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Sleep Number (SNBR)

Participants
David Schwantes Vice President of Finance and Investor Relations
Shelly Ibach President and Chief Executive Officer
David Callen Executive Vice President and Chief Financial Officer
Peter Keith Piper Sandler & Co.
Robert Griffin Raymond James & Associates, Inc.
Bradley Thomas KeyBanc Capital Markets Inc.
Atul Maheshwari UBS
Seth Basham Wedbush Securities Inc.
Call transcript
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Operator

Welcome to Sleep Number's Q3 2021 Earnings Conference Call. All lines have been placed in a listen-only mode until the question-and-answer session. Today's call is being recorded. [Operator Instructions] I would now like to introduce Dave Schwantes, Vice President of Finance and Investor Relations. Thank you.

begin. may You

David Schwantes

Investor sleepnumber.com. welcome Please Callen, XXXX details also and to to our financial will us. the just this fiscal at Sleep of Corporation a call. the or telephone financial and being Finance refer Number am the our Shelly access to may is today Good our conference Chief results Ibach, conference to is release certain of call available Financial the news call. be supplemental of that for website quarter this President and of President earnings release The to Schwantes, information and joining and be With Thank news third primary on me our Dave are in David the ended. afternoon, period CEO; on discuss Vice the included release replay. Relations. purpose non-GAAP our refer you Please recorded I and This for reconciliation in measures news discussed Officer.

over in earnings forward-looking release and and commentary certain may uncertainties XX-K Shelly include detail of results The call filings are These Company's now for in in may a will and actual her forward-looking your statements outlined our vary questions our responses subject on our discussed risks to and to However, some to statements. number annual news with report the Form turn future periodic comments. other the SEC. materially. I

Shelly Ibach

health and purpose is our XXXX The the and performance. quarter. of during through than third SleepIQ evident was night. XXX,XXX score improved more to line improve value of sleep lives Good quarter the My record quality society afternoon, Number XX Sleep and third top We in quarter wellbeing our call. bottom earnings higher welcome our last to

today's Before takeaways sharing highlight in call. detail, three performance for greater I'll key

quarter of sustained including drive our double-digit market third to share beds, demand smart demand delivering for fourth our continue life-changing consecutive growth. and we First, gains

environment and supply how shortages implications leverage to sustainable QX we demand proven forward. initiatives in record as our profitable going our to I'll financial results operating this continue chain robust global strategy challenge to business. key the within deliver advance in discuss producing are third, Second, growth. disruptive we navigated continue And

Third XXX% sales versus quarter higher expectations. results year our and per higher third up share were Net from were XX% than exceeded XX% than prior XXXX XXXX. were and our earnings up XX% quarter $X.XX, record and XXXX,

was quarter global the particularly Our chain given third significant supply gratifying performance disruption.

for Sleep again of made power to Our teams' record share service and than Number greater our agility results teams' more performance total our enabling $X.XX the Earnings beds. advantaged our difference a year-to-date the growing our XXX double XXXX and dedication, smart for execution. XXXX the once meaningful of model demonstrate tenacity stellar The than demand our and financial of is months nine business annual results year XXXX first per life-changing EPS.

versus at results XXXX. are than our record basis We a heightened million business in intersection prior more our year QX XX%. semiconductors the strategy, the of from points by XXX a up shortages technology, at continue deep operating a our of points a affinity and was XX-month are net problem rate the with challenge a be brand model and associated from positioning levels other up of electronic Year-to-date of business unique consumer demand, components and for competitive ROIC $XXX strong leverage profit operating XXX and across wellbeing to our and With us. clear efficiencies became for and These driving being execution. year-to-date basis trailing XX.X%, cash worldwide operations driven with with

levers vertically-integrated chain environment the in unpredictable exclusive current are our across investment supply product our of years sourcing, we the impact service sales operations, utilizing in mitigating testament multiple and to performance of constraints. fulfillment, the design, By a is this direct-to-consumer Our business.

