Big Lots (BIGGQ) 7 Dec 182018 Q3 Earnings call transcript

Ladies and gentlemen, welcome to the Big Lots’ Q3 2018 Earnings Conference Call. This call is being recorded. All lines will be muted until the question-and-answer portion of the call. [Operator Instructions] At this time, I would like to introduce today’s first speaker, Andy Regrut, Vice President of Investor Relations.

Good morning. us third joining conference for you for quarter our call. Thank Merchandising are here Bachmann, our Chief Officer and and today Chief me Officer. Vice Bruce Johnson, Executive Operating Executive Tim in President, Chief Lisa With Administrative CEO; Columbus Thorn, President, Officer; and new Vice Financial and President

Harbor make in would are involve call risks described press uncertainties and Before I remind statements. our and that today’s like we SEC get stated any our in can that on you to provisions our release and actual Safe subject forward-looking to those our differ started, forward-looking as statements we filings, from materially and results

today merchandizing with discuss to call outlook morning, comments, and and perspective, release. TJ from commentary will Reconciliations QX This focused quarter earnings the will for results. turn results Lisa and will I today’s will non-GAAP the the of non-GAAP the results the to start XXXX. Bruce. now few our from a financial press Our Bruce review GAAP opening over call on are is fiscal the adjusted adjusted available in

lives about and born Thank of holiday Big toys our shopping morning, and stores of on our trees making and take with had It's President a a you, décor, Lots at up, She special Big to Growing for me life. basis. was mother speaking moments. in was and with in today used as Lots, and always Andy, to my new celebrations regular life's Lots. be best I Ohio better in Like Big home everyone. known whole you privilege good CEO XXXX, my

company am thrilled how to this to the imagine customers. serve its have can you and opportunity I So great

public their Their of like I been large commitment to moment professionalism for year. is to thank customers it's even during started, Lots get I'd has times hard transition. and TJ difficult of more Leading and Big over and a past company associates work Lisa take co-leadership the to Before a and exemplary.

will top-line encouraging to solidly in in line quarters perspective, which comp talk best years, QX. Let's performance or say exact. ownable furniture in QX and a seven quarterly comps increasing categories X.X%, nearly the strength a suffice be represents and or that XX the merchandising but by with discuss From moment, the drove was category guidance. our our seasonal Lisa soft with It performance. home and to our headlines about is of

are in loss opportunities. quarter expectations. key short But call. bottom-line we on for with do I the my will quarter’s results. mixed the the far fell not of details the several TJ so Our see happy later or cover far, observations Based

Here are a few of them.

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foremost, in this from amazed our been associates family, retail. we I’ve and welcome I engagement passion Big reception focus the and entire have season. the on we the and particularly incredible, First energy the serving best received is team Lots of by Jennifer as holiday

to have insights, of to Multiple these sales room we competitor and continue Next, furniture, recent home. customer upside years categories, We here, grow. along and gain opportunities. to store growth suggest we market suggests seasonal need still in soft continued grow share with closers

to store, categories these work or and consumables. pressure. faced do competitive in more challenged, the The We categories in instances namely have been of food of other have performances certain

to the this sales in have to store up make impressive. most through remodel, We stores. invest be I of number continued fleet in this planned. originally three because which has layout a that resets to and the forward. next merchandise bigger believe years, for year and just of continue going We majority not coming is foot initiative, ourselves progress category or XXXX, the new to we but the positions of here, accelerating swiftly for challenge. than the challenging the and incremental better our to sales traffic remodels digits to growth also intend the These move the continued from is the our transaction the shifts of team quite of of higher of Driving here see format a basket in key I team completed from and swift lift high-single must lifts to major markets However, balance future growth, low-double developed. is refine quicker store us get the a future as

convenient by next enabling closings real businesses. opportunities for support net year customers. also relocations for some as of more new opportunity for Big locations has strategically and This I ownable for the competitor as to sized location view more excellent our encouraged to our growth markets new appropriately potential Lots, into an enter future. the well presented estate dozens also relocate store to be We’re be with us the to market in

equity, awareness of at changes XX.X future for particularly and communicate million. am record share loyalty another signups job a We with and Jennifer increases achieved record While of online do active coming and in Growth effectively QX loyalty our transactions rewards QX. store our ended program Big program the We rewards to improving with growth penetration of or of both majority I we efficiently members from must of with number markets. our Lots, sales in growth with a pleased more brand the at signups. in in better the quarter our opportunity activity

better engaging to from the new upstream efficiency creating means associates, of leaders more that flow an planned effectiveness, to of California even for shelf. our consistency improve while our and merchandise in and curated supply chain. stores to our We decisions to are need invest and make up vendor and future and and customers as This also our DC experience continuing for running We our run getting and easier improve our making customers.

step As I format new future mentioned this huge earlier, the store in the is direction. of a

integrated, key expects. and shopping importance remembering development here. what growth online to of be I when buy stores Clearly a landscape seamless stores XXXX. unique excited Jennifer engaged of years. has opportunity leaders we the opportunity fully unprecedented to extremely stores I'm their evolving they our got retail last been about company And Our retailer, experience e-commerce BOPIS pace another We'll in excited excitement are BOPIS, better for later that was a about pace pickup excited to are begin taking in it. and omni-channel The sees are highly piloting direction are the Jennifer about we a is the here. person an And We under the the need the few at brick-and-mortar and have in-store, store and combining last capabilities leverage team her.

order management expense growth near fund to to in us Lots must our we future. Finally, many the grow. to so in improve place has and enable foundations term business Big longer for The model opportunities solid term our

shareholder some in deliver accelerate recognized However, value order outside future. in the we we growth and more in-help to consistent need

several engaged margins and experts to past and also our help accelerate strategy team improve enhance my the with weeks, minds of longer And our bottom in team retail. met and and have a best consulting expand us help us growth as of we've result, term. the Over I some a line

the enhance days. will review we opportunities accelerated searching future traffic tandem and working team this new improve productivity team speed growth drive be Simultaneously, to identify that and with in to ways to board, will Partnering and next we moving categories, winnable can with our customer with ownable and profitability XX be our efforts. leadership outsized identifying our Our to and grow for forward opportunities trends. is XX over while strengthen fund

prepared for with is we the next year year how where our plan in goal to associates are our ideas playbook stated our three Our three Simply and our environment. to discuss and changing community win an ever for investment be roadmap building and retail strategic to play by mid-March. to

opportunities over And to about our this by associates current I'm about in and to more on I'll turn overwhelmed excited energy its details headwinds, performance. call and and now provide the in day. merchandising forward, challenges serving shareholder insights future. As energized our look Lots despite drive Big our Lisa, I'm our I'm customers point every growth to value the QX I joining and at of the journey. passion

