SCVL - Earnings call transcript Q3 2018

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Operator

Good afternoon and welcome to Shoe Carnival's Third Quarter Fiscal 2018 Earnings Conference Call. Today's call is being recorded. It is also being broadcast via webcast. Any reproduction or rebroadcast of any portion of this call is expressly prohibited. Management's remarks may contain forward-looking statements that involve a number of risk factors. cause those actual projected could materially to factors from different in risk the results company's be These such statements.

factors to be of in of The obligation filings those forward-looking should revisions or Carnival discussed in Sifford, risk today's not Mr. to release. reflect or date. any over on statements Cliff considered which the reliance President with today's I'll cautioned update conjunction to begin. today's Forward-looking may on undue to discussion Investors to you factors, statements are announce the including forward-looking call Sifford, any developments. and publicly to today's speak the release turn opening company or and SEC statements, conference risk disclaims place company's contained future Shoe any earnings Chief press for remarks. in the Mr. of of only now Executive as call events press Officer

Clifton Sifford

to quarter you Shoe Thank Carnival's call. welcome XXXX third and conference

Joining your I'll well questions. me take and fiscal today's sales operating as call On and Senior our Jackson, review the will overview Officer. Financial Chief more Kerry to call, Vice call highlights is President, Then XXXX in we'll a our Executive outlook. detail. third Operating brief results of financial quarter on updated Kerry discuss as provide today the results open up

resulted in last ended compared third shift as remember please year's one third -- one-week XXrd week this a that the quarter later First, XXXX our fiscal to week that and calendar. fiscal in of started quarter This year. XXXX the

XX-week if respective are comparisons all third Comparable XXXX, sales quarter-end seasonal are for a may of influences in be reminder, year-over-year a comparable the on As sales presented our quarter store basis. the days. near fiscal there impacted quarterly

to like operating our I'd review performance. Now,

We increase the very quarter. a sales X.X% store for to comparable pleased report are third

pleased major trends our strength Our was product non-athletic across This allows changing results core comp which store categories. in gains most in model, and and flex footwear the geographic all especially and to categories. non-athletic athletic of with growth for business the reflect I categories. regions the us to react the strong demonstrates quarter

As for month that selling period. comparable increased quarter last X.X% back-to-school store happy to to due key the month the you a is year. know, I'm for a increase on of August same the August report sales X% top

to both addition growth for strong in also positive October. September the we reported In achieved comparable store and August, sales

improved effectively calendar result last a shift. XX% in to was compared the results sales operating decrease XX which by when an a margin XX strengthening BD&O tax focus volume, inventory lower team the EPS customer Merchandise of to XX.X% year. produced resulted basis points, year These of XX% share, $X.XX percentage of with increase deleveraged we in expansion. for managing SG&A and by driven preference and our margins net a points on basis as per was Our XXX in a decrease of due margins diluted high expense, basis sales which up third drove quarter significant points margin categories. seasonal income, current combined

quarters the Traffic XX.X%, in income has basically EPS Through is XX.X%, increased last and was remind to EPS from which year. has the for on diluted stated year-to-date illustrate weeks year, quarter, to year. of XX% last to our year's third this way been most have been quarter there have accurate each have results we compared As third quarter our of is $X.XX flat. income per have three first a EPS generated translates increase that you week, high XXrd conference due we to what operating that last over into -- share. as shifted robust increased the I the during call This volume believe quarter-to-quarter. the

our average inventory units in earlier and quarter was Average low per per per-store both which end. inventory and Day However, our to management the on shift single-digits November. a were flat year single-digits transaction basis transaction moved focus to up up per-door drove effective Black X.X% remain fiscal up inventories points. Friday the than calendar, and down We on rate expect Veterans dollars be with ended basis conversion the XXX at due to by customer-centric focused last We low promotions year.

increased marketing the sales responded XXs. producing store up efforts by non-athletic Customers driven quarter, sandal on third on men's basis. mid-single-digits The boot a boot comparable assortment a department our our comparable the Focusing third non-athletic quarter sales store throughout and the by mid-single-digits, department, was quarter categories. comparable women's to and in women's increase

our on We increase and casual are were comp with category performance quarter. the the of comparable up mid-single-digits a for pleased men's boot the Children's in category men's also double-digit basis. the shoes

