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Michel Brousset

Thank you, Allison, and good morning everyone. I am pleased to speak with you today and share our first quarter performance and outlook for the year. During the quarter, we made a strong progress against our growth strategy, elevating our powerful brands, launching breakthrough innovation, expanding points of distribution, and increasing community engagement and love while investing and support for our future.
As anticipated, Q1 presented some challenges as we had two anniversaries, strong growth and launches from a year ago, a decelerating beauty market, and a fluid macro and retail environment. We're encouraged, however, by the end of the quarter performance, which gives us confidence that our brands and businesses are poised to achieve our annual growth and profitability goals.
As we have discussed in previous calls, it is important to highlight that while we have a strong focus on quarterly, monthly, and even daily performance, we manage our business against our annual targets in order to maximize value creation. We're building a unique and a strong platform for growth and profitability that creates, acquires, accelerates, and scales the next generation of beauty and wellness brands.
Our studies are working very well. For strengthening our brands, driving industry leading innovation, and expanding our brands footprints so we can reach more and more consumers around the world. However, we are only at the beginning of our journey and much remains for us to do one key area of operational focus in the coming quarters is to continue to strengthen our supply chain.
We have achieved or are close to achieving our cost efficiency objectives, but we need to now work more on improving the need and flexibility of our supply chain to drive even greater reactivity, given the increasing levels of demand for our brands and innovation. Today, we have two powerful brands that have garnered critical mass while still having substantial runway for multi-year growth.
With Milk Makeup and Obagi Medical, we have a solid foundation in prestige and skin color. We have a core business in the US and a growing process internationally. We're achieving a strong growth in attractive channels including professional, specialty, retail, and online, and expect this momentum to continue as we drive awareness of both fronts beyond our core communities.
Continue to introduce more blockbuster innovations and expand into other regions and categories. Our increasing success with both brands and the power of our unique pure play beauty ecosystem, an industry that requires a deep and expertise, give us a distinctive competitive strength in attracting other brands and founders into our platform.
Let me now turn the call over to Manuel to go over our financial results in more detail.

