Good morning, everybody. I'm Steven Forbes, Guggenheim Securities Hardlines analyst. And I have the pleasure of introducing Satish, CEO of Container Store, and also Jeff, CFO. Come to think about it, I was just telling Satish, you probably would have a perfect event to do a survey of all you guys as it relates to brand awareness for Container Store's display in the hallway out there. So if you haven't seen it, definitely take a look. I think brand awareness is a huge opportunity for the company, and maybe we'll get to that later in the talk. But just wanted to start. Jeff has a few words. Yeah, just, before we get started here, I just want to refer everyone to our forward-looking statements that were included in our Form 8-K and press release that were filed with the SEC late yesterday afternoon. Thank you. We'd be remiss if we didn't address the release yesterday. So, Satish, maybe just provide some update on what was announced and give us a brief overview of the press release. Yeah, sure. Absolutely. But we announced in our press release yesterday that Q3 was a difficult quarter for us, and particularly as our consumers are contending again with the economic environment, higher inflation and higher interest rates and inflation. And our general merchandise business, in particular, was soft, just like we saw in Q2. We're seeing a more value-conscious consumer pull back on their discretionary spend, and our more traditional categories within storage and organization are soft, in particular with some of our staple franchises that we've had in the past, like The Home Edit, Marie Kondo, Drop-Front Shoe Boxes. So despite us really offering our customers a strong holiday assortment, we were disappointed with what we saw with general merchandise. Having said that, we definitely saw some strength in our custom space business, not only comparative to general merchandise, but also with the sequential growth that we saw from Q3 to Q2. We were very pleased with the strength of our Preston display, that you mentioned outside, that we have here at ICR. The growth of Preston was strong, and that kind of speaks well to a more affluent consumer and their resilience with some of the categories that we offer them. Maybe if we stay there, because I think, you know, if we take a step back, you've been at the company for, I think, three years. Yep. All right. You put in place a bunch of strategic initiatives to sort of improve the overall value proposition broadly, but really custom closets focus. So maybe if you can, for the group here, you know, talk about some of those initiatives, how they're ramping, you know, where they are in their maturation, and maybe, you know, briefly just what you're sort of excited about as we think through sort of brand awareness opportunities. Yeah, sure. Look, what I would tell you is that the need for Container Store has never been greater. Our customers and consumers alike are contending with a lot of complexity, a lot of chaos in their lives, and we help them in that endeavor. We see through our own surveys, you know, over 50% of Americans are struggling with and overwhelmed with clutter. The vast majority of them, 78%, just don't know what to do with it, and that's what we can help them. I'm sure you and many of you in the audience know of individuals that have so much stuff in their homes that they have to go out and rent outside storage. Or similarly, are having to park their cars, their automobiles out in the driveway on the street because their garage is full of clutter. And so we are in a prime position to really help our customers to reclaim their space, to reclaim their garage, reclaim their time, and reclaim their money. And that really bodes well in terms of what our mission is, which is to help our customers transform their lives through the power of organization. And so to that endeavor, we have three really distinct strategies. First and foremost is really deepening our connection with our customers. We have some amazing in-store specialists, trained experts, solution-oriented. We've also recently added about 130 in-home designers to really work on our custom premium custom space business. Collectively, when you think about our in-store specialists and our in-home designers, you know, they're hitting the mark when it comes to customer service, and we see that through our Net Promoter Scores, both in custom space and in the retail Net Promoter Score, in the 80s, which is incredibly high. Then we further enhance our relationship with our customers through our really strong loyalty program, Organized Insider, which is something we launched a couple of years ago. We have 80% of our transactions go through that program. So you can just imagine the rich data that we have that we get to mine and really help our customers not only understand the purchases that they've made, but also to help complement it with additional products that can help in them on their transformative journey. We see our highest tier, our experts, essentially spend five times more than our entry-level enthusiasts, and that actually hasn't changed throughout this well past calendar year as well. We continue to see strength with our experts. But I would say when it comes to expanding our reach, which is our second strategy, the emphasis there really has been on our custom spaces. We're one of the, perhaps the only retailer out there that really has a vast variety of offerings for our customers. Whether it's Do-It-Yourself Elfa metal-based system, which is very modular, versatile, a system you can actually take with you, or our premium establishment that we have with our wood-based system, Preston. We've made great enhancements, even in the offerings, with just recently launching Garage+ by Elfa. So came in late November, early December, and it's resonated incredibly well with our customers in terms of the features and functionality that it offers. Or even some of the advancements we've made with our Preston line with offering European lighting that integrates with your smart homes. So expanding our reach allows us to offer our customers a unique set of offerings within custom spaces that really is tailored to their budget and the, to the aesthetics. So you don't have to be forced