Qurate Retail (QRTEA) 6 Aug 212021 Q2 Earnings call transcript

Ladies and gentlemen, thank you for standing by. Welcome to the Qurate Retail Inc. 2021 Q2 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded, August 6. I would now like to turn the conference over to Courtnee Chun, Chief Portfolio Officer. ahead. go Please

Thank you.

of of like forward-looking includes the company obligation CFO, of and statements by due our press Qurate Qurate Retail statements Securities Qurate have recent Retail as on herein Reform on earnings Davis; speaking the and David would remind to any our that on in any the And XX-K be any adjusted to we On or Retail’s change CEO or in QVC preliminary Forms welcome OIBDA in conditions OIBDA, release are Retail GAAP earnings speak mentioned including constant Qurate is cash issued to and certain Qurate Litigation we contained margin, SEC. with adjusted or Schedules elect, everyone events required Rawlinson. in revisions we’d reflect will forward-looking in currency. risks any to through based. call, within Act Qurate or Greg call, X we Maffei. including a free CEO, Group today’s with call the number disseminate any and change flow definitions begin, earnings differ events, filed of forward-looking and which available on These Retail financial which date presentation, certain Jeff including expectations today this President Retail metrics, and Executive comparable can regarding we Private discuss note reconciliations, and our like results circumstances the non-GAAP measures, to updates of Information George; X the such disclaims with website. Chairman, Today, Mike along statement found call Before could or Actual any uncertainties thereto materially to those XXXX. XX-Q the statements this most only expressly meaning the undertaking regard

hand will call George. Mike I Now, the to over

constant Thank in and Therefore, morning comments results. include delivered rebound Thank select on good up customers to OIBDA currency growth for Compared of we will with XX% growth we provide year’s XXXX, anniversary and a played quarter, you context year-over-year best your us in everyone. growth. the as largely basis, Retail. and QxH, interest X% for OIBDA quarter the revenue Qurate of to Courtnee second increased X% in our our XX% apparel and performance joining respectively, to for important expected. top We metrics growth. we increased currency. started At a on you, return continued In strong pandemic-related to revenue our The today out and saw and accessories. constant last of X-year we

compared declined, OIBDA significantly it products the new elevated maintained account reactivated remains given While personal from customer initial declined, steep XXXX. the and strong of home comps but QVC International high-teens the XXXX. is and in from pandemic, stages up cleaning businesses. OIBDA food, part revenue with revenue Similarly, and of to QX with momentum revenue pandemic revenue record but OIBDA the Cornerstone we healthy of the Zulily delivered sustaining last the steepest performance and growth, as outstanding growth all from And curve, declined delivered and protection year. at we comped XXXX. its compared

experienced and base, even than better margin The expanded these strength across with strength that growth did distribution we our facing. the loyal also categories, further were we expansion and results and other pandemic content. more video retailers the inflationary are a The an our with and business anticipate product these now model. which business product at the not confirm to degree that While digital reach we P&L, expected, of pressures is level a with testament of extensive we OIBDA strong challenges largely we delivered when customer the results belief much quarter of fact shortages entered year-over-year across second and of multiple our are

poised towards media positioned and of online We the take for streaming, to for social trends video long-term growth, shopping, advantage all home. the are well things

I leader, of is a pivotal growth. to businesses, recently with track a of the next e-commerce accomplish historic played emerging our am segments assume with businesses. and and CEO together Qurate an And embrace companies Rawlinson data-driven prominent successor. experience wonderful and has this business Before and global impressive new President lead in our delighted what store next take in leader David August right joined and as as forward digital to role retail, two transformational on they our brands, models, and customer role and record wait team Grainger. welcome and of discuss my He David and each he and of of success, protecting inherits X. He is He write in can’t deep digital Grainger management with CEO-elect most deep company strengths. an see brings David helping to as chapter on Nielsen October digital outstanding us phase growth like transformation. will while I X broadcast I in will digital they the expertise,