Manuel Manfredi

Thank you, Michel. It is a pleasure to be here today to discuss our first quarter performance and also the continued progress of our strategy. So let's begin with a review of our financial performance. For the first quarter, we have reported a net revenue of $65.4 million representing a decline of 4.1% from the first quarter of last year. Adjusted gross profit margin remained strong, 76.4%, an increase of 10 basis points year over year.
Our adjusted EBITDA was $4.4 million for a margin of 6.7%, which reflects our continuous focus on investment in sales drivers in support of our growth. Now let's look at each brands specific performance. That thing with milk makeup, we saw revenue decline 15.1%. However, we saw solid domestic performance despite a broader slowdown in the prestige beauty category.
With milk make up ending the quarter on a strong note fueled by the highly successful launch of Hydro Grip gel. Indeed, we sold out quickly due to demand greatly exceeding our forecast. We're also very pleased with the brand's launch into Ulta, which sales beginning in late February. Both initiatives contributed to the brand's high single digit growth in the US retail sales.
Now, this solid domestic performance was offset by the construction of international sales, which faced a difficult comparison against last year Q1 distribution expansion, as well as inventory adjustment by retail partners. Additionally, the international launch of skin tint occurred later than in the US, resulting in minimal impact on our Q1 international performance.
As I will share shortly, we anticipate our growth drivers to accelerate strongly going forward. Adjusted gross profit margin of 69.5% represents a sequential increase of 460 basis points from Q4, but 180 basis points decreased from Q1 last year, reflecting added set up costs from our launch into all. Adjusted EBITDA total $4.4 million and the brand maintained a healthy adjusted margin of 14.9% of net revenue.
Moving to Obagi Medical, so we achieved net revenue of $36.2 million increasing 7.1% from the first quarter of 2024. This growth was tempered by out-of-stock issues in [KSKU]. We're actively advancing our supply chain transformation, including consolidation of our third-party logistics providers and the optimization of the distribution center network.
These strategic changes are designed to enhance operational efficiency and support long term scalable growth. Adjusted gross profit margin remains strong, increasing 60 basis points to 82%. And adjusted EBITDA total $5.9 million or 16.3% of net revenue, reflecting increased marketing investment and high supply chain costs in support of our future growth. Now let me turn to a review of our revenue driving for the quarters.
The quarter has been significant positive momentum across both brands that we believe position us for accelerated growth going forward. Starting with milk makeup, innovation continued to be a major driver. The launch of Hydro Grip gel skin tint, which was another standout success for the brands, and in a more strategic compression category than last year, fully got the gel tint success.
One category that has high levels of repeat and loyalty and that helps us drive our trust metrics on the brand. Digitally, both Milk makeup and Obagi Medical saw continued growth driven by our successful consumer acquisition and retention efforts.
We were especially pleased with [Ava's] performance, which reflects the increasing the size of the brand, as we have now fully lapped the transition to our first party model with our primary e-commerce distributor. Milk makeup also entered on the beauty, representing a major new US distribution for the brand.
The launch saw high consumer demand with a strong initial sellout and contributed to the delivery of the high single digit growth in US retail sales in the quarter.
We're very pleased with a strong partnership with the Ulta Beauty. Now, despite these wins, there were 3 main headwinds that impacted our results and were actively addressing each one. First product availability at Obagi Medical are ongoing restructure led to some supply chain disruptions, causing lower fulfillment rates and outs stocks on certain key products.
We have accelerated our supply chain transformation to fix this, consolidating third party logistic partners, redesigning our network, and boosting our operational capabilities to drive better fulfillment, greater reliability, and long-term growth. Milk makeup also experienced dropouts with demands for hydro grip skin gel tint are outpacing expectations. We expect to be in a stronger inventory position by the end of Q2.
Second, Milk makeup's international performance plays a tough comparison to Q1 last year when the brand launched in several international markets. In addition, the international launch of stets occurred later in the US and therefore did not contribute meaningfully to the Q1 results. And third, as expected, we saw some adjustment in inventory levels at certain retail partners compared to Q1 last year.
Overall, when we look at the fundamentals of our brands, we remain optimistic about the road ahead and expect our net revenue growth to accelerate going forward. Now, our confidence is grounded on several key growth drivers.
First, we continue to benefit from the introduction of breakthrough innovation fueled by a robust pipeline of category defining products that include both strengthening our core offerings and expanding into new categories. Second, the expansion of our digital channels. Here we're seeing a strong momentum supported by continued progress in acquiring and retaining high value consumers that are incremental to our brands.
Third, they continued growth in our retail footprint. Milk Makeup's launch at Ulta Beauty is off to a strong start, which is allowing us to reach incremental consumers to the brand. And finally, we expect to significantly improve product availability by the end of the second quarter. While these growth drivers give us confidence, we remain mindful of the broader macroeconomic environment.
We are expecting some pressure from software consumer sentiment and spending, particularly if tariffs and other factors continue to impact the broader macroeconomic environment. When it comes to tariffs, the majority of the impact for us falls within our cost of goods, and we believe it is quite manageable. The good news is that over 2/3 of our cost of goods originate right here in the US.
Thanks to the proactive work of our team over the past years, our exposure to China is now quite limited, representing only about 10% of our total cost of goods, mainly in packaging components. Taking this into account and assuming the current tariffs remain in place for the whole of 2025, including the latest news on China tariffs, we expect a low single digit% increase in cost of goods sold for fiscal 2025.
And that is already reflected in our guidance that's it. We're actively working to mitigate the impacts of ties through three key actions. First, we're optimizing our supply chain flows to further reduce our exposure to China. Second, we're preparing to implement selective pricing action, like in the low single digit range where needed.
And third, we are deepening our collaboration with supplier partners to unlock additional efficiencies. So now let's take a look at our balance sheet position. At the end of the first quarter, our cash position was$10.8 million and we had an additional $22.5 million available on our new revolving credit facility. Our net debt total $172.1 million compared to $154.2 million at the end of 2024.
The increase coming primarily from the costs related to the refinancing of our debt that extended our mativity profile to March 2030. Cash consumption in Q1 reflects a low adjusted EBITDA and an increasing inventory level in both brands to support expected sale growth in future quarters.
Looking ahead to the full year, we expect a strong positive adjusted to cash conversion, supported by disciplined working capital management and low capital expenditure. In addition, we're very pleased to report a substantial reduction in our non-recurrent legal costs. Based on our current forecast, we expect this cost to continue declining versus per year.
We had little changes in our share count and as of April 30, 2025, we had 123 million shares outstanding. Now turning to our outlook. While we remain mindful of the broader macroeconomic environment and assuming no further material change to current tariffs, we continue to believe that the successful execution of our growth strategy.
Along with ongoing enhancement to our internal capabilities, positioned as well to deliver on our full year guidance. We are targeting net revenue growth in the mid-teens and at an adjusted EBITDA margin in the mid to high 10s. The key drivers behind this expectation, as mentioned earlier, include the expansion of milk makeup across both Brick and Mortar and e-commerce channels in the US.
The improvement in fulfillment rates at Obagi Medical as we complete our operational initiatives and the continued rollout of blockbuster innovation on both brands, along with growing returns from ongoing marketing investments which are driving brand awareness, trial, and long-term loyalty. And with that now, I will turn the call back over to Michel to take you through our brand accomplishments in more detail.

