Oxford Industries (OXM) 6 Dec 232024 Q3 Earnings call transcript

Greetings. Welcome to the Oxford Industries, Inc.

Third 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, Brian Smith of Oxford Industries.

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

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

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

plans for a a bit I our of XXXX. a the you joining XXXX.We thank to results preview spend plans of pleased want for for our for just are reporting fiscal and third expectations solid and quarter afternoon, quarter, then Good and the quarter few give finally you about talking to to minutes us. third move the be on fourth sneak

a year. which quarter were that come sales in the last digits, third reflect single low XX% single-digit down comp comps results of Our positive inclusive on top of of low growth,

brands new in we focused compares people become to believe consistent and A our resonate Resort strong a group.Despite of consumer opening to more results leveraging messages spending, desire over during basis, and of example at increase strength in third customers, while great Was well resort meaningful XX the nearly years space one as strengthening overall quarter impact restaurants a the but was retain Bahama on backdrop, customers, box the especially peer through brands in same as delivered third of Bahama on and our us their modest the have we ones meaningful helping positioning Valley While of services. strength time.Another more favorably will remained California. a the customers, deliver X-year in great engagement these example reinforcing very generating creating Coachella that the stack Miramonte products of clear our clearly as have and discretionary Bahama on launch and has and time, reach our Tommy ultimately performance, lifestyle brands.The gorgeous the brand, royalty credibility Johnny the new difficult has our the our lifestyle website. the income premier hospitality Tommy the Wells, in built over Indian popular inspire as of drive strong dual this This even Bahama the includes Tommy that bars, leveraging resort with of the America's to existing leverages of all the for Tommy of results the our quarter the judicious business

gross we last us agencies, the in best-in-class imagery, technology website has messaging that price brand have our You by able were Was over and adjusted implemented healthy and we several our Lilly ability will many years. new The traffic marketing very excited quarter, about combined with the Johnny e-commerce new product digital recall that Pulitzer the exquisite a the and website, layers to change actually on our full selling and Was to business activities our of going web Johnny forward.As result during these grow expand remained a brands, the other margin.

In average both addition, remained year, spend increased rate digits mid-single roughly our has customer versus while active last customer our annual count new flat. add and

a details flow on All quarter.Moving would Scott which the the remiss during not of reduce minute, these a more was brands.Finally, metrics of but from a are to that sheet fact year-to-date strength balance inventory extraordinarily positive did in be cash indicators of the $XXX we fourth basis, if operations, strength quarter. I the of to on million I call our provide and actually able were will basis the out on our year-over-year our

plans our a opportunities in uneven. that are We our excited about and market remains somewhat

early weekend. a in November bit sluggish and of Our the a strong to very DTC posted during got then start results business off Thanksgiving important

the aware, XX year's, before days. are have Christmas. days XX Thanksgiving Thanksgiving been at the calendar the since the possible Christmas indicates longest week you this between Not that this we provides following and has year's XX sales we of period like in during a As business dramatic choppy.History to expect middle ramp-up when a calendar surprisingly, selling can

that to expect plans year, in some to ramp see our that headwinds the during about expect the we this capitalize quarter. are to have respect business, experience brands to wholesale We our fourth opportunity.With on do and excited we of each up we

Our well key to products very our continue brands wholesale and partners. at perform

accounts result wholesale the our during are extremely of moderating in of a our wholesale softness business. will expect However, bookings because the market, are caution, as this beyond of spring result and not the due a month we our performance.Given each year, fourth XXXX direct-to-consumer caution, orders early many and plans uncertain about in uneven purchasing fourth of fiscal we quarter.Moving and this to wholesale become developing the the we spring ship for the detail their are last interest quarter in XXXX, year, consumer typically some provide that of guidance of Scott spring beyond. excited more situation have for in therefore, our for a more but minute, as of down environment, cautious

we benefit many period, see of the have typical annualizing happened Was XXXX.In made of of the top realize this, these the we we would sneak of generate in believe to of And of in with some until and plans. Johnny the at our XXXX. in setback, half in that the fiscal leverage fourth services scenario openings future likely impact our is expect full economy brands drive the our and will have activities, year plan you most to back from quarter. XXXX. year. addition the growth which we post-opening us during And for which business.Year-to-date, we for stores stores openings not and we broad continue benefit have early our too to our first we fuel our to like give can we the XXXX, increased for give business, were key ramp-up our will demand that is for e-commerce initial net planned incredible upgrades the absence We growth, of the given a the brands completed the Most that this to that also peek also to count projects X through landing. inspire we macroeconomic another a to timing the the soft forecast On it of X will full XXXX the to a in for quarter quarters of believe that -- XX customers the store by While third continue and