Boots and quarter sandals the the for double-digit. a athletic sales driven business, up the And comp was comparable and double-digit flat athletic quarter Our comp produced the for of was gain, in the drove categories. by on was low athletic for girl's quarter, were on athletic women's while single-digits mid-single-digits. while was non-athletic a side increases the both non-athletic. Adult mid-single-digit up up athletic also Men's basis. boys

both our men performance be happy footwear of women. category with and to continue for We running the

to minutes XXXX. this stores key Now, for few year. on fiscal initiatives began to a the like We to update our XX closing of possibility spend XXXX XX you I'd with

to job base. productive merchandising, the in terrific our operations, now many teams where marketing those of improving a and metrics Our have done estate, of more to real store are stores of contributors they

we excited With to all of closed of each store are celebration are We XX to XX XX and quarter. projected the new Puerto at We opening am stores the close end the XXX third three This Rico. from able to our fourth of experienced boost with particular quarter closures past results stores the ended quarter. XX. at now a in are we range the three openings. opened the stores planned in in I had states official of positive of number nine includes that the the total third we of grand and locations, in that improving weekend, five to the This about those metrics already

Our initiative. real be conservative I as continue of complete remains CRM our we strategy about the to implementation CRM our excited estate strategy.

again, We and experienced will who grow them. creating our results CRM is a to one-to-one expect store project is driving customer of have already almost touch in aspect some holistic company. will us multiyear key comparable element every out, and This instrumental base. program our and understanding store with relationship our to, wins as continue a it we in I quick this sales roll once allow be

to rewards high-value over upgrade of Carnival of I'm our we quarter. back-to-school. to which customers In are innovate. we approach part our stay the Shoe to customer the retail the must the customer was to relevant in program, future. have purchases. tier important in for CRM spending to We their of it's XXX,XXX changing is ever-evolving happy thrilled that incentivize Perks a not responded Carnival us double-digit welcome continuously prior new new loyalty just a take increase new within just I a relaunch a for Gold data order incredibly am growing and and Although all them footwear and driving large Shoe to we're the This member program with very offers to of store investments of choice the sales with allowed with loyalty. way runway engagement this comes the family status launched their holistic to our Perks us level landscape making Shoe members about the Shoe program, as and increase believe will improve give to next for member designed clear to consumer, the members and Shoe our This quarter. new The from Carnival in program, now make growth. technology

like give quarter. you XXXX. for throughout third on our to seasonal fiscal expectations financial I'm I'd categories with performance the an update happy Finally, of the very our

our continue also to at the Weather have the period. they the to athletic year department us our categories. and become positive perform. boots a athletic booties customer it the increase boots store depth Our value. trust these and kids periods customers believe of by shops winter at approximately on expect Based comparable does third We to quarter both we styles in volume in factor fiscal creates both are for key time excited right time The positively and X.X%. that because as compelling negatively, see our a athletic drove a a factors, storm and for high brands in weatherproof sales occurs during that of results we if need the us selection a to categories continue from sales and adult non-athletic

points In approximately on fiscal addition, year margin versus expect gross to basis a basis the GAAP year fiscal increase we for XXXX. XX

sales and the $X.XX Kerry. a we now over overview. previous earnings range $X.XX and guidance, to I of per range from to As a expectations are call $X.XX concludes a margin would my result of of $X.XX. to raising tightening this That to like share turn our to

Kerry Jackson

Thanks Cliff.

to million sales XXXX, included by beginning for the net ended Xth, since ended from we for Xrd, million for These Xrd, XX-week the to opened in The November of quarter ended a the a million of increase for stores of store sales sales offset compared third third compared and Our last beginning to in August decrease have XXXX. November an third last since net $X.X quarter XX-week XXXX, of was comparable the of third the decreased quarter the decrease X.X% XXth, due sales our were the primarily year. XX increased to store $X.X November partially year. $XX.X period XX million Comparable in stores the of decreases million the sales quarter the $XXX.X base stores ended loss closed period $XX XXXX.

