CAL - Earnings call transcript Q1 2018

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Operator

Good afternoon. My name is Erica and I will be your conference operator today. At this time, I would like to welcome everyone to the First Quarter 2018 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. you. Thank Instructions] [Operator Ms. you your Tharp, may Reilly conference. begin Peggy

Peggy Reilly Tharp

quarter factors which information disclosed Peggy today's other Vice to and A President including, Form Exchange but you. our like Good Investor filings obligation press Tharp, not I'm to to at afternoon. first the Please differ any and this joining and factors for Caleres, which refer forward-looking Thank are release of with any and more other limited Please Reilly press impact Relations time. thank reports these risk tables in to, risk you statements. to release earnings detailed and the XX-K update XXXX no Securities are Commission. online. of various financial call to in caleres.com. Webcast. I'd factors a or slides materially with SEC uncertainties. discussion and today's The number undertakes both U.S. are aware, call and risks available factors Actual could information subject discussed may the results contains for due at of Company's Company available be filings forward-looking Copies for statements, on

Hannah, Officer; over to Sullivan, Diane Diane President, Joining today to call the And like the turn Famous call are I Sullivan. and President Footwear. and Chief Chairman; of CEO, Ausick, Ken Financial Rick would now

Diane Sullivan

in most But about retail customer. our sales of spring At as and quarter. we Good afternoon in like quarter $X.XX, talk consolidated on everyone and weather joining unseasonably first X.X% so cold space, essentially that expected, a to thank you delivered the flat. the early battled today per up the adjusted for Famous, arrived as we did were earnings share us

of Here are broken. give seen warm since the to the stats an positive weather magnitude you has a we of shift the have idea few

in total, X%. the more for down weeks two comps with trend X.X% of were XX%. improved and the flat, month Then April in were March comps to up last the February, up For slightly than

through nearly calendar, the sales XX% good know, up calendar, of promotional across quarter the the to comp to quarter which consistent and it Additionally, another X% positive in great country. or of our as north Famous is sales calendar. are their retail this into This in at year country important consumer is, second east continued our momentum earnings news was we you how date why yesterday. on with a just example is on a the central portions not very shopped The of north felt maintain the

We remain are pleased with how expectations track. XXXX our quickly and on much the environment improved very for

outpacing X.X% rates at were saw For Brand at up the quarter strong and are the the fourth in selling market. Portfolio, the through shipments end first quarter sales the of we the

gains market fact, In first the in quarter. posted significant we share

We programs orders our quarter the demand. second this and expect we meet speed-to-market these existing to leveraging trends to terrific on capabilities in and result sourcing in plan replenishment

demand. Portfolio shift have driving digital Famous to continued both we and see the that's that Brand For to for really Footwear

e-commerce Famous, Portfolio, sales year-over-year. ship XX% sales XX% up e-commerce were with related At of Brand the XX% up For sales. Famous represented total related drop

more on quarter's in-house as important. shift to demand call, fulfillment efficiently than and Brand E-commerce why to order a speed-to-consumer to shift our digital on is mentioned initiative growing us for basis. enable more we We on and expected, process that's capitalize quantities Portfolio we strategic will our continue this our frequent faster smaller so to even is last

discussed new In earlier which effort, such you. addition to we other with sales, prioritize continue e-commerce year our system, content also to opportunities this we this advance related to management as

flexibility to create As more the empowered provides has the experiences. imagine, team it digital you could

shop team shop. versus the process, the in early gender-focused still sneaker are one already generic a we While has launched

have brand pages of brands. our midsized added for We landing some

We pages And ultimately better at content is engagement connectivity the now first quarter the drive our a all new converting pages create increased this year. and through have course, And in designed consumer delivered than are last improved to of more consumer. this year. rate of XXX% content XX% higher sales with

for the Finally, asked us diversification now I'd portfolio. had quarter. little and looking a next. based about expand our be excited get The beyond bit and with Louis a brands. what's St. terrific in like first that Allen team right just we talk very overall rebranding a our brand set about said, launch to third is of exposure lot to give consumer That is the quarter. we We to portfolio our continued current the partners of always Edmonds are in consumer-facing would business our

