Oxford Industries (OXM) 7 Jun 232023 Q1 Earnings call transcript

Greetings. Welcome to the Oxford Industries, Inc.

First Quarter Fiscal 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. this being note Please Instructions] conference recorded. is [Operator

conference your host, will now Strasser to the turn Relations. I Jevon over of Investor

begin. may You

Thank afternoon. you, and good

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

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

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

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

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

Thank you to Tom the like now for and to over attention, I'd Chubb. call turn your

us. We Company. afternoon, and thank your you for interest in Good our appreciate joining

XX% X% million brands. other of We up last year, fiscal a be $XXX prior are quarter. in we Johnny acquired organic XX% pleased to solid to over be growth our Was, of the which were with XXXX, from record year, of reporting of coming Sales happens first and the five quarter which our consecutive the growth eighth addition

last the quarter the first for $X.XX quarter to compared was EPS $X.XX adjusted for year. of Our

X% our add our our it consumers end delivering our We execution million, is the at are annual was formula. on and to pillars, focus, $X.X than spend compared first purpose, these of customer on XXXX, a our results attributable of the first new XX-month and with year, directly pillars, while objective, was believe customer quarter active the X% $XXX. strategy, that rate at count more was for these higher the of which Star and XX-month last quarter trailing quarter our fiscal to trailing in basis average formula Our our end our end than increased North the our

As always, our maximize shareholder long-term objective is value. to

opportunities, Our of that can sustained in profitable strategy to of growth while to capital brands our return is evoke cash acquisition rock-solid organic generate is growth, our focus purpose sheet. earn the a to shareholders, our to and happiness, fund lifestyle and portfolio have our all is to brands, our deliver balance maintaining

stands Within deliver this retaining, through an terrific of how to wholesale in designed through efficient brand each serve sustained channels. and the and our the obtaining, the is and served that crystal first drives to products, be brands, clear effective promise customers shareholder and be balanced a mix communication on on delivering where happy wants the to of she for and what aspirational that brand formula long-term variety e-commerce value a customer growth and lifestyle developing profitable focus then of for retail

total our first of both Nowhere in men's of in growth growth did distribution women's all and where than our the business channels we the this in better of Tommy topline delivered expect, well, Bahama channels for business faster of total our on we XXXX. execute the than to formula as a growth of a and of brand, comprised XX% grew rate at quarter and compared XX% direct-to-consumer X%, men's women's grew, fiscal highlight our quarter the

A during the a to gross we quarter Tommy for women's us clear men's margin is opportunity given the that roughly indication able in women's Bahama doubled market. of our of that remains expand market is year. our and Tommy brand the the Bahama of last huge XX.X% business priority were XX.X% to both Developing a strength the size from

people, business deleveraging. SG&A as some a and and IT, to stores, marketing, continue result, experienced in in restaurants, We invest the modest

unseasonably pressuring brand's growth good strong especially Tommy last for on to largest gross of performance numerous include All the our expand markets compared quarter it for Bahama, all, the headwinds West very to weather and in quarter the Nonetheless, some margin consumer given spending. a XX.X% and margin cold to which allowed sales us the XX.X% operating year. Coast, the wet macro was

continue this our And growing second resort a during to million Tommy also Bars, could one open good Beach and to long-term Pulitzer, the is prospects largest sales our of invest not last bullish late future for Lilly be open brand the month. And plans later Gardens, year. its in to which scheduled about in brand this including with Bahama to X% million $XX We more year Marlin three Palm first we had XXXX. from $XX quarter

direct-to-consumer we we the delivered Our a of owing retailers the to cautiousness the in channel, marketplace. in channels wholesale while modest many had decline the growth believe

The operating some the gross We margin brand, the growth a deliver allowed to were but from combined invest the as to we during margin us in expanded sales Pulitzer SG&A the quarter. XX.X% able deleveraging strong XX.X% Lilly expand for gross quarter to in experienced to with we last very XX% margin continue year.

