Henry Stupp | CEO |
Steve Brink | CFO |
Laura Bainbridge | Addo Investor Relations |
Greetings, and welcome to Cherokee Global Brands Fourth Quarter Fiscal 2018 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded and the company will not be taking questions. I would now like to turn the conference over to your host, Laura Bainbridge of Addo Investor Relation. Please go ahead.
Thank you and good afternoon.
the Officer, Executive Steve be and Henry will Financial Chief Brink. today company's Officer, Chief Stupp; Speaking
You can find Cherokee's Investor accompanying slides for website. today's Relations call on
Before statements. please to call, call information I on certain forward-looking that this management, contains presented hand the note over
neither and nor a are assumptions. competitive or information future guarantee available currently prediction based are and and on a market, statements of events Forward-looking circumstances, operating, financial,
call material are The results including manner statements Our is that, as a financial listed of the from and measures Henry Please expressed such company's information that I'll term measures performance actual in posted Chief a of past And includes results on SEC forward-looking reasons, in these to Executive could call forward-looking is that in assumes in prepared hand to guarantee website company's company's discussion for the future a any Cherokee's release, company accordance in measures, no those Stupp. conference financial the differ at in such with Officer, over non-GAAP defined statements. to directly The GAAP Further, update results. note not those filings. also obligation any this www.cherokeeglobalbrands.com. financial GAAP, the non-GAAP earnings included reconciling which financial is the comparable most Regulation-G. with
both the in him leader, and of Brands, private apparel financial our in more couldn't He’s Cherokee who pleased Steve recent several positions served at Global Chief speak companies. global Officer I today and Cherokee in highlights on first industry introduce has us you thrilled developments with with update experience. to corporate proven management we to senior a an On Brands. Board and Laura, to to moment, the It’s afternoon but Steve a of good many on pleasure Thanks, with public be Brink Financial extensive as behalf in I’ll am our positive a Directors have everyone. you joined get team. Global January.
record shoring As we prove global look running towards brands and our has next invaluable. track plans. year established and a leader financial M&A controls at the the will the within phase extensive a since, He’s and ever Steve financial you'll yourself heads up quickly forward financial hit capable been few himself hear ground our growth, of in reviewing down our scaling Steve's moments. as organization, as of for beginning and our of experience thinking
our accomplishments new come. our touch partnerships years the everyday before legacy retail share remained today our I and business to on revenue into It’s a foundation is points. Brands to we US attrition geographies, drive ever of time business highlights portfolio, business our to and is the navigated corporate that a last an Brands the that and quarter. be disruptive Global will no identify States. mission spoke, Knowing than way, and diversified our store base models built that Along several share developments. some customer we've for brand key across and in revenue we headwinds, broaden will been since we since steadfast pleased Cherokee strong categories, diversified that for channels, Global will I'm Cherokee balance in to secure pleased consolidation have more the partner despite that streams strong new last enterprise. including the build a global consumer Turning streams United am a We’ve Still, introduce further forward. our hurdles, to environment attention and retail a given, longer a and embarked of mission reality, Cherokee loss growth
Despite ongoing global with highly While new complex transition partnerships and we’re track including our business acquisition, licensee and the know and Refining for growth retail Cherokee we’re on several to we now challenging in we're these as gains, years expansion. models, a our will disappointing we're global domestic we confident that important steps executing results Brands our financial we for which to completing foundational taking have to Global still of drive all base environment. been an come. do, goals, have and work
our more Specifically, potential high actions liquidity on controls, detail. financial focus unlocking increased these emphasis trends. on our the discuss in and growth our improving I'll continuing of
controls financial additional the and and accounting practices. On has Steve financial our accounting team, front, our to introduced improve
last year, and will planning we on revenue leadership Steve financial financial disciplined shortly. share are to forecasting. more a the detail we’ve team Over and approach this bolstered taking our more
business our to Turning platform.
