Core Insights - The company reported strong operational and financial performance for fiscal 2025, with system-wide sales growth of 2.8% and a 20% increase in the quarterly dividend [3][4] - Revenue for the year reached CAD 2.57 billion, marking a 3% year-over-year increase, while adjusted diluted EPS rose by 16.5% [2][7] - The company ended 2025 with CAD 603 million in unrestricted liquidity and plans to increase maintenance capital expenditures for 2026 [5][16] Financial Performance - SG&A as a percentage of revenue improved to 36.48% from 36.72% in 2024, driven by lower retail financing fees and cost discipline [1] - Gross margin expanded by 65 basis points to 45.04%, attributed to a higher mix of furniture sales and improved vendor engagement [2][7] - Adjusted diluted EPS for the fourth quarter was CAD 0.74, reflecting a slight increase from CAD 0.73 after normalizing for a prior-year legal gain [12] Sales and Market Trends - Furniture sales were highlighted as a standout category, growing 6.3% for the year, supported by a focused assortment strategy [8] - The company experienced modest fourth-quarter revenue growth of 0.7% to CAD 671.4 million, with same-store sales up 0.6% [10] - Management noted challenges in the fourth quarter due to Canada Post disruptions and increased promotional intensity [13][14] Capital Allocation and Future Plans - The company plans to open two new corporate stores and up to five franchise locations in 2026, with maintenance capital expenditures expected to be CAD 45 million to CAD 50 million [17] - A strategic priority remains the creation of a real estate investment trust, with timing dependent on market conditions [21] - The company intends to be opportunistic with share buybacks, aligning with long-term strategy [21]