Boot Barn (BOOT) 25 Oct 182019 Q2 Earnings call transcript

Good day, everyone and welcome to the Boot Barn Holdings Incorporated Second 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. 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 second 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 second 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 providing call, initiatives. will in Jim, second our Greg a update us. quarter good then On for an financial review results strategic I'll Thank afternoon. our joining you key and and performance of review you Thank today's our detail. more of

gains for experiencing we will Following to with is margin The than strong top-line, that and expectations. country. the Greg, and questions. The across business the our same second call a We're in made basis XX.X% pleased fuel the grow both momentum year-over-year us omni-channel store results sustained improvement your represents stores of in consolidated merchandising, our which a margin. our double-digit operating profit expansion quarter income our healthy enabled improvements combination we environment very with by have along macroeconomic exceeded operating sales point merchandize XXX Beginning in growth with online. marketing retail This helped increased open more up includes in sales XX%.

and these We are initiatives. reflect they growth believe strategic of the results by very successful four execution encouraged our

a take same of me provide moment them sales to store an Let growth. review with driving each update starting of and

been positive size. ticket achieved Comps the now slight six quarters. was with transactions retail same We for store pleased driven the a almost growth XX.X% increase are in stores an with growth second increase entirely sales consecutive in Sales quarter. and by we in have very

marketing. boots in delivering strengths and customer ladies our distinct reaching results each for outsized strategy seen in positive upgraded quarter Texas have direct West. to continuing across focus boots The and work the media specific by widespread creative followed marketing posted men's every broadcast category particular a segments. And apparel. the to part accounts growth Wonder work Western tailored in a work and with of major We're western and growth growth work efforts our driven We in country We've perspective, success Once message three our apparel most again for ongoing and was and we Work of by communication mix product segment. apparel refine also our customer commercial in the on business. boots. results. Western, mail, our with the continue email modest again with From

bring us marketing Our resonating by attracting traditional CRM analytics well both all same to segmentation customers extension in strategy indicate a and have and that segmentation We both reengaging the marketing customers drive perspective, segmentation been From believe growth working across digital the to term. will long life stores. in this continue media, the to store sales new is by our who we've this lapsed. help of merchandising customer

buyers a scheduling also We've initiatives. to to fixtures customer preferences merchandise of periods in traffic and store to in-store From the continue the curated accommodate merchants of the efficiency Our heavy perspective, in assortment stores. operations benefit have enhanced many rolled out new segment. the we labor store see fit from to training greater associate and developed each of support

our across upgrading and merchandising. chain signage making branding the In more addition, the we by have visual streamlined uniform

Moving omni-channel double to increase our leadership. our business digits. in once the initiative, e-commerce during second again quarter Sales our strengthening the second

several we drove our refining search the strong merchandising ecommerce believe and top-line made product optimization, growth changes pay-per-click improving spend, more have engine actively We our listing pages. the site that including enhancing navigation

few Idlyllwind.com, a including customer specific over We offering assortment also Shyanne.com launched a each and curated past additional months WonderwestStyle.com to group. sites the

learning. they volume, with While for provide platforms in testing and lower these are sites us

are push example, cart For experimenting we customer tools. notifications, acquisition abandonment new rate conversion and with web optimization techniques,

identify micro we sites, to strategies we site. on successful core able these them on to expect implement and be develop As

purchases to retail to We are new with brick-and-mortar ecommerce our integrating for coupled implementing an customers digital also business. a our process further stores, in-store portal to our return

develop customer. process opportunities an advantage greater will give and our Our and competitors that keep provide new loyal us versus this save sale more autonomous expectation the is to customers, the

completed overhead in the these improve system, us season these fewer holiday improvements in center with completing new of and of helping improvements In work in a we costs by are and well financial and conveyors addition The our product the positioned carousels. contribution our believe the serve low We to omni-channel forward. better and material a a significant coupled warehouse have center items to the top-line have fulfillment business. us Wichita initiatives, customers installation duplicative margin promotions, fulfillment e-commerce management of unprofitable elimination handling decrease going this to

strategic our to brands. Now the our to branded third the developing we're quality complement focused meaningfully our benefit initiative, We assortment to our improve vendors, great merchandise and product remain exclusive our from to third-party the offering. able depth of breadth exclusive our high brand on of and margin. expand By increasing customers penetration

year-over-year penetration we was approximately of and artist launched our In total the than mid-September, quarter, second by brand more increased a sales. new at developed the XX% line Miranda For exclusive Idlyllwind, our represented basis music XXX points country Lambert. that

