Stitch Fix (SFIX) 4 Jun 242024 Q3 Earnings call transcript

Good afternoon, and thank you for standing by. Welcome to the third quarter fiscal year 2024 Stitch Fix Earnings Call. [Operator Instructions] Please be advised that today's conference is being recorded. And now I'd like to hand the call over to Hayden Blair, Senior Director, Investor Relations and Treasurer. Please go ahead, sir.

you Quarter us Fiscal thank Stitch for and Third Fix XXXX afternoon, for today joining the Good Earnings Call. the Aufderhaar, on Officer; me call Baer, Matt With Chief and David Chief Officer. Financial are Executive

complete posted site. on also A be call release link results a quarterly the webcast have financial of results third We the website, our can our and of found section to on press XXXX investors.stitchfix.com. conference quarter today's

this by be would which like differ everyone remind and an forward-looking future Actual involve should call, We statements. indication on uncertainties. that we risks performance. as results making materially statements will be from our to results Reported considered of not could those forward-looking contemplated

with could cause results In our the for release and annual our section on to previously differ. filings Form issued the press XX-K for the we particular, review Factors which today later quarter Form be the XX-Q XXXX, a fiscal Risk on expect with as filed and this that the as filed discussion of our fiscal XXXX, report well week. our filed SEC of third for to Please factors report SEC of the quarterly

statements available call to today's on the based on forward-looking are statements, information any update that note We disclaim Also by required to law. forward-looking of as obligation us this date. any except as

GAAP certain measures. website. are substitute to are Reconciliations Relations results. our discuss financial intended measures the comparable non-GAAP our we the in be provided measures not will press GAAP non-GAAP a directly During financial this release for call, These to Investor most on

operation. call all business we continuing of represent as metrics began discussed In a to report fiscal today's quarter our XXXX, the operations. our on U.K. Accordingly, discontinued first

me this being will let call webcast this shortly. on the of our CEO, available website, Relations our call entirety Baer. and Matt And to be on a now replay turn website over is Investor the call its Finally, in

business we are First, Fix, to At and good the remain areas: strengthen Hayden, our business structure retail the all future our to to and organizational efficiencies enterprise, efforts everyone. have are right in our we across of This practices includes transform journey our working and place on X best Thanks, ensuring identifying the Stitch afternoon, foundation success. enable across disciplines. we a operational on embedding focused

the how are with our rethink and Stitch we Second, holistic to reimagining client approach clients a engage experience Fix. taking

revenue for am results by as outperformed we've the I particularly encouraged in well adjusted of and our ahead guidance which our anticipated, coming on progress expectations earlier our delivered work, as made EBITDA than in foundational resulting quarter. our the

we achieved QX, net of and In million $XXX.X $X.X EBITDA revenue million. adjusted of

margin in We our of more strongest also XX.X%, than achieved quarterly gross X result years.

the in the that my strategy early place. still have are results transformation in our we days efforts, QX confidence reaffirm of we While our right

financial position solid. addition, be In continues to our

will We of This, future. us our combination we with growth that enviable have believe order business areas a the the profitable enable balance sheet healthy will invest in in and to drive the no in economics sustainable, debt.

foundational since entire efforts specific create client on have contributed than been many their X business to this the over as the us to to day better Stitch us unique aspire X, that know AI fundamental with business identify of more advantage day to Now and science well course experiences as quarter. that DNA know Fix' the data relationship. This clients enables I'd allows retailers efficiencies. combined our our our through talk to like about to of could some results model

satisfaction. In fixed QX, strengthening analytics leveraged we of to capabilities transactions while improve our the profitability client

shipments. opportunities reduce client underperforming of analysis to robust a found Following we interactions,

of quick demand high of new currently which following proprietary checkout. clients success. algorithms, an schedule the fixes only to a by the them fix additional clients we example, provide Utilizing likelihood fixes quick performance fixes, have offering option know our an As when immediately offer we to the we improved

change, this order by of average weeks X quick value fix Within improved XX%.

tests of we Another each million points of example we of our category, lines than of architecture within of we pricing needs. work to a price review recently aligned of each the Within elasticity tested still $XX clients' The the comprehensive priced price to we improve profitability profit serving ensure opportunity. contribution annualized of to results our ensure while with appropriately are is our business more completed these indicated are offer. value

outside engage Building engagement upon improved their client CRM drive freestyle current fixed effort clients of schedule. we're utilizing our our and to to frequent transactions increase more

sales this, capabilities new we As more inventory our part are and promotional efficiently. testing incremental of manage to drive

