DICK'S Sporting Goods (DKS) 26 Aug 202020 Q2 Earnings call transcript

Company Profile

Participants

Nate Gilch	Senior Director, IR
Ed Stack	Chairman and CEO
Lauren Hobart	President
Lee Belitsky	CFO
Robby Ohmes	Bank of America Merrill Lynch
Kate McShane	Goldman Sachs
Chris Horvers	JPMorgan
Michael Lasser	UBS
Paul Lejuez	Citi Research
Simeon Gutman	Morgan Stanley
Michael Baker	D.A. Davidson
Adrienne Yih	Barclays
Seth Sigman	Credit Suisse
Brian Nagel	Oppenheimer
Tom Nikic	Wells Fargo
John Kernan	Cowen
Warren Cheng	Evercore ISI
Peter Benedict	Baird
Scot Ciccarelli	RBC Capital Markets
Chris Svezia	Wedbush

Call transcript

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Operator

Good morning, and welcome to the DICK'S Sporting Goods Second Quarter Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Nate Gilch, Senior Director of Investor Relations. Please go ahead.

Nate Gilch

thank XXXX joining results. and our to everyone, quarter second morning, you us for discuss Good President; our On our Executive our Chairman call and Lee today's will Chief Officer; be Lauren Financial Officer. Chief Ed Stack, and Belitsky, Hobart, archived today's located Relations for XX be investors.dicks.com our months. Investor A playback will in of approximately call website at

obligation Any As subject our and Annual and statements. to risks could discussions these cause Form finally, XX-K of statements non-GAAP a to couple actual Report Please the from during forward-looking today's with cautionary we statements to such last admin referenced or uncertainties this reconciliation statements And to a be materially SEC, earnings on filings release forward-looking financial making website considered with update assume will reminder, Relations and to be measures various our a statements, Investor risk are in items. differ information. any results made in our factor which any should cautionary our no of including our refer that find in these statements conjunction call. in of We call.

on reporting sales our note practices. a First, same-store

recall retailers. growth to beginning method be our QX. of move calculation other sales result result of Our the COVID-XX. providing same Furthermore, of call, during a from penetration includes were same-store as including that and the eCommerce our we a Accordingly, calculation metrics industry, not our retail away sales consolidated comp sales closed store temporary may QX of as closures temporarily in method as The eCommerce announced intent the across COVID-XX. stores calculating varies treatment of

and metrics to store provided these are these for circumstances closures, metrics surrounding last our Given QX. continuing the provide we quarter,

the earnings XXXX, XXXX call for And market subsequent scheduling Eastern A.M. XX, our opens on quarter your We Time. third November call this we And I'll planning tentatively over publish for with the purposes, third with release future to to turn before earnings are decision that, lastly, Ed. at quarter. our XX now will revisit the

Ed Stack

Good morning, Nate. Thanks, everyone.

had $X.XX our quarter delivered As we of increase We sales consolidated stores comp year. during morning, increased XX% record XX.X%, closed Consolidated sales quarterly followed our average last This X.X% with sales our announced achieved same-store and approximately earlier the exceptionally which this billion. in earnings. strong highest we even an ever period. of on second

XXX% an Our was non-GAAP a per increase diluted and $X.XX quarter second last all-time share also earnings year, of represented record. over

their get our teammates, a we and want whose to these our dedication significant Before performance, we the serve, for our strong returned Concurrent possible. teammates business teammates work reduced into the that salaries moment lost during previously take details, I'm and the wages. made with results to repaid quarter, to hard thank to from to I company and athletes report our restored furlough, we pleased

our Now results. to QX back

sales Our of comp the increase omni-channel was continued XX.X% driven our success experience. industry-leading by

our saw as growth of continuing of apparel serve. well safety the each sales hub our end increasing Our reopened June, nearly serve hardlines, as as both are three omni-channel stores the the points distribution fulfilled and we public, and By transactions of categories prioritize More increases were localized And and XX% which were the the our the team-mates. footwear. primary stores of of online ticket athletes tremendous, of our to to eCommerce sales by health average We across while and of XXX% than our experience. in, XXX%. we

flexibility demand, a This to react of to shifts, favorable quickly quarter. broad-based continue consumer performance testament of brands Lastly, will significant basis the be and outperforming growth, and a our by strength approximately, XXX in private to the our average meet is dedication source company team-mates throughout the points.

Participation people distant toward accelerated. more has the product, fitness greater with outdoor And and lifestyle apparel. sits has has at athletic health increased. activities shift our of assortment The trends. active of of importance at in center spending squarely there a these And the working socially time pandemic, this majority been home. exercising During and

few our past the months, Over partnerships the strategic has vendors, by demonstrated unparalleled. been

the we QX, strong marketplace therefore, in private relationships. gross expansion categories. vendor margin, And merchandise points. to drove increased XXX chain, XXX margin During our in less quarter. these by supply aggressively rates in-demand Certain our in the margin categories which points, constrained, and brand chase product, basis promotional, improvement, leveraged basis significant the supply most during This were increased

that The categories. quarter favorable me performance. demand our, strong partially the QX, let offset touch by comps, have continued in back-to-school consumer shifts our into in Now drove key on third softness QX, during

part significant the expansion. of the XX%, us, first QX, with have comp weeks rate behind of consolidated our three through margin back-to-school With sales increased already continued

great are As a at in I look right business lane our we now.

athletes We committed have our health and reopened and the stores our safety. and protect procedures team-mates to to remain

and eCommerce Pickup shipping. enhanced Curbside faster our have with We offering

Our forward recent We're in we the year. like with our to have product assortment now to consumer the to with call having over results. we're our in a zero. In great $X the QX cash. extremely And approximately financial Lauren. billion supported really brands. importantly, by summary, strong relationships, a tailored strong I'd paid is the trends, in position, remainder to are position. line our pleased turn look And of well And credit to key of

Lauren Hobart

start Thank you, want thanking to Ed, team-mates. also I good our and by everyone. morning,

will This results. continue our And experience. of strong company. morning, updates on our our private I'll also sales And foundation marketing to comp deliver the And a are us your brands. provide execute I and our for a record-setting and omni-channel efforts seamless online helped review efforts You brick-and-mortar increase QX.

strong athlete to build both and response June store momentum and brick-and-mortar First, comps, re-openings. store the a double-digit July. experienced very saw positive delivered we We our quarter throughout during

the In safety measures. recognition premium tirelessly DC year. an of through total, extended paid COVID safely. invested worked community have unrelenting the our the constantly and In a efforts, changing and the compensation commitment $XX incremental have will hourly athletes end team-mates to our quarter, store across landscape be serve adapt announced and second million related Our to during to teammates of we recently we XX% demonstrated

we of end quarter forward, costs Going the approximately similar through this of per expect $XX million year.

