Oxford Industries (OXM) 23 Mar 232022 Q4 Earnings call transcript

Greetings and welcome to the Oxford Industries Fourth Quarter Fiscal 2022 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host, Jevon Strasser. Please go ahead.

Thank you and good afternoon.

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

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

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

non-GAAP the Investor tab at a financial issued You GAAP release press website of measures Relations under today our can which posted oxfordinc.com. earlier find to of our is in reconciliation

like Chubb, for me today's I'd Thank you call your now, CEO; introduce CFO COO. With Grassmyer, and Scott Chairman participants. to and And Tom attention. are today and

Chubb. like I'd Tom over to the call now, to turn And

Thank record you, the in and Jevon. appreciate We quarter joining you and XXXX in your fourth fiscal the year. performance and full both about hear time Good us to company. for interest afternoon Oxford's thank our

are enterprise of incredible our our long-term XXXX. presets maximize important that sustained of the to amazing fundamental to for profitable create Each critical elements during proud shareholders our happiness, our We our in a tremendous brands lifestyle the we stayed and team objective to enterprise value. were to is always, anchored purpose achieved As by about people. of fiscal own growth our success is of results strategy year is these portfolio extremely to shareholder enterprise these and

directly The added year-over-year, was balance XX% brand, addition Was all by during to year, our which and delivered We for both Bahama record top $XX.XX portfolio in have evoking produced adjusted Brands which XXXX. this followed line XX% growth are by the simultaneously customers organic overwhelmingly our creates year-over-year sales distribution. happiness brands. of for Group our purpose, profitable which through of Total and we on Emerging sustained up and the in growth Johnny a XXXX, grew XXXX it Tommy a proud to combination XXXX, of $X.XX while succeed and led our When compared margin fiscal During margin. largest expanding XX%, in EPS our XXXX operating increase quarter of channels to Lilly we value. driven to This in generated Pulitzer attributable all XX% record are by focus on our brands growth The ultimately results drives our achieved fiscal long-term of growth fiscal portfolio the shareholder that came basis. in our respectively. third we of the previous from growth lifestyle increased gross we XX% of the

did We are financial happiness reflected customers. front fiscal as our on during linked results customer XXXX to to our efforts in outstanding an always, evoke as our our KPIs. job So that by

differentiated million not customer we with customers able brand, numbers at added end year Was X.X to XXXX. Not included active the were to million the grow We -- including finished compared active excellent an brand clear through Johnny active the brand product X.X experience. brand a we is long message ultimately newly engage of our customers be marketing of what target live to ordinary it lifestyle people a and When the very stands delivering a to very brands. lifestyle campaigns, for shopping people, want from by are brand, and uplifting they when then ordinary job with brand creating Across even innovative different audiences and In fully crystal universe. brand. that can are you lifestyle A inspiring that of loyal and focusing about world portfolio, our that for a And product with you power a at. each of being world on you or reinforcing them resonates to and and our creating happens, and did an hospitality an our time.

was good within portfolio our a composition across our having did composition businesses portfolio. brands perspective, we of year XXXX, the our From of lifestyle that portfolio the divested driving Apparel during consisted performance XXXX During XXXX. managing the and first a exclusively both Lanier

Johnny a also pleased bohemian have modern luxury lifestyle were affordable to apparel Was, brand. we noted, California-based previously added As

across responsibility a our for portfolio terrific a and in capital establishment corporate the to long-term a of our optimize across capital the A human shareholder fulfillment include allocation. championing key our information and essential was of the area on enterprise-wide in priority enhanced at to strategy investments, IT marketing leveraging From project the lifestyle department, performance knowledge resources example of our for functional initiation brand driving is the agency examples the our of across an of Other on technology center value necessary was succeed. of enterprise. this maximizing creation enterprise. sound excellence aimed An perspective, part enhancement XXXX in-house return enterprise of leverage service always, to to Brands a excellence of and the each as Emerging

its $XXX shareholders to program brand all an million form to with million return substantial million, acquired Johnny $XXX and growth $XX Was business, additional million the million in of year completed generating flow, future a our in able were Starting dividends. repurchase in the cash buyback $XX stock cash and and for short-term the of potential of the million invest and we $XX our $XXX investments

able while growth have of balance investments to shareholders been sheet. our proud capital future significant to strong make are business, both a return We to in very all maintaining our the significant and

of the all brands. margin equally are expand during in again, XXXX. Once should our about Gross good X We our excited have to year. also plan growth for plans we modestly