and that resulted been positive that brand outstanding Idol of this sales on is feedback has initial partners the lineup the an and resonating well. relationship apparel Miranda we early tremendous indicate are has initial in team believe and Although Boots her accessories. an and

about to fuel our of have life exclusive to continue Boot business. brands, We in dedicated stores website. introduce that have allow do brand brought our our the store special excited We will place improve but rolling to not assortment also exclusive work online. believe and and Idlyllwind initiatives customers assortment the shop Idlyllwind.com Barn penetration to very a by new only Boot this new we also will us Barn. at We're These developing fixtures the customer enable curated out to will we'll to

wear line In that wave a initial designed boots fact, shopper Barn. hasn't week attract just and exclusive wide. to Hawx be This work launch Boot customer The launched coming Wear, Hawx is Work traditional accessories more by last we an been of chain frequent historically the will bolstered a the of apparel in at weeks. brand of

we've the to needs James available approximately will basis store. our third-party The seeing XX James new of with styles our styles. Western will points the encouraged work we exclusive existing above brand Western James Cody brand the across boot apparel to This intended extended Cody will X be boot the to to the side work merchandize to soon of the customer. chain. generate by is are James work acceptance that brand. and are our our and our work be margin and expand Cody of addition In extended and include we Hawx, Hawx brand brand meet Cody is to number expected the are brands of X,XXX in work other company Consistent of

fourth expanding our Finally, initiative our store based.

the comprised stores Barn which During Boot store large in we opened volume new and quarter, sales one Tulsa. of dry acquired two were

addition new invested on payback our target augmenting with which been three a recently store development of tuck-in also the have acquisitions capital. year We

we a three-year are use these better tracking As tuck-in for group, the than benchmark a new store. acquisitions

new meaningful drive store to of annually. quickly openings foothold this us operators get in plan look a We acquisition XX% on believe approach we can coast allow to sales a concept develop store local coast. We utilizing by that as truly We new with stores remain units and from a grow markets. growth of a in presence continue confident to our to from the and national to ability new combination

years. of new over our next organically the store ability double both and With to count to acquisition, several continue we stores the addition the believe have through we

group sequential our comp consolidated the of number reported. no to the the primarily boot is the have are prices and through the had we boot quarter, same that holiday sale result during although last an on not same increase our our of first it store sales year's average transactions attention are as early did three in repeat first store XX.X% three the current improvement year, year. in just Turning compared October October to of sales in we business, boot impact weeks current encouraged prior weeks negative appears in This very the still above we

ecommerce also are cycling comparison last easy We a from benefiting that an October. healthy from is business

environment season. to now and the turn the as in to into positive the over holiday head call continuing, Hackman. optimistic shopping like the With I'd we Greg macroeconomic we're business momentum And

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

stock states. sales, brand by acquired year or to added per sales from XX and a XX.X% income primarily including diluted increased penetration. and for the quarter a share inventory. the bringing result stores store with which million million $X.X sales we dry period. in end the $X.XX The stores of exclusive increase stores, Gross sales at year result in Operating our second period. the count profit exercises. of and the a of the was X.X% price those growth full past net mentioned, or added prior million or as $X.XX XX.X% expense net compared million quarter sales more of or Star of compared During XX merchandise selling over As sales. in XXX as $X.X Idlyllwind associated margin sales quarter, X.X% in in per from XX% these million resulted costs rate XX.X% contributions The $X.XX increased prior of leverage gross XX $XX.X net expense costs basis our increased to store Tulsa was from sales marketing in or basis XX.X% This profit XXX Boots, basis increase Work quarter cost. or mid-year a million period, stores XX sales related months share in stores gross acquired physical to the two increased occupancy the result higher operations period. $XX.X compared Jim to guidance driven new profit or $XX.X three or $XX.X and share addition year the a $X.XX. quarter in includes for of income increase Net in in Drysdale buying of points of sales to million an margin of of the rate and of net expenses Merchandize in Long $X.X Income XX.X% net $X.X is in Operating per for year same benefit addition prior an point from a an compares tax from was of diluted launch and acquired as sale of growth option the prior the the to a point of the

fulfillment compared basis inventory to sheet. a On ago. compared This comp last consolidated X.X% a added increase stores the was basis, Turning XXmonths new inventory inventory to year an in Inventory $XXX X.X% year. support by the primarily to million Wichita acquired and in store balance our last the increased driven e-commerce business. on a increase and rose used from to at center to our

$XXX including outstanding, of As of our we September million a drawn of one XXXX, on debt XX, revolving credit total $XX $XXX have million million facility.

