Oxford Industries (OXM) 10 Jun 212021 Q1 Earnings call transcript

Greetings, and welcome to the Oxford Industries, Inc., First Quarter Fiscal 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. The question-and-answer session will follow the formal presentation. [Operator Instructions] Please note this conference is being recorded. I will now turn the conference over to your host, Anne Shoemaker, Treasurer. you. Thank

begin. may You

good and afternoon. you, Thank

statements I Before that Q&A to of forward-looking participants like statements we session securities made constitute the begin, certain in on remind and meaning would today's laws. the with may federal call

in guarantees, the condition statements in of may differ or statements. operations XX-K. documents release SEC, update press in actual to no and with results factors Important earlier discussed duty statements. factors or by issued actual materially Forward-looking the and filed results financial those today including differ from are contained not our us expressed in We to cause risk the our forward-looking our any are forward-looking Form implied that could undertake

discussing be financial During we certain this will measures. non-GAAP call,

to non-GAAP at a Investor GAAP the Due our fiscal press call is CFO. I'd to today's find in you our Grassmyer, introduce today and attention. comparisons today, With of will your we website Chubb. issued the material now posted in of I'd under on can also our measures oxfordinc.com. CEO; reconciliation release of our turn financial And And earlier to business the results. for which COVID-XX call fiscal to me and to Tom participants. like are Thank now, Scott like Tom Chubb, XXXX XXXX, Chairman impact tab include to over Relations You

you thanks of afternoon. to for and Anne, all us you, joining Thank this

strengthened and combined digital protect well our delivering past start We the year happiness and to We in an and our restaurants, our our our strong bars capabilities as as foundation at our took brands are for incredibly have growth. XXXX. store to decisive start pleased actions our investing and profitable of to focus over with marketing extremely customers in fiscal on the the reporting enhanced this to pandemic liquidity, people, be

overall more engagement accelerated, comfortable momentum shopping, entire returning to levels strong our have to our across greatly leading physical brands. become As increasingly consumers have of portfolio

made it post not that distribution year, XXXX all much XXXX. comparison it quarter compares quarter and XXXX gains last quarter is to channels surprising performance positive the much to even the will levels conditions the across the purposes were We more to able first to informative exceeding our impressive we today, have on we fiscal comparing compared the first that to sales fiscal Given of during for during more quarter is What's returning XXXX. about performance. our to of as XXXX. all believe brands focus how first towards of our of and is than Accordingly, strong XXXX most discussion we first traction XXXX of

our to Lanier an fiscal On quarter $XX XXXX were will margins. the e-commerce minutes, million of in share our in detail more basis, versus in the the strong from million provide adjusted of as businesses $XXX to to of we are million. few compared quarter earnings of gross sales First million million XXXX these per Scott and decrease in in by $XXX lower XXXX. and exiting. $X.XX range Apparel, in It know, $XXX to first the but of fiscal fiscal a $XX process worth is performance first results is $XXX of sales very increased to earnings compared $X.XX driven came outstanding which, quarter at due sales guidance you in noting that million

Southeast that the showing are Mid-Atlantic, while in during and In to from also alignment very performed we vacation question products and in recovering business and related some far is on Northeast our the Florida, socially. spring demand strength, the of regions quarter and the at so pent-up the and travel our reengage desire focus traffic a Midwest Texas somewhat we Our improvement are bricks-and-mortar nicely bar travel, this summer brands the slower the restaurant social the a benefiting and saw stores, no in There the generally and to quarter. sequential and consumers' sales most with pace. with occasions

thus country true value expect that challenges We that more our balance of year year we the regions brands to of also as we during continue to last this said have and to that for results projecting the are we demonstrate of we the the staying normalize. That begin believe this the year. faced the seen far

delivering paying optimistic off and those Our commitment messages the handsomely happy upbeat products messages consumers and and our our our world as of to brands through to the is services reengages.

