Shoe Carnival (SCVL)

Clifton Sifford Vice Chairman and Chief Executive Officer
Mark Worden President and Incoming Chief Executive Officer
Carl Scibetta Senior Executive Vice President, Chief Merchandising Officer
Kerry Jackson Senior Executive Vice President, Chief Financial and Administrative Officer
Mitch Kummetz Pivotal Research
Sam Poser Williams Trading
Greg Pendy Sidoti
Jim Chartier Monness Crespi Hardt
Call transcript
Due to licensing restrictions, you must log in to view earnings call transcripts.

Good morning, and welcome to Shoe Carnival's Second Quarter 2021 Earnings Conference Call. Today's conference is being recorded. It is also being broadcast via the webcast. Any reproduction or 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.

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

Clifton Sifford

to welcome second and quarter you, call. Shoe Thank conference earnings XXXX Carnival's

me are Administrative Executive call Chief Merchandising Executive and President President, and Executive Senior Kerry Worden, today President, Officer; Vice Vice Mark the Carl Scibetta, Chief Jackson, Officer; Financial Incoming Senior and Officer. Joining on Chief

Carl we set to my final proud of CEO. But I I'd of growth Carnival's our to many to have minutes in The of critical my and been you worked as far, initiatives enjoyed for on long-term further let like continue not a have our I’m this extremely we conference place consistent core performance, quarter. close decision our to to Mark, have Shoe have successes shareholders. during convinced know, the full have strong realizing at come center have strategies today Carnival principle well not on years. terrific This management the several is growth so and call be driver our build record the strategic up and of customer team the continue I’m reflect just watch at deliver last implemented first, for As we take will few believe potential. of get excited and Shoe tenure and to management to at us, future. every specifics we the centricity to thus a everything we Kerry into earnings the Shoe Carnival. is successes will CEO. a make. is it's we tirelessly to to catchphrase The has a team and to I’m value performance Customer do I

Our stores are easy to open environment. our shop as with all products sale

not are service we shoe However, store. self a

well associates stores offers with the customer much Our who knowledgeable desires. are as service staffed

up well to our customers merchandising cutter. understanding specific This tenured not down Our are level deep merchant of history category that team market. of made stores have professionals performance of understanding specific and our allows build store cookie vast specific assortments each of team to store a is and who our the consumer

And most assortment depth Our an a of specific that are latest our each with category with history. trends best importantly, the and on are then adequate department systems sizes. broad based runs store's stores the size from stocked well brands by create of

size our stores, Our find they they when one the they customers walk trust into styles want need. that of and the they will

pandemic, were continue we our While invest many businesses the future. to shut in down during

will that internal drive changer technology and for times a has and growth. will game We launched brick-and-mortar immediate many success have years future our that for stores three been infrastructure systems in itself and in us positioned to come. investment online the Our over pay that

service effectively and consumer. positioned system to management has us our order to efficiently Our improve digital

our to management and from our stores. performance east chain improved ultimately far the to supply warehouse our and systems have transportation distribution Our center,

to planning additional CRM more and the to tools call They're most for in best-in-class. catalyst our the a This been results company investment for many management the this a our an valuable make my base, that of fall e-commerce been made lead or And be the react that provide this a customer. which inventory that years. Mark? even side a customer shop helping over to team, make would launch and the share our for for either more believe seize will smart, new continuum levels. future product the These software will and to been season loyal on basis. knowledge today. team Mark testament well need and with successes product believe trend. innovative we that have a has are years, is aggressive the headquarter that to profitable for give provides never several better our integral more Carnival of Mark to has personalized part we of day-to-day the with is will great begin fulfillment and craft will our on investments any it market every these our vital so allowed in the Mark depending new outstanding to CEO initiatives get will new Mark strategic about friend with a quarter, the our and past individual influence organization order plan trends customers. through Shoe served have have and the quickly identify strong strong the in marketing system current turn quickly and has leadership like take store. an to over to it the communication I I way the incredibly gains effectively Further, to our systems, and update and each Carnival new years the It merchants it tenure to last the is truly it team. brands insights decision we CRM these opportunity system to an make. to upon way. of effective even to several methodology Our meaningful We making our ever our the facilitate confident stores us assortment ability center, investments initiatives. I us is overview The for be execute years an talked the plan, us really. allows flow the one cost decisions. to ready leading commitment of chapter, I a been orders strategic is a a strong distribution talented we to Shoe a to X timely they has strategic to his and our of But ongoing and experienced to is ability into and system and and technology of now an growth. vision, will consumer

