Loading...
Docoh

Shoe Carnival (SCVL)

Participants
Cliff Sifford Vice Chairman, CEO
Mark Worden President and Chief Customer Officer
Kerry Jackson Senior Executive Vice President, Chief Financial & Administrative Officer
Mitch Kummetz Pivotal Research
Sam Poser Susquehanna
Greg Pendy Sidoti
Chris Svezia Wedbush
Call transcript
Due to licensing restrictions, you must log in to view earnings call transcripts.
Operator

Good afternoon and welcome to the Shoe Carnival's Third Quarter Fiscal 2020 Earnings Conference Call. Today's conference is being recorded. It is also being broadcast via webcast. Any reproduction or a rebroadcast of any portion of this call is expressly prohibited. Management's remarks may contain forward-looking statements that involve a number of risk factors. cause those actual projected could materially to factors from different in risk the results company's be These such statements.

or these also update factors only today's disclaims company's reliance in and to conference on Shoe Carnival should discussion as are revisions the cautioned earnings statements. now of statements be forward-looking any any CEO of place events to the Mr. today's conference conjunction Investors obligation would risk in forward-looking on any begin. Chairman turn Forward-looking publicly undue to with press announce of release over factors release. risk company future statements filings to statements, included call date. SEC today's reflect the I these opening may of to discussed or The for you to Mr. not in to developments. contained Cliff and or today's considered the like which speak Sifford, Vice press Sifford,

Cliff Sifford

and Thank conference welcome quarter earnings XXXX call. third you Shoe Carnival’s to

enduring Joining then strength are We'll business clearly demonstrated operations. the call and update call President well Officer; provide today’s Customer Executive Officer. results. results followed growth, driving of well that Kerry such When The and initiatives the are said, on level update our footwear quarter's state's fiscal loyal offices their our and dedication Since who your strategic financial questions. back. our on execute the welcome on needs discuss and their competitive quarter were we adhering reopened on our our as our each Jackson, last high an of and reopened any Mark of in-person. our customers all our customers Administrative will watching quarter an strategic call our and then the remain health excited employees how third spoke, Mark review third will welcoming XXXX the policy initiatives, is as a we we as results, team for dedicated safety to diligently provide to open development have subsequent back Senior and Chief all stores priority, President, Kerry and successfully change. and had With and to Vice COVID-XX satisfy then I'll Worden, differentiators. On our ability fiscal as team to also we our Chief today corporate Financial one our me as number

quarter we exceptional third fiscal the XXXX, delivered For results.

history. most profitable In fact, the company's the quarter quarter was our in third

in other in performance believe us implement achieve of sales anticipated we occurring markets communicated, we shutdown. we Back-to-school retailers. a employees back-to-school Instead, we quickly within the to had furloughs unlikely to operating an spite make during are result is had decision not volatile incredibly As sales a fashion extended hear direct same-store environment season our our continued first and We from achievement growth and of putting and largely the you strong due to thought, engaged, be quarter delayed later played tremendous which mandated third stores in advantage, out as school has dates with the the competitive us and for our employees allowing a to nearly reopen operate. efficiently. kept we the all our start fiscal proven to

their trends enjoyable. shopping the experience Our and Shoe simple to and best to the loyal trust brands latest shoppers have Carnival make

the back-to-school season results. marked a sales despite consecutive has Shoe strong Carnival history store learning. sales the increases in-person delivering during of comparable of This the fact, XXth delay back-to-school year In year

and provide incredibly in want gain in second our remarks. to same the in are growth sustained proud back-to-school his it. record, in products on track of another was want, will in detail they prepared need open. triple-digit Mark deliver while our quarter our We this quarter, results to At The third the execution the more none. time, we see strategy ability our stores to when the of continue e-commerce merchandise even our were brick-and-mortar customers delivering platform,

partnership were and This merchants, to keep in margin. Carnival a customers line in able which selection our fresh XXX with higher of that ensure vendors, employees merchandise in product point significantly focus looking turn our to allowed with key brands our and s promotional superior to us our and maintain basis were drove in Our improvement cadence, Shoe for. the reduce ASP trends

result, points the sales customer and sandals quarter. Once the athletic a driving performance shopping increased products Carnival satisfying growth We higher further and fast gross providing differentiated experience. As our for basis and including to Shoe merchant for profit replenish XXX fourth selling quarter they selling. attention holiday ended by quickly all transitioned third and our assortments, to team selection across back-to-school a quarter, we time solidified of the great categories we their the stores had product turn the our

