Under Armour (UA) 8 Aug 232024 Q1 Earnings call transcript

Good day and thank you for standing by. Welcome to Under Armour's Q1 2024 Earnings Conference Call. [Operator Instructions] Please be advised that today's call is being recorded.

I would now turn the call over to Lance Allega, Senior Vice President of Investment Relations and Corporate Development. Please go ahead.

you. Thank welcome first and earnings fiscal Under call. conference to morning quarter Armour's XXXX Good being replay. recorded is event Today's for

Joining us Bergman. on President and today's call will Stephanie and be Linnartz; CFO, Dave CEO, Under Armour

statements years. Our will future the current of projections These business remarks our present for quarters XXXX. Under of X, may contain forward-looking in view August today as statements Armour that certain our management's fiscal reflect and include at business

differ measures subject reports and on underlying statements discussion can from are Today's references. provided helpful Armour of on which, believes use be also guarantees or release actual with measures, about filed pertinent with XX-K reconciliations in trends. those measures detailed materially Forward-looking press underarmour.com. the the business found and our and along perspective may implied future release business expressed appropriate report regularly press When reconciled Under of Form with and uncertainties the our today. information morning's include results performance a Form this Statements to not the including other XX-Q. other SEC, investors these to morning's annual provide quarterly documents most in are views made these U.S. on risks GAAP are in of non-GAAP may applicable, our

I'll turn that, With the call Stephanie. over to

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hand Now, go to over quarter call will the on first into Dave I our detail results. to more

XXXX review ended let's for June that, which XX. With Stephanie. Thanks, results of quarter first fiscal the our

in our line Our first revenue was to quarter was X% billion which outlook. with down $X.X

to revenue the the down of X%. the due negative strength was foreign impact currency dollar, Excluding U.S. of

into was roughly wholesale year changes X% in sector-wide as was line to our progresses. channel regions; we a result fact down promotional the due and North Going in with and that the which expect revenue ongoing down ease activities, the will elevated in expectations our America of U.S. inventories

the in result, be a first this North year. the America largest As quarter decline should

EMEA wholesale growth currency-neutral our grew the in during XX% business, EMEA XX%. quarter a and was growth our solid strong in with in Revenue performance DTC in business

our business also in by a was and retail improvements EMEA, quarter, Pacific basis, performance Asia our COVID XX% rounding it DTC post Our currency-neutral wholesale on during XX% we revenue in And America was a solid up Like DTC results, the traffic normalization. saw increase steady fueled and up due in X% basis business. up during the XX% out wholesale Latin strength or favorable currency-neutral business to and a channel on quarter.

by were basis, XX% global channel wholesale and revenue $XXX $XXX and in lower full-price our was a performances to down businesses revenue run to offset by in million, sales [indiscernible] more by was primarily was revenue quarter million driven type, in up our primarily in the by all million. accessories by sales amid North ongoing priced Licensing up softness strength North X%, training Japanese X%, wholesale American contract spoke pressure in By American earlier. e-commerce Increases in driven driven our than On channel, was environment down due licensee the $XX distributor apparel X% business. X%. the by revenue down challenges. in softer Wholesale the and revenue Direct-to-consumer driven channels. Footwear we to our to X% to solid increased U.S. retail was to business our and

XXX Our points the we products first gross to to basis to points as channel. basis basis headwinds related offset primarily points unfavorable season points year-over-year basis related by basis quarter of within from promotional XX chain was points as more negative through to a our XX and mix. channel points business tailwinds XX.X%. impacts inbound favorable manage partially a related currency activity to This sales regional favorable product mix. XX prior XXX and by from These DTC as pricing off combined higher freight changes XX supply and price air and declined basis benefits from ocean well margin driven were in foreign less of

net earnings income in Moving $XXX the million in million of we per million. P&L; of SG&A first Operating down $XX further realized after or was were down And income tax, $X.XX quarter. the a to the X% expenses $X diluted quarter, share.

up due of through and outlook. ran orders first COVID-related a billion. due accordingly. to to balance summer of inventory starting was constraint our model callouts, this This comp reminder, inventory is our supply And $X.X as we challenges, to quarter which leaner the proactive in XXXX so cancellations elevated our Next, line levels two with with sheet was XX%

revolving cash we Finally, our no quarter were facility. had and end borrowings and equivalents billion under cash million $XXX $X.X our credit