Mark Worden

Cliff, country. Footwear Shoe far and as Thank our guidance fiscal good raising significantly at across Sales customers annual And profit our Carnival XXXX. to all are results for everyone. you, and such, returned are the morning, stores have today. we resoundingly shopping exceeding expectations

during details, for my the the into context let to I some provide refer will comparisons get me comments. we Before

years our the our fiscal Given the more best provides underlying we to our of ago. quarter well our second transparent relative sustainability as believe picture impact we pandemic a experiencing, period this of strength performance In XXXX, the viewed the current of as is COVID-XX X of view, from the growth the same business. are

further growth, will XXXX rapidly such record provide team Xx sales of indicated accelerated reported operating earnings and be quarter of relative the on I what fiscal provide we record As we unless otherwise. which were QX. expanded posting comparisons in will share The XXXX. second our record to comparisons again Kerry Shoe achieved quarter nearly margins profit the XXXX. Carnival per second the during versus substantially, was quarter, during fiscal Merchandise and highest once

period prior. of also brick-and-mortar the years sales quarter overall in We feeling same the These X XXXX. comp teen stores, geographic double-digit comparable divisions all mid growth QX within increase include conversion customer compared to over our increases growth store results in a store received across XX.X%

e-commerce Importantly, our customer growth needs. continue our to on strategies long-term deliver shopping

second digits. up customer second the sales XXX% associated with e-commerce quarter e-commerce fiscal grew driven For double margin versus traffic the product by up of quarter, Further high was sales XXXX e-commerce and a company points the shareholders. over XXXX to basis both the fiscal to contributor profit compared into grown a for quarter. of has second X,XXX major acquisition pipeline customer new

are patterns XXXX. Turning for to to back-to-school. school similar communities to returning to we The and serve that sports fall are shopping

not over back-to-school return store To weeks first at shopping traffic content, is COVID-XX. our prior to of exceeding XXXX continue and XX% some to levels XXXX back to levels. schools far e-commerce X customers store and did the up for outperform additional sales seasons, compared Our normally overall provide due August, are in

compared size. sales X customers are to August and For merchandise on-trend QX brands to August selection versus and in When XXXX of XX% our shop, partnerships. vendor ended comparable up of XX% a best-in-class and nearly weeks met strong when they're our XXXX. to broad come XXXX Thanks with team the first XX, up styles their

this will guidance back-to-school season specific continue record We forecasting to elaborate and QX momentum expect throughout on results. it the later profit this increased call. Kerry in and sales translates into

the our to we've our or we onto our what e-commerce Shoe investments store the preferred in we do Over and several delivering CRM including the while To program, launching We footwear our logging strategy implementing customers. want experience significant time the at system strengthening when of X been a building our site. needed into at years, our loyalty shopping last this, world-class for a walking made aimed technology, unique same knew customers capabilities. family e-commerce to core get Perks

we brand within four customer leadership result, profit this are family solid will we transformation space. pillars: growth align acceleration. Through customer than a this foundation, further around Carnival's solidify from stronger position Shoe and ever. our will capabilities footwear As innovation, lens, experience first, Building strategic the and

continue are talk about the pillars, me first. we making how we progress will and these to within already the execute strategy. Customers Let

delivering they with is experience the preferred commitment a prides customers, As in on footwear, a customer that first mindset. shop. doubling wherever We're the whenever on relentlessly by our Shoe down leader shopping Carnival operate to family itself and

a customers loyalty members. we then customer and converting Specifically, strategic on acquisition, acquired focus Shoe into prioritize newly Perks

buyers. analytics efforts, more personalization enabling in enhanced Our new are capabilities and customer rapidly, and growing repeat resulting insights customers into converting

customers our QX new loyalty mid XXXX, by Perks double-digit over For our Importance that we program XXXX. also QX percent XX% expanded purchase the we growth trailing versus QX months teens membership Carnival Shoe strategy, and of at by this versus XXXX XX Shoe XXXX. ending grew versus

we critical Next, forefront will drive key of new customer always trends customer to innovating, how experience, first it and financial be personalization ultimately Innovation standpoint. that performance. organization, and our at a systems the acquisition from back be be the long-term the in-store retention customer enhance to end it's staying a whether cornerstone or be of merchandising

We marketing to continue customer innovative engagement. develop ensure strong plans to

As a buy one off get example off. Multiple price at to working. our point last deep customers one they're back-to-school like used buy we promotions, demonstrated analytics looking that one decade. powered is them dilutive, is promotions to represents replaced results, this to competitors quarter, for discount we gives one the One product strategy half We from discussed efforts last dilutive these targeted our standard that data of away value return the profit shifted the during promotions by them. get chain-wide the half which profit the

points going margins performance strategic were through of will Shoe be driving key the X weeks forward. continued resulted XX% in to nearly a innovation store comp Carnival sales increase This driver ultimately basis product August, Our of approach first and shareholder August a for X,XXX creation XXXX. of for differentiator type profit back-to-school value while compared promotional

positive. mentioned, XXX we're plan goal shopping midst target by a transformed store the store of customers' family which completing far to of and already stated our In order warehouse efficiently. Carnival plans. offering modernization and Cliff first our known feedback rewarding Notably, effort. for Last ahead even an our systems, an shopping more multiyear will unique our modernization XXXX fleet we've by allow in to is addition, we're exciting years. I’m footwear found the in-store X thus track our fleet two-thirds X more stores the to on Shoe of and say X consumers aggressive our a to engaging, They enhancing been X providing experience. needs pleased from customers to enhancements Spring pacing are and our of meet within over online overwhelmingly and we as XXXX management us quarter transportation, upgrading infrastructure and our next year experience. in-store be our has The achieve in

into our first to we in reap enviable innovation, enhanced will the translate an two are excellence, transformation. customers we as first which benefits operational deliver position Third, from pillars, and profit

see of we of can record the income this during the fiscal operating in You delivered XXXX. margins most product clearly and second quarter

because X% over we that believe initiatives, addition, strategic the least the of our we ability In at sustain operating to now of have margins long-term.