Looking ahead, offers and data-driven through promotional of approach we targeted will take use the events. a more

our broader In we to AI to of demand a This business, time of the brand embed AI our tool part transactional across partnership client that and empowering buying predict buying team individual addition, as merchandising merchandising, to scale style trend data to on including our our effective enables more and to to the level, inventory decisions spend of client set and proprietary This sets development. continue make more merchants at and decisions. private our art approach are efficient. larger our to buying vendor tool inform identification,

tool merchandise inventory without the nearly the tool. that all receipts use selected and of the the outperform QX, inform In items of half

of capability the this leverage increase further inventory our will and our they to will styles productivity the expected delivering we while love. forward, clients Moving

our we've the the foundation business. to examples These progress recent strengthen made demonstrate of

efforts our wallet advance these work, will increase profitability. believe we and continue As share to improve we foundational

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number time. reactivate Our highly improve as marketing client retain optimize of growing will opportunity remains clients acquire, metrics reimagine conversion a our over together to experience, further us our and we our engaged which help and

experience, Next, continues to serve which the schedule. those This I'll the better to ensuring future. speak progress to believe critical on is to as can in reimagine as today have clients we work acquire we to we our the we client work well plan

we shared of and styles how a our one differentiators success always and deliver will clients love. experience our tied that they we is ability As has to personalized key have clients to the convenient our our know been before, discover helps well

As we quarter. number discounting approach how the visual we're experience, every and fix, in This rethinking the clients fixed work the their through how more we to we discussed items reimagine serve in client last includes of dynamic we onboarding interaction.

in so far. to are encouraged results seeing we of tied the We tests these we are number have the market a areas, by and

excited our series the summer. launch progress a expect more quarter. a experience dynamic to Fix. of by be result of We will updates Stitch and this first The I'm this end modern

the client are reimagine We of our experience. seeing and advancing efforts strengthen to the our impact foundation work to our are

mission nail We fit is that, what they and we look people the discover clients' our their fit, love are styles best. so to a we perfectly when When always they on transformation grounded will in. our help win, that's do style we that and feel and

results David over the our turn to financial QX call about I'll future and talk to outlook. that, With

Thanks, Matt.

opportunities driven Freestyle strong performance AOV earlier, seeing client and signs of our business. facets efforts by product the improved indicated to our These identify of we're and margins improve helped work us outcomes, in Matt detailed transformational multiple on drove analytics quarter. that As progress successful

on our our ongoing carrier gross within operations, supports further and margins Additionally, diversification cash expanding focus our flow.

'XX. of we any lower be result year FY a percentage transportation FY than a 'XX these As net since as of efforts, expect costs sales will

our closure of the completed to optimize center the our expect also We and third costs. in Dallas and warehouse transportation quarter to continue distribution

the improve. variable have efficiencies, of economics done of work margin our gross to Because labor and drive unit our continue order all teams to and

contribution marked 'XX. of QX since margin our highest FY quarter This

XX% are range historical now contribution in to We margin. above our XX%

in we that all provide believe across doing transportation of opportunities further analytics, in and will We will sustainable, client the the to future. invest growth work merchandising, pricing, drive are areas profitable operations,

up impact was Now the down X% QX Revenue pricing into $XXX, revenue XX% our and X% results. active inventory quarter saw million, improve was We transactions. our and both AOVs, and year-over-year keep the year-over-year terms and in the to AUR focus the on the of improving our work let our client down rate quarter-over-quarter. cumulative for of X% me to profitability per quarter-over-quarter. $XXX.X third stronger up health, get science, due net of QX ongoing

basis ended margin clients the earlier. year-over-year XX% X.X quarter the active at the for driven up margins XXX and transportation quarter-over-quarter, strong million XXX Net discussed by Gross XX.X%, points clients, down year-over-year quarter-over-quarter. up leverage approximately down and was X% basis points product quarter and