non-athletic low Sales for with quarter, casuals, dress Consistent were a driven by the comparable were result Kid's categories. expand growth for delayed men's was up and Kid's non-athletic both a remote canvas quarter, department single-digits target significantly utility. and loyalty by were mid-single-digit are kid's women's E-commerce driven category and up sandals, three-year shoes this nearly very learning. organization. athletics comparable our men's the Our both I'm year sales million in now report overall, while Perks offices to merchandise to And Shoe quarter. as mid-single-digits back-to-school the product many continue across of XX while growth down reflecting continues while was casual up last our Women's to and adult double-digits, reach achieving level, categories mid-single-digit, athletic the was continue down in down active athletic high to men's investments The were sales exceeding strong double-digits, margin. was and athletic as store in happy technology program more for a higher sales drive closed. members lifestyle store single-digit low quarter. Looking at outperform. by remain women's

return October the in ended to significantly on begin to rebounded a -- basis. We learning. store with in-person sales per quarter down X.X% inventory as However,

closely to our our to classifications moment work I key we as sales. driving partners ago, and with However, are categories that mentioned continue vendor a replenish

our very are area especially that navigate inventory period that as happy flow in with to We We the ever-changing discipline of amount colder fallen the this coming invaluable more comfortable transition proven have the these holiday take our be with seasonal on remain focused we boots footwear. selection terrific conditions. and weather we flexibility, for I'm in strength to as will of and the has financial winter as

investment and debt free. remain mentioned, ended people, equivalents. this even have $XX As we to the in continued we our cash our I've support with in approximately We cash quarter and employees with million

strategic like call allowed execution superior value long-term now create environment Therefore, it market to our gains initiatives. clear Our execute and by strong QX provide combined guidance. future. ensure that with to difficult balance provide progress to will the been on strategic we to Carnival will any I us With Mark ahead. in would to turn investments, are over And guidance. challenges to The overview, incredible for make We're Mark? we're remain goals to make share through our capturing sheet all us and employees will customers long-term and encouraged the share be market has in to not current guide we providing our continues continue that I continues say on Shoe continue QX. to safe. our vigilant an to well-positioned and Worden stakeholders. And our feel update that

Mark Worden

new same third in team The Shoe we incredibly X,XXX of Carnival plus you, customer so to grew quarterly the profits. we focus employees' time, record core continues that environment results At our for this macro our our achieved Thank the acquired achieved strategic customers, quarter and commitment unpredictable. strong advance a market and macro we very Cliff. thankful during despite challenging initiatives, be I'm proud environment. and share, their

XXth our of sales growth year period. achieved we for QX, back-to-school sales the During consecutive

our what earnings and early later it back-to-school the that further has precisely we than This anticipate During extend period is call, happened. historically start last October. shared into to selling we

into August, season Our and September, early continued October. XXXX throughout of back-to-school occurred all

While TV us district still and react plan The early our print quarter by the to they marketing, of results selling in key virtual-only experience team's October. traditional our not store profit to nimble returned announcement school ended and education, as school our back-to-school This the with have spread all into targeted decision with digital, XX marketing social, by later the in continuing third period school in-person was districts elements of and shift investments quickly investments to be to end out education happened. August ability XX% to nearly CRM, our core and data QX. enabled mid-October, systems or efficiently

to deliver for sales very we're to our capture share of market during and result, nearly a the ability pleased As QX growth with quarter. X% same-store

to e-commerce sales $XX E-commerce our far quarter. all revenues double-digit and third QX, for exceed continue of either grew XXX% revenue growth achieving sales brick-and-mortar marketing the digital total high growth Our and XX% over over surpassed with expectations, e-commerce company million. for of stores traffic efforts open of