flex We and shifts portfolio have priorities. industry major differentiation represents allows which of the unique our and and to capabilities us partners’ navigate of our platform, support dual to points market premise
Our will that brands. equity continue portfolio XXX goals the drive for degree have set platform to high of we our
Hi-Tec brand for have the diversification, we indirect this minute. In I’ll on expansion. in new portfolio, Hi-Tec with focus more of Hi-Tec our the of front, On brands, products the distributors. through on through aggressively pursuing category opportunities the keeping and revenue fully sales primarily portfolio and share eliminated we’re a integrated geographic
into on, identified lifestyle well underway. rapidly that apparel and the early growing to we and segment end, we're that casual opportunity pleased major our accessories example, as For a expansion is
parlaying to take of burdensome steps focus scale, place also model we the be focus indirect positioned value paced lifestyle agility, on environment, multi-category fast to business we've fashion the our In and this advantage from We to unnecessarily business an for align model. perspective. taken a we maintaining footwear legacy retail business Hi-Tec on building high sales global casualization momentum proved we with are business a on Hi-Tec’s opportunities. as well into To also see
full International away by business. licensing have sales Ed it in favor Executive indirect is core we’re model led the Hi-Tec will transitioned of So from over term to long van the Group, pleased take and strength. Wezel, that our Hi-Tec Brand distribution
attention focus in streamlining on is licensing SG&A goal and focusing we expansion. our well it reducing head operations, lowering and to our positioned resources, of us our allowed as So This count. to good has further our hands scale,
same We cost have improved structure. priorities. outcomes brand strategic a defined headcount including At and looking seeing clearly and our from concrete significantly streamlining are this time, portfolio the XX% at already we're our in transition, reduction
Our protecting that is our align longer growth these with scaling focus We’ll and are to reducing making providing support. development to of priorities, to with particularly sale debt. private lastly, our partners, on are growth by preserving us brands better our new that drive further overall our existing And leveraging brand portfolio. partners, our platform assets portfolio improving core brand while brands no and dual liquidity while to while relevant high brands, opportunities divest explore with any we
without fronts, product differentiation brand go platform where well they yet meet to we we heavy time. business lifting, Our challenges, portfolios positioned been of enabling weight development and recognition want our with both and retailers never do, to flex next. distinguish to By are thinking them the their retailers benefits get they to regardless national This relevant where scale has marketplace, to vision, dual not they its assets retailers model help how are are as agility capabilities. we in XXXX on offload and us brand was allows Fiscal improving and margin to brand financial portfolio they any private as given position. seek balance the Their continues brands. the us inherent our more bring and our to that with both in and
We in have a place. more experienced management team
is cost structure Our controlled.
have efforts a securing his pivot role, strategic our Our financial outlined newly models brands, best support this licensee the the brands, across on our as integral of Global In solid Brands marketing Cherokee year. to partnerships built we we has deliver seamlessly we for invaluable a Conway earlier, her stability. retail overseas Steve our accelerate XXXX. you supporting now work greater Mark class relationships. marketing, Vice development and growth. management to to are and and business Chief last Officer penetration manage the Mark responsibilities, Steve I allowing to our President I’ll us been and role scale business to integration in a financials be and With relevant Through solid view combined brand fiscal our energy licensee as and outlook Iacocca support development e-commerce to foundation and licensee over complete, appointed infrastructure with is hand involvement we've tools of business oversight ready impact new global and well Steve? other our on points, global towards Marketing. news, these and Mark that, review base. In all on update in already a of our detail, his to efforts, is has organizational goals. and To as Global be call brand team expansion the will Brand touch positive customers our Revenue of created focus planning, our and diversification retail Mark making total late spearheading development, will and worldwide. and will brands as categories, accelerate our Nadine’s these will of Nadine appointed experience to
so It's It's lot our today. great completed everyone. sales significant few financials. which our of has to there's Thanks, a I’ll with we Henry. cover impact in be to been and start Hi-Tec January a transition Hello a model the busy here months, today. on
