The Scotts Miracle-Gro Company (SMG) 4 Aug 212021 Q3 Earnings call transcript

Good day, and welcome to The Scotts Miracle-Gro Company’s Third Quarter Earnings Conference Call.

As a reminder, today’s call is being recorded. At this time, I would like to turn the conference over to Jim King. Please go ahead, sir.

Good morning, everyone, and welcome to the Scotts Mircle-Gro’s third quarter conference call.

Officer, is Financial and well Hawthorn. Officer, President Chief morning our Jim as this Chris and Chief and Interim Cory Operating me our President CEO, Chairman Hagedorn; our Hagedorn, Joining Group Lukemire; of Mike Miller; as a will some and and prepared to your Cory the we’ll open call Jim questions. moment, remarks In share then In and one question keep to the one interest of time, we ask you to follow-up. in many of you this the I’ve gaps. scheduled fill time with already call after to set to directly wants Anyone some we’ll Q&A up me who else as call can up we at set time can. and XXX-XXX-XXXX quickly some time as quick the Cory Raymond One XX, and in Conference Consumer be on September participating held housekeeping, of James be which I bit will will virtually. time in of a the We’ll and date advance. publish weeks more couple related details to say, themselves we with should familiarize our which on remind actual With forward-looking Form those are make Securities you Exchange differ range could so that as today’s to Commission. is the impact we that that, expect that XX-K, and call, let’s investors could caution of our you to with to always, filed factors the move from results, our I want what risk statements, filed materially results I full also and I is on available remind the today’s call be being that archived call to want everyone recorded will of version our website. With that, started. get let’s

Hagedorn. to Jim? I’ll so Jim call the And over turn

It’s Yes, and help, most consumer finally get But feel important has the remain quarter with tough comps of a we’re starting morning, Yes, as like good at everyone it the and we’ve fact consumers do posted inflection a take seeing coming. with deeper everyone. This we’re starting Perhaps we’re is from normal but both year. in starting call to for point Jim, business, cost pace the knew feel unrelenting. another look to the are at the call commodities community Thanks, past to run was a record we’re their important over routines. an investment positive. on lot because can’t see nothing yes, year, companies, pressures our to the up strong that And back businesses. I to I against today.

at only happening possibly a can’t understand look P&L, what’s you here. quarterly you If

You you find answers even to you have analyze, the have about to past. to the dig, asking you’ve have to thought in never questions

For telling anyone dig, than who listen, I’ve more fundamentally as would Miracle-Gro COVID more the more company. we convinced analyze, the stronger exactly year, been believe that is what’s I we that exit would deeper I’m And happened. a Scotts a the

base consumer and more Our today is to vastly engaged pandemic. bigger prior than the

those personal Our relationship consumers stronger to our than the programs. ever. overhaul is and more of with Thanks marketing

to our new consumer engage been easier made the and continues provide that ability their to innovation important on the to them innovation. team better due our Our direct improvements even today by to to terms ability in possible vast is turnout best initiatives outcomes has an

industry can’t new explore and Hawthorne growth. long-term the driving the built and creative competitive that this vision match. growth others that We industry. science-based for is And Our opportunities advantages us brought is to We to success. we embrace market positioning to for to innovation engine continues continue outperform a in itself

we’ve strength us the than of In a flexibility addition in financial our had to our gives sheet businesses, more balance decade.

invest pursue those. immediate in and to We growth have opportunities we’ll

the especially growth we our to that opportunity in pursue invest will also share too. price. recent to have long-term pursue, return we’ll given cash opportunities and in pullback shareholders, which the have to We And

in of We’ve see the over and XX full We’re a not the presented advantage taken them that put right perfectly weaknesses, doing opportunity past ourselves have major I for don’t everything unique look itself months great I here. now. position. When just

I how to of to that’s distinct want cover up so I the five this frame context want morning. topics And

by retained continued not captured we to to XXXX. say the engagement I of sure all Consumer U.S. our year, growth and many remained I’m we CPG strong, nearly business. Consumer in First, expect strength of companies navigate discuss have through we time the want the the next other that.

again are Hawthorne, full on up strong. XX% extremely We quarter, the Second, were the basis. and of to to expect XX% XX% we continue trends a in growth year

announced Third, for we strategic M&A, morning, small, acquisition Hawthorne. but this bolt-on a

to to opportunities the cannabis are in exploring year. bigger others next invest are areas thoughts Fourth, finding we about that committed scope, our industry. I’ll ways continue in We of and view some early increasingly of creative share

but working I And year. fifth, want they We’re XXXX our on today, guidance not thoughts providing touch have a next shareholders believe cash what shareholders. long-term will And to hear. I evolving we do returning to about fiscal thesis about like

to Let’s call season. this in coming Consumer. expected up twice the we top start numbers with we’ve Clearly, U.S. us into allowed a our better and Consumer done than job line engagement exceeded expectations the our year.

of a benefit year lot excess of engagement details. who share a remains XX%. course, of navigate. to the business. return. actual product I Entering XX% about to on category want season, came is number deeper suggested high. in every has takeaway consumers into our of that foundation my last underlying believe space to pressures the trying let We those this the into was The I’ll strong would extremely most the time $X commodity probably focus by offset research is critical dive consumer the closer Of consumer the been company in that Cory

increased and purchases most is less gardening pretty gap negligible. that who consumers However, benefited a largest units XXXX subtract our important more, promotional did participation at products partners retail the X%. largest their here it’s were and our did our understand. that a retail X%. participation the of consumers at consumer participation however, dollars story no POS this August up year who our In was In we’ve suggests Entering of well in units, retailers dollars When is for data between level we’re almost confident this did In And our higher activity. with we number from up to partners. overall spring. four as category There’s from years, those X%. they one-third all aligns

POS X% dollars This between XXXX. more soils business difference our reintroduced. categories X impact So POS year-to-date, XX is of X% are in retailers units X%. reflection up XX% control but far the were grass more third less behavior their and for units for as grass and like are In This are lawn shipments well POS promotional the dollars and as fertilizer, and growth we’re X XX%. in year seed, other accurate units where pronounced a up year-over-year promotions meant In activity seed. is than straight change up the promoted branded year seeing respectively. activity dollars XX% XX up mulch, consumer The up swung of our dollars dollars And outpaced units. are direction. in the back weed double-digit were other POS in were and X%, there

all posting across good would categories, we’re the any So be numbers in year.

reported was last plus the tough comparisons. up POS difficult So we’re gains XX. the we when number expected the Still of lot Most the a extremely was pleased call given reduction we’ve of given of the on because year-to-date the comps.

