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Okay. Great. Thank you very much. Good morning, everybody, and thank you for joining us. I'm Adrienne Yee, Barclays Specialty Retail Apparel and Footwear Analyst, and it is my pleasure to welcome Keisha Steelman, President and Chief Executive Officer of Ulta Beauty, and Chris Del Orofis, Chief Financial Officer. So I'd always like to give a little bit of background on the management before we start for those who aren't as familiar with the company. Keisha joined Ulta beauty in 2014 and has held leadership roles spanning store operations, merchandising, enterprise strategy, including chief store operations officer, chief operating officer, and president, before being named president and CEO in January of 2025, a very well-deserved recognition. Prior to Ulta Beauty, she also held leadership positions at Family Dollar, Home Depot, and Target. Chris is the newcomer, right? So Chris joined Ulta beauty as a CFO in December of 2025, and prior to that, he served as EVP and CFO of Beck & Dickinson, and previously to that, more than two decades at Johnson & Johnson in a variety of senior finance leadership roles. I think what we've really been impressed so far, having known you, is the amount of rigor from your kind of CPG background that you're now bringing and overlaying to the retail landscape here. So we thank you for all that work there. What makes this story particularly interesting today is entering a period where years of investment in loyalty, digital capabilities, stores, services, and technology are now beginning to create meaningful leverage. So today I want to focus on five key areas that sit at the center of the investment debate. The first is what investors misunderstand about the beauty category and perhaps the Ulta beauty story. Why Ulta's moat and competitive advantages remain very difficult to replicate. Number three, the strength and loyalty of this customer. right the beauty enthusiast not just any beauty purchaser but the beauty enthusiast number four the next wave of growth including the potential scaling of wellness and other white space opportunities and then the fifth to wrap it all up is how these growth investments translate into more leveraged earnings so that's where chris comes in to do all that lifting on the on the finance so keisha let's start with the consumer that's we're asking all of our companies sort of there's a debate of a consumer macro you can see it every day and every data point um where we were at the beginning of the year at the end of the year we were kind of like um regenerating actually um ulta was returning to positive comps and coming out of kind of the normalization post-covid um where we are kind of in the second quarter and how you are looking at the backdrop right with all the oil going up gas going up etc yeah what we've seen is that the consumer you're right they've been navigating a very dynamic macroeconomic industry right now today and there's a lot of unknowns that are out there but we've not really seen any change with our consumer shopping behaviors and I think it's because they view beauty as an affordable luxury it's also self-care for them it's something that they can do for themselves even if they feel like they have to pull back in other parts of their spending the fact that Ulta Beauty has categories from low end, you know, entry-level price points all the way to luxury, we have something that is for absolutely everyone in the store. And we're really happy how we've seen our consumer re-weathering the storm right now. And you saw that when we just reported our Q2 earnings that, you know, we beat our guidance and we've raised our guidance for the year. So we feel like this is going to be in the category that the consumer is goingto continue to invest in spend. Great. And then with SpaceNK, you have a little exposure to the European consumer and the health of that. We've heard, you know, I would say, you know, notions of a deterioration in that European consumer. Can you speak to that and the fact that SpaceNk is, you know, quite a bit at the prestige side of it? Yeah, absolutely. You know, SpaceNks has, you know, previously reported strong double-digit comps. We're not seeing any change in that consumer either we're still actively investing in growth in the uk with space and k stores so yeah i mean i think that they're experiencing very similar things to that what we are they're just a little bit earlier in their growth cycle with how ulta beauty was many many years ago but we're continuing to invest in space and kay we see the uk is still a very important growth opportunity the uk has the sixth largest beauty market in the countries so we're we're investing, we like what we see, and we're really happy with that acquisition. Fantastic. Any meaningful differences in income cohorts, age cohorts or regions of the country? And I know that there's been discussion between sort of more of the mass versus prestige that you've called out on the earnings calls. Yeah, I can take that. Yeah. Sure. Again, as Keisha said, beauty is demonstrated to continue to be a very resilient category. folks are very engaged. Our per average member spend was actually up. As we looked at the dynamics that played out in Q2, we didn't see any change, whether it be age demographics, income cohorts. Behaviors were pretty consistent across. We actually had increases in all average spend at the income cohort level and age demographics. So I think, again, it's a testament to the category. It's a testament to the competitive moat that we have. We executed strong in the quarter, and we continue to feel good about how we progress through the year. Obviously, we're watching it, but I think we've set up a guide that we feel confident that we can deliver, as we said on our earnings call, and continuing to focus