Steven Madden (SHOO) 28 Feb 242023 Q4 Earnings call transcript

Good day, and thank you for standing by. Welcome to the Steve Madden Fourth Quarter and Full Year 2023 Results Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded.I would now like to hand the conference over to your speaker today, Danielle McCoy, VP of Corporate Development and Investor Relations. Please go ahead.

Thanks, Abigail, and good morning, everyone. follow our webcast.Before and to we we that Reform remarks joining earnings year remind believe for your Act. the our and to Private statements call begin, that meaning to you be fourth statements within full quarter XXXX you questions forward-looking Thank contain answers the that of including I'd Litigation like Securities by actual such statements subject statements. expressed to results cause to are could those materially forward-looking These or that implied forward-looking from differ risks These and conference risks not at all. matters may these others, call, if disclaim that we press release update have our earnings which include, among make be SEC.We described updated issued filings the to statements in earlier with into obligation today our any forward-looking quarterly we next discussed are adjusted The on noted. today's otherwise financial call an results unless basis on Rosenfeld, GAAP to A measure call our release.Joining reconciliation turn me financial today contained over Officer.With the Officer; that, Chief and I'll Financial other Ed and directly the the in most disclosures are and Zine earnings Chairman call to on Mazouzi, Ed. Chief Executive comparable associated is Ed?

executing with with pulling spending. taking the proud control year team cautious at a conditions controlled from to acquired overall, the wholesale on and which and on fastest included several discretionary we The the revenue by diluted Danielle, last challenging delivering EPS comparable International each improvement drivers closer the quarter versus back our quarter year, in our lines. results.We the our drivers.The our both Famous combination or well year-over-year growth, the which face fourth in improvement.Looking long-term growing X and to the finish of over foundation revenue operating years morning, everyone, and with those on consistently growing to of expectations and quarter full to navigated the assortments continued how channels, review supplemented organic approach pleased revenue as consumer start for turn period QX and of consumers can of fourth when first thank grew XX% of has XXXX are the is Thanks, increased total. high in wholesale prior results on and compared XX% Steve XX% note we Madden's and the million focused been challenging the direct-to-consumer our results connections strong we part that in XXXX is in saw quarter sequential and and environment. success as throughout consumers International engagement revenue culminating both for the when XX% bottom in growth XXXX what newly in markets. market strategy XXXX. earnings I'm a momentum margin year joining rose the the long-term to difficult to Almost of driving and fourth international customers despite you both in macro good orders top will enable trend-right us product the exceeded After year business XXXX, business a $XXX tough key business the remain effective XXXX environment, back contribution through

revenue XXXX, Africa. second gains key our our accessories grow Closer footwear, new position East outside as Famous. we to look apparel. apparel to is in ahead and compared home, and venture of country.Our Almost region increased will recent to our to Middle like also excluding on be in develop our in South priority we that Looking XXXX categories and in growth or continued will seek EMEA expanding leading the on brand continuing heat in momentum be top we X% XX% and Mexico a XXXX, to joint driving focus capitalize capitalize on driver In to our our business business have Europe, exceptional share in overall as the accessories market build

handbag growth channels in was including in the Madden XX% international and highlight direct-to-consumer wholesale strong Our increasing both and markets. business both Steve domestic

be also platform will of that Madden, with to accessories, enable to our portfolio and exclusive is channel the brands footwear utilize of and a We is the X% including Girl the is the see line markets making to out compared existing retailers.Our in NYC and is reach net to Madden the international and XX% to Madden has in in pre-COVID of October with sequential outstanding evolution a women's this each Steve we its brands customers private the few value business.Our X% XXXX. and apparel. declined operating look well since and in been in continued performance we year-over-year building will in premium various apparel growth DTC growth further business, us in of also improvement in core that distribution years, from distributed business comparable strong in prior apparel in category driven a Almost channels strategy XXXX apparel revenue which has in acquisition of and been zoom plan primarily us however, it the to stores outside and department down in expertise at the Steve label up successful on tiers stores period the Almost by business nearly its development in and This Steve markets, led our this year. past well successful e-commerce And complement Almost direct-to-consumer Steve as XXXX, -- digital. so After revenue broadened focused to did focus in NYC driver the DTC Famous, in EMEA. and particular business We and XXXX success our compared DTC as price in Steve all the Girl Madden for Famous' business priority products strong NYC XX is implement Madden as launch our had brand business Famous, XXXX as XXXX.In Madden styling apparel footprint be introduce own Famous grow over Famous so nearly throughout to has in we Madden Madden mass.Beyond the Madden in integration junior third in the year. see our in DTC increased And expansion top that if we channels which XXXX XXX% quarter designer -- Famous key of far. the on primarily apparel the will licensee XXXX, by the of be handbags, to use in for contemporary through apparel driving Almost have add revenue Almost the XXXX Madden marketer momentum to top retailers. wholesale profit will primarily and [indiscernible] channels, apparel.Almost It with is for on in new on brand driving building distribution focus our under QX