X% above QX to X% margin, quarter-over-quarter QX our million revenue, came advertising XX% basis we XXX in well top X% XX management quarter. ongoing result adjusted up was basis versus typically due provided year-over-year as the and at year-over-year discipline. as $X.X the cost up or quarter-over-quarter. due range stronger margins and seasonal EBITDA points This leverage, down guidance spend line of points to second our up improved gross was

quarter-over-quarter. XX% Net inventory decreased and year-over-year X%

these as to We our align for the FY balances of buying utilize at drive inventory to continue AI we and with efficiencies. remain position lower levels inventory to tool inventory expect 'XX remainder our demand further

million $XX.X million and in investments flow QX $XXX no the debt. cash cash with we Free cash, in and quarter, and equivalents was ended

Turning outlook. to our

This year rate to which total increases between billion $XXX revenue keep both range expect net $X.XX and million, to in in billion. be $X.XX $XXX expected with continued AUR. reflects strength AOV year-over-year we QX, between and For million full and our revenue improvements

range expect million. and increases $XX our EBITDA adjusted between be million adjusted to EBITDA full which million, will year $XX between We $XX and QX million $X

QX XX%. be X% to and of QX We revenue. between to expect for we between and advertising gross be expect margins XX% XX% And

We year. QX to the flow to cash and full positive also for expect both be continue

As to our large address opportunity a significant team ahead market. galvanized transformation is our by retail progresses, the

Because sheet, sustainable, in We base. have our this, expense transform balance we business invest manage we and to areas that well profitable a future. drive to growth will healthy of positioned our the and actively the continue in are

to that, Matt. I'll the call With turn back

Fix, curated powerful of foundation and capabilities. our which we our to we reimagine data create a strong the deliver. experience experience that can AI Thanks, strengthen in team science of merchandise and assortment and how an I'm that are efforts carefully value a encouraged proposition have together advancing transformation. advanced combines support only we David. At our by client Stitch stylists,

confident to I'm will place progress strategy have our that along continuing still us growth profitable do, we the We to look we to work sustainable, the enable future. in have to with in you the deliver share way. While forward

over With will it Q&A. for that, turn operator I to the

[Operator Instructions]

Youssef first Our from from Securities. the line Truist comes Squali of question

Two questions from me.

a that's client Matt, First, reimagining the about experience schedule. little you on and how talked bit

us a and little maybe what to. about you up going experience, a bit Could some the summer. to used unpack how talked are something first from for you how just day little teased that a You be experience I coming coming new think just bit up, is different this we

drive David, active what's then that that based are I the to reactivation, should on how And decline guys cetera, things all guide. user et and growth we baked you in be the QX? thinking about into for clients guess, doing

I Matt. appreciate it's question. Youssef, the

their terms this in the really know that strong We in and more experience So and their back order I we the client know their think Citrix, we to reimagination client course know most step have to, at nail in of than really just competitive of data over a we differentiation retailers spoke a to need makes orientation, transaction, have we first of that relationship. preferences, the of to entire remind before we about take their where style value that the important aspire their fit. we terms them

we're take in best holistic to the The end-to-end today, be those information we do is into better clients, The have capitalize work clients delivering both the to of make on experience that reimagine differentiation. that that the sure terms future. and the client it's absolute to how experience we're that client how also in that of terms doing work, going serve we we we acquire critical but that

we to and modern more to more some previously, something a X the of on, and part the experience. example the to stylists know continue we're interface, outfitting And or noted flexibility is that our as our that include focused some proposition client creating does a work and value their it the dynamic play areas Fix items X behind told fixes. our more than traditional to that bringing latter our needs. capabilities in that clients have to keeping the us our that can serve better So of want mind so of critical they is that continue improve in stylists And get sending

-- new experience you to also central vice versa. points experiences these So part expect for summer. the of launch and offering interact noted, with our And stylists to be updates we'll or of touch the working of reimagination client do part stylists clients that make a more of to we series this experience, as these

rooted we've testing terms received we've and the seen So them And of to is really both we've piloting everything experience of and positive client by the a various along to in better our clients, encouraged we do way, that feedback results reimagined what that capitalize tests. been and here. that serving unique we competitive advantage from David? aspects on those the have is the early

are QX And second on then question the components on guide, couple the there part Youssef, your that. to of a of

But QX, guide. trends and it trends that active AOV does the is expect saw positive we've include negative continue in continued clients. seen do the in also included quarter that we our we that into this First, around to

do active to about quarter-over-quarter quarter-over-quarter. is for down of And QX, $XXX clients million in to quarter. of the be size lower rough reflected revenue and expect million we guide $XXX And so that shape, all X% in the

specifically we gross out, between expect On called side XX% well, be XX%. as to and the expense we margins

actively benefits see we're to are we highlighted base manage the then And well. to we've there. So our as continuing expense continue

to the $X quarter. And for $XX so EBITDA of the million in adjusted the reflected that's all guide million

