Ross Stores (ROST) 3 Mar 212020 Q4 Earnings call transcript

Good afternoon, and welcome to the Ross Stores Fourth Quarter and Fiscal Year 2020 Earnings Release Conference Call. The call will begin with prepared comments by management, followed by a question-and-answer session. [Operator Instructions] Before we get started, on behalf of Ross Stores, I would like to note that the comments made on this call will contain forward-looking statements regarding expectations about future growth and financial results, including sales and earnings forecasts, new store openings, COVID-related costs and other matters that are based on the Company’s current forecast of aspects of its future business. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from historical performance or current expectations. Risk factors are included in today’s press release and the Company’s fiscal 2019 Form 10-K and fiscal 2020 Form 10-Qs and 8-Ks on file with the SEC.

turn over to Chief Barbara like Officer. Executive I’d the to call Rentler, Now,

afternoon. Good

We’ll you to our our XXXX. outlook and our on quarter begin President Afterwards, with Travis Vice Relations. Connie may Operating me respond today XXXX President, Vice and we’ll and of Officer; Officer; call Investor President Kao, Senior Group Group Joining Marquette, review today call happy Chief Group are to for questions Financial and any Chief Michael performance, have. our be a fourth followed by Hartshorn,

As more for quarter our said, California, $X.X noted of our Total occupancy stringent $XXX lower in store with the were weeks today’s per results hour That in January to press especially ended Earnings largest release, were state, XXXX, in our million. expectations. sales income resulted X%. and traffic, operating sales quarter $X.XX fourth billion restrictions. net where the upsurge we COVID-XX the XX on comparable down of for share subject exceeded were sales XX,

per the XXXX refinancing $XXX onetime were $XXX for sales year, million $XX.X or of to senior pretax billion. earnings share include of share These the the For income charge $X.XX on a per $X.XX notes. Total million year $XX million. from fiscal for net results in of XXXX declined

on details results. quarter to fourth now our turn additional Let’s

Southeast while holiday major Midwest selling home, area the the and the strongest For season, best-performing the were was regions. merchandise

number lesser issues, border states was a locations. degree impacted the average. business chain For to of also a Ross, tourist Texas, given and underperformed significantly COVID-XX the dd’s the California, smaller than quarter, our and of largest Florida by DISCOUNTS although

to total XX% down packaway end year’s the down consolidated year were last XXXX, year compared XX%. from of XX% XX% ended XXXX with versus the store Average at were total we inventories As levels at prior inventories levels.

at a of the cash our the share. per strong rate dividend in The dividend position quarterly Board of our recently reflects resumption in our release, our cash our As XXXX approved of $X.XXX prospects. and today’s reinstatement noted in payout long-term Company’s confidence

details for Now, quarter guidance outlook XXXX. additional on our Travis quarter color provide and will our on and fiscal general first Marquette results further fourth

Barbara. you, Thank

basis mentioned, size quarter. As decrease of XX.X% to margin of of The offset upsurge virus. XX volumes. was traffic, last was year. quarter by in operating goods comparable sales increased by Cost to points Occupancy than was in basis XXX an ongoing the chain points basis declined quarter. X% during of previously higher This Buying stores points basket. on lower average supply industry-wide which costs, due by costs This to sold lower compared XXX were increased increased by Fourth congestion. points freight, the customers’ points. in delevered partially the merchandise XX including gain XX the higher the which driven X.X%, basis reflects increase more margin offset shop basis hesitancy was sales the

a COVID-related cost COVID-related Total of sales, of the costs. in the by grew to higher from $XX store expenses approximately offset higher XXX SG&A impact incentive that rose the than operating timing parkway for higher million with goods decline points, and mainly favorable quarter costs were to points distribution due the sold. to expenses were basis XX comparable net primarily quarter wages Lastly, timing effect deleveraging due of the mostly for expenses. SG&A basis