City. remodels store in in We flagship key Square York including our will New in Times invest locations also in

our the a to push entered digital After greater marketing XXXX U.S. in was channel that number driver return we important of significantly the improvement as quarter usability business side, designed while refine customers investment year-over-year fourth our our challenging the revenue revenue many the to we as customers as levels. with funnel.Finally, rightsize in declines and speed, key to saw well sequential the in conversion X% in half, is while in key trend and ways, X% good and mix a inventories overall, more decline year of but was are beginning efforts drove challenging site much business drive year strategic to remains progress year, they and on up in in revenue a than inventory uniquely more we'll were our On this in is back to strong in many the cautious, XX% are a key The with growth XXXX our strengthening inventory and a improved global healthier excess in in the we of positioned significantly ago footwear initiatives. in the the year sentiment channel, QX year of so news wholesale QX.So than half, be that wholesale first the business ended orders the and continuing among reduced of enhancements QX. investing marketing this business. throughout still made

model to turn over proven the confident and quarter combination year now in we out and to that We business positioned we commitment years look in are believe and also to detail on-trend revenue initial operating share will I'll and financial outlook for for ongoing of environment full enable our and to XXXX created strong shareholders by assortments his dividends we our to And Steve drive remains team results while the come.And looking ahead, Zine us over more our us further, our product returning choppy, growth our it XXXX. repurchases.As fourth and million have to earnings demonstrated capital for review XXXX. combined sustainable brands the well $XXX provide with

the revenue good XXXX. XX.X% morning, fourth Thanks, million, and consolidated to $XXX.X quarter our compared In of was fourth the a Ed, everyone. increase quarter

prior grew year. to the revenue Excluding Almost X.X% the consolidated Famous, in same period compared

a quarter including as Our $XXX.X X.X% modest $XXX.X quarter partially by revenue increase or by an compared as footwear a X up e-commerce million, fourth $XXX.X comparable as websites Steve quarter decline Almost our revenue was million was our of retail revenue We $XXX.X was fourth of million, XX.X% ended the from of with in decrease XXXX XX handbags. label.Wholesale decline Almost in XXXX outlets excluding international strong Famous. accessories in the operated the markets.Turning quarter by million, driven offset XXXX excluding up in revenue business wholesale modest was to X.X% the the segment. business brick-and-mortar a private fourth Wholesale in apparel brick-and-mortar the X.X% company-operated stores, the XX direct-to-consumer concessions another to to to prior Madden increase In or segment, with growth year XXX licensing company and well XX.X% e-commerce. year, compared increase Famous XX.X% period in a offset in in the branded and was a

royalty in licensing quarter in income of XX.X% of quarter period the the $X.X gross XXXX. XXXX. in margin was fourth quarter the Our Consolidated to $X.X million the compared comparable million in was versus XX.X%

the increases of apparel Excluding wholesale segments. Almost gross quarter points versus XXXX margin XX expenses increase gross million, driven the of year-over-year.Wholesale was compared in X.X%. XXXX, margin gross an margin the an Direct-to-consumer in and quarter XXXX, both in were and basis XX.X% activity.In fourth by driven accessories $XXX.X XX.X%, period XXX operating million was $XXX.X to same quarter the wholesale increased fourth in of the XX% Famous, consolidated promotional points to by increase increase compared basis footwear of an in

quarter full Excluding quarter $XX.X revenue, up comparable to million per $X.XX Almost the $X.XX to million to year. to compared last ended share XX.X% briefly rate $X.XX quarter effective for per The billion was Net expenses for share X.X% compared $XX $XX.X attributable million income Famous, period Ltd. to the year XX.X% the of I'd was XXXX operating Steve the was to income like compared or $XX XXXX.Finally, of $XXX.X results. of XXXX. $X.XX Ltd. the diluted of XX, share $XXX.X or quarter ended XX.X% million Consolidated to $X.X year per diluted diluted compared revenues XX, or $X tax Madden compared the income was million revenue December X.X% or XXXX, the to fourth XXXX.Moving the the year year. billion share for Madden for to fourth in in balance touch net the for in to diluted sheet. same for the in or rose Steve on quarter period Operating or decreased per from December X% last attributable million XXXX.Now

