Caleres (CAL) 21 Nov 172017 Q3 Earnings call transcript

Good afternoon. My name is Ian and I will be your conference operator today. At this time, I'd like to welcome, everyone, to the Third Quarter 2017 Caleres Earnings Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session [Operator Instructions]. you. Thank like call now to turn to would over the Ms. I Tharp. Reilly Peggy you begin. Ma'am, may

which I'm differ but SEC with Vice you Good Relations Reilly with in the the call filings Peggy on afternoon. for this Tharp, limited press A and press Please and no third XXXX release like and company's filings our statements, company various and and The available webcast. the for to Securities could today's a subject forward-looking financial President I'd available other to statements. factors both are reports be Commission. any more at uncertainties. undertakes Exchange slides in are call factors results caleres.com. information any and joining not Please factors to thank these other information impact tables Copies U.S. for are of refer aware, of which detailed to, risks quarter earnings our materially Form today's including, risk discussed and at and discussion disclosed risk online. Actual update Caleres may to contains Investor XX-K release due obligation to of factors, forward-looking time. number

the CEO, over call President, Officer; turn Ken and now to the Famous would President Rick Diane Footwear. are Joining call Diane Hannah, today to Sullivan, like Ausick, Chairman; Sullivan. and Chief Financial And I

at as including joining with Day, be Peggy August a report Thanks comp start a After and September, in start quarter. our back-to-school quarter were was These us Texas for in positive we cash down unseasonably we fluid by Florida. delivered gross more challenging, strong though what became revolver weekly Footwear, Labor the margin interrupted and improvement morning for borrowings. strong Even paying flow an October. generated by thanks events while out sales then very and results and turned to followed to progressively hurricanes good and Famous warm in

weather-related in events has a November, improved impact and had has more of to and of arrived negative quarter resulted topline per third as the share are sales accordingly. million performing weather business But However, earnings seasonal in approximately $XX sales $X.XX.

we of $X.XX. year our full result, $X.XX a are to guidance EPS adjusted As confirming

ahead With confident we the and fourth quarter the working short-term are us, efforts strategy our is initiatives. and focused term are still teams longer of right our that on

Now the X.X% back-to-school for the on up a Footwear few and selling up where specifics third sales X.X% in comp Famous season quarter. were for

in in-store As were comp the and both second quarter, online. up sales

styles. share a these in and first The quarter as mid We conversion the also year. brands driving this and XX% of rates an for to back-to-school of year, our anniversaried contributors of lead lifestyle of up big and we online. brands were improvement their to sales girl's significant sales sports in sales. growth another with sales up In double-digit respond double-digits, and quarter, key women's in-store athletic continue the the nearly sales the that maintained And In saw last again e-commerce total athletic single improvement. third nine consumers respectively, year represented made high were once particular, months

margin Women's not of single-digits side sandal X% were, in seasonal the sandals third the were improvement. surprisingly, significant delivered up business, and overall On our low quarter. up sales

positively. colder, begun end adjusted down at was as down for to discussed, XX% boots sales quarter, in have at weather mid-single-digits boot down inventory this As we the year-over-year sales flows were was Famous and Footwear. third quarter Obviously, one the quarter X% while position trend our as throughout Women's category the inventory and gotten the plan approximately third boot accordingly managed we a quarter. has sales challenging

was potential the this sales warm the headwind, weather the still boot the there unseasonably season. Even Brand the sales is decline While sales Portfolio in from year-over-year category Scholl's, in industry strategic the progress. impact XXXX excluding becomes boot X.X% all total to sales continued had continuing Edmonds, those was for sales I'm and the biggest Naturalizer our to The days Edmonds, holiday the show third as were demonstrates Naturalizer, planned significant. of promotional degradation execution start down the The increasingly to actual ahead us, Allen this this boots for improvement newest particularly high-teens. In reimagine brand. brand for margin the quarter, improvement Sales, remain if actually in to third of quarter. in sales fall. Sam comp down X.X%. Brand with to great up efforts boot more And in our related pleased this we portfolio, Portfolio were Allen due warm about successful of XX% this XX%, while with of Edelman, slower the delivered Dr. Vince

the forward the about with looks with direction this future. sharing details excited near and brand to very more in the you is taking are team We

our Portfolio the addition, XX% quarter results up to represented continue sales, growing third In and business from approximately sales in of focus e-commerce-related XXXX. deliver XX% in fiscal our on of Brand