Turning outlook XXXX. for to our

and expects and grow full-year diluted to from guidance our third now X.X% Given we've same per sales our $X.XX a outlook our $X.XX an $X.XX XXXX $XX.X from income million raised to This on the increased to weighted to to shares income share million and expect revised and X% operations we of full range $XX.X the QX estimated performance for based million be store represents for $XX.X to million count average fiscal outlook and XX.X million. year. to quarter, fiscal EPS share have $X.XX $XX.X for now of between of net

XXXX, a quarter at sales the X% per net per income of range to estimate we be to look share we and store fiscal expect increase As to $X.XX share. same quarter third third of to $X.XX in diluted we X%

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

success about the the quarter momentum season, the and the of positive half back of second our during with pleased are We're Greg. maintaining and our year. through optimistic results holiday Thanks

of Barn strategies We Hawx dedication shareholder to base our and launches Boot long-term are to looking increase still our sales on ahead in wrapping to work hard In together numerous of Thank for thank care Cody to same James returns. store to and execute consistent come success. about store and the growth, like entire drive your improve and team excited opportunities have customers I to place continuing up, lie grow company. Idlyllwind, margins the are and take for forward you drive the we work that would to our

up to take call open questions. to the your like would I Ann? Now

[Operator Instructions] from JPMorgan. question our with take first Boss We Matthew

nice a the and Congrats momentum. on quarter continued

oil quarter, So guess income and guides the maybe have maybe bridge the gas the think seeing really current seven that'd And acceleration on in and quarter-to-date, chain? for between versus I five I to what guess you're seen market just first rest question comps that you you of I full helpful. a are could if you that the provide seeing be the the

which Well, driven, oil Texas being because West or continued Texas is and driven strong to is lot. has at and which driven against was least by The gas mostly Texas the partly or continued may a Sure. a encouraged cycling recovery above of went strong business chain we biggest last really the is above recovery that oil were performer after for the that Texas concerned also Houston us. year, market be the we and of market Texas not hurricane be course by by be up little as rest but of and are we as to

So that's them of for been encouraging kind us. been --that's

it In comps. had look, the guide consecutive terms three for of, now third we've as double-digit quarter, relates to quarters' the

this our very October this we in We is are in stronger strong comps quarter. to business total last cycle particular was year starting said that month and Having out called year a just as strong.

us. conservatism So as how bit have would of of little we ahead a there's we that business much about I say think

the crazy into quarter of into perspective, and volume the all time and a from sales, for we're Christmas weeks retailers. only are X.X us we is quarter, XX% year While about

a we're this how quarter. with just So little to trying bit for particular we be guide prudent everybody

think leverage color. one SG&A quarter. Great, guess can that then And your any third talk are for comp margin limit quarter that's just is versus in maybe for we ability follow SG&A to expectations you to about the leverage great should just X.X time there I the gross in through quarter? or the just point items particular up, in the

anniversarying addition QX compensation had do expense, did our insurance a that we is million $X well. be had that million, a million we than I full bit The we in are full we leverage million Matt won't big we that points recovery we again higher Those at a about on outliers last $X two that the last a be year. of a last year's insurance $X guess the then of as X.X will and we and terms expect over we to recoveries when little the incentive worth, year out that look based give in roughly in Yes. in year adjust really year $X guidance but

terms anniversary that in private in merchandise last that our some we'll in so did the of In we basis -- and that increased year terms to XX roughly brand gross good margin a news didn't we we'll penetration. yes, of gross of out explained boot two-week margin, October, of expect Jim sale to through flow margin, addition get points

will that cadence our boot very sale. we expect that it of last similar outside Beyond in that anniversary again was QX year non promotional be as

Jonathan will next Baird. We go with to Komp

follow look I thinking at wondering forward that they different when up the you've a seen bit to know understand dive just so same comparison your or certainly want sales, built outlook half. you're first trying guys. more stage there the building the forecast this of just year kind I each sense I and how think is of the to up. look your you little thanks five quarters, would and what to six on that about and you of a for you're how just recently, building two get from anything And comps, be last in hi, you're what that better store the at Yes, sales conservatism the back I

stack compare So, was posted that of plus XX ago we first, we one, a over of a quarters the plus two so in if think a past a XX and plus year year the roughly about on two right, QX couple stack. year

you against plus high a get XX end QX we now believe year stack. in close two and year again plus plus range plus the pretty posting XX. last the would that same and a I or so to of XX five, plus And four up at QX, ago If were you we a are look XX plus we're a