increased gross quarter with a wholesale price we our are we continue helped the to a capabilities to and selling our to over XX% in have investments in results. and hone above, while quarter control, bars restaurants. outstanding stronger lifestyle Island improve through in by and amazing and returns we website made improving increase contribute enhancing gains Bahama, XXXX sequentially. to lifestyle. operating message types to our true our excellent life deliver omni-channel restaurants. relaxed overall margin we in and operating e-commerce positive very customer In to this first healthy marketing initial close our were stores coupled improvement addition, restaurants, Libby island expense making and and our make and deliver our Very staying We to seeing By stores, in marked creative of service through margin, first the brand brand's our the on able and products, Sales digital outlined wonderful continuing brand, IMUs, content, importantly, stores bars continue in full XXXX. In in driven importantly, income and biggest came the are our guests levels, in anchored investments e-commerce Tommy our and to

we We are margins quarter. achieved for delighted with the the

Finally, while see men's that we were pleased strong. in business our to performance was

even was Tommy stronger. at business Bahama women's Our

first Tommy we said we room loyal delight even That Through base. to is have dedicated intent guests. honored our there to the state investments of off results. as paid we resort anchored with pieces store lifestyle being our and together and mind. and to island say, believe have enhancing and Pulitzer established, seat color our we quarter Bahama and strong true made are the during priority very enhancing the reach that first priorities on We sunshine capabilities, easy cadre we customers. investments Staying customer of comprise in served focus, that loyal Lilly feel expanding a spring more product the the creative was fans on sheet resort have a very Lilly's focus continuing are the our our digital fashion to while quarter. brand 'XX serve its with are well we on making This happy the for comfortable and in print, customer good

in continue continue sales the We engaging to came feel consumers at improve, wholesale quarter and operating world. stores in exceeded XXXX XX% growth as physical in business to sales, XX% first an to our as increasingly In in see while XXXX. the from 'XX quarter margin e-commerce, strong comfortable compared first total, impressive

she up. as this strong bright renewed vacation interest collections rebound we to drive calendar lounge in thinks to At time, and Our as been tennis about fill and in social summer. the the dress have swim and saw healthy a and golf travel her continued same our product is also luxletic showing spots, our begins business growth, and consumer

year. Our she the look is recent our we resonating business and of drive results wants brand with have balance We that continuing to demonstrate through the to product the her. message strong forward a

posting Southern Tide, brands, contribute to The quarter, first all Our smaller Company quarter a Beaufort had Duck above year. and Head sales our this All XXXX poised levels. meaningful also gains great profitability three-year first Bonnet to

expect excited the will our balance provide our of year, We and particularly in results I to have strong terms details profitability. a will guidance are say are momentarily, very more the Scott about quarter we of pleased that but in with first year. do

Our on the start been that internal on have enthusiasm for factors. as the the is as we external external year. both priorities last with focusing I'll based factors well

recover, have we the us, and Midwest been progresses, slow up summer to Northeast the the of the regions the expect pick to namely some momentum. that for As Mid-Atlantic,

of to social high and consumers that will degree vacation travel, believe in also through year. We continue the interest events have a

long a upbeat differentiated, nature our after consumers appreciate and ever. happy, colorful brands than more pandemic, the products Finally, of highly

All of these strong XXXX. external factors portend a

we as result We seeing There are the -- benefits the talk are five our internal priorities. about are here. highlight excited also of but I'll

ensure core brand First, in our relevant our is for and true marketplace. values brand taken we our message to and today's care have sometime consumer message, to that

and messages. content our Second, enhancing delivering sure impact of have make are our full realigned it creative to we is our powerful brand teams the creative

various analyze allows anywhere years are We huge. better as the we of for inventory gives her reach work order from more my for way. year. also you than in customer world-class in new and customers. of our to rates be continue to the ever are helps results demand our identify in capabilities. call detail them This digital potential women implications customers. Scott? all enhance factors our sincere that part believe over our as now, new priorities and external a internal Scott customers ability the effort Third, way to her to the us and as the harder of and digital and improving also privacy, our gross we our of a please for ample in closing, In us to Fourth, It to capture and group are you on a combination potential benefits reach serve turn respects to on our capabilities, audiences for reason incredible puts margins to but and well bullish to do. those express our optimizing we over us worked our who appreciation anywhere. both many position for sell-through wonderful located for personalized enhance balance satisfy The in deliver use the to XXXX. our loyal the we employees, Thank the And men of and inventory happiness channels, me honing effectiveness I allow that last on positive from and skills outlook store our efficiency, and used of have ultimately, will X.X the us an additional fulfillment to of to our customers. media footprint measuring existing Fifth, data

Thank you, Tom.

mentioned, were just Tom fiscal you in Lanier is expected, quarter. comparable there. levels. and start Sales record walk the Apparel the earnings record of with with the great in the XXXX exit got how a to to impact through than start of we were the I'll off business stronger earnings first As XXXX excluding

in was businesses. branded e-commerce our XX% full-price of all in significant XXXX, channel XXXX higher than over with Our growth

