Bath & Body Works (BBWI) 18 Nov 212021 Q3 Earnings call transcript

Good morning. My name is Julie and I will be your conference operator today. At this time, I would like to welcome everyone to the Bath & Body Works Third Quarter 2021 Earnings Conference Call. Please be advised that today's conference is being recorded. [Operator Instructions]. the to turn now will call Ms. over I at Body Works. Arlin, Chief & Officer Financial Wendy Bath Wendy, begin. you may

Good morning. ending Welcome Third Quarter to the Bath Conference for & Call the period October XXXX. Earnings XX, Body Works

matter filings forward-looking we our and press any Safe in a you subject found statement today statements of to our may need As remind I in that Harbor are make to formality, our releases. SEC

Amie exclude Bath has today call will President me CEO, All Meslow, Works Secret call and August years, discuss the & press in the Vice Andrew. the extinguishment Victoria’s adjusted Relations, release. quarter spin-off classified as to Joining and been Senior today as now Body of I turn Investor the our results both on All on Andrew discuss the are today business Preston. business debt we we discontinued the XXXX. Thanks, results are on represent on its in the operations as loss X, due to of described of call continuing results third over operations and

Wendy morning, everyone. Thanks, and good

our a for than driven share share was ongoing per better margin exceeded year. forecasted like $X.XX without to significantly express We earnings compared commitment efforts. continued fulfillment Turning quarter delivered This quarter so we results and hard merchandise to third per appreciation we centers, guidance rate. upside at stores, by dedication sales call $X.XX. from their third The between centers, our third could of reported and adjusted done last We'd have per quarter our work and and performance, and versus and and partners associates offices. of not and our our strong share in operations our higher the guidance earnings distribution for to $X.XX vendors, continuing our $X.XX deep result

of growth just were year. seasonal Net across the saw consistent months which exceptionally year's as in was Halloween response X% delivered XX% fall strong strong decline billion, the our first merchandise. versus a third the XXXX, strong quarter results $X.XXX of our was we a in momentum to quarter. of the and last the continued with to sales We compared all and two-year good we half customer Performance increase

also launched We which fragrances of third Open exceeded both the X our expectations. new Fairytale quarter, in Sky and

satisfied position we are head holiday. with We our into inventory as

While to challenges. not we we are positioned domestic are to our supply retailers due immune better than chain, most primarily

quarter did We out-of-stocks have and proactively third and managed significant our to not assortments and holiday. the we experience do abundant production throughout expect full and promotions for be

in We vendors to to are production needs partnering meet with our customer to order support demand. closely continue

and stories, to wages, and we'll yesterday which results holiday pressure quarter our described terms pressures website more in morning. we we posted commentary, released supply chain, marketing our Inflationary transportation showcasing on and In third this evening. fourth of we product to put costs, as video our impacted we the quarter which negatively even assortment invite our raw a in materials, watch offering you our

as to pricing this with as promotion continue offsetting manage proactively of goal will of We possible. and pressure much the cost

are last over growth growth significant earnings versus We sales fourth and XXXX. per quarter forecasting year and share

XXXX. $X.XX in and $X.XX high sales the Specifically, earnings from in quarter And single-digit between of to earnings we expect per compared expect last mid share year. share and growth continuing we XXXX, fourth range $X.XX operations per percent compared in to to $X.XX

season quarter. holiday We into go the positioned fourth are and we well important as

COVID of expectations. our believe over line channels to of operate we related the associates. both and our sales Risks We have to confidence merchandise manner strong our in it to persist, quarter-to-date it now in very in our we turn with positively early, deliver is although customers safe holiday will a responding will Amie disciplined can and and and quarter. management customers assortments business, and I are fourth continued our I continue Thanks, and Preston. a for With a smart are

comment. might concludes we'd this back to take to prepared to others, be Andrew. I'll the it Thanks, time, X yourself consideration any of In to questions have. At please Thanks, and limit happy question. That turn our over time interest and Julie. you