Now, to is to fiscal no reiterate, let's we fiscal which there 'XX. on from our to slightly the change that to should 'XX flat fundamentally unchanged up turn May revenue But remains expectation be versus outlook X. provided our outlook

down do X%, our North at to the APAC. rate momentum be we up see differently to earlier and with to up spoke in continues EMEA X% to be double-digit challenging as international America we given a regional a expected business shaping However, the and color low little environment

$XXX our income $X.XX. is $XXX no to is and to to million earnings to outlook And expected basis flat there an to improvement share XX million per slightly. XX margin point change from rate gross continue $X.XX last Next, of Operating diluted up XX.X%. which also to to expect SG&A year's to reach of we be

of some on half and Next, 'XX. second I'd to color our second fiscal give quarter the like

quarter slightly offset prior a revenue low second by down American our to the business. business, be including North expect our single-digit to We mid-single-digit in growth year decline international flat in versus partially

fourth revenue we In year's expect to rate be growth quarter. in addition, highest the our

Next, we the in to persistent second expect be to from lower to offset by XXX margin activity. promotional points costs gross quarter approximately partially tailwinds freight up due XXX basis

expect third quarterly actions We further. gross have the due our smallest to to improvement down margin to quarter year's anticipated the inventory manage

of All $X.XX gets to which expected of an to to million operating $XXX of earnings $XXX translates second share. income us to per $X.XX quarter diluted which million

declining we billion. rate in at our percentage in a finally, $X to up the our at rate quarter at end high mid-teen 'XX the third at to previous fiscal end inventory single-digit being a outlook, with And mid- expect second to be percentage and line quarter of down before approximately

wrap to our PTH and growth we which prepared initiatives have the drive engineered the to in ability against remarks, our term. up are revenue over X confidence our today's underscore execute strategy To I long improving

efficiencies, of segmentation areas ASP cost opportunities improvement expansion. drive rationalization additional term, In we supply identifying such chain improved to the and near SKU are as

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in implementing to PTH path improved right With we our our books, for execution that strategy first our the in creating on quarter we confidence give the term. are the are shareholders against changes the our value long me over X

turn we'll questions. that, With it to Operator? operator for over the

Instructions] Our from [Operator question Simon comes first of Siegel BMO.

Great. and you for way And on gets into [indiscernible]. have for just second you That's still love out need inventory to thoughts versus also but you it both know Dave, to as but promos in environment I North Thank Good looking the Stephanie, you, might early full Maybe thoughts on of your margin America. everyone. it get the nice morning. quantify you the your be wholesale a how Hopefully, broader puts summer. would flows and the the just gross then, for any year? cleaner. takes mentioned through any quarter just further

to Simon, Well, summer you happy Sure. well. as

for we be is to year less need our it of that environment, things promotional wholesale the next There's a more that -- and levels get couple head still activity. much As remarks, activity year, going there on into inventory of are inflated will prepared so mentioned we things on. relates we as going but there's anticipate leading to will it in see the as as and promotional better

with driving sales again in elevated footwear, and partners. women a the delivering international really wholesale are very much while brand is a sports to U.S. much Protect product our better to with bigger business that [indiscernible] I focus This U.S., and with leveraging our come longer going X together more think our momentum. business, design This on then though perspective driving all term, confident focus a from around global on heat House which pillars we're

And it's us our also going distribution. expand to allow to

partners better on disciplined new open going segmentation. product, the more focus to we about doors, As wholesale be new arena. including going in we're to We're

strategy long-term and we're partners. So where we're excited about headed our with the

and to of of position. very we days relative remind of And all, healthy just We I inventory up have gross year. don't making against mean, a I last is inventory in older lot first and kind a our leaner products would our us that's are inventory margin, normalizing that

point that and to And translates and well of see move a we X% to we think offset some need expansion which promotional very things and then range keeping how to your X% There is QX, level. little and continuing the revenue and just big point we a really also gross X but pressured. reasonable partially feel other XXX The puts third-party QX kind I of kind the XXX promotions costs the our lowering that margin. basis are balancing be liquidation off-price So In are and ones. half environment we're to of in it's bit to to smaller QX mainly. some of that the by the those see back freight -- continue to inventory channel for takes