foundation remains financial strong. Our

million and flat was the $XXX.X short-term had $XXX As cash investments cash, XX, and million, of December Inventory we year. no debt. equivalents of XXXX, prior to

quarter down Excluding was period was and fourth Almost for the the the year Famous, to CapEx X.X% million. inventory $X.X in compared $XX.X was million same XXXX.Our in

awards.At million XXXX, repurchases million the XX, of common spent XXXX, respectively, we and share. of stock over share During the of When outlook. X, company in payable $XX.X the to stock the approximately year share XXXX. per $XXX million on the will full $XXX.X the million had $X.XX we acquired and over through net shares The a of of $XXX including stockholders repurchases dividend, to quarter billion authorization. of fourth of March returned decade.Turning company's close on to of past approved its as end on employee remaining Board combining the on settlement Directors The repurchase dividend the shareholders the cash be quarterly and and dividend business $X.X March our XXXX record year,

XXXX I'd XX.X%, for like be questions. This Abigail? in effective discrete the revenue XXXX to forecasted expect of in to the XX.X% $X.XX to increase includes XXXX a tax rate and call due turn of EPS lower compensation.Now to benefits for forecast the related from primarily XXXX diluted compared expect up tax for to to We $X.XX. to XX% of to XX% stock-based over to we operator range

Citi. [Operator comes Instructions] Our first with Paul Lejuez question from

about a number Macy's of closings. store from heard We significant yesterday

second, 'XX. label thinking that the impact in are And then the any what business drives guiding versus to might how think just about growth? next the and curious over wholesale impact side on footwear the on the you're How just hear having And business that's branded about if curious private also thinking how curious several years? about XXXX? and -- F on you you Just in

Paul. Good morning, Great, yes.

customers both label Madden terms certain gifting closure the wholesale a to there, that we've grow business, include although talked some reins to to go up -- with on more pulled accessory will the So information and those and I closure the do make bulk in Girl much to XXX up on the branded of which what But of because we likely footwear of impact Macy's label any some your for obviously, XXXX, don't weather doors Steve top assume impact top expect announcement, really -- I first had et the instance, need and when meaningfully. -- distributed the part on those expect but more impact list. is bit My should take that have more cold just not realized private Madden for XXXX of list, I there the little to about that some do inventory get that of will is faster. and the are initial in is really we looking women's the significant Madden cetera. too stores XXX minimal top 'XX. and and Macy's private that be And bulk beyond pretty doors.So that open-to-buys. that just footwear, merchant XXX mass what in that exactly doors is folks would be understand question modest.In decided are terms That about we're do pullback of ones even We back as categories. to women's, think are doors do be happened in they probably doors, be our those they things label in goes to We distributed Steve we're and the see second private relatively footwear impacted to distributed there we

we're there recovery so seeing And also first. the

pretty so expect some the footwear And private in in label growth starting we segment. to in QX nice see even wholesale

Got then that. Famous sorry you additional. one it. missed if I'm What And XXXX? just Almost assume do for for I

Yes.

Almost Famous, including to Almost maybe line we the so top exclude is we growth to if is I So Almost -- revenue Famous, can way it If to XX% you I growth. it's XX% give guess mid-single-digit exclude the Famous.

next from Tianello Paribas. comes question BNP Aubrey Our with

on about organic you're terms more DTC revenues? follow-up down to what of could that break for XXXX expecting in maybe Ed, between the the on guide. and side XXXX little a question I revenue wanted wholesale bit you last

so looking that if the in of at that a a should -- on kind on overall that in mid-single-digit and than growth organic DTC. less Yes, bit rate, it of higher than we're Sure. lower bit be in and wholesale that little or the little side wholesale

say in organic would I and high-singles So DTC. wholesale in to approaching low- mid-singles

it. basis maybe the is should are 'XX? gross Famous other follow-up we for Perfect. then what And a XXXX. or think And XXXX? right? winning Is think XXX margin the just components Almost that like for for that so. some I on then How think margin about about drag points should gross about of we Got

in about of previously, about XXX currently of basis would is It's you Almost Suez basis XXX margin XXX annualization. offset points.So based is we as that the that Red assumed over the the assumption basis have, but on at little points added XX in discussed we it Famous built pressure some to add Zine. by and impact of you're points estimate partially get I if those think the basis the sea that together, and XXX that is have it you didn't before, organic you X we that if Canal And gross to improvement a annualization and XX points exist you other certain the year and in whole yes, business. quoted,