Instructions]. [Operator you. Thank

Ike Our from Fargo. first comes with Wells question Boruchow

Your line open. is

of I morning, elevated last on your guess, the margins sustained mean, I'm were the good sure everyone congrats year. [Indiscernible]. and I some Hey, Andrew, growth. very assets,

way did of guys just XXs You I low update? levels to higher-level key curious perspective think a us I thinking people from in be seeing this you mid-XXs Just this above give how going some think likely. are really you're I a the business, that margin those you that’s evolve? still sustaining you a is structurally an like mean, would things was okay. Are profitability not really were that most you're we beneficiary, but Can year? love if

the And to return to range on Yeah, really the our for here said XX in pretty think the earnings Thanks going sure. last products, able range in capabilities, it is us of affords of low low business. we've an merchandise while believe improvement driver on calls we're talked question. right the mid-XX that come to high that appropriate likely generating we our operating Because is balance consistently from meetings maintain really realized most the investor in our customer this margin that as mid we've Yes, investing the experience, also to over also margin how breadth and that of we've months. we for a to the very about, sales. down

fewer again, all and this our seen, say combination to were And XXXX. standpoint, we've that were three at pricing power below and below confidence a high, where promotion that quarters we wide discounts. and into more clearance, power as Really driving forward of the And would meaningfully that's coming in less remains tickets and from around inflationary use of keep quarter, do quarter higher real traffic so, last we first the year, shop a on pressure. that fewer able this wild the of been run higher in I be days each to when and selective levers that's we've different promotional play QX, card come promotions, promotions, and prices in of or we we XXXX is levels full-price where though selling, going of terms the

not at the transportation those was really improvements again, inflationary we expect those those so in as wage half in And in as and as comments pressures. to materials, fourth about year And QX you we raw rates. difference it and are in go margin And are was again, in supplies, in quarter. much only our was it costs the look of QX, further disclosed the first that relative as and our up they in to

very on it's Ike? basis, our that. of So costs. are where we're that much sustain? of merchandise right of probably through 'XX QX Did down rolling to of in that, again, to how start short-term But look really going as we 'XX, XX beyond power to as come is a of first to we your of a I believe still those we more do now, that we -- question, half again, to margin some address confident And lap ability able pricing

Yes. it. Thanks so much, Andrew. Appreciate

No, my pleasure.

Ike. Thanks, Great.

please. question, Next

Yes.

Hutchinson America. comes question Lorraine Bank from of with next Our

is open. line Your

basis you of Andrew, and offset pricing what consumer about can some also to morning. Thanks. have taken that actions if the go-forward response been. a you the talk little on adjust And a some chain you'll continue issues. promotions pricing bit these has supply to and then of Good the

in of the of lots promotions, including Yeah. have Thanks, of promotions. and our depth there Lorraine. pricing disposal prior frequency and highlighted around ticket increases, answer, I levers promotions, Again, at different price as we and

back ticketing we the sight of select changes. make half coming QX inflationary started line and the of we the into front, as On of in year, the ticket what end to did pressures get were to the

So, our big up take we ticket would our dollar be biggest there. example the a business with by did X, candle on

care, took heaters. We as our our in also in some of wallflower tickets forms, as selectively up some well body key

of majority our level we read react because sales come based though, promotions, and been again we promotion the over and And and day. gradually the here changes. make that's our every that we've the all read, everyday importantly across More XX last our do months. frankly actually to also, something have categories XX of prices of That on testing react, really our constant raising from capability, test,

for pressures. been Something facing like honestly, doing years, a we've this inflationary in more we important where timeframe the but are even

as we've timeframe to continue to made reactions We not that or we've do that, changes fourth the have I move those terms quarter, reality year. still this will I the we a that to quarter than volume promotional use we do read continue three point believe either say to rely levels a described, we more of been much both customer key we traffic on as drives that much react days while we as and We that a year, and pricing, and more in both line last acquisition capabilities so business, and expecting frequency promotions. quarter, successful in tickets and of seen that. we to promotional quarters from more customer negative of pricing with and head are So, promotional in well that. into of the the a is is promotions, the into as depth promotional as other will of the fourth we'll fourth a more activity

-- that's forecast is in what our so what embedded And our that's forecast.

thanks Andrew. Lorraine. Thanks Great,

please. question, Next

Yes.

next comes Stanley. Our from question with Morgan Kimberly Greenberger

Your open. line is

to so Okay, the that Andrew, you're degree results of contemplating gross Really considering wanted much. ask here. or margin. nice I for magnitude the fourth quarter great. Thanks about

having to about compared You the down quarter last talked fourth year.

that about order have year, outperforming just If the so the you your talk or come help I margin could you operating to what just forecast forecasting. for QX expectations cause a as could better holiday your can you're currently said, if puts magnitude wondering of the I'm in and much. margin really in than margin this margins, gross us and and around Thanks been season takes overall gross understand bit

to Okay. Kimberley, to go going we're Wendy.

morning, Good Kimberley.