good everyone. and morning, you, Thank

chase highlighted, quite spring. with launched 'XX. then look Christmas remaining We our sell-through early. digits and Halloween impressive fashion for turned feedback departments, I'm responded Robert All lawn the ready And Easy team. Equally low tram was job We in growth Bruce assortments. on the we for has up last in Great anniversaried holidays the have attention from support QX garden the responding top Steve summer Leasing assortments this up inventory promising. sales this entire and market was in and successfully Labor perspective. best towards Christmas and door and our was to the in program, our earlier which Furniture is the that QX, business. and likes assortments Congratulations the and definitely very year we performing early upholstery, Day to key $XX drivers As of year. won teens. and the Jennifer exited outdoor our set the was the and assemble the tree continue of to transition business by Jennifer mattresses, and a in from category our in quarter QX delivering timeframe we offer high-single for team our categories. strong solid which as quarter increase the goods case quickly sell-through gained seasonal four and for Harvest and to headwinds comping pleased to out newness competitive tram. were share on the report trends and seasonal, in also sell-through Martha, in fashion we and the X.X% living harvest QX entire Michel, within well, the to and

sell-through cadence. However, part the take we place later of basic of markdown anticipate items as accelerate more our to

also again was bath. up of year, on X% Décor, and with flooring a home digits strengthened textile, Soft high-single last increase quarter, this decorative top Home

deliver good to and high business. continued very Kevin for in Another margin this trends long-term quarter impressive and growth team, who his consistent

Next, low-single digits QX. in the consumables declined for

business. or We seen the But exhibiting competitive enough low were closeout flat a of in some number well not business, to pricing NVO top the bright see consumables hard CPG has in sale food in toys. many did success in same results heightened and in of out down and and from balance accelerated never accessories appliances, offset home some characteristics We performance with as branded the store, mid-singles along companies. known declines pressures. electronics to sets have with in of spots out alive. was our new rate down or up volume our Similarly, of the Rounding positive to QX, table of

progress, a call turn higher QX, good been Nearly versus online, all number Moving on last Erica to have ramping driven trending on digital orders been business visits, business another and tremendous the site e-commerce to platform season. for year. make in and year. a doubling the lower nearly Steve, insight every has Sales the year-over-year. had to the the with by growth favorably I'll average loss sales with strong continued entire thoughts holiday in very Congratulations quarter our in this of up selling KPI team operating sales QX and important order over TJ, and our value. now for numbers who full to resulting

versus were the Thanks, good $X.XXX the an increase Lisa, fiscal Net $X.XXX billion, quarter everyone. of XXXX of sales last X.X% year. and billion morning, for reported third we

is fiscal by sales store comp store shift our months impact lower Comparable As plus favorable least for partially at sales count XX the opened was year-over-year. a a stores store X% increased offset calendar better from in on quarter, plus than of e-commerce last sales third X%. the which and the reported our the X% top to of for plus midpoint increased X.X%, increase, year guidance we of

transition cadence September and Day per and our of of throughout a were earlier. which a QX months, posting loss by Lisa most challenged was the driven per and $X.XX quarter, for for period, soft of $X.XX quarter range diluted The home, seasonal business a of mentioned our lawn the very third results, August and to $X.XX compares is in clearance share, with in terms to successful per and $X.X quarter and much summer share and the In furniture or each income comps selling of highly sales perspective. positive from the our P&L three million garden Labor share. our event and guidance strongest the loss

During in sales incur this levels in which for stores a the in peak in or quarter, ahead ramp and than QX the season rate rate, forward higher were reflect a was line peak merchandise the surcharges. gross higher year’s attempt essentially DCs XX.X%, in our season The move receipt we’re earlier holidays November to from selling planned tariff-related result minimize and costs quarter peak costs our decline guidance. December. impact. preparing The The of period in to tariff imported surcharges and of the an third of and beginnings of with for does and significant was QX last XX-basis-point order margin the necessary

with notice QX, become begin to in expense to inventory will compared This the speak of $XX in the of increase three Total were increase impact coming which You evident $XXX million $XXX the impact dollars expense sheet for moment. on in also smaller our a and will million interest last tariff million year-over-year, in an or to balance quarter. more year I’ll buckets. a key majority

First, last $XX call. and relocation. costs for transportation out of what merchandising distribution model more of strategy This wage costs, approximately in is and an reform primarily headquarters lesser $X our discussed to key expense similar our with our was shifts towards rent growth. of and content in our The future; bucket a DCs, investments and on related the next challenges average acceleration bigger, The increase tax of to reinvestment, strategic never rate, and $X as freight product or to and we rates, store million extent, and productivity was last million noteworthy fuel bulkier occupancy and a largest in item corporate increase merchandise. replenishment of million growth was our a

certain We store "R" year. Us new in assume leases normal a future growth when than growth have to each and strategic of number steps normal decision leases a to fuel are starting is higher rent net store quarter, XXXX. renewed by our opportunistic But driven purchase this Toys

transportation. variance of distribution comp buckets. growth million isolated these phenomenally year-over-year we a to a the majority of wider reported. higher or base guidance, three balance expense expenses of loss in X.X% was expense The $XX first with our areas QX and year-over-year, did $XX the the for up the approximately was the So of key despite and in to million, contributed primarily our Relative finish the

accelerate. consistent rates transportation fairly quarter, While costs fuel were quarter-to- did

originally in out in Next, cartons stocks in we certain to never more did classifications. an attempt forecasted ship than improve

which DCs. or is minimize There import Additionally, in margin order receipt higher receipt tariff with forward incremental to associated mitigate on goods, lower risk inventory in we avoid move than decision this five flow did goods. less or created in our or optimal expense of to impacts, an effort cost intentionally a holiday

opportunities. slightly were originally than our of rents new future increase and associated and remodel the depreciation for is store with modeled. program quarter Next, store higher the This

Referring through higher process Us performance, the slightly the more seeing of and negotiations strategic of in originally other more or and is construction impact able future, to The than related over to depreciation analyze new news In Toys near-term landlords. decisions planned. strong good bankruptcy XX are terms stores with we've stores, the secure is, sales store “R” we've quickly expense. but the very to-date these work to been we made do locations