action keys was quarter year. the compared to our quarter change first last success customer-called our of the a with Lilly Pulitzer of to strategy the in as One during

a This XX% not hold a our as we XX% April. XX% very were in we $XX XXXX, flash off road merchandise, sale event Lilly comprised off sales gross merchandise million XXXX and one -store The with range. April results in the current In flash and attractive had replaced about spectacular three-day instead did a well-known down a online we resort at of that Pulitzer of of recorded period margin. year, sales to mark in

the continued our evaluate ways most to been while to added topline the generating newest in gross Johnny company. call to all both will year, it portfolio our very level. healthy growth we of manner the continue a effective is brand-appropriate having operating drive move forward and margin the during to we of third margins and XXXX delighted Was at margin As are part we and as tags have through the quarter brand customer our

in focus foundation Our full the this Johnny Oxford Was as brand. year, sustained the first its is the completing and profitable powerful year of platform onto part on our that enhancing portfolio growth the for integration

of and Lilly e-commerce about business, platform XX% improve Pulitzer best-in-class generates parts Johnny to are and this now We on already earlier robust which primarily Was have completed most our existing e-commerce of the stage leveraging brand Johnny project maintain we focused will in the its and the clear, with sales. be the Pulitzer continue To distinctive utilizing look of Lilly the to e-com developed technical website functionality Was its while platform. have features feel, own

Duck during conference continued the Brands Brands impact brands, Beaufort and Our our of investment people and suppressed Bonnet quarter's Company, pleased and was We we Southern Group. in sales Head position Emerging on stores IT, marketing, by comprise last the Profitability that year-over-year discussed Tide, call. our The to were the by Group. quarter X% over-inventory the in financial Emerging post three smaller growth

this completely but the will through around the arms it inventory drag on a it are be year. Group the methodically, of We Emerging have situation margin during our and working Brands

started But is it quarter February, very it good noticeably in worth a it spending. Starting stronger of quarter. April. the finished XXXX fiscal first in cautious in that late consumer The noting their was March became than in more

being result years have of interest rates our lower been in much Our promotional at led for spend this were affinity brands, time been consumers in of they they but traffic conversion year. We turn more is and marketplace trends the remain in their recent discretionary positive last year. dollars, signifying it more this how increasing than than has in cautious to which has a believe

next Based environment now quarters, for year the in than our we on be just was appropriate the sales highly to we we for what and June detail outlook incrementally in encouraged While forecast is would along our where second March. promotional appears it moment. be will below this, moderate performance business believe better we to our is provided quarter-to-date our initial that thought be which are expect when stronger, full-year we to early with April it few trend a a Scott May tracking sequentially

moderating happy brands, for aspirational six we the brands on While and to our profitable long-term on bullish value. forecast year, ability capitalize powerful shareholder are our we on sustained deliver to growth remain of our extremely our that drives the strength the

be will strong. cash be bit previously will it be a growth a expected, as While terms, and year in will exceptionally discuss should absolute Scott than solid lower flow, year-over-year still

of growth pillars, an future and margin. our our in pillars, future greater sales food IT, we in capabilities, team to a We or digits continue for set beyond. ourselves of operating mid those total invest people, years while to and XX% that formula portfolio grow and will for Accordingly, North marketing, execution will incredible delivering leaders, and up continued single brand upper formula, fulfillment to beverage locations people on XXXX Star our believe in annually allow our maintaining to us stores,

on for turn and for year. more the the call the Scott? I will Scott quarter the of over forecast details to balance now the

Tom. you, Thank

to pleased earnings solid and sales quarter another report are We in growth.

each last Consolidated XXXX sales of and our groups Tommy Lilly of increases Johnny environment Both $XXX two generated in in first of during of above of included mid-single-digit were sales executed macroeconomic strong million, year's percentage operating operating Was first well quarter first in margins increase for and which brands, fiscal sales XX%. growing operating excess achieved quarter net uncertain the million. an Our group, XXXX. XX% for a sales Pulitzer net Bahama largest of million $XXX quarter the and $XX