built and We to over that culture topic Ausick coming there team the lasting Footwear credibility has the are the update as the be take in pass character he just not the their legacies. Rick seriousness, and Merchandising you to President on in as joined for to In He Caleres. and been all we XX support and many President well. before thank in and us with has at brands of and the out there months. and partner order Caleres Famous outstanding His looking service Famous has his helped helped infrastructure long-term an opportunities to has it potential More these growing at to achieve of a and as outstanding here Officer work with, on like the been for XXXX of Ken have brands. leadership Vice Famous partner Footwear his Famous' follow I for to critical I'd performance his moment only cement one since will really transform brands to reputation, only but the one Senior are growth to terrific financials, XXXX. give But an to just years has Chief and capable

merchandising true we at that's miss will superior past refer Now, Vice Product skills decade I but expert Walt an his be Molly in really and great are joined that, hands President the have where all to going who Development on is from Merchandising to to know Executive and Company quarter the you to the or with time I and certainly know we time Rick consumer. quarter, Adams Global us of on was Molly Disney spent she Tuesday. heard

curiosity are experience, to evolving fresh We consumer as continually Molly's of store and are her guidance bring her to everyone. focus to New call the perspective you energy on I and initiatives. us especially productivity introducing we And we excited looking forward shopping to York on and with as fiscal as and over Molly be like to will the omni-channel as the next we year part changing patterns. a consumer track are focus I'd team, at have we the week XXXX. for face on our engagement, her continue remain will her remind Market, for Ken? consumer that maintaining to and turn Ken,

Ken Hannah

Diane, $X.XX. and you, Thank reported first good we per afternoon share the In of quarter, earnings diluted everyone.

versus previously of by and Consolidated first or At Louis, $X.XX of Famous the quarter of sales cold year. of to consumer-facing of for sales first announced $X.XX consider driven in quarter adjusted Same-store $XXX.X you we XX weather fewer be first to activities over doors were as quarter to sales to related X.X% at sales share integration we $XXX.X Allen year-over-year. operated charges was Footwear flat the million quarter of across last St. per Footwear, of were moderate Edmonds And up Famous XXXX. Excluding were transition know, U.S. earnings year's essentially the down first million brand's what down X.X% the last as two-thirds the X.X%, unseasonable also compared majority are climates. our the

the across our cold down of April, progressed. significantly May. slightly, climate climate our of has improved trend reversed as However, trends the as zone was improved only in quarter a all which zones weather been end By still

the of with we Famous quarter beginning the acceleration the year. at year-to-date the XXXX laid on We we this remain are out and Footwear at reach far so to track goals pleased

first building our sell-through And gains. market on of quarter mentioned, Portfolio, sales and great versus Diane year. rates were X.X% we $XXX.X For million as are the prior Brand up share

gross over XX quarter, XX.X% X.X%. Let's a came of on XXXX in first turn of up to the points quarter improved margin at first which in basis. $XXX.X basis the reported million profit, Gross

of first gross As included XXXX reminder, adjustment profit quarter inventory Edmonds amortization million Allen $X a cost.

Excluding that At in and year-over-year. our increased points margin XX XXXX XX basis margin expenses. shipping basis by amount, quarter, Footwear, down increases growth first related the e-commerce in driven in sales Famous first gross associated was quarter gross points in part

quarter, first related. the Famous were e-commerce XX% For sales Footwear of

was amortization. as basis Portfolio, XXX points up last year's Brand and up quarter for first XX gross reported For basis Allen Edmonds' inventory margin adjusted points

year-over-year. of XXXX expense SG&A first Our quarter was X.X% for up the

costs increasing in demand center in As an Brand fulfillment transition began Portfolio expense included million quarter expected, our $X.X digital our consumer [indiscernible] to we distribution to in-house effort SG&A as meet rapidly expectations. for the in and to

We see similar expect included and XXXX second a in amount quarter guidance. this the our in is to

amortization period in a operating $XX.X ago. million on same on first were X.X% the We and reported a and adjusted. year earnings million a depreciation was the adjusted. margin of quarter million of X.X% Our versus down X.X% delivered from quarter $XX.X reported and $XX.X the Operating basis first basis

earnings to other or plan a no expense million a income. the required XXXX standard. the As to first retirement from adoption a $X.X reminder, new per earnings quarter was quarter share income XXXX to of of first of standard impact net this accounting reclassification SG&A due There

than the million, Our was $X.X last first first of more expense the XX% net down quarter interest quarter year. for versus

credit our of acquisition As XXXX finance against a facility XXXX December reminder, of our borrowed Allen revolving for we to Edmonds. most