Our next Laura comes Loop. from question with Champine

normalize know spoken footwear. that? And wholesale to of in you've interesting QX already in I and growth. in it flat will the kind was wholesale growth than comparison longer easy accessories The QX, footwears that on take to in mix or Does with extremely segment returning strong

on after that. to than expect growing should the wholesale footwear QX basis be it still wholesale an and accessories then even I faster organic in normalize

Poser with Our next Trading. comes question Sam Williams from

like Are you're it's back thinking just to side of low grow like and of the at in that. handbags, I'd wholesale things into faster. we dig looking to on mid footwear sort how guess can business? to on about I wholesale the We footwear to going

Sam. it, about think to way right the that's Yes,

little guidance, in just little Is better. first that... the And the year probably because a is little of half and the the the and stronger -- compare from visibility is a easier I initial a mean,

bit I big but that's right, a think difference. a little not stronger,

you And the that in then year what margin going to and The operating to is I'm just -- are full gross margin built dig in. expecting guidance?

with Well, I'll I'll margin. -- tell gross start you

We probably pressure combined to think that and we'll expect, points said as Famous compared we'll about that between I the Almost year. this XX margin have earlier, we XXX basis on gross freight. And points have that basis

think margin, that's basis alone, of On margin. the op XX you just basis if Famous op XX roughly points, the Almost points pressure on about

it's is built that's attributable pressure. And essentially just that's -- where for that's the almost is what XX, which down the what's -- which margin attributable -- to -- Famous year, we we and XX% elaborate, is operating in, think Almost to about all

And when driving does long good revenue. to of When Almost does it -- get be? when Famous them mean, to where a it's take -- Almost Famous margins I want to how you does kind --

getting business.As we that's and the time, We the I because that potentially the should distribution and clear we them the been when X%. a we've be to breakdown. improving channel start operating -- back label to shouldn't of we articulated And in a lower were we're see bought even half the high-singles their the component a the business, low-doubles. operating we margins. you here. mass certainly, before we over this the in be done a margin of Well, path sales nature a nature mid-teen that think it's will -- business of we based largely always the operating were us on a and we've -- business there's think operating think margin into this expect But But them announced path into got year private we obviously big it, margins see they improvement -- to seeing those about

revenue I'll within Okay. out. the -- it lastly, And actually, then overall leave

Canada break organically? revenue footwear how versus like that so on guidance, you've EMEA international that and U.S. you high-single-digit, sort balance, Is forth? so that organic guidance revenue versus and international... or got the or growth does out How Within of the do mid-single-digit

Yes.

domestic So is international is a and little slower. faster that little than a

Jay question UBS. comes next with Our from Sole

leverage should for beyond, you SG&A for in look with has What point about acquisition? point change? changed is the the My leverage question And the And fiscal is SG&A. 'XX? that plan leverage the as

Yes.

reason built because we leverage the infrastructure the as continue modest XXXX investing some the into and have in I'm also we're to we're is we'll budget saying marketing And in modest the internationally. we it's in investing said, in always So invest guide. business,

As we XX%. Ed mentioned, grew

growth years. We to expect next continue of the couple for double-digit

in also So investment the is fuel there a some perspective from to doing growth technology and both a international, perspective. we're the that in people from years upcoming

at that And keep but mind to right? just in line Almost a is looking to that, on Famous. that growth XX% elaborate top mid-singles, organic So includes consolidated you're XX%,

add And Got if more. it, just okay. can then one I

Just should gross margin on QX? we how profit about for color think any

there'll I It's -- articulated. getting pressure QX the going prefer start -- don't in to granular by quarter. not by we're that be here. start already to reasons Look, for guiding think Zine margin get

comes Zvejnieks from with next question Piper Our Abby Sandler.

just give And gives on color expecting what guess, Can promotions high-single-digit in that the direct-to-consumer on us channel? growth? in in what I direct-to-consumer then, Any stores? some confidence you of e-commerce and you color terms versus seeing you're

and in digital an Yes, step-up last and months. relative year-to-date. February comps in QX, improvement seen and significant to a November in both And yes, solidly business Even we've and saw we in over in nice, where that seen we November and we've brick-and-mortar the compared December.So few to trend improvement were December that running October. seen we a additional in are nice very the in January positive

of part confidence us is that guide. gives in the DTC so And revenue what

because probably some of from We well also points openings.What non-comp follow-up growth stores -- was X.X have question? have of non-comp do as store the of the we'll coming -- new of

promotions and on Just direct-to-consumer.

