and affordable luxury positioning, spanning broad range of ages and income levels across Millennials and Gen Z. The durable appeal of our product styling. We are not a fast fashion brand and have a data-driven product development approach which reduces risks. Shifting demand does not always mean massive inventory obsolescence or excessive markdowns. We have a very nimble cost structure in the largest components of our overhead, specifically in marketing and staffing, and in the future, product costs will be further rationalized. We believe we have among the fastest inventory turns in the industry, which enables the ability to flex our position more quickly than most. We have a capital-light model with some periods approaching negative working capital. As a result of the recent debt reduction, we now have a strong balance sheet and are well-positioned to fund continued growth due to our strong free cash flow generation ability. Of course, we are not immune to industry-wide cost pressures in the areas of inflation, labor, materials, shipping, and digital marketing costs throughout all of 2022. The guidance we're providing today incorporates some of those anticipated cost pressures. Our frequent testing indicates we continue to have product pricing power, which we believe provides us with strong gross margin cushion, even with increased inflationary pressures. If inflationary pressures were to move beyond transitory to structural, we still have ample room in our future business model to reduce product costs in 2023 and beyond to offset much of any structural increases. In closing, we are quite pleased with our Q1 results and how Q2, historically our largest and most profitable quarter, is unfolding. Crystal will provide more context in a few minutes. Based on the trends we've seen thus far, we have updated our guidance. We are now raising net revenue growth expectations to 30%-33% growth for FY 2022, and Adjusted EBITDA to reach $50 million-$51 million, even while continuing to invest for future growth and incurring the incremental cost of being a public company. Now I'd like to turn the call over to Mark Vos, our Co-President and Chief Information Officer. He will share with you an update on key operational and analytical efforts to further support our continued growth, as well as increasing customer insight and engagement. I'll let Mark discuss some of those key initiatives with you now in greater detail. Mark? Thank you, David, and thank you everyone for joining us today. Starting with our customers, we are very proud of the record engagement of our repeat customers in Q1. That repeat engagement, together with healthy numbers of new customers acquired in 2021 and in Q1 of 2022, sets us up for continued momentum for the year and beyond. In the 12 months ended April 3rd, 2022, we served 3 million active customers compared to 1.9 million active customers in the 12 months ended April 4, 2021. Record AOV for the quarter, fueled by more items per basket, as well as lower discounts and markdowns, showed our customers growing desire for Lulus assortment. We are very proud of our customer support team that is always 100% focused on providing our customers with the best possible experience, whether we are responding to shipment-related questions or providing style and fit advice. We continue to enjoy strong CSAT or customer satisfaction scores and have improved our already high CSAT scores year-over-year. Top CSAT scores are not only a wonderful measurement of the Lulus brand love we provide our customers, but they are also a leading indicator for high net promoter scores and continued customer word-of-mouth advertising. We are also expanding resource allocation to further improve our customer insights. Lulus is a company that is built on customer feedback, and customer feedback already drives much of our product assortment and our shopping experience. We are in conversations in many channels with our customers every day, and we see more opportunities to share continuous customer insights throughout our organization. By broadening the channels through which we engage with our customers and applying technology to large amounts of conversational, structured, and unstructured data that is collected, we aim to ensure that our customer's voice is and remains central to all Lulus conversations and decisions. In March of 2022, we relaunched our Love Rewards loyalty program. Whereas our previous reward program was a coupon discount program, the new Love Rewards program is focused on rewarding customers for their engagement with Lulus. Customers can earn points through purchases, providing us with first-party data, and following Lulus on various social media channels. Points earned counts towards four customer loyalty levels, and each level has increased customer engagement benefits like priority back in stock notifications and exclusive deals. The flexibility of a points program offers us more ways to deepen the relationship with our customers, to increase a customer's lifetime value, and to occupy a larger share of her closet. Our early reads indicate that the program is off to a strong start with favorable customer engagement trends right off the bat, and we are looking forward to further enhancing our loyalty program in 2022 and beyond. From a marketing perspective, as a reminder, Lulus has been and continues to be first order contribution margin profitable. In other words, our cost of acquiring a new customer is below the first order contribution margin after selling and fulfillment expenses. Despite the changes and challenges that iOS tracking limitations and privacy regulations in general have introduced, Lulus remains effective and efficient in attracting new customers and re-engaging existing