For less for quarter comparison, Shoe Carnival's fiscal in X% XXXX. third e-commerce represented sales than revenue

to merchandising purchase strong enabled team while to and they our both growth promotional inventory shop. Our intensity. us achieve stores, world-class position significantly the had whenever our to online reducing The conversion wanted and in substantial wherever product chose customers

by for over we product increase quarter margins example, delivered promotions. of an eliminating return For points in investment low e-commerce XXX on basis the

remain strategy growth ahead our will and years continue well in to ahead. strategic e-commerce we the grow our of against efforts business to this Our plan invest

valuable business, XX% membership rapidly more XXXX CRM nearly effective the continues third strategy of are industry Our quarter to leading and to and XX in our Shoe members. efficient to resulting million approaching We insights Perks' in marketing loyalty delivered outreach. compared increase customer provide

and of a in over in XXXX. members basket $XX track Gold higher The growth profit non-member average the versus QX a quarter. sales, to than see significant continue also size We margin, dollar the member quarter Gold was

high strategy. So, continues members to into Gold converting our be a priority customers

rolled growth realization enable management our management and our sales the triple-digit technology QX infrastructure order effectively our continue new the and in during a e-commerce platforms essential to enable a XXXX. QX, we warehouse strategies. technology of These Additionally, achieved new growth investments Despite system system. in out pandemic, helped

enhancements in for Shoe these long of a growth runway enable Importantly, technology profitable years the Carnival. e-commerce ahead

the against estate progress making long-term continued navigate and current to are continue we we environment, strategies. our As store profitability real

turn close decisions closely not one store of end opening to markets make the did continue and me closing, markets quarter the to long-term quarter. based bringing and operate profits during call our any be the to opened stores driving growth, to sales store initiatives. more and one the existing through achieved success and store year stores. in With into that, totaled I strategic we In on proud let we against We strategic provide our quarter, the record profitability. and the our the numbers and insights closing very continue for continued one thankful During year, XXX monitor financial anticipate the our team We within of end to market advancing over Jackson new which Kerry the performance

Kerry Jackson

Thank Mark. you,

unpredictable Mark of nearly their and and We team our of driven X%, quarter both by quarter e-commerce strong continued Cliff sales strategic sales. on commitment As we in in environment, with delivered our comparable thanks priorities. to saw the $XXX.X delivering mentioned, sales another million an to store

This sales increase X.X% quarter growth XXXX. sales third of in comparable was on comparable quarter's a of store store fiscal top the

sustained the and COVID-related sales by quarter. the back-to-school uncertainty our during in business were brick-and-mortar shopping negatively e-commerce triple-digit delayed store Our growth, impacted while quarter

third XX.X% increased the compared Our profitable Shoe of for quarter to last quarter XX.X% year, gross profit to ever. in margin most making quarter Carnival's the

to as margin the the in as assist primarily basis center buying, in expense. to distribution in implementation third an increase points These offset million software, and XX rapidly occupancy XXX buying, expenses. activity allow our point basis increased expense e-commerce merchandise XXX expenses percentage third during sales we reflecting higher quarter, this in e-commerce fulfilling $X margin and as will e-commerce promotional distribution, for occupancy depreciation sales. during SG&A stores of in points, grow quarter. due sales. the a lower our of shipping orders of in to The increased was resulted increase $XX.X higher to while basis increased a distribution, the increase our was Our our due quarter e-commerce-related Investments costs and advertising the primarily The merchandise cost product percentage million; increase margin year expense. investments higher in labor basis XXX primarily distribution in distribution center operating points

year. XX.X% As Net SG&A the The year period a to lower this recur XX.X% tax in a last was XX.X% to compared year. the net year. favorable third The same the which the not last for quarter in the to per third last year, records for the income percentage the was due for compared third in in share the to of adjustment QX quarter. quarter to increased net quarter did year. compared income in all-time in quarter of $X.XX net compared million XX.X% was prior income third effective and last $XX.X per diluted of tax income third million sales, share Net company. for income per share the diluted quarter rate $XX.X to was income rate Net prior income year diluted $X.XX were

and expenditures third turning compared year $X.X and Depreciation flow. information this Capital position million for previously approximately to cash million. million actual are $XX for in and stores, the remodels. our our to used prior upgrades mentioned quarter. with $XX expense third be expected XXXX new $X expected the quarter to are be million, to to cash million to Now, for million quarter $X.X between distribution center affecting expenditures The including was $X about $X fiscal to relocation, million be

mentioned, strategically strategic inventories. to manager Cliff our we vendor continue work As closely partners to with

of As store prior quarter the a decrease third on ended a basis we $XX.X result, with $XXX.X quarter. million, inventory the and inventory to X.X% of year million per compared declined a

review, no of concludes of $XX.X I questions. of like the the million. working million Cash of was shy financial This and had our for equivalents to million As capacity just our $XXX borrowing would XXst, and $XXX open debt now XXXX, quarter. outstanding and October up end we at the call cash were capital

Operator

[Operator you. Instructions] of line And question from your a Thank first Pivotal from Kummetz comes Research. Mitch

is line open. Your

Mitch Kummetz

for margin merch by thanks Yes, taking questions. into bit. digging start little the to a my wanted I

bps So, the merch at merch XXX, margin shipping up the on margin? XXX, of difference Kerry that XXX pressure margin product e-comm is was up

Kerry Jackson

pressure the margin increase It was of e-commerce XXX for bps shipping.