us business trust we with earned enabled relationships. to has Our teams' model and supply our even demand minimal our customers' with have to also dedication built our shape fulfillment mission, manage enduring inventory. And and

As a and impressive profit inefficiencies. the leverage generated result, we input third despite cost net quarter during pressures operating freight

reduced the tight Over relationships of to align the set increasingly strong near-term. component inventory shortages in electronic built but we suppliers. the years, with help an supply have partnerships scheduled These and our of additional contributed diversified sources deliveries, with have haven't risk

brokers, in tier pursued We third and aggressively shipping of with tools employing other airfreight. range market bots digital a including including suppliers, expediting solutions, second and have working directly

In suppliers, component addition, and applied components changes. alternative validated we have product new certified quickly developed, and qualified

and promotional planning increases and We delivery additional through delivery managed thoughtfully increased demand have communication, over and through selling price home and expectations our process, implementing shaped time. staffing customer

we and We multiple electronic companies long-term, sharing as initiatives global have also partnered large top-to-top key within strive consistent proven integrating advance continuously outcomes. sustainable creation. near and strategy and for demand technology with We resources our for our work use levers the and for

which driving growth driving for lifelong growth quarter relevance wellness year's robust advancements XX% quality also to lap media, customer Our are brand we last and of strengthen and nearly message as repeat quarters and our the capabilities experience, XX% customers' Both digital initiatives customers of and and and demand digital Automation new media our increase. engaged digital and include Results are improve at real by technology and ads by a versus in-house level. include produced four growth. the storytelling to consecutive engage, two-year SleepIQ actively ecosystem demand record engagement, sales leads Levers record improving builds and demand which platform and third which and engagement of time, XXXX traffic, to is are personalized attract relationships. existing audience drives trust. personalization advocacy in double-digit record referral customers innovation to digital NFL

levels. which survey, all to our stakeholders. at for commitment global is intensity, measure challenges This engagement their to pandemic. Sleep improving passionate best-in-class which measures a many with about in stay and shows life of In effort intensity, this Our we associated highly up our overcome continue how annual are their Number the intent with teams performance teams' engaged and were our

targeting demand leverage full-year per of earnings are constraints. strong and impact XXXX our and supply of chain the We reflecting share $X.XX

We continue quarter to employ performance. and refine the fulfill deliver and third that to exceptional the strategy effectively in used demand were

our can However, when could the smart timing beds. deliver elongate components of ultimately receiving electronic we customer

have chain we that result, through have from it's component deliveries electronic first the are fourth possible QX deliveries expected of commitment Suppliers of supply a a will likely into quarter As current year, for XXXX. still indications than quarter next made continue there global as stronger will shift that supply issues had in in we've improve Well, XXXX. the will half levels. back

planning by analytics. the more is is supplier enables hallmark and data strength understanding decisions management. actions Digitization both to already favorably behavior are their addition, our and purchasing a and output ability immediate the scaling term, This to of are In impact Operational in responsive supply as necessity their of scenario progresses. informed chain customer initiatives be the Sleep expected year the essential future. real-time Longer Number. and to

through Regional intelligent speeds end-to-end to to disruption. essential assembly to multiple weathering suppliers orchestration connected tiers Relationships delivery. with from allows customer are manufacturing fast action. Moving from

effective Very Angel environment, we are we and supply X. Mendez our Phil leadership dynamic our our design will transformational and Board joined adding customer-centric As Eyler chains two supply who capabilities. strategic January global prioritize chain a global and experienced directors, augment purpose-driven for Board's

value and of sustainable vertically ongoing stores We superior drivers improving business our to while of to resilience into single-digit high life levers for life-changing of retail all grateful purpose demand exceptional am including growth for mid-to-high XXXX, teams' I passion online navigating our uncertainty new our are to driven initiatives, and advancement integrated our support and innovation, for digital leaning proud our rapidly in and The expansion their changing deliver the conditions. extremely evolution. XX by action, stakeholders. And XX and pricing utilizing incremental accomplishments, ecosystem continues of demand our strength

and David financial quarter our Now provide performance on additional XXXX outlook. will details QX third