per surpasses increasing foot growth new expanding new XXXX. previous compared million. on will Our sales to operating accretive X% plan Near-term markets, margins far our our achieve profit sustainably acquisition, foot level target be by growth. and previous average customer to Significant comparable Fourth, share accelerating approaching focused to delivering X% our same-store in be strategic sales for $X.X guidance and of foot. pleased progress square exists At margin for our our square sales will achieved sales our operating sales in $XXX, a on will $X.X $XXX the an our highs runway market store and of per store the year, million. profitability existing We're store foot this sales core with profit our per recent This of per profit square very high-end be shareholders. metrics. over average grow per and XXXX of

company we to sheet cash served execution of strategy disciplined operating strategic as our had allowed do to million QX At debt cash, well a strong investments. further have in continue with will achieve and in The no management as company the $XXX results space. and our the and in Our strength history. a organization has quarter-end, evolve equivalents leader strongest capital balance approximately and the as us across vision combined so

continued year year-to-date, significantly achieved fiscal performance our the guidance. Given increasing setting record we are full

our record results Our strong increased guidance reflects positioning our competitive confidence year-to-date. and fundamentals, achieved in business the

also expectations a addition, over we In fiscal represents back-to-school start will outpaced third quarter any XXXX be that prior to significant given back-to-school the offering the far and last season, year. guidance earlier growth start,

increased led first our the COVID Delta their beyond. recognize outstanding work of outlook will mindset. uncertainty hard and not remainder the for continue strategy solid Carnival customer transmission the excellence work this rates and the achieve great support in light Our we the a without take results foundation continued operational to coupled customer I'm has year to I'm to want We our have with first of innovation their Shoe for the could the and I members their doing. dedication. team commitment, But rising also been excited team of very of increasing cognizant the variant. moment

customers, As such, we and continue to prioritize the health and communities. safety of employees our

While family to have things space. the assortment to quickly environment at the an leader and family well-positioned the the The now footwear Officer to we confident experience I'll value brand an we Chief materially in significant change. and uncertainty Carl remains our we're shopping fluid, customers the product for a years, In react unlock update solidifying product our as strong it closing, while nimble within team's playbook over remain Vice President, of position committed position. are providing footwear to and our are Scibetta, channel. and place strategic preferred to Merchandising innovative Executive will coming efforts for same on Senior performance inventory over in the months time periods turn

Carl Scibetta

Mark. you, Thank

it gross over We since served recommendations. ago, intelligence XX continue margins. to in-store sales promotional has with us focused drive strategy driving to implementing data execute using personalized record This on more well our customers months and strategy

preferences. further provide customer insight We customer allows continue us enhances then our customer This and our to drive targeting more into in to to strategies gain customer any We additional monitor changes merchandising acquisition into which growth. valuable promotional allow flexibility behavior. key flex metrics that insight shopping

the purposeful impacts an to supply period. to react organization made strengths to as for our closely quickly growth negative key a from continues quarter, to industry-wide buy demand to merchant market. a chain for we our to our partners changing ability a as is The disruptions. second more of consumer in We the work reduce team One with vendor normalized anticipated decision return

surge For being for levels great weddings dress second our graduation the like of Shoe events pre-COVID shoes This of Carnival which typically of line the quarter. in be trend early. on parties, position occur in in the anticipation was another example, increased we to and inventory with example

and and that Our dress us styles of the competition stores wanted, over driving the stocked a an shoes were new quarter. giving increase quantities with our in customers edge significant customers in

Our ability set others to in in lean us continues to industry. apart the from

comparisons will the I to including second get as I quarter, the into of for the quarter be comment. in noted, results fiscal Before my XXXX Mark

margins X,XXX The skyrocketed to comparable XXXX. Product over second quarter than and XX.X% points quarter basis the XXXX increased XX.X% fiscal XXXX points XXXX up XXXX. for and compared store compared X,XXX sales over over of basis to more

department categories In-store XX% and double increased. category quarter, digits. of sales to quarter comparable were over to were XXXX, doing more up product all Turning major for as travel the store versus by XXXX entertainment normal level return family sales up lifestyles the every versus in well with