And triangulation. so one point that was of

weeks. I really Jim was so is or we're and think November. lower business good the piece lower cycling what business October, feel through the November. is mentioned, the but other stores very in decelerated X.X good positive, year in business about quarter-to-date that October we we very do In And December, last than saw

while this QX so And up low that results. we've December some the into our out got e-commerce level be think our in of would e-commerce also I expect strong increases And we've baked conservatism have double-digit forecast. year, business we built we

haven't really like QX, terms because for unfolds we In our QX we update QX. before see of how revisited to we'd projections

and understood the recent had label on of are viewing Are you incremental label we the strategy think those kind Okay, Miranda of Lambert you nice think we margin private How as or as of sales drivers? you've launches to those Workwear private with those? and a tailwind side. the potential viewing should

they're think both. I

I the goal maybe to Miranda brand private extensive. brands. Lambert. of her are the think Boot are already penetration Idlyllwind fans and quite think leverage increased Barn look really of fan I And brands of separately or at think they I the of is part Idlyllwind, two for three name I drivers customers, each And of is base of while unbelievable her many personality if

be based et the fans and net into hers follow that our introduced cetera. new Boot an to on Barn So that fact us would get of they for opportunity or ability customers her

from also buying Hawx of of an the third-party work probably the of be Western will brands the think mostly. but are get store brands bit customers I in cannibalize not some the necessarily opportunity perspective that other to a might of apparel, new

brands So FR to might a apparel of boot the work has from think I a be James. a the Cody comes convert when can in maybe I that for either really our related sell brand penetration. aesthetic work, Cody incremental them little toe have existing or XX% one And western or steel customer Cody because of the XX% existing James take then most that private over part it just customer to product our our of is and product increasing them in, more the and and have third-party transferring and is might think James bit take Hawx

penetration is driving one that pure sales. than and think a a private So I less increase of more brand bit maybe little probably in incremental

acceleration all, and see behave and with to little they when both, you like bit a like So or but differently, new of private to to a all in them Boot see I combine there an brand the together bit think of ongoing kind traffic. we'd of them additional introduction customers, brand perhaps Barn increase couple penetration we'd an

here you lack but Great and in one those, leverage. side some much me quantify the kind on and of SG&A. on the new marketing launching private label just any for last A way G&A to especially have just related the one spent might little of how and second quarter of bit

unusual If you color more impacted or that any any on could factors give any that?

Greg. Idlyllwind keeping accurate called I we launch, get mainly holiday. bid It's fiscal this right, added year inventory stock And year mentioned had more for John. also the Sure, that to unit between, our a I reset out that get

can all we So account the of combination things if you things about have XXX point basis Said press headwind of had see XXX cost those would combination of those release a asset SG&A probably for differently but points SG&A the to leverage things. we had of you a in advantage a but about that small take basis was in and two those XXXk rate. the for could we disposal business,

normal assortment, spend a and John, start. add of James we to marketing Work. -- finish additional nice and that queue going rather an marketing sort I part Cody of to line of sure that and to as wanted new add we routine more of to little official to expect same kind be but forward to a there's really make when launched day-to-day think the customer fold of it's probably that I launch kind officially of Miranda just both in - that that and a bit that And running don't more sorry, our traditional are and had push, Hawx

to Piper We'll with Jaffray. go next Peter Keith

margin I discussion quarter. the the for on afternoon, want follow to quarter. up Good everyone, Hi. nice

but gross slowed but of was nice margin a improvement SG&A it fair amount did from You explaining margin product the a the quarter. good, prior down on expansion job

guys think on up quarter XXX catch you I dynamic increased there? give you quarter penetration were compare set think up last And then Maybe understanding I also this us what the XX. but there's private-label. could you an didn't margin happened to I

Sure.

private basis increased terms first, a XXX basis and of when of expansion talked penetration points of and brands points The improvement. Greg. in second about we XXX QX it's So the

I took was. stance traffic was think we driving that last talked a the in we started fact were what to the starting when really AUR at versus about -- look QX year what promotional looking cost at and our we