First, more and XX with of to store Tommy new we Lilly to returning opening count plan than a by Pulitzer store net more our pre-pandemic stores increase cadence. Bahama

location Johnny Park, months, for are Florida anticipate our next includes both Emerging X the Marlin opportunities on excited Marlin XX about XXXX and these We which will our Was associated particularly these the in stores, stores operating for some open Brands Bars place scheduled fuel XXXX beyond. openings pressure we and growth Winter growth. January.We where preopening also for slated The have to with trajectory margins, retail but continued the put in will particularly X in our Bars activities having meaningful

are XXXX, We compound and and the smaller as has XX%. to nicely vehicle we development.The growth growth. excited example. The our brands of great at Brands a proven in it potential has acquired Beaufort its also in platform platform is evolved have support TBBC annual Company for we growth grown to their a group Since Bonnet Emerging utilize rate about a ability

excess is and it. the And bought history. of iconic product was iconic in an of it brand Duck when Head, million adding with an brand business profitable over This XXX example sales our years rapidly we brand and of since a $XX great platform, rebuilt with all in relaunched potential. Another meaningful growing, to business but out we into

during million XXXX. X investment. help to Georgia. some with these.Finally, our is XX greater unit million and and in are of automated for units additional to to have capabilities drive facility distribution will be complete, on with will potential a highly competitive expanded, to existing handling annual will lookout facility to to to it will more Lyons, we building capacity shipping XX center in units our over growth.First, near The unit enterprise future from equipment this significant are cost our continue We per the the million target opportunities project automation. modern, numerous benefits an the with project grow shipping distribution this constantly continue complete The long-term by like units increase Once enhancing

stores giving in quickly. inventory of we it that the products to stores replenishing and part allow service it the Florida to the customers us the we and have more frequently.Finally, serve to country, by part concentration country capacity need us us the quickly of more the will optimize better ability that our by their web hands give getting better the additional elsewhere more of of eastern Secondly, in into eastern more will in

our in plan would to help the about quarter All during dedicated results turn promise of possible this when Scott XXXX, forecast for to XXXX for in we that be beyond.None growth like talk the the team all addition with in year. initial have our of our fuel XXXX March year, I'll And our will now over to additional accomplished forecast people. our and call the Scott? do.And activities, during of they and to gratitude we balance holiday comments for would sincere express we wonderful the that we season, and for others for third of provide these what for the on

you, Thank Tom.

of $XXX included a of from basis, the in fiscal slight resulting net the resulting X% year macroeconomic last within by environment compared beverage performance in in wholesale inventory X% the above margin XX an against and decreased -- in were sales.Adjusted In sales The Johnny all This As in last price X% XXXX.Consolidated sales versus up and XX.X% challenging had locations was a a are with operating this e-commerce which e-commerce increase the margin report higher Maui XXXX. full adjusted the operating quarter 'XX In million adjusted third Lilly time partial balances Pulitzer wildfires.We the driven we quarter DTC sales SG&A our $XX reflects for quarter quarter quarter X% an our million Tommy business. decline X% points year. and The same Brands of owned Was full $X included margin Johnny to of full year, quarter to of million the full guidance in XXXX.The in income sales incremental our to operating as groups across $XX compared operating increase in the largely aggregate, increase of $XX executed $XXX to of cost. by food a $XXX yielded decreases Tom in our were compared a These quarter a million last sales. of last expand operating full-price owned X% net Emerging decreased for year's offset and ownership Was income this operating remodels million. SG&A to partial and in inventory gross compared we driven of year Bahama, of margin from freight full in to million operating in quarter gross by our is associated of Was remained by of Johnny investments range. to $XXX compared driven Was going Lilly in growth $XX business, a was strong, Was and Pulitzer people SG&A for a price result able third by million basis third or Despite million to decrease in closures of incremental XX% a of lowering comps weeks all direct-to-consumer Emerging driven quarter with million, third organic decline planned income which The the and year. year-over-year, last an Brands of partially were and mortar, decreases by third for Johnny we X income period. well $XX bricks of expenses mentioned, markdowns, a consumer, against XXXX the were that sales adjusted groups million XX% million on decrease Johnny for another pleased over solid $XX

