Financial Data and Key Metrics Changes - Net income for the fourth quarter was $77.2 million or $1.53 per share, a decrease from $79.6 million or $1.59 per share in the prior year [3] - Net income for the fiscal year was $195.5 million or $3.89 per share, down from $219.9 million or $4.40 per share in the previous year [3] - Net sales for the fourth quarter decreased by 0.8% to $379.2 million compared to $382.4 million in the prior year [3] - Comparable store sales increased by 3.9% for the quarter [3] - Online sales increased by 6.4% to $69.7 million compared to $65.5 million in the prior year [3] Business Line Data and Key Metrics Changes - Women's merchandise sales increased by approximately 4.5% against the prior year and represented about 43% of total sales [4] - On a comparable basis, women's merchandise sales rose approximately 11% [4] - Denim sales increased by 15%, driven by strong performance in private branded jeans, which grew over 20% [4] - Average denim price points rose from $81.25 to $83.10, while overall average women's price points increased from $51 to $51.55 [4] Market Data and Key Metrics Changes - The company is focusing on relocating stores from certain malls to higher traffic outdoor centers to enhance customer experience [2] Company Strategy and Development Direction - The company emphasizes a specialty store approach, providing great products and outstanding service [2] - There is a focus on increasing private label merchandise to improve margins [8][9] - The company is exploring improvements in online sales through a comprehensive review of its website to enhance the shopping experience [21] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in managing costs related to tariffs through strong vendor relationships [8] - There is an acknowledgment of potential economic challenges, but the company remains focused on quality and customer satisfaction [20] Other Important Information - The company continues to source predominantly from China, with some production in Vietnam and Bangladesh [19] - Management indicated that they are not focused on low pricing but rather on quality and fashion [20] Q&A Session Summary Question: How is store traffic affected by the recession? - Management acknowledged concerns but did not provide specific data on traffic changes [14] Question: Will sweat jeans be added to the product portfolio? - Management mentioned a small presence of knit denim and jogging pants but does not see sweat jeans as a significant addition [14] Question: Can you analyze inventory sourcing from overseas? - Management confirmed that sourcing is still predominantly from China, with over 200 vendors involved [19] Question: Are vendors planning to change production locations? - Management indicated that vendors would relocate if it made sense, considering costs and quality [20] Question: Any new initiatives for online sales? - Management highlighted strong online performance and ongoing improvements to the website to enhance the shopping experience [21]

Kroger Company Overview - Kroger's interim CEO Ron Sargent has taken over following the resignation of Rodney McMullen, with no mention of McMullen during the earnings call, indicating a focus on future performance rather than past leadership [3][4] - The company reported identical sales growth of 2.4% and generated $1.4 billion in operating profit from alternative profit businesses, which account for over a quarter of its operating income [4][6] - Digital sales are growing at 10%, highlighting the competitive landscape in retail where convenience is becoming as important as price [5][6] Stock Performance and Shareholder Returns - Kroger's stock has increased by approximately 12% since the failed merger with Albertsons, with a total increase of 30% over the past year, despite flat to declining adjusted earnings per share [7][8] - The company is committed to a total shareholder return of 8-11%, with a current dividend yield of about 2% [8] Abercrombie & Fitch Company Overview - Abercrombie & Fitch reported a 16% increase in sales for the full year 2024, but the growth rate is slowing, with comparable sales for the Abercrombie brand only increasing by 5% in the fourth quarter [9][10] - The company expects consolidated sales growth of 3-5% for 2025, which is below market expectations, and operating margins are anticipated to be lower than previously expected [10][11] Inventory and Market Concerns - Abercrombie's inventory has increased by over $100 million, raising concerns about slowing demand and potential misalignment with consumer trends [12][13] - The company has a valuation of about eight times earnings, indicating market perception of limited growth potential [14] Turning Point Brands Overview - Turning Point Brands is experiencing growth in the hemp market due to the adoption of Farm Bill compliant products, with an estimated 7,000 retail outlets in Texas selling hemp-derived products [15][16] - The company is also focusing on modern oral nicotine products, with a projected revenue growth of 56% in 2025 compared to the previous year [19][20] Intuitive Surgical Overview - Intuitive Surgical's da Vinci Surgical System allows surgeons to perform minimally invasive surgeries with enhanced precision, primarily in urology and gynecology [23][24] - The company has invested nearly 14% of its revenue in R&D, indicating a commitment to innovation amid growing competition in the robotics field [31][32] - Intuitive Surgical has maintained a near-monopoly in the market, leveraging its established systems and easier regulatory pathways for new products [33]