Mitch Kummetz

of XXX comp overall was case? the think a athletic, there the -- better than then was little that was product pressure I margin, your And Okay. so I singles, being up not high in that did to bit increase that imagine would with closer that comp,

Cliff Sifford

really during was that the promotional are products competition, really, everything -- we became margins do less why each merch were the selection had And want a was but I customer with get to that this? going think in we can a say, reason made. for. found looking had selection we What we And said, for, with for had that good of that's product margin to penny customers I are selection Mitch, other and product, coming that the the we reason and superior that looking quarter. looked this, at to of those tremendous it? Let's decision up world, the of of kinds and we of is had athletic in promote every we buying there a was about -- of talk we we out sandal have customer don't to no I

interrupt. to Sorry

those systems have period, the the anytime on basis one Carnival, as turned that very if had next about added promotions are daily could the such part pretty make a Just we day. we much sour, Shoe can our decisions all that during grand time second, those business

Mitch Kummetz

because reason I athletic because wanted to The that I even margin what the at? more of which profit have from I'm XXX a answer points. a reason was your about you up think that Do would was see get asked a standpoint, that getting guessed than drag, like-for-like I basis bit I was is would

Cliff Sifford

What -- to go trying it. I'm with

Cliff Sifford

product typically, athletic Well, business, a up margin than with the of have drag. I more would a thought that's bit overall

mark that the stronger XXX. was that you were sort that even or that, the So, than for sense? product adjust of Does margin make the profit would if suggest

Cliff Sifford

I Yes, hear you.

we Sandal had all a strong, it near think very because of --it were one didn't of me say strong of canceled way. I to us margins And were it -- to max do been it. we we We we -- were let so back-to-school get promotional ago. because as product do to could gotten. out insert, athletic to as additional then really allowed year have margins sort actually the that another weren't our margin need just

Mitch Kummetz

takeaway I would had some the suggest promotions would able that imagine product your think because Again, you product avoid I margins? into channel QX, put lean, words mouth. quarter fourth for and to channel I you just to why that in don't what's of So, strong you expect product feel equally and good great want about inventory Would product you the the is margins? pretty going the for were the QX was reason on guys inventory although

Cliff Sifford

said pleased going product. we merchandise too we I QX, had in I'm get very unknowns level with not I'm the there's athletic but of just prepared that the any -- Well, product, level guidance. today. we're my just as pleased going get the with to selection I'm of remarks pleased with can't seasonal many into

Mitch Kummetz

Yes.

it's me Let I you themselves I boots just that things Cliff, I of few -- made comments things. those year. a a would December been you of and think warm. on ask boots, couple out on know imagine warm was even last kind

So, of XX% recall speak to typically; season. But can into boots I that's maybe the kind going opportunity you if of about were I think you your an encouraged about there's QX correctly, there. holiday just

planned Although down, I down. I overall think dress as an up think and of category casual

can So, about that and just anything weather say boots importance the get your kind really to going? outlook of more for you of

Cliff Sifford

selection cool XX% dress, have the I cold the our warm beginnings but they walk this it's year and we've we not the can't in cool the and quarter the you driven. fourth There's weather warm boots is too And casual and the point, this, past. as volume neighborhood very year take the And are warm get total turns was many just for those we when buy say because in offices, than what wear, their very different so, but found to to about at people say driven. I'll years do past aren't this a little going the boots And boots. of experienced notes. to to out good near quarter. weather that customer cool-weather -- fourth that

Mitch Kummetz

I a of we I Okay. on you lastly, think the speaking then, all guess asked call. good last few us of notes, And

of benefits you there. the If some out any on from saw that bankruptcies could comment you

that said this you better think call. I on you'd that to prepared address be

if provide there? new So, I any information don't have to you know

Cliff Sifford

going over Kerry I'm because that to so in to pass a to where have markets to to that. the saw that pretty everything to were answer announced, things the related to call, question We add once are lot what as to when won't we have tough started open. anything go were August last I lost turned our Mark in said, had the don't soon was -- on the schools to or is as we it. early I a add that. quarter, as I everything have [Indiscernible] that everywhere, just really as There not they don't popped we in back, but schools going competition, --

Mitch Kummetz

Okay.

