Gildan Activewear (GIL) 30 Oct 202020 Q3 Earnings call transcript

Ladies and gentlemen, thank you for standing by, and welcome to the Third Quarter 2020 Gildan Activewear Earnings Conference Call. Please be advised that today’s conference is being recorded. I would now like to hand the conference over to Sophie Argiriou, VP Investor Communications. Please go ahead.

Thank you, [Meski]. and for all us. to morning thank joining you Good our press for Earlier, a announcing earnings XXXX. we issued of release results quarter the third

and Securities with corporate the our containing securities the and statements. issued Company's shareholder and Canadian will documents analysis the be authorities discussion on U.S. These filed also financial and of website. be We will regulatory consolidated Commission, interim management's report available

Glenn Executive On and Chamandy, President today, the have our Officer; and our we Chief take you Financial a Rhod and Chief for through Harries, In the Q&A a follow. moment, Vice session and will President and Executive Officer. results call Administrative quarter will the Rhod

from forward-looking please certain of this results Before meaning uncertainties included to unknown Litigation we the over could U.S. that note materially factors, Exchange Commission Private refer risks, with Authorities and known actual turn take involve Act results. implied Securities future I Company's forward-looking Company's U.S. the Canadian Rhod? and call forward-looking begin, the statements will within other Such such differ statements Securities which affect to of or the Securities and that XXXX. the may the you Regulatory and statements. to future statements constitute filings We Reform in conference Rhod. results expressed may now call by cause

to the more and Sales you We nicely for This underwear. product strategy, that to progress the large on we're us than results joining other safe. saw with of growing came quarter. all to continues margin as thank below a generate in posted costs the retail from although product came given our on quarter as and saw is momentum turn the regard, in improvement together our gross from platform manufacturing rates. continuing And XX.X%, product our manufacturing mix impact online and period from XX% which year-over-year as efficiencies us drive capacity we in to to allowing focus was for our and focus within morning demand we growth. this the quarter. from your fully environment. portfolio, the we related up remove and performance a market business more kept weigh more improved, to a COVID Back recovery the customers impact. you hope of Basics sales reflecting good back Good for cost a strong families with call. Moreover, by servicing we complexity year-over-year continue back third in sequential for business Basics sales. doubling making but manufacturing despite third which capacity areas brought a managing Sophie. and share this strong second normal We are we events, good quarter, mix utilization during from our principles recovery you, mitigating are third of expenses Further, albeit sales on second streamlined Thank our come used a pandemic to part In better morning, strong through This strategy SG&A Back on staying quarter. our the suboptimal with achieved leverage with we related driven at And our healthy

capital and on capital basis or our $XXX in the flow in cumulative We EPS few $X.XX. the manage to million tightly the adjusted strong million a of in this quarter diluted free cash $XXX as all we generation, last expenditures. of were with with return $X.XX, EPS GAAP quarters quarter to up, a our also pleased continue very working adding So we profit a

leaving us end position billion, standing. improved to the liquidity strong $X.X of quarter at further our the financial Finally, in

production up specifics team new the With the an channels to distancing workplace more are environment. a improving into owning distribution, would safe of bringing of across requirements expertise with as sales the and many manufacturing outstanding status of operating operations, facing. production our manufacturing the the in is the of our vertically are backup end the protocols results, benefit team navigating third and our get operations. our industry nonetheless, levels of quarter, to did our by overall quarter’s integrated quarter measures moved through I But safety navigate and XX% pre-COVID environment. on update we've our I like production through the I job during the of well social on our at provide team Before back And a as in capacity. bring ramping manufacturing to this of fourth without continued as challenges, operating and into levels factory the employees not back its quarter, to this we've This say can on continues

