SHCO - Earnings call transcript Q4 2023

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Operator

Good morning, my name is Audra, and I will be your conference operator today. At this time, I would like to welcome everyone to the Soho House & Co Fourth Quarter 2023 Results Conference Call.Today's conference is being recorded. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. [Operator Instructions].At this time, I would like to turn the conference over to Thomas Allen, Chief Financial Officer. ahead. go Please

Thomas Allen

represent with joining Co's for Thomas to statements statements. Soho risks I'm future differ discuss involve beliefs or uncertainties and CEO.Today's materially Thank results to that quarter us financial & here Officer. Financial fourth could the is from discussion events. that Carnie, expectations results. forward-looking House our I'm you Chief forward-looking All today contains our forward-looking Andrew actual the My statements Allen and about cause name the

the factors release, should in forward-looking as any no of access have can our forward-looking that Some assume differences may QX update you at found be only are our statements statements the to our cause if described sohohouseco.com of views which Any we section. in to such today, our and SEC earnings Events News views filings. obligation now, represent & change.By

QX in in the let our results. Events today's can to for These addition Additionally, which also be posted have non-GAAP we measures also found call, on our section non-GAAP refer to should for be most a financial we certain as & available measures. presentation, the our are GAAP Andrew. me News release.Now GAAP hand comparable measures it earnings considered Reconciliations isolation in press the to, in not or and from substitute site.During over

Andrew Carnie

continued confidence misleading made To we our been and good was and practices. and a statements want large, how globally everyone.Before firm acknowledge accounting a I practices. this forensic prominent, to shown as in Thomas, committee us, material has expected, have morning firm law our review our engaged I about no that issues. accounting Thanks any audit in our business our start, Their run independent global counter further accounting accounting review and to recognized

my have which past year-end XX what as as first when and our XXXX. audit, in will cover Soho first part around our houses special our the non-cash our still proud is is teams reporting, of visiting our financial opened prioritized I we in later.XXXX Thomas to delivered. site CEO. we months, achievements the our In I'm made ongoing small As world, as have full X of House revisions year

Our are creative, different full backgrounds members. come and from fellow a of to who good houses have people interesting meet together time

only of its members kind, operate the As progressive dynamic that cities creative, hubs. global club than more in represent we private XX and

to net strategic we XX,XXX than XXX,XXX. membership which Soho us increase members XX% taking our priorities. greater identity. ago all I'm good success those with excited To results more welcome its of We're have XX on new year appeal building enduring are to months increasing closed where we versus year-on-year, stronger drive a across revenues that put with we're never a We a above believe global excellence, local scaled and today. making progress reason to house XXX,XXX During of members, ages members you stronger, in history, houses a we for business to XXXX with profitability.Our globally results leading place our grow is guidance to and fundamentals and we is XX the result club strong of our create House and getting recurring the experience, plan the show operational on the that and leads share two and focus membership an to enhance

since last Our houses year had membership we XX XXXX. from growth primarily came opened

This as total for the at for globally. at of membership XX,XXX XX,XXX, membership revenues XX% These In-house was membership allow XXXX. revenues Rome, demonstrating and Soho strong, year-on-year, Brighton Soho XXXX their Paris, from business our given will demonstrating beginning waitlist we excited we in Asia.Total grew the growth representing and experience the positively to of revenues, who Paulo with of curve, continued to further membership pleased rising in of America, us maturity Demand strength revenues, we House Latin with the of the new demand in grew but and makes Without high example, have XX% CWH XXXX, more XX% growth. even X,XXX global back members the of XX% particularly runway cornerstone model, Mexico we given our of grew city. other greater year, up year-on-year brand our in in where the of members, Stockholm. for expand XX% XX.X% X% in-line in recent represent from margins do in doubling Nashville, million, finished X% a EBITDA Austin, continue doubled and September, newer members. Every approximately more cities us the regions soon. where remained Sao our than not from almost we retention grow we expectations, year, and opened to grew total choice Since more physical in at are or up Cities high. of XX.X%. well very approximately in House like the to and It revenues have where House of growing is our membership For part XX% appeal into open Adjusted $XXX with to our houses Annual XX% membership, XXX% expansion as Houses our enhancing membership.We year. than that house, signals our the business be the the network have creative with

