Oxford Industries (OXM) 31 Aug 232023 Q2 Earnings call transcript

Greetings. And welcome to Oxford Industries, Inc.

Second 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. reminder, is a recorded. As Instructions] this being conference [Operator

Brian pleasure of Thank It my introduce, you. Smith, Relations. is now Investor to Director and Financial Reports

You may begin.

Thank afternoon. and you, good

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

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

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

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

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

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

for us. you thank and afternoon Good joining

state business have on particular part special for Hawaii Before of in outlook the very for second and start our the to Maui results I the a the of which year, over of many turn quarter important things putting of acknowledging by balance the island for and our been I years. and want

I who work disaster. from of This across Maui also Hawaii. great are XXX grateful that proud being live the to generosity in These characteristics ways and and them and our such people all wildfires. of among pitched hearts this who in of make of am resilience the the state XXX people as recover we help in over We of greatly members the over company. who for the Maui our recent generosity have Oxford enterprise of our recover they of so value from have the Maui the are are devastation associates to wonderful in many people with the on Hawaii and a

we're be operating reporting sales forecasted Moving range results, share earnings the the to within pleased per our adjusted to given and top environment. our

of the the driven by acquisition on of During organic year-over-year is third year growth Was in X% of an XX% which on XX% Johnny period. a in achieved growth quarter we ago year last basis revenue organic total quarter and the increase of top our

the a as In the growth that addition regard comparison, the to to tough rate this customer more market across reported somewhat more place, cautious reflects with become modest discretionary purchases. has organic widely year

customers happiness our with As to a brands. our company is as know, vote in you our purpose

doing we Our customer high. Excitement that. very exactly remains in for metrics that indicate an brands interest are our

town customer portfolio held traffic growing active rate and average and new higher steady are brands Our we seen across customer value has and both our year. have order this our ad

basis. time, are year-over-year lower same on rates the At a conversion

their notion purchasing of margins. modest were they some spending promotional of year reinforce events. consumer periods, factors these growth more with that a purchases making are during gross ago discretionary than the putting during more pressure consumers become addition, In the their in has increased also promotional our cautious the Both activity on

categories. As type a as the operating increased deleverage we we our a result couple of quarter saw key during down some expense the investment of in statement, move [Ph] income

employment expense. is first The

that We be that staff a to fairly are and successful and going need our key is of most continue ensure Our we success our all valuable is that to we can compensated. team the to sufficient certain they forward. have asset be number to

staff and a our in our growth to bit to the fully catching up of year, Last we had do staffed. size had of business the be outrun

wage continuing in inflationary retain an are in we increasing stay the environment by salaries team to attract continue addition, best to our and competitive people. ensure rates and and In to invest that we

area increased advertising in expense and is second The promotion. of major

post rebound moves into pandemic about mirror sure our of the to brands. want view what we to consumer rear and continues high and the excitement to to in As further of order awareness an the maintain make are doing we normalize, levels need market we

and dollars of and experimenting increased especially percentage Accordingly, in sales, levels awareness new we both in this our with media have year, advertising as spend absolute advertising a channels.

technology have Finally, subscription a to platform. and expenses to we omni-channel we and impact modern that other related feeling ensure investments selling have depreciation, made software are other of the we

demand While these three weaker environment, expenses all investments we areas in represent future. some a of in operating believe that short-term these our deleverage are prudent causing

all long-term of designed portfolio our with In purpose and to to help across happiness evoke in deliver excellence to spur value growth. a keeping are shareholders, which number drive lifestyle customers underway sustained our objective our to of our strategic initiatives have profitable brands and we

the state business project half country, When center of center particularly our wide highly is by direct-to-consumer profitable which these brands e-commerce the revenue a support biggest largest to States margin. help complete, Southeastern multi-year a The and throughput fulfillment our our initiatives will of support help all capabilities retail in best-in-class Florida, enhancement very will eastern across ensure business for United large, our is fulfillment our the brands.

and this a to will customer in check to Was better platform exciting The e-commerce shoppable, is best-in-class and Was website new drive initiative provides aspirational will our the beautiful, the Johnny result the current much the same that site upcoming overall website. and Johnny feel website. later site Was our a will growth of powers a very we Pulitzer business. website re-launch more easier out, is Johnny look Was of When but incremental Another The the XXX% Johnny searchable, experience. launched excellent that have expect be new technology Lilly more is utilize year,

excellence the the are our leveraging across In projects, people by portfolio website across addition and to the fulfillment the driving brands. talented we center