But initiatives you As a over speed-to-market to to progress Brand we while strategy. like the on SG&A on have I'd made acquisition sales Famous consumer our margin, and update e-commerce-related our before quickly Portfolio gross sales I these turn Footwear with also higher carry Ken, at reminder, drive expense. higher things

Famous and in-season and to replenishment. align this Footwear. individuals remains as connected nearly At XX% our targeted total results and program, Footwear, structures number our charge from Year-to-date, in put trends of rapidly focusing react the make products share consumer retaining, rewards now consumer and to With of respond to acquiring, are more speed-to-market the to these is on and shifting increased now these high-value trends. up put our interest we the more in-season see had consumer more strategic to wallet each have members. to essentially XX% we in in on changes able is place, we driving with Our Famous we demand. by track our and Thanks to to read of individual efforts continue growing initiative react customers, with emotionally brand able consumers

rewards than X% membership up drive XX% our the this third reminder, quarter. in and program more a was As members in of approximately sales

While for the these vying are good recognize results, have we consumer realistic consumer many we're and against who [indiscernible] and view environment industries retail a competing categories of are that dollars. the other

to focused plan deliver we day-to-day maintain must have we to the control. consistently. place results and managing factors win, on remain ability people to under in We the execution and our the on confident drive believe in strategy, and right our So

again, times our we guidance, for yet many share as have X% are we which of calls So, maintaining to per XX%. before, adjusted improvement year-over-year earnings

degradation as the from potential more XXXX still it and important I of related and boot to earlier, And a the boot of promotional most on ahead our shortened us. we commented for could season, guidance. end now, likely turn I'll remain lower based However, biggest the Ken. But sales trend margin over days towards XXXX days the to

Diane you, good Thank and everyone. afternoon

hurricanes unseasonably net third and the of reflecting quarter, impact of XXXX, $X.XX versus quarter weather. warm $X.XX earnings third we Florida share to For the per the in delivered of the per related in earnings share and Texas the

quarter year, $XX impact despite million. net of consolidated were a the last of million, approximately third over for this topline year sales X.X% weather-related Our $XXX.X up

we For $XXX.X as and X.X% were from prior of up At the XX% million sales our included operated were third more timeframe. back-to-school year-over-year third quarter Famous million sales through million Allen XXXX of $XX.X over quarter stores up Brand sales versus Portfolio, Edmonds. $XXX.X Footwear, year of eight the

Famous at for sales X.X% store the comp Footwear our mentioned, were Diane quarter. As up

of Let's In XX.X% XX continue the profit, which quarter. third to turn points to year-over-year. strong improvement. delivering basis to in XXX consolidated gross for at third gross $XXX.X quarter, Brand consolidated the margin Gross drive basis contributions came margin, of our improved million Portfolio points

than organic the XX gross up more boot sales. points, margin including Our from lower basis impact mix was

For third points, gross margin primarily Famous XX.X% of was our the reflecting success of initiatives. Footwear, e-commerce XX up quarter basis

of since third orders represented Our been at Famous.com quarter. in-store buy doors the in pickup has online all and approximately program mid-June XX% available

Our quarter in or XX.X% nearly of of $XX million, million was SG&A total revenue expense including Edmonds. Allen the third $XXX from

third percent doors year-over-year, quarter Brand the additional and XX lead with eight in our portfolio also mentioned, close fulfillment leverage expense a the fewer we resulting basis assets. centers and X.X% year-over-year our in as as more our point in end. expense Famous At of operated SG&A increased investment more Edmonds, XX back-to-school, as expense nine distribution sales. anticipate expect reflecting ended by we an than investment doors through Portfolio year program SG&A in Allen was fourth I to and year-over-year up Excluding doors quarter primarily Footwear, increase We in

to I X.X%, XX delivered down X.X% were we earnings Our Famous to out point $XX.X higher Footwear that earlier. up points primarily consolidated million want expenses of margin discussed the operating of year-over-year, year-over-year. due do basis operating

Our amortization items, additional $XX XX the operation depreciation back-to-school year-over-year up center Allen among timeframe. and third addition was in expansion, million and quarter, other retail through XX%. the doors, the includes, and increase doors the the distribution Edmonds This Footwear its and of modernization at of Famous

for December nearly credit revolving the quarter acquisition to million, of $X reflecting facility Allen Edmonds XX% was the expense XXXX. up the second in our Our borrowings of net against interest finance year-over-year,

