HIBB - Earnings call transcript Q3 2019

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to the Hibbett Sports Third Quarter 2019 Earnings Conference Call.

During the presentation, all participants will be in a listen-only mode. Afterwards, we will conduct a question-and-answer session. [Operator Instructions] As a reminder, this conference is being recorded Tuesday, November 27, 2018. to conference like to now would turn over the Mr. I with Corporate Watson Communications. Pat sir. Please go ahead,

Patrick Watson

Thank joining third everyone which and nine you for of ended operating Company's review months XXXX. results financial on the November for year the fiscal quarter X, first Hibbett and XXXX, Sports to

which are Company's the to of the XXXX statements. in I to performance, results from materially the facts, management's including future events reflect in be everyone response and comments and These based Harbor Act during Private subject with are Before we provisions should to uncertainties future remind may not in differ made of historical statements. begin, this questions, reliance on forward-looking anticipated the are on forward-looking and your statements, would like views to risks. current that conference those Reform the Securities discussed call Company's that Litigation those respect It Safe noted financial and

cause to of the Company's been issued XX-K in more We Securities factors morning, Some and with the news this filings Report for you earlier Exchange or that on other in contribute the and refer described Form Annual differences these the release have sources such to in information. Commission. could

time-sensitive go to turn of Jeff. like date, I the XX over Lastly, Jeff I'd as call to of webcast and to call Because of would November policy days. Officer. Chief the this Executive are information, remarks conference of to like a believed XX, this Sports during archived understandings Please conference the Rosenthal, replay this limit ahead, today's of that call Hibbett of accurate management's now nature period to the it point out information based is XXXX. on

Jeffry Rosenthal

$XX.X sales Hibbett Thank Chief Briskin, Scott total X.X% and Comparable ending Welcome and Store me have increased I morning, Senior Total net million, third XX-week last sales million Senior October and with $XXX.X represented a the Cathy you, net year-over-year XX-week X, sales decrease million $XXX.X the Bowman, of XXXX, Merchant; third period resulting Jared Senior for Pryor, due for E-commerce XX, the this to of the of compared for to VP, X.X%. Team of the morning decreased good million with $XX.X XXXX. earnings November period ended December sales X.X% in due of decrease Sports decrease Company’s the $X.X and and the quarter included week to of sale XXXX. from negative The Operations. VP quarter. XX-week VP sales shift to the call. in everyone. approximately a XX%, Pat, CFO; million Division increased year,

momentum see business equipment, our the sales upside the in Footwear We to fourth in quarter accessory good relatively comparable were softness business, quarter. helps and our which our offset licensed, premium in products branded improve. although depth continue of to continues apparel flat, in see as we

shareholder Also that assortment, their with in Gear come. capabilities. quarter, the on customer service, Buy e-commerce benefit our expectations, Online, app and in Store Pick continued the from business to we a will the compelling City acquisition. and expect We new superior we third continues closed in enhancements we add Reserve to we our traction Our to and mobile believe Up for Store, exceed merchandise years as value

growth the future. profitably with together. are the opportunity for Strategically City also will the excited partners in Gear grow team, we vendor very Our with

X, one closed relocated For stores, new expanded XXXX. as Hibbett and underperforming the X,XXX to bringing XX store the XX stores, states base seven November quarter, store or in opened of

improve our store order in We our base to will continue profitability. size to right

digital up quarter, During sales year-over-year. the were XX%

like core digital our investments Our website, focus apps, our not and our digital investment BOPIS intense The overall well programs as class only on these capabilities as gains. in included marketing experience. ROPIS, best-in-plate drove commerce and but strategy also

have margins year-over-year. e-commerce improved significantly Our

being a selling of shifted to significantly have clearance a We vehicle from majority full-price merchandise.

a third were result, gross year-over-year improved quarter. As in margin the dollars

spends as customer as our twice than more per customers. year much store-only omnichannel Our

growth expect more as use We apps, and also and website and new programs. here to ROPIS continue customers our BOPIS our

totaled do our of sales XX% we value program mentality. sales benefits We launched number from Although, of elements members. and essential increased growth. year. CRM growth. it coming loyalty year, When we have continuing for Members’ of versus to were mindset year-over-year review this X% QX and Most year-over-year. to last late transactions are omnichannel is check-the-box average digital, these comes per last Total see growth of not We sales up XX% is and critical.