Specifically, talent on have Aligning with across shifting to support enhance the maximum areas business the to we've impact will functional operational further company both benefits across the opportunities been enterprise. employee. expertise brands that the and excellence the

business in healthy capital by to that generate cash growth wisely our shareholders, and and acquisition while to organic of a investing remain using cash continues and on return sheet. flow, we strong maintaining balance focused Our opportunities all very healthy the

example of focus provides action. This that quarter an excellent in

locations, total the and the locations. net locations, new opened end bar stores During restaurant to total retail XXX expect new bringing the XX for year, locations. close the net to eight year five have By opened new we we our to quarter, net count bringing our of

the enhanced In beautiful Resort new on open openings beautiful in Bahama a and is off Bar as was a dramatically addition, Tommy quarter. in Tommy quarter during track Gardens. Bahama to in our third the always the start retail store Miramonte California, Indian that Palm the to has Marlin Included terrific in in Wells, Marlin particularly location, Bar and business business. Beach is our The women's

to is mall. location far the Marlin is This situated unique eight the enclosed we among indoor-outdoor so Bar entrance at that have an it in an in that opened

to planned Bars Tommy many Our more help and we hospitality scheduled it will three are for our two excited strategy, year fiscal business of come. and the us Bahama a fuel to years XXXX, growth extremely Marlin for about is open this lynchpin that with

cash our Was of year, operating of approximately with Was during our contributing quarter share to million $X.XX benefited Our acquisition profit, from $X.X also Johnny adjusted generation or last the results. a Johnny quarterly

going or it This has forward. representing and our outstanding cash in million X% believe million delighted Was quarter. dividends stock, flow of debt, part while of as million pay investing to lots $XX the and capital repurchasing approximately have Johnny to portfolio runway shares, XXX,XXX the paying are expenditures outstanding allowed $XX of We leaving operating million and line of to grow down margin us top expand $XX $XX during in $XX of strong stock million

but Our on Scott and of the for the cash for to guidance consumer to the more of a building position in year the prudent. come. are balance caution moment, quarter, flow believe years of we given of forward, slightly the Maui year balance of we and outstanding behavior bit very the for to third hesitant the impact the our to to inventories the year as the a look will purchasing balance robust is start provide in healthy quarter many wildfires we're in and more and details deliver continue an the

invest drive to the expected many updated in adjusted our evidenced come, value range. At years based happiness, the EPS will and long-term know of guidance profitable same our XX% and portfolio, that shareholder our XX-year time, by our CAGR business excellence we drive efforts evoke as for on growth to across

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

Thank you, Tom.

microeconomic strong pleased has are we that very quarter where our range. of quarter is an our direct another mentioned, within Tom in uncertain cautious, XXXX. consumer against the guidance well become costs environment executed more operating groups As XX% of going the consumer second report to In

XX% quarter quarter included Johnny $XX above in second sales sales growing year's net were which net for each second million for last group, the million, Consolidated XXXX million. of fiscal of of $XXX sales operating Was $XXX increases and

the wholesale from Bahama, aggregate, and Pulitzer were X% mortar, beverage decreases last XX and flash sales. Lilly we full-price e-commerce, Pulitzer, food and had not sale full-price our in Brands growth and year. did Tommy X% in In e-commerce the X% hold of sales declines Lilly business in the X% in that million offset second brick quarter in Emerging of and These by

decline in Bahama's was greater clearance and Pulitzer sales the at margin gross during and higher margin XX.X% Adjusted of increased award partially of the flip Was was card Johnny loyalty and e-commerce gross reduced expense. to by XX.X% sales slight Tommy year. season freight last side proportion events, driven This compared flash by a offset Lilly

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

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

decrease of all The adjusted Was. income million $XX margin million of and of reflects The income income to $X operating a income operating in our saw million deleveraging period. $XX XXXX. the home SG&A partners, notably this royalty operating of $XX pandemic in Johnny and the million planned a categories, for yielded million or from result compared The income recovery our $X included the licensing of operating impact surge operating during subsequent in in lower and which XX% furniture

the during having lower tax a guidance effective and from With beyond the range. this, tax second quarter $X.XX of adjusted interest our we due stock towards awards benefited impact income, no vesting the of the year debt EPS, in after more of rate top quarter. incurred favorable Moving expense operating to all achieved we last end

beginning now I'll move our to sheet with on balance inventory.