Capital in XX.X% and rate $XX.X were expenditures consolidated the XX.X% million the third quarter. tax Our ago. quarter corporate the periods third was versus in year same XX.X% XX.X% a year-to-date for and

For down year, year-over-year. the of $XX.X expenditures first million of $X.X were nine million the capital months

sheet equivalents million. turning we quarter Now with cash highlights, $XX.X of to our ended the and balance

operations quarter Our end continued at of outstanding third pay revolving this year. from down off amount were we with from of within flow revolver months facility last and XX of pay expect the Edmonds million, borrowings acquisition. we've million XXXX, Throughout our credit down Allen cash the completely the $XX to end at to $XXX the

X.X% store X.X% basis. $XXX.X at XX% dollar was Edmonds. position Our inventory we the per quarter end on Footwear, pair ended year-over-year with a quarter At up up Allen on a consolidated including basis Famous up per inventory and store million,

our up the cash excluding to at our a our primarily see a Edmonds continue brands. related while Sam in and Portfolio, to Allen Naturalizer flow, down In in For strong gross Edelman was financial continuing maintain our borrowings Brand investments quarter, inventory more Edmonds we and pay XX.X% challenging acquisition. progressively Allen flexibility, revolver growth to and margin, third reflecting generate improvement

and expense doors in part facilities open margin the $X.XX, single-digits; of up that, I'd It's with $X.X billion sales, we related I'd the the of in Before and like XX as Footwear rate billion; Q&A, to XX as integration, year; low at of guidance. excluding the up the back-to-school through reorganization sales including XX of through Edmonds Allen to points, reflecting SG&A XX% due points XX%; of mentioned, Edmonds; $X.XX the a Allen timeframe; shares to XX back months strong higher to first to teens, percent earnings improvement kept the retail first up nine gross $X.XX tax in costs as we half high of And basis the call operator to expense, more of Brand sales Famous basis consist Famous review over our questions. for the at adjusted comp the fiscal the segment net Diane to per of between consolidated acquisition. and year begin sales diluted between effective $X.X like Portfolio turn net to Footwear and and XXXX for acquisition,

line Buckingham question Research from of Krasik from open. [Operator is Instructions] first Our your the is Group. Scott, line Scott

sorry Had are mute Hi, Hey on. about how you? guys, that. the

Hello are you? how Scott,

Good. Thanks.

Famous, you was impact hurricane if can exactly you just $XX down comp that what what impact million, on parse first to the just Famous? the So, break

kind of, it it's cover to, and then down. Yes, Scott, break total, for probably in it easiest me

$X we'd more Famous. in for little say to that total roughly half a was of be hurricane So, would than million impact attributed and Caleres, the

Okay.

you alluded to When incremental athletic? being the your fashion that fashion Okay, view to retailers. about driver. think the of some and fashion, category athletic Famous as do affect heard bottoms biggest now changes you -- to in particular, that that's from We've helpful. various athletic results cannibalistic would starts And or you the in then also fashion

stab a can Rick take that at I'll Well, fill in. and

low-single athletic I that that think when women's, the the up piece single-digits a high in fashion athletics, business while our now. this up includes in In And quarter, we athletic we been and high look our for at again, and third kids we look in third up quite at business single-digits. quarter. were we've men's on and

think product. So, still that great in we're we based the extraordinarily on that of through powering really team merchant the assortment is decisions well making the

slowing at that soon. see time don't we So, any down

a don't see feel But characterize athletic, Rick, side. little on we the has we it. I more those slowdown -- a runway gone think Kansas I in that little it? would how the space the you bit more would fashion be know, they're

pretty well. Yes, I it think Diane said

looking few athleisure things XX but casual the nonathletic nothing always to that we're sports-style the business I see for is would And there. side think opportunities there's been over things a trend there's at are been if the seeing that that of I say on last we've that XX, from look promising, that there's taking months. footwear

Okay. And on some then, around not you leading Christmas. of promotion up boot that the tend sort of things in Rick, these participate go and to Black to Friday extreme

Caleres -- wondering was the there? So, that maybe strategy -- or branded you of business? based the the in a I'm just change on is made there more on on comment side

we If we from number marketing might we maybe plans see with Rick? our fundamentally, are impact way Brand our on and branded that on it. on more retailers marketplace philosophy the -- run we've about for Famous, fourth Scott, other more that a the have and really for consistent Portfolio it's set side. quarter. changes to the of our at They years. business. I promotional respond our our mean, and pretty Well, But really business have the significantly, it's the to

read we've think, I the been consistent. mean, Scott, I pretty Yes, very much selling.

