Foot Locker (FL) 20 Mar 232022 Q4 Earnings call transcript

Welcome to Foot Locker, Inc.'s 2023 Investor Day, Lacing Up For The Future. Thank you to everyone for being with us in the room today, and thank you to everyone else for listening online.

We are incredibly excited to present to you the new strategic vision of our company.

Before we get into that, a couple of formalities.

First, our disclosure on forward-looking statements. of run quick a show. Then I'll In of through highlights you fourth a quarter moment, our results. the walk Then our and Chief to Executive Officer, Mary Dillon, you new introduce will our strategic plans. framework growth to come on details our have to through team We'll of then plan. executive that walk begin you the X:XX, about around break. a At XX-minute we'll take until XX:XX then we'll then up with We'll around resume wrap presentations and some Q&A.

fourth into Starting results. an exceptional quarter with We fourth So quarter. our it. let's get had

driven by Our down X%, comps grew X% to access of well holiday for guidance strong high-quality X.X%, ahead and demand to inventory.

mid-single assortment, originally As only Nike with to we slightly, diversify we momentum. down By expected. continue our our non-Nike mix broad-based we sales grew saw digits, much region, than better our

while EMEA in down that brand APAC Champs we experience. repositioned In markets, grew in given comps as our was investments stores, banner North America, our XX%, Foot XX% banner. core with nearly X%, and Locker key our ongoing XX% grew strength community over was and up

overall Our points, but our were the given plan. in line gross year, than higher down prior margins were with promotions basis XXX

product up above us $X.XX inventory $X.XX. for our high-quality at our positions came with XX% And guidance well for $X.XX, to non-GAAP EPS Our XXXX. in

down overall against basis environment shopping key promotions those but before. a favorable led XXX dates during December, margins the were by single By up category, with up in during from strength each quarter, particular were guidance with our XXX especially from the apparel month behind, mid-single in digits. footwear far still Again, digits, above not basis we holidays. points, the planned way, low And points of year the gross

leverage by cost basis increase the benefits points XX SG&A basis our largely comp points. XX helped inflation. of And from by us being with early drive program offset optimization occupancy our leveraged

quarter. the that's So

rest the day We the will forward. spend looking of

Officer, Dillon. And now let Executive bring Chief our me Mary so on

Locker, appreciate room We on Good Okay. here the today you the being really so so your the since the months brand which been last team, everybody. when an for X time. joined in hypotheses our spending or time or about that Thank I've Foot to morning, and In webcast. much ahead. company, exciting the we that business, confirming our my opportunity of learning have really industry, the join I is had I many our decided I partners

leaders, the So call for future, today, all our to along Up direction with Plan. excited you my which show we our Lace I'm

the talk many to let's company So and give top. today. let a assets start some at about Locker those strong me will we and has as just context Foot leverage,

an have the with And drive banners will strong growth in exciting our growth category clear And right right pathways Locker. provide we position and the for focus, with new operate category tailwinds. the capabilities, to investments we I profitable at believe and growth. also consumer We Foot insights long-term the about that that

me has unique strong let place strengths about in ecosystem. and So talk a sneaker our first. Foot the Locker

OG. Locker with the synonymous and the brand global sneaker #X are We culture. is Foot sneakers

brand awareness around We global XX% engagement, social brand culture. we're and basketball And youth XX-year authentic truly with a history have a media iconic incredible. street that's over and

alone, competitors, X at our of true followership brand XX million that's just we the Locker combined and If you look followers Foot next have engagement. Xx over

Foot knows Locker. and and up grow loves with Everybody

and We're In the are with fact, That jeopardy. just ago, you teams, clue a was And brands store We tells provide #X partnerships brand couple we on over a tremendous what's the exceptional for the are Locker who a trusted experts XX,XXX teams partner service. favorite of have industry. of we in truly wholesale brand know the lot. Foot weeks Striper a have and arbiter associates with leading ultimate

-- a first young add, about, diverse Locker job global people Foot proud is is possibilities. we career the creator for also a I true around and provide we're really people world, often and would young this tremendous something job

or in Black In XX% teams store U.S., the our are of over fact, Hispanic.

It's sneaker the here sales and a that of Europe. for category projected matter, a rate. with are And and individual about everybody that's to And lot North the the talk grow America and in let's physical high the like to a beauty. category. alone category category. billion knows growing And Now about digital of there's It's mid-single-digit engagement, $XX support it's growth of plenty expression, matter. category. large a Sneakers continued newness factors innovation is experiences and at point

casualization. mass So

all work think here hybrid that I know we is to stay.

are tell your you lives. is we not And with second tuxedo that. going or it's less so your sneakers in becoming to factor, Also, mainstream. that back dress, comfort our whether or can I performance

brands becoming performance mindset sneakers fuel are individual the more. demand statements. with the on favorite Traditional and avenue newness is a fashion sneakerhead for where becoming third, And sneaker for new and truly expression collectibility rise,

want And all them. that to variety driving the can sneaker we brands, participation of consumers choice, a and and wearing category demand is give for

sneakers larger closets. needs grow fact, wardrobe the market, a In brands of serving in are a are of and lots before. share more than still sneaker for there's becoming footwear And to ever room customer these

not Nike, and people PUMA, and just niche New newer Running X Balance adidas, brands HOKA, On are building course, sneaker wardrobe sneakerhead a Of like and collectors.

brands of shoppers and highest multiple data. it in transactions XX% majority by have frequency our the brands. of our see we multiple And our own

do psychographics next So and I'd mindset is motivation. to or dive like a little deeper demographics in what into

of the portfolio. with me start Foot Let Locker our demographics

demographics solid base today. the across to We have a category relative

the advantage. in the the purchase in the a see power. skew These customers, are with their younger diverse up are can believe is You and rapidly data expanding segments U.S. slide we consumer more and a on fastest-growing towards strategic which

win and diverse not category. the into the in with shoppers understanding in in this category, people by run. driving young the also don't putting box, don't you you consumers about about If just of a unlocking is win it's and demand demographic long But growth mindset in growth tapping

income. focused on a where is inner sneakerhead of age, the mindset sneakerhead all in the That's sneakerhead a race we're somebody be word, other in of us. why can unlocking So or any

to me will growth. we leverage let exhaustive explain those just yet banners completed to study and our provide segmentation insights differentiate pathways So and more. our new We most consumer

let within It's for There's share better a These category. motivations allow just us the be on of needs. sneaker mindset shopping true motivations and digest. of specific of can hone the into consumers highlights. shoppers their lot segments, occasions meet any to and broad consumer to a So in consumer market, me the some almost set which which for is diverse translated

The of yourself biggest Sneaker and Active Expressionist, through cool who So shopping and let Forward prioritizes they me a in the talk Sneaker sneakers and fashionable one shopping about want these. in feel shoes to trip. for Maven. often obsessed role when their in shoppers themselves a and an shoes. performance you Fashion big marketplace. might Athlete is and apparel recognize the adds their represent There's the to look segment play item segments, This that.

Quality Seekers. A on highest who the and Quality mined not Seeker are focuses Deal discrete. by fitting brands. completely priority. And focused segments practically on the is And way, Finder shopper, well well-known price these a shoes is their

by and might consumers moving one start well. segment then So another into sneaker as wardrobe their grow segment in

of runner. some moving nice my my have "Gold example, a now. shoes evidenced as the of for She's Nike has But daughters heels one So that segment my my the shoe Air size. [expletive] heels Bullet" But I'm my got today chose to Max Unfortunately, match by XX I jacket. the Fashion as now process. into Athlete in long on been Active segment a Expressionist and I, Forward closet in lot displacing

So Expressionist Fashion Forward and Athlete. Active

the PUMA, The They Forward their and may in also adidas, Foot of And the have over-index an energy Jordan, with Maven other guessed, these the that love bring Fashion portfolio carry, that we with the and Converse. they segments Expressionist. strong Sneaker our New have business And Both of experience. consideration brands you Locker have skew brands like we and with customer. diverse. category younger while and set to incredibly a they relationship Nike overindexes especially strong more in-store we Balance their love and the in captures

across customers segments, our And within other the brands offer range given we our of also that them. and banners portfolio today the attracts

pathways areas and historic areas So for our growth of Up in opportunity future. strength Plan will the create Lace our for both our

our our reach broaden leverage grow the with in at ways: of other share center expressionist culture the our Forward authority to expanding seeker we'll and wallet Fashion with X sneaker Sneaker So segments. Mavens and

with Sneaker So we'll Expressionist. start the Maven Fashion and Forward

already previous today. in and As business Expressionist we the the Mavens strong Sneaker a with slide, we Forward Fashion showed overindexed with have

life. really stores relationship bring community to this Our

full So community balance have than we stores an serve for neighborhoods of those are higher family order over stores with in sneakers, passion that's the and and the a XX% average those stores. needs value chain, located the in

of how example partners Crocs Our culture just our well. build partnership one brand as for with is we sneaker

that women sales and Crocs our children. Crocs both with with way like we're exclusive and And General to allowed and to of the XX% than connect has tie-ins create productivity sneaker that drive our higher brand to customers that brand So power pricing more before, cultures especially going are able and Mills.

concepts, our through of brand these segments. work Up new more loyalty our Plan key to today, growth Foot loyalty a even brand to to walk will our how we Locker see all and the store key from Lace as So to of together relaunch relaunch drive you actions exciting will partnerships, with

X Deal segments, Finders Quality had So are a sneakers their secondly, lives part while first different the motivation everyday so the and Active those the of than over time. Athletes, increasingly Seeker,

reach segments, portfolio. our in to already those that. current better given opportunity share we've them have And we into do So invite and started just to our broaden our

acquired are in those XX% example, HOKA On driving XX the brands acquisition over new and we of in for other U.S. customers And million like brands. of Running with So Xx consumers XXXX, women. new the

more set partnerships they new helping our these a to customers today. have customer brand well into may bring to as like So younger helping in diverse franchise them and as us expand are that

our key brand store locations income offerings, will on expression older in and of those and be Worth and Power higher -- new formats addition a Store to Store in sneakers, our new and Dallas-Fort strategy Example, key So new has best us basketball for and attracting segments. it's to a reach running focus Power a also shopper.

household higher fleet the in fleet. fact, median average of than XX% the is Worth our In store the income Dallas-Fort

wallet seeing share confidence in to So our expand a examples just plans. and customer broaden our gives these reach, wins in we're ability of great both us are our growth that which of couple early

each as we've our sneaker a So play created banners to positioning growth with this plan, segmentation category backdrop, a distinct role. a

life as demand go experiences tools improved the powerful you'll to and So today, we'll bring creation we much new these with distinctions providing combined loyalty by right each e-commerce strategic in see priorities banner a of CRM a and segment, experience. offerings for through and our set and

the Maven, Sneaker kids as retailer, reach we the after more has So on go on then broaden and And to segments. and and more the customer suburban Kids Japan kids-focused ability broaden atmos, #X more Foot reposition a culture. new while Hispanic focus serves this Foot Locker's brand's premium and continue in serving occasions. more Foot Champs active WSS believe consumers. will on distinct with focus which Japanese serve needs. Locker the a their Locker will athlete price-sensitive to focus to families to apparel sneaker we and footwear

sneaker our bringing us. So and unlock things all sneakerhead will that by our the our position inter vision in we deliver expertise together, store culture, and of teams, to in all that is passion, it sneakers authority all our of banners leveraging

life. video quick a to bring show me to this let So

[Presentation]

we're what I'd like do of the next first. to on plan, but our key walk each an to pillars overview So provide strategic through is going

about the So first all pillar culture. sneaker expanding strategic is

over space, years. been culture last So Locker the has as sneaker Foot XX committed the to a in pioneer developing

passion the more for sneaker serve leverage and sneakers provide choice that and greater have will distinction. We we occasions, to drive commitment the more

where Of with starts. our partners is brand the course, our industry strong in relationships all it

our with relationships brand them. of I've our top to to growth and joined our a partners for met leaders Locker the all largest with Foot share our I have as our company. partners priority my plans been with for fact, In top vision and begin brand And of me team the

leader in leader industry. the Of partner largest course, Nike and is -- a our brand the

I increasing holiday well day developing as we planning growth will better shared And plans one have this so joint by strategic reestablished anniversary sharing in We've the John From we areas basketball, momentum welcomed our kids of as revitalizing the key XXth to culture. year the renewed on insight Foot to sneaker fruits and data can of the aligning a customers. and begin serve commitment our I've future and their up as of with and Locker. X, team. build great Nike, Heidi partnership, that been like show deal in in to marketplace, other of XXXX And vision team and a to spent time industry and my

their revitalize for So I'd forward consumer-led like and path Heidi the ideas thank leadership towards team and to growth. partnership John and entire and a helping us

Now the there ASICS, partnerships love love, PUMA, to sneaker culture. center I forward customers to Crocs, we so our HOKA, our brands And that key are Brooks, our of UGG, the On course, look wonderful building list adidas, as of beginning with are of many today other Running, on. collaborative Vans, strengthen New position at goes or all partners and plans Balance,