Financial Data and Key Metrics Changes - Net income for Q4 2024 was $77.2 million or $1.53 per share, down from $79.6 million or $1.59 per share in Q4 2023 [10] - For the fiscal year, net income decreased to $195.5 million or $3.89 per share from $219.9 million or $4.40 per share in the previous year [10] - Net sales for Q4 decreased by 0.8% to $379.2 million compared to $382.4 million in Q4 2023 [10] - Comparable store sales increased by 3.9% in Q4 compared to the same period last year [10] - Gross margin for Q4 was 52.6%, up from 52.3% in Q4 2023, while the full year gross margin decreased to 48.7% from 49.1% [13] Business Line Data and Key Metrics Changes - Women's merchandise sales for Q4 increased by 4.5% compared to the prior year, representing approximately 43% of total sales [19] - Men's merchandise sales decreased by about 4% in Q4, representing approximately 57% of total sales [21] - Accessory sales increased by approximately 7.5%, while footwear sales decreased by about 7% [23] - Youth sales increased approximately 10% in Q4, with denim accounting for about 45% of sales [24] Market Data and Key Metrics Changes - Total e-commerce sales grew by 12% in Q4 compared to the same period last year [8] - Online sales for the fiscal year decreased by 4.3% to $197.7 million compared to $206.5 million in the previous year [11] Company Strategy and Development Direction - The company is focusing on relocating stores to higher traffic outdoor centers, with 51 out of 74 remodels being relocations [7] - Investments in digital experience have been made to enhance economic performance [8] - Plans for fiscal 2025 include opening seven new stores and completing 18 to 22 remodel projects, with at least half being relocations [17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about managing through economic challenges due to strong vendor relationships [9] - The company is monitoring the impact of tariffs and believes it can manage costs effectively [30] Other Important Information - Inventory was reported at $120.8 million, down 4.4% from the previous year [16] - The company ended the year with 441 retail stores, down from 444 stores at the end of fiscal 2023 [18] Q&A Session Summary Question: Could you elaborate on merchandise margin gains? - Management attributed the increase in merchandise margins to a higher percentage of private label sales and better regular price selling [29] Question: How do you see store traffic in light of recession concerns? - Management noted that they do not track traffic counters but estimated flat traffic based on February sales being down 1% [40] Question: What is the current sourcing strategy for inventory? - The company primarily sources from China, with some from Vietnam and Bangladesh, and is open to relocating production if necessary [43] Question: Are there plans for new initiatives in online sales? - Management highlighted strong online performance and ongoing improvements to the website and marketing strategies [47][50]

Financial Data and Key Metrics Changes - The company achieved record revenue of $5.3 billion, reflecting a 4% comparable sales growth [6][9] - Adjusted operating profit reached $445 million, marking a 19% increase from the previous year [27][28] - Fourth quarter operating income was $142 million, the highest in over a decade [8][28] - Full year cash flow from operations exceeded $470 million, with over $280 million returned to shareholders through buybacks and dividends [9][31] Business Line Data and Key Metrics Changes - American Eagle's comparable sales rose 1%, while Aerie's comparable sales increased by 6% [7][10] - Aerie crossed $1.7 billion in revenue, with strong performance in soft apparel and activewear [10][20] - Women's apparel saw high single-digit comps, while men's apparel showed sequential improvement [17][19] Market Data and Key Metrics Changes - The company noted that warmer markets performed better than colder ones, with specific categories like sweaters outperforming in colder climates [25][107] - The first quarter of 2025 is expected to see a mid-single-digit revenue decline due to a less robust consumer environment and cold weather [12][33] Company Strategy and Development Direction - The company launched the "Powering Profitable Growth" strategy, focusing on amplifying brands, optimizing operations, and executing with financial discipline [6][9] - There is a heightened emphasis on improving operating capabilities and building speed in the supply chain [11][32] - The company plans to increase share repurchase authorization, reflecting confidence in long-term growth prospects [14][31] Management's Comments on Operating Environment and Future Outlook - Management indicated that 2025 has started off softer than anticipated, with ongoing