ELPQF (ELPQF) Q2 2026 Earnings Report, Transcript and Summary

Good morning, everyone. My name is Daniela, and I will be your conference operator. [Operator Instructions] This is Liverpool's Second Quarter 2026 Earnings Call. Today, we have with us Mr. Gonzalo Gallegos, Chief Financial Officer; Mr. Jose Antonio Diego Viejo, Treasury and Investor Relations Director; Mr. Enrique Grinan, Investor Relations Officer; and Ms. Nidia Garrido, Investor Relations Coordinator. They will be discussing the company's performance as per the earnings release for the second quarter 2026, which was issued yesterday, Monday, July 27. If you did not receive this report, please contact Liverpool's IR department, and they will e-mail it to you or you can download it at the IR website. To ensure focused discussion, this call is for investors and analysts only, and we will be taking questions exclusively from them. Any forward-looking statements made during this earnings call are based on information that is currently available. They are subject to risks and uncertainties that could cause actual results to differ materially from the expectations and assumptions discussed today. This may be due to a variety of factors, including the risks outlined in El Puerto de Liverpool's most recent annual report. Please refer to the disclaimer in the earnings release for guidance on this matter. I will now turn the call over to Mr. Gonzalo Gallegos.

Good morning, and thank you for joining us today to discuss our second quarter results. The second quarter unfolded against a challenging operating environment. Consumer demand remains soft, competitive intensity increased across several categories and discretionary spending continued to be concentrated around key promotional events. The FIFA World Cup also temporarily affected consumer spending patterns, adding further pressure to consumer demand across most categories, particularly apparel. Despite these conditions, our diversified business model enabled us to navigate these headwinds while continuing to deliver resilient results. Throughout the quarter, we remain disciplined in executing the priorities we established at the beginning of the year, balancing commercial competitiveness and profitability while continuing to invest in the strategic investments that will strengthen our long-term position. All 3 of our business segments contributed to consolidated revenue growth. Our financial services and real estate businesses continued to deliver strong growth, while retail posted positive growth despite a challenging operating environment. We also made further progress on the stabilization of our logistics network and the expansion of our real estate portfolio. Let me now walk you through our second quarter results in more detail. During the second quarter, consolidated revenue reached MXN 57.3 billion, representing a year-over-year growth of 1.5%. All 3 business segments contributed positively to this performance. Financial services once again delivered the strongest growth with revenues increasing 9.9%, followed by real estate at 8.6%, while retail also delivered positive growth of 0.4%. Turning to our retail business. The operating environment remained challenging with a sluggish macroeconomic backdrop, driving cautious consumer behavior and a greater concentration of discretionary spending around key promotional events, including Mother's Day, wholesale and Father's Day. Consumer spending was also temporarily affected by the World Cup, resulting in softer demand across most categories. While sporting apparel and TV and video benefited from this event, apparel was particularly affected, especially Suburbia, given its greater exposure to the category. Against this backdrop, we remain focused on executing the priorities we established at the beginning of the year. The work we have done over the past several quarters to improve the health of our inventory, together with the benefit of a stronger peso gave us greater flexibility in managing our commercial strategy. This allowed us to maintain positive sales growth, execute impactful promotional events and expand merchandise margins despite the softer demand environment. Our World Cup campaign is a good example. While the tournament temporarily shifted consumer spending away from several categories, we successfully captured the increased demand for sports-related merchandise. At Liverpool, sporting apparel and TV and video grew 60% and 28%, respectively. We sold approximately 345,000 Mexican national team jerseys, achieving a 98% sell-through, 5 percentage points above Adidas's wholesale average and generated nearly MXN 300 million in [ Panini ] sales. According to Adidas sell-out data, Liverpool ranked among the brand's top-performing retailers globally, finishing more than 60% above its top-performing European account and just below its top-performing U.S. account. Equally important, the operational challenges associated with the start-up of our new logistics facility, which affected first quarter performance have now been fully resolved. Merchandise availability normalized at the beginning of the quarter, allowing commercial performance to once again be primarily driven by