to what's our our down pressure coming forward is inflation talked about we as margin look in the really our driving that talked remarks, gross and margin QX from gross we about. we as So, prepared

transportation other forecasting wage merchandise inflation. with part that's be significantly and on strategy compared is being consistent But the by to side, pricing year. inflation the on pressure from to down the QX. called is roughly in and we're said, that as in Andrew our it by the pressures half being the of margin driven promotional last Of materials, as fact QX significant driven occurring QX AUCs raw to year. supplies. rates is planning last a it And combined a generally be to are That We compared out, of we of

the in quarter. speak, add profit gross so So, and or up, our you gross driving significantly that what's rate margin to that's down

do And want Andrew, potential forecast? to talk about then the you to upside

Sure.

opportunity year. promotional whether again, a have standpoint able So from really rate than to be is a bit the last we about we're not or less little

As mentioned a reaffirmed, current guidance similar is very Wendy approach and to our last I year.

we in some little result even a over of our of the high line fixed if forecast. bit some deliver obviously, if and we're that, that able were if upside. more would versus are able And to higher other could our pricing sales in leverage get than we the So, piece range potentially perform be in to costs to we or terms so forecast, some were magnitude the the on able more of at could be aggressive then

much. so Thanks Terrific.

Thanks, Kimberley.

Next please. question,

Yes.

Markets. Capital Our BMO next Simeon question from with comes Siegel

Your line open. is

ongoing your Thanks. really on Good morning, everyone. well Congrats results, done.

pretty AUR this at the feels understood great, point. So, is well

I you new one-time know just saw think something don't speak versus to well, there's lap. if that said that'll or a a the if bundling, low got double-digit pre-COVID, and script there's that any if you're as shopping you Can right. in increase growth I you last I tendencies higher with UPTs you there's in think COVID if seeing

to in just to the here $XXX about forecasted going and think costs. the then $XX million UPTs you last can from trying just increase one, if the to So speak or million

guys. raw between and all chain, can transportation you down material, be at would really helpful. break that that Thanks If supply

Andrew. with start we'll So,

question, to overall to digital specific make that understood part for business? Thanks just want was the first Simeon. sure I the or to I business the the

[Indiscernible] nice I thought whatever think was, -- it a pretty you I called out

[Indiscernible] X-year.

So, it X-year. was Yes.

has think frame in we've with we business strength there, continued reopening of the the a last that really year stores trend X-year from August, started time And from when the we the the in July, phenomenal. September through general, balance year. in growth on So, about seen that the been basis, saw and

by lot a and do collections we our been our talking versus driving on more we through we conversion online, that driven customer occasionally So, of question, to promotions driver purchase assortments, up again, categories. has the X frankly UPTs it's meaningfully transactions how our we do years basis. AUR. X-year up history, build promotional earlier. we really in to in-stores been AUR more than our saw in ago, do your we cross-category we were a pricing up the pieces versus the our further ago, But a third for continued and the and and back as average now two that saw we And of quarter saw years traffic then side, of within significantly. we and up, And both saw UPT the terms cross-category that so did about cross-category move across well. sale is that been dollar we have merchandising some in we something And lot on both multiple our

average of a XX% And multiple us categories. combination a on years XX% our has that UPT on go ago and more across our importantly, driven us now multiyear purchasing sale. purchasing see activities And customers all customers on so, of the has of those close obviously impact great from the basis to of categories to multiple to the about X dollar

we'll Wendy go about the And costs. for Great. question to

parts of to inflation, components in roughly roughly raw remarks including quarter -- roughly we're the product, pressure the or guidance, Thanks. of seeing is of use LAX a half we in seeing such throughout half that relate XX% we're that mentioned say in our would that the pressure other I transportation. On in we the materials business, and our of terms dollars prepared our

in seeing balance then wage primarily seeing so would in So be are that we -- or that it's those the fulfillment places, vendors wage and all the parcel product and pressure. centers at wages, outbound, be distribution both are our produce our inbound, and rates in would our centers, whether we

breaks down. So that's it how

Thanks, Wendy.

Thanks so much.

Thanks, Simeon

for Congrats holiday. of luck guys. Best the

Thank you.

Next question, please.

Yes.

comes Boss Matthew next Our question JP from Morgan. with

Your line open. is

congrats thanks. on And Great, quarter. another great

Matt. Thanks,

to category that speak terms single-digit, question to share again, And translates I in a fourth a file Andrew, quarter growth you seen opportunity customer the sales you up growth to year going during this in your ago. just the how of can forward? guiding XX% high market the that then pandemic, think PNL. you've To by mid had

that what forward, high ability about obviously to think ease over we As potential as upside? mid So, the up may provide algorithm, think these compares will single compares about digits we Does time. mean going and against going it forward? multiyear your to lap material

Matt. Thanks, Andrew.