$XX plan. XX% of on XXXX. for inventory. increase low is or Planned FIFO inventories in million a XX% increased Our basis, increase The in year-over-year Johnny XX% line our with including inventory sales Was double-digit

levels we believe to the So remainder forecast the inventory our on deliver to for our allow are appropriate year. us of

half XXX year, credit million We short-term first equivalents $XXX of of some and of million last our cash, to beginning quarter the investments to our $XX after the cash XXXX, as having in first million flow as compared well under our our finished year, Was. borrowings at revolving with the cash of facility used of fiscal We acquisition from XX at last in year. half credit operations agreement fund borrowings our Johnny the on borrowings balance revolving the million sheet under

first $XX of while to significantly the reduce repurchases. half, expenditures, million debt $XX capital dividends, by funding $XX million us outstanding $XX million allowed in also million That and of share during

repaying spread back the for half in anticipate the cash of have year strong fourth flows quarter. We debt and the additional

now spend for our on time some will I XXXX. outlook

the by in As impact we to are Maui third early mentioned, quarter. more shown the the cautious and the being Tom our full-year bit wildfires, reflect view consumer moderating caution of a

and billion $X.XX of businesses, are full billion year, sales The wholesale net businesses XX% sales direct by full-year as well the existing our in in $X.XX of in plan be our the in brands XXXX consumer to XX-week driven now of in the For billion. the sales to to as in be to Growth comparable the XXXX. to $X.X range XXXX. XX% of to compared growth increase includes Was, existing expect we low-single-digit while expected a benefit sales Johnny between

gross quarters. sales We XXXX. gross increased The expected the that higher and the still at anticipate be margins fourth to as rate with expected for higher a quarter modest in by which XXXX each grow full-year modestly higher sales margin are than much expansion improvement and of offset first in SG&A, is to of of

As we in continue Tom earlier. businesses as to outlined our invest

back that to off our scrub expense While the we redeveloping the to efforts are for and investments where on appropriate. statement, we expenses income don't want help future, prudently build trim

royalty expect being for with lower the income also the to We year the prior comparable second be to year. half

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

Additionally, anticipate $X we the expense incurring interest almost half. after higher million of in million year, expense $X at for the interest first

$X of the full-year until third quarter. debt outstanding the when of in million expense we to had compares interest This XXXX, no

expected a $XX.XX is compared in $XX.XX of XX% the existing effect expect in Was lower approximately expense. tax also considering XXXX. operating offset be Johnny profit to between of We now and $XX.XX of EPS being interest rate items, a year higher XX% EPS full-year After versus of these of increased adjusted to XXXX businesses, inclusion rate from and higher adjusted income with by effect last tax

our remained our wild six and where store brands our we generated open, as expect restaurant nearly on in store Tommy the the with we pressure Of second Further, performance significantly of Was reduced rehabilitate but Bahamas million locations on half sales island, business XXXX. traffic. and our Johnny Maui, XX only layer [Ph] on

location loss. Lahaina Our was Bar Marlin total a

While to reopening Whaler remains three for results Village the Center stores the reopening after path uncertain. our in

both is $X.XX the share and the this of second half. or approximately negative per of impact quarter fourth on effect for net third $X.XX expected We a

In Johnny expect after of In to sales to million we third of quarter acquisition, we included $XXX this of by XXXX. last the XXXX generated Was a XXXX, the million quarter compared after of a we the XX% third respective partly in comps businesses $XXX our quarter operations of quarter in the $XXX of third only offset quarter sales year higher includes million XXXX, sales in sales third expect year as lower QX quarter year. last full after the September half other of

anticipate and comparable quarter last to margin continued deleveraging. also We third gross SG&A year's

to of We compared is quarter between of lower our in by and impact $X.XX sales on and apparently expect result a $X.XX quarter to $X.XX of our adjusted quarter increased driven expectation the the the The the quarter by third EPS this year-over-year XXXX. in in SG&A operating situation in EPS has Maui. income and of investments. It larger year smaller the impact third

SG&A in fourth businesses inventory year-over-year with the In in quarter the and deleveraging themselves. quarter, we expect of increased margins to fourth due comps part emerging as comparable sales a quarter gross brand included Modestly higher markdowns the after X% as sales additional QX XXXX at certain modest XXXX. otherwise the generating SG&A rate increases higher week in and

and the not certain fourth reduction during rate included that fourth as XXXX quarter favorable higher a expense repeat Also, in our the expected we debt year in the quarter interest quarter of tax lower fourth interest items expect significant XXXX expenses last current to are due to than year. the quarter in the in be fourth to effective

