Oxford Industries (OXM) 7 Jun 232024 Q1 Earnings call transcript

Greetings. Welcome to the Oxford Industries, Inc.

First Quarter Fiscal 2023 Earnings Conference Call. [Operator Instructions] Please note this conference is being recorded. I will now turn the conference over to your host, Jevon Strasser of Investor Relations.

You may begin.

afternoon. good and you, Thank

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

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

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

today's Grassmyer, non-GAAP the Investor now Chubb, call attention, tab I'd at participants. a With the financial CEO; issued I'd introduce like for Tom to You GAAP like release press and call website of and measures Relations Thank CFO under today, and our can your now Chubb. which posted turn to oxfordinc.com. And earlier Tom you find and to of our Chairman is to COO. over me in today are reconciliation Scott

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

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

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

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

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

a Our portfolio that of brands deliver strategy can growth. own to sustained lifestyle is profitable

communication generate deliver through while value retaining to focus channels. brands, each of and purpose in Our for to delivering brands, our wholesale maintaining cash to then and formula all evoke a for that aspirational and growth opportunities is on stands on growth focus clear customers happy long-term terrific and retail, profitable shareholder be to brand serve the the balanced that sustained where a variety our to efficient rock-solid fund crystal and customer brand promise and shareholders, effective acquisition balance drives our is to happiness, how and served, the capital lifestyle of she return mix our the organic designed and our and developing wants the of in sheet. Within is products, first to attaining, through what be the of e-commerce

A double delivered while of comprised a our execute compared was and that both than women's Tommy of both huge a the is women's for women's business remains priority and where us size all top formula highlight quarter first in given roughly of Nowhere total XXXX. Developing opportunity men's in for to a the grew, XX% women's the men's the Bahama the business our distribution fiscal at quarter, Tommy channels did to market than growth men's better A our on XX% gross our and margin indication business, of XX.X% year. as were total we we rate the in strength and Tommy grew our growth brand direct-to-consumer that channels of line able quarter in this of growth that of our Bahama from market. during X%. brand of faster to is expand of the XX.X% clear the Bahama last the

headwinds Tommy pressuring the to prospects be in more which good Bars, includes all, our We to year continue spending. IT, wet $XX brand, during margin late growth strong the people, it deleveraging. in largest some to to the and cold had for growing last to quarter its first and and for for the restaurants, XXXX. In operating plans to business, stores West allowed marketing, Pulitzer, scheduled and long-term to one XX.X% also especially bullish largest Coast, brand our on XX.X% the and brand's the the as margin last second consumer could SG&A later compared Nonetheless, which expand Beach macro experienced Palm including with not open of some we good very our Bahama, Lilly numerous in Gardens sales to in markets a result, us this Marlin quarter of year. invest Tommy We continue invest gross quarter about from a was month resort in unseasonably million open year. All a $XX Bahama million weather given and X is modest sales this future, performance the X%

to combined cautiousness growth, channel, we XX.X% delivered retailers last in experienced wholesale direct-to-consumer quarter. marketplace. We we us we SG&A to had the margin, during gross Pulitzer some in the deleveraging to while allowed the margin operating brand, the the XX% for owing, Our a expanded as in decline with invest sales modest the deliver strong but XX.X% we of a very the expand margin continue many growth, to Lilly were able believe, channels from The year. quarter to gross the in

of and we flash of sales the well-known the of year. a star One during sale XX% did in compared XX% one in Lilly April. The to quarter that last XX% flash merchandise in-store to Lilly success marked quarter April recorded we as key a about resort Pulitzer online the with first attractive gross as year, change XXXX, call comprised our were of Pulitzer strategy our and was the a very XXXX in merchandise In sales down customer a replaced event action to in instead period X-day hold $XX This current at a off results of in range. we off million spectacular not had margin.