year, in totaling in operating promotional decline unfavorable U.S. XX% sales $XXX sales our XX% the XX.X% was channel. impact principles the better to our together XX.X% markets, quarter. the but discounting and hosiery America Turning down sales last of million the the results, million of mix, and in sales North were imprintable the in million down category international than the we versus $XXX XX% the down sales of up to while product October in lower volumes higher and $XXX underwear of with continuation significantly quarter, mainly were XX.X%. due in in generated Overall Activewear quarter second and

drive in As share for we continue this environment. to

principles markets. average, the can North year-over-year was destocking America tell stable these products, XX% XX% international we for quarter. Although, saw remain product distributor we further down saw levels the XX% On level and down were numbers when similar in second North the our we down quarter in in exited Putting together, in relatively in in to sales trends POS you the America. imprintables through quarter,

considerably level the quarter. is experienced from what the However, second destocking of we in

share the of strength which underwear gains and Gildan driven to in brand On the the programs. brand related private earlier, sales, our men's market mentioned I our by doubled retail side, strong reflecting as was growth quarter,

down to in margin While efficiencies sequentially, Basics quarter million also to discounting basis were Back from due the year. third lower a to than sales were on points generated manufacturing our XX.X% to were manufacturing point initiatives year. by hosiery more product sales higher utilization. costs costs by or gross and lower last impact slightly flat mix raw XXX as $XX was from overhead was to XXX and compared offset down imprintables margin basis year of end Gross related material Margin last unabsorbed unstable Gross compared last promotional impacted

quarter compared mix to the XXX basis basis thus expect sales significantly margins impacted in mix in negative on point as product to improved sequential Although quarter. by basis a continue we reverse continue impact second saw product normalize to XXX our we impact to going the from And the points forward. the

year. or all savings workforce total volume over Back as costs. of million resulting lower $XX.X from compensation basis, million announced in expenses quarter last initiatives, and or last from Moving on on $X.XX cost million million expenses and elements income total share down these SG&A. sales in decrease $XX.X related quarter down the financial reductions to permanent distribution expenses Adding per up diluted driven XX.X% earnings SG&A per million lower The basis. quarter, stem million $XX.X the operating well to Basics including net After $XX.X an of the $XX.X quarter million respectively or $XXX.X on $XX.X from $X.XX $XXX.X adjusted of share an million totaled diluted and adjusted XXXX. as in third $XX.X

in Turning sheet. flow to balance free the cash

flow quarter, delivered another remarks, mentioned we over total pandemic. at level my we continued generating to next beginning thus us as strong bringing quarter performance, two flow of cash strong in with on on capital this a of the far build the $XXX quarter move million I million to As of through free free cash of the focus quarter working cumulative $XXX expect generated management. Further, we the

manage the last stood have million. to $XXX to as materials and in we the customers the year normalized. at third company's managing they move on carefully $XXX are as quarter, our at net now X% continue were finished of and end third this XX% Our our through of sequentially key Accordingly, well end focus debt and quarter environment with level. DSOs at Inventories goods million compared raw grown the have down well to quarter second the which the continued

And Our EBITDA. the leverage billion of to the ratio for strong with move debt $X.X approximately environment. debt we covenant purposes adjusted ended two flexibility we times still towards with provides uncertain which net us XXXX, yet as quarter liquidity,

quarter good the a given So circumstances. overall,

to we currently are Now, in questions on commentary the the you what call before let some with leave marketplace. opening seeing me

markets down the range down into the across to have in channels month last in market. XX% U.S., fourth XX% and the depending international further October on the XX% trends quarter, imprintables and Moving year, POS our improved compared for between averaging the of

year the the On for last our most of side, thus from sales retail far up are in quarter. products currently