Michel Brousset

Thank you, Manuel. Now, let's look at our performance by Brand starting with milk makeup. Our vision for milk makeup is to be the number one next generation beauty brand. It is already a cold beauty brand among Gen Z, increasing millennials, and hallowing to generals.
In recognition that the next generation see themselves and their values represented in the brand they use, a brand mantra to lift your look is a celebration of individuality and self-expression. It is not how consumers wear their makeup. It is what they do in it that matters. We have maintained a discipline focus on three growth pillars.
First, continue to launch market disrupting beauty innovation while expanding into high replenishment categories such as complexion. Second, expand our brand and community reach by broadening awareness through strategic brand partnerships, strengthening our core loyal Gen Z audience, and welcoming new audiences where our brand mantra.
Beauty point of view, and products resonate strongly, such as millennials and Gen X. And third, broaden our footprint by expanding the brand's process online and offline, both in the US and internationally. In March, milk makeup made it bold entrance into a large and highly competitive complexion category with the launch of Hydro Grips gel skin tint.
Building on the insight that most existing skin tins or tinted moisturizers don't last, thereby causing dissatisfaction with consumers. Milk makeup launched the first gel skin tint that is longer for up to 12 hours. Rooted in the brand's cult favorite hydro franchise, the product is strategically positioned to attract new consumers in a category known for strong loyalty and high repurchase rates.
Particularly among millennials, a key incremental audience for the brand. This marks the first step in unlocking the complexion opportunity, the largest category in prestige makeup, representing 47% of the face segment and a staple in consumer's makeup. It is a critical category to win and position the brand to the next level.
Resonating strongly with our community and beauty enthusiasts, it has become a viral success story, generating already $18 million in aired value and over $245 million impressions since its launch in March. Resulting in a sold out launch shortly after release with an average one unit sold per minute in Q1.
And has already been recognized with the 2025 cosmopolitan Holy Grail Beauty Award winner for the best skin tint category and 2025 Well and Good Beauty Award for the best tinted moisturizer. Now broadening our brand and community, I am excited to announce that Milk Makeup has partnered with the iconic Nike brand.
This is the first step in our partnership is the Nike Daart Tour in Los Angeles, bringing sport and self-expression together. The makeup partnership kicked off at [No] Studios in March and continues through race weekend in June, and there is much more to come.
Also, our strong March launch in Ulta Beauty's top 600 productivity doors presents a compelling potential opportunity for future expansion, as oldest broader footprint includes over 1,400 stores nationwide and 500 plus Ulta Beauty at target locations, reaching an incremental consumer that we were not previously capturing.
We're very excited about the early results and we're already achieving top rankings in the prime and set, lush, and skin tint categories. Now, moving to the world of high-performance skincare with Obagi Medical. Our vision for Obagi Medical is the number one physician dispensed dermatological brand in the world.
Today, we are the leading US physician recommended brand for the top three skin concerns pigmentation, fine lines, and wrinkles, and sagging skin or loss of elasticity, which together account for 2/3 of in-office skincare sales. We are now very proud to be the fastest growing top 10 professional skincare brand in 2024 by a very long margin, showing the potential and ability to stool growth domestically as we expand internationally.
We have maintained a disciplined focus on three strategic growth pillars. First, drive cutting edge science-backed innovation that delivers transformative results supported by market leading clinical data. Second, double down on our dermatological brand DNA re-anchoring in our medical heritage through a modern lens with impactful clinical testing, acceleration of open development, and deeper physician partnerships.
And lastly, growing brand awareness and expanding our footprint by increasing consumer recognition for Obagi Medical both domestically and internationally, fueling our physician centered ecosystem. Our two blockbuster innovations, ELASTIderm lifted and sculpt facial moisturizer, and ELASTIderm Advanced Filler concentrate, compete in one of the top skincare segments within the physician channel.
Delivering visible, clinically proven results. Both have earned significant editorial recognition with a lift up and scoped facial moisturizer awarded Best Moisturizer or Fine Lines by New Beauty in 2025. In Q1, we also expanded the SUZANOBAGIMD collection with two new products, including the super antioxidant serum and the moisture restore hydration replenishing cream.
These clinically backed innovations are inspired by in-office patient needs identified by Dr. Suzan Obagi and designed to be incremental and complementary to the existing portfolio. Looking ahead to Q2, we just launched the retinol and THA refining nitrine, a super exciting advanced dual action formula clinically proven to deliver smoother, more even looking skin in just four weeks.
Designed for consumers with lower retinol tolerance, this high performance yet gentle product offers an effective alternative. As an incremental addition to a nighttime routine, it attracts a new consumer while expanding usage within our existing base we showcase our dermatological brand DNA in two major physician center conferences.
The American Academy of Dermatology annual meeting in the US and the IMCAS World Congress in Paris. Today, these events welcome over 38,000 professional attendees, further strengthening our presence and leadership in the global medical aesthetic space as we continue to see convergence of health, beauty, and aesthetics worldwide.
Driving our dermatological brand DNA is growing all of our channels, including the digital world of AG.com. This strategy has been a 30% increase in homepage conversion following the implementation of updated brightening elements. Was also broadening awareness directly with consumers with a 1 year or year earning the value growth of 61%, building a flywheel to drive consumers to practices.
To conclude, we're very pleased to share another quarter of a strong progress towards our ambition. With a strong desirability for our brands globally and initiatives in place to accelerate our growth. We are confident in our ability to deliver our 2025 outlook and continue to drive sustainable, profitable growth well into the future.
Let me share why. First, we begin with the operational scale to manage a multi-brand platform with only two runs today and more to come into the future. Second, we possess a highly talented team with an expertise in managing global beauty brands of scale with significant growth opportunities in both geographic and category expansion.
In addition, our portfolio is balanced in structurally attractive segments of the beauty category, and all of this is supported by an asset lite, agile, and efficient structure that unlocks speed at scale. And finally, management incentives that are strongly aligned to drive long term value creation.
Now with that concludes our prepared remarks and let me now turn the call over to the operator to bring the question-and-answer portion of the call. Thank you.

