JILL - Earnings call transcript Q3 2017

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Operator

Good morning. My name is Kim and I will be your conference operator today. At this time, I would like to welcome everyone to the J. Jill Third Quarter 2017 Conference Call. On today’s call are Paula Bennett, President and CEO of J. Biese, Officer. Dave and Incorporated; Chief Financial Jill All any background been placed to prevent on mute noise. lines have After the speakers’ remarks, there will be a question-and-answer session. we made Litigation of may Safe Harbor Before that Reform and within are Act Instructions] begin, of of to to need [Operator the meaning remind made certain pursuant comments amended. forward-looking the during XXXX constitute call provisions as the this statements and I you Private Securities actual and are statements known to to uncertainties such that from subject cause risks forward-looking Such and statements. could both results materially differ unknown Those release risks the and uncertainties are described and in press J. Jill’s SECs filing. today These forward-looking statements. obligation statements date as made undertake update we to are and this do any not of call forward-looking the our of

schedule certain or non-GAAP on refer various financial in may financial measures to we is Finally, press adjusted the today. following release available issued GAAP A non-GAAP reconciliation our measures this call.

of I have obtain at page do jjill.com. not one If to turn visiting Paula. a of the by may you press Relations will call the Investor copy release, over you website now our today’s

Paula Bennett

forward. more in fourth Dave, will results walk who also I look into our turning to over the we and quarter and regain joining and provide our begin an and provide financial quarter and deliver us. with call third I of you, going will shortfalls thank steps performance to a outlook. provide before for our today’s you the also in call results into the overview and current you, insight business annual the trends are quarter we’ll detail taking third will Thank quarter our everyone, consistent through momentum

adjusted $X.XX. comparable total sales and earnings share per was quarter, the declined by For X.X%

are this but have the have very prior early is the the revised past. our impacted we provided and minimize in disappointed to take deceleration in we years. help experienced volatility driven way bottom We were consistency we stronger guidance than in not taken we any deliver factors action forward. that quarters the few October, the While the we when versus with There line seriously combined a finished results, have sharp going did we and we

have With more improved let into which said, and October the me quarter, later. share on I review In positive trends seen that will the addition, we in fourth quarter.

in As connected. product marketing October, noted we in all release issues and our early had were that

First, there September primarily new to floorset. were and product merchandising issues, our related

Second, deceleration driven both weekend. that we marketing third, our Day by e-commerce Labor sale a a in of calendar by merchandising issue. exacerbated saw business the was shift our And separate were around

a channels September, both significant issues, direct retail in these our reflected softness conversion. experienced and Given in shortfall in

a reminder, a when towards our markdown. that referring As has sale direct anything hard our we about is more heavily to business we’re This weighted business, channel. talk

and issues. Now give our more little you let me product detail merchandising on a

softness product our that to particular prints high-end saw relates resonate it for as our First, September, not and did category. customer novelty which also for the offering priced in woven were tops, the on range our of our we bold featured with

invest nearly saw meet stories merchandising, our demand and addition, winners items effectively. She in we with marketing the not trust guide enough to key but we In key our had we we features, not of did these them. able in us to relative to were her in terms for demand

difficult product, that channels product was a one around but setting September up an later we Next, assortment. our in weakness And challenges. worked impacted significant weekend. a had floorset marketing when robust the finally, of made a calendar making We were week, as sale clear our have a beginning our deceleration had in year, drove year, to decision by This the the the volume. floorset Day last to against our and the in business, assorted we assorted experienced extend August week shift for a our We which we Day Labor we of programs the well large also very closer sale shop not were quarter. in business additional the part and it e-commerce breadth, sale over customers depth the further Labor to our

out While our we shift these take a as such And and learnings, planned expectations. was unseasonably to did of in opportunities not coupling saw year’s external it other factors, from with warmed issues performed weather, this below order we advantage last way. hurricanes play that

response appropriate delivery. in channels. line wear-now, our favorable with focus the we October finish knit was seasonally driven a sweaters consistent with a had had on inventory. our with conversion than performance, tops, to all to supported We offering both October our needed track and The stronger level expected Moving improved in to a quarter, more by of much record

healthy took also September business channel, of in traffic stores. our in in improvement was improve in notable We delivery. The action the by our retail sell-through to increases our product most driven October

not but and prior Our retail strong was as to as rebounded, business direct trends. relative business our lagged period also

particular just paying challenges the address our discussed. We’re to attention business assortment I e-commerce to

with review in deceleration. address to marketing this the work our channel coupling of the the We’re programs and promotional

lower roll In work, e-commerce In the to rates lower off out average out our until group, the completion order on this value our further test the to and showed of site we’re and than addition new conversion also roll after new platform refining holding initial the holiday. expected.