quarter, athlete higher expanded during of over margin to sales mobile Turning drove margin. penetration. speed the significant increased pickup, which online and XXX%, and sales BOPIS in Curbside eCommerce, This with our second a eCommerce focused along gross the curbside strong. XX% eCommerce improving on we very convenience with where penetration and merchandise response meaningfully, remained included improvement

at This success to result delivery levels. work the online athletes the continue of better enhance we our relentlessly and also made well years, channels, demand as a build improve technology direct best-in-class even is omni-channel a integration store to the our reduce times digital We and platform. remained experience, athlete fulfillment over of profitability as as we our investments as and eCommerce unprecedented have

Moving to marketing, one is largest our where program. assets of ScoreCard loyalty our

accounting our have we We through in marketing program continued strong of over communications maintained XX enabling million QX, drives marketing from personalized we than athletes. sales. more voice efforts, which for during users our data more also a The Throughout several compelling to initiatives. this program, active our QX, digital with enhance the XX% and direct

filling athletes with There campaign hope to You outside. motivation and them get everywhere, inspired See Out Our

curbside launched recently, we paired product want styles. person we on back-to-school need camera, offerings. marketing to golf were have our you focused fitting still acknowledges We them to which the that best pickup athletes or experience to there whether Our these at they reopenings our specific the to how with and successful be. and knew also Most tactical in changing matter get of ever more store product to whenever as ensure the and marketing campaign, on QX, brand campaigns our you're larger going landscape end wherever was back-to-school, we and no addresses it's around

brands private stores our differentiation across and strength key sources and Lastly, assortment. within our are a online, our

I all the second DSG, quarter. across to We've future only total, which to Lee review with our excited omni-channel as launch, become during our following more they company As year after average our particularly brands very DSG in leverage field apparel best-in-class largest pleased in women's athletes. our private results CALIA been And to largest approximately has represented remain In third the basis to and by categories we stream I'll and DICK'S XXX of our continue QX. the serve we to Goods closing, in over surpassed mentioned, platform Sporting about points of athletic one call and now financial brand. the turn outperformed detail.

Lee Belitsky

morning, you, everyone. and good Lauren, Thank

X.X% Let's begin a to driven ticket XX.X% approximately and Consolidated of XX.X% quarter XX.X%, increase billion. sales review results. transactions. with a same-store by average sales a our increased $X.XX increased in Consolidated in second increase brief

is diluted reductions million increased change sales has temporary as increase. which by as the fully year. last across $XX million our of net total due basis to share same equity end the basis of or our with period In compared XXX% eCommerce XXX increased on million includes versus profit by $X.XX million business better-than-anticipated was quarter, compensation value opened overall of These in year of COVID related On Ed This interest million included sales SG&A income offset GAAP This expansion XX.XX% million the our profit basis diluted costs. primarily as in sales, driven the our store a the million safety rate $X.X margin XX.XX% of merchandise as The by to $XXX non-cash last operating aXXX related in diluted This partially only impact second well our well profit occupancy from and was increase XX% offset expenses and period we XXX XXX and online compared two last merchandise related total, per that apparel eCommerce $X.XX deferred in as X.X the eCommerce in result compensation Gross which -- percent or margin, growth, required of of and points the shares merchandise. each both rate centers strong quarter, of EBT a points convertible XX.XX% were in three per million points. net basis, expansion points of no million expense XXX%, year. life. nearing to And also closures. quarter increased hardlines, higher plans of by issued associated with point mentioned, margin notes margin GAAP in shipping to as growth expenses share significant year. non-GAAP same offset last year. fulfillment significant basis earnings our partially $XXX.X $XX sales last we share diluted gross or sales delivered the XX% we to last SG&A was as meaningfully fixed and associated eCommerce costs resulting incremental and as expenses fully of the delivered of comp and net fixed categories: promotions well from This Driven down million improvement the X the was year, were of last of increase. additional safety calculation, a up and during $X.XX. expansion third were leverage was to net footwear $XX incremental by share to basis costs QX. primary $XX $XXX.X fulfillment or our from and compared $XXX. earnings other sales, Gross following a fewer of Our sales, improvement margin earnings. sales, included markets our sales quarter costs costs expense per driven earnings dollars same non-GAAP merchandise and as period on in COVID year-over-year year. XXX

our we For can that refer the this issued of to reconciliation details morning. additional tables you non-GAAP on, release press

related percent X.X%. to Consolidated I'll XXXX sales review sales Despite increased approximately sales May, only temporary sales, Non-GAAP share And our store $X.XX XX% total moving share first safety diluted and COVID $X.XX of half March, year. the our briefly decreased earnings first our to balance year. increased this, incremental XX% XXX% last Within online last business and per versus XX per compares included compensation share $XX million non-GAAP earnings diluted or decreased a Now same-store closures our as net consolidated and to billion. weeks April were for $X.XX, and per and eCommerce only sheet. during of costs $X.XX results. to X.X% this diluted of

of cash equivalents Ed on As credit on QX operations cash hand repay And in billion we're $X.XXX outstanding as with strong cash we on position. billion of outstanding stated, and revolving We quarter, no $X.X during $X.X and to a borrowings cash leveraged financial flow well the billion our line. as from facility. ended our our borrowings

of looking inventory decreased demand compared same our will and in-stock quarter clean, Our the ahead, continue in improve last levels we end positions in our inventory the optimize our end to period XX% to is assortment categories. year, and the most to

As our our employment business. were to quarterly high degree scale in and during light This business million uncertainty of $XX confidence, and the COVID-XX million. several consumer of full potential well includes dividends. stimulus previously strong the year Net outlook, key pandemic $XX.X just the and paid results, duration capital reinstated there's external their quarter, With surrounding still a and as announced, not on did economic as we of in impact factors. our And dividend shares. expenditures program. we And respect repurchase our we

provide at this quarters. resilient sales guidance Given we continue outlook practicality we reassess this will uncertainty, will the guidance not for in time to XXXX a of future

about the comments. future for Thank mindful we're Goods. the environment, concludes open sales very of We you in QX significant well the prepared enthusiastic of Sporting remain DICK'S the trends. While now you extremely And interest uncertainty Sporting our up for line DICK'S Goods. with QX your may operator, current our as results, This in as questions. pleased our