into a narrow offering of one particular line when it comes to The Container Store. You can have a premium offering in your primary closet or your entertainment space or your office, and then a very versatile space within your pantry or your garage, and that's the beauty that we, we have to offer. What we've really been focusing on as we think about the past calendar year and into 2024 as well, is how we do a better job of ensuring that our general merchandise products now complement those spaces. So we have a line that we introduced a couple of years ago, a year or so ago, called the Everything Organizer, and that was a private label line that was inspired by organizers, and it perfectly fits our Elfa system. And so now we kind of have a you know hand-in-glove approach when it comes to our custom spaces on the value side of the approach. And then when we think about our premium side, we've recently introduced, which you got an opportunity to see, a lot of high-end premium general merchandise products that now complement our Preston offering. So The Citizenry, for example, is a great example, is a direct-to-consumer brand we brought in. It is a socially conscious brand with artisan products, and it perfectly pairs with a Preston closet or a Murphy bed. So excited to really offer our customers in their transformative journey this, you know, this compelling solution-oriented approach for their entire home. And then last but not least, as we think about our strategic initiatives, you know, the teams have worked really hard on just strengthening our own internal capabilities. We have a mobile app, something that didn't exist a few years ago. We've made tremendous strength on our e-commerce site as well. It's faster, better content, more engaging, easier navigation. We've improved the speed of checkout as well as speed of delivery, and our customers have definitely noticed that. Great strength with our BOPIS sales, and we've now just recently are enabling customers to be able to make appointments online for our in-home services as well. So I would tell you that our overarching three, you know, approaches to our business or our strategies continue to do quite well. Yes, we've pivoted as it relates to the economic environment, but the proposition of The Container Store has never been stronger. As we think about 2024 and the current macro climate, I will tell you that we are hyper-disciplined and focused on our cash flow. And so with that, we're making conscious efforts as it relates to store growth as well as ensuring that we can fuel our future growth as well. You think about how challenging 2023 has been for you and others, right? Maybe everybody. As we look out to 2024, maybe talk about how you plan on sort of expanding, you know, both the addressable TAM opportunity, you know, improving the customer experience. You talked about the in-home advisors and so forth. I mean, where are the initiatives sort of ramping into next year to think about this return to growth opportunity for the business? Yeah. You know, when we look at our path to $2 billion, specifically, you know, what I will tell you is that, as we've stated a number, number of times, our Custom Spaces business, the total addressable market that we've seen out there is $6 billion. Whether it grows or not, it's still a large pie for us to go after, and we have such a small percentage of that business today. And it is a market that is highly fragmented with local and regional players, and we believe that we can get in and really make a significant dent into increasing our market share within that $6 billion TAM market. Today, I would say our Custom Spaces business is just shy of 40%, when you think of our total consolidated sales, general merchandising being the remaining 60%. And as we think about not only 2024, but our path to $2 billion, you know, our endeavor is really to kind of flip that percentage and to really have a lion's share of our business come from Custom Spaces, complemented by general merchandise. And so we'll do that in three distinct ways, not only in 2024, but as we think about the outer years as well. I do think it, first and foremost, it starts with our people, and that is expanding our in-home organizers. I mean, they're, I would tell you, just getting otarted in their capabilities and then a comfort level of being able to sell premium spaces. The designs are getting far more sophisticated and really complementing what our customers are looking for from a budgetary point of view. Even when we look at the conversion rate of our Preston line today, you know, we see a design-to-sale conversion rate half that of what we have with Avera. So if we can just get that to what we experience with our more medium Avera line, you know, we can double the Preston business overnight. That shows tremendous runway in terms of our ability to own more of that custom space market share. I would say the next activity that we have to drive growth is really through our assortment. So we've talked about Elfa Garage that just launched, but earlier or mid this year, we'll also be enhancing our Decor line, which is our mid-level line for Elfa. It's gonna be a significant overhaul in that line, with new features and functionalities that I think will be a game changer out there. And we continue to enhance the product assortment of our Preston line as well, and we've already done a lot. I mean, if you look at the fixture that we have outside, I mean, you got leather drawer fronts, you got glass shelving and lighting, edge tech, edge banding, and we're not done continuing to elevate our offering there. And we're working very hard and offering concealed hardware, which will be, again, a game changer in the industry. No one really offers concealed hardware, and we're very poised to be offering that to our customers soon as well. So you put an amazing team, coupled with a strong offering of our assortment. I think you start to really get the engines going for our growth potential, coupled with which you said at the very beginning, is around awareness. I think that is ultimately our challenge now. Now that we've been in the business, and we've demonstrated we can win with our customers, it really comes down to the awareness factor