win. will to to play We continue

now Gear. into our move connect acquisition, I the our Senior optimistic City Jared that Briskin, with our and Merchant omnichannel to for partnerships, our quarter, VP, about merchandise want will over we Hibbett to our call I our we dedication. assortments, sought-after are will turn Gear work that trends. the all City talk with thank of customers and their fourth associates brand and to Chief As our hard capabilities

Jared Briskin

Thank you, Jeff. Good morning.

quarter we During and positive apparel, two comp the sales store our in cleated and percentage accessories, products business, points. comps for and footwear, impacted third achieved licensed by equipment the declines quarter,

was slightly. high in single-digits, drive store in period. The bottoms, women's while cleaner and licensed and improved offset also by challenges much positive was also for the apparel down business high apparel and and apparel fourth increased fleece, business business down significant baseball connects socks. accessory the extended up consecutive trend, Cleated and investments was gains consecutive posted in were to quarter. quarter sneaker tees a was challenging in comp sizes up due apparel backpacks, and were performed to mid well by major low high in businesses and strong was our Series quarter. sneaker especially is crossbody kids’ both mid men's year-ago offset that business NFL Teamsports during category in continue World single-digits. Men's the Astros its and overall college still bags The apparel down single-digits. up Houston business single-digits, single-digits. trend single-digits, the double-digits, win Sportswear declined with Our was relevant women's down loss our This gain the fourth league the business

fifth improve cleats, business and and Equipment single-digits product Bowman prior comp Women's allocations. cleats, Kids' were pipeline fitness, did gains Solid availability kids not up for From to football. were declines soft volleyball inventory baseball continue comp quarterly softball perspective, down our cleats. baseball, of and access impacted much slightly call to posting we the a a now consecutive footwear tracks, offset remains shoes than Scott basketball, down significantly over and gain. points product an soccer offset I'll positive Men's strong compared remain to financial consumer. year. turn and store football are was discuss we the business results. declines Positive and confident high year-ago business that was was fresher our is by the bikes and Footwear quarter. there in the volleyball, with in our by and high significant assortments our single-digits. resonate to in in will

Scott Bowman

morning. good and Jared, Thanks,

million the basis August, X.X%. cleaner the million negative a in increased sales third negative Total Gross X.X% due the Division as The the comp By basis lower a basis million deleverage income costs E-commerce basis result last non-GAAP with as as to XX.X%, last more XXX acquisition. X.X% the to for continue a the month, to rate The at in full-priced year. in rate non-recurring compared points percent which profit due additional of $X.XX comp was excluding overall sale points rate due million, with rate expenses store City X.X% percent increased growth of sales. to and share year's expenses SG&A per quarter. week-shift after basis and For Earnings marketing and a $X.X during on back-to-school the X.X% but due sale investments season tax of decrease mainly of October. were Gear of XX points increased share to was XX inventory compared sales GAAP a to XX.X%. $X.X was share impact the as to basis federal to was in represented related a reform. tax percent in a XX associated sales The associated quarter show sales. of reduction margin of selling. of and Product from decreased deleverage mainly sales of $XXX.X sales. and costs in to XXX mainly X% X.X% $XX.X for per per which and related and the X.X% quarter quarter, occupancy our in Team and of City Gear, year, to made in $X.XX quarter September increase last the on the mainly decrease related a lower increased was the the for due significant Logistics increased total sales quarter. decreased to points, sales acquisition increased

million borrowings Company million million the in $XXX revolving with quarter year, balance ended Turning the versus sheet. cash facilities. with The last to in our $XX credit outstanding $XX on

in a existing $X under a the the repurchased in $XXX spent quarter-end, and have purchase Inventory decreased completed remaining $XX be total in the Also, an adjustments of from for year quarter, bringing quarter announced, for per borrowings basis. year-to-date the Year-to-date, and $X.X well in the the quarter. million total the last total million. $XX.X the cash City additional authorization. million acquisition $XX quarter. XXX,XXX Company for XXX,XXX had million. up we fourth million store previously balance shares we shares on X% At CapEx Gear million price was As to as the purchase purchased of recently we was will for of the as We approximately to X% a

Turning to our guidance.

