Boot Barn (BOOT) 13 Aug 182019 Q1 Earnings call transcript

Good day, everyone and welcome to the Boot Barn Holdings Incorporated First Quarter Fiscal Year 2019 Earnings Call.

As a reminder, this call is being recorded.

Now I would like to turn the conference over to your host, Mr. Jim Watkins, Vice President, Investor Relations and external reporting for Boot Barn. Mr. ahead. go please Watkins,

XX our as afternoon, Boot as you These the XXXX to the remind Financial Barn's for statements judgment on copy Jim a With Good Barn's forward-looking presentation after will Shortly Relations and like company's available certain Executive today press that section this statements Hackman, Greg earnings joining to we these me Conroy, reflect are will Boot statements. we call replay this discuss of days and first today's of call, of Chief in you and a everyone. of you. make Chief on would statements. and for website. you Officer; should Thank forward-looking undue us results. today I expectations, President in Thank may release the not Investor Barn's Accordingly, the actual are on number current from be quarter bootbarn.com. available differ Officer. website section business. Relations forward-looking at A of place recording call analysis Investor on of only today's materially is a based Boot Barn's factors Boot end affecting results fiscal reliance

new to President Conroy, alter as call not update our included now you thorough refer or referenced any SEC do Jim? For Executive our to any be a information, and the obligation first forward-looking the our made Jim statements, as filings and regarding of over statements otherwise. events, in discussion well or in Officer. a we the earnings I'll uncertainties the forward-looking release, disclaimer Barn's with more statements future to turn whether and Boot quarter Chief call on undertake result risks the associated of is that We to webcast, as with fiscal this XXXX forward-looking disclaimer. conference

be proving call, will review detail. Jim results our then a our us. and good our On for of in review an Greg I'll Thanks afternoon. performance joining everyone initiatives. and update more of financial you, Thank today's strategic key

Following Greg, pleased your we'll to with open the up We're fiscal questions. very XXXX. our for start call

Our first up expectations. year-over-year our and a results basis exceeded were on significantly quarter

to execution in increase reflects with of over successful exercises, a from XX.X% in the strategies retail we a have grew and with recent quarter and a sales our Our sales of merchandise of improvement double-digit favorable our several share of fiscal quarter. sales quarters combined sales performance margin same-store point a XXX the of macro-environment. the the and basis place $X.XX per our same-store XXXX, earnings stock the on put contributing stores past more fourth basis. in almost grew e-commerce $X.XX grew in option Strong XX% consolidated benefit Consistent tax

make continued During to across like now. further of would progress I growth the we our highlight you quarter each which four to initiatives, for

with Let's sales begin same-store growth. driving

the broad-based The growth by of with product in and growth the first the boots. in coupled our mix particular men's in marked posted aesthetic, and our work creative we great is major with of consecutive From category growth producing saw with country strength apparel, work fourth western sales the strength ladies quarter a The upgrade for outsized Once the quarter in positive in changes that boots business again, every at across in sales quarter continued stores. positive results our results. retail followed same-store quarter modest Texas. stores the and apparel perspective, our western fifth stores and media marketing

traditional us Core customer CRM West, new in more strategy. We've to this customer. which all effectively We've target extended to to our and Work align our media more marketing segmentation assortment our this our segmentation with of each for by be to merchandising develop of our been of with digital. segments across fashion is spend Driven continue marketing customers. allows tailored our Wonder brand We product Western, message message the efficient and a and connecting each curated also analytics, and marketing this involving

now consistent and Our with strategy the life merchants to segmentation bringing are in developing our stores. assortments that

our For brands, by displays customer in-store for core we stores will a which more fashion-oriented or historically target apparel in customer. primarily are merchandise you see example while intended with integrate multiple many our the merchandise that to brand, now in Western

the well. assortment we customer additive to be will a Wonder fashion-oriented see store training merchandise associate to our operations next we platform. weeks continue over few our store the Additionally, to as From of enable more benefits shopping launching West perspective, online of

leadership Our using associates training drive to to in key service improve store platform is to order our deploy metrics. field team customer and this performance

branding are our of the We in of signage also streamlining the and process merchandising. by consistency upgrading in-store our visual improving our

in Omni double-digit increased quarter. leadership. our in our channel our e-commerce to initiative, Moving Sales strengthening the second business

