Financial Data and Key Metrics Changes - Total net sales increased by 4.5% to $370 million, with a constant currency increase of 7.1% and comparable store sales growth of 2.8% [14][15] - Adjusted EBITDA for the quarter was approximately $43 million, representing an adjusted EBITDA margin of 11.6% [6][18] - GAAP net loss for the quarter was $4.7 million, or $0.03 per diluted share, which included a $2.7 million pretax loss on debt extinguishment [17] Business Line Data and Key Metrics Changes - U.S. net sales increased by 9.4% to $211 million, with comparable store sales up by 4.2%, driven by growth in both transactions and average basket size [15][16] - Canadian net sales declined by 4.1% due to a weaker Canadian dollar, but on a constant currency basis, they increased by 2.2% to $137 million, with comparable store sales up by 0.6% [15][16] Market Data and Key Metrics Changes - The U.S. business showed nearly double-digit sales growth, while Canada reported positive comparable sales for the first time since Q4 2023 [5][14] - The company noted stable macroeconomic conditions in both the U.S. and Canada during the first quarter, despite ongoing consumer confidence volatility [9][10] Company Strategy and Development Direction - The company plans to open 25 to 30 new stores in 2025, with a focus on U.S. expansion [10][25] - The company is leveraging centralized processing centers to support new store growth and improve operational efficiency [11][12] - The management emphasized a conservative approach to planning comparable store sales growth, particularly in Canada, while remaining optimistic about U.S. performance [23][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's long-term growth prospects, citing strong execution and a compelling value proposition [13][22] - The company is monitoring consumer sentiment and potential impacts from tariffs, but remains focused on operational control and innovation [9][10][24] - The outlook for 2025 includes net sales of $1.61 billion to $1.65 billion and adjusted EBITDA of $245 million to $265 million [25] Other Important Information - The company redeemed $44.5 million of senior secured notes during the quarter, resulting in a net leverage ratio of 2.4 times [21] - The company repurchased approximately 1.4 million shares at a weighted average price of $8.43 per share, with $6.3 million remaining on the share repurchase authorization [21] Q&A Session Summary Question: Insights on U.S. Strength and Customer Trends - Management noted strong performance in the U.S. with growth in both transactions and average basket size, and emphasized the importance of their loyalty program [29][34] Question: Future Outlook for Canada - Management expressed cautious optimism about Canada, highlighting strong donation flows and stable economic indicators, but refrained from declaring victory [31][33] Question: Continuous Improvement Processes - Management discussed the implementation of automated book processing and various tactical improvements to enhance store operations [37][40] Question: Pricing Strategy in a Competitive Environment - Management indicated that widening price gaps could present opportunities for market share gains, but they are not planning to raise prices immediately [44][46] Question: Impact of Macroeconomic Conditions on Donations - Management reported robust growth in on-site donations and low turnover rates, indicating no current issues with labor availability [49][52] Question: New Store Performance and Long-term EBITDA Margins - Management confirmed that new stores are performing as expected and reiterated that high teens EBITDA margins remain achievable in the long term [78][81] Question: Real Estate Opportunities and Two Peaches Integration - Management is actively prospecting for new store locations and reported positive integration progress with the Two Peaches acquisition [86][92]