Lilly Bahama, after $X food and sales. We e-commerce our channels sales, have sales In full-price full-price not Pulitzer, million Pulitzer for distribution flash e-commerce, event. all full-price in the XX% increases in wholesale in decrease Brands, QX in Emerging aggregate X% Lilly X% did last across flash generated of bricks and and X% a mortar, and year's in growth with Tommy we anniversarying beverage

gross XXX in benefited inbound Pulitzer. gross over pre-pandemic gross in approximately margin freight gross additional has quarter margins first by by use. last returned both of mix from of saw of as freight Importantly, addition item driven costs Johnny no higher where Was sales sales, to the e-commerce as margin addition a higher and year increased adjusted We we to lower levels, Lilly the was in expanded Tommy well which to points influenced sales, XX.X% Bahama and XXXX, basis from benefits higher flash the better margin

Adjusted $XXX year. compared million were million to last SG&A $XXX expenses

to not associated in increases fuel SG&A and advertising prior our the quarter included expenses did costs, growth. This million costs, with expenses, $XX future business, businesses Was are anticipated year other of the which employment also sales support There Johnny and in own SG&A we variable period. other for

incurred is Pulitzer the re-platforming note, tech SG&A of summer. million related e-commerce XX% income Of compared of the costs existing website to to sales expected adjusted e-commerce margin by result or stack, we operating $XX which yielded million Lilly $X of ongoing Was to Johnny of million be The in to this $XX completed this operating all a utilizing force XXXX.

increased operating higher of was Despite EPS $X.XX. acquisition the interest and the increased we partially of growth due higher expense the the X% interest year-over-year tax by This achieved to period. offset taxes, to expense to year tax rate higher with to Johnny an income compared increased Was due and associated prior borrowings

our good or our million Johnny position year-over-year FIFO basis, sheet, inventory. I'll the a $XX for in a on the million inventories forecast move inventory. remainder up with of Was to now on XX% beginning balance to of on $XX deliver with year, including We're

product of even and planned supporting increased sales cost, core that inventory grew of for balances addition styles higher to growth, seasons or addition live the due In many quantities years. to

at equivalents, we our year-end our or balance levels. below to short-term borrowings year, year. finished the our our end $XXX on forward, the fund the well after year at of be used of with cash investments million balances We and a credit acquisition -- of inventory We quarter beginning sheet of under revolving $XX borrowings revolving as Looking the credit borrowings facility million Was. our having last some at of last expect cash, to under as agreement Johnny

$XX during $XX debt to funding capital first allowed Our $XX first expenditures $XX quarter last compared million also million million reduce to meaningfully of year in million operations outstanding the and of cash flow quarter, the $XX by from while of us dividends. million

for the flows of borrowings anticipate We expect and cash substantially of robust the year the of all by outstanding the our year. rest end repaying

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

existing XX% and billion The XXXX year between growth the sales full and in XX% sales the full to e-commerce we the compared growth the For brick-and-mortar in to full-price of Was mid-single-digit as low net channel consists as of range, increase XXXX. well and $X.XX in year, flat to XX-week billion benefit our to of of in Johnny which $X.XX sales the expect billion $X.XX includes growth wholesale. be in generally planned of brands

in We The more proportion a wholesale for rates higher of expansion inclusion year-over-year lower cost modest anticipate reduction favorably business modest the year of decrease a the was Was much full of to continued XXXX. margin and gross expansion proportion expectation margin will gross margin the sales, Johnny include higher our freight we as of full-price for more sales, achieved XXXX also XXXX. gross of than which direct-to-consumer full the a first the the by freight quarter, in impacted throughout year