customers. Our proprietary datasets, tooling, and analytics have continued to provide us with effective lines of sight on what spend, in which channel for each audience is incrementally beneficial. As a result, our selling and marketing expenses as a percentage of net revenue remains in line with recent years, and we will continue to iterate and adapt to try to keep it that way. Switching to our operations. A key enabler of our affordable luxury positioning and customer delight is continuous improvement in our service levels and efficiency across our supply chain. In Q1, 2022, we successfully and seamlessly transitioned our vendor inbound inventory receiving and product quality control activities from our 3PL partner back in-house. We also improved our shipment efficiency from Southern California to our Northern California and Eastern Pennsylvania fulfillment centers. We have already observed higher units per trailer shipped to our fulfillment centers, which reduces the transportation cost per unit. We also have observed shorter dock to available for sale cycle times, which further improves our in-season selling window and ultimately lowers seasonal markdowns. In the coming quarters, we expect to add additional logistics capabilities to our Southern California facility to further optimize inventory across our entire network, as well as order fulfillment to the California, Arizona, and Nevada regions, thereby improving our service levels while also reducing shipping expenses. In March of 2022, we started our implementation of robotics in our Eastern Pennsylvania fulfillment center. I'm very pleased with our operations team's ability to implement the new robotic system while ramping up into our important spring peak season. To do so without negative impact to our customers. Robotics is already driving productivity gains and is helping us better attract and retain warehouse associates. Recently, we improved our warehouse associate retention rate significantly compared to the same period last year, which also reduces training expenses and loss of new associate productivity, and it also enables us to provide our customers with the high level of service they have come to appreciate from us. With these early successes, we will consider a robotics rollout in our Northern California logistics centers as well, for which we have allocated CapEx budget as reflected in our full year 2022 guidance. Now let me introduce my colleague, Crystal Landsem, Co-President and CFO, who will discuss the quarter in greater detail. Crystal? Thanks, Mark, and good afternoon, everyone. The first quarter of 2022 has been a strong indicator of the robust momentum in our business. As expected, we're pleased to be reporting continued strong financial results. As David mentioned, we delivered an outstanding quarter, highlighted by year-over-year growth across key financial metrics, including net revenue, growth margins, profitability, and cash flows. We also saw a record performance across our customer health metrics as we saw many active customers engaging with us in the first quarter. Our customers continue to engage with us at increasing levels as they return to their busy social calendars and continue to come back to us for their everyday fashion needs, as reflected by the increases in average units per order, average order value, and average spend per customer. During Q1, we grew our net revenue by 62% to $111.9 million, a $42.9 million increase over the same period in the prior year, and the highest net revenue for any quarter in our history. Our top line growth continues to be driven by the combination of new customers acquired and increasing loyalty from our existing customer base, with an all-time high number of repeat customers engaging with us during the first quarter. Total orders increased by 51%, and average order value increased by 20% to $133, in part reflecting fewer markdowns and lower discounting. We are very proud of our large, diverse community of loyal customers. In the twelve months ended April 3rd, 2022, we served 3 million active customers, compared to 1.9 million active customers in the twelve months ended April 4th, 2021, representing growth of 58% and up 200,000 active customers compared to our 2021 year-ending active customer count of 2.8 million. Despite industry-wide supply chain challenges, our business model has enabled us to continue our path of strong growth and profitability. Gross margins for the first quarter increased 220 basis points to 47.3%, driven primarily by two key factors. First, fewer markdowns and discounts compared to last year, driving more sales at full price. Second, the re-acceleration of higher margin event dressing demand, coupled with demand in non-event everyday dressing categories. Along with strong customer demand, our agile merchandising process facilitated inventory turn rates at an annualized rate of over 8 x. Moving down the P&L to give some insights into expense line items. Q1 selling and marketing expenses were $21.9 million, up $8.5 million from the same period in the prior year due to the return of online performance marketing spend to a more normalized state, modestly ahead of the increase in net revenue, as well as some increased spend in top of funnel brand awareness marketing. General and administrative expenses amounted to $27.8 million for the quarter, an increase of $12.7 million compared to the prior year. The increase reflects higher fixed headcount costs and associated payroll and benefit costs to support business growth and our obligations as a public company. Recall, we did not have any public company expenses last year in Q1. We continue to drive efficient results in operations in spite of inflation pressures, labor shortages, including