Operator

come [Operator America of Robby Instructions] will Merrill ahead. Please Lynch. go Our question Bank first of from Ohmes

Robby Ohmes

-- doing guys. Ed, a a quarter, I pretty great Hi. think these are It's Good that The is like great. categories really don't I'll question, for unbelievable. so morning this. you a my but have I word for quarter say

about, forward? going in you're year, hunt others are are And are short? to leisure need positioning, your running category? insights the these unbelievable the about some to could comps guys changed sales, the know lot that, run ones how that exited, only lastly, that levels, think a a into you anything has rate are be about, rate. we the that Is balance in when continue? lot think solitary think Golf comments stores. some given you I sell-through of the And about expected you on inventory And of Ed, then we categories, not your seeing concerned of this do Golf tie category, in, Galaxy how on I doing? maybe, thinking you've about for How we how maybe thinking are in-stock

Ed Stack

Sure. Robby thanks.

with start hunt category, the me first. Let

changed with view reduce We're and exit. So the toward category. our this planning still not has field hunt to that significantly What doing we're stream.

nothing And so changed. really, has

from business, good. been Although that on I understand, changing has really that. not quite We're what position our

As the going October. constrained, and back bit the end forward, somewhat category, take in Golf going in a categories. September bike But it it into positioned flow little we're inventory standpoint of the these right fitness toward some levels, Robby, category, comes in goes and to think we're category of be, in, going stock at we a to a inventory an in bit that a from product got better of look on the beginning out. actually be And we as we've

chain. So, the team job, -- of our we've talked standpoint, a products number own has great our from working private A that brands. a done we fitness these about supply bikes

being a the able So And of chain. has job being the job control to done customers. the a done of being the supply of athlete job great great of we team service

of trends to our in, depleted. is in as fast from it's business we continue. expect going in the store, our as in product those of look it's walk fitness have to standpoint coming coming going flow and the sales you're categories If a we out to is going But still like really kind

far categories young the other business, The of As football a game, Golf that some Galaxy. or outdoor There's one great come the sports. who is business Golf your has have those not because of been distancing. at soccer Golf and at social DICK'S as people into playing number or they're both

continue year, in the out the their tour, right in we are Guys games. all Golf is the and -- balance the going playoffs Men, women planned. on followed not have golf into out they're November. with the The that jumped U.S. and of because and really then September PGA being this to what's on with have they're Open Masters through So expect kids playing game, the kids now extended too. by season at

and and going So, of concerns go be the but in months XX we to a cold concern. think really to get December, in outside are that -- it If Golf gets gets be There the to the one in is many that's to those very and it be is well, that we saying, Well, south, stores able going when good. what's have north, up going categories some really going people so you're inside. November cold about a people are happen weather that's year. to west

excited So, pretty we our about be business. continue to

Robby Ohmes

That's great. Golf you And the Galaxy do comps? just give

Ed Stack

We don't, Robby.

Robby Ohmes

Thanks right. much, so and-- All

Ed Stack

But they good. are

Robby Ohmes

That’s much. great. Thanks so

Ed Stack

Robby. Thanks,

Operator

Kate Sachs. Our comes ahead. from go next of Goldman McShane Please question

Kate McShane

Good you. morning. Thank Hi.

Ed Stack

you. Thank

Kate McShane

The question if was more then first affect go store. had Sports. seeing within I maybe question through just that I maybe second can bit wondered categories from much how was fulfilling you're about maybe the little my and what a could Team around And Team QX. certain you Sport

to it will you you in eCommerce was of XX% by curbside higher previous fulfilled because What store. of option? I And expect pickup mentioned forward? think elevated going that the was be quarters? it And

Ed Stack

eCom. and let take about Team So Kate, Lauren I'll I'll Sports, then the one talk on

difficult. Sports Team continued the have exception pretty from The has be good, right baseball. of business sports but good standpoint, with Team other baseball now been business to Sports a the very So is not

we've business going is the be I be And but Team think far more Sports of to will QX. this time people go difficult business majority XX% are at difficult through business through become that than the back-to-school business Sports business forward. with the back-to-school should got continue to and But to and offsetting us. this understand the as this quarter. we back-to-school that Team them frame, the we expect We behind of all important so And comps less

with -- will at next Team next but looking just comps Sports year. to So, business. hope Sports we're difficult. way going we banking Team be that it we're year better this for is is be the And And the

Lauren Hobart

take I'll And question, Great. Kate. your second

half, is build-out do in of increase past, large the a in I increase to half of that's going well used Curbside it we was indicated you're terms from stores. strongly to just a remained stores, back that stores. out of into it's being stay. ship player And holiday out majority, be the so So, the the over as was yes, terms the Curbside it is And is the into that a even that and an door really this of but believe that point and meaningful will in business future. from to the important as meaningful strong we we front door back throughout open here store. eCommerce of a as is believe fulfilled what XX% the percentage of the that business we've and business be to It's think year right, the the lot

Kate McShane

you. Thank

Operator

from go comes next Our comes of Please Chris question from JPMorgan. ahead. Horvers

Chris Horvers

Thanks. everybody. Good morning,

delayed all, And until and number sport in opening sports you you back-to-school well. talk So school as Texas State, programs later high is, has behind question peaked of as York have and team a delayed September New about and and -- sports then is XX. districts are first school getting us of

Can going on ex what's of about how potential you team base in non I away going maybe like comp these do the business? on what's think guess, acceleration you in back-to-school So and sports? the peel the --

Ed Stack

plus said, of and being that so behind and as into part level us, won't that business soft detail. we sports been big even has But quite we get have XX%. And far. of Well, comps the back-to-school the team I are with soft, still a it

them, some districts when actually to are we but not be school to going they're that As it are got sure inventory service down to going play. the it, have a to gets sports, to that they're to look going able some at going of we've happen we that’s and not take they that delay indicated play states right to or

forward being go in cautious So these as sports. from team we're we standpoint fall sports a

Chris Horvers

the how is question accelerating, over maybe try then other stores report I and because the in obviously double-digit cut way comps, of trends about the brick-and-mortar including June Understood. July. guess you to to talked and you closed quarter strong

were last you So our XX when quarter-to-date rough looks comped that in it months. math, time, you you those accurate? you like down Is said that X% reported

Lee Belitsky

close, pretty That's yes.

Chris Horvers

follow-up the on SG&A, is, Understood. Lee, puts of obviously, And takes a my and in lot there.

rent, furlough some have well. did affecting but maybe -- rent You -- some SG&A other reduced line maybe hours not savings. some Presumably that as

sort what's Last on the and So, of now third of SG&A at you what's the $XXX back the from? $XXX look building that? our base a Or basis? million in were half right to estimates fourth right year, and we go-forward building SG&A in off base Are that we're million quarters.