consumer demand and purchasing patterns rather than supply chain constraints. As a result, consolidated retail sales grew 0.4% or 1.8%, excluding discontinued operations, while same-store sales increased 0.7%, representing an improvement from the 2% decline recorded in the previous quarter. Performance remained mixed across formats with Liverpool delivering same-store sales growth of 1.7%, driven by higher average ticket, while Suburbia recorded a 6.4% decline. Performance across our banners reflected the same underlying trends. Although shifting Suburbia's mid-season sales from the first to the second quarter was expected to provide a tailwind to sales, the promotional benefit was more than offset by weaker consumer demand. At the same time, a healthier inventory position reduced the need for clearance activity, lowering the contribution from clearance-driven sales. Suburbia also continued the deliberate repositioning of its motorcycles and mobile phones categories, prioritizing profitability and a healthier sales mix over volume, which also weighed on reported sales growth during the quarter. Despite these headwinds, Liverpool continued to perform better than the broader market. While Liverpool same-store sales increased 1.7% and TA department stores reported growth of 0.9%, while the apparel and footwear segment declined 1.9%, reflecting the challenging industry environment. It is also important to consider the comparison against the prior year. Throughout March of last year, our commercial strategy was focused on accelerating inventory normalization through elevated promotional activity and clearance events. This year with inventory returning to more normalized levels, our priority shifted toward disciplined inventory management and gross margin preservation rather than pursuing incremental sales through aggressive discounting. While this approach moderated top line growth, it supports stronger profitability and a higher quality sales mix, which we will discuss in more detail later. Finally, we completed the migration of our e-commerce platform from Oracle [ ATG ] to commerce tools, marking a major milestone in our unified commerce strategy. This next-generation architecture provides greater scalability, flexibility and a significantly enhanced consumer experience while enabling faster innovation across our digital channels. This next-generation architecture provides greater scalability, flexibility and a significantly enhanced consumer experience while enabling faster innovation across our digital channels. The transition temporarily weighed on digital GMV growth, reflecting system-related disruptions associated with the migration, some of which continued to affect performance during the quarter. Despite these headwinds, our digital business continued to expand. Liverpool digital GMV increased 4.8%, with digital penetration reaching 32.3%, an expansion of 55 basis points, while Suburbia increased its digital penetration by 15 basis points to 8.7%. We also continue to see healthy growth in customer engagement with active app users increasing 12.4%. These investments reinforce our commitment to technology innovation and delivering a best-in-class unified commerce experience, positioning us well for sustainable long-term growth. Overall, while demand remained soft during the quarter, we exited the period with normalized logistics operations, a healthier inventory position, a strengthened digital platform and a continued focus on profitable growth, positioning us well for the second half of the year. Turning to profitability. Our commercial strategy remains focused on maximizing long-term value rather than pursuing incremental sales through aggressive promotions. As discussed earlier, with inventory levels returning to healthier levels, we prioritized gross margin protection, disciplined inventory management and a more profitable sales mix of volume. As a result, consolidated commercial gross margin expanded by 141 basis points to 32.4%. The improvement was primarily driven by a stronger peso, which reduced the cost of imported merchandise and the normalization of inventory levels, which allowed us to reduce promotional intensity compared with the prior year when clearance activity was necessary to accelerate inventory reduction. From an operational perspective, the start-up of our Arco Norte distribution center is now behind us. Additional logistics costs were limited to approximately MXN 100 million during the quarter, bringing the cumulative impact to approximately MXN 250 million, fully in line with the guidance provided during our first quarter earnings call. The facility is now operating under normal conditions with the only significant milestone remaining being the transition of our parcel delivery operation to Arco Norte. While this final migration and a limited number of system optimizations will continue over the coming months, we expect any remaining financial impact to be immaterial. We also continue to strengthen our inventory position. Total inventories increased a modest 1.5% year-over-year, primarily reflecting planned merchandise receipts for the upcoming commercial season. More importantly, we entered the second half with a