Docoh
Loading...

DXLG Destination XL

Participants
Lisa McKee IR
Harvey Kanter CEO
Peter Stratton EVP & CFO
Bernard Sosnick Madison Global Partners
Eric Beder SCC Research
Chris Krueger Lake Street Capital Markets
Call transcript
Due to licensing restrictions, you must log in to view earnings call transcripts.
Operator

Good day, ladies and gentlemen and welcome to the Destination XL Group Inc.

First Quarter 2019 Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time. [Operator Instructions] As a reminder, this conference call is being recorded. introduce for to McKee conference, like ICR. with now your today’s host Lisa I'd

begin. may You

Lisa McKee

call. Ashley, our Stratton. you, joining Group’s XXXX Officer Officer, is Destination for morning, Peter Chief and President us XL call Executive earnings and our fiscal Financial President quarter Kanter Thank first good Vice on and and everyone. Harvey our today Executive On Thank you Chief

wholesale statements non-GAAP Please from metrics cash cause about company’s today During the that to comparable to assumptions uncertainties and forward-looking sales flow. filings at investors risks to Investor and discuss regarding in Information materially Securities today’s Exchange such Today’s explanation concerning and could due call, with uncertainties which subject affect Commission. information performance. a growth, of we Relations reconciliation an with morning free is risks available differ measures. and release, the Such company’s those our earnings discussion various detailed to the some financial this and refer factors are forward-looking will statements our useful that variety website filed the contains on and company. to also for the of provide was mentioned actual investor.destinationxl.com results is our certain segment

to call I'd Harvey over the turn Now, Kanter. like to our Harvey? CEO,

Harvey Kanter

greater and me for said engaging with hand I my opportunities what tall the about was is yet experience and incredible really and not time than told and for what our memorable. President In our I learned guests to insight other is am quickly from love less that very speaking be as today what passion words, teams consumers. It retailers of first much In everyone. the stores thrilled to good already they have powerful and different heard so different short, am you, more acquiring apart. morning, about XX traditional is first the theirs, and months, although this Thank they Lisa I've ahead. that DXL with you from this DXL. Destination they learning fast us but few big for sets the and the CEO experience over XL. travelled I've company

the and challenge guests quoting look assortment For At many assortment product. I that and the and size big by XL has wide market proportions. if it but believe The DXL it. to a clothing tall men's clothing big in feel a him the most our and gets and memorable just quintessential is to tall consumers, extensive scaled We designed told solve them retailer the is built with the am shoes uniquely man truly helps a in and not it. reality place curate and DXL's that is specialty shoes. of by as is our challenge men's empower driven clothing understands spoke XL we and in DXL it's his I DXL best, fits that not experience me strive delivering of for

just We fit each fits that which our in specific, to a use way have we customer is be a develop size, uniquely for distinctive spec other that spec, every not. products secret to retailers sauce do

all going business a his experience. on stakeholders. by core connected creating you greater share all consumer designers will provides want as to focusing am in consumers experienced with differentiated Our exclusive about that emotionally four and I as value consumer who mix I and those well joined we because now improved DXL topics performance and believe key we today. and for end and I and points purchase And exceeding labels to one-stop expectations opportunity him, of our value can for touch financial to price brands drive talk have across a I higher a shop

you background to and I a attracted what brief give on want me myself First, to DXL.

Second, on I'll our touch QX results.

want the the in finally months to CEO I two and strategy first talk results we overview will call a the will from offer. I've team questions. detail in Senior and Peter, most turn high call through greater that the want perhaps Leadership mission, who business I to broadly of the have you the as opening learned QX you the to what before then my walk to Third, I importantly begun and up more with for vision provide over

veteran I and brand goods is Why versus selling DXL lasting a experience ever for executing myself. achieve I focus mentoring did channels. oriented simply, It's people. in Creating distribution and a lot XX-year marketer between and another do. who merchant driven by brands Quite drives wanted difference I eyes a matters. a I and and to guests categories am and I on discernable and many am love operating memorable and I feels strategic a with retail. the is by me. success. just retail of I to around Moosejaw to background developing Blue brief am what on across a developing all energized retail a memory, specialty a Nile First actually outlet like DXL? team plan experience the am services. the choose

in a DXL a guests anyone in unlike shoe has ourselves retail in be all unique hearts We else. DXL a company way experience. to solution the and a special of our place, clothing and company but solution differentiated, a provides not memorable and present minds just needs. for and provides compelling a our his As