XXXX's and is more includes XXXX that is that that in operating what income than line for almost an than was margin plan it XX% it larger top is XXXX a XXXX, double in operating was almost Our level. numbers. not with of the growth pace plainly, put with size for size the growth. has our it businesses of the These or future kept impressive portfolio opportunity X.Xx And our of are platform to

Accordingly to in and infrastructure excited aggressively Marlin just within Bars our XXXX are the systems, margin and growing target outlined, I during stores, we operating to fulfillment invest business. support people,

of in confirmation is invest our growth to and willingness prospects. belief our strategy future our Our

been experiences of and that to Our product, customers is as distribution has our The confidence through confidence ability our people. A+ A+ A+ communication higher. blend always, source art now in science our brand wonderful never to to deliver and and

We each they and every are one them incredibly grateful of that to do. all for

turn now to on and over additional Thank our the you. call XXXX Scott plans for XXXX. And color will for Scott? I

terrific Thank you, each groups line all double-digit continued portfolio. capped Tom. that across strength very driven executed Operating channels We selling had a in delivered growth brand. well XXXX, within and a by XXXX fourth top record-setting quarter the during

achieved largest revenue XX.X% had XX.X%. and XXX another also year, with top adjusted to XX% and brand, operating Tommy Pulitzer Lilly of operating Our exceptional a basis adjusted XX% Bahama, expansion points margin. a margin growth line growth

of Was, XX% with $X.XX were Johnny of XX% sales strong billion all billion from In net $X.XX year's net for in and bricks price last XX% our consolidated across $XX sales existing our increases of above in of distribution brands in sales in which full-price Lanier was which of XX% $XX growth e-comm, full-price wholesale full restaurants. The growing XX% and channels mortar, Apparel. XXXX, million sales million included included

our had also sales freight benefited basis points we lower XX% to freight in million after the increased very increasing flash Additionally, in e-commerce Lilly addition XX.X%. in from costs of Meanwhile, over experiencing to gross sales, expanded adjusted outlets. XXXX. Pulitzer's in half sales the XXXX of margin second elevated rates and $XX We XX

flash sales margin the IMUs addition We better as the from higher Johnny saw XXXX Apparel. as lower gross gross Lanier of of additional was gross by well which a margin the and the increase benefits margin in of Was influenced margin, and cost exit sales mix the Lilly we partially due items sales more our by gross lower raised These prices in offset of inventory lean on extremely than Pulitzers, impact increased. to larger XXXX. XXXX were flash

our SG&A in as wound purchases as compared and fuel to with inventory Brands by existing we demand. up businesses $XXX some variable inventory increases higher had in employment million our expenses for inventory were to driven XXXX Emerging expenses costs, advertising costs, last growth. year. increase Adjusted This expenses was million other $XXX also support We and Group outpaced during excess markdowns sales

million period we that Also, Johnny business, the of Was. associated SG&A XX-week for Was Johnny $XX XXXX the with owned included

weeks with million of leveraging adjusted relative While yielded increased, operating operating an at the compared to Result or to of in they $XXX this Was operating XX.X% and slower expansion growth, leading the so operating XX income a our associated XX SG&A Despite already adjusted This borrowings and XXXX increased of pace all due results points or Was. $XX.XX. partially did $XXX inhibited Bahama of SG&A. strong dollars basis income by XX% increased XX% of XX.X% the driven excellent for Johnny from since of the income led a adjusted to XXXX. the by with expense these to acquisition tax to an higher growth Johnny effective This offsets, offset EPS we acquisition operating in the was in September. EPS to improved income in margin million Tommy of XXXX, rate sales interest

optimal move good basis, now up outpaced to on inventory purchases at levels on FIFO momentum to than inventory. capture XXXX. inventory the demand. built. the were to With or up a inventories are we of Inventory the $XXX demand we in the I'll we position to with were keep purchases beginning million as sheet, sales the accelerate year balance year-over-year lower throughout XX% a beginning unable And

receipt $XX million inventory -- well. of balances the me, factors million inventory Was and acquisition to disruptions, inventory about incremental other of mitigate two chain of supply risk excuse additional inventory contributed of the increased of as about our $XX to of from the $XX raised potential early growth. Johnny Additionally, million