Specifically, will of big win when be the we they Lots, went longer-term to incremental costs but these a the were locations process, one Big location sales for day bankruptcy rent as paying through Strategically near and we we out growth term began ahead opportunity. come the store. with the a building

was store variance bonus. related notable most third The

the quarter to debt a and $X.X and comps related $X.X due expense the bonuses expense to balance holiday will given than XXXX. the increased earlier quarters year-over-year the we strong Interest have expected. lower benefit And these of variances, for shift. as income to significant a performances experienced retail of the store-related was million rates hit several purchases average controllable of anticipated in three Given have first higher and timing inventory the the in the expenditures, than little last during QX store were did addition This fiscal year million strong larger calendar carried profit capital compared for quarter, costs QX. we strategic actually we've quarter at

in receipts our the never levels and improve and the is calendar third the Moving represents billion inventory level in $X.XXX on the quarter at last $X.XXX to merchandise of fiscal shift result compared to balance fiscal store, to in X% of This timing the stores. of largely of out inventory year. of sheet, levels a average ended stock billion to growth XXXX increase the

won last this us to increase fiscal stores and In expense with believe selling million quarter million stores. closed and XX.X XX. depreciation first we square approximately of was million. the XXXX an approximately third of compared XXXX stores of expenditures year were XX year. XX, Capital now stores we X,XXX opened we the We million with and leaving total last three of in opened XX quarters footage year, QX, X,XXX During closed to million, for $XX $XX $XX.X approximately $X.X and

activity borrowings This the distribution Apple store of cash which was million new under $XXX our $XX facility. under the remodels, We ended investments in million future of increase California. planned. of and And credit CapEx credit cash AVDC, the to with store facility is cash Valley, new our center million Our borrowings of equivalents as $XXX result and quarter third of $XX equivalents and cash last our and of and our million year. and compares

Our use capital dividends. of AVDC, and and to was shareholders returning future the expenditures cash generated focused and on like both strategic of by share also operations on repurchases store cash through

December of announced press on release common payable of This dividend Directors As in the XXXX. record activity approximately a payment to XX, the of Board quarterly business of and X, our of share combination today, million close dividend on returned shareholders. as XXXX, Year-to-date, payments dividend repurchase December to $X.XX $XXX $XX approximately XXXX, our earlier million shareholders quarterly per declared of XX, the separate have cash December on of is share.

down of range per to year's solely start be in X% the to reflective last first, compared margin range which rate, the of percent flat for in to expected adjusted lowered prior QX expectations last of of share, year, to comparable compared sales we expenses of to are our our This is expectations than year. income now to is share. $X which as we've to in for lower diluted flat the last flattish per diluted guidance $X.XX low-single a guidance sales be $X.XX a to The sales, assumption, expect on November. X% of, to per to income month share we've the Turning $X.XX gross quarter plus and is to in the based be range higher change This on to to plus of expected based of of digits. comps of QX, $X.XX store are and revised diluted guidance prior guidance, be

enjoyed over and Cyber a comps of were days encouraged Monday, and is were weekend below and record November around loss from online year. Black around reason weeks these are Thanksgiving or these our the as low-single sole digit Friday sales This assuming the lowering in market the day by we and softer November for While we comeback on the we month QX December. forecast last not comp share events

comps good of For low-singles we are as the comp the balance complete are and increase December also start. to low-single digits, assuming well. in To we quarter, January the we're month-to-date, assuming a QX, a the to in off

and margin to last Our to directly guidance, the actually year in a rate which month QX below compared spring. is planned rate November, gross assumes path change merchandise year-over-year. guidance would as to season to of guidance necessary now prior exit markdowns sales margin the move to The increased the be suggested rate associated lower slightly seasonal and of the and the our glide clean into seasonally we expected related sensitive in

of reinvestment future to we XXXX, a of an on in and standpoint, playing spring cautious spring the level, continue costs the From more new strategic tax future stores rate expense gross the and early our given above store we'll last role wage savings merchandise tariff-related rate. a rate average see continue we and to reform forecast expense the QX. Additionally, make the in have seasonal year's for made of for for more investments hourly are margin in

down. Additionally, expected new only for our the to would risk not we remarks. transportation strategic slowing to note the rates consultative his continue do review, and Bruce in The opening expect of be see to challenging which expense mentioned market relate costs

down increases that count, $X.XX changes by be actuals slightly last store based and of guidance change approximately range as overall key prior lower diluted increase a per offset our to adjusted income is diluted share a sales The to in of comp for comparable to total be compares sales annual for in diluted share, the In our full per terms store which the XXXX. guidance of we’ve year, guidance expected adjusted income per to estimate $X.XX $X.XX of share $X.XX to updated the of outlook $X.XX year, approximately to on and X% in to this and flow of believe detailed XXXX QX cash financial in covered. just The are down The has XXXX. that prior fiscal result XX and XX We and this weeks of fiscal guidance. inventory for level versus million a million, the weeks import performance I our reflects drivers to strategic will $XX receipts. decision pull-forward of change million approximately from first $XXX $XX foremost in QX to

teams to tariff work or position what avoid swiftly than tariffs is appears our on Xst. may go to into on effect forecasted in it the plan, significant news, As those to not a was deliveries, put now effect rates what arrive risk XX% Xst. to January earlier January the Based be on reported increase been potential in should

mitigate However, and the possible as lead to at to much information we had time ago as time import make effort given season. to of an risk merchandise, 'XX weeks the on these the that decisions spring based

estimated on net impact significant for the we're today. income sharing cash most flow second The lower the assumptions is year

well. QX, Given inventory end that, last Andy. over at the expected the quarter cash expect interest be the higher above With back call year the turn flow to for lower levels of I’ll also and expense we to as

questions. open Thanks, the like TJ. to lines Operator, now for would we

we from And take first question our Jason Haas. Instructions] [Operator will

quarter? think you you’ll to of you So And more that in November the might share? maybe you little Thanks. slowdown to rest business And through the see relative you give about the spend bit January little confidence on what January think more bit Do that speak a what industry-related, categories November? I out of or November. could a was to into from ask loss acceleration in you you in December shifts wanted the in the heading terms how saw

ahead this TJ, is Jason, start. and I’ll go

than in average couple October customer the related think we even did in the performance see late point -- and of the transactions in softness with some month I of our necessarily things. to From early in of November, line baskets or more the traffic. month a view,

traffic the would around large do history election softness one events. that suggest that Our be see typically in We reason. might certain

might very overall ahead -- successful a I Thanksgiving second softness Black reason of think and us just the general Friday was period. be for

is quite actual Jennifer So that did throughout most the What the Thanksgiving Friday, very gives periods us was and mentioned market was that those event time the on and periods. particularly, month has around seeing, little of major some and parts softer Jason, contributor ticket December a there basket holiday or bit actual bigger late results a we're once to our as Monday, well starting was be and in then and we’re firmed the very out in that October in the those Cyber Black there week in confidence November when week in categories encouraged then up is important I again. that, comp we to

aggressive home. categories seasonal, and where like ticket soft with we've price bigger by more clearly like been driven typically that's furniture, So

though element late. up also year this of the year, deliver giftable been challenged more holiday business and in I consumables, has that little teams Additionally, other is has our that speed think parts of time of a this even picked the food in food or

