Destination XL (DXLG)

Shelly Mokas Director of Financial Reporting, SEC Compliance
Harvey Kanter President, Chief Executive Officer, Director
Peter Stratton Executive Vice President, Chief Financial Officer, Treasurer
Eric Beder SCC Research
Alex Silverman AWM Investments
Call transcript
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Ladies and gentlemen, thank you for standing by and welcome to the Q4 2020 Destination XL Group, Inc. earnings conference call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions]. to Shelly conference Mokas. like speaker to now today, for will hand over the your I

You begin. may

Shelly Mokas

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

and Harvey with Securities regarding to our company. those over uncertainties assumptions the mentioned to Kanter. regarding forward-looking various today that release Commission. Today's information is refer gradual cause shopping we the metrics morning now to an and sales expected with at the earnings company's useful due turn of restructuring outlook actual Harvey? of non-GAAP to Such store now this factors to on will of direct Please operating from provide to subject COVID-XX risks measures. are investor.dxl.com concerning like and pandemic reconciliation closures, Information performance. in fiscal filings also some XXXX, leverage statements about costs, call was discuss in call, sales business to savings affect results of forward-looking the uncertainties the marketing financial in-store for and fiscal improved and in customer I today's variety impact available on During in expectations Investor our encourage XXXX from CEO, the materially filed differ that the on for which our such a detailed online. its improvement, company's Relations leases, regarding reduced risks and expectations and XXXX, contains to the and investors is statements discussion explanation demand our website of would the efforts certain results fiscal continuing store its could impact Exchange

Harvey Kanter

the DXL a forward you making progress we speak XXXX XXXX. Thank look is in It my to business future pleasure as about you Shelly today to in and the brighter good and with leave we and morning everyone. behind are

on past been As you XXXX. managing our challenges with the of in thoughtful I through approach have quarterly we shared year, to call and have our decisive this

keeping some seven by serve their in through begin longer and our and sacrifice and for term have of business the I we all decisions of who XXXX, associates you encouraged signs a to for in this and our in you. are while look Most regards Thank our our of corporate to to been associates, he for network, period It business dynamic. before our moving and day-out we helping guest associates, want to thank are logistical and and history. our to associates, proud to in not product guests seeing year safety when we continuing the work-from-home the health I future the guys. continuing of to To the our for quite early To our most not remarks importantly and our them, this for needed for business, weeks tall We our and associate to so new our uninterrupted you accomplished year. To serve the thank his him you and level made growth. be the were positioning first our evolve company recovery the the tremendous call am my given team here. commitment thank said might center enough, difficult our you recognize innovate all engagement if our company's it be flowing keep forward day-in again and what challenges cannot has I goes possibly has despite us. distribution support credit for big adapting a what new a and and are best answered of of

want Now I update on for today's agenda, you topics. to three different

today. are I to First, in business what our want share we seeing

only have the want we had new seven developments and that I into exciting weeks are some year to We talk.

to fourth specific strategies the full Peter to pursuing year position And take it Second, term you update recovery financial before strategies for for and I you for future company our our the finally, want are up we how through to going questions. on we is quarter expect and and we longer results business the those open growth. across will the

are So let's today get started with on our we with where business. update an

traffic. this challenges been greatest store year has our of One past

and year the first were We our not He our his our has respectively. store family pent-up starting gatherings really were XX% and such thereof for of and anywhere minus customers January, new I weeks have traveling customers minus In home. to buying we store staying have bars less, sales words, February, have love or was down past. been we year, and as level apparel need and He a minus am lifestyle you anything I December fiscal believe or go from improved was, for been sporting many demand of so we XX%, XXXX We minus for comparable relieved events created haven't have pent-up of or more year hasn't now. our taking our think is some XX% your store of get-togethers. affected don't to were satisfied I hearing and just and our see which to kept November, down I comparable talked degree the lack his but comparable vacations two now. will know theme guests don't In in there to right XX% and a March, restaurants. month have need or the of last really large his sales that this to this sales XX%. like belief other been XXXX. going our XXXX, they In of is that was and common that are out erased. the to many store clothes We attending demand been visiting not has much impacted in Because that and be shopped that XXXX in past to behavior that

of to shift create factors. our a in attributing you have to are of of a nearly of we six the XXXX. this puts comparable for flat few optimism. days to which I the decline see year. buying Over us XX% not been we sales weeks minus different This last starting true to a you at tell first a six but to we sense store are believe We hype give consumer all the

thing see just starting did loyal First, underwear to our activewear apparel, the for we and return are of customers only some real more perhaps and need. they than work-from-home