While we this this encouraging all the globally, cases could heading during the said fourth continue the have and crisis. the flexibility a with start the remain quarter, global of cautious with the economic trajectory outlook, is news surge given ongoing in particularly nonetheless the an of and and pandemic, we recent of to unclear impact through into have Having the the have to products. and to on the that, well pandemic financial navigate taken us demand we operating provided feel for actions our

to our the our to Back global strategy. with in focus where we can this on We continue efforts environment. we regardless are control pleased Basics continuing regard will progress the of outcomes And

offering expect rationalization which decision exceed leads expect the completed To strategic our of having review which do not we incurred retail initiative the last extent million. performing to of related product as the we product $XX part imprintables currently any inventory we're skew complete in rationalize fourth be by previously a to charge review, example, communicated. a a currently quarter, our end could For the year, our to quarter, to we retail

work good to company. a more to in position do pandemic fundamentally back basic overall, as from to to emerge done competitive but us we as our order this allow on strategy, stronger our strengthen So to-date

seen Journal's related recently to in ranking. inaugural press called Finally, Wall that you that sustainability would recognition out we the our Street have the we in release received

We update over team the a management We’ll you. like the with are now mindset behalf team, culture within I the senior this Sophie. who strong rest particularly would the back Gildan reflects to business. sustainably this with as On whole turn pleased of Thank every of day. finish this recognition regarding thanking by call operate to this managing our Gildan

Rhod. you, Thank

round operator limit to the for two call question Before the session, back over you second I'll that number moving I to questions Q&A will a circle of the if of Meski? turn the session. to we ask for back the permits. question-and-answer time and

from question Paul, Paul is with line the first is Your line of Lejuez Mr. your Instructions] open. [Operator Citibank.

Hello.

Paul. Yes,

Can you hear me?

Yes, hear we you.

improvement any the And outlook as better across imprintables for curious first you I'm being the anything last Thanks. on promotional the if seen you've front? promotions mentioned, out quarter, in trends less stand the quarter, just of categories promotional, are raw just Just this levels your curious materials are if curious the quarter I'm more has versus And curious there or channel any this within about board. changed sales then separate, ‘XX? totally promotional the half that if

and T-shirts areas commented promote market basic products to we're market categories our -- the promotion, as Basics to and and main share to basics Open-end our is our those we Yes, we driving POS category. the products we've to generate Back promoting are and and and continuing our products. drive are are price are share three our gains continue promoting that speak. we fleece to spending in big us our POS basically, three maybe And which fashion look where are that those the this strategy, and allowing fund prove continuing on includes are and the that

across specifically promotion a categories So, three board today. it's not the it’s

see And at Paul there think you the we think I as was that. the materials. I raw think the half, pressure cotton if won't if Second you obviously, part in look time, you go at going But if upward mean, yoru question, But up. you lag materials, of raw first some necessarily I is prices look forward. I in are obviously, on

you. Thank luck. Okay. Good

Thank you.

your And Desjardins. Li question with next Chris is from

QX new much demand, more normal, user be Hi, I the impressive improvements, drove colors the improvement if on curious end from Hey your Thank that you to can because some can good POS October, just still from quite on provide morning, know considering Glenn we're what give you that's so appreciated? you. but if away far colors more will

our distancing mean, I mean, things if airle back be travels, I little industry we the Well, sporting the and was, I tourism, and bit and come about think in events excited of were mean, which you none and I the factor. rock at QX we're social concerts. pretty -- like honest, look QX have really very improvement industry, is to a these

are most consuming chain news there's So casual market an market. alternative buying really of to and driving lifestyle your position is our the shifting is shifting of news people that products. is what customers, that And behavior And good sales. in example, the stay that the at are effective product of basic the to the our we're market now products screen an to support have but have there's retail home and strong. market very people the important supply stronger star ways been that's the gatherings happening the our for efficient position what should has continue great and more product that And of allows to social big and products is day, we social than the in We in really that's thing reselling, is that and online T-shirts think in to end it the insertions carrying shining industry. printed are how this At share of is issues is distancing. whole increase I

very to our the because we're products screen distributors it So We all a And it's excited printers. market. to and don't way great resold sold about get are to have now. answers

upside So of But to as in to a into it's get more further market total we hard it. terms moved very gains. handle sales continue encouraging. for And on see share and October, it's we us