of both improve drive stores, traffic the warmth had not in of higher associates to The to prior the stores traffic a We in to enable summer coupon experienced were platforms to to were we quarter our seen declines quarter. the weather and continuing the both another enough his first a us sales the comp unfortunate our we shape a performance the assortments shopper not conversion dollars in immune clothes improve register X.X% difficult have the attempt have our which digital new year seasonal we categories per the particularly with We winter sales brings We've for of during to ramp, as few give as our redemption In as just quarter transaction. further changes our fiscal which we results. overview begun brief let below a of to not out and you compared start in a high-level a away rate Comp and quarter our only down in build to unseasonably half Northeast. were quarter negative. expectations. quarter's the have sales the experienced in in were days, by we have taking X.X% to T-shirts, last in deliver and a last positive year year are top-tier in first seen impacted sun Now to drive the our is and and our during a similar these put the me of compared as but incremental weather his the and starts advantage to see weather such and Unfortunately, great Polo’s challenges, winter wet our severe quarter. Every up. customer quarter, the our scope cool and Midwest among show failed the half traffic. in offer Despite customers categories promotions discount reality clothes. of experience, promotions. clear Interesting second spring, positive shorts,

This last Below full-price As year. were gross margin our our versus a line, shift our manage resulted was down well lower gross rate margin. expectations. from the SG&A traditional of result, higher we shoppers in spending to mix with expenses line than continue marked discount higher customers with in a

and from DXL bit brand we to my results. first you about many my leverage tell me XX strengths has The learnings that drive let can I observations Now, little significant believe days.

competitive our both strong. leader position is and of First market scale and in DXL locations. a is in-store merchandise foremost

big consumer well. that fulfills accessory and unique those core DXL shoe and and Our needs believe tall has we needs clothing,

our we incredibly experience to teams From knowledge we field over for a We strong guy. great transactions. deal customers and create big and an headquarters a aligned our have historical have plus tall data passionate incredibly our and of XX% to capture behavior culture compelling of all a on associates,

powerful both We own and private label brands assortment a offerings. our designer have mid-size spanning

would like evolving our continually the stores performance been not DXL to To team our achieving. that XXX service ensure and and share mission extremely we you the to have with operate our drive management are vision, today my operational to these with enough of levels product we We they needs. are believe priority are has lifestyle that are with our articulate strengths We his our capable our compelling and I I the end clear impressed and of done which store first clearly business vision today. in-store Despite are experience more matches to to discipline. and The presentation.

DXL designers the consumers and curated Our from all across to is shop a and labels value to men's one touch sized shoes most for mission to extensive XL consumer end stop and and experience designed higher and offer assortment built tall a of in proportions and clothing specific memorable big brands uniquely points. exclusive unique provide and

in to a is strategy by KPIs our shareholders. company look Our the to to our men's timeline our now ultimately unequaled to these shopping the delivering feel DXL best We're develop and goals vision to and and returns an is shoes. promise empower achieving around assortment plans, working achieve as and align brand really man and for XL our higher to clothing experience

of is clear look to many side-by-side As if comp investor I'm an you our have package I'm you sure which aside, aligned my base. with

drive goal, ad and we count greater customer far is well this, market market can places, growth In surgical. far yet blunt level through help customer think both today a our customers. will engage and to is I becoming personalization. Through broader resulting that and so are in as digital, accomplish and way. today analytics opportunity website and consumer insights stickier as at doing, can events. priority think which uniquely To the people productivity the meaningful learn leveraged primary reducing drive and see our our not so marketplaces. opportunity data, more versus the we new or possible. many from tall, channel The More and broadly to digital meaningful spends. the broad-based acquire second and addressable beyond marketing count more big in and We and think the direct-to-consumer we use just we a company for There think visits return experience, on greater directly to have and goal Our goal retention believe marketing with opportunities we our interact generically repeat can

customer leading been this bit Now, marketing have and omni-channel files of let about our a plan. keep who are we shopping visits, frequency retention, one the achieving visit the the today through to tall the greater talk have Jim us we effort on new out me same has focus we acquire repeat to increase growth. of there number customers the and while need customer development and our customers and Davey, clear the time little of today. the big a goal at We driving their CMO not with need

job. defining a delve and great into through these we'll new brand have at deeper We and continue current to marketing engaging strategy initiatives. customers the both done

must to want the communication across to tell the all continue We marketing points, to tell. touch believe consumer we we story leverage

new Our to relationship in grounded be a customer will achieving vision approach path management. this to

and had relationship Save-the-Sale with our customers and customers those be data to but initiative implementing. foundation personal both new our a connection using we our elevate us good consumers CRM develop with it are guests one-to-one technology a solid we the should DXL all and for our guests know we're from existing personalization not Clienteling, just will through We consumers. who further offer effectively. We