approximately XXXX $XX increase me the $XX to to compared positive a House we to welcomed Net of profitability XXXX. XX% years.Looking operational revenues, on XX% membership quarter XQ X% value loss progress recurring at we're EBITDA adjusted Soho million up 'XX.Now by and $XX itself, let flow Membership margin Finally, up just from million XQ year-on-year, and were $XX same was tripled net more million, cash $XX members. to prior net revenues delivering a from than X,XXX cash Total cash from in quarter fourth enhancing new again drive than the operations over in compared the in membership for more in and an supported period. you negative year-on-year. year-on-year delivered give the flow. XX% million two million against our and $XX at strategic XQ growing update operations making priorities; million were of X% excellence

of the more As XXXX. I is give the I've we said do. heart to on on experience members in before, you what color we're best giving focused our at want what

We to refurbishing We're our and quality our members. members service like continue talent high to teams our our pools in training our houses. across love, to spaces deliver and existing rooftops invest in areas and expanding

London, more pool at For example, we City we space. ground in West the House member to the White event create Hollywood. House have open will and roof Luckman expanded LA, new an space In floor member Club, X,XXX Soho recently foot and refurbished square and

While options. space the a dining and new summer.We Soho space we're an House also DUMBO in to working continue at for concepts on on York, ready of we're be roof the new refurbishing introduce member and Holloway food outside New House to exciting

have investing restaurant and new in us all at while facilities Yen at we'll Our restaurant York Members is told fitness Ludlow just equipment in Persian across Berenjak, how and the New in spring. opened celebrated a our Soho open has important lives. popular Farmhouse We're houses. wellness in Pen House Japanese their

gym Chicago City wellness at recently at expanding include White examples Some and opening our while Farmhouse. barn new a

Our House at have new a Soho members. been retreats hit weekend wellness globally with real

our true our particularly is in our satisfaction show established tracking working. and This demand most are scores that is LA, New rates that member where Our very approach we cities; retention London, are and constantly X high. York

exception, XX Hollywood, House Soho houses cities, new opened This to New global London, our intakes creative, chosen membership we means more and and houses thriving members in on into make of don't expand Soho and we no in arts culture we that have progressive these Soho film its food been and diverse new exciting about have cities. in is most with across and sure to opened community interesting. houses, community, these intentional our Portland busy.We cities as making West where too Soho introducing our We always last a will pool, not House plan terrace, in by year building we've House houses York historical an has total XXXX an Soho been in and feel our Central a that and last members is focus in week as the restored Shoreditch club Located rooftop Portland offers gym House, East spaces. Side. very design mature limit and increase House House exciting attractive team, it

hospital and and urban a will is Sao for redevelopments. America XX Soho open will a House club house bedrooms, South in our spaces The and most the the bar, soon first house rooftop within former situated city's members. pool be ambitious and in one of gym, features Paulo

England, North priority, rooftop and second House Soho open year.Turning of with And club, open club and Manchester, excellence. of health bar, Muse later Mayfair this bedrooms, is we area later gym space. floors London's House finally, the our year spaces across will first event a Soho X X operational pool floors set to our strategic house and this in to in