actions. We plans the roll sell at will we not rates sell. on want, many how on the tells see sale, customer price If of weekly we prices a basis. don't, we we we want or us let have to whether until we price declining look how that much If

times. it's been -- us. hard on work it So, at merchants for successful day, of week, these every The almost every kind at

still that think it's there's know done sure in yet one won't get us going are I tells I boots fact, this there we we people in holiday one soft. that -- do buy free there some be that that out that run was I'm when in So, people who don't are But extremely to anything already thought haven't have business they places October, the promotional. either. and

Good.

just, Portfolio And what you ex-Allen Edmonds? missed Ken, said margin say you it. then was gross it, Okay. your Did if I Brand

basis points. Yes, XX it was up

Thanksgiving. All perfect. Okay, thanks everyone. right, Happy Good luck.

Scott. Thanks

Scott. Thanks

And our the line Laurent from next question of Macquarie. from Vasilescu is

Thank guys. you. Good afternoon

Hi Laurent.

comment, $XX the was warm to Based way does understand Hey million wanted question, October? million. -- about impact there. $XX I in on mean about ask that we the the weather to Scott's that that should there the a Is to comment?

the on around third down down say and Brand Famous rest right? boots Portfolio, Well, women's, about Portfolio, of is down Footwear, Really women's. We against year, I Brand the had would about in down impact. million on I -- in the would It's think $XX really business. million as million. quarter, million on there was the that we'd clear. the $XX sure terms in last we're last boots mentioned, about So, to boot against we an we about make planned be and $XX again be and would for $XX about year, way our of $X Famous, total at at million say Against on

and So, still you $XX because in of kind shake for million what boots the that look our Laurent be somewhere all the it, be we impact it about of that hurricane the our -- sales. and against would be, total million in would you net plan up, the impact there think range would $X the at

fourth in helpful. for Can mentioned big were quarter how for quarter the think just possibly the right the [ph]? remind third you you boots I'm business But that boots math Okay, And [SG&A] and the is down that's very doing XX%. now. then I us

less XX% the quarter business. quarter Famous, quarter of It's XX% business. about fourth third the the fourth than At it's to of of -- XX% XX%

Okay. And then shifting gears to Naturalizer.

were there in I mentioned think you still progress that -- some some business.

Yes.

think to -- foreseeable can should but more continuing next or bit a you business be business up the on year, provide future? specifics little for spring we Any for not color context, about

how NPD performed. to market X.X%. it. really down was it the the we were and up was that mean, to about Yes, the According about look feel mid-single-digits saying you the at terrific market quarter they I data, in low

the -- nicely. So, on and quite outperforming were market we that brand,

it bit continue expect to make it think quite lots runway we has So, fully of progress. really of and a

helpful. Okay, last then And question.

up you some I for traffic Any think last quarter? metrics Famous.com. those context was quarter X.X%, mentioned bricks-and-mortar around versus updates the on third

are We looking. Hold on.

the down third quarter. Yes, both traffic was in think, Famous.com, and brick-and-mortar I at

Okay. Any context that? to

the back gain can because trying been how very I biggest for you'll dotcom, the margin which see, and some is to the has understand year part for expensive us business that on fulfill. in most we think to of change strategy it's our of run Well, that was

we shop -- So, the a calendar little the find third hard. the where, a differently managed it promotional customer through that's when go quarter. promotional, we place in our customers And and really it

a of have quite lost didn't on that we a we third -- repeat been So, promotional were handful in this days highly that of the quarter of bit couple traffic year.

and up there conversion Yes, double-digit was AURs were the up.

think bit I script out about margin the tried Famous. a we in the little to improvement So, at call

So quarter. points were boots, we and about in up despite basis what team in Rick the talked XX

that And communicating gross so margin haven't in are year-over-year. seen retailers their increases I many

saw one shift e-com that a off the So, it additional initiatives as profitability. pay made strategic that team was we of -- and in their certainly and

you. luck. Thank Okay. of And best

Thanks.

Laurent. Thanks

of next Marotta question line King is from our Associates. from & And CL the Steve

Good evening everybody

Hey Steve.

