FL - Earnings call transcript Q1 2019

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Operator

Good morning, ladies and gentlemen, and welcome to Foot Locker's First Quarter 2019 Financial Results Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. This conference call may contain forward-looking statements that reflect management's current views of future events and financial performance. Management undertakes no obligation to update these forward-looking statements which are based on many assumptions and factors, including the effects of currency fluctuations, customer preferences, economic and market conditions worldwide, and other risks and uncertainties described more fully in the company's press releases and in reports filed with the SEC, including the most recently filed Form 10-K or Form 10-Q. assumptions results could those may the statements. such results, significantly contained in forward-looking actual and differ changes or produce factors different in Any materially from conference recorded. Please is that this note, being the call and Finance I will Relations. now over Jim President, Investor Lance, to Corporate Vice turn Mr. may you Lance, begin.

Jim Lance

earnings Thank everyone quarter Locker, Inc.'s Foot Welcome call. you. first to conference

share sales improved reported pension the past. this that have came matter. $X an morning's driven net margin a million $XXX of quarter first the compares in in incremental income press first quarter, Included reported matter to spoken an quarter charge per As charge about of the results in same in year a last $X.XX by gain rates. $XX $X.XX This comparable to $XXX of share X.X% to income related that Earnings million is year. compared gross related million the per we the release, in the and of included results in to Last the XXXX. this net in company first year's the million

release. $X.XX mentioned Excluding results year. the will basis included on a to earnings otherwise is non-GAAP non-GAAP of quarter $X.XX Unless be press share, during in results. rates our items on a call increase figures to based compared first and per noted X% this reconciliation GAAP these were non-GAAP last today morning's A

around update our long-term we drivers see color the the review financial as year remarks the with financial on provide performance, will Financial of as quarter current our outlook Peters, our prepared Chief as against details our Officer Johnson, our year. strategic Vice Officer Dick Executive balance along progress will the We provide and Lauren. with for results then key some first well progresses. Chairman of the Locker's what will on quarter imperatives begin Chief Lauren Foot Executive who President and an first

Lauren Peters

by by and and in February were also On from single-digits. currency impact total in our you of Reviewing a regions sales of By of $XX the all compared and gain, with by constant channels. comparable basis joining top month despite and which and has comparable reflects work impact all X.X% to today. to currencies XXXX comparable off morning Good mid mid team expected Jim. single-digits gains March million. gotten reduced increased line shift where us sales Led up into was for including even sales sales ago X.X% were increased our channel gains the results overall thank the mid you shift we it Thank the up ongoing to increase. X.X% our start. our April. stores April single-digit you of stronger to high direct in comparable solid weaker a sales customers. detail, up while Easter sales came our the the was with XX.X% our by year our X.X% connections to the benefited rose sales build channel sales out customer the led Breaking a single-digit. with a foreign from up performance

improved. DTC initiatives and traffic rose recent our this down area. to the conversion drive percent in year last of Store to single-digits sales XX.X% As reflecting for low a from up investments while overall total growth quarter XX.X% was

quarter mid posted had Foot comp posting in Locker growth. gains. up a comp growth a gain. Europe and traffic the third single-digit touch with our of low way gain. Foot were mobile Sports double-digits. Locker and sales Our of quarter America Champs points broad comp single-digit to based. digital comparable The mid by with divisions Sidestep the double-digit Point the returned Locker Canada single-digits comparable U.S. In each each consecutive single-digit gain. performance Foot Pacific sales sales and Foot drivers strongest low Runners led a the posted were all gain. led low a with North up increase, produced saw overall Internationally its Locker performance Eastbay