David Callen

strong. business remain amid fundamentals great our The out Sleep in global Number. risks best Shelly. COVID Managing the companies like is disruptions Thanks, of bringing business

are lives year. straight XXX goal beds The ingenuity and common our and smart steady driving financial four exceptional our because improve in embrace resilience double-digit proven embedded strong technology driving sleep. we our teams' is quality to through into Our demand performance now growth

demand our creation than more net has fact, exceeded sales In year-to-date by our million. $XX

the Our are also orders net balance double-digit These creating QX the at costs. enables and in sales. ending that and timing was our future uncertainty electronics to the backlog smart QX. in comparable growth Unfortunately, provide fulfillment, demand of steady end confidence booked technology

and benefits highly are of electronics constraints are While we supply Number. Customers life recognize Sleep enduring. this we beds these differentiated smart are improving our know believe choosing the temporary,

indicators engagement of referral rates record and for low business cancellation all our Our passion customers' Number Sleep scores and repeat innovations. are

supply gaps timing million deliver resulting sales call with rapid in very electronics target, of deliveries pressure the challenges on So teams we working of $XXX they supply some QX full-year expected. delivery of has supply teams as previously directly large actions net cost electronics weekly our open what on our These misaligned deliveries to record EPS reducing are windows. directly and has demand, versus in noted expected million $XXX to in approximately in from We changed? The vendors in earnings sometimes QX, our decommitted been deliveries To abruptly longer open our after that chain these The QX. enabled were the electronics August, layers lead versus purchases. supply $XXX in two and against been released Since have orders. QX. Like supply closing some times. million our support deep purchase three resolved QX market achieve recaptured to our need and electronics them higher through QX three

and to Our teams lives and more improve results QX all deliver many ingenuity are tenacity, applied in QX extraordinary they employing beyond. passion to the

sales deeper solving and expectations exceeded earnings outlined our problem teams. a up performance QX were QX that and net Results versus look XXXX. over the QX performance during XX% XXXX XX% record take by to due at our the up we call Let's now. resilience

following Rapid profit as growth $XX to two-year components, levered profit sales components QX to from points XXXX. our operating with million year-to-date Year-to-date, to increase of margin base rapidly is deliver input XX% net infrastructure electronics about new came performance increased to alternate profits, metrics of cost we two and schedule Since have have for just COVID XX or deliveries e-com XX.X% XXX years tools X% of our results stores, and decline cutbacks Operating more comp costs from margin. labor and reflect phone in points. and up in XXX% points our basis XX% yet with digital a than ahead XX% smart X% electronic growth gross business and new of $XXX sales coming XXXX since XX chat an shortages versus rebuilt that's back. margin significant pressures. in earnings operating XXX offset of For ship example, XXX ARU, of X hadn't basis $X.X vertical than We the sales and integrated of inflation. $X.XX flow this buy employed points with than QX QX XX confirmation since we XXXX EPS FlexFit and net is emerging August, operating historically. with more throughout efficiencies absorbing higher sales basis also increase than points two-year net XX alternate units incremental in we supply validated resins launched while XX% billion, basis exceeded year, whom million of XXXX, than from higher of of QX from one-year X of and expectations XX.X% through. is and net and point last our stronger pressuring points XXXX, seen beds delivered XX% produce over we up points margin gross more in days.

across gains annualized of benefit are of pricing leverage while business. $XXX digital volume pressures annualized with $XXX cost continuing million We million to the and actions, from efficiency offsetting

levered versus This from units versus XXXX. year-to-date to synergistically XXX marketing deliver For XX% integrated ARU points and growth highly and our to working X% year-to-date basis up example, respectively selling through we XXXX. have costs and growth derives both drivers

store One Specifically, drive including volume. is to our since average TTM tools leverage process XX% per retail more interconnections million and across resources sales and the digital functions marketing in significantly point point $X.X up efficiently XXXX. this proof and e-com, sales