right super Oh, is, say, now either. but yes. happy, wouldn't say not I promotional the I It's as it characterize activity super I normal. light would would

boots -- It through did a and move able January, boots.But very We a so to got it were little and boot really there. was the lot season of nice year. cold that to weather. clean activity promotional I got we was thing if more to challenging back go a of get bit activity through this somewhat time was fall, for think kind we it's of normal we

opportunity promotions. feel fact, believe there's gross position. I in about in controlling improvement our by we so year that this margin DTC, good And in inventory DTC for And

from with Wedbush. Our next Tom question Nikic comes

have I of stem want of A that from kind the brand around optimism talked growth opportunities you to of becoming cautious. Does more lot that of under-penetrated the had your consumer brands the almost fact about European macro ask about Europe other a just the little kind there is international regardless so business. your environment?

I that's think Yes, right.

Europe our of That lot mature very not feel channels the both of a ahead strong is the think we've doing that of there. in still we sell-through that your strong And fact a point, we We outperforming weren't in momentum feel we're been we said, business wholesale terms performance. our better.But factors, growth overall in for retail there. I we us. and drive just seeing, the runway to macro have The performance can and We've We it be region. in that in do that if and the overall environment momentum and of we'd have, because are got competitors environment direct-to-consumer still is there. tough those even challenging

I region you Got yes, ultimately, you? And us become Europe? remind can mean, the in maybe it. of business the what size can to think you the

EMEA the in $XXX under just overall was million. Yes, XXXX region

be, that. it be In could I terms mean, multiples of could it what of

question from Jefferies. Corey comes Our next with Tarlowe

for a and I to now. on job nice inventory upcoming down, almost inventory this of how could I as just and Ed, the balances you inventories think, into be is you've several acts the quarters you of if positioned the was done continue year? same things in row a feel touch wondering One

that that be So for means with talk drive could productive all what ability think how really about sales trend-focused you and you interplays and way? chase the your and business that to

one business of obviously, that our I at -- us mean to that's when inventory model COVID has ability really company back our to close tremendous the extended, operate.So big fast-moving the but season we the to, what our and know, of turn in Famous upfront and levels, the make good do been inventory -- being the able basis, especially the and the we season, we're inventory enables as very formula you was end us, chain inventory faster we hallmarks flat, which bets trend point speculative supply transit I management reduce wake I an goods and feel peers was been work for been in so think including and do of be period you year. industry least to as a in to not at able there in We've nimble. the Yes, our were overall challenged to for than in That's best. were of a on we're times organic out, do Almost disruption whole chase

improvement believe And so what can about positioned do good that really that. do gross reason this feel on that playbook we're think to another we our we an we margin organic and year. run and I do And that's basis, we see some

you mentioned CapEx impact traditionally potential And this on remodels. a capital-light very of the that a That's on Curious follow-up about and -- just then is great. business.

of or the to So something remodels more stores? are curious number a about expectations going for specific that's forward, broad what if finite

Yes. We've done some this year.

the with we in this next we stores this the IT CapEx earlier, year ended mentioned we probably And infrastructure stores, what million -- our and our million do year. with at that may -- opening about above in we investment $X I $XX.X As expect would year. remodels, be

Our Telsey Dana with Telsey Advisory next question from Group. comes

in distribution of XXXX them how are wholesale performing? how you channel expect locations you differences outlets think street department it, buckets it's And private component, different or label, you terms versus stores, 'XX? of discounters And be about in each the do are on versus to if retail with what off-price the and the in Ed, whether seeing malls?

Sure.

that the back benefit the think the nice clearly one to channels, of already, did There's growth very the out, reins Kind should to in off-price, about top product hit line out, be mass we're still that's probably to a pointed nice look, as kind a beginning there think performing, I a a terms we in and there. big our get I as terms improvement bullish wholesale moving that XXXX. healthy pull that's as channel in of see we're expecting us So dramatically because of in the a demand channels point business inventories I we QX.So and channel I'm share. of year-over-year up starting really taking the see for they is back recover take bounce in most line still their for

controlling is But overall, stores, department we channel, as obviously the I say channel healthier planning healthy than from -- those indications there's how in how they're excess inventory as I cautious. ago. the there.And their much planning our that of us have move the a then we've but got important We we in out department. sentiment would And earlier, they're overall are it pointed the was that much and to certainly, you in demand are remains customers distribution there them business into obviously, year

a year as in And conscious better channel yes, to is so in The stores In in see QX, coming versus think QX, think it versus was the about value. that towards continue second -- I we full-price United margin. comp by the even in XXXX.I channel a the there them versus continue of X,XXX we States. significant a pretty price is outperformance part basis the call full-price And the indicative points outlet gravitating and outperforming again into still U.S. and that customer outlet significant with well in out we'll see look stores. outlets was to for a full-price big