Kerry Jackson

Mitch--

Mitch Kummetz

Yes.

Kerry Jackson

Cliff into The back-to-school quarter, back speech, picture the the other so September, October. big for delayed unusual, are his hard to a shifted, out and really were schools to said various sales they our the were went later tease of that like in what changes lot we was so it's than

Mitch Kummetz

Right.

guys. Good Okay. luck. Thanks

Cliff Sifford

Thank you.

Operator

Susquehanna. Your line of comes Poser question from next Sam from the

open. is line Your

Sam Poser

regular me items Well, to chose you inventories were to this I and need just wanted a promotional, little mean, and guys for? not clean because let follow-up had to your Good people afternoon didn't on be price you bed, the put you be bit just everybody. to you pay margins.

Cliff Sifford

away and what incredibly were conscious margin saw always reason very on no in. -- -- inventories. what your of the clean But Our just They keeping so focused coming give on inventories because for customers Sam we're were there you're and was correct. to rest us wanted they of is that answer are we to clean product. The buy very focused

Sam Poser

quarter? I you the that sort think? comps -- of look in that You down what into the Okay. one Kerry And then mentioned store were

Kerry Jackson

not only given individual comps components. the the We're overall and

Sam Poser

-- know us then And Okay. said little were direction, you that yes, wanted gave a more you direction. I but they down, I

on how it Where store into share -- going the so being the you does doing, about looks with about working, well -- you year and more we step do next is the you're net opening -- intending aggressive talked step and on on openings stores, so sit as store Do driving, this CRM the given gaining it. to are so forth? open going you're so? you opening, thinking store openings, to you're You store store you're leave put to are like us

Cliff Sifford

lot stores; one But good estate out ready slow the and of processes. saying, quarter Those are just doesn’t real well, going open long-term, to okay, and -- happen? there's that now market to a

So, comment store whether to you can't I'm actually going going to comment choose store this, and on on quarter opening the next happened. I'll opening. on third year not we're Well, decision a of make that

-- So

Sam Poser

much not you else's also. QX saying had he than everybody asking a I'm I'm like that. better

year the this opening increase that has openings over For year, months? the you evolution any net in anticipate over much? so far, store how do last next you'll six year, next plans So, have if your driven so

Mark Worden

moment time in think capital environment. Mark. conservative going continue this Hey to volatility going of on Sam with viewpoint at We're the to its macro the all

store putting point, there XXXX in guidance new -- this previously envision very out But the having shared, count. the not So, as openings at to it's perspective. is a net related evolving we But we're store world do not we rapidly.

continue to ready get evolution ahead. clarity COVID-XX evaluating in the firm are to over the We're line and markets, the in evaluating we're we're the we'll evaluate months put a sand. of strong more going out to markets nimble, businesses, not and staying competition we're So,

Sam Poser

us month- general comps One, Thank you the of at least by can or more. the by comps you. month And then give direction two

Mark Worden

October and Yes, high August was down the mid-singles. the in as XXs, up in mid-teens, September,

Sam Poser

an have a you you've this overlapped, for to retailers, have are on do you including you lastly, have lot you close Do regions of in opportunity? Okay, many the has talked year? these Nike sort you planning that this foresee Nike how foresee shops a -- of area, made and bunch shops and of a opportunity that now as about you you as And number know stores. stores. next Do opening? some an do I that of decisions then

Cliff Sifford

Sam, of we Nike over our over shops. Nike so partnership we rolled plans -- are within been Shoe three has And the years assortment have excited with currently half footprint our Carnival Nike to our continue wonderful about Nike, to and with and with shoppers. to next at merchandising are north he have we to shopping shops likely Nike a store think with XXX have the train, more out team family overall footwear shopping connect continue Company They've fleet. statement, our across our of to our fleet, the phenomenal have brand opportunity of over XXX that we assortment the tremendous

good think we're a shape. really in we So,

Sam Poser

specific, a you as retailers other number mean, -- from And is is impacting as other planning some how how of traffic impacting far that the I being that but should don't buy need Nike retailers, pulled as with, stuff? overlap because help in be you you to way theoretically that well to how's to you're as other drive forward I the Nike general,

Cliff Sifford

filled We've -- been our giving to spoken you Nike we with of we've strength will with quarter, has stronger, over addressed the I our considering times Nike. the this -- that have -- be never guidance, been companies. tell and that sales, actually I'll be by both presents incredible so the an relationship many given them fill past overall itself opportunity past relationship Sam

Sam Poser

very you you thank vote four and Thank in President you. I'm to going for much. years guys for

Cliff Sifford

Thank you, Sam.