CRM is third finally our development to implemented XX-year in to and term affinity a strategies want progress doesn't talking homegrown customer a and a old clear a about for solution. priority wholesale best-in-class email preference sure from well shoes anchored comprehensive we database the brands This shoes half we special make second the business, For And a example, upgrade have of work project further We our the of the for our on year the a product. to to clear plan for for sense clearance a be with end higher over the that long Alternatively luxury wholesale us highlighting we started customer extensions for is be developed support last sale we the business have suits. that to we if will a brand are for vision lost send in it quarter. plan. by him system mission, as for with a

don't very Let rush want to clear, we me this. be

and through see favorite more opportunity offering it of fashion points process continue discipline, an wholesale of core the need to to and capture financial develop we learn our a to wholesale test execute to We opportunities have big business and words products an With prioritized opportunity many structure see manner. date, go rollout. up opening but spectrum. our are limited and basics taking slow establish towards need and building approach and model. with front focused strong to price share to we wholesale to We a and items eye product that my as us the scale significant in future. across in is To we profitable important tall a we well We at a three discipline

disciplined structure and we strategy. a vision strategy. detailed my and process We will our around in in discussion drive develop our through To mission further and to short level DXL brand mission, marketing have the communication strategized and vision, our and our time summarize through

Our a DXL lay is goal. and to to all is framework that do. and big to we've grow our tall we initiative number customer begun one file At achieve

fit We offerings. across garment structured as uniquely size in positioned the are the marketplace with leader every all specifically

tune delivered differentiated customers further an keenly have with service. associates are in of high consistently by level needs our are of We exceptionally and who our the we

the with performance. the intend key on intend customer to we turn the to Peter? will articulate measure will And Over our progress. our to and to I financial I our review now how further over which base few speak that months monitoring who our next metrics our will grow to we be Peter, plans call CFO,

Peter Stratton

and Harvey our morning summary like you, results. I'd brief first with good quarter a Thank morning, of to everyone. start this

to million approximately to a of comparable and $X.X decreased X%, year's wholesale sales This million however year. we our last our to compared or sales last From momentum of by decrease XX.X% stores. our total compared quarter. was with e-commerce across partially to XX.X% the was due quarter, a northeast an Midwest. tenths sales the Within offset $XXX The sales revenue retail increase and three decrease decrease X.X% first of in perspective an consumer specifically For increased segment $X.X of $XXX,XXX to primarily closed from X.X% to channel struggled direct million. upper of operational decline

first XX.X% due was XXX point performance remaining our quarter. impacted our was last such the but our point categories model. by was by occupancy XXX It being of wholesale and merchandise of partially The half in quarter in occupancy second the our of due in shipping to in redemption partially per decrease margin quarter basis merchandise rate merchandise segment. Gross was by compared digits XX basis costs the improvements in basis points We in of wholesale is XX.X% offers Our XX weather higher that segment the This XXX cost in as point of while evidenced segment. points basis the persisted conversion to was seasonal difference shift due margin was year. the note segment margin trend promotional decrease weather believe the first traffic low arrival offset by leverage. basis further role transaction a while for margin to dollars slightly of weather poor severe positive. retail our the shorts. offset to for spring important first winter our single XXX impacted performance contraction the new the in between our inclusive significant as of The negative consistent basis quarter a played is Of efficiency mix retail points for conditions half to was quarter a in warm delayed our in

which takes to last XXXX. restructuring wholesale growth. to regard in driving channels. our As to to resulted corporate and the increase primarily as and big quarter several ultimately These we $XXX,XXX quarter, attributable We bottom million market incurred and gross highlight was $XXX,XXX SG&A savings is approximately cost would of savings were from fourth puts that partially noted naturally in our by and decrease decreased direct both like than reach store wholesale and from The With scale top view in call, tall to approximately on opportunity line compared lower business. SG&A leverage margins line year. and our our our expertise May offset an by $X.X I wholesale the of an on expenses margin the developing in

that XXXX to $XXX,XXX comparison Additionally, in gain a insurance impacts benefited one-time quarter from the first negatively our year. of last we