For in they time a tell. selling affluent older be and from when a level. fashion quickly time our appears in, long the come we have customer heightened have of first level seen more greater to but It will time, spending back a coming

stories that We their announcing vaccines customers the are our shop. have to visiting were out proudly who store they and and eager get associates heard from they have had

performance last widely parts shopping. in and our the on and more will are and of the more more we Geographically, become our be restrictions gathering six strongest vaccines of Southeast, Midwest customers weeks the in socializing think country. and have South As administered we eased, seen Central

what XXX points. from Texas behind have middle our areas in were and the once the Coast again the was basis of freezing weather event. by have by on quickly country trailed Even business recovered hard few stores the that temperatures ago only Our hit a snow approximately like weeks a

even go the seeing have a warm Finally, in to stores shop. particularly restrictions the country early We recognize beginning of checks winter in gathering that savings it's two customer signals is and certainly the the remain long eased are comfortable way the another demand optimistic which hit weather our months ahead. the our catalyst we and stimulus that seen towards in banks XXXX are weeks, but out early are across U.S. a It's from into very of monitoring and for summer and around fall and cautiously or we round venturing the see year more wane consumer to the to as we do worth home. noting, up are the and his is recovery that still measurably to now. the rate will often if last carry have pent-up is pointing in feels we customer We

to celebratory excited will do QX of call. Given we you ahead formally this conversation, maybe of tell not prospects ahead roaring ourselves we but times get very twenties and the earnings Time on our in will you, and want about Like update real. the expectations. course are

transactions distinct about subsequent recent XXXX. two executed development I year-end to and Another talk to involves that that we fiscal want separate

will remarks saw the $X common initiated you on offering this of for it closing details the cover stock that of me specific of think business our but X. I costs. most February million for before I First, registered transaction his in additional direct generated that hope to worthwhile note Peter is a liquidity of we offering

have has been past our cash the I relentless. three quarters, on For how about talked focus

We another to incredible day, cash term liquidity. are details managing that protect our of the drive liquidity. we represents maintaining long making viability to enhance breathing and this and to our company ensure have with ability towards our outcomes we Each been living transaction are and will attention to decisions smallest the the marker

will debt. generate days was our risk XXXX. couple excess on this March for our of necessitated believe we plan the of nor continued execute and to $X by is month Second we away DXL not of solvency the term and on depending for transaction for strategic group. refinance will condition outlook balance just ability back shift an on about was us further a and more opportunity in enhance registered Again, a to on and each our conversation which new was liquidity XX, transaction based The primarily secures million ago incremental This our FILO a growth. balance our This marker inventory our another the loan. direct our from $XX recovery certainly sheet offering million recently, towards to bank closed availability it FILO existing our between strength the

in at or others As for memorable a create we outside DXL. experience and all I love along the with we future level the advantageous interest that at if credit and uniquely tall and brightening looked direct most, price greater extensive of there quite their registered of is investment upside the in to you guys we the opportunities volatility. to insurance, big doing these have feel ensure business What a from will, in-store. for with see and is of to and future as a that measure measure possible about of was believe brands so, designers, are talking interest the to offering taken The speaks luxury really online exclusive a by have best, FILO outlook a event least to and both what we investor offering most assortment every and and from both do curated value look we the and and essentials an

are our into functionaries growth. shift me for let plan to now what So greater strategic we doing execute across

with start Let's digital.