And a four we August, that we so that cut used week in last year from moved half. in to boot sale happen and

had of that basis so And that QX year. This reduce year in we we XXX cycled a event two-week didn't believe as last year-over-year we further. I any improvement points

work had had we a QX we QX. that last and doing year we QX normal slate so reviewing started this for our comparison so the anniversary the more --we this And in were analyzing we're everything were you fresh a but year, starting time. will work in year, first fresh on we promotions if

evolved commercial you. that's had up called helpful, Greg. opportunity. the sale becoming or Is the there as driver? of that late the commercial bigger something Jim apparel that about as Thank out in work has a and to accelerated prepared boot wanted that a that Okay, ask also they performance. driver to you And sales there I anything is remarks the

growth, it in The doing growth increases pretty quarters sales overall healthy, it's terms been commercial and actually for exceeds year-over-year our that of accounts a few but now. business

very even So dimension enhancing certainly not overall to To high you comp is, how business I for in business. accelerating growing business low of business business. some our it's fantastic don't-- to the to portion business, give sequentially work it's a quarter-to-quarter-to-quarter that and necessarily single-digit but big the

to So against than -- force, it's business overall. not continue with low it it of terms more the any commercial we're resources thrilled while a it's in piece account sales of single-digit put some a and

XX% for in the updated how year? the business should And on beginning helpful. on of be me the your Thanks. tariff on lastly kick any just the the that's might discussion, Okay, impacted thoughts tariff

of and Greg. that sell tariffs is China subject it's the than we Peter, Yes, to sourced product Less from XX% right is now.

-- piece our some private piece of is third-party a that vendor a product. of is And brand and that

Boot this think coming source I from think third-party I given fair will. to And also to likely their if some customer. will to Barn the looking is disadvantaged we'll the so you be amount a vendor And from see countries. of by product partners, for cut be opportunities and to probably of is all uniquely impact We're different going that. costs the increase that unfortunately price largely of borne it don't

next go We to with Janine Jefferies. Stichter

Hi, guys.

want to you thought the more process like October, in ask boot any about the little sounds Just bit promotion haven't resistance a seen it reducing behind there.

other how you're unproductive there. then or reducing Amazon can bit pulling evaluates on little a even same more So more any business, back you calendar whether opportunity as give you it's ecommerce Thank or and because seeing you a that piece much look along and opportunity lines, on see year think beyond, is remove like you the to there events at mentioned use, your also the promotional I you. for the of color with rest you what some of business your the

we and Sure, year sort dollar out still have would some Having sale clearance. was when it unwound that at be and the our of that, momentum the hey, merchandise XX% experiment running worth balance merchandise ever if we comp all was about the said, is this we thanks half but business, said the we and weeks and full given margin Janine. get Look of ahead it we at we And we look than were we the overall last the our quarter-to-date year. was better roughly just we run a fantastic three aggressive business fact had most in it number, the you we year looking a hopefully turned and underlying that as can haven't weren't because as for in business do had promotional it of October disclosed rate the throughout the basically as sale at just that XX% --it's price year. of surmise boot was and is last today specific conducted business

So we've made some improvements in clearance.

We to cleaned we of goods all in be inventory as clearance our small the some will the time. always portion have clear really but system need from perspective,

look is So promotional of on promotions, only XX look next more of and rifle for first for level weeks heavily basis tends are to sell continuing of squeeze weeks X% small forward assortment. business that time on I and after the our a some boot reduce about summer August. places of to than go shot promotions to only sale next we we're which from the while as month-to-month to the portions leaves couple for standpoint, a the Other be over the the

will looking speak, with Christmas So back continue looking squeeze I all we'll of we'll an at of is but an to further there to be but during eye juice so for towards a enormous places. look left promotions rolling that. those stands even to be at and amount promotional promotional

business. that the our on piece the as of taken the sort quarters In focus done of an top you last us opportunity in of that of and for to of terms our profitability of if terms bottom business. e-commerce, couple we've to of And really we've really will ecommerce viewed P&L it

marketplace. and have from low product product, removed we from Amazon our priced So site

fees we We have so the eliminate vendors. can inventory, warehouse from shift more

look careful from of breakeven. organizationally. in marketing very consolidated standard pay-per-click We've We've a just sales and a to a holding standpoint. at profitability and our taken at roles have more not efficient also become are pay-per-click shipping growth spend We some investment

goal away to look we're by help? other and plug us Did that agnostic I out. we're yet sale while aspirational are selling of making some at at to we called online versus And expenses that trying profitable going and really The more sales with we of So business private not online. prices make brands trying an that of to the really penetration there a on that increasingly marketing store. between that are to operational continue

Citi Paul Lejuez to next Research. go We with

you've but you in and quarter few under got then. only Hey, thanks couple reported, since you guys. more belt I a know some weeks your if had weeks a the Idlyllwind just

little seeing, any particular you Is bit doing So to that you versus terms what base were maybe It others just customer that Miranda positively if you're react product. on do the seeing hoping? would terms more you of in what give product. can of Thanks. else that in you're regions expanding there. share more a us curious it could Anything

with been we're partnership Miranda. with. with the have work really, pleased and personally incredible really her Sure, just to team Miranda

pretty overall sales we're a much laid expected terms of year. of terms how as we in In volume, out

aggressive example, do Miranda I pretty So I nice victory everybody while were we calling while scale at to while zero, aspirations. to sales took has contributor to that be the and our if we're we're --because want a quarter-to-date been sales because the Idlyllwind Idlyllwind think product business, for we double-digit digit we'd there still that's for out if comp. look a product the double comp, a