Hey Steve.

give you they -- Can third what August, on a don't of little a you monthly that quarter low give comps, was bit said October. were? give comp guidance September you the Reiterate monthly little but the weaker, know through single-digit. I you I so just believe sequentially -- Can and bit mid-single-digit,

slightly problem, no and single-digits down low Sure. September and up Yes, sure, October.

to-date? November is what running And Okay.

in running the up. mid-single-digits, It's

year expected for facilities gross get and I you mentioned more that the wrong? deeper believe the margin, retail a did at Is improvement accurate bit then did little of some an year? opened I that SG&A the from gross why than most margin a expectations And standpoint? or and changed better of end in

XX Yes, up around we XX our running had and guidance points of margin, ahead to had originally been that. basis we've for

updated then and XX in go went of on could Famous our we ahead for and month-to-month basis number decision for and we conscious to closings, And promotional that leases. leases were left estate nature And occur. a communicating points we able real the self were go ahead so we a the as made and room to of that renegotiating

And those held so open back-to-school the we through stores timeframe.

So, you've and been up being on stores through And holding X.X% the a X.X%, that's basis, of they -- in team Rick total. to X.X% addition were in got comp back-to-school. where we up those benefit store

was SG&A additional So, was there incurred. expense that

we updated as ahead and SG&A well. So, the went guidance

B, Great. renewals lease Last lease in shortened you been either, talk renewals there's rent Or any relief? signed Can question A, if lives on year-to-date. is been that have the material about

seen haven't Yes, lives. we really lease shortened

five typically, think, years. I our leases are

do so thing we and notice would would to going month-to-month revenue. you as like landlord close that the or going only and And we've that. sales paying we'll something store is shortened the given gross that back be And were of through a we were of well, that said, XX%, came were XX%, renewing, go where we're XX% X% and and rents

have month-to-month. have and we So, given five-year of a typical come went shortening landlords to us back reductions from not to would renewing our order going And the some where in and seen renew. only term to yes, be that we number

That's helpful. Thank you. Terrific.

[Operator line Svezia of question from Instructions] Chris Our the from is Wedbush. next

XX.X% about million questions. just for give the I'm because $XX of I've have first, guess, Thanks from I that everyone. this when an quarter. got look perspective, afternoon lost any quarter? you curious, my taking you Ken, a them. growth you sales is color, Good what weather-related, would earning's can of in what had the you the at in bunch

is I do earlier, And about we what what had is to the of conversation year-over-year. quantify we when bit a impact to we what Well, think to Diane this, planned. talk alluded we've that little added try

when look we at reduction, we at a So, When and I $X.XX talk pure that year sales boots look reduction year-over-year. what mean, expectations the $X.XX in when and year-over-year go categories about we down, last this we boot in year, then alluding talk that's of we in was were that's women's around, XX%. about Diane were I to most think, had that category, the plans what our

X%. Rick, think planned down was I all-in,

you we our period look -- the and go to results. So, that didn't when in were believing going into full that that capture million at we $XX QX

is is weather's the as and million little associated that's the impact So, and think with, boots. I the unseasonably impact believe we $XX what weather -- a a year-over-year is the bit to there also, nuance warm on that of two hurricanes then there

Okay.

November, up January November. remind it us being comment Your year for you about mid-single-digit Can December, comp Famous? in last just was, what

can. we're up, looking Chris. We And it

year? Last

Yes.

was low November low to and December January then was up mid singles. singles, again low was down. singles, down

up, So, down. down,

rapid And as got similar going premise side improvement Have the into business Okay, it. -- business? the you when on, what's you just of Portfolio look of Branded a in directional given whole reacting. the the November, seen you on replenishment, at transitioned

have. probably business, our Pretty perspective what to the I the necessarily Chris, think market a and the all mid. we've about mid-single-digit to quarter. improvement give it's market but me to worthwhile, little third customers, for not happened in with we increases, certainly, much an low just Yes, seen of in in And the

booties total consistent happened we actually so If that how down obviously our at and is really in plans -- responded. XX.X%, flat project same in the could throughout the make market significant with appropriate think third QX, and had according market, our spot in we of it year, is in rest X.X%. to we quarter very which the I clearly I you business really the very share because make NPD sure in understood the what begins share Caleres, quarter our were when and the to boot look about again, of looking total decline. period QX Boots this at look at we've Footwear, been was I time trying mentioned a down

outperformed market why it's So, much to of continue. moving this bit time seasonable actually period, think, more changing with since we're fourth of And think couple again, going as a percentage we quarter, really we a feel the along the we the weather, during points. we quite by to into the the it's trend weather reason

low mid-single when are your Diane, organic to excluding Edmonds? about you about talking talk business Allen you And

Yes, yes.