In driving one marketing increasing site and addition our Irvine, and low on unprofitable into drop e-commerce now eliminating trend, of this investment, of return effectively ship work expect is by our brands and centralized in we've a going good objectives on private contribution we improve costs. will overhead during center e-commerce progress positive year allow from to store efficiencies to business the California, to this penetration efficiently. reducing of financial healthier our to our sales We it the by which Organizationally forward. e-commerce help more expect support the drive margin duplicative vendors or us fees quarter our unnecessary reducing online, and items, improving this made team

have all now managed is inventory one our team. e-commerce integrated As to that sites by a access a reminder, of common

made conveyors several and management past installing we've by months, e-commerce handling warehouse operations new During carousels. in improving the progress system, product material our a

this We weeks, be search. the the improvement have sales finalize us which to for fully expect coming holiday enabled to in prepared upcoming

private offering developing private product high-quality portfolio. of the the initiative, complement offered third-party branded Now to We our by penetrations remain great to our continuing increasing on brand to by our brand assortment vendors. focused third improve strategic

XXX the continues increased In XX% quarter, tremendous For as design fueled points hold moved boots we've in Cody as past the of number first our positively and and remain boots, number private its an and and place with very Lambert, over outstanding in and base. and to accessories. brand of feel our we Barn four now Shyanne recent Miranda months September and worked Miranda and the We music her apparel. James basis personal year-over-year three female a with is country product conjunction a by to authenticity that the view than responding new to Cody apparel her James several has coupled our our our the brand country music of develop company. number up represented been our with both one launch deliveries highest will Boot that sales. to line in more artist. customers with natural developed and strong our customer have brand has as total by been the Shyanne Miranda Idyllwind team early world line star fit penetration partners

in-store Idyllwind includes pictures a We with that a new reaching plan launch campaign, program. marketing broad will ambassador an comprehensive employee and supporting signage and be

fall. will very premium the additional of apparel a this exciting new accessories. to new customers base. also brand fiscal plan to We're the the introduce current also about boots, while is exclusive and Barn excited out we'll customer part Boot marketing new to our offering growing work experience intended of year of our Our roll and styles fall that to balance work Subsequent launch attract something the throughout as we assortment

initiative fourth expanding our store Finally, base. our

to years. ability store double continue the openings attractive We in our confident several returns to count remain store on next over see new and our

Lone prior expectations. by talked Woods new adding or now our acquisition is augmenting than are store The acquisitions of we the payback calls, new drive about tuck-in we sales. process on execute Star and our completed recently opportunistically. on tracking we more in stores better line As that Boots, We've opening

We've acquisition as annually. these from in approach store can units new of future develop that We While quickly sales us we meaningful get to this plan operators a to stores us have blueprint on new combination a look market. local a by helped and still for successful new grow allow tuck-ins and XX% openings growth utilizing early, of acquisitions. drive learned foothold

to us to new for great believe store both grow that existing stores, continue development opportunities and We present and profitability. acquisition sales of

to our online retail to business, underlying for second Turning good above our our and are the weeks quarter, well. attention We both and business sales current XX%, in slightly are feel through first and same-store bottom-line achieve of of the top five strength the well-positioned sales stores our consolidated about our targets. performing tracking fiscal

to over call the turn to like Greg I'd Hackman. Now

XX% increased Good to million. afternoon In everyone. Thank quarter, you, first the sales net $XXX Jim.