holiday minimal how made our traffic. after a We allow to on of and to us legacy overall excited this we most the quarter had forward remain our e-commerce customer the look experience. site of about impact continue will roll to completion improve results, this While out using overall decision the our season very for the site the third

three in have We’re positive quarter-to-date our And November our customers. and results. had We’ve October, deliveries with resonated pleased September. assortments with our December

which more and categories knits been includes historically for offering us. season, sweaters Our for strong the have

time, that will At comfortable moved our with by move year-end through in confident with issues top. our pleased and we’ll inventory. intended of through product the overall also to with the quality and these this We’re we’re efforts including have challenges, enter XXXX we investment product level woven our promote September inventory,

issues safeguard to product we major including where product priced appropriately future? against investment. have and can refocused top. how we now have ensure the story in on novelty appropriate, proper First, assortments, edited our framework upcoming have we and purchases woven merchandising they’re our that So have relevant And our tailored intensely the clear of product depth and

us planning merchandise which we customers, system, across but continually to breadth with the inventory live us September, deliveries XX issues. ongoing move product our activity each and we with have quickly transactions, depth Our help went engagement allow of also product In ensure to any that will offering newness channels. drives prior pass both year drive financial correct a new helps and

will other assortment with from beginning we’ve benefit include system The capabilities cadence improvement. calendar We more course, expect needed. what from improved system management marketing will in detailed learned category where the planning And new of inventory functionality among our mid-XXXX. we, our shift, and the September better corrected

I customer We’re and very organization. The last focused With further our call to said data In tough to overall committed our improve. and business, marketing full to adjusting will We across team execute that some we than we’re both leveraging effectiveness. that, turn quarter ever strongly learnings Dave. our lessons and over capabilities to advantage are addressable of more improve experience a challenges is taking learning learned summary, related investment, our the our highlight I’ve opportunities while to our face channels. drive the seamless on are and providing always

David Biese

outlook discuss our you, our quarter review a good for the the morning. for XXXX. and of I’ll Paula, and third full-year Thank and then begin fourth quarter with of

our to first statement. income Turning

third margin the million noted. last the X.X%, by largely $XXX.X reflects We that and in retail for to in product increase declined trends XX.X%. challenging was profit slow positive finished were year. quarter. year, move actions company sales X.X% of versus $XXX.X quarter September year’s net reduction driven an last million driven XX% million, the The comparable quarter Gross Paula total through rate to October, Our the was our $XXX by Total last taken selling the compared gross stores. sales performance primarily with versus

versus million our the operating with In of quarter of $X.X transition XXXX, quarter. third were last had IPO. Included $XXX,XXX we Our the year’s primarily in a $XX.X million our public first expense after this million expenses SG&A associated year. the to was as $XX.X of cost, IPO non-recurring non-recurring company related in to costs

was both expenses from was $XX.X XX.X% Our operating non-recurring year’s XXXX figures, or of a million, percentage the year’s sales. GAAP the and of as SG&A X.X% income net total this for third quarter Excluding last versus sales of XX.X%

year. $XX million, the operating million, last the periods, quarter expenses sales non-recurring income to X.X% million, a sales of or compared from Excluding XX.X% year. for was was last $XX.X both versus million as $XX.X Adjusted EBITDA or $XX.X of

the income adjusted reflecting release. reconciliation sales, XX.X% adjusted year. decreased of our included is of last press million $X.X in percentage to EBITDA a As was $X.X expense last to quarter XX.X% net versus effective XX.X% for the XXXX. year’s A EBITDA was from Interest the of tax of expense tax million, compared term rate voluntary year was and in loan June. quarter in $XX approximately million Income our $X.X to the equal million, last XX.X% to prepayment third