Operator

of Sidoti. line Your next from question a from Pendy comes Greg

is open. Your line

Greg Pendy

XX%? for you a that your taking Can sales. is is my new when I I thanks XX% target, it call, you and progress if earlier e-commerce long-term e-commerce what guys, question. your know long-term recently you you -- mentioned spoke for up just getting target me, the think for Cliff, Is on remind you that to Did Hey, had you while the as did?

Mark Worden

Hi there, Mark. it's

strategic reach XX% plan. multi-year Our was goal our to in

With in for conversion increased we switching the consumers great see consider objective you the reaction, and traffic next strength have with CRM aiming to of engaged to with e-commerce, are We is three XX% business activity. some consumer Shoe we and years. that to Carnival's five online plus the surging once a

have So, yes, expectations. we our significantly increased

Cliff Sifford

add to best CRM to the that most a it, going we've I'm years in thing three Mark opinion, done program family -- mentioned the positive and five over channel. program, was I our the -- only implement as past The CRM think thing to the my

with it talk the and stores. ability, have and many e-commerce talked our about times, I've them or to to We ability site customers our one-on-one our drop either to

to think in the So, that we us is didn't positive of see COVID-XX vision long-term execute And the out it opportunity that the has this the gives and one we think tremendous we that our with coming fact our customer short-term. discovered website. our

Greg Pendy

stores because presence strong your on you closer nationwide store West seems of e-commerce the to are the sort out prior be be Sam it closer they more shipping they're bit to costs? towards store guess to and important I -- If is the questions a Then on it of are out like sort growth to going get Right. is to and becoming about lag. of -- on a -- if and Coast XX% shipping going lower how it sort get the to I you're there important little how your mean, centers, might be customers growth. becoming bit

Cliff Sifford

term, awareness brand year growth to as strong profitable, the there are in achieve years opportunity we strategic states the we to for footprint five out have five at in to existing look beyond affinity. our significant highly nationwide states operate those significant within whitespace and we that XX there years, in. three great can three you If They've Longer target XX% within of surpass got penetration that and window. certainly

So, we moves revenue, tremendous as more customer then see this more as a a as and both engine into online. growth really moving mid-term long-term the profit growth, share, and

Greg Pendy

Thanks great. a Okay, lot.

Cliff Sifford

you. Thank

Operator

Wedbush. from comes question next Chris from Your a of Svezia line

is open. line Your

Chris Svezia

gentlemen. Nice quarter. afternoon, Good on job the

Cliff Sifford

you, Thank Chris.

Chris Svezia

up the question first we for it out coming reason like should and XXX%, say throughout accelerated that step all QX. just should was line digital August; Mark, any the that moderate seems of e-commerce what And back trend you, going into quarter.

Just think in et as comparison versus the about any color QX would about process be broadly cetera, store trajectory the year, helpful? last we

Mark Worden

back-to-school back-to-school we engage We business -- throughout they growing saw particularly nimble higher timeframe said the It live on on happen, period, continued the with the as heavily to went I move when e-commerce saying, dates to towards assets intentionally in the week-by-week triple-digit XXX%, the customer and October. but continuing became back-to-school. able quite the call, back-to-school from QX triple-digit weighted schools shifted to onto September growth growth in generate we being our September was We onwards. to to so as activities the the later they they're as our day-by-day, dates adjust

se, our our in a In go-forward, we to Cliff that to as going engagement in a but continues we're optimistic quite terms strategic said, give remain share of e-commerce. the per to future. goals. meet guidance, right market I not and customer's The perspective we're have here grow position continue now And to for from confident conversion very think our we

Chris Svezia

on to fair September growth pretty similar overall in e-comm? Was was terms say it. of Got October to

Mark Worden

very It would fair October yes. September to were say be triple-digits, and strong similar,

Chris Svezia

through correct that's CRM promotions from but forward was headwind, what you're doing to I me that thoughts update, and digital with everything addition because and margin expense, lessens, about just growth the I'm year, new so next side next to quarter, regards With in that XXX last pressure obviously, expense point targeted to on your pressure think on as but if on roll relative roll does of into shipping that. basis as shipping the year, that this warehouse QX we down Okay. it curious [ph] we points providing moderate, wrong,