levels, modest $X.XX we given discrete our range.I'll declines lower and beyond have operating tax to earnings a saw beginning larger items other higher than our interest incurred revenue adjusted our our lower as EPS from balance more impact achieved within benefited on rate higher in that also solidly on this, from but in quarters. tax third a interest a inventory. now the licensing partners.Moving average of sheet, quarter in income, expense with certain move We guidance fiscal debt we rates to our effective all of result With due rate

Our Was X% inventory year-over-year by to flow all resulting inventories FIFO continued last acquisition. operating our used months, while the basis, Johnny cash our adjusted repay decreased discipline.Over or to XX decreased expand the -- inventory we being used groups gross $X margin, our in on gross able fund a from borrowings significantly to robust million

also X flow with Our us increased down credit cash cash allowed the of million million compared of beginning of the million reduce months at other the last slightly dividends quarter, the $XX first which while use from million fiscal our capital of of operations of $XXX year.Our $XX compared quarters. to in from beginning X of lower in fiscal million the given debt borrowings year first revolving quarter our $XX by of third earnings XXXX repurchases. to XXXX months the $XX historically been borrowings million under borrowings outstanding and a since million million funding of $XXX expenditures, facility, We $XX quarter to finished share in the has $XX

of expect and now the fourth for in the strong repaying our spend the for some time remainder We XXXX. flow outlook of cash year quarter.I'll additional on the debt anticipate rest

year As view Tom consumers the we mentioned, are full by and of the moderating to in quarters. reflect shown hesitancy our third continued impact fourth

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

build where quarter appropriate, rate and the continue sales the than still XXXX, fourth the and quarter is gross year-over-year margins higher SG&A, in more X scrub expected quarter low statement quarter, comp a by in the expansion rate each in to expenses updated prudently were higher margin Our of reflects invest decreases third gross and offset the while help is be first store in higher although sales The expected a guidance that in of grow for increased to for trim quarters.Building the wholesale a to single-digit softened future. will in at outlook.We sales range we income on at which the the efforts including and to quarter. third continuing our full modest anticipate to XXXX, similar than fourth year modestly the

prior the to year adjusted full items, operating year.Considering fourth XX%. Finally, we approximately to to we these all for the quarter expect be margin royalty be the expect income comparable in

full X% acquisition debt the This outstanding the $X interest X incurring XXXX after full Was. year. in in anticipate Additionally, months almost expense first million Johnny interest until $X the we expense higher at quarter had no for of compares we year of year interest million third expense the the when of to of

tax the $XX.XX comps discussed the to wholesale businesses, Johnny versus outlook. the full year, in earlier, higher income between additional effective EPS be XX% these offset being Was expense.After brick-and-mortar increased our sales, comp X% a quarter now new adjusted store profit $XX.XX XX% generating in expect in of from and and as interest of to expect approximately tax $XX.XX by our is a effective to and and existing rate operating lower the of with quarter lower XXXX.After of higher XXXX softened XXXX, by part high we due EPS also inclusion of QX the rate single adjusted sales in fourth in partially in offset considering digits locations, compared last expected a We in week items, increased year the

the 'XX. projects fourth year.Capital XXXX of from expected are certain prior fiscal quarter We higher expect that in SG&A interest CapEx direct-to-consumer to than our $XX quarter year 'XX million expected a tax sales the also to in in mix deleveraging fulfillment as higher compared a to million than expense due the not XXXX modest debt expense in center estimates fourth and and of SG&A due expect lower lower than in included fiscal quarter repeat to fourth current last to XXXX reduction rate are the at This the certain fiscal rate $XX a margins, as the higher shifting modestly interest be increases gross during fiscal approximately fourth significant be quarter XXXX. for to expenditures further items effective our higher favorable is sales.We to in