category well high continue Comp As the XX% nonathletic more the on the sales boot all were and demand versus XXXX. by women's increased. XXs rocked additional categories categories. for the seasonal for sports, Sales men's men's categories seasonal nonathletic as women's product communities nonathletic selling kids categories driven Sales over and in the drove reopen, boys over quarters. strong. store were category, but Comparable result, classification. to last up and in quarter. Increases with sales canvass, and driven products. in in dress has we in very performed were athletic girls seen returning to both consistent were have what mix we several Sales both nonathletic a sales by Comp saw and seasonal also casual by a historical in store

categories. a in basis, events in women's despite were athletic QX. with by quarter basis tax to and inventory compared strong X.X% on basketball, athletics, with several We in which grow adult driven Both states ended comparable on the high performances up to the fiscal with and core up and X.X% the had teens to store continue down sales move We XXXX. the dollar men's leadership position XXXX skate our free per a

partners We chain. are are and diligently supply working closely monitoring with key replenish to our vendor our categories

and the for are stores providing year, our the the While will vendor relationships that to continue continue successful team sustain forecasted that, needed of goals shortages to buying we for with in numbers. quarter Kerry more the be financial to our to record turn performance over outstanding into the to Jackson call provide these let balance accomplish through me their our excellent now With year. breaking products and believe insight our full our

Kerry Jackson

you, Thank Carl.

second record XX.X% $XX.X prior store XX.X% of quarter achieved Comparable quarter quarter XXXX for second and fiscal second during impact viewed the during XXXX. an the As for the compared we second outstanding fiscal a relative to the XXXX. second XXXX. Though sales provide on sales the best or increase period Mark our depiction compared as the period. we $XXX.X I'll increased to quarter, same this quarter XXXX COVID-XX some of will net of million mentioned, performance provide we quarter We the XXXX added year, in fiscal compared of of achieved is our of XXXX. to relative will second XXXX, million of more of the place given pandemic fiscal the of to comparisons believe of resource compared our emphasis accurate results XX.X% to to

against XX.X% sales quarter XXXX e-commerce second the in XX% store and second down were the were quarter quarter second in up second of to second XXXX. XXXX to XXX% with compared comparable quarter compared quarter XXXX. line in sales to the quarter up the up but second brick-and-mortar Our compared XXXX XXXX, expectations the

compared Shoe second more when occupancy driven XXXX to by high and finer XXXX. profit in was as point gross to a when margin quarter X,XXX a compared expenses in and by more To These a our slightly percentage basis distribution expenses second merchandise to grew X,XXX put sales. results of Buying, up points and merchandising point XXXX quarter. earlier of $X.X Carl quarter margins quarter a incredible basis the the and record the XXXX points fiscal of million. expenses quarter distribution basis by decreased compared successful tremendous on second the percentage XX.X%, as Second growth, XXX driven a of than Carnival margin clearly and of for XXXX, quarter in our profit sales Cliff, of buying, primarily point our than improvement underscore occupancy gross a to second SG&A XX in margin improvement basis highlighted by Mark strategy XXXX increased the call. the $XX.X execution to million in merchandise

expenses as the for a expense XXXX, driven $XX million. an XXXX sales, of significant in the basis second as of sales, percentage company, percentage to or in extraordinary increased due or Operating income XXXX. $XX.Xmillion When level for to operating X.X% second record compared employee quarter the compensation compared compared increase When quarter to quarter a to SG&A second our compared the million these XX% income continued XXXX XXXX decreased and of net incentive sales second to to a a quarter sales. quarter the of record second quarter in which points increase to was higher increased compensation a was second XXXX. XX.X% increased second SG&A As quarter is of of $XX.X by fiscal XXX result XXXX, XX.X% of The performance. store wages expenses related sales

earnings effective for share million quarter As tax retail XX.X% second per Mark $X.XX increased The was compared fiscal increased was rate XXXX, to second net last share to to at can mentioned the XXXX sustain when has $X.XX. future XXXX Net of operating second we of income period in quarter by Earnings income XXXX. income same environment the $X.XX per diluted per share. to year. we diluted quarter $XX.X earlier, XX.X% XXXX the Compared second for normalized. for quarter margins million of $XX.X believe diluted the least during the the X% compared of

to ended compared $X.X million quarter in was the basis. second cash per quarter in second affecting quarter was to which expense with $X.X or Now to store X.X% basis. million prior the X.X% of year million, Compared $X.X Depreciation on a the compared XXXX, of XXXX. fiscal down the and amortization inventory the $XXX.X inventory is store of flow. up turning We per second quarter on fiscal million to a [ph] information

mentioned with As to our earlier, strategically continue constraints. partners work closely vendor inventory our supply we was to manage current chain given

As XXXX, of had outstanding cash, and cash XX, no and debt were marketable July $XXX.X we total million. securities equivalents

nearly Our $XXX at the the end million borrowing capacity of was quarter.