sales As XX sales months. sales in Jim contributions addition from XX.X% XX stores of the past was growth an the mentioned, increase same-store over by driven the and

of the net was first Operating year XX.X% compared the three During sales the points occupancy in in states. to net compared count XXX sales our profit buying a XX.X% or XX.X% period. Gross increased basis six prior Texas end from net $XX.X $XX.X The store quarter prior or added at of period. margin basis XX.X% XXX of million the in in to of stores resulted bringing $XX.X the XX.X% basis acquired million Lone profit the leverage and stores cost. year increase sales gross Star point to we XX of of or XX XXX in million stores in for point quarter, of merchandise including to $XX.X or in increase million gross quarter an net sales expense profit

quarter share $X.X X.X% the $X.XX Our to or per compared share, $X.X income year diluted which of income prior in or $X.XX related compares to benefit the was income Net million million million $X.X includes year sales when $XXX,XXX net for period. of prior diluted period option the the our This from guidance $X.XX. or in $X.XX or in per operations quarter of net X.X% of share to was to $X.XX exercises. compared stock tax per

store inventory was year. an last primarily decreased support added inventory at compared to increase X% rose volume the our over a to a ago. to consolidated last merchandise to inventory balance purchase XX months. basis sheet, initiatives as exclusive Turning $XXX warehouse the year a driven inventory average brand basis, stores to On our increase our X% for compared million approximately on an our by as The well used discount, comp in

had $XX $XXX debt XXXX, $X of and including As of cash a June facility. credit leverage million our net total debt was of X.X times. $XXX our ratio had we of million We million on revolving drawn outstanding, XX, million

for to turn to like fiscal I'd our outlook XXXX. Now

to $X.XX have grow $X.XX diluted XX.X operations based million and of continue per count a our We average estimated $X.XX EPS full $X.XX be net year. to on shares share of mid-single sales of between income for outlook XXXX per fiscal to income raised to weighted We an expect of $XX.X from $XX.X million fiscal digits from $XX.X now the a million. and $XX.X share to same-store to range share for represents expect This million. million, range

look be last in $X.XX the at we As second year. single net XXXX, we share to quarter to increase of per diluted sales quarter expect range same-store We of estimate compared $X.XX $X.XX the to income high per as to second compared digits. fiscal share

Now some closing to call for I'd the like turn Jim to back remarks.

quarter positive has our our current Thanks with that continued results very pleased quarter. first momentum We're and the into Greg.

in strategic be over long confident growth year continue in initiatives execute We our four ability to current and drive the to to on term. the our fiscal

wrap to company. continued and extend and Irvine office associates dedication distribution like my up, personal stores, gratitude hard I for the of call centers, the to their work would the thousands center to we Before in

Our performance of efforts. a recent certainly is your result

open Now Christy? to take up I'd like to the questions. your call

Thank to we'll from you. Boss [Operator Matthew Instructions] First go JPMorgan.

is Your open. line

Congrats a nice quarter on guys.

year? front, on the the margin drivers full maybe extrapolate quarter question expansion selling of best the on the of break down between remainder you margin to and just merchandise can -- basis first guess margin and just way expansion price XXX for the So I points the first brand gross private

we points delivering Greg. XX points roughly year less and that at of and and little in a year. mix QX wanted sales those full XXX some it's were promotions last if talked more work of work, we've they commissions we in this looking selling basis promoting of throughout We and paying again saw were sure XXX last started XXX been our QX the year. price roughly it on about our Call private doing we brand. points was that Matt a last that basis from fee and initiative and expansion QX that call We were was making basis we

will for good to that margin you much So last our XXX points higher this basis was in basis XXX tougher QX fiscal QX. points if year by compared example year becomes 'XX of news

to going that's difficult. be So

think penetration prices in well So that as year will roughly to a points where a on be we we're work we're and XX continue the expand with increased bit by that more driven margin basis money. raising private work can the make brands we're as doing to doing on e-com

lower pressure brands a purchased two to like take have year, bit also or in companies We Barn We to get margins it some and from of Lone store things in there Boot so historic those Star. sales our the up. freight. this two drive us chains have Those new private and chains get will prices time

margin for to continue we but year. the there, headwinds some there's see So expansion

I seeing more follow-up, the speak gas some maybe of target the Jim and and operating markets fair mature business guess you oil multiyear you regions of just still do see Great. that a And over in trends when margin larger picture, time? your you're XX% the versus then for