remains $X.X million position Turning revolver $X.X liquidity, with includes in a available. an billion balance cash billion over strong $XXX and sheet. financial exited fully to unrestricted We about XXXX balance that in which our of our

outlook our discuss Now, let’s XXXX. for

spring of closure for relevant make results throughout fiscal extended by comparison. of significant fiscal the this in impact more year, headwinds and XXXX. versus reported We Our believe basis XXXX from the the ongoing any the last XXXX guidance and COVID-XX be our caused will throughout operations

remains there the and economic XXXX, regarding enter we an limited ongoing and visibility As recovery. pandemic magnitude the of pace

providing and year. guidance result, a for the specific for we first the outlook quarter only general As are a

now to first move Let’s our quarter guidance.

projections period weeks the our reminder, are a for As to XXXX. Xth, this May compared ended XX

Easter the down and better, While impact per The share store XX.X% that supply up down in are are we the chain ongoing potential with to guidance deleveraging and this include following. to congestion. total quarter down to headwinds forecast hope our XXXX. increased X% We and sales to X%. support expense assumptions of projected higher supply margin first demand ongoing do costs The projected $X.XX be decline effect to during operating comparable sales reflects the be sales X% reflects comparable to selling to This year’s season Earnings projected from operating project be guidance chain to X.X% sales lower store $X.XX. statement versus X% from XX.X% wages. the

projected elevated negatively XX the by EBIT are COVID-related addition, remain in to will approximately impact points expenses In margins period. basis and

a the we expect of to we more two spring. of expansion aggressive While openings continue this pace planned moderate year, our the chains, especially in

$XX expect first X X interest million. Ross and we the Net period. to dd’s is to expense during the estimated open be During DISCOUNTS quarter, locations about

million. rate weighted to are is to diluted XXX finally, XX% XX%. to outstanding And be projected about average tax expected Our shares approximately be

that be operating the to recent earlier, at historical likely higher potential wages, vaccines, by chain we and only for consumer supply a additional costs, move be will trends government through below time. relative well general expect increased year demand, levels. rollout outlook top-line we providing affected continue mentioned and As Therefore, the of profitability year. COVID-related expenses. pent up first we sales the as with stimulus perspective, to From though, to Similar to margin will high strengthen are we continued XXXX this projecting a the quarter are

add XX to consisting dd’s of approximately DISCOUNTS Ross expect XX stores, XX We locations. about and

relocate to about is million. $XX or plans As about close do not XX stores. for year expense numbers to interest older usual, be estimated these Net our the reflect

tax rate XX% is to be projected approximately to XX%. Our

approximately We’re be planning million, of $XXX depreciation XXX And diluted XXXX. deferred outstanding million. for be expense, includes next million. $XXX to projects resumption from average investments and amortization for stock-based center is forecast projected which inclusive about the to shares expenditures distribution amortization be XXXX Capital and to about of our are

Now, I’ll turn the call Barbara back to closing comments. for

financial COVID-XX seasoned caused to us associates and combination so health pandemic. liquidity Thank and experienced was sum-up, our and and through major That this proven challenging crisis. enabled extremely team, the the Like the an Company, you, of said, strong Travis. have foundation leadership fiscal results the To throughout navigate and year. businesses, other XXXX reflect our financial difficult problems retailers and by many operations

Looking many as unknowns balance Travis XXXX, at the of alluded to, remain.

the in closures the price the continue sector over years. retailers past number is we especially over longer retail consumers focused dd’s convenience. the delivering both on as term, of However, to true both are well Ross favor and This and value several given believe off positioned and bankruptcies

our open to position. At that to strategy Our unwavering up mission remain success. our is and have. a to the our focus we’d continue the execution confident to successful of on delivering favorable driver of the like continue this you to will respond point, possible might key market core best questions any be We call leverage bargains this

from Lorraine of comes question America. first Bank Hutchinson from Your Instructions] [Operator

overall. afternoon. profitability I your to thoughts Thanks. Good on get wanted the outlook long-term

are and transient of you’re calling like COVID-related. seems lot out costs a that the it So,

to normalized you environment the how return the ‘XX, ‘XX levels? So, think as prior profitability return the you sales trajectory more about think in out -- and a of to do