November. bigger certain tend than towards to in good might much garden have in very month of our the about mix in a they October like December, start be But quarter, the quarter. of and to we businesses January move summer. also more of business furniture transition in is month-to-date lawn more more out the rounding of feel we important are soft does But towards So the and start been where to markets, month some and -- home

that So to hopefully helps through answer quarter. your the trends question on

Jaffray. ahead. Keith go Please Peter question next Piper with Our from comes

the First you future store pace of had accelerated question on the I for just was remodels.

the network you handle to do that done center you that your your year. accelerate infrastructure to implying distribution right are pressure certainly you're it pace Just acceleration, follow-on, effects? with And the as have chain then -- some logistics years, a on XXX sound it well, get in your of because, a there's -- DC majority probably like three now

Bruce. that is this good Peter, take question. question I'll Hi, a initially,

future, performing the that's a excites also of obviously, excited accelerated well to earning us of store new in this able which growth, a customer platform the seeing of is remodel XX% stores good manner. is digit increase a digit, obviously a basket, in transactions, do work lifting an new store for about what place our resets is being about be. low-double with excited allows lot are We us and so fleet And future it's in future bigger those we're our to a standardize adjacency of this. growth, about with transactions We're to high-single

last -- I in the future. We're strategy terms it. it few of of that in the this part north the out around spoke as go of of to the street team be that. terms of in XXX store obviously years course how our And going time playing of on we'll work, next think looks year the of to a we modeling

DC terms DC, the good in of of store terms invested think our new we're is support In we one to growth. capability, able things the California of in we've to in be shape

think markets. on would it's -- I not add remodeling there. I TJ. of more it it's would Peter, solely

the stores real to particularly around opportunities than post forecast year the we team remarks, maybe actually the starting “R” next dislocation in more what to we the we had Us in prepared open is continued holiday. And locations market close. the success Toys mentioned that As see the in be estate is

for well think that all I us. sets up

exciting we're a from little lot new the landlord perspective, getting the a more and of interest. we're more store a layout with in the Additionally, future,

with of different there AVDC Peter stores what's think I I creating that view, an standpoint. the supply a as stores into isn't new that. our It an Bruce grow we our I number anyway, biggest ways really working that is kind of format. think number comes the remodeling of has the are actually business part challenge is From We're So agree from from that of necessarily infrastructure chain. to of and hard the catch mix to up changed. that

challenge. a and to and as is historically of us following future transactions a connected excited necessarily to wouldn't have increased fully, we transactions I through for of about number from but So traffic that increased and working years that the been store something are traffic generating

be happening Steve doing, in three that feel good that So are year moving by able his about we and future, to into of that view. marketing to store that very next naturally the supplemented team see the

could just Thank Okay. TJ, if expenses. follow-up on the I have you.

where a early So up XX, surprise were negative not modeled. how Difficulty] up versus I'm surprised [Technical that continuing I they expenses guess -- $XX what you to 'XX? furthermore, as maybe QX think in about about we with year-on-year, were still should million And we negative?

Peter. Yes, think, to X to for you It's versus I your said me speak X model, XX. versus -- it's difficult

were they for and Columbus. are two think costs about new big significant tax transportation, have I in of particularly to Difficulty] and buckets I What not carrier both in the which about $X and mentioned quarter, we've expense occupancy of first new. up also then each, the third in the quarter, those are the building rates and been around and of here $X to last future, relocation the of might were Distribution and [Technical talked year up the reinvestment that million detail store rent around three the then reform, million. trends, second

now And changed won't rent Us of there. clearly, Toys pointed trend we're in something many to the "R" open quarter. to that until first we which you paying the on So directly opportunities,

So change continue fourth that in third likely our variance we'll but will -- the quarter. continue to for to one not that quarter, a guidance the is only this

mentioned look accelerate I to that's during to the let think transportation did -- We prepared distribution the part remarks, question, particularly just Peter, on rates quarter the minute. the relative in piece. standpoint, quarter, for us third and did those not. of similar Fuel first fuel second guidance from pause year-over-year, carrier to quarter, your me the expense a costs, around

at second was quarter out never for cartoons a than improve of the goal think with the prepare out in-stocks originally we a send did store I throughout cost. intentionally over piece forecasted holiday. to of the million towards trying the categories we beginning That comes the store, as and within more we the

the difficult say be not That is, some we're along supply from there those creates goods, to think third that's the little being for sure that our care piece while occurring our an China. of I'll out have now perspective, also import rush and inside well we holiday, inefficiencies for out I everyone else tries that more business with right understand as to the to challenges. to we make dislocation deliver might merchandise we taking of spring particularly holiday try positioned as of coming in all chain a

estimate. those for understand two fully or and beginning are transportation distribution the fully of So quarter that us costs would or to difficult and three been things the Peter have at

think the to that the the of you where model would second that difference ended I our imagine a came higher in perspective, little quarter piece was from beginning expense from bit a I expecting. quarter were a depreciation the than

of Future much shopping create As of stores remarks, ensure try decision to we floor do markets made to on the work and mentioned that the we the many merchandise best more a the as to in within Store and possible we get experience. out prepared

a balance we’re mentioned, results, so that it seeing decision Bruce very strong better feels not. As was on like than

the opened we’ve of this we're versus building many out landlords quarter, building out. year that stores opening what are as in stores we’re stores Additionally, the third actually more

depreciation that and a time. well us of normally versus impacts and of the as goes if longer back comes store period over landlord to So rent out

Peter, Bruce that from couple think fully his an not that in expense a things, mentioned be I understand. and to might other remarks again easy standpoint

expense, like and district a on control things quarter, incentive they Our the then And but standpoint. store. their they margin expense that very store items those in from from is control, teams store not I can profit, standpoint includes payroll, workers' store and comp which like based like that claims teams by controllable what just gross had mean actually like supplies, sales, that what good volume a

good that Our quarter store a teams had very perspective. from

higher I the activity open ahead So for on our we mentioned, coming sourced and have nature unfortunately, the we as that bonus stores to pay than would which store when And their starting now anticipated. of associated were based those we’re way, expense been some with of rent new the them.