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David. you, Thank

to are have the you absolutely on We team. thrilled

Turning X% now on provide to drivers. year-over-year details year Jeff X% QxH, revenue will declined OIBDA XXXX XXXX. X% grew grew from and and specific more X% the over declined and last from

our confidence the from Our five growth prospects I at will results takeaways long-term reinforce further quarter. important highlight QxH. in the

a higher These engagement results total average in growth by customer apparel in best from electronics, decline customers price. reflect home per and First, X.X% and in unit and up customer up and selling our point outstanding, frequency high declines purchase units products. price volume with beauty offset was offset certain by in XX%, double-digit accessories X%

we the Second, from peak pandemic. held new to customers the on much the gains of of in

XX% New have value but grew from And customers of in the XXXX, customers’ XXXX. that expected reported were versus prior lifetime calls declined indicators encouraging. we these early

year full behind retention rates report experience thrilled of the to us, slightly prior to are we are year. that the compared with Now, up their XX-month

agility measurement of same TV pandemic time, the total At are the up also they up across good home many up in with finally, with product were engagement prior our This both margins to years due featured able items sales Further, the of what across despite reflected air video than to apparel is Third, were minutes traditional expand of the full on we experience. viewed consumer X% viewership, base significantly, high sustained top erosion our of customer indicating have our team. in platforms, on for recovered growth pressures, strength of pandemic. and factoring have representing on financial accessories the And digital and stronger of business the fashion mix compared is Fourth, same across we was shortages. the the now balanced even where inflationary the and we sales categories XXXX. with segments growth than all that’s high and before model growth underlying start in to home larger stability currently portion don’t the underscoring the captured last video our tools. to more from year a and demand and viewership OIBDA the

category our now expanding extensions, apparel, has some lifestyle HSN Company as customers. at worked focus and best this with Belle and particularly QVC & to well Gravel. at through set strategy such the a Denim brands drivers, of five Naturals on in And Beach our Kim team top Looking the by

cosmetics While the into begin term accessories, beauty to positive declined apparel from color reinvest in TSV reallocated encouraged about airtime as we and last we year longer to slots rebound as we the see for we the outlook to beauty back are category. and quarter were beauty from and

results pleased category This tailwinds, masstige the and largely positive our hold our We efforts were business. largely from décor, are up over gourmet home, on than in with areas last and two beauty, from XX% XXXX from led X% space initial with XXXX more down home XX% and but about the in significant proprietary XX% impact. year-over-year on white XXXX. of we where culinary, social upside, year, demand versus up sales by stay-at-home was the versus particularly gains and encouraging strength excited our multicultural grew broader to to food In

curated work-from-home and when comparisons challenges events programming, the excitement to We decline early demand consumer gifting pandemic with last underscoring and and friends holidays ability ideas. continued experiences Consumer engaging highest We this the and our about results, products late stages through supply biggest virtual growth consumer create July relevant QX. our also experienced highlighting in in celebrating the for Christmas to initial the June family and schooling with chain outstanding needs. pent-up the following saw began electronics interest in strong was quarter, demand of difficult and year

flavor on categories. you supply give a multiple we now little me across Let pressures experiencing more are the

the backup of deliveries, containers in bring and experienced Asia late to and factory in Coast despite West the shortage to Vietnam ports shutdowns deliveries late of contributing from India that like with at our inventory early. the coupled continued a severe COVID are substantial efforts areas First, cases, surge ocean

impacted available focuses for items a a handful items a we uniquely their of on business when day, key As date. air that are aren’t

nearly in issues. TSVs example, of the our For were impacted supply quarter XX% by

Our adjusting programming in our calendars teams continuously are response.

unable sufficient coupled high provide Second, offer in or that we electronics and with cases, compelling product to on of get a chip many to key unable and certain shortages, means the offer demand either are shortages, items day. for home products, quantities industry

Third, growth enjoying inventory. and our sell-throughs apparel in apparel, record the summer and we are spring drained high sell-outs,

we As a apparel on see ran June result, as hot products. pressure of out did sales we

diligently with working fresh are by merchandise We September. to fall get stocked

offset partially cost pressures, We took markets. particularly seeing a customer pressures. for QX the increases at we and We these service across wage center freight fulfillment price in in inbound modest our also start many categories of providing and to are and are members record outbound team increase

which OIBDA Moving on revenue growth, International, was year strong customer was count up revenue down last substantially in and year-over-year to and to and QVC generated sustained compared up XXXX. against while category momentum every

in of a our at We that German earlier an are geographic international are lesser and enjoying of diversification benefits strong, penetration. development the cord-cutting impact stage still from particularly Japan businesses businesses with and and market