And to for we're little holiday in quarter out takes. half called the just in of being improvement the bit perspective, in QX this gross still about QX we're the the do the third in off of puts year-over-year timing then But prior little how that's then, quarter, of more also, being that think really we calendar with margin us. as versus the or one planning plan And kind a we the for you because some quarters third channel quarter again, when cautious I a think third-party year, a smaller and of similar from us. fiscal and back year

into of some well. as you So that play see come

base, go next play of would in in into that year-over-year past vendor as then a initiatives working year. also we've different more and we our improvement on then, further quarter QX with in better And to the get come we because then see been QX costing you lot start they but to

Great. That's really helpful.

and inventory this point -- is on health. quick a percent your hold follow-up to you say the Just Did pack quarter? about what the

probably would say, I of and of inventory mean, speaking, year-over-year we'll due generally work I is to down, to X/X to that work been that continue in increase we've hold. starting about, And the then pack amount is some of outlet is but that also down product in through as our there's our of accounts we core that, in-line stores use because more that fair that nature. a some seasonal

Best year. rest for of of the luck the

Our next of question from the UBS. comes line of Sole Jay

for I just book firmed U.S. And want last question on up a to orders be trended your would And holiday about expectation? as Can talk up helpful. can the more the bit to got develop season. channel just quarter maybe mid-tier versus follow then you the That you first. -- if little through business things the premium how order the talk channel, those relative there? about how it in and you went the what how your wholesale versus

building the the to of embarked a knew just from partners pressure some lot with on the last there in of we going on brands the As this year. that was some coming be buys year, inventory retail because we of

so we orders. coming that the And in through saw

in kind revision on would around QX less And partly that -- going we orders say that and embarked this though As I the slightly expected. within of had did revenue. what QX, QX, the into made year, visibility we year than we those this of what's that's come

order that a yes, QX, our that the in very North tiny are we bit. out, revenues tempering we America, QX [indiscernible] with visibility maintaining kind So of But for definitely wholesale that. comfortable on we're feel with

we're You drive well. in continuing see update. that our very international, But to

back net coming And us same for that a to on up tiny so bit revenue for but the the -- year. net-net, answer is full still full

Protect the perspective the what be just margin plan should to potential financials? a months, As gross connect global on Stephanie, margin This And from you last of you I been heat more then Got the and have it. strategy for driving the of X about the Armour Under the working as maybe, into as brand the as product? you you've really getting House role, and the seen talk over think business. gross sort few

Yes.

I lot of I think ahead. think -- a that got we've opportunity

profitability. I that think and growth This but X remarks ASPs. 'XX -- beyond see, really year medium But my really much think of fiscal of beyond. really goods mentioned that House we in driving the in is on there's the productivity, are driving I that focused term, is to through SKU short year I a growth There's to went begin we're both higher done improvement. pillars of 'XX being fiscal Protect looking I year in lot cost building and on 'XX a on that -- are drive and about in sold the work

that We are costs high in looking time success reason manage the P&L no more can't we so to And very really for aggressively, set get over back up we the ahead. can years there's to the XXs.

what I So when future, see. I look out that's the in

footwear, a little well. of into there's for couple pressure within us to improve couple we're continue the the A starting as of gross a of things in scale and will add are margins which lower. as getting and And go wholesale footwear. growing faster a that from there thoughts gross because the our is next of But gross margin on DTC overdriving our building growth scale as how continue rate and that is from we to margin product, as footwear that grow couple to years. bit we to But I'll approach be smarter also then play mix helps just in versus we

normalize starts a is kind of less; so there. disparity it that bit So little to

get comparison increasing And and visibility that costs those really back the working the jumped of hard on bigger has with we things some into of that and product of work underway into benefit full our anticipate the as in one costing then more that fiscal 'XX. do even we starting of is really so this side fiscal with to the into different been come of for year and vendors. year And build-out our QX we vendors

question Drbul Guggenheim. of line of next the from Our comes Bob

questions Two have. I that

AURs you're that where to can product around And where product Can on product brand joined? driving team the since of one some higher is think new second those about improvements pipeline, sort talk new focused of pipeline talk versus you the group ASPs. pipeline, your just in like talked is or competitively the the the Stephanie, first and you question making the priced the opportunities around might drive peer and lot be? that's how you place you're is, you The and you sort a just development,

absolutely. Sure,

product. as part first the question to of On your relates it

we in the as search driving better is have on sports building about and part help on product invest. us we footwear And on big and and Product and particularly going place And on -- be I pyramid, to footwear, team pyramid. better of is women those talent. have look side. on the to help in new -- a We're Officer. new product we're parts Our we've Chief as continuing mentioned, a style. underway innovation that the brought to designers to bring at opportunity for new the A focus, out out excited some in discussed, We is we're sport excited more focus the product just again, to best style around build that the of