for distribution center labor, increasing pressure on logistics costs, and rising return rates. Investments in our distribution network have offset some of these headwinds and enabled us to drive favorable year-over-year operating margins. Interest expense fell by $3.6 million to $200,000, the result of paying off our long-term debt last year with proceeds from the IPO. For the quarter, we reported a diluted earnings per share of $0.05 compared to a diluted loss per share of $0.08 in the first quarter of 2021. Finally, Adjusted EBITDA for the first quarter was $9.9 million, compared to $5.4 million in the same period in 2021. Our Q1 Adjusted EBITDA margin was 8.9%, compared to 7.8% in the same period in 2021. Moving on to the balance sheet and cash flow statement. Our balance sheet remains strong and positions us well to execute on our long-term growth plans. One key change over last year to note on the balance sheet, we adopted accounting lease standards under ASC 842 at the beginning of fiscal 2022, resulting in the recognition of operating lease liabilities recorded on the balance sheet, offset by a corresponding lease right of use asset. The resulting impact to the balance sheet is roughly $29 million in offsetting long-term lease liabilities and right of use assets. Our strong cash flow model enabled us to pay down our revolver by $10 million, leaving a balance of $15 million at quarter end, with quarter ending cash balances of $19.4 million. For inventory, while we continue to turn quickly at over 8x on an annualized basis, we ended the quarter with $42.1 million on hand, an increase of $19.3 million compared to $22.8 million at the end of Q1 2021, setting us up well to meet our customer demand in Q2. We continue to maintain our fast inventory turns, reflecting our strong customer demand as well as our data-driven approach to buying for both new and reorder products. In Q1, we once again believe our inventory turns were industry leading. However, as we've said in the past, over time, we'll incrementally test our way into slower turns in order to better keep up with our customer demand for Lulus products while still keeping laser-focused on the macro environment and making sure we hold firm to our lean inventory management principles while continuing to pursue profitable growth. We continue to operate a highly capital-efficient business that positions us to generate significant positive cash flow. For the quarter, we generated $20.2 million in cash flow from operations. Moving on to guidance. Based on the strong results of the first quarter, early reads on the second quarter, and our confidence in the future, we're raising our expectations for the full year. We continue to have deep conviction in our product merchandising model and remain confident in our ability to navigate the current macro environment. Therefore, we're raising our 2022 full year net revenue expectations to a range of $490 million-$500 million, which represents a year-over-year growth rate of 30%-33%, up from our previous guidance of $480 million-$490 million. Adjusted EBITDA is now expected to be between $50 million and $51 million, which represents growth of 21%-23% over 2021, and an increase from our prior range of $48.5 million-$50 million. We continue to expect product gross margin expansion in 2022 as we benefit from our data-driven model and continued high levels of full price selling, as well as pricing leverage on our high volume reorder products. We do expect increased oil prices to continue to be a headwind to gross margins, increasing shipping and logistics costs for the balance of the year. We plan to reinvest some of our upside into marketing and continuing to build customer awareness, which typically generates strong returns longer term. These expenses are expected to occur primarily in the second and third quarters of 2022. Our Adjusted EBITDA margin rate guidance continues to capture roughly $4.5 million of expected incremental expenses related to being a public company for the 2022 fiscal year compared to the less than 2 months of public company expenses recognized in 2021. Our updated guidance also accounts for the potential for increasing return rates, which we've already experienced in Q1, as well as a higher mix of event-based dressing as our customer returns to her social calendar, and we continue to meet pent-up demand for weddings and wedding-related events. While not reflected in our Q1 results, our guidance also reflects our expectation for a normalization of markdowns and discounts to pre-pandemic levels for the remainder of the year, likely more apparent in the second half of the year. Our guidance targets are for the full 2022 year. That said, to set expectations for modeling purposes, in a normalized year, our net revenue is typically highest in our second and third quarters due to demand seasonality for event dressing, with our lowest revenue coming from the first and fourth quarters. We would also like to remind you that our quarterly Adjusted EBITDA margin rates have similar seasonality fluctuations as our net revenues and will likely fluctuate above and below our full year guidance rate depending on the quarter. Additionally, we expect Adjusted EBITDA margins to be lower in the second and third quarters this year compared to the second and third quarters of last year, primarily related to higher public company expenses, incremental marketing investments, as well as timing of expenses for infrastructure investment initiatives, which will require some redundant operations. As a result of the payoff of our long-term debt facility immediately following the IPO, we expect interest expense to be roughly $700,000 for the year, dramatically down from $12.8 million in 2021. For 