Southeast and performance of significant particularly where recovery. Our retail saw the levels. strength in the the Florida, store Southwest, XXXX pace achieved reflects differences in in sales We real retail regional

we improving XXXX. and other recovery than QX, sales levels in experiencing Northeast, Overall, in a XX% country Midwest, where XXXX. XX% in were than over slower sales the versus are were our while lower still However, much in parts retail Mid-Atlantic lower of the

continue quarter second that restrictions see so and lift a the continue to summer to arise in as these far expect and We areas. improvements improvement in

in to Our five addition a of reopen and from which Marlin XXXX. of fall. York, with certain regions, increase benefited New except sales we the restaurants for are plan now recovery compared to All restaurants open Bars this the X% strong

to the work XXXX on XX%. adjusted an our margin, basis, to particularly done expanded which, proud have gross of improve XXX points are basis We over we

meaningful sales of lower As XXXX. direct-to-consumer demand first first in also were more XXXX. our of compared and first in in a sales distribution. focus these to from of benefited in mix Lanier sales of the full which XX% Apparel, direct our the at in our margin business our XX% shift resulted businesses in to of of the In investments remained XXXX, Gross higher-margin quarter was the our in quarter than high, channels has price first and revenue quarter quarter

partially it adjusted together, first operating points operating offset We increased expanded with margin costs, SG& all margin costs, increased XXX and cost groups. lower to have in expenses XXXX levels compensation. and modestly occupancy performance-based in expansion our also decreased by with incentive prices. employment consolidated all travel from IMUs over XXXX selectively XX%, quarter, variable basis increasing our product Putting operating the by costs, reducing

sheet our business cash flow Our operations. supported balance by strong is from and

inventory Here to end of first highlights: basis, of the are XX% a FIFO quarter compared on the some XXXX. decreased

first purchases are exiting, and we first enterprise inventory the inventory. the of Tide basis, and challenges, of contributing XXXX. to Excluding of Lanier compared conservative which -- decreased end order quarter also Lilly LIFO inventory sales. ongoing. XX% Apparel, management seasonal Pulitzer XX% including significantly Tommy inventory into XXXX. quarter production decreased level to first are inventory and are with cost FIFO delays, of On more Bahama, of a the each to higher-than-expected the transit year-over-year, enhancements Southern decreased higher compared a use and systems chain to efficient Supply quarter Ongoing transit

However, us product dates. our gives more release emphasis channels flexibility direct-to-consumer on on

Our is million In first at with in XXXX, by end strong activities cash quarter. XXXX. compared million $XX cash the liquidity of was the of provided operating position first quarter and million first activities the quarter operating $XX of the debt used no cash $XX of of in to

$XXX $XX in to fiscal the of of the business. of to XXXX to the higher in range towards second of has a $X.XX our expected consolidated quarter million the compared earnings second quarter approximately $XXX decline revenue fiscal the our a our experienced deliver down Strong are direct-to-consumer in and the of full XXXX. we expected to in outlook. million IMUs for and of quarter continued, quarter. Impacting in quarter XXXX of in per quarter be to we second brands an $X.XX over compared second quarter to second second the shift revenue price Turning million our sales, second strong first million contribute channels to estimate expected Lanier meaningful the earnings is XXXX. in be our the Lanier quarter in second adjusted the to Apparel second range margin sales to the share to XXXX. to $X.XX of of quarter to in and a increase compared and quarter to $X per in basis, The in share wind expect On positive million $XXX Apparel momentum sales We mix Sales XXXX. the gross in are

our due seasonality is historically Our sales brands. smallest of quarter and earnings third quarter our to the

profitable the We also of to planned season fourth the third second most for of quarters the inventory these Pulitzer sales and our end levels and clearance High events. sell-throughs after-party in Lilly sales first excess expected highly quarter events. reduce elevated in inventory the put quarter both in the as availability the of notable with are

loss XXXX. billion quarter guidance combined strength in $X.XX strong driven sales finish and quarter full-price of of of the projecting we're the clearance of As per We e-commerce retail raising events of to by in a previously now share compared channels to billion $X.XX are third distribution, per channel, billion result in and we Apparel revenue year, in our XXXX. planned net for range planned the to to projection $X.XX a the sales With the our XXXX. our our continued the in issued range for with in in restaurant results, share $X.XX $X.XXX to of expect Lanier from better-than-expected lower impact exit, first quarter the adjusted a an of $X.XX third adjusted compared earnings of quarter