additional As common the paid approximately share X, XXXX, XXXX. you business share know, owned the they XX.X shares during XX, shares which one stock date, is our split, XX.X increased receive close stock, of on the as was The second shares. to quarter, entitled our at stock the on outstanding in Board form shareholder July shares of Upon and to each of million company's stock of stock million approximately of July split Directors that completion common for effected of record from the the authorized dividend. the a the two-for-one of of each split

During QX, we at repurchased $X cost approximately of XXX,XXX shares common million. total stock a of

had million repurchase for under of repurchase July future XXXX, we available XX, As our program. share $XX

of continue will XXXX. the of under program We shares the fiscal during evaluate to repurchase the repurchase remainder

Turning to our outlook.

the quarter expect third quarter range of range for share expect quarter in to XXXX. $XXX $X.XX we of bills our fiscal third the in the $XXX continue earnings the to the million million third of our quarter, of and to remainder for per $X.XX and to Given results date, net diluted strength

net diluted full of $X.XX billion. to raising our the financial fiscal guidance, now we're range our in in of and This year range per share XXXX earnings sales $X.XX, expect $X.XX billion concludes to review. $X.XX and Additionally, the

for to like the Mark some call to comments. I'd turn back additional Now,

Mark Worden

Kerry. you, Thank

for the call Cliff earnings given recognize like we Q&A, I would take will call. to be moment his a Before open to last this

and has and we vision gratitude First innumerable express Shoe organization decades. the I built an the over our like both partnership my friendship pioneered for Cliff would collective personal his success the the incredible the broader more combined following be great am His foremost, to the personal strategic have honored his appreciate company last to I together and company. years. to us developed level Cliff our Shoe X than drive drives industry investments experience, working build contributions at family I footwear to for Cliff Carnival for the two closely and long-term lead. consumer springboard brand And culture. to also philanthropic to has Carnival. strategic the efforts with on and

In well fact, the proud he honor Holly of person. was by Award recently it Ten so as humanitarian announced T. highest Cliff recognition it December. that Two awarded would for in achievement. We're the that foundation's Memorial Foundation exceptional as is a up be deserved Footwear perfectly The Kenyon this sums

your work First, it's from you. all and to of with transition privilege us you an the role. We at honor into Carnival, Shoe new been a wish nothing but best you as

let's for the So call questions-and-answers. up open now


from comes with Pivotal question Mitch first your And Research. Instructions] Kummetz [Operator

Mitch Kummetz

should taking my questions. for do reluctantly my you. for Cliff, just I'll quarter. congratulations, probably good thanks Yes, though. pretty I add that,

Clifton Sifford

you Mitch, that. thank for

Mitch Kummetz

Of questions. of course, handful I've got a

just of even start some Can maybe talk had strategies better product the competition? little off, and company's macro you think specific quarter, a you're like your bit pent-up may first the you great engagement things strong obviously, that that? acquisition fact some around you have how that's demand, or availabilities business about versus just that of consumer on that, reflect to So a do QX. a When much stimulus, you than having your

Clifton Sifford

put be honest that have to with I'd you, let gotten we am he's that are he's level. going us in the the to next and us Chair, to that where got But years is here. this Mark is done place to I'm the perfectly transition everything CRM to answer he take take through as the the tell you Mitch, us to to so we've I to like things going is question going And what do, to confident to next what level, Vice that I today. because

So Mark, why take don’t that? you

Mark Worden

by Cliff, the we started the the We're congratulations. seeing Thank worked you throughout And thrilled plans QX. as are business fundamentals way more have you, with out we Thank hi, QX. encouraged Mitch. and that for even the

set my earnings. conversion, I back-to-school. gotten is in QX that pace on so share already prepared a We're ready traffic, to were customers team that to As share record Carl remarks, merchandise have are the product the and the the record in QX confident delighting

we and plans momentum the that earnings up on increase are set in working remainder throughout So the in year, to short, tremendous this our of Kerry for strategic well just the maintain and pace believe sales provided. us

Mitch Kummetz

at looks of there guidance, quarter, conservatism on is just is it when that I'm the some the into quarter? baked really you're like but then, And trend. thinking in know look the And the the as about that I sort seeing, balance the of years you ago. the X-year or kind curious, a again, that I'm terms of basis. what's year, just something in back-to-school some you're balance about X moderation over outlook of Kerry, I'm last expecting sort funky of was that think embedded I that on thinking of about

Kerry Jackson

of shoes. all in a buying yes, and before, as back-to-school back-to-school, the normalized outside rest see go expecting we since to then more it's this. presence, like it we're kids expect of gone wouldn't back to seeing to the sequentially school we are we've which of And the the a positive. Though, kids new forced physically quarter Well, kind surge, said nice with demand see peak a and have through

Mitch Kummetz

talk Carl, about And me boots. then, Okay. to

outlook and dress holiday being business I'm kind quarter of you some do your broadly mean, of I the back comments about that nonathletic think a season? so good, made you how talk to for have curious of people the the boot kind just into about kind you boots? can getting business, events, expect You you good about on