the is higher to be going the part product I which part drive leads going question So of about pyramid second better think best and we're it's of to really which your driving again, to how ASPs. that

at segmentation. promotional digital to on -- higher opportunities We're I think drive reduce look to more ASPs by sites to we're to going very activity. continue product, better going our disciplined overall

for really company. drive top So per product, put in and ASPs. the everything segmentation, we're doesn't I higher $X, kind a some unit take disciplined And profitability more lender, revenue $XX to you much $XX, of it better drive the significant again, line think going to when

very that. focused we're So on

Our line Vasilescu Laurent next comes from of of question the BNP.

on [ph] for Laurent. Dion It's

America lowered you Within of for it could that the sounds at is the on most expectations days as like just the wholesale changed all? outlook, -- side, ago? Has Or the XX that on North changes maybe same the DTC. comment

much. between the and haven't Yes, Dave. this wholesale I DTC is very say would expectations changed

orders, that haven't is expectations that a that But We and that little QX adjusted knowing the I bit wholesale skewed. with America our say in provided. updated a QX more we've outlook bit around we that little would North really

we back the on year inflection perspective, probably that real days year XX back slightly worse not we performing better you there. for DTC net-net full but wholesale full big expected slightly from So into could than and the a expect that

going a maybe it. percent about forward? strategy about that, the renew UCLA And how that a Helpful. just maybe Team and You've overall? talk the Dame you then, you nice as it's some marketing Okay, Notre Sports? been bit how could about you're to see got around of within exiting thinking more sales you think but And contracts with now

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the authenticity court, one is real Armour world pitch, a in of few the Under of field So brands the play, name it. the you on that has only

relationships it's great authenticity that collabs. also this into for going And relationship we have and through with schools like us Dame. like leaning see authenticated Notre you're So to

basketball Dublin up Notre summer. in relaunch for later I and -- plays Paris. better in heat coming in this the going prepared this collab my exciting remarks, in have [ph] mentioned great year. our we're later We with Dame UA place on Navy of renewed collab plays USD Notre other version Paris and Dame gear, compression school women's when improved No to side when on

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Our Blair. the of William Sharon next from Zackfia question of comes line

Can hear you me?

can. Yes, we

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are that women women harder for to are think of we definitely before to on But had underway. focusing we matter. the that and about appeal ever well will than and as things excited some men I

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Sure. Yes, international with seeing we're very in the pleased our we're momentum business.

retail start the partners. partners, discipline particularly The with around elevated a wholesale footwear If -- place just you and of well EMEA, in terrific team in about relationships with the our fantastic and and job doing lot brand segmentation, both apparel where own Germany, Under Armour but our EMEA, is in with very wholesale international the the very brand particularly both in in a very -- doing think is the I'll U.K. markets. we're in apparel, with

in APAC partners. think APAC, in that athletes APAC. seeing very mentioned EMEA Again, I also we and in DTC to growing in with and in we're brand, APAC. kind of We're very our wholesale about as move I our positioning the strong brand As our in premium, both remarks,

Asia So see driver the term, we're in big and over growth China, for growth really excited us. about a our long

going But repeat start originally direct and the as China wins And loyalty higher higher the our there per drive means of to On in more I actually is relates and to stores. have investing already my going the revenue website, going more and we our be these product. excited to know program little program program that's ago us saw higher No our per to we're if launched am business allow life, UA cornerstone from stickiness off past -- so it specifically. product this We UA Asia about products, it engagement. Rewards here don't U.S. business, It's you customer, great engagement; anything week and over own our more and Rewards in to program back so goes the we some early in launched repeat more where revenue customer, consumer to direct in the rewards be point, to is to I channel that app first a of so our all, a loyalty channel -- we a great strategy. of

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bringing So we're the to to great a It's in here U.S. off start. we're

rewards to done channels, our it expanding that time, the product mentioned. relates this center is retail stores I we'll look digital growth with out it's of program marketing something terrific later the is because, well and going we're a summer, it driver Our for again, be the And absolutely gate around a as to over to rewards first, as at program us.

excited we've mentioned that a to got more in the come here in and So U.S. start China. already as but I we're great