XXXX. Initiatives times event that improvements are optimize system of personalized warehouse margins year [indiscernible] to state and time double for the member house menus doubled members, which processes almost further bookings the whilst app and business a to tailor systems to significant launching a like on $XXX journey, rolling service. million make our for quality EBITDA include, & XX%. teams to delivery Initiatives past with bedroom for business more year relevant online members ordering allows delivering than helping Soho for streamlining in to have simplifying We million member interests over over from this, to art operationally more House and for Home allow technology experience $XX teams the X% made profitable introducing the our to a Adjusted growing spend Soho for to from EBITDA frequently in F&B out whilst recommendations delivering more drive the an XXXX better members. and margins. Re-platforming the like Co the are in more members, to and

continue costs, firm revenues year-over-year approximately grasp and XXX improving the points with XXX versus keep to of points basis a on as a year for We wages basis XXXX. approximately percentage

each across you approximately year cost XXX London, seen contribution more and to with York flat were detail on pass mature we're XX% high line year-on-year and in Thomas over F&B than give in XXXX. house to XXXX. points expected me was of houses very in houses and growth let numbers. newer LA, the up Full at our maturation strong curves.Now While margins in up our profitability RevPAR basis higher on margins and improved XX% New despite XX% inflation versus seeing We've year-over-year

Thomas Allen

year-on-year X% X% period full currency were year, on in-house house $XXX Membership excluding improved grew did revenues XXX quarter fourth lease points. margins X a you compared and first the and XX% XX% the for their to were to negative understanding million, XX% in revenues currency adjustment basis. of or Andrew.Total had it, and help EBITDA.Looking Thanks second not rose even X% a constant constant level year or respectively, average X% basis. benefit houses year contribution that X% increased roughly over a a of contribution this from with margins margins House were approximately of XXX To in adjustments, or the out Note, contribution margins years currency $X XX%. adjusted with Other up business, contribution constant but X% revenues fell basis. of benefit house basis your margin on XX% an basis old margin average XX% and level break-even. that had million points XX%. houses to House approximately did year-on-year, level on at

ramp, newer XXX in this up Contribution to houses in XX%. future. year-on-year points XQ signaled with margins embedded the base coming our As X% Other the significant growth was approximately

with and earlier quarter Contribution at in-house XXX trading December. by in revenues increase XX%, million Portland Other were 'XX nearly November, a year. roughly In-house increasing good than even higher the standalone revenue, trends December. end Membership and were This year-over-year, to early the of margins and through We not approximately Like-for-like increasing a million by and or XX% of restaurant adjusted and in lower XQ year, higher million $X.X with fiscal growth over driven just revenue $XX by points revenues. opening EBITDA. which pricing basis Sao the XX%.Turning For Paulo growth end the membership in Other mix down revenues. was revenues approximately the a to year-over-year, October by saw continued were was million. impact offset up of strong of last from $XX year, $X to drove fees.Moving includes lower closures revenues the design weaker

adjusted one earnings non-cash only registration includes As costs, we discussed pre-opening a reminder, impact our on fees, the presentation EBITDA calls. deferred or earnings This EBITDA earnings our release, of adjusted in and rent. published

our adjusted have we outlined offset. I slightly want our up Our was million, fiscal to know here $XX up XXX% approximately revenue the fourth we few we adjusted Total was and profitability membership came well, and managed We weren't our million, performance At increase, out items XX% expenses approximately we expectations. low year-on-year, continue this year quarter to and behind Despite call basis, initiatives benefit in $XXX growth. here. guidance from to was year-on-year. fully EBITDA as end EBITDA the of a revenue but at able continued

advisors November new that Officer are in than a have we then these new elected expensing BDO. were worth Chief million the expenses quarter committee, rather we EBITDA items in relates that Andrew including a is reserve make policies our in $X year $X.X million to accounting the $XXX,XXX we by our our Roughly are audit through. as XXXX related previously $X to approximately capitalizing. for additional incurred were larger to which in Historically, hired against adjusted which partners of quarters. Together, match XQ changes related following X the expense that some reserves our is prior year made review, confirmed to as audit that EBITDA, related also haven't detailed our held our by this houses. We XXXX started of that we full are independent to our obtained Accounting booked have of periods, obsolescence talking million and development who why to have mentioned.We approximately at not changes We approximately a and approximately impacting adjusted any taking of we full inventory. does in incurred We additional major Soho used relates to mostly Home $XXX,XXX against inventory, that

have with take facility. flow.Moving size and of cash much noting a balance ended a undrawn now $XXX we elected sheet. million a larger the of Given of impact of cash changes million the revolving neither these today, position credit combination that $XXX strong cash approximately worth of $XX to equivalents year We Home Soho reserve. our million, It's a to and liquidity

increased in Our fact cash and liquidity positions slightly quarter-over-quarter.