We is component marketing through solutions $X drive in over retail ended productive that year while and the two stores stores These more expect the digital in XXX. two-year $XX The is our up provide with Another in sales XX% half profitable highly and these Investing continues through disruption. and the XXX TTM year-to-date comp assembly retail about invested generated like number manufacturing our stores of million innovations, include in than create that end quarter performance acceleration XX% years. value creation and steadiness QX. growth. million expand in through like the to with temporary and P&L, electronic R&D investments time, enable to navigating expand the capital and reach, direct spending capacity year-to-date to spend to

tax and term, more Number million. is Still, Xx a for strong This liquidity, Number, just business maintaining shares. than leverage with basis we relatively of XX% deployment capital the capital $X.XX Longer million with fewer in two average strategy investing XXXX nearly X.Xx a leverage investing offset priority in value Execution debt ratio we equals stance we final headwinds shares the Xx conservative the the Our two-year With leverage Sleep combined. deployment to $XXX we and X.Xx lower our of year-to-date see XXXX is with XXXX QX weighted repurchased ended EBITDAR. performance and operate of and year-to-date of strong of during stock expect and our all year-to-date. of million Sleep interest XX maintaining to rate of years are of our our repurchased costs in $XXX earned EPS have EBITDAR. After $X.X $X.XX outstanding year-to-date points income ago. disciplined net

conditions, debt Given the extending banking the are our business opportunistically QX. we rightsizing growth in in currently favorable and here and strong facility

a the earnings challenges, enabled exceptional million total navigate similar to increase with term expansion. $XXX conditions. driving We has expect and to over five-year years our levers $XXX facility to by all our renewed Using million while us performance

performance. demand XXXX, business will our the long-term to in and As the the for in employ we $X.XX target We tenacious across EPS its business we pursuits deliver efficiencies of supply strong generation, and confident remain operate fundamentals.

growth single the operator, term topline questions. We digits longer At expect growth of continue please that point, EPS. open twice to lines mid-to-high in for this with

Operator

sir. you, Thank

question We Instructions] first Keith Sandler. comes session. begin Piper question-and-answer will Peter [Operator the the with Your now from of line

Your open. line is

Peter Keith

on Thank quarter. the and you. results the for got nice $X.XX. here of Good guidance afternoon everyone We've for couple a questions

$X.XX. at like out pretty of with seems are a the least but demand kind So you change, it's subtle strong. trends took the words, to regards It

function it's kind of the a XXXX? there into has potential some two-part change your So, the at carryover of question, and been more the of removal any in just some is a demand backlog expectations least of of and

Shelly Ibach

sufficient by Peter. what certainly Hi, the We're deliver for demand We to a Thanks and number supply. just electronic Absolutely, than constrained higher clearly you Yes. question. have the described. $X.XX. backlog

from quarters double-digit it growth. and third So quarter a double-digit is consecutive the XX% demand with XXXX four entered growth of We here delivering timing and here third with issue. QX demand lapping the strong after in that's another

on bullish we're our demand. So

Peter Keith

Okay.

of just like maybe questions the backlog I Year. we've so too some And on New the sort going had implied into guess,

implied have So carryover like $XXX estimate to you and into be you fourth said at QX backlog $XXX million, would an you wouldn't revenue then on recognizing I how quarter? the in much million guess, XXXX

David Callen

the to going is hard but don't to year, we sales say about that's – net would we are that order delivered, year one been yet about our net magnitude $XX added know excess to to highlighted probably to be very of this we sales. what million say, yet what as I'd full net point up Peter, our actually gauge, the because say about demand demand into the some came addition exceeded our strong would million we've I in that's year. for sales $XXX at through. of talked equivalents and equivalents haven't where that in a that I I tally come That's going