and being more you know thoughtful, and being more intentional about our custom space business, and in fact, leading with custom space business, and then having our general merchandise complement it. Is there a stat on unaided or aided brand awareness you can provide the group? And sort of how do you think about the marketing campaign opportunities or just, you know, really attacking that brand awareness? Yeah, I mean, it's not very high. Yeah. It's not something that we're very proud of. It's, you know, low double digits in terms of what we see. But then that just speaks to the potential out there. And I think we see it every day in our Custom Spaces business and how it's grown, and how the penetration continues to, you know, do well for us. And I think that's what we get excited about. You know, it's important that we don't put cart before horse. We really wanted to make sure we had strength in Elfa, and that's a line that we know, and you know that, and so we benefit from the margin profile there. But Preston was something we just purchased. You know, we purchased the manufacturing facility only two years ago. We birthed Preston a few months after that, brought into our stores, hired our in-home designers, and so we're still early on that journey, but the success that we've had to date has been incredibly encouraging. And so, when you start to put those two together with our strength in Elfa and strength in Preston, and this kind of versatility that we offer our customers in their journey, I think that's going to be what unlocks our potential growth. And then, we just supplement it with great, innovative general merchandise product. And we've got great initiatives on that front, too, whether it's our own private label brands like we talked about the Everything Organizer, and that franchise really has strong legs to grow even even bigger in terms of volumes and its connections to Elfa. And then, our premium products that we've introduced, really to understand if the customer was going to connect with it, and it has. And so we've got sourcing capabilities and opportunities with our premium products, too, that will allow us to improve our margins as well. So it's. That's what I think you'll start to see more, in the marketplace of, us being more pronounced with Custom Spaces first, and how it transforms our customers', lives and journeys. It really starts with, you know, what is their intent? What are they trying to achieve? And then, the space that they're working with, whether it's a builder-grade material or which they may or may not be happy with, or we can easily replace that with an Elfa solution or a Preston solution. And then, what are the general merchandise components that then complete that space, so that they can live out their transformative journey. In challenging times, right? You think about sort of refining or maybe re-architecting the model, the store model. Re-architecting labor- Mm-hmm ... you know, driving efficiencies, and so forth. I mean, where are we today as it pertains to sort of you know, getting the right model to grow with, right? Whether it's the footprint itself, right, the labor model that supports it, right, the marketing campaign, and so forth. Is the business ready, right, for its next phase of growth? Yeah, let me... I was going to take that. The, you know, we've been expanding in a small store format. We've, we've got five planned small store formats planned for fiscal 2023, and we've been really pleased with how they've performed. From the beginning, we see a lot of new customers coming to our store. Over 60% of the customers coming in are new, and they're indexing to Custom Spaces faster than we originally anticipated, achieving almost 39% Custom Spaces in line with the rest of the store fleet, just in the early part of its performance. All the while, NPS scores are higher than the actual store base. So when we look at that format, we've been very pleased with the performance of it. As we kind of look forward and we look for opportunities on what this, this store format looks like, there's other opportunities on how we imagine the custom spaces and the general merchandise that Satish is talking about, and presenting it in a way so that it's, you know... Right now, it's maybe in one custom, design center and within the store, but there's other opportunities throughout the store to present both of those together as a solution for the customer, whether it's in the kitchen, in a pantry, or in the office, in the office section. So there's opportunities on that front. But overall, we've been pleased with the small store format, and we look forward to 2024. We have four planned stores. But you know, we're also being mindful of where we are from a business standpoint. We still believe there's plenty of white space. We only have 100 stores nationwide, and we believe we can still grow by that 76, you know, almost doubling the store footprint. But we're going to be mindful in the speed in which we go about doing that, making sure that we're investing in the business appropriately, managing free cash flow as we move forward. We started the journey on the path to $2 billion, mindful of doing so with free cash flow and not taking on additional debt while we do it. The promotional campaigns that you run, right, or maybe there's new ones coming in the future, it can be a driver of awareness, right? Acquisition vehicles, and so forth. But how do you sort of think about promotional campaigns, right, and how promotions sort of play into demand-driving initiatives? Yeah, listen, I think we learned a lot during Q1 in terms of the impact that promotions can have, both on sales and on margin, quite frankly. And so we very much pivoted our approach in Q2 and executed those learnings, and we're able to demonstrate that we could grow top-line sales in a very methodical and prudent manner. So look, promotions do play a role in our offerings as a way to engage, but it isn't the driving factor of what we do. Our customers look, you know, and they do, and particularly in this environment that we're in, they're very savvy consumers, and they're looking for a good deal. And so we provide them one, but we do it in a very conscious manner, and that is, you know, there's