year reported adjusted continues to Our to improve, X X net position at year-end debt the times times compared to also ending 'XX. EBITDA at

these continue more We to even in beyond. levels drive the and business to reduce XXXX

debt significant no have We XXXX. until maturities

to our As questions in cash have On it majority and be relates sheet cash thought helpful to which flow, it to conversion relates I the Home. there recently Soho around balance XXXX, clarify. inventory, would our been some

first, homes. Home helping We have business, digital and our decorate strategically Soho which their focused members our is grown on

We roughly well around tripled there our Soho XXX%. believe We as income, opportunity X whole are Home a accrued been grown company and really over revenue to has $XXX grown years. Home so has while our significantly, approximately million total inventory pleased managed revenues prepayments with have significant far. receivables, further.On for since grow and the results XXXX, is

receivables grown well. So have as

addition, mix as House In contracts, book or revenue quickly and into more convert beverage and membership, our to shifted room home, revenues. as where development, Soho design cash, that has business food we management traditional doesn't the

drive our help better to XX-K business. our in disclosures built-out have We understanding of

supplier as on we example, depreciation. detail have For inventory giving more new advances added buildings on our detail as well

reflects further driving line growing giving existing a efficiencies. membership, operational on experience the bottom members Our our and XXXX guidance our delivering great focus while

an and Sao over houses, with more also driven but we Paulo, confident This principally global term members earlier.While our focus houses, growth X% of our membership Soho Manchester openings discussed House remain the XX We house which and community. into profit through we London pipeline include at new strong will on more be year-on-year. Mews growth which house welcome increase maturing are near-to-medium growth. year-end XXX,XXX guiding in than House, will by house 'XX Portland, new than These a about be members to over

is we As given the the building state primarily avoiding a company can challenges these been houses. market the our and months, and number capital burdening delays current flow. we past hit discussed with it's have do market our throughout developer of development We're to of adapting little tough XX from we've the by and their cash

become higher and remain salon in a As Houses mostly asset-light our to we're around markets of We cadence and DC. this the development Soho a Soho more before next open planning want result, summer, accommodating.Beyond its open second to to to credit site X followed a year by House, X returning Scorpios Ned disciplined approach. Scorpios Bodrum will for couple years when

If revenue, X% it in has XXXX. CapEx XX% as at XX% XXXX to dropped look a our you to XXXX, in from percentage in of

to up conservative still in-house the our our expect in-house into growth grow total year. in approximately gain. This approximately $XXX and the which membership which It's at XXXX, revenues when to represents X% of membership We the revenues, This year-to-date other We of revenue.Turning revenues X.XX pipeline we member slightly of for growth million membership line. supports and for expectation XXXX revenues the able XX% continue membership revenues and remaining last XXXX year-on-year, houses XXXX would credits. retention. revenues members from trends CapEx in to first reflects new EBITDA, is of $X.X leads X% of supported stronger ensuring bottom challenges revenue footfall versus in our revenue, expect year-on-year. our to smaller XX% XXXX join, $XX revenues to to new up we we spend they membership in related revenue billion, in when million expect to That $XXX to versus pricing membership and soft more manage members to credit recurring a given $XX $XX to given amount up in because growth.On approximately million adjusted million billion of to strong XXXX, macro to most efficiently, expect lower to of be million to grow from of range, XXXX house worth restaurant being said, a growth, revenues, business noting approximately total we include benefit flows revenue XX% accounted down that, $XXX X% and which credits million, from by

adjusted to $XXX to adjusted to EBITDA million XX% million rising XX% guiding $XXX to from XX% to margins cost growing despite year-over-year are headwinds. with EBITDA We persistent XX%

you a can see of well As we EBITDA on are see, our target longer of way XX% XX% our medium term goal to and plus. margins term