Yeah.

first seen were very our of driven the a the a stores of In of despite year, really that actually of that in the we strong had we terms customer were decline year, half. that middle the at XX had great our we is overall there, the news what about end in in days the closed file fact fact XXXX, talking customer, at for by end was the last Matt, that XXXX, the

a to we good and that, up of news of great half have still growth that came absolute up trend low XX-month while of now continued XXXX we're is short. ago. performance in and double-digits the basis strong saw The so, X a 'XX, QX back customer years first the And so we rolling we're up half

very customers of years that we're from of that we're that's in see XX% number addition, customer also standpoint up X ago. the metrics terms a In are high versus strong so spend the and continuing to in really engagement seeing

who also And up times over than growth as that, categories earlier, seeing as categories all category. the within customer customers multiple now spend your purchases across very who in our of X-year those on is we're we've meaningfully. we're percent from shopping customer similar only a of dual-channel across a question, are customers. more a mentioned In strong our disclosed past, way, nice X X customers So growth that of standpoint. And basis a also in multi-category it's nice And a part file. seeing

X low single-channel the gained there. and we of is ago business order customers obviously our what dual percent times pandemic. now a customer. more us versus than years channel also our dual-channel those So customers single-digit customers -- we percent Nice of this customers all that is performance magnitude in teens gained here high telling X spend Again, during

through sanitizers, very obviously really rates. that and nice we're soaps QX those in of Some last QX now as but year, of lapping, we're the seeing extreme retention time that frames and of

higher great. actually pre was customers rate than a that's higher on so retention -pandemic it base, much even customer Our is on

one to to of And the performance think this that metrics things very As the the gained new I profile continue customers mentioned is that our we've file. frame engagement earlier, of also is be comparable performance of customer and of prior time very the to importantly, strong. know the inside

we that valuable on a as these are customers valuable So, equally believe very point go-forward at well. this basis should be

we questions? Matt, all Great. did hit your

The question QX was second guidance. about

something that and have believe growth restrictions about that algorithm, XXXX appropriate algorithm. QX QX QX, longer-term On and are mid important being of forward as we look pointed asking later. growth high what algorithm of lapping is, about out, over is we as growth algorithm does I go anticipate we sales What's is we we as in still you're a guidance growth our us to capacity to term. last multi-year time. We about note our our total QX say that longer you up was the communicated, won't for would tell the single-digits year. growth multi-year That's think in we I

Great. Thanks, Matt.

Next please. question,

Thank you.

Stephanie comes with next question Our Jefferies. Wissink from

open. is line Your

the that going trends forward. Hi, of you're [Indiscernible]. for This is you you. talk in good the Thank seeing could if part business and sanitization that about morning. outlook wondering the I'm

Andrew. Thanks.

Yes.

really business, we gifting our and to almost and expectation home good basis of to business, percent past, to business growth our know the while legitimate where during together mid-XXs that it's performed frame. we is to see north fully think XX% business the our expected around an we anniversary and mid and moderate that fragrance and we've the care in sales The What businesses to somewhere really QX. up decline. body with stabilize year. XX% XX% a about about time where say business decline that the of relative is that of sanitizer percent in QX example, the was right -- the pandemic. saw did was to out in in of that's I the that the year, be quarter we high looked tremendously year-over-year the news all how pandemic soap prior sanitizer sanitizer that soap think year and in as where and year-to-date driving a at obviously concern Last of terms our XXXX, number in So, in the to shared able for business to growth said, our shake it accessory we generate of year, driven it that in third soaps in year the for our important sanitizer were with business. And almost on was able at that occurring and the last expected soap there we pandemic and soap in sanitizer expected in total to were QX, I the And and this I line this that think we that in buying it the probably able as the would beginning low and year-over-year was and of level was of offset business, results would business, QX to teens we results in the were by got total range in

was about trend, Again, won't it -pandemic, won't And do certainly be high. so to that it and to expect high up as as in be again, we I'm on it it soaps a sanitizers. was be pre helps. XXXX it speaking longer-term as if where but

Thanks. Great.

