Kidpik Corp.

Greetings. Welcome to the KidPIC first quarter 2023 financial results conference call. At this time, all participants are on 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. I will now turn the conference over to your host, Ezra Daga. You may begin.

Thank you, operator.

We are pleased to welcome everyone to today's call. where we will review Q1 2023 results and provide an update on the business. We will begin with a review of our financial and business highlights, followed by a financial review, which Adir, our CFO, will take us through. Then we will open the call to Q&A. I'd like to start by sharing that we have continued executing our plan to reduce inventory and generate cash flow. We have substantially reduced purchases of new inventory and are focused on increasing sales utilizing our existing inventory, which we believe will support our cash flow needs in the short term. As a result, during the first quarter, our inventory was reduced by $1.5 million from $12.6 million to $11.1 million, while maintaining a consistent gross margin of about 60%. In addition, we're taking action to reduce our go-forward operating costs and improve efficiency. We continually upgrade our proprietary technology platform with the goal of enhancing our customer experience, retention, and to grow our sales. As we look ahead, our focus is on several key areas. We are focused on improving our conversion rate across three key channels, enhancing our brand awareness, implementing efficiency initiatives, and increasing the average dollar sale per subscription box. We are strategically migrating our affiliate program to a new platform in order to enhance our dual focus on both our subscription service and e-commerce shop while expanding our affiliate network. These strategies, we believe, will further strengthen our foundation for long-term growth. Additionally, we remain focused on acquiring new customers through performance-based digital channels, including affiliate content and social media marketing. The strength of our complimentary styling service is rooted in its affordability, convenience, an ability to deliver personalized outfits from head to toe, continually attracting long-term members. This appeals to parents and grandparents seeking convenience and style support when getting their kids dressed. Our service evolves with their children's style as they grow while providing the excitement of a fun unboxing experience. Owning our unique KidPick brand enables us to expand beyond the box. We are focused on increasing sales and brand exposure through our e-commerce website and collaboration with third-party channels like Amazon and Walmart. Notably, our direct online e-commerce sales increased by 112% compared to last year's first quarter. We witness the joy and happiness we bring to children every day. We look forward to more parents discovering the benefits of our service. Thank you for your interest and support. With that, I will turn over the call to Adia to detail the quarter's financial highlights.