Caleres (CAL) 3 Jun 192019 Q1 Earnings call transcript

Good afternoon. My name is Mike, and I will be your conference operator today. At this time, I would like to welcome everyone to the 1Q '19 Caleres Earnings Call. All lines have been placed on mute to prevent any background noise. And after the speakers' remarks, there will be a question-and-answer session [Operator Instructions].

call Peggy the Tharp. turn now over Reilly to I'd

conference. You your may begin

for quarter Reilly Good A slides I'd both Caleres, you for afternoon. press like available our Tharp, thank President financial I'm are Peggy release Vice with of tables and earnings XXXX call Investor detailed Relations to at joining webcast. first and and caleres.com.

risks various differ discussion are not factors subject with factors, number and Exchange of and Please materially but which to may Commission. other Securities results to statements, be and contains aware, limited Actual forward-looking disclosed risk company's today's including in filings due uncertainties. Form U.S. a to, the the XX-K

factors, these no obligation our online. filings release in Please refer undertakes information press reports The to at forward-looking company any update for SEC this today's time. statements. Copies could call are which any impact and available of on discussed information and other to more risk factors

Joining Chief President the turn to call today and Diane like Sullivan. Officer. the I'd Financial Ken to call CEO, now Chairman; and And are Diane Sullivan, Hannah,

And good first Thanks Caleres. quarter continued support thanks for afternoon. for of joining Peggy call and and our your

deep going to footwear a I earnings the of what spaces. sound lot retail and we're As cycle, investors fairly to we're will into today the discuss know familiar in

let's get So right to the point.

of those see As release, lost impact we to in start gains year-over-year to ability we had you to XXXX, and our realistic on expect sales. our regain in the slow read still our spring are about while business

down X%. and see industry accurately are over to for a rate the new the guidance prudently year. We of XX% we balance expect improvement believe midpoint rate, the reflects As of to a this growth we our at maintaining midpoint to-date result, bringing earnings the the challenges gradual EPS rather growth than more adjusted

share. ahead brand I'd again start portfolio metric the first like that with match. were our Once Allen quarter. of brand that in no addition quarter, than Vionic planned footwear Now while of the sales XX brands reduction sales. total, the and the in first company the includes top footwear XX% to of both sales grew can mind, market Edmonds gaining and portfolio women's And the rate owned sales Blowfish with six more In up in in other and

several of portfolio. Over have brand areas number have enabled adapt the investments to to a past continue years, strategic and in these we grow us and made our

our development give Specifically, as relevant fresh in order styles. you know, consumers' product in we invested design partners retail and have and to our

speed in-stores shopping our can solutions. program fulfillment sourcing faster, ensure to those operations. we changes patterns investments to in and invested our putting finally, by in overall diversified consumer get respond digital further in continue styles global and we we We also And to and our on-feet

Together, brand sales. drive to half to do expect first these the we quarter, we not our the drive forward. business. to over And strategic integral quarter, are developing and of the power of been strategy did parts these this make portfolio this investments last foundation we were earning to years diversify our form the going able leverage sure and sales benefit and the we've only of of that we In so several investments to

these of quarter. brands retail profit, brand our And our with our our which be gross would we've foremost in added both sales, and earnings to pleased in are these also operating We're First XXXX thrilled to very to additions lineup. Blowfish, and first investments contributed that Vionic partners the portfolio.

dynamics. to our consumer our as Next, sourcing and enabled program capabilities leading our continued changing adapt retail in us industry investments maximize speed-to-market to to we

considerable quarter, floors. relevant fresh, keep on products our growth, first enabling orders the to For replenishment their showed partners

helped distribution ourselves create and investments enabling the made and to partners expanded portfolio, digital our the new opportunities. we value commerce we've center for brand in Thanks fulfillment by for

portfolio total sales year-over-year. approximately a related up As a brand our quarter up XX% than of e-commerce sales, and represented accounted and were sales, more of which high-teens Dropship retail our go XX% sales. for partners e-commerce consumers, result, directly to