Okay, up. that's helpful. Maybe quick follow a

view? quarter XXXX. parts. pre-COVID that I that by recover the a moving last will your is there's think, I year, next lot around level But XX% know mentioned is your that You XX% expectation still of sales still still to of by to

quarter. today? see good would in improving far Well, see I pandemic mean, so say I mean, we QX are view. a mean, from we I I in this that's today. where slightly what the yes, is worsening, also see that we we Europe But

the think good it capacity the a demand business. market. positioned, we handle of or have are function down that how a Regardless we affects, or where support position we're really overall manufacturing go on be that's to I well up in our So how we think but able and to I any our

good very Our inventory levels in are shape.

flow to are move continue when as has focus we QX the we our Our selling continue And together things into capital and for to continue ultimately share. price part QX to And come at improving what -- down to debt whole the market we'll to we reduce of into drive support on to driving in a cash of inventories. it play by means of availability continuing and Back our for working is drive Basics, going but price, share and business. as those are required our amount big to all us driving you look strategy recovery

And of year rest of helpful. luck that's the to continue stay and best safe. Okay, the for

you. Thanks

the question Vishal line comes National from of with Bank. the your Shreedhar And next

and results in Hi, thanks taking these my congrats period. the questions tough for on

wholesale update Regarding customers, your channel the tag wondering just of and restocking of health also reasonable wholesaler to time, now to coming destocking, it wholesale for on the customer? the it state can sorry some some reasonable that we've of time along inventory period if expect the maybe in restocking is us quarters of seen you financial the the period and is for to average, in

we a industry. our the same health are in recovery big are, have position of the seen of they've The that customers sort in

being managed working our their well. their as distributors, and recovered. they've stability So these They we are financial of have as through so capital also recover, because sold most products

to the in continues support hit will that little stable, to grow really direction probably -- So very they as QX shape. a we're demand at same the all grow bit yes, -- the sales. they're good will low say there. same the the And would that is But I be of they're but future of QX bit inventory probably they the a in little end

excited we our pretty and in position now. in right are are customers good Our shape

to Okay. unproven manufacturing appreciate that, own And footprint? to inventory associate outlook? problems make follow COVID-XX? and just with that Gildan’s social the COVID-XX. on a and reflect to I ability on your respect do capability your imposed demand you talk to And Can this sufficient manufacturing with to restrictions about color. any you foresee perhaps, seemingly restrictions And related distancing

is brought real production flow performed making our we to demand. Well, than strength level, the and XX% our our into how which it see how a I -- inventories. focusing a in strength try we're some great down is continue we to Did vertically think manufacturer. brought as our one level, team manufacturing itself. is our And back integrated and the things quarter on job, function we QX of capacity And sales were the that of we we support back we this of we speak a increase sure because when lower being to of to continuing the cash bring free really

all we And expansion, do come all in being facilities decide which of installed growing XXXX. ready to is QX, in to continuing that have closure repurchasing closed are market. of So up. that to -- going we're to And to we the relatively go. we Mexican that's for expand our we available going down March to to that We've and scale Central on to we're capacity We've the is And from have in Bangladesh installed America. as want levels. got planning speak continue capacity planning we the back if really pre-COVID easy go fast flexibility to what can are manage we we too, XXX% really we to down, how got occurs to that

I in we're continue support we're relatively to So support a that And easy position that sales sales if we curtailed, also to perspective, are good on a think can growth. in today. we manufacturing very position where

excited that our testing we social know they plants all we're transportation, the for I employees factories footwear. in control we've factories. it in factor and operate in So, regions, Central every day the our have COVID we've But have is quite in relevant all test distancing the scans, and a protocols temperature when come America. I is their protocol; our mean, in to been situation able sanitation, our that single put

think far. pretty so I well,

you. Thank

line And Khan comes of question with your to next RBC. Sam the

hearing having you. trouble We're

is line your And open.