So strategic Chris first Santaella, Merchandising Officer, our imperative. will Chief cover the

focus, reshape how our Tony and SVP call portfolio. Officer Aversa, powering Store banner intent will our portfolio walk we we'll with Development, through imperative Bracken, and second up of The Commercial Frank Chief our innovation. our together

major We clear our the Foot differentiation about portfolio are a of growth brands as our Kids Locker our and excited rest creating support for to as and transforming ambitions. real the Locker estate relaunch so well of Foot

The with next deepening relationships imperative customers. is our

Frank our with program loyalty new will investing capabilities last and to and omni. CRM building best-in-class critical in about of to all topic back deeper the And then specifically current create all digital, our customers. cover is relationships imperative things that reinventing our being come

channels SVP removing better after will drive offense, greater in mix, Rodgers, and describe our and enable omni between having Planning our connectivity business. Operations penetration our So and our we'll Elliott accelerate a break, new increasing of Strategic to Peter and of how a digital by Scaturro, digital friction our Chief Officer, Growth

strategic of our communities, alike. these our for will all our stakeholders, team members together, create So priorities our value all customers, our investors and

to know and we that. work is takes, do, but we're it there do what -- ready and So to

drive about focus the organization, growth. those businesses resources closing geographies profitable to and and simplifying First, will the our underperforming banners reinvest on it's that

center us getting to more our demand and changing capabilities like It that focused And targeted to time, a We allow say the to collaboration in thinking expertise, an all organization customer-led. technology enterprise finally, lenses and happen and putting stripers personalized truly things overnight. our the as sneakers. and becoming will of over our culture creating on it's leads of and Investing everything customers in do. have to that doesn't mindset the functional a we engine

and savings, Team of the will model. already our most licensed Eastbay, begun Asia where a We'll the business, Sales our to relationship our with organization to we've our begun, brands, our already We've So though. XXXX capabilities simplifying banner repositioning is platform. a with same reset execute closure technology and store year of Sidestep cost brand Footaction, begin our transitioning we global in time, optimization. the and new at while investing on and

with the and and our will in field couldn't concepts beyond, XXXX the better capabilities growth. me. sustainable drive loyalty core that focus digital prouder banner I be of So new that's and taken team

SEPHORA, And to is Marketing our Kim Chief General and joining joining restaurant from bringing newest us us recently here of prior Chief who this Athleta. leader as technology next have joining Manager our X of Adrian as retail. like she's We our Officer we've I'd mention fresh Technology Officer. who e-commerce be who mix of officially at experience most She's us joined members Monday, and Customer Officer, but Butler, that, Stores, and perspectives. And announced an today, recently and us Casey's today. a General amazing and Chief Digital the knowledge the to of Waldmann, she'll incredible better across are

for an just and stakeholders and and by wrap just grow that a and billion simplify, across me on this today. our I the we'll all I Plan time let believe and will Lace set to you in this us $XX through value truly exceed gave targets pillars aspirations, of overview invest Up strategic a create to to and up all our on EBIT margin. XX% execute walk highlighting path So section exceed over revenue

let Chief to Officer, you our through strategic imperatives. walking Now Chris up Merchandising me bring Santaella, begin our

industry, and and most culture sneaker Thanks, few a been XX force Foot I will force be All and for the everyone. next morning, last take years XX. behind consumer. The one with the expanding evolution right. the the has last years good culture and Mary, on continues has the consumer. of will the the has Locker through positive created of been behind of in changes imperative the Sneaker driving change the first Locker the how Foot you evolve driving to lot strategic

are on, longer occasions to before. sport more aspect wearing weekends. As culture every only More touched for part of Mary sneaker people. ever for evolve inclusive. much of are on No many and sneakers be than for are continues and sneakers life people They more

Deal The hunting keep XXXX. top of for Dunks. looking and The Sneaker inclusivity is in authentic on Nike for Finder and there Athlete occasion. Balance to continues consumer looking for On HOKA. base. future for great inclusivity. We from The price shopping are Panda Sneaker a Active or the looking Fashion had That performance, built of broadening value whether the consumer broadening innovation style, The Seeker mind. Forward brands sneakers pair for was for and great is comfort foundation was everyone. it's base accessibility culture Expressionist sneaker like performance a and brands something for Maven The was passion Quality is for New their looking sneakers,

our a community. brand the as has to broadening representation. more their portfolio broader a store occasions. has fleet providing brand broader striper consumers include footwear evolved satisfy from The Locker base there brand are of world portfolio to consumers global much brands our was access our and Locker Foot consumer Foot more passionate beginning, seeking through to a created

to portfolio, UGG, Vans, Under in Crocs, with Nike, few. our long-standing our added Armour, In Balance partnerships premium to brand and the name athletic addition have as Running PUMA, HOKA On years, all brands such to and been adidas, New last few a just

brands support more more their occasions. more to are seeking to consumers desire There sneakers on wear

more are to Foot these strategies focus sneakers more consumers merchandise has As wearing their Locker on for areas. evolved occasions,

footwear This satisfy lifestyle The more a adidas our Maven continue through be to The assortment will Expressionist UGG first broadening core to Superstar drive Jordan or Forward is Retro, product. our footwear premium Classic. business occasions. Fashion Sneaker Mini could and

be footwear continue the for Foot to will lifestyle sharp Premium Locker. point

performance running the on performance or Active our from could to style, the the model, to Jordan. Running occasion. from On innovation innovation Jayson Brand we be HOKA assortment addition or launch In This focused Tatum shopping sneaker will in as Athlete, their such basketball expand next upcoming

second focus The area broadening brand is portfolio. our

environment Our are multi-branded and occasion, highest both premium perspective, shopping from brands the footwear satisfying value evolving They the sneaker experience critical customers per providing consumer in our customer appetite providing year. brand a for purchase and to marketplace. crave their category X choice, multi-brand the a best

sneaker distinction. on The third focus is

to customer will basketball in Our in creating the differentiated our scarcity to in in Locker elevate loyalty, developing sneaker Locker other and creates and product reach diversifying categories. opportunities addition to global Foot customer drive exclusive broadening utilize These a concepts a our future. Foot community principles brand differentiated marketplace. continue lead portfolio. product our more marketplace exclusivity, in exclusive will addition our and to

driving and In hybrid from both increase the for to new our fit reach has sneaker versatility from footwear, a occasions The more customer, a performance driving also there addition lifestyle. to and stay with are Foot culture, our style more are along wallet Comfort created performance Locker hybrid through and increased desire existing customers. a perspective. that share desire brands pandemic, the to providing changing an expand is consumers opportunity global shopping future more and of work environment

Foot in Foot been Innovation and style performance a Sneaker journey. and perspective, delivering innovation of part both from rooted Locker's a Locker's XX-year new DNA, big performance is has deeply

accelerated have is brands Brooks on plans capitalize performance this aggressive Locker of positioned as We the HOKA, ASICS, Foot and the well development with and along with opportunity On to such product with opportunity. performance new Nike. and growth

premium broadening occasions. now business. to second increase deep The for base looked sneaker casual brands their expanded the portfolio and has our style wearing Foot they brand casual athletic footwear The Locker and is include has comfort premium as opportunity customer with many heritage brands. has

addition growth has the segment Over the her last meaningful deeper a with long-standing casual kids Crocs business UGG, our and critical Converse. than to This Vans, opportunity in and added customer X consumer. Timberland with is years, male in women's Foot connection as to business and Locker's the

through -- $XXX The Foot have under will marketplace. we of third Locker on have WSS aggressively premium reach But opportunity $XXX. under the continue the Champs, is, focus in opportunity more segment to our the the expand to we and marketplace. will

have opportunities strong in such partners, with We athletic with addition brand premium as developing Vans, and brands. relationships our to Converse our Crocs,

better Our this we WSS can opportunity. us allowed has and authentically underhanded acquisition to of understand in marketplace the play where

growth casual Performance, to all Locker our footwear meaningful $XXX, portfolio. under and authentically category allow evolve provide and Foot incremental

category In Nike partnerships. brand revitalized to opportunity, strategy. addition we is creating to will Nike partner, and we've companies is are direct-to-consumer a brand largest relationship, on committed partnership focused growth. that to and complementary continue Nike continue The both strategy to to our our develop the be the

The elevate will and integrated of culture. along in next is Hoops critical such sharp and with the The Basketball the Jayson marketplace. Locker's heritage focus as and to Tatum as sneaker icons lead partnership continued development the to passion of points, our House on our industry. is of Culture basketball generation strategy is and Devin consumer consumer strengths shared sneaker Booker rooted Foot an customer our and

Locker through and next is growth. Nike basketball, and And next globally, to kids. Similar generation generation next developing partner in Foot focus enthusiasts. with Kids Nike's of is generation aligned sneaker developing second we the of Locker long-term the Locker critical to Foot the will to sneakerheads Our Foot develop

the year. outside partnership throughout big key that we is culture model of celebration close Tuned anniversary the global of has celebrate The connection of relationship some our plans third consumer years franchise sneaker is basketball, old. XX-year Foot and have journey. XX to Locker Air later a to been culture. this sneaker position strategy the Nike's anchors and And The

develop integrated consumer the to are planning we an loyalty points, parting and short marketplace. across Beyond

to XXXX. The revitalized has alignment Locker in return Foot Nike to positioned and growth

consumers. to partnership experiences developing the growth, our unrivaled addition In for is to committed

will reset elevated have KD Air Hoops models. of X elevated experience. overall Foot the Starting and House product access We along global LeBron models, in Force LeBron 'XX, Locker with holiday will positions, Retro and with reimagining Signature

to Locker will partnership will only to continue Foot been as kids. Nike sneaker Nike. in deeply lead growth be Nike always moments. Locker from market retail leader focused the Kids Kids the XXX% and outpace the KFL Foot has on kids partner, The rooted in celebrating

the play exclusive Nike sneaker a important franchise. will As 'XX. evolves, Foot the partnership is anniversary moments of continue anniversary that celebration Air in of XXXX an holiday role. will to XX-year Tuned have global the and Locker

Foot The that, Following some XX-year along our anniversary. strategy, most partnership. concept iconic concept will celebrating in industry, elevated Locker's exclusive product an will the celebrating models on XXXX, XX-year Nike partner in the and Foot include an Locker of with go-to-market

expanding have our consumers portfolio In to more addition occasions. reach more we on on focused brand Nike, to

in continues in to Foot than brands single-digit Locker's the Locker share market in high lower mid-teen has the share Foot market be non-Nike much total. but range,

opportunity New have franchises. in elevated just few. The go-to-market adidas, and brands co-created opportunity and strategies like We mention rooted to across long-range PUMA, planning, is a growth significant Balance product

also planned strategies, collaboration announced Fenty with partner leadership journey a and elevated during for on Puma month with a later where LaMelo with PUMA our Rick we go-to-market the Ball is Rihanna last example on as multiyear Locker launch and will Morty One this year. recently NBA position collaborated All-Star Weekend. such Foot franchise,

the can to about We already are market. footwear strong very energy bring excited an Rihanna women's

Locker Balance, In HOKA. has addition plans to Foot accelerated running On brands and growth as with New PUMA, such

portfolio Crocs seen UGG. such in and is also ever. brands footwear than and growth our broader casual brand have We stronger as record And in

Foot the Locker in more consumer occasions to is well capture positioned future.