Was XX X in expected with approximately expenditures locations associated of Marlin brick-and-mortar a quarters. both $XX the spend all with million locations locations as which to expenditure the last result these of associated across about XXXX planned in capital be of out by full-price and about net the Johnny compared brands and the CapEx one-half including mentioned build a locations, the increase are X few these $XX in Capital new number with approximately approximately relocations XXXX million represent increases stores year, quarter including store locations brick-and-mortar XX closures remodels, along we associated are XX planned include and of to Bars This for should third in fourth end amount new net spend of with with about XXXX. a

initiatives Additionally, technology with we system our continue will investments in various our also

with in a associated anticipate enhance capabilities U.S. Southeastern to project fulfillment our throughput initial or for brands. we consumer across Finally spend direct the multiyear network

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

during flow plans ample We fund XXXX recently current capital level to the XXXX. of at share million a our our reduction of operations of the repurchases flow continued expenditures. from to and in operations million of debt Payment outstanding positive expect from to level This of dividends rate increase cash our XX cash completed flow in significantly $XXX the cash excess provides year.

and actions top for target you above return on at digit for Thank investments SG&A and single XXXX long-term one operating Although, over table XX%. time call well the for set growth your Doug? questions. put today we the margins, these margin or mid-to-upper pressure will now

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

Hey, and good of couple Maui. in ones your for question I me. the a colleagues taking quick afternoon, guys. Thanks from are our all guess for thoughts

few have new years. customer the Tommy customers quite guys file you First, over a to the added couple of past Bahama

As I of to the that tied promotional some about of of retaining guess maybe you've the kind that those you seen some comments think kind environment. customers. around of new back and about trends talk

any be Was organic the the as growth Johnny appreciated. then up follow performing on and just insight of And will a Thank business how maybe you. was

you is Thank a Maui. a you what regarding We place it guys situation is. know tough thanks special for Okay. that comments sure. know and for that And your

on brand going growing, Interest is that we're good. new what remains with that really Tommy seeing in really on the and this our part would believe consistent the appreciate customer issue as in is said lower Fed the the across about worried brands Bahama. and all what we is fundamentally it good, say growing. actions is thoughts the there rates the I being at and a more and think the The we is comments, or customer where traffic of our is during rate going of conversion. is customers the is So that. adds what's And on account interest economy market consumer I we're attribute is seeing to to the would we cautious that the, about I

was be That think market making and And and that the is then think buying very the that in seem does bit, economy and spring of on bit summer I seem I as more a from correcting part does other that elevated early to the levels weighing selective through factor activity part the place. the be customers at a the of but some to amount that’s do the a promotional consumer being bit. the abating overhang

And then same say those Johnny I would that in Was, thing. of terms were the

some set never they what any and at different we brands growth experiencing are other challenges same You’re of really organic themselves, in seeing there. work it’s not the drivers the than are

Yes, first they sure. very of business and for and remember that part was quarter the second California have the quarter California they difficult you are both really a heavy in – and

So Was. Johnny at that’s challenge been a particular

super be was delivered remain to They about part a have, which -- having a of excited I for profit we it think share But they of the $X.XX operating quarter. a did our million translates $X.X portfolio.

is still, operating about it's were but it's XX they where operating I margin than think can margin. and a we’ll lower respectable of be think that they confident very to we which

them -- way ownership focus platform, than very we running was, it's equity the setting to not bit. private which them has the the Johnny in run XXX a onto under they onboarding And but is brands up is much way were about our that little at year different like degrees our this it been

and expand Johnny year, can this we grow view we feel top very and going and baseline margin we very forward. that strongly the Was So line operating as confident both the

what but one those that you that's been sort Was alive causing the when And which Lilly on of Johnny it website beautiful the we great as we year table big the on lead to think page and to enhancement if not the that for on about e-commerce just And we're Lilly a be the us is is still you or end Tommy new of has and will call landing this will very get them of bringing Pulitzer it on shopability activities can money website and this Was land excited and business. e-commerce. the on it's going contribute a when working business outlined convinced we on nice forward. a we've back year the

Thank you very much.

Thank you Ed.