Our total for XX% of improved by improved fourth direct our DXL.com a business, was by conversion our to this at merchandising throughout rate made driven grew anchored quarter year-over-year partially grow and the XX% for growth create over XX% UX their ability QX. specifically continue which retail and and to with sales. nearly customers, DXL.com, superior up

DXL.com not likely channel prior initiated are but but to you have as technology. and trained on we direct fulfilled the As offer our available level. sales, originate not below universe our drove only also online product year in universe associates recall, as well web. from sales via be sales particular but store marketplaces includes in-store available sales extensions the our from that traffic to Lower that may before, are stores in-store sales Universe online discussed

to be our last the fulfillment continue in quarter. our or increase to Today, of up Given hard. BOPIS fourth of online, worth universe pick BOPIS traffic, four in $XX.X buy in both in during $XX contrast, fourth XXXX. BOPAC This store only have store In XX%. decline quarter, of drivers the an fulfilled year, of being stores e-commerce fourth times store and BOPAC quarter level curb by and versus experience. BOPIS, will up online, with compares higher we develop, In been which offer user the million area the and via is the continue at hit million of buy functionality to terms XXX locations. pickup in orders picked demand stores we momentum direct and sales materially BOPAC, remained an

We will we customer look and growth to as elevate over learn increased taking experience while loyalty. shopper to and a optimize look these the coming driving the months, experiences approach omnichannel test

their have from online. As behavior before, said DXL who well-positioned benefit to shifting I consumers buying are is

a customers but well. a capability digital have and and We which large flexible not reach base, a we off-mall our growing existing compelling and differentiated platform new store only as consumers omnichannel

have noted our digital-only we customer productive As by is customer. more a or store-only before, far omnichannel than

a and XXXX tech driven through will improvements simplified personalization the app mobile a in scanning, user focus a differentiated checkout. QX by We also from have be in grew that and continue as web our to delivering experience such features XXX%

an which, to The traffic been our drive anyone, and continuing need me be our ability our road. let website. on with share important traffic in our our retail DXL meaningful stores you in continues biggest digital strategies. marketing uphill has drive on is Next, facing some to growth to Equally the thoughts for single challenge into

While we for best, reactivate in loyal and to continue successfully new guests XXXX. a engaging make customers, most spending is higher to progress customers and significant across priority file channels our

such their of behaviors. understanding shopping have customer a concerns great for We our and appreciation top

and We loyalists for driven CRM for significant to messaging appropriate are in with must meaningful reinforcing targeted The make challenge media order conjunction relevant strides. in personalized outreach. us be these solved and remains

behavior was promotions mechanisms. to QX results leverage by driving other customer into and traffic for and spend objective the testing we Our in delivered leaning learning allocation,

of even We now continue to spring more in learn and leverage in XXXX. to QX look greater

actionable to continue act better customer indicators health key and trends to be the will and developed we performance understand so weekly files reporting have databases able We sales to decisively.

We also support email segmentation. our customer and optimized have to infrastructure file growth greater

learning and direct better with to and and outcomes tested marketing mail versus tested into promotions groups incremental create for a across the measured to QX impact. for causation We promotional margin Finally, to changing success XXXX. understand strategy more and gross campaigns, control omnichannel greater correlation targeting and support we optimized holiday

as any heightened Now not dress the shift that drive to a clothing, let categories casual remained challenged, of yet continued will the expected drive in a In update the and while tailored drive but an continue meaningful, by embedded that shorts, categories that customer in That the is Comfort, to weeks and encouraging. knits, will sportswear features is spring business are versatility key coats gravitate and recent specifically worthy quick to functionality meaningfully QX, been level growth. an is uptick activewear in There to these business. sport our are loungewear me merchandising essential we said, on mentioning on sales be clothing and seeing categories and brands material shirts. and still tailored It being drive at uptick may focus extremely have strategies. we key such the believe will denim. that customer Also

as materials as working it's as with items our have also or VMI to and with a to to inventory. undyed greater opportunities inventory are react for to to us such key We referred production, hold that as exploring on factories referred working as market speed our vendor-managed create it's initiatives drive respond fabric, well elasticity the and the to given ability business in greige and

fourth our let report am inventory. additional touch of internal of provide expectations. I on ahead although below pleased to margin, Peter was margin, revised but quarter that gross Now, will year, topics detail, last and me promotions our briefly gross

drop As much over marked up and a through rate. targeted we our in more our XXXX saw with we move control inventories, with more promotions corresponding became

we We a there in impact know promotions gross to expect return are behaviors for and are place levels to is XXXX segments we that unique promotion but driving forward dollars. XXXX. We and consumer increasingly margin as and a result approximating positively the specific oriented move

moving to inventories. Now

down have fourth XX% We last quarter. are managed inventories and conservatively year's from

have maintain chain We logistics supply hard very been our to working and capabilities.