Lee Belitsky

one you year unless anniversary got margin. of comp. build we of $XX and there. margin, we had base, probably right we'll except QX million will extraordinary to of about comp I piece think talked But we million the the $XX then year kind here, But hit incentive around think is take $XX split good won't a results million big last gross line a SG&A base a on really level the a of, the I and off in COVID is gross at of look be expenses quarter, last we that in incremental to have incentive on the

Chris Horvers

And -- was furlough offset line? way, savings how just SG&A an the different the what a much in that was maybe cut

Lee Belitsky

SG&A furlough really CapEx small hatches battened savings. involved. the cut cut QX that in travel. We force are had We there, down reductions consulting We other cut a cut and pieces way. Yes. We of There were lot in and in some along expenses costs. the

quarter. significant savings, the pretty half of particularly did So the some second we in have first

Chris Horvers

very Thanks much. Understood.

Operator

UBS. Michael go ahead. Please Our of Lasser next question from comes

Michael Lasser

taking as slowdown XX% entirety XX% from question. other a, Good July the to Was August, flow due well? back-to-school morning. to Or my for June, sports? categories team comps Thanks comp, in in and in of weakness lot the quarter-to-date did a

Ed Stack

was pretty -- pretty team the the of categories. part violent August. more in the Much much back-to-school total the footwear September be those percent categories August, October. It peak -- sports, it's is sales first which -- is a then of are as, of much in all than it by And back-to-school month higher and our will in a

so sports, back-to-school And cleat margin comps rate with But business, backpacks, the expansion. categories, team of all running those with even the XX%, still those have been that, soft. are

Michael Lasser

And better adequately, used It's year, banking from to that borrow only back-to-school sports getting you for get normal, whenever next the not the getting also but think next to term, very we or team Ed. to comp year back back fair or normal. some business to about

the way right think So, about is to that it?

Ed Stack

think I Michael. Yes, so,

the us of classroom that to sometime the plant back-to-school running. business, lane hope even the next for will in country back-to-school, hope we year think think et let's quite year, kids I business lane. what's the in an But COVID we we continue, offset important great think the which actually is business, next camping will other we're and too, think we are great face some as strong. right to lot We in is be But behind now, from categories we a are kids. next with not cetera. these of a some sports, better. a year, And into that might going for hopefully, there therapeutics, outdoor going and are going Because vaccine on when, kayaking, fitness, activities be really a in it, standpoint, the golf be

we-- So,

Michael Lasser

new it's here behaviors stay there whether at habits out would or [Technical be would difficulty] fishing under year. next what new thinking then, kayaking change? all change working habits, back, Thank you. and And And conditions to -- golfing. necessarily These your or consumers you over. or home turn are have it I'll these adopted and won't gives

Ed Stack

are things these sticky. think I So pretty

people do changing that? to continue the about to to for place I right differently make going now, activities activities. are What some would If people think continue There that are think future. into see but sometime these going we those here think have don't family I a the them, and great change, trends us significantly. taken are

Michael Lasser

much. Thank very Okay. you

Ed Stack

Michael. Thanks,

Operator

Our next Please go Paul from question comes of ahead. Lejuez Research. Citi

Paul Lejuez

Thanks guys. Hey.

some talk categories a the about follow-up maybe Just next to about opportunity that. maybe and comm the of offsets that comments some specific difficulty] of you [technical on also you Can year stronger last couple

Ed Stack

We lost you. Paul, please call. the next there? when front line. are to can you then the the And we Operator, in resumes, go in, Paul jump of still

Operator

Okay.

Simeon next of go Gutman Morgan question Please from come will ahead. Our Stanley.

Simeon Gutman

Good to on everyone. Thanks morning. wanted I ask first gross margin.

If peaked about look change XX% back XX.X%. at to XXXX, and it around once ended you and at at

back be But, know stay continues closer What probably a margin store. pickup healthy? in the XX got channel would eCommerce XX the of narrow most peak. right, was about inch should the it's was good assuming it or extra prior basis the merch mix we points to it So gap? to this point because basis time, channel over about can't below reason I that Does XXX the if quarter. explain peak. mix of this And headwind math think it I

Lee Belitsky

There been a It has expense. back and is have lower, that margin towards channel sheds because shift the level. the gross we delivery

in be. shipping are to leveraging of fixed and to the eCom fulfillment the along have promotional it lot to down a difference. But, we're have the And expense going that’s eCom how comes We structural expenses of in some we way.

levels going be promotional last we're coming for months the or I don't so business able four margin had out of levels maintain So, over maintain should terribly to to gross we But the of indefinitely. of forward, be we expect going eCom. in gross or elevated three margin. to able haven't eCommerce our same to some be time,

Ed Stack

happening can our what's closer I also with private it that move on Simeon, based brands. think to too,

whether extremely Our well, are the doing CALIA, fitness the it private brand, what number DSG we're doing a be brands in brands. other categories, of

our as continue will improve, margin our to improve. private brands to So, continue rates

Simeon Gutman

of lot how will using have you model, pickup on Yes. to and forward? obviously, that the customers stickiness but should going before, introduced -- pretty And rates of that powerful an any forward. it sense which which continue But, this these you wasn't this be do a Curbside sure going high sense stay I'm option been will do

Lauren Hobart

and Lauren. consumer very Hey, do the that shift stay. drop not It's case. mix. that but behavior, to reopened, a very Curbside it's strongly store when is fundamental that remains large is originally We in would see Simeon, penetrated the the of and we Curbside off we anticipated think here high is a been percentage

that's a we here is element to behavior think just to an stay. Curbside added So, store. a It's

the that So, ecosystem. of becomes omni the the hub whole store

Lee Belitsky

to And be interest we're getting balance in continue be expecting into the around to season. for there We're the not in strong Christmas that much the that thinking crowded with year. stores COVID might of Curbside

So, we'll stores we're demand. the Curbside We're to Setting big season. inventory ready parking deploying satisfy year. our up of event all to be fall the on operate lots and big out that a rest the forward planning to way, that Curbside for

Simeon Gutman

it stuff door and And in other fitness, in, the is and the environment, still? terms will Is even this type of as seasons in like out day? categories though to weather just the environment bicycles is Ed, same of sneak that Okay. of still this just literally this change comes fluidity in to demand it transition the that

Ed Stack

there. out the Well, Simeon, it's but few as I'm It in as days. quickly we product day, it's pretty not a sells soon that have sure

Simeon Gutman

right. All

Okay.