consumer uncertainty and external factors like tariffs impacting operations [12][33] - The management remains optimistic about long-term growth opportunities despite current challenges [26][37] - The company is taking proactive actions to drive additional expense savings and improve top-line growth [13][32] Other Important Information - The company reported a strong balance sheet with approximately $359 million in cash and investments [31] - Capital expenditures for the year are expected to be around $300 million, including investments in digital platforms and automation [37] Q&A Session Summary Question: Differences in performance between warmer and colder markets - Management noted that warmer markets have seen better comps, but specific figures were not disclosed [40][42] Question: Control over SG&A expenses moving forward - Management expressed confidence in maintaining expense controls and leveraging SG&A for future growth [41][43][46] Question: Early spring selling trends and revenue outlook - Management acknowledged headwinds in early spring but emphasized readiness to adjust inventory and respond to market demands [49][51] Question: Gross margin outlook and assumptions - Management indicated that gross margin is expected to be down in the first quarter due to markdowns and product costs, with improvements anticipated in the second half [52][70] Question: Tariff exposure and mitigation strategies - Management reported a reduction in tariff exposure from China and Vietnam, with plans to further mitigate impacts [76][82] Question: Performance of digital and store channels - Digital channels outperformed stores in the fourth quarter, with plans for continued investment in both areas [102][104]

Financial Data and Key Metrics Changes - Gap Inc. achieved a full year EPS of $2.2, the highest since 2018, reflecting strong earnings power and sustainable growth [8][40] - Operating income increased by more than $500 million, with an operating margin improvement of 330 basis points compared to the previous year's adjusted rate [7][34] - The company ended the year with strong cash balances of approximately $2.6 billion and generated $1 billion in free cash flow during fiscal 2024 [11][41] Business Line Data and Key Metrics Changes - Old Navy's comparable sales were up 3%, marking its eighth consecutive quarter of market share gains [9][10] - Gap's comparable sales accelerated to 7%, achieving its highest quarterly comp in three years and seventh consecutive quarter of share gains [17][18] - Banana Republic's comps were up 4%, driven by improvements in women's business and a focus on classic styles [20][21] - Athleta faced challenges with a 2% decline in comps, although it maintained market share [22][23] Market Data and Key Metrics Changes - Gap Inc. gained market share for the eighth consecutive quarter, indicating strong consumer resonance across all brands [7][56] - The company reported positive comparable sales across all four brands for the year, demonstrating consistency and strength in the portfolio [32][35] Company Strategy and Development Direction - The company is transitioning its focus from fixing fundamentals to continuous improvement through innovation, aiming for momentum in the coming years [8][28] - Gap Inc. is leveraging technology and AI to enhance business performance and consumer experience, with plans for AI monetization opportunities [26][30] - The strategic priority includes driving relevance and revenue through brand reinvigoration, with each brand at different stages of progress [11][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing transformation and the ability to navigate a dynamic macro environment while delivering results [28][29] - The outlook for fiscal 2025 includes expected net sales growth of approximately 1% to 2%, with continued strength at Old Navy and Gap, and a longer recovery timeline for Athleta [46][49] - Management emphasized the importance of controlling costs and leveraging efficiencies to support growth initiatives [45][48] Other Important Information - The company returned approximately $300 million to shareholders through dividends and share repurchases, reflecting a balanced capital allocation strategy [34][42] - Capital expenditures for 2025 are expected to be about $600 million, up 34% as the company invests in organic growth opportunities [42][43] Q&A Session Summary Question: What is driving the momentum at Gap? - Management highlighted that Gap's strong performance is fueled by innovation, compelling marketing, and a focus on product newness, leading to increased market share and consumer engagement [54][56][59] Question: Is there an opportunity for further expense cuts beyond the discussed $150 million? - Management confirmed that while they have rigorously managed costs, they remain committed to continuous improvement and will pursue additional savings if identified [64][66] Question: What are the plans to strengthen the Athleta brand? - Management acknowledged the need for continued work to excite core customers and emphasized the importance of balancing product interest while maintaining inventory management [83][86] Question: What has been the impact of the new creative director on Old Navy and Gap? - Management noted that the new creative director has significantly elevated the creative conversation and product fit across brands, contributing to improved performance [90][92]

