SCVL - Earnings call transcript Q1 2022

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Operator

Good morning and welcome to Shoe Carnival’s First Quarter 2022 Earnings Conference Call. Today’s conference 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 announce the also conference update Shoe factors only forward-looking today's disclaims or company's Mr. remarks. reliance on should release risk publicly turn discussion statements over Mr. as discussed are cautioned earnings or may contained of statements be forward-looking you any place conjunction press Investors obligation the in Worden, any Forward-looking the to undue revisions to to now with press to events Mark or of release. any risk today's I for future company on filings statements included call date. SEC to begin. the of Worden, Carnival these of The not in to opening and today's considered will conference CEO developments. President the which today's reflect in and speak

Mark J. Worden

to quarter and morning XXXX Carnival's call. welcome Good conference earnings Shoe first

me Kerry I'm call a QX Financial XXXX. normal our that shopping Chief is return more customers of Jackson, today's to share Officer. pattern encouraged Administrative during and Joining on to

and pandemic quarter the closely behavior XXXX before of the trends resembled category began. However, customer first

from insights pandemic Importantly, stimulus without closures customers the the in during distributions without into massive XXXX. during gained this the quarter would we store valuable retail government our how shop -- XXXX and

throughout we emerge my As learnings pandemic such it as Carnival. Three the XXXX quarterly the comparing Shoe speech and began. QX be for normalized most since benchmark I'll versus results as see relevant key

pandemic to to model is double generation strategy compared First, the the levels before worked. profit have our our

a advance to customer growth loyalty acquisition share enhancements become continues from our to dollar and Second, retailer. new plans multibillion market

first achieving fifth of net a are highly double-digit the QX pre-pandemic sales return growth XXX% were specifically, $X.XX XXXX. to Results per exceeded strong by thrilled and XX.X%. at power surpassed results over demonstrating income sandals sales growing XXXX. by dress, share customers which the categories were growth profit customer achieved. of loyal XX trends. and and of is from for expectations. engaged I'm highlights Earnings that quarter over QX XX% XX% This XXXX XXXX. share driven More lifestyles Third, marks product significantly the million and consecutive we casual, the from end the versus of XXXX the with growth versus staying to of operating last year Further quarter the XX% over of up customers

the growth in distributed During to consumer XXX% Shoe billion prior versus contributing year. quarter government the over XXXX, $XXX of stimulus Carnival’s first of over the

EPS As annual guidance, planned our and sales the XXXX included prior were than QX year. in lower

planned QX our reinforces in over the However, EPS delivery for of our year. remainder the versus confidence

are achieve of of annual the reiterating we year. start result sales X% of a to X% today net XX% sales growth last strong to guidance the growth As our on top achieved

with chain equity headwinds for team strengthen ultimately inventory the our supply raising delivery EPS yet acquisition a Combined ensure XX% We are excellence. $X.XX. throughout generates range to $X.XX our the XX% navigate a our to we quarter, merchants Additionally against and of to solid inflationary faced shareholders. and return with beginning to continued customer vendors on our partnered strategic complexities our seasoned expectations. We guidance our between this and

between growth team and athletic categories. XXXX stores and categories trends in the reemerge non-athletic dress, seasonal historic capture to rapid non-athletic the a consumer casual set and seeing position year have in Our up last as to bought categories. these started We products, inventory more for growth return well been to splits

split category with happen of mix for approximately This athletics basis the our athletic total shift to non-athletics back saw that approximately our corporation. non-athletic. normal point we XXX shift XX:XX QX returns During an back and from to

model Despite our like years. the challenges transit XXXX. last supply past they Our did is XX% door three globally over chain Shoe significant inventory balanced per versus approximately the customer at business of Carnival’s goods ports, the versus up as rapidly and year-end dependent to the backup

back We are organization. the levels. to school with through profits chain enthusiasm positioned discuss inventory season to further inventory supply grow will sales shortly. and Overall win permeates Kerry the these and rapidly positions the to

executing store brief core provide one, update now We which priorities are our modern shopping a delivering the experience. on. fleet I will Number consistently and strategic most

underway store program we've has fleet generated be Our well accelerated earlier the been the by modernization complete fiscal of shopping faster. will investments ensures retailer has design, year summer enhanced complete XX% and XXXX. response. by end fleet exceptional constantly we the of will plan completed to completed, be the and Today, full plan over processes. our of mindset the XX% first our modernization and fleet total the XXXX, new customer I design reimagine store bricks service The and is experience, experience customer shopping shared this

destinations. brands family. in Some of of the a open, easy large, with shop brand of is provide customers the shops create experiences sought design which in the to example a most this distinct for An environment shop present our is new and the advantages major to after nation's entire athletic athletic shop shop

the up seasonal currently. Another that casual example sandals pop is brands are hottest shops on focused and our