XX.X% on basis. were quarter rate for doors. year-over-year, the down a and of adjusted quarter, Capital GAAP tax basis first Our reflecting the for million number XX.X% new XX.X% a $X.X expenditures was the first in on reduction an

balance $XX versus Now million, the and ended $XX.X turning up of quarter cash nearly year. our sheet, last equivalents to with first we million

December revolving last recall, you'll we the used paid fourth to of Edmonds. against Allen borrowings year of quarter acquisition our remaining the down which credit the been facility, finance had in XXXX As

inventory $XXX.X end at quarter position was Our million. consolidated

X% Portfolio, Footwear, Brand up year-over-year. was For was X.X%. Famous overall inventory down At inventory

million. basis Footwear the up last X,XXX doors XX-week and XX less than doors, mentioned, $X a operated we fewer quarter year. of quarter ended versus We the first on as Famous with inventory However, first was previously

quarter five, XXX For end. at our opened doors Portfolio, us quarter leaving closed new with doors we Brand and in four the

an $X.XX due $X.XX remind diluted lower begin I'd XX% excluding including and Edmonds cost, to share to expected guidance, up of approximately XXXX share our Before for which per like adjusted earnings rate as XXXX, previously fiscal announced. to approximately and of effective over we transition tax $X.XX benefit calls to Allen total our questions we are to you XX% that maintaining answering, be per

available slides at of as details these a Our store can includes and guidance be caleres.com. closings, earnings usual and on found number openings the

week, million reminder, XXrd a Portfolio and sales XXXX Footwear sales earnings. an had Famous impact our XXXX by As by included that a $X.X increased which on immaterial million Brand $XX.X

related shift, the quarter In year week third this addition, to move XX from of quarter the week the XX to will due in of become year. calendar last second

up we be third mid while will As to second our digits. mid sales expect single single a digits down result, quarter be the quarter

also year to the prior I'd operator quarter will turn will basis. week over of for We shift call related like third a the the from to back-to-school second that, Q&A. back into year-over-year versus with margin to on see see and the the a gross you impact the one And quarter

Operator

Laurent [Operator from comes Instructions] Vasilescu Macquarie. Your with question first

Laurent Vasilescu

for the you, Thank Rick, time your over years.

up out that X%. called the comp it was was year-to-date think I

Just that May? imply mid curious, for single are does comps up digits

Ken Hannah

would what imply. will That it be

Laurent Vasilescu

to months? I us remind the you pretty And year's significant believe comp in had quarter were first quarter. some by Okay, last hear. between what the that's those Can good swings

Diane Sullivan

I all-in swings X.X we quarter in around…. the looking know are were year, we Last the and at down

Laurent Vasilescu

down month in the up. think then was I first like high of it quarter, the singles

quarter. last the you had for tough the really So compares month of

Diane Sullivan

actually were in a than February down little of more X% we XXXX. So,

X.X%. we actually were April, down March, were For X%. And we for about up

Laurent Vasilescu

tough Okay, compares.

comments athletic terms first great. for I sandals. didn't on Any the Okay, of hear Footwear in Famous trends or any quarter? that within about comments

Diane Sullivan

Go to anxious answer it's ahead. ahead, questions call. today. your Rick, the last really Go He's

Rick Ausick

in sandals gets quarter, not first a obviously business the It are that. when Obviously the that of that people also and cold, of the to. weather with the mesh the shoes biggest by selling impact athletic in most that's snowy, weather in sense category some was affects bad, based whatever, flock lack of related those but impacted our

are weeks, trending mentioned expected as had we six then So, look passed and to had be and five of that two into that last actually where we weeks last this season. in for, those range them to the April that I well, categories we that if think for the weeks as back came hoped the Diane approximate

of tale have. to at was been we our it's activities shoes just had promotional the really So, zone products. the thought comfort buy, when didn't because we the to was go when of they We customer ready on out good and the weather margins there sell opportunity broke, a