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

Hi, my the monthly provide cadence questions. guess the of itself first thanks the could second kind you I color leading on exit for and hoping moving any quarter through quarter. just the rate then taking

through balance And wondering just how the to secondly, then the on position. be helpful. the year then you're about promotional Thanks. inventory planned color feeling would And of adjustments any their calendar

you, t on today. for call being Thanks the Okay, Noah.

months all during said is of a It convinced it So we But commented through up a got month. good It then months. not of the as first as in the little been well But strong. a as I that. of sum It’s wobbly sort some that month. call and accordingly dropping what pretty being the the been us or anything of this quarter was we prepared these the we the guidance cautious the June soft remarks, shopping like a call early wobbly July moderated on out second Noah quarter, at actually year. August rest the bit would and has set bit months like has ended have as better and has more saw soft. later in the mind we things bottoms for consumer a And a in a a was point the little our

to think good inventory, we're inventory a in on more feel of we where about comment in Scott We detail, I'm that great terms but let In going spot. is.

do. We

really and still inventory get appropriate kind fact Johnny needed we XX% with building was of really before to we and on him on we levels. also It last were into be. FIFO a where year QX addition -- We’re but – we basis got trying have QX back up inventory growth Was to it inventory felt with to we year-over-year sales the

So the much should end I and be flat of we to think a little down year maybe the by even closer year-over-year.

feel there. good are about so we where So we

terms to not year. particular we've the that all in I doing It's planned a in promotions. in up then environment of We're changes done bit. just them And really say Pulitzer would we're promotional that more Lilly mixing

As you saw some we in of a events with we've last had eliminated year didn't -- that the have also but couple year, we this Tommy Bahama.

I think it will be to did last really very what very we similar year.

Thank you.

Our question. next UBS. your of question with line Mauricio the comes proceed Serna Please from with

Great. my question. thanks Good afternoon and taking for

you maybe from call Just talked earnings sales detail little consumers. wanted lower that we sensed this to outlook. and the caution bit get to caused like what previous call a in earnings the company about the have I more know the about more previously

is trying your or of Just lot that this conservatism post more because this was quarter and baking sales a the uncertainty. like understand like there's to that considering happened really expectations, EPS just something came still within if

Johnny And if how could so and see from elaborate forward. the you then lessons brand that from maybe about like going a like Thank you. picture the you growth learned your far big Was more

Okay.

it's we in in we issue at just the you more about I But remains cautious being bit think consumers fact spend more year for on we in a belief I'm realisation really in think there's the Mauricio you brand progress I consumer especially all a exactly that and to in question I again, is what's just and interest evidence mind, on, sure not saw they for reasonably we in the the think being August that the bit years the on got a thoroughly. again our hard strong early as but when a have part that on high. and thank the but pretty thank just guidance So the careful going little and that is know covered very

of we're market, of Mauricio over all actually discretionary annual really investing spending and our dollars, Our in than we're the our average traffic CapEx position $XXX looks or us the is you the kind for but and rate brands our as in there just tells have and bit that they're even checking at more very it's as and you year all done periods. you spend, I spend more little how order did you're careful look good health being happening is cash that their average promotional repurchases, when And we a that's they stock during they lower little outline of It's year about to same time do our a values consumer million when acquisition, conversion flow of outstanding. last reflected the dividends, feel our the if we months be last it money when good, the together in XX just the we that mean spending fantastic about more that but will. kind hidden all boxes a going

learned but better I and of better to an acquired in it's in you it something XX we from and of forward company I pretty mentioned how of to $X.XX already believe we very to get our EPS we're each expand that done better can strongly added the then outside example you last it's that believe year is think quick on and quarter bit think would and not Was brands all and is brand which in from with it do soon them we as and website, company this that I years is Was, super we operating have but things and certainly do as have and little point Johnny every earlier as I go know actually that things to made happy feel the quite margin moving It Johnny of we And in can know was a is and which move acquisition so grow will get Johnny ahead six the Was Mauricio to I in quickly lessons every I we acquisition think I the that move our this as a much and learned hopefully this one that we continue as contributing. we're quickly have. doing quite always to

bottom the the One the but and same top that top is we of line line resale on talked Maui about. situation

got the top and million quarter fourth stores, So and the [Indiscernible] than top are volume not that village $X operating the are very and The reduced sales right its two of both the million loose we've third open stores less projections three gone million $X at quarter a the and of business in Maui line now. in to on that $XX we now. it's our gone line right and it's open and in XX half are --

optimistic able but tourism will bottom of changes. take to the to has a a both and open, really [Indiscernible] torses we back also to in that are think very contributed quite them to be to think lot we going line close it’s there's so that We get while get areas, that so be guidance going to don't very top our I for

you. on and Got Very those all. helpful congratulations Thank it.