Additionally, the five presentation, we similar as impacts as cost and QxH not International. while U.S., Slide for supply are significant. highlight pressures the our priorities the of are we On strategic and facing QVC in XX

which me on a achievements, key innovation. speak share Let focus to few our

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one collaborative launched allows we As shopping a for destination video we the a in discovery, be strive another to share digital true reviews, and app UK message environment. Qurio in supportive a social users The new to and new in daily discover new May. products called app

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to stages, initial smaller in Qurio our terrific is of is a international example as is the highly for encouraging. While innovation. test early engagement ability beds leverage our It markets

is analytics a and across range now scale markets. optimize and datasets Europe, machine and advanced also then focus In utilizing build to we Our to internal analyze of deploy are decisions. external pricing learning to

of want of a of analytic share scaling and and our to and our uses XXXX platforms capabilities line followed category lines the our And such is in as our production size-inclusive to products highlight with create proprietary value in team. journals in Candace’s storytelling better out Cameron businesswoman, community. priority, and as introduced more loungewear. passionate curation April, in products flannels, examples in we inspirational It’s Actress our customer personalized of compelling these decor. set. special central of beauty, fashion development staples advanced We such and expansion to home colorful two QVC as and QVC power new I collaboration strategic started and encompasses skill our additional women’s are capabilities, that part the efforts with jeans, at comfortable building to dresses by design engage and Curating experiences tees, Bure, Candace exclusive

our brands introduced new at in and it performed QVC launched the Jason with QX, ranking well believe line extending growth new a tools, also apparel and November, top at of award-winning a including fashion be fashion achievement brands And in team QVC. culinary, QVC. It we only was the so to love remarkable The kitchen line apparel significant the the brands potential. exclusive designer, quarter, line in top we the was development and we in cookie. in cookware by his design is Last the given Although product fall, global XX one will developed in offerings April, Wu. XX hold Jason’s and proprietary of the

challenges corresponding XXXX, and now XXXX on quarter, proprietary iOS versus of changes OIBDA in Facebook. influencer increase with extraordinary revenue and in was resulted and of but to in – success Facebook supply high more of customer have Moving marketing but factory affiliate to channels Zulily market part on Zulily’s sales. featuring XXXX, to for constraints. its created diversify The continued and to ways privacy with both progress the offerings Zulily, our business, grew marketers, marketing all pressures concentration the and spend find by values. the direct marketing notable cost in Zulily through declined a continues and pressures is working expansion from and strong respectively X% and reducing driven impacted but effective by acquisition actively marketing grew meaningful further make dependence, Facebook XX% new In in

many conservative able Additionally, to for not Zulily receipt reflection being height the national a plans of XXXX during with the faced brands of provide pandemic. largely adopted brands events, the key inventory challenges top-tier sufficient in

of a delivered about limited again these XXXX few at had by team events a At on high marketing, cost rebounded national long-term face Cornerstone’s we digital growth We driven benefit is to of strategies allocate and store from will key rebound with QX four each targeting apparel We and to against delivering businesses. remain remain segment. to moms at record summary, QX the positioned in print expand terrific with very this are rest of growth growth moderate prospects. continued catalogs well Cornerstone, the long-term bar continues a scaled, expand retail OIBDA with believe we the brand to its off-price the to delighted halo As supported home outstanding of network. once supply well on the potential of surgically one executing pressures. Hill. focused and home vendors agility our assortments, pure-plays, lost the year, This macro our trend inventory revenue It as in and profitable through challenges and results, Zulily year many and performance a as from proprietary strength as of and eCommerce comparisons results Garnet Zulily’s nesting In across be as in by the bullish number confident categories to we sales our shifting result.