2022, we expect a weighted average fully diluted share count of 40 million shares. This year's share count includes a full year of higher post-IPO share counts weighted across all four quarters. Moving on to capital expenditures. I'd like to reiterate the following investment areas we are focusing on throughout the balance of the year. Once we've completed a successful robotics implementation in our East Coast fulfillment center, we'll evaluate the return on investment and consider launching robotics in our Northern California facility. We plan to continue improving our platforms to ensure that we maintain and improve our customer-centric shopping experience and marketing personalization with investments in our customer data platform and customer insights. Lastly, we plan to further invest in internal and external software and technology to enhance our operational efficiencies. With the rollout of these initiatives, we continue to expect capital expenditures of between $5 million and $7 million for the full 2022 fiscal year. With that, I'll pass it back to David for closing remarks. We would like to thank the LuCrew, brand fans, board, and of course, our shareholders for helping us deliver these outstanding results in the first quarter. We continue to believe that Lulus high growth, capital light business, combined with fast inventory turns, a strong balance sheet, and unique merchandising model, clearly differentiates us from the apparel and fast fashion companies we see competing in the e-commerce space. Moreover, we think the customer experience we provide is unmatched and positions us well to benefit from long-term growth trends in our industry. We are very pleased with the start of the year and look forward to executing on our strategy and continuing to deliver on our targets in 2022. Thank you for your time, and we look forward to hearing your questions. Thank you. Ladies and gentlemen, at this time, we will conduct our question and answer session. If you would like 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. Please limit yourself to one question and one follow-up per each time that you queue. Please queue up again for additional questions. Additionally, you may press star 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. Our first question comes from Randy Konik with Jefferies. Please state your question. Yeah. Thanks, guys. I guess I wanted to explore the event and non-event product categories that you spoke of that had strength. Because it appears that your business is getting or the brand is getting more and more recognition as a destination for events, but you're also talking about that added strength in non-event categories. Can you talk about some of the wins you're seeing in the non-event area and maybe some of the, you know, purchase behavior by the consumer? Is she, you know, getting, you know, in the transaction, are you seeing kind of UPTs rise where she's buying, you know, event plus non-event stuff at the same time? Just kind of curious of what kind of behaviors you're seeing from the consumer there. Thanks, guys. Hey, Randy. Yeah. From an event versus non-event versus separates versus dresses, we've seen double-digit comps across all of the above. Because we're so well known for our events and we were able to chase into and kinda capitalize on a lot of pent-up demand, we did see an even larger re-acceleration on the event side. We're still very impressed with what our team has been able to do on the non-event side with the double-digit comps last year. We're making good headway there, still testing and learning into what she's interested in and really impressed with the team's execution across all product classes. From a customer behavior perspective, Mark, I think you can add more color there. Yeah. Like we have witnessed also last quarter, for example, is that we see certain increases in the frequency of our customers. That over time, even when a customer starts with Lulus on the event side, that she certainly migrates into the other categories, over time. That's also what we have observed in Q1 of this year. Randy, we love it because what Crystal and Mark just outlined sort of indicates the great bones for being an excellent lifestyle brand. The idea that we have sort of gateway products and that those gateway products lead to other, you know, explorations across the brands. That also speaks to future, you know, lifetime value customer and stickiness of customer. All very good signs. Great. Just last question is just your thoughts on the general health of the consumer. How does she feel to you guys these days? Thanks, guys. I'd say we're pretty pleased with all of the metrics around our customer. It's our AOV and reduction in markdown and discounts are a testimony to that. She sees a lot of value in our products. She's putting more in her shopping cart. She's engaging with us more often. Across the board, we think our consumer is very healthy. Both new and Super helpful. Thanks, guys. Yep. Thank you. Our next question comes from Oliver Chen with Cowen. Please go ahead. Hi. The inventory turns continue to be really impressive. How are you balancing that against markdown normalization that you're seeing, as well as just maintaining the right in-stock levels to ensure that the Net Promoter Score is optimized? To follow up, as you think about marketing spend, you mentioned top of funnel. What's in your strategy in terms of thinking about, you know, performance marketing and attribution analysis top of funnel, relative to, you know, first and third party and what you're seeing in the marketplace? Thank you. I'll take the inventory turns questions. Generally speaking, we've been really focused on improving our size and stock ratios and maybe less