So all-in-all, for quarter portfolio. a progress good the and brand continued

Now, it let's came but in turn be. to high what where our digits mid were comp February Famous March. performance single better was up not sales sales single frankly Footwear, weather comp digits, we down clearly April wanted improvement was X% for the to athletic and and were ended to the And was doors. comp we also February X.X% sales quarter sales down operated a month down fewer total it the XX as offset difficult sales. April we record Unfortunately, first decline. with with

There start to macro February increased turn slow sales some impacted in that the across the and trends were space spring specifically the retail in and drove eliminated quarter, several and promotions cases, industry. delayed in

were at response As in increased the unseasonable quarter to and a Footwear result, during we peer activity. more promotional Famous weather the

call quarter, was for in last certain margin assortment drive this our order product assortment reduce we year from products freshness to in essential in this as started working addition, impacted to follow to and decision through school, back In negatively though overall this we it And felt really to our on all our to our reduce eliminate the inventory. we gross to said on inventory.

expect into to reminder, the we actively continue inventory to second reduce quarter. As a

certain of from Finally, lead underperforming our levels vendor partner. excess we had still styles

not to seeing in new direction product. strength improvement significant expect right yet, the become good moving apparent we're we improvement in and we in the the second However, there but and are half. We're

quarter, Rewards. it's plans. and of In first needed done our program program in invested the be to in go Famously YOU forward refresh essential our rewards launched this also we and A officially

track good and a response. on with already expectations receiving our are are We

during see back-to-school and the significant of rolling We improvement expect continued the half to into second and year.

million positive April sales quarter rewards of Sales up we quarter, first retention in drove X% added In and sales. to all approximately nearly in XXX,XXX rewards quarter approximately first with the reactivated were represented total, our existing rewards XX%. rate. XX% the X.X in members members improvement new Reward up members

turn before over Ken, I on quarter reiterate to to something I'd said like I things call. our fourth But

the brands underpinnings makes and powerful and Our Caleres of vision what to relevant strategic become remain unchanged. a footwear of portfolio us

are for Our sound portfolio; as importantly, and in we direction to we to results digital investment extend both our our picking share our when being consumer top comes and capabilities; continue focus our in continuing up drive drive and it brands. reminder, relevance; will a design, winning brand And our by XXXX. to and by out our is gains focus; development women's pace our for first our product intensifying most

with our by partners. vendor all we Footwear, Famous assortments product our will At elevate of our strengthening relationships

our also with new rewards We program. consumer our consumer in through drive relationship and investing to our we And deepening marketing growth. are are digital

for to over And with to like I'd a the Review. turn Financial that, call Ken

Thank and afternoon, Diane, good you, everyone.

quarter, first reported per the For share earnings of we $X.XX.

$X.XX $X.XX Our the and expectations adjustment of expense related Vionic share, related brand. of adjusted exit Carlos earnings $X.XX amortization, excluding Footwear of line in transaction and brand per at per with to the share was inventory expense portfolio

reduction sales $XXX.X Vionic million up Edmonds the X.X% for quarter planned and of including and Consolidated over were the of year, sales Allen the the Blowfish sales. in prior addition

as were Footwear, Diane same sales total Famous up X% sales At year-over-year. down were store portfolio XX.X% already brand discussed. Our

with operated fewer X.X% $XXX.X closing as four Our XXX versus and doors XX down total we in the sales and doors opening Famous at million, total XX Footwear first quarter. the year, ended prior were after quarter the

in growth month the segment Footwear eliminating and last sales to and provided Famous a XXXX Beginning portfolio to basis. our acquisitions. segment. made As the given change announced results on in reflect are this re-cast quarterly the reminder, we quarter, We for brand our XXXX this portfolio and change to presentation a XXXX annual brand we other