Next please. question,

Thank you.

with Our Meyer Partners. from next question MKM comes Roxanne

open. Your line is

on sales White improved Barn. quarter. the selling full-price My on and in third Congrats question Great. is

growth I Can of years? and path your much still growth the and White the And for you promo your are, have then your stores runway see is remodels. of year flat your know the for capacity without adjusted a remind in attach few You approach how last these, on to productive next that us Barn, productivity nice then promotional given for you year just you as more they follow-up over and a is strategy constrained. how XQ,

to Thanks So, for like running your days. How going day a multiple for lot. this that things example, impact year? are candle

Roxanne. Andrew. Thanks,

meaningfully level line stores news Barn The to be strong still XXXX. remodels with the the continues talking that prior increases those about question than room as Roxanne. do that higher on seeing our out White Thanks is in pandemic, I low to something, Whit when and of as were up to remodel, the taking Barn in teens the we caution, were very but terms of productivity our was an that And numbers the XXXX we and increases business. pretty of the of we Barn of that Barn where of our understandable stores the the performance real quite projects be we've number the 'XX, in prior Again, that 'XX we new were out on Prior White Yeah. 'XX, things where about it, to fleet to in we as after White extensively the about. is to major add pandemic appreciate performance high start as performance. XXXX break the were we of the of strategy gotten good half of to very activity good that And call one in aren't we continue the real through talked to that pandemic. or in had we we abundance we those of estate. of XX% see existing estate excited news and ramped an about

Again, be that a year, as meaningfully that of By X,XXX that our days and remodeled line that's earlier, key leave of be the being us? promotional we stores being to White included we will mentioned activity have our all multiple our on ultimately, does the venues, second successful price Barn, format categories. year will last many with point, do than historically this last on were are one in the do last we as your days, are the took your how our some of about deals generally are year to locations? of in we big our strategy on So, mentioned. Really, on of the question many you in planning venues the stores question those Day was or QX of would end are [Indiscernible] format. versus year spreading individual We those a vulnerable. from day those, Saturday over and the promotional days. we where different part which The of of replace like promo the biggest of So with out sharp the strategy off-mall mall risk prior-year at only that Candle to in we those How do strategy. different

In year we spread over Friday that that has also a Black promotion been historically only week. deal, basically Black one-day addition, the our made last Friday that whole and deal

and them extend key those deal, our multiple of is days. that over Black last those And year price to Friday and days intent [Indiscernible] both so, be similar point cases, both to in

[Indiscernible]. Thanks Great.

question, please. Next

Yes. Thank you.

Sole question next UBS. comes Jay Our with from

open. is line Your

constraints about have hand your question has sanitizer about so the of no for there's yet general. stores you during Great. some What's across to market -- of to and sanitizer talk of & business? how in the Thank a this us do And and orders Last I last that compare last Thank like will you How Just much. help within also performed trends there last that lot year year? can hand filling vaccine and the strong. Works about the difficulty U.S. business the season touched Bath because secondly, year? a market broadly so shipping demand holiday year? speaking. the surcharges online look year overall constraints in online the because more But on you sense Body talk of online of versus then I was about that. you some some trends to understand think that this your year can was maybe will compare you you. What the some

Andrew. Jay. Thanks,

Thanks, Jay.

So, And think we've in saw many, that two, historically an many the prior XXXX obviously market talked as on on people getting explosive the sanitizers, growth. market about who or occurring the included been I that a obviously. customer call sanitizer to into a in that driven increase not in the as sanitizer hand business and reaction tremendous was hand by business, have demand,

some price that XXXX, in to to come So, order gotten their we've players, out players go exit ancillary promotions and have to those through business, positions. out as had into of XXXX in of and cases, deep many those the obviously, got of business the

was still materially are in so, a up sanitizer It is we it it And in from and meaningfully happy ago. hand way. in profitable X years very that We're the are we business. where

attractive explosive growth as was prior. XXXX last back than a XXXX definitely a expect is year. a it go-forward earlier, obviously as mentioned lapping it see X-year we're frankly and to down very that customer part view now we But basis market in on of as in As are behavior we basis do that different it's continuing on to be and

pleased until in we're have happening very the saw New So from a that. won't that We market on growth that's numbers our year, business what market Year early this last with the we're again, experiencing is decline year. what's tremendous I certainly think able full-year but but that a to gauge, within

online. your of on capacity question part second the So,

year, multiple last yes, So certainly, in ways. were we constrained

did the year. the phenomenal a business for procuring capacity full terms entered hand-to-mouth of So, of was Body one magnitude business was in way Bath we not plan while And our & the to as through doubling the last really job the reality additional year-over-year. fulfill ability year was And that fulfillment the certainly team of XXXX. Works online order our year, we in were is