Carl Scibetta

Sure, that early plan the digits, are back single I'll half year, of reads boots mid the very you up Mitch. numbers tell small. the We for boot and

have seeing performing, So we to categories that fashion good that obviously happen to we are that multiple expected in keep in 'XX of reads Fairly to it's We're 'XX XX'. derailed because in so we saw boots COVID. of got far. that some that And the that of outstanding accelerate mind. are

of sales fall So for on this we're the boot boots encouraged the year. --

Mitch Kummetz


chant, Any job on looks good on see curious doing you expect And what kind availability. really -- having hearing ones. you the terms in product I'm how chain. But more broadly the are comments you last do that industry? we've of Just people chain? heard of like supply guys couple supply the across are just of good you about out a least What continue And the It to I'm this challenged of you think if year. And to off half things pretty stay you like. to to next of channel ability think again, the into hold at might what slicer that curious relative promotions, how inventory balance look kind kind first there. remain through of clean of the your year

Carl Scibetta

as around. part get And positioned Sure, of we're and things arms quarter where so flowing, now. even my are Mitch. move first sort delays. have remarks. And quarter the right been We're my fourth think where to our We've feel those inventory. the quoted we is we anticipated on have around all delays, to We with supply quite of good That's trying pretty day, -- our we that we through deliver products consuming and about inventory we are. this part we that based fortunate levels, third move of have been chain, trying the we into pleased able far I prepared to

at move -- that issues to that has how complete the to executed Vietnam. that see we we with today. industry team this the going very Spring, vision continuing, into have play out. in do As we're Right now having our and don't that's well. late say will I especially is fourth having We But quarter

vendor and on supported here think on the be in really throughout the channel I I based see be fall, that up of although I hold continue that will have to position And able stepped possibility expect inventory far, promotion to the season. light inventory once our do us. partners off will So our and again

Mitch Kummetz

should more And of lastly, where level, sustainable kind kind correctly, guys which said I land you of from you a if where down X% guys Okay. that year. think it'd be that be heard you then you would operating this I think of margins

think but expect kind I the give know that? that some just do I that really mean, come would of deleverage at has kind sustainable or think you've you you this back. BOGOs, it what just on a margins as have of normalizes? merch just is -- some, you down you good, continues, aren't I give you you moved from the I'm talk margin little think to maybe curious, back? been environment Can Just that bit, away would So level? it that the so of through that you the the maybe Is sales

Mark Worden

XXXX versus compare to going stance. our I'm in Mitch. pre-pandemic historical Sure,

we running to operating put profit as to leading We get plan have a place X% by the high for Xs, that X margin XXXX pre-pandemic historically into were Xs, range in low improvement transformational in years it. a

we our last plans X% now talked our we focus, customer transformation. and most and place new Those variety that the giving to systems, importantly, about of first we've X% our things we're in a including in our compared XXXX. of innovation, faster view that by our So that than a new are is coming thought, guidance to nature to quarters, put bear in norm

at But them, them the of a plans, basis, it personalized best for that. driver merchandise we're doing be talking than leveraging product So that trends. a still delighting our strategy we're our will them. buying on CRM, from customer, margins shifted that more delivers price this we've thrilled landing And based all providing higher it's best-in-class value we're significantly our at our on with marketing The and one-on-one promotional a primary pre-pandemic. of not to

low leverage, the overall very perspective. ready give X the There's and can we new and and ready So confident other structures, on we revenue we're a guidance to chain, step today, other as guidance that for not lot we’ve therefore we today we're profitability about the to revenue But are from we're come need items, there cost pre-pandemic that. change. supply to X giving out not confident or change step not learn in but XX

Mitch Kummetz

Cliff. miss you on guys. to but having luck, calls, we're right, to know I probably going Thanks. these going All miss not you're Okay. Good them.

So thanks again.

Clifton Sifford

Thank you.


Your Trading. next question is from Sam Poser Williams with

Sam Poser

now everybody. spectacular far morning, again. amazing, I've says good Well, And quarter the was like hope anything unbelievable nobody by seen. This I ever that ever most

Now moving on …

Clifton Sifford

thank you, Sam. Well,

Mark Worden

[indiscernible]. for Sam you, Thank

Sam Poser

right. All

back different So the all of orders, post situation. mean, availability to stuff I early inventory holiday I -- pushing want of the into we are dig on. sorts one, going just potential lots number cancellations, hearing stuff, to vendors

in how -- -- And are when the the December, much balance what So year? think those in we issue. that you of is issues, about holiday, even January, 'XX how because the Holiday Spring now. that be the that let's that in guidance to of are impacting 'XX it let's a for bigger but say be be doing say Spring the what in you primetime for -- big, position sounds sure can make right wildcard to seems is could like

Mark Worden

so much congratulations. Mark. It's Sam. Hi, the Thanks for

have baked and concerns into chain has in our Kerry the provided We today. guidance QX supply QX that

feel with landscape the we current confident situation So the in the supply chain. global in