a basketball quarter minutes business side Fila, double-digit Nike, an down In comp Adidas, gains Vans, low a was in the strong will running provide single-digit by some families declines posted double-digit business Dick with business during additional decline. a that sales strong of Footaction and single-digits with were gains their ledger impact was single-digits during concepts gains to single-digits. other footwear Trends was and mid and the the decline collaborations. up single-digits. but was mid had Kids men's comp Puma, was socks classics footwear Overall In demand double-digit women's based increased limited softer single-digits. category offerings Foot while apparel. our footwear were of posting accessories single-digit were in in footwear result low exciting while Within flat to men's in and and drivers leading apparel of improved quarter of excellent Locker business with prices Children's up up in the selling were part the few down quarter's broad color to By demand to men's the category footwear strongest On was Jordan. quarter due up high a posted Average fashion low on our single-digits. slightly. due from mens high men's increase. in offset high bags Turning hats high quantities the comp high the in units

focus to the in Nike, in strategy. and from which assortments with a single-digits the single-digits was single-digit high business Average selling up single-digits mid down while the mid units gains Tees Overall quarter, and women's Turning decreased led to premium Jordan, grew was more branded apparel apparel continued down were while were drive reflects low on double-digits. I by Champion, and fleece prices in men's mentioned our low for children's low we Fila. apparel This were up single-digits our which business quarter.

from picked also assortments business by Nike shorts led Champion. and men's up Our

our to we store margins, Turning strategic make to our customer build fleet, recent now and and we Investor out investments to at Day infrastructure. digital as capabilities, company's continue have upon in our connections laid

do focused were and Even to the gross our this XX.X% by a basis to the as we single-digit effectively line. XX.X% XX we ago. business to first improve sales quarter to are the on In year of a efficiently improve on lever bottom able gains we from operating comp mid margin points

of basis and expense. margin gave relatively us was XX freight The which higher incurs Our improvement. merchandised while merchandised leverage points compensation mix by the basis decreased margin fixed expenses buyer's of impacted rate of points our occupancy XX DTC higher

the we're rate XX% in a higher sales making ago. to The our SG&A increased minimum digital was the infrastructure as due from investments year period in and quarter a Our largely expense related XX% of the to capabilities in well wages. same as to higher pressures

included cash Depreciation last from the rates last year SG&A balances. expense approximately year. to onetime due $XX year million the Hurricane decreased from million first higher to $X during to recoveries $X factor of contributing $XX increased Interest quarter million interest $X our in the million million Another insurance on prior a from to benefit Maria. related income

last to below expected to Our was allowance. due quarter foreign XX.X% adjustment and tax first primarily a tax QX valuation better year's an rate non-GAAP rate credit than

end an the and the with QX cash on $X,XXX quarter million year. of of Moving increase to cash we sheet, equivalents, million ended the last from of $XX balance

During XX,XXX the for first shares quarter $X.X we million. repurchased approximately

to previously we which While $X.X implement is to subject various appropriate. paid the represents quarterly the dividend legal billion parameters to previous million quarter a repurchase our plan, which continue first of the time may That to we program announced vary $XX in recently activity increased were intend new our and which said was time. XX% limited increase we during dividend repurchase laid rate. strategic course financial, of when share program from and strategic, $X.XX out being over do Execution out

In invested and Asia expenditures quarter approximately XX the of two $XX of March. into we stores XX This million new during our stores well consistent funded as objectives power remodeling outlined opening our the business the relocating terms in sixth store the capital in as including we stores. or with of

X,XXX We stores also with quarter. end leaving the us of stores company closed owned the XX at

a at the X.X% continued to inventory constant X.X% increase increase. positioned reported of total compared On end sales April neutral be of to compared our a year-over-year X.X% growth. well X.X% just with Our currency to increased currency the sales inventory basis

to Our remains QX. positioned inventory fresh and and are continue we well in flowing product productive new

outlook Turning of now XXXX. to the our financial for remainder

of is is the we flat quarter typically a quarter call volume big likely year a XX lowest points. shopping single-digit basis For to gross comp be events, to the gain. with down mid the low The to action now no reminder expect which margin to second as

gross basis expect to in XX continue comp margin improvement. we For single-digit XX the full of with to year deliver mid to gains points

points the quarter On expect basis the rate the expense expected front in XXXX XXX through we our Day. SG&A of as the SG&A back to increase I deleverage in second with improvement during noted half Investor to an XX

delever full our previous to XX with points, SG&A by guidance. to the track year expect we For basis XX on