Yeah work to remainder country. positive Every bit and triangulate has has business the been in of work nice can environment FR terms boots, oilfield well circle a apparel and product we strong virtually quarters some the ascribe in which boots The in oilfield and every posted business at seen first categories, a rate growth, the the EBIT I'll specifically and two that used than I margin of the technique for region, the back oil used consecutive as a district and across healthier you as gas would been want well. is Greg pickup better have to now in often if had to same-store sales. as that of the take

for the has you that's So I out, quarters. to us, strip very rest if were consecutive the nice of tailwind a nicely two even but that business performed think for

Greg will the In of rate, EBIT terms margin take that.

we last guidance our in points at the our get would if year, Matt, look range, think mid-Xs. to So XX I back basis a that margin of and X.X% sales operating you get into grew to you number roughly you

and to nothing XX%. structurally XX% it continue basis prevents call another rate there's XX operating So get that points to or toward that expand us margin from

That's of great. Best luck guys.

Thanks Matt.

from And Baird. to we'll next Komp go Jonathan

is line open. Your

Yeah. you. Hi. Thank

the of ask you to bit to little in still on QX First in up how the only you sales strength the the same-store quarter guiding digits business. a for far projecting to so mid-single question think for and year. I do mentioned date, quarter want dig just high north trends the more single XX% given the about know I running

on So behind that? any updated thoughts thinking the

to had the consecutive that great earlier. store same-store July Sure. online month an and very, be margin of being about We really rate two in strong feel promotions alluded to solid in our just and with improvement plus sales quarters both really and Greg continues trend stores merchandise very the

forward, prudent I everybody QX a QX how the we in bit project think into look we from we in that more difficult QX, sales QX. we As gets difficult comparison perspective, get much with and as do the business recognizes year-over-year a more and be

We the to counter. pull are continuing off promotions

the as So even that a if seeing really getting. e-commerce pick we any our our profitable some up promotions. stopping little business, in sales trend bit profitability cases prices and nice a we're more of our piece business In we're in that it's illuminates business of raise

I the that with incline sales steeper quarter. and third and certainly fourth So a as have quarter prudent we we I go bit our same-store be think it the through guiding summarize, if would acknowledging little will conservative a

did quarter bit year bullish in we last view, Houston. get little the second a hurt more the If you by took hurricanes a

So we'll be cycling that.

business difficult had also got We in as time e-commerce. we into Christmas

for more launch cycling for to all So we'll as the and wrapping put kind we same-store half the drive things at the that we're back of we're for and number to be additional feel the upcoming business us Idyllwind work take of we about about that ammunition want difficult we sales private very out a excited than comps brand the of look that forward, know more those just and we our good year. going

follow-up, you a and the targets a upside QX like it maybe any the then remainder just I as look it. of and a Got profit the for from about year, moving call if for change updated at out operating I essentially want part? profitability when roughly correctly maybe we're didn't Understood year in stand terms if looks of to the the there's got to outlook. and clarify thinking that parts

we through got it's be so at thought single you're we the QX point. than worked guidance the in really has digits original did beat, develop right. and high would other Jon it We guidance we when QX and Greg, we changed actually QX and nothing beat when from our planned this

Great.

Okay. And the about of maybe terms failed if on on think last in sales show you for the any of comps the upside kind to just the as were look sticking guardrails how me through one guidance, versus full-year for your the outlook, year. flow to year upside you any of balance incremental you

look We structure roughly sales at that incremental target of how on flow we margin our help? and structure so the flow Does given through. and the that's tend through XX% expense to

All helpful. right. That's Thanks Great. guys.

Thanks Jon.