Peter Keith

question. That's right. all in to sneak one helpful. more Okay, I'd like

that you caught a in growth demand throw XXXX attention did on mid-to-high single-digit. just of Shelly You comment expect my that

to that exceed estimates some may out give So more you growth top sales have there digit, say that low your for guessing that of you pricing demand why growth and unpack understand some a us – maybe look high-single sales level double-digit. we next are I'm of help us year? Could maybe about bit so just maybe probably on out enthusiastic the that would little as today be current you'd to

Shelly Ibach

this digital XX% the since Well, part pleased initiative each time around here then we've been the just helps advancing us strong and all we're of We've quarter. And demand. key is of within AI with a engagement, progression. had in how capabilities we initiative and it's had each We ongoing strong. smart quarter real really ecosystem, quarter fourth in gives such clarity the remained QX. It lapped innovations the continued the quarter. strength in-house we advancement and every beds Peter, And of first the the The demand the this and dry in transitioned the that the formulate growth demand. us to have consecutive consistency we've quarter

back pricing, evolution. said smart about for initiatives, Going online that XXX what I XXXX, and the single-digit retail growth was ecosystem the and expansion our I speaking to digital mid-to-high about the innovation, includes beds demand

Peter Keith

Okay.

single? include make within would mid-to-high the sure to pricing that So

Shelly Ibach

Right.

Peter Keith

it. Okay. Thanks clarification Very the good. and for insights. appreciate the I

Shelly Ibach

Thank you. Absolutely.

Operator

next Your with of from comes question line Bobby the James. Griffin Raymond

open. is line Your

Robert Griffin

supply questions a afternoon, a difficult chain and Thanks environment. in everybody. on strong for Good quarter my congrats taking very

Shelly Ibach

Bobby. you, Thank

Robert Griffin

shortages to touch is beds adjustable are and talking things what other happening, are for a the some [indiscernible]. of help on include very of in where visualize impacting. So on parts up what adjustable technology side your the electronics it to your the getting of parts it of I the controls electronics motors out is I – just hung lot it's it guess, just there are you're I about, first, the wanted at? Is you that mean, common and or it but products bases beds us the that

Shelly Ibach

the our smart main and with has semiconductor and Well, smart electronic challenge beds other associated been components bases. chips

Robert Griffin

Okay.

as some So mattress components well of as adjusting smart both, so the inside bases other itself? bed the for

Shelly Ibach

Yes.

Robert Griffin

of XQ, helpful. balance had down Okay. we comparable I on backlog you those you Dave, mentioned That's the just the to when I quarter-over-quarter and include to the customer know the financing deposits look want side sheet, business. then And clarify, don't but

a little to get can we backlog? it demand, worked deliveries of but So from did the quarter a outpaced so this actually you just directly, quarters, ask funky different down little

David Callen

on why No. backlog I one providing, the that's of offers of of – and QX happen, the was the we're And of the because making QX to was with both at things of That that our orders prepayments. dangers compelled customer the fluctuates number the based when assumption say that that's terms is kinds comparable in end the the of delivery. to timing

So perfect proxy it's not backlog. a for

Robert Griffin

there? shake sales kind of out what's fourth flowing and is in Perfect. in Is quarter doing year. And clearly and you when compared was on XQ you There's through That's where gross pressure I or EPS kind to That's when marketing up stepping you inside media Obviously, about coming get still from just extra for that on benefit. anything another an investments look of helpful the margin, the and expected there afraid helpful. are is the I back to me That's round, happening last $X.XX that EPS implied last implying? you to why there math. leveraging clarify. to the guess into be or to guidance but as had lastly week, year the some side,

David Callen

effectively was results additional do $X.XX profits our week QX, year gains that We extra and we Well, in the adjusted the cost on last getting. to – pricing benefit some and the is overall efficiency that's from gross actions in think, efficiency strong last and P&L operating rates relying deliver What performance. the that from pressure that balance how total sales temporary, our reflected through expect from Bobby. we're we've we the marketing out our we're into we gains on as rest margin year, pressures out from did I of with the we're our the leaning taken

versus We Bobby, consistent we how expect for more the year, margin XXXX. basis operating deliver XXX the to full-year started than expansion profit net points with of is still

Robert Griffin

luck Okay. I an details. in appreciate the the sneak me extra in fourth here let and And one quarter. of best

David Callen

Thanks Bobby. a lot, Great.