We These to value continue put and differentiators, continue are digital to and pandemic delivering highly post in already top cash make shareholders. progress extensive expanding evolving shoppers. differentiated are and our a we our and of loyal video customer return our and great experiences ecosystem, base position strong on flow, to to win bottom us strong line growth clear building

remarkable time, resilience, close, to presented XX,XXX dedication, so last the to has the world. that, remarkable family, and take all friends, a customers work for caring, to team pandemic. the despite by our I their XX At in such past in remarkable passionate X.X alongside than never years call to same my caring It teammates. members Jeff turn the They been people, great more our obstacles the like I’d the serving I’ll these demonstrated thank agility moment As With over our review dedicated to more detail. their privilege over years. results around their

XXXX and growth everyone. and Mike, Retail results. on Qurate revenue delivered morning, good of you, Thank OIBDA compelling top

during me by This Let and decor. in accessories, decline year, beauty rebound driven was best strong initial for and demand and to X% of apparel our pandemic. by QxH. stages the customers with compared electronics, start subcategories home growth declined offset partially versus consumer Revenue certain the a in last home continued reflecting robust

spend These the in product and per units by lower said, shift. XXXX. our customer purchase mix offset were reflecting As gains more more Mike ASP, customers than

units. X% This XXXX due penetration. existing customer and customers X%, up QVC’s or customers in pleased custom report XX They billion make cohorts a and expected, across declined basis their is XXXX, the I’m shifts. nicely an in decrease increased total mix eCommerce to by well down XX% point up purchasing largely year, erosion and customers declined in more XX reactivated up and down revenue all versus XX%, X% new with in compared X% up with customers to purchases to best category were to performed X% new quarter. customers that counts X%. As of X%. and $X.X up When quarter primarily spend the Total down reactivated XX% more with existing total XX%,

on As our experienced in earnings we a and XX% apparel accessories category respectively, brands best and strength in electronics, illustrated Slide of broad-based and from primarily with were into presentation, grew the and apparel apparel top our which across offset declines more X mix These continued swing handbags. home. beauty in and XX%, experienced and in accessories gains subcategories customers loungewear than XXXX. by Revenue driven were non-leather

merchandise. We reflected continued our by offset travel. the nice believe and to accessories. items, home represents growth Home was the subcategories, last rebound from the offset sales versus gains TSVs, reduction by a We demand reflecting look transition protection-related initial gardening which also decreased trends. year, work-from-home home. partially forward apparel in were was customers gains more continued pandemic. Beauty engine, expected in this skin care. furniture, a in hybrid reallocated in the consumers and year, bed driven The high softness category as performance outside saw decor luggage by that home and a most and and airtime home bath XX% major rugs, in demand personal and to for We in rebuilding reengage to X% longer declined reflecting as customer last partially pressure stages during of lower robust seasonal This term for products cleaning decor

a these decor Reflections, Vale own from demand lower our adjusted large We Our OIBDA business gains XX%, OIBDA exclusive customer school-related is Marigold, development including and It chain product and was design Par home nice proprietary key home electronics X-year a grew and X% XX percentage saw On brands team. down includes points. basis, Home with Adjusted margin basis Ultimate well Consumer several innovation. reflecting as and electronics of several X%. heavily created through constraints. of as products declined also for supply improved office Hill relationships.

new exiting and XX by bad due before basis debt and We engage well reflecting the expenses. marketing Inventory costs points, was strategic Looking expense anticipate to at as primarily as due favorable continued product were while our offset year-end. average offset retention SG&A obsolescence sales, due lower adjustment shift customer well customer gross on of elevated our tailwinds and mix selling and OIBDA the lower volume installment This due margin, a sourcing XX price, sales factors the provisions increased Product customers as the offered expense to Bad costs. service acquisition gains shipping our as spend. return favorable reflected by stores. lower fewer primarily customer centers fulfillment the obsolescence margin to points continuously primarily Operating favorable and platform higher sales increased reflects rates a expenses points partially from in administrative now payments basis offset and including decommissioned reopened was category debt base to components and operating, from and partially inventory a lower as outlet adjusted initiatives. marketing products. clearance and XX higher by and ramping of on-air was primarily was improved strong largely consumer basis higher operating expansion. monitoring to margin. TV margin grow freight were to elevated by costs These compared reduced mix fulfillment and to partially operations for were XXXX. unfavorable electronics commissions, surcharges down and investments labor These from we’re

current closely environment to increases we marketing are others acquisition. high less by are impacted While cost experiencing inflation organic and accordingly. customer due monitoring recently and I’d percentage adjust will of our than marketing more also channels, in note, we costs the

in are taken QX pressures to offset marketing, and labor early inflationary As increases in the freight price seeing Mike we costs. said, have we partially