Keith Peter from And next we'll Piper go Jaffray. to

line Your is open

a Good Nice afternoon. results Greg, for question cash Thanks. you. flow guys. I had

executive of purely rolling could a just was wondering we flow it million -- there's $XX about was really of the I function there QX in increase. in guys if You think cash anything timing. year-on-year or forward

to from benefit I stock operating We from did with we about but aside performance. option $X We our pretty growth exercises had leverage tune of pretty on meaning inventory that did QX it's normal in good the think million, payables. leverage get good

is to there as we think or could the own forward inventory a directive anything your be as more that bit it about to going that -- there it on trying should little leverage, And continuing drive is you're center? fulfilment hindered

would we'll robust little continue I a bit get quarter say pardon that had this just outsized given purchases. our leverage sales probably inventory Yeah to me. We on leverage right,

you this So model you of it. know can all I but not some think

about materially. to an from piece that and is grand on that this vendors of small to to inventory second inventory number year. said Having incremental objective performance mortgage in the overall center is point scheme entire Peter very our balance. virtually that certainly And inventory levels, your our It's a eliminate

helpful. and for running now feeling analysis more lastly segmentation the and And the the there Very is strategically Okay. Western a with that maybe the that of you're now one am Wonder you're work Jim, may be core customer others. seeing then with maybe you West, a that than of surprise. bit leverage curious lot seeing one some upside faster or of better where traction a that's getting those those little I

we at we customer we slightly this if we and the this Work started oriented to emerge. historically, more merchandizing to always more different and Western younger, think see Yes hierarchy thought analytics, our and I being fashionable, female look started had across about see

West couple we nicely, and business we Wonder extremely a pretty and today, called large So if of a business consecutive out off now quarters. three the which split look we is work at those business growing

than past but our look see apparel had the quarters Western and of calls, couple core to back average, to really the to ladies in in business in West had has thanks past improved strongly is been decent Wonder apparel of right think been that a of West a I impact you have segmentation business nice would margin comping I business upside at ladies you a put rate is Wonder fantastic company our the went has drag that that together. western if all our of now if part the margin greatly extremely buyers quarters particular surprise that the business the and business the grown, different some western assortments great buyer, higher much is that

and database that than more curated particular assortment, in with about very been strong we tailored has message go that active been on specific Our that really our had with feel analytics really group. a after area able think social the much and marketing of customer or marketing I to ever customer

the has So see as West think and surprise well as nice been excited I weeks its online couple launch to that Wonder the has bootbarn.com. we're upside both of next over the part own URL of a separate really of

and a business emerging been going really our excited much see could that's to nice that grow forward. of piece how So we're

Okay. That's great Thanks a and good lot luck. feedback.

Peter. Thanks

Jefferies. next we'll And go from to Stichter Janine

line is Your open.

Hi afternoon. guys. Good

of of you the Is local you tuck could mentioned number units acquisitions should strategy potentially these then very part you. along the players. stores anything done potential us line percentage give learned same getting by with sizeable the margins more ramping and from supply growth in lines in a of in could grow You you average. there forward. company acquisitions about going any being How of we And getting stores? the stores you’ve think number this Thank just terms

or bit our I acquisitions division. ask more be by if say little literally be so two really that the to have far it's a new estate or to the be that a would that looking tuck grow would up we want a stores a is units. open to thirds year two and evenly. new if said tuck would up one me, stores the the more market first tuck to new best be we've guess and or or thirds at we expect balance and get or in. of XX% open guess and two, and my plan vehicle market three were more market this real on specific what's stores roadmap so would in will those balances organic away to particular balance entry be don't or go market I in. But going again in acquire three that to four or If Sure, if we're piece I two the versus were will of We're

good stores new terms larger is brand a of it's these essentially learned estate, what not acquisitions, have easier of real looking them very as integration bit new we we're a companies because be The at integrated. to that the In question. from

get manage the Boot a technical a the our ROP So business that a information first that, integration to has the right to we and etcetera there to sales has able happen, we standpoint having their in performance Having them from take of RCC in is integrate prior and and acquired to in frankly marketing a acquisitions the buying virtually technical gate. Sheplers put as agile made has over very out businesses said that's lab on of these quickly. company still those and from and terms being even day, it Barn. pretty and operational We perspective

So we feel ins. great about tuck the

We history performance sort some a already look store have when new sales a that has at of we in. guaranteed

customers feel have accelerate about to particular market We were volume, store if that put organically. has database us and in or store it market in to it. with can typically we a a great to we We higher that average their it already brand-new enables a their would

you. Thank Okay.