much Mother’s the not the record the and better the have and Memorial season, weather of believe numbers Father’s some June. it Day in On weekend, in through most the it’s result largest been Northeast. Day May not Day been was undoubtedly if of lower challenges weekend snowed key for Midwest better. would brought historically we drove markets. gardening However, cold that the

the In fact, Last June extremely from impact happening people not of a as working conditions heat we on lot U.S. of drought the a more the than were to magnified year, wet were course, was seeing. in home, much in saw whole helped this record from either. We believe weather weekdays we when And Midwest. Western was and accustomed year. the have POS

weekend weekends if closer the lousy, it foot was again. on year, weather because wasn’t shopping more were the So weekday more a normal, traffic deal, to important big because much But become this have people weekdays. was

Weather difficult more By lot and this have consumer will points I least cost it weather engagement XX, overcome seen at Nonetheless, was us an remains This XXXX. a to encouraging. year. And a reality. year it. September headwind impact business. is X weather lousy a we’ve fiscal suspect can significant So not excuse. this It’s of is in of the growth

it’s third XX% X% historically for quarter of from the was in compared Our POS weeks compared of that period, to XXXX, XX% the POS period XX-week tougher up look to when those hit to about from accounts XXXX. full XXXX June POS. we April was but this same started levels. year In only year down last down XX% at that’s weeks we nine comps, If through

we last degree for the year retail If but for to we POS XXXX, a lot window. rate. on to position. the nine-week lighting same to going give I’m where year market-leading share In Through higher we which balance for June see XX%. POS that Behind during to inventory there turn XXXX the the Within that with I’d market from across full page a up on expect levels, range share its to grew trends The them, digits, at higher are U.S. the compared be to XX% X% in to stories. mid-single grew the of QX, year. to business, and the are year-to-date up X%. of at continues some continue brand XX% trends XXXX twice the be confidence we are it’s set our we than full up sales year, be However, number, Hawthorne, consumer of from combined current that planned on slightly low guidance numbers, up more love basis to from build as our than more our to likely Gavita of expect highlights great of strength details POS the extrapolate current all consumer us leading a business sales of dollars XX%. units high growth the Board. business

new in part an of across Western States. the country come We legacy market continue growth the to retrofit online facilities the the United markets see and remained story and important

LED which led were see of growers Our success our a for innovation. to quarter to well, be the provide strength In media replacement continues the sodium that success up actual to high cannabis reflection of more consumable lights. one was market. Nutrients as XX% particular, growth with continue by in category Outside in the products a existing and one lighting lighting in we continue for see new growing XX%. is pressure lighting, accurate great up in sales we

The ended business. roughly and Earth the Botanicare And Mother the the the June. Our than innovation quarter, this strength brands signature total enhance the the of higher growth General our our expect times X ever which us marketing. with full sales our saw year growing than The more rest the is The category. media portfolio. and XX% our in faster points growth our XX upgrade we more little month grew year for our grew X significantly in upside to lot our across than a overall improve guidance. outperformed Hydroponics brands initial times talent, efforts Board a to led than nutrient we largest rate

investments expect opportunity help will to to year years again drive M&A. those drive next is follow. growth the another and business We through Obviously, the

leading and touch of margin integrated filtration bolt-on a a existing category. a The This highly is the high purification. compliment an deal. makes morning. That our acquisition is strong irrigation me easily announced business HydroLogic it products pretty to deal is provider water strategic. supply to That and on in related let this is systems we straightforward. of So HydroLogic

in the can we have both to business pipeline for The segments now. is targets continue opportunities are to challenge digest than medium-sized more many of Hawthorne small We in M&A to right businesses. the

within putting will it to in the done. good and we’re work to cannabis of capital we and just think diligence more the the to In an sophisticated to harder and are created easy but it’s consuming. end law in opposite. lack due force, of remain the Separately, of requirements industry to financial small tell consumer I that are well in of operations. making closer and time other months allow by current a as the get might brands of The And deal areas entities just the federal deals to After task to grower and done, get makes the lenders. bounds as that us process investments that internal we’re process will our controls we’ve to IT systems that progress. you rush cases, going You not most make non-equity invest cannabis work the committed

successful potential strategy in we we’ve we’ve the to been as Hawthorne, significant life activities, near better a anyone in touching with highly see to though, current than hope We’ve involved marketplace. in been this and fact, partners developed discussions perhaps future. space authorized state well the movement In Even with on understand bring the to plant as anyone. based business never

create ahead. federal little an industry Our broader early look is significant law in months here. to evolving advantage record, win is track forward our believe I when in an more the given the have for optionality This we sharing vision the And market doubt. growth. U.S. to is details cannabis There to mover poised allows. have to absolute right I

in Speaking for I of the months know fiscal what’s ahead, store everyone wants XXXX. to realize

strong. easy rate The they’re more acquisition remains So this part some run just change completed of hopefully, gears Hawthorne. level this on horizon. equation of thoughts. share is segment The let We an the business and me and high

extend continue the marketplace. to in overall We leadership our

in We We costs. for not year. to different. XX% challenge several consumer will continue to a second. next on below next and worked grow hard the estimate but a commit to that the to Cory to many, know questions approach taking perhaps But we’ve us pressures path. face had part. everything seeing, related and several the The past perhaps conservative here. cover I And years U.S. a first same down has XX% continued XXXX it’s for guidance be that over commodity enter it pretty I’ll conservative to the imagine higher tough growth the from our like fiscal feels we’ll cover range being based growth against for are is. we’re the same business challenging over to more years. year continue will going I’m the comps,

months First we to still two have year. go things a first, in

line. working focused I keep and the the to finish Mike are to way team So all the

a relates parts. lot year, As are there next to it of moving

a not So are. captured we That this be in we we growth segment, keep XXXX specific in where to ago, our my be the U.S. morning. I’d view. that year we’re Consumer you I told overly going like if remains said, happy could I

top We’re line probably next to going continue some comps. because to pressure through difficult the feel of April

a easier Consumer tough prudent will now, business the slightly year I this some start for to a XXXX fiscal goes So extent, plan that be you’d get to mirror Right it’s to of image U.S. next decline as year, on. the believe year.

a have Some of you model suggesting double-digit decline.