Question and Answer Session

Operator

Thank you. Ladies and gentlemen, we will now be conducting the question-and-answer session. (Operator Instructions). Thank you. Our first question comes from Aaron Grey of Alliance Global Partners. Please go ahead.

John Chapman

Morning. This is John Chapman on for Aaron Grey. Thank you for the questions. So on Obagi, you referenced supply chain restructuring for Obagi in the PR. Could you expand upon that initiative and how you plan to improve, Operations and does that also potentially allow for greater success from the innovation you alluded to given streamlined operations.

Michel Brousset

Yeah, of course, thanks. I really appreciate the question. So I think we are, as I indicated in the prepared remarks, I think there is part of, we're just at the beginning of setting up, what we think is a very successful and into the future platform. An area we have to work on and and really strengthen is the flexibility of our responsiveness of supply chain. I think we have in the case of specific global value.
We've dialed the cost of that supply chain quite well. I mean, even the gross margins that we have. But the reliability and speed of the supply chain is not where we want it to be, meaning is, the lead times are quite long, it's relatively inflexible still and does not allow us to respond to the increased levels of demand that we're generating through our marketing and selling activities.
As a consequence of what we've done is we streamline the flow of goods, going from, Two steps on our warehousing capability to one step, which will make us more responsive and integrating that also with our online warehousing capability at the same time. And that transition is taking a little bit of time and frankly, one generated a little bit of disruption as we moved inventory one, from one place.
To the next. Now, on a go forward basis, what we believe is that will allow us to be, as you well pointed out, much more responsive in our ability to win, when demand peaks to respond to that demand which in the, in Q1, in the specific case of Hawaii hurt us a bit. We were out of stock in three or four key items that dampen our growth.

Operator

Thank you. Our next question comes from Ashley Helgens of Jeffrey's. Please go ahead.

Sydney Wagner

Hi, this is Sydney on for Ashley. Just wondering, can you discuss a little more the slowdown you saw in the physician channel, wondering if that's fewer visits to providers or maybe just being less basket add-ons to appointments. Thank you.