Let's consolidated gross turn profit to margin. and

related reported came the up at million amortization Adjusted in first profit gross up the gross margin to $X.X $XXX.X X.X% consolidated profit our And $XXX exit, to gross million consolidated related quarter, and inventory for to the million year-over-year. For exclude brand markdown was was the Carlos and Vionic XX.X%. adjustment of expense X.X%.

basis Our brand the e-commerce gross promotional both of and in increased activity and XX.X% at approximately growth reflecting adjusted continued XXX points, Footwear. Famous in margin overall portfolio was

the in first Blowfish, margin was XX.X%, e-commerce in in reflects a related also increase due gross and to quarter sales margin channel. adjusted reported over and was the portfolio and approximately and of year. increase decrease brand up XX.X% points an mass prior addition Our was XX Vionic basis sales the the gross This to

gross of was first margin XXX year-over-year. down XX.X% quarter Famous points Footwear, approximately basis For

the I second see As quarter. Diane expect team in back cleared from inventory and discussed aggressively earlier, we to the effort similar this pressure and school, to

a Additionally, percent to Famous as grow e-commerce sales. of Footwear overall continued our

quarter the X.X%, SG&A up Vionic consolidated of was for expense and the addition Our Blowfish. first including

two despite new a reduction of more represented XX XX.X% addition sales, SG&A the basis brands. of Our of points than

points incremental basis we SG&A more For in a XX% down represented SG&A X% year. Footwear versus prior the million, program. down investment portfolio, in XX Famous And rewards of was and expense than the sales, included new the our $X.X the reduction made brand

Depreciation our to prior for $XX.X Vionic was quarter acquisition. to amortization versus related primarily first and amortization the million year, the XX% additional up the of trademark due

of operating quarter sales. $XX.X million, with of first million Our adjusted earnings were sales earnings $XX.X X.X% representing or of operating X.X%

million earnings brand XX.X%. our reported Adjusted acquisitions. addition XX%, including of earnings first of $XX.X For up more million were the operating than operating portfolio, $XX.X quarter of were

of operating through levels ago. Adjusted Footwear. first earnings XXX a At $XX.X clear to was first overall basis year represented at certain Famous reduce of and than down decisions X.X% margin X.X% versus the reflecting sales products and Footwear, year-over-year, team's was the more points up operating quarter million of quarter Famous conscious inventory

$X.X the quarter finance used net acquisition revolving credit as Vionic. Our for of the interest we was $X.X expense of first up XXXX October million facility our million to

basis an XX.X% Our was on first on rate tax adjusted and XX.X% basis. GAAP a quarter

approximately brand the the reflecting were our automation distribution year-over-year, and of investment first portfolio in Our $XX quarter million capital $XX.X new up expenditures million our center. continued for

down basis $XX.X XXXX a Turning with where borrowings our and on and million at end, year-end, with cash to due revolving the at facility million million to credit outstanding the of acquisition quarter under but our of we from balance $XXX $XXX year-over-year Vionic. up quarter sheet equivalents, ended

was Our consolidated the inventory first position of at the quarter million. end $XXX.X

an portfolio, brand mentioned. primarily acquisitions. as the the X% increase in ended Footwear, inventory saw down approximately Blowfish year-over-year to we previously inventory, Famous our quarter we Vionic and At related For with

again, Our year. adjusted flow growth Wrapping Footwear basis was the on flow period at Famous up to $XX.X once return million. deliver up first quarter contributor operating approximately in first months consistent quarter. our our to and last our cash trailing performance, the our and a capital operating invested over XXX was solid cash same XX continued XX.X% quarter review be points

like And our review finally, to I'd guidance.