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kind will. gross through? headwind of shift, then And well over benefit positive you in as reinvested Armour here if quarters? that dynamic would of supply mean, fiscal less You you'll few you the do those lower type about let margins Or chain to that But a like extent QX. to a disruption. from be that savings next costs, we others shipping how the mindset Is think mentioned flow should I Under elsewhere? that the like for tailwind

freight costs this of So last couple us that. to lot Obviously, is a pretty Brian, Dave. a bit a challenged some experienced prior year of things, and little even

kind seeing those are it's a coming and so getting levels we check tailwind. of in costs great as pre-COVID that to those see So back and

added of And being the continue especially year. We a the as that what's that. then to will in product we negotiations year, into further costing seeing to tailwind our vendors with again, go -- as the we this expect is some rest to through QX, the addition that of

start so on So, kind through that deploy we're two-part how benefit focus of frankly, profitability. that, to expecting we to more Relative QX. in coming our a continuing are to even quite and we drive seeing

driving X leveraging we it gross majority to The PTH to or priorities. be but areas which to certain make going drive will be of So SG&A our in in continue we're continuing year. line beyond year move strategic whether strategically improving forward, also to forward our next bottom whether reinvesting shareholders to that supporting we're to next the it margin be and to profitability sure our our

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there, Yes. I'll start Brian.

to to fall at where with of technology be more will make think our and Notre the heat Dame our footwear. we continue in some and this and have our Navy HOVR that the I So game in relaunching would our athletes going apparel continue gear we're to materials innovate Flow mentioned we compression that productive. areas be fabrics I

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innovation new in the footwear innovation pipeline; to team apparel. amazing what's an and relates it next focused As that's we've in got on

come athletes So, But sports. on makes that making never need it knew more better that to their and that about them products front. and they at really it's much

one think SlipSpeed, to add. I more point thing

convert really heel and at easily [indiscernible] out down. A looking very great and that athletes was to It could they it working innovation run really a training I the they that think that while and shoe is was gym SlipSpeed at insightful. use needed. something they could

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product I SlipSpeed example another is of think So great innovation.

what all that's about. So, really that [ph] is

and about Brian, call, that back with bone within PTH us. talked in religiously specifically we specifically franchises job with key on drive is idea inconsistent Yes. where the for go to we of really franchises to an having to I past brand associates how within becomes link at probably have the strategy we -- heat apparel market, on the the X really done of evangelistic and able to with brand think and product the being muscle general, consumer kind the focusing the Stephanie in

fantastic fall something that fact time out for but Curry we're XX focused the are that's really The right we're that important. with now. to it's franchises but be where this franchise well we're those So takes really is focused. coming going It on as

Poser Samuel next Trading. Williams the Our from question line comes of of

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experience to each value Marriott marketing distinct proposition. make distinct Lance ago pull value great going role. his a able in like minute into and touched So the you on know what is. franchise do very the from products, to remarks, being franchise International this this really He's really, that with

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X really, and and those franchises that he's digital, hit the I'm weeks but really building us, for So started. and he out running marketing He's those already ground beyond. brands only absolutely, in thrilled

more Jim So at couldn't us. with be thrilled

getting what mean, I with of are and the looking lot to points going a some set with you you've doing -- the the allocations you're getting you this in of in then an athletes order on thought for sort with talked activity grow then business the to getting then, distribution versus year, were noticed Can your doing control grow little sort not -- the teams about and you're of base -- a business, U.S. well. of more And of I've is orders you are part to you sort what's basketball school stabilized grassroots U.S. narrow in the of of the and U.S. stuff half? it? a And lastly, to as HBCU bit narrow it own in you your done back wholesale athletes HBCU about big high large but [ph] stuff you with talk some

Yes.

question start our the the of first me part U.S. with about Let business.

have have to much but business. segmentation. we strategy, to I of an grow to end disciplined meaning and want consistent strong a we think be want We base about we really more $X billion continue

out sell more And of disciplined. and part again, as we and the to product. more where we, be more that's to continue of going our product we're -- better that build pyramid, So product

product build going pyramid. base. channels, of of the about be higher lower the end we're to business We're what continue very up very, end part going percentage So to grow to ends always our in mindful continue to our

example, versus Atlanta of we talked Curry my through critical. sports on camp is basketball sport the hitting have camp Dame solid we we the connecting remarks up we're in doing I really grassroots just going about would And The do and that's our with as team heart coming out of Camp XX-year really, and about a mentioned lot XX UA at with is what up to large be spoke Elite in -- wrapped front. athletes an Notre continue big question, simultaneously the [indiscernible] grassroots are west. events, which athlete. in you doing terms team I prepared and HBCUs, Armour. XX-year-old example Under Next, well for to invest to these On at our there We're -- we that also team

our So, is approach I think twofold.