BMO Simeon next comes our And the question Markets. Siegel line from of from Capital

those what RPAC? just you're look And then both changes, XX-day And beyond pieces you margin then I progress about how could bit gross missed how really QX, the the on look how quarter's I make and maybe little these you could gross but should thinking think about margins, it. Did within moving more you if like? give guess a as apologize the you quantify

couple a on things of margin. there Simeon, Yes, gross

we that are was And the get mark. see really about structurally big that to nothing can you Some there about that that of couldn't we've components past the back what organization to in different talked the similar the suggests there. we're XX%

big merch the so And been that teams work that of inventory part the driving around have a health. is doing

that's so this. to component been And a big

And other component And of before. The have called this side the think out the as transportation we've than us. them. those or they're able fixes items If that we keeps logistics I a sent X know, we our majority back to a items cost out, out other someone of sent we significant no of business. retailers, have to for at fix, X you return is and items reverse to different

we is shipping something of base. on part big bit. And so a our expense a It's quite focus

of using last the a work in also focusing mile of drive having mile efficiency teams and And experience. client of so diversifying in carriers, even existing lot into And our to carriers, on while really there. quarters, the efficiency last even last carriers carriers couple some those have driving better a done it's

of work lot a just so And great there.

we them to the see, going And benefits that into sort QX. so click And we are and continue that's into the margins. gross of double those expect

you -- RPAC? That's guys XX-day great. give did then And just

give are that historically new but cohorts RPAC from through year-over-year that it seeing didn't to we see trends excuse very where we increase continues -- a healthy, client absolute we've we're still specific the it's coming and number, that seen same me, Yes, perspective. XX-day the a

happy seeing there. with what definitely So we're

comes question next our Sherman from Ani from of Bernstein. the line And

nice the on quarter. congrats So

are retaining your guiding looks of the you some you like LTV I clients? cycling metrics feel kind our Do some at feel where gross few with last XXXX quality in clients there in a you but point quarter improving clients. like higher improvements P&L higher like through talked first, So lower start see the lower for the active RPAC of you've quarters the LTV high-quality another like and Do about numbers quality of of you're fixed a of there. to active you're number. declines, in margins. you're should know almost client base in It

We're way active not that. I active this standpoint look at I'll But is to of Aneesha, 'XX. sort of FY client both an Yes, take clients. from guiding sides that the

revenue. and how our think drive If our we about business It's new as as existing engaging clients you clients. adding well about

saw this seeing you're our we're with to AOV work a perspective absolutely quarter what and foundational that RPAC existing X% at a year-over-year. up And clients what the and year-over-year alluding X% engaging come through for you that up in is up first in time from while

testament that so work seeing our we're really to that's engaging the a definitely and clients, And those doing. trends foundational with existing

out adding called and couple driving last quarters of see on conversion. a opportunity we've is what clients of And lot we active the still

but focus marketing called will includes growth on client the a And together, the had earlier the work, return foundational as Matt also path the a things the out those us And so experience. that that's we put as future. reimagining of well includes to believe that to it work of lot in

Okay. a That's something kind strength, and aside markdowns on you of can just or some putting elaborate about of dig gross ask the the private the margin I David, of drivers into that? can just transport talked mix margins, really else? helpful. And product on quick that or margin brands product Is drivers. then follow-up lower you the primarily underlying side,

couple of I think components. it's a

I some our we at looking we -- talked are I couple that think we of strategic our and making also combining really around quarters of think of really back efforts. with vendors what that partnering vendor base and it's it's think and are described, looking I base a vendor making us you those rationalizing sort sure sure

part done the IMUs that we well. we've better drive just work is And that of through it. there, can so where that's as

better from AI the also merch and and inventory and team Fix the focusing is experience perspective. then the that of composition. And utilizing that means an then it buying towards -- really tools much inventory we've highlighted. on what is our It's composition driving

I as inventory being that's in as we're our efficient big the leveraging to it we're technologies a possible make component that think that as to well as sure buying.

line our And from Maria question comes of Ripps the from next Canaccord.