As and make we must-shop to marketplace category play an brand role distinction Locker Foot important broaden destination. scarcity and the our driving portfolio,

scarcity. current Nike our by leadership. develop XX% position, the for as franchises product of LaMelo as our we will exclusive XX% of competitive global more customer increase mix earlier to ability Air Our leadership product advantage customer. exclusive X and That I our create craves assortment. Ball exclusive have product And from PUMA mentioned and opportunities to our Tuned utilizing examples

signature will LeBron color Locker Scoot along exclusive launch Foot XXXX, Nike XX a with and Anthony with PUMA positions Edwards In with Henderson. model basketball adidas, from

X In partnered addition L.O.L. with examples. are Cinnamon of the brands PUMA on several to Signature Athlete positions, and exclusive we have Surprise! collaborations best Crocs Toast third-party

developing critical a marketplace Elevating exclusivity who is marketplace in retail. for a a that needs scarcity consumer craves differentiated differentiated in

As positioned XX% of partners Foot our and to plans. the of serve Locker's growth in Xx broaden consumers well Mary mix. expand is and and brand culture through lead our Nike more more Accelerate stated, sneaker strongest growth consumers average Nike portfolio. at are revitalize the will our our industry the aspirations diversify to plans our portfolio more brand non-Nike clear, be occasions, to continue and portfolio brand and the relationship and more sneaker XX% occasions.

the partners Bracken. point Basketball categories of turn we with to our XX%. positioned will XX I forward as next Thank will mix years. it to you, well these all to to for the elevating other opportunities with brands. Frank and exclusive to along increase aspirations and Foot move Locker all be continue against is Lastly, deliver brand exclusivity, sharp across our over

I our relationship customers harvest brand of [indiscernible]. our scale with to capability because [Indiscernible] our that great prefer of hear me you to our and to partners. value Can insights not emerging guys data from is

our In our and value to relationship of partners. turn, data our with from that the harvest scale emerging capability to great of insights is brand customers our

partners. capability relevant and function to our to insight allows our content demand build work more increasingly propositions to us loyalty customer order program banners our with led to to in value also our create refresh This ultimately, our and more for upstream more partners. brand that media to partners exclusive create be will build plans and and technology through We greater and brand of even

taken Now our important the one overlap portfolio. too banners. of of over had actions the between last the is we've simplification X much banner years we most stated, our Simply

we Footaction America, and our closed some the Foot complexity Locker adding banners the have were our banner, And diluting banner. smaller recently, operating our to and most North model In Eastbay.com banner also Lady of the profitability.

previously which In And Europe, in expect of operated our Point to Sidestep down And the Asia, model converted a banner, Group. business had QX we year, announced year. this shut then we we this to of our license the Runners by wind January owned lastly, end we've model. and the from complete down in be

the announced we today, Malaysia to just of fact, Active. our Singapore in operations business In and MAP transfer

that We fiscal end also year. our to by of complete transition this be expect QX the

New South we and in Pacific, Asia will owned in Korea. forward Moving Australia, Zealand have operated and businesses

Now position as role banners. growth of and our we a future those customer very we for connection, and purpose banners each for deliberate have

recall, Mary call In you identified the intent. that framework, Sneaker of introduced the sneaker what X major we've shopping company. majority this drive segments focus will as the that also identified occasions a X we Map. on Growth customer we consumer If We've our purchase

banners of to real lens compelling everything sneaker running Athletes site and each Maven intersection position Forward Locker do, estate specifically. we customer merchandising, that on the while of we customer omni focus serve will course, consumer, drives and selection, drive And occasions the will including at positionings product their of most our focus core and, behaviors. and their marketing These through also the great Fashion banner of Active basketball broadening The Foot more service. the buying Sneaker

fitness to Sneaker consumer, their Sports albeit and Foot to the lifestyle the destination Sports continue the assortment performance under categories, all against be apparel. in position Quality consumers Foot drive Seeker, Champs Kids which footwear to younger #X Champs to Maven and athleisure Forward Active from includes incremental footwear. the find and for the of in to both and will will its will category continue Fashion the ones, $XXX Locker parents Locker sharpen Athlete And the moving things apparel and and we also target sneakers. kids further will and and more differentiate

The and WSS a estate, view Deal very point This family. is with positioned more Finder Hispanic Seeker the Quality real is against sharper great and clearly our the to community. assortment, on by Hispanic the driven an even the of connectivity the value-driven

that key can also role inform in sneaker ideas serving new the play home Finally, banner portfolio. Japan, of concepts while rest a will our market in pioneering their of and atmos culture

deeper few go starting lead to a going a of each, Foot each the transition to on banners our strategy just Locker. for now I'm slides into brand, the with on bit

the is culture of sneaker undeniable Locker globally. Full leader

not you retail can and probate which brand in As brand. you the the of the the look see other consumer to stats brand untapped going has industry. the read strength potential them, page, even at than I'm on The any the awareness better

provides a Our of brand foundation are members us lead simply next built social sneaker and XX trusted and years. their to for the is last as we communities, XX unrivaled. culture for stripers which great our health, the over local years, engagement advisers That

by Our ambition is for the global delivering Foot XXXX. sales of billion Locker grow mid-single-digit CAGR, a to $X brand over at

the in that accomplish most stripers on fleet we'll global will platform; our the third, the broaden next, goal key new retail double refreshed with unleash our authentic we'll we and we'll intentionally a clear experts our will brand assortment store as lastly, sneaker with X down We world. First, and power strategies: introduce partners; concepts; of brand

take to So talk a these strategies. about let each of me minute

to leader than As new introduce we It's campaign is before the the their Forward want, Athlete, ever and sneaker of all this later invite we very the best consumers of the sneaker consumers to brand sneakers a more unleash that From platform the excited culture, year. to The in it's way Maven the global the participate sneakerhead. to Fashion Sneaker and clear. platform are Active objective very will to of inner culture. if

come Locker through the life see brand stripers Foot iconic you will and Upon our our launch, to brand equities. unmistakable

we've sneakers our media celebrate a core plans women decade, including last holiday campaign anniversary as a wider as We'll of our men year, part more map featured that our the audience got at the this have will more You ever XXXX will we engage and launch into first than before. And brief. and brand. to brands than see over us that a will enable road extends great XXth and

brand did key we walking through overall commemorative for full the of our moment. more this a And as to of than moment, partners Chris make job said Inc. a have support Foot, truly great commercial but all Chris just broadening a the strategies earlier,

exclusive culture of the and Locker and and For athletes, to world. the stories in best we'll basketball diversify dimensionalize new through concepts banner, signature Full classics offering continue the basketball

to XXXX. alluded market, in by very brands to Jordan position be Mary by and of leadership to the that they're grow to our how this will House the innovation Hoops. and we're a earlier, particularly bringing excited plan business and our We basketball Chris multibillion-dollar And Nike of as and exclusive what holiday, fuel

and that, community digital in Next expanded through will lifestyle reignite category we to the runners to activations. and assortments commitment running serving our

retail and brand count On of the X examples assortment great HOKA of Running and thriving in partners Locker Foot environment. door newer are The

continue further diversification in connect will participate our with Locker of assortment sneaker consumers which footwear, build culture. our seasonal want female casual more efforts helps and and Foot us who sneaker also to Finally, to supports brand

think with clear consumer. of as Hey brands our UGG, like a Foot Timberland, brands Locker role sneaker Crocs that culture Dude So have and in

best can, off Now world-class experience kicked that Future our also the we've our to Store the we give project. of assortment,

a to powered deliver Locker of experience leadership globally life scalable all that things to striper brings our is objective Foot Our sneakers. technology and

shoppers design retail to The front seamless optimize finally, a environment through back-of-house core and following: merchandising exceptional our stripers also spaces access the sneaker all more store variety; sneaker expanded access demonstrated will are and kids a women's digitally crisp choice assortments men's maximizing productivity. tenets of of can our be who our storytelling; brand of including and experience, across with entire while selection, connected deliberate sales leadership we choices productivity this so operational that fleet; omni-channel can house inventory our inclusive and in provide and clear dedicated that experience

in those the Our next in in of will and Italy pilots inform XXXX, City New concept rollout and in a the planned other U.K., of beginning pilot store QX here open will pilots broader store York year with first XXXX.

Now proud of expertise continue will status Plainly invest stripers. industry. the to we differentiator in last and as key be of stated, couldn't And Foot our iconic and touch value their stripers brand's part and the we I on are backbone company, topic of our want our more for sneaker proposition. a is to Locker our leverage our their

which will Up our down training, to stripers. on Lace leveraging of all We double is available our product app,

inventory handheld members. that entire stripers to We acknowledge system unlock and better continue serve across FLX will us the technology and also systems equip POS integrated our help with and

to it's campaigns. ambassadors our social present media coming for communities and be in role And we continue they will brand our also serve great that the brand, play starring in and a

So our global plan that's Foot for Locker.

to like I'd Locker turn banner. Kids Now Foot our to

value the range retailer asset in banner and that full a is kids-focused in. marketplace only the proposition continue truly a a KFL As sneaker brands, will unique invest and of to with we

As this slide favorite sneakers. illustrates, for KFL shop the to is customers kids by place far for

leader is that brand, we those favorite said XX competitor next Locker more their Locker Almost focused retailer. we points sales. surveyed product highest others the are when market closest you Xx end Kids by our the in most nearly are with share over the were XX% who than also positioning of Foot differentiated the Kids marketplace category. the low include the on both And KFL premium Foot and versus of in

sneakers as the Locker is brand kids, so leader in the Foot like leading with adult the space clear much for So kids.

portfolio a its has larger strategic growth significant also long-term and importantly, value And our to our beyond as business, strategies. value KFL direct

KFL valuable who more see can from XX% than data, As value those our through banners. are acquired through lifetime you approximately other are customers acquired

Locker value that half is the Foot Kids by portfolio. other nearly lifetime the Additionally, of from in value captured customers, banners

as business as and grade for parents them Foot well. where Locker a as the for become school-age customers teens into KFL were strong to able shop through pipeline words, adult our themselves other are at sizes will kids banner and acquired of adult-based oftentimes In a Locker banners Foot graduate

provides our and as a it acquisition KFL only good not term, the in to also compelling recruitment portfolio. having is So short vehicle customer business long-term benefits

us clear in room category, the on we kids gives KFL the page the there's leader as are of what still confidence that for further here. plenty presented grow while to And

of Our of that aren't brand strong, KFL XX%, that still XX%, awareness first demonstrating destination. sneaker still thinking is below their who of as we while have Foot Locker's consumers

who Next potential and a lack physical consumers surveying demand as the at did XX at planning in modeled not top to of our them to them when purchase. KFL looked team don't asking the And shop potential that, market finally, barrier why sales they the cited our alone, XX% double our there, in KFL markets. markets top when existing of to shop availability those KFL we

So opportunity for demand KFL there the and more banner. is more clearly,

deliver next X Our banner CAGR next single-digit the $X to high So path then to making a the low years. how do we KFL take KFL a level? to to us billion over requires double-digit

the years, is continue compelling will last very This L.O.L. successfully done collaboration. something of also marketplace to to content. the including couple merchants a kids-first drive like KFL ideas building in the assortments Our take General Crocs and the they've Surprise! with approach and most Mills over PUMA exclusive

year sales, of be plans. accelerate footage through delivering big Play grow our those To will is results, House part KFL square will single of help net a XXXX. high new per our which And great digits X-wall concept,

to has our in winning this to year. we a of acquire is program in the loyalty and that tested back-to-school last inclusion Lastly, acquisition households, continue shown and combination digital team KFL and something our retain invest more

a can of banner. grow KFL continue to is our we confidence high there level So that

Sports. The Champs next banner I'll cover is

in why understand Champs look sporting of billion-plus America. to when the decade, been brand, at it's over has you very this stats a For the page. retailers. us North for awareness a Champs a compared other on There's easy goods banner Sports particularly $X strong to And when consumer

that in Champs wellness their populations The the strongest concentrations with also of high those banner spending and consumers fitness the and most, against is markets who matter high needs. are

in engaged footprint consumer in media the Finally, highly marketplace. digital with the is an impressive social Champs

strong in Champs destination As reset, future. #X Foot see mall opportunity great Locker. to Champs sharper been be lifestyle in sneakers, to has the the our banner a an sport banner But with a the we Sports with next and for even

the Maven and and and Locker there's that a Fashion Kids lead with Sneaker can serve Forward, Champs portfolio. segment Foot our As consumer the within large Foot Locker engaged highly

a widening broader school consumers with from teen of Athlete. athlete segment high starts the the their It current Active focus that and we call to

experiences. shopping elevated As authentic in warned they inspired seek what's a are highly who the best the game these and by segment, consumers are to by they're connected sport,

makes and the along their The Fashion Next biggest Growth it Map, Active for to represents the one-stop Sneaker segment, shopping prefer they consumer that, needs. apparel with both XX% footwear of which Forward. Athlete second the

business, a $X digits X reposition the taking and it is over core category the years, strengthen this next itself position are grow an banner billion the the to in to within. so And stabilize segment can Sports that as we decisions forecasted reset Champs mid-single we To the making key business. to Champs of attractive

and expression nonpriority we XXX brand of allocations. best focused underperforming the on markets stores nor year, exiting this are are and do format the older not First, closing receive current assortments they that approximately the stores

are we there the are as Champs Texas, Florida, connectivity demographics And and Champs head-to-toe then And markets strength. historical apparel, favorable shopping in demand area. where has are driving prioritizing also for consumers and performance Georgia the their and for very lead for geographic our we consumer more using of Tri-State specifically forward, key X Moving the athleisure California, states needs. and banner

moving use stronger serve to consumer occasions America and portfolio extend what ability further of Champs our totality banner In incremental summary, North even footprint forward. our to our makes the is

core In WSS, then grown private is company. Foot its time which conviction not a did our in next billion-dollar was consumer since we've Quality on consumer and positioned Locker only a segments, October is WSS in differentiated highly Inc. X previously serve. well Seeker not Deal business that directly the segments the Foot, in of Now for WSS the Finder acquired the and incredibly XXXX, the we focus but that

Now and years. well and positioned said, very banner in nearly complementary to portfolio that's WSS the and entirely marketplace, and existing I it's in as the banner our in a for growth coming portfolio is our incremental unique

per in XXX% over communities #X fully a the special with is bilingual shopping a It a concept, events hosting year. offering that it footwear to the Hispanic-focused off-mall athletic and serves. connection is XXX It community experience retailer

X members its a strong loyalty business. with carries with It points nearly and private sales more its accessible having well of incredibly label kids who visit. and XX% that as wants, has an well program per of that than more WSS relevant of XX% effective consumer full offering growing family million the but as spend the concept as coming at price and has XX% from more represent globally and brands women, all sales a the

that not as video play may to there the a sense what to like I'd see a banner give team for of have a to you is is chance So short store, the of all had many WSS you about.

