Soho House & Co Inc. (NYSE:SHCO) Q4 2023 Earnings Call Transcript

We’re expanding in our cities, our members are looking for new technology, for example, ice baths, infrared saunas, so we’re putting them in our gyms globally. So, yeah, I would say out of everything we’re doing right now in existing houses, wellness is a very, very big focus for us.

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

Thomas Allen: We don’t guide specifically to house contribution levels, but as you can see from our overall guidance, we expect margins to increase. That will be partially driven by house contribution margin. We are still in an inflationary environment. I think if you listen to other earnings calls, companies talked about continuing to see wage and food and beverage inflation. The positive thing about us is that we have the membership revenue growth, and you can see from our guidance we’re expecting continued really strong growth there, and so that should generate good operating leverage.

Operator: And that does conclude the question-and-answer session and today’s conference call. Thank you for your participation. You may now disconnect.