on what we can control and delivering strong performance. Great. As an analyst, I often get sort of these questions about just beauty as a category. And within beauty, there are so many subcategories. There's fragrance, skincare, makeup, haircare, services, now wellness. So can you talk about the speeds or the maturity of each of those categories for Ulta specifically within the box and how you think about those over the next one-year horizon, then maybe the three-year horizon? Yeah, as you mentioned earlier, I've been with the company for 12 years. And what I would say is that we've really evolved into a much more balanced portfolio than when I started 12 years ago. We were so heavily reliant on the makeup category in and of itself. So let me just take those one by one. So fragrance right now is one of our largest growing categories. It's really continuing to propel our business. If you looked at our Q2 results, a little bit of our AOV or average volume transaction was due to the fragrance category itself, we've leaned in to fragrance. We have gone out there and publicly said that we want to be number one in the U.S. in fragrance, and we're on the path to be able to do that. Fragrance is really important to us because not only is it continuing to bring a new guest into the category, and as you mentioned it, you know, skews a little bit more higher end luxury, prestige, and price point, but it also is bringing in a new consumer around the male consumer. A younger male consumer is coming into this category, and we like what we're seeing because it gets them into our store. The behaviors around fragrance specifically is that you used to buy a signature scent, and that's the one you kind of stuck with. Now, you're buying multiple scents, and you're layering, and your actually creating your own personalized scent, and you're even changing that from day to night. So we love what we're seeing in the fragrance category itself. We've also got some great exclusivities that have launched with us with a brand like Noise, some strong partnerships with Ella Langley. So that cultural moment and product coming together is really brought to life in fragrance. If you look at skincare next, so skincare, the K-Beauty, launching stronger in the U.S. for the last 18 months, Ulta Beauty has been the number one retailer of K-beauty. And in the last quarter, I shared that 50% of our sales in K-Beauty were due to exclusives. So our merchants have done a fantastic job of really going out and curating the best of the best of the assortments within K-BEAUTY. I announced on our second quarter earnings call that we're bringing in Porya, the number 1 C-beauty from China. So it's not just about K- BEAUTY, it's also about all types of beauty and we're leveraging even our partnerships in Mexico and the Middle East to look for other brands that we can bring into the Ulta Beauty ecosystem. So I think you're going to see that continuing to grow, especially with GLP-1 as part of more common everyday life here in the United States. Skin elasticity is really important. And then where we've been facing some challenges, especially in skin care, is we're cycling over some pretty big growth in regards to some brands that we launched in a broader base. But as we go through the rest of this year, that will ease up a little bit on our comps because we will have cycled through that. If you look at makeup, what I love about makeup is that we went through a period of time where it was like the fresh face look, which does take some makeup to have a fresh, flawless face. But it's getting into a heavier makeup cycle where bigger glam looks are coming back, heavier eye makeup, kind of the 1980s trends, which I personally am happy about, not only for the business, but it's what I loved. That's when I got really involved into makeup. So you're going to see heavier uses of makeup, which is great for us, and I love what I'm seeing in the innovation pipeline for makeup specifically. If you go to hair care, hair care also, it's not just about shampoos and conditioners anymore. It's about scalp treatment, scalp health, longevity of your hair. GLP-1s is impacting hair care. also. So you're bringing in a new consumer that has different needs than maybe they had five years ago into the category. And the fact that you mentioned that we have services in the majority of our stores definitely is a competitive advantage for us. Not only that you can get your service, but the expertise that wehave with people who really do know and understand this category that can help you shop in a category thatcan be a little bit mystifying at times. And then you wrap that up, you know, really with wellness. And wellness is a huge growth category for us. 95% of our guests are shopping wellness today. And anything we can do to really simplify that shopping experience in a highly complex, very diversified space, I think is going to be a huge win for us in the future. So the fact that we're really diverse across all those portfolios. We have levers that we can pull for all those categories working together. I think makes Delta Beauty very well positioned to be successful here in the future. Fantastic. So let's move on to kind of beauty distribution. So historically, department stores, right? And then there are really only two specialty multi-brand beauty players. One is yourself and one is Sephora. And then you have masks and you have drugstores and all those. We've seen the continuation of, you know, kind of closing stores and department stores. So you're becoming more and more important to the brand. We've also seen you exit the Target partnership as of August. And I think today, actually, they're launching Target Beauty Studio. So can you talk about kind of what prompted that and how you think about kind of the opportunity to take back a lot of that share that