quick a of of And of or the of revenue sustainable the So like QX behind to be the some outperformance, talked talk seems could you especially little customer the as kind what we specifics the those quarters? new the per Can maybe next improved dive of look towards over how deeper side. about functionality about sort on you sort some -- couple some fix. of next be into just bit of maybe

appreciate It's experience provide up. business But that be ahead really here. we've we we're programs Maria, been able go that successful of we're Fix think reviewing want delivering fixes, we every foundation the question. we and is in strengthen things constantly excited and the we the about I'll receive I about just our we benefits. make our and insights and way we're ongoing shared the way adjustments existing that Matt to ensure been our is to absolute single single very mindful to that to really X follow the client Fix we've quick that approaching our that as were that best some talked David, ship the I when clients every is of of what programs paying and working immediate to they're business,

within a of changes had the almost and made those compounding were So Others beginning the immediate closer are were positive QX to and impact. have start now an of made some to impact. year

retention we've seen you AOB improvement and trend changes, the as we've Fix material metrics. ever seen levels of As hit we've well the highest as of in these the client as some noted, made

quantity, that serves to the experience each highest that aspects That right financial programs focus. client we're a right client potential a quality personalized for both And cadence long-term is cadence. the style and the the belief negative do focused It's has high-value, the these with thing business right That that right includes the remains reducing the to client needs. delivering client. getting best clothes, So of perspective, right those a every while to Fix our to we're fundamental and of from experience right and be the able clients' outcomes. our us healthy, retain the on

terms that In but seeing positive David of of I'll guide in trends into into as pulls forward, much our details, QX anticipates we're this the quarter. the forward let he how AOB carrying click noted,

add first saw talk I'll we standpoint, well. guidance for aim just that about just methodology a from to I Maria, in definitely we that's a think multiple initiatives across Matt then highlighted. reasonable Like achievable. and simply little and call the as just go QX, out Yes. is And had I'll better-than-expected performance to about bit establish QX, the think thing is I QX forward what

those And in through so -- benefited keep seeing AUR and that rate our those and initiatives expectations. from were Fix come where both exceeded

about, the we work, great on implemented where The Quick a of Matt seeing increases the those April, was that early And Fix example pricing is AOV shipments that one in were by talked and XX% mid-March. works. merch

So is bit there's really a in same was about. of performance the the what quarter just quite things

than In that in that, we addition promotional to better to resulted hone side. our strategy the Freestyle on performance continue

components And what few to play you're the those certainly, Matt's we've guide. quite playing When included a forward, the talking point, quarter. so QX forward to definitely about think in expect we I in

any yet. quarter. But to We'll a term, FY talking couple not about. guidance guidance you're we're think 'XX longer If next of provide specific big pieces providing around sort of

driving and be we expect into work clients more engaging and to marketing First, highlighted. continue as expect all that work into that had the in that's and we that's and 'XX active QX, down clients remain FY way, sequentially highlighted, more focused we in Matt about the QX on we experience why a that reimagining to them and dynamic

sort work across benefits back we've 'XX. to of And to level, overall that drive business get expense the in FY XX% expect side, a We've called gross that we our On margins P&L. been able out leverage margins. done to the and the continue we of to lot of gross into

and quarter, past. are in where talked an And look about about of sort the spend. base. perspective, I rest back QX we 'XX in spend remove the look on able from to the spend if to this been at we've know we you if annualized then are SG&A FY there SG&A we've million of And $XXX now, and go you where expense annualized over

standpoint, I we an where with think expense so are actively and we're continue And we'll really from to that. comfortable manage management

and out both got balance and called cash position. sheet, a debt, positivity adjusted we'll the healthy flow EBITDA necessary we'll focus I earlier, Matt to as to do And we've the while that no continue investments future. that and free to balancing so And protect on drive growth into

helpful. it. advertising is maybe That's environment? you Got a highlight intensity? quick around the very share And Can update competitive maybe an there follow-up. the on sort And to spending just anything of

repeat could Mary, please the question? you

kind Can the highlight out would maybe an the update you spend around of is environment? competitive dynamics or competitive there? advertising sort broad on there sort of sort of on anything you share And of of intensity the that spending

Yes. Happy Yes, answer to absolutely. that.