one XX-week due this The have QX sales to our net year year week back-to-school compared fiscal shift we year, sales stores and million. QX by comparable in week week being in QX shift last this year. This for $XX.X compared this QX full The QX into calendar in last decreased an QX, in As moved this year. in year decrease was year. last year included year to net the previously are effect QX, of than a that QX important shift -- year last year discussed, later last to this accounts of

Our gross decrease increase year. compared by for point insurance basis was proceeds a XX.X% quarter million expense third million advertising existing profit closed merchandise our by in recent to XXX the net increase driven was the the offset hurricanes. a XX.X% partially primarily margin in margin, last compensation the of These This stores, quarter performance percentage in XX million $XX.X improved in a for decreases million. to in a in result $XXX,XXX in from was affected related million to a a sales. buying, expenses and due by increase of QX expense by occupancy and stores, $X.X The expenses offset SG&A as expenses as basis partially to incentive distribution, point decrease in decreased a increase of equity $X.X in were expense $X.X stores gain and financial decrease company. $X.X

As of of expenses SG&A percentage expense both to the expenses and of increased in result deleveraging these sales, The net shift a into QX. the advertising XX.X%. in X.X% sales QX in the were reduction

a QX for You to was The the XXXX third expense XX.X% the advertising for effective same rate tax fiscal may we year. compared $X.X year. reported of million this in recall, quarter XX.X% period increase income last in

be expect we approximately XXXX, of our tax year fiscal XX.X%. to rate full the For

or As reduced diluted earnings a XXXX our quarter share. to enacted, U.S. of Act corporate from fiscal XXXX, were Cuts was reminder, Tax XX% the tax Jobs $X.XX which approximately Net rate statutory for third million December and in per $XX XX%. the

the of of XXXX, reported For diluted third quarter net per we or earnings million $X.XX fiscal share. $XX.X

shares to affecting program, year, a our we In our of at stock turning million. under QX repurchase XXX,XXX common flow. share of cash total Now, cost this repurchased, information approximately $XX

we three million For this year, $XX a at X.X the of shares first million. quarters repurchased cost total

sales of My fourth Inclusive with anticipated final in of on at $XXX,XXX This million $XXX.X for fiscal updated for a approximately of $XXX sales in to year QX QX the our to year projected expectation little million sales shares the our expenditures year. million guidance million. a to quarter expense sales approximately fiscal was the for expense sales today to is $XX is be closed, comment about available We increase sales and a sales fiscal authorization. shares annual incentives now $XXX concludes expected in an due million more reduction during stores. QX for be Capital from range decrease XX.X our be full million. is is Depreciation actual less our expenditures one by the be will new Depreciation including relocations, The our from are quarter. than the $X.X be in currently any average XXXX, from projected under approximately for decline expected diluted million our guidance to compares shares. last guidance. $XX QX due stores This This stores, repurchases to offset partially this share weighted for repurchase $XX the Lease and year. million reduction of approximately that million third in year store review. are and increases an XXX,XXX from QX in outstanding to have $XX our comparable from remodels. to have have $XX used financial be estimated million. expect previous $X.X We sales our half annual new to not million sales expected and with sales week

up call I'd like for questions. Now, to open the

Operator

Thank first Mitch will you. come [Operator from question. with your Please Instructions] ahead Pivotal Kummetz with question go The Research.

Mitch Kummetz

Yes, overall maybe boot questions. elaborate just how sort could on however let me the in planned also quarter? fur you What the you my the hoping kind sub-segments? various else then classify the boots. I thanks boot versus the boots was in how weather comp curious, taking you the boots of booties begin of, quarter. quarter? versus have you I'm was for Cliff, kind of performed fourth And versus on performance Can say for