Operator

comes Brad question line next with of your the Thomas And KeyBanc. from

open. is line Your

Bradley Thomas

is back that with to margin. Hey, good gross guidance David the targeting, prior clarify, versus for I Dave. and Shelly, the the align you're to remember number? the guidance, afternoon, taking question. Nice into how my results ask first and XX% does sales Is that growth want which Thanks $X.XX guidance, if $X.XX on at Maybe correctly, that I to just demand. so that XXXX. was and

David Callen

for top Yes. $XXX that gave supports us million It million the in $X.XX. of you is the that the – $XXX million and $XXX to QX sales on to I net getting

Bradley Thomas

is be components Great. number And question or hitting know line may David today of would the – beating more of in to or more of interest? early I sight quarter, on but hit of get do what color the line sight you or you is that to possible in that have still any your it's that – to that it number

David Callen

deliver question the the weeks QX, we were record saw quarter. idea to last going in for had in happened including we and results just that August – our overcome in ways like deliveries eight if was resilient of found in and same we yet to happen teams you'd record challenges and time, supply needed got QX, those no what the me the asked to at Well, point

that year every feel we to every some call, quarter shift deliveries of come As year, her we QX. lever too get could as a see relative is for half there. to into it's the the we're components about cause in components supply then day, back Shelly next some our between are We those but single in the and and that highlighted late working her in great expectations in here demand But there comments, today, Brad. solving and misalignment the possible

Bradley Thomas

then color. your productivity think helpful just thinking insight margins really That's a into about the an and margin of it you that at margins element your you know how more to a bit today. little you seeing high product are gross And can world your in level, just help product have the could sort share but about stores so of leverage I how of right many of strong given gross a have we're higher can inflation now? margin, areas you

David Callen

that there we example, so question, I the time rate that if affects but different give us our are operating Great than for gross mechanism – Brad, give love because and a that in affects It's trade-offs affects greater that greater expenses. we between, of closing financing. discounts and our make P&L and we margin parts and our all financing also it discounts

or people the seeing total, into strong. what store to with efforts, are working the the the drive at on are the level. converting to e-com all business. together the into in So then we process, innovations and The high we're the love website – very very fundamentals on The selling platforms marketing to

way about fundamentals the and the the performance So excited really all business. around of

Bradley Thomas

helpful. much. Very so you Great. Thank

David Callen

Yes. Thanks, Brad.

Operator

next UBS. from your Maheshwari with is And Atul question

open. is line Your

Atul Maheshwari

taking Good a questions. Thanks my for evening. lot

just revenue guidance $XXX to fourth the million $XXX on So clarify million the to quarter. for

the has supply you be or range hit remains improve will supply it for able to range? or to achieve that will rather you to the even is So that if that range for constrained today achieve to you as

David Callen

to to QX a finding This great and was week different our in of what teams our and our I pull quarter to had terms customers Number single solutions I homes. similar of benefits customers' deliveries. answer, have my with keeping of are in into levers as to very our into that mean we give some we are line sight previous life support earlier to of day, did in supply the have I and is the smart – to deliveries highlighting in are beds working Atul, magic, Yes, Sleep every working QX out, improving our getting do and shout

Atul Maheshwari

– then like fourth to And EPS of the it guidance little Okay. a the it related in the more quarter bit even $X.XX, next out seem does on like week, extra quarter. backing seems third the pressure even