in offset IT higher grow resulting SG&A both opening are sales and margins higher technology modestly we and expense information IT our SG&A, and cost, by a in depreciation gross and as higher both spend, partially mortar in increased expected mortar rate business, sales from higher employment in at including IT spend more than including continue advertising driving expected to and brick and which XXXX spend invest awareness people brick locations be infrastructure, additional higher expenses increased is to These XXXX to locations. and

the Considering sales. levels percentage expect all between of margin to these, XX% decrease we and from XX.X% XXXX of a operating will

the quarters third $X debt we quarter incurred expense half Additionally, $X XXXX and third, XXXX. debt the year our outstanding of reduce the for second, million, for each full compares interest about or outstanding when expense as million quarter. we million we This of interest anticipate less interest and $X continue that first had expense to of the in levels until during interest higher no fourth at with to of of expense

such a approximately operating from certain and year benefited the We tax loss some utilizations compared favorable allowances. rate as effective higher also to valuation XX% of items expect which XXXX XX% in of reversal prior

and tax EPS operating expected of with between is income year After existing to $XX.XX of in $XX.XX in the considering as adjusted adjusted items, we the Was our XXXX, of versus year being XXXX of inclusion $XX.XX incremental and be businesses Johnny a operating offset interest these lower those in income EPS full expense invest last and income by businesses expense.

in XXXX, $XXX lower of the XXXX, the expense, deleveraging, $XXX $XXX approximately we expect quarter to sales million we the expect tax second benefit in compared In as margin, divesting of of of tax impacted the quarter restricted higher interest to awards by the slightly to sales, we expect XX% XXXX. be a in with second quarter rate million the certain lower effective sales SG&A tax million of share quarter. favorably associated but gross late the rate of In second higher quarter at

in XXXX. primarily The the by increased We is year-over-year to $X.XX the driven spent interest gross EPS result investments larger expectation quarter and the being $X.XX of SG&A expense quarter than EPS second lower second-quarter compared generated to sales. $X.XX the profit from adjusted in this increased between and in of

Expanding I'd compared on theme million discuss in being to XXXX. year, expected investment million the are our fiscal $X like outlook approximately XXXX fiscal XXXX in for to to an XXXX. of be Capital CapEx $XX expenditures briefly

quarter, buildout the associated last Marlin full-price includes brands, year, relocations are increase locations, locations associated with weight. the Was these half the and end planned spend As all result with a few new in brick-and-mortar XX including Johnny second these we about across locations, with new three in of including mentioned by a remodels, XX about increase a the Bars being which approximately of CapEx stores should along of XX more additions net of and closures number store with

one-half with spend This expenditure about of planned associated these capital represent brick-and-mortar XXXX. amount the for locations

analytics, insights, artificial our will management data system and omnichannel our we with and e-commerce cyber continue data security, including Additionally, capabilities, intelligence, technology in and also and including infrastructure. automation investments various initiatives customer

brands. with Georgia for center enhance anticipate direct-to-consumer at we to associated distribution capabilities our a multiyear Finally, spend Lyons, its throughput project channel

on capital to from from in generating flow expect We positive $XXX level our position well operations of XXXX, to and including liquidity a very increase of $XX increase our excess million have a a after flow working in we operations million, cash million cash as which outlook $XXX cash XXXX. of significantly in

rate, This of level payment by the expenditures, our flow from outstanding dividends fund cash debt positive planned current XXXX our at all end cash of operations the ample of the the all substantially capital of provides flow repayment year. to and of of

table margins, beyond. upper operating Our to these the and at in XXXX XX% set growth for actions margins investments will on or XXXX pressure mid above topline well single-digit put and

for Shamali? today we'll you Thank call questions. for and turn time your now the

Instructions] line Piper first the from Yruma Edward [Operator proceed question. comes Please question Sandler. with of Our your with