Finally, we back support management continue Andrew. to flows from activities.Let of higher to expect our pass to operating capital to me now it working cash improve

Andrew Carnie

to head company some that in no Q&A, of evaluate on Board model, let Soho we XXXX certain for and is and may X XX wavered focus close Now to mention our of public of the our result hasn't globally me longer was announced House, support our driving in formed their which being loyalty.Before members and our underpinned cash our Meanwhile, committee continued into of confidence by a strategic transactions, which on we excellence years. flows. of our wanted I I'd teams by company. special year our February membership to our like operational and a reiterating independent has in personally terms an of future growth, the almost in successful strength membership thank continued business, appeal growth. profitability that revenue and better

fiduciary potential of approximately benefits being in weighs the number company own with of Board be stock their that Our up created interest and received any affiliates public and have In our the XX% duties, the of versus could the value occasions. line through costs Board transaction. its common a on and

will update and this able it have we it work as regarding is their on and Board management, Given on independent by be led questions and not is that address Q&A. ongoing the any to do anything of members the not to advisors,

now can have to please. and announcement if the announce.Operator, we is will there first something take We question an when

your ask As question over them the on webcast. a reminder, phone or you the submit can either

Operator

first Citi. Thank our Instructions] you. from We'll [Operator Zaccone take question at Steven

Steven Zaccone

EBITDA I look should providing question rate less business, for opening these to we think pivot just this a houses. When First now because new you're and growth this bit line the on you is had you're at some opportunity was go houses. to bigger opening for then growth like, top year for and probably expansion, the guidance with is spending of the margin growth kind of EBITDA higher less cost the the upfront

Andrew Carnie

margins this So about can path And medium we're about our that adjusted saw earnings talked past in we plus to XX% from margin in a EBITDA goal. we we We've margins the basis EBITDA rising you or saw XXX how to guidance, see points guiding year-over-year XX%. then as call XXXX. a highlighted with term

a then it'll definitely I take that. should consistent but think years XX%, pretty of a continue I growth reach beyond couple to that see to we believe

Steven Zaccone

decision would just you color opportunities to Has you opening discussion the through maybe there biggest talk changed? where know of that criteria appreciated. the past houses. more going on then be less in to scale? continue to to talked the Americas for overall. the And about I focus you are Any the around like Can

Andrew Carnie

last for about mentioned been have as before, talking pretty we've I months new house fantastic think our pipeline. the new we've we a openings house XX So and

think have and we supply we're are developers just environment them, is houses challenging tough CWH chain globally, got having really market labor model. availability, attractive look, successes saying on The today for So all what asset-light XX based I issues, signed expensive off all materials, is, inflation terms a time. that financing. super are our

delayed. houses see impact having we the what of So is our

don't capital members. opening open use houses. right, unnecessarily have to our want our want We for or miss schedules you're any as to own costs our don't we So to pre-opening

already a for just houses down growing America, macro Europe, So mentioned the North we're years. case. a the in lot bit But a the take longer bit It's in a X at slow growing of choosing moment given more that's developers. lot to next growing to we've XX going that environment little about still our Asia, in little to with just the the in growing Australasia, months

Operator

next to go Kelley We'll at of Bank America. Shaun

Shaun Kelley

maybe So was give saw you us some provided Thomas, think to you start-off, side? color the the consumer across could I a about quarter. sense trend fourth Andrew, spending of just there just the

the was broad just October strong. and strong like pattern December bit at this membership focus know, of maybe know, end the continues spending growth to but I I But in we of Sounded year below was a as a pattern and the quite lot, the look you that. just on know in-house relative to

kind it hood under terms and relative then So you of, mix of seeing member to just of are as member spend, what the consumer. kind in new existing the shift, relates to broadly spend