so on what we were speaking previously about slowing turns. It's more about optimizing that size and that stock availability. Our UPTs, I think, are a testimony that we've made dramatic improvements. We've doubled our size in stock across our reorder products this quarter, which has allowed us to continue turning quickly but still meeting that customer, or getting closer to meeting that customer's demand. That's not to say we don't have room to improve and continue to optimize for size completion, but we've done a really great job, again, just doubling that size and stock ratio across our reorder. From an NPS perspective, I think that always remains an opportunity. I'll defer to Mark to advise there. Yes. As it relates to the NPS, we pointed out in the past that one of the areas of improvement is indeed that product availability and specifically the size availability. You know, what we've observed in the data in our NPS data is that she indeed is noticing a better position for us there. That's good. Like, still, you know, opportunities there to further expand on that. As it relates to your question around the top of the funnel marketing, last time spoke about basically our increased efforts on the brand awareness side. We are and continue to be testing and learning as it relates to that top of funnel marketing, how we you know because it's different from performance direct response marketing is how are the metrics there shaping up and how can we correlate that to further downstream down the line revenues. That remains in progress. We have some interesting approaches there that we are currently you know implementing and proceeding with, and we feel overall that as of a we were confident in switching more and more of our basically of our marketing spend to towards that brand awareness in order to accelerate that word-of-mouth marketing that we have grown historically with as well as to further improve the efficiency of our direct response marketing. Lastly, the gross margin and revenue comparisons from a modeling perspective get more challenging. Just some thoughts around what gives you conviction there. It sounds like you expect more markdowns given your commentary, Crystal. Yeah. We didn't experience that in Q1 where our markdowns and discounts were still at a kind of a historic low. Just given the current macro backdrop, we're wanting to be conservative in terms of the balance of the year. We haven't experienced it yet, but that's not to say that we wouldn't. David, I don't know if you wanted to add any color to that, but. Yeah. Just, we just wanna be, you know, overall, just cautious about it. As Crystal said, we're halfway through our largest quarter of the year. Things look good, but we wanted to be, again, a little more cautious as other initiatives end up driving a good part of the back half as well. I would also say that as our base for revenue growth gets bigger, you know, it's reasonable to expect that the percentage overall will get smaller, but we still plan to put up some impressive comps for the balance of the year. Best regards. Thank you. Thanks, Oliver. Our next question comes from Brooke Roach with Goldman Sachs. Please go ahead. Good afternoon, and thank you so much for taking our question. I was wondering if you could discuss the costing and inflationary pressures that you're seeing in a little bit more detail relative to what we were talking about a few months ago. On pricing, it sounds like that's an opportunity for you. Can you discuss your plans to raise price this year as a result of those inflationary cost pressures? How much is that pricing contributing to your top line growth plan for the year? Thank you. Thanks, Brooke. We take a pretty surgical approach to our pricing and IMU targets in general. As there has been cost increases, we can and have taken prices up, but on the flip side, we've also taken prices down, and it's all driven based off of sell-through and optimization with our customer. In areas where we're trying to grow more strategically and take it more of a competitive position, we're not being as aggressive with those margins. All of that factored into our guidance and what our expectations are, as well as what we experienced so far year- to date. Thank you. Just adding some color. Yeah, in the inflationary side, it's still, you know, in the single digit range, say mid-ish single digits, the increases we're seeing. But we also like to talk about the costs we're facing, but also we have opportunities throughout our system to continue to sort of optimize. It's not like we have to turn around and say, "Where do we find these mid-single digit increases?" Like Crystal said, we go sort of surgically across the organization, always looking for opportunity to become more efficient to offset some of that. What I was alluding to in the future is, as you know, we've talked about the company hasn't necessarily rationalized its product purchasing behavior. There's lots of opportunities for us to do that in the coming years and the back half of 2023 and beyond. The other piece to remember, too, is that 70%, roughly 70% of our revenue is coming from reorder products where our order volumes are growing and we're able to negotiate more aggressively from a price positioning perspective. It's another beautiful part about our model where we do get more leverage as we grow. Great. Thank you. Just to follow up on the brand momentum and the awareness that you have today, where do you see the biggest opportunity to move the needle on unaided brand awareness over the course of the next year? What customer cohort are you seeing the most momentum among right now? Thank you. We see momentum in both the millennial as well as the Gen Z cohorts. What I do and also called