rate share $X versus was was for assumption, share. than higher earnings per earnings per adjusted quarter, per Adjusted Adjusted $X.XX quarter why to the lower is Finally, expenses effective or year. diluted the than diluted per GAAP earnings share share, the and last for explain share earnings which for rate $X.XX net income $X.X reported or excluding million, $X.XX. million, the last non-recurring year’s GAAP compared period XX% diluted also the tax a reflects tax is helps per $X.XX

this highlights, to performance year-to-date morning’s our please For press refer release.

balance million Turning our and the in now our million with availability $XX.X revolving ended facility. to credit in under cash $XX.X sheet. quarter We

compared reiterate, and at by our confident third through the move challenges XXXX. overall quarter are inventory quarter any product million to are in that of the we we $XX.X at investment year-end. Our was end will the I inventory million, $XX the comfortable end of with

three, quarter, opened and we the stores closed the quarter with During stores. ending XXX four

Turning our outlook. to

is approximately total sales sales and to When fiscal Historically, weeks a comparable it $X.XX We start weeks of the sales quarter XX of positive XXXX. however, of sales we and quarter. X% to growth includes comparable which weeks and is the I’ll Our on a sales the and X% the to business. Total total are the November fourth line quarters, year. includes months benefit quote figures, total selling of in of returned our fourth with we XX the to a quarter. expect the Having for $X in are the and deliver for contribute is largest million in growth basis. as weeks XX be expected is our quarter per sales, percentage is XX X% The XXrd-week XX-week December outlook the sales X% quarter generally for you in to and remind comparable for other and XX full-year share. net earnings outlook November the year quarter, weeks knowing expected to business of

marketing We per to gross engage deliver in any grow expected include approximately the reflecting compared to diluted the the to approximately in will excludes fourth public $XXX,XXX to for $XXX,XXX XXth-week, Adjusted goals as which a decrease file. the our customer term moderately that earnings our earnings of XXX,XXX costs will range deleverage $X.XX to remaining our year-end. adjusted continue of for and sales percentage fourth public Both customer range given of $X.XX. $X.XX margin are to June through Interest our quarter are expected non-recurring share share company in on our decrease approximately before be product prepayment not did quarter investment a as to to $X.XX. earnings year challenges move be of company of quarter incurred the of we SG&A benefit to expect the $XXX,XXX XXXX. includes in diluted year-over-year, costs quarter, share, and ongoing XXXX, not of the Including per loan. sales incur GAAP per GAAP ago. diluted of also and we the ongoing costs the about SG&A the

our full-year outlook. to Turning

to XXrd-week comparable total expect to which sales the growth, X% be X%. excludes We

the expect margin year. range to share GAAP the Adjusted SG&A including to $X.XX for gross be and expect to year of leverage diluted to XXrd-week GAAP the of earnings approximately of public $X.XX the to and per $X.XX. share per compared to $X.X expected we decline for the XXXX, in be million not XXXX. Both non-recurring million capital are per $X.XX, and the full of company rate $X.X in excludes earnings diluted for million the expected ongoing are costs approximately include XXXX. We of costs. diluted earnings in fiscal With moderately our range to impact moderately to expenditures, $XX adjusted regard incurred share year

complete, seven will first nine our to opening the and the quarter for full-year eight we’ll when of completed stores provide outlook we With on stores, have call. and a We XXXX that, fourth year. close quarter

the Now, I’ll call you address may to will the questions back any have. operator, turn and we

Operator

[Operator line from the Instructions] of from Your first Paul question Deutsche comes Trussell Bank.

line open. is Your

Gabriella Carbone

question. taking this Hi, is for on Paul. Carbone our Thanks Gaby for

Just with was in dig in And about you’re taking you line these a month in bit get channel around I actions back versus trends other? of to in further wondering working little you. the direct, the especially Thank if seeing can you’re talk October? the the the could you each stores channels