far. our the early and growth we We’re from too hoping to it do sticky pricing, still better next business than that, nearly of right until That’s and it’s tell. position why year. it so of last hard we’ll demographics Obviously, again a a in consumer year worth benefits the market market, stronger our up in do but so why know won’t picked expected and time this brands changing lawn we’ve year, the garden of with been far so feels decade point to given guidance. red-hot not really post-COVID real pretty Coupled next but this the a us and view now, in estate world. That’s in a investing leaves season

lot a have to of change. days and next over work XX the our do thoughts We could

with We are and next year. programs some still listings for major finalizing retailers

course, of through what on commodities. as understand second like price We picture take a inventory increase in happens season to we And season. we next depending with what fall the prepare get to looks also January, for may need retail

it’s that in I at in tough it’s And we’d just subject, to it’s business we understand cash give clear a picture returning I bullish feeling outset the November. cover hope to at by talk expect want when said and the we’re to the to that clearer I one P&L. vein, looking briefly you again So much that more shareholders.

that how I’ve And set pullback worry long-term buying and million upwards special As since year, possibility allocating about I in year equity authorization. our creating team. clear times share execute. we I this the on a at to at said early strategy. dividend the multiple that I a fluctuations. I’m we’re value. uncertainty told like I’ve big believe fan up perspective June, quarter-to-quarter Cory, I drag repeatedly like look about shares at about our I’m business our in this our and And to next hinted the with a of repurchase prices. price think is of don’t these of ahead know I a existing I this it’s months comfortable our the $XXX under

So look do for us to that.

around It and I came There’s one here walking our their Ohio that us for quarter of Before Their companies. to want enthusiasm could since. many in and I R&D conducting us posting last things scientists at in reminded campus bit record here. was over I for future a has belief It’s our early helped mean it last COVID of other just I what turn me I our was the through field their to you’ll days group perspective. been Plant why of what carried of associates. add the Cory, drive work inspiring. across and research. love working every we’ve don’t an find think results week optimism

worried early turn and difficult for own he of we’re me never overview that, We the brief see believe business in to about about negative quarters fact the opportunities that mission worried here. has our a we’re couple With of will our We some goes comps thoughts things believe And over disappear aren’t back Cory in on numbers his to executing the that We year. believe a we never world future next of face that share the have been continue up. more coming and likely does the our or we against. place we aren’t we normal. consumers a and the plentiful better the to So believe brighter. let make to the been world vision

morning, and everyone. strong Jim. Thanks, agree another QX with was I Jim, good quarter.

For my we’ve the team QX, bottom pace seat, performance I’ve Company-wide this in CFO line remain a X% our the and overcoming XX% marketplace. in have the challenges. now and the of themselves great Their new top line. deliver managing in while point a the front year manifested guidance announced job, They’re leveraging pretty on results unusual watch morning. opportunity solid again opportunities seen sales both our navigate vantage the had to year-to-date. efforts in doing on and up were we’re the we to and We up all us,

Although, even of of next providing the we’re we’re a to see than trends to margin current below we’ve year, also to how months, I’ll the we the I for what my seeing few more things, gross likely we spend clear time pressure a when seen the pressure those rate over But in to understanding some the we and talked spill to minutes. year. Bonnie. expect unexpected of line want from expected some last, balance we items in overall, three expect recent get what see into

where with X% with That sales declined in are Let’s in of X% higher X%. provided the U.S. to sales the Consumer right said I start track on we business, a year-to-date. the we growth June, guidance expect when XX% quarter, us back leaves but

be. is over As inventory levels also back remained This engagement months. the levels several Jim where to said, the extremely they already getting inventory needed consumer increased throughout have to season. solid has past Retailer

we’ve We growth for too. business of on at to year what Hawthorne, QX. our on outlook the that there’s no so need the confident seeing in heard already been You’ve remain details elaborate

in means for those range over nothing sales maintain pretty to in So of we’ve have Hawthorne you our than strength to the But would a of XX% the growth in plus in to to either is the QX. shipments And seeing by see order XX% our in segments, means year. lower have the reporting lower dramatic a in guidance change guidance To U.S. been obviously XX%, QX. get to business. rates growth underlying flat to major to both do Consumer our with hold, trajectory year-over-year past decline which guidance, what

me in grew XX% XXXX, by QX let that down that the So you. grew for Remember Consumer business break and Hawthorne in XX%. U.S.

So the the first headwind. comps That’s are extremely high.

shift Hawthorne. in we a shift in in we’ve ago, year had fiscal second talked basis, QX. is had On calendar in million of QX, basis, that approximately negative more sales pretty has The QX. year-to-date than million divided XXXX while the approximately a added impact a days on through our $XXX about the which year-to-date evenly and U.S. between company-wide on $XX a is It Consumer

which XX% degree in high major unforeseen the any the California, level in in about us expect basis. of other the inventory. headwind shift the the U.S. U.S. that of QX midst Of to in for guidance Hawthorne, we’ll products a annual would lower comp reasons. a out In stores in our come million continue so year-over-year shipping of the be In $XX days sales to barring course, California gives of we’re against of event. significantly sight in year up got that a good means to replenishing QX fewer rate QX, have this neutral XX% be order on growth Consumer, would fall confidence in the here, and keep full few for QX categories in our accounts line we’re We’ve the is other at We which in of right for

comp up against. is the that obviously, difficult we’re First,

of Second which the them business. had time. the part a of good weather and to the have growing fact allowed growers to turned an their this in outdoor Good out off weather many is season that is that impact important already a a on strange for early crops year, outdoor get has second start year west

handful the over products. and some our who of negatively the heat have of those impacted past the business drought for For need their weeks haven’t, and

for driving we we reset growth. sales some we and In June, met both said Third, fact month believe to in in contributed June. continue on forward to of that some we the referenced. reinvest saw the pull plan issue some we planned Consumer previously record When is a a Hawthorne, simply a and that Hawthorne of at Jim to U.S. of performance beginning which June, into that promotions guidance the timing upside the

So year top we expect of still XX% year-to-date year, with growth. to of up balance XX% But the of give XX% expect Hawthorne to finish last to year. over net-net, the on we some growth that growth, the

fact, nine our business sales already year XXXX. after This all this to higher months In are than X% thrive. continues of