Okay. seeing right. by other majority categories? mid-single-digit to Famous, good or of All That's lifts that in also improvement for is boot driven know. in And are November being you the the business

Well, I think we're seeing lifts in business. everything. But boot for our sure, a significant swing in terms of

only Okay. And the risk see. that you

articulated, I So, the bit throughout more Is a assuming comfortable little felt the of more earnings -- that at that's move promotional end the gets the that when you you did range, correctly? low season. catch to environment boots

Yes, did. yes, you

And think margins. down EBIT fourth year assume about How XXX closing that Footwear were Okay. stores. this we pretty flat They points. these last still in had QX going to much basis should Famous I quarter? you're

year you're should think you some that the in little plus about or pumping to Famous QX. for a certainly marketing that something was there that's how we talk I and quarter going doing different. and bit EBIT margin you're year did either last just a But think be about fourth So this on

improvement at Famous. Yes, year-over-year so we're anticipating significant

stores, their think the seeing significant the improving what fourth rate additional a with of on closing pretty gross the get then And Just their run both SG&A. continues XX you run on they're we year-over-year, rate topline, an seeing in current into margins reduction with at they're quarter. that what the

to in performance expecting third right the So, quarter. continue Famous into quarter we're fourth

be we a it. that and we as will mitigated money Chris. the not so of did There'll to some as we be decided spend that would degree, reposition analyzed like And or well, either things weren't last the successful to year as --

Okay, understood. it. Allen And then finally, Edmonds. just on Got just

the again you believe. on Just in probably the I revenue, quarter us a $XX some fourth million remind I had margin. odd accretion helped last little That know the in year. bit

now. would integration some again Just where of it to terms is maybe done that for I margin Branded last revenues remind and business the assume, the business and apples-to-apples, better things us right process. is given the year the in that Portfolio margin for you've business what did probably of EBIT

think talk we is it Just should year-over-year. if about we how about where and that

Yes.

So somewhere million we got million, around in I topline $XX stub period. $XX this of think

and the -- that of quarter. December. closed middle would half roughly We we of So, was the

The period, would basically expect twice through getting -- quarter. the the on margin going and revolver had that I of million expense. borrowing came we would some we that through the we So and we mean, in we amount were be $XXX bit had interest that in fourth every taken so

So, contribute that been nor year line to last fourth the the really quarter in through bottom it it didn't all has first accretive the nine months.

that's, of a so running it's as quarter. all we've kind been of along, million said And about $XX expense

to and tick second fourth again of third a fourth we the expect we quarter quarter. will that so would up a be in in and little And where in a for portion through drops will accretive the in and sales that bit tick-up saw be first good the quarter quarter of over we'd year. and And the the certainly accretive been

of excited And those team Diane kind with initiatives through of very mentioned, So the pleased year making. close as to that all kind -- some of share progress out this year you two. go and of with that, we're as get is we into

Okay. very all. to Well, Happy Thanksgiving All thanks much and right.

Chris. Thanks

Thank you.

And Poser from is from line Sam Susquehanna. the of our next question

for taking question. thanks and afternoon my Good

Hi Sam.

Hi Diane.

or was I what at you the that all, inventory have sales -- levels, what don't -- of know if mentioned missed the not, excuse me, Famous? Let's it. may I -- was what was the first

X.X% Yes, I think a-- it up on was

on X.X%. think dollar sales And X.X% I a a basis, on up and basis. about

[Indiscernible]

right. All

forward in the and When and your And of a total kind implied of of of what on sort of guidance should inventory -- at turn look you the at weeks supply here? up in follow me let have total and Famous then. the company both what So, on, forward for -- sort is you inventory target so your then total?

Yes, so turns. we've Famous I been X.X, X.X, I X.X think at turning mean, --

beginning inventory quarter, timing little fourth I very and comfortable sit where our of we of with think terms with bit right a at Famous. third of of position in we're now, quarter, end

Branded back I On we're our organic just you Allen side, Edmonds if business business, the up -- roughly you we at were think XX%. out and the look

that $XX like XX% million million. is And so something or $XX

I million inventory. $X that was boot think $X of or million

associated and sold the is $X at non-boot inventory we at anticipate QX from at the carryover Edelman happening So, into timing really and that's boot be that the with Naturalizer inventory think I QX. would just Vince. million, to is And growth then that's of the Sam

-- per if a from on year? because inventory the you and the press the us were was what store, that think And it then don't down And right. All store can per in last in release. quarter, What's opening give I down. closings up,

Yes.