[Presentation]

XX% to in is total million several The U.S. expected in population why like population alone, in next a All very can Hispanic the we're we the of U.S. future term. Hispanic growth ultimately the next represent you the WSS. energy right. people excited grow years, to have spending family, the the With next over over about years. on see to trends XX that, adding And with XX population demographic favorable anchor focus the XX% the of habits decade in our medium

other more to segments consumers stores power, footwear more stores tend on position that in over and we opportunity for than time. growing shop spend spending And XXX over and WSS population the see Hispanic to capture Importantly, category. we as consumer the

economics. markets X-wall into Our An the brand and of by net existing trade requires markets pay approximately fill a backed up WSS less back. X strong $X.X store investment also planned new desire generate is scale average than million in zones to to WSS million, within with store a year X operating stores take revenues nearly profit, a and $X XX% these XX% of X-wall per years ROI and opportunity

and we in Miami us see traveled is the strong unit market, new gives trajectory by a a we'll proposition, and year. newest segment Antonio. markets has coincidentally market value Dallas, With from And open white Miami, of a how space, have opening and end like profitable market successfully Houston for of strong growth stores QX in concept unique runway our this San X confidence and amount growing home tomorrow, And the is what California Phoenix, growth. market the the clear of tremendous to this economics, a

we for years. And forecast CAGR accelerate open to growth a by XXX XXXX our to to in XXXX at doors, will $X.X XX year period. end XX of X at stores be the to stores will new we that the over next and that year, beyond WSS we XX% revenues a least This by least billion, XXXX, get to

The second that brand in made gained market acquisition a atmos In we world. strong largest the was in Japan, a atmos, we in banner. position very third XXXX October sneaker of has the the

the collaborator and footwear Mavens as drops at strong world, has atmos a sought brand is highest bought profitability. the And product great by the composition a also it as digital the also is business also of for respected retail the it's any and experiences. omni-channel penetration that XX%, incredibly well across after has in banners of and delivers a double-digit Atmos profitable. We exclusive Sneaker quite and a globe

private and to size double-digit investments sneaker test atmos its the as in while is over enabled strategic use market strong ideas will which due includes well to Aesthetic. that CAGR North Streetwear at with label, to in also culture, at atmos portfolio atmos million in the store of largely to a our maintaining the delivers collabs experiences. product level it that of $XXX a new a to objective atmos Japanese the plays That low look new continue agility, and and digital that's premium Our atmos as relative growth come exclusive the from brings to highest America. Meanwhile, We'll profitability and label as a annually, pioneer high to concepts today. banner to as growth brand, and role unique grow we'll home comp single-digit Japan well strategic

sneaker to you roles total with banners over having So while consumers path $X.X architected and XXXX. how minimal a banners that of those more with we've very real billion estate portfolio serve distinct our by and each to our overlap choice, retail banner takes of through consumers, revenue more for

our you store estate Senior to and take plans, Aversa, like So more on Store our Development. Tony through to Vice of President I'd real detail even introduce

good right. Thank everybody. and you, morning, Frank, All

powering the So as of Frank our noted, is transforming I'll part up be taking estate. second our which you through portfolio, real

international while a optimize our bigger assortment; and focus model. stores; third, engaging second, strategies: our broader portfolio on licensed with European we'll markets The way with is portfolio offer with this underperforming we'll product to and also be a we'll rationalizing be we do experiences scaling First, strengthening Asia X and new more optimizing key will key footprints off-mall, transitioning risk to concepts

uniqueness We'll concepts. new and scaling reach with marketplace. to new formats our expand start let's So in deliver the

those of are our of offer communities assortments brand. and that foot XX,XXX Stores. and Foot Stores are the serve. relevant best-in-class expression first local a experiences The average to we tailored formats They Community neighborhoods square Locker Community on

addition, Great examples Stores of an the Santoni in and Philadelphia Mondawmin flavor, these in Los would Community France. international market; City, be Compton Paris, have our from market, we the in Darby Street, in Angeles newest Upper Baltimore XXth

These community, and are the communities as activations Community first-time noted our early for And and job offer expressions inspire also opportunities Stores meaningful truly in important. is of engage. much Mary which our extremely these on,

on will powerful expression will positive be a The Power our square Foot average, brand. but second and concept that Locker XX,XXX scale similar Stores, feet of

A the and high assortment. us North internationally to and expand across our to ability product streets a full-family assortment with it more centers, shopping things and malls in these America. unlocks more allows be find B broader reach, concept our to people. ability offer You'll This They

our These is Locker. in Arden as Northern a showing in with significant the broader increase New in suburban a that Dallas-Fort Worth higher Store stores California; This reach such seeing at increasingly are in larger household Foot most Fair can consumers Jersey; incomes. American Examples Northern Dream footage square have and we recently, Power market.

design hit and of Engaging our format of our Our at presentations. proven Locker feet. recruit storytelling Locker have larger next last House Kids is concept of already to kids elevated Foot and scale we This Play, Foot experiences families. generation square a as approximately a with offers parents their be X,XXX product

only overall extremely and are not but because they're achieving they're bottom these plans, Net customer excited higher line Score We by concepts, satisfaction. because top and driving Promoter

and allow to we Frank stay portfolio, and These them our stores future. as grow new formats concept stores XXX the focused up represent Currently, approximately XXXX our by on in by acquiring both XXX-plus while will new us noted. these in XXX opening also core to new Mary consumer concepts

strengthening portfolio. So next, about I'll talk our

I mall amount we our drive the demand America. lean and base, of meaningful North customers, new rationalize store formats, connect newer closing to as we in a discussed As will into stores also with underperforming

America. D of and malls we XXX and close From nearly lower-performing B across our XXX XXXX, C XXX now through approximately will including malls and stores, North A

This nearly will in also us XX% flexibility with X.X look reduce XXX stores These points sales, averaged optionality they profit We margin chain. basis and XX partners. to to the malls our years, of of of represent D than improvement in term will our in points those total less our but offering company. for also rest basis total C result the the XXX and

So to about on seen malls as we talk want think few growth last malls, for years. we about the A sales where focus we a over moment and have and B malls I

X% news more sales concept this by these X%, Now to our an Store traffic The is good and our since by traffic result up that's across into pre-shopping in creates the than Power their is us X% the increase in XXXX discovery increased for customer the due future. on evident declines. intent, nicely centers centers. Thus, is mobile increase conversion decreased device. has with This to expand but in these outpacing sets which very

and I tailoring our recently Europe, on growth going in by Lastly, banner X optimizing to focus. portfolio, optimizing on that announced Locker region. ways: we're Foot Sidestep our In focus different to footprint; touch we the of and that First, will second, our our to international shutdown continue do and quickly

key market will being We spend in with opportunities our capital key countries. in of spent X/X Europe against

focus be Singapore closures Larger and we will Kong morning, the our own further stores also EMEA footprints Pacific with regions Community in stores across along and of Macau, In markets will announced and expansion Asia and the to also grow partnerships MAP Fox us Active. and and this with regions. partnership licensed Asia Groups, in Malaysia and converting Hong the region. other the a strong This, we're our in the Power Alshaya model allow the our a with to in

together So this all quickly, you. let me tie back for

over We're brands by power footage But our XX.X and with a feet up wider to XX% going transforming to to we square down of store expressions experiential estate. by more product XXXX will open our optimize We square through our do stores. XX% X,XXX up we approximately larger, as it will counts portfolio, our we'll our million increase real assortment.

formats New will XXX over represent square footage. surpass locations XX% of our and

key of House our of Foot Locker then off-mall with will over Locker stores. Community key role and will penetration play role off-mall role XXX% of growth Hispanic Power to in catering will a community, North with Kids play a a And the the America. the and Play. XX% Foot there. as growth we increase which And is WSS, the will noted, Frank play major strength to

be All more real much we, estate Up foundation Lace as stronger of a For excited The will actions lead to I us Future, these provide this and team. couldn't

relationships third our Now Frank, customers. I'll with he so hand it is about back to our talk can Thank our strategic imperative, you. deepening which

All time? Tony. All right. you me Perfect. Thanks, Can this hear right.

to marketing footprint, fleet stores we'll from across with build standpoint. we even also evolve a of customers continue we As engage our global stronger an a and digital how

strategic is our with customers. relationship deepen priority So third our to our

build relationships world-class Our by loyalty a supported with objective personalized data is by program and and customers, insights driven here and to technology.

We our doing frequency will share our with wallet of higher know customers that this well shopping yield and with a increase them.

me let area. our in So take through approach you guys this

and more mix I broaden with critical diverse marketing we the want banners audience, that again it's we connect first, to right acknowledge use reach respective our by to get that as So our a banner.

shop, core us content-driven our Fashion are social learn help helped enjoy digitally omni-channel Sneaker a world. how segmentation highly and yet, study insights great Foot Locker being in content yielded Maven of in cultural means research interact To a how no study things and they and all first completed the they on the most us how our our consumer a we on do one-size-fits-all that media exercise. by and just customers consumer, is know which That exhaustive This about the baseline consume Forward, media engaged sneakers. that, native,

functionality, insights will including, media and brand, in for Athlete, as But the more social Active content example, fit, Foot and our that for reviews with ratings to a meaningful customer critical product relationship. engages product And we are know investment the directly strategies instance, service Champs marketing Locker more those inform creation. for personalized the Sports and

in-store distort digital resources So their information experience, Champs more on against its and will try-ons product-based the having and content app. site and

And a mix, and just meaningful more customize drive of will segments. core their how with connections insights examples banners these by driven consumer to data their few are marketing our

that know uplift we opportunity massive loyalty we have Meanwhile, our to program. a

and confirms Our engaged members. current value program certainly of the demonstrates having

also factor we they benchmarks members know that frequently As shown year also more significantly per competitive But here, than us. of our of And lags with recognize more FLX loyalty nonmembers. shop that penetration by a XX% spent Xx. members we

that to means leaving table more we And big a the that profitable consumer cultivate on opportunity relationships. are

In no own fact, and than can future our how program, further banner we WSS to sales, powerful our be. program of see scalable look have to that loyalty loyalty XX% which drives

to this more the but to will and core that far customers, we FLX be to more consumers reset to be aim new we to our meaningful So user-friendly acquire. relevant importantly, year

let's how it review So change. will

the for launches there's product inherently high-heat with advantages it's future while core access. Our benefit, to current product wrong looking strategy. certainly who's driven sneakerhead, our And nothing by that get designed enough to consumer primarily and and comprehensive not to was program engage with

XXXX to to consumers identified based then in in will scaling valuable pivot will more will system and cash on and opportunity which to fundamentally points new XXXX Our redeem by against thresholds, begin test hitting purchase. more program an those points-based for reward a to set future spend design. It be customer a the be trigger

custom value It our those of benefits trips, share also and will members to personalization retention, our them obviously FLX only, only, available making product frequency buying offer access drives will service to which of and exclusive engine provide to incremental members FLX increasing the wallet. gating for and and leverage incentives perception membership. also drive

to be intent And markdown capability the our use budgets our to is this sharper even future. promotional with and in overall

into status up, FLX and them points. their digital design. more be user which new to for track simple account means will experience. for redeem them customers their integrated The new will for in In to to about a talk program easier will app and few and in for FLX transparent be sign design their easier also the minutes, our easier Peter This

integration and to provide drive teams in recognition stripers we be personalized service. member there of and can more that sign-ups Finally, store will so better with members usage, deeper our including store

also both at that more Beyond a large. and our integrated will digital program the for robust scale personalization into invest itself, marketing loyalty at programs program our capability we'll and enable loyalty

not through platform, with more data yield more analytics our will data FLX and offers, more Our effective efficient our communications and allowing use also capture consumers our to and us we consumer machine be spend the and that with make demonstrate of to ability only know us. they more customer that smart sophisticated our data program data consumer provide combined to learning, but

to the share an coming of future. envision how let in this So me near life example we

better post with this success and as a this digital In customer Foot loyalty their media would Instagram. So would our do example, engagement. banners By known they customer, HOKA and customer in on an interact identification with journey to liking and a trigger like our this sites. post, media running program, customer for our identifiable starts able say Locker and being shoe a shopping tracking of follow-up see social digital a by let's

they're Locker send personalized would Hooker notification In customer market. through Our so them decision Foot silhouette just the enable then a app. engine introducing if click-to-shop brand-new has a would direct for push This message and purchase inclined. a the click-to-ship case, the push that -- have link seamless this hit message running a a

they buy that footlocker.com. online shoe assume let's HOKA at So that

history transaction in an that, membership After profile, this the example, customer, area. the invitation Dallas In we we customer event. assume then update and and them that to let's to Metro turn with their the completing a community purchase with would would engaging lived

Sneakers for would their store the to e-mail offer along with invite for an free a members to An their customer Run with be and message Club as appreciation a store. HOKA next giveaways engagement. join sent with with at Locker might loyalty free the other be of a Our action for the personalized runner to Locker gift imagery of Foot attending Foot event closest

attending this high introduce use shop them we'd as And store to after the that footwear showed they later knowing have run, styles send would shows, on them the for and course, Of weeks to the and that then right into image last a finally, bought invite brand the new the and e-mail occasion the personalized not apparel. we them that customer and them HOKA new HOKA affinity colors a showed running before. a category, few to

points in to would enough FLX message reward. buy if of cash benefit their able had the we earn they're their award, membership to that they a membership certainly, And sneaker them accrued with the

more So like loyalty excited is in that good about modern personalization the very marketing a company. and look what becoming new would to we're our taking and capabilities, leap

MarTech Now our road loyalty for is a multiyear map in journey.

blueprint In our platform, the processes. new We'll for finalize we also fall to and engine decision and pilot data the of loyalty XXXX, learnings gain our all FLX our personalization fine-tune of program tools. will customer our

of into offers the our the agile full pilot. features, to pilot also and continuously At As XXXX, pods leveraging cases time, the learnings American that banners begin North customer on building engine to we'll from we all new use roll program across we'll personalization our move out engagements. new launch FLX and generate

to our time, working to international true and to measurement and Finally, of full-scale adopted the to XXXX, in Pacific. operationalized test leverage FLX by fully impact improve we'll deploy protocols and ways our tools learning and in expand agile platform Asia in that our of have incrementality. more get And we'll customer drive Europe that order markets machine

our medium-term our XX% new led omni all Chief new Taken This a meaningful the is very banners XX% our Officer, to in over from to generate aspiration X we sales that our longer-term our is Customer Officer, of members. It's from FLX head Technology by least to take but on. our of also a team, is a at loyalty aspiration challenge improvement members excited years, least have across sales drive program. the Chief next a at together,

up that in our part X So presentation we've taken wraps which first our pillars. strategic through you one of

along we'll long-term take we fourth our our XX-minute targets. you, Thank financial with and So share break, to a pillar, don't why final return and everyone.