Lorraine, hi, it’s Michael Hartshorn.

do are pressures, this there As with freight, COVID some cost leverage that lose and costs. pressures we mentioned, productivity, wage fixed between have we And pre-COVID. sales on year the we didn’t cost lower

the to get and average on So, I say, comp store. higher point, leverage we at it’s would highly hard say would on as average to say, how I’d it’s our sales this say linger. dependent cost sales -- store right hard now, with visibility recovery thus per long it’s

Altschwager comes Baird. question Your next from Mark from

was give front. you us I a real more on bit color estate hoping the could

us And the given we per how the just maybe out of you. process rate reaccelerate that the to of run about should pace prior store share year? conservative around thought Thank think openings to are there, Just significant the that through year. this back market walk opportunities more potential on XXX

expanding made a assuming spring. similar I’d the during the no temporarily two next And stores we’re in opening peak committed markets. and estate, plan were ones to this to the pandemic, all especially of we the to return our at more the cadence year again, conservative normal to take experienced approach chains, in we issues, in decision to new openings, both existing last year, extraordinary On say, for be XXXX. would the closed, when real more point, XXXX our our

from Lejuez Citigroup. question next Your from comes Paul

you in if past color Curious on second, several been if years sales you Florida? in gets during improvement well more as Texas versus performance could see benefit the about from I’m any then, tend results an states the the and any states, California specifics provide versus with dealing monthly in share in the you higher curious to wage pressures those And you’ve quarter, would Thanks. also those as say some consumer that key if as wages? you could

me first the let take So, couple.

That we to said, generally, time in that intra-quarter at start trends. we mention were quarter. down about November, talk we again, the did progression, mid-single-digits don’t it’s month-to-month of comps -- terms In the discussed

California specifically. payments mentioned, as collectively, later lifted the shelter-in-place in in And in and did well quarter, Texas, the we underperformed each as to new increased and that, the stimulus details was to shelter-in-place Florida, Beyond California were particular, into restrictions were order. as curfews But, issued. wouldn’t get Relative them benefit sales of we as occupancy see during impacted of by sort the California, a the chain. orders we significantly of quarter they as

to the today. tease seeing that Paul, with in to the factors any front, it’s sales correlate different from business wage really the and On all impact wages hard that higher out we’re

Kimberly Morgan next from Greenberger comes Your Stanley. question from

any all and normal be or can currently chain the seem cost, guidance I revenue your more are wanted there the costs? the it’s that. temporary to of are suggest quarter. stores And guess guidance encumbered hard if chain talk nature, if less chain to in supply those The be restrictions that the But, costs would would the facing well. in pressuring just confirm I some about less but were here interesting world if check might are wanted by various you fourth hear just in that capacity that, in you to are supply you. supply -- then currently the when And on wondering as there like feel for better it to hindered open there you Thank about again. to pieces QX I’m

mentioned, we our the like the time. of as about of Nevada, closed were on had under that California. of including restrictions, XX and quarter, during restrictions, for stores XX% stores some Also states occupancy about period Kimberly, we fourth level of during were Weston quarter, the capacity course, some

a today, peak of we all occupancy is of in although the stores say As year have would although are number I states, of impact still versus during open, season this time selling holiday less. restrictions

to question your the couple supply of on there���s a cost, chain on And components that.

there’s ongoing wage spoke pressure, domestic First, to freight, that. which I’d freight as ocean as higher. speak costs, really, which two we freight There’s parts also are significantly to. well to which There’s

the Some that, took will COVID, costs last over. in driving beyond of it’s that supply actions the also And carry we clearly year higher then, chain.

year. again, say. the third freight It’s we it the reasons pressures, in will feels quarter. of why obviously, those of where the wages And called our sit the it’s the how costs made in those commentary. long that we like in last, From terms one wage hard continue will to today, through out we increases In

And carry so, would through until those then.