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expected, total growth existing gains outsized These growth management. X% existing improved OIBDA declined and The up X%. margin our the customers. to reflects and basis XX% down XX%, E-commerce Compared new pricing up in and basis by increased customers generated quarter X%, higher with up by in X% As OIBDA last X% XX% Gross of were grew XX%, penetration QX and partially XXXX, business eCommerce total down points margin category, reflecting expanded which revenue year reactivated led every XX points. the XXX customers due Adjusted apparel reactivated points. versus XXX and X% and declines increased XXXX. product home. in primarily basis new with grew adjusted margins, offset to

for costs. and We driven customer expenses price reflecting leverage XX to penetration expenses SG&A points, basis and carriage service, administrative and primarily commissions determined was as in due an our operations. equity portfolio from our that partially fit contracts. is of for a favorable higher in sell points, accounted the expenses This also by due leverage to business China. evaluation higher that an by After financial were entered in have fulfillment agreement no strategic average approximately and in marketing sales approximately we interest of higher primarily results. market venture we eCommerce our XX retail venture by sales I’d our joint favorable investment basis selling by renegotiated benefited And the minority our in Operating favorable we longer lastly, to was leverage. joint international venture China, offset note sales internal

mentioned. to and in X% marketing grew steep only in by as year down swing up as on well recognition comparisons XXXX. year’s as higher XXXX. declined to business year, headwinds lower revenue OIBDA XX% comping our due international last a our from million that tax product year-over-year, originally supply over reflects freight accrual $XX direct direct last including XX% versus X-year the X% of we’re surcharges down fulfillment QX customers, acquisition. time of the new growth partially normalize travel decreased Zulily, Adjusted as but recorded offset will were This well was XX% factory were basis. a from the marketing business. X% a factory primarily but surcharges expenses, which customers believe rates Total and $XX sizable for constraints margins, and resumes. continued in sales Mike to Moving its declined as reduction at reflecting last These of We time the million Revenue

and to outstanding which in results Revenue with expanded brands. by freight marketing category. were furnishings and of gains again once adjusted of These and offset Cornerstone, the revenue sustained Brands, of strength apparel product Grandin driven Hill by second partially XX% each growth record leverage interior also and grew higher decor, to quarter due surcharge. Home Moving and and by home textile. at and Frontgate, increased OIBDA its Road administrative solid Designs generated expenses. Garnet outdoor its home momentum Ballard Adjusted OIBDA on delivered a $XX margins and core primarily million,

balance of was sheet first $XXX and our Turning flow, to million XXXX. half for the cash CapEx

as the first and spent This Recall, a earlier. million working in to we flow of and nearly million strategic in of our cash in this same of receivable cash our this half year. now the XX% on offered our working capital base range in we year, which half return TV free back sourcing, of the accounts increased the reduced to contract, reflects level normalized distribution accounts of installment elevated substantial of generated conversion all capital payments, payable. multiyear items first XXXX. bonuses and on planned mentioned source incentive Free $XXX in of flow which contracts year flow which not expect Cash improvements a is we more are XX%. XXXX pulling for of expenditures TV carriage renewals These year. prior multiyear to payments period, will March During was our $XXX by serve

of of cash debt Inc. share our QVC capacity. returned We shareholders million X our ratio drawn We In July for $X.XX X authorization total we $XXX through $XX of and total million. increased increased $XX authorization and had our at cash QVC revolving million on XX, remaining facility pro authorization profile May X.X billion From defined leverage XX, June the X.Xx. credit our Common August, million and our approximately by repurchased repurchase repurchases. revolver to we is $XXX million cost the is million. by equivalents, forma Looking $XXX capital through as for of on was we shares a had and August

returning committed we substantial we call view our to annual previously of to shareholders to closing, Greg In long-term now are as free that portion cash I over prospects. reiterate for I’ll the these results closing of turn As flow stated, remarks. encouraging an growth basis. highly will on our And