Financial Data and Key Metrics Changes - The Gap, Inc. reported a full-year EPS of $2.20, the highest since 2018, reflecting a 64% increase compared to last year's reported EPS of $1.34 [12][60] - Operating income increased by more than $500 million, reaching $1.1 billion, an 83% growth compared to the previous year's adjusted operating income [11][50] - The company ended the year with cash balances of approximately $2.6 billion and generated $1 billion in free cash flow in fiscal 2024 [16][50] Business Line Data and Key Metrics Changes - Comparable sales for The Gap, Inc. were up 3% in Q4, with Old Navy also up 3%, Gap up 7%, and Banana Republic up 4%, while Athleta saw a decline of 2% [14][53] - Old Navy achieved one of the highest annual net sales in its history and maintained its position as the number one specialty apparel brand in the US [17][18] - Gap brand's comp accelerated to 7%, marking the highest quarterly comp in three years, driven by innovation and compelling marketing [26][28] Market Data and Key Metrics Changes - The Gap, Inc. gained market share for the eighth consecutive quarter, indicating strong consumer resonance across all brands [11][14] - Old Navy became the number five player in the active category, being the only brand among the top five to gain share [21][108] - Athleta maintained its rank as the number three brand in the women's active category, despite a challenging quarter [33][120] Company Strategy and Development Direction - The company is transitioning its focus from fixing fundamentals to continuous improvement through innovation, aiming for sustainable and profitable growth [12][42] - The strategic priority includes driving relevance and revenue through brand reinvigoration, with each brand at different stages of progress [16][36] - The company plans to optimize growth by reallocating savings from low-value projects to high-value opportunities in design, consumer insights, and store operations [40][44] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing transformation and the ability to navigate a dynamic macro environment while delivering results [43][44] - The outlook for fiscal 2025 includes expected net sales growth of approximately 1 to 2% year-over-year, with continued strength at Old Navy and Gap, stabilizing performance at Banana Republic, and a longer recovery timeline at Athleta [70][72] - Management highlighted the importance of maintaining disciplined inventory management and cost structure to support future growth [61][73] Other Important Information - The company returned approximately $300 million to shareholders through dividends and share repurchases, reflecting confidence in the business [50][66] - Capital expenditures for 2025 are expected to be about $600 million, up 34% from the previous year, to invest in organic opportunities for value creation [65][66] Q&A Session Summary Question: What is driving the momentum in the Gap brand? - Management noted that the Gap brand's strong performance was fueled by innovation, product newness, and compelling marketing, with a focus on driving the women's business [86][87] Question: Is there an opportunity for further expense cuts beyond the $150 million discussed? - Management confirmed that they have rigorously managed costs and are focused on eliminating low-value work while redeploying resources into higher-value projects [99][100] Question: What are the plans to strengthen the Athleta brand? - Management acknowledged the need for continued work to excite core customers and emphasized the importance of finding the right balance in product offerings for 2025 [121][123] Question: What impact has Zac Posen had on the creative direction of Old Navy and Gap? - Management highlighted Zac Posen's significant impact on elevating the creative conversation and uniting the brands with a design-led thought process [130][132] Question: How are the brands positioned in terms of gross margins? - Management reported significant gross margin gains, with confidence in building upon this progress, particularly in brands like Banana Republic and Athleta [135][136]

Financial Data and Key Metrics Changes - In 2024, the company achieved $575 million in net sales, a 5.2% increase year-over-year, with a notable 17% growth in the US market [10][12] - Adjusted EBITDA for the year was $23.3 million, reflecting a significant year-over-year growth of 69% [12] - For Q4 2024, net sales increased 6.8% to $159 million, driven by a 21.6% increase in the US, while Australia and New Zealand saw a 9.6% decline [35][36] - Gross margin expanded 460 basis points to 55.9% in Q4 compared to 51.3% in the same period last year [37] Business Line Data and Key Metrics Changes - The trailing twelve-month active customer base grew by 9% to over 4 million customers [11][36] - Princess Polly, the largest brand, continues to perform well with innovative merchandising and marketing strategies, contributing significantly to overall sales growth [19][20] - Culture Kings has seen improvements in sales and margin performance due to the transition to a test-and-repeat merchandising model [30][31] Market Data and Key Metrics Changes - The US market showed strong performance with a 17% growth in net sales, while the Australia and New Zealand region experienced a decline [10][35] - The company anticipates improving trends in Australia for 2025, supported by operational optimizations [36] Company Strategy and Development Direction - The company plans to open seven new Princess Polly stores in 2025, expanding its physical retail presence [16][25] - Focus on enhancing direct-to-consumer channels and expanding wholesale partnerships to increase brand awareness and market reach [14][16] - Emphasis on leveraging AI-driven solutions to optimize customer experiences and operational efficiencies [17][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory, citing strong performance in the US and improving trends in Australia [10][88] - The company expects full-year sales for 2025 to be between $600 million and $610 million, representing growth of 4% to 6% [43] - Management acknowledged the impact of tariffs but believes the business model allows for price adjustments without significantly affecting volume [54][56] Other Important Information - The company ended Q4 2024 with $24.2 million in cash and cash equivalents and $111.7 million in debt, having reduced leverage significantly over the past two years [40][42] - The stock buyback program continues, with $1.3 million remaining in the authorization [42] Q&A Session Summary Question: What gives confidence in a rebound outside the US? - Management noted improving comps in Australia and the success of the test-and-repeat model for Culture Kings, which is expected to drive performance [49][50] Question: How will tariffs impact pricing and volume? - Management indicated that the guidance accounts for tariffs and that the business model allows for price adjustments without significant volume loss [54][56] Question: Insights on gross margin guidance? - Management expects gross margin to be roughly flat to FY 2024, with impacts from tariffs and wholesale penetration considered [61][62] Question: Thoughts on wholesale channel expansion? - Management sees significant opportunities in wholesale, particularly with successful tests at Nordstrom, and anticipates it will be a meaningful contributor in the future [66][68] Question: Performance indicators for Culture Kings' US expansion? - Management highlighted strong online performance and customer reactions to new products as indicators for potential US store openings [72][74] Question: Infrastructure needs for Princess Polly stores? - Management emphasized the importance of maintaining quality control and brand building as they expand the number of stores [76][78] Question: General thoughts on the current operating environment? - Management expressed satisfaction with stabilization trends and improvements in customer engagement, particularly in the US market [84][88]

Market Overview - The stock market experienced a significant decline, with the Dow dropping 427 points (-0.99%), the S&P 500 down 104 points (-1.78%), and the Nasdaq falling 483 points (-2.61%) [1] - Over the past month, major indexes have seen substantial losses: Dow -4.8%, S&P 500 -5.6%, Nasdaq -8.7%, and Russell 2000 -10.4% [2] Employment Situation - The upcoming Employment Situation report from the U.S. Bureau of Labor Statistics is anticipated to show an addition of 170K jobs with an unemployment rate of 4.0% for February [3] - Recent private-sector payrolls from ADP were significantly lower than expected, indicating potential challenges in job growth [3] Company Earnings Reports - **Costco (COST)** reported fiscal Q2 earnings of $4.02 per share, missing estimates by 7 cents, but revenues of $63.72 billion exceeded expectations. This marks the first earnings miss in two years, with shares down 1% post-report [4] - **Gap (GAP)** exceeded earnings expectations with 54 cents per share against a forecast of 36 cents, and revenues of $4.1 billion slightly surpassed estimates. Shares surged 15% following the announcement [5] - **Broadcom (AVGO)** reported earnings of $1.60 per share, beating estimates, with revenues of $14.92 billion. The AI segment saw remarkable growth of 77% year-over-year, leading to a 15% increase in shares after the report [6]

Financial Data and Key Metrics Changes - The company reported a revenue guidance for the year between $6.2 billion and $6.3 billion, indicating a flat to slightly positive growth of $100 million or 1-2% year-over-year [32] - The company experienced higher transportation costs in the first part of the year but expects to lap these costs in the latter half [31] Business Line Data and Key Metrics Changes - The company is focusing on improving inventory productivity and reducing production lead times, particularly in underwear and Pink apparel [15][24] - The sport and swim categories are still relatively small but are seen as significant growth opportunities moving forward [55] Market Data and Key Metrics Changes - The warmer weather regions outperformed colder regions, indicating