XX% with a inventory fashion key of over years, core items XXXX, core products time receipt which than product Our with the growth period which we where early is in our even planned rather the reduces and were in product. same our growth outpaces our strategic inventory focus Further, recent items and of FIFO revenue XX% of has key over greater risk. much on inventory mix

our had outstanding acquisition $XXX considering a liquidity equivalents million Was, cash XXXX. capital our returned equivalents of cash used our million through end of under operations, at to dividends. versus other and fund and We After our Was. as items help and the acquisition million end agreement repurchases $XXX Johnny at of short-term of cash flow $X cash investments of as revolving expenditures investments and borrowings We cash of million to equivalents XXXX. we our capital and million standpoint, short-term and cash cash and the Johnny credit $XXX robust from had of $XXX shareholders of the well share From

note earlier amended revolving of March also to extend this credit XXXX. of July I month, will that that to million our we agreement from agreement the XXXX maturity of $XXX

purposes, for For allowable on calculation. extending variable other by as the the with for rate interest all XX borrowings the basis certain SOFR agreement to term, increasing LIBOR plus prior agreement practical the and is in base amounts XX spreads asset-based basis an than borrowing increase points, assets converting eligible points inclusion loan consistent the

from have of share the XXXX. of the of purchased during repurchase In commencement came open repurchasing XXXX fourth market date in that the total, our than of directly shares million shares of we to year, more the last repurchases. representing quarter $XX we million the of completion dividends initiated shareholders outstanding and XXXX, $XXX from X% program program. million X million share via this December capital Over returned XXX

payable announce forward, quarter Directors which XX% dividend per $X.XX. that first is am April share $X.XX the I from Board declared an dividend XXXX for pleased Looking quarter's in to of prior our the increase of a of of of

I'll now some spend time for on XXXX. outlook our

first XXXX. in $X.XX plan net of XX% be and billion, as full sales includes of increased $X.XX $X.XX in which e-commerce to year sales and store consists as well the not sales price growth to Lilly between year, growth, having in XXXX. our benefit brick-and-mortar outlet For XX% billion Was lower Pulitzer, Pulitzer flash the we range quarter full existing full to sale and e-commerce The flat and the of growth brands an XXXX the mid-single-digit sales generally of the at of as XX-week Johnny flash e-commerce the compared billion sales of wholesale Lilly is channel expect in in

and Was increased These which IT a sales SG&A, a by inclusion a sales of expense brick-and-mortar expansion of Johnny and XXXX the the both in higher gross we offset year full direct-to-consumer margin partially full-price expectation higher expected brick-and-mortar We in margins spend of are proportion wholesale and anticipate expected modest flash increased gross is lower margin invest business be for from XXXX. XXXX, improved and gross spend and higher SG&A opening including of as locations. in the the sales proportion business, higher than higher XXXX our to in and employment technology and resulting locations at to sales additional cost, grow including depreciation rate information e-commerce

will items, levels. we decrease these all XXXX margin modestly Considering from that expect operating

million the that the in fourth interest first anticipate year of about full we second $X million to $X compares of the smaller third to and higher interest quarter. $X interest increases half and quarters expense in with in Additionally, a in expense at XXXX. million, This decrease expense the quarter,

tax and between of from inclusion first considering by as be XX% significantly In to in versus in million XX% sales partially and first tax $XXX full the benefited expect and of to and sales to items, $XX.XX last operating our certain also is XXXX in XXXX, we such of of utilizations of $XX.XX to offset $XXX of valuation these EPS between XX% We loss with million adjusted of the the EPS expense. operating adjusted some higher which the quarter expense the favorable income operating year prior expected year items year rate interest allowances. reversal After compared of $XXX XXXX XXXX. expect $XX.XX of income of increased Was businesses compared existing Johnny and being million quarter increased a income effective

we XXXX, our and deleveraging, many same rate. of expense quarter with SG&A modest some margin tax that gross sales, impact effective the factors expect driving the interest first a the higher of higher In higher improvement, year results

first in this compared to expect $X.XX first XXXX. We the to and adjusted $X.XX EPS of in quarter result between $X.XX of quarter