full And year lastly, in I’ll the along with results, explain outlook outlined fiscal our I'll and cover our for Secondly, non-cash ’XX. impairment quarter release. updated fourth charge today’s
So model. Hi-Tec’s conversion let's the start with sales of
that Hi-Tec completed royalty Brand distribution our the Hi-Tec to model sold quarter company when Group, International remaining the a the ’XX, today’s of the business operations January licensed IBG noted at sales time. a we past Hi-Tec transition to the most we for release, the this sold converted and distribution fiscal model and As short. were in When royalty of to fourth acquired in business of
America, were product Asia Latin and we Eastern distributors in However, Europe ourselves selling still pacific. to
is previously sale we have these transition been on to P&L IBG, they to these the are model. effect in sell these in earn for of royalty distribution goods The our territories With also indirect financials. sales IBG sale royalties. in a business licensee has operations. territories, our classified notable This of as product now now now our a when cost and and converted discontinued territories this sold reflected
corresponding and You our sheet flow balance our re-classifications in in statements. will cash also see
sales. in Going forward, territories, product no these P&L see only royalty you will from our
mark in licensee in this a now of transition, We restructured have our team our also in headcount expertise, Group business and in was brands impairments portfolio is Pacific overall Brand that’s Latin with a our and With significant we cost trade territories. XX% its on a International Asia and reduction discussion its sales more IBG Eastern the new operations Hi-Tec bit business. America, plans in and Hi-Tec distribution The and Hi-Tec technical. we a have that part grow a solely Amsterdam. history around As global has result focused tremendous The structure. to licensing the reduction Europe
information, accounting evaluation instead impairment is basically book standards, Indefinite fair line the is the annual we than used Flip overall to accounting test. less is four amortize our trademarks. Everyday cash Tony results annual was compared of latest and impairment the California. As The a trademark, model term these of the goodwill fair current in impaired, trademarks of based don't and we lived required flow which but significantly cap. value in value our an year related generally revenue test on the in of that value brands market indefinite a point lower starting Shops assets, an past. under specifically estimates the cost do projections this that have current These the The lived estimates year the calculation conclusion that is the specific perform trademarks Hawk, are on Lange, were with our based Flop our intangible projections, and when to charge necessary discounted of be means The were Liz to this
we recorded So million. non-cash $XX.X of a charge impairment
trademarks also not indefinite brands We Magnum such as impaired. have other lives and that are These are Interceptor. Cherokee, Hi-Tec,
Shops and the related Tony amortizing Liz of value California. Lange, the Flip forward, be Everyday remaining will Flop Hawk, trademarks Going we book to
our was million, million, to year. to prior partial $X.X million results up $X.X This quarter. by the quarter. offset decrease let’s revenue million the increase Cherokee quarter the of $X.X in compared were financial for prior included fourth Hi-Tec, Now quarter for decline partially Magnum and brand which revenues the from Interceptor, to turn Revenues the in compared the in $X.X the was fourth which
that acquired the quarter You of may the middle recall fiscal the of fourth company in XXXX. Hi-Tec
with previous direct in the quarter full the this fiscal to to partial been the model. Cherokee model our Cherokee we DTR a in fourth product fourth the wholesale United traction believe new the DTR others. The when manufacturers from a royalties We to distributing our brand in its quarter fourth our and in are So had partners e-commerce results Beginning with Amazon, of ’XX licensee in used now from license retail Walmart.com reflects major a Hi-Tec It's retailers who to these goods new earned grow they’re a ’XX. but US products. our from have in time ’XX, brand brand revenues a Cherokee quarter primary decline we will the various as in agreements ’XX, license platforms, of ongoing transitioning licensees fiscal royalties from in Through company that only is wholesale has compared quarter Cherokee customers. number licensees to and the and experts transition the partners end substantial and begins transition, with ended, including agreement the to wholesalers sell fiscal Target US, fiscal get agreement These these the company States. been their categories retail of years. Target difficult with the license over in
this Liz half Lange Liz transitioning fiscal to our also began on impact from in latter Cherokee of royalties, also and now has the Target from our declined. revenues brand addition its In royalty ’XX, license ended. DTR away products Lange
Now let's at expenses. look
our separating You'll various we’re our the operating that in expenses. components see P&L out of