So it's contributor. it's, again, a nice

of is our driver one it actually in certainly it was fact September expand first business you I base, the business. better to than launched sole comp our growing our isn't from and August give nicely but September perspective, think in a comp. week it any the Maybe it we more anecdotal wasn't customer will but

to continue brand think that will And us I sales is energy more fan helping strong build Barn. it's help do introduce her our so she think growth. very the a certainly base will to brings Boot and It help us customers penetration. what private And I

another have and quarters the solid is So what several we're lot think a Idlyllwind running. of business also put of and now underlying business things extremely would we working and is I in the other the just contributor I very for category line to but pleased in

it. quite we by So encouraged are

you weak And that I I category think boot some the women's been signs Any think turn has it for in Got that business? you. time. over

drivers been merchandise So if through comp out merchandise ladies right. that include by essentially every and has you're We and an question astute you called went positive the --it's does western. category, that category

And I'm hat less, because to increase hat, western that hat. yes way I only think always laughing had However, least of had from the my in I -- strongest perspective. put the terms on, boots term sequence is wearing of sales strong my a Greg year-over-year modest sort optimistic optimistic same store the about if from

in a or I is rest point, of portion strong that been begin think that trending are some kind business it. of boot for about few if and at now boot we business business that build I downs that's trying but nice And quarters couple growth. booties, portion is we the for will down. at of yes over but build some think we'll bit AUR lower a growth a that unit it's our a size years, think and we're think nice see specifically, been we back trend, the cowboy and call momentum short this boot, we're a business do now to than well will which think And to what business I than next trend. ups and eroding a for standpoint a but area's trend us some want amount something cyclicality that's it's and of several often And the think customers one and business. does it some a but we that's go ladies I that that the of prognosticate are that there. less one now. to part out down trend we've is providing ladies trendy When doesn't I out believe boots like boot it'll some of a stock, business we because at fashionable to business AUR short selling momentum. that point call not it are fashion And nice from we're the a what the it. see ladies great quarters I Unfortunately, wear, the ladies in have of full But bootie looked have or up specifically trading or shafted a are, from of our there's come up tremendous us would because shafted and to fashion comp we perspective, ladies does and I boots the there

holiday one are in the I shipments problems terms I'm the be that how just Could shipments. think some may I be you. Got fulfillment and correcting that's led Thanks. that pickup issues those-- sales there holiday? that lead for to bump you was way in issues handle in and you, you if the sure to talk even this volumes of some maybe not feel where last the have about you you're going but able year then to describe And you would last guys thank with did me, them, sports believe. around

Sure.

several Now been a right. both Wichita memory an in in last refining order on warehouse focusing in and our We really going were your issue is is had over in out and Having said issue thought working the operational work warehouse we've months, surprised. And systemic a to proving surprised, now we have unfortunately that, and that was year, tweaking in negatively last what we and Wichita. called complete. be we

systemically. Black tested pressure model be with trying it seems Monday have sort operationally of to We Friday and and to everything working by Cyber or stimuli throughput and both

effort through of a into that to center, sale. too season the a had see systematic the and were influx automated expense facility we've of we as shipment I we and year. of significant many the a which because generate, last positioned customers hopefully go the service keep have as response with hoops the save we them a we to efficiency do taken into in convert through last and happy. and the be rather them. call made we customer holiday essentially that take And call benefit hope not had is long in shipped terms we this given and to had order, that jumping freight had every can that issues So that this certainly really of it well in overnight SG&A an overspent And we pick you one demand pretty improvements We demand base points operational expecting them split splitting terms to the some we am year actual things. consolidated push to shipping well last sorts in all and some as cetera. we'll than issues issues feel your able to them, center drove et hopefully piece shipment in those all we And won't of operational year, made voice an we

year. yes business. e-commerce we're I of that And in business to and next So think the and looking will months come we the sequentially of stores to the as forward undoubtedly well move couple increase handle we're the online in positioned through

next well Company. We go with Cowen Oliver question Chen and

Hi, thank great you, quarter.

full-year store that seeing this the what was guidance --it half to guidance guidance comps at the driven? as the Just your forward raise be the or to would back between regarding look averaging quarter. is that split transaction on the you're comp for sales we sales retail metrics And in And going your helpful. with the be those what was and based full-year to primarily were the upside really

of Right, terms our that's QX comp QX an assumption X appropriate that's the with the same so $X.XX in $X.XX --as the in raised of were guide We balance X related is by all And Oliver, full-year $X.XX store the it's to of be line through. EPS Greg. and flow driven from and top comprised $X.XX increase to to sales.