Okay, withdrawn. question was

MacLeod question next Your is from Stephen BMO. with

morning. Thank you. Good

Good morning.

Good morning

I a one just sorry on the imprintables of questions couple imprintables or question actually and had on the then one segment segment other.

the see of terms categories, just imprintables, QX an you can about bit strengths and where little you then and October? incremental QX between strength you where saw and into between talk a incremental QX In

Well are saw QX, obviously more to actually actually really, sales part QX and growing fashion, our a is of positive big first that from those are the actually driving really positive QX well the but because everywhere are QX. QX as the we in have positive categories those turning -- basic T-shirts, They're the in improvement the QX. are in

Our in positive and fleece but to continues basic our far in category was QX, accelerate QX positive turned in actually QX. was so negative in still QX. it's And

are we the our sales. that availability on basic our So strategy factory are proving to and drivers be and of areas growth the driving price promoting

with fringe tourism lot say products of A example, have souvenir, let's we items, are shirts into those a sleeve shoes, sold that core. a other these styles of we etcetera. long other of get for lot types market pocket that have not The if fringe a

fast as a they let's come So say example. back for basic as T-shirt haven't

I basics QX. like have even this come to much and pretty fashion what's strong So said, through QX this this territory been driving into in has one in all month, back August, category positive now

you little And Great. you and had expect you impact sequentially. XXXX? you get XX% Thank the do can you growth of that about And how margin into you potentially still And view then on attainable certainly that talked some side level bit normalizing. as XXXX, sort about normalizing you. talk nice then or the to evolve? QX in a as margins mix

margin, them evolve, the from called Stephen it's and as seen we have Yes, how the can if see move QX you look we into you evolved, those continue as QX. impacts we that we move to right, out at QX,

QX, cost in had we lot we period in a of QX. had So

improve move utilization it We also had XXX And call the to at out continue quarter. about QX, production. manufacturing, we basis then right our the up ramp XX% on [Indiscernible] as move end will we period as cost, we we average our XX% into points, of as that

So diminish. that'll effectively,

if not you your to continue look some reasons. see And if where come mix, evolution normalize, into margin. QX, negative in as QX is into point a basis mix also And called On QX we QX, do impact. Glenn effectively, effectively, drives pockets in that's that back. of shifted as effectively still area quite that's Fleece the like those, to an fact. the has QX, products, is the that the probably the positive mix mixed don't you impacts, for sales negative should move But mix as side, in but starts diminish. our seen number of have overall. like continue we have And positive effectively mix it’s different of then out, negative bridge we we that. We things they at get XXX We have a do that

say overall, ‘XX. as evolving drive our I as is effectively to everything normalizes would So we and margin

basis. going If Previously, some take said that on quarter, out We towards longer hit term we It's you that effectively. targets. we those ‘XX to our driving thought are on would able to pre-COVID a run the look call very those we end definitely targets we by of rate time. be targets, last had

to going going print environment those is from we a to what's to you've because a right, push after now COVID where in was a it more overall where business that got still back where on think to we're back targets. normalized But perspective, given have I get XXXX.

congrats that's, on that's Thank helpful. and the great quarter. you, Okay,

CIBC. the from line of question is Mark with next your Petrie And

you capital very Good Rhod, for optimism morning, obviously highlighted your very, QX. strong been Working

this permanently more of operating just QX? a of benefit in see further So reduced we sort of are level, reduction working see is at for we representative -- that skew this as what further a relatively result of in sort And potentially once you further do a efficient structure stable capital sort count? of the runway

right work on it you away. Unlike

the you as will product at capital, working If on look Back Basics our effectively terms. improved with working and better structures, our simplify we we've ultimately overall everything translate into capital, associated portfolio worked to

a and translate more And you're doing But of they we ultimately we those working so we've have you done forward. lot into And seeing performance were working And we'll the benefit a still we our QX. as better move come portfolio. that as on said; retail types be initiatives through. capital do, in