Kerry Jackson

For shipping of our The us expense, continues driver comparison to volume. the package for the escalate. per basis biggest is

QX by was XX%. after we our X% about penetration did year which our last QX, started QX, and we program, So, year X% quarter, increased to e-commerce CRM we last about QX,

in what to seeing shipping QX as delta a in that it year while did this volume large our be QX was not charges, see the as against won't should So, comparison just QX our should it year prior year large our delta we pressure be in so we this as we're be will quarters. last in not because big between

Chris Svezia

And QX will to of moving be QX probably volume what it. relative in you've QX got the in because thought Okay, down year. -- last

Okay, it No, I'm got it. curious. makes sense.

you're Just for on how the you just us planning booth, remind click how season?

Kerry Jackson

mid-- Down

Chris Svezia

I'm what like said catch I didn't you sorry; you mid-single-digits, said. down,

Cliff Sifford

in mid-singles. I my mid-single-digits, but digits sorry, didn’t Down bad, put there, down

Chris Svezia

I'm momentum about challenges on guidance think curious get QX sort not single, Okay. to I'm of positive curious, reason And see with so pull I the things you're strong, shut would why you comp, -- going you of you're being of have I'm you not the down you're you degree; here digital, I'm benefits how growth? that Obviously, October, reasons had the cautious a -- curious comp going of me in what up Any potentially some the low back-to-school. of that and give are to sort just the digital, but the through know or necessarily, just stores in terms give clearly about?

Cliff Sifford

are virus Well, happen, idea no the there's Governors state-by-state, of that. upsurge charge an the been to going in we and what's in have

on that, getting here, is better and until visibility visibility time -- the I'm but we not again, if been is can customers out that we that issue period quarter I no, But tough. had think I be to get guidance. So, vaccine, until giving any if smart better then a feel get going comfortable guidance of

Chris Svezia

don't Let closures closures? me ask this any store material store any or see way, you

Cliff Sifford

and at about this limited restaurants, not at this appear The to hours Governor but of has point. does Illinois that's talk at to happen that it going not all retail. not has point do We

Chris Svezia

sort Okay, just that year-over-year, just any the of on delayed of -- on -- forward is and just last thing anything Kerry will or SG&A from should roll we me, just by thoughts should any mindful helpful? we only anything is think chance, be being year-over-year [ph] as we real be growth of million roughly $X side, SG&A

Kerry Jackson

really the two factors. increase in the was Well, SG&A

to If our we advertising schools are call, that going prior you we said reflect we thought remember, in how to go our the back. shifted more

have in to be particularly in redistributed advertising the shifted And we to it we QX, to July. dollars advertise in where follow those October we we -- So timeframe and customers September shopping. the can saved follow thought

in on e-commerce year-over-year because basis other up higher associated increase basis. a was with e-commerce and the the to were So, QX advertising was expenses then standout year-over-year level biggest a on

Chris Svezia

Okay, got it.

that's Okay, all I have. Thanks guys.

Cliff Sifford

you. Thank

Operator

And Research. Mitch of we from have Pivotal a the follow-up line question from Kummetz

is open. line Your

Mitch Kummetz

I've thanks. a got Yeah, more. few

membership, thoughts with is, of the ago you over much -- sort on Gold a position membership given given How let's on months? any you side, the XX digital ago, are e-comm to Shoe better get confident business your last I So, a dynamics? relative where those are I'm the year say CRM were, the how whether you to than to in Perks curious learnings the year start guess

Cliff Sifford

of progress XX% less now confident way a look the and of against of We in line the team five a latest of Shoe When year technology than with clear to world-class Carnival our business to X% our we a we with to and merchandising. really three Extremely our for And company's absolutely years. ago, surpassed with next sight quarter is get a think infrastructure had clear responding. We delighted trajectory with in strategic revenues. XX%-plus plan exceptional, revenues place, represented profitable in customers our the continued back the feel the a federal this that e-commerce all

it. in confident very we're So,

Mitch Kummetz

season -- schools not get January. until that that going back in probably I were think those October. by But said And maybe yet back much do you then If I the who January something how play back of kids might you back-to-school much season second just yet, the mean, person potentially there you'll that maybe think for holiday in that? will gone to a in going haven't be the is get small do that into back it. mentioned, can't aren't kind remember I'm XX% for semester, of was that Got that end how December? that's it schools, it. in so I guessing session of that