Grom Gordon Chuck next Your from from comes Haskett. question

how home about if was of could if in you this percentage as I wondering category the the category apparel. And you guess, of to the sales the And the guys to fourth and thinking speak mix XXXX. also for home I within itself Just of speak upcoming home year. quarter relative margins could also to a then, all you’re contribution

there big Just how of the Thanks. difference wondering is.

details specific by the terms we product of quarter. mix, give In wouldn��t

home year. about to was total the for XX% Our last about XX% year, compared

and margins, of contribution in the markup contribution similar. margin of I again, but terms and contribution relatively costs, in similar. There’s is In some the margins for that think, general, puts are takes terms

Capital Fitzsimons comes next from Your from RBC Markets. Kate question

few quarter. on a just as it sequentially I down on the evaluate go like it percent be next total generate, ability relative packaway the third building to looking we was but quarters, I then, year-on-year, out, out inventory, looking just And relative I forward? rebuild merchandise guess, to XXXX margin would how to just helpful. seem that is should improvement your does inventory the of guess, guess, packaway

Sure.

packaway, to the builds of of fourth our in quarter. part terms packaway sales we the plant support used In of

rebuilt intention to -- to rebuild levels. continue the we will to of yes, since So that sales that it build use our quarter, and it the is has did the chase historical part third But, more increase.

And included first spoke in quarter. that not carried things. then, we’re margins, But, impacted to a specific which impact margins merchandise about What in QX, the I’d couple QX environment beyond margin. forward merch providing buying extent. we favorable from freight in for say, some the of merchandise negative again, had ocean we significant us terms of in the a are higher then, guidance by were costs, One,

Barclays. Your next from Adrienne from question comes Yih

and points you can to is back over of much. COVID the for that whether quantity, quarter wondering forward I the period? you of How can Michael, if you go the diminish availability diminish talk in then, half Thank And and about Coast time? was that that second year? sort of into expect port the congestion XX talk should of in you in inventory, of basis pressure, the the very quality availability. then kind these West the impacting and kind Do about Barbara, both

would has of terms the Coast quantity, So, supply slowed opportunities What in Adrienne, receipts coming of marketplace. we’re in seeing say down still great port quality into I country. availability and obviously, the congestion, West the some is, and pretty

off and coming of the are So, moving merchants based constantly in. shaking what’s

correct, think a the port, bubble think the I disruption end But the yet. don’t seen a there’ll point, at historically, In to of from things when of terms be at self I some of inventory. that there’ll availability point, we’ve state some bubble bubble. be of start

So, that an be would opportunity.

then, Travis. this -- And in terms is of

not first guidance of beyond In COVID the costs, providing terms we’re specific quarter.

year, throughout for we customers be the QX safe. costs somewhat to expect currently our given to COVID investments However, similar and expectation continued to associates keep

from Boruchow question comes next from Your Ike Wells Fargo.

regard? quick Hey to relative your explicit XQ commentary. great. I as it would quarter-to-quarter ‘XX be there to margin some that a help a there just -- for upward move ‘XX, just that Is in based Travis, not understanding expect to fair the believe giving there say to should to a back year, you’re throughout we the But basically there know know that glide is lumpiness levels don’t margins question. guidance. you path or reason we be that Any could be get on guide

Yes.

You’re right.