wouldn't ’XX. say wouldn't we've performance lot, yet would say to ‘XX I drive back I a on mark I say better into and but in we done that will done the stronger So be as we've looking we're of we and done move efficiency

also business. even us more basically. And SG&A inventory down, going then going our improve so our in customers, to can to it our allow the our service does working our centers other we of it to inventories area lower distribution are that and to keep only and not inventory, availability in will our have of we're but coming more parts though And also, improve our capital, efficiency our improve

basis all is the it's lower about. That's win-win, So and what a less cost, availability. better inventory,

growth sort to brand I label label, is the And in the space the of private regards are much or growth guess, much there, visibility your space Thanks. it versus stable private predominantly and any velocity? with Thanks. retail, program, understood. to was today? where with how you and change the there like Gildan further at shelf how shelf there increased in just but you also performance And are too, so any sounds Yes, improving in of

right. because the based intended pay really [Indiscernible] that on it philosophy think growth I Well, is to of

to So move very we've products the forward we we're share, continue as in take are And growing continued future. looking to and doing well. our

growth. level the of this. about we this excited continued pretty is move a we're And forward as So operation in

Okay, appreciate all All comments. best. the the

Hannon question Canaccord. with next And your is Luke from

channel, like Thanks. the Activewear just the and Good of how sort those? different morning. division, for different customers specifically trends is the the of are end give just other of if trending a on to you the maybe was could specialty color some the and POS curious segment and the little there retail, I maybe bit mass what amongst Glenn, like customers know of wondering retail

sales were our some sell to our and products Lifestyle that overall, in we down retail were quarter. Yes, but products flat, the mass were of brands up actually Global

our well. is very mass So actually

manufacturing Okay, Rhod, And you policy on that was touched thanks. XX%.

of the the if I end? think, of has quarter as curious end just changed quarter, to know since significantly number that

up it pushed right. We

So it effectively, we're moved XX. QX. And as we've continued we bring to up, into

that's up sort manage with distribute that. it we how inventory in so we're bringing to POS mind trying working And capital and right? trends the of line levels, of in the industry, Still keeping in

Good. for Thanks comments. the

from Morrison line next the question Securities. with our Brian And TD of is

I in point, maybe it's a morning, up As number maybe put for to you Good that early utilization, outlook just XXXX? follow just going actually, on to period mix, Rhod, of want simply expensive weight the you terms capacity impact, in retail terms can QX right an on gross to referring margin higher lower fleece now? And just then and cost? are of to

mean So effectively, gross of moves impact we sales as touched then, it levels, generally. up revert but lines, at cost be is said, I it, on going I around we going settle that margin, across say our would I product well, I where our as upon the where probably QX as giving a mix, up, we're if gross we're better Fleece a normalize, you some effectively, there help margin, does historical look I running, drive And average, look currently I think, all as and as ultimately, you number, will would the think, quarter. given at again, more QX. we for of and will for would the are QX, back say, say, not again, at mean, because, get to Is things period right, will capacity if XX%. good I look help. the we utilization, right to But guidance probably to, I

I say think as we that about XXX other down our impact, I the that, as this again, back. XXX And sales basis so come then And quarter. steady there's keep moving we mix a basis forward progression points way think were we to were just would points,

And curious in just just GLB, opportunities private typically structure heightened you. I'm more restrictions travel in out your label Asia? time if from hot of opportunities your terms cost and with sourced thank in Okay, requirements. then global improvement you're and Glenn, obviously that's seeing

and label fashion repurpose a seeing We're our their end Gildan garments to rebrand shirt, service away screen the a been and labels, or at the Because a of can of of product take I on have to look, that brands they basic our big they for printers can retailers demand growth. fleece, day, the online a the catalyst have of people really quickly and products. our large that the sellers. tear want that's in change mean, all POS lot all all product

