Victoria Selhorst

Victoria Selhorst asked about the performance mix within non-scrub wear in Q4 2025, specifically which categories like underscrubs, outerwear, socks, or footwear drove growth, and which are expected to be sustained contributors in 2026. She also inquired about the 2026 pipeline visibility for the Teams business, its percentage of total revenue, and its gross margin versus OPEX profile.

Answer

Sarah Oughtred, CFO, detailed that non-scrub wear growth was driven by Salta, Mikado, and Rib styles in underscrubs, high pile bombers in outerwear (with further expansion planned for 2026), and strong performance from bags, ArchTek compression socks, and other accessories, all contributing to outfitting the healthcare professional's full closet. For the Teams business, Sarah stated it currently represents single-digit penetration to total revenue, has a slightly lower gross margin due to wholesale pricing, but achieves higher overall profitability due to lower OPEX costs. She expressed excitement about the strategy and the recent launch of the new Teams store.