out the last time we spoke is that, for example, with the brand campaign we did last year and that type of messaging, that really resonated very well with the Gen Z as well. I would say that the focus is on both, so to say. In that sense, from a runway perspective, I feel that we can have that double benefit of increasing that brand awareness in both the millennial as well as the Gen Zers and the Gen Z population. Yeah. Brooke, let me add some color to what Mark was saying. As you know, we began to test, as a company that was very strong, very sophisticated, even beyond our scale in performance marketing. As we came closer to the IPO and new debt wasn't gonna be an issue, but knew we had strategic opportunities to learn that, to bring our message out, Mark and team started to work on ways to explore building our awareness through other vehicles beyond performance marketing. We had the sort of smaller tests we did in Q3, and that combined with a number of things, has given the team a lot more conviction to move in that space. That's gone from considering platforms, media approaches, as well as restructuring the company and restructuring the organization around enabling that to be more potent and powerful. We're still in very early innings with the effort, but we're really enthused by what we're seeing so far. Great. Thank you. I'll pass it on. Thank you. Just a reminder, to ask a question, press star one on your telephone keypad. To remove yourself from the queue, press star two. Our next question comes from Dana Telsey with Telsey Advisory Group. Please go ahead. Hi. Good afternoon, everyone. As you think about the consumer and the health of the consumer and what you're seeing in returns or markdowns, how does it differ from last year? With the manufacturing and product optimization, are you bringing goods in to manufacture closer to the U.S.? How does that change, and how long would you say that takes in order to get where you want it to be? I have one follow-up. I would say from a consumer health perspective, we've seen quite a lot of gains, especially when you compare against last year. Both new and repeat customers are engaging with us more frequently. They're spending more money with us, and overall, we haven't seen any sort of compression. Quite the opposite. It's all up and to the right and very positive for us. In that sense, this year compared to last year, we've seen quite a lot of improvements across all of our customers. From a production of goods, shifting from one location to another, I would say that that's more in our vendors' control versus in our control. It's been fairly consistent, and we haven't really seen any disruptions or delays and have been kinda steady as she goes from an inbound perspective, if not improved over previous years. In that sense, there's nothing new or interesting really to report on our side. Got it. The AOV at $133 was very impressive in terms of the increase. Are you seeing that come from an increase in the price of the item? Are people buying more items? What's the change that you notice there, and what do you expect go forward? I'd say it's gonna be balanced between pricing and lower markdowns and discounts. It's not been heavily weighted one way or the other. We would expect that trend to continue as we move through the year, and we've not seen any reactions where we have taken prices. There's been little to no reaction from our customer in that sense. There's no reason to believe that we would need to change. We have seen an increase in our units per transaction. Right, Dana. When you think about big macro moves, would they start to rebalance over time? Then also with the growth of the non-event business, so you end up with different purchase behavior over time too. These will be substantial moves, these small incremental. Thank you. Thank you. Our next question comes from Mark Altschwager with Robert W. Baird. Please go ahead. Thanks. Good afternoon, everyone. I guess first, Crystal, just a follow-up on the EBITDA margin guidance. I think you called out that you expect to see pressure in Q2 and Q3 year-over-year, given several factors. I guess can we take away from that you expect EBITDA margin to be up year-over-year in Q4? Just trying to get a better sense of the seasonality you're pointing us to, with that commentary. Thanks, and then I have a follow-up. Around Q2 and Q3, I wouldn't say pressure is how I would describe it. It's more about us being opportunistic from a marketing investment perspective. There could be some operational inefficiencies as we're expanding our Southern California facility, but it's more so around being opportunistic around taking our upside to more awareness marketing and driving more top of funnel, as well as public company costs being, you know, fully burdened this year versus last year, which is, you know, expected to be over $4.5 million. It's more of those things versus losing operational efficiency or deleveraging. Okay. That's helpful. Thanks. And then kind of a bigger picture question. You know, current momentum, clearly excellent. A lot of opportunity ahead, but curious if you could talk about, you know, your approach to the business in the scenario where the macro consumer backdrop were to slow a bit. You know, how flexible can you be on costs? How do you think about, you know, managing costs versus investing behind, you know, the market share opportunity and just overall kind of the durability of a 10%-ish EBITDA margin, in a less robust sales environment? Thank you. Yeah. I think that's the beauty of our merchandising model, where we can pivot really quickly. Because we're such a data-driven organization, we can see signs pretty early on. I mean, we're in it every day, and so there's. If you