Finally approximately said about provide our that turn rates our full to increase far putting going per growth insight additional against activity repurchase you tax All on pace imperatives. EPS high now into year to we're over XX.X%. depreciation first performance expect am to to million be and effective now we be rate strategic so the full being the still expect slower quarter we year share is and updated earnings executing Dick $XXX in share of our call doing pressure single-digit. how to I our to and

Richard Johnson

remain launch power up men's, most release in in everyone. Even across our year quarter and To new two NBA Investor morning kids updated mid single-digits. in our expansion the on the strategic big solid starting the Day. program, like good our kicked and financial we Asia, top initial new are focused mind. first to more at tremendous four imperatives all the exciting reached business product businesses. sales This the Laure our in ongoing comparable we with with a results managing that encouraging women's, produce execution this membership happening and our continue imperatives with of in with Game stores, Charlotte, line recent opening of concepts Thanks momentum regions, objectives key banners performance storytelling, the events and of energy We and FLX off All-Star strategic of with

elevating third, people. of customer First, for leveraging the investing driving experience; the growth; fourth, productivity, long-term and power our second,

the by elevate through the connected some efforts [ph]. of customer to customer reviewing start Let's experience lens of our our RFXC framework

our collection our talent home exclusive did Nike to team vendor and deliver strong quarter the collections. day released were those leveraging Nike and makes Air of and a Philadelphia. partnerships unique compelling Dallas, Seattle, an into our was job platform cities First, customer what and highlight, away a great. With concepts this lead celebrated and Max. the generations in have excellent To great release internal This next a

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customers build We even to avenues order wide through data leverage provide of are range our the continuing points we our to in with give this connectivity with exciting engage to touch us. more and

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remainder are XXXX open track the XX in For of we stores to Asia. on

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serve invest and significant making already are brings leverage customer stores on solution the gives XX% and order expertise tracking our of talents our improved we fourth drive the order to In to across experience me people. global imperative, the for growth, productivity, elevate tapping focused to live. power our This data redemption, progress which our strategic capabilities workforce. capture, now long-term email FLX receipts, approximately of are and new markets our our additional us European enrolment customers with to across better and including international We

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our great to customers we're and shareholders. dedication work for imperatives focus building start With our their our experiences the delivering Operator we strategic hard with now are and the for ready value session. combined on providing and four achieving Q&A

Operator

[Operator Instructions]. with is Jonathan question. from Komp online Baird a

Jonathan Komp

performance, then that originally you of you up had to level said sales you know any ended and areas Lauren to clarify, saw? investment the expected. you margin that margin, gross Can versus expected, you quarter close the were how First comment pretty what what G&A, of I within variance on just in

Lauren Peters

that's points with increases again a Well, affected of leverage of strength our fixed the one dynamics. as of DTC basis on in merch XX improved rate margins we that basis cost points the our and penetration XX by performance margin

the SG&A described freight to that components challenge leverage bit business there we carry half in near-term back as we the more that's technology Of that seeing described several how that. in allow the are the big we benefits in it versus front Investor investments about long-term on agnostic a the across SG&A had us but because be on the delever we agnostic yielding elements the within customer the sales to half, finish near-term but as the shops the regard. but the in margins course and in again those higher in channels remain Day, on some

was element that So biggest the there.

customer on in We back minimize our focused have increases productivity minimum the the side and expense to ongoing the so our improvements on effectiveness maximize of the house wage the with then on and that we're marketing, marketing very many that. strength DTC experience. on bit it the we And so variable around is is you third element so the a the have have initiatives

data see we're technology to dollar to we dollars ever that more fill opportunities You able seeing and of how and effective marketing marketing ability sales become will a the marketing see the get up. drives ever with our margin. FLX of more that for that But dollar

what see the are work would and the big we pressure those I half. the in elements there again half is So more back that coming on reiterate front than