QX again from our transactions. of We've but so be about revisited and coming We driven waiting to QX of QX we're increase a terms Speakers] little seeing transaction, haven't And how because [Multiple come largely unfolds, when see what it's sales mainly talking in QX the it's we results. about in seen from, average by bit we're an we'll daily transactions. talk

this make Oliver, sure, is was Jim. sorry to clear, I Just

a comp. called sure I is the the quarter point. of Greg's to AUR really that was only my because explained in to a increase sort with remarks make I the size the up Most cycling or in date really prepared the we transactions weren't clear Just sale still out for step basket when in of based comp

and terms demand. by supply in there you helpful. terms of learnings private have there's matching with there on but you of because buy amount really in been have brand, front relative that's And label Great, breadth been the how the inventory of versus in purchase depth the probably pleased complexity

of we're I've to and to set Ideally most online in pleased it, day going fully essentially complicated them that we with I and out extremely sites stores an And ready and when with that a want into go and in the again through business. to we was been very be individually. store multiple different and had is go standpoint. called up Hawx positioned where just I stock, the think because launch fully growing think little planning because from had us Hawx, kind assortment well the bit were we're the merchants a team about

there. and Western a bought work have is a we're them of an kind launched boots just had apparel we started and made positioned standpoint the investment Cody side, We think now from some just work over few that's and We selling. brand evolving. well James I the that inventory appropriate Cody that it has James to work

line markdown brand extension Hawx, of while. line right. one that and if of work So are those store James the of we in to just got oriented a apparel evolution to some and either now a James in Cody is and been you If work sort the add of I or a that's expanded so will business very question, if for the a risk that's Cody I These think work back brands. limited there question maybe behind will the

a the a just wear particular guy We are that it's or job. apparel you either not for to its trying Sear to a do something need functional trend. to on catch purchase any needs

and the a there's sales, I said markdown but only fashion bit On from of the we -- undue that, to take exact gotten of a we're not not inventory trend think amount the Having --I the Miranda side, right little think product support risk more perspective. of are sort there. we've

to Would priority want speed where and what conveniences that on other proactive And may with you're question with was Thank also and to sure in experience? the about store shipping within seeing and and to want it to well what's and add higher come mobile your your channel you're mind physical what looking that your customers of final digital our you terms and just include be? capabilities make you're for topics thoughts integrating what love that you. --and future

online of Sure, that been hit things the from we great. our the biggest lot players e-commerce least biggest an competitive about brand of the question vendors biggest online we all us is at virtually the a of of one for When you an player this of think only the right. couple industry, again is advantages have a and with competitive in player the pure perspective, not in kind landscape last the we're piece we've are And we think makes the one Well, them. play biggest on online that player most stores, focusing I perspective. from of

Boot focus on continuing and want players. we one private the Barn the other to versus is So brands brand thing to differentiation to underlying to that some try continue create

between focusing channels. that that call on you we're the second thing two integration the is really that The

nobody else that an to the virtually and one that our it return customer to significant buy can is ability offer online offer e-commerce or So size anybody can we store. thing of

And store e-commerce we has put business. place which made from returns purchase user our an our into of friendly return seamless online into screen is any an our in of returns in store touch So just brick-and-mortar directly extremely that part that process tablet the the extremely sort portal and frictionless. order online a

a that digital to couple that's roll we'll we only and for think touch a when a screen boot to environment. addition, enables I selector our us been screen that's is. Having to up out they to it a walk Christmas. if their need their now about nice see what enabling their purchase a help and a experimenting now can of process, customers adding in-store that seasonal traffic to into decision or through think and see boot also we're --what before that purchase said brings stores proper store, a them goes It of a excited take that, get lot I to So with have component bringing help. to customer care we're and we in the of tablet

that migration positioned then in which to call out one. have and we're mobile. And on perhaps think well So that the extremely we'll wait see the we you I last is piece

absolutely first an from our start And looking have that. customers e-commerce solely mobile environment So are the are when a for we at we interact, we with strategy adopted how perspective. mobile and

lot curve. stay try to So that a I of the to there ahead are things we're doing think of