into maniacally our we business, client be of lifetime And they're know, foundation segments X experience, being of an that's us all period you so that the client customers We're us when part over continue as longer our methodical extremely and the to We're a enduring on which high value a we of a characteristics with demonstrating time. to relationship with extremely we're being targeting. bring in spend. as strengthening So of terms focused franchise. of client judicious marketing and have the healthier

we're we're the through the we hard right the a that at right speaking to manage people of market. in competitiveness right the prospective with time. There's or attracting and so that message media to continue spending, can lot the to make do working tactic on right clients see sure aggressively that We

evolve job optimize to we each our the as doing that the what continuing so mix, to is can tactics against our continuing media media just budget in a objectives. most delivering in good our of media think shared I team leaning I there, our of make

the we the encouraged gives bringing the are acquiring, our in terms are positive confidence we signs in and and as that think LTV clients strategy RPAC client in, I So clients of that well. we're new that forward going the by us that for

comes Instructions] [Operator of And from question next line Bellinger Mizuho. our from David the

last It are a all QX. active And up moving on ad one. maybe year-over-year. and looks is down on moving guiding higher the both like to a similar XX% fiscal level about spend And just follow-up year-over-year. the those number customer sort for of you're

on us new walk through customer acquisitions. just you talked headwinds maybe is that the So about

spend So base, is higher order if ad further customer a maintain potentially your in even to dollars even rebaselining not here. there grow from

do level how ad XXXX think required we Just in of spend the forward? about going and

the David, it's Matt. appreciate I question.

So And David, details value additional over and believe in sustainable long attracting customers. term. want foundation if any drive the in to our high client growth on the focus we really I'll reimagining of experience priority higher strengthening lifetime us at the with And that start will client help attract a and retain jump But primary terms to level. remains the you us here. new acquisition,

purchase and LTV and as continue remarks, frequency. acquisition, RPAC into that higher also they prepared offering the to and our the we a as media because the know both I customers. seeing to that go do to that for market to strengthen gives from shared higher whom just in and we our shared when optimize we're reach strategies, just to and our mix and value I we have us as these shared, efficiency new out channel evolve order client brand acquire additional And So program confidence resonates, as we client right affinity, for

rigorous our where a that that at towards continue move pretty getting analysis where to return of a as ad in the of as is revenue, on percentage -- terms based it of is. will So spend we on optimize investment what right level,

higher that to day, go that with so fixed to we out the spend to them. place clients at team we acquire the week new can every get with And see So time. gives when us confidence the with AEs, we're reviewing the and right more frequencies every right that higher

out So how moment pretty it's is confident at But again, to that market execute in shared really something that's going we it. as strategy previously, order evolving against over our and have the the to in I time. we're team

The only -- Yes. thing

is what would highlighted Sorry, Dave. marketing seeing approach about that just LTV I add allow about talked that more investing us think think only ratio. comfortable it the the signs to The that in is LTV we're side marketing. on is I the now few managing sort to investments, feel of quarters the more methodical I last taking right CAC And encouraging we're thing over Matt we've and to an

around back drive we our sides engage what that clients. I that we I engaging tie and clients the to focused higher sort experience our of creates earlier of our client dynamic why because higher LTVs well. on been and clients the business to loop marketing the different it healthy provides of had of that's foundational clients efforts And that how said our a we we've drives really it really and of the can think our call those reimagining would really LTV a also more of in ways existing confidence this sort of can in X lot as that work will more existing

progressed? have seen seeing and any talking quarter one, consumer, in you even across Then Understood. base, or of update second you're but on the Just maybe or play differences have a my companies income more the widen as the been customer out any of that between lot upper your segmentation? what That's more question, the splitting helpful. the about lower very a our middle macro

in. jump I'll David, Yes,

under environment, think think the material So take moment, not ample any to in remain a but from category the consumer. view ours, remain at terms of They what does impact like pressure. seeing we're that U.S. to seeing of I do macro the impact discretionary there cautious in the I reason we're

I the trading is is higher at in down noted true think moment. that particularly income being households

that with We better. at also, our with of remain have And teams every macro any client we within what regardless of the I've to the conditions, not where seen our base our focused serve clients previously, work day is are control. We -- current moment. on our shared as our

manifests with and our clients. results we to deep conditions, regardless business. Our best our just the our of terms strengthen the we're the and the most relationships our having we're in the judicious foster in of focus intelligent of it shared And doing we'll that work strengthening acquisition foundation seeing that client to in pricing, assortment experience and be enduring

in what on. team that's my So our way is clients, a best is environment, delivering focused tough navigate mind, the for our and to

With today's that, for further I participation conclude does in you program. the no questions at your Thank queue. see This conference. the

may You Have great all day. a disconnect.