[Break]

being Welcome omni back. and imperatives morning, right. strategic a share everyone. best-in-class be our to to All really retailer. Happy Good here excited X

morning. experience referenced You certainly team heard throughout customer the the the

they engage in imperative And in pathways way customers as everything And so a all to choose. this points, to time understand spent and our an and creating for is customer listening across their channels and our their us, about points organization transact we've any passion for to between. pain of lot

us So is in truly will and this differentiate that marketplace. one can feel imperative the we

we talk about little Before go let's plan, a details of bit the opportunity. into the

digital in marketplace the right penetration. First, XX%, is that it XXs much the the to market the we competitive actually trailing we're around finished broader XXXX are set our broader when We high while teens of know in double comes that. and

So there's us fill. for a to sizable gap

that broaden growth mix customers digitally most have believe a and increase to grow we and business. we're be to as the we opportunity our clear our have purchasing digital power customers continue as to more incremental serving, importantly, We that in native

stores. store complementary our a a know within few also stats. highly share of we and sales of country. rest surrounding areas miles those higher per XX% our sales than almost within XX-mile But radius spend happened are to Xx XX new almost XX% are the the of that channels other. digital each concept And that more digital person the customers per person I'll in

Tony do So Community House in even job of the halo and business. that better stores and engagement a referenced earlier the Power, Play creating digital an driving of

their social coveted journey. shopping channel post, through up our channel our before the of launch digital product or and our a using YouTube reservation app product with and Whether in means stories Third, over our customers' key customers picking of images immersive brand journey. is The articles, engaging from XX% digital component incorporate highly inspiration a that drawing videos.

from digital shipping or pick store our to conveniently aided by like with up BOPIS of using half back are all rooms almost services finally, a And sales product.

to ultimate customers together ability So more lies to our growth. the across already to shop are drive X opportunity in our But both channels. working drive channels

only Xx But customers base their more small than I'll more make relatively engaged, shoppers. Foot single Locker, up they're today, share our wallet and more committed couple than Omni-channel Inc. they more spend customer more with a more a They're X%. stats. channel share they're about portion of spending of

that. than of peers to Many Xx are our higher X

So omni tailwind creates unlocking strong customer to business. a the our

talk priorities get execute need to there. we let's So to us about the

our Up Lace morning guys customer. You the are have sensing theme probably our throughout and all been a the that Plan about company

omni to we in And mind. wanted so conversation with the journey start the customer

and seamless going tried our to we shopping on simple. they add post-purchase with during however, choose keep to We're energy experience, focus friction, And going with customer enjoyable the purchase creating and to and it We're our touch engage more to points pre-purchase, powerful integrated us. remove features ultimately experience. provide a and

some into let's So dive the of details.

digital and First, currently when to believe trailing there's stat that's the time on around where comes our set by on X.X we spent another of it amount pre-purchase. our We'll to start peer discovery. We're X.Xx with opportunity, properties.

as revenue. our and dynamic more we more and that ultimately discovery them And choice, time personalized experience up turn and drive to provide time begin into we will will broaden with believe a customer base so

some top priorities. are Here the of

predictive engaging to new improve algorithm, a and shopping brands, seamless a and improve First, more search additional and relevancy to drive create search colorways navigation navigation with experience. more and intuitive highlight

customers global content recommendations stories, to items provide and to browsing that visuals, in-depth past leverage industry product detailed going going to product better tell we're the the history by great and to we're more drive finally, find driven and of leverage around reviews products creates our our to rating And discovery help and pair. engaging Second, more behavior history, purchase brands. new perfect trending our more

confident a with with this direction We've can direction we're the strong changes feel already iterative conversion app that the in believe taking improve small and create to and perspective, site a steps tailwind to really few begun we a investments. in heading. From we purchase key

available our picture real-time the what's to The sits we customer XXXX, give get across inventory. where near in not stores, our digital the it expect real-time and how them. can and our stripers By first, have of and a channel network to it to only DCs but we synced near inventory

to customer Second, product year, and our will experience scale information access upgraded checkout strikers that new customers across ability networks with the with to fleet provide a and seamless our entire picture, this more provide handhelds we if our inventory access And relaunch not Locker of connectivity energy, and to drive through and Foot third, in digital purchases in across store going app properties. the the product to is for commerce we're one base. our store,

mobile. through XXXX, of came our traffic In XX% over

So our and customer they want is to telling engage. us where how

to drives So they it's the that experience ultimately immersive, is and products customer and on connects us the love. to our make category loyalty sure that

on by priorities the create our more of physical rollout and and options globe. fulfillment frictionless the properties experience. digital we're of our footprint expanded going accelerating introducing leverage and Finally, to to across our fulfillment to flexible post-purchase, global year combination going our options this shipping We're focus expedited a on BOPIS

our to going story here to and store tells think when that to higher order seamless about product create that a between a is than so you. and channels, return the We're more will key exactly get stat communications, your our pretty is transparency you where and digital And clear create NPS know going process significant NPS. we X.Xx we're

journey, or the brand create we for how and our experience we in So growth prioritization by customers in along and focus that significant believe parity creating customer can online drive stores organization. our the

close is to I that a been to about a by section penetration does digital and to success of up know talking has XX% to a and growth And be $X.X like? mix achieve what omni look drive digital lot this so aspiration XXXX, throughout sales. going And balance historically. throughout the best our billion journey. And is Our in But will than higher ability better this been morning. the the our mix measure it channels digital be we feel between we've

there. quarter. require to get technology we're month going get or confident that chain multiyear strategic not going It's map infrastructure there. across a our we It's us happen in supply can But X X and to to road

Officer, some And piece who Elliott confidence Operations a enablers. Rodgers, those of presenter, our big of next our that key comes Chief outline will from

Peter. Thanks,

Now and that strategies let's chain and our achieve the talk talked supply aspirations them, about enablers. about omni-channel the we've technology to

chain Let's meet improve made while customer to supply flexibility, our our expectations. We've start with enhancements chain. to ability supply network speed to and U.S. improving significantly efficiency,

We X DCs regional their the have that single-channel DCs X evolved network rapidly service markets respective from omni-channel centralized territories. in to

can X Consequently, we service of now within XX% business customers days. and our stores

allows fulfill leverage Our new to all demand, inventory experience. to enabling omni-channel network wear us across a binnywear funny locations customer

to will supply make the U.S. parity markets We our the similar advancements within we of to outside chain achieve network operate.

map Our enable will growth multiyear supply road strategies. omni-channel our chain

has by stores in investment opened customers on times Reno, drive DC shipping to to better the XX%. our the and and will Nevada an West service market recently This automated Coast. We service efficiency reduced

create to continue We our partnerships optimize enhance our we supply and To flow end-to-end to will network will extend omni-channel upgrade further near of product that our Peter mentioned. DC chain capabilities. globally while convenience inventory real-time our leveraging the visibility offerings,

underpinned strategy our speaking better to resilient, on creating yield This with and delivery inventory management a promise network. ranging and will times. automation, investments focused and visibility reliant from data aligning technology. as robotics benefits technology actual such our estimated analytics will to delivery responsive And e-commerce be all with of This many

are multiyear investment to to plan our technology We aspirations. growth omni-channel achieve committed a and broader

decade, last below benchmark. the level we the Over a industry have at invested

acceleration years. our XX% in at above create efficient, will CapEx next digitally-enabled This by X more be X% will to growth nimble or organization. increase investment but an We be of our digital only and sales increase over our and the a enabler will of not channels

Our The will will transformation of limited processes will ways agile more technology. create and not a include our platform. be improvements improvements digital modern working. They to to

We scalable growth. with customization will platforms architecture future-proof a and modern for move to heavy is from legacy that

platform a and journeys operating market. customer that and a delivers evolve agile product faster to personalized more with speed model to will capabilities We

this debt reduce will and stronger technology a with emerge our core. we Through transformation, technology

to a and technology our launched our plan capabilities. elevate have We multiyear foundation accelerate digital

to introducing Locker include in store and stores up U.K. improvements FLX extending the Shipping Express Foot the U.S. buy Canada, launching from Recent program in in pick our online,

seeing and areas, room, results. teams product win already are We across have and and launched loyalty including launch search with key encouraging experience browse, a along digital

our foundation, omni-channel with fulfillment. year-over-year across After of the we've our best-in-class tech our that well retailer. strategic a introducing seen enhancements, and NPS that We digital X-year of strengthening map transforming XX% imperative truly our being and will purchase recent to priorities road improvements believe experience key reimagining and be operating of customer we focused model achieve positioned

I tie Now our all outlook. Rob will will up bring who Higginbotham, Chief this financial Financial into Interim Officer, our

course, invest are through scholarships our in in of for community, businesses the we serve, as Thank underinvested to commitment team all you, we we charities today Elliott. continue donate communities Black-owned hold of we our and That's stakeholders. program, as The presenting meant our and investors. and, In to our funds that plans our dear. our to product well members our are you to value that's create to LEED time, invest communities will

work. the through by also team are and and multiple including We transforming empowering doing value that people empower mobility our We creating members, diversity. are our of dedicated to We in we for so people people. our do ways, promoting within, way from in our a creating culture

includes but our have optimization work, than program, which that. our Secondly, is cost more we IGNITE much

driving comes changing work nimble efficiency. building deep are we We way when more capability it to the collaboration, always-on mentality engagement through and and an and making us

our of is, there course, investors. Then

if but online, our summarize is all at skipped with this got it To to ahead EBIT a XX% financial $XX over you high Now, go I'll the over billion in slides section our goal you anyway. probably be through revenue to margins. level, vision

in time more extends this beyond out frame is XXXX that the flesh moment, that ambition. I'll our but in Now a long-term detail

is in is invest XXXX again assets there what and to capabilities that that And in sustainable core us our order drive get to our year means reset a will business, us. to growth. path simplify The be for

operations. footprint absorb X it we've certain As changes businesses, international to and our store our key we When taken comes accelerate in exit simplify, investments. to the business, optimize actions

Europe, the the converting And the the wind-down of clear. Locker XX in XX the closing banner our banner XX Sidestep First involves in Foot region. stores to is other while which benefits those of are

significant year. simplify operations, benefits. we'll line was will That's $XXX top will us a to focus in cost our have but business. it It brand million overall basis will part going us $XX it us and forward. million million reset a region, it give the losing then financial the give XX was of the XXXX, accretion margin a This our of but core on exit business, over It sharper in $XX points will dynamic

on operated We transforming and see Asia, We are for business strategic model. made owned brand mostly Asia our still lean region so can to have in tremendous into growth the the that MAP and developed we Active a our with the shifting to our that focus growth, by decision but Locker moving a from partnership their model licensed also model to mostly expertise to in more scale drive and leverage Foot markets.

losing that current stores XX means is XXX bottom that to $XX $XX mostly have million that licensing where we'll And by a revenue licensed a generate stores evolve that million profile owned line. we of but XX owned falls the what over are XXXX, of year, stores, that model the into will

be in then will invest increased We capital focus and taking that more core. our targeted to

And that increase expense annual lean about capabilities we investment million that about. over that will P&L of through average to which talked that about next the formats talked increase Our growth. the the will building the margin run tech will XX a that store million we'll by $XX use means technology that an Elliott the $XX as lean flows as into drive basis year. over rate CapEx new few point be and Tony over the we by years, into