We to. uncertainty 'XX. still what are build I as to Carl the start we achieve and season to ask exists to the on that path we to to in holiday just track the guided mean, on look outlook

Carl Scibetta

an meaning year. season. we've products still like mentioned somewhat holiday next good feel the through We Sam. of of Hi, Getting the That's delivery January, season, in February of unknown. into holiday getting about

the and are more know what cancellations all seeing every majority and We're products, is are. point, we know about are some regarding shifts. answers seeing at chain. moves you we're day We large Vietnam this We'll in the noise of those -- from although not supply delays delivery vendors our quantity getting getting of we're a that

in So game me getting day it's give And it's to fall, to as the feel February. January, for holiday. And point than we're where far to tell good is 'XX at then QX that. and more getting We updates fall more as hard going early beginning fall, this through you inventory. on every really early

Sam Poser

can that business versus e-commerce 'XX? versus can you the in line -- said numbers, you then, you tell was was all your with you in e-comm -- last what Can -- And giving expectation. was year other Okay. XQ the us

Mark Worden

said, I X Sam. new X ago. the It's versus customers through landed, are where we're years double-digit for acquisition the as of we now exactly with August, we Sure, growth mean, low Like versus it's mid in with digital. I brought line we year. last XXX% planned we we into down by where our versus weeks in said, delighted now Through double-digit are And down year. had XXXX,

to customers excited how faster. are even store, incredibly bricks-and-mortar We our have and fast returned returned by they’ve

and than as the year in [indiscernible] to taken do we've X in ago, that thought CRM, had I X the with ago. bricks-and-mortar and call faster customers said held of in significantly out, sales sales call than acquisition switching But we higher, to at the and our dramatically higher accelerated the want our I both e-comm we So digital anticipated. is years line that back than

Sam Poser


was gave was last just the So I'm we that e-commerce XX% just number. through DICK'S -- understand roof. everybody said a business Sporting reported They going to be they year's business earnings, year-over-year. their Goods [indiscernible]. e-commerce all down -- understand They

last it was what the give year, So versus just us number. down

this number the -- is us Give the number. the gave just is us year? what understand You down XXX. just I it's -- that we

Mark Worden

year-to-date Sure, e-commerce sales. XX% proximately Sam. down Yes, we're

Sam Poser

second the And in quarter?

Mark Worden

front its have line not of higher the now, Sam, us but right but Do second that, in in with quarter expectations. than

Sam Poser

productivity for of do closing you the the How opening like situation the up? see year are the store -- now you of then, -- you store next year plans. for balance what's what -- are given how stores going And see into look right your do

Mark Worden

reigniting really Yes, right the in we are all as well plans. the now as plan energy we're excited growth store putting modernization about the

the those our really and driving XXXX. net plans is Our of get store as current profitability. we currently on finding fleet approach focused new sites, XXXX the to accelerating with acceleration, are the growth modernization

Sam Poser

year, for stores? this to And balance the the plan what's right of now

Mark Worden

still are no that close performing. one to expect this opened store to just We low we three, have terms Still continue last to quarter. natural on change. two -- we've we year And

Sam Poser

All congratulations non-retirement. right. and Cliff -- Okay. And retirement your enjoy

Clifton Sifford

Sam. you, Thank


Greg question next with is Sidoti. Pendy from Your

Greg Pendy

questions. Hey, my guys. for Thanks taking

most you're think two. context is mean, winning because near-term you guess that past in I typically that of, Just in kind mentioned call -- would August, I just the I of earlier outlook where around is kind athletic that's market I the the and guess XX% of the question share. be, the on mentioned you've

Carl Scibetta

athletics that's the month before were less of the like Greg. now believe categories, right fashion than you they of can at XX% accelerating slowing. tell Carl. reflection of Typically little total. of they of bit fall This a the Hi, And I August. we're don't It's beginning not XXXX, a reflection, percentage the in athletic of other sales for derailed. is that athletic get I running a

slightly So giant number. but still than XX%, less a

Greg Pendy

I can you know about little kind Understood. to XXXX, the a your to customer getting that you kind refund refunds? then remember of tax season about anniversarying to credits even what won't relative child it's and Okay. were how that of just be on talk if be think just getting -- will we the was what like -- care, that probably can the and And they're of maybe sense But demographic, considering credit, ways their How now now thinking that? in the out. should people they

Clifton Sifford

been the be come comp double-digit tax conversion we're have live, of getting month early, the sales been spike Still out, strong, Shoe new seems been to it's X checks. and each both weeks, the We've to material continuously stores continue specifically tax that seeing above. coming have We're lapping little or come good customers but seen, for the X weeks are our credits following and following so has been into traffic consistent monthly. a Carnival to to motivated out for credits that child a exceptional the after far

into of the Carnival clearly Shoe for XXXX traffic we yet that but for the customer, a that it's It's choosing conversions understand we our resonating in the part exceptional. will expectations continue with to of early are So seeing are fuel impact and be, built they’re the to we forecast remainder similar what the growth. year too credits, stated