updating guidance are following changes. We with full-year our the

per Gear. of GAAP per a related a to earnings updating are the impact share share on includes negative range $X.XX of $X.XX, $X.XX acquisition $X.XX non-recurring costs We of to which to City to the for basis

compared these the of per $X.XX. $X.XX, $X.XX to be expected non-GAAP of to share previous are Excluding guidance earnings range to $X.XX in costs, which to

of Hibbett business for not business and purposes, note, Also, business City relate material is the the expect the clean activities in any only, include which acquisition other This up to following to some expenses the for a the earning prepare due we to and for costs. inventory guidance sales fourth mainly does year. Gear contribution As non-recurring SG&A do to from consistency quarter. next

to fourth week-shift $X.X of the impact an XX estimated positive and year range For in last This of negative from Also, sale updating of Division to are the impact last quarter year's a to we Team to flat million week. the negative sales, due due our X%. our $XXX,XXX positive we previous X% guidance to a for X%. see comp to guidance negative of of sales, total compared

we City costs For SG&A our GAAP a are includes basis, XX.X% related on to increase guidance Gear. updating to expense, to an of acquisition X.X% which

X% costs, we non-GAAP is prior these X% consistent expect an increase of to basis, guidance. on which Excluding with a

open two and closures XX including For closures store fourth growth, and closed due to XX guidance the impact now XX we stores compared and openings for stores previous to anticipated approximately to XX closures. expect quarter. XX hurricane to XX This of XX to the

to will We take store performance the our lease will of our flexible and continue improve our advantage store base. productivity structures evaluate of to we

ready operator, million for of guidance update, compared to $XX For of we questions. total year are million to we to a $XX With anticipate $XX million. the now million that share $XX for prior buybacks,

Operator

Thank question Please question. Instructions] proceed the with first Seth with our Suisse. you. Sigman Credit [Operator your of comes from line And

Seth Sigman

relates know Thanks for margin curious, question pieces could accretive about you. to year, accretive, to be this you be? Good more next specifically in here. moving how I talked obviously that so it a being modeling Thank year, lot. you've could details relates think FYXXXX talking just start And point also about about the it How how year? that potentially first on as next just are any My Gear, a past morning, outlook? we City should a you at guys. guys number to I'm of actually, where

Scott Bowman

will going not right next Gear lot next much on the now next year. next details on and get We’re provide be more a share of details on But City We’ll year call. to accretive definitely call. we details the anticipate into we'll our whole that

Seth Sigman

on trends specifically margin online, down it your operating and margin were basis as to relates guess XXX I quarter margins this outlook points. the Okay. the

just composition that of online mix you. the store but you remains, that much relates margins shift that curious to Thank seeing sort then, down, how of Just stores I that the composition? stabilize to up. channel with online down, how medium- comps guess, assuming to And think given up, you're longer-term, us as about could bridge

Scott Bowman

business, see the to that coming a I did because we of effect of the wasn't fairly shift, so we did due out week with of but week mean the the on million that sizable number $XX margin over quite Yes, the quarter see a impact e-commerce effect. it bit. impact largest some did Sure. with so revenue shifts, the

business, we likely penetration a though continue on higher As seeing the what forward that we're it that look the on has will business. e-commerce that actually to margin rate is improving even and grow, is

is margin. that impact So offsetting overall the the to

Seth Sigman

year-over-year, able to and speak margin I be base the stores? an online to guess, it to, dilutive the up are the you it's difference would So but overall? still assume I between

Scott Bowman

closing. been past, been in it still Not that is has as Yes, had as it gap so the dilutive. dilutive

about main the but it the fact to our that way margin are think of the the impacts is, also is e-commerce that go-to think clearance freight outlet. naturally to cost, I kind it

we sell so our So continue. than that of stores will percentage always clearance higher will online by a habits shopping and of in the nature just

e-comm think we'll still freight so we'll gap on cost, do which channel. we a little bit And because year, to with we to clearance though a we more see closed that little bit even continue next will the sell the lower just

Seth Sigman

Gotcha.

much. Thanks Okay. very

Jeffry Rosenthal

Thanks. Sure.

Operator

comes line with question Lyon your next Our of with Please from Canaccord proceed Camilo the Genuity. question.