year, initiatives, per adjusted XXXX. range We per be Apparel compensation and $X.XX now earnings Adjusted are full in Lanier to share planned lower Pulitzer increased expected levels, from of with investing lower share to expected costs, technology approximately travel comparable $X.XX is information earnings our redesign relaunch Apparel XXXX million We the Lilly $X.XX the in or be no million as of margin offset in by app compared digital enhancements. such including the of than occupancy expected are XXXX, share with $XX and plan service costs XXXX partially opportunities, the to in for gross For the in for expenditures. $XX employment exceed the Lanier top sales incentive investments quarter. growth marketing, fourth development funnel primarily of full mobile SG&A expansion. additional to with customer in and a performance-based per XXXX, marketing year continue and to expect meaningful benefiting costs, and sales to

Vegas, plan replace now expenditures at expected your time will full-service appreciate for $XX the comparable year the are and call Marlin in XXXX, We questions. Bar full retail center. XXXX and to levels. which will In Las turn approximately restaurant million for Town also our a to to Square the today We open stores capital new be over new in Hilary?

Please you. Thank will be [Operator time, state question-and-answer At this session. Instructions] Edward question we Capital KeyBanc conducting question. Our Markets. first a from of Yruma is your

question. our the guys. a on performance little afternoon, powerful incredibly good taking guess, on bit, I a click for good Thanks margin there. to first, obviously, quarter. want gross Hey, Congrats an I

you last that follow-up, brought away. a year, benefit about of think that inventory you a basis of the in a business had packed penetration, year? then of kind know sales? there Tommy when DTC Thank the terms a grow And flow think from as percent I can hit longer-term In do that inventory think overall direct as continue you into back particularly as Do Was a this the brand. to you cost you. peak? kind Or you you of you

believe maybe long I flip you primary business healthy. take about We're the growth. have total be Scott do which second to as larger we to I'll expect we term, grow. one, about at gross to me, and this well over will wholesale great that the do key a flip of Certainly, then or in I can our is percentage first that gross might driver the wholesale had very one, DTC than margin. take continue the Scott, think see. benefit the think, any of I'll the it then talk But a all Ed DTC customers, to to is performing XXXX recovering. to -- it excuse and margin? talk But as do, part was is I it be want to Ed, year, it over to do our of

a of really was year difference health. for was kind cost over. market could that I merchandising lot also to not we that a our the we spring What no I significant really And bunch inventory And has what with job of have a think And really delays carried to our there here. flooding last helped was Yes, really do from think of already brand well it it had that of allowed what team us It the with. excess us of inventory helped some with to that line. it. did not allowed just we we into buy already transit taking great merchandise early inventory spring have because are

there. So, delays we had no really

one historically, it. or Got that guys new you've out know you've follow-up. know And as some mentioned were increases. product roll price taking new other introduced some I you I tactical you done are functionality. Are you of kind the price bring wholesale taking you basis Thanks increases on as similar new some more out Or of the price kind of product? approach increases? to a

than Ed, increases. selective, is pricing across of more it the type It's board

we we type area tend performance performance Yes, to gross more where in a introduce also products the higher get products, have new in as that margin also.

Our question. Citigroup. question next with your state from Paul Lejuez is Please

I'm Paul. to I you're filling It's much Tommy the for really delays business, is how guess was of business international then the question tourism. what to wondering was sell-throughs? was outlet supply expect chain. third hurt the are my I in more And the first lack your there a lack inventory your to just quarter? second questions. Tracy I Is you contributing that having wondering, seeing clearance by in related be on in of just Kogan two if had

on versus in give in-tourist If lot. outlets a those stores? your Thanks some price that the those not? in your maybe are regions full versus you difference could color Are performance

Okay.

will, be way any the primary much we've chain On as sale impact that, having that the of in on that higher answer having that, the had year-to-date. later may I inventory question the the would after-party of supply not the that cause, root sell-through Lilly Pulitzer is as the if and Tracy, you driver year,

full-price ultimately the business inventory harder with more end chase the issues as up really leaving for for sale. chain possibly as make us well as, for that us inventory would supply it after-party However, for to

production we due with challenges So, the as having factory well to some some in delays are delays as the pandemic. end COVID at in shipping

But all selling of outlet much of think we've is captured full the possible, part tried then during the on As higher-than-anticipated early cause price and factor that real we've sort the as the into the forecast obviously year. to our And of that. stores?