preexisted there and whether you think, you know, what are the competitive elements? Yeah, well, I want to start with actually the first part of your question, or your question was that there's only a couple out there that do specialty beauty end-to-end, and you were talking about us in Sephora. We're really the only ones that do end-To-End low to luxury. So I do think that puts us in a different element around specialty beauty, and especially as the consumer's wallet's pressured, I do think it puts us in a really different situation. So I'm very thankful for our founders for starting off Ulta Beauty in a very unique and special way. You asked about Target specifically. Yes, we ended the partnership in the middle of August, and I'm sehr thankful for all of our partners. For our big brand, beauty brands, L'Oreal, Estee Lauder, LVMH, for successfully exiting the partnership, along with the other prestige beauty brands that came with us. They all came back into the Ulta Beauty ecosystem. That's really important for us because, number one, they understand and recognize how important it is for our associates to be able to bring that brand to life. We've been at this for 35 years. To be ableto articulate and give service to a guest that is looking for spending a little bit more on a product, you have to have the expertise to beable to do that. And, you know, we were at the end of this partnership with Target. We learned a lot. I'm very thankful for our experience there. But we also now have that data of those guests that were shopping, and shopping Target and also shopping Ulta Beauty. And we've got, you now, full marketing efforts of keeping them and getting them back into this ecosystem because they can only buy those Prestige Beauty products back in Ulta now. I've seen the beauty studio. I think it's great what Target is doing. However, what we're doing is very different than what they're doing today. Yeah, I think just from a consumer standpoint, take my analyst hat off, I think, you know, there is a purpose. Like, so you are off mall, you're driving to the store with that as the destination and the primary purpose is to buy beauty at your store. And I think that going into kind of larger stores that have this as another component is a very different, you Know, environment. Yeah, absolutely. And when we initially launched in Target, it did cannibalize our stores and it was no different. And I've spoken about this many times that it was no different than when a competitor had opened and you'd see a period of time of cannibalization, then you'd recover those sales. This is an opportunity for us to really lean in to those guests and get them back into the Alta Beauty ecosystem. Great. So let's segue into competitive position. And what investors really care about is kind of building a moat. We've touched upon a lot of those, but let's bring it all together. And I always like to ask this. If somebody handed somebody else unlimited capital, and they asked them to recreate Ulta Beauty from scratch, what would be the hardest piece of the model to replicate? And why is capital alone not enough? I think it's a great question. What I would say is, I mentioned this earlier, we've been at this for 35 years. Anybody can sell products or put products on a shelf, but how you bring those products to life and the experience that you give, this is a very experiential business, and that matters. I today, when I walk into a store, and I think of myself as a beauty guru, but when I meet a great associate, trust me, they're getting a lot of my wallet, and I'm spending a lot money at that time. So I would say the one thing that's really difficult to replicate is the associates that we have working in our store, the love for beauty and wellness, and how they bring beauty and illness to life. I love the fact that we're very authentic. You know, beauty is different things to different people. You don't have to look one specific way to walk into our store. You don' t have to get dressed up. You can come as you are. Our associates get that. We just want to help people feel their best versions of themselves. That is really difficult to get into your DNA as a company and to really perfect that. And we' ve been doing this for 35 years, and I think that' s the one thing that really does set us apart from everyone else. Yeah, one of the things I always mentioned, kind of as you analyze retail companies, is back in the day, it was all about, can you make somebody feel like a million bucks walking out of the store from when they came into the store? And beauty just does that by itself, but I think Ulta does that in spades. So, Chris, with that in mind, from a financial perspective, this hard-to-replicate advantage, how does it show up in the financial model? Is it primarily in customer acquisition, retention, inventory productivity, returns on capital, or any of those you want to talk about? Yeah, a little bit of all of the above, but I love to keep kind of the growth orientation. What I was excited about, love about the model, and love about the strategy that we have is there's sort of like an embedded flywheel in who we are, right? You know, Keisha's touched on a lot of these things, but, you know, the unmatched access to just outstanding brands that we specifically curate services, experiences. You can't get that anywhere else. That obviously attracts a ton of guests. It builds our loyalty program. As we're successful executing there and delivering on that promise with guests, the brands want to partner with us, right? So it's this flywheel then of the brands wanting to put more business there. It brings the best newness. It brings exclusives. As we do that, it attracts more guests into the ecosystem. They're spending more. They're engaging more. We're getting new customers. As that happens, it furthers that