Richard Johnson

single-digit Jonathan with like they But the the improvement plan would with generally in SG&A were line in on deleverage that add and line our were sales generally were just comp and mid what I we to margin expected. in

Jonathan Komp

on the then and great the initiatives Okay better expectations half for bigger the adjusted up on of launches maybe that I how follow as the trends or to when much you then of much the sales of is needed year, better that I against sight like tough back all guess general know especially versus in that surface repurchase the you earnings you how at share in the new line mall question better based for have comparisons what's you assumptions. it's flow look range specifically through, highlighted? margin based and on my product outlook do the on traffic pretty is a whether

Richard Johnson

consumers things and know Lauren stores we as quarter in is comments my us coming the the in second partners I a exciting of believe heat we in of is not get and the shifted and has we've there plan. get into her original point mentioned be heat sort got season. moved got pretty and our in this quarter Jonathan great vendor got deliveries very period comments of different when so a a and good of terms from where online But just sight then good we've lot that find half and a launches that of we've you when sports of our may our and that in the sight holiday line the with for the and line At product listed back back in school the you get a to but retail you into back into to third the banners heat great

to up certainly But flow the we've against given. point So we're product of sight line comps. a the tougher good we got that and are and the we've of guidance product at this about confident

Lauren Peters

we in on about bit Investor sales traffic, all going about and And the stores. in think much traffic across traffic how industry to just talked conversant ultimate we're an it channels, is digital get a Day general mall the as traffic influencing I more in

You the stores. that foot influence the not of each know in factors described simply up blend, also store. Those other, into we they what's conversion traffic matter a is it

Jonathan Komp

the for thanks perspective. Understood,

Richard Johnson

Jonathan. Thanks

Operator

is FBR a Riley with question. B. from online Anderson Susan

Susan Anderson

that would cause what second kind single-digits, slowdown just are from bit bit the a that? just mid particularly taking second Thanks. quarter there the seeing my launches being wondering bit quarter, a on little I in you for slowdown in quarter was maybe could more maybe I first fourth footwear of if in in thanks and about business guess shifts is and morning, quarter of of you Good color and could little And talk give guide any a basketball there question. also on better? there a you're with going if then from the men’s

Richard Johnson

quarters Yeah, was of good so none linearly, and launch quarter product morning some up in heat we had on our of quarter there. Susan. actually Yeah, the line fourth men's of a the based positive that really right, some

quarter again in quarter and puts on We continued the launches very with first product. of flow to with takes have positive a the

with to Certainly pleased seen off we're casual aggregate So the the we've business court on lifestyle men's from court. and and the basketball business. in

to that have We started see improve.

across now have comes back QX certainly Day there at we that than have the to know to quarter So positive base, flows of we the of see in our products at different as again shifted what have related was and launches the out order even the all that ebbs would shifts time. Investor we of guide fourth as normal we some and and a as heat guided that periods

that things So and of have shifted elsewhere being for again of a guidance. end that's the QX out us up couple the reflection positive

Lauren Peters

We’ve team that that QX looked seen at the concepts potential and excited collaboration our and and quarter delivering has fourth what's for both and as response good been to that. work we’ve commenced are about

Susan Anderson

kind maybe that's And follow not some up It pretty when if guess just so on you thoughts step maybe like there? sounded this then also big looks which in change could apparel product and quarter. Great, maybe kids business give just helpful. color a had one the just on get enough like of there some back I or stock just improvement

Richard Johnson

cooperative -- the out delivery we issues cancellations as [indiscernible] we honestly and found about that as and we get shorts and and farther But tees weather soon the later summer. we didn't to we to but country expect coming. tried Easter the know shorts quite accelerate benefit we season with issues the get the get as the we with is not most Susan of delivery really from the of and business some had in business some T-shirt late across We some the

our of and react is and the to obviously delays I majority the some apparel cancellations did the really kids through Kids our it great think and of in team banner moment in job trying happened the Locker in sort there a just a the but late So snapshot shipments of sell of we time Foot game.