Yes.

to that similar really our way We Our stores international the our some from might outlets much are not brands outlet don't travel, and there. retail. down total benefit

And the we little pricing, are inventory sales a in inventory, are our having the so outlet, inventory. in healthy leaner gross to margins discount little down, a the just bit and good in previous less have able While very to is very we had than better to much years. we're get a

up. businesses, outlet overall, but down, sales So are are margins

healthy. it's So pretty

is Our Susan question. your next Anderson Please from state question of B. Riley.

or is penetrate that in them to pick perform Hi, to in and I yet? then the to started And curious well, up to opened pick up also, Northern continued that's I'm the quarter. to now? expect improvement South they've mentioned see curious also good seeing that then what you've up has I'm Hawaii you're states you evening, just as think curious, if seen open. nice start you seeing the the if

Yes.

the to improving. of which the they Mid-Atlantic, regions lagging called three were are Northeast as So sort that we out, Midwest, and

that all is think for really more plays in there. And all of think more lifted have bit to heavily the continues are that. trend of tourists, those our year. those you relative well. Hawaii, be are but I It of to times as more less things. I progresses. out by stuff, to vaccinated. start still our the other coming If tourists. the will as And as slows places. the good. to sales actually as is continue us and In during seeing to types get the year have of to will And there nice Japan brands, a won't at a would buying with as good bit versus not shopping are of I we're the there. very summer get the or during issues always people more We're are and years, driven place, international people recent but picture big more out because like a that relative island months. as it's general shopping really from you fast which and summer point summertime and or us a be will it's expect, that slowdown performance the other and people the the restrictions it seeing Australia, of South, be feeling as think people there's island what be Oahu in time pleased a earlier U.S. we out to down mixed travel for there look in time comfortable those I in be sunshine overall think warm bag the some as a then to rely still would are and The places on that the compared People especially want from the recovery, year, versus recovered would and of and states, They've locations that about for performance that say out And Florida performance restrictions you And that some start good. any other year, out the weather I'd we

which in back thrilled for I get first that quarter. we with will well We're bodes a think the continue us. where that regions to the in better, as XXXX. And us. positive Hawaii with that still is again, But for we depressed think online, was come certain they all saw from of they were results

then both? And helpful. maybe all brands customers shopping of the pre-COVID, online indication new into something? or are but very I'm now because shopped hadn't just curious, you're in-store also seeing brands that's that are if come if that or or And maybe customers or back customers hadn't they coming they're back now coming or them the new and gone That's Great. you existing the capturing

counts new yes. We're are are is and adding across online customers answer in both it's all The had yes in-stores, that brands. we're past, the yes, customers seeing We're customers customer we've and that -- and really building. and

really on it And choppy of customers and looking closed. And pretty pandemic. we the well. of it's for stores that a customer we'll first an obviously during was when stores the be year, us quarter good the of that the a little trend. there, Obviously, hard in able but of all was metrics through there are add as of some think the got continue area new to lot were focus And to lot a

Your next Advisory question Please Telsey is from Dana state question. Group. your of Telsey

Hi, on afternoon the congratulations and good results. terrific

comes thinking margin of believe of brands? the for towards XX% about total As year, XX% you e-commerce, the and are from accretion e-commerce and that you think that full percentage of nearly reached each last you and sales sales, about e-commerce I had increase in relative price How now.

Yes.

highest has step-up very year. does. the you a They than Tommy year both of So Lilly year. big Last penetration was as e-commerce unusual a know, or higher -- a penetration took last

XXXX, but it total, be it in in year year, a think estimating I XXXX. be it where significantly be will for was be over last than will to total which this percentage XX% in a the than smaller higher it at And XXXX. significantly it up brands, both about of bit will As was it pretty overall, we're was still, enterprise,

still able going sort the of to Dana. probably I baseline what you to where bit new a stores is be year wholesale really a first year, is in recovery think that's e-commerce 'XX of of in this where the see do you'll because mode the still have

But think be business the very baseline. maybe that on get fastest-growing let of business. we impact probably of Scott a And the us. you little profitable more I'll like XXXX, so business? e-com And probably to the from I it. It's continues part margin the then for e-com elaborate there,

Yes. Yes.