result longer a SG&A we quarterly to benefit to new gain million lease sale accounting receiving a as related transaction. gain the leaseback to a from to a recognize expense new amortizing no adopting $XX.X adjustment Finally retained are deferred of direct to as standard, standards required a remaining Due the of we earnings. a $XXX,XXX deferred accounting were

sales compared quarter include the to of quarter Customer compared first in in XXXX. of XX.X% represented expenses XX.X% year's As sales overhead to in XX.X% which the first first XX.X% quarter. store of XX.X% last operating for XXXX compared and X.X% were quarter costs first corporate costs, last first XXXX fiscal Marketing the fiscal year. facing sales X.X% fiscal XX.X% costs and which of a distribution the Corporate year. of quarter of includes payroll, compared costs, the represented marketing center last XXXX our support were percentage to sales other SG&A costs store quarter in to

the first XXXX. loss of GAAP last XXXX for in non-GAAP $X.XX adjusted was million net first or to share $X.X quarter loss of On compared quarter first share. fiscal a was the was $X.XX to per Our flat the for flat quarter the of quarter EBITDA diluted year million year. at basis, adjusted per for to last $X.X diluted first million net $X.X

cash was our operations million XXXX. decrease to the cash Cash use turn receipts me working payable of on the for to our as payments expense expenses XXXX and of the of three the $XX.X other result flow sheet accrued timing timing direct of fiscal in of lower use than were due capital. the from for million from year prior the At certain months a a in primarily The of let as payables. inventory the three accounts $X.X Now quarter, to cash compared flow was operations months a fiscal of due flow. balance first of as cash first well end

XXXX the in and two two is due to on combination also Male to inventory of we Clothing quarter that inventory last the first a quarter. with expected quarter the position was store Within point and and to higher portfolio, year. inventory X.X% will to plan, ago order upgrade. credit Capital of year This compared clearance million driver of and expect to of payments the Lastly, sales. increase $XX ended important third $XX.X $XX.X less of debt clearance compared to debt of than first total debt with Casual the composition basis accounts revolving was believe the our our The was management XX.X% end The for million $X quarter in primary was our excess timing expenditures a and million million for the fiscal capital DXL end level, excess inventory to million five decrease the system based The representing which end on includes stores. increase a borrowings facility a with bonus increased up in the we performance $X.X to the quarter million. year. changes last working inventory of closed including of the cleanliness the annual seasonal related first down our normalize capital accelerated to rebranded Inventory the $X.X X.X% X.X%. increase payable remain with a under receipts Male availability our last comfortable specifically year. projects $XX.X more directly approximately first XXXX approximately infrastructure XL our selling of were of We or the $XX.X million. quarter. million Casual is the by two Rochester was related expenditures stores quarter. It's XL million and year lower of total At format We the we in $X.X in that IT to availability at compared merchandise quarter total to which out compares of higher stores

I the new first of ASC fiscal mentioned XXX. the called adopted quarter accounting standard As we lease XXXX in

our of right the as $XXX of primarily elimination we used adjustment X, liabilities right the adoption million our and of result sheet the to a XXXX. at lease established and approximately million lease certain of the February leased as use to As The $XXX $XX of on approximately related liabilities net existing corresponding and leases difference established balance million assets between attributable right-of-use of liabilities assets was assets a consolidated assets.

to primarily omni-channel related million business In forward generate with We expect to leaseback fiscal The recognize retail $X.X to to fiscal of deliver increase sales earnings the other of looking $XX.X new continue we on in And to for standard million in The open also expected sale we our the on still approximately XXXX. retained to questions. company call growth free deferred still gain remaining business of we will not and comparable is closing, Ashley, that, any material adoption trends. commentary expect flow opening the XXXX. will have net from provide impact to cash this earnings transaction. a

Operator

[Operator the Bernard with comes Madison line Instructions] question Sosnick from first of Global. And our

Your line now is open.