represents the operating what’s non-cash I earlier. and as amortization general such expenses. charges, also to the and mentioned see options to stock stock item charge and and charges and warrants, easy easier now restructuring and it’s see our expenses not, what’s So administrative depreciation impairment normal continuing Selling, line
the prior basis, that in fourth significant compared basically Hi-Tec quarter full in quarter on the the fourth forward. increase before. align the our is year million due is year. took having to quarter only quarter to SG&A which our We of for year, this $X.X some partial going in better the This with So for the expenses fourth quarter our was steps the to $X.X needs results million,
So SG&A in number quarters. we to lower future this expect be
also $X you the charges see steps Some severance P&L, in million our in fourth ’XX. in people those headquarters. and quarter of the our Amsterdam resulted restructuring US fiscal This was includes in of for which in
and acquisition costs to the in Hi-Tec in in related the the fourth quarter. our reflected item continued line quarter We integration expenses the incur Those to and total, acquisition cost in are business integration. for P&L, $X.X million
$XX.X of on quarter non-cash the to reported the charge prior notable forward expect other behind non-cash with our impairment in charges, million, impact in these and warrant costs significantly for loss fourth is to These a ‘XX’s in and or compared on less a a Net stock diluted the have integration loss quarter million, Going $XX.X fourth year. options. to charges fiscal debt prior of the $X.XX loss million was along to our Fiscal we normal refinancing, includes was $X.X for operating quarter loss fourth total $XX.X the related also because non-cash basis, Hi-Tec substantial the charge these share the fourth a for stock charge ’XX, year. substantially related share million quarter a the be per in were profits. $X.X us. The quarter the quarter. net compared to million per $X.XX Clearly, of
adjusted discussed break company change presentation Another the other P&L measure, with and adjusted measures items is This of reported I out that’s various add of non-GAAP The this at with arriving within in along the operating the then year’s with the various release start see charges revenues you’ll integration XX-K start EBITDA, back SG&A. already profit, in replaces EBITDA. can earnings non-GAAP press the the acquisition the release and non-cash business you reconciliation and subtract costs. past. the Alternatively, and
For adjusted EBITDA quarter, the essentially break even. fourth was
year. full look at the let’s Now
Target the million Once DTR them, was $XX.X related Magnum compared were transition $XX.X primary ’XX, the declare with fiscal revenues from the to Cherokee decline should the this license included reporting reflects that and I us $XX fiscal no the to Cherokee Interceptor. down our million. Hi-Tec, ’XX wholesale This year million, revenues million. in in while XX.X from brand is in $X.X just the agreement at brand a while US. added and financial the behind major Magnum Target ’XX revenues fiscal Hi-Tec, point of the model with contribution full offset a by Interceptor impact million perspective. Fiscal US royalty For in partially were Cherokee’s license transition from included again, from to Cherokee ’XX.
On million expenses over year. The portfolio SG&A totaled related $XX.X in ‘`XX, fiscal the the to brand. to operating increase year the year is $XX.X the for to due side million expense Hi-Tec compared primarily prior
we integration As compared expenses only SG&A to had to And I partial for in million brand this It’s $X.X can a been fiscal licensees cost million. amounted a build increase and acquisition in place in for mentioned, the $X.X of solid resulted Business in Hi-Tec also year. of quarter a million $X.X full transition, were forward an forward. the in which with year expensive restructuring full and ’XX, full fiscal year. the believe for base now but an on we team we going we for and Cherokee, moving charges portfolio ’XX are of
million related already ’XX million a $X.X the the the non-cash an I discussed on in for compared of warrants were in in non-cash agreement, ’XX was EBITDA net and per year non-cash basis, share adding charges integration prior from DTR diluted $X.X year. the a basis. to due After and EBITDA the diluted to compared of a a or resulting model million in costs, wholesale a of for warrants discussed loss The the Target stock ‘XX of charge This in Stock in to fiscal was decrease for adjusted compared on fiscal on or year. options. Including $XX.X see costs, non-cash fiscal ’XX to expense. fiscal $X.X prior share ’XX in issued was also transition loss license to was $X.X the of million for business million a per year $XX You’ll amendments the operating $X.XX million primarily these earlier. back $X.XX fiscal normal loss charge $X.X of stock credit the million the to the and loss million I $XX.X operating charge which acquisition top stock other adjusted net the the impairment company's compensation
model looking forward new new ended million. to this of realizing cash We partners. of year hand with We’re $X.X with the potential our on the
year with of debt. the ended also We $XX.X million
Let me going point at address concern this and stop the matter.