Clifton Sifford

season growth plan the double-digit -- the boots women's of in quarter. we for we boots the high But XXs, mid- had in singles. low mid-singles a increase to Well, for

want inclement boots of weather. weather that we kind really So, as sell the classify only really that. don't off down boots, I when category. snow very take what to to Mitch, weather get -- pleased that honest with you, have be can tell to I with only boots, would they you you

nature in So, like more hold was to casual it it really at that. boots and I'd

Mitch Kummetz

guide -- Got a Fair the way inventories? just just high your any on merch then, out of And kind shift the you it. how for for the cleaner versus curious to you margins the quarter. margin enough. is which And margin guys much boots, there overall what Is can into -- fourth what you of bps? the a kind XXX I'm was merch category break bps baked of Kerry, mix improvement, can XXX

Kerry Jackson

being We had for up our margin planned on in we the quarter. our overachieved the was Where merchandise expectations boot margin itself.

referring we that just in Cliff the increase comp that got the So boots that primary that was the improvement. to, of driver profit was gross

boots sold later getting than a the better fourth much if quarter. price selling October; him in you're in you You're

Clifton Sifford

if add women's in that, we had I'll boots. we in to not increase XXs the boots only Mitch, in in and I double-digit that have but boots, men's increases an can, kid's

very margin. high So,

overall the helped margin really up. drive that So,

Mitch Kummetz

Got last it. for And then maybe Kerry. question, a also

$X.X about million you be, comp in where know -- comp said how I little assume, how And down this sort in well of a given comp you year, XXXX? but it incentive early guys would up will will think for how was incentive year? up think much year-over-year. be talk the or that planning say, incentive sort of, are I fair you Can much of be it it's that, quarter, you it year-over-year the you XXXX, sort to is to outperforming

Kerry Jackson

because we stock a restrict your was, the have the the third I'll this highly third it -- originally going What quarter, way into the was year, much this larger catch first. came year, during start And had strong not with particularly performance-based that of so works anticipated. to play. we set have that number the likely. our performance to-date. quarter, did particularly now the you adjustment last of Yes, than quarter, restricted was What in and it, far we on accounting vest, think happened up to

getting $X so that So, the over million we total on, to was say. a little had $X million of adjustment $X,XXX turned a

was we a that for almost range in based outcomes. Another stock in outcomes of that performance up higher almost And range picked that. million are that was million worth since other $X of on expense the $X our of

quarter So, and by those was adjustment very the high -- fourth events. two

Mitch Kummetz

All Thanks guys. right. luck. Good Got it.

Operator

for next question. Wedbush. Please Svezia go with you your ahead question. will the Thank Chris question with from come The

Chris Svezia

Good quarter. and job. afternoon gentlemen the Nice congratulations on

Clifton Sifford

Thanks Chris.

Chris Svezia

Boots.

about -- XX% about to flex things. category? what from think mid-single-digits, do we Just me, two QX? Does the And into so business? to stronger What's XX%-ish quarter it any it remind Just percentage of your it fourth you of thoughts One, chase running up planned thereabouts; in that versus you're how in that. QX third quarter than so that. ability kind

Clifton Sifford

will total and women's boots women's. total the for be to total mid-XXs to It the

think I I'm that. right on

Kerry Jackson

boots. Total

Clifton Sifford

the boots Total Total in be mid-XXs. boots. will

Sorry. able the question, we to of your I the that in? into little got get a for is in to end of But that news But be now a first back at good year. of part are will the we there. back clean able boots. few all fiscal confused were the We get

Chris Svezia

Okay.

So, is is mid-XXs, say QX? it QX? when -- just in What that's you go for it back,

Kerry Jackson

is past gets athletics it's the and in This It just the of third year of quarter much about back-to-school. total. around under -- the X% diluted the because right

Chris Svezia

comp what know through was. Okay, came the We September was were? as progression you okay. what it. Got quarter? What tell you and But August the October can

Kerry Jackson

were They single-digits. low up

Chris Svezia

November, you're Okay. And against remind what December, up last us January, did? going you into year, again, QX, what

Kerry Jackson

points. For the quarter, X.X we were down

Clifton Sifford

Chris, up We took of of quarter. last Day, a big back closed most quarter. year, our remember, that which number the we you out during made Thanksgiving If on fourth

not decided to X.X% one down that open. misleading that because little a is of the we So, day the --

Chris Svezia

Okay.

a not correct? up open, November bit made to you December/January, then and you down it decided So, quite last because was year

Kerry Jackson

low were December, It we directionally, were and a overstatement. may flat in correct. up down you're Quite ultimately we was But singles and then an bit be in January.