driving a sense of urgency... and so it's not so pronounced, and making sure that, while customers are saving, they're also buying more, and so that helps us in that endeavor on that front, too. The real shift, honestly, to drive excitement is through new product offerings, and I would say a lot of the newness that we've introduced, at The Container Store with our general merchandise is doing incredibly well. And so we're really proud of that effort. I mean, we did intercept surveys with our customers, asking them about how they felt with the newness of product, and we were overwhelmingly surprised by the positive reaction we got. Customers would, often say that we really, really love the newness and the elevated general merchandise, expression that they were seeing. They felt it was on trend, they felt it was relevant to what they were looking for, and many of them were quite surprised that we would even engage in certain categories like that. So the premium, particularly the premium general merchandise product, is doing well. But even some of our discovery categories that we've introduced, whether it's home fragrances, which is doing very, very well for us, travel, which is also doing well for us, and pets. You know, some of these more kind of ancillary categories as we introduce for the whole home are resonating with our customers. So I think, you know, promotions, yes, they play a part. It is not at all, you know, the catalyst of what we do. It is service coupled with innovative products, coupled with discovery areas that we have all embedded within the custom service play that we have, which, in particular, as we mentioned with our premium space, you know, it's not a discounted line, but one that is resonating with our more affluent pursuit, premium consumer. Is there a way to briefly summarize to the group here, how the price-value sort of proposition or the value proposition broadly sort of compares to, to the competition? Right, the competition's broad, where you have contractors who do closets and, California Closets and so forth. But where, where are you sort of where's the Preston line fit, into sort of end market? Yeah, it's a difficult question to answer, and I'll tell you why: because our Preston line is so versatile in its offering, and it's very much dependent upon the customer's design, so, and appetite in terms of what they want to spend. So the Preston line, in particular, our premium wood-based can be a wall-hung system, and that can be a relatively inexpensive system, or it could be a floor-to-ceiling system with all the bells and whistles. We can have a custom closet, a primary closet, for example, that can range from, you know, $5,000 all the way to $50,000. And so it really depends on the appetite of the customer and what they're looking for. I would say our tier one, two, and three designs out of... we have five tiers, very, very competitive with the competition. four and five, I think we've got some work to do to make it to improve upon kind of more of the accessories that we have in terms of the pricing, which we're working on. But the line itself, I would say, is very, very competitive. And then not to, not to forget that, you know, we also have our value offering with Elfa as well. So if a consumer all of a sudden feels that they're, they're priced out in a particular line, we, we have other do-it-yourself lines that they can take full advantage of, and that is the beauty of what The Container Store offers, is that versatility in our assortment. And whether they want us to install it or they want to do it themselves in that, in that more value Elfa line. I think the difference is, outside of the assortment that we talked about and the innovation we're bringing, it really is the consistency of our approach. A lot of local regional players, you know, may not be around two, three, four, five years from now, and customers are then stuck with a solution that can't really, they can't really grow with or can't really do anything with. We've heard all the time from customers who end up going with a local competitor, finding out the installation process was awful. And many times they'd have to rip out something that was done with a local competitor and bring us in to kind of complete their aspirations. And so, you know, it's really the entire experience that our customers too are looking for. We, as The Container Store, are the only retailer, humbly, that can not only deliver in terms of the space, but also those completion products and also those organization services so that you can fully realize that dream. Just getting a beautiful space in itself is not gonna necessarily allow you to, you know, achieve the objective at hand. It's then how do you dress up that space, and then how you live with that space to achieve the underlying objectives at hand. In the last minute here, maybe you could just talk about potential, whether it's partnership opportunities, or there's other companies here that store within store concepts. Your background, right? You think about your prior life. Where is the TCS brand as it pertains to sort of exploring those growth vehicles in the 40 seconds we have here? Yeah. Listen, you always ask that question. I always give you the same answer. That is we always look at it, you know, in terms of opportunities that may exist and how we can fit in and expand our awareness and our reach without a doubt, but it also stems from who the partner is and the relationship that we have. You know, we have, we're very protective of our brand and how it's demonstrated and shown, and so we're not going to just put it in any installation that may exist out there. If the right partner came along and the right partnership was in place with the right economics, definitely we would entertain that. But what I would tell you in closing is that, look, our growth and our plans to do $1 billion is irrespective of our desires or needs to be with, you know, a shop-within-a-shop concept. I think we have enough on the horizon with our Custom Spaces business and the changes that we're making with our general merchandise to really deliver on that promise with strong margins. That puts us on time. Thank you all. Thank you, Satish. Thank you. Thanks. Yeah.