Let’s move this where the hearing from the cover. gross continue is inflation. to all focus down other and P&L margins, on issue we that impact you an Clearly, about that been feel from of companies you have

we’ve expect demand urea, commodities Scotts global and Miracle-Gro, For in for relief has kept a Typically, over in not of to that we track resin urea steady it’s see yourselves. stubbornly that’s to the but some summer, seen the increase prices happening, like easy prices elevated. diesel you all are

summer rate. going likely year months, rate XXX and is pressure. quarter, likely in I plant year. XXX points rate gross of to decline approximately another points and another gross of by in so pressure margin material fixed moderate these full costs higher do past fourth the the put seeing the from ago. Year-to-date, expect XX.X%, pressures Northwest, our such basis the issues significant a over is XXX leverage. the pressure adjusted the than will and has as XXX the last there adjusted commodities impact In any would of Most decline from than to harvested a due moved weather a led you the points. out partially imbalance. cost conditions were offset of an probably a of third yields We’re in which higher further the points moss. than and stagnant can’t also basis more XXX basis inputs decline distribution seed Through harsh of to seed gross points Grass result points nine now anything certainly impacted rate lower easily, that year XXX year, quarter, costs supply track on as margin demand Pacific by of cost seed margin peat that grass basis Those to aren’t

significant live XXX And those of the the higher gone and this our pressure, week were really costs of few they the all while final about has basis planned. on long. eight for been XXX other points weeks year, points have help of rate However, increase downward price offsets will to year

costs look about ahead for year, locked lower right we two to than of are As next normal reasons. now. our That’s only XX%

a First, aside, Hawthorne it’s in pricing already on our weeks our still XXXX especially is year, make negative issues fiscal commodity to intent with paused don’t and another efforts But lock resin. The more investments hope as retail is second, those at that pricing for if segment will we U.S. mix expect we Setting to partners. than to rates Consumer. few seeing the see enough much some been harder that costs reinforce point for a to chain calendar we’ve And relief. our will communicated was pressure. take Jim’s rate And commodities, of we’ve I’ll hedging our some U.S. a a goal to took X%. Consumer offset little continue of pricing the supply higher begin in just to effect additional to of grow January. to take moderate in end the round by the plan that than

There recent I staying operating a SG&A. So by has on be SG&A again EPS. of great on now expect explain items I next be adjustments down. want past line, well, see reductions to in to give the in year, range pressure you months, as a flat job to the slightly focused though, both to are good flat said June, I I offsetting the right which weeks expected of slightly the overall year rate margin several In The downward over full now. the higher pressure We’ve we XXXX. we’re and some can’t done likely number decline made some a the couple putting than to below to are team

is first Plants. the impact Bonnie The of

June, expected, to this $X.XX recall, $X.XX lower too add you profits we we the said got than Bonnie By would inventory. built they to If had they had to year. we much because begun seeing earnings originally time

the then, So about when headwind saw our year. our EPS. in was early for full Since assumption reset now we have neutral to would guidance a we a leading further is adjusted year-over-year June, their impact Bonnie $X.XX which the results, of on that erosion

other came in difference That critical challenging of remain weather, edible needed. up level Jim due and to of stuck because two growth. next gardening business Bonnie If cost. meant June in weekends wound build there’s participation the and earlier. get doesn’t finished to in A major destroyed deal. If than sell gets way Plants While we segments light the that they it May into which fertilizer they inventory. inventory between higher multiple greenhouse, goods part explained strong, offset a for plants no rates big and growing that to a inability it our no carry in inventory, is much and too more year, Bonnie we carry

lower. So the equity we flow straight be income the gross obviously benefit from bottom margin will hit and means line will that their expected to

has nothing headwind JV Bonnie’s quarter due business. with exclude Bonnie’s is timing Remember, include for As that you quarter. XXXX the our the it’s It last which models a year, about Bonnie first first the when state do remember a of be think to expected XX-XX to results Fiscal fiscal our we always we’ve in next your of to struck XXXX. this with year-over-year important to quarter, them. year will

from increase in point critical higher year improving goods, working NCS probably committed plants. especially better bonds, business. on remains this to decade. strong lock This add with borrowing interest pressure Bringing were few allow another and be comes year. the plan remain Bonnie flexibility to $XX.XX the XX-year roughly the to edible that is of naturally we It $X with XX the next headwind share of another on over guidance. the to and more our could On XX% process are frustrating, decide There EPS EPS and the per absolutely currently and contemplating result the in few strategy to to expense. for longer rates the year-to-date. adjusted and we team improved share from bond to a you offering non-GAAP down term in quarter, on by the XX% of with Bonnie respectively. end of live If X% provide to things $X.XX the which are weeks, maturity could quarter planning execute $X.XX We at next volatility is we to earnings this we basis, liquidity that bottom navigate and a and While per X%. per a will XX% cents an year-to-date, share GAAP how for line, the lock-in

to propel share in want business, marketing, I questions, theme that your advantages heard could that I and made exactly Consumer to In call happened. where that the that build chain to. in conviction on spent traditional the U.S. ago COVID open supply well-positioned you built investments this We business company. have the Hawthorne, Jim. competitive we’ve to direct-to-consumer, And exceptionally future. we previous better a the years, continued we that his out I And sales, the believe from year we leave what Before us stronger for and forward of R&D six come is the

flexibility the let but the place the I’m our and for means steps put we’ve in taken And the we’ve being that, open right debt steps which person convinced tremendous objective continue business, to most of the of my also for our the I’ll on your taken was questions. our us me the admit less for an the we’ve financial as In at low to we than infrastructure funding if amount to remarks not returning With conclude acquisitions improvement, and call times business addition, future. call, leverage, this perhaps that to X.X enormous cash look while shareholders. right quarter, gives shareholders. end the

Instructions] [Operator first Thank now you. Zekauskas will question from We take our JP ahead. go Morgan. Please Jeff from

much. very Thanks

you said good think just – I morning. hi, that

And That your I you your said raise that business when were you raising like, by think get X%, enough them you true? that price in sound try material, to Consumer X%. offset raw you prices inflation. X%. it’s doesn’t Is to

with This a across. to a that. go This higher We is actually Mike is Lukemire. in net number

are so categories, And in some higher than X%. we actually

got at the mix. you look So to

to it monitoring our high, down. on, with we’re continues stay said, we’re variety, to But yes, adjustment. enough, make as it and a there’ll be So it’s if and partners this going we retail goes early another if

Jim Look, here. Hagedorn

think to of our good retailers. where got one from really those under and it’s I we a think place pressure things, not I

I seems saying, place bright. of think we got this to a

coming the at look I you this the think last page, was week, knows. down. If just headlines, headline front the anybody I like the I in don’t think journal, commodities that grew, in are think

it’s it now. reasonable was eases, good. And I if If to understand, to think take. we’ll our the think board, thought trying very them doesn’t taking look, across are retailers unique – position not we’re And the response fair thought, one the not unique. that and this it think do do and retailers January. saying, we’re was fairly was to in more we’re I ease, that a I I

down, in it depends then If happens doesn’t then be – it pressure. that should more. of on And the with what comes to aware retailers So goes then commodity if agreeable down, X% enough. come it it are it. If we’ll take

So I place, in up actually. a really think we ended good

buy are, how to like, all calendar you’ve end the do the you urea got to your calendar So, how to other catch much the So urea, in words, of of quarter in by it up. bought have terms much fourth quarter year? the fourth of in want

all generally don’t We it have fourth in quarter. the

We’ve – it do chosen that. to not be So around be to we hedged. will like XX%

we’re generally now. prices soften, monitoring the that expect that right We

Okay, great.