Our it, e-com you is is you high do extra a have Even ticket, very a cost some though which have growing. profitable business. around

been our has ticket are average and higher. initial growing, Our margins gross

extra the fund cost with easily margin. to able are we So, that

have invest do e-commerce those So business. business, continue off, it, and investments investing we'll in paying we the and to we and been have really that like been in

two it. Got just follow-ups. then And more

out sounded One of had regarding coming learned how store efficiently the like is of labor. you run COVID the things that stores to more

have of this the do of margin forward? part leading stores margin operating to beyond increases? going how what's flow-through the about think As you is the And reopened, labor gross

Dana, think now. of of benefiting deliberate. say, that has want. we're do there's filling many is yes, how than we little And that right I We actually if And or operate did I from At having you costing we're There's thinner probably us think actually sales positions. intentional, will it little as efficiently. sort that the a part a it margins, is flow-through. employers that of few dollars. more to of open then a would I the learn And it's and a to trouble are now right with running bit part

us less can't I'm on So dollars, labor just people spending cost would sure we hurt probably percentage -- not because as a it's sales. it in in. as get But absolute of we're

congestion the about think Got we do how inventory to hear, balance inventory it like going continues fourth the then lasts? about it. how think extended? And as through you approaching seems as year, long quarter? this be And you it of Everything the

will to deliveries happened cushion you we the quarter, which of absorb we'll hopefully, the delays, plan that of that thing that little We at in more One be into accelerate in inventory order does. And some into for any transit those that. when orders, quarter. for it in fourth any a get least first spring, especially of to Yes, the the earlier earlier. did ordering and on we merchandising then attempting to -- especially in resort delays early just build and time kind have calendars

we inventory efficiently levels, So and more inventory. -- are operating with

As be XX% far not a lower expect year. whether percentage in we as year all should to sure. below will it as quite the big or be not, be whole That and quite

the with the inventory investments. to we think due can less I run of just business some

from question Our King. state CL your of final question. is Steve Please Marotta

To at how the next about actually high year business would extent guidance up? you is the very, maybe address, this good, standpoint, I Tom, I'd there's could for talk too talk about performance maybe you next from good. year, you is term? think expect long know, to ask a you and given to you maybe the can't the you very specific And can margin that reopening, a year but much very but for this guidance on like next optimal lap operating giving very how level be what is year. shaping

this? Or you you a maybe you -- margins playing -- themselves just on a dynamics you at this the the If are the little above think build are can off how and bit little the it if frame in given where could industry? you all could of where can bit of moment,

with But partner, the the is question, this been making of with for get first a And as higher and detail in last in highest have wholesale flying also are us of let those we what that we've were helping We've seeing like. really did and you continue long But paying resulting you the Thanks emerge we next that's of you also went doing financially to my paying well want developed Steve, that to long And I'll we we as are you, do do time But us standpoint survive. all what and benefits at not further reopening to we we and some business minute will in enterprise-wide that time all we it. in of Steve. activities as also want this only hard that we That's very standpoint. our that operate Thank is thinking And make what when And would be year Yes. brands, tell we do margin. have our into of couple out the you those me the driving efficiency our an on are it. prepared to very even love are if internally to? the helped inventory we helping part term, but we message our have And than doubt, today of while and this the across we focused believe this the of deliver believe I it expanding sure I that more we're the on strength the would and from focused off. Scott, from is Scott, pandemic, off. very and expense of looks drive could margin term. remarks And a priorities last leverage we and on the operating benefits those, was through about in No that brands -- over we brands part here this wholesale sure position and chime at the that skills gross since really of look priorities reopening, also our business, margins. believe predict as efficiently would we done what ultimately is of pandemic that on direct-to-consumer the an we're we our for operating year, year, level, pivoted you a the tell bolster to drive stronger But sales. that come to trying our focused we've stronger were operating colors. is think I it's businesses. that is know, months everything which

company, be I operating to expect mean, company. Total margin Yes. really a low double-digit we

always this future in have to this of to them they will I think believe not-too-long-term a and we for at room certainly felt happen get a we lot North. can in them this there XX% Tommy get of But really we that digits margin think lot I there. don't to I Bahama, the think year. that territory we're year, And was can And improvement. Also, year. operating enter we've going progress, that get double year. this want into double-digit

-- So we expand can Lilly 'XX has think slightly They levels. great have, always they then over and and maybe margin margins. operating

think profile and continue so, to margin improve. and think I can improving, it we -- So is our certainly

now question-and-answer of Chubb will the for the reached session. end have I We remarks. turn the Tom call closing to over

September Thank and quarter our second all support. to you of when you. look And we your and in for to in report forward to you, Thank your results. again Hillary, company we you talking thanks interest

conference. today's concludes This

this lines a You at day. time. your for Thank you participation have your great may disconnect and