Jeff. Thanks,

to We meeting that are held be will XX. virtually November Qurate Retail’s on Friday, Investor excited announce

a Qurate for have soon. will of members various the details of forward We being team. save additional leadership full morning and look Please that from date content provided

portfolio we look thank leaves Mike. continued I’d Before turning listening digital for has I’d team questions. as David the been to welcoming together. this your leadership personally earnings both since for Qurate interest the in for like on an Thank successfully Q&A, a Qurate Retail. ago. has will linear Mike its thank footing, our you who now miss transformed call partner He We evolutions surely attractive Retail audience a company drive TV from our And sound and Qurate a the of started of you, single multiplatform I roles our to And his strong call we chapter to like we as Operator? open need This Retail to working nearly next Mike last innovation. shepherded George. into is assets. through Mike’s to forward into and business CEO. exceptional XX years to recognize numerous business on

Instructions] you. So Please Thank take ahead. [Operator go Yruma we now first from question our will at Edward KeyBanc.

time. stimulate first, how you that was advertising have may guess you’ve remain Hey, over wait guess, term, that an compelling thanks adviser it more all seems viewership. was for things two-parter good more time David, your or both of me. two you. Thank morning. as of you on candidate relates external external hear the for for A congratulations can as looking to guess more the or Mike, But I in seat. then years. it an the the thoughts to end And a what will couple had a you I medium the commentary, front and on challenging to and help most one any growth opportunity? period these assuming that challenges for we on the as I retirement long-term of try over like inward

your appreciate I Ed. Thanks, comments.

first, it’s viewership, across different As at look obviously to advertising important units. our we differentiate business and

mix in So a significant marketing because on marketing higher Zulily both dependence Facebook to challenges, side, more clearly, a paid and marketing has of the new higher customers on channels. it attract has its

diversifying progress the do think I that. we is on upside get costs to there as through meaningful in way its is But some anniversary and work sort team to of and I marketing So well makes near-term this think our is advertising channels. substantial there blip

the That’s side. on the actually viewership side on Facebook up in just the last that’s the I – viewership. on Viewership a quarter. main, we quite the quarter When of we’re up was TV pay encouraged front. business, QxH say would at this being look top traditional Zulily on So

sustainably And actually Comcast pressures years pay what why cutting we’re that’s in. to excited any been about that many from with on so you the the all investing our then platforms despite digital that for think come eliminate So services. news that, traditional news cutting, doing over we’re one few the media of the is represents. because And Comcast about viewership. these cord we’re cord folks is goal up expanding and We’ve

can TV service, – content, Comcast can our a But but you way, channels cutter if our streaming get incremental all Comcast, the old-fashioned you all demand. through frictionless, of cord you’re broadband just and on-demand you in the the the you you traditional them streaming content. full get think your pay now linear the channels, great we stimulate also all get a power through service that a use access, for rich of also service If can access can

see they or so TV not a TV-like flagship, as on present we’re of And view platform that’s where content, the be what can service. streaming whether have We every investment our number in folks that’s over And got viewership viewing service powerful. going. continued the think And video of to apps. we’ve continue time. ways social you and a that, add just our then own to media, to on We stimulate

gains say we side, we marketing team the impactful tool in to use. But to of complement QxH nice the channels On less are all forms set, other make viewership. fortunate marketing It’s marketing that continues to our that is the I in general. these would a

incremental platforms, in will elevated So, into viewership And quite right us to way both but on necessarily make and digital what we platforms you a in will we it where what also is people to any the of see to you QxH increasingly David, not to lean a through continue our at do to drive stimulate dollars marketing we people very marketing, you rate moment, viewership these comments this where saw into sales you drive because unique beyond get to are Qurate? seeing that’s at continue distinctive moving offering. new to all these are a on want lean

I Yes, days at I market were come. have all a communities in more and to things lot moment think the a to this the that say love this are will But we to. exciting. and community where the to I about dynamic would is main

cusp everybody of are shifts. of think lot recognizes we the a I on

to saw terms compete more the consumer I But investments capabilities, a capabilities the Qurate, over pivot lean I customers very the accelerate started and growing be both and ability the of of going, I streaming-based behavior in core think into and really continue changes And time. to changes, core to and new. unique post-pandemic with time. the And core what Mike, in just and that’s some to where are the business I positioned pre-pandemic the those of well to the and Some really assets accelerated. you world. that think, assets combine in going was win that core over pivot. think, is market is market been digital, talent, of change, business But more those made across with were

you. Thank

Thank you.