David Biese

trends. first to the talk Well, I’ll

we really October, the really of in information Some saw delivered the moved that, we’ve both which Retail, we conversion in improved the to September of October. shared is month the channels when from saw strong traffic in that month continued the performance October. some our conversion but in guidance outside that we us for was have as was traffic well, positive driven that to by

refocus both fourth we largely that in and guidance. but we conversion, both any fourth merchandising As terms line, into as, there. analyze quarter, driven traffic. as about direct, to in again, in as being of we’re better in shortfall them the around contributing business improvements move of particularly retail We that contributing sale looked of the getting a in by equal of and too, you at channel seeing quarter, about we strategies them is channel really relative versus strength And the in channels both third are if in the quarter thought with far initiatives third that kind to both talked our employing number the there traffic will, is And quarter. the back

regular the to a that channel, ongoing. can we spending in investments that business, of So in in way have you are business – we are holiday And the cadence channel but that that lot sales we is tell effort in time have that, seen as more both of the marketing work both analyzing merchandising, I the also the well we and that we in it regard. terms would as promotional past, as understand really to growing the return even

Gabriella Carbone

Could margin third we what quick be quarter, Could we we Thank down fourth And you. – saw Thanks. the a just expect Great. then just for follow-up, the gross or guidance to to we the for of the see should line. quarter. a that there? in similar kind slight improvement

David Biese

similar I would be say to that, it we the third quarter. would expect to

is to from quarter, point, look range the points. XX but points quarter XX something be of historically moderate we So And the kind that, it expect third me could that basis would meant fourth decline. of that or give take in XXX around would basis again, a like

Gabriella Carbone

of All right, luck. great. Best Thanks.

Operator

Cowen and Your next question Oliver line Chen comes of from Company. from the

Your line is open.

Oliver Chen

Hi, good morning.

needs to what’s way? sub-point going just the to the and balancing flow, happen in forward And what articulate regards going Our was thinking from there? that about the assortment about you second to Thank happen breadth in product as question And what depth. the and margin about multi-year comments you. product is could what on thoughts experienced? modeling with operating would thinking view you a for your period, helpful margin, to to Our if well? long-term flow question a operating there be about had do framework that is are over on the relation And

Paula Bennett

and breadth question. depth the with start I’ll Well,

as We are had – identified. we you found that, we, know,

we was had we We with an story & in expected. had tops the story customer didn’t way used a month in in it our Black focus. secondary because to it, had in We that to a in made decision late Camel woven the investment process. the have disappointed that respond made rather top. that invest as around the not novelty we invested also not strongly. resonate enough We the responded did And She woven her. marketing our She novelty

have and that have impact did in a to are where focusing we we on, us we planned positive the So had plan the enable in thing September, in will that we more will breadth, the way assortment through also to than effectively plan depth out that really price the planning can the that system new markdown think in more in and we the But assortment with merchandise markdown. past. our financial proper I full in effect, in pieces a that a markdown we that but owned inventories mid-XXXX, the and and depth – not sale rolled that moved that, have that we novelty flow the have

our investment our between and in, approach on that the So that confident and we’ll done both we be – we’re taking forward. the sale approach we’re architecture assortment price our going that work we’ve believe that across in

Oliver Chen

Thanks.

David Biese

far in margin, year, business for guided the original margins our in points direct have XX teens. As the the as That an operating forward, have which operating that XX about would of doing going idea been when to And would our we we originally, in were thinking improvement looking year. about result the and operating our margin. growing expected growth basis the in high for was really

have and full XXXX, right plan heavy should for our XXXX for where now the we we be guidance take between to year-end going advantage take of our business our we’re will – as planning now understand for and far we’re now, the the I think optimistic feel to we Having you tact, prospect very to originally would and for our way we grow that about in the As business tell changed. that this intended. how business models can long-term haven’t said We look XXXX. really the and chance and hasn’t that that, time to call

Oliver Chen

Happy you. holidays. Best regards. Thank

Paula Bennett

Thank you.

Operator

Stanley. comes next Greenberger Kimberly line from of the question from Morgan Your

is open. line Your

Kimberly Greenberger

of so a I you Good to wanted couple much. morning. Thank ask questions. Great.