significantly improved inventory position compared to a year ago, allowing us to operate with greater pricing discipline and lower promotional activity. Turning to our Financial Services business. Performance remained strong during the second quarter, supported by healthy customer engagement and solid growth across our credit ecosystem. During the quarter, we further increased the penetration of our proprietary credit cards through targeted commercial initiatives around key promotional events, reaching 54.2% at Liverpool and 30.4% at Suburbia. As a result, our active cardholder base expanded to 8.8 million, representing a year-over-year increase of 7.8%. This translated into a 9.5% increase in our gross loan portfolio and a 9.9% growth in financial services revenues. Beyond our traditional credit card business, we also saw solid momentum across our digital financial products, including personal loans, cash advances, off transactions and our insurance marketplace, further strengthening the breadth of our financial services ecosystem. Turning to asset quality. The NPL ratio stood at 4.7% at the end of the quarter, an increase of 72 basis points versus the prior year, reflecting the expected evolution of our portfolio. We continue to strengthen our allowance for credit card losses with provisions totaling MXN 2.1 billion during the quarter, an increase of 27% year-over-year. Importantly, the higher provisions expense was absorbed by the continued expansion of our financial services revenue, reflecting our ability to balance portfolio growth, profitability and prudent risk management. As a result, our reserve coverage ratio improved to 11.2%, an increase of 130 basis points compared to the prior year, while NPL coverage remained strong at 2.6x. As we've discussed over the past several years, the post-pandemic environment provided an attractive opportunity to responsibly expand our customer base. This strategy has allowed us to add millions of new customers while significantly growing our loan portfolio with expected gradual normalization of NPL levels as the portfolio matures. Going forward, we see a greater opportunity to drive growth by increasing engagement with this large customer base while maintaining a disciplined approach to risk. As a result, our focus will increasingly shift towards balancing growth, profitability and asset quality through disciplined underwriting, current portfolio management and a more balanced growth pace. We believe this approach will support attractive returns while maintaining a resilient credit portfolio over the long term. Turning to our real estate division. Performance remained solid during the second quarter. Real estate revenues increased 8.6% year-over-year, while portfolio occupancy improved to 94.1%, an increase of 50 basis points compared to the prior year. These results were also supported by favorable lease renewals, selective repricing initiatives and the continued optimization of our tenant mix, which helped offset the temporary moderation in foot traffic associated with the World Cup and demonstrated the resilience of our real estate portfolio. At the same time, we continue to strengthen the positioning of our shopping centers as destinations for entertainment and community engagement, complementing the traditional retail offering. For example, during the quarter, we hosted initiatives such as the Food Fest at [ Perisur ], creating immersive experiences around the World Cup that attracted visitors, increased customer engagement and reinforce the relevance of our properties beyond shopping. Turning to our consolidated results. Gross margin expanded by 188 basis points year-over-year to 41.9%. As discussed earlier, this improvement was driven by favorable foreign exchange dynamics, disciplined inventory management, a more selective promotional strategy and a greater contribution from our financial service business. These factors more than offset the remaining costs associated with the final stages of the Arco Norte ramp-up, which, as expected, continued to decline during the quarter. Operating expenses increased 10.6% compared to the prior year, primarily reflecting salary-related increases, higher marketing investment associated with the World Cup and the increase in loan loss provisions, consistent with the evolution of our credit portfolio. EBITDA reached MXN 8.5 billion during the quarter, decreasing 1.2% year-over-year. EBITDA margin stood at 14.9%, a contraction of 41 basis points versus the prior year as the benefits from gross margin expansion were more than offset by softer-than-expected sales growth and the planned increase in operating expenses. Turning to Nordstrom. Following the reporting calendar alignment we discussed previously, this quarter reflects a full 3-month operating period from March through May. Accordingly, the current quarter is not directly comparable to the prior year period, which only included 10 days of operations. During the quarter, Nordstrom continued to deliver solid operating performance with revenues increasing 5.9% year-over-year and adjusted EBITDA margin expanded by 58 basis points to 9.7%. Reported net income continued to reflect the incremental noncash