flywheel with our brand partners wanting to do that. It builds up loyalty. That gives us more data. It allows us to engage in a very unique, differentiated way with our guests, which further kind of builds out their loyalty lifetime value and so there's literally like an embedded flywheel in kind of our growth algorithm that allows us in a very attractive market to deliver strong growth win share and as the CFO starting with a strong growth profile you can make a lot of things happen within your P&L I'm sure we'll talk about profitable growth later but it's the anchor part of our algorithm to get to double-digit EPS growth, and I spend a lot of time making sure that our primary emphasis is on serving the guest, winning the guest and making sure there's a healthy top line. Great. I'm glad you brought up the flywheel because that's my next topic. So when I think about Ulta today, I think about the customer ecosystem, a beauty ecosystem. You have one of the largest loyalty programs in retail, particularly in beauty, but frankly anywhere. And how should investors think about the value of that asset? Well, I often think of us as not just a retailer, but we're as much of a data company. And the data that we have of our 47 million loyalty members and 95% of our sales are coming through our members. We really know and understand who's shopping with us. The value of that is just incredible. And when I think about the investments that we've made over the last few years in our foundational systems, making sure that we're going to be able to we've got really good clean data from end to end. We've got good data governance processes in place. Doing that hard work early on has positioned us really well to beable to leverage AI. Because if you leverage AI but you don't have clean data, you're going get hallucinations and it's not going to really work well for you. So while it was tough for a period of time that we were so heavily weighted on our CapEx, OpEx investments on foundational work, it's paying off for us now in our go-to-market type activities because we can leverage that AI. And I think that's a very unique proposition that we have. It also is really important, not just for us communicating with the guests in marketing, how we're putting products in front of them, but also with our brands. The fact that we've got clean data, it is real, true, $47 million active within the last rolling 12 months, so our numbers are real clean, too, but that when they give us their marketing dollars through UB Media, that we can really show the return on that investment. It's really starting to work right now. So to me, while it's still viewed as the early innings of AI, I think it's going to be a competitive asset for us in the future. And you tier your members. members. So what do you learn from your most loyal members that you can kind of bring down to kind of more of that bulk of the membership? Well, I can't share all my secret sauce here, but what I will share is that we do have really good marketing efforts on how do you convert a bronze into platinum, a platinum into diamond, and keep your diamonds really happy. That's what we're working on every single day. Great. So, Chris, I'm going to move over to the model itself. It's been, there was four years of the prior management investments, and that was really sort of a catch-up, right? It was four hours of just structural from the ERP system and then building up all the different layers that are needed. In some ways, you got to leapfrog over decades of pre-existing infrastructure and we think a lot about the tech stack. You're one of a few companies, a handful of companies that is ready for this next kind of journey on the AI journey. So last year we still had some investments. It was still an investment year. In the back half of this year we are now switching from investing to harvesting that and turning that into growth and you've committed to this with the long-range algorithm, 4% to 6% top line, mid-single-digit op-inc, and then EPS in the low double-digits range, 12% operating margins approximately, but you're above that. So tell us how all that works together. How should we think about the 12.5%, 12.6%, I believe, is what we're going to get this year? You've talked about not going backwards on margin. So just help the investors understand, where do we go from here? Yeah, so maybe some principles in how we're bringing it to life. I mean, one, look, best-in-class companies, they need to have financial discipline. My core focus, like I said before, is making sure we're investing. While we're able to harvest some of what was done in the past two years, last year most notably, right, in the second half we invested further in wellness expansion, got Marketplace up and running, international expansion kind of started. So we are there's an element of like harvesting and the carryover impact of those. I want to make sure there's a distinction like we're still actually investing in the current year. Right. So every year you want to start. We want to making sure that we're we're strengthening our areas of differentiation. We're meeting the we're ahead of emerging trends and meeting the guests where they are to kind of drive that top top side part of the flywheel around growth. Right. Are we growing competitively in a healthy market? So it starts with that, but then how do you fuel the investment? How do you feel the growth one? I don't believe you should have these kind of what I would call one year where you have massive investment than not. I think prioritizing and having a steady cadence of investments, letting those kind of prime them in the business, let them soak, let them reap the benefits, have strong KPIs and measurement against them and make sure that they're delivering against the business performance, and there should be a steady rhythm of