ahead. next Please comes America. of go Jason our Bank from Haas question So, at

Thank also congratulations, I quarter, both my taking Mike questions. Congratulations and Good my for on strong and you offer David. morning. wanted the to

further Do country enough you, to of just starting I And what room any it’s further. am fashion maybe the But like strong and encouraging to and seeing tough seeing you in Mike, there rates think July potential cash offset that? you feel with for about also to the sort the more home in if continues compares, reopens you what So than you is moderation rebound the retention see just rebound? expect decline, as are fashion curious offset rebound to and on do is in home.

that for the little your on rates next encouraging growth still we great of working bit athletic exactly, how really results. in-period to see really things Delta as specific a What influence, most But over narrow to apparel, little kind was well we thinking what I seeing of months. encouraged, where is about frame about question. and that tailored still and a definitely a QX X-year I struck still meaning number We the out or the fashion and to the going it’s apparel variant is office. actually casual on it, in that any rebound were was the deliver obviously, strong don’t won’t and to in while by in the the pandemic situation try shoes, that and consumer about are how were able rebound you know of categories seeing dresses, footwear Jason, casual play leather July. are said, out going that will largely we behavior early But clothing, We few handbags it me to will are are quarter. for Thanks, retention both rebound. not those comment we in in make comments footwear, the accessories acknowledging

and is accessories. So there see. back for consumers that of or let’s in kind and want what to the is still lot to that they evolve, to there a the months accessories and accessories. widen end things Add of year, room their happens next were But a on next the that, Whether quarter. in to of as the lot appetite in to apparel few apparel of purchase claw business still how stock by me, go depending room limited we in apparel

like equipment, later in what again, home, to back home get excited that’s was are a by few and be. we we to stock But in Then us. So, by September, meaningful weeks sustained struck we think would than I were And home X-year in for the those categories. drove pleased we is slight that kinds X-year home that at decor see protective actually personal of the in negative fitness. areas growth really like and things to in cleaning, are

when growth So, business of areas growth growth. that it seen see and course, multiyear And decor our nesting in us on to this just has trend growth And fitness, encouraging. says that’s is outstanding on pretty real. Cornerstone you like home

I they remarkable XX% a pretty versus number. think XXXX, up are

fashion over you quarter. the which beauty, a in to to in like and But where would was the optionality we then quarter, the the that actually see course started So, can point of But you color slowdown would go. return the I And come it working now back. get me will beauty which haven’t cylinders, we That all with nice of back. some That some that to when upside point, at may captured. on masking. decliner

dealing of mid-term. be tapped as of over are with growth. QX, But growth won’t for of whether is or across accessories, we consumer the that’s so portend It wildcard a QX. a yet to I engines supply volatile. frame think try shortages, and fully optionality beauty business think just segments home lot QX the I there we is says, to And well multiple apparel, really the electronics just

then Got for talked flat being the helpful it. likely really Jeff, QxH about on year. for margins you a That’s the of last question And color. the remainder call,

if that called cost I still holds. know curious outlook you pressures. more am fulfillment I So, out some

the that’s about? framework curious still think if just to So, right

basis point stand pressures the XX after the in early still mentioned quarter that also QX. freight we you that, months you taking a the where had of we for can, as with around We we in price improvement, are margin. flat Jason, end mentioned the just relatively OIBDA at expressed really are that’s really in by the And outlook and heightened as last saw taking was nine appropriate. recognize here labor. we year. Mike we posting mitigate of and some And Yes, where acknowledge being that outlook But also steps third some to had to QX experiencing that inflationary certain respect do our that

last for Greg. Thanks. And question add I more if one could

Just allocation. on capital

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the for Thanks Great. question.