So more in sources you are the quarter? so, inflation the if in are baking those fourth And what of pressures? cost

Shelly Ibach

Yes. Atul. This is Shelly.

the Just electronic have supply our our – is constraints much constraint the the demand and quarter are backlog shortages. not. number constraining for our actual we but constraints to due ability fourth the in that quarter, on to highlighting higher Those inventory to the deliveries certainly sufficient deliver the our we fourth a in is

that's we've the would smart of constraint to the drive and the the what what hit we And taken moved demand of overall in do leaning us you're and improving in the performance focused value quarter, on the fourth quarter we're constrained $X.XX So benefits have because of that quarter that you expect and to seeing our being some fourth and fourth QX. supply – risk our that's the the to customers course and target. out in to long-term that our ensuring this the is for continuing from over yet of and from very beds on as our life benefit we're into demand drivers

David Callen

year comparisons add QX. thing, cost and more into infrastructure to Atul, taken let pertains one you're XXXX, and a as I me we know when don't year post-COVID yet was comparison, only and our as I rebuilt the cuts QX had just QX whether it through we making hadn't last but highlighted to significant

for XXXX in expect XXXX. all over QX we've said long operating of we've versus done increases just performance quarter like each We expansion we top as and year margin profit line expect XXXX and bottom

hopefully you that So helps calibrate properly.

Atul Maheshwari

and good lot Thanks the of Shelly Dave, and year. definitely rest a That Yes. helps. with luck the

David Callen

Yes. Thank you.

Shelly Ibach

Thank you.

Operator

comes of line question the Securities. with last from Basham Wedbush Seth Your

line open. Your is

Seth Basham

one two good earlier ability anticipated? a on to gains them presume, mentioned, guys a are are hoping just that you volume-based? little that than the afternoon. lot they're color and efficiency be to I Thanks what into, leaning and not the items bit drive I more can was specifically just get what you those

David Callen

more our are creating doing and We're tremendous demand efforts for with insights that. volume I can marketing between vertically those to store of XXXX store productivity, I that's a two those with highlighted examples lifelong are, the given sales We've we way and business that's pertaining with than XX way a $X.X so of per our that's more more sales as per amount those customers been to specific way of they're generate than with going best comp and and XX% that starts and then resources integrated because more stores driving share lot half is processing it been, Seth having gains. comp trailing average significant set Well, since million including store resources. platforms volume we've a in of in the synergy we and selling leverage the highlighted to $X being our up across and volume incredible the e-com, engage generating million a efficiency month relationship. that digitally your that's

Seth Basham

of secondly then how pressures. of broad that timing offset What's base And Okay. and some they? cost mentioned actions the the in those to terms you of the were price

David Callen

one the one and pricing are were we the was they've actions and took offerings product three during across in They July last taken been that was week. One there the just year. spring, different we've – in

Seth Basham

to the that relative the upside going the those seeing dynamics the versus now. Correct? it, growth at recap, points of in And you're because some least, specific sales and to of XX% in rather Got environment just less earnings you're for is to guidance now upside, likely just okay. prior talking your than of $X.XX plus, XXXX

David Callen

of on I kinds just again, not We efficiencies demand It's I'm plenty did had yet back going supply electronic that we just yes, and demand, of Well, what business. record to there's make and there's to challenges our dependent because QX. the in comparison plenty really of and delivered the mean, in similar performance.

opportunity to upside the So pragmatic $X.XX. targeting is for it's us just to for like still appropriate and there. call as feel it deliver We us

Seth Basham

you, Thank Understood. guys.

David Callen

Okay. a lot. Thanks

Operator

hand company will And remarks. session. now that closing concludes conference the question-and-answer the today's for I to back

David Schwantes

quarter big. performance Thank fourth February. with look today. forward discussing XXXX and dream you We our Sleep us you for joining well in to

Operator

joining. for you today's conference this Ladies Thank concludes and gentlemen, call.

now day. great You disconnect. Have may a