of today the is One that emerged and vessels continues challenges delivery of for the third of available overseas shortage quarter the products. in

are greater have the any we for has receipts, now, continue and the but which in will been monitor disruption been on spring landing chain. cost of supply mostly escalating to Our freight time

We province. in raw are the costs particularly by the cotton certain in is which Xinjiang for increased crisis also materials, exasperated seeing humanitarian

We awareness a forced concern to labor ethical continue have heightened and regarding manufacturing. and

sourcing with working are We our team. world-class

are other member FedEx to several with transparency a are chain. We brands and of and retailers partnered actively to ethical continue we create supply a and proactively

occupancy Another costs. area we the in have company's right-sizing progress made this year was tremendous

and our been our our to communicate have challenges partnerships with the landlords with We very leasing active community. strengthen

been about they the of approximately We abatement with XXXX, dialogue our million deferrals. In of negotiated leases first restructured rent are having and incredibly and $XX most to grateful us. we of occupancy have landlords have that half open

In chain of savings over in addition, of over one-third nearly leases, we which $XX.X life of the are including have fiscal the restructured million the XX of deliver individual leases, savings to million XXXX. expected store $X.X expected

We lease me And with landlords continue an hard push rents line our you of costs wholesale. reduce where out let our to are give our on update finally, with sales. to those

We Goodthreads for to with which wholesale total, In was Amazon the last with Amazon, business million which and experienced have Essentials $X.X demand came is in in year. continue quarter chase to our at flat business, wholesale position primarily in-stock masks. with a the our market and for slowdown the

is the Amazon. is everything we While ensuing there good receipt even we are upside greater with have been and the in can deliver challenges there in-stock nearly flow selling levels, we potential and projections impacted news believe

opportunities continue to to business. the search other also for We wholesale overall

financials. Peter? wholesale And $X.X an $XX.X over Peter would million. it to to turn update the to million full revenues the increased now, like For I for on year,

Peter Stratton

fourth a some will forward have our cash I with will strengthen the cover a year I close Harvey to And guidance today. you with our financial There and I and Thank start expectations full our XXXX. am everyone. and good for position. steps summary recent looking of year of sharing I quarter topics are Then few taken we full will results. to morning financial

So to comparable in quarter the fourth to let's Total year. down $XXX.X quarter begin quarter fourth last last million fourth XX.X% sales the down for XX.X% were the year. with million, decreased from $XXX.X in basis, sales a of sales. On

Our the in the improved fourth XX.X% January and down quarter and from to were new over stores December continued accelerate prior have course November, year. of year which the

a by throughout up performance curbside pick online, led continue strong its buy DXL.com in year. was last online, store continued business at like direct up over the buy pick Features fourth quarter Our XX.X% to our and which up faster penetration at and channel optionality see in grow in our The was experience. the rate XX.X% customers a website as direct than XX.X%, from up core ago. sale year their convenience shopping

was in contributed in in occupancy a comprised inclusive basis costs the margins year-over-year in margin basis occupancy the fourth costs, point basis to decrease year. rate, sales, rate point during volume-based business against last and Gross of as and sales XXX due margin and wholesale XXX of increased a deleveraging The XXXX. online a was for costs Shipping fiscal to sales base. merchandise of XXX growth $X.X lower XX% to Our quarter flat shipping surcharges. decrease quarter, a promotions of point shipping free compared million gross XX% rate fourth

it margin last compared progressed have gross through was the as we year, pandemic. our has Although improved rate to down

am a to and specific with million rates margin effort brands $XX have our projected conscious our compared our keep slowing inventory inventory this a the very allowed by receipts customers, inventory at last XX% replenishment with to assortment fresh. which happy year levels Throughout right-size Our to sales to promotions quarter down year, volumes. us which reduce we merchandise ago. to targeted position more made narrowing year is million channels $XXX.X to and fourth as and improve were I in our

Our clearance inventory last million target. of inventory mix, $X.X line down XX.X% comprises from actually is year in our with and our

basis, in were fourth costs reduce down a progress great quarter a efforts for the occupancy to occupancy On made ago. costs. XX.X% also have year We store versus dollar ongoing our

over months fiscal due first on the To-date, lease on the in to departments $X.X to percentage and secured as XXXX. basis half store a of forward the our mentioned, fourth $XX.X amendments worth in have million focused abatements in go our of quarter, XX Harvey we related million In we a stores savings we sales. million over which to with the were the lease in restructuring down be rental which pandemic. shut $XX right-size leases will year negotiated terms occupancy in costs As

let's on Now administrative general and to move selling, expenses.