profitable rapidly priority a in with our of profitable, personalized digital we structurally gross our of team and The XX% is Understanding digital customer those it the advanced and the top highly accelerating our We margin that XXX new a versus how and store to customers that capabilities first them Combined QX points historically. We scale, Investors the basis generated brands in has our leading multiyear sales per our footwear with. well highest partners. and EPS to foot for last strategic our in profit made creates conjunction have profit XXXX a time reach technology double-digit, two, is the $XXX approach. margin this to not model marketing. This now increased to and investment also strategic underperforming during pit comparable digital characteristics full All completed elements million this driver by engage cash promotional pre-pandemic. customers communicate results pinpoint customer surpassed operating growth more level plan to store product, positioned This to this core in best to three, market latest real the Number year CRM is new to to our that vendor past is operating levels growth productivity were year. cash contribution past our with and effectively than year. productivity. growth. analytics into the twice compared flow core over to stores The that we design Number works in the levels square strong XX-months XX Carnival across capabilities allows range. one our transformed all and elevated can season delivering from over next, us our shifted space suite historically strategic hottest accelerate last effectively and plan future previous positive eliminated as model. first flow generated new improvement Shoe This $XXX upward with sustainable Our income estate. the effectively stores heart. base the turn $XXX expanded to desirable loyal

we scale. structurally The over stores have all deliver rapidly positive This and per than guidance expanding trailing flow continue and top a cash generated we doubled productivity. Strategy $XXX on Based profit tier per cash existing we to square comparable fiscal program generation and XX-month on highly four, is quarter number strong our a expect to progressing with foot modernization basis. end earnings productive. flow our contribution share. quickly, ongoing The XXXX is fleet more

now rapidly expand profitably. are to We positioned scale our

XXXX, South. leading retailer of December completed During acquisition Shoe the Station, of the we in footwear a

expand The store growth across added counts second a Southern the banner markets. to platform

phase completed and our the analytics, smoothly store first Station this acquisition and We out opened quarter building since XXXX, integration during the have plans. our past our the Shoe sales CRM, advanced have exceeded of far We capabilities. marketing acquisition banners, and the

Shoe and year. of ahead platforms on stores customer’s our holiday Another new support track and more plan following of live heels. new go to on leases the completion, have near dotcom this shopping executed stores and The are are CRM Station handful Station or many Shoe

over We next two opened it double share also growth company XXX XXX banners the banner track both the our store store fleet for during three sales to store counts to closing, into the new West years Shoe plans a and Virginia on growth XXXX. footprint and we stores had in Shoe potential store fiscal and year during and years. We this are tremendous runway customer and Station The bullish and a market Carnival the I'm and moving mode XXXX. in The account banners. an further sales also in fiscal for ahead. fiscal in on at expanding reach exceeded long QX, see will accelerated growth total In response. Morgantown, stores is our is expansion for sales banner

Kerry, like customer's a successes to position well season, our athletic, to vendor our would for the partners season upcoming balance I in, categories. for nearly and over customers, return in school will Kerry? back sandal are normal to contributing members, and for up spring inventory and is to Our the then thank for open is your we XX:XX a non-athletic big many we our now positioned ready X,XXX team between now ready the that to to call turn more I'd like QX. questions. for

W. Kerry Jackson

a our remarks, changes first highest demonstrate continue history. quarter of excited I'm first the my from sales our doing also Net sustainability Thank will our setting compare I profile. QX with profitability appropriate. in in will quarter results our the to you, financial Mark. record successful we were quarter I last results you This highlights structural is and will year first XXXX, very sales In the to quarter weave quarter comparisons some XXX.X but to in in million. in share help second where with first first so

and other XX.X%. up sales brick our comparable were quarter Breaking of mortar results more of increased X.X% performance, against this by strength the and up year's to more record were XXXX, first and down further, total of the comparable An last sales QX beating store the highest sales the typical QX XX%. XXX.X%. Excluding were than XX.X% up e-commerce indicator QX store this quarter was sales any

QX to mentioned QX last sales down XXX.X% year. comparable XX.X%. in comparable sales a our year's and were last Mark store against results increase annual compared XXX.X% store we earlier, X.X% QX total sales QX, enhanced were when declined of Against planned stimulus increase year. These guidance on As sales lower last sales a net and of

basis occupancy XXX sales additional increased first in partially XX XXX the points and in basis and sales. increase of our XX.X%. incurred we merchandise percentage these year, out, a in by the increased occupancy points. Our offset supply have basis margin increase transportation QX quarterly [ph] last a buying, basis increased our QX This margin issues basis current point would excluding XXX higher margin by in cost, to like merchandise basis increase QX. of our EPS chain points XXX Due basis $X.XX. points. XXXX. highest margin fuel profit a our by costs global as quarter, This fuel over in margin a basis reduced gross costs distribution, our the by point by significantly inflation, distribution decreased second expense point the points to QX and Furthermore, expense QX and buying, costs, history driven I'd points XXX decreased and merchandise margin, XXX distribution, was which this and was was in transitory our merchandise Against XXX and as percentage year's in was unusual