A our our flow we will we through work. of optimization we identified we coming would merge that million through the identified opportunity cost bottom investment And margin we've Since cost from year line. through occupancy. a SG&A then, savings IGNITE to and ago, fuel that work, $XXX program that announced in million another $XXX savings

cost bottom million the savings we So to $XXX with now but falling $XXX a growth fuel to now with have strategies. our million line, $XXX still million program,

of continuing and growth down as cost but our beginning see investments What But in reset our sustainable XX%. our earnings year for traction, a start work XXXX to gain means XXXX than with we as will our us earnings that, savings that initiatives growth be more that future. the the into then continue, for is path offset growth

decline XXXX, In a expect reset to X.X% we our X.X% basis. year, on to by sales XX-week

as stores, will Asia stores, rationalization, Sidestep, count of closing Our bigger a Champs in open a X% ongoing would by X%. decline result footage by in about offset WSS, But our we growth store lesser reduction.

of closures the they sales timing the a only the productivity X% and for have differences stores, will the year. those Given to impact of

X.X% change to X.X% improving of be week XX-week comps the growth part year our by as the this the mid- banner. sales to a year decline the hold, the in with then reposition start Nike We to in Comps to absorb growth later to top that. X.X% single and low initiatives down we Champs that X.X% to in expect and year, a basis brand adds we half to year line about as to returning as high with down digits the the front of single and take will digits to the back point growth of on us which gets down extra total the before

near part EBIT in deleveraging XXXX, early the offset points. basis level decline. on the promotions add given term the the will in Our cost our X.X% than in the XXXX, program cost is by of margins and significantly the ongoing year will our XXX our down about reset, save sales more investments, From in business the work as save be some

associates. then technology investing also XXXX, frontline pickup for million and biggest our into wages we're see will $XX the in Our nearly investments

will together, X point those a result on XXX in factors basis drag margins. So

earlier basis that Tying including on for guidance the points takes full XXX deleverage part comps of year to extra another basis XXX our towards year, together, on And of X.X% point EBIT weighted Promotions will here's be meaningful all week. a of our the the down margin drag. the XXXX XX-week basis.

Within points pressure gross basis on margin XXX our XX will and decline to deleverage. EBIT by promotional margin, occupancy

investments We deleverage near basis with to term, down the the cost to the comp. by XXX expect underlying on offsetting in deleverage saves points plus SG&A XX

our minimal to decline including to And which the EPS mentioned, year, embeds $X.XX, for by extra buybacks $X.XX the as reset from will range we as $X.XX a our week, XX% of year.

year to robust Now XXXX, recent with we plan we keep our growing growth market going resume least XXXX and pace beyond expect our looking at to forward. as sales through into

its opportunity X% grow Our our about most store Locker base will we bit move a will company. average. will base above at that towards stores, up X% same store WSS The banner But described bigger opening growth target. grow footage to about rationalize that average. as grow as dynamic that a to year. but below grow will top of will Foot at that modest with pace. at will Frank a a continue line decline with actually $X billion by year that be a Champs XX% KFL will continue the and

versus given at incremental That productivity sales boxes, footage, half company the in by will roughly average. the bigger come the way, its

comp levels XXXX. XXXX. through So see from X% total and X% to in that the path significant X% at sales expansion top see we with margin X%, starting trajectory, we to expect when of with growth of by to growth a to X.X% line combined XXXX X% Combined XXXX outlook least

XX savings our Let exits see our will through, points. to me basis to Technology spend cost Sidestep begin investments where sales will you about those in continue, shine grow. impact. as a of through start have margins Asia will about the XXX really we basis walk those expect to And points modest by then drivers. our Then drag help but

basis XX mentioned. Our rationalization as another points, Tony will add store

improved Our to will top points. basis add to licensing then the XXXX. X.X% leverage will range add XX growth line another basis points to And get another stream from our revenue X% for XX us

will But that be not journey. our of the end

we to and XXXX, see Beyond the potential grow real us we mix our saves, higher XX% expenses margins, driven fulfillment us further for top estate by cost our reach line. to optimize mix, as cover optimize EBIT continuing of leverage or

plans, explicit we capital. approach growth targeted establishing our to of part and are more As a

sources to the things focused we've on digital been all focused on and new comes going the technology, growth growth will talking concepts, today. and it more of less in When our core organic we external about forward, capabilities, investing business, be

we that And activity and/or means minority will focused M&A investments. be less on

focused which XX% closing growing on when to mean it of capabilities, especially door dividend, we it to cash Now payout time. And are but average does a over terms mean we will we buying the to but entirely we're be at in stable M&A, returning that comes that target investment committed new will shareholders, doesn't on internal XX% first. to

annually starting lift EPS And in a apply buybacks, XXXX. a single-digit low more on targeting consistent to approach,

result to algorithm. total is earnings the lift low EBIT high of that to single-digit and all teens margins. that's to an XXXX with which to comp growth footage, X% X% That's reaching a XXXX on our X% growth low buybacks So a to XXs X% of X% to X% sales to And EBIT Together, growth X.X% that, adding mid-XXs. growth. to us EPS in gets average low the

through a Altogether, return road that puts us over on annual shareholder total map XXXX. for XX%

will drive And that result XX% our dividend buybacks attractive greater. TSR mid-XXs X% current or of margin X% to combined with yield sales to expansion, low growth. then EPS growth, Our of would an in

So elements let plan. summarizing key growth new by our the me of end

distinction, simplify our sustainable expand over sneaker billion will in culture our we while our $XX will growth Overall, Nike. to core revenue through and to there, our term. business, with more in sales, invest occasions, growth drive revitalizing greater long path achieve And over order of we over to to mix exclusive to the increasing in get more of choice in also XX% XX% mix our increase sales non-Nike

footage to creating footage over XX% in our portfolio among the North up underperforming format more banners, America closing off-mall expanding new XX%. distinction by and to stores, over increasing our We will power

by XX% program XXXX We loyalty and XX% by today from term. with our loyalty sales will also our and longer of deepen penetration our customers to to reimagining XX% then relationship increasing

and will targeting And for some digital or retailer, EBIT customers, financial attractive that, better on I'll term, Mary penetration with low are XX%. digital output back which algorithm. our commitment be capital mid-XXs our a growth long bring earnings comments. closing best-in-class over XX% margins And firm returns rich a to we be The for making a including of omni-channel to experience of

confidence and we deliver excited this Plan can have to attention you I that I am a company. Up been there's all can't how to know I and Thank plan, lead to digest. Okay. tell transformation our time complete I for your Lace this today. lot you the of

partnerships our actions business brands, few We strong would remind amazing with and have have, that a in say, the I and industry, we simplify we our about. are about to to need We're efficient. an more we things take make to you clear-eyed

the That ahead. Up our the possibilities begin we said, execute is about I this strategic we win. field imperatives have we sneakerhead And Lace to we get is are ready to I team and unleash you, be just and against Plan, or take in truly clear tell the these believe a And will as team as inter couldn't more everyone. excited proud this organization. to to lead after

that Locker The category truly folks for Foot the unmatched. at teams and have our customer, store the is loved

XXth are So and on XXXX the is lacing our for focused XX years growth. of we year, next up

you do and a We're and back then take come Q&A. So break so you. X-minute go. Thank to going let's much. Thank

[Break]

[Indiscernible], QA Instructions]. the VP We're of the now at Communications. portion Corporate of conversation. [Operator

Let's get started.

the for presentation great Sachs. Thanks McShane from Goldman Kate today.

from Just with loyalty, on your vendors seen had linking your some we in some wondered what competitors? programs as of we've other might be with the loyalty the of role focus

Great.

with but for broadly, loyalty, their being grow beyond for really very launch, go loyalty to to Frank wallet. tool excited of opportunity use that, broaden we to really and that I'll today. Okay. as said think is and after which the really big to start Thank we're access well, a share have reward opportunities I Thanks you, here to Kate. customers

a addition, over just personalized in to unleash going new using capabilities allow CRM, us much manage So it's and time. to more

our is, partners already insights and way are shared the about And I how today partners understand our absolutely, help think this with with to things one, brand going. some brand we data them

connect today, write to loyalty program data, on more have ability ability more is a riches, loyalty a agility. we Our our than contingent program better to more have

have mentioned partners a ways. plan program, connected with over help our towards today. it is loyalty We're drive I but X it's work with path this, to we that. we absolutely think building in I think growth we just to do Nike, And early time over that all. will brand talking too that One -- So we are about we time, profitable have but to -- a for

Jordan things TD John Brands with are about? most Mary, Nike are you from the And And your changing have conversations with gone since that Cowen. relationship? and Kernan you've joined excited how organization? how what

Yes, about at talked beginning. this I the

to develop of I With post say of was that me retailer. we've I brand to industry, the of year. from and that companies, to of at -- range I growth our company did say, we So we period as happen partnerships beauty stepping of been of go across had I'd the day that will types starting me back, revitalizing X, of a critical and a and one And and things said, relationship. welcome reset, that's time multi-branded Nike as holiday broad this the spending that lot this would a that kind back would expected

What with we different a ways. very in conversations And we've retailer marketplace what been multi-branded online. doing bring is customers to buy as wants fact, having in uniquely the constructive to that not everybody about connects

in like people to fact, come kind shopping In most multi-brand this into of situation. a category

we as well into as sneaker role culture. So a unique and there our play credibility connection

we focus could did is what on really then And that really growth. drive we areas mutually

digital. at also like retailer as of omni-channel games a our excited and all all -- unique Nike well. partners, for sneaker as that Chris and this, are brand Foot these talked probably things our I Nike culture, but say So are about kids, whether even about to strengths Locker basketball, being would raising areas that I better of are important it's us know terms is in

Nike the a of been the have that's well and to high very anything a I'm So either today. please our at do. If conversations. And plans we that there's about add? partners. context to guys But Chris want as with excited will the showed one lot forward I if level, you ask add you other want guys as brand more, going of

period Obviously, of period. COVID, innovation consumer chain. about the through there Coming of just impaired supply through product uncertainty was somewhat lot a was that

the to point, what strategic season-to-season and continuity ecosystem and the open allocation the entire Now supply by conversation. and all where path It's road a then like. And looks clarity, clear having say of that conversations. we Mary's being have, driven transparent, it's there's consumer but consumer not strategies, long-term I will a or complementary, chain to

It's consumers. is short about around Nike mutually as access to sneaker ability you create our by valued X the brand points, benefit do the well just our and scale culture, the She and of who outlined kids partners. and things position other to authenticity our fleet, love our as how for consumers culture sneaker authenticate

you e-commerce is little Merrill the that into brands long-term of X% and driving exclusives about bit talk from athletic dig and a think a DTC wanted about Bank bit. of to year, to can X% Hutchinson how target Lynch. of America approach? a Lorraine more I we're growth you their Understanding the what this a lot reset getting a square to from same-store sales interest have hearing with then

Yes.

Foot and because both. online. this, that people buying think you one that a on there's buying things few direct-to-consumer like one mind, there. this from in retailers level for There's for categories are multiple that guys multi-branded we people for So then is role very a and absolutely just most if very -- direct nobody's it's have. only and are role can high clear a needs start the Rob, role people But And and I'll of few I don't consumer sneakers you there's And is brand in see there's Locker.

at they're categories. true And your for people those in is we category, and combination and to brands of can most to they're more try browse in-store online, the and having engaged ways in and participate because create requires more today, multiple that more this for shoppers about, the learn you there's that both At right? most. and of best spending as demonstrate Again, sorts all look this opportunities consumer

really look So as they our stores, and knowledgeable. to as well ability people into insights love that come stripers when our are get browse who from

DTC important. So mean that that isn't doesn't also for brands

both they I'll unique that's, go a as that, here. we are is play say want in growth relates plans, it our let it I from think What think, I would I important. we ecosystem. the you Rob, to take And role and where

and relaunching But we know about relates brands, our the which putting about that talking we're that we all our about. capabilities, best think how that better brand resources create all drive we loyalty, where optimizing CRM to growth resources, all access, to there and around our place our add banners thinking outlined own things -- those growth right, that today, e-commerce, our we demand the tools -- we really think

category. great at tools beyond place We're in a grow can least category. have the with expecting to drive we growth we It's believe that market that. also And growth share

Yes.

our our true that be on about to from when rather we penetration to our that we dollars shifting see not about sales the e-com -- conversion is information our add going to incremental in store were rate below presented, clear, digital back that's the from e-commerce, reason Just some rate. very And channel, talk to XX% one X.Xx dollars. above of saying going peers conversion Peter X.Xx as that confident we're that XX%,

don't don't through So loss that know to we think table way our and certainly channels. And we're our we the their on leaving stores. see those making transactions money digital

but that incremental cannot only dollars. gap, actually close So that conversion we sales if that we're through confident we hit can target really penetration that do

just going? is about to it going reset, then you it's you been it's to where be of forward? the where that has going do repositioning? Champs. little terms Jay the you for banner when My bit maybe stood UBS. elaborate start, versus stores question on in see what from where see And Champs going Sole Talk eventually Can a on just

Great. Frank, take want that? you to

Yes.