Susan Anderson

Great, that's helpful. Thanks so luck much, next quarter. good

Richard Johnson

Susan. Thanks

Operator

online a with Deutsche from question. Trussell is Paul Bank

Paul Trussell

just us, and further bit for launch but just to a question consistent thought, for gross maybe or the just given for the prior relatively there be bit dig on both to you cadence on I think in XQ clarity, there you little the shift way Talk outlook little that morning. the a deeper comps banners throughout answered categories Good the due was or dates responding maybe a year? more the aren't year are in know the revision just margins just I other solely is product

Richard Johnson

Well, for in a certainly we up biggest the shifting we lined The of quarter single-digit year. the has shift out are products is quarter. about mid related so second that now comp quarter the to never the talked perfectly know

as we Day as some of opportunities have it's back and in. not we and Investor things seen as been abnormal, it's the as are Normally quarter things So there's very second to puts course shifted back flow guided flow a not we flow that there certainly that when business the things see in takes. out things late now normal and even some right have have out couple shifts that quarter we our of

clearly still and the can while this team working whatever guidance. as we today against we'll we what in see talk And we that's did fill offer So, merchant we about just level comps we're gaps is and knew so what the throughout again more. as that's quarters models update trying can your fairly guided to update the we you that that we we all but at learn time

Lauren Peters

second point margin impacts the relatively volume we Okay, both leverage that with and will quarter SG&A. again quarter being within reiterate lower

Paul Trussell

in the both talk a about Got also in little business the more business? expectations footwear it, apparel and then bit maybe and just then around ASP

Richard Johnson

more is with things normal speed collections we're to it things the the things XXX doing even we're we're we up. right. continue And those, opposed price to really our do embellishing generic drive a when with disruptors the prices. ASP those a with look whether works dependent the not that our our trajectory to Adidas, complex team the ASP's XXXs, of overall things mix. you ASP inline are I merchant selling as strategic that able as at Paul Yeah a about been of at them more think some do of view. if collaborations We've feel to of seen sort Max continue partners and partners you and ASPs able with points be normal that's pretty and factor our We're we've But raise of MSRP to expand vendor on lot of point special Max we from to and will nice able a model

apparel we premium focus continue we expand continue get the continue continue mix, ASPs. to as our the accessories we again business in So to as more the drive to sorted we and out, footwear heat ability see a to as to on

Lauren Peters

look line, sure they across price we've price across don't know You out stuff were plans. price We what got as bringing our thoughtful assortment cool they're making very margins the across the we're so again that about customers. of want

Paul Trussell

still And but lastly category, slight sequentially. just on basketball negative and the very quickly improvement

curious as to in player Just responses you're front as customer that other on shoes terms product? what Nike seeing well of of

Richard Johnson

whole excitement the Booker, has really Tatum, the with sell about talked a lifestyle there are Paul, around And extend that's Yeah, of new out coming Jayson basketball strong maybe Devin and shoes out, from that's some to lifestyle it I Air basketball now got that guys De'Aaron right there's Gianna to continues it. platform Ones from that got player footwear, AJX I that shoe that. the We've historically products Fox Force NBA know piece Kyrie's the on the LeBron certainly reception the basketball shoes great to and shoe you significant silhouettes.

around than think Rings, more course think And continues at about times Jordan much retro models of is the -- those up to just you in heat great AJX, there about think be about So basketball. cycle. X you are the all that when the energy you various when

the good are where to House is court product doing of it as side. but basketball through product So again basketball important I about think we're I Hoops part that like House of things Hoops where the We're is consumers product is the of the the feel trucks. taking

bring the our basketball vendor a so partners. category into to of You with we're back energy lot know trying

Paul Trussell

Thanks, luck. best of

Richard Johnson

Thanks Paul.