In most orders to shipping how boot do terms get multiple need at threshold. product. a customers dollar provide to quickly certain speed, for to they of We and shipping provide free of orders over options we want in terms least their

not than it shipping to in decision. everything gone free erode because earnings additional two-day just for that's have sales. for or would an economic us We probably more drive not free shipping And

can in you if want So environment two we day two ground pay to you to or more are still now free shipping. shipping keeping pay you for day for shipping shipping, a

way the we're you that's different few the pieces that others. So a perhaps called out approaching and

will next Tom go We with to Nikic Wells Fargo.

for taking good Thanks my Hey, everyone. afternoon, question.

payroll a your there? of think the big freight Are about And Just quick that. side? you and seeing inflation all should a and a ones couple topics we side on about side. how shortages driver has things like on And the much We've truck and the inflation freight effect of hearing then Thanks. been conversation cost been equation the on in cost in stores also wage retail. obviously things lot wage

Tom Yes, sure. it's Greg.

we is distribution know on center boot lever we replenishments, merchandise our of parcel our our store XX small We and within order contract directly days. our of increase. GPS if no to sell it renegotiated of out an on shipments from shipped with that XX% write we days most automatic side, freight you for as or the On X the so about area just,

don't And from across some on any China. do We bring really pressure so we things line. have that

bit do we've it's across increase what increases we wage markets, addressing also of so And will to in the need And on by a found been able proactively rate. have increase improved of small. we're chain we but to average that seen But freight, and wages, offset where terms pretty we rate is see little pressure productivity. the wage that

model. store what through is Some which of talked our scheduling driven that labor about Jim

improve check. labor our keep costs and to able been we've so largely And productivity in

Coker go Lawrence next We & John Palmer. with to

private the most as a couple there as everything's can with of class of these in Is curves bit assortment you stores performance what store label come to new or as versus XXXX items questions been the a of or adjusted. and sort some but of XXXX, maturity of of far sort just you class Yes, related et and addressed, and little new --with store is opening to much different could classes? geographies variance that's cetera speak on

Sure.

So that new we're been business. so pleased with the to stores have added the

into we when extremely are way with line together, how them I three-year think store their very On kind exceeding we've we tuck-in of $X.X a think tuck-in we've for acquisition and get and them want payback rhythm. I stores with to they a always company a the average the a them. million are, about a That been new above come the and modeled at own few in grow years then average, over means much pleased they open average traditionally. nicely put we so few new until in into years

So that we our payback better and we we continue of cost at store tends stores the return three double can it's to look of we to as we do And those year. portfolio, return that roughly at now a the than and XXX think we can be count, a-- capital. the think roughly first the add stores a metrics year are have year-on-year in to all XX% we

there's it random everybody called the hasn't new variability variability as store a too because roll be two we many to model it other involved takes like little a such a If much to There to in performance it, do new store Is that it those continue give was but been happy in consistent a like but sort that by that our the deviation other too to it. for consistency there's across ever market new a looks bit inherent a we'll try out a So here's in share correlates country. sometimes, groups mature that really and would market. or we is there it factors of in market a store --here's out what new new it help? looks of more performance we've longer, in market of

and last again. distribution Greg, year, helpful. regarding to And second Great, a that with those pointed question out. you those buckets walk know the very us or responding what last question you what an roughly quarter helpful the inefficiencies year. remind those from like was were thanks. gross that's to two probably the expenses as margin centers Can SG&A, it situation is, the that through when in earlier you don't felt cost you I Quantifying with you

Yes. And The it's John, Greg. it was third $X believe call million said added portion Thanks a P&L. we in profit in add two about gross SG&A split center thought that. was cost it we had thirds and labor I to of for the we the and a And roughly line year to SG&A. is last

margin is and piece in The other it's the gross freight expense.

estate, these markets estate question from last off new real some of of you a real some estate as difference thoughts cost Any any sites know with from standpoint centers I and me. standpoint. real available And for a in entering

better isn't. has What And we've real as I'd cheaper do estate really get John, it's that to as Greg to placement. trying we're tried say again. become perhaps

So expense locations. get rent occupancy access the can highway, get easy to site while I'll reinvesting that highway then of or on should highway say costs off line I and better we some access, say

So same location. better a dollars just experience, better

right. That's

questions turn over back like additional And Jim remarks. would I to or in with further to with the the closing call queue, any Conroy no

Take earnings I with today. you quarter to look on We joining all forward speak call. you. call third care. the appreciate everybody Thank our

today's conclude you We does for participation. That conference. thank your

now may disconnect. You