expenses sales this year-over-year adjusting SG&A result million For decrease the new or at marketing or of million fourth we This or eliminating we hours to and is of finally prior XX% total, quarter traffic of non-digital travel in and patterns. especially our year of $XX.X staffing the or quarter XXX significantly the versus XX.X% reducing fourth million support our sales. primarily of account of year roles store services, were our earlier X,XXX XX% XX.X% our for traditional $X.X including fiscal corporate XXXX, reducing $XX.X headcount, any the customer steps took costs, of and In eliminated positions channels, certain discretionary headcount spending. store corporate models

were believe savings offers up have but decisions resulted for beyond. assessment continue set of and us now leverage. these is The which and us cost cost to XXXX operating our for significant is in the SG&A process While an structure fiscal we success ongoing will the difficult, benefit opportunity

expenses sales will manage of move sales we a basis opportunities hours As maximize to store like recover. to advertising we on and continue forward, as percent variable our

two fiscal of marketing cost which customer other store costs, through centers, include sales support We and facing cost primary of costs, represented expenses for XX.X% continue XXXX compared view corporate costs. to SG&A sales to payroll, of for center last and for as distribution was EBITDA compared quarter year. fourth sales XX.X% $XXX,XXX Customer of facing operating last million the fiscal $X.X sales overhead and XXXX XX.X% to year. quarter Corporate costs, represented to which of in corporate XX.X% compared costs, the the support include XXXX. fiscal store Adjusted

closed. results, $XX.X our compared had during reflects that temporarily the fourth loss as diluted were stores our share, when million income $X.X COVID the share. the compared EBITDA last million year, to $X.X million full the a per the net year $X.XX and positive or especially significant or of was for For operating time per fourth negative on was Net adjusted $XX.X period diluted impact million quarter for quarter our $X.X of to

year, $XX.X loss $X.XX share per was share full as which per to year. or net non-cash diluted last $X.XX COVID charge net $X.X most net million, was million our Included For store of loss year of or taken result per basis, is the a net compared compared $X.XX. loss for $X.X of to amount quarter. a back in for full diluted of income a year, $X.XX full On share of the And fourth in share adjusted loss the $X.X the compared for million impairment quarter as as a net fourth was non-GAAP quarter as share per the net adjusted fourth diluted for diluted adjusted fiscal the diluted loss per of XXXX. was to $XX.X

to like and would on cash to liquidity. move flow I Now

cash. result in this to prior our decreased are took over steps free XXXX Considering million. to trends We year, sales both million in have very which the we $X.X talked many expenses, with inventory $XX from the the our able to is XXXX ended We million capital significant of fiscal our we the proud. flow operating before use our cash to just of new year times $XXX limit levels were reducing store and adjusting about we restructuring sales in and By match leases, liquidity. preserve

was ago. $XX.X our net comprised which a revolving at debt, million and to credit total of look the balance loan, year debt, facility XXXX If as compared we FILO $XX.X million. our is million of cash, Our at was end $XX.X of term

our We cash to million under on revolving $XX.X excess in have hand. of facility addition credit availability

As in enhance structure we and in place as The continuing XXXX will move cash we retire implemented are debt. use to flow in that monitor cost to and will remain revenues XXXX, into reductions increase. free we our our liquidity

XXXX not business XL limiting existing planning fiscal to objectives. our expenditures to capital Casual Male or are to rebrand in our only any stores new open instead of and meet are necessary current those stores We our any

As we new month million our entered last existing our into registered FILO raised which $X $XX shares loan Harvey million million before for direct $XX.X XX.X we million loan. earlier completed we this stock of term a mentioned, Also, offering through a costs. week which offering replaced common FILO

amortize rate FILO on the to of X% advance inventory XXXX. set down Our under in to May old were