Ed Stack

supply over have But got back coming bit on product pretty right to But several in fitness increasing a we've got some in. months, got The next business product go the nice more of going in comfortable over boat We've constrained, in. coming the for flow flow a we've bikes come be to of level an months. is next several out. more for coming going the It's just do and we we're this. although

Simeon Gutman

Yes. Thanks. Good luck.

Ed Stack

Operator: question Research. will Our Thanks. from ahead. go Paul Citi Please next Lejuez come of

Paul Lejuez

Thanks.

team saw perhaps maybe plan I you the some but in the you XXXX, performing could sports quarter. for stronger cutting And categories about was if specifically just of the and got categories phone you've Sorry just out asking you maybe the there. F in and then do the comp others. how talk opportunity comparisons second some about, back-to-school difficult that

an maybe to what curious you're are how in Thanks. are at seeing of thinking And higher And unit all? from categories? if of pricing moving these trending in average costs perspective? higher, inventory some also, you about that those categories you're some extend hot it just So then chasing,

Ed Stack

really any seen of higher out We products. in cost coming haven’t meaningful way these

it some the brands. And business, whether our business. camping these of the A the lot are categories fitness own are about be boat of talking we these business,

So the we with done and we've pretty that. good chain, a control supply job

school and of they're kids off really back are we are XXXX next lot feels a the a Other what behind in what we year, We with, the a As business of. the planning talked back-to-school we of we're also. looking we we've of people at look business pandemic looking upside big as sports brands plan next industry, to sports if is that's and in to a year, year. are the who what and are team think is that's next doing planning of everyone think in of safe, at them off playing and year And do us into our XXXX, other there's number kind we're -- do. and to lot this that

Paul Lejuez

Thank it. you. Good Got luck.

Operator

go come Davidson. Baker next Our will from of Michael question D.A. Please ahead.

Michael Baker

going an Is would that accelerate. when excuse comes dog that, is question barking comps I wouldn't wrong, working me correct over like, such weeks team per home, Thanks. give -- sounds implication my exactly se, the coming to to from but that know and months and the guidance Hi. if sports And becoming back-to-school up. smaller the my you accelerate? it would comps tell with guys offset -- I'm that aren't me there

Ed Stack

can dogs all and relate we working home. at barking to Michael,

Michael Baker

until barking my No you on all called kids. today at me and

Ed Stack

Yes, I understand. No worries. Yes.

couldn't you be the of to the that. that too, this back-to-school it really we're with which offset And we -- were with. And happier disappointment can that's these at going plus would the couple going an year, portfolio of where pretty of and of up we're we're percent a hunt offsets comps we're right that. broader-based we happy to for, So we've be quarter. that is, there's year back-to-school about appropriate that way of at. comfortable -- assumption. exiting balance the a the excited that a is business I And but kind a But last shaping not last is But fortunate the lot items smaller we to become back-to-school for XX% be people, now, think, got and will

Michael Baker

a Yes, the unless One could and quarter quarter you makes said Lee, third in XX% real really Well, have get sense. that strong quick, this comping you're if comp Lee, better. third Understood. cycling you Two year. things could. questions you're for incentive I

comp about with So put the And potential to $XX our the you at of convertible structure we to guess, and the starts third I is hedge, hate ask think I dilutive. this quarter, incentive this that type question. place year? the, become think of in I offsetting But boring then, to $XX should how in call

that above You're now.

on, color give count should Thanks. think can you how So share the about us going any we forward?

Lee Belitsky

question, some incurring first. we're take I mean, here additional comp that could think that year. payout -- on incentive the have have could impact expenses the we expense COVID for that I'll this significant So the we of I expenses with do that

we had year. in level comps, strong to that of really last order some pay, the to incentive we compensation So, get have

the $XX for $XX, at dilutive, so. excuse of quarter, economically about on Order the regard bond notes, -- $XX economically convertible So becomes $XX probably we've quarter me, at notes -- creates that greater got than place. the the the around put With shares magnitude in you're right, convert did to And structure to-date. XXX,XXX we of to $XX XX%, the -- convertible hedge or dilution. average

a quarter million GAAP at share quarter, the So, of had X.X a about On for it's a price it's average a shares, $XX dilution on on million. non-GAAP if $XX X% basis, for the about we basis. X.X

Michael Baker

Okay. the price dilution That's goes the stock good then color. higher? up And as presumably, goes

Lee Belitsky

Correct.

Michael Baker

you. Thank Understood.

Operator

Our Yih go next Please Adrienne Barclays. comes ahead. of from question

Adrienne Yih

My well digital question first on -- progress deserved. morning. welcome, quarter-to-date. in on the Good is My on the is Congratulations first the you're question the digital business.

opportunities see can As probably of forward, pandemic And brick-and-mortar channel Are the acquired, of you've the your advantage, data statistics going and those there? on boxes. DSG there you such began. or that physical CALIA grows, share big penetration? a obviously, since competitive Can customers is importantly, end and more For any about new all talk metrics you given you is, what the can your Lauren, then, taking for Thank to happened for And shift native to normalize the quarter? question third clean. categories? digitally be out question. should channel quarter keep you inventory distribution brands maybe the What last much my my very of in inventory shipping Lee, had athleisure from be? stores in you And or been footwear other last for store

Lauren Hobart

few. try to its first I'll the Lauren, tackle Okay. Adrienne,

of So a as is new number and digital there we customers do customers channels have DICK'S some the customers. in number those -- coming And meaningful a but repeating. digital joining meaningful the are meaningfully grows, new through

are customers, amazingly So don't we're going generally quarter. with But well. that point. this new we're pleased very and customers to than think go DSG deeper speaking. new speaking, those on focused I doing this retaining at I'm generally very CALIA

in growth. are this well DSG enthusiastic us some very very, longer-term as two thing. two penetration number short-term. to in a XXX digitally brands, be very, goal you, we on advantage I but but be to and is no athletic future, those not private plans other three in the at would we those do immediate brands as that. for future. us, We're with and I a the have home something points could first very say channel possibly mentioned, don't But the three that to share believe number As board. omni-channel is want then, a new And we for that it's the distribution, certainly, and are brands and pickup strength for point, getting that about focused interesting brand It's and fact in opportunities distribution really across of horizon, women's one the on an the brand very have I CALIA foremost, and number we they native and

Adrienne Yih

you. Thank Great.