Famous on I think, on basis, per a store up So, unit in-- X.X% was, a

X.X.

yes. X.X%,

And basis? on a dollar

X.X%.

then you in quarter? how stores the did close many And open and Okay.

--. We

We XX. we're open that's and in But that we number back-to-school, keep not-- -- a we opened closed kept mind XX through so

Most closings between came and of of end Xst the November. the of September

on planning additional you're in then closing XX quarter? And fourth Okay. the

That's correct.

Correct.

didn't Okay. this why drive have pressure clean? be, levels guidance of inventory and it why, and for your And may do they you than your how keep you I the when you just happen? gets is me you're if the look much is sort you'll going promote your year. should in think -- to slightly doing to higher promotional, what to Given to mean -- you change to Or-- atmosphere overall look at people full of here that

us. there. might XX promote week, we'd I right think, it have business of a so ahead or this again of be or feel got like days around last anytime. to the lot looks pretty only boot would reason be business have now. And that proven we But okay the that comfortable we we Well, the

So big Cyber a on week Monday basis. we've did we to is going happen or right a -- weather and the that's get whatever's out, got coming the next Tuesday some Christmas. weekly year, before Last the weekend --

it good. did jump But whether right right that Sam. business all this have our last -- the a and year. time now, transitions that Christmas we we margins -- how boot at actually haven't So, we boots in depend It'll are year, pretty our all in before look

at it. we're So, looking -- but

look Monday more on make We'll and weekend. price goods. So, week we we'll go through next to this move

portfolio, And it's and to that and as terrific trends of -- as Sam actually those two light. right fact, actually the I'd Naturalizer out some of and say there boot are brands in actually now them of fairly is Ken tall-shaft brand Sam, surprised, again all boots has it we're got And inventory in the relates Yes. about. penetration really and mentioned, running surprised of the Vince, were in we

really of of other have So, for of out it's and to remaining guidance that obviously we've I -- X year. watch that our think boot remainder thoughtful in the other the the million And for for. kind we'd brands inventory

what idea be report shift some there? color week huge sales moves. some comp QX forget results the sales how -- what and that was but Right. going guys you there's want perspective, Can we QX, that business And like a and we what can And to -- as will of that since it going the comp us you those QX then you week I is about become about many know dollar week to do August us Could of back-to-school model was you like, don't week is, variance that -- guide going talk to week -- become first huge to huge -- this you it's the to first of relates to when last of the just because that year that between you XXXX and -- talk a give QX. QX the -- correctly of weeks XXrd from like week? last that can week about week the of are shifts which especially don't or because want to are it a just give what first

Yes, a see XX, what with the and from we to done XXXX going we we had those color give our in provide get provided is XXrd a go terms shift we we're one to And week. XXXX from quarters, that quarter year to where the into of we guidance as for associated a color. another expense material XX-week the incremental had on as

something nothing of conversation. from XX. QX with that so the week is to back-to-school year, Whatever into the separate a that going first It's the -- everything weeks with a week. it biggest dollars do the the that's of next if of That's how extra that not shifts get is QX, really -- move you're dollars those what and are do to is, XXrd has to move out and XX to to comp one that's I Really, the going is related -- guidance. dollars. just whatever to lot much has comp a is expecting

give So some can idea? you us

I I'll now, delivering but the fourth and about haven't quarter focused on looked I say, XX [Indiscernible] you, right Yes, the don't week know year. Rick, at we're

[Indiscernible] for bought back-to-school. the shoes yet

you're know asking, will we what later. So, That Sam. come

another. Yes, XXXX, differences we information one share we quarter will into where out material shifting that there's to between get as

All much. Happy a right. Thanks very Have tried. Thanksgiving I everybody. Well, very

Thank you, Sam.

you. Thank

You Sam. too

now questions. showing I'm no that Diane turn And we call to have back I further Sullivan. the

much and and along quarter care. next quarter. conference forward to very the look everybody us Take we for this for we third a you way Thank Thanksgiving joining wish call very you our Happy seeing

third this gentlemen, and does call. earnings Ladies XXXX conclude the quarter Caleres

now may disconnect. You