So the work there’s ended are a were that hopefully, way happy a we number loss of they expenses of than why decisions -- we’ve terms were different up modeled pieces were quarter. to were it, little the for to of Peter. detailed the originally us But different some in understanding made. None why given why made the the more with you and that with of

And our Thomas KeyBanc question with will Brad next from Capital come Markets. Please ahead. go

I the comp, you the I of move how us which to the that Store add. quantify the quarter and Could comps you strong you add continue am we much from and future thinking and the much was that hoping came about was from benefit How remodels. you’re XQ comp the XXXX? to for to saw to in how X.X as Future help quite the of of will for that in store talk

talk it the can you’d Brad, to Future like, I’m you as tell. we’re happy about hopefully of as excited much as Store pretty about

the somewhere of directly would Within Future. the X the that quarter, X.X% or I X estimate from of comp times comp Store came around

markets So as and we in we October September online. happened those XXXX, completed to the remodel coming that remaining intended during timeframe

anticipate into comp we the your or was a That's we to X% number, we the for next all Anticipating question impact complete Brad, embedded in closer to remodeled. quarter, X times -- markets a in XXX be QX. our XXX that of third go plus point fourth that full these roughly as estimate closer quarter. stores with guidance that So been of probably flat have to will

you about lapping we all how do margins. gross detail the that able to XQ? Could Thanks. be for much in on of a the think you're expectation talk follow-up about incurring now, recoup? to as year from more costs think this I TJ XQ And you And might in you guess margin

The little second of the first. part than question a the is tougher

of the aggressive categories as into third they directly November, coming as and seasonally be into in new below seasonal particularly have part saw fourth to in those something live plan sensitive importance to is even they decision the of of else time products first the we most fourth think them. in more started move that October of price, mentioned, out I that our on leading a element the question Brad that a result quarter and we've can need the quarter. of behind is so the those period in have categories because seasonal to store sales on, when obviously it, is then We

the majority rate was change markdowns. margin of So about the

to action spring retail try receded, are taken standpoint of pricing of where have to there. parts I of of us of might or going there moving The less think timing be promotions to parts, to from tougher quantify, to more form you're actually come or question surcharges has for we markdowns are incurring implying know the benefit and was that your articulate, second we little originally in, goods because because some is tariffs those been moving some what a in that to estimate what than That's a cost Brad, anticipated. difficult impact little so difficult a the them a part in offset when of lot there's knowing the maybe get around different -- many

for with like. and year's me over be what might able is the quarter until to difficult fourth it's fourth So till estimate quarter to for you look next quarter Brad probably

that to I'm So for see QX. to down we going until the move one actual unfortunately, results road start the

Please next Bank. question take Deutsche from our we from Trussell And Paul ahead. will go

margin T.J., color I question all just those the though. appreciate maybe the more one detail and along lines

quarter perhaps in from? As we the magnitude of of assumptions the break fourth rank for us change impact, quarter down remodels. that lower a change the the in and have items Can the markdowns, little higher fourth and order way Any you the forecast. transportation the assumption, could the that understand including more you various speak or just impact to discussed, to the sales you the that better distribution tariff are related to coming the costs where depreciation bit

sure already November to gone. markdown in in positioned that expenses. deadline. The of I I that ahead go get second, to January addition, what basis this of trying gross here majority a goods make we're is timely was on be big terms them of Xst supposed third, related, again, to put guidance than further margin any change we've gross rate; this In guidance, won't to sales; piece, first, magnitude would rate of The order; margin

The to about all in again November. second that's two sales, piece, order number

rent planned up the to in week the days and single the have of As we comps and Again, is to knowing later each relative and shops followed third spring, open occupancy Toys better the consultative mentioned, the of holiday in terms low in handful costs Jennifer season. around that or but of by the third change would And expense. to prior day think Us, extra encouraged smallest line in that we start to-date. typically the depreciation. December, "R" in that then then actually to slightly of with be and Again digits the order were solidly December only we're higher shopping stores knowing was in costs a guidance month I magnitude, our new the than related

rank you order that forward. hopefully, them modeling helps as think So about you going

in be strategy And And that on Bruce. Welcome. need of follow get then up wanted forward. in or a to we more little as you days other just your a bit early for these changes to move tweaks thoughts implemented think

food You prepared in swift mentioned something you consumables in think, making categories. progress also store your accelerated remarks, mentioned, I and around remodels, the but

and thinking -- stands you're else that in that maybe area, what out? anything thoughts Just about curious what

let just am this Big to be time at Lots say, me pleased joining journey. its very in I First

work boys my have at is place with total And really it to again up target a of and We in had American Lots cutting of morning target that that's and say and serve and audience up audience a in the population at and are and know good woke industry, to a hearty didn't menswear I in to the great population years, I several every look U.S. you as then last marketplace. assortment a the cut wake Many half, we apparel over clothing. be. Big

So I'm about excited very here. being

Jennifer people grow. here got want great Just communities note, the really and we've serving our other customer, each on that to and

markets the growing pains what is about that look now, we're been on about lot at I places right little Future allow I news mean, a learning Having to that. and we're And working we've that, we're that resets, we a less and of and results the as at add XX Store on that, Store love talking -- that agile our future. of cost that's management markets in disruption. the So them through and that's that The we just for fact getting that good our Future great more It's bit has about seeing where on that into the adjacencies, do and might said some is performing more look it working as older to to of early a with haven't platform well we have going comping to be our fleet are while mentioned while to it's this. older great platform lot us of worked really we're team this of early because own that I some when. markets. is and a that and nimble maybe more two excites the touched observations more now, me how going my balance us. good, and we in a towards the accelerate

I’m about how to platform order bring of we with continue so that will a growth grow excited the and and for future. And

to very consumables, right. and food of it's to terms In that important get us

there. balance that which consistency can allows with the and the our better, So helping expect sort team for What adds traffic the Jennifer a play can of going It’s the but the it us have up this. stores. is consumables we bigger strategy forward. a win us boxes? some some do output which we out, can our like? that outside are out expects business, for does Now, to close work, we a the really we and harder up play, of find value key with win We to and of tremendous driver how where be we out, to team stores, consumers can compete work of wants, things we challenging is to of and What focused do strategic still our our look work in food in why balance our area never that makes to right path find the how third they’re to need have the food and

look our they’re It’s us. to helping So think help I’m consulting our outside than we’re we the smarter business that here, excited going in they’re us to and just already trying and run business and area, about that that margins, with new the together in expand to handling. profitably, change team in the opportunities. expand We're costs, them grow stable growth invest about accelerate working our efforts reduce excited team way

will Instructions] Goldman Sachs. take from next [Operator question And from Prykull our we Chris

should year headwind parse as you about maybe move that margins in through expense we you as think and headwinds headwinds should at of as Can to reverse? a each next what some the those So into look XXXX. and remain

Chris, I’ll start on TJ. is that. this

our which we and headwind, if I biggest think single with has distribution transportation. start been

that a there’s transportation potential I is what trends going year is And you there out level of think and and space. think the next in occur at marketplace have go rate to I of into next by look see increase do that mean which range that to you year.