this. And then to fuel those investments, there's a handful of things that we've really been focused on doing. One is you have a base spend pool that you always need to repurpose and sort of reimagine and reshape. We kind of call it divest to invest. What you've done in the past, you don't necessarily need that, and you should move those investment dollars to the future. I think the second thing is within those investments is are you getting the most utility out of them? We're always striving to improve the ROI and what we're doing. I think some of the promotion that you see us doing this year is a great example of where we're making sure that every promotion dollar is working as hard as possible for us. And then lastly, you have to have a strong efficiency productivity agenda where you're kind of reinventing the base, driving productivity, getting true efficiencies and savings. All those combined fuel the investment you need, and that will translate to winning top-line growth, profit growing faster than sales. So we will always start the year like we did this year with some leverage opportunity. We're going to grow SG&A slightly less than sales that will drive some modest margin improvement. We are not going backwards. You noted the margin. We've kind of taken this concept of 12% floor off the table. We're already beyond that. You see us expanding margin this year in a dynamic environment. That translates to nice profit growth in terms of earnings profit dollars. The principle I've brought in is how do I maximize that? At the end of the day, if I can get the profit dollar base larger and grow that faster without it coming at the expense of margin, you should want me to grow that. So if I can do it through top line and reinvestment, not at the expense of margin, I'll do that. And then I've been very focused on cash flow, too. We continue to prioritize after supporting organic growth and investment in CapEx shareholder buybacks. And you've seen us increase that from kind of our normal level to one and a half billion. And dann we further increased it this past quarter, announcing taking that to 1.8 billion this year. And it translates to really nice double digit earnings. And so I think two takeaways, consistency with financial discipline and a double digit EPS algorithm that we can compound, it lends itself to a nice value creating formula over time. And the fact that we Can do this in a very competitive dynamic environment, I think is a real testament to our strategic mode. Great. Let's just bring that a little bit closer in for the back half of this year, because a lot of people have that as the horizon at the end of the year. You know, we're seeing in 2Q that the U.S. consumer just slowed, I mean, as they should have from Q1. But in other areas, not beauty, they're getting more promotional. So across apparel, across, you know, staples, et cetera, or they're investing back into price. So one of the things that we've always said is, you knows, as we get to holiday, you start competing for gift dollars, right? So it's sort of, you know, not so much beauty to beauty, but it might be beauty gift to gift. So as we think about that baked into the guidance, how have you thought about that type of dynamic happening? Yeah, look, we've been very focused on how can we bring compelling value. It's about how do you bring differentiated value to the guest. And there's different ways you can do that, the assortment and how you curate things together, all through the lens of profitable growth and winning kind of that purchase, right? So that's one thing. Two, we were very transparent, right, we did build flexibility into the back half guide to make sure that we could be responsive in what we felt would continue to have an environment that may have some more promotional intensity. So we feel like we have that dialed in. So I think holistically, when you look at the newness that we have, our ability to kind of be more personalized and targeted and meet the guests where they are, be effective with our promotions as part of that, right? So every promotion dollar then is working hard for you, or we're using promotions to either add to our loyalty program or expand average ticket. they then work harder for you. So we feel good based on what we shared coming out of the first half and how we set up the back half guide. We wanted to give a guide that we felt we had conviction that we could deliver, knowing the environment that we were in. Promotion isn't always discount either. I think that's what I think can be a misnomer at times, like gift with purchase. Sometimes when people have a perceived value, that'swhat's really important too. So you'll see us leaning into multiple ways to give value to the consumer. It's not always just about a discount or a price. That's a great point. So in our last few minutes together, let's talk about the next wave of growth, the future. You have so much white space opportunity. The box is only so big. I've questioned you about services as another leg of growth. But clearly, wellness is a huge opportunity. It's still very small. So you touched on K-beauty, C-beuty, a lot of trends that are happening globally that we can embrace here in the U.S. So what does the next three years look like, three to five years look Like in terms of the next legs of sectors of growth in terms Of category expansion? Yeah, I'll talk a little bit About wellness. Wellness itself is a $400 billion category that is outgrowing beauty Right now today. It's also very highly complex. No one's really winning In this category. When we did some research with our consumers, they trust Ulta Beauty. They would trust Ulsa Beauty, is what they said, to purchase their wellness items and categories, and 95% are buying wellness, and why would we not want to try to take advantage of that while they're in the