depreciation associated with the purchasing accounting adjustment recorded at the time of the acquisition. Despite this effect, Nordstrom generated net income of $69 million, resulting in a contribution of MXN 807 million to our results of associates. Moving below the operating line. Net financial expense totaled MXN 1.9 billion, a 54% decrease versus the prior year, primarily reflecting significantly lower foreign exchange losses as a result of our lower U.S. dollar exposure. Results from associates also provided additional positive contribution during the quarter, improving approximately MXN 1 billion versus the prior year, primarily reflecting the performance of Nordstrom, as discussed earlier, together with a strong recovery at Unicom. Overall, consolidated net income increased 55% year-over-year to MXN 5.1 billion, reflecting the combined strength of our operating performance, disciplined foreign exchange risk management and the positive contribution from our associates. Turning to CapEx. We maintained a disciplined approach to investment during the quarter. Capital expenditures totaled 48% reduction compared to the same period last year, reflecting the completion of the most capital-intensive phase of our logistics transformation while continuing to invest in initiatives that support our long-term growth. Approximately 42% of CapEx was allocated to store expansions, remodels and capital improvements, while 36% was invested in logistics and technology, including the remaining investments in Arco Norte logistics platform and our unified commerce capabilities. Turning to cash flow and our balance sheet. Operating cash flow reached MXN 3.4 billion on a cumulative basis, reflecting the strong cash generating capacity of the business. We ended the quarter with MXN 1.2 billion in cash and equivalents, while net debt to EBITDA remained low at just 0.6x, providing ample financial flexibility to support our growth strategy. Beyond our operating and financial performance, I would like to highlight a few milestones achieved during the quarter that further reinforce the strength and positioning of our business. First, our financial strength contributed to be recognized by the leading rating agencies. On May 13, Standard & Poor's affirmed our corporate credit rating at BBB with a stable outlook rating above the sovereign method. Subsequently on June [ 2 ], Fitch Ratings affirmed both our national scale and international credit ratings with a stable outlook. This affirmation reflect the resilience of our business model, financial management and the strength of our balance sheet. We also continue to strengthen Liverpool market position and global recognition. During the quarter, the company was included in the Dow Jones [ MILA ] Pacific Alliance Index and recognized in Forbes Global 2000 ranking. In addition, we expanded our G portfolio with 6 new international brands. Liverpool also received the highest distinction from E-Commerce 2026 for its customer-centric omnichannel strategy and was recognized by the International Group of department stores as one of the world's leading department stores in retail media. Our General Manager of the Liverpool business, Carlos Marin, was elected President of the IGDS, further reinforcing Liverpool's leadership with the global retail industry. Finally, we continue to strengthen our real estate portfolio through the acquisition of the remaining ownership interest in Galerias Metepec, providing us with full control over the property's leasing operations and greater operational flexibility. Before we conclude, let me share a few thoughts on our outlook for the remainder of the year. While the operating environment remains challenging, we remain focused on balancing commercial competitiveness and profitability while continuing to invest in the strategic initiatives that will strengthen our long-term position. Looking ahead, we expect to benefit from more favorable year-over-year comparisons during the second half of the year. However, the macroeconomic environment remains uncertain. Consumer demand continues to be soft and competitive intensity remains elevated. As a result, we believe it is appropriate to align our expectation with current market conditions. Accordingly, for full year 2026, we are revising our Liverpool same-store sales guidance to a range of 2.5% to 3.5%, our Suburbia same-store sales guidance to a range of minus 1% to plus 1%, our digital GMV growth guidance to a range of 10% to 12%, our net loan portfolio growth guidance to a range of 6% to 8% and our EBITDA margin guidance to a range of 14.5% to 15.5%. While we expect to partially mitigate the impact of lower same-store sales through continued merchandise margin improvement, disciplined expense management and the growing contribution of our Financial Services business, we believe it is prudent to reflect the softer demand environment in our updated profitability guidance. Despite the near-term environment, we remain confident in the long-term fundamentals of the business and our ability to deliver profitable growth. Thank you for joining us today. We appreciate your continued confidence and support. We will now be happy to take your questions.