Hi, good guess afternoon, me. I guys. the questions. taking Thanks two for from

you of into we of the you. Thank the have think most Group, for Brands adjustment earnings brand then there pronounced? year-over-year, as about back kind inventory is then terms said And about I growth? levels sales balance were the half particular should First, kind guess know put for Emerging I that in shape where when end kind want second reductions the adjusted you I inventory follow-up with you balance in specifically them estimate we to down of of obviously how a back of should the year? and I how think with you levels the with a of the the year, of the maybe And place that excess but the the of link more know line kinds was year. just get guess year the the inventory quarter, of going I to overall to to you've

call level think and being the your on EBT a elaborate Thank let than Group But of dispersed Other Beaufort more. will biggest that it take to the around it, We've Scott arms was say you and little Company, it on our Scott for year. the in going it's through it to a bit I Okay. I in today inventory -- It -- prepared but too. I'll it's through drag as was of mean both piece and the actually the this on methodically. our little got just Bonnet working we're continue the probably said was profitability remarks, we these.

our chain and year, of the last closing build chain part lower believe the that expect will to supply that year are We're to chain of inventory in. for to of of discussed and where be run speak year we be is baked year will by trying this some year and to end will our year inventory working cash and story a supply start be be capital is, year this -- the in a some issues. of or by be mentioned prepared good capital really in our systems, able cash be I before, it probably so cushions our cash remarks, with cushion quarter and we supply little some going it working weeks had as the build, gap are cutting flow. had quite pull good also had But out, well something out think in our of providing due just we to story we of to able maybe we kind neutral we a or last inventory a this lot should flow some we even a the is those of Ed, a will to we've each to lower I in good leaner end

goods, the of and in markdown taken -- as in little and little Bonnet to But And year. but a a of of were a bit margin. Southern we've markdowns, little the was Beaufort zero some inventory we've we they took Tide go build done and we through as Tom most bit got mentioned, liquidate QX the those markdowns last more

gross on So the both we operating as door. little those out pressure they do ship push actually goods a and margins

back guidance? in reduction what's then the or the overall on the implied guide half And within

seen April getting overall, Yes, really single from May what bit Tom And a comps as out same we've pace June the reduced projecting better, and tough May, was are that at a cautious, of kind but more we've of low looked more but the and them month, converting rate. got consumer little a Yes. seeing trend down to is think June mentioned, to I are we they're -- it's in what just date come not just digits. some there the definitely stores, better, being our bit cautious. them we've little mid-single is kind got been kind are of seeing continues June at upside hopefully We've

lot customers, an into we bought they think little two their and they've spend last of but just cautious are last is year very brands, they're this I they think still especially, great being year. I of added and on our And a awful and I more lot -- which years have a robustly think

Thanks so much.

Ed. you, Thank

Capital Markets. Our comes the with Noah from of next with your question. KeyBanc proceed question Zatzkin Please line

Hi, question. taking my thanks for

you some if guidance, brand of rate brand color well little a on learnings provide on kind as and the how Thank they color color in performed of just separately was relative first exit just just as Was you quarter any wondering the could of the trends And Just any by hoping and early-ish second bit Johnny the kind provide on your you. embedded quarter? by expectations there? could leaving then to

Yes.

the the really but a the and tackle than a fill back country. margin quarter suffer All were had it turn if good, referred then able maybe for growth all of I the the other expanded, in over from a they you did more at really metrics we they as channels good Scott, on operating quarter West look little very second what I'll bit sort guide. regions to prepared margin that said of But Coast, say details gross the overcome of quarter. what that quarter in in year-over-year to is to up the in actually remarks, Tommy to bit would first the expanded, the weather tough Bahama, So, in we on

quarter, just quarter. I then And than February nobody think that stronger started it really from the in immune was shape ended the phenomenon the of of terms of in

I of think and March, cautious. And of that more couldn't coincided aren't back I think bank what next lot that of that of in cautious. do going failures, on sort really whether on that we'll market, the half had year. a consumer it of look So improve with to highly was not you getting noticeably, promotional terms there you more the the had little see sort externally things the and a But consumer all to this

May And as the June low and at better was than a better, April little then was kind we has far. May got so said, of even been point,