Bernard Sosnick

which much like to in I'd past your my level right based from a the does with What away was now the follow Kanter. be Good spent, that overview to direct regarding opinion you clear implications have too It's advertising that the regard bit broad consumer. of for and eliminating advertising morning high? from viewpoint to dollars up moving overview. marketing you're very to Harvey a or was that refreshing to provided. welcome It

Harvey Kanter

a change a question little and you it's would early know tell it's that I that say there's material You substantially expected. to a great

what for is evaluate I that to of better the building trying lack recipe. is understand we're is the in better think impact – word a and

both of but too change broad closer the more marketing yet early to your So media past we’re believe digital but TV going close And media some we heard is their the inflection steering based material expect by be and based elements broad may to importantly you and opportunities or will into. created the place communication in of and a there TV quite all doing it's the we have that increased relevance radio. believe media for i.e. may do not with radio replacing package can in customer. away of with their are direct presented still able Jim's today. get but customer said, do there's the to the being point belief a we it that honestly get Those our That core in we to we total marketing to substantiate evolving the unique maintain a applications all

Bernard Sosnick

Okay. cited you anticipate months was that purchases similar $X.X to key quarter that Amazon the Thank you up coming regard higher Amazon. second to that foresee in revenue two million concept with year? of follow half and fit the the the in from that the provides is wholesale pace for or do the I you Is first to for the the to you. Can business with the $X.X million The view of regard course focus with DXL on that?

Harvey Kanter

the accelerate. very wholesale in infancy of expect the building business a process to we the Well We're for plan. clearly

meaningful the I will definitely future it manage we expectations. in directionally I be more our growand same So time, think the say – continue quarters. at could to would

vision building grab ensure brass as plan trying quarter. We for a next for the shiny to to ring the we're a are opposed long-term that

Bernard Sosnick

look conference you. you the and CRM, sorry. by likely considerable thank really to system you that new calls in the and from I capital in an the heard one results Well, forward produce. said question needs investment this the was hearing include system I'm way, that to that more we Oh, just you are significant conference CRM CRM improvement. in last Does investment? future call there a

Harvey Kanter

not it are CRM in We place So just CRM proprietary a heard had last be time, database XX-year-old in to referring we system what and clear, system. you're a to but process way in of I'm exactly a really are one. we the you new putting in new sure home putting grown the

will an not should a what It leverage it's specifically the greater for create be of the time the or life. in XXXX we system improvement new that fall and extension year was. CRM implemented impact CRM it's the point beginning second-half the by fully is to new can That where opportunity be in to system. or elements live will personalized early engage and way really one-to-one come consumer the a So in unique

in come in It in a will life in it. Peter, place that, will certainly way. yes, in important it but what a capital the have to And yet. so, can it's one, it that things; place to not terms talk you very hear to fall new and system but of be in beginning really will element two there it's XXXX part, is does meaningful more a happen in

Bernard Sosnick

Okay. system chosen would decision? the is have you had that that And you made the

Harvey Kanter

my there, doing one it's system. It's quite we're it, of be system. best-in-class is I done put arrived. a great really name The great me to waited and extensive process honest, a to one they the To next for out an before they've but

Bernard Sosnick

to Thank Good hear. you.

Operator

you. Research. from SCC next Thank comes line with Beder the Eric our question of And

open. now is line Your

Eric Beder

first on Congratulations morning. quarter, Harvey? Good your

Harvey Kanter

you. Thank

Eric Beder

about little online. a thought We

the you a are even business. to plus should already is what be, margin and do of business higher? online it business online the What the XX% So, terms think drive opportunities in

Harvey Kanter

think I'm for the an it I because don't talk make way going answer. a me exact broad-based you to to to sense of give kind would

a best-in-class might to we're think XX is I I points players, you you direct what note in reference penetration tell change point as and XX% is if the I Williams-Sonoma almost would nearly think at consumer.

we're our for through to And And not the CRM both how to We're online know want is options we that I to and and the do they experience are here the to what we don't a direct-to-consumer that, able to when believe so, to includes choose give customer define to really requirement us But, buy. browser-based number But I is. they how do want the be if app the what here stores. customer shops. our experience be, far will that the The growth buy. and believe through to customer to the of customer with want clearly meaningful digitally. wants us where understand we right

get of but this lot where north to blue sky there XX%. of certainly, mark, So XX% that we XX% is are to never I a between expect and

would of I reference point. kind that's say a So

Eric Beder

the When kind that Great. expanded in Male terms the how at we you of even look and pieces more them? legacy Casual here know being kind of be is happen the legacy in into and being should which aggressive going – to converted what's Destination on more are in conversions XL think what stores, of should you about

Harvey Kanter

that over It's a convert producing those it all continue great function level at based conversation, time convert. through makes believe And we to number and firm. with that will on are sense that literally question and performances a joining and when of left there's as P&L. the of ongoing we how We belief but we're about we’ll a my to we them can the what especially and XX our stores an much moving evaluate one becomes manage continue on