X% up the think, It new Thanks. in And sure what new about much are going to or address be a to carryover you e-commerce fourth with that? platform And two of the you or to How inventory. inventory? like, to move your discussed, the about the here. not on value. I if what lower how second from in it’s they’re and quarter on doing through metrics, and looks merchandising and not versus slowdown fresh the mentioned I I’m you the able to third saw would I’m conversion this not by expect what’s think that is platform is, caused totally e-commerce? understand quarter that? order whether those miscues they changes average sure fact, are you in related lower First

Paula Bennett

in of we with into that, e-commerce very out the the conservative taken way. new the – go terms testing Well, have performance, we’ve e-commerce to And I’ll the rolling – done along platform. that just quickly a approach

that ensure that impact we as experience we’ve not a have really we’re the making e-commerce. So delivered to on that had in – a customer results rollover. we great created has that It does we just efforts significant

some we were the September in and in in of because as we assortment, So product product dramatically full take technical the sale And the I the the merchandising was assortment we sale price most fact impacted broad e-commerce. our the would in October that. of not the and that not call, product to of of sale impact can aspects be, the with fact mentioned merchandising because did that assortment But go into And more customer. the that, the assortment. because of resonate

one small customer So platform a that we’re way through and deliberate experience. ensure But working to it impact. change in it great a doing very – a has very the e-commerce

David Biese

X% the We’ve with in that’s the of year-over-year. you comfortable at third we’re product through regard of our success, that, inventory, we’ve quarter with the very some is about reiterate the inventory up channels at where Kimberly, And obviously, rate the I’ll relative feel, will, and if had yes, of end to into fully baked moment third the quarter. light moving quoted. we’re

the in change move have goods those expected to look to the do to in something As our year-over-year quarter exit comparable through continue of year-over-year to something significant year [Multiple not quarter again, Speakers]... expect we of forward, we expect year-end, margin look and terms equal to terms And would in By portion we a goods. in of third third inventory growth. represented for

Kimberly Greenberger

yes. Okay,

David Biese

we price full of …fresh mix of and the terms whole in what sale price call goods. the

Paula Bennett

be inventory the month. Yes, each heading confident, New for in we aspects the qualitative Year. shape our season good each and look into at quantitative And actually and of we’re we’ll

Kimberly Greenberger

Thanks so helpful. much. very That’s

did any file the experience customer customer during issues your experienced, growth Lastly, growth you were your the quarter, in you file? that prevent in or they do

Paula Bennett

growth continuing model, our the deceleration ability We saw file. quarter, still our retain able in in we’re to value loyal we and to we’ve our invest a customer but been customer believe in did and in have grow our business customers, of We acquire and acquisition and our strategy. the to

the have we continue yes, was our the growth retain develop and the assortment from confident them. slight again, to but did in ability able to had, in And the product we ability acquire confidence we’re to prior quarter, third our to customers It deceleration right grow them in file. we So quarter. have really with very be

David Biese

had positive in we November. a And month

Kimberly Greenberger

Great. Thank you.

David Biese

Month in November.

Paula Bennett

in October November, did yes we and in Yes, yes, –

Kimberly Greenberger

much. Okay. Thanks so

Paula Bennett

Thank you.

Operator

next comes of from Tunick line from Your RBC. Brian question the

Your open. line is

Brian Tunick

that item? you question, on shipping shipping, very line us help days maybe you order year guess, think driven store of then or like October you opening how maybe by also and far both free we the Thank the the last how store on second Great. or positive two in about comps for quarter could can side, count maybe that if And next be versus November AURs? side. their so side, anything fourth that the should Thanks. about, store more And Can minimums much. I morning. help you us were thinking used on online transactions with tell questions. I in you us the guess, understand year? Good the and first, offers,

David Biese

Okay.

nice versus say, improvement in again, was traffic. tick had our September, we I as We improvement and in then a it those, really largely in saw and going an there again saw driven So November, what into November. October the October would we saw I conversion. through also stores by –

and there wasn’t anything plus AURs far either As order like, minus. really as side or of like average the on and the notable

So as most reflective was we’ll we from with really customer September on. improved. call like move it of the product we the that for feel the part, engagement And improvement and