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you very Thank those taking it. questions. Got for much

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Wintermantel Our comes next ISI. at go Please ahead. Evercore Oliver from question

David. and morning. congratulations, And Mike, welcome, also Good Thanks.

before how now the purchase few much That spend? the change those customers customers the frequency? have about behaved Maybe the – and big Looking forward behavior maybe bit can regarding best did with the your pandemic, you us a of and a a of there of How during working last you question best more customers. to months? Is detail thing. best these have behavior give pandemic in maybe I kind you. little of

the Yes, for changed. tell question. changed what’s you Oliver, and what will I hasn’t thanks

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added was a So, number percentage who customers over new quite the month, of year, given within new the a we graduate X the quite of continuing the new years we is best number within the within customers customers best And status last be added customer solid. high. year, of to therefore,

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apparel really that fact is to still but the somewhat fuel that in accessories challenged, the lean trends, and And is are she helped narrow that and home these mentioned she the to home I again, so for nesting reflects that’s Jason. still somewhat is all apparel now continuing the really and into back quarter. as to that and but And market accessories despite beauty

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the of Thanks. in saw speaking were Very stocks. were up helpful. out than And and of they challenges but inventories. was question on the next more I quarter, you up sales actually

inflation so expect rest of that year? a play the just was And how you So, that function for of is the to much? that out up do

one? do want take Jeff, that you to

experiencing. other the we Oliver, than it’s a portion try earlier delays, have the take Starting preparation been are honestly, QX once result get is some holiday. we some And the combination have and more time have in of things. this, we challenges we some and of receipts for again, and past, normally Absolutely. in of these product a chain transit quite than to we would of that to supply as One, in of at this the for of what year. of ahead had

for ahead we the So, higher out coverage to in where certain forward. combination restock as transit of the end as areas levels us as move well we getting can

Got much good luck. Thanks it. very and

Thank you.

at William last Brewster now Please from take Sullimar will our question go Capital Group. We ahead.

XX thanks done months. last past all have and and guys. really going? the over is XX Hi over How months retirement, the enjoy you hope it Mike, especially I you for

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might impact category. spend. So, it from certainly high her big a not doesn’t on you most not margin miss out But that the incremental strategic her, have on purchase electronics category, but the

all are you say not to Beauty which going in bad for one one be you see to category ready uptick most largely, us. for accessories. choice across to beauty. part basically mentioned, I wobble slots if is classes own softness from did somewhere, is to so. apparel a The it self-inflicted, just deliberately reflection beauty moving have and We finite that’s a is our a would customer highly that but – that and it’s it. largely place important was and is in did So, TSV the strategic have it a accessories airtime was We not a make of by apparel our beauty.

was airtime of amount the was devoted we that, of to we the TSV dimensionalize to down to devoted slots The in XX%. quarter So, beauty beauty down XX%. amount

in that move and we saw. grow almost start the feed best to I was at to we could do pleased pace the was make business come debate to the not. choice I context. various And thought opportunities the So, think along start returns. We at whether time that’s is back. We we back quarter. we it the it come wildcard that impossible It’s that one pressures late said really the to see now given to meaningful. right in or see have But beauty which again. were that the color all as will

if see other Delta. as in just we with a that Let’s the such segments well. push continues But making are big

at a space. a multicultural mentioned I new couple my in are that but launches beauty number comments, of excited about in we So,

into trying in like more sort meaningful on-air beauty go a so are in, but offering, between We space to areas about more heavily way price nail and in are point really a at for hard. it’s than care, It’s in drugstore leaning us. care, digital tap on excited premium an of that an really hair that we offering Masts

our expanded with relationship really premier Lauder. like have Estée We brands

and Lauder coming Bumble to the assortment. Bumble face Aveta up, quite Bumble in of have and we the last new pretty launched So, and/or handful Aveta, months Estée Mac, Bumble Linie to being and

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the a lot up have going that’s help your teed And we you one, that are and lean finger we one. through next the could – months. think I on to results several put that that really those most it, into important

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So, like that going maybe uptick. here? we Is should assessment fair more thing, an a of a beauty and airtime what’s good be on to will see

assessment. fair very a it’s think I

Mike. Thanks Take Okay. care.

Thank believe last you. I I appreciate our was question. it. And that

November. the the all over your a your me all valued been you thanks It’s partnership in of for last to and again, thanks check XX and I greatly have for Day time. And journey the of you out with years, Definitely Investor your wonderful friendship. So years. for partnership

everyone. thanks, So

your you for call. participation. today’s concludes Thank This

disconnect. now may You