I'd So mall bit et a sort retailer, a lifestyle of Through more the roller sporting of in business, we cetera. that tennis, of the actually goods culture business. blades, like first grew bigger in a gravitated of 'XXs and little but assortment and towards, goods, hard some footings rackets, Champs say, XXXX, here. sneaker history on shift apparel it became was the a the stringing part

Locker at some can't Active pivot. to look That's about honestly, But Fashion Fashion Athlete. that the Maven you its say not performance when and of of Sneaker Champs apparel Now into and to Forward route in heritage and a and its with we being we the footwear of both put the where Forward, to accessories, Foot clear think after of what shop grounded back really, assortment then call that kind Champs. positioning want going and going the the assortment that's is athleisure, the

point showing be having product going to also important, critical. on different than and talked look our experience, will service and update and store fit, how performance photography, to model the about be be at model, detail we video Foot product the of reviews, So apps sport is the of apparel functionality the digital really more will ratings sites perhaps Locker. even I some on demonstrate and

So in bit and that's a new a it's In the heritage difference place back to some future of the not it's for is ways, a began. where really its Champs. terms of DNA

on is exclusives. question My Barclays. Adrienne, the

I So the of want Tier themselves, to or yourself? number, exclusives number quite Foot exclusives as know to $X billion right? as then today, X kind Locker they the partners Nike's literally is dollar maybe across Nike the well And from they are are

then And billion stays $X probably it's there. it

of more what becomes percentage So that exclusive? of dollar kind amount

into And adidas? a again, you in how bit then can about the exclusives. Where talk with exclusive, are the that do play within partner? the YEEZY? And And next little they they year

I'd right. your in goes. really to who's like our product expert know direct to all X I Adrienne. Is that that questions to you, questions. Chris, answer That's begin to that Thank one? how

Sure. that. I'll take

Nike all a combination little above. of of from the a So it's perspective, bit a of

So we complete is that exclusive basketball are have levels model -- are marketplace. there is Tuned an in There ownership Air so the franchise some within elevated. our that in

top-of-the-tier So social like some of kids, partner their just very those. or status access, a so

part So it is that of as well.

we positions, lot about exclusive marketplace talking primarily and we But are exclusive within our of direct. exclusives the of share with the a all

to to it's level tough exclusivity. going be that pure have of So

when the wholesale we talk market So the exclusivity. against rest it's really of about

Basketball, it. 'XX. an about launch when of to adidas get the as baseball good continue really feel we'll example, lead. Anthony you And holiday we in with to will So Edwards him

categories. our to multiple So continue drive across exclusivity we'll pieces

exclusivity product across also There's concepts.

exclusive model. So not an is everything

a third-party L.O.L. with have may I Crocs mentioned we I the Toast collaboration. Crocs. mentioned So Surprise!.

that So unique there could to be exclusive product concepts elevated are executions that are us.

or from the So our either different that potentially of a global -- we -- look access model at in access use there's in across North globally layers ultimately layers a lot perspective things Europe. of and a to storytelling exclusivity or we Pacific give lot really through the all you are and of because best than provide in different create can that also consumer created Asia from bring America a

all looking lanes exclusivity. that So different across we're

than higher others. are brands some And

I we've XX%. So got think a benchmark of

Some brands will higher. be

brands Some lower, we're will we target pretty be as with forward. where comfortable that go is but

time new the Bob stores. big a from business? the with the on It top very be WSS a It's little more to driver line Guggenheim. spend seems you Drbul Can of

maybe bit offering business? leadership to the sort grow you the intend So color and a little like piece brand of how place, team of on of the in really that

drop what's brand And of then is the receptivity second Like on question the you a -- capability I'll just sorry, on too, -- in time ship question for the business? have stop sort the second the capability. is it that is line

Okay.

high on I the things me turn that start. is talk It's Locker two other just thrilled was joined to of about more let happy acquisition. one Foot at Frank color So us That a fine. to to questions WSS. I is Listen, at least start some is connected I'll We're level, learn give to each to this when all. were about

Hispanic really for and the have of in been the especially long think advocate growth I understanding in U.S. the mean, power segment. I an the that I consumer,

on does every WSS a companies enough I really are I think and stores really real visited well. we mean don't focusing understanding is I seeing that have in that connection. it consumer action, bilingual. experience really segment. some

true obviously, connection We I have there. of that's something for growth suggest about. And demographics there's to the a proud be with that community. opportunity a think lot really And would

the little to about? that. So -- on I it's we focus tell you a want say think that bit Do more have great

fiscal $XXX XXX top over a last in little year Look, line. million we finished stores, about at

It store-driven consumer at math predominantly can store is per volume. do the sell-through. So you the a

from than San X earlier penetration lesser Dallas, state the And a we is the year. we X.X mix. next digital sales of about into the years total biggest to we Antonio California. that started state X simultaneously the come Over XX% to our company was really Houston, expanded, that only So Texas last of went penetrate. ago, in last opened years

look of And there where then pockets. we're you is growth population they growth opening up Southern migration forecasted, Florida. where plenty currently But at Hispanic exist, if are and the population,

come seen store. we've now our So tomorrow we're hold And productivity stores opening the the Florida you east, first Southern to Texas very, literally as very we've and of confident. if will,

So pleased. we're very

level. lower is would Nike, cetera, It's a Vans, that you typically price Jordan, but assortment the all adidas, at The expect. brands Converse PUMA, et

more goes the mother It's see husband of So typically accessible price category driven dynamic. consumer. see Hispanic mom, lot we for and more home points. what's the kid in care first, by manager. shopping and a family Take or left We the that then

of come program. XX% sales from loyalty their

those loyal are an the all consumer. And and community. incredibly locations they're off-mall it's So in

arguably the to market do. then critically So selection planning the respecting important. the the shopper is and thing we thing second just experience an and up and investing back It's is authentic experience And the most site community. the providing community the of in living important

So WSS. about very feel for growth we the good trajectory

The ship. if know was Was second you add to want second anything question I don't drop question? your that on

Yes.

to I of and our started a year get some we program SKU really brand inventory better our expanded it's counts utilization reach broaden from start developing And partners. drop-ship additional the been a a standpoint, think from ago. program and to some nice our

brands So can go inventory, it continue it's of and some our XX last with that our business, been for not add we the loyalty, months. better a utilize consumer add that forward. we'll significant It's the a to something nice part do is as better good but program some partnerships to

from Straton quick Two Stanley. ones me. Alex Morgan from

kind few brands, these And down the wanted just and to down to also e-com in us to I break years? of XX% how Can non-Nike if on you The you is just that XX% first the then of understand to the Nike. moving next into through look trajectory walk profile for secondly, going margin then inventory that's can for further of us?

Yes.

So we is anniversary third then continue really I with growth earlier through XXXX. through holiday reset announced to Largely, and of in XXXX that the the level allocation And quarter. the the last through then think this the Nike. would we'll that set the year year relationship of return of lens most

shift So vendors of X.X as that, saw year. to go through we a about mix we last X-point

continue if We to but not see, in expect mix similar, the in a to XXXX. single-digit low shift

And seen been yet. XXXX, then and in honestly, presented assortments we haven't those

best settles, a our we is the buyers across for all it's have that's wants retailer, why And all we've is ability of and let vendor our us. ultimately our room. good offered from partners to the think think a is, and as ourselves to consumer about buy what consumer now of little so that culture. decide given where on go sneaker and in news the So multi-brand available, our which based what's bit segmentation it what But we'll best exciting is I

by enthused So that. we're really

touch on margin the I'll aspect.

don't about brand. brands, the margin for differences So talk we by

a favorable We margin some have less markdown said there. the past have directionally units going that of better bit in carry forward, the product that better do dynamics, of will so a

there not so it's will drag a a amount. And of meaningful but a there, really be bit

forward, of a the the opposed margin On drag because store. takes the as neutral, EBIT puts drag, incremental forward. that that in, margin a such offset margin the a is then that higher minimize there's all to leverage EBIT are with there. margin But and both neutral given it's that SG&A for we'll work it's that are those side, drag there e-comm that, with doing bit again, merch of Elliott But but fulfillment occupancy that bunch also the of merch channel costs get fact really was to all going the going and to sales,

for I mean shoppers They shops shoppers. of I shoppers. X% only really big than more see would who I retail, e-commerce are unlock again, And our one mean the Yes. the channel. that Xx spend best are add those just across like, in somebody is we us. omni-channel sit just

So for it for as as well growth unlock us. being an margin neutral, is

private you have expanding new questions. is format? need Cristina scale Fernández then from those to side. and year The How apparel why store Why merchandising it Telsey kind then In the past, develop that format about real estate what Advisory new you test the strategy? Foot on play guess, X. see, take would next the not to And does into Locker want question in of I spoken do Group. sooner? second your label two in I that to X you've years XXXX.

that. Why not like sooner? I

to Do heard label? I've think want you that private before. try I

the take Yes, private I'll one. label

we're by development. label So our very private encouraged

business couple Champs multiple Locker with Cozi So of the over also women's to perspective, brands last our at launched launched years. in we've CSG launched the banner. was for addition long-standing Locker. Foot was a from

label really become we a component label address across business, So certainly, it's from private of private footwear a our lifestyle to footwear develop or focus we broader that. will broader business in be and to label we're I we develop most going through apparel a think when whether of lot as apparel we brands payroll bigger, as really have more a of the our more perspective -- through categories, opportunity to a area. reach those opportunity private our And creates because, broader performance opportunities, opportunity, broader lot that apparel

created develop to really where focus us So help we're on really that really really the to gone. private develop We've business. about a our business label of -- outside come has experts optimistic team and in

ago a our about our plans results year were and go-forward pretty So where encouraged that. with we're

I future, And going the power of XXXX. year well. store ways, many months up Yes. informed to this this think the that is in of global continue I we've of the our say have learned in and concepts we're The by will that what Community spin and to and alignment we're Those and in retail invest time recall, next top just as synchronicity. Play. on going until for to Tony The XX is relatively House presented then new are the concepts,

also of build North Europe that format, then Western the of the presentation, not of one of that and coming our is store enough. noticed the America, was and That's as drives fixturing assortment integration which out I things across Asia, the role some technology into consistent looked to consistency a we the cost global

the on down to store of also, But course, as So allowing as experience synchronize necessary. of goals slowing adaptation really one possible, is not we're Community the best globally local store. Power and for

think chain balance I they're and shared outperforming the that of outperforming our targets. internal we

of plenty as XX to scale. upside there's in So next we continue months the

Bank. plan markdown allocation you Deutsche I your can And dig your Carbone, improve you across deeper expect wondering inventory if time? that into seek just to little inventory a efficiency to channels? over how Gabby was

Yes. here. jump in can I

call getting heard presentation, a you of think the our picture real-time really business. powerful to us out in near it but for that I idea is inventory

to So channels, right? we as side, the you our can in pretty equip some with imagine it actually stripers increases. life both nice from see metric store productivity So handhelds, we coming

to points in NPS So increase. XXX basis XXX conversion, points I basis think up in

with the it don't we is sits and web the it and in store. DCs experience, it's it's better allowing to access our productive, actually product creating So and that on it consumer have striper the and more service a the if in

online. then And side consumers one the are other that shopping of

able sitting sitting As is across we network, somewhere the they're the to inventory be in else all different that access going a or in the to product sink nodes business. our in store

it's of both visibility inventory So channels. really about creating across the consumer for

Janine Stichter from million cost to additional $XXX I about BTIG. identified. ask wanted the savings of you

from was Is broken the you or your I coming supply little could the on optimization piece down label particularly chain more that business from? coming it think if of efficiencies. that a XX% that's into was are merch there then Curious, about also chain pricing where and those the into supply was private margin where efficiencies And pricing as well? the more piece, optimization. dig and bit

do want that? take Elliott, you to

Yes. Yes.

heard business. proud I So lot it, that hear some -- come of about to when retail, but to today best people also a the customers us the about of it's most about, this we ways behind important think who in talk transformation. I is, think about costs, transformation, working. the you our of talked and from there's you closest And can the if the to are highlight I'm you things And me? talk yes, of of one we strategies about it's changing think ideas So

example. lot like a just significant we cost our direct-to-consumer be would sizes, our on as our grow optimizing impact especially from penetration, things teams, which that of has parcel digital have X and So ideas includes that come spend, box a our

that efficiency translates But which as more I learning and is effective more translates It Frank negotiations. another areas. are we spans a which translates multiple would leverage spit also a our point out to vendor to procurement effective scale like vendor global negotiations, mentioned, as things spend a to procurement organization, more -- that thing to

So benefits. it multiple has

you pricing effective leveraging mentioned, analytics be to our As more we're in strategies.

supply We efficient are you chain, this me end-to-end activities. When that the heard reference of about more customer of also also versus our activities. which notion to time stripers store operational different can more think costs on spend nonselling a time leveraging chain, number translates you supply operational on so with

we're it, overall So we but best end-to-end this just our the not we and company. individual functions, about make thinking can how think with about really for decisions the