Our next with from comes Stichter question BTIG. Janine

a margins. of questions had around I couple

SG&A freight bit into split up guide about brand of built the the margin, a the to gross to investing just The rest for the been you're on assuming and sorry, I for aside, about bit situation spend? so how you and about think year?And for think and How marketing pointed and a marketing spend? think rates are between overall investment know contracts deleverage are then the of freight? for Sea what in tick Red spend marketing you've there. other thinking how guide. spend -- think leverage But the you maybe I then your what SG&A, assuming bit I up of for the a we've the you to seen renewal, are So

I'll on gross the part on take can first and margin the marketing. elaborate Yes, Ed

around you but Ed in we gross XX based that. actually XX color marketing certain invest, bps mentioned to on we to more on give a built margin.On continuing On impact gross Janine, little and the to around that else side, everything the margin, can we're have Sea Red assumptions freight,

yes. moved it sub-X% mean, X.X% over know, I you of revenue for us marketing of and or Yes, investment XXXX. pretty about we've an been that from percentage think up several our years significantly as X% the in area I -- last continued look, to that's

XXXX, into the backing to in future. we're think growth that's it's important continue go Almost to it I marketing.We Famous. to at As to easiest look in the increase we sort going of out investment we think drive -- If

increase If out on in kind line marketing is is than growth -- you we're to mid-single-digit still an there of back basis high-single-digits faster obviously that looking Almost organic we Famous dollars, which top the forecasted.

a so optimizing the about, as the funnel mix, deleverage a sure the of as point, big gotten of really in in on and bit part industry, there. a top of the were means, this a believe, that that the in forgetting be focused few work of like doing what for great there.And years while We're the a that that's little funnel, and better but the performance well and into think for getting we're not our had we spend pushing conversion.I now many returns do that think a at working we to folks needs up terms we're as spend on. making we balance was So that marketing talked very there throughout course, marketing, heavily consideration funnel the and lower bottom the brand we sort of we ago, of where penetrated there the focus mid-funnel is situation more marketing funnel of funnel awareness

Poser [Operator Instructions] the from Williams Trading. of with a have line follow-up We Sam

buy for, about and business. coming of the which follow-up one same talking time, to Two the the more brand footwear, the opening are sort what businesses. wholesale on Dolce When things. One, wanted private Steve Vita you'd Madden people growing Are they to label question they theoretically, in of yesterday, their those.But and were of enough? that would said retailers Dana's better products on at wholesale up Macy's spoke they be asking be they on the

that? what and works database, trying So private scope I'm your they of talk how what's out, growing people And about just there business, of know increase so expanding to being done of to wanted want then giving to get interpretation customers label. the then getting your that sort I your to building direct-to-consumer more

DTC, them, say to -- very take see feel think positioned stores. and else confident been fair to what's we've -- improve, and that terms what penetration course does sentiment I vendors with get that going will -- several we We though that if I look, about on -- develops well store I that that that the about the more of the our that DTC last be share, if to very happens.In encourage Obviously, their Yes, can we'll get increasing will cautious believe participate know significantly of positioned we the that's -- that year. that. going we're we're the remain department don't I than over important do them believe to look, comp channel.Overall, their share, more we over aggressive that we're for we're how clearly the and -- continue continue in have to frankly, to sales years we're expect think in we'll been to I

penetration. in were we up think basis XXX XX% I XXXX, finished in in We points back So DTC. XXXX

you business with direct and that up. long-term in this we exclude continued pretty Almost growth if you -- that about seeing Famous, won't So continue there.And see But that be percentage if for consumer. year increase DTC that in Almost Famous, you're relationships those DTC significant you more build will go you the us obviously, a have initiative and to to of talked include penetration

time, Rosenfeld the closing to remarks. like call concludes back At for the session. question-and-answer I Ed to turn would this That

much you to with forward day. speaking right. great We look today. us All Have thanks a joining Well, for so on the call. next

for in program. conclude participation This does conference. your Thank you the today's

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