Michel Brousset

I, we, I don't believe we saw as per a slowdown in the physician channel. I think what is driving more the, slow down on the budget relative to prior years is more, we don't have the tailwinds that we had on our Amazon.
Business that we had last year, and Amazon last year, we remember we had a conversion of the model of Amazon into a new model, and we still are generating quite a bit of growth in Amazon and, in the high 20, low 20s to high 20 on a monthly basis, but there is less than we were generating last year because we have the tailwind of this suit or conversion. So that's the main reason the drive is is slow on.
On a value, I don't necessarily believe we are seeing a slowdown in the, in demand or this physician channel. It's is still within the channel is robust. I think the channel is still substantial and we expect this to be a source of growth this year.

Sydney Wagner

Great thank you.

Operator

Our next question comes from Jonna Kim of TD Cowen. Please go ahead.

Jonna Kim

Thank you, Michel, Manuel, for taking my question. Could you provide more color around the sell through trend versus selling just on Obagi and milk and also would love to hear your perspectives on how you're thinking about pricing, strategy given the tariff dynamics, and where the category is, would love any additional color there. Thank you very much.

Michel Brousset

Well, thank you, Jonna. Thanks for the question. I'll start with milk, which is we have the biggest swing between sell out and sell in. As we indicated in the call, there are US retail sales or sellout was in the high single digits was actually 9% with substantial acceleration, month over month as we, launched a scheme Tint and Ulta came into line. So we have quite a big difference between.
Lina sell out that it's mechanical in the terms of how goods flow between Q4, Q1, what we have in the base, and so on and so forth. And we believe that the levels of inventory we have across our retail partners today across the US and Europe are at a healthy level.
And what we see is just simply a dynamic of timing of selling out and timing of initiatives. At a global level where we're seeing a bit more, pressure from a retail sales standpoint is in two areas. One is in the EU, for milk, not our international business, but specifically in the EU.
We were seeing more pressure both on the retail side as well as selling side as retailers, our main retail partners transition inventory and so on and so forth. And in the US in our Milk Makeup.com as well as our online business. Business at for kind of our digital channels where we had last year, the jelly's launched at a disproportionate level of volume in our digital channels.
So anniversary in that, from a retail standpoint on jelly on digital channels in the US, was a bit more complicated. So, that is the dynamic of me between selling and so through. In the case of Obagi, there's no real differences between our selling asset through even our model is fundamentally as sufficient. This sense model in which we book our net sales once we sell the product to physicians, and I sell through basis.
And in the case and the rest of our business, and the large, big chunk of our business are digital channels in which we, there's no real substantial difference between selling. In terms of price increases, we, I mean, we're monitoring tariffs, like everybody else is. It's been, as it's been for everybody, with a bit of instability and what exactly the direction is even at the highest rates.
Even if, for some reason we went back to the extremely high rates that we saw at the beginning of the announcements on tariffs, we believe that that is quite manageable, given a relatively low exposure to China and in the rest we can manage, physical flows and financial flows in a way that, is quite mode. In the worst-case scenario, if we did nothing, which obviously we're not going to not do anything.
We can cover any, large tariffs with a low to mid-single price increase, which we are evaluating and monitoring, depending on how tariffs this whole tariff situation shapes up. So we met on a tariff standpoint, we don't think it's, is at least material or non-manageable, at least from what we understand at the moment.

Jonna Kim

All right, thank you very much.

Operator

Our next question comes from Susan Anderson of Canaccord. Please go ahead.

Alec Legg

Hi, good morning, Alec Legg on for Susan. A question on Ulta. The displays look really nice, I guess any early reads there. Are you bringing in a new customer base that may not have shopped the brand at Sephora or online? And then I think in your presentation you indicated door count increase. Are you getting more than the 600 doors at Ulta or maybe even hinting at a new retail partner for milk? Thank you.