to guidance unseasonable reflect the we reflects rate due in year-over-year inventory Famous back-to-school. slower As expect than of share through now range Diane improvements already our This Footwear in weather growth the midpoint new first advance earnings expected X%. we at as discussed, to cleared and of quarter, per the actively of both

expect While of we the back challenging Famous in to remain we as to our and Famous best to is retail offset for see brand to quarter continue we prudent the confident the year, levels. in additionally, Footwear reduce And our inventory we the activity as are will and weakness Footwear, half at across we industry while improvements remain believe its second partners. monitor portfolio ability at we believe

And I before tariff provide like call to would over begin update to turn on to brief the a Q&A, the footwork Diane we situation.

and know, additional China. tariffs as XX% to for in of were And footwear Ken. produced proposed you all up Thanks, made

of diversifying now our As actively competitive space. over in been a sourcing China a gives products source production from our from and years, there. last And base powerful reminder, us advantage the footwear away the have XX% five approximately we

are production nothing includes, are While is potentially we which resolution, with working positive we yet additional our for out hopeful partners and price certainly actively final to increases. through of costs reduce and exploring working China, contingency shifting plans, a factory

we're While with business, taking applying sense for this nothing issue granted. same our entire we the we are urgency are of treating across

that, Q&A. to the turn with like for And call I'd operator over to the

question [Operator comes and Rick Patel Instructions] Your from Company. first from Needham

way any on on hoping might insight function with give context why difficult also guidance. which of being some be of terms a the the you can provide some is comps quarter to being you you. it's can provide actions us marketplace afternoon, that that bigger Thank more more May everyone. Good those and of conservative to inventory you're pressure I'm Perhaps, might you're month more context during point overcome? the promotional hoping And be second right there it factors in taking, product, now? the but sluggish on of sounds like I'm

had this were half working noticed, Rick, through expected think into then And call points basis said you I'll as few to think, a you on flat Famous give were that quarter. we the some at We a specifics. over share Diane the and of Footwear in year. I XXX numbers of our can first down we Footwear we we period, little But as the Famous I had that about around margins end taken up consideration. last

The back half a that other was basis some of needed off, clean back through of drop into sure move make to and had April clearance just through the result to done really were activity XXX points, move the incremental to half, we the going the really back-to-school. product of and that we we

that roughly point would QX XXX points. basis into continue basis expect margin to And be so down and decline we're to we expecting it

So down quarter. improving the second but still year-over-year in

down. to in a color. inventory to did just We few more the little order So quarter promotions a add drive Rick, unplanned the during continue maybe

some at path in out side for little and vendor a And then the non-athletic of equation. We also looking the really lifecycle up categories product glide partner the the the bit our that are was of of speeding longer. particularly key really

the So year little that was call quarter, had. bit that of end last of post last our newer or first news a late year, we a

strategy back of touch that you on assortment that place you to the the the it the is XQ And outlook in confidence? half. can from for about what’s sustainability What you XQ? the gives have And or also that

and couple there's have the of We feel fourth why of confidence we that quarter. about very do. reasons the degree good And we third a

of getting to some show replacing non-performing those into improvement allocated to vendor as that side on into the well the third and more investments support the are had categories iconic partners bringing are key we've right appear lot a all, there, exactly The we're inventory in in working side order in coming and as and as we're of non-athletic fourth the lot going we products move going in quarter. brands of as those brands we need with the quarter. of new actually that First that new our correlation That's hoped. made third athletic of to be on to both a the and what

of course, the ahead a this do third in easiest time on rewards to quarter. first launching in the program quarter, period we made to And of get time we it. bet then, back-to-school wanted exactly But not our

be be into new to program And thing we in going have. shifts and go in the doing way. tested last and And we So and very quarter probably terms back-to-school There's what news plans to of a we running things, few well. the those as we confident like that of feel is the going good third we positive performing is marketing we're up and about some see. we've the a what is that

Capital. comes from question Champine from next Loop Your Laura

stores the but the But for just for what's a your to Thanks strong segment own my portfolio? comp. taking comp see through small on brand and the get part brand we of with such as much question. so know little the growth on and more Could whole, not a I it's a color on sales going portfolio.