this half front experienced we what several of increases into to two that the rates up As that not we do XXXX. over go go XX% or We down. seeing higher. trend continue the have the And to thinking months, likely the they last think not we’ve about those they then XX% But business, quarters? not, going out will we’re like in that’s expecting moderate. hopefully Hopefully think transportation there. start we’re last to go they Will about have

categories XX as as through in want distribution and to And try at we we review talked cetera, next when I terms we lot the in process smarter. to just prepared as et think to go mentioned, to of or product accentuate weeks forward source that’s eight when about will well. of that Bruce this we the going I changing, a strategic look understand remarks, adjust the think something, how get we mix

we through we turn. we how a DCs things on to investments smarter there our flow the infrastructure talk enhance just our be March. buildings, flow that are in make and product think Those Additionally, to the we’re I all enhance to in source, through need lot going are when

into I likely that expect I think the continue will piece XXXX. second would

investment Future. Store the the in is As mentioned of we

mobilizing in working. done And great of cross-functional work the and job that's And we're where market birthday or to they've have company year together, couple teams stores we're our than and now in mentioned, and rate something been getting Mike of driving at have two and a teams is as lists seeing Bruce comp a we quickly comp a anniversarying. and grow growing. their the those Nick We and markets to Phoenix have stores significant that maintained. the particularly in have faster

So would really that encouraging to that's to into and us, investments and to we accelerate lean want further. continue

we forward, a as opportunity. the ahead store new look we're the year of about or third I of the opening particularly store, think cost in piece There’s opening. sub-year the that new excited

So worth of full that you get sales year impact.

opportunity Wage see So we're we stores, and that growth has a year. rate and been excited abating about this remodels either. the wouldn't challenge new

turnover early some it. store district team see record bit, signs into from a invested and it's We're is little We're starting have hopefully early. that seeing stores We leaders in to abating scores our engagement team although, our leaders.

So the on they're I appreciate a the our of paying and company associates part move for it. think that's been back and it, us wise

into those challenging for I Chris, think the So, It's of continue likely XXXX. been year company. a types will items,

the rate, standpoint, them bit year. higher incentive costs little a just or of an this at better identified from expect trend all of that rate a greater that to We expect over more Putting growth cost incentive year low for be company faster So the are year. would healthy rate as a next things at out would there, likely year. we you performs

are where the to opportunities for people are followed generate leverage time. those long there a offsets, where So the out model the for us who in

towards stores, look the definitely out leveraged ought I that how further But will profile We're changed some they'd the we product likely some low our challenging as bit. expectation a we activities. help priority. outside to know think And these You the throughout even some other source move a fund being on to little making historically we've that the front to be has investments distribution continue be we'll coming growth business, office, whether here be centers very more with now costs of comp. efficiencies in review in

vigilant that some So as growth we to those opportunities. have We working. need funding about activities be are just

strategic through helps. review, there get lot for you, a we thinking of a information hopefully, how into be that's So smarter we're lot but our March that get it. about We'll as and

-- helpful really was that ahead, go Great, Bruce.

look to events we're or going what be you going have We to prospects. in to won't is that's to over getting to excited to going the And with sales be say winnable We're our want opportunities. about thought growth on was understand, after adding next so for about the and it's to benchmark ownable And I also look. this them XX for we We're to sacred better. growth, going margins team furniture areas every things business said categories. to are key are to in some is outside just and consumer excited also, our any We're here. in -- here We're reiterate really accelerated what get accelerate process can ownable expand can et that about an excited Future, just weeks outside the going fund and there to a winnable what categories, we to we better. understand cows on where What learn and We're add be at that's what to just Store just doing this. of us to going insights very cetera. going we're area our an our definitely that and is part engage here TJ add of

unlock the going to future. is the our to in outside this for so value this be team for exciting And shareholders with working team our

we flow? then CapEx anticipate context CapEx And think guided think so rollout. one you $XXX get had better sneak for I also the can accelerate Day. accelerating? Store years million just handle I on last free to the how three about if at of the Future as can cash initially quick we Should about to Any more Investor one a you

to us as we're not giving give Chris, know. It's tough for you -- guidance today,

knowing the going review three to to it's in on So for from standpoint. two detail full to tough do next not decide months a we're over particularly speak sure what or XXXX,

given So that I in XXXX it you think to we've I guess would way of ask the guidance.

$XX centers assets. primarily. stores buckets capital, going we Obviously, in So I big $XX maintain we're and that's going estimated think, million maintenance we're to maintain our for maintenance million distribution around -- to to and

piece be new would second The stores.

couple year. higher We'll than new stores to stores guided about finish likely we've that. a think this I XX

the $XX million the for around somewhere million estimate "R" number had the stores XXX-ish remodels, Us, around opportunities about results We're number of I capital. guided to store we're as likely because on of Store about count. new year talking investment at sense. and I you think going of had store We're so into remodels $XX about given we for of Future $XX XXXX think, we makes XXXX, accelerating stores. seeing an talking because the on go that million based accelerating growth we CapEx higher those little goes Toys a store with based into next

building the center you we're I we in had for think estimated distribution California.

things lower of as buckets. came We twice some strategic have to four initiatives that XXXX, don't intend need moves And money like appears a thinking we go we've the number to little given the we I and XXXX. we Obviously, on next into into about the that about schedule. then that likely don't there on the million year, And first we're bucket open into last to it are as think we $XX that detail be invest so systems. building fall

new the in and Bruce some which for company will heard You BOPUS, of level capital. will require mention the open be

still might significant It's new we thought. originally a Although, as not have investment.

to be up not, whether strategic from that the we remains it So strategic bucket, review. or fill seen

to give Chris, to about good view we way guidance, you unfortunately, on given. it ask have until can your point think we've I'm commentary levers and on to going own So there based different flexing that have the of

And our next Sinisi question Please Stanley. will Morgan come from from go ahead. Vinnie

January. working tariffs Wanted to go if been you’ve that sounds to go in It like back course through of the does second. XX% a for

potential if this How the potential benefit of impact happening, be. work of if think? at ends mitigated that that Just a you has point to, get though, done. much were it how could to want Or there you’ve a what not much sense, it been do likewise up

Just wanted happen? or to may not what done get of sense to a may little bit what you’ve sensitivity better versus

you extremely know. an be it situation, seems it’s fluid Tariffs, as to And actually changing daily.

