Zevia PBC (NYSE:ZVIA) FY 2026 Conference January 12, 2026 08:00 AM ET Company ParticipantsAmy Taylor - CEOGirish Satya - CFOConference Call ParticipantsSarang Vora - Equity AnalystAmy TaylorGreat.Sarang VoraOkay, guys, it's 8:00 A.M. Let's get started. I'm Sarang Vora, Equity Analyst at Telsey Advisory Group. It is my pleasure today to host Zevia. As many of you may know, Zevia is a better-for-you beverage platform focused on soda, energy drinks, and tea. Last year was an inflection point in their sales, an ...

Financial Data and Key Metrics Changes - The company reported record holiday sales for the period ending December 31, driven by a 9% total sales growth, with a 5% retail segment comp [3][4] - Gross profit margin improvement is expected to be around 25 basis points for the quarter, slightly lower than the anticipated 50 basis points [5] - The company aims for a gross profit margin improvement of 50-100 basis points for the fiscal year, with current expectations leaning towards the higher end [5] Business Line Data and Key Metrics Changes - Urban Outfitters led the retail segment comp with a 9% increase, followed by Free People at 5%, and Anthropologie at 3% [4] - FP Movement achieved an 18% comp growth over the holiday period, while Nuuly reported a 43% sales growth, driven by a 41% increase in average active subscribers [6][40] - Wholesale performance was strong, with a 13% increase during the holiday period, primarily driven by Free People and FP Movement [6] Market Data and Key Metrics Changes - The company noted that all brands were comp positive, indicating strong performance across all channels [4][6] - The European market for Urban Outfitters performed exceptionally well, contributing to profit recapture [36] Company Strategy and Development Direction - The company is focused on attracting new customers while preserving the brand's core identity, resulting in growth across all customer segments [18][20] - There is an emphasis on increasing engagement and relevancy through expanded product categories, which has led to higher transaction frequency [20] - The company is strategically managing inventory and costs in response to tariff impacts, aiming to maintain product freshness and quality [27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the consumer's resilience, citing low unemployment, wage growth, and a positive stock market as indicators of a strong consumer environment [11][12] - The company anticipates continued strong performance in the new calendar year, particularly in full-price sales [7][12] - There is optimism about the potential for Urban Outfitters to return to profitability, with expectations of margin recapture and improved performance in North America [36][39] Other Important Information - The company is leveraging AI to enhance creative processes and automate operations, indicating a forward-looking approach to technology integration [47] - The management team highlighted the importance of maintaining a balance between promotional strategies and brand positioning to ensure sustainable growth [38] Q&A Session Summary Question: How is the company managing tariffs and inventory? - The company has implemented a tariff management strategy focused on cost control and minimal price increases, while ensuring inventory growth aligns with sales [25][27] Question: What is the outlook for Urban Outfitters and Nuuly? - Urban Outfitters is expected to approach break-even profitability, with significant opportunities for margin recapture, while Nuuly continues to grow at a healthy rate with strong customer retention [34][40][41]

Urban Outfitters (NasdaqGS:URBN) FY 2026 Conference January 12, 2026 08:00 AM ET Company ParticipantsTricia Smith - CEOMelanie Marein-Efron - CFOConference Call ParticipantsAdrienne Yih - Director and Senior Equity AnalystAdrienne YihThere we go. Okay, great. Good morning, everybody. Happy New Year. My name is Adrienne Yih. I'm the retail analyst from Barclays, and I couldn't be happier to kick off another year. I love having you at the 8:00 A.M. slot because you always have good news, certainly for the pas ...