helpful. you us gap If the bridge that can be for would

I of a of think is ship. programs, -- of our in brand that lot lot portfolio a lot with really growth we're a lot then drop seeing our the our and of replenishment a

XX%. sales related e-commerce our so continue be there to And

an there. growth The initial a what's continues traditional So piece would brand the that's and way smaller be driving through piece smaller big to that portfolio. order of and of the that we a take ship orders,

piece which planned Allen you and you had we the on that it when Edmonds, to So, a you comp, caught -- retail go big over is down. of flip side

Edelman you've and to look Sam got our online continues his strong there, the in be business we in comps on total, Naturalizer. then thing at same when So

a really reduction So Allen lot at of our Edmonds. that's driven planned by

already Laura, one what -- I'd back add that Ken other really the And growth. to thing come it to does e-commerce said.

they're pure our portion All whether is plays of they're of department across or store business the dot whether them, we own partners. of many com

are the and that's and of really advantage last those strong us have the in made shopping. businesses that allowed the take opportunity two the that of really now our they're with way capabilities there investments years consumer to All the we've

growth So a our lot came of there. from

Macquarie. comes from Laurent Your Vasilescu from next question

This I of on to on is Nike. Wilson behalf Laurent. start wanted

in XX-K in of XX I FY latest Nike was think was for XX%. your sales XX% XX-K the and then

So it implies to a what expect year? mid-teens Nike decline. of sense out for Any as this we should

nice half, We new that we're are and that expecting first as we're here Nike I And to confidence going through be it actually into that back-to-school. the then The think is some seeing the we gains. total positive. the the know in really the that's the product showing have dynamic year. up, net of up. don’t add pressure And like But that. really it's if Diane the half Nike putting on expecting of the to to that’s first are out product a I you'd clearing older to we to anything seeing

it I think you said well.

for Vionic thoughts then on How quarter for any on And this performed and growth in year? the Vionic. did

and were in They have mentioned earnings. Vionic incremental amortization as the sales, $X paying of they did million remember we're the and that, we have an We contributor almost a expense performed And quarter. over down were $X then in slightly their they of million with interest line. operating certainly in accretive of so of well. just all intangibles had as in margin little

repositioning and Allen in then bottom any brand Allen And terms top visibility both the line? into Edmonds, on of the Edmonds, any update of the on

the tough actually, Allen made in decisions year reposition end We and order at know, Edmonds. some move bold to as last you of

the there. targets That We going we ones about so good. against the run, major well. two took our line so out far and XX%, we promotions tracking think to we anyways. of our to be some So excess seems of nicely top We're reduced

months or year, feel of that direction so the far business. much the better four into so we good, So, about three

guide last one EPS And at quick level, question. the At down your $X.XX.

that driven that's Just want Famous? by make to sure fully

the driven production by is think I direct Famous. Yes,

think that I some some of wholesale happening side the and the we’re issues on footwear. our very the some just announcements, are recent about cautious with of key beyond of the what's business partners having of

tried from still X% midpoint. of half. on mean, and not up that And bet the in so, be upside we we at the I lot are second a to prudent

comes Marotta Your next and CL Steve from King question from Associates.

it, was on on And going are that planned Allen finer you were first to say the first beginning your you no Edmonds, the that at [indiscernible]? mentioned quarter the plan promotions not Diane, given changes were additional point a put the would there in within incremental the… within of quarter

down. No, way none. Fewer but sales, enough still not working our days on we're

So the that's still intention.