Camilo Lyon

everyone. morning, Good you. Thank

Just questions had here. a couple of

commentary I was and quarter with your footwear-related for upside about that First, comment. fourth the there, potential think a the

have side new year that? just And and increasing? more year? volume Is just speak could can there And outlook? better a follow-up. helpful. to that what the it in see you how articulate Jordan Is footwear are it differs I you're that if into That'd seeing be innovation innovations? you the you then, Or from next If on a this

Jared Briskin

is This Jared. Yes.

We fourth regard into do less But Jordan quarter next we into somewhat We significantly with trend-relevant continue significantly the real quarter footwear. as get our a of some improve, the to stabilized our allocations and headwind improved. we as and for do see some are on business key think, inventory I models. on upside we some well fourth the access points to in believe position year. see

vendors partners. been great Our have

it. excited So our fourth take expectations pretty pipeline advantage moving to see full for forward, and we a and do quarter product of are of

Camilo Lyon

brands driving Are or of care either to this mention rest there from any callouts launches you'd particularly specific that the upside? are

Jared Briskin

Yes.

Balance, too numerous we’ve around Air results. including strong in whether Air I smaller seen The certainly improvement gains Reeboks remains detailed, with PUMA, then think, XXs, Nike XXs, our XXX, significant getting very New very, without Platinum seeing we’re models, be real significant Brooks. of Force vendors, business some the platform Vans, Timberland, primarily and our Max very And across VaporMax platform it strong.

real some really So certainly opportunities seeing board. NMD the then and excited the Yeezy. still about perspective, And an nice across across platforms like Adi results from

of that portfolio and this quarter a going forward. So full could products very we feel have drive we like help

Camilo Lyon

maybe overall the you some apparel nice And detail be the Thank that be great. for helpful branded if any a on would Jared. you color to give about comp talked too? there could piece, that around you apparel to contributor continued the side, That's

Jared Briskin

Yes.

follow as we ensure our court press So our a connectivity we put from possible, really that as our outfit sneaker assortments and a to ensure to strong of there are is within continue trend and and relevant an that business full perspective. as assortments have that lot

in was with of there there excited extended as in like opportunity sizes are felt and women's the some nice as assortment like some gains nice big significant my so new some I brands results and So mentioned Fila, we along and and seen with men's, that extended improved and a additions genders we Adi, made whitespace seeing and And it. we've there. from about Nike both results tall in around then we've pretty really some and investments sizes primarily Champion of commentary, some substantial

Camilo Lyon

driven the on be performance this that that – starting trends you're perspective turn to apparel is up? does anything is lifestyle a to from this sportswear seeing? there trend Is a Or continue side continued

Jared Briskin

Yes. I still would question. trend say lifestyle without a it's

side We the of the of still marketplace stabilization seeing we’re performance have seeing but least and a sportswear somewhat future. in foreseeable like we're resurgence some particular at compression, in more driven as seen for on category, the products, some there, core the

Camilo Lyon

those Great. then of range kind to be get And Jeff initiatives. a up negative the driving and your like up initiative, comps quarter, what store in of engaging Thank single-digit It future? mid-to-high store taking this Pick traffic does any you're Buy any the to in or I for seeing, of to wanted Online Store, those in unfold Store foreseeable Online growth looks the continue thoughts Scott, if hold are trend Reserve e-comm comps, positive traffic or on on Pick that you continue negative you. sort initiatives traction and driving of

Jeffry Rosenthal

Yes. launched one a and extra seeing seeing right with over rates significant up. when We're it. full of actually month to BOPIS ROPIS. We're now so our pick our and really ROPIS stores XX% attachment and just through people September, late We some business come BOPIS

that much they extra And so think drive far it. very continue and still results will our driving as positives it's help was and have about of drive to some we which encouraged educating Christmas incentives I the with early, can So to time, that around really traffic, traffic to there we customers especially get that, we a think we traffic our lot to closer there we as do as but our do will stores stores.