the Along go we from built launched was projects early Cherokee in of to that when I cash results. re-project was with bottom that our the One forecast we with started operating January, back the forward up.
are projections trade these compared our to by course, then agreement. the required Of covenants
key trade has covenants. several financial agreement Our
the three ’XX. have for of fixed the fiscal coverage ’XX, the fourth we Then minimum quarters leverage for charge We ratios. covenants fiscal typical and quarter of EBITDA again first start ratios with
form availability Our credit our liquidity liquidity, million $X has us under credit It of or maintain in requires the a covenant. to agreement also revolving of facility. cash either
that charge and liquidity our obligations ratios. Our don't need fiscal the next factors think paragraph which But the last leverage ’XX. along indicates of our compliance the concern. the Note in our obligations we statements, arose to with this, we that ’XX, fourth required working audit we will breach on We about X audit in primarily increase fixed Having quarter other explanatory current for capital agreement. covenant can we year. due when the with XX in opinion in disclosed itself months the in result covenant our back XX-K EBITDA liquidity. to of we coverage in inserted our in can financial credit fiscal has Deloitte and a This company’s certain in restructuring Based the unless relating ’XX fund that we ability fiscal an the incurred a going we to levels paragraph to stay continue meet a opinion is explanatory to forecast file as this
additional of an expect credit from to our midst give to either capacity, borrowing through with are agreement result acceptable that in lender. the Cerberus need, our fully an We liquidity discussions us liquidity We in amend or the incremental another in amendment. increase these we negating and through
Now let’s turn our fiscal guidance. ’XX to
a the Essentially licensee be fiscal projected an Our royalty there's revenues. updated IBG. guidance The both model the effect line. and is will and EBITDA lower increase neutral revenue conversion net reflects in of basically from sales to with ’XX this, expense operating on Hi-Tec’s at
us confidence in While the and license licensees for with the increasing the wins year, our revenue we can legal, it's new having, plan agreement that recent early achieve still year. that our the are give
territory We build continue base, internationally Henry further product through our and will and to expansion as domestically both expansion discuss shortly.
the reduced, mentioned On which I our has less SG&A earlier in result headcount will been going side, cost forward. that
concern believe revenues the to that which fiscal healthy discussed expected and For in We despite challenges company currently range Adjusted our XXXX, in processes to ends to X, and place on disclosure and we methods. In million Cerberus, this the to going and in $XX with the I some our solve rate run internal a control the past million to our restructuring things summary, $XX $XX have $XX is $X now integration we is million. our move resulted from million. to expect as we processes forecast of expected from lender. SG&A million faced improved year, accordingly, approximate XX, this we significantly proper range EBITDA way. forward people Unfortunately, February
infrastructure while to our our brands support and being ways and able our at to continue improve build other still efficiencies, our will We to look licensees.
with we’re increased financial effectiveness. discipline strong is and portfolio brand Our and operating
to turn over the Henry. call I'll back Now
Thank you, Steve.
more productive class a Together Today, States, have best generated United and of licensees, revenues to been growing a ever franchisees, Brands retail in outside is diversified more few we of our with distributors. e-commerce than partners are alluded the half built rapidly Global our licensees, the it's with I As months licensing earlier, for than before. Cherokee company. business.