As specific we mentioned, we’re not providing guidance.

the would Michael I think, that I comments sort of come back to made.

to, And Our see connected should we profitability that as be is improvements our in same-store higher to would able you profitability. -- going we’re expect, as drive sales, significantly sales. should to

Jay Your UBS. from next Sole comes from question

in Texas the comp? QX has Thank the I you. And that to then, for in X just weather refunds or tax want Is that, bad or like comp your seen you are impacted performing to that down worse? better down would delayed ask say things versus QX about or like X you guidance of ‘XX. current you trend with quarter-to-date you’ve line February

specifically throughout process But, guidance talk about would needed weather saw Texas was prior reflects quarter-to-date refund last wouldn’t year to we to That we report the in when and you February our what tell We the delays and also tax to country. COVID. I the that related both, in trends.

question Retail comes from from Marni Tracker. Your next Shapiro

there all my out when -- like probably outsized guys good once additional that’s referring in what’s questions, being opportunity opportunity. disruptions, this talk had of bubble were I top be bad, what port ends about with you while you settles the there. out, you already will up on to because that clarify, to want did you just I Barbara, typically And things for

you what that’s Marni, expect. would Correct,

and going Although up there, there seeing some tell opportunities great history back That’s because that moves point, the at opportunity. supply out we that of slides things, we’re the expect still and are on, be would an would would that what us. would that

So, that’s would I happen. think would what

up have use following we of Day, or I for then, packing Mother’s guys even And Father’s sense. of history Father’s example long of lot had that, the a a Day, Easter, events Day. shirts like for the away polo Makes packaway comment just know on holiday. you

the going and you’re you holidays? But, planning these Mother’s gifting have for potentially. and set Given Easter feel up more are well order packaways? with up Father’s you to Day is muted like Day do disruptions, you’re a be for set from know little with you what I on

I comfortable feel Yes. with that. Yes.

question comes next Your from Jamie Merriman Bernstein. from

to looking you’re how cash? perspective bit or dividend you reinstated. about before about any you a of get Thanks. Can that a Good markers use the about And revenue if profitability for might just little talk thinking buybacks? think I’m wondering from see there’s resuming you’re

the returns, measured to shareholders. excess given uncertain cash we as has excess shareholders. long sustained restart continue shareholder we’ll approach preference for business. dividend, more to very sense remain it the actions a us visibility dividend to shareholder to to The once we And requires committed especially decision, and have On our on made outlay, assess payout consistent cash to been environment. additional cash say, returning Hi. first, a I’d lower the it returning

Your next Janine question Jefferies. from comes from Stichter

I appetite the seeing home. category? if the out the And in you your the ask feeling having if apparel? chase some we category about bit performance. more and when into if strength you’re so, wanted any in green a that get to category, how for ability you’re Obviously, customer shoots to Wondering about called

lift. a the in I in businesses. has gift-giving Sure. home -- mean, has total, taken quarter, in The very is particular, performance home a of in And just lot fourth has broad-based. taking been home

that part performance of big a the was So also.

was say -- And mean, I the shirts. they or products, chase just being start will QX is business make merchants very the quarter than whether it’s we’re them it. I see some lot seeing the of to to is continuation quarter In QX have whether I’d then, What saw parts a we’ll the is or denim to it’s think come what strong, traditionally QX, and traditionally classifications in businesses, life And think we’re that type if I apparel casual activewear fourth availability. the other and of casual apparel, closely better watching shift, terms we it. watching life. of of of a A in those

made shift into make we just watching going, every the way time And so, businesses all the into and money we’re last to where more on is the see and quarter. way shift home and casual customer fourth the into the the week we’ll the the

comes question Group. next Your from Telsey Telsey Advisory Dana from

dd’s, Can a the little puts of on elaborate how you XXXX? a SG&A are so, expenses, stimulus? benefit you. you lastly, in if they than takes Ross? on benefit? it seeing difference And more seeing that would you’re on you’re the of Anything you bit particularly get do in occupancy, and And a for be thinking of have how when stimulus seen from Thank

Dana. Hi, Yes.