I sold. think have so, shoes it And those has and little

overall than that side. athletic, footbed would category category So, and the you in athleisure not it's business business lifestyle strong, anything sandal in strong, is the the is strong, very very our It's think. on special athletic, is very athletic, women's particularly sport

Laurent Vasilescu

profile, take I the you Okay, in be category, will us top very your M&A are Diane think priority. helpful. metrics for, mentioned that's Can of and question, prepared you still to remind looking whether And on? is margin leverage willing much then my you Company revenue last the that how some size, remarks a

Diane Sullivan

Right.

first feel have view that in in consumer and all, point think a mostly I are demand real we we brands the strong have of interested of marketplace.

be would that number one. So,

of it's an we range, some a scale, and lot infrastructure. $XX in terms million of signed in see Sam In million interesting even grew then the how the $XX the they business Edelman might size smaller first because that unlike that be have because opportunity to brands Laurent, not and one of we

number more that we'd on even out there because respect the model now So, there infrastructure, marketplace economic right got to a good we that our opportunities of like they've be is would positive. think in with

and want not would and to categories where currently are. really total segments it to be new to we that new So, and the we with accretive are it diversifying sure make we into want obviously would consumer we overlap

in Hail after. don't So, are want we we brands It's that throw sheet significant would Mary to be that any our adding balance stress any accretive really really – really is way, obviously, don't about really hats. and smart what

Laurent Vasilescu

best very thank of you Okay, much luck. and

Operator

Your next Steven comes question from CLK Marotta Associates. with

Steve Marotta

Ken, from dynamic? calendar a regarding quarter affecting the in and standpoint. aboard. be digits welcome down Molly, shift mentioned mid week would you being there else the remarks that that in your that being digit congratulations. anything besides in quarter single third Rick, up single the second the sales mid Is

Ken Hannah

No.

of ramping fact, will distribution second QX In the in for but I our mean happening like is, new other we out continue QX, the to the first into is that quarter shift be up thing only center. the

another expense of be distribution in will the couple there dollars so, quarter. And of million incremental

Steve Marotta

quarter? second the In

Ken Hannah

second the quarter, In yes.

Steve Marotta

I Actually it saying, that my of will because the that is costing bit next a DC EPS Okay. a be standpoint was question, little it to, add should we be similar you are quarters second and cadence in quarter? a for sensitive guess from those

Ken Hannah

difference half incremental was, roughly thought we were throughout XX% consistent only our tried The around out I to were so play this we businesses. think the and recall when years had the that expense. had out to year, in have XX%, guidance, relatively of communicate going we if that which to laid was some when going to Yes, the was up adding we the prior you unlike we midpoint XX%, that first

had through provided. And our had looked the when whatever actually And so, than not incremental of consideration the was for we range as the at how consensus we into of numbers that a the initially consensus matter midpoint of fact, kind higher was the reason, taking come expense.

Steve Marotta

mentioned door – The feel Okay. store related you at that. like share and are was lower share last had you feel department level you you universe question Do levels to you are that closures competitive just since any there Famous? we've the and the I taking standpoint than from at taking stuffing sort Have been the competitive inventory there irrationality set spoke marketplace? same last is being an in you the promotional, either the with or within Portfolio. changes overly Do at Brand somebody materially feel of any the

Diane Sullivan

quarter I we side. Portfolio the and Naturalizer gaining in saw was at Here share. our years say were quarter like share the them holding that around LifeStride, say it Steve. growth. even and year we is, Edmonds it own terms really Famous about in is quarter. our good and our the Allen Franco, But biggest and some of of Scholl's, and was of and on news in has was in In I first our would say, this the not only to look really more, NPD what for Brand the would number in And flat brands It's really quarter, the Sam, you we'd been really a of all was together fantastic momentum basically its business first that,

in data and and and performance single at look the rates movement our showing were of sell-through cases those to we nice relative sell-through of and points you total in overall If terms high landscape. digit many double retail any

quite through tables our are fortunately, this for call April remarkable. and really steep So, it's

I too, think deliver to the out great the great. a making and it doing which of is be brands biggest working on are some on continue our happens teams product job to consumers, just fantastic for sure we

Steve Marotta

That's Thank very helpful. you.