Financial Data and Key Metrics Changes - The company reported impressive average unit volumes (AUVs) nearing $6.5 million, with five consecutive quarters of positive traffic growth, indicating strong operational performance [1][10] - Restaurant margins are anticipated to increase by nearly 100 basis points this year, contributing to raised EBITDA guidance for 2025 [20][21] Business Line Data and Key Metrics Changes - The Pizookie Meal Deal has been a significant driver of traffic, providing both existing and new customers with a value entry point into the brand, which has positively impacted frequency and sales [12][19] - The company has focused on foundational operations and product innovation, including a pizza category refresh and seasonal Pizookies, which are expected to enhance customer experience and drive sales [14][23] Market Data and Key Metrics Changes - The company has seen outsized growth in late-night sales, contributing to overall traffic increases, although these checks may be smaller in absolute terms [18][19] - The management noted that there is still significant headroom for growth in most markets, indicating potential for expansion without cannibalization [27][29] Company Strategy and Development Direction - The company is focused on foundational strategies that emphasize operational excellence, team member experience, and product innovation, aiming for sustainable growth and profit expansion [15][34] - There is a strategic shift towards unit growth, with plans to open two new units in the second half of the year and a longer-term goal of reaching approximately 425 units [25][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's trajectory, emphasizing the importance of consistency and long-term planning over short-term results [34] - The leadership team is committed to building a more durable business model that can support new unit growth while maintaining operational efficiency [32][34] Other Important Information - The company has implemented a structured share buyback program, which has been more aggressive this year compared to historical levels, reflecting confidence in the stock's valuation [31][33] - Management highlighted the importance of investing in remodels and capital improvements to ensure team members have the necessary tools to deliver quality service [32] Q&A Session Summary Question: What foundational changes have been made to improve operations? - Management discussed alignment and accountability as key focuses, leading to improved team member experience and operational execution [3][4] Question: What attracted the new CFO to BJ's? - The CFO highlighted the strong business model, high AUVs, and positive traffic-driven sales growth as major attractions [7][8] Question: What are the drivers of recent traffic growth? - Management attributed traffic growth to improved operational execution, enhanced NPS scores, and effective marketing strategies around the Pizookie Meal Deal [11][12] Question: How does the company view average check trends? - Management noted that while the Pizookie Meal Deal may compress average checks, it brings in new customers and drives overall traffic, which is beneficial in the long run [17][19] Question: What are the biggest drivers of improving margins? - The focus on foundational operations and accountability at all levels has led to improved restaurant margins [21][22] Question: What is the outlook for unit growth? - Management indicated a cautious but optimistic approach to unit growth, with plans to analyze past performance and market conditions before committing to a specific number [26][29]

Financial Data and Key Metrics Changes - The company has achieved approximately $15 million in annualized cost savings by the end of 2025, with an additional $5 million expected in 2026, bringing the total to $20 million [46][52] - The path to profitability is becoming clearer, with expectations of slightly positive Adjusted EBITDA on an annualized basis in 2026 [52][61] Business Line Data and Key Metrics Changes - The company has seen significant improvements in its product taste profile, leading to better performance of new flavors compared to legacy products [12][55] - The energy drink segment, while currently small, is recognized as a future growth opportunity, with plans to increase focus and resources in this area [55][56] Market Data and Key Metrics Changes - The company has successfully transitioned into mainstream distribution channels, particularly with Walmart's Modern Soda set, which has significantly transformed its business [28][33] - There is a noted increase in household penetration, currently at 4%, indicating substantial growth potential in the market [59][65] Company Strategy and Development Direction - The company is focused on innovation, with plans to introduce new flavors and limited-time offers to drive consumer interest and distribution [15][16] - Marketing strategies have shifted to emphasize brand storytelling and influencer engagement, aiming to attract new consumers [42][44] Management's Comments on Operating Environment and Future Outlook - Management acknowledges a macro trend away from sugar, positioning the company to capitalize on this shift as it expands into mainstream markets [28][33] - The company is optimistic about future growth, citing a significant runway for expansion in distribution and product offerings [59][66] Other Important Information - The company has re-engineered its cost structure to improve unit economics, allowing for reinvestment into promotions and brand marketing [46][52] - The company is preparing for a major marketing push in 2026, coinciding with the rollout of redesigned packaging [44][65] Q&A Session Summary Question: What are the key strategies for distribution? - The company has successfully gained distribution in mainstream channels, particularly through partnerships with major retailers like Walmart, which has led to increased visibility and sales [22][28] Question: How does the company plan to drive sustainable growth beyond 2026? - Management highlighted the importance of household penetration, distribution gains, and the potential for growth in the energy drink segment as key drivers for long-term growth [57][59] Question: What are the cost-saving opportunities identified for 2026? - The company plans to achieve an additional $5 million in cost savings primarily from COGS and selling and warehousing expenses, which will support ongoing marketing and customer acquisition efforts [46][51]

Financial Data and Key Metrics Changes - The company reported $465 million in sales for the fourth quarter, representing a 15.6% increase from the prior year, which is at the high end of guidance [1] - The enterprise comparable sales increased by 5.4%, with an 8.8% increase in the U.S. and a 0.7% increase in Canada [1][2] - The company repaid $20 million of debts and repurchased 1.1 million shares at an average price of $8.75 during the fourth quarter [2] Business Line Data and Key Metrics Changes - The company opened 10 new stores in the quarter, totaling 26 for the year, indicating strong new store performance [2] - The adjusted EBITDA for the last twelve months through the third quarter was $249 million, with adjusted EBITDA margins in the mid-teens [5][7] Market Data and Key Metrics Changes - Approximately 40% of customers are under the age of 45, and 45% reside in households earning over $100,000, indicating a younger and more affluent customer base [8] - The company has over 6 million active loyalty members, contributing to close to $1.7 billion in sales [5] Company Strategy and Development Direction - The company is focusing on growth, innovation, and balanced capital allocation as its strategic pillars [8][9] - The U.S. market is prioritized for new store growth, with 85%-90% of new stores planned to be opened in the U.S. [10] - The company aims for a leverage ratio of approximately 2x by the end of 2027, while continuing to invest in new store growth [18][20] Management's Comments on Operating Environment and Future Outlook - Management believes that the thrift retail sector is experiencing secular adoption, driven by cost of living pressures [2] - The company expects adjusted EBITDA growth to begin in 2026 as new stores contribute positively to profitability [20][22] - The company is well-positioned to benefit from the growing reuse economy and has a durable source of supply through increasing on-site donations [22][23] Other Important Information - The company has paid $490 million to nonprofit partners for secondhand clothing and housewares over the last five years, keeping 3.2 billion lbs of reusable goods out of landfills [5] - The company has a unique business model as the number one for-profit thrift retailer in North America, operating 367 stores across three countries [4] Q&A Session Summary - No specific questions and answers were provided in the content, thus this section is not applicable.