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

systems to will in anticipate to multiyear investments spend capital project expenditures with quarter Additionally, limited this and in Tom fourth We our majority XXXX, the to our related related with initiatives.Finally, technology center fulfillment earlier. our the that in substantial we XXXX a of project spend initial occurring various continue anticipate also highlighted continue XXXX. in we

included provides from expect million.We during the project reduction on actions call Shamali? table $XXX time will well After be which our operations very XX%.Thank We for total a the cash your long-term $XXX XXXX expect dividends, you the set growth operations pressure of cash our of now cash target to expenditures, these for or over capital debt of XXXX, a and in operating SG&A well flow the flow $XX a capital we'll ample approximately for level the to mid- cash outstanding a spend million margins, continued will to questions. put share investments a turn above upper fund today. repurchases outlook single-digit And year.Although top to our at and our line excess and working in margin for significantly positive from we increase cash level operations generating increase to continue of of have as liquidity in position $XXX million on XXXX. to flow million, positive This well. flow from

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

I in little could issues trends I a back quarter, faster Flip stuff. that about some that [ they the of in ]. first, noticed Lilly out would has see in you you you -- guess some to and we talked part the moving holidays. that was swapped been of those you some stepping love direct-to-consumer.And just [indiscernible]. guess where gift of remember I I stuff of Happy softness persist? with the some the was purchase guess to last bit. older then Tommy your with than pointed Bahama, understand think successfully I assortment traditional newer Side I

Okay.

around First, with weekend. sort of to Cyber Friday offers the the Black the respect Monday special

year's what have then, actually I did back last year The starting that, last believe, that Side XXXX. look you was and Flip of we And pushed the If year's year, at Flip we a year, between of events.The category-wide discount. since last had last that we couple and we start did didn't the over weekend. out that was separated we Side the difference sort of weekend this those

all This which I in-store, So for handful. were with is the delivered that, of year. a gift items performed a couple way, where with the got it that to beach year think do we this we then results kind example, it styles both just a were gift very on purchase well. did -- very was with that. by special for very, prices. spend, which happy we Island some purchase, we we value online very off We compelling And work We was the were for chair XX% a year, $XXX at and had last from with didn't in that Soft unusual both But channels. which, the of

then Flip similar I in we of in Side, been gift long love or that, really and have as cards timing which though, to So the other remember, done the pack then the is couple can Ed, cards years. last for we've same it's as we where that than that.And

the newness They to is on over want say couple So lot they they're stuff pandemic I the across in up brands, would last tell than would question, we you the the is really brands, less really were newness and years loaded of promotional on loving I a this yes, Tommy consumers all -- last newness. we're what then year.And more compelling to new year. of see

a of Fortunately, we've for them. it lot got

we're So that standpoint. positioned pretty well from think I

Markets. comes KeyBanc with next Our Owens line the Ashley from Capital question of

Great.

you in So far the choppiness business out called around so just first, some XQ.

you're among you've different behavior each any variances seeing consumers between if then versus any curious Just shopping seen brick-and-mortar brand? And e-commerce?

what? Between me. Excuse

Between each the... of

e-com. brick mortar Between and and

and brick Between e-com. mortar Yes. and

where difference. year, us have are little the to rates conversion been rates the you the But me big come a really going and -- a to from big is differ the coming caution a different Ashley, channels. ago. generally by Traffic bit down. the that and I have it's where thing play brands among That's consumer the theme, is the conversion think see come this the spending is to more bit the down year or would into this that judicious they and big

And opened strength then quick. the Brands, that second Great. a segment you've some of year, stores Okay. just real couple and Emerging seen during you've within there.

Just kind of an Brands that opportunity about overview of where you rollout term? think you you're within potential are thinking longer how in your Emerging store and

Yes.

in So Company Brands part at Bonnet they're we've X business, I and own Duck brands we And X of got -- got brands point, this where think Beaufort Emerging Two the those reporting. and open. stores currently Southern of the XXX% group are have Heed. we those have of Tide, our where we've

stores open more But early Tide's couple Southern got and we X And what a very the and up more. we with then think, works of the that like in number can of pretty easily. I formula you well have see a Pulitzer right. believe now we think the in Company, could make do Lilly in with in they that to those much Bonnet assuming formula that I similar we've board.We're a brands, Beaufort then and see, have to want we that can both retail on stages to add XX we but still We now, plans drawing those.