Operator

Rick comes question from & Needham next Your Company. Patel with

Rick Patel

a had up online on in just and pick store. I question buy

strategy that mid-June a an you initiative or last launched that's So in year. of

of to store learned events? to about continue how what you place? recruiting you Can So, the two, And update participate? strategy lap what's Just on are interest we it. year think year Do as you you that drive even offer to about have having from there. you curious more in customers incentives one for us or

Rick Ausick

a Obviously, the about talk to are did it XX% done kind right well very out, the benefit received depending had we they times, and We for when on something delivered, or helped us up to up, as the it. because it the and gift of big you option first to today, they're when going benefit. them shipping the they so counting not to early store. to to been giving the it I has in it at the around It's our just up time it to of it's think pretty didn't that will on little get get by delivery beginning have calendar. not it started the consumer. and couple an by having somebody. buying And It mitigate XX% as come some at Ausick. to things. substantially some the somebody's house, Rick moment in really Obviously been pick the it. to day coming consistent from expenses checked a holiday items of It's to a in picking store and degree they It's to ramps come windows do ship package other and great been That's in eliminates to get up, store from people coming We promote then.

So and also just of that things I where to their I product do something minds customer have for becomes I I us fast, think an And have need it. quick the and think go. easy that provide their interaction we it there's allows one get to them before, and a says, method piece didn't with to that want that in if of those

located are We around the country. all

[indiscernible] places practice they store whatever, a pass time soccer whether have grocery the or an us going neighborhoods that. do. that to We to need like convenient to People or go, things and thing it's suburbs easy and all it's

those beneficial. have think been I So, things all

do, that We have know we let pretty now aggressively. promote what will people it we As as far we it.

we've to. have a if and capability, what that have to Now we something use and – I in that's to it. gave we wanted on, we needed about where happen we if would hasn't people come see incented say to had we It to just been for think early just repeat. that tell people But didn't finally incentive promote, the we week I – when

right customer has more Web-site, about making easily they experience So, a sure it's store. great finds the when in that it the now our on come

and working so very more that. with to and I when go believe they in a to there place have are We them problem ready specific to they go. make that little product on efficient we've effective had ways when is for the come

that far, very, very been nicely. it's terrific. have pretty The So executed stores

Rick Patel

That's a question great have on hear. also to Edmonds. I Allen

last $XX So, million it mentioned I expenses. quarter running think you about that year was for a

thoughts the profile the that improving more As customer acquisition to attain on and and profile that? invest expense or can you from potential what's think brand updated any manufacturing, right about the accretion for in margin you

Ken Hannah

there, so through that as come are productivity, in the factory. mean to invest we in continue I we seeing the

all the that So, that number not there. activities, getting of where a the so year back lot consumer-facing in of change much. course over has I mean we're expense changed the reinvesting productivity, not we're the really

that Diane seeing mentioned, successful, quarter, first had As that expect that nice and great from their are anniversary was and brand they a we sale accretion continue. very will

Diane Sullivan

are think stream only of were about portfolio. be this excited, Rick, that a consumer the after really a opened We really It part it's Edmonds revenue new and new up continue and to Allen really we as beginning.

things We really have a really working back terrific a Robinson, Malcolm great some half some leader brands with continue interesting are terrific also idea. America to that hard year in the that that collaborations interesting the and associated team Made the and are to of with very very, with there, whole launching brand in make

are job. So, doing our are about there. progress a encouraged we great People very

Rick Patel

to realize having I about quarters. versus benefit obviously parse out a what a may, place very e-commerce, think if place would expected just the trying system I'm in the in this you in content Is And system one strong. be having it otherwise? benefit of way you future to there management continues that last on to just any from have

Diane Sullivan

which conversion early stat give rate. around It's tried why is to yet, the I that

our as as and we of I of get to less stories far, So really stop a really for in to telling quarter. begin than it, capable teams more them, it's of in work think And been more and that we about I more the of put are we'll front sort what think from consumers insights needs the and addressing really getting that. see

and just Famous Portfolio. in has it So, Naturalizer Brand it launching in our We're in now.