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

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

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

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

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

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

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

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

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

greater pillars, sales solid our While annually incredible year-over-year us total Scott? absolute cash years expected, delivering growth strong. the be portfolio we the people, be margin. I should terms, year the previously on of flow, Scott will than and more that will those upper be quarter it formula as exceptionally the in XXXX single discuss, Scott up invest mid- to maintaining a will leaders, growth and will forecast on operating digits while Accordingly, will stores still year. set bit or a over pillars, lower team for believe marketing, locations and an ourselves North the will in capabilities, in Star brand turn of to people, for balance and our formula for XX% details to future for future of our beverage fulfillment food execution IT, allow grow to continue a to our beyond. We in and continued and now call

Tom. you, Thank

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

Johnny in each XX% the food net growth quarter $XXX Lilly in $X aggregate with event. X% not channels million and full-price strong and beverage were Both across sales of percentage first did decrease of and X% sales of operating million quarter group, full-price sales operating XXXX anniversarying uncertain Emerging in XX% year's Pulitzer $XXX largest sales Brands, XX%. Consolidated increases X% growing for in Lilly our $XX QX included of of first the sales operating flash margins macroeconomic sales. We distribution mid-single-digit and last Was, Pulitzer in in groups well fiscal XXXX. Lilly generated excess flash of Bahama sales above e-commerce, Pulitzer, we in which bricks Bahama, increases net brands, after e-commerce million, for and Our all and our X executed a and first have for quarter environment achieved year's increase wholesale In full-price million. during a an Tommy of in the last mortar, generated Tommy

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

included Was operating quarter e-commerce costs costs, or in $X million to in fuel existing the with income this related to of a increased higher of expenses prior taxes, was beginning $XX we of tax for a which completed Johnny EPS Was note, to support Johnny million $XX the Johnny is employment This costs, tax an Salesforce on million achieved move with the SG&A of and XXXX. stack, income increases yielded $XX higher prior to also XX% variable expenses website interest including growth year-over-year inventory. businesses rate interest ongoing a sheet, summer. The this adjusted our to associated $XX of deliver of expected now all period. Of or the to Pulitzer of to not margin $X.XX. I'll year-over-year forecast year other the own by in and did XX% replatforming of operating tech and the FIFO basis, on X% for Despite advertising incurred SG&A to growth. Was on the result with expense SG&A balance due period. There million e-commerce utilizing other remainder and increased offset which good compared due we Johnny in to We're of Was anticipated were -- higher be This million to to inventories our sales position compared up partially million year inventory. Lilly year by business, our we the operating expense borrowings increased future the associated $XX with acquisition

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

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

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

robust substantially time the of by our We year borrowings the cash end now some the on flows of for spend outstanding repaying for our anticipate rest of XXXX. expect and outlook the year. I'll all

expectation the sales higher e-commerce year full-price and the IT XXXX spend and including and higher information more and the costs, infrastructure, planned spend, employment and advertising in sales billion and increased and $X.XX and percentage of locations. Considering margin margin wholesale. We in of business XX% impacted The technology to more compared be For to the IT at SG&A to lower XXXX growth $X.XX to opening channel of a including direct-to-consumer as to brick-and-mortar sales which grow proportion anticipate be by sales. we operating sales, full by $X.XX Was year the billion, and higher continue increase include expect higher XXXX. higher sales wholesale locations XX% of higher year-over-year resulting XXXX XX.X% year, brick-and-mortar first the both will modestly expenses, we inclusion will full portion well Was rates higher flat spend achieved existing benefit more depreciation for between our XXXX. These throughout than the Johnny margin decrease brands full of of includes gross growth freight of as increased in from continue of gross in XXXX reduction quarter, expansion additional XXXX. in net SG&A, billion the also cost year modest business, is XX-week much mid-single-digit than the growth was to brick-and-mortar gross as driving expansion which the full our sales and decrease margin of full-price generally to in sales in margins between the low are favorably The of Johnny our freight these, modest expense invest levels to we gross for consists expected in a offset in people partially awareness both IT of in expected which as all from expect a in rate that a to XXXX XX% we of range,