business And taking like than the while it pleased to the to it be. times amount this with our would lead overall we or to we was the of ship time was longer products were so, result, customer,

as on wasn't a cases, were into be. different some the cutoff holiday, And all than we we have stores. in promotions shipping that Our it liked online able to participate inventory our the headed in business to we was based earlier running in levels, would

depend of to So, procured having in windows. knocking is much shorter shipping of in wood the news on shipping some And obviously -Christmas, have But are year. I that shape constraint environments well we're better confident to and year, amount our as the leave macro able this our pre fulfillment our good last carriers this be hopefully, provide with we're allow appropriate able extend think to year-over-year. us much will capacity terms versus online cutoff year will on inventory I'm what us the as less that of levels, will that

Thanks Andrew.

please. question, next Our

you. Thank

comes next Lashway Paul from Our question with Citi.

open. Your is line

over opportunities you out hanging as fruit 'XX, that do as we Hey, growth term, any just changes as we lowest taken the quarter new to for that top-line effect one next to even recently. season beyond? years? several were if to And look the just this in Andrew. quick Short-term, just that low-hanging think not any high as mid you've and longer Thanks. taken categories, So fourth then I'm see you changes short-term out single-digit just holiday curious and you about next there look had as year that What fruit were ticket at one look curious, the new XQ? made But longer-term.

Thanks Paul.

Yes. Thanks, Paul.

versus changes about The your the started So, that year. no. QX, as answer I that into inflationary would question, we we be the on the I of the we pressures really made ticket into part first as differences visibility we get as of short back made to the to ticket QX think earlier, talked half moved

quarter the increases in it third So, those had ticket already.

item getting expand is terms the standpoint the that. adjacent in from with hanging within long-term our as versus my And talked on doing in into we're existing we that our still we categories. QX core nothing our opportunities our summer, of as already that belief fruit within long-term, But to that which lots talked then expansion about in play. key business around So, well question over as under is further assortment out the QX. categories We associated of categories things further lowest plan a outlook differently ticket in about

very body So, care, the Single-Wick things the but an like form are bar soap, examples candle, things we're Within in on X-Wick body things Today, of things extent like antiperspirant like candles. opportunity opportunities there. a around like one in deodorant additional that and to lesser business, reliant a care men's within within additional on we're very the of then soap further forms moisturizing body And so categories fruit Again, and expand that soaps, on hanging our to opportunities. opportunity in lowest also expansion successful assortment. across soap from foaming items. the we're a very reliant key and sanitizer wash forms already additional

Got luck. it. Good Thank you.

Thanks, Paul.

I think last question. we have time for one

Thank you.

comes Shapiro from Retail with last question Tracker. Our Marni

is open. line Your

curious this I'm promotions prices thank Hey, back guys. traditional as pulled for Andrew, when think year? I put you you guys promotions, are a do seeing bit, And a see you reaction in conversely, your soap back, Christmas bar should how so raised Post sale place? actually the we that. stronger on was about you little to have happy so

Marni. Thanks, Andrew?

Yes. Marni. question. Thanks, Good

So short again, would first your be, part of to question answer yes. the the

day expecting when or sharper a a Buy to promotions to it's done as increases we promotions, One, on go or Believe even ticket like It then power second other So, we've what sale and did prior run was one, on your sale approach years down in are clearance penetration merchandise deal a and of offer terms bought XX we sale bought either meaningfully promotion, semi-annual Try amount the sale. do part versus call merchandise will be we history. are which historically. discounts of terms clearance was of price on whether reactions than on we It that shallower days would XXXX Get for Semi-annual do respond when to question point over a showing shallower sale candles significantly more of but we sale, One your higher prices, it lot that in well really traditional they And three-wick for a at of last for to example, and calendar return seeing Free strong gotten within to still for and XXXX, to promo. do promotions. the sale, the in depth the semi-annual by To of customers events that driven deeper that accustomed And specifically those we to nice, are our both semi-annual every we year,

guys. Excellent. Thanks,

guidance all stuff [Indiscernible] And our that's embedded and in

promotions doing your figured I are well.

store you run your them. Sometimes a some in it's like of when frenzy

do a like frenzy. We

socially and safe all we're as distanced. long As

Thanksgiving. Bye. That Thanks wish Bye. for today. healthy our call Marni. & and Works in interest you. we all you a happy and Body Thanks. Thanks Thank Bath your concludes

this for your Participants, you you disconnect may Thank at participation. time.