Financial Data and Key Metrics Changes - For the full year 2025, total net sales increased by 16.8%, driven by new store expansion and comparable sales growth of 7.7% [5][18] - Adjusted EBITDA grew by 24.1%, resulting in an adjusted EBITDA margin of 10.2% [18][19] - In the fourth quarter, net revenue increased by 8.2% to $648.8 million, with adjusted comparable sales increasing by 2.8% [19][20] - Net income grew over 6% to $41 million compared to $38.6 million last year [21] Business Line Data and Key Metrics Changes - The company opened 20 new stores in 2025, ending the year with a total of 209 locations, representing an 11% growth [11][19] - Comparable sales performance was primarily driven by growth in conversion and higher average order values in the retail channel, as well as increased e-commerce traffic [20] Market Data and Key Metrics Changes - The company entered two new markets in 2025, North Carolina and Vermont, with strong performance reported in these locations [19][21] - Aided brand awareness increased to 45%, with approximately 70% in the top 10 DMAs [9] Company Strategy and Development Direction - The company aims to grow its store base across new and existing markets, drive comparable sales, and leverage scale for efficiency and margin expansion [10][12] - Plans to open approximately 20 new stores in 2026, with a long-term goal of over 500 stores by 2035 [12][26] - The company is focused on enhancing its omnichannel capabilities and customer experience through digital transformation initiatives [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating macroeconomic uncertainties and highlighted a strong history of market share gains [16][29] - The first quarter of 2026 is expected to deliver comparable sales growth of approximately 1.0%-1.5%, with a recovery from weather-related sales losses anticipated [23][24] - The outlook for the full year includes net revenue expectations of $2.6 billion to $2.625 billion, supported by comparable sales growth of 1.5%-2.5% [24][25] Other Important Information - The company successfully completed its IPO, resulting in $302 million of net primary proceeds, which were used to prepay all of its $350 million term loan [22] - The company plans to spend approximately $110 million-$115 million on capital expenditures focused on store growth and supporting infrastructure [26][27] Q&A Session Summary Question: Impact of weather on fiscal year outlook - Management indicated that the wider range in EBITDA guidance is primarily due to weather-related impacts in the first quarter, affecting store traffic and sales [33][34] Question: Recovery of demand post-weather events - Management noted that while there is typically a partial recovery of demand after weather events, they expect to see a high percentage of lost sales recaptured [35][36] Question: Profitability outlook amidst macroeconomic factors - Management expressed confidence in their ability to manage profitability despite external factors, citing a strong playbook for navigating challenges [49][50] Question: Trends in e-commerce and omnichannel sales - Management highlighted the importance of e-commerce as a growing channel, with over 70% of consumers engaging across multiple channels [94]

SUPPLEMENTAL FINANCIAL PRESENTATION January 29, 2026 Q4 2025 EARNINGS HIGHLIGHTS SAFE HARBOR The forward -looking statements included in this presentation are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts, which address activities, events, or developments that we expect or anticipate will or may occur in the future, including statements regarding market share gains, positive customer trends, new s ...

Financial Performance - Net sales increased to $3.72 billion in Q3 2025, a 7.2% increase compared to $3.47 billion in Q3 2024 [15] - Comparable store sales increased by 3.9% in Q3 2025, compared to a decrease of 0.2% in Q3 2024 [15] - Gross margin increased by 15 basis points to 37.4% in Q3 2025 from 37.2% in Q3 2024 [18] - SG&A expenses as a percentage of net sales increased by 29 basis points to 28.1% in Q3 2025 from 27.8% in Q3 2024 [18] - Net income increased to $259.3 million in Q3 2025, a 7.4% increase compared to $241.5 million in Q3 2024 [21] - Diluted earnings per share increased to $0.49 in Q3 2025, an 8.6% increase compared to $0.45 in Q3 2024 [21] - Operating margin decreased by 14 basis points to 9.2% in Q3 2025 from 9.4% in Q3 2024 [21] Updated Fiscal Year 2025 Guidance - Net sales are now expected to increase by 4.6% to 5.6% [33] - Comparable store sales are now expected to increase by 1.4% to 2.4% [33] - Operating margin rate is projected to be between 9.5% and 9.7% [33] - Net income is projected to be between $1.09 billion and $1.14 billion [33] - Diluted earnings per share are projected to be between $2.06 and $2.13 [33]