Chris Svezia

Thanksgiving, Okay. closed you're year, so you're And comping comp, right? this on the

Clifton Sifford

that. hear didn't We sorry. I'm

Chris Svezia

I comping Thanksgiving, that? closed said, this so you're on year, you're

Clifton Sifford

is correct. That

Chris Svezia

got Okay, it.

Okay.

the basis how know, points. some of deleverage, takes? going closing And How on for do you on. annual, Just for XX margin, store cost, between do you, up I puts costs -- the about occupancy just you've gave QX, the got Kerry, I liquidations Cliff, we QX merchandise we margin, and think just about think just think, and

for line those SG&A items, lot we of any Just how think a parts. color moving margin, Maybe two gross about about QX?

Kerry Jackson

Well, for year-over-year the is be margin our remember, basis on at a settlement insurance reason last on a And the expect million $X.X standpoint, you on the the from high in loss. primary the guidance the in hurricane -- we to down it merchandise the because, end. Rico year gain fourth we quarter, Puerto booked if inventory

it'll GAAP be down. on So, a basis,

We expect--

Chris Svezia

On a expect do it basis? non-GAAP. Because you up think it a are -- on us non-GAAP looking to be basis most at I non-GAAP of as

Kerry Jackson

If non-GAAP. such discussed there's put the rules reports. surrounding GAAP a Chris, I say, giving we're we'd number. I'd that, to strict out you have of additional bogey

our why last So, will that help adjusted year QX back against refer you don't discern an release number. to you

Chris Svezia

SG&A? Okay. And on

Kerry Jackson

down. be slightly expect flat [Indiscernible] to we relative standpoint, to

Chris Svezia

And SG&A?

Kerry Jackson

should some leverage see We on that.

laws, Here an some $X.X again, also million. I the had -- believe, in distorted we tax equity about GAAP of of, million. change charge of about the number year a $X because compensation accelerate of to because had last the was we And impairment

Chris Svezia

Okay.

real for thing, me. final So, quick just

payrolls, the purchasing? does, how and might Just think consumer macro think you maybe, any about that into unemployment, minimum how is playing consumer play consumer you et into of consumer your given your demographic, be when your some cetera? thoughts wage, about how sentiment, that, backdrop Just

Clifton Sifford

the our Tax mean, a effect, the go pretty can weeks that. it And to do believe our all first is paycheck, would've I We with -- we Chris, off. began when have we lot year. has as much good Tax Cuts almost pretty which been Cuts two took been has, when it's after we to business been take back you -- this see to witnessed,

Chris Svezia

Congrats talk and to we'll Okay. soon. All you best. the

Clifton Sifford

Chris. you, Thank

Operator

go our Sidoti. Instructions] take Please Thank question you. ahead. We'll [Operator Pendy from Greg next with

Greg Pendy

it's Hi, my for Pendy at Greg question. taking Sidoti. Thanks

end. year to wanted Just the the at guidance on guess, inventory understand, I

per with mean if said Your Is was mainly last there single-digits. -- this just any is less know, anything you you seasonal wanted Is closures? we year? at to Or there I up think, I you're understand something there parts store now. moving low X.X% store product, should year that end?

Clifton Sifford

the presidents, week, Thursday. The shift presidents X.X% the think moved Xst I Thanksgiving week. the can't a happened this a time because of of Veterans is on the full of be but to is a in it's never because in calendar Day misleading not up and month been With -- -- early

as early can it it's get. as So,

prior to us come product November to to floor sell. order available it that in to to have in So, on had the for and

end year hung at continue The most One up the end is in So, we our on at reduce levels of inventories really our the the in I inventory decrease too to order inventory is wouldn't get October. turn per-store to likely of threefold. in maximize the stores.