Capital theme open the CapEx to compared in I'd investment store executing on The systems in Was X to our including to million planned our approximately enhance of various this million distribution pipeline an its year $XX which is discuss of multiyear a in its fiscal initiatives, primarily XXXX Marlin $XX in significant project XXXX. year, in fiscal commencement and direct-to-consumer by due increase investment XXXX. expenditures torch XXXX other our The addition XXXX. our Johnny to store throughput increasing capabilities, of for being at Expanding brands. Alliance center direct-to-consumer briefly to expected technology Bars, is like the on are increases XX of be expected openings stores in outlook to count or more increased

it this XXXX. expect begins elevated in level We XXXX continue moderate expenditure before to to capital into

Moving beyond the income statement.

mentioned positive delevering We the increase also year. expected to previously fund dividend throughout position investments operations Cash a a cash make us our ample liquidity are XX% have quarterly room the outlook from flow while and to on very as giving strong, be to well. an

time call now Thank today. the over And questions. Stacy? your you turn we'll for for

Sandler. [Operator Ed comes question Instructions] Your Yruma first Piper from with

I services, on guess, know guys decentralized I Tom, a shared you historically first, very run organization. the

term, then the when leverage? a So wanted of maybe And the to Does of investments expect orientation just resumption in should business? some we the medium you're I of as of think it guess kind change I SG&A we the unpack making.

Ed. you, Thank Okay.

of sure sense shared each as services where bundling those those is will approach that successfully the that brands to lifestyle So is so. is to the then here part a then in utilized that each -- our excellence functions, be key look functioning what key of all to the a do objective really high the to basis at each key in we of of And do good make makes on successful run a that very we at things to is the brand. you our appropriate. at we And where want drive to it functions level And need what means do with be is to at say, at functions. company headquarters

to I respect so. gave smaller sense with with that We're just brands example that it it And to needed the the in that Emerging you we'll prepared need do effort. remarks thought digital Brands to to previously, we marketing may think in was able in group, the I lifestyle the we that not going order makes do achieve which discussed to bundle to they have to but as where that the brands, be X to default be successful marketing to have that we excellence digital

a we're We and year. open results of digital that X/X the in the started growth. of deliver they the that. excellence and and achieved exactly way very center very that that pleased were going Emerging XXXX. that X/X during part established of the did within wide last marketing And We the good XX% built the about year-over-year to it's we Group through able function Brands year, were So of we reason that was by

we that's prepared corporate enterprise-wide the focused on mainly responsibility efforts. would about during Then remarks, talked an establishing what call ESG-type department, I also

of enterprise-wide As had all to and had highly there And at what doing set that we the responsibility own but always you was market was great decided that also Bahama, again an people that's professionals function we've excellent which that thing. a ESG in scale it. benefit thought and once a been that, front. been the up we in basis. the and about -- need from that be so and impetus been more we function to was working the on is would brands out regulatory corporate doing now our on well do know, And right front their largest both brand, this company Tommy very and

the made We moved as actually So corporate function. enterprise-wide we Bahama that team centralized them Tommy well. a over

everything. focus So making areas centralize. an like we'll do customer. very thought don't In that's going bundling that going sort sure never not And don't through areas, going is directly we'll just to on customer We're product we're it. of touching we a that centralize advantage economic I to we're Things there the think we'll we're in to centralize. I think where design, are that process those facing Things and that. that excellent. then think.

that help? Does

pencil on SG&A, it leverage in Yes, of of line? the on kind we when resumption does. And can that

Yes.

As remarks, we year. 'XX, when got get into some projects expect in are hopefully, we prepared will of that in we deleveraging and lot some the we've turning. also key areas. in in form of we some resources this a And said system the start But people investments adding

We you Bars. retail session Marlin know, have as Marlin Bars of lot a going a open, about and take time from also period. X-month And on activity you the it's the X you until including these

through going So all P&L. preopening including you the have your costs,

but think So we bit playing I honest lot business. a with SG&A. you, a help exciting to catch-up of And the we're of are have fuel there be of to that little going on growth items items are future

you dramatically. are when grown infrastructure business as it's always the has to business And sales grow at Our -- grown, it's the -- get as way that it's growing. quick you're hard

catch-up a in bit 'XX. we're So playing little of

Group. Next with question; Dana Telsey Telsey

the see quarter to Nice fourth results.