Okay. you very much. Thank

You bet.

ahead. Peter take now our UBS. Please from Grom question from We’ll next go

everyone. morning, Hey, good

for played prudent. thank versus have said is on ultimately so initially when through much you I the of go kind proven you’ve fiscal out, But So what guess, commentary what to your historically, comments be I XXXX.

should that if the some kind of on understand, from commentary at building fiscal catch then to want of initial today. up is underlying does look maybe just trajectory? assume sort Consumer, weather I that normal within how your So XXXX of U.S. just that And investors kind that, the like,

aboard, of Well, all. first Peter, welcome

here. So Hagedorn Jim

the of sandbagging, prudent prudent equivalent on I think if – I is think Hawthorne, we prudent. were

if back then I than of think, less future. XX% biggest in look Although, I I in made at least whatever history I recent mistake what got was growth, didn’t and expectations And hammered have year say, Hawthorne near sort with in saying, the XX%. think the I’ve

say good would a for prudent is I So answer Hawthorne.

XX% go is idea, I which the could On hang here of back If on more on try that’s And this and to be of the this side, we our it a year. that. call with I’ve little on the expectations to had last year, basically hell been to sort set happy Consumer the then sort we challenging hang bit, the margins, growth as team. management I’d

year So wasn’t weren’t really more we take. actually pricing where sold been pretty a We year. I are margins had have last The consumer, It of of where good units actually those to was one feel than things we – about even this with the optional. we challenge. sort

the So where I don’t and really what maybe optimistic. year know is this normal is. think a I for do being personally I’m consumer

higher about retail. thing take I’ve of being is higher is current That you If it’s having the business, with than the margins a year. discussions The actually been two sort look at things is, which not true. what’s we’re retailers at drive last level, that inventory

is don’t be going of correct that so sort having about inventory. a there’s everybody of actually I inventory think I paranoid lot to to pressure think

for in for that weather really think it. beginning going about of year. us. think I it’s And is into – look say, should the good again it’s I that full helpful think something did about We something I stability us next the like the like, The and really many you mean, Scotts be how iterations went the people a something I stickiness this. for the don’t businesses. business really want but that I QX consumer – call we shelves we soft just and in through, QX were the and pan, our that. script, it’s that has on a just think I like I know think of as It’s good story

challenging, look if Ohio Father’s the and – don’t they Day, you’re know, Mother’s our If just which XX% Day, east, is plus and probably say, all Memorial July, of you really in X of Day, I of least live sort in business. were it at

points basis us I cost a think So probably fact the XXX growth. we of said, that

something just look that’s of think business out that, about I I the the normally strength say, the window. because

So feel is normalize for correction whether and into less about us, positive I like concerned inventory year. next I’m coming next actually a year

next consumer answer make the pretty is I’m on Does I And optimistic right side year. for think Hawthorne. the for So prudent sense? that probably

but I on step guess guess, a of building for QX of It two the does no. guidance on kind just wide up a it a commentary, No, the incredibly is Consumer imply stack. maybe helpful. totally that range, some I U.S. pretty does. That’s year

pleased much X% this core, kind June, maybe and Cory, think – but but in of to a with you didn’t more of So the results, you X% raised that back mentioned that is this see when you upside I to guidance we’re figure.

given like expectation comment versus QX. So true? does has that there just be upside feel could you lease what I still guess, do been Or our hold stronger

guidance, point that gave at where Hey, thought it’s a was in. we of pretty we the time looked was last about to we the view going And at and come talked I the Cory. X% had realistic X% that year

of flattish look As numbers of they’re here in to don’t numbers. we sit to don’t that get a see back ton upside year of going full today, a to our I to risks like see range. I be ton X% to X% QX above a kind that. those

probably I still think good that’s range. a

so you on. pass Thank it Okay. much. I’ll

next from Please We will now take ahead. our from William go Jon Andersen question Blair.

morning, everybody. Good

Jon. Hi,

the today? view might if on kind and of efforts Jim, teams increase? commodities contemplating in be magnitude assumptions some with around whether price you mentioned transcript you’re that least be direct be commentary you second Thank assist more the talk be you. refer of going XXXX with that be effort. of that more kind little new it a Consumer you about slightly it in working specific marketing whether the the that will that to some consumers products, that the making, of your increase business And preliminary based you of where can at the U.S. price to What sit of a Are down. that for then around just bit new retention to

much of me. for Mike by I and to expressing a to over-commit. commitment. say, what water There’s to finance. The a the I’m We doubt lot different I lack not team operating bit question. a of is the than sort make in carry as right. here to do that All of sort of got going effort of start a part and I little got real

good, over I think, I promise. been would at POS that, manage. that’s say the pretty important it’s we is to how say, of to investment not going whether I’m I do will East. kind has say community looking definitely recently,

that biggest for and customers. on those I to clinical that. proven the we’ve factor whether, hang us mean, we’ve I done it’s can is think we think I

we’re optimistic in at So more talking you. the that numbers my I’m than heart probably

said with years calls manage As recently. we look I at and I on that this these very budgeting, the aligned he we can on year at are our Mike all much not and very speak that is this and been for clear which Mike the yet, and and – repeatedly is himself, I’ve which think we’ve complete looked

in saying, be year. that came and lot And happens we I can Given lever, I behind new where way. like to felt really year, is to that his of occurring? very think that’s is And and of much I COVID promotion a doing go. last dollars. Mike or approach is that deals more our put promotion sort think wrong. chance money said, efforts a with last with in [indiscernible] a past, sort bill are continue more direct days back tight said might’ve of to to four an on of what the we’re about And with I’d that media out Why good we due media/marketing company, marketing in I retailers branded Randy, was using of now cut of Mike like opportunity dollars social hours why whole

roundabout is efforts us in you sell thing. this what different, commitment our branded and is our makes we way to to of saying voluntary brand efforts is a I’m sort what not so building And like It high and our products. marketing is

do you to… Mike, want So

to would I more I were I’m say, but on bullish, we holding still always customers. Yes, –

or still be and and and XX promotional with to right Will partnering looks next of with that going the we’re retailers August, seeing and The like, think here and balance localization comp. between stronger be off POS activity I’m I I more targeted X% targeted even weather marketing over at is even activity now using there. August think We’re that bullish marketing. in year? year. next our and our X% for we consumer we’re like And marketing, balancing starting on on

position a in is shipment matter I behind And were so of think a of and balancing the we timing catch better that we’re shipment far up. from activity.