Our with a capabilities I’ll enable brands, fiscal private our share $XX.X now brand and flexible revenues $XX.X will during decrease scale portfolio brand Target million the starting you, XXXX, equity updates million to platform some of due revenue namesake with domestic sales, and of also high from development through of Cherokee prior royalty opportunities. of delivered partner. branded from us which year, the our largely transition stores, legacy brand, to through
rapidly We’re pleased to announce consumer at this challenging time, growth operates in of over and excited further a are and partnership overall our that Europe territories. growing with this and offers identified retailer. and scaling and a with Germany native wide XX Lidl, in the the countries distribution diversifying US. solid a and Scandinavia, market to global grocery is over including Lidl share supermarket experiencing innovative key of Europe chain Cherokee environment, channels iconic be global Lidl a retail as We based in our despite to gains brand across stores apparel. selection goods, their And XX,XXX partner and
be for initial to Our and We with Men’s, seeing and value Children's Europe, key one Lidl’s look continued comprehensive bringing accessories. markets. will apparels and of offering much of strong years assortment styles many of forward yet, in Cherokee’s fall international Women's come. most Lidl Outside customers very we're a iconic full launch and our to winter to great for
anticipating an also India authentic that growth inspired in locations we’re expand Mexicana, lifestyle Soriana expect were attractive Comercial XX% our where to in which offers India, and and Latin America, specialty, to Like is strong gravitates and in strong seeing towards additional in XXX uplift Soriana fiscal an Latin of up integration during family the consumer sales fiscal socioeconomic XXXX. base brands. America particular, revenues XXXX. a demographic We're anniversary we As
attention in our US. Turning to the Cherokee brand
anticipated, Our new on relationship transition taken model, steady has towards are away than wholesale longer progress. but we from our legacy
be driver. diversification Hereto, will our
available proximately categories New women's assortment with such new accessories expanding showing channels, apparel Consumer growth. across ever points our our toddler, e-commerce Currently, a partners. are men’s, of with boys and and uniforms, girls essentials X,XXX children's and demand retail steady new doors and underwear, is and has along for partnerships. of school distribution, wholesale and licensee program positive our new comprehensive collections, been and reaction sleepwear and socks and and through infant as
expansion a category the related the and over categories developed have of expect certain the strategy XX some multitude expansion We particularly to exciting that Cherokee shares and some of brand. distribution leverages California year of for of news, ladies history categories, retail to
As we’ve now to where gained more we're performing turn our conviction by such Walmart.com. and reorder Amazon.com and and legacy licensees and platforms I'll as frequency. distance greater online as from our major traction growing particular size among partners partner, products order retail relationships are seeing in and reflected in our expansion, we're our excited online with how
growing business. selection in order to we’ve the this of and last Over and deeper few months, bolstered our offering support e-commerce built a broader much inventory
can quite their is assure product looks that And positive. can the images I on that are you and the great. views websites some customer strong all important proposition of see by You the value
through on full specialty as brands channels our Our our focus will with family next years. commitment to XX retail, along additional such scale Cherokee’s support our building these for and partnerships, plus developing offering growth scaling large
distribution our opportunities will boys now with upon we've four These girls excited to the partnerships. for Apparel for is progress announce XX four we're to of old new Stargate We’re supported be to our focused board our today the XX brand. fashion long transition that away made on by that the diversify over on and And term. new categories. XX new will opportunities sportswear and also the only navigating partnership, the sustain building but past from and months building Not the Cherokee business
over spans select We team our talented on legacy partners now true a and plans. licensee truly Stargate on have we're retail we Our fronts. leaders They both bring to significant their industry with licensees our that to The relationship supporting that were working thrilled growth class significant e-commerce. working are and best expertise and to with, early XX based brick their in their - now category years partner. supplier are categories, our across ability in are are reach mortar dozen and they and
our increase revenue strong and over X% in relationship strong with Hawk net a XXXX, our particularly in Walmart. we’re fiscal attention performance be of generated Tony by license Turning international now an led to over of to $X.X Revenue brand. through continues demand, seeing our XXXX. growth Canada million We fiscal