look at our performance through COVID, you can see. If you back out some of the noise from stock-based comp adjustments and all of that, we actually had a relatively flat EBITDA dollars with 33% lower revenue. We're just a highly variable cost-driven business, so if we needed to flex up or down, we've got a lot of ability to do so. We're certainly watching it. We haven't experienced it so far. We're keeping a close eye on it, but again, the way we manage our inventory, it allows us to be very, very flexible and pivot really quickly. It's interesting for us, Mark, because we have this right now, all signs, you know, as Crystal said, up and to the right. We wanna, you know, be smart about it and be as nimble. This team rehearsed it in a very dramatic way during 2020. Those maneuvers and things have been practiced previously. Thanks again. Thank you. Our next question comes from Lorraine Hutchinson with Bank of America. Please go ahead. Thanks. Good afternoon. I wanted to follow up on your comments around gross margin for the year. Crystal, you talked about some product gross margin expansion, but then also highlighted the risk of increased shipping and logistics, higher return rates, and then maybe introduced the potential resumption of some promotional activity in the second half. I was just hoping, as you step back your outlook for gross margin for the rest of the year, any help you could give us on how all of these puts and takes combine, would be appreciated. Yeah. Our guidance contemplates pressure from logistical costs, but from a margin perspective at a product level, we're not anticipating any sort of pressure there that would cause us to be maybe to last year. What we're gaining in product margins, we expect to see offsets from a logistical cost perspective. It's mostly being driven currently by fuel surcharges, and you can see that in Q1. That's comprehended in the year's payment. That's comprehended in the year's payment, yeah. Okay. Thank you very much. All right. Thank you. Our next question comes from Oliver Chen with Cowen. Please go ahead. Hi. Thanks again. The loyalty program sounded quite powerful and flexible. What should we know about the impact that may have to the financials and timing and implementation? Second, on the robotics in your DC, just would love some understanding of the impact that will have. I imagine it will mean getting packages faster and also rationalizing labor as well. Thank you. Thanks, Oliver. As it relates to loyalty, as I mentioned, it started in March, so everything is still very fresh and we're looking at, you know, the first insight into our customers' behavior around this. We see positive parts. We have not specifically for the rest of 2022, you know, calculated any extra benefits of that loyalty program. From a process perspective, if you will, in growing that program out, it's really test and learn going forward. We've tested different types of content. We did different types of call to action, and we will continue to do so, to really look at how we can build that program out going forward. As it relates to robotics, there we are fully up and running and, from that perspective, have a good line of sight as it relates to the productivity gains that we anticipated. What we anticipated also came to fruition. In that sense, we are on that path, I would say check mark. Still, you know, as usual, there's always ways to grow that further. That is obviously contemplated in our guidance for the remainder of the year. Oliver, it's really impressive to see how the team executed because as you know, this time period is one of our big peaks. To see us install new technology, operational processes with those deadlines right in front of us, it was a really terrific example of how this company executes. Thanks for that. Lastly, a product question. Weddings have been a key theme for, you know, a lot of people. What are your thoughts on what's ahead for that in terms of the trends that you're seeing and the backorders and/or the longevity of that momentum? Also, as you think about that category, are there any inventory characteristics we should know about in terms of how you can test, read, and react to that category in particular? Thank you. I think given our current momentum, there appears to be quite a lot of upside to continue chasing into that area. I think there are a lot of events that were postponed from the last couple of years that we are definitely capitalizing on. Those are also products that tend to be less seasonal and lower risk from an inventory perspective with pretty healthy sell-through rates. In that sense, I think there's opportunity that's fairly low risk to continue capitalizing on that demand. Yeah. The dynamics of that business, it's high ticket for us, but also higher return in terms of the processing and handling on the DC. You know, sort of natural, love's in the air, Love Lulus. There are a lot of similarities we can play off of. Thank you very much. Thank you. There are no further questions at this time. I'll turn it back to David McCreight for closing remarks. Well, again, thank you all for your time this evening. As you can tell, we're thrilled with the direction of the business. When you think about us being just two quarters into being a public company, there are a lot of really good signs about the fundamental aspects of the strategy and the way the team's executing. We're aware of what we read about in the press in terms of what's going on in the rest of the market and the general concerns, and are keeping those in mind as we reissue guidance for the year. Look forward to talking and answer your questions further. Thank you. Thank you. This concludes today's conference. All parties may disconnect. Have a great day.