• Free trade agreements: The India-UK trade pact will reduce UK import duties on jewelry (currently 4%) and lifestyle products (6% to 16%) to zero, prompting sourcing shifts from China to India and boosting margins across UK operations, which generate 30% to 35% of total revenue. A similar trade agreement with the EU could take effect by the end of the calendar year to benefit the European segment.
• Financial growth guidance: The company expects 9% to 11% top-line growth to cross the 4,000 revenue mark, alongside a 50 to 100 basis point margin expansion. Growth will be primarily supported by European market performance and digital sales expanding faster than TV retail.
• European operations: Having broken even last year, the European business generated 28 million euros out of a 2.5 billion addressable market and is positioned to begin contributing directly to profitability. Freight cost inflation has had a minimal impact on margins due to compact, lightweight jewelry packaging and costs being passed on to consumers.
• Capital expenditure plans: Capex for the year is projected at $5 million to $6 million, slightly above the typical $3 million to $5 million run rate. The capital will fund routine technology and AI initiatives as well as a $3 million to $4 million investment to consolidate four separate UK facilities into a single premises.