And So but I’d they’re there. still some there customer upside POS, from almost the is disconnect to buying is that. still shipments and

think I and hear – some the so And you’ll from categories. that our of retailers in

handicap pricing Are at handicap another round January? this to need you Okay. for point? Mike, the of would how willing you in that

is. it Yes,

is a Well, relief. I’m seeing day yes, every think resin the seen, and – cost I I’m new supply not worried have I about

The say be seed. – I’d has there’s to and bad going grass it’s grass harvest a shortage shortage been actually probably seed. a on So

we where temporary, on we relief retailers I certain, it’s it the know. to some and near that plan wasn’t which of there. I a long-term ourselves but news see think the the that can now, it’s developed And the asked build we are but aware commodities, I here compromise, is, it. Jon, question pressure don’t the was been And retailers months and to this way are was continue between two-step like mean, sort I think a before there’s And we believe we’ve time and looking in by good I can the sensitive it feels call. with surprised and said,

based call, the that the room what But sort too. now. were on But think would believes adds Mike I it’s said this this if in if fed would have we know we’ll near I I see. we certain say you of, probably think before

much. very Thanks Okay.

from We go next Joe will from James. ahead. Raymond Please question take now our Altobello

Jon’s if morning. terms guys in the X% end has necessarily in say, on increase you if the Good follow-up Because up the guys. impact of volumes. let’s consumers historically down. took, what’s price X%, risk top gets models question, doing out I’ll you just They that category, high. of on internal trade been your I guess do Hey, pricing think don’t another, of the trade Thanks. too you I January. On tell potential

So is how being next double much year up risk of ends that if a pricing digits.

spoken Look, I’ve been out I of think.

things less of are look out pressure I inflationary period. this when bad heard I of you get think crappy kind for there, environment. that think the And at we think is economy if I that in American sort

I’m If like which that all at here are housing and you saying housing during remember, some is and crisis a during not great calling I’m we look what the depression. period, crisis people predicting the

projects projects you at at that a of kind And home, were want If garden did the and painting doing a it’s category. I people kind think projects. look they very sticky of

a customers than lot have we more had We before.

doing, think stuff. at people what look it’s responsible. this not am can. extent, I think view, the I And everything is where people great. it. are But of point they’re like housing you they understand I to I meaning commodities, market from are, I sensitive seeing some it’s buy think – the we’re if that pricing don’t some like, the up because is they And why every to way fact day our that, do my going

that, for I not to think prices think, And responsible don’t think do how go But could what I immune impacted. Do demand completely bad double America. we know I we’re anything. digits. We’re meaning, I trying and going price. what’s be if to be up it’s change I think from probably

is other an I I’ll less that’s think what people, can ask I think than else but think? yes. you say. you I not I’m And sure I probably, mean, do think answer you answer. what the honest

pretty obviously. It’s it much. the of handling seeing strong categories, so some things, lot well and probably consumers price we’re increases and At not pretty a some others

category demand would like a do better in So lot your than is I pretty I think would. and historically seems inelastic. you your It

So volumes I fairly would negligible. would think the impact be on

is XX% got what we I last In – happening it lot into with Yes. our what really retail which think is The up was remember of this. double-digit, time don’t promotion, would of that I a Today, only is about year talked was promotion okay. sort promotion. zero of think see levels it, I got we I on you and to Mike year kind this the saw. thing you of spent and say pricing of to probably that consumer that because we

Mike in it about was think the of promotional. my guess, talk soils of particularly way stay I about it’s it we COVID, We didn’t that which of and back and sort went kind is, it that half best to that. during think very mulch,

was are is pricing that point a at that basically we so you a X-ish is last factors, the a can that what And paid nothing lot the people like lot tolerant look more else had some what had down I I and because like complicating looks think probably entire I year across there’s to I the of XX% they something actually to they of going year, of, happened home were muted, But line. the very or do. don’t the this year. know, consumer, get consumers to think than know math did in like but So they before

guys. Okay. Got it. Thank you

Carter now question next from Stifel. go will from Andrew take We Please our ahead.

year to same sales wanted it’s margin all of XXX business Good Xx trailing the original XX the XX%, Hey, highlighted. thanks. over given morning. I about profile your time, kind you expectations, ask Hawthorne of basis last the points investments months, and

about your could expansion grading expectations is, points lean but years sales go talked basis laid for Thanks. the a earnings subsequent business on the guess margin beyond question you’ve I that of out. kind growth, XXX you in perhaps So power, you’ve of

take you’ll Cory, this.

that. I’ll Yes. take

earnings XXX conscious by effort makes, kind rates points Hawthorne that a you basis As of increase we’ve the at look to made year. that a business

we’ve growth the And with investment. wanted wanted We balance XXX could to we into to So basis that category. business we stayed put have that in points. at the the

think off can it be perspective, from as in at trade that you business growth. going a would rate higher I a look margin

of different models. lot competitors different a have space, the competitors lot with We pricing a of in

we regular view we the putting rate on to get against to So pace. for a But look XX%. continue to we’re the Certainly, long-term at quarters want increase. short-term, to multiple that the are Hawthorne with is that we business. that want had up that up growth to we’re continue basis. We continue We’ve comfortable over that on an earnings on at to

to to allow there a We’re growth as in what our investing those ramping But distribution continue into that to out the pace two want we continue. rate is we up that in next centers of year. way, go things thought earnings

about FYXXXX. gears a year? of bit, switching a parts There’s be for $X.XX could confused we here. the little kind expecting then a headwind thinking heard just of expected correctly, expect for you’re year you’d guidance Bonnie’s, Or going about lot originally, as relief Bonnie’s kind kind $X.XX just of next moving that neutral now And Thanks. is But to year-over-year $X.XX Thanks. headwind the in you’re for FYXXXX? a of on if to any I

write what we grow. business body going when to we nothing to inventory inventory of balancing If business be in the go the the at is drops the business, That’s is a we’re to look is you at JV. that our said to in it the when business will of The act that bottom a that out be that business. call doesn’t bad sell, headwind growth business of think and the to want one off. to JV, underlying a underlying if XXXX we between I timing to the it’s that entered entered that for us the just timing into XXXX, because do headwind QX push we grow what build But you It’s you guy into that difference we that, due we a as to to and as it the expecting script us. is want my sales the line with if have,