Operator

from Susquehanna a online Poser question. is Sam with

Sam Poser

quarter, understand you question, count to how and than make is want back what less of future I buyback here brought to you you now share average right want that going the buyback quarter to for up missed the you taking in good my full year first be us sort Thank quarters? and the that just morning. the for could you the give the

Lauren Peters

So the share balance to the going count. year. the we published share am average count rate of predict I for not

Sam Poser

What about that thinking year are time you of the now?

Lauren Peters

our thoughts updated incorporated have guidance. that We around our in

Sam Poser

just XX,XXX not needle, -- buyback why that up move make then you the talk got you and buyback, the said big to the you to more just that shares you And not buyback what plan authorization? do, why the you make could didn’t -- back is clearly brought about you

Lauren Peters

not have share opportunistic it We Sam program the is previously repurchase described was formulaic.

authorization We time three program the to from year have execution a $X.X of that and strategic, financial, and billion to various is time. subject legal varies parameters

implement intend continue to when that you to program appropriate. If

Sam Poser

think the the think foresee store QX as the trajectory somewhere to I a sort the back you to is as point, the the sales, year and Okay, and point, and low in it? mean, way half of a it when same fair of that do about you then QX high of QX about middle, Dick

Richard Johnson

out talked we a pressure QX. you shifts that QX expect on about as we call of more little clearly Well, out

up the wish think QX the on are I prognosticator half comp flow enough flow. a improvement against big good little back bigger but we the QX single-digits in in the see again was and year. Sam mid and good We to about product I feel for but the based product between

is school I with the quarter believe back holiday, heat the be in up shaping going marketplace. to a to and Third season lot of there's nicely

process shifts changed again thing our only around the out are So, really we quarter. that and the of out they QX thought go clearly the of

that's elsewhere. positives So QX but in negative real some a

Sam Poser

and in what's back fourth been given making your haven’t us And guess then changed on to backed think you of other a planning fair? calculations, on you to back are margin your into lot the happening to I I third guided you, a you so I you is it quarter get are mean, -- lot it, don't mean, I you your making can but you give planning gross

Lauren Peters

We year. guidance reiterated for full our the

within and So delevering gross XX XX SG&A. to to improvement XX XX margin

the you've the second the quarter, quarter first we've explained half. that you with So help got in detail back should

Sam Poser

further the now were as that what's that then again continued as be vis-à-vis have shopping plans recently major any your Dick have you what people changes seen and adjust change, the and you are for worth in you seen Investor Day, products ago? evolutionary have few you might to even and there the thank way a months have to noting way lastly, change there been Okay,

Richard Johnson

channels very about is I and buy, a our job job to the done think consumer as total seen really very Lauren I consumer close don't in the traffic coming mean so But nice shop to they is and how explaining we conversion was choose in them with digitally connected the stores store, a connect pointed our driven are having buy think that create and much research, investigate the Lauren out up significant they products I and through haven't engagement think to with kids is and Sam. they the did come we digital their so and change. in, -- they create that. and us in, they know

then to doing digitally tough it see are would with fast, driver, about driving. digitally the great cross with I first I job and with think is an in continues are Day. very different the think the as going the comp able that's connecting that are single-digit we is team there's digitally our better. Investor at of the thing we opportunity certainly mid a connected, storytelling The that consumers' move have and consumer a today even business to of trends we them forward through they a FLX our led, And will believe they But quarter. nothing be talked we I our behavior that then Sam, portfolio understand our banners we'll program

Sam Poser

Thanks very much.

Richard Johnson

Thanks Sam.