Our in we new offering the inventory the saw with Both rate provide to improve additional us stability increased group. refinance lender and banking plans fiscal will FILO in because fiscal existing an flexibility borrowing million provide penalty opportunity we want our XX% loan our to new the direct strategic advance to of note adding XXXX. XXXX. an We I another capacity $XX by additional registered FILO. on no term and as execute has our $X capacity there an prepayment and elected million to the retiring borrowing FILO was that of also

remains credit with our our inventory like for I close our which up XXXX. support year to outlook to May revolving and the purchases, we seasonal XXXX. adjust down until and supported of is million would throughout place in Lastly, facility, our primarily $XXX financial by inventory

helps plans $XX to to million $XXX as again. financial of positive the sales and million gets flow. and throughout vaccines million, a of that the $XXX include Our to of $XX of house improve out this demand adjusted We million free comfort our level will EBITDA distribution for create gradually socializing guys believe of apparel cash year the

direct with of XXXX sales to up levels the our compared XX.X% stores to XX.X% that assume administered sales by widely available the as projections and XX.X% financial and a comparable are This XX.X%. spring. Our range down comparable XX.X% decrease to equates vaccines end to of consumer to business to XX.X%

the our will about fiscal sales. expect channel direct XX% XXXX We comprise of

liquidity took total year remain place and Although sales reductions will will both our provided as the be The flow additional we reduction past are cash customers our and by and XXXX equity in benefit adjust this the gives throughout EBITDA to respond corporate headcount, opportunities to flexibility discretionary this and any will below transactions from new and in us efforts that and we emerge The arise pandemic. rent country continue. our result to services significant and expect spending our year recent expected debt still store in level, store XXXX. more cost also our reductions

to XXXX we for forward it to excited With to as thoughts. DXL proceed turn look what closing Harvey are would to year. and for We you like throughout store sharing I has with in updates back that, the over some see

Harvey Kanter

Thank you Peter.

position optimistic. we both believe hope, As in in and a you we We to we come storm of we we the or guys heard the best have in-store remain so most all to uniquely solid consumer feel questions, be consumers something drive be friends and remarks believe big recovery place what creating and weathered we it and designers, leverage to and value experiences growth and best, to online the We associates my earned. have giving tall our through quite brands engage do for look bought, and and curated interacting we challenges. underserved to their strategy that that both assortment has worst a end-all memorable of exclusive and price we cannot We the believe shop and now in Peters, financial and and to interact, back. will take be-all, operator. And with that extensive their offering luxury most by the the do from essentials have is


Instructions]. [Operator

Eric with Beder from SCC comes Research. line question the first of Our

is line Your open.

Eric Beder

Congratulations. Good morning.

Harvey Kanter

Good morning.

Eric Beder

are that strategically color throughout we brands bit, usual, looking Would and emphasize you brands, lot guys, of a know the provide brands I talk that think it and was how here. You year shifting about to about little deemphasize? around mentioned how should at as you what evolves how or this are you as a

Harvey Kanter

great question. mix Eric, think, more as our wants. previously we products customer are we I to have, the it's materially the that And brands reducing tune the really that a communicated, in is fine and

certainly, brands are that of sell actually brands maybe to out is able stress stay not either obviously to more And is, that in spite continue spring still off level greater in of categories I driven and it the there maintaining The retailers that think, is mix those to be in more in a casual call an even label. The are breadth that either other that is element, private work-from-home expect brands are narrowed even become you of or bought say we likely enough important exclusivity, more as still of tailored well brands than to. of in we and the market thing, a do reduction those would we us just but what offer, productive so, that as socializing as in more clothing. as drive to clothing fall driven, in or are transition being those we equally that both in would are that exciting, to other

us I brands that big the sizing. nine level and years we at that in five. label at in brands our are private And then about really you to our two most from last and the productive over from reducing will those the are brands reduce only place And in it, market. can We cases, into would by understand we XX% high are buy a and that are say, many a terms tall brands driving in cases can the both they we really literally consumers expect those of

Eric Beder

shipping of you be having How business, lot up more you sense. get the just just people obviously the cost a buy Makes you higher online? what's so has look who online, store and you of from the incremental get directly, the it both the online campaign would to can pick at When save shipped. get margin to and and than in shipping of fruits do get