Michel Brousset

No, thank you for the question. We are very pleased with the early results at Ulta. I mean, the, it was, this launch was very carefully crafted with our Ulta partners to try to deliver against two important objectives. The first one is incrementality to the brand, and as we are in only 600 doors at Ulta, and these 600 doors were selected with two objectives.
One is incrementality, as I said, and the second one is productivity. So we're highly incremental, I distance to other Sephora. Locations, of course, this is not perfect. Not all of them are distance of our locations. So for the most part, incremental productivity, increment incrementality on the business, and then high productivity. As I said before, in the case of milk, we're having a very disciplined posture to our distribution expansion.
One of the, Best ways to ruin and a makeup brand is to expand distribution too fast and ahead of brand awareness and brand trial and consumer pool. So being very disciplined in the way we consider distributions expansions. So we are today in those 600 doors.
What we are highlighting and evaluating, even given the success is potential further expansion inside the Ulta network, or perhaps even within, a target, but this is just at this moment, a purely, evaluating as we read the initial results of Ulta, which so far we are, we're pleased with that outcome. We believe again, it's quite incremental, quite productive, so we continue to monitor.

Alec Legg

Thanks. And then just a quick follow up clarification question on the tariff impact. So you said low single digit increase in COGS. Is that before or after any potential action could be taken to minimize that? Thanks.

Michel Brousset

Yeah, I'll get Manuel to answer that. Manuel, go ahead.

Manuel Manfredi

Thank you. That impact will be with the latest news on the China parts with 30%. And in any case, as we mentioned, our exposure to China is relatively low, it's around 10% of our cost of goods sold even if, the studies were to go back to the 145%, the increase will still be not material for us.

Operator

Thank you. (Operator Instructions). Our next question comes from Olivia Tong of Raymond James. Please go ahead.

Good morning. This is Lilian on for Olivia. So I just wanted to ask about SGNA. Can we expect that as you grow sales that you can keep SG&A as a percentage of sales flattish, or will it grow with sales? And this on that you also discussed increasing investments in marketing. Are you doing anything differently and how are you thinking about allocating the additional spend? Thank you.

Michel Brousset

Yeah, thank you. So SG&A, what we expect and this is something that we've indicated and a very important part of our model is that while we are going to grow SG&A in absolute value to build. To build our business, but we expect is a substantial operational leverage, with SG&A growing substantially high in sales on our and there's two components to this to G&A. I'm going to talk specific G&A, not SG&A G&A
We have one at the brand level and the second one at the central level. And we are at the central level, we believe that the costs are going to be. Relatively flat year over year even though we're building more and more capability in central cost to cost sales in all other areas of central costs, and we will continue to increase G&A to support particularly international expansion of our brands in at the brand level.
But again, with this growth coming substantially behind, sales, creating operational leverage. And I'm sorry, you had a second question that I, missed.

Yeah, just on increasing investments and marketing are you doing anything differently in

Michel Brousset

Yeah, no, of course we forgive me, I will, we will always continue we said as part of our model as we drive growth and operational and gross margin efficiency, we expect to invest more and more in our brands, both in terms of dollars and percent of sales. In the case in terms of doing things different, probably the places where we, you will see more difference on a go forward basis in milk and milk is now a brand.
That is reaching a certain level of critical mass in which we need, and we expect to invest more in top of funnel and top of funnel advertising to continue to reach more and more consumers and invite them into the community.
So we are evolving our model from what it was very originally on make a very organic mold to what has been most recently a more user-generated social influencer model and to a model in which all those things will be complimented with more a top of funnel media that will be, we're starting to deploy now and continue to deploy into the future.
In the case of Obagi, we continue to increase our investment and I think one fundamental shift that we made on Obagi since we bought the brand is that beyond what historically the brand has done, which is advertise to professionals, to physicians, and so on and so forth, we are now, as you see, reaching out to consumers outside of medical practices to have them discover Obagi and come to physician practices asking for Obagi and we're seeing that as a big driver of our business, both in practices as well as our digital channels.
So, there's still a lot of room for us to go in terms of evolution of marketing and as the, as the market changes and evolves. But our priority is and will always be to continue to increase the investment into marketing and in our brands, which are ultimately the sources of long-term competitive advantage for the company.

Operator

Thank you, sir. Ladies and gentlemen, we have reached the end of the question-and-answer session. I will now hand you back to my Michel for closing remarks. Thank you.

Michel Brousset

Oh, thank you very much for everybody attending the call. We are, as you may have, gathered, Q1 was a quarter that had its challenges, anticipated challenges, for the most part, but we remain very confident in our ability to deliver a full year outlook and We're more excited than ever about the prospects of our brand.
The strengths of our brand, the programs we're having on both and of value. So we are, I believe very well set up for, creating long-term, value creation for our shareholders. Thank you very much.

Operator

Thank you, ladies and gentlemen, that concludes today's event. Thank you for attending, and I'll disconnect your lines.