Arhaus, Inc.

Our first quarter 2022 earnings conference call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Wendy Watson, Senior Vice President, Investor Relations. Thank you, and over to you.

Good morning, and thank you for joining our house's first quarter 2022 earnings call. On with me today are John Reed, Co-Founder, Chairman, and Chief Executive Officer, and Don Phillipson, Chief Financial Officer. John will start with a summary of the main points we made in this morning's press release, along with operational details. Don will cover our financial performance and outlook for 2022, and then they will be joined by Jim Porter, our Chief Marketing Officer, for the Q&A session. During Q&A, please limit to one question and one follow-up. If you have additional questions, you may return to the queue. We issued our earnings press release and our 10Q for the quarter ended March 31st, 2022, before market opened today. Those documents are available on our investor relations website at ir.ourhouse.com. A replay of the call will be available on our website within 24 hours. As a reminder, remarks today concerning future expectations, events, objectives, strategies, trends, or results constitute forward-looking statements. Actual results or events may differ materially due to a number of risks and uncertainties. For a summary of these risk factors and additional information, please refer to this morning's press release and the cautionary statements and risk factors described in our annual report on Form 10-K and subsequent 10-Q as such factors may be updated from time to time in our other filings with the SEC. The forward-looking statements are made as of today's date and accept as may be required by law the company undertakes no obligation to update or revise these statements. We will also refer to certain non-GAAP financial measures, and this morning's press release includes the relevant non-GAAP reconciliations. I will now turn the call over to John.

Good morning, everyone, and thank you for participating in our first quarter call. We are very pleased with our first quarter 2022 performance. This morning we reported record quarterly net revenue of $246 million, a 44% increase from Q1 last year with our retail channel up 46% and our e-commerce channel up 34%. Comp growth was 40%. Net and comprehensive income increased 74% and adjusted EBITDA increased 22%. Key operational highlights in the first quarter include, first, the launch of our spring product assortment, which has performed very well. We are also pleased with early reads of our outdoor 2022 catalog, which hit homes in March. Our new ourhouse.com website experience continues to connect very well with visitors. Clients are not only spending more time on the site, but they are also engaging with our interactive content, providing a more robust overall brand experience. We welcomed a new CHRO, Jen Henkel, who comes to us after 20 years with various divisions of L Brands, most recently as Senior Vice President, Human Resources for Bath and Body Works. Jen is focused on growing and enhancing our talent acquisition and talent management processes. We are encouraged by current supply chain dynamics. Our inbound supply chain continues to improve and vendors are focused on helping us return to having our top sellers back in stock. On the outbound side, our teams are working diligently to get product to the clients as reflected in our better than expected net revenue in the first quarter. While lead times are still longer than historical averages, They are steadily improving from their peak in the second quarter of 2021. We expect the improvement to continue. Additionally, we believe the new distribution capacity coming online later this year from the expansion of our Ohio distribution facility and the opening of our third distribution center in Texas will further positively impact our lead times. In closing, we are pleased with the trends in our business and with our long runway for growth. I'll now turn it over to Dawn to discuss our first quarter financial performance and outlook for the remainder of the year.