a weather impact on sales trends from late January through February [20] - International markets showed double-digit growth, with strong performance in franchise and travel retail markets, particularly in China [49][50] Company Strategy and Development Direction - The company is implementing a strategy to create separate tracks for product lines, aiming to reduce the traditional 52-week calendar for apparel [24] - Marketing strategies will differ between brands, with a focus on increasing consideration for Versus and improving customer engagement for Pink [41] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about gradual improvements in business performance, driven by strategic changes and marketing efforts [8][5] - The company anticipates a more promotional environment compared to the previous year, particularly in traffic-driving categories [45] Other Important Information - The company has largely completed its three-year cost savings goal ahead of schedule, achieving nearly $200 million in savings in 2024 [40] - Management is conducting research to better understand consumer preferences before finalizing marketing strategies [60] Q&A Session Summary Question: Drivers of gradual improvement and product pipeline - Management indicated that improvements will come from team placements and marketing differentiation, but specifics on product launches were not disclosed [7][8] Question: Inventory productivity and production lead times - Management stated that they are in good shape regarding production lead times, especially in underwear and some Pink apparel areas [15] Question: Regional performance and customer demographics - Management noted that warmer regions performed better than colder ones, reflecting weather impacts on sales [20] Question: Strategy for product lines and Valentine's Day performance - Management emphasized the importance of multiple tracks for product lines and noted that Valentine's Day promotions were successful [24][23] Question: Guidance for the year and promotional activity - Management expects the guidance to improve throughout the year, with a plan for reduced promotional activity compared to the previous year [31][45] Question: International growth expectations - Management reported strong international performance with double-digit growth and positive comps in various markets [49][50] Question: Size and growth opportunity in sport and swim businesses - Management acknowledged that while these categories are small, they present significant growth potential [55] Question: Marketing focus and consumer research - Management is working on understanding consumer preferences before finalizing marketing strategies for the brands [60]

Financial Performance - Fourth Quarter 2024 - Net sales increased by $23 million, representing a 1% increase compared to the fourth quarter of 2023[6] - Comparable store sales increased by 3%[6] - Gross profit remained relatively flat at $835 million, with a gross profit margin of 397%, a decrease of 30 basis points[6] - Operating income increased by $159 million, a 6% increase, resulting in an operating margin of 142%, a 60 basis points increase[6] - Net income attributable to Victoria's Secret & Co increased by $128 million, a 6% increase[6] - Net income per diluted share attributable to Victoria's Secret & Co increased by $002 to $260, a 1% increase[6] Financial Performance - Full Year 2024 - Net sales increased by $478 million, representing a 1% increase compared to 2023[8] - Comparable store sales decreased by 2%[8] - Gross profit increased by $316 million, a 1% increase, with a gross profit margin of 370%, a 20 basis points increase[8] - Operating income increased by $462 million, a 14% increase, resulting in an operating margin of 60%, a 70 basis points increase[8] - Net income attributable to Victoria's Secret & Co increased by $394 million, a 22% increase[8] - Net income per diluted share attributable to Victoria's Secret & Co increased by $042 to $269, a 19% increase[8] Balance Sheet - Total assets decreased from $4600326 thousand to $4531587 thousand[10] - Total current assets decreased from $1533141 thousand to $1441221 thousand[10] - Total liabilities and equity decreased from $4600326 thousand to $4531587 thousand[10] 2025 Outlook - Net sales are projected to be approximately $130 billion to $133 billion for the first quarter and approximately $62 billion to $63 billion for the full year[11] - Adjusted operating income is expected to be approximately $10 million to $30 million for the first quarter and approximately $300 million to $350 million for the full year[11] - Adjusted net income (loss) per diluted share is projected to be approximately ($010) to $010 for the first quarter and approximately $200 to $245 for the full year[11] - Capital expenditures are estimated to be approximately $240 million for the full year[11] - Adjusted free cash flow is projected to be approximately $180 million to $220 million for the full year[11] Store Count - Company-operated US store count decreased by 26, a 3% decrease[12] - Company-operated Canada store count increased by 1, a 4% increase[12] - Partner-operated store count increased by 42, a 9% increase[12]