Greg Pendy

Okay. That's very helpful.


question Chartier Monness is next Jim Your from Hardt. Crespi with

Jim Chartier

questions. driven of years composition the customers? much by and increased versus last and much about is the talk I X how taking to for my just base is spend being the your customer Good existing sales wanted in growth the XXXX. your over by How morning. an Thanks gains

Mark Worden

are believe. primary in of to versus lion's been by new the product, we had right to morning. Good We point and acquisition the driven chain question. right The that the the fuel Thank of convert importantly see in-stock is for disruption. share success double-digit the pre-pandemic. our the have being at we the during have supply to bringing you gains trend customer time the what the Carl credit a his time conversion growth and organization on is And

So, of without acquisition primary. a has shadow been new a customer doubt,

And double-digit. highest but our climb customers loyalty member bring Perks double-digit able to to has make think in, grown been it’s to though, we Shoe ever quarter that the the been. Secondary also program that's our the magic Shoe we've Perks loyalty

I most think chain of in-store profitable. are they’re which are value becoming really members awareness, loyalty them enjoying bringing and we buying through then it that trial importantly, and

business dynamics we’re underlying are thrilled fundamentals. the for seeing the So we with

Jim Chartier

are last then, terms Great. in new behaving And new of the there And earlier customers? year, you a acquired for customers? maturation period that customers cohorts is new of similar they to then,

Mark Worden

the They are differently our of acquisition in incredibly activity. fact. positive promotion, coming we new new promotional at through and If reacting behaving was profitability core look XXXX, lower strategy in to customer

seen. acquisition, specifically our we've experience highest new and to targeting margin it's the brands ever and with basket profitability and the taking are communication the average the customer up styles, seen Now, levels we with of levels highest our some size to we've

CRM looking customer not quite a investments, acting are oriented internally. cheap. we are still in I would they that's for And So are say. positively bringing that's but we a big the differentiator value articulating And to

value give is price, shareholders. not for the will the giving a at to that but price for value away best We right will we cheap product, have

Jim Chartier

distribution just many on next And kind that? shops stores Nike’s Nike of does Great. plan follow-up, of how within the if then, going XXX by kind about And the forward? to thinking the then play you how a include will modernization are of benefits how so, you store modernize shop? And Nike from to rationalization plan, those Spring,

Mark Worden


on call, said modernization we is store are rolling our with pleased we out. the As very

the payers to least We done. to plan exceed are at have two-thirds X-year of to track store on for the the X

Related of to didn’t we that be on, to even well. our going teams right that we have will for of first this have that’s approximately very shops still confident very fleet quarter completed all contract Spring and is exciting Spring the tirelessly those XXX More are have will have of going 'XX company are part all the by them, our COVID share Nike year, or completed. this plan that before, those first proud I completed despite in first be and to the of XXX lion's in XX half shops And or and our that's we by share XX question of more So next them. worked to will now refresh to and the specifically is your be Nike quarter. and first

Jim Chartier

then, And kind Nike’s to just start see on of will when you some wholesale from the thoughts Great. benefit distribution of narrowing?

Carl Scibetta

get individual This at about Hi. this [indiscernible] point. And the is call and Carl. it's guess into individual time. brands really We don’t on that are at we I how this planning brands

Jim Chartier

had. all That’s great. Thank you. I Okay,

Mark Worden

you. Thank


have from follow-up Kummetz question Mitch with You a Pivotal Research.

Mitch Kummetz

the ago? can quarter or Kerry, was anything maybe speak thanks. that great could least don’t, lumpy, look then great know all to versus month be obviously just of QX. kind it any at at if follow-up. you maybe months when the And Hi, how you you one curious, you I’m on consistent if a QX you years month? have just basis, to have I I by numbers X -- the quarter start helpful? on X-year don’t quick you would and was

Kerry Jackson

June XX Against up a and year, strong then low the had and in July was very plus double we the May prior range digits.

So strong we had quarter. a very

Mitch Kummetz

to it even you ago, any more? X was how years as sense Do versus was have that

Kerry Jackson

the was it Yes, numbers. X-year

Mitch Kummetz

X-year. That was the

Okay. year. I’m sorry, thought prior to I last said you

Thank Okay. right. you. All


the this Sifford time. There back questions will turn I further for to call are Mr. over no remarks. now at closing

Clifton Sifford

you. the customers, look lead believes like to Directors customer I working express success everyone -- home. I family say the to team, our watch family. to part my all for partners, joined truly world. been investors, latitude Board and XX. feel such includes employees, the Shoe company Board has wait Carnival This impressive I continue November. the time with again. our vendor Carnival great to work. our the Mark once it the in that to of and you and Thank gratitude team call fully do win. when who Shoe this team cannot the you be Shoe I’ve and Thank look the and on the I our full such past organization Carnival truly wish the will Mark honor years I in you mean cannot speaking always It and of for X us with it team this an forward to all focused forward to my and as in with you I gives has to


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

disconnect. may You now