next Chen go Oliver from we'll And to Company. and Cowen

Your line is open.

you. to Thanks Maksim continues update a the your private your is for Thank our brands channel? some then questions I as us as just separately strong was penetration you and towards and enhance minimizing out we for Can around build And risk? This grow. websites, you taking guys. label Hey your out wondering to on you build Oliver. quarter. congrats Amazon markdown provide guardrails can continue on strategies and

basic into private relative all, type customer. the and pretty more in our while West think is of Wonder category view little private we West, a about were more little we there this the or Sure, first Wonder to even fashionable periods the out yes are this I more brands bit bit merchandise replenishment that more think pushing all first other brands when overarching retailers on of the

carry you that a look tend those quality at specifically basic. the to keep They we're perspective some replenishment brand. the to extremely are overarching side. are curve There high items. brand best products the almost still are in on private we all your brands type of within From question, retail, we If pretty fashion stores steep pretty a own

So to tend design we major risks from not take a standpoint.

in internal business piece fashionable Amazon online perspective, the relative important we're about of brand the sales, stream bit our can as some piece and EPS focusing great drive We've other strategy marketplace. the an with terms still they more including money Sheplers on a and has ability we more while each sales surprises underlying and to off of player taken that from of of been evolve. country while online things outfitter decades great piece feel at that bit, do that of that the growth. some looking biggest what brands about online, Barn we're a business business good continues actually that of feel we a but Amazon at are we've on things our brand of Amazon Boot direct we omnichannel On second line think really with our to with of still we compete to category piece on profitability marketplace We of now the history Amazon, consumer that and quite and very an our Amazon. we've those and alongside whole an it's a right And site, online some top standpoint. as actually our making the From get hurt in respect

it. Got lot. a Thanks

Maksim. you, Thank

And to Paul Citigroup. go with next we'll Lejuez

line is open. Your

Hey thanks guys.

the performance the you during yet weaker percent stores period come can stores peaks? all of last in look of impacted if have years, was their gotten versus the previous what about that over many lost markets, those energy back Just volume have the talk not how curious, at several to the you back

question. good a It's

it has biggest all to again have our up stores numbers state year go of think we business the and few of is which by soft this quarter has line roughly Texas year. them think XX% quarters this and I most relatively more back the I prior and some gotten of

some North were from today growth quarters and some really to room you still were it's but Dakota think back was. we're probably been gap couple has fully are we off of it was I recovered, state strong -- watermark a other for high where now it's The the the probably from close to if have seeing was comp continue taking information

thing of oil the there where throw mix other The drilling around to into that you for country. we're is have constant the movement

So the based question is Dakota. in has of store particularly easier North on because conceptually drilling some to store respond migrated to a by activity the then

might vibrant get store but store the a to never still profitable may where place is oil activity back we us. So watermark put in the ever more a its store okay, a now again very that's former new and for

where question, about So perhaps your a it. to of kind that's we answer but are long winded thinking

Thanks Got to thanks. and also can any and previous quarters, quarter curious then credit card versus performance curious mentioned you're seeing the you this if your sales you. about that margin you about comment curious penetration make date,

not to July about example. talk in merchandise for going We're margin

not from and but that piece. buy of should of it's Credit for we might small premature that little loyalty to them think be the It continues a I have to is a it. bit about our It's piece I important tie they customers, in pretty otherwise a that. perspective business. am have comment small. sorry gives on those quarter open small furnish card to be a

changes couple the really to major add if last just a standpoint, would versus eliminated of I anything don't a year calendar that any year-over-year promotional days we versus thing one is maybe The year. from promotions of prior have

what and year. very quarter, calendar to but it about specifically margin like to it's comment merchandise rate similar marketing by looked our in probably large So looks the last

was Thanks you and Thank that. and luck. to good appreciate I follow-up, going

Thanks Paul.

go from Tom Wells we'll And Nikic Fargo. next to

Your line is open.