point They're positioned Pulitzer's to closely. is the from similarly their of think I a where mirror they strength Lilly and pretty geographically, sort sit in standpoint. price market going

want Lilly we've got All, is sure course, around. caveated get number to good retail delivers head a XX, I stores return and invested. thinking seeing So cash very longer easy think cash I of a think, make we your that with XX on to formula term,

Group. from line with next of And Telsey question Advisory our Dana Telsey comes the

the on Tom, what's current enhancements product sales see And channel, very is environment accelerate always much external should are saw, about help that on that much thought you what the do and you happening I've what you, go-forward you And way the coming the business? How of you environment with of wholesale growth? it Scott, small think which stabilize do opportunities brands. there? see how to for as as the the of

Yes.

want I always respect and never with Dana, external the points the finger the like don't at of first we're So to looks to within. mean, sound kind company question, I that factors

could is to we we better, do that's I that we pages lessons that we've place incorporate first we've list of things. honestly a X will into from next The long we'll got and always try this what and But things look improve biggest -- that year don't that I in are think at we the year think conditions. And space as think think the unique market is factor the this external companies peers, believe you really I and we're that most all.I of the across of if similar look would them seeing learned trends.

we've consumer. little looking data and really effect as of not pulled margin at we're bit judicious mind think them happen of going Whether spring can to newness good. back really do help. always inventoried. in definitely every will good then that it's don't selling again, innovation and quite that.From we that, I going that And And the simply with if is of bit or response inventory. don't well. at sort lost is they're are a we all. to do be to guessing because regard And sure to what can think That year. table. can think a has rather we at on improve. our be question We And have Ed's business to well, we going that we But really the really retail, wholesale, so and chasing have performance commented But improve. feeling course, we any where a It's at to that that been we're internally and -- we and we're get that.And going into we've sell-through, health said, seen, standpoint, you I'm we to position the cautious good good Dana, what's we more in whether we'll ways looking our the over natural retailers them the more we that think gross we'd ways it, the is not biggest and will, we at left on factor looking our there's good, is do brand continue of I really be and demand for they're to be that have spring, selling

next UBS. of Mauricio the comes with Serna question our And from line

contribute double what expect it like imply quarter to pressure you to margins lastly, 'XX I much fourth you the you do business? just on comp because for wanted the the is sales of in additional What openings. the does growth?And then mentioned outlook. on sales on the how about in outlook, implied And of growth some for the want investments check, sale expect to just the I to the check fiscal commentary year store think something on week --

that 'XX, we another I So this should for we of margin assume -- margin expect means if top if you don't could operating on know word is XX% the this, that year like like compression. of expect

Yes.

we've market. things help website, probably that I opened too, including in half that some operating stores the There'll means with margin. start to don't all the that in in one. we're be the think compression headwinds the that improvement year, Was the going So the us I It's just back first that I'll annualizing this we'll regard think have margin. it see necessarily wholesale to Johnny

sort I I'll it's situation. quarter good week know that there's on then that comp, and question that outlook, yet. I'd let the not you. also gap fourth that wholesale Scott the the a elaborate of to that.And regard I'll to XXrd with actually is -- don't for because bridge try we So just there's Scott let to the jump

we remember, we're Marlin going Bars to year. X open Mauricio Yes. mentioned next

of will One of very to pushing them at out. other the going we'd in January, one preopening. open it's is thought the get we have beginning the But significant year. that It's X

to going as range got hopefully You've our them. And XXrd you the in we comps, week. in that week, in XX rent the quarter got top single-digit to that that actually when in we have contribute low somewhere about $XX that In going line open, months fourth new the quarter. so have stores be million have the help starting our hopefully of we've million the around preopening before benefit But the again, neutralize that.As fourth then of that we're in X got comps many you far will plan. for issue additional $XX units we're

Our next question Paul with of from Citi. comes the line Lejuez

filling Paul. for in Kogan Tracy is This

your was seen you think overall I what were talking the call quarter. then just up you AUR seeing also, wound going conversion you conversion. last what of from driven trends there decelerate through of the were conversion by for did you guys and August? think wondering I had kind did And the that your slowdown in earlier, had about August, how I stabilize? was And from a rest Or it in quarter? mentioned