we’ve along on, as available we on other continue, from that have And will a you could that some forward we’ve it again, I as look of very mitigate step out things merchandise. sense, products be several tariffs But vendors, there to these raising the product time. gross vendors well. continue of what do we very could past was team the have, to doing proactive many China. sharing that to months, we that been different sourcing is think as very, pulled with where those of diversifying help has And been. -- adaptable. things to of a the again, some we over you cost consumer that talked our we the retails of have costs And where of back, well, potential as If take passing of that is yes, our we import risk have mitigate. our And about takes to coming majority conversations and implication this. as mitigate well. our like lot imagine The XX% makes like margin one, partner are But retailers our strategy can But how as about, another piece been

do We’re type and you we the every and activities. same go have we to us to day, continue the nimble expect plans develop trying will responded very, help forward, of watch this company possible. can And very as best that we teams the incredibly

role It’s the hear Thank a to there, process for then the helpful you. as taken you’ve months follow-up that’s Lisa. thought Okay, been And just maybe Bruce. now there. a couple since

that see. obviously Store so far. been that But but hearing seen that’s on results on getting Sounds on very still so observation focus like the to flip what helpful. far to been your on so And we Bruce the perhaps so has nice what’s the the weakness/opportunity the forward obviously, the But -- March, accelerating it more would and positive good look Future, you’ve side to biggest of be know in there, end improve just far hasn’t long. that how

redirecting and a and we enhancements I’ll And to what positive Store the to we we it's really for margin think be of Future. on the day in growth and role our accelerate can growth? categories. about. believe larger look mentioned management, flexibility, I opportunities, what, me. How update I and so can our as really things just what end manner key more think that I through play cost more of that platform many in our talking the state for exciting the our see tell profitable profit current into for do some value we’ve ownable at of build when ability I think a future be, authority I stores And that, there’s growth, you at been just trustworthy expansion a I And very winnable you the

in of think need in And we to and start easiest investing it she's a easy on I e-commerce need it's is by presence. you making the shopable to for e-commerce to place about that and our more an our as mean more shop. shop. think channel, that we work that We convenient. that her making make that good and And important online where influence. pickup at got into continue means being her to but for well online gets is but way think store remodel of in to like things convenient locations more for I everything relocation know happens assortment that experience doing, doesn't future as stores our our our our online to We've we're omni-channel and more make

on at think And we for store the me personal I marketplace, for and and that up exciting we for her get it and even make our those than in. So then work then more or shop we we're it is make come and have her to that's on finally, continue today. it store, focusing and I areas can in allow it pick curated company. our can to And personal, can opportunity more another the in better that better think is terms it

better means maybe is Jennifer's she that better that Jennifer that we've So XX million through thing and buys and in she got gone shops toys we we of us the need something know that She expand and we line leverage so, some help some The with early have other to growth her can and than she and ownable motherhood winnable know her forward. comes maybe through going customer than is knows anyone experience about pink expenses. else items. experience, our herself. in top that maybe how engage doing more making and will are data more that hand and hold We out categories, margins we curate shopping of think life's our and insights journeys, us in sense accelerate even

to about Jennifer's the retailer be In a more omni-channel So better where we're think can in can I I'm I -- future. total, be. we excited think we out

our from JP from And Morgan. will question Matthew next Boss go come Please ahead.

the side, SG&A maybe So, in these pieces and to see together, year. guess XXXX? even do you on X what the necessary to necessary leverage XXXX put came SG&A when this leverage maybe I you in to expense your times X.X

might As to someone Peter questions, mentioned think with the on at different. I really earlier position guidance this earlier in give or We're of not I XXXX one have point. a asked

I that about, that know relationship. those whether we've it'd are helping investments regarding we of rewards that think us talked that personal in investment Store that program and of lean to aspects want into A, new the stores, grow continue the be we to Future,

we perspective. forward Bruce You to talk certain developing market branding categories, in from strategies a there home just soft and about seasonal going heard go namely around furniture how

we are number with think need growth things a those we've growth, that will lean into, place store that years. that of and I and along not there near-term to believe a future with of number to is again a done that new costs drive which a continue invest we in

particularly, focused year's we and performance, this based in costs trended being lower know the throughout stores Additionally, in that solely districts on have incentive country.

for So that there want continue going places a will I forward. number growth, to in to invest we are of think

what opportunities come of think difficulty might in growth out And good I we other strategic know across or question the coming don't answering that review. your the about is feel we growth. resources we spending where back might we or pull where back don't want know pull the where flip areas the side we're fund on to on we're or those allocating to

the I answer your moment. at can't So question

answer to And in think is what that funding importantly more where support need that to just be to is three question and to from. going opportunities, I growth year think enhanced come your new not like we'll March. these but of prepared I some for XXXX outlook look

come that answer So I your fully know it's we know March, right best question doesn't more in but to now. unfortunately.

up follow maybe of Store just Future. And the then on

Future of triangulate And way any next difference seeing this that anyway need Store of Ohio left talked to from what of magnitude year year? in year? to increasing So relative the you're we know the CapEx acceleration versus your about the but in triangulate you year the I to CapEx Phoenix? decided to with belts just any next

perspective, that have next off, around anniversaried. until the two two only think looks markets it's markets have spring lot because only come two but we balance the of of comp. to just we But talk bend the to the two who most those in chain we're from of And first indicative a on have comp a about have year. on to like. the is the go we because comp are Phoenix, going We really have based not Well, comping that best it's what of we the comp markets

hadn't Phoenix touched comments newer been in earlier, while our some of in like mentioned markets tired Bruce than his As little a was more Columbus. and

month digit of is comped mentioned the comp of on month what to particularly as double flat that's perspective, top our up Phoenix for around a ago. so comp we're year as And remarks the and where about that just has come as the was a we even Phoenix the X% excited in closer fairly company band, recently from November prepared a

there Phoenix. consider. standpoint. that competitive is markets from plant physical challenged challenged from as our a more a as well something clearly Columbus in from markets as market. It's standpoint But a extrapolate well and to has our not things lift incremental performed difficult of working a near perspective really So more two or and out one market, comp one of It to perspective working

than better the the off, market market know we're with this in tinkered we've because more company. this looked in market other And and than chain, First invested most we here. any

the to nearby store no timeframe stores. we Secondly, And a during same headquarters -- to other to moved third, nearby we close know we a we opened a nearby from nearby store stores. new our and cannibalized corporate close

impact that So know the market we Columbus better things to to we done know looked we've with. and start

company. double that volume in don't we're we situation. in significantly was look higher markets significant risk Island New Phoenix, Long comment So, than markets and We low have our -- high like single that more trepidation seeing much average already like that that the or around Jersey on where in know the seeing digit Northern large digit lift. where We're