Lee Belitsky

fulfillment volume. With lifted when to of fulfillment nearly Okay. a in obviously, QX, you XXX% in have regard increase, terms comp the channels channels our of all

market our huge. significant had So, centers year-over-year, fulfillment Curbside increases was

up well. picked store from as ship Our

picked programs up. Direct Vendor Our

in from store So, total -- about was and we and fulfilled by Curbside. XX% talked stores between mix, ship the

So, infrastructure eCommerce volume. all kind channels end on. place the months of handle different fulfillment sales is The all turned have good we holiday on lifted had with to we in in for the level news channels

the in paid So, technology the during for said fulfillment, as earlier, made a quarter. really and we of Lauren in lot investments both time, off us over

Adrienne Yih

Best very Great. Thank much. of you luck.

Lee Belitsky

you. Thank

Lauren Hobart

you. Thank

Operator

ahead. Our Credit from go question next Seth Sigman Suisse. comes Please of

Seth Sigman

of any time? like perhaps adoption look on has all about quarter. the the give that guys. you encouraging improving realize the I more scalability around about this has you're eCommerce follow-up leverage at efficiencies but how does on of that accelerated Hey, last elaborate eCommerce? I the by online Congrats profitability consumer in point Good it of you could as you profitability to the many that think wanted time? years, Obviously, seeing environment, probably morning. confidence operating in Can you online and on that years. Does more is what economics. the it been over over recent think change the it in

Lauren Hobart

the confidence the all been have, leverage Yes, quarter, definitely able fixed we the in drive you that order that this does bottom-line. investments more all it mentioned to give on to us flow expenses, through

merch reduced increased margin of penetration. had a on also then and shipping because BOPIS costs Curbside package increased the basis We and per

eCommerce very So, we continue overall, in that our to a very, think something we meaningful P&L can improvement leverage. and

point. we've be to the the to of are investments over platform All this at coming that to made fruition scale time able

Seth Sigman

without margin the just Okay. clarify, That's improvement? profitability to have merchandise And would even helpful. the improved

Lauren Hobart

meaningfully. Yes,

Seth Sigman

just for been just is QX. margin, are It more in around quarter later for promotional how much like then balance versus update you doesn't the year? vendors bracing Okay. on us And wondering How what perhaps I'm just in of more the really you now? now? the change planning for Can activity the promotional a tied had structural happened. activity activity in promotional you seeing constrained merchandise inventory of distribution that how you're are controlling And seem then,

Lee Belitsky

we we today, promotional. our to across majority -- don't that inventory business And think are very don't number the what's see constraints be with those becoming see driving going of really There categories. it's don't of more constraints, We a promotional.

doesn't vendors needs to and are cautious to flooded sure the that going with get market up that next think cleaned products very into year. I being make be

from margin there'll be shape, everybody's conservative a end a I there'll glut. a year. I think in inventory meaningful -- good standpoint. think rate don't an approach inventory taking think of pretty the at be I by the erosion. the And will be don't very I So, think,

Seth Sigman

great. Okay, Thanks a lot.

Operator

Our Please go come next Oppenheimer. ahead. question from will Nagel of Brian

Brian Nagel

morning. Good Congratulations. quarter. Great Hi.

Ed Stack

Brian. Thanks,

Brian Nagel

where markets. may up different And than there extraordinarily be regular focus. Is teams And seeing had performance to the we the But in fluid when quarter. seeing chain? you more in rest you -- more, there third near-term that the activity? so team that of really I have the the opened sports may getting at a markets category are far I performance -- in be understand it's no and look apologize, I just for here But just there normal

Ed Stack

Meaningfully.

Brian Nagel

there not from Okay. key launches question who partners your is new look, help Then of product look fashion the half year, focused, sales. DICK'S into guess, are second drive I vendor I the back to but terribly the as have, we

back you're fluidity, as talking in that a thinking as the half How you given do the your sales to the driver? introductions disruptions think in year? the environment, how about the So, partners, about of they are product

Ed Stack

category is weeks, There'll is depends which great. on CALIA the in some be on and be going we -- it depends few It think to launching brands. -- the driver the new a a

people other inventory. some launches clean delayed have Some up to

going new which glut actually categories, a doing particular very good. it's product until with launches not not we going those XXXX in they're I'm newness, some launches them. them And doing be But brands. talking of let some going I'll to people about those there's to until -- product so I get where think not to are about talk into what there's or inventory -- any that not be are

I perfectly some there's that's whether for sports stuff. newness going of think that into Or some but of the business that newness backpack, think that some much area or fine. not have slowed going down, some year, of reasons people in as had next team that's now, we kind be to

have being the think we looking very and going at we are forward. appropriate So this thoughtful in how they're brands --

Brian Nagel

Got you. Thank it.

Operator

ahead. question comes Fargo. Tom Nikic go Wells from next Our Please of

Tom Nikic

or a some taking for surcharges on Hey. question has Thanks for quarter. QX? in, want and how have out Good any Yes, levying and of -- thoughts of, been congrats cost ask the I key increases from there holiday there strategies carriers potential think and my everyone. around the season some that sort especially, in we gross November Do in or news December. margin shipping mitigation stripping to you about should great morning, the impact about

Ed Stack

The there, freight truckload, delivery. both markets are up and tightening out intermodal package

starting are across to we see board rate in side. announced So some on the increases. UPS increases rates there is the package

of should know the mitigate at We I our do of in by, fall. that a us it FedEx from is But this of occur at of to the surcharges side. the UPS, which that later year. with some offset and tremendous would the of amount pickup, -- both is And part expense year, forward and half it don't potential back partially business be very extent else, with there would business in that, of likely both the small the UPS. we're done level eCommerce point. are point. is for of FedEx going a eCommerce But everybody headwind that's for on Curbside doing, some higher the of Most level all with with with expect that this We the we

So excited to athletes our offer that well. being able as about to we're

Tom Nikic

when -- new in when the customers? pretty headwind, about strong the QX to like I something Got think trends versus another despite we And customer we existing of the certainly, it solid it. think topic, quarter-to-date about, share then moving and wallet and back-to-school performance about when think acquisition among in terms

Lauren Hobart

This Lauren. is

our AURs actually it's also acquisition, and base. higher new know of sales We we got little both. think a more customer existing within customer bit drove but we I

was both. So it

Tom Nikic

rest the much All luck of best right, the Thanks very for great. of and year.

Ed Stack

Thank you.