[Operator Instructions] Our first question comes from Alexandre Namioka at Morgan Stanley.

Just wanted to explore a bit the second quarter same-store sales performance. I think you covered, but I just wanted to delve a bit into the details here. What -- I mean, in the release, you mentioned the FIFA World Cup boosting sporting apparel and TV sales in the quarter, while the broad apparel segment actually suffered because of the event. Just wanted to get a better sense here. How should we think about the net effect from the World Cup in this quarter to gauge the performance in the coming quarters here? And also a bit on the -- particularly on the Suburbia guidance, if I'm not wrong here, I think the same-store sales performance for the full year actually implies a pickup in the second half. Just wanted to confirm what exactly are the drivers? How much is this being driven by macro? How much this is coming from the micro performance here?

Thank you, Alexandre. Let me start with the World Cup first. It is difficult to isolate the precise impact because the World Cup affected consumer behavior in different ways. Overall, we believe it had a net negative effect on the business. While there were some bright spots like sports apparel and TV and video, it also reduced traffic across most other categories, particularly in apparel. So the positive contribution from sports-related categories was more than offset by weaker performance overall. Now let me talk about Suburbia. You are right that Suburbia underperformed the broader market. However, it is important to recognize that several company-specific factors affected the comparison. While the shift of the mid-season sales into the second quarter was expected to provide a benefit, it was more than offset by weaker consumer demand. In addition, with inventory in a much healthier position, we intentionally reduced the clearance activity compared to last year, and we continued repositioning our motorcycles and mobile phones categories in order to improve profitability. So even though we are not satisfied with the level of sales growth, we are very satisfied with the improvement in gross margins, also with our cost control and the overall profitability of the business. In fact, Suburbia operating profit for the second quarter improved versus last year despite the weaker sales. So while the same-store sales headline wasn't what we expected, we believe it doesn't fully reflect the underlying performance of the business. Now looking ahead regarding Suburbia, as you remember, last year, inventory levels normalized throughout the third quarter. So we will have a more comparable base regarding clearance sales and also we'll have a benefit of weaker comps. And that's why we expect the Suburbia overall performance to be better in the second quarter -- sorry, in the rest of the year.

Our next question comes from [ Ryan Lavin ] at Barclays.

So 2 parts here. So first, digging a little bit more into guidance on the same-store sales, what do you guys see as the normalized balance between the ticket and traffic at both formats? And then also looking at the Nordstrom, so the contributions were pretty good this quarter. So looking into the back half, what are you guys expecting from Nordstrom in terms of contribution? And then any synergies you can find between your core brands and Nordstrom?

Thank you, Ryan. So let me start with the guidance. And let me put it in the context of what is our forward outlook for demand. So overall, our view hasn't changed a lot since the beginning of the year. We continue to see a cautious consumer environment with soft demand in several categories and overall spending concentrated around promotional events. Now during the second quarter, the World Cup added another layer of complexity as it affected traffic, particularly in apparel. While that impact was temporary, we continue to operate in a low growth environment with soft demand. So we have incorporated that view into our updated guidance for the full year. We will continue to focus on protecting margins, maintaining disciplined expense management and leveraging the strength of financial services and real estate rather than pursuing incremental sales through more aggressive promotions. So if we have to combine, there are some internal things that we expect to maintain during the second quarter like the promotional environment. And there are some external like FX and the overall macro condition and that we have to see how it plays out. Now talking about Nordstrom, we're certainly happy with the development of the business. As you know, we don't provide a guidance on that, but we certainly want to build on the momentum created so far. So we're happy with the result and management, we believe it's doing a great job maintaining sales growth and margin improvement. The kind of synergies from a financial standpoint, we think Nordstrom is a long-term investment. So the financial benefits associated with synergies will take longer to materialize. So we expect the synergies to build over time as we continue optimizing things like private label development and sharing some best practices like in e-commerce and customer service.

Our next question comes from Gabriela Leme at Goldman Sachs.

I would like to explore a bit more the financial division. You have consistently described the rising NPLs as part of your strategy to expand the risk appetite and return to pre-pandemic levels. But now with same-store sales somewhat soft at both banners and consumers clearly pulling back on spending, is there any scenario where you like -- where you would consider moderating the pace of credit expansion? And then my second question related to the expense pressures into the remaining of the year. How should we think about your planning to drive efficiencies and balance margins? Is there any specific initiatives underway? And how should we think about labor expense pressure going forward?

Thank you, Gabriela. Let me talk about our credit business first. We are -- let me start by saying that we're comfortable with the current trajectory of the portfolio. As we've discussed over the past several years, the increase in NPLs is a natural consequence of the strategy we implemented to expand our customer base following the pandemic. The evolution we've seen so far has been consistent with our expectations. So looking ahead, we do not expect -- we do expect the portfolio to enter a more mature phase. As our customer base has reached greater scale, we see an opportunity to grow by increasing customer engagement rather than through additional risk appetite. So our focus will increasingly be on balancing growth and profitability and asset quality rather than taking on additional risk appetite. Having said that, we're not focused on a specific NPL target. Rather, we expect the portfolio to evolve with credit quality remaining consistent with our long-term objectives. Now talking about overall expenses and margins. Let me talk about margins first. Margins benefit from both structural and temporary factors. So a stronger peso provided a meaningful tailwind while overall healthier inventories and a more disciplined promotional calendar improved gross margins. We will not expect the same level of expansion every quarter, but we do believe the business is better positioned than it was a year ago. And regarding overall expenses, we are looking at overall profitability with disciplined expense management rather than broad cost reductions. So we will continue to invest on our strategic priorities while maintaining tight control over discretionary spending and driving productivity improvements across the organization.