I we Cyber different as offers, just conjunction changed. into fourth in we a terms wait have ship is often, to of to real it viewpoint it will stores. have quarter, a we concerned, and new to with say, number a promotional order often promotional ship, opportunity next openings through quickly the of, in we’ve the And cleared way in previously to just goods. our store opportunity year-end and As year were described don’t and the overall is what that free when a do use don’t has exception overall Monday. you would With we in not far as until more guide yet, it I for broader I is, regard call. moved with But again, And say minimum involves always to October offer. a the it the

days have we days, context. more free promotional increase we ship As in that offered would year-over-year

Brian Tunick

Great. Good for rest holiday. of the helpful. That’s very luck

David Biese

Thank you.

Paula Bennett

you. Thank

Operator

from comes of line Your Randy Jefferies. the next from Konik question

Your open. is line

Unidentified Analyst

maybe of in, year? some drive new should you then color can we acquisition kind for SG&A that what of Looks in for had the and guidance how of to Is the to customer expect – specifically what think those you’re Hi, thanks us range. single-digit it’s And be kind question. taking on running sales you give a on how like, I you’re around about doing? some This Randy. some question modeling [indiscernible] up investing SG&A. our Thank you. been for mid tools next is just there

David Biese

of to the customer through in by up say ramp seeing the comments influence our that still right script, is, a that I and investment SG&A, seeing of I guess, we’re are marketing nice that. now went and the being engagement. is you, on what we the some gave largely driven we we as So really would

the investment, it still as our we in are like marketing business is spend. rule, a more valid driving feel of the revisiting and and than of tailoring we So general are level we the relevant mix

not time year next SG&A, to far the As yet simply lot of we looks are color season, give really middle of as again, year. model is is, year. I’m to our take really And like understand because that planning next full year, are avoid is in terms to given going prepared for by not of our quarters a of next spite to now, in the question just on what in whole of particularly and that last concerned advantage it our

the level But third a we and you, tell regard that, again really experiencing. accustomed So saw We growth color don’t taking would I in lot a November. improvement going see would on and regard about in the With that we’re at we and quarter on to. nice the that. our We customer to acquisition, there’s going to more what not I did always hindsight October that in to wait file provide you on off we’re us see call. veering year-end we I and tell a tailor of how are think

we think, as meet customers have investment will of tell us. the the still we and acquisition we’re what is in to what always strong. our kind acquire, right But of metrics continue the level adjust, opportunity So now, experiencing to I

Paula Bennett

drive Right. to Dave projections data what said, as our profitability in very our we effectively our as use file. growth customer And of terms to projections, up our play well

of customer and that intact the on customers, to grow focused than acquire retain and we is are that more value that and but to also So ever. each

Unidentified Analyst

you. Thank Great.

Operator

Instructions] next from [Operator Your question Wells comes Fargo. from of line Boruchow Ike the

open. is line Your

Ike Boruchow

rate give I you’re going reason make taking sure the trending Two And lower you kind sure the maybe Could just holiday question. altogether figure figure Kimberly’s my picture, on morning. that value One Thanks behind else were you, to Paula, just in quick trying understand, for section, of good to something then questions. that for or to understand with the out conversion once there? try is back this pushing you new average site dynamics because out the it the trying just make order want of QX? Dave. this to out use why think, just Hi, to and a to I you’re is for question, the bigger is one to us tax seeing were that’s clearing issues I

Paula Bennett

if take… Dave, want Okay. to you

David Biese

first diluted time. of run number one, we tax a XX% our used kind adjusted rate is over the the rate On

As far rate, a use fine. XX.X something think be the effective for I as what would XX.X, would to like

Paula Bennett

one our the significant ECT. e-commerce most So, on And new within site, Ike, on the I the site were what that areas performance. of we the the intended load site is they’re than that page for our impacting in the goals which are performance. time. we slower believe ECT One mean, legacy we call two they and the are and terms set is there