Cliff Sifford

stores, you school first -- go the a athletics you'll part cases, going our have up a I talk see have the those small going business, the do do January. even even kids. and I maybe boot to pick that. few But we think a percentage through to the one of particular overall to opening, for mentioning to in that in-class of learning not those that especially chose it's back that open schools such are that's business other anytime think we than

Mitch Kummetz

that well? think how wellness? about high what just Cliff the of athletic down of has of largely then when sort how guys numbers be the impacted -- you that businesses mid-singles. real your on thing there's adult and I business there's that's you to to that's just dress much can is -- tide versus I then athletic the And your I in a you health kind and on said of that as a you should guess, COVID assume is, back-to-school been side, Yes. my think covered question good. athletic from And athletic but flowing the -- up quarter the was do know, when just, adult a product business back-to-school fourth in the was what lot gave curious thing into I'm strength the you talk products, will singles, drive on obviously, just last the continue business extent you what business, kids disaggregate rising quarter was

Cliff Sifford

the on That's that, thing. tremendous a same but [Indiscernible] and asked question we ourselves

our started what businesses people and customers getting is and -- exercising started started took shutting that business know Here's when down, athletic more. out or I off

late due the back-to-school as Our a us wasn't especially the that athletic felt September, And to began began terrific. then the we later the the if to quarter open business out breakeven wasn't schools It got the time kid's early was of go in as kids makes the the we in arena, and enough concerned, to itself just end we And athletic October. because quarter, business at in good. there that not little second from look to sense. was quarter, for -- in that schools proved third kid's time it was back

to be are continues the thing going a athletic good only to So, as about their returning kid's be to replace the quarter, to to shoes. and business, fourth athletic school kids I'm say finding need

Mitch Kummetz

again, right. All guys. Thanks

Cliff Sifford

Thank you.

Operator

And we have question the of Susquehanna. from another follow-up line Sam Poser from

open. line is Your

Sam Poser

Thanks again.

stores as the what going store you with to vaccine So, evolve How do your more comes, how which what whenever would your forward? stores working and is you consumer curbside drive that traffic, then many theoretically the are to more to you in people with And -- do -- pickup have communication going e-comm, for it as all you? are in? -- the helps

Cliff Sifford

our understand to store, with are model have and messaging up can experience. product current Shoe in in engaging can they and come Sam buy Carnival they or they online our many home have is customers, and on in we focus in right great different their pick so fashions, the a

online on the so focused in we've store. a buy message pickup And

do well our the most for significantly during last and all delight during year so as particularly They're becomes basis, a because passionate the employees be the in convert and We the store they get which past they're that as to to buy for when great come of Shoe pick great convenience shopper. in as online, the strides months is and an right as important incredibly care and that the like. of that's six service, fashion who plus more online shop customer experience loyal, you to profitable, omnichannel any a is up percent go-forward delivered store think a that shipping terms many house, you advantages have most so brings trying experience retailers. Carnival orders, make more to In lever we XX-hour online of our growing much give in expensive your that on focus X,XXX

Sam Poser

pick are feature online to well? and Can sales you store you what going focus give your some of a do in percentage reserve us to is as idea

Cliff Sifford

a It's still and growing it's less pace. than very orders a at our quarter rapid of

value highly lot absolutely So, they right efficient deliveries to we the it, long, like upside with as million ongoing customer help communication to at of CRM as engagement. members have their later or have We a us have store there's that like that to our I for said, to them doorstep day. quick nearly XX on think

Sam Poser

you very Thank much.

Cliff Sifford

you. Thank

Operator

time. this to closing Cliff for remarks. no the there Sifford, are call back And further at over I Mr. turn questions some you

Cliff Sifford

us Carnival for environment. has Thank joining thank proud hope our you. of I ever-changing been team to this and well. all would to to Show stay what accomplish you today again everyone in I able continue like be

Thanksgiving. again ones and commitment Our business. to a And forward we we speaking that you March. healthy ensure are staying look will to happy holiday continued our once financial loved We hope and you of look success you. with your in strength -- safe again, And the and thank period and have you flexibility and time then

Operator

fiscal gentlemen, for and Carnival's participating. quarter conference Thank call. earnings Shoe this third you Ladies XXXX concludes

You may now disconnect.