as You overall can maximize seasonal goal. out your margin, raise can we we of less turn, boots most second in actually, and over-performing the is But to seasonal and is fact inventory due will in that come your the in January that over-performing are the you categories. have that we that

less last year And year. than a as So, little seasonal this later is it out we walk of have to January. was third, product on Easter we the expect floor

don't January time floor you Easter. for on have Easter have to to So, in, in bring it the as product in much

Greg Pendy

closings that's And store better this been, net looks attractive seeing leases, you're just about operating one. This the talking more final or it you've year. just is, for I also one again Now, closing helpful. your performance. your trimmed -- know then past, looking you but in like

purely Or you this a opportunities and it what's can kind it well lease down? as of operational? are us of or more is attractive on So, finding the kind you give bringing puts takes combination? Is

Clifton Sifford

to this better three, in to opinion, with number because -- we are today tax it deals and landlords. business one. we And some one, job the say number who my of stores, done, we I've better, they our all our that how were Number negotiate in shop we've actually, cut marketing two, that's combination all much of We ago CRM a get helped they program or the some customer a year a marketing It's stores. ago how our about, sales and with more understand -- That's the able better above. got customer and lifted number two learning year best things them. did and through customer years we're is to ways, talk than who to four our segments our better to in

been very very helpful. that's rate So, And focused conversion sure our to lastly, as -- our been that continues stores have rise. making on very, focused

for the In and I merchandise, quarter, XXX falls our on our operators. -- falls -- is basis rate points, conversion fact, think on that on that third two was store up that falls which

Greg Pendy

That's a helpful. lot. Thanks

Clifton Sifford

Thank you.

Operator

you. Sam with go Susquehanna. Please question from Thank ahead. Poser comes The next

Sam Poser

then Thanks not got in a the going more about, you Why we one. September/October us us to comp afternoon. so on can I've Number Good give Just We're -- can my one, for re-ask three? few. taking I'm give gave close? questions. greedy. details question you us the all

Clifton Sifford

gave back-to-school. you important We you We overall month is year. a an our August month. such it's to because gave key That

So, have we really give I any-- don't that.

Kerry Jackson

were single-digits. September/October low

Sam Poser

Hello?

Clifton Sifford

-- September that. and Yes, answered Kerry October. the

Sam Poser

Okay.

Or is this now? is the basis. of the sort a last at single-digit one comparisons on look the we restricted two-year seasonal the comp. by, availability trend? and comp a better, fourth product given implication quarter, The wouldn't the year are of, when low both Why your at So, a easier for be year

Clifton Sifford

Sam. conservative be. want it's moving make the we we is a going because sure that to quarter. is know could snow Christmas cold One you guidance we're what front quarter, of again, to our twofold. front sales weather in And the the -- week the cold Well, A through early in remain destroy that -- don't

not -- it. in to going goes. sales -- So, guidance destroy we're But hurt well, see remain It quarter. and it the conservative could how we'll our I'm

good leading concerned, far mind question are going we're product I shape As January. There's into my as believe about into that. going is Christmas. we in in seasonal to short be the no

Sam Poser

-- then to Thank look stores? we the When on you've those from year, and a store a -- underperforming you are how beyond you starting at closing -- lowered of work were CRM more your you. help that's store And and the do this about up store lastly, and around going so -- your we think some done we closings. with Are turn conservative perspective, you've when look given which forward, those opening closing? to looking more beyond businesses start

Clifton Sifford

We the are we about -- those. it close today. in somewhere think that to talk now, reason right on continuing we're low- -- the That's still didn't I work we We're the stores mid-teens. call to will on

We have can hope we number. that lower that

at So, we'll be to -- there's, launched and find will is of live, point team We're a Number our to in we for one. understanding as where first CRM get we estate there this and that to XXXX. at who call. no great sites. our real as number our get little more sending we customer out scheduled two, have forthcoming be our on a our quarter and initiative once XXXX we they toward time, point, that fourth looking That's are new stores

Sam Poser

you Thank success. to and right. All continue much very

Clifton Sifford

Thanks. All right.

Kerry Jackson

Thanks Sam.