Scott Bowman

on rolled recently October, since out some in out stores rolled BOPIS/ROPIS add work ability done And to use and BOPIS ROPIS website. we on rolled app were I'm but bit, our the a we to mobile on out as well. have than our that. and and just little All

So think benefit. will additional that be we an

out So average X of far at program. rating. very the They're X the is giving customers a rating the kind like high of

About So cases execution have not having getting really from product BOPIS some practice we're Also Reserve customers item in the most about some any getting the in they're fulfilling XX% that XX in the another good of the XX% when of pretty orders store up or good good stores gotten Online. problem, minute our stores, and feedback. and so delivering orders, are picking XX% the window.

days, stats drive it early early good so in of but forward. to will continue and read encouraged kind it's create still pretty some the awareness So and far, on on we're more going

Camilo Lyon

in you luck a So guys good have holiday season.

Jeffry Rosenthal

you. Thank

Jared Briskin

Thank you.

Operator

Our next Peter Benedict line Baird. W. of question comes Robert from the proceed with with your Please question.

Peter Benedict

Hi, Thanks. guys.

an is to just, Scott consolidated Gear what's the have that the about there, going question Now expected the should in we there? how on the inventory think where that maybe facility, at your just just out you're end settles and update draw of view First year? credit on the City

Scott Bowman

Yes.

credit very the beginning the should a So turns inventory additive $XX overall do then flat, that for end fourth of of we tick $XX higher, be be Gear maybe million on at City to And million Hibbett but and additive. so are that. facilities, said, another to the will then will similar like I the ours, the about then their at be And quarter. quarter

the $XX So down for the have fourth the about City million credit facilities we and outstanding in pay we'll on that to begin acquisition quarter. of Gear,

Peter Benedict

Got it.

that then into function separate? just on about parts on be then brought you can of of doing the with systems integration next what remain umbrella that. talk to and are you business on Thank type – Hibbett and City kind year? you work What maybe going the plan And will of the Okay. the

Jeffry Rosenthal

or a of making is we financials accounting major continue then the Really Hibbett a to their sure And roadmap business recovery to make doing as their sure priorities the controls, to of more longer-term and IT be standard. work lot working, Peter be compliance the from standpoint. on that up internal consolidate standpoint forth. from system so to out security website standpoint, of to to kind map able be mechanism PCI are systems, learn testing that get IT that that an on an continue performance an will to near-term visibility that Most get separate and from just to brought their disaster and would website cure and they're to into

is of continue of lot it to the is of and So like business that merchandising at learn before Those we sure warehouse we to a kind more solid we very management. of will backend out later stuff plan. and kind term the longer a look make come business the applications, map that want as

Peter Benedict

the my expense And helpful. outlook now. around last Scott, That's kind just question, occupancy of Okay.

bring at just As where even dynamic flattish, operate you Gear the I ratio? it you is understand year let's a into might to of look leverage next kind see if occupancy does City how forward, say, mean, business play I mean, you numbers. could trying lower that comps that out? occupancy are thing

Scott Bowman

different it's really to think don't enough make I overall number. Peter Yes. a the on difference

So in I to expense our occupancy in much wouldn't difference City related model Gear. really

Peter Benedict

great. much. Okay, Thanks so

Jeffry Rosenthal

Thanks Peter.

Operator

Deutsche Bank. question comes of Baker with from next with your question. line Our proceed Mike Please the

Michael Baker

Hi, thanks.

for Did a clarifications. immaterial fourth City that had of the that the slightly does material? in couple the you quarter your not you back say be acquisition when think And said fourth press how I made – or quarter. Just release accretive would for you

is just different slightly change or just that a that same is So language? sort idea, of

Jeffry Rosenthal

the get fourth My that that costs favorability some Yes, work just and from the in a slightly any transition is up their from quarter, a inventory different itself. and bit cleaned will thought so language. offset the business do we'll from standpoint

And to so for a business. outlook fourth for me that's that what quarter kind of flat got

Michael Baker

needed to that imply you that you the thought acquisition cleaned saw you some So be up? than does a inventory was when had little made that different that

Jeffry Rosenthal

that different. we flat and me year as as until we estimates mean, their possible fine-tune as kind not a would number. to so materially what that sure of we we the to of got – make around inventory on want clean take as kind I that got No, end

Michael Baker

year just to that follow-up X% not? for or then does be acquisition that understand costs, the to but more X% the one costs I that include SG&A of clear, Gear’s Okay, excludes City any increase thanks. operating the And

Jeffry Rosenthal

No, that does not.