Operator

is Advisory Cristina question. Fernandez Group] a with online [Telsey

Christina Fernandez

as to year, in the wanted about second see the start promotional? being of see environment sales you the the sort of getting promotional quarter full of I to retailers what and do slow more ask same about quarter first lot in quarter activity, an to less and the Yeah, you the talking did you going with mall or -- level the a off off look through a

Richard Johnson

the Christina. for Thanks question

little You to on bit almost would know our by marketplace still be as to collections executions a lows. effort driven create run there things a record opportunity premium in but content different was some at I promotional talked around and European be we creating our our guess buying really promotion what premium markdowns before it's continue that And the consumer think about or great the and place selling I buying continues across by market. pretty products. the and teams

Our as being back the premium to a well. team we're more shifted positioning is there assortment

what in to we had excitement not have a great of to is XXX% heat not marketplace. the promotion we have product lot on you but deep the team with in and a is certainly done there and but markdowns a regardless marketplace. get the cadence our So agree discounting, into I going deep bringing stores had the clear has of would a job

Lauren Peters

premium being we're its of one of why selling focused on continue inventory, the so, environment. good to price freshness, So at the that turns and be so reasons how quality our it that because

Christina Fernandez

thank early getting the of when as you program the And reads stores to some expect far you've us it is, that across on Lady you've and been broader made of the chain timing Rockets see FLX investments of update you? that any the relates rollout on when should feedback Super then Heroic we and can the to on the Locker Foot then Awesome strategic as

Richard Johnson

I FLX, with Christina start right. will Well

getting break might the launched a understanding find have learnings points consumer consumer benefit really is really Locker have of great we and of that the has the been take Locker greatest Lady Foot in our I seen amount specific and there's from banner be didn't try points and etcetera. seen where aggregation, a small has redemption, consequences benefit reasons in that Netherlands But they them think points the to we've center that where Foot for positive. to response anticipate, they've consumer that points our our yet relatively to something the team what place motivates exciting. job the and for to and done use understanding We've the Foot the those unintended we see it friction we Lady see Locker very accumulated

and walk or before the to commit to are we with ultimately a So good the to banner banners crawl as see not leverages year dates, back one But learning along I'm going bring multi it going we have as entire this roll approach far of half multi we've so more out into throughout the fold. portfolio. to committed that all our portfolio further we we

opportunities invested with and that Heroic we've that We've what a we've great couple the be more presents. And way. out with what Awesome, business Rachel Super On to the in. the and opened. Jayson inspired their family. means know events we opportunity identifying continuing by to investments team of team Eddie we in Rockets his and lead enthused stores continue at with companies we've power the working we're do real create the Katie them opportunities some the continue to with And them you to people then invested understand the and team only pencil work what to great at [indiscernible] we're along that subscription is for of the her hard products Locker and the implementation CarbonXX at sales really and things. unique team continue digital right of and figure Devin to and with had Foot

make to continue we So progress.

more see we and as that Christina. about hear go You'll we as forward

Operator

Piper Erin is Jaffray Murphy online with question. a from

Eric Johnson

use just Eric room or being or and any opportunity there quarters mark thanks curious improve of omnichannel, for with in the like It if hasn't just the a that years, today. to it of grown reflection our to question. is flat on with number in RFID, Erinn is ASPs four is time of first for better I morning, that seems a taking down etc? continue was optimization quarter, so Good

Richard Johnson

opportunity have expand we more presentation. footwear see flat We I'd as continued premium we up did Well, order as of talked apparel to our were but overall about ASPs a a shifted earlier ASP's. to have

Lauren Peters

flat naturally the and say would and when footwear -- can't gender we you at fact say a I are point. But is comps are kids. that that with across sight you lower of high lose mixed footwear single-digit it's on price Those

is double-digit women's, growth, single. mid strong men's low comp We also have very

and mix got a to you So that of footwear. flattish what all out needles that's

Eric Johnson

on then a refreshment seen for in of remodel fleet your power in Tech we that a pace have good and on activity, number QX is more priority pretty of slower than a a standpoint? bit I.T. understood Okay, years, the a reflection little from store, position

Richard Johnson

and relocate the Eric. remodels lot to lease of that are like and potential A things expirings tied to

-- a expire know you So signed various points. a it's not leases of sort at as progression and there's are linear not

we store stores, opened open in opened Singapore. properties, we couple Shanghai in So of power the at a we up some big did jewel or

on is So again the sort opportunities remodels of opportunity size the a some improve. for refreshment and great the will big fleet of continue continuous to because us

Eric Johnson

Thank you very helpful.