So, shaped little and more the you asked second I detail think quarter that's it the maybe would a up way was on sort where coming of about guidance from.

last Remember QX, year comped we in XX%. up Yes.

a bit have and up marginally full-price on comp, other -- against robust going very little of comping Tommy very year. we and comping we're kind flattish brands our Lilly but down last to So, probably a then and

in little So, -- total, in we start quarter we we'll rebounding existing eke out quarter a a bit. did brands, slowly, little are did the of but our seeing June think in bit it growth but the

deliver continue better we numbers -- hopefully, June and can a than hopefully, bit this. will we'll little So,

remarks, firmly baseline set prepared I'll that. the full at we're question Was and that's year, looking owning Was, we'll growth your and And doing for to it Johnny younger year back the about this Was, our it first come is in future said get Johnny as up of the then we're of Johnny foundation all we

the of parts, said, stage most is the focus website. utilizing the about we we're power more Johnny to and excited you e-commerce basic if platform Was now will, of of Pulitzer sort big completed earlier help Lilly the that very we've As integration, the

for what a It features They already behind transact e-commerce and the of her functionality that making in will for really shopability provides business, find they with is us. all be of and the about about to and guests have will the that's used that technology website beautiful only for her a have is the the continue. the to great the scenes things kind it increasing shop to the easier website, that

e-commerce to very stores think year, new excited locations we already about provide in about mentioned, Was were Johnny as robust with also a Scott So, that'll coming business, this an then we're investing boost which very in XX

business, terms quarter then by the they a be, got to and there the have we portfolio, of and that with than overall think demographic the what market think planned part first highest probably customer just hard out caution a I in And the was would was particularly our little it that I California on going of less that into in dealing we some but it of more. in the creeped little her, have for

with to great of of is part both long currently we're than team broader all addressable reaching tougher a its much and little the very what larger a at base dedicated our feel customers. reaching available do as for market leadership we're So, about can market term. extremely there, part brand to us great and going conditions, forward. It's but on a with that's working focused the of nothing continue concerned great and we're that and on Was we the about We've got Johnny who love positive we a there. portfolio own great The

Thank you.

Telsey Please of your comes question Dana the proceed Group. from line Telsey next with question. with Our

everyone. good Hi, afternoon,

the brands, opportunity it want about how as others business. are assortment I product wholesale as move about a businesses, think fashion an versus basics your whatever forward of versus in think is and of you different to part that the core you think you current we each print, consumer margin? small you When the of environment call always or positioning As color or the for and

our I business group. to our think that would was is relative there. Well, hanging in say what very peer I strong wholesale We're

from detailed we're overall, great to really, lot a do lot think we And how is bigger the of which it's would feedback doing year, the of closely, in really this I flat our I readouts the I peers. one number a against a we're get up all be that's and like. comfort wholesale, take going on a year, think think stack good But we flattish things that this I for it's sales we and year get we we know. as how in you strong as of very not customers, follow Dana,

strong Overall, years. we've a extraordinarily couple had of just

and we And channels so, and year where look a at how was. peers going and not perspective. solid look to going to of last when that of we're our it's be against rounder up to we going it's look while our well floor we're But on year, business, very rounder, to still just we we're head the all from still like some total distribution, be great wholesale at performing head,

course, In help going margin got assortment it's maximize different head come they I job of to their work buy place terms sort very was has we a got retailers everybody them customer margin. it, different Bahama them in that do by buy we're just just of recapped and customer our and and our for with differently. on they through lot that. And and both in week Tommy the their went it a by provide of on first want to because you of they and how floor wholesale to how looking and buys the partnership the last we with of and

how come and do of given better of but that, our a totally a about time, mind think it. can of we idea our direct would in they terms say, it's performance margin incrementally different partnership they what them with over I to I different in with So, margin don't want buy we to there, retailers course, the boost us buy, than strength