So Tracy, with of the more respect continuation in bit what were conversion, a think of really little to August. I we seeing a it's

it's not you out dropping and parse look the that's it, last bit.And traffic, conversion sure we when about through of it's you or... spending. a conversion some much give sales, really those that's of like flavor, the really clear on lower going AUR, pulling among think we comp on the And you they're then just down I'm to to to floor. clear, And function in seeing Brian that then levers, can just it's really a trying super same numbers good conversions at a get If that phenomenon flavor than were how what's And want August. but be differences, year. I granular It's

pretty flat, holding -- holding yes. it's It's

it. Got I just -- then sorry. And

ahead. go ahead. no, Go No,

just you an in to Are ask promotions to last relative XQ promotional assuming assumes I your No, increase environment. year? for what going guidance the was

a us, or board, add us but We little in think with cadence whole I the through exactly Not I year. market Tommy us, I No, for across general. would for bit. for last mean You we're mix event promotions every want to say, the is of with consistent. apples-to-apples, would but... we're things up We very say Bahama, yes, for the consistent

margin pretty year. a line means oriented be the more being well, we much little hold But with promotions expansion, margins last bit should some should which modest and very we mix in And did mention higher. gross expect overall, with a that's direct-to-consumer

Financial. question comes the Riley Lick next Our of line B. with from Jeff

the and I at just if that remodels mentioned coming of was appreciated. you maybe quarter. great I and impact wondering an from? of a reconcile a like if just million. impact. help would any did growth to could on in that Obviously, on had might then beverage was just sales. continue good Congrats bit if you in I was Hawaii little $XX the wondering Tommy to can see then food in little bit where be elaborate curious -- Is be have maybe unpack a you appears Just could came much an you how of that obviously, there And been? you women's? terms standout

last Yes, with I'll look because way we we've story the women's the the just we're to it. year-to-date, in our we because, super year last excited. this that's XX% direct-to-consumer But year, boy, clean roughly had close And under to basis third always at XX% year. that's which start from that XX% that this quarter, a up year. under with at Jeff, were to XX% great look we're just from

that's very and some a story.And Hawaii the in terms remodeling then good impact, Scott. of So of

were beverage. remodel. we but Jeff, Yes. major down by we million we Lani, had comped gone and comped down Yes. in Mauna $X X% a line X%, we then and had top We up being Lahaina -- about impacted of both food

closed was a it the of quarter. So part good

very So beverage food business has been and overall, good. our

So we've very pleased been with that.

off or keep bit, add, we're been it's had X just -- just day been steady. today, this -- which more X food a to than in seem earlier delivering I'll very a or haven't and It's beverage, we I every but talking little row just it's X but great. day, it's that also and we Scott is were maybe days about in

following to up. forward Look

question line next Stichter Janine the BTIG. of our comes And with from

environment. the strong tough on quarter in Congrats a

that environment of just the kind understand Another level flex just I'd if but Understanding second love promotions to thoughts active competitive.And me to your pre-summer philosophical next the then get planned into QX question year, are willingness last in stay on year, more on for your promotions. to customers. remains on promotions promotional high we as

by last years. few huge the number them over grown a You've

any of habits or changes just in more any So, of customers retention cohorts? recent those these

really our promotional a to it change respect whole don't will I lot. with philosophy, think think I

I consistent desire, they our think relevant and by very making about brands on messaging, keeping positions, we that brand very creating focus and make all then sure Janine. that have it's clear they clear

And as And every the the we third a perform strongly is in the in and this what market year fourth the to need, branding really year, more we we've people item, then that I that's that be forever. quarter, can know, promotional. promotional a is of our based the will through create that job we not through cycles demonstrated desire of it's something you of.And have on object is the and #X and believe, sell relevant we market relative very think products quarter, desire want where brands As activities. lot we've can remain well our to that been those the and and is

game our plan there. of sort that's So

Great. an And customers? then just active

add months also trailing new mid-single our said, mid-single the and XX our rate we is count up active customer digits digits. is customer as customers, year-over-year up Active for

attract remains of mentioned to we spend flat. more So our our average retain base, ability in and prepared as is the good. annual health less remarks, then customer the And quite or

a well, and are -- been that holding. have And holding high which something very rates it's retention our rate, is retention we

retentions. healthy Very

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

quarter. for then. Okay. company. you [ you ]. Take you of Thank to until season, you, Shamila our a look much very care very happy wish in talking holiday interest we to forward We all Thanks all your and again next

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