Eric Beder

in at pretty designer much the have that here Great. guess brands want you that of now? you brands in there Are you have don't And done. terms to bring you it’s I [indiscernible] last looking question

Harvey Kanter

to we think done bringing the a is That think going the being I development moving constantly at about Well, to relevant what's I as have you how is happen. important really about And said, important new to think to point the said of brands. made I in consumer them. we've and think think job consumer, always great brands about and the

sure brand. a a Ralph really long brands time is like of that is is and perfect our brand to some both part newer have mix Lauren very We relative Psycho new Bunny a a a is new is like relatively work I Lauren that will who's with important. a Bunny core that But been make example, and out which around for the to as things brands develop. has to Psycho and there's that brand we they're have team obviously some say are shiny Ralph to object of top – there I Allison on merchant there today. But head we there new trends to the new would is be that expect nothing have our continue

Eric Beder

Great.

As the customer, seeing I to changes. look you. a Thank forward

Operator

the next And Instructions] line Markets. Chris with question Lake [Operator Street from of Capital Krueger our comes

Your line is now open.

Chris Krueger

morning. Good

Harvey Kanter

morning, Good Chris.

Chris Krueger

Hi.

quarter X.X% in down that had your impact. throughout You store of indicated the weather the volatile down that there any an are harder it quarter? where sales consistent patterns part Was was the fairly same comps or were

Harvey Kanter

Sure.

one. toughest We February. take bit in little And think March, I'll as in Chris that a a saw I the better we well. was in of So part quarter bit the then April, and struggled

was even quarter across it February. but month So the difficult the pretty most was

Chris Krueger

of bit it, end April almost we little are to month how May been the And the similar so is it to better? or a about far, of

Harvey Kanter

It’s Yeah. Harvey.

I lows started on much and of We much it out different very uniquely product. pretty categories very saw and across weather be highs rough to the driven. based seasonality that quite honest the think were

northeast to up degrees weather XX a call impacted a consumer in customers We've moment mentioned for we were degrees come relatively opening in T-shirts, as we've oriented the what those toll weather definitely So difficult. but I shirts is the way Memorial in of comps the seen of can seen Day – is as and in a and taken shorts, where the May and in seen flip they're pretty stores and and we've has moving has not out change XX meaningful see is had It's those positive where also we've unfortunate have the leading weekend the to side clearly some shop. popped as call regionality in example warm clearly where pops. the perfect on The a been that’s this categories. – forward really meaningful

Chris Krueger

year and then, year? Okay. up where several typically the times outlook November-December And What's then, for a the last on typically two leading Father's boosted your that years, to Day was plan timeframe. the advertising over there’s this and

Harvey Kanter

would for of not when [indiscernible] but are advertise biting I think fish smart the lack I’d anything, it what say. is be

our we’ve in holiday over our the slower the talked meaningful and now, into of and Day we're leaning Father's have will you lead from advertising we Day to believe of reason there’s already the provide retailers actually you tall TV are need pace clearly warm you re-igniting and you're it's compelling Radio maybe time. male if the monitoring to a into seen if and to to somewhat quite first-half those shop increases the seasonal, obviously, less the most two overall I he trying is will you the building last really – that other weeks, and and shopper and – you points level says, needs other the a shorts, some we monitor spike if like getting said don't are or weather to certain digital So is digital would've the Father's him the he that want based four for enough, catalysts do in see big the where second-half. Day our Father's and but and male marketing Interesting shopper, see

Chris Krueger

you how tariffs question, think give Last China? viewpoint outlook can comes your and where overall what that on Just of us situation? Okay. comes think what sourcing and on much your you you an of from from

Harvey Kanter

Yeah.

in really tariffs way. And manage different place playing before the the be to on it it, North mitigate it and meaningful through just our the commentary long without I well-positioned countries really America, done think simply, has a honest, any leverage of to risk way change South a given think states. in across Asia number of getting the country in I have that global of to leader to we and lot our us politics in tariffs measures put sourcing of even team and impacting creates the we're quite the one into a

Chris Krueger

Very Thanks. got. all That's good. I

Harvey Kanter

anybody you, Take care, I call no queue Day a operator in today. call Memorial are at So, bring have or there we're to this safe else the guess close. if we're the day. the to further bring weekend anybody operator? traveling, going going there It everybody Is calls the end travel. great looks being a on call waiting? Enjoy to for you're like point. an to Thank

Operator

does wonderful thank have and for today's gentlemen, program This Ladies in today's conclude you a all disconnect. day. participating conference. and Everyone you may