Lilly it. then remind at the cadence? flash Got of different Pulitzer? looking cadence terms at you And sales for it us than or prior can years all that are of Is what you in

summer in year did the a little the at last end Well, in one did, April the one sale the we big and did January. early we we then of flash big

days. worked in say April we a we to bit As we flash year. little as a we're to delighted in million absolutely was sort current $X remarks, XX%, $XX resort Keep of XX XX% did this year last XX% mentioned did like remember up the exactly, million three off, we merchandise and year, in the mix sale I days. where, and a mentioned of consumer of the and or I that did going but in it can't this the as one merchandise surprised prepared off that two that

fantastic Dana, the use, you'd great are you you a and with do still so good love how margin at can buy you sale, we new, and a just math, know we kind that. XX% I and And when started of come we did, a out off retail be

really the mix-up back because customer she that. the as half be the of delighted, about the loved So, looking She it worked at her. it we we this think us, we how liked do year, it being look year, worked and we're to creative surprised for likes for

So, I things of see sort mixing year. you'll us more that of say that from this would up

guidance a from add to don't And to you that know anything Scott, if perspective. I want

Yes.

our we something We will but into in something announced that up with do doing in baked QX at mix we'll we Lilly, projection be, produce will what Lilly exactly things QX. but have haven't and

Thank you.

Thank you, Dana.

our of line next from your question. question with proceed Please comes And Citigroup. Lejuez with the Paul

for Paul. filling Kogan Thanks. It's in Tracy

First, a expect brand, follow-up. to was were you have not Brands those you mentioned brands levels some Tommy about inventory. I'm trend on and And Lilly, of if where I Emerging inventory comments, I of at your I there the inventory then the your feel I too sure Thanks. inventory had much with when comfortable think levels inventory wondering a year? you I whether heard your talking you And by just clarification having for and

very their do we feel Tommy. they're at bit little do think oriented We a more core We comfortable appropriate, with have inventories. Yes.

So, a we're to bringing we brought chain that earlier. that wean and reasons I little goods mentioned bit us for that's as earlier in of we're supply have -- off we do. did helping we and of starting earlier, And

end the feel in inventories about year at be lower we think the of total year-over-year. we good So, those and

XQ then at more on wondering, I if strategy not was -- to increases, this just I what double each wanted Got you resistance. you to your imagine quarter-to-date, not resistance consumers you're you I'm what price telling you're the just versus you're think what and I prior showing year price what it. about you price some in guys maybe saw there were increases. that? your for And think And whether wondering seeing then planning is what but on based was price brand pricing sensitive check on any sure Thanks.

don't Tracy, mostly pricing -- -- but I we've through more, flowing point, whole I First there I can't is a think this think say think no in mostly that's in. lot of I don't more I at that's all, got

seeing on price I think the don't resistance, Secondly, that. we're really

benchmark if been some one maybe of our thing do peers the feel really I closely we in think them a aggressive and little against than pricing. less we is saying we've

would the at unit that say I when look is dollars and other we And retail AUR, the thing average the so transaction. average then that per

those tells or not are resistance me flat which So, actually when me buying price there's serious metrics either up, out any they're to there.

cautious more spending it's generally just about think about I being money.

have on. the Another in thing and this remarks, you was not fully prepared but zeroed in might

So, actually prices our restaurant pushed there, too cover in really really, is our the we've restaurants as cost strong. really, to, to is business business well. We increases restaurant and needed performing really

couple So, on when they're credit very spend of over when you they're they bought to a the and do, happy they years, actually I our the cautious will, if judicious think slightly more seem about stuff of more lot pulling it's being they about out. But more card products. last

very Great. luck, Thanks Good guys. much.

you, Tracy. Thank

I'll turn the of have call end back remarks. the to reached session. we now And question Chubb answer and the over closing for And Tom

you a interest forward until I in our to all have you talking thank Thank next summer to of look hope great then. you quarter company. your you, and We and all again for Shamali,

your you concludes at time. today's Thank for you disconnect your conference participation. And this lines this and may