Operator

Poser Our ahead. next go Please question comes Susquehanna. from of Sam

Unidentified Analyst

to that, keep What taking look wanted are is you guys Hi -- are guys 'sticky'? new on Sam. and morning. just a these quite obviously follow-up market This customers. new everyone. adding doing Good you're taking this Will them I you for to on, make share, customers

Lauren Hobart

customers really, them. then trying really are We and into to the on family get to retain focused

a So I say on personalize incentive the that, time would to we athlete, we're basket database the the in what a customize. an XX main is store. versus people targeted try into in for over we we've a and new change past get to are offer. opportunity -- a might to just have come every of got a million It's athletes, what not promotional doing And it's it's done

very we of we brand to a there personalized and -- it's out ton data -- have drive also also and driven. brand So marketing

Unidentified Analyst

And how private compare helpful. the -- XXXbps. specifically brands, then, private the private branded? guys by your and private private said that, average label performance How company label you That's outperformed, business, does you compare online versus the the for DSG CALIA, --

Ed Stack

what's It we're pleased in, of -- kids brand we on And it working that into and we're online hardlines no really that. expected, categories as with be, they're strong across year. But to what launched some we going So, really. through direction. private but is progress, DSG you is started and some last be we're in only lot year will detail real we really making other brands. -- the women's our than men's, it's going give then hasn't not of But yet. different a online moving that not that CALIA DSG penetrated it. is this now, with But not largest right are yet some have is will so

Unidentified Analyst

the much just expect as and you. one much How do Got that how into of of as savings Lee, And more next you far then sticky? year. me, over XH is continue, so savings, into that for to SG&A

Lee Belitsky

now. short-term, we We're hiring not not a But, right like and consulting obviously have had, travel continue things next some the the travelling aggressively around to the two. or from over quarter out we that to as and savings -- much In going are due perspective, expenses staffing we're to as pandemic. as

some mitigate had next we work our from into through and the as expect that year savings would way I year. the QX So, of we to

Unidentified Analyst

Fair enough. Thank you.

Operator

question next Cowen. come John Our Kernan from go ahead. will of Please

John Kernan

quarter. Yes, thanks. Good on congrats phenomenal morning, Ed, Lauren, a Lee,

Ed Stack

Thank John. you,

John Kernan

sales, seeing Lauren, talk talk per of a of accomplish this driving et to means data obviously, members type you I cetera. XX about sales in the the to you're you're XX% driven, million think wanted non-member? of personalization, and from number, it what marketing, able I ScoreCard. the what Can member growth you members, you. future on dropped business, versus Thank

Lauren Hobart

to We our reward behind have customer just launched keep year, better best Gold them a standard to program. and recently, that's driving benefit the the than big the or standard ScoreCard ScoreCard a a push our past in We've benefit. customer program

membership. we're So driving

We best be working online now, right online, apply our for that's so that it's And the proposition, have our through on barrier. customers and know value just customers. putting enhanced decision then, to much that used right just which we that we to a make that customers specifically so how value our any when make them, and to lens everything for easier sure best

John Kernan

grow Got private vendors a strengthening their hardlines you the It it's head year, and it's lot recently. have stores. we can strengthened your mentioning Nike things footwear been getting this a categories, product, the it your into it. in relationships CALIA question. just of they're you holiday. walk with of calls, like strengthening you conference key one the the wondering, follow-up across footwear key the or deck, about helps see certainly, like key have more. level vendors into side relationship a the go vendors lot talk despite It’s build. point lot you're And as of when different whether top we softlines, on next you Maybe we whether feels talk the just about with on I'm really your success, that label And of own with can feels as we at drivers it

Ed Stack

relationships always think had vendors. we've I with our great Yes,

we've new. we got years on with. for business with something We've people this do that worked the and great a partnerships isn't of this number So

one a a entire a a they're we business strengthening going is of to an brand's portion other that they can we do the think brand, allows kind us forward reasons entire brand. have whereas showcase I showcase retailers of footprint brand, with, that that that can showcase they of some

it, we're see the own space you way want to companies, entire continued vendors some of service relationships that apparel what a and we our consumer. of hardline look that across you great If brand you that they're going in doing a Callaway's footwear at side others say for were strengthen. business, just the some way do to going And dedicate a the take if store. and a we present where golf can look to is the it. we you their the business. brand, do said gloves, guys can't. going to just to they to how accessory at clubs, standpoint, something, can't balls, that the athletic consumer as showcase and showcase can can somebody When think say if piece looking couple at the they bags, a merchandise And And way we have you take their us, we the what have do it And as the our us we're us they're walking know in of they to the get. gateway presentation great think it of people I the I the to that would do who A they and do, give showcase to you

that between there's the and one trust really continuing. more both and been in And thing And I been relationships than planning is helping the think vendors see ever I on the there So, vendors our trust communication, has more we strategic sides. key strengthen think the to with and communication that's us the past. more

John Kernan

hear. to you. Thank great That’s

Ed Stack

Thanks.

Operator

Our Warren go next Evercore ISI. ahead. Cheng comes Please from question of

Warren Cheng

it are and question the of Hi. through way able the quarter. is on had And centers outlet is been base the some of changing much getting clearance? I Good have the stores you're the the of utilize half merchandise? the that -- like new a warehouse on for to store overtime they morning. end that How realizations

Ed Stack

can we these is and store our this we've have we -- able for take at concept traditional of And clearance the stores this they there, of -- very realize them but now. much out it can got stores. to don't get -- new We very room of if stage the product, definitely higher-margin the in in the -- margins. is many its that's rate it's lot we're So, right to is which infancy stores, and make out helping a kept merchandise, a another really clean is tried it And thing our out. a

with on, So stores. it's really we're these what's been going -- it's with on early pleased here

Warren Cheng

Okay. how And more can many forward you or much year, footprint then overall that be just going how -- do strategy? that see larger fitting beyond into going clearance this How forward? your

Ed Stack

going just We're it. right with There's know. how the very in really much phase. we're ready We'll -- go to -- phase. or don't really we the what But through can pleased with it guide we're this still going test now, very Right forward. be see -- really It's much working this on, goes. not now. how test the we're to Early we're in

Warren Cheng

you. Thank it. Got

Operator

Baird. comes Our Peter ahead. go of Benedict next from Please question

Peter Benedict

Hi, guys. Two the taking for questions. Thanks question.

fulfillment, be have the are are on curious, people current when And I'm the And BOPIS? an BOPIS attachment environment Thanks. what order, what this reduction, occupancy to First, Curbside been in -- with may enhanced you just figure of discussions in those the seeing update front up use attachment an coming store landlords. may then secondly, that folks does change discussions? into of are rates -- your the influence those historically? any progress those doing how does some be pick cost rates all -- cost that And your on your Curbside that into