So a to point Matt, you there’s get numeric the before experience. standpoint the to, from into a lot aspects of of qualitative even good things Jennifer just

not we’re again, XXXX. for giving unfortunately, So guidance

asking. remodel say this year to that, XXX you’re for did hard Only for standpoint. just you it’s me we from as So a stores triangulate

on year. of gate already to out in And many strong in many on this stores working start We’re markets year more next spring. already already many, the working on construction than we’re new

comes And our Telsey go Advisory. from Joseph ahead. from Please question next Feldman

question is the to is do guys like, taking what understand; go do the When in results. little better it I part high up And I share asked obviously, you wanted one furniture, a teens, about question; second more think strong very part of of from, bit you’re it guess two percent a high there could business, Just especially of you of future? the how your penetration I’ll the those for store questions. leave think as

regional the know, perspective you from a players. fragmented very of furniture of As market the can very, lot be

the largest player We it are national as relates furniture. to

to are to tell I that So some could as And share, from think taking and well well. stores. the now and there stores as you stores we proactive we’re right with very there’s market there ensuring location and as adjacency from are some out the the players. of of businesses we that know, coming those But look positioned it, definitely being you that it’s regional we we’re closing challenged our

I taking I be the think So would I you would that primary that share. that that tell we’re area the think

national couple while said, to players other competitive Lisa I tell is think business I’d store, about store to I what can values our is footprint. our necessarily with leave across a highly I’ll Lisa saying what you our that’s not in And a her love area inventories things we’ve that add the and our as something do And advantage fragmented nation. furniture the is the allows we’re you Yes, have a across here. in that with in which got it. great we

right own it’s then is defendable, with mean we’ve next be, In got a off nice it top Day, assortment I And Day, with can together. Labor to easy we’re Lisa excited a place addition where about capability And progressive that, her it you partners great us with differentiated. great seasonal we and we put team to and own it’s and soft all just home that. leasing, to helping Labor attachment and curate that that

omni-channel that well, continue but So as to that. good we in about think future, and and that’s see it assortment I a the so as with going ourselves market to growth continue position really just dovetail for the we features strengthen excited

accelerating understand get I And makes if I if I the heard could then sense, that. Store I ask, future correctly, of

probably terms you're I of that like want there thinking Sounds better new growth in this yet. that number unit just haven't going units, plan year, big units jump well. know be to full you of wanted figured forward? is this And a should think how the I is or But what in growth as you guys store get increase out to X% to or next a in sense going about accelerate we

details and more off for over then things hand start it. of to the on I’ll TJ maybe

to us like what winnable to truly one, convenient we're Jennifer model areas a continue ownable expand to allow promising; also with furniture. and Our our real make estate in be that like relocations us more doing the

that of assortment don't really the a XX,XXX it foot low full One our stores have allow maybe us to our in ownable winnable. of range square

relocated given in and with complete of why assortment Future one being accelerator us. a the that key toy last going What’s is the us very business reasons to way. platform that have happened for year promising larger estate, us out store stores choice more us an our a Store nice over model opportunity for to real an getting in is So bid footprint a of on of the and the of has a suits and allows really

hardly position long of of any of short but do great the way. and chain, adding investments it's us to that, result these an in our a because a to as in and flow Sure are because in we're negative overall so lot to cash are opportunistic grow. not a real for term, are estate expenses relocating in the And up right we term, pick closure stores that that have we that because of

net you healthy, on in net a many it's years. color direction. on being a right the I in moving think we'll store that we of but significant bit positive, direction think year-over-year, time I'll have It's in more increase Now, the for it's because our give the little not it. first think growth TJ positive be movement But fleet I

look whether would think five Joe. think Bruce just at I Yes, if or not contraction the probably we've summarized at as longer, of slightly store or seen it really you positive store of least X% being years, year footage I six where year for net you XXXX well, last for or over square count, X%.

talking that's into X%, that's growth a footage it. that excited not Joe. pretty not positive and teams are down us our significant X% or about for we're and territory flipping X%, at move, net But So historically where being all, we about X% are X%

Bruce many for a it's stores position and can. us appropriately able to present categories, more be our to great because we more strategically, As mentioned, ownable fit in

suggest the is close because we're not be any look Even store, we we performing. of because relocating into that will to you store stores large as XXXX, the I necessarily would the majority not

we coming or longer, unfortunate locations us standpoint that it's benefit. where some be the cost a very we're glad are the the about over of moved we Again, the feel that opportunities volume we that way experiencing into market. look when of to positioning the years these a ahead So good decision. and we'll three from next out in But

will Capital Markets. Anthony come from from Please question final Loop ahead. our go And Chukumba

than going just you more sounds And obviously, anticipated. sounds accelerating of bit wondering, was like significantly. I down going guidance pretty guess are free I flow forward, a those it be Future recently your remodels like brought remodels little cost the cash it you'll Store to and

guess, have $XX about capital is on I reevaluate did you a you're at your point guys deferring to your do dividend accelerate million what I'm repurchase So share and wondering strategy, allocation what quarter. cash paying year and last you

trying cash you're the to think that free of thoughts trying well. change to So just the said opening new am your as get think given I or in the I guess stores fact repurchased terms you and I remodel in the -- store that to how about in flow even, about terms was like Thanks. I of going

strategically I stock you dividend working in I'll always balance in up with position first, start the not paying our nice as noted always, may cover. some We've and do our and TJ buyback. been finish things we've of investing business, where a a we've to had board, cash

way We that. do we'll continue to we'll how to way think about this and this continue think

find if I think our the strategic of that accelerated in well, way. from initiatives that my balance from to could the we is cash key thing change is do year-to-year. shareholder that perspective, that And produce job an allocation value long term really

the term and weeks over our March, As we term company we're going is that XX to balance looks to about like. get that both But in that the brings process shareholders. be to informed to next value the to talking intent strategy go more what through long near XX the always and right

being over cash lines those well, our investing of business we Future. Bruce year by Meaning, we followed more returned the ago when a start results seeing shareholders us. little I returning shareholders. We bit. in And ago time summarized a historically, year or conference, business. in it think to and we I'd we we was more and said of positive the pivot and will started encouraged at you The about, were crossing fall Store investing a the to Anthony. investor back less say, our This talked

think that capital that do not strategic into of important. returning that and the lightly, I it's and certainly degree to continues something beyond and this know or we're to is XXXX going We we from feedback we that to It's from what prioritize them something review. likely shareholders cash is discussions. allocation level and that learn going our will take in

even top-line know business become also that they investors the in market us talking grow from business and grow the invest to want more to and competitive. and and We the grow share

been the least. board trying those, we're So between But last for to the balance consistent come. it's of management topic a quarters couple and both team to more the of at

thank you please Samantha, with close instructions? call would everyone. replay Okay, the you

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