I So for Hibbett tried that's make business. purposes. business Hibbett to just with apples-to-apples consistency it for the the

as look overall your and flat separately earnings impact that at City the I or business, model knowing so you guided would separately. model So that about that Gear just the model, be

little change will will percentages the that standpoint a bit, from be earning but So an it flat. about

Michael Baker

Yes.

Okay, one then more. understood. And finally,

the You number store is the due City have closures, acquisition? fewer that maybe all So increased those need you Hibbett of stores? to stores, with Gear

Scott Bowman

we to No, continue the City to with to right do everything. transaction. look It at unproductive size Gear trying stores and has nothing really

Michael Baker

Okay. the Thanks. color. Appreciate

Jeffry Rosenthal

you. Thank

Operator

next from Rafe of our of And proceed. Please America Jadrosich Merrill comes line question the with Bank Lynch.

Rafe Jadrosich

Hi, taking the questions. good for morning. Thanks

maybe question, can environment you the so fourth far quarter? the and of through for compared last The promotional what about you're talk year rest to holiday first expecting the

Jeffry Rosenthal

I that it think expect a promotional to quarter was still going the that and cases, pretty through year. fourth last stay I No, it's more promotional In as aggressive, as way. it’s some little bit but

Rafe Jadrosich

what little then referencing helpful. then that fourth improve That's a if helpful of of women's on bit your availability little more from what be the and kind bit will decelerated why give in XQ expect footwear, deceleration? just on comments you the And in XQ, you in Jared, it you And gives terms – maybe for product follow-up confidence drove will can kids you on quarter? color a and you’re can especially what

Jared Briskin

Yes.

business. to did our quarter the second not deceleration, last year have regard with So e-comm

a deceleration standpoint. where so quarter Third is that's from comp did, the

stance. make that year we back-to-school. the last buy to the able able back-to-school for comp inventory, latter in this kids unfortunately in-season year, inventory inventories we that very the of advantageous not a And we’re for significant part Regarding to stand a took period, were for

Rafe Jadrosich

last it unusual. year? was So wasn't this anything It year – it to wasn’t anything specific was

Jared Briskin

last not unusual. saw footwear. to largest kids' impact buy advantageous year-ago the the but impact it in No, period. in year specific business a specifically that to was business Certainly With as the well, September footwear, to in we regard as to our due football was an whole,

Rafe Jadrosich

are How question think higher will planning store my quarter then on keep compared the and losing open? would about want just about you stores you last performance now after you're money forward Can going talk closures to currently we them your And ago. that? or below – your Okay. next either of metrics your be year a the to many into how closures than store should are

Jeffry Rosenthal

we look said to of year. at at the the continue closed a that We'll We beginning closures. more Yes. few

look and to at what continue look four-wall invested at stores cash on capital the flow continue we’ll these that. return we So in the and to is

For that pretty lay next we at future, fourth we'll into for to the foreseeable year we continue quarter, get look as out the but guidance closely.

Scott Bowman

stores some number stores cases, going are of after But and that fluctuates at or close Yes. flat the doors changes can being look those And around. we terms to we and see don't show some forward some keep I look bring efforts what those improvement. and to the those are can go healthy. in those many them make to will for a mean In to do close even stores how at base to that not of store we review profitable improvement continue see we but marginal, just bucket least that through process to

Jeffry Rosenthal

flexibility they leases, short is we very so signed our which We as have strengths. come one of up, that

Rafe Jadrosich

Thank Okay. Gotcha. That's helpful. you.

Operator

question next your Our from comes the questions. proceed with Rick of Nelson Stephens. Please line with

Richard Nelson

quantify follow-up those concepts among morning. of heavily strips and fashion, is store the the three sales your or good base I and and both And there buckets? skewed athletic or go-away? on stores Hi, among team if of new the the mall, the any are commonality you they and store wanted could one closings of to losses to

Jared Briskin

Yes.

of think finish. closed our maybe will let store, stores, or our in average I'll those stores I of terms quite a From standpoint, financial half so than and off start I'll as look Jeff bit less is, So good about a thumb at that volume. you do, a rule

have, of isn't are for from the don't the can a So volume a closing as because inventory very close those too isn't those Then we great stores not first write-offs in intensive usually I'm one kind stores, volume around one, place. a big those shift because impact capital for the just typically impact we the lower a we they're standpoint, stores because and start with. to