We perspective, So have little to make we to a to spot that end eliminate. willing don’t have to we measured in have growth year up need if to an volume the sure be that that bit issues build measured growth from inventory body. and inventory need of the right we achieve to we in give the

we’re we see want plan to executing. then have we planning if Bonnie, We So increase in earnings. some and just we sure that can appropriately make appropriately the

of sort you of a cover, I year optimistic. prepared a last optimistic. the And We’ve and want I to We to little of year. say I think into bit hard of to think that capacity to product, go we lot was Retailers be who sort been knew product, of full have sort business. back the and sort super the investing Yes. of what to give for COVID year building need push COVID build out behind of I super money pretty going coming were them were and Scotts including for of live think happen.

well taken – We That’s the if production. that there not If I up. we weather some to When and pretty more of did all were back picked capacity Mike. Bonnie, normal be, at sort picked really we’re and to where we hit, growth eat customers want on is were I like and you even we of XX% you growth. if before say, But think important if balanced at and – most, hang is it that think make of calling up sensitive of COVID, to and probably look we a sort more it’s the an had have do look worth you point what COVID are. volume capacity that we were need and think inventory we’ve cost and I a decades they’re people been think tight to earnings said, will we of want onto where to put what rates build flex come we kind in, of of doing. we if encourage they And the is the we than that inventory, this we hadn’t I would I here uncomfortable think and we look

of year, of error do So the of and the we into benefit next not that. does that make what’s if sort going business –

things on Two growth. there, bet we a XX% one,

every $XX wives, of we what investments top because around trend you unit made XX the we is previous made just and made. were it of year, about then we sold probably look on XX%. year, million we we at So historically around Last

and a probably you little So little made on. $XX going bit the got the bit not and so. investments, and And million hitting business or could starved the for at we’re to have shrinking another a business XX be volume what $XX million smarter a that’s

And I bet on lean push. But on and So it’s we it. business. being in bit on smarter were the think apologize I think a for how don’t a we hard great aggressive I little

of some have us that in So it’d the experience like be bread for food. bit like business had little a –

we I were activity. think our a on little bullish

And about we’ll to business, that needs consumer as work and that continue as lot on adjustment. business a shrink So think far we’re and we’ll so. the and what retail that learning make I

that and I But on wrong. something I more out dates have I we to think a retrospect, need is think little out, saying Mike be of that’s inventory just when should aggression COVID in I numbers have we’re some a positive, And based think be view is, careful. probably what out what was because of of think hand. a coming net saying coming bit on build don’t is you to was what’s of just extent there a we

benefit running I of business that we do million call going said, We and are the $XX like apologize not again. to to of at $XX Mike from think, that. not sort I won’t would for that but say I’m million do

I mean, beating all actually We that XX%. we I were would do you in the March, again. tell

business. how week so even So Consumer this is this than week, one on get – really by it is our more much stay U.S. you

Thanks. I’ll on. it pass

of go Bank We’ll William Reuter next now take our ahead. Please from America. from question

a got one allocation. I’ve quick morning. Good capital on just

you questions still if you I You guess in I there’s potential the remains versus that all of kind and returning a cash M&A there, there? X.X scale mentioned the or know target maybe total size M&A. shareholders of proceeds, context thinking of size the mentioned of this. anything a sorry. leverage bunch deal, of what type bond I what of guess, in terms are use then of And to

it’s think of M&A. a don’t choice I Yes.

it was a think that I friendly. we always we I have think dividend special shareholder led

our bias which for plus we’ve account. think I of been is the years about share times has a reduced last talking lot that, probably the five been

It I at approach. it special out. a over that seems prices the we’ll think we year, and saw reasonable like basically said last we the just

we think that’s I prices, as choice. the would we’ve as purchase. is that, at these And through do shareholder made share friendly that decision far that

– we it’s side, M&A the On very environment. a rich

I Board our would I do I advisors think We good and think it still a be least next believe, bet. say and and reasonable could does, if I in, us. that the lock notionally, range that that rates believe, decade, would four, Cory is at for look the for target you a X.X call

do we’ve don’t I to know. made So a that. decision

other I think much we’re bottom follow of it’s I opportunities would of what in line evaluating We to sort a say talked to business, on it an time. even core extremely the think moment. I that there’s related that’s I pretty that with is, a think call we’ve if a sort busy of the sort the yes, that exciting opportunity compare But at adjacencies future to I Hawthorne, people very I that about interest initiatives spoke I of leverage Hawthorne, right rates it, It’s sort holds. – we are of sort words on wouldn’t to don’t – it opportunities. of scary about the the time in in we’re you comfortable past. and I lot now, think the more on think think think

view out money friendly, to the is then price pretty where send that’s of think this back at we’d And regard door. rather much it. of buy we shareholder to that kind the in than our at. I we’re shares choice would That’s

we cover didn’t one million. about looking with at only $XXX size, the The we’re Yes.

Perfect. Thank That’s need. I you. all

Cleveland our from question go take Bossard Eric Research. last ahead. Please now We’ll from

Good morning.

Eric. Hey

your bit, high, this own balance inventories retail little characterize inventory on point? sheet all a to notably retail inventories notably thoughts this inventories your at out all, I’d I about of and think on you commented but at your are them first high do a own things, love your Two how own of you coming on expand quarter. and

I supply Well, have as number one. people about to want them think

say, would a there shortage And on so I resin. is

We I out. don’t to want out. don’t be think be retailers want to

are little that those support a be on would there’s that actually inventory is business. consumers So to say bit going that retail to also to higher of holding that. I we

the then way thing behind and were third is So year. we last

that up. So catching also part is of

say so at on I retailer up. was said, we in and basically the kept certain and one wouldn’t – caught event have a that they fully you’re Monday. up just And that few I even categories And of

and a us were. on us be would harder I gave they So than probably they actually compliment

think the when That’s there at they’re concern getting to you look sync out I stores holistically the So that, the in in there’s keeping not enough at global that issue. Board the and about I across look it supply continual when supply. inventory and

Yes.

– not the winter. I’m through So and I’m sure plan Mike’s not is, really what exactly build fall

that. probably We’re like

don’t than of that is view bad unit to I was what businesses as out. volume say, the Mike’s said operating turning think a I plan X%. X% thing if you higher we

Right.