I there year you each -- if it business this or new as you What about where look looking brand, the as And taking believe. about of expenses, little they the think expected, we about products just and the on the should was wholesale you a talked seeing you quarter? could wholesale about some that where of could categories health year? on the at do then rate better exited as are the next the through than think -- consumer increases for you be you're exit As with in we how lastly, you are flat, overall? business. talked go And a

inventory very buying I so the their because of Okay. buys. being basis. careful think and retailers year-over-year them as Dana, on of very, forward down you Most a follow Most well these being of major people. I'll very start it many and you with planning cautious about the question flat, on we're actually know are wholesale are that

in this So the the that we our the an wholesale achieving selling this in and is on actually outperform year. see in results floor. view we're Flat

pretty to prudent to really with inventory happy we while we're So like we'd see being see growth, And the also about love retailers big that. their buy.

consumer, the think is what I our the would in of this of results, that that health health for consumer I consumers service, very up been the much of good. we shows fourth you has the on consumer been tell has and Then the the the quarter health good

been We well hold be not in the our for to major in at economy sort it, risk primary the very happening response and And to be banking through up regulatory continue looking We're the that. will a Fed world it year. we good macro think think to probably about of I this pretty and to the point the rebound direct is expect consumer but what's

that will regulators. Our through is that and belief the the we Fed get

of without be there through the problem. So one it out that I factor the uncontrollable navigate becoming much But moment. sort at is us that think a larger that would

And we going they're to through get it. again, think

consumer thing? up. of the But sort week, it's hard was top Our not hold And have in that what mind. to third particular, of this will

Opportunities?

that are really that are there product categories. or standpoint, big I existing think Opportunities Dana, more opportunities from some category Yes, a growing about

we've within in that. been lot within And So dress category business, I Bahama total think as build is of room our we Tommy know, large a got category, the I has strong market. very in thing women's you same apparel Johnny continue very Was. to think a to run would dress that I you the But tell the there.

big rate very I category think a Then of of addition total. there. good types room it lots percentage enhanced to Historically, opportunity in grow And a to again, they've think those an with little of grow of a And light at very a their got opportunities sort they dresses where I growth. of in can we success a been they've on having nicely. large have as building in they're dresses particular. very they're

not the to small an items, there the out there don't performance going I are of with an Pulitzer, and choice be throughout do fill-in to And some recently home is think opportunities the that's in one But term. some and overnight probably category. over enhanced we I Lilly huge enormous started long be even product. concept company, think is some of like a we with frames gift. of we're destination business assortment the the picture and elevated started think in elegant some sort space. can and that for we've hostess that. But pleased early And we things

I the similar that opportunities think got we've like across company.

Next question; Paul Citigroup. Lejuez with

Tracy for had filling in Paul. I It's X questions. Kogan

In done then The I first wondering up or of X embedded for about said I think you're with assuming follow-up fourth And SG&A. your much for last you you gross moderately was year? to or in markdowns XXXX? down if was And either levels margin on relative pieces, just for when And that. last then up, a guidance what's versus quarter, promotions those your talk wondering was have versus both freight markdown what then how I year? could and freight?

in tiny was bit use much fourth And pre-pandemic. it Okay. freight considerably maybe levels elevated -- pretty Freight, what the a pre-pandemic rates quarter. earlier the returned from to had much been our pretty from down of return airfreight

our -- of calendar. merchandising and we're a into fourth freight going think noise have we there accelerated rates quarter. not better So are really much really wasn't our lot supply chain, freight 'XX, our And we where in

expect So very year. little this airfreight we're really

a margins all So much in I gross factor will really in be 'XX. of at don't negative freight think

And on the markdowns?

bit we than it As we'll Lilly 'XX as our Yes, had anniversary-ing anticipate last we far those. in we inventory sale, Emerging little Brands And me, do some be markdowns. had inventory not -- markdowns was take to group. flash in year. did 'XX. think We in a smaller we

help. so inventory we IMU, little little will our the have Was add I be then higher will bit will wholesale bit higher we'll business a IMU mix. markdown start rates a then modestly lower and which year-over-year. think with And we do think the a And year the Johnny overall, for full tiny piece of bit And of be less

through advantages. So some. They'll 'XX I have mix margin we help think will gross running some be that