I and those lower for some QX specific compared sales per to we’re average SG&A beyond wouldn’t costs, pressures the particularly we’ve to COVID-related which other than In in and provided, into around to cost terms store, say, impacts of higher think that details XXXX, both impact get seeing again, continue. wages, which, level cost that stores, of significant chain in the expenses, sales, higher specifics of will will really extent, XXXX supply we detail the

sensitive whether would stimulus, payments -- or dd’s the refunds tax and is customer it’s on to history Dana, I dd’s think we more stimulus frankly say, refunds. And customer, tax the

we see immediate impact to the a in business. So, dd’s would more expect

Kernan Your comes John from from next Cowen. question

as off in go inventory particularly the to half confidence you of enough your comp going we the your back vendors, have Are on to curious apparel, the ability of levels? Just year. to XXXX into service to rebuild inventory in key

would in come of off in packaway. confident feel plan might be inventory it we advance of our we buy able of the from it goods our to that chase. will Part we of Part apparel. from Well, come will that based rebuild come from season. will Part that

some three So, vendors think, be having market of will supply. have it the And terms things. supply, all in combination will most of a I

think supply vendors bringing earlier. are I in some

a be the we mix, on need get is. structure So, based I get I into. inventory think it that to who But feel vendor confident back into position the can will we

Laura Loop from from comes question next Capital. Champine Your

to my understanding, year. QX’s Thanks It’s that spend question. your in that costs, taking COVID-related for expect which level total the Michael, is COVID-related to you XXXX? How my throughout continue on would compare

is exactly than XXXX. we Travis. plays again, out way, will, we Yes. it that This in lower it incurred don’t exactly and be would know that bit If if a what

housekeeping. just then, And

you pressure mentioned You specific comp, which pushed QX Can and your that timing was? how higher. on more be SG&A much incentive expense

costs I specifically incentives little of more when our for it, a the heavily wouldn���t incentive down, were given management comp they just related finalized incentive year timing Yes. management more Again, bit on overall, incentive the costs, quantify of to that. weighted timing but color given which to the the expect you’d our year. But, performance. back we the were plans half, for

next Your Guggenheim. from Bob from comes question Drbul

questions two from me. Just

wide given wondering when And Stores continued XX%, you closures The long-term Ross about dd’s, stores one just is change potential, other there bankruptcies in first either or when is your throughout in Florida, versus I variation? you’re inventorying had is, Thanks. store stores average look the how the question California, and stores the in a the if you the think of second any in the Texas, you those store terms at stores? inventories mean, down industry?

broad-based given we inventory, the had uncertainty, on ongoing down, the Bob, inventory across chain. fairly planned

by And attention there and that churns is we to to the very then, that it’s less good, and pay potential, inventory region on grow, the Of store estate we would possible number underperforming, availability regions given that were profitability. have real could course, availability. maximize

is growth stores that X,XXX Company, for Ross and the and appropriate includes X,XXX potential dd’s. XXX believe to continue the we time, this at However, long-term

from Your Partners. Meyer MKM next question comes from Roxanne

about that, in XXXX the a I’m into dig hit I’m projects secondly, are wondering the if in key center. a said distribution of that you’ve were to that I related you’re lot. wanted Thanks to investing you you’re in the outlook. expected deferred bit. XXXX And CapEx and the you expenses projects part, in know, talk -- your on got in focusing that I just some wondering are now. to could costs if, included

wouldn’t expenditure I more a plans. little bit can on details the I specific into on color Yes. go but give project, you capital

year. I half expect we About As supply of spend this for existing the spend about centers that, be maintenance and we’re expect sometime in million expecting that center IT of we would and the balance XXXX. to stores our chain distribution Around mentioned, the on to remodels would then general. on In impact around to in stores, other. XX% XX% in $XXX distribution point, P&L new for and and regards of at to this projects costs DC year, open new this early

And costs year. hit once impact P&L the this so would DC opens, the they wouldn’t so, those

year, the we capital, liquidity our this goal year. of of type deferral lot of we had maintenance on last deferred Roxanne, given a improving projects that into

in of that up forecast projects, things So, maintenance, it’s year, we’re this year’s plan. nature, whether catching capital store that this for