of little going do business be to quarter give such of in we'll that's part significant Famous. the think a is particularly better next or feeling able at I us to a support back-to-school to bit two, after what which you So, our

about that say I'd far. looks how what that's so So,

Rick Patel

Thank you much to all very best everyone. and the

Operator

next Svezia with Wedbush. comes question Your from Chris

Christopher Svezia

Ken, comping below if a you what give bit any So, for earnings wonder I if a what maybe relative guess plan little impact can first to were Famous, of I sort impact little to that that. QX? had if might the you would have what color in have a words, comp you like, In X%, about maybe can X% other add looked earnings color, if the

Ken Hannah

a if in great And I in closing question as profitability a quarter, it's to of went we from segment, by year, almost first down we some X% So, the and Famous taken the think financial flat, X.X% our out you if on will were you recall, X%. look see had that actually Famous. summary action results you

to some the a get a actions, do looking of way it that make year, leverage ahead top of point and essentially supporting took that around we of incremental on we last was at the changes, think and of what earnings lot questions some got we were allow we So, line. X.X comp able what kind flat sales you organization to I and are deliver to us need

little about actually actions, is certainly we result when and excited So, it's move those the more the a leverage delivering and grow up, that we as as forward get we are a business bit business. of

Christopher Svezia

what it Thanks. are walk quarter helpful? the against, maybe month, you through Could second Okay. of be would comps up are by sort us remind you you the as just what

Diane Sullivan

You mean by Chris? month,

Ken Hannah

month second By for the quarter.

Christopher Svezia

Yes.

Diane Sullivan

Sure.

last up a June XQ May up year's up total was and X.X, Okay, X.X, for was X.X. for XQ X.X, was of July

Christopher Svezia

And somewhat at was based for was Okay. be guess. half below I I threshold or earnings with first your sort a know would initial to thought on to of regard likely, just XX% moment, going that the

Famous it As still extra you're upper drive for you inherit any to but you from know of that to to have week? better quarter end going specifically line very and expenses, are growth leverage going think could also little some because you're that going a earnings, some color top get about leverage, about to I maybe profitable XX% to going think a be and you're second QX, potentially that said you bit [indiscernible] additional

Ken Hannah

we week those lift. Famous, extra fixed, – in certainly the mean little of expenses as lot are sales, number relatively a get a a a I you especially do and forward pull bit of those so of

trying all week of And did quarter second distribution year's is, of to expense, so, move we that you add that's third what absent have line first I that to quarter. that, everyone and incremental to last the remind quarter the we some of think last going were just illustrate top to incremental then from the can in

Christopher Svezia

Okay.

quarter, Let me be that, a first that specific. not in little have look expense [indiscernible] issue it's some like more of roughly so [indiscernible] When quarter $X.XX, you at the we expenses interpretation [indiscernible]?

Ken Hannah

That's correct, yes.

Christopher Svezia

[indiscernible] how Naturalizer, stood us give you X%? [indiscernible] any just Okay, out, then that? thank can out, curious just So some really stood about you. the final color, I'm what really additional what's And Diane, on any the color brands, of

Diane Sullivan

would Yes, happy sure. I be to.

of we got what we were seeing a work Brand you out that and shoes Sam we on to shipments LifeStride lot in there, have done this we we we and benefit that at the Portfolio Edmonds And did, quarter basically, If quarter the market, work showed fourth first the the Naturalizer up the gains speed the remember, all are our and and shipment that about make of Scholl's to real Chris, really X%. trend is and Allen you half. sure Naturalizer and important relevant, quarters the partners have our hard at know year double-digit are and all thing we clearly a enjoying not a with for brands that to now, increases. the With we correcting just of actually our portfolio. and them shipments most working is rates quarter. It's have But can in that the you of Franco, biggest we that see back number been quite a and with business retail what in the good right the are sell-through are our

to was now outstanding. there what seeing is Scholl's sell-through great in progress rates the was doing to very the in somewhere like Edmonds running nice double-digit continuing Franco quarter. well. well are Naturalizer Allen and positive really quarter. some is showing at in range. date. was is LifeStride Sam X% now We really up the Famous year increases store was in comp about -X, XX%. His on do first did running

everything shipments all consumer why not retail will rates products to very acceptance we and we back is think our and the always, good, continue is really about, expectations. our of to are I but the is the solid, what is we which back at sell-through do excited feel the So, we outlook of we the believe and to guidance beat meet can as to just