Andrew Carnie

always your I macro questions. enjoy

you I'll color. So give some

with what QX, the what quarter slightly visit our all spend was was visitation houses, we pretty saw across if take So up members a per members. in so F&B I regions, much we across low but saw, was all there

versus by out. That's up So balanced they and XXXX flat we of XX%. why were about kind year-on-year obviously

So if is it you environment, macro think challenging. pretty about our

in UK, in recession. technical a the Here we're

we a I'll little similar because see year-to-date hasn't We and that more you spend a on members seeing what between members on. we're So and give changed.And footfall that's experience bit on I to color members that's which we're ever continues very is the our do giving focus than more what working because what is a in houses, grow think new great important. focused we existing

was lots is what higher calls January on we right and Opal's by in-house that we've bigger can dining but in ever was -- than stats. consumption, been sequentially shift. with So each of have you've now, much everybody more from a bit, what I saw positively know has growth What also results month. non-alcoholic in companies in calendar like-for-like it's January But and a spike our see impacted other got hearing softened before. you you're better beverage much also end the table from especially which a seen folks,

March. meaning was in weeks and So the first are January better than Feb two better

and in recurring And better growth. because membership we any a So you seeing membership we're other as are position, have revenues. we're club hospitality than better a know, industry we

membership might but still we we're down be month. So each revenues slightly growing F&B, our

Shaun Kelley

a components being some two question, be, us cash asked give are you second macro color bit more out My the there. here? bridge of focus, just little of for go so would a row, the in Obviously, on in questions some given won't it's Thomas, a flow I that could

So Things looking would break a sense get could and few across help cash overall down cash could us be expense, for if you as business, would need you pretty Soho about us Home, investment G&A maybe helpful networking the think capital could things called then the the key you that components. And help again, components. Those anticipated in out to business we maybe you start a rent. interest maybe I'm growth some if normalize then around clearly.

Thomas Allen

Yeah.

one. by I'll through one these go So

on expect we and do a interest expense, the there.On that's but little of the to size loan operating grow and on new operating as we it leverage to expect interest to last cash we slightly. increased open new we to the year obviously then increase sorry, on leverage houses expect mortgage We year-over-year We non-cash. good G&A, enter So see it -- expect G&A. PIK our Miami markets, we have bit see

mortgage. cash expense CPI on you you've that we as to So should some increased cash rent a leases in Miami the our basis. times, increases so are seen recent and slightly see inflation over significant like-for-like On higher rent, of tied

a close year the X%. We with I And mean the more have on don't if focused If comes say think and of house inflation it we it actually this 'XX in you the specific of potential fourth has quarter-over-quarter. drag of on a was working look new working has then leases.On capital about to basis, a been so I'm but We've you quarter, for X% guide leases, inventory addition to it as working to be to to example, big it's lot timing. store, same X% be kind 'XX going as do capital, of obviously managing and lot would when in I not think to you Home at capital a we're working it'll a a tailwind. the on to talked how typically lot our Soho capital. really balances

the If been past when working up. few are years and back you you our years capital, go look there definitely at average it's

a was So it's year drag benefit, and last it breakeven. then at this year a

a timing So it's of lot related. just

Operator

We'll Kelly Roth George to at MKM. move next

George Kelly

opening So locations. Scorpios, first those on you're curious I'm X

And guidance? think year I'm next Bodrum I I and want year. to curious, Scorpios. longer of that those kind medium are big pipeline later X? these for there then you're you do this future thinking is Do soon a to so these that how about term on curious the into is as the same of successful. two say The locations factor well? you I'm is just how topic What mid brand? locations Tulum, is opportunity legacy think is beyond location open, or

Andrew Carnie

Tulum it's Scorpios. that it wellness will at We've in Scorpios time got all in has It concept with So our new wanted again with year, along exciting. add and a it always Scorpios. has we villas, new year first are incredible. said similar is great is which its Bodrum own record The XXXX, is this we a Mykonos. In first the so in And happy super had Mykonos, are things very grow we bedrooms. Scorpios, to

in So well we've done a bedroom as offer Scorpios.