Richard Nelson

to I Jeff that? guess hit Commonality, on you’re going

Jeffry Rosenthal

a the a a maybe now town. the has other center those more sometimes there to some shifted malls things, of strip as markets the as closures, some of some strip are of some on e-comm that little maybe businesses of and law just some go-away work were and that aren't so there's are the smaller. some There centers of bit Yes, another just commonality, some are markets side used communities bit to and smaller work other little

would really the I in a is some maybe bit environment. are So of are too little just small common markets the those themes say today's

Richard Nelson

the among one toward heavily three? of And concepts, they are more oriented three

Jeffry Rosenthal

It in we all, Board. a little the but across varies, it's have bit

Richard Nelson

is that? other Okay. or acquisition some guidance, what And renewed your buybacks, they're Scott Gear thing? that you curious behind Is City

Scott Bowman

it taking the to really paydown priority we're on Rick related debt. be that's Yes, that to that with just to the debt acquisition going a

of the that's reducing buyback. so main And the reason

Richard Nelson

Good thanks. luck. Great, right. Gotcha,

Jeffry Rosenthal

Rick. Thanks

Operator

of SIG. comes question the next line Sam Please question. proceed Poser with from your Our with

Samuel Poser

guess? Jared, mobile what happening versus on the your I of app digital percent it's desktop business morning. Good right now

Jared Briskin

the mobile to now right I think is Sam, think it's app. on I XX% close

Samuel Poser

kind that you And weekly are – picking is stable? or of is of is pickup up it seeing sort that through thing the – it

Jared Briskin

improvements, it BOPIS/ROPIS recently the most to has time grown that as make and up as awareness has we know, over capability. continue Yes, you with definitely picked

Samuel Poser

your within comps of as Can give expectations idea – an some about there you're versus us your for far what QX store then QX And the thinking store improvement or guidance you QX? as implied Okay. traffic?

Jared Briskin

Yes.

single-digits but recent transactions, so we mid with So in we measured down consistent more are trends. anticipate

Samuel Poser

or that Jared, sell improved mix, of then selling you product selling them, a stores And you in launches to are mentioned the you're few planning that versus percent the the what right of Okay. now? online

Jared Briskin

not app. and Sam, going not the launch Yes, traffic to significant information that we're product certainly that, to drive the that website traffic but we certainly out, give our on stores certainly drives, believe to to the only through

can on a look launch like make but – make drivers weekly So the at some on launch look decision that other that basis. percentage product. we feel as don't consistent, are balance a we we best by that and the on that basis we we based of balance that There that at

Samuel Poser

Okay. And the to are to initiative those that What going there type were in the fourth stores of mentioned you traffic mentioned? you that use were initiatives some you quarter. that then driving

Jeffry Rosenthal

I mean, can I Yes. start.

our as help, think think and that it's ROPIS that mobile better we to on to in gives the app. job who have do to we customer continue the them I a we gains area I ability will customer be And specific what bit tools on awareness, and more types a more BOPIS email text, some and that do little more to types. continue segmenting emails send and us that our that now especially on

and have area that but area, our to still we're be. sure in that promotions awareness in as what's now continue that can communicate as in to tools learning better customers to with it make improve we So just new to will we that our good or stores

Samuel Poser

whole the where up? rate full-year, do to things going tax And think then you Thanks. lastly, end

Jeffry Rosenthal

year, XX%. total should For it XX% be between and the

Samuel Poser

So from to levels? QX be expecting QX down

Jeffry Rosenthal

Yes, QX. it should from a down be bit

Samuel Poser

Happy much you holidays. Thank luck. good very and

Jeffry Rosenthal

Thank you.