Our next question comes from Joe Thomas at HSBC.

I had a couple of questions, please. First of all, on real estate. There is an expansion in occupancy year-on-year, but it's declined quarter-on-quarter. I'm just wondering how you're seeing that business, why you think there's been a sequential decline? And how robust you feel the real estate business is in this weak consumer environment? That's question one. And then secondly, you've talked about financial services and growing them by improving engagement. Can you just give a little bit more color on what you mean by improving customer engagement and what the scale of opportunity is there, please?

Thank you, Thomas. Let me talk about real estate first. We believe our retail business has done very good, and we are very happy with the overall occupancy. As you know, we try to balance occupancy with having the right tenant mix to make the shopping centers attractive for the customers, generate foot traffic and engagement and sense of community beyond the traditional retail offering. And maybe the KPIs that you're seeing is because as we have added on additional meters, particularly behind the [ METC ] expansion, we may have some distortions regarding overall occupancy throughout the quarters. But overall, the increase in occupancy has been consistent throughout the several quarters. So overall, we are very happy with the performance. And together with financial services, it is helping us offset the lower performance of our retail business. Now talking financial -- about financial services, as you know, throughout, and as I mentioned earlier, we have had several years of appetite risk expansion. So we have taken on millions of additional customers. So the way we think about it is that we have an opportunity to keep having additional financial services revenue in -- not only with our traditional credit card business, but also with some other financial products like personal loans, cash advances, off transactions, insurance and other type of financial services.

And just coming back to the real estate business. What indications are you getting on the financial health of your tenants in this difficult environment?

Well, we don't discuss individual tenants performance. But overall, what I can share you with you is that overall their performance is similar to ours on the retail side. But given the variety of tenant mix that we have, the different tenants in different industries have different type of performance.

Our next question comes from [ Ricardo Lida ] at GBM.

[ Ricardo ] from GBM. Two questions. First of all, with current leverage levels and cash materially higher year-over-year, how are you prioritizing capital allocation across growth, balance sheet strength and shareholder returns? And then moving over to the digital business. GMV growth slowed down significantly last year attributable to e-commerce platform migration. Could you provide more color on this platform? What levers does it provide to reaccelerate digital growth? And when should we expect to observe such benefits?

Thank you, Ricardo. So let me talk about capital allocation first. our capital allocation follows a bit the size of the business. So our #1 priority is the retail business. The second is the financial services and the third is our real estate business. And regarding dividend, every year, we take a look at our dividend policy. And I have a lot of discussions whether the current dividend policy is appropriate or not. And as part of those discussions, if you take a look at the last few years, we have consistently grown the percentage of the prior years profit return to the shareholders as part of our dividends. So overall, we think this conservative approach provides a lot of flexibility to support the growth of the business. So we intend to keep that strong balance sheet. Now let me talk a bit more about our digital business. The migration of the e-commerce platform have a higher impact on digital GMV that we initially expected as there were some system-related disruptions that affected the performance during the quarter. The migration itself has been completed, but we're still working through the stabilization of certain processes and expect those efforts to continue over the coming weeks. Looking ahead, we expect the impact to decrease during the third quarter. So even though we may still face some near-term effects, the new platform provides a much stronger foundation for discoverability, innovation and customer experience, which is important for the long term.

Very clear. Let me just clarify if I understood correctly. So on the impact on the GMV for the following quarters, we should expect maybe a sequential recovery, maybe not quite to normalized levels yet, but not quite of a slowdown as we saw this quarter?

Yes, you are correct. We expect digital growth to reaccelerate during the second half of the year with a meaningful improvement beginning in the third quarter. So while some stabilization will continue, we expect the migration-related disruptions to decrease significantly in these weeks. And obviously, the pace of improvement will also depend on the overall consumer environment, which, as I said, remains soft.

[Operator Instructions] There are no further questions at this time. So that concludes our question-and-answer session. I would now like to hand the call back over to Gonzalo Gallegos for some closing remarks.

Thank you for joining us today and for your continued support. We look forward to speaking with you in the next quarter. Have a great day.

That concludes today's call. You may now disconnect.