can the correctly. if are was give Can where inefficiencies optimization expect And little remember you year, as talk a then about And distribution you line year there? further there you progresses? center update do I are you a last late you and in

in fully The new building the did has job invested fueled the And We half distribution that talked really just our transitioned by that growth that cut CAL really related great capabilities We our there. back done all the internally. center. the in team there was benefits year. we we confidence terms our sales come the on a in remind over in about everyone the X. with teams The e-commerce just with of of automation, of

happens of course X next days. automation, fine we're and And automaton CAL that then process over the of the in the the tuning so, XX

we half productivity some see the to with take year. back start you'll in of the that, the out to manual So labor of the as start

that of some teams went they're in the of a about square million And pretty and got a those year. So required we space but job the automated a great And half done as and we've improvements foot back incremental the through on nice got track. we've capacity. was half facilities,

bit And last little a question, of just housekeeping.

first added In Can coming we that net -- million X.X what you not can all. quarter? you offline, words, you what important. quarter You was the other out Thank and quarter. rewards number you with, entered Thank including very about much. it's talk in do that the of the the

Wedbush. from comes question Chris Svezia from next Your

expecting, my I is, I see quarter? first So Famous. for similar that is first question to expecting the You're for what you're quarter guess second the guess the comp to

You're expecting to see flat.

any if the comp you Just forward or trajectory move color you about here? projections anticipate what

say I improvements second would to and load low of consecutive - throughout year. up expecting quarter the the we're then flat rest

looking do it And rest inventory a down talking potential Footwear you, piece margins that of about? of scenario this XXX or saying location being midpoint guess, basically is based Famous the is to the enough you're basis down case inventory thinking you this that points? characterize Are move worst you're in the I Have order around more scenario, of on about. the and

single be what and And the looked to I think back-to-school in which wanted this at we've really to we to we back-to-school that room could, to that begin way Chris. sure we the every start left to gone able that needed do position team in making enough do we in.

I margin think we was were about we what realistic be. what to going impact the thought of with

And then bit. just, Ken, help a us from earnings little for you out perspective, an

QX being just characterize low-single-digits thinking more earning Or earnings quarter? should flat down situation, be the we for about how second the You're year-over-year? anticipating or a

throughout I mean, we think say quarters. tried to what improvement expect the we've I is,

flat to is the then just it I And And when down from in in QX And and the and last acquisition QX, we year. dilution guided over in everyone to so, then we QX be down flips down had we remind low, high-single-digits. think were QX. we're I up

came through in the period year. October, there So $X.XX that December and of X.XX was a that dilution November on time basis, recorded last

little program, the here. rate just was more loyalty gone two acquisitions? the months the in drive would on bit growth it I guess ex And the business comp in quarter. have And the maybe for last the portfolio would a to thought branded organic I from have One, what

back-to-school be it successful, you the longer business? do a really was drive for to to why what much Just And what anticipate wasn't?

think Chris. about you if Well, mid-February, was a it in soft launch

sales April, up. mentioned April, we and up we in in I quarter, April about off And kicked you saw, we I rewards. So XX%. are in in added, Reward we the it up were that's think grew were the X% when but as

It it So, hit the it's off a takes and just to kick doesn't while. starting build. ground running,

to that continued is that we've have the meeting May. everything And looking ramp how that quarter had see now been back-to-school. about we so from auto the first into expectations And that ramp at we

give to right things any that are on say what And pause would than Ken now that going nothing be there's us to then anticipated. different So the… we

Yes, I first luxury on down Edmonds had taking quarter, in the have so think -- the no we we of did sales because the Allen the two acquisitions.

So two out of the the when Allen as Edmonds down pull you benefit were the sales acquisitions, business, the planned.

low And were down they single?

on where No, and XX in. it's we planned down around came it

No, much, I'm find very the later Thank catch it. Appreciate you aggregate. out. I'll with talking in guys. best. you up It's I'll all okay.