And I'll jump progress. just in We're on optimization. making quickly, pricing margin sorry, and already

machine team learning pricing built So tools. is our

from a affinity of we'll And both that pricing, it rolled that program, have strong the have think into. our discount modeled ability we to and quantify which full benefit we And our tool, geographies linked to learn in personalized that something and certainly we've would for. significant pay and otherwise that to markdown to I us. not across offers how and means save has what to somebody So We pilot, dollars then to or channels as online out gone now banners. full drive price in-store sort manual certainly, an back automated loyalty proven

Jon Komp questions. couple financial-related from of Baird. A

in a some You comments that year. maybe you of the promotional the some Just could and little the comps first tailwinds more? later year first, first XXXX, in half about be the bit the given on talked pressure shape might half of

anything So little better? shape a you just to if more the do could year

Could long-term to helpful. to you margin just talk and EBIT get bridge what about then you how and expect expand you margin might to And gross targets long-term there? EBIT get maybe very margin the the need was

Sure.

of the we half. So shape on the by the of kind you gave year, comps

front low the digits down the down singles in that half. the single and back So in half to mid- high

to going of into so saw to that, to the back see promotional that's addition In half the that pressure part going we year some last early we're again, continue in the into early part year, the continue the of of year.

down in earnings pronounced pronounced the to And half. half, going XX% the the less back most so that is first growth in be

of So that's of shape kind the year. the

offsets a have being EBIT couple dynamics to gross bit have up margins, of of on there. a our the One bit occupancy cost channel little consider the that. On e-commerce top be XXXX. margin offsets expensive to we merch of will transformation -- in is that, the in form saves margins we little again, pressure XXXX on terms leveraging have through But A the work, of of to from fulfill. more from we the

as the be up So and well. merch would margins overall overall gross up margins will be

Evercore I in little Cheng strategy to more sneaker Warren of ISI. your just a serving want bit occasions. from dig on

the there. casual focusing expanding just performance So in where casualization have as a And lot use there? brands new selection vendors elaborate key you're a emerged. Can casualization of a pillars you office thought here? Is any the on big on part cases more your towards couple of you of been has the there highlighted on

very opportunities we've plenty this even about you for portfolios that the even there's really got of lot and then just and I'll plenty the I insights we I from share our I'm just know wallet. category going that -- sense we've say, about more the we're excited we'll go well as without help tell and there's that How common about into consumer. fact us that of capabilities in doing mean would to opportunities. us Yes. customers are And more. get broadly, the do to -- of would start that And get been a there. the more as people to already, more more category proving

continue So only talked add that. all digital, in just CRM, things to about loyalty, terms the we of e-commerce, we'll to

how do in that plan we more how is to opportunity people more appeal and entire do specifically whether as and through our broadest I around where broaden the the really Foot that it's atmos as for on we're well think working is occasions, you Locker focused separately. So WSS banner,

So the little you talk well? into as to products why that would don't occasions these fit want about bit a

Yes.

if you where heat So Maven, products. the the I by we of left chart think side more look the consumer driven launch high certainly Sneaker Fashion-Forward, at had energy-type that

of As is you And migrate to the the consumer Seeker same Active a brands, but athleisure. Quality the then center the different and Athlete, more Deal and the again, shopping. mindset performance, as lifestyle Finder,

very Deal part Finder Seekers the then willing And the Quality to it consumer. and that important to needs and sure that most it's being, what discriminating the of sort course, they're of of the for promotions. and but sensitive name, part and biggest quality, hence their pricing Sub-XXX making is looking that pay is proposition. for meets service value an of try on

we shopping and and we a comes be is marketing America, banner and consumer particularly conquer how communicate strongest the unlock here well engage North divide sure and with against that, make offense big from as multi-banner using through So I and discretely digital think That's occasions. to the mechanisms the consumers. our then store as the experience, and the that retention where have really using to portfolio, other consumer positioned thing in discrete standpoint really the

I do add new mean really is that and new constantly brand current and ones. looking be Chris his the time all landscape And relationships team with in that's build terms partners would scoured brands, and the deeper at also I our of just what

evolve. linked key And and our of the as brands, we have as our we through for couple coming over the brands important things started of a through and lot years, the to we've evolve, great pipeline. really performance we a authentically product of through in last portfolio brand something more to expand portfolio stay results we've casual to business. some given to got types, consumer us our thing seen the think And and is we but and confidence us the still as work core that's at looked really authentically really that's rest lot opportunity I that's

to the customer U.S. in Curious Citigroup. if How you And demographic market be if to banner? talk the it that's pay then sales the with -- program, and Lejuez, cash percent about that's does decision of also terms curious how on just indicative Canada, changed perspective? the over done differ a loyalty your cash about Paul pilot of could going time? of by in

Yes.

nearly play in the ways be out cash. ask out roll how U.S. Let also assessing me just test, Canada have be will start test. to all and business. U.S. this terms technology. Canada, and The also we to technology a pretty And points But It's well which replicate work. it's I cash for lot would loyalty of There's needs place and on have just things that studying and in your of a the going expectations go to to to that opine technical not to the for be behind understanding the of with market, more loyalty we to as but we're I'll impact of and to the exchange the consumer able test somebody a able it's us of helpful other them to other like that our test in set learn make we programs, up the point, consider we're able that. a confidence I some the know

a that time U.S. as role in think and a Canada about over role to the program. So technical then

the I'll tender jump mix actually. in on

from it on much trend over a of economic expansion be the but of too credit little away as towards we a there. credit of in index not don't What beyond of more cash consumers really dramatic a stretch bit trend is the bit, world the out debit to do to that. parse like seen seen have couple cash, started past rest kind and a impact bit of We terms the plus a and we honest. So through certainly little we've of years extent

partnership release want Securities. to I chance about with About ago, the adidas. Nikic the Mary, out new talk a expecting fact anymore -- with doesn't Weber year -- was you the to penetration does put How exist sales. press ask new that? a Tom think announcing chat I it partnership, with of them? tripled a had that CEO and you to adi YEEZY their affect strategy with And a have

Yes.

a is partner very adidas important brand us. for So

So meet Foot we're maybe very committed a was -- our kind situation I've we're exciting opine But of heading bit And just chatted you and him person than already -- fact, adidas. long-term to Locker. with in that like Chris, just to can soon. And our in with broader very of if are Bjorn. And partnership the things. the obviously, some you going we data where with about

our we're going. mentioned I about Anthony excited the earlier, think Edwards. adidas partnership I Yes, is where

point focused really really on of and through we've So basketball getting a view basketball and really them. young driving

We're the So that multiple product in franchises. working was X other Step on process.

right So around working We're the collaboration is globally with ideas Samba a back-to-school. a becoming shoe We've now. on big them. strong got that third-party with very plan

and where little YEEZY of of to a based it So had impacts. change comes But Certainly, continues of our move off aspiration just that. trajectory bit going the certainly, forward. when out, to growth that's We sharpen

partner But our the through together. around is that we key icons been elevated their creating partnership really we've and a They've with storytelling. in about feel great where created good adidas lanes exclusivity

work other to So we on. continue from that them piece the probably big that's

areas. got around work globally some do seeing and we've traction brand, we're other in some the So good to

the all the to like get in and And is like of working? works of where regard make your deliveries you mentioned the with is egg Poser being what takes? where that's sense you sort how little of this all how of work, Williams to does chicken ask e-commerce And for loyalty the than that you're sure to all competitors that some now whole questions change? orders some and -- some foundation and new and done, and longer Sam to things because long the you takes right of a long how I'd sort the thing like need how other a Trading. it long the the stuff, all that, for Elliott, in how digital work and CRM going

This a take I'll one. first the multiyear is So plan.

plan that threaded you of multiyear collaborative our talked the we strategies Mary an through approach. talked Certainly, so has thinking And enterprise all heard been -- about discussed today. we

things. And so there's a natural sequencing order natural -- of

a to me emerging ERP of is investment investment. heard foundation HR foundation very next with merged core an up and about multiyear the stronger certainly an a XX. in finance, includes that set You And which for is talk example technology to important across us that

scale But that, will about multiyear, FLX that the we've and threaded this be that year. program and expansion Frank the and talked across of truly the

the nice with to So against very the it's we've sequencing thought intentional there. the of that appropriate a balancing expansion going And that with and deliver. speed acceleration to we're about risk amount be balances

e-commerce I the country. A a would through good our demand serviced on very have question second part of the couple of times. Your amount central things we of highlight the recently is

Our investments Coast is fairly recent. on the

we're in in Reno, ramping East fulfillment And So Nevada. on center investment also ramping up our up our we're Pennsylvania. the Coast

more the we our of expect coast, to to times we improve. volume As will those shift on nodes delivery the

that sync customer delivery that's to times, communication working actual something but will on. with the aggressively our opportunity we're our to the be So

we to our thing, And also too. to have cake was that just add Sam, which and one eat I want it is going

-- So together do on in journey. We'll wins of digital this short-term immediate multiyear we're it working team we digital, have we fruit, results seeing already. there's have right. of agile is But low-hanging pods and and plenty a members

So build well foundation. as the the both things those as we of can some do

Well, short -- I it the eating going we're spirit and your on having focused term too, also. was to of cake the in

So up that the mentioned his tactics conversion CRM room on is presentation digital we've site through a that on driving set and focused Elliott today. win in solely

very and lifetime mentioned a consumers e-mails. value few things doing targeted around a recommendations. product with sending more Frank higher We're So them lot

We're around display to calls purchase. the action are to that adding pages things product

Mary's that a are to waiting. that of it's optimize we're we point not So digital And lot because the plan growth fruit, thing I we on know confidence can there think things the us actually the low-hanging today. in gives

good where trajectory. we're heading feel the about we really on So

Jefferies. with Tarlowe Corey

also So specifically comprehensive broadest Mary, you business is about And lot and share. one was of about strategy Locker. how the see you opportunity customer a that opportunity things segmentation think gain I that really that of the you ran the market there's you mentioned how a to talked Foot for

ask into drive about see where you that's share coming to and you see share share market the and coming from, look unfolding So I these ahead Locker gains? new you Foot as wanted to specifically market and continue who market customer that that we incrementally the how for is store

more brand. frankly, for open the of more the one one Well, of of is opportunity sneaker I Locker bring into or new wallet. culture source it's Foot the of we doing a to of customers, role which in Yes. as about think share ways is and whether Foot to a an pretty Foot it's into category, to through customers through Locker around minting Kids as more has Locker category, more this attention about actually just the we're Foot the growth. think folks relaunch up part the introducing really everything unique And aperture lot Locker become There's graduating that

engine. -- own brands the stores so way carry, crosses future, we the of the formats, and the create the the it our demand we that range And that from

like, a true that an consumer mean, retailers, wallet. of it's us in it share again, I a people any for a of will because lot be so lot direct-to-consumer, combination do daunt places, categories, more And of whether physical online-only It's retailer, almost category. of a that's consumer doesn't shop

to job play of that's everything to of talking And Our attract is wallet and to out in us. of that way today. about is and more stand plan. of That share their give included really customers our whole the kind more we're offense

little -- Evercore Saad play I could Partners. bit. If It's from devil's Omar a

at enough XX% to very retailer -- is on across different don't even? in a bullish obviously new kind XX%, how down this post you're open to category brands. that conversation, look you up still look balanced of you I taken going the be adjustment. balance a brand-dominated your super want single should more of and Have it Nike is inventory a Nike the use possible but You cases

can think so will other well we're some partner is a and clearly quest growth that say, how that Nike we're just our and period #X brands, And as over to be the do I I of today. we Nike with for and brand our just you time. Well, broaden portfolio through continue think is that growing as, great to said, balance doing time. leader and as drive

It's also banner. mix a different by

Foot sub-XX% saying, of Locker kids a going the that's because a Champs is in launch. to proportion launch have penetration. a WSS migrate what Nike may old have with to So sub-XX%. the month, the fashion Jordan, sneaker and is Nike in heart for heart higher the candidly, the

It's our decide. question gentleman's , it is ultimately, goes inherently But back things. consumer think of is this discretely And application different. that consumer who very want different different the sort I and So use the about banner to segments portfolio. will again, against of

the question strategy? quick about you more a talk [Indiscernible], the a how Can about of the sort participation of and in your it of importantly, valuation for financial role around GOAT. sort company plays

Do you that? to want

Yes. Sure.

the the a of that very of and at They've and experience, streetwear strategically themselves the and work I data, proud grow GRAIL of made market. recent in conversations Eddy secondary the senior with the to about incredible acquisition apparel how in the A GOAT. and are at efficiencies about a future to fantastic Board, active how team to and share help their marketplace. brand, business. obviously carved fantastic so investment the doing the Lu an happy team to partners operational So company always for think look their digital and position sit Eddy how on

tested point, a carved for a have come. as as and to both of we've consumer those more those conversations from market. house secondary themselves to charted opportunities this certainly, path things. and have We'll guys back synergy, partner But and in continue standpoint for at and look So to nice well drive some a the

concludes Q&A. that think I

Thank Wow, you. attention. Really appreciate Thank and is as the questions all well. your your so Yes. you much time this of again, first.