Soho House & Co Inc. (NYSE:SHCO) Q1 2024 Earnings Call Transcript

Sharon Zackfia: Thank you.

Operator: [Operator Instructions] We will go next to Steven Zaccone at Citi.

Steven Zaccone: Great. Thanks. Thanks for taking my question. I wanted to ask about the maturity of some of the new houses you have opened. It sounds like it’s progressing well. Are there still regions or houses where you see opportunity to drive improved house level contribution? It would be helpful to hear you talk through that.

Andrew Carnie: Hi. Great question. So, if you think we have opened 25 houses in the past 4 years or 5 years, they all continue to progress at the maturation curve, and they will continue to have more opportunity. We are really pleased with some of the newer markets that we have gone into, in particular, at Mexico City, in particular, Portland, Austin, Nashville. We are super excited about Sao Paulo, so all of them are performing in line with our expectations. And to answer your second part of the question, is there more opportunity, for sure. There is more opportunity to open more houses in North America, in existing markets and new and also to grow in other regions.

Steven Zaccone: Okay. Got it. And then my follow-up question was just on pricing. So, how are you thinking about membership pricing over the next couple of years? I think this year you have made a slight modification, right, taking price increases down a bit for existing members. Should we expect that’s the trend going forward? So, like new members are going to probably pay a higher price per year increase and existing members are probably going to continue at this lower level. Thank you.

Andrew Carnie: Yes. I think I have said this before. We are focused on delivering the best member experience. I feel really good about our pricing is. It’s the biggest – where we find the biggest opportunity is around driving efficiencies in the back end. So, we are very comfortable with our pricing at the moment.

Steven Zaccone: Okay. Last one, if I could just squeeze one in. Is there any update at all to the possibility of considering strategic alternatives? Don’t sound like you have made any comments here, but just curious since there were some comments the last time, and there was a letter put out. Just is there anything you can share at this time?

Thomas Allen: Hi George. So, as you know, last fall, the Board set up a special committee of independent members of the Board to assess certain strategic transactions. The company will make an announcement if and when there is something to announce.

Steven Zaccone: Okay. Thanks very much.

Thomas Allen: I called you Geroge, that was Steve, sorry.

Operator: And this does conclude today’s conference call. We thank you for your participation. You may now disconnect.