Financial Data and Key Metrics Changes - The company reported $465 million in sales for the fourth quarter, representing a 15.6% increase from the prior year, which is at the high end of guidance [1] - The enterprise comparable sales increased by 5.4%, with an 8.8% increase in the U.S. and a 0.7% increase in Canada [1][2] - The company repaid $20 million of debts and repurchased 1.1 million shares at an average price of $8.75 [2] Business Line Data and Key Metrics Changes - The company opened 10 new stores in the quarter, totaling 26 for the year, indicating strong new store performance [2] - The adjusted EBITDA for the last twelve months through the third quarter was $249 million, with adjusted EBITDA margins in the mid-teens [5][7] Market Data and Key Metrics Changes - Approximately 40% of customers are under the age of 45, and 45% reside in households earning over $100,000, indicating a younger and more affluent customer base [8] - The company operates 367 stores across three countries, with significant growth opportunities in the U.S. due to under-penetration [4][10] Company Strategy and Development Direction - The company is focused on growth, innovation, and balanced capital allocation as its strategic pillars [8][18] - The U.S. market will be the primary focus for new store growth, with 85% to 90% of new stores planned for the U.S. [10] - The company aims for a leverage ratio of approximately two times by the end of 2027, while continuing to invest in new store growth [18][20] Management's Comments on Operating Environment and Future Outlook - Management believes that the thrift retail sector is experiencing secular growth, driven by cost of living pressures [2] - The company expects adjusted EBITDA growth to begin in 2026 as new stores start contributing positively to profitability [20][22] - The management is optimistic about the opportunities in 2026 and beyond, citing a unique category tailwind with thrift outpacing traditional retail [22][24] Other Important Information - The company has paid $490 million to nonprofit partners for secondhand clothing and housewares over the last five years, highlighting its commitment to sustainability [5] - The company has a strong cash-generative model that allows it to self-fund new store growth, reduce debt, and return capital to shareholders [24] Q&A Session Summary - No specific questions and answers were provided in the content, thus this section is not applicable.

Financial Data and Key Metrics Changes - Urban Outfitters reported a record holiday sales growth of 9% for the period ending December 31, driven by a 5% retail segment comp, with all brands showing positive comps [3][4] - The company anticipates gross profit margin improvement of approximately 25 basis points for the quarter, slightly below the initial expectation of 50-100 basis points for the year [5] - FP Movement achieved an impressive 18% comp growth during the holiday period, while Nuuly reported a remarkable 43% sales growth [6][43] Business Line Data and Key Metrics Changes - Urban Outfitters led the retail segment with a 9% comp growth, followed by Free People at 5% and Anthropologie at 3%, which was lower than anticipated due to increased promotional activity [4][5] - Nuuly's growth trajectory remains strong, with a 41% increase in average active subscribers contributing to its 43% sales growth [6][43] - Wholesale also performed well, achieving a 13% growth during the holiday period, driven by Free People and FP Movement [6] Market Data and Key Metrics Changes - The consumer market appears resilient, with low unemployment, growing wages, and a positive stock market contributing to consumer confidence [11][12] - The company serves a middle-income and above customer base, which is currently feeling optimistic about their purchasing power [11] Company Strategy and Development Direction - The company is focused on attracting new customers while maintaining its core customer base, with positive data indicating success in this strategy [18][19] - There is an emphasis on increasing engagement and improving product relevancy by expanding categories such as denim, shoes, and beauty [20] - Urban Outfitters is working on margin recapture and has made significant improvements in its pricing architecture to protect margins [39][40] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the consumer's resilience heading into 2026, with expectations of continued strong performance [48] - The company is optimistic about leveraging AI to enhance creative processes and operational efficiency in the future [49] Other Important Information - The company is managing tariff impacts by negotiating with vendors and adjusting pricing strategies to minimize cost pass-through to consumers [25][26] - Inventory management remains disciplined, aligning growth with sales to ensure product freshness [27] Q&A Session Summary Question: How is the consumer sentiment affecting sales? - Management noted that the consumer feels good, with low unemployment and rising wages contributing to a positive outlook [11][12] Question: What are the expectations for Urban Outfitters' margin recovery? - Urban Outfitters is expected to approach break-even for fiscal year 2026, with significant opportunities for margin recapture in North America [38][40] Question: How is the company addressing tariff challenges? - The company is focused on managing costs and negotiating with vendors to mitigate tariff impacts while maintaining product quality [25][26]