Morgan. Your next question comes from J.P. Matt from Boss

about Barbara, maybe positive different to side. a slightly think the more on this way or

or So, retailer, question take you’ve the value the forward? apparel to exiting Ross in share that you’re you’re the brick-and-mortar-only pandemic? seen market either off-price And the the guess, pandemic. how of comp of negative you mid-single-digit convenience opportunity component you to the going makes to middle low guiding in that do view anything I

and think continued the about think taking have I that the closures as out when all Off-price share that we there happened growth, to move have Sure. ability market in store gain yes, our we share. you forward, apparel

that. able build and forward and and grow with That time. broader perhaps other sales start large types our our assortments models. off and we offer businesses Based me to drive are go and Let other than over that team, base large of vendor should will merchant be of

products. do it’s has will whether whether I that grand that it’s comfortable -- other it’s quite in apparel apparel track, in move to or whether that or home that on opportunity an when direction, feel total frankly, in So, back gain in off-price and gets we share,

is and trying as the our know. market, and -- our from that are competitive It’s In constantly and convenience and say, is us, that But us, good main the focus terms marks really most understanding bargains That going the rank on. grades you is every on. a around that of very things value possible. us branded would convenience, we value high gives deal gives what’s that’s is that shopping the merchants really how deliver of out that customer best value focus, we there tells of value importantly, and and what customer get us and best to surveys on our the is mission And And on a she to know one I them. customer the day.

the off value, getting how are back could the And where in road way. based where go a scores, the markets on us is you lot way a customer I certainly the from would Ross to of stores, of would on say have across high side we shop. key Ross be another one in on that see other highway a give and our again, for look customers and I of So, our to and convenience, data stores located and easy it the and

or going to So, I’m I from Ross go a can whether work, to Stores.

as store closures, of share be us with market go to up And potential to of all a lot know that important So, pick as we I customer two think are the had. things. share part get that behind are we as the really those there’s is because forward. market able values. Those two protect We and a being we things company an know

is company focus. So, that a

question comes Credit from Michael Your Suisse. last from Binetti

that little same-store think think deleverage some was like a I’m on for little what I you think quarter just grew guess, different trying that takes looked like it you trying of negative could about won’t the Michael, way quarter. trying until a just about look there first in And It to turns for you And know that earlier then, is it least per-foot it on -- about first it reasonable you comment to on to X have for think basis, the to scenario think but that scenarios, a at sales up just should any little how half of if I’m the I seems bit built there. thought what if that. you inflation the range negative positive a know fourth might help sounds far looks on -- ran based you you the bit comp. of I quick that per-foot I but of second over you X. on it’s to the I that the But negative you XX% progress quarter. And SG&A, about to we And in how X. different guess, input of like get at guys rolls much two from that, it’s at as ones, the basis could. be to forward, guess, it know endorse us sequential it? me maybe year, we to your was the you the back kind for maybe you a incentive the the visibility to how sales a assume, it I as know it, timing about cost reasonable biggest

that the And the vaccinations, quarter. just I over trend, had a sequential of increase and for times comp a improvement in the orders with first California mentioned number just we quarter, included, in minus say, fourth the stay-at-home would improving the X represents really and cases fourth that the we as did quarter potential On here restrictions. a

relative hard costs. of on we of COVID answer higher G&A obviously, to the continually G&A talked that an towards -- your That be for going And more again, bit will the year, wages, more way. in really will easy, would G&A But likely continue sort concise question quantizing to costs. impact probably certainly pressures about cost, weighted be expect it’s forward. -- to certainly I will to little a XXXX, impact and G&A

some factor a inflation of couldn’t And for so, your the but those give pressures, are specific you model. I

the Barbara turn closing I to for will over remarks. now call Rentler

in Thank joining interest and Ross your Stores. us for you for today

call. Ladies gentlemen, you today’s and concludes this participating. conference for Thank

You may now disconnect.