XX% than the our extension than a by page pages the about So load to times she when legacy. goes response about are And lower average that site than customer total legacy averaging views slower our are site. XX%

not way being second, are the They’re there customers. to at site are displayed by technical think, it’s are I traffic clear on for not on new platform. which the inability issues. these driven note, are And on all site, are by new handle to differences that new in important the the driven promotional So discounts issues some an the as

traffic site, we move through than So the areas the the impacting new in conversion rates on onto working believe these we’re are both more site. that and rather LV of

We’re working through those.

those issues. or those have they we’ll meant They’re by areas both IS them feel significant areas confident, areas. be as that focus And early deploy fix technical to said, we us, the team. to and January a our fix behind plan both is season we And I address once that holiday able to deploy of – this of in them. plan addressing both are We’re address

as that over customer to So site we’ll able a provide on be great experience. roll to we new completely, the

Ike Boruchow

to up? it. rolling started try you these new Got when Paula, pop did you site the when over And into see did when start first you – issues

Paula Bennett

sure anymore on. XX% We to that we with a the we Well, experience. we for to customer more business we to want to we through we rolled where not on there we to realized bit started as a make wanted needed impacting take enough were then initially. the have learn didn’t the that site, And point a got level

Ike Boruchow

was happening QX? that And during

Paula Bennett

that’s right. Yes,

Ike Boruchow

you Thank really much. it. It’s got it, helpful. Got so

Paula Bennett

welcome. You’re Thank you.

Operator

SunTrust. comes Your from line the Pam Quintiliano of next question from

Your line is open.

Pamela Quintiliano

for so guys. all much, the thank and Thanks details, you Great.

So two ones. quick

holiday, about then, with regarding the what we for events? think XX%, as of perspective or from should that comp is current more of XX% First, see should pleased that’s cadence trends. typical guidance, unusual, these type holiday season? we there you’re clear your very And as how promotional anything Is a that far the

you’re the does that? continuation the Thank trends of assuming you. to and just acceleration So assume current about in landscape going how against beat guidance whether a and you’re competitive

Paula Bennett

what competitive question but your always product it’s market feel mean, with was capture than well-positioned past. start less the just been we believe the share. we’re this second second that the don’t the with we very And offerings competitive, to first more was? in And I’ll or Well, environment. to have, at is continue time with the thing retail and we I it that competitive has

Pamela Quintiliano

continuation was visibility a flows is that the just assumes trends based coming in the guidance The on part regarding, current are of first in? your acceleration of question on

Paula Bennett

an had November, quickly. been delivery, nice trend We’ve I’ll had have so. of with well, the just – product from well customers the moving our the say December and with delivery. the that through product We’ve with very very October improved We’ve acceptance

David Biese

to shift As and going way see don’t and necessarily promotions what far for as I do that year-over-year we say promotional a feel the use is, it cadence guess, would the as the you’re used business, dramatic cadence, I you I like say we Christmas of heavy do pretty and will, into shortly I’ll before to a sale the kind – in we if that generally business generally we that January. shift our through relates from us travel

is see the fact of an third guidance saw towards was at we November reading same that things I comp I from strong price So doing doing a customer our I but us you’re goods quarter. of really point, better in eye a you this that through at with sale, our say imagine that. guidance whole as the advantage fact lot how is really necessarily I well, that behave It’s we’re to again, drew far the the taking point the the quarter. kind that third we’re nothing time – quarter. and our offer wouldn’t balance all levels, about we looking have into the wouldn’t optimizing this really of as understanding everything promotional promotionally, move cadence described, has – And margin balancing at mean, move to but the quarter we as concerned yet the third the there’s again, inform of that is so at the some at unusual reflects, our pretty what an inventory just necessarily and going can to and is really unusual we say what looking And

Pamela Quintiliano

luck. Great. much. Thanks so Good

Paula Bennett

you. Thank

Operator

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

Paula Bennett

before to their our customer. were with to all. you. you on joining to our wish us holiday. season and team But very And thank Jill everyone to story. today. to Thank underway, look J. want able to progress commitment New I thank you for be you a Dave be Well, you the wrap pleased tell holiday updating We really our for and we I happy and like Thank up, Year. in forward with now the our I’d very to dedication

Operator

today’s conference. concludes This

You may now disconnect.

J.Jill (JILL) 5 Dec 172017 Q3 Earnings call transcript