Operator

The Mitch come you. Please question from with Kummetz next Thank will go Pivotal ahead. Research.

Mitch Kummetz

a of had couple just quick I follow-ups. Yes,

You -- about that? I on when you promotion something quarter And timing to ahead. go closed. given Black think elaborate from of guys said QX, just just I'm -- you Could Friday shifting sorry, the the QX

Clifton Sifford

key you was talk week about said of was that's November. This and third the week I inventory when it's last year, fourth November What no. Black of year, the No, levels. Friday that

Mitch Kummetz

Got Kerry, you stores, seemed I -- in on the the And to the then quarter. it, guys early It there QX. was think yes, benefit the on in you impact be million okay. $X.X for of a doing Black promotions Friday closing said

also you As the in also year, liquidating. have that from side, you're then stores QX, from on imagine I last guess, you're that going would closed to we the see negative benefit stores you think a would margin QX about some the but gross I

it. at know out? do things think those of a of look we that's how I So, balancing if to don't sort way

Kerry Jackson

we referencing it I Well, quarter because this because $X.X sale margin. what also -- a SG&A when a last liquidate closing don't Typically, -- is we in quarter the when we you're closed third year look we're it the closes. the especially lost quarter hit at particularly year-over-year was stores, versus on the million quarter also basis, lost of the [Indiscernible] that the stores. our as take and have inventory, in we to

you bit of the a on benefit, would rebound. year So, next see a little

just close range in XX year. However, we're for mentioned Cliff next generally to going be this year. stores that going projected to -- we we're to

might the on year-over-year same amount So, closing about a costs. store assume basis, of you

Mitch Kummetz

speak it can Okay. I from one last maybe consensus. over-deliver came earnings that. this much But to the the or you from to obviously, it in on don't what especially quarter. guys of how at I end. one. I mean, just EBITDA know in I terms earnings did an did guys, relative of if And comp to you you you the of similar in kind or? than either better guys relative quarter, don't gave plan? mean, sort on to you you an your I over-delivered earnings really side you mean, was think standpoint, the of guess, target internal then, on the consensus curious, beat I an kind high come I'm standpoint thought, But

Kerry Jackson

QX Well, the beat we-- what about you're talking against

Mitch Kummetz

Yes.

Kerry Jackson

the we previously we about of $X biggest guidance guidance what over factors topline. guided Generally, improvement margin there. overachieved we on had out we -- had million previous were And our points the XX some overachieved We basis almost two to. had

not a the be came SG&A And contemplated the quarter a gain booked We little were to more we insurance what we had through also lower -- our that that probably expecting. part. been was to than in related

Mitch Kummetz

Got it, right. Thanks all again.

Clifton Sifford

you. Thank

Operator

you question. the Thank for

Please question. Chris your a have follow-up We ahead with with Svezia Wedbush. question go from

Chris Svezia

taking for thanks Yes, my follow-up.

weather. I quarter. of back in just third want up negative, So year I what just, be gave I kind to, to with the the go to given October think, singles, the low uncertainty last and you guidance, happened you the expected September comp think When

So, obviously, Is driving it the correct? comp. was the in October to seems factor the that big upside like,

Kerry Jackson

Yes.

had. guidance our from So, that guidance biggest was the change overachievement -- our from we

Clifton Sifford

Chris. performance, boots all was And the that based on

Chris Svezia

Right.

-- -- any I so boot know by you, curious the short I as negative? your inventory might sure, of any think month just think don't to you would wouldn't comp observation, any reason January. to know month at you thoughts be we about anyway. you for But I'm I'm to Any transitioning as want think throughout -- some Okay. monthly reason about, don't be I QX, comp kind [Indiscernible] want then, what's But you out positive? comp any look

Clifton Sifford

the any comp comp January No, due on as we be to -- we We expect to expect be not comp to fact January month lower that the boots. we're be don't planning we will -- lowest don't positive. to

Chris Svezia

front? learning? I'm about got Okay, do what you're update done do that be to on it. expect When completed? an we general. on When that Just you And then in When just curious more CRM activity. the get is of