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

in lower as higher to invest We adjusted inclusion in businesses loss the EPS expense. In versus sales, compared and compared XXXX, expense slightly favorable of Johnny of full quarter income XXXX second the of interest a year also higher these million operating After of expect $XX.XX rate expect XX% be XXXX. XX% with associated the incremental quarter. certain the to being favorably of rate a but share at allowances. to the divesting to tax benefit tax as rate expect by those items $XX.XX deleveraging, sales $XXX and year Was expense, existing at of of in offset tax impacted the in approximately income $XXX such which effective approximately between effective XX% expected income sales tax quarter second we higher $XXX interest lower a businesses is XXXX, utilizations as XXXX tax to with in in certain million and EPS year expect last the be by In we in million we SG&A valuation items, reversals from we of late XXXX, in lower restricted $XX.XX benefited quarter margin, the our considering adjusted operating quarter of operating the and prior of the awards second gross

profit million Capital XXXX be being I'd Expanding to XXXX. in $X.XX result of investment year, interest investments SG&A second briefly expenditures in the to lower being theme this CapEx and discuss for the million our sales. to quarter in EPS than to primarily gross to $XX expect the The generated on second XXXX EPS the XXXX. approximately between from the quarter expense year-over-year expectation increased XXXX. an in in fiscal adjusted like compared are of $X.XX increased We and quarter $XX outlook of expected by is fiscal larger $X.XX compared

including of number remodels, associated about of a represent increase X Johnny stores CapEx new by last with brick-and-mortar along across capital of being with As result a locations locations. of these X/X amount associated including additions XX these net new relocations are planned closures, XX with and XXXX. which more A associated the expenditure about of locations, end store Marlin the year, half spend brick-and-mortar for Was should increase brands, the build-out included XX few mentioned second and spend Bars with about quarter, full-priced with all we locations these weighted. The planned the in approximately

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

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

generating a flow have $XX as million liquidity to of XXXX, of outlook increase a working flow in XXXX. This level XXXX We well. of expect million operations After capital cash payment current position operations all rate by included $XXX capital and the increase from in to cash dividends cash very planned provides cash our and positive on which million, of all our the level debt a excess of our from significantly in from operations to of the outstanding the repayment of we year. $XXX of flow end at our cash flow positive ample fund of expenditures, substantially

margins, investments margins now operating your set we'll call Although the well table for top the in for you for today, Shamali? these and on questions. upper above beyond. Thank pressure mid- in growth at XX% will to or single-digit actions line time XXXX put and XXXX turn

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

I me. guess X for

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

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

chain part each before. able end it of think the -- to lot quarter, inventory start to to By trying We're of we've also the those year, a year. chain with in to of issues. to gap our we is due closing supply systems. lower. weeks last we our discussed are our we'll supply just baked had the run be in Yes, expect cushion on We some of be some inventory -- And I out. leaner some of cutting And

it year, a I working a neutral working we year, cash even where, good our inventory this a prepared good story a flow capital little had cash the build, So story be in a capital year, remarks, maybe last quite year. probably mentioned will providing and or is good be this this as be and will -- will

out in bit we of kind think of cushion to we for Tom believe the a we've markdown But taken we the bit that the gross and we mentioned, that those on actually and the we were are push Southern door. Beaufort and by as supply but of a we go this Bonnet markdowns they to was as of margin, so And had a as lower pressure through in Tide. in. And markdowns, a some goods, the speak both well build out inventory should most we've pull -- cash of the yes, and little operating some QX, chain I of year. goods they more ship got took those So little last our is little flow. then year, going of be to to do X the liquidate done margins really end able But little

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

to from Yes. comps digits. And mid-single what been it's single down just more Overall, we've really kind low of reduced we've seeing.

mentioned, June Tom but but date continues, little is and June more a get was looked bit think As and Hopefully, April seen pace better. getting May, is some May little the kind cautious. We've better, projecting upside, tough to month. at out. trend a the bit I that cautious. them we there's a of are consumer kind being of definitely June

a them our just same are lot stores, they're in of I we And seeing is the they've just have in they a years, are robustly think their think added on spend being last they're brands. cautious X our customers, into lot great, they an which more this and We awful converting and especially. still last rates. bought the not come I And all But little year, I year. think very

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

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

Yes.