digits. it my taking I was give any I was you everybody. wanted eCom double was if I about the additional eCom the could in between any Hi the differences to if was quarter in for what Thanks know Outfitters? performance bootbarn.com wondering said or or or also business you Country and meaningful wondering that penetration beyond that ask question. there up I were quantification Sheplers even

line So in XX% of eCommerce on that. an business percent in sales XX%, our roughly is that annual was our with of quarter as particular basis, a business

brands. it's are to the we because performance, In terms try customers of of the movement look brands lots at relative anymore seeing between three crazy of different separately to

less Boot a doing extremely seen we mostly is a three prefer. kind have well from to is much basis smaller still Sheplers So on those the doing but is migrating look we've to we business Boot us, for brands which at Barn because consolidated Sheplers customers Barn of do well.

bootbarn.com importantly investing rate on long-term that and that's we feel more and marketing we a and value Bootbarn customer we're the XXX really behind. of given feel we country effort slightly maybe more brand that have time the higher a We better margin stores and the fact around the plus have

roughly if the of about, e-commerce the said So eCom posted our penetration almost stores our were think business. XX, we XX%, business you we

plus can you bit fact were XX from So e-commerce to that that we a little perspective. the than get roughly better an

other talking the helpful I That's follow-up, don't categories, in you're different be wondering why wasn't know said and I quick category Thanks. modest the growth maybe when categories? nitpicky I a want Western but as to quite Boots about some just that here as of only you was then too robust just

a great question. It's

some has on the the it be our oriented particularly this It's trend into boots, fantastic buying or more assortment of to been we've lady boots but basic oriented boot product happens that's have there migrated the not is factors the lower fashion in the where to boot side that business where short-shafted we of or customers of store. around ladies of piece migrated have and One piece a goodies the AUR. of that a

as about is ladies candidly to So that I of that for time, of us because and think than a part of few the and it's have a continue of degradation of been for rest of just quarters price the business that the full has tends to selling bit forever. a growth selling additional that sales price, still it boot lower a now that forward I product most probably portion the that get business a is but will at store expect opportunity softer going an little cycle, that don't retail

and can the I look Boot look more if see bodes get So as well Barn. Western mainstream you at there lot fashion influence a what's oriented forward boots trend and additional happening it think view the for that's in broader out brands you future as think of of just retail that opportunity and sales I paradoxically quarters an I I growth us for to in in

luck Best right. of rest year. of the All good. Sounds the for

Thanks Tom.

from Mitch Pivotal to Kummetz we'll Research. next And go

Your line is open.

favorable don't macro questions. you taking know about don't that other more macro. or prepared that Yes, maybe was thanks you specific are for you whether talked and gas agriculture, my drivers I know manufacturing out Jim remarks comment in there to a tell construction your me? oil call to I like trends and

and one. for biggest us gas Yeah probably I is oil the think

the employment now broadly, you course that's traditional a business. seen and of I been of worker of is think big work growth growing level blue-collar kept that the and think our country in across and the one some more As part that's of we've our employed

different of difficult you private private break but initiatives I the was guess, would penetration the any your on in Sheplers. to not label How better I penetration quarter, label. eCom label, across said one way drive though then breaking verses XX% the that out it even eCom your piece. And there, could Sheplers you of eCom, you Is penetration concepts mentioned at there is is you're private what the lower stores traditionally that to out guess grow would the

Sure.

of are is that penetration businesses reason all of the from honestly part there. for denominator and perspective lower eCommerce is brand the the private a So

online vendor one in because have can a inventory of We also broader much consolidate a we and ship lot we location product. assortment the drop

broader the and well. much brands the been XXX I by probably our that the in that basis virtue store site XXX as the pages really I lending to of online. the online. a to were so we've good they think get standpoint been business own the merchandise target trying coming we've as own said will ever points -- from to they fact Having at been respective very stores think we've penetration is don't their their same them So a year on just assortment e-commerce same had the in giving level that and it section