Operator

Binetti with questions. is the Michael Suisse Credit from online

Michael Binetti

the want you for to mean you just buyback morning. the I earlier the the of to for the ask confusion year spending Good in buying around the a little wanted know same our lot but a and adds again Lauren, obviously back most year. share EPS had the the and do firepower I there's to Thanks -- guys for year guys. in, you I just question Hey question. taking I I'm dig want trying think not to

of thinking share like work the to So had the more extent you the and first you seems will knew in maybe earnings you your put I can have to buy it just been have quarter call to shares the timing -- seems like must explained little the there? the to bit discretion repurchase and it but restrictive tight. color it, just around opportunity that of I'm expenses add to you fairly also Analyst a that would've the Day think be to anyway of you

Lauren Peters

vary not I financial, which It's to it's we to don’t from time. color will parameters and is have it subject know opportunistic than time I an and program, legal formulaic described. various more add how strategic,

Michael Binetti

in somehow restrictions suppose. elevated first I quarter those Were

Lauren Peters

going not to I'm that. on elaborate

Michael Binetti

year to changes subject foot, I me hurdle metrics think had the the with that trying let is this two traditional comps, don't things year. sequential also the per I business, to we're mean we holiday we three the wrestling X you using year these store how what sales and year, like through are same to in very comp comps, Okay, sales, how good forecast -- think last and that plan together to have add, was when you than way think benefit the targets holiday we're the guys that how the against seeing to with a you long to know confidence deliver of restrictions year. that to I -- business some great I you downside. more in piece given I have But the your just merchandise you your last of have know really have wrestling upside forecasting covered guys enough we have. And guys is

and so I'm few you plan you look help wondering that quarter you this when us at you here on want think that one As to seeing a quarters anything know, over you you know us we in your the fashion think can like pin how get quarter, I'm year don't have comp to just help business help single discussion you lot that big a if a as our big like as like trying hurdles to this the for but volumes do to a get as models? on with that I big year anything, coming will fourth or we down into it we launch quarter be you could not think a maybe a about basis really see use can't I next

Richard Johnson

tried model than help comp to fill your that any live or build And in in we can't understands a of world. Michael in our I more the models your Well with. team blanks you we unfortunately

that product point our etc. your game to year gets that try team to generally after vendor get They their a that we is They with it last they work When last goes objective we do to through assortments. to year to work our launch and from how So and against and trump partners. hurdle. to to no did QX face over that. able our out get high we're see matter in deliver what work hill figure on through just dates over

we've and heat -- make our the about think the And and on we right are comp of talked the and quarter-to-quarter coming. that shared know We've point unfortunately line you I nature the We may for in for longer flow the do. a don't we all etcetera. with you be it delivering see I perspective. at as us the that And some the team your just retail. view term So that's model and of a launches mid against focused quarter-to-quarter on takes puts product maybe of some from investments not year much of live single-digit and is product look don't as

Michael Binetti

on I understand. for Thanks help that. the

Operator

like would remarks. closing call I to to Mr. turn back Lance the for

Jim Lance

join X which again place you today. next on release us morning. Friday, take at earnings and for anticipate will us thank Okay, AM Thanks results for joining earlier again of that August follow call quarter Please call The we XXrd. the our good-bye. second will

Richard Johnson

the Enjoy all. weekend long

Operator

and this you participating, Thank disconnect. conference. concludes for Thank may now you ladies you gentlemen, today's

Foot Locker (FL) 24 May 192019 Q1 Earnings call transcript