And a Got follow-up. it. I had then just

stores. like you I expect I XX looks you about Was you could talk was store. many wondering those for in of said your -- period compared signed to new already Johnny And model you've terms was of what you XXXX? there the think more And Tommy store actually to Lilly wondering what and leases payback store or if the new I open investments or how

make it quick then has our on. than smaller. I'll approach Scott to Yes. slightly a follow little They're a and brands. let on think other a bit comment Was Johnny stores I different But

go and somewhat their X,XXX square runs most I average fundamentally I all think -- the square location. They into been would a little the well of call, than a what Tommy footage little of bit stores nichier-type also smaller smaller some, or so feet, of so really than Lilly as well.

even they spot have first think great we're in Santa the a which that in past, Santa one. Fe for So and is in we store that's really, them, Fe we since opened but the bought them about excited we that

Vero Florida. Beach, a Another in did that would be store example I little tiny

it's brand. the and think a like feet square and it's right for little just it's XXX so I beach bungalow almost like it's

sort terrific. do looks they And And make then It of tend that. is just then do year-type own. all And their and there with niche it they really locations. work what they what's these to smaller

on investment some cost in little a details in And of I'll So payback. let brands. to Scott the the our actually the build-out lower bit level the other be fill in than tends

Johnny Yes. less. is Yes. Was investing

paybacks the than than that. usually on years quicker X are So some less a retail store, even

see different built in also productive. kick-out They rights leases. very several So they're you and

several negotiations. ways or we've we're signed it doesn't so we ones that we got various leases in but multiple probably were. and other X XX-year So of if usually to -- or but or X get to open, stages going got out

year, some this open year. might could be Some next

stores. we're about may Marlin a got We the a that Tide we're be very brands stores. the open new stores, opening open growth. Bahama, Tommy a and excited get few some still So about. couple for Southern excited X We'll we've in also We're will think stores Bars other runway there's lot of quite

Marlin Bars. That Bars going in the pipeline in Marlin pipeline and takes we to real a that while was something get

I able So the to several least for next next be we'll years. think year open X at and

we've lot exciting So I a think the brick-and-mortar happening. of front, growth got

Zatzkin question with last comes KeyBanc. from Our Noah

First, think on the increase composition? the just XQ any think $XX overall line if versus wondering just million and contemplated I range. that second, brand Was 'XX exit the And you leaving XXXX? that noted $XXX could million earlier inventory, I if position $XXX was about you color help rate in Johnny incremental relatedly, a you And of to million bit. by $XX guidance on of then are driven million you then revenue but inventory growth provide could how top and receipts by feeling the unpack on

Okay.

quarter for trajectory? or sales the -- mean Regarding the rate, the the exit fourth excuse quarter me, you XXXX. you mean of fourth of I XXXX, assume

Yes.

Yes.

did to So, our them the bit in so out said December had that prior us a remember, actually if seen than little you Noah, year November thought because back of not been people in early. call, back had that softer we XXXX,

not good what being And also in And but was that. our month. quite being our 'XX fourth as we February, tough like in quarter normalizing reflect a seen very like. of as I've ended more have So but QX, we February November about what in rest a then other surprised talk November as by Novembers quarter environment space good a we And had saw strong. had entirely results the a much February. good was people obviously, weren't looked prior up the lot then where actually we of

Xth approach pretty ahead Day get we've on July, Mother's we got us summer Memorial a catalyst excited saw front. And believe us. And of as holidays, that all we as forecast. the we pretty today, been and what we happy think into turns that sit the sales March which be what into the February. breaks has slightly for we've were we all about couldn't but spring choppy And factored with in and are Day, we more our and here meaningful Day, weather then Easter the of Father's We

far have supply to there's $XX goods Was inventory, them to as really make the wanted we million interruptions from bring And $XX and the and we sure about earlier there earlier. with chain been more as out in accelerating -- million had we Johnny

focus -- bringing a lines lot to of that and are items. in delivery. bring on you're key those where of the the you're much programs, that beginning bringing we mentioned versus in fashion In monthly, also a heavier have core We inventory our you tend at season season's in

inventory. a core that tend So key to item little carry to when a business, tends more you have more you

to when like growth acceleration, and -- has the the Johnny been. to what despite So, the outpaced 'XX expected back anticipated Was we compare you to our even are inventory and sales much

and the up our we're demand capture and about good feel it inventory, to of well set composition in we 'XX. So the think we levels

would over like I to turn to for floor Tom remarks. Chubb the closing

all in Okay. is Thank then. company and your interest until our you you much time well all June hope talking we in forward to and for again you your with very to and look

This concludes today's teleconference.

at your You this you time participation. your may and for disconnect thank lines