Christopher Svezia

great. best you the and and I'd thank call, all one Rick, been any you for any [indiscernible] And on want love that's the to us, the you interesting to it's commentary, give conference years to say hear little help over want to thing last Okay, you, this it. all [indiscernible]

Rick Ausick

couple [indiscernible]. for appreciate on just Probably the I to to thanks for pass would I my get Chris, love I'd it. want weeks. that, last I but of comments, paycheck the all that here don't disturb

Operator

Sam Poser comes with Susquehanna. question next Your from

Unidentified Analyst

at details role, any to footwear of more some maybe color near-term the what at her will on a color bench I be maybe actually you her bringing [indiscernible] for on then support longer-term, was and in background on is there hoping here Famous. some just on the I sort color it's first, the around little Molly both is more focused would on know onboard team her in Sam. and early but the This a agenda some helpful. I comments how guess could provide leverage Disney,

Diane Sullivan

sure. would Okay, be happy I to.

far shared the worked brand a has way and announced quite press XX she ago, a commentary retail experiences. of is all, that made energy, tremendous today. and we and of of [indiscernible], a I and was and she I world-class But so few experience. amazing kind in coming on for an product buyer was I development also years she of first think leader, all that products think And has the remarks not her world-class in-store got in also XX in back I only when she release amount or

how about ways consumer look and we terrific So, new the perspective we have really her really expect at think on to a experiences to customer.

our when of you multiple don't Number In times. want in somebody Ken's think experience one isn't talented we really levels just out that bring that's ELT, all logistics our X,XXX and have UPS look area, make Company, experience look at that So, [indiscernible]. experience. here talent number very really and two, different. in recruiting executive team sure footwear. this at we When it leadership that about Express has one. to want We we a had Scripts we was and I of

and EL it you and at And You team I think years Jay learn to a about experience that and the is listen has that members we she experience. best to is the a diversity take many helps what Molly for to future. together we really to that's how apply apply our Any of job they best create of they look Schmidt's her guess to thinking been have bench because well where it's people to have there business many, to with a got and foundation. that phenomenal, of future in the coming many, with Famous then at going team Footwear, and of no is be. respect to solid need is yet about strength And the an job, are then a the for it's us understand the done agenda great extraordinarily run, amazing

meeting about are bring we and you really here, enjoy we what excited will, So, think will I very to our everybody can I she organization. think think

Unidentified Analyst

helpful. very that's Great,

you in making order quantities get smaller Okay, for just wanted more and better are then I a progress processing frequently. sense to the

will just much benefits of little If how Brand Portfolio? you a more be detail initiatives, you brands thus impacted the and are seeing could those far most in what those provide around

Rick Ausick

we and to with all partner we direct there as as brands partners, [indiscernible] smaller consumer the our mean think I be go I replenish need able our a quantities. to of is to

across brand. does go really the it So, of all

transitioning brands and able to the the time to was we customer way are to And so, doing and are we'll had house automated Tejon our same be facility like Tennessee we be and that our Lebanon, the what it of the wholesale what have our overall meet automating individual is we capacity facility, California and facility, brought we demand. facility our part into raise the in at Ranch, consumer

fortunately entire providing many than retail across is folks we've those facility. us cuts actually our address, in [indiscernible] are really for that of meeting this wholesale nothing to and that space and more same this automation centers it So, automated type the into distribution

Unidentified Analyst

helpful. All me. Very right, luck, that's it guys. Good for

Operator

further no are There questions at this time.

Diane Sullivan

Thank my Caleres. here really you more acknowledge have I to for just to you want joining you guys. and Appreciate thank Talk great call and leadership very us you opportunities Bye to public that to everybody much. thanks shown but appreciation Love Rick. death. recognize the you, again, later. on have We'll at a say

Rick Ausick

Thanks everyone.

Operator

you conference conclude Thank today's call. that and does

disconnect. now may You

Caleres (CAL) 31 May 182018 Q1 Earnings call transcript