Harvey Kanter


great the of cost, the really from standpoint question right. Another

interacting some greatly and no incrementally have other you curb came is look store. shipping to But pick But online, opportunity pick to up store. incentive. they in a One, some to are the level buy know neutral but of the to come incrementality level specifically important discount, costs, they two, costs that the of the in seeing asked, the and are done are customers of understand test extent several And are in at so they to we we one a or are buy pick the doing version at they because cases are but our almost of with shipping somewhat of we to at online, to reduced it's basically we while there really a are different of offsetting to point store they shipping the sales customer as associates to offsetting we Number ticket obviously And offering in store customer are in and best to occupancy. incentives. the and version simpler to pick the making up occupancy, offer is obviously control many online, we incentives that do in that it buy enters a minimal. us very when So it up reality up addition specifically, by things.

are that different reality you want goods a many make wait incent and or pursuing two the and they easily trying day pick more as up and to they imagine number of to ultimately go we can out. store in it three more come want things access the customer the important for simpler quicker and is to they going or a don't and out, just so but So to shipments. are go to They might and cases fashion the becomes experience

Eric Beder

And final Great. question.

a given than of you improvements more I look on general what like the sales seeing terms even appreciate are last there opened of numbers? the you which states weeks. you really have granularity overall When in are up, at Florida, the much pretty You few seeing that. has lot

Harvey Kanter

much been that at XX XXX in been with, would have of of tell have with terms at those a ease at point in stringency to level, you have less states a talked what seen much as either in micro east, but more about and change those more could ease COVID times you. ease we masks at Yes. you hard say a versus believe I with at at challenged level. or states points basis that We geography high have differential At higher

seeing the New directly that select and in there's states specifically months are this to customer macros referred yes, ahead. it And more will Northeast interesting we and overall been in to greater and to York really that seeing comparison trends area over probably be are different I we yes, But the the evolves coast, challenge. where in are and so, the see and the California but Southeast than moving the and anything how weeks distinctly

Eric Beder

Well, guys, congrats and get good to we luck normal. back as

Harvey Kanter

so much Eric, for thanks interest. your


Instructions]. [Operator

next line from Our of the question Investments. Alex Silverman with comes AWM

Your line is open.

Alex Silverman

Hi. Good morning.

Harvey Kanter

Good Alex. morning

Alex Silverman

questions of a were follow-ups. couple already a small but asked, bunch of So my

months, the Have weeks last gave comparable in a companywide. cadence few foot improvement few even assume So few days. last I or the traffic? of you or seen last you that's increase

Harvey Kanter

But imagine as have pretty a there change in a Not might definitely stimulus what at foot coming the ease And are incredible conversion is, intent. in in getting same purchase are level traffic. the we either is the they at are that customers seeing with material you but checks reality wearing we you, see intuitively, and mask or levels.

And absolutely are so we seeing conversion. increasing

although order the the thing, as but value. as is high not conversion which growth digit average other not The DPT double high is and as

in digit the purchase seeing the low are increases We single of value transaction.

up which up slightly. that product. similarly is more of in composition the reduction intent. in up. we in Again, users and store. the nearly the implies XX% increase one transaction of conversion is by the at a things And paid they decline and purchase the looking seen increase have we is an it of seeing ticket exciting think Actually in are traffic ticket. Online, conversion That's So I means are

traffic the the to that online, traffic it of of levels of stay-at-home optimism today. and combination of with go to meaningfully But you So out. tell I around would goes which in potentially back again easing an online expectations of spoke to some need and just heightened creates levels heightened again, kind we

Alex Silverman

you Really question How at up is, overshot you very think clean me do Do for in Got we Do it. about you helpful. it's how should you about to inventory? level? ring think order to think think that? right That's the out last inventory?

Harvey Kanter


the are. And it and mentioned reality before, times we trying literally think we are we is, making watching decisions understand pretty actively quickly as engaged daily. where are to in I multiple

think to be, think we mentioned And shipping expectation be I going the my quickly cost is, in if as push ramp I the that will continues are us so the will obviously shipping pretty perspective. as of that evolving hard. I logistics we and hopeful logistics challenges as to are business well And comments, and our and

we So will not wait.

we both inventory, at pretty really darn we the We move And extent down. quickly. have happening, good been and things that will up managing to see

Alex Silverman

Got you it. Very helpful. Thank much. very

Harvey Kanter

else, that want your the interest call in Operator, the we I much for and everyone and thank end exciting interest. for to call. Well, and this If of support nothing so just the there's opportunities ahead. hopefully looks ongoing thanks can listen, their like yet DXL today


participation. Ladies that for and call. concludes gentlemen, today's you conference Thank your

now may You disconnect.