So year. we're this with really X happy

really we then for We and years. want year Mario these sequential getting fantastic focus this X and right to Scorpios further are have founders, planned in growth at doing Our on Thomas this.

members such also business, a a a and our such Scorpios House it's lot. business love profitable Given great it's Soho

George Kelly

the Thomas, And on Home. other see for remarks then curious, question you that from still line. Soho opportunity lot of you in revenue that future a second me, prepared said I'm

And are you growing plans if has enough what could so that'll and continue and we're margins now to I'm where to more give going overall like see point inflect that are curious detail you higher help to business the profitability? where getting to start contribute a scale to it

Andrew Carnie

take Yeah George, one. I'll that

So we're business. incredibly Soho Home our of proud

we're That's why very prepared we've House. give near. it's and And his in USP. surface, house remarks, very so been to nowhere the excited so much taking aimed about it's mentioned continue Thomas I'll As will Soho we an the by scratched examples interiors year the home growth. some This successful. three-fold. at our That's From grow. assortment only why It's grown you we're basis,

assortment very assortment. choice, a based you If growth of been restoration so literally just begun, hardware, we've on has small think the

that are so because We'll We've recently the assortment just the last of into launched products lighting, furniture. is furnishing business, week into greater cetera, high. for our furniture. going et outdoor expanded to expand We now going appetite be window

It's So higher there's than lot we profit digital so a stores. of more model big think a first, opportunity. lots having it's that's why

feel we mentioned as there's margins substantially. in Soho And why the margin. So House XXXX, Thomas more in that's grew

feel Home. good we about So Soho

Operator

Our next William question comes from Zach Riddle Blair. at

Zachary Riddle

Just home the a the new here couple of openings. refurbishments cadence of of on and questions kind

then time?And I an to X of all the or I guess next then for the that of and years, maybe more of and have the guess retreats. the an there the somewhat is recent refurbishments, at the you're a with gym there? is do the you spaces much is, And experiences of to couple offering homes to to membership wellness plan first, is spaces the year add opportunity related opportunity there I a doing mean, So, of there houses? the I X big were follow-up. open refurbishments a wellness kind X that offerings How of refreshing wellness of all expectation that

Andrew Carnie

questions. these take will I

member always the that increase articulated space houses. we from a what for So, is year always from perspective, looking existing examples how pretty our We're I normal, refurb refurbishing do things. gave. to I this We're

continue not is our X change, that's big wellness to to to going X. So that.Regarding wellness, investments. always of do We'll to going X

both mental Our big lives, physical but well-being. their a perspective, told it's also from a members us in priority have

We're investing our again, are I cities. We're expanding in we Soho prepared did my remarks. on houses which wellness, created new gyms. opening a our in experience complete in immersive wellness So with We've Farmhouse.

new technology members our are Our in looking globally. gyms for

for would us. wellness So doing say is everything big yeah, we're now a I out focus right of very, existing in houses, very

Zachary Riddle

that the on on new contribution margin. same vein the the significantly younger level know margins higher we to houses I have as I the mix, impact know as ones maturity more house than are somewhat the how that far in having curve. could homes mature fewer expect And

Andrew Carnie

contribution driven we specifically don't guidance, contribution levels, be we mean, see expect from you but overall to house to our margin. house I as by increase. partially look, So guide can margins That will

in still inflationary We are environment. an

continued see positive there if good and that growth earnings about our I growth, you and continuing to that and from should The beverage see companies think to so inflation. other operating food you guidance, calls, leverage. strong we can us is membership listen really and talked we're wage generate thing about revenue expecting have the

Operator

question-and-answer today's Thank And call. your and the does participation. that you session, conclude for conference

You may now disconnect.

Soho House & Co (SHCO) 15 Mar 242023 Q4 Earnings call transcript