Financial Data and Key Metrics Changes - The company reported $465 million in sales for the fourth quarter, representing a 15.6% increase from the prior year, and at the high end of guidance [1] - The enterprise comparable sales increased by 5.4%, with an 8.8% increase in the U.S. and a 0.7% increase in Canada [1][2] - The company repaid $20 million of debts and repurchased 1.1 million shares at an average price of $8.75 during the fourth quarter [2] Business Line Data and Key Metrics Changes - The company opened 10 new stores in the quarter, totaling 26 for the year, indicating strong new store performance [2] - The company has over 6 million active loyalty members, contributing to approximately $1.7 billion in sales [5] Market Data and Key Metrics Changes - The company noted that the customer base is becoming younger and more affluent, with approximately 40% of customers under the age of 45 and 45% residing in households earning over $100,000 [7] Company Strategy and Development Direction - The company is focusing on growth, innovation, and balanced capital allocation as its strategic pillars [8] - The U.S. market is prioritized for new store openings, with 85% to 90% of new stores planned for the U.S. [9] - The company aims to enter new strategic adjacent markets in North Carolina and Tennessee [9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's position at a key inflection point, with expectations for positive Adjusted EBITDA contributions in 2026 [2][10] - The company anticipates that new stores will start contributing to EBITDA growth beginning in 2026, with 2025 expected to be the trough for EBITDA margin [17][19] Other Important Information - The company has repaid $120 million in debt since its IPO, including $20 million in the most recent quarter, and aims for a leverage ratio of approximately two times by the end of 2027 [17] - The company has a proven innovation engine, focusing on price value optimization, cost efficiency, and data science insights [13][19] Q&A Session Summary - No specific questions and answers were provided in the content.

Financial Data and Key Metrics Changes - The company is approaching profitability, with expectations set for this year, following a reset of the business over the last 18 months to two years [7] - Cost-saving initiatives have resulted in approximately $15 million in annualized savings, with an additional $5 million targeted for 2026, bringing total savings to $20 million [42][43] - The path to profitability is seen as straightforward, with modest volume growth and incremental pricing actions expected to contribute positively [48] Business Line Data and Key Metrics Changes - The product portfolio has seen significant innovation, with improvements in taste and the introduction of new flavors that have outperformed legacy products [11] - The company has successfully launched new flavors like Strawberry Lemon Burst and Orange Creamsicle, which have driven distribution and sales growth [14][15] - The energy drink segment, while currently small, is recognized as a future growth opportunity, with plans to expand into mainstream markets [50][52] Market Data and Key Metrics Changes - The company has gained national distribution through Walmart, marking a significant step in transitioning to mainstream retail channels [26][30] - There is a noted shift in consumer preferences towards "Better For You" products, with increasing acceptance of clean-label options in conventional grocery settings [26][31] - The company has identified significant distribution white space across food service and convenience channels, which are expected to drive future growth [56] Company Strategy and Development Direction - The company is focused on expanding its distribution and increasing household penetration, with only 4% current penetration noted [56] - Marketing strategies have evolved to emphasize brand storytelling and influencer engagement, with a redesign of packaging to enhance consumer appeal [38][40] - The company aims to leverage its unique position as a clean-label, affordable soda option to capture a larger share of the market [62] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's transformation journey and the potential for accelerated growth in the coming years [55] - The company is optimistic about the macro trends favoring health-conscious consumers and the opportunity to attract those moving away from conventional sodas [60][62] - There is a strong belief that the company's product offerings can address a significant market need, particularly among consumers seeking healthier alternatives [61] Other Important Information - The company has been re-engineering its product, packaging, supply chain, and organizational structure to support its growth strategy [55] - The focus on clean ingredients and zero sugar is positioned as a key differentiator in the beverage market [60] Q&A Session Summary Question: What is the long-term growth outlook for the company? - The company has undergone a significant transformation over the past 18 months, setting the stage for accelerated growth and profitability in the next 12 months [55] Question: What are the key opportunities beyond 2026? - Opportunities include increased household penetration, distribution gains, and growth in the energy drink segment, which is expected to contribute to sustainable growth [56]