we're then to we're But focus going Jordan on at big to going It that and also athletes [ph] Curry of to teams just Notre few. is a like big Navy Spieth course, and Dame Jefferson Steph -- on focus and like youth effort. Justin store and name grassroot athletes

excited super about I'm that. So

But the add Dave, on to front? U.S. business anything

the of mean style And bit it we're better all expansion highlighted I expansion little opportunities best that No. fact should relative a well. those distribution I relative are that that we some sports know than there as our There's in with opportunities to pretty you've and premium other comfortable think I be categories. more well. mean women's. some fairly to the

it's that so a So in be be the it premium of well style more the are play that sports the it women's the And when of growth footwear on opportunities about in where premium is distribution I doing come and growth all and for the wholesale together. ride front, whether us about brand. for lot stronger whether some on pushing bigger on expansion for where focus or should you with think front our and more the in our U.S., for and will DTC think the that are along those the front the to more more of areas returning

take Boss from question now last Matthew of And JPMorgan. we'll our

along the elaborate the House, North maybe judge more X in how Stephanie, as progress sequential guess This brand Protect on pillars then North relative today. potential you to the I consider of challenging to way? you best time growth So can actions sustainable that America? the return we just to America backdrop to see line the of And the

Matt. Absolutely, Sure.

as the mentioned today a at we're our last in looking I've fiscal year really As year building 'XX call, for brand.

X-year not to pillars We for the take that need what but plan. to are company are time. overnight. to it's they PTH absolutely drive to X some going we certain They're growth a the going happen And are do

So into executives a we on XX-quarter we're Notre need terrific Dame, -- big had every focused here. signed game We've am UA I I quarter. every every stay X month, had think And every X start. some new quarter. really Rewards. -- to mentioned week, wins launched excited. making in first we quarter just the progress we We I

collab coming relaunch speed, We Curry. new front, flip didn't have a Justin mention things Stephen the really some coming with compression. have of on actually product I and exciting collab we Jefferson with

quarter after a first with in us have and you're quarter to lot So see quarter the wins. we wins of building going

focused the and very, these we lead most and being have But where then be very higher being example. to of focused product time, beyond start productivity, underscore ASPs, our on can't how 'XX push items 'XX year pillars etcetera. the on fiscal and which SKU an you We're are year a COGS enough driving as I we see fiscal going to profitability, With big while on improvement, year building growth happen.

So, to market growth return here on home the as in in quarter-by-quarter think Armour Under our we're I march we going to U.S.

And elaborate you just today, and in then the sportswear channel where for relative on on exactly Dave. inventory inventory as Could more the Great. just And quality your to months and of follow-up state the of touch well. we a so owned X maybe active stand? then composition ago,

Matt. Sure,

be We destocking and inventory retailers appear from getting healthier which the have good. seen is to levels their

into do seasons. future we So better feel going

do year. if means And they you necessarily about which see as little longer. think to I better. not And say expect thought environment as the around perspective, are remain the around that little cautious we would fast promotional end but holiday expect think But from bit I something getting so of balanced a coming bit we that generally sticking some calendar QX this Still that timing we're a more calendar towards of there inventory watching. we levels uncertainty but a obviously we of or

Relative to Under Armour's with we we where very comfortable owned what inventory sit, have. we feel and

inventory a year. against look base within normalizing have a turns, if healthy. product. beginning We generally the lean still and very higher of our we're at of see very warehouses. lot have aged don't growth We've inventory you But in that's you We been really with the of to and growth mix we're inventory, these healthy pack at why the inventory land the look where very expecting to hold a the be high year-over-year. you turnaround we at When that's still teens were to and strategy, able rates And the end you're start see decrease healthy. going of to year

making inventory buying as discounting this think and environment through moving year finish job the of our a balancing we're go next with sure promotional right I that So, the doing out and year. inventory we're good into and we

a we're So from I to go good as we here think forward. in spot work

Ladies participating. you. does conference. you this all gentlemen, and conclude today's Thank Thank for

great Have disconnect. now day. may You a

Thank you.

Thank you.