guide. overcome in had Scott, up bit the metrics said for ended that in little bit all quarter. margin. sort channels, look Bahama you prepared they West over and in we immune referred more nobody of what Tommy then suffer terms a just at the able would that country. tackle operating what All growth in stronger expanded quarter think shape weather on than was we the tough but the say And quarter Really remarks, to back from turn I of really phenomenon the started margin, to I'll were it the quarter, quarter. fill it the actually the in year-over-year, a very February really other if of first gross maybe good as But than regions is a second Coast, of did that So to quarter to on the from -- in good. They in of details the then expanded of the it I

really June April was was externally the the sort got do year, sort better with the and more on said, March, more weather, the things it a as in better. far. half then has terms see you So than we'll kind was consumer little had May noticeably I consumer this of back I even market and lot costs, of the that look the to that to bank And of so And low that all could been had failures, of next highly we cautious. And of there promotional on think think a coincided. but going getting point. aren't May a improve not what little

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

Yes. up XX%. No, we QX, comped remember, year, in last

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

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

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

about Was. And Johnny your to then, come back Noah, question I'll

remarks, the that. looking all in of the Johnny Was prepared year Was. owning future under said set the and doing We're first firmly it of baseline for As up we're foundation is it get and year. this our we We'll growth, full as Johnny at

with Was earlier we They excited As sort most website. scenes what be making the for really we're that, and shop, the for already provides. website. They integration, now the about utilizing said, used will, that's only e-commerce the her stage to her business. And focus Johnny beautiful a kind to is of completed for the help very of that will It website. Lilly of if in the platform it behind parts, technology the you the have That power is shopability that to more Pulitzer functionality of is will e-commerce and that the a about great find basic easier the guest big we've transact things the continue. increasing to the about features have the all of us. and

a less already a probably robust we're have was what they an overall boost very California than of it got that the going XX would And it highest be, we think I Scott hard quarter with mentioned, portfolio. have hurt in little in the Johnny about. to will business. Then for to on we planned locations in in with So stores out also but business, that e-commerce we're the was coming then and our customer in there year, first this that terms dealing as particularly very by about we demographic Was excited just provide which think new in investing

into the I more. think of some market part a of that creeped the little caution

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

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

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

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

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

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

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

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

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

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

up XX% say. That mix like was As a retail great that days, IMUs little or ended can't you a current a I and Dana, it This X we remarks, million of of know being last flash XX%-XX% to sale delighted and prepared did we you start at consumer mentioned do, where kind year, good still at did as and did. this going I we you at X mentioned, how as remember can in you, But absolutely we're we out $XX exactly. days. And math, merchandise surprised off sale, of I just XX% million worked the sort April, we to bit off with when the a 'XX margin, fantastic come a the in in keep you in year, year, resort merchandise, X and $X did are of we off.

So we love that.

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

us I to So perspective? things mixing to that you'll that more know of of from up guidance don't add want you year. Scott, see anything would this I from a that And sort if say

Yes.

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

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

It's Tracy Kogan in filling for Paul.

comments. had I a on clarification inventory First, your

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

We to mentioned and reduce. comfortable chain that starting they're did And Yes, we us bit -- wean have we earlier. brought off little little very were we appropriate. in think do as so and reasons -- We for with we of earlier goods bit helping that's bringing of that feel a we're our a inventories. do more we Tommy, core-oriented have I earlier, at supply

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

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

don't this lot First whole of all, we've Tracy, at a think through got more pricing I point. flowing

I think I -- think in is I but that's no mostly -- don't can't more, mostly there in. say I that's

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

say average the there. when the me, which, look at metrics per been pricing. And are some actually any would anything, we we the not price one thing a think thing so tells serious either of average dollars those up, do is AUR, aggressive when I if benchmark then little we buying, feel, transaction, unit retail there's we've that me in other And I against to the they're flat maybe peers. and less is really or than our them that so closely out resistance

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

prices restaurant in really we've zeroed fully prepared too performing needed not business strong. well. Another on, our that restaurants our is thing, in this increases the business to and there remarks in restaurant really really, you the pushed really, have and is cover We cost might as was actually is

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

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

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

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