Instructions] Sam next [Operator from Financial. from question Poser comes Susquehanna The

some follow-ups the two sales ex matter? Blowfish. for brand follow-ups What the Chris. brands few was question a to Vionic I that portfolio out, decrease have I increase guess and or of and is the the

down. was it acquisitions, two the excluding Well,

than singles, singles, bigger Low the… high

single… Yes, low

you often the the loyalty how in them to How customers do often have past Famous? at programs? with shop expect new shop And now

the typically with so that the same have don't in shop the it's not keeping anticipation new some with as ones are we of well reactivation is a times the And the that They typically. attrition the rate. in folks program, are programs, year, actually of currently that a three as about

of as how in big and unfolds. and done first I already a one XX%. the we'd to and to XX% quarter have So see opposed and with have thing. piece shopped But all-in, this We'll is don't to continue been of XX% know, it consumers much engagement people communication the with too the rewards of normally about reactivation the in, range that

to churn trying really eliminate. the we're So

the of shift much attribute how Easter? April April, do to And you of

the again in much, rewards open… are not No,

No, how in comp. hurting tax refunds I February? mean, you had tax refunds. And late the attribute late the you do much to

really. tax Not February other too and it refund, the quarter, the but business. I of hard were that correlate that with factors was really any there hurt really to our much mean, hurt

Footwear's percent inventory from sourced one, other have Number is Famous what China? questions. I two of

get to non-athletic, have guess But back outside probably I'll to would I'd the probably But about of if versus of have on athletic you XX% to Famous to check mix the in China, think you. I somewhere it's that number. XX%.

visibility to great you the then reporting And it sales. you it's But I the because structure, us into did what why made reporting more mean, the structure? gave adjustment that think changed you? that

is Famous. you sales Well, the into do, real of just are I portfolio. do those through consolidation we wanted so brand And see selling growth but got businesses and that mean matter other it we've the the that eliminate like the the fact to could our of always we segment,

And XXXX, put else consistent does we of year so So with and was it's the way and 'XX everybody of it. messy at recast out the -- with 'XX. pretty accounting, with it all the a effective we

segment they eliminated and see in the eliminated portfolio So you were can looked margin what have other. in those years of sales the brand would like if being instead

look Famous to are going into you were at businesses continue our to when So so. those selling and acquisitions, do

right just up. it like the clean seemed so time And that to

the… in businesses those other other there is of else And anything sales than

sales. sales No, margin XXX% of elimination those the to tied is inter-company and in the

from Svezia Your Wedbush. Chris next from comes question

ask of why together? valuation process, any and back to been thought differently. keep it where splitting more branded these what's little in focused going the is just I companies of portfolio guess, just or maybe it walk been. Famous value a has still enhancing through company, the that's when look and I'm the a you step Can and through question where you Sam’s maybe at walkthrough ever two apart maybe walk keeping the if together? consideration, us consideration And by of

improvements portfolio, conversation. us at put the part brand end gives of of mean, the if that the is of I the the grow a that strategy into we of look we that to get flow the all believe ability while earning, Famous So, portfolio. in back. look strategy want growth, to day, a strength brand And that the cash the Footwear continue together we to at have the

why anyone I stock so look you currently is this of day, now. trading, mean, question even the is at where business think at end right in I And can the the when you

think don't want this around details on I into up so, company the to call. go And splitting we

of to last the portfolio that. continued Famous for take not on Chris, been years. laid just confident if think that for indicative out with add two we we’ve company. very of to about at I'm going the Footwear look brand the had that you opportunity what This And fact, against had I the a direction we executing entire the the we portfolio that and feel quarter is issues the excellence we've believe side, that in one at this improvement

Famous is, of So question it and our a terms of as to half a though. network, periodically, does to of really that is to of that ability all really all great the the work usually including around had it quarter reasons brands why we integration this at turn together invest seems of its to because And in there That back allow have, to going cash other keep up not good with the the of year. in we've when us part in business. generate not come performance happy Famous, believe lot to that’s really

turn the comments. question. At was will this And time, to call closing last back over that Diane now our for I

the for Thanks Thanks, more everybody about future. next Michael. the look days, sharing I joining I for to us. over and see of we seeing forward you appreciate couple it. how and

you So for your thanks to support. soon. again Talk

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