box? Again, I mentioned that it's a very complex category, so the more that we can simplify it, and we've been on a journey with this. We've really narrowed it down to four areas that we're leaning into. It's supplements and nutrition. It's rest and renew. It's intimate care. And it's everyday essentials. And so those four categories are how we're continuing to build. We've opened up a few wellness shops. We've got some good early learnings. We do believe that wellness could be the next billion-dollar category for us, and we're really leaning in to continue to drive it that way. There's other vectors that, as Chris mentioned, marketplace, our engagement with TikTok Shop. I think that there's other avenues that we can continue to grow internationally. But we're going to share more when we have our investor days of really showing how those building blocks can really take Ulta Beauty to being even more than what it is today. But I'm very, very excited about the future. And wellness is a big driver that I can really see coming to life right now as we speak. Yeah, it feels like wellness, once it gets sort of that proof of concept and you feel like you have the right tools and the right brands in there, it can really take off. But also wellness, to me, is an opening for men, right? Because I think on the makeup side of things and the beauty, historical beauty, we always think of it as traditionally female-led. But as you were saying, they're entering the fragrance category, and I certainly see men, you know, really taking care of themselves. Yeah, Marketplace is also another place where we can introduce men. And some of our top items that we've put onto our marketplace have actually been men's categories. In fact, one of the brands, Particle, is one of top-selling brands that we brought onto the marketplace. And it's just great to see. Men are leaning more into this category than they ever have before. And what we've heard from them is that they are very comfortable coming into Ulta Beauty, which is a great, great thing for us and I think a place where we can continue to lean into. Great. I think it's important to note, like wellness, right, it's an end too. It's a nice growth opportunity, but it can be very profitable growth. We're leveraging our four walls, leveraging our full infrastructure. It's an incremental purchase. The guest is there. So this one can be high-value creation, as you think of it, kind of end-to-end down through the P&L. Great. Two last questions. One for you, Chris. When we think about the margin beyond where you're currently at, should we think of a balanced approach between sort of top-line growth, creating leverage and gross margin opportunity or does one outweigh the other over some period of time yeah so one I think we need to make sure that we're competing in the marketplace that's always going to be core but but never at the expense of margin I think you're always going to see us be disciplined from an operating margin standpoint as kind of a primary vector to look at but the honest answer is yeah you have to be disciplined on on both it all starts with a healthy gross margin. And we look at it kind of top to bottom. One, we have an outstanding supply chain team that's doing a great job driving productivity within supply chain and managing channel shift dynamics, managing pressure from fuel. You've seen that show up in our results. Our merch team, in terms of the assortment we bring in, how we partner with our brands, making sure we're getting fair share and healthy margin. So there's a lot of time spent on gross margin, how we go to market with our stores. You actually saw us in this quarter actually get some leverage. And so we will be focused on both is the answer. Within year, like if you have to make small tweaks between the two, between the dynamics that are going on or quarterly nuances and timing, I wouldn't worry about that. But we're going to have an agenda on both. I think you'll net see gross margin be a little more stable. I think SG&A is where the core investment is that always under index versus sales to make sure that we're getting the leverage we need on operating margin. Great. And to close, Keisha, with you, if we're sitting here five years or five years from now, what would investors today have misunderstood about these stories? It's a great question. You know, one of the things that I think investors miss today is that this beauty category is a replenishment category. They also feel that, we talked a little bit earlier, that value is only based on price. And I'd say the third thing is that online is going to take over the world and the consumer is only going to shop online. What I would share is just a couple of facts. Number one is that our stores are still 80% of our sales are coming through the stores, while 20% is coming through online. 75% of all our members shop exclusively in-store. 20% shop omni-channel, and only 5% shop only online. So this whole thought process that stores are not going to be relevant, it's a misnomer. The other piece is this replenishment piece. Only 15% to 20% of our sales through our members are replenishment items, and the average consumer doesn't buy an item and wait until it's gone before they buy another one for replenishment. That means that 80% to 85% of the sales are replenishments. Of our sales coming through our numbers are new items that they've never purchased before. It could be in a different category. It could mean newness that comes. But that's a healthy part of our business. So while replenishment is important, that's not the end-all, be-all. So what I would say is that this is a growing category. We're leaning into newness, exclusivity, and innovation, and I think that's what separates us from everyone else and why our sales, I'm confident, that will continue to grow. Great. Thank you very much.