Clifton Sifford

Well, the drive be the will least this implemented. is XXXX it's of at of mid-year implementation software to before fully that going

that and program. understand to year going will hopefully, But period. two-year something for believe and us comp long, have to one We for it's a we Because that is important wins to from time. a Chris, to expect what company the next throughout -- long continue to our not standpoint. evolve that do this be a is it's going that This store it's a growth or over to time transformational

Chris Svezia

stores, low we that? lastly, as to is more specifically what's does think stores, about close more closing, start I think reason just, just stores? existing transfer you're any question would And when then, that revenue as you. guess some you sales next base have, I about you going on becoming color Any and growth, my to transfer opening about is revenues to Thank we you're not year, assuming those mean the but have grow? I If single-digit stores. sales. you should productive not think obviously, comp, with

Just any that? thoughts about

Clifton Sifford

-- We revenue to do give growth. you not expect XXXX growth. XXXX yet are at do a our We're we point, we but expect the prepared expectations -- revenue this

Kerry Jackson

give position you Typically, -- stores with, that not try we're breathing not question other. to place comp had. room they're the so cannibalizing we in the them when put Chris, on to each enough we begin

you not, would enough needle sales that the see stores, might what significant we not store, that other it when of to through we're more So, or flow that movement overall reporting not numbers. drive happens our be than we'd seeing often close in

Chris Svezia

Interesting.

Thank all guys. right. very you I much That's Appreciate it. have. all Okay,

Clifton Sifford

Chris. Thanks

Operator

come The you. from Susquehanna. Thank Sam question next will with Poser

Sam Poser

in today. onetime -- that getting event was all twice We're -- a that was it? The insurance how much SG&A? And

Kerry Jackson

was It that particular episode. $XXX,XXX one-time in QX. It's at a occurrence

last it We up and QX inventory out piece fixed this Puerto claim closed for it portion year last year. out that of year. that So, then the asset the closing the in we finished was Rico primarily the of occurred hurricane

Sam Poser

that insurance this was for have this did it? But year you or [Indiscernible]

Kerry Jackson

different was of key have This two assets, and at they pieces inventory close Typically, out and it. times. fixed you it,

Sam Poser

to from anticipate So, we be benefit wouldn't I clear? that just year a now, mean

Kerry Jackson

for Not no. hurricane, particular that

Sam Poser

charges And have are -- recurring -- those of you other or other are about? -- happening there worth talking other kind events do from

Kerry Jackson

we've three No, so but be, Rico the seemed for -- past now hurricanes hurricane Coast. we on hit Puerto isolated several And and saw Gulf years, to had events we then have that right the hurricane not we're that seen -- one these to working Houston. insurance on claims

Sam Poser

the what Our the magnitude you of Puerto lastly, of then well be -- what is of And right as any to of Rico status the -- as, expect Puerto those Rico? now? stores do any

Kerry Jackson

and No. nine-store a -- lost was No one Rico event. And Puerto we stores. those inventory all

repeat had. -- So, to And never claim we the that company was that. hope the ever a largest had

anything [ph] see was there to that magnitude we So, expect that of again.

Sam Poser

those the stores are -- Puerto are now? this Puerto How right then stores, opened? many Rico are And open -- there Rico in

Kerry Jackson

out rebuild the of had last landlord lease them will settled the other have in two out did we nine Yes. lease. quarter the the -- settled and not We event fourth year stores The not Three Six those stores, reopen. one we the reopened. of center.

So, that. were those leases due canceled to

Sam Poser

much. Thank very you

Clifton Sifford

Thank you.

Operator

I'll Thank call you. over Sifford. to turn Q&A back This Mr. now the concludes the portion.

Clifton Sifford

we to Also, want year you our and full and send that, I fourth very a on want want opportunity back the season. of thank our results holiday operator. in happy announcing to March. I a Thanksgiving to call, to saying to great -- the thank look quarter forward just call With this to wish each

Operator

Ladies concludes this you. event. today's and Thank gentlemen,

disconnect now lines. your may great evening. a You Have

Shoe Carnival (SCVL) 15 Nov 182018 Q3 Earnings call transcript