How did SHCO's Q4 earnings surprise impact its annual performance?

Soho House & Co (SHCO) experienced a significant negative earnings surprise in Q4, which had a notable impact on its annual performance.

1. **Q4 Earnings Surprise**:
- Soho House reported a quarterly loss of $0.10 per share in Q4, which was a surprise compared to the Zacks Consensus Estimate of a loss of $0.07.
- This represents an earnings surprise of -42.86%, indicating that the actual earnings were significantly lower than expected.
2. **Impact on Annual Performance**:
- Despite the Q4 setback, Soho House achieved total revenues of $1,203.8 million for the fiscal year 2024, reflecting a 7.0% increase year-over-year.
- The company's membership revenues grew by 17.2% to $418.0 million, indicating strong growth in its core business.
- Adjusted EBITDA increased by 14.1% to $131.9 million, suggesting improved operational efficiency.
3. **Non-Cash Items and Impairment Charges**:
- The company reported a net loss of $163.0 million for the fiscal year, including $22.7 million in non-cash FX losses and $38.5 million in impairment charges.
- These non-cash items contributed to the negative earnings surprise but did not affect the company's revenue growth.
4. **Overall Annual Performance**:
- Soho House's annual performance showed resilience despite the Q4 earnings surprise, with revenue growth and improved EBITDA outperforming expectations.
- The company's strategic initiatives, such as membership platform expansion and new openings, contributed to the overall growth.

In conclusion, while the Q4 earnings surprise was significant, Soho House's annual performance demonstrated growth in revenues and operational efficiencies, which may overshadow the short-term earnings impact. The company's long-term strategy and market positioning appear to be supportive of its annual performance despite the Q4 setback.