Thank you Mauricio.

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

seeing thanks. And it channel was the bit have you And Thanks. other wondering differences trends current wondering I elaborate any just you now. caution up brand the guys a if little a I'm seeing is It’s you're one more. more Tracy one or Kogan then if are follow -- than could where on I for another, Paul. just maybe versus a

you're are mix Tracy similar three a having were roughly know the that bit trend it's it's the then always. and really a and they that's the issue holding -- point of grow us run experience really it's there's but all of back room to this a is small continue as that a three actually brands still when bigger So it are nicely the bit again conversion channels. And smaller at to brands up there's of you

So that's -- that's of what we're kind seeing.

back then wondering are gross Got those the and of quantify could And I moving kind quarter was if margin this it. the of headed within pieces where half. you some in

freight that mentioned still maybe any benefit think and that next you be to about any Thanks. wondering you could out, would freight if it's benefit, that have quantify helpful. if I you year was going that talk I on maybe color runs when helping

flushing in is freight last on part was much fairly the so quarter freight mainly and first a that's most the previous of less system. QX, minimal QX an a item the second half itself and it the mainly Yes year quarters. less close higher than The -- through quarter been in it's for first to from had impact

then Was fourth brands last that anticipate that we inventory Johnny year having QX helps and margin. in gross so -- help fourth don't emerging our -- then we that write in group quarter quarter some got us anniversaring, will our there downs our had we We

the So big I think are runs. those

Got very it. Thanks much thank.

Thank you Tracy.

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

everyone. afternoon good Hi

and As the your and levels on also price down of what you indication to obviously you side happening has And brand right or consumer what's doing mark have the versus they with inventory better pulse done consumer any forward. with on? by anything about how now are give is think consumer you current that there category business focused better the full not going planning

thanks as on the great for call. Yes, being and Dana questions always

they price really versus more issue people last that we normal of the were at that's can in mix which tend the year of in feeling of and back more Noah just Tommy more shops hold promotional as during different and it price robust weigh, our not consumer full be saw save levels in soon those very of is be the and they possibly the do for a off going much to the Pulitzer and and Lilly so or them our earlier will whether those whether to we look you floor. response second bit going then a consumer their their they the and going hits dollars it a saw events during where more holding want past as certainly spending to will in were the the markdown, we're it's full but year. in cadence not outlined the similar to up, last bit to than what for full a plan be as as we're bit the in what is And in terms to Bahama, little events we events quarter So really really to I little when and business price as obviously do

what I in we structured as dressy would return the we've them to we've went during balance but ladies what a prettier, so then continued and pandemic all seen kind sleeve of our guidance kind it and back the of of casual we're and cozy that's or then factored a the dressy we've to bottoms for and normal best guidance to more for that, long super because one that wearing as of call what sort more estimate wear, category And I that gentlemen And styles can the thing. call wouldn't wearing our this factored definitely is more that's in actually and year dresses while year. good question

of hit chain we half in us we in And we half sort of earlier core probably product at much to time we instant it's result in information were typically the styles were of normally what bit probably we an just but now with we cycle out weeks for which supply now for had the second we're that a more half proportion your the got have first whack we our didn't consumer And got aware still buying for – of first first about basic a than particularly better vacuum, it more better we newness what's the the I in I normal first I our but in was did half time those quarter we’re and to year not room assortments half core plenty those much than bit that during an the wants when more you think were if fourth in think of shape lot and floor the on to the and a the buying the the the and we're little dress which because was the when the the that basic as is first place and we're styles in think we've and would think I much them six natural not know was absolute buying assortment. disaster much the more get a actually little buying of of that segment. think by there's meant honest, floor aligned hurt and be probably half in a we

you. Thank

Thank you Dana.

Mr. hand remarks. closing There to back are like for to I'd questions. further no Chubb it

thanks company. interest Doug you to hope you help of We you of are then. and your look Thank in our again Okay. all forward to well in talking for and all December you that until

conclude participation. Thank Ladies your and gentlemen, for teleconference. today's you this does

may You time at lines disconnect and this wonderful day. have a your