as I make still picture a the about move have chain. a are people regularly part etcetera and we Obviously, users shoring large think lot off opportunity big general, for overall to manage as ‘XX conduit management, companies, forward. the their mean, fending they retailers, people they're to a global just lack in crisis your product supply to this for to the success that's inventories managing but about months for And think because grow that global when of of I and also the how and the quick speed bigger a hemisphere, of the going settles, on and look COVID for big go I business screen I a us purchasing into printed weeks of of convenience look almost plus major. turn five going that is been versus big product, us, we're So, five be and on of shoring. think travel, the in that

coming I well being now as think see we're a big that's step a of This So way at opportunities I think lot we're well next the online the the positioned. the once. been has that that scripted getting And markets to mass for as retailers some Right potentially recover. servicing our of is lot us sellers. as

are today your or on discussions stating so, you just And that based intuition?

some discussions? intuition partly and My Yes.

very Thanks Okay. much.

question next Stifel. is from Your with Jim Duffy

well. what you're the you doing to extent have you versus market on speak what to Thank curious you're XQ, if in trends. in a retail XQ growth And question shipments morning. would of Can trends POS be was depleted any could differences to that your Hope POS that that that speak POS inventories fits then, helpful? are sales? in quarter-to-date, reported seeing compares I'm about you. Good landscape. your guys how in and exiting with you I how seeing replenishment

underwear and year obviously of QX basically, And was in so be chasing because were our the now for sales particularly point-of-sale. by of driven all POS we're the you actually biggest so Well, right is our to strong. part have of honest product with

the have a first bit have these seasonal, So towards you from big you that's spike it's back to levels basically, then come school. end all spike holiday October. a the in POS And But season. slightly part of point-of-sale, down a I mean, little seen we've

I It's on So based thought buying we're at very encouraged. retail. consumers basically on all our products, point-of-sale, overall, growth

you can sounds then, you you. environment to Glenn your normalized point or complete stance? competitive on distributor is to pricing matching imprintables would destocking promotional more what Thank competitors comment here. you At and the like a get expect it And think environment?

way basic at back to look skew leverage to rationalization first strategy availability. our objective spent price basic of is think the to is back we to And Well, our strategy. actually

to be future. for be because we're taxes, SG&A driving, efficiencies we're going manufacturing going aggressive reductions continue associated Basics marginal still Back with the that think foreseeable we obtain on as as can well price We to very our do our to to So strategy.

definitely believe think we're this of power and manufacturing, our and our gain, And competitors And right we're type we're they it. future it's market share getting plan. We now objective have market paying gaining don't cost staying to can fashion continue underdeveloped, basic pricing foreseeable particularly share market categories where principles the think is structures. cost to pricing is category. So, I also market in position, dividends this low continue to our we're continue share And growth. we're have the through that don't going same you right build in share the seeing, do do the that our XXXX because our were seeing, is because strategies leadership we to leveraging through the

continue the short-term some for and maybe will on to So get basis going we a we offensive competitors matching, longer win we're all and that to term but on share believe making sure drive price categories. back availability that us on and

be is related quick if enough to themselves, that opportunities there just that I environment that? on And up, if may M&A you'd now that, one were follow such the presented market capitalize stable to ready

focus capacity have our believe Back Well, of our utilizing And between which I our Bangladeshi our we got the we do phase only the with organically very X. online, on up capacity and beyond coming part the continue And a is X, expanding that coming that's as levels, breaking capacity Mexican then we repurchasing of the of capacity Basics expansion also to do that that's We online, now capacity Bangladesh. strategy like can we we is capacity maximizing phase think the pre-COVID it. as have. opportunities available including all have happy. that And we're to well

share. in we're driving our continue front on So us, we to our know why we've got we our that's And on price of sales. market availability enough think, focusing

Thank you.