So a to be nothing higher was to there, plan. Mike ashamed building think I of

look here. his our kind don’t retail embedded in And to think of going I is So inventories, what like. build numbers I know

we but in are I the think of want finance I see and particularly higher might is planners than inventory the we a kind that concern was levels retail to them them, thing say more talked retailers, of being think we the I at stock. more to a paranoia out more out – look the the more not there, is the there I the Eric, environment

more up being just for COVID a how sort just next and to retail concerned list. they’re because are down not say, of – under there’s any on was there’s brains look, inventories it’s the the you. go much I’m I with of – people’s to the the courtesy not to Tell lot and retailers, going me we’re the though side not suppliers higher, outages not when So – have as This burned pressure a is from into when shortages. the have ready call is. And price of and inventory season, their want. I’m just even year this is you of mean you part hedge ability doing what

down and be don’t want pretty will pay you you. this there to no moving crappy. product environment what list the If the like. price, is I’m That’s just It’s for then

market you no. I saying want it, where in yes people So how a the much ability hedge just got or to are

levels. environment, of winging sort of inventory We’re us that of buying kind lot in a not hearing you’re including about people,

wants think just this through everybody period. get I to

There’s people that your actually in talk to you about capacity. pre-buy

Retailers.

Retailers.

they’re that environment the in. that’s So

there And and tie so until it get now, right I retailers a out little commodities, and and bit unknown the – world us. supply for of fixed, global really chains kind it’s so would a with for

to in balance stay in and and trying out And so restores. keep to and supply we’re stock keep the that

fad too feeling your now, you are inventory? But right

actually conversation on that him a there… little after you as was with No, I this retailers to it the bit week, know, nervous so with Monday,

side but you plans appetite June right of lot this, lot related talked where are up the and adding So of is capacity? expectations of where with us to there’s of the next you good, terms for in business the a in year, consumer obviously adding for inventory, capacity growth plan in now, it And your business just the about quite on you consumer in and capacity. a going stepping are remind CapEx adding an what

fertilizer. then capacity. and media at liquids our we’re adding, on looking growing we’re And We’re capacity

more our would be but that spontaneous, So and models more can are and you, don’t raw we inventories leaning materials compete sure tell have, stag have to we caps I of the side on making I convert.

actual had on not did manufacturing outages from I our that capacity. components having I So the from side more from

we’re that balance a that’s going So through…

think growth were, our But not learned say I of say Eric, and that lessons to for footprint. I disproved, out I’d X% pretty of that is kind they’re would COVID optimal manufacturing look, X% coming we which for our

it You up to pick you XX% add year. this and then

is and saying, I think oh, because that crazy. don’t look you we’re it hunt, and not we’re dogs you at say this

capacity behavior. consumer kinds all to and build then, of like have normal We

I mid-single of is a be a so issue. Midwestern make people But people base Let’s we kind helpful. PTSD employee it. to our lose I’ll can’t average rates, This facilities just would in vaccination go capacity. is just national to don’t below vaccinated, have pretty say where growth pitch more for our of rates. honest, a lot It digit operate low-single a a And is not to say normal be should to of out. beyond any go you if back you back everything is but world

gear we’re protective back rates and reasonable again. pretty to so And infection basically

the don’t really a people have no, that put on it’s Mike I our add lot hard, do to really like of it’s and I’m it’s Where just pressure some with – – operate allocation we our I hard not crazy I and go can’t so And and we say, a so and to, the we money? a here. responsibly going that can’t operate we to And have people And do say have capital nothing, and that it’s to to we deal plants say, amount. huge capacity. would put think, so

CapEx where – I think It’s money, what has but the to think notionally is not like XXX something to Xx, I but critical from business it’s on now about absolutely before or to gigantic I XX that. we’re like it’s don’t it’s know, today. gone

more different the an easier there’s probably retailers, promotions. do normal if I you these if a [indiscernible] both it’s say, to you and back I opinion. that. promotional the consumer you would a and that halfway spend retailers think If could I just I has not went then one category take the ask plan And know. could don’t the promotional the on up characterize Okay.

it a I do deal. think how impact of consumers does in you that? like promotions. Where terms you And in XXXX? They like your participation goes that in think

in up or partnered site. Well, up it’s retail

our am that. I everybody’s think for of just and large think Mike I One, we merchandise did, said I of believer budget And everyday a some – general it. pretty much you think can’t are I people price got retailers low a our every one is, people.

So source this an major that crowd. as is center there not issue of the home big it’s as everybody. But debate on a

I right. is world think this XX/XX

go too informed view if than with think number. rate season, less to on at more the expensive had sir early than agree And wasteful, and before. when more and expensive likely inefficient, view, have miss based on think XX%. April, experience okay. my Friday was too is my misses, that’s way be too Black back retailers majority in events that rather of I is It’s We to on and continues weather we’ve that’s years last wants the the two of call to you the the absolutely it it’s Nobody and my view. and XX%, look it I this like the of the that to informed it sort are

going you’re and And early other I all, hand, This than is weather do a I to think this those This is, dependent, in with a idea in shop likely if in exciting issues? it, going created it’s year it I consumers have do you an a answer lose – by part of I not The you’re you it to weather an you the design in think year and is the true. of consumers do the at promotional soils, and On going say, were season I idea. end terrible targeted is that’s gain retailer. and it do to advance but I more share, you share. up think of on whether certain issue once that, lot want months or And and mulch that energy a to six, to. to us retailers where not a some so category the think because just say like to you’re in a day year, that by of I through the promote proven that’s part eight others. you’re think idea – that’s I’m think question

a I what think number. So XX/XX righteous I do I is think, – this

tend a be on tends to XXX% And year. certainty they There’s bring the or the to the And merchandiser unnecessary – the that buy history. into a loyal sort think into and throughout – consumers once there it’s matter. comes things to this store. is I they do was that other that the it. that to a tend store, categories, say And therefore, low know, instinctual more be to highly of that I it and think I consumers the season. I promotional respond early nature promotion probably that bizarre merchandiser, in fairer pat believes don’t does think everyday of pricing I is think best liked that I And risk consumer

so matter. I anything you, And doesn’t think but it agree I with you And a add? would but XX/XX, Mike, much targeted. more

No. this year I some weaknesses in certain some more a would targeting in the with say little there where promotion. to was it’s areas probably similar

not go So seeing back from to say retailer. any pre-COVID – I’m but I went that wouldn’t days.

of and but may localized. Black more bring – So to discounts type specific the convert only have being marketing Friday, we’re three thing. the and the what XX on if then using consumers more you seeing. That’s got you that It’s in that’s

Okay. That’s helpful perspective. you. Thank

closing to today’s the like back or remarks. turn now for I any question-and-answer conference session. concludes additional King Mr. would That to

any James a joining reminder, for kind thanks, and strategy. September as and event general update at an be business I in meantime, on to questions at November. early directly. Thanks this follow-ups from us, joining to the for be free me transit or provide call, will of I’ll in the talk Tracy, today. feel XXX-XXX-XXXX. Then everybody XX We’ll Cory Thanks, call Again, everybody. Raymond again you just

you for today’s concludes call. Thank your This participation.

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