Operator

Consumer the of with from Schick line your proceed Please is question question. David Research. Edge with next Our

David Novak

Dave question. Good to is your Schick. Thanks of of the you We morning. about This ask buckets and invested wanted with this year. investment you've for going our in where stand that forward level taking for some Novak Dave on

the marketing of that of Reserve major about trying need Thanks. should you buckets BOPIS, year you're still drive merchandise to business? the you where maybe are or where investment, Online, encounter Just how to all investment to talked wages? going And next on you expenses, that some figure we think think those? You've about out

Jeffry Rosenthal

I I doing have chance specific, year. the good of around a work place, some year lot too and next optimizing a we'll functionality this of What think year last good put getting without Sure. even we see that in

some lot in we a still that the value tools So put of some of of functionality. place the on in

so place new And recently. we'll to those that continue things optimize put we in

the also year next and think small small So like stores, website, freshening to some theme then always be I be just things up that. our will big mobile done enhancements. for the on that a app, in enhancements There's

a And a do major should have of standpoint, because to marketing be bit down few well. the this level and come different a but so lot a that be as From functionality overall we out. lot focus little rolled already quite But investment able will marketing a of different we've a payback we've the helped to forms done on that also evaluate and the marketing done in year business, tests really of really areas has measure that.

and will dollars. see will I dollars more be that as inflation get dollars huge best the those year, be we'll high. question marketing fairly but there. wage huge next wages, learnings normally then so some But there be dollars best to is, on don't anticipate have do don't anticipate the increase return. a areas those take we but still that And changes your I'm will around year sure think we'll year, there those any next final to of some return we And still there shift shifting those on next

David Novak

Great. color. the all Thanks for

Jeffry Rosenthal

Sure.

Operator

Jim from [Operator with the Instructions] Duffy with line And our next your question. of comes proceed question Please Stifel.

Peter McGoldrick

my for is price move taking channel a a makeup here? Jim. This closed disciplined is the to sales On business Is to what solely questions. on have the impact Hi. majority Thanks related that inventory selling from growth for dominant channel? see e-commerce, more do McGoldrick sales done future? there of full you price the progressing out of you And function How full to hand? mix in on Peter it

Jeffry Rosenthal

Yes.

products, and innovations. [inventory] premium better we second came as web, third inventory, So lot new and of aged our on we not we Last much the our to products to on focus shape, year, as in is inventory of lot inventory we'll a into a cleaned impactful. as sell launch and continued had up continue then it's but and quarter,

We more price selling continue to online. see full

a really as much year-ago. change not big it's a having So we mix and just aged as had

Scott Bowman

continue well. as we and Yes, our to expand assortment

get being get mature assortment from wider, an bit search engine optimization of our as standpoint good improve the SEO done does that website to lot to continues a also work a little continues and So better.

that whether that And be products, so to also program. that we those grow staying great on opportunity loyalty of see to aggressive or folks things like and loyalty marketing more organic will base promotions members search adding on We're turnaround us about our so and in terms new that. and gives on continue just We're members XX,XXX to do that of news per average loyalty traffic. week pretty

So of lot some of a those there, are reasons growth year different we'll things why that that main business. the continued on see we're for next working but

Peter McGoldrick

the that business. curious trend Is sports team lost customer? cleat football here Okay. pressure a on I future? you a team as sports? pressure was you see are continuing the in within Do offsetting the Or elsewhere

Jeffry Rosenthal

some product business fall We're a the well seeing talk other football, seeing and are to some as movement football been we are when that but some tackle the we've flag sports. degree I in had around impacted, has we football certainly offsetting think fall of baseball. Again, as soccer initiatives to improvement

So of again, but aspect we some of but whole. a it the team some is moving also do see from is it moving, sports as away

Peter McGoldrick

base, the quarter? of there? store fleet the as closures? Okay. right Or then acquisition just And the store some the store incremental base that, are on XXX for fourth the on you adding And change thresholds Gear, top in you there does full closures are then size City

Jeffry Rosenthal

It's really separate two things.

return the we'll return have be the and evaluating to new on Gear those or end into new we invested a keep include need far stores. yes, will to question, City forward, capital count in a stores, stores come Hibbett the on fleet our the nice store. as those first quarter will The would at meet as whether same it store store going that they as still XXX year stores and for discipline fourth looking And threshold

Peter McGoldrick

Thank you.

Jeffry Rosenthal

Q&A Sure. End of

Operator

to you. I'll Rosenthal, further at time. Mr. there turn this questions no are the call back

Jeffry Rosenthal

today. you you very in being call our quarter fourth March. look on forward call on to We Thank our Thank you for much. having

Operator

Ladies the disconnect today. your for We and for you please you ask conference participation conclude that that and lines. thank gentlemen, does call your

Hibbett (HIBB) 27 Nov 182019 Q3 Earnings call transcript