there, that of done that of make assortment sure is increase the the broad I getting a of channel us representing nice vendor house come at some partners broadest can all to to that. is the has and team job online and really of online we think our customers our So that but have we a brands also that piece want

it's And Is based closed way a store probably it. Got any year? of XX to cadence kind a new and additions? the there lastly know the net help you quarter couple stores. give then the of any of on store Greg in guidance and the number for I the

being say ads the relatively new throughout I the guided we equal Mitch would store I year. as guess

in put we're add but quarter a base QX, of additions. going First terms QX to pretty last few into in balanced

closings? on And the

at was we've move Yes so, the we mile one other if it year a had you have it that Dakota. market. was former the was natural opportunities planned of for It and every look quarter. the the after the the close the to then planned a exploration from and in stores of year-end middle a the was one and store stores and Sheplers We Sheplers or closed to up profitability come North renewal in stores lease

those as leases at look we So to. come

be So depends our roughly ability expect I plus etcetera. to it stores, would new us to but renegotiate on leases XX

you. Thank right. All it. Got

to & go from Lawrence we'll next Coker Palmer. John And

open. is Your line

you bit I and far that about analytics productivity shop just the the the can a just you you dive know good strategically deeper little us little the of guys. and Yeah, far bit or year learn talk there game, curve continues a about it's talk another the little in to guess expect sense the and more I discuss only a Jim, you little Congrats as as quarter. leverage that a of as give where two? eCommerce say you that be afternoon a in bit Would would on take as CRM as

be eCom portion of entire do, the is CRM being really to for customer database with clear, a the to just Happy it. Sure.

As in segmenting our that pieces message, we've tailoring direct-mail groups, customer to terms are better particular list. to specific email sending started get of our

all if metric and and we customer, you every assortments email, you're catalog that in performance you and in not seen represent and work-only a So improve. represent email in are our way. that an in sent put our virtually cash when We've you're that together every direct-mail online getting that built

better less with engaging seen been abandon we've media We've of them. own has because open More each engagement our following. We've So nice our segment social their are those email customers rates. of on and really people platforms rates. now seen getting

for more slightly efficient consumer you different segment. put that be when marketing to each all think I we've with together our So able we've mix spend, media been been different

penetration it heavier is West a Wonder has more fashionable, and while of visual television. So more probably

mind and Our a want preaching product be has in advertising. as that of understand customer we work a a in much line which to to customers top heavier just mind that easier customer's radio

group of able evolve merchandising offense to strategy started we're stores but marketing about I we that feel a area. been groups they to seven your it's deliberate belong identifying looking million our very at and in customers kind So thought-out both that sales and point with each and which the how we've and and in business, still think mounting those to learning of our or then great

for to improve continue I sales. think opportunity and to get hopefully some us still I think more and drive still and early it's there's better

you holiday the can and Thanks. bottom of the of saying Great. Follow-up e-com impact? disruptions is talk far the Greg was and quantify could hurdle second half the line as last of you about anyway topline when core you of what the that year impact year as there we're

grew had Last year bit, while on total Christmas called quarter in that sales e-commerce actually which sales negative little same-store our we we call. out a

side we on taking and trying take care also difficulty Greg freight. were of expense orders having between additional some than $X center, nearly We call a and and labor more labor, picking had to longer. that's money additional We DC business the on of of orders that operational spending right million was because is were

had labor out February the and DC $X million call about the think third center back So called we looking quarter between additional freight on expense. and additional call of I at

perspective, our topline what From a quarter. negative same-store quarter. unplanned about of from Christmas sales expense million in to we're we'll cycling a in cycling that amounts an So $X expense standpoint be

look those bullish forward. to put easier So on, of comparisons are were both we if as I head my

sales difference the well. the end margin in or related in guidance does lastly and in is top you Thank and as helpful. that dime some primarily low the I assumption and very assume that end there That's is high all Great.

within the all It's of range sales.

good and Congrats Thanks. Great luck.

you. Thank

call look the joining today. earnings care. forward call. to second you speaking for everyone with Take you thank We on our Well quarter

you for That your call Thank today. for your concludes participation.

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