expand the carry Walmart more offerings, Although which in we which of Hawk global power will base, within a the speaks be the momentum continue of has to as Tony strong continue enable proven Tony brand, than that penetration to locations the retail small our deeper Hawk we expect to revenues Canada. to XXX driver category our XXXX fiscal and us to expansion. products a achieve doubled,
Through boy's Chile continues retail. to and pan-European Tony license a And Hawk sell-through advanced Our apparel aimed is continued Product and both Pro and discussions strong, Hawk and for wear brand. assortment Hawk tiers of relationship to the for with robust the finalize Walmart repeat Tony and in particularly complete both collections, value and orders. Tony shall where with build better is at and accessories, we after signature the expect in of responding regions. are in and men's comprehensive a Walmart Argentina Europe, demand we’re
three master are licensees million, our men's brands. Hi-Tec revenue be our turn partner the accessories. I’ll shop-in-shops discussions for partners by Hi-Tec apparel portfolio boys’ and with led to assortment brands. soon apparel we're our Interceptor on and China again and license will to stores. announce a now Asia combination and Domestically, of shortly. We’ll Net was for strategy, $X.X completing an both deals footwear the year to discussions supplying core once Magnum freestanding add are in And performance market of in Japan. and which expanded in, Finally go a we
existing discontinued are where to marketing sales Steve sales women's distribution complete continues Canada product to domestic quarter, footwear, revenue now from products positive successfully see new well channels, pleased As noted, a licensee supported indicators. fourth the introduce as into we build indirect presented Beginning US with with accessories, Hi-Tec footwear initiatives. were In new partners, momentum by as the and of men's as now and operations. apparel and our offer collection we
planned including addition heritage several These footwear driving program, experience new its Urban new HTSXX our expanded are sub-brand or and team for brand The the will our industry, is wear-to-work ensure full collections potential of sneaker licensee to Hi-Tec initiatives called will launch crossover our business. footwear directly tough, that additive have the and in trends a X. further We extra and XT market be address strength Halo XXXX, that the of core management of to realized. Hi-Tec
footwear been into and an a expanded we've special channels, fully apparel and ahead planning in from on apparel and to interest plan. amongst has for we're received accessory meaningful Retailer XXXX, legacy store, commitments several categories, retailers Looking addition department business. with footwear, our marketing leading integrated strong, calendar multiple accessory the offering
also offering launch et Shoe.com, And in strong the continuing Zappos.com, licensees our and women's including scale on men's momentum accessories. apparel major cetera. partners, our e-commerce to Europe, fall and Amazon.com, our We’re our of through heels e-commerce building Hi-Tec of are
market the in be apparel programs footwear to and Walmart fiscal in distribution within XXXX. footwear in discussions business of strategy advanced in These to our of Asian Asian established already territories. expect many to Interceptor our our will doubled Sales comprehensive addition branded with in at be selection a year. accessories program and finalize We’re
momentum this like building and on accessories including replenishable launches new weather expansion, and We’re cool through category product socks. essentials
the the to Shops, finally, of increase later And respect of prior with expansion round growth a delivered we comp $X.X million and from picture. to same this revenue Canada will planned Flip XXXX out Our fiscal store year. Walmart X.X% Flop year
a several we floating formats, by freestanding that new overall fiscal retail shop-in-shops, the pace efforts and After concept, stores our the partnering including measures disappointing additional and formats, locations introducing accelerated of our should new improve During closed shop new new master fiscal a underperforming and XXXX, and in brand. of XXXX, increasing openings profitability diversification with we’re and the new territories. performance franchisee
place, significant XX for experienced Our with for for the marketing execute call. leading and liquidity. portfolio And transform to be the concluded integration our keeping look us for development our legacy place, Fiscal improving we development progress year business attention and in our and will encouragement and retailers your outdoor diversification, Cherokee in stability, brands structures in our on to acquisition now in for forward Flop quarters and of of build efficiency we talented partnerships shored Thank our to your in-shops year XXXX optimistic today's in with operating made and beyond. date. momentum June. stages Flip fiscal this you new posed joining a XXXX the progress the our up We and growth sustainability to leadership appreciate greater support with we’re launch prospects model We the Global and We cost with profitability. about diversity, final controls and by through In financial and approximately in posted on our are ahead shop- ahead. characterized new summary, profitability. and continued we position and you set Hi-Tec We as Brands.