with And UBS. question [Indiscernible] online your from comes next

particularly that year? or see also insight you how quarter. could the I more and mean, morning, behave users maybe evolving you ask thanks how like on good that corporate much little provide seeing see to do back? questions. very my throughout I expect next Hi, want taking the would to a how to social men that for like come if someone and bit you're the end how And you see, events, you interested have the

products now, that up, tourism retail, that they're making online is users through the getting still mass think I opportunities. end of good words, right the different news selling, In other our Well, and travel.

be, So commence it’s when the pandemic, gatherings all back. traditional function again, come the question we'll is social and the see of business then going to

But a that that, coming the not happen. is function very and we're the taking with don't product really occurring, our all good I know recovering So the share, bring to market encouraged despite to will news can't as answer as that of back well events POS, when I end almost normalization. to that's these And us question. user. finding ways

answer So that question. that’s probably

sales Okay, Pre-COVID? we understood. XX%, around I have implemented one should strategy. Back probably rebound And were that how about to next think SG&A because to mean XX%. you So the the up, mentioning quick also just year might follow you Basics

next bounced like, like just So there's wondering environment? more of year, the much see back how normalized assuming we SG&A should that a

We we're SG&A. that XX% will I will our right, SG&A this way distribution driving driven mean, right. I the about see think to costs, is more target, volume But to into think roll broadly, that

targets, margin move better below We that we level have think the our we to at and into or gross this SG&A think as XX% something two target. that we're that is we quarter, SG&A run we our target, And close we very can ‘XX. were that

and congratulations. Thank you Understood. much very

Sabahat final your from RBC Khan And of Capital. the question with comes line

Thanks.

the which retail about that areas rationalization, we of Just the from around can strategy of press focus on talked and might million your just the charges, about commentary be retail Maybe review release side? this the the what's kind of potential sort you or driving talk the portfolio Thanks. $XX on offering. in within the rationalization

our to the as continuing to to Well, market consolidate. we're retail We're simplify optimize our going continues business. business just

products the We those growing, line want SKUs we're focus with making online on and basically we to of our amount in sure growing efficiency, simplifying improve help reducing areas so assortment implement what of to associated retail, the our have distribution, looking products that the as of and complexity and right that couple And do did order our think reduce have this in as will selling Basics and to reduce forward, that's we Back that levels to our of mass we the growth have we the in sales like ultimately, selling go have drivers product we and margins. SG&A we same the We market. as strategy us [Indiscernible]. did all actually we're is inventory improve we

big looking of you can same it's where opportunity about the dividends, we [Indiscernible] from we'd and and focus, positioning front of So our our and just excited we see same are think focus have paid very results [Indiscernible] the type we're on.

side being and today, looks other popped of up, back kind maybe versus a it only even demand the absence up. corporate have the of around, levels, in without know, bit to that fact like And the home some products, XX% about the of other end seems I discussion gatherings, to work the be stepped concern that thinking out that maybe corporate there's down like year. the market how and And channels that then there's started, large any like been When you these are the adds demand on comes replaces maybe the of we of of come And consumer call prior XX% new POS even Okay. buying from events? current of kind there the bit the about a all channels are of back, resellers away, pandemic online if side? the have goes like this that online not some on overtime when spend last getting market how the you large you're how might thinking of XXXX it

mass going I us tell will that way that for probably market the gets at by-products efficient a lot we are would servicing things also that the printers intuition it we're it. it, of when market, say we're And happens. servicing recovery grow really very you retailers pre-printed chain and mean, I that's traditionally. is online between look think also, the you supply to large and screen about

distribution question, to market expanding. is that is your So, would channel answer the I overall, I say because the growing, think

travel we come a have corporate And we Definitely, promotional come back so back. will market and had does bigger than before. when does spending

Thank right. you. All

at And there questions time. further this are no

and thank to everyone to us today. speaking Have for Okay. a joining I'd look you safe. soon. to And stay like forward good very we day,

participating. conference concludes this now gentlemen, Thank for disconnect. I you and Ladies call. today's