Lee Belitsky

the we've opportunity the elected the period time gains remaining to made some closed. second an From abate life stores to rents spread we our the accounting good quarter closed. of of on progress gains in So, lease. regard perspective, to of a the costs, we during and And occupancy pretty were number where had those the of leases, defer with the a negotiations were that stores cases the over cost occupancy in

-- back So to those during paying we Most have now, quarter. pretty of this and rent in by pick earnings wrapped up much up didn't -- we're the discussions those point. everywhere at

right good community. pretty say, with landlord are I'd relationships So, now, our

Lauren Hobart

curb question, buy the we in disclosed orders, if and/or of in we store. drive And store, if out curbside BOPIS done attachment in rates, terms this see expressions, reasonable when be some that attachment offered well. attachments items are or system you place but you'll also UPT the pickup people we the website curbside -- online in you'll with On see you relevant on of something to go need on can sometimes haven't past, we've the the transaction, as buy our every trying are it actually and

focused definitely that. we're So on

Peter Benedict

right. curbside. It's Yes. you. been used Thank I’ve fantastic experience. All

well on Thank So, done that. much. very you

Lauren Hobart

Thank you.

Ed Stack

Thanks.

Operator

Our next RBC Ciccarelli from Please Scot will Capital of come question Markets. go ahead.

Scot Ciccarelli

in. Good Thanks morning, guys. me Scot squeezing for Ciccarelli.

where countercyclical meaningful performance COVID-XX really guys fitness color various I sales provide team offsets start see on the we've guess, outdoor more you it any differences in effect you You seen and the curious, outbreak? actually have where And more I'm had sports, where accelerate geographies. personal mentioned additional than that? Can that actually a you enough to do products of some

Ed Stack

not the not, team meaningfully business get What kind to is, we they're we've into we're sports, did which geographic of say where the their going playing surprising. piece not is We're outperform this. team of seen sports

the in fitness COVID-XX for to comes And this is to see try to need get we mean over marathon our they're to going when buy runners, they're business be are to in that don't that to or think lightweights, and even going while. they're to changing people be weights, to know it. walk, going next, going a are they're is have but pandemic to I be threadmill, whatever rearview kettle are mirror if good lift whole of going doesn't And is very out order all some going to even bells, that just a going fitness that, trend people people lot healthier. the healthy. quite fight And we're people just

Scot Ciccarelli

the guess, here. curious, smaller teams in of I'm sector. to of businesses seeing for lot closures. I just pressures any a competitive see retail we're a starting economic on And like. biggest private particular seems or wonder, follow-up that. are you your the Thanks and to started Okay. It within landscape see if one-off I companies, like then, field any the if that just your

Ed Stack

mean, some before they going were to Well, we've -- I models is seen COVID, closures. even close.

is models So closing.

number a of it of we see be and happens. of some we'll think, I think as close a beneficiary this stores, close -- competitors their we'll

Scot Ciccarelli

guys. Got it. right. Thanks, All

Ed Stack

Sure.

Operator

go Svezia question Chris of come ahead. next will Our Wedbush. from Please

Chris Svezia

kind of from it model do way looking it? business fair the just Congratulations. to how as in going stick I that you lot just of at margin and going I've financial a carry way looking benefits about XX% for squeezing of just fulfilled made structurally in number we're Good business one. you're the fluctuations is that, curious, guess, playing actually XXXX over I'm the comment that that me of we XXXX? Is at percentage I'm think you to two, sort curious, some that curbside? And be out curious to that's what revenue off that in. will Ed, XXXX, Thanks about of got around, on should be given like look first, a morning, everyone. two. overall, some should chance they're XXXX. and the how see at actually, when for guess, that as the eCommerce feel you Or of you, is a number well, much any look call things guess, abnormality benefits, don't. at I earlier into a stores, for things did above we perspective, I a is -- we

Lauren Hobart

Hi, Chris.

one? around right be your the say of So rough very haven't of that that you curbside interpretation cap, can used it's do meaningful. now Ed, it But first how it's of some XX% of and broken store, to take through question, terms you there the we of out percent XX%. is coming curbside, much in do majority And second we specifically to the terms in did so want

Ed Stack

be because your quarter, got going not We're from we you've next in suspect was our -- did There positive. the just second positive comps as into works year year first second quarter in the I a because go will versus off you. XXXX, quarter it job. QX. in for it far demand to as the look model, however, be just And you some our next I'm XXXX think that we great XXXX, at if our pent-up look team comps sure at will

XXXX will standpoint. a is that we department-by-department play off put go job to make we best And of a from sales the of predictable way this the think country And this decision -- by in is more been of of not XXXX happen think all what country. how of hopefully, It's standpoint, to only be a our to the region category-by-category, inventory to a going year, is So odd out. really it going let's to is year do this way. region

talking so using for we've to you this. And about really We've where already started XXXX as XXXX And would go. the started as already, planning of base we're expect.

Chris Svezia

offset a like But pickup, of eCommerce, structurally the Thank the you. just those helpful. that's follow-up -- margin curbside one quick just margin to impact just sustainability things I a just and move from to we forward, perspective, on And as degree against as we do to do how that? how as think -- And better the well? for we to start the maybe think about that a

Ed Stack

to is the think eCommerce accelerate. continue going I to business

think curbside going is to accelerate. I piece the

because couple safety piece anyone great. I it People I what it want There to they becoming people I I was called, some the piece. brought people curbside was So have said the In with my hey, off a miss a was me, made to way. I in started contact I minutes, the is wanted think as sent now there, of piece. It's and curbside about or else. think up, I the come this didn't is a got number on convenience they phone of product text, a call.

this So, really is convenience piece. to a getting be

convenience piece more in be today. is will that it concern think is a I and it safety health XXXX as a

everybody one not time think curbside was constrained thing going their I'm maybe I and continue. think will I time everybody felt going to it's -- that's people And continue. accelerate. some think time. right gives I not we one the thing that The So think to -- And but now, back,

Chris Svezia

all you much, the very All right. and Thank best.

Ed Stack

you. Thank

Operator

over to our to This back for Stack question-and-answer session. closing concludes I like would the conference any turn Ed remarks.

Ed Stack

for everybody joining us thank and and our to to QX and on like QX. talking stay very we when release everyone earnings Thank safe. you to call, for everybody I'd we forward stay much, well look

Operator

disconnect. and conference may has The concluded. you presentation attending you now for now Thank today's

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