the in wages partially place. with we in was incentive the incur investment of only run income first partly QX to XXXX in by feel the of which per year-over-year operating lower in second annual was surpassed line double-digit in again, and XX.X% double operating moderate mitigations driven XX.X% this SG&A have rate. advertising expectations margins, was we million of year of against our our in EPS the compensation more of QX QX increased increase year. $X.XX QX earnings put expense SG&A than offset of increase primarily store due by QX million diluted was $XX.X While are fuel translation or will the last sales. expense. for sales. QX historical highest expect in The through to is costs or income last Once and we $XX.X beyond, is remainder share. or higher diluted $XX.X level million year, Net by quarter This

out QX the accelerated help the highest a store to of remaining was position transformation to chain put annual receipt themselves and addition to stores receipts XX.X% of million which on Spring Shoe merchandise further context in up our us is quarter of the be put should or closed prior the with increase back-to-school. XX% acceleration Approximately earnings supply earnings Station our us XX-year for a the the The in with to the of protect would delays. by increase in our million, for profitability, $XXX inventory due of $XX.X history. the merchandise to this well per However, of against of in due solid position fourth We basis. store inventory compared year has

total At outlined liquidity cash end million and and equivalents, of had to marketable our securities have we growth no Mark debt. earlier. initiatives to the of QX, continue outstanding $XX.X We cash, fund ample

we $XX.X QX ahead the cost of higher costs, have on million our raising results, previous We shares are results of from our guidance currently diluted to growth expectations fiscal in announced we for In to quarter, of our sales of $X.XX and and repurchase continuation XXX,XXX elevated our financial expectations $X.XX. levels. sales XXXX a from of remaining morning, the $X.XX line $X.XX significantly diluted our are profit we share to X% $XX.X guidance During pre-pandemic approximately at chain EPS supply repurchased reiterating stock program. this which despite $XX X% With closing, EPS to our million. million of

financial expansion levels We earnings This have before we modernization on the ever are strategy store and confidence other. and our financially than execute on hand the sustainability better strategy, growth our elevated in combines on a the positioned one selective to concludes which and acquisition review. organic

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

Operator

Instructions]. [Operator

today Mitch Kummetz is question with Research. from first Our Seaport

line Your is open.

Mitchel Kummetz

thank you. maybe I've Yeah, got of a questions. handful

you fuel start, you could about talked transportation the higher Kerry, So costs.

quarter. the I it's -- think point up the XXX add a BDO, if basis about margin and merch I on like hit

to or then that quarter And Can that do then in like, for some bit that second on a that, the You maybe you strategies that you to little got strategies. other mentioned moderate is expect questions. you're that and the just about what I've maybe down? some through the elaborate talk you mitigation employing think bring year

W. Kerry Jackson

control do a it will going little into not unknown because we're that fuel Mitch, cost specifically Well to the expect on the that. get expect looking bit of because so see. it's we can't we to see we same, still not much to Diesel be about out,

However, on congestion. transport -- of availability of a of out what of because a congestion little ports bit. to shortage side, That the clearing was we the the kind is is saw out transportation goods

of because those transportation was the that we're that to be working costs. So as more to to be rates on that's and QX in we're -- seeing on would think What see not we That's in QX as costs aggressively we the that BD&O along, to we extent favorable us. lower both that -- we're going why is a and did to would that deleverage those year high that We improve QX. in going goes able think quite for watermark. beyond

Mitchel Kummetz

was sales Okay. quarter have Shoe it? perspective a the EBIT if from the maybe Station you and in What contribution

W. Kerry Jackson

-- of shoe customer one the because as Shoe a not two look enterprise, break look based. our call to It's separate We Station pieces a one we're at at store base, we as between banner out similar it it similar we the growth. going

company. going one it's So to be

Mitchel Kummetz

about kind down like I of a full out I prior so then the basis, does that your year-over-year kind break versus how And traffic playing of was think how on curious sort ticket, comparable the balance year? think of the year of for on XX/X, maybe sales, think Okay. outlook out store I'm flattish, that you

Mark J. Worden

Hi Mitch, morning. it's Mark. Good

this and the X% see that stated, and we're sales the major to headwinds, growing us QX growth X% year. Kerry now the for for the grow importantly, starting of As year. the continuing the rest in that stimulus sequential And off we're a in quarter in guidance, quarters range our to mode past we confident

line the In traffic diagnostics, expectations. in of with terms has been

less this where saw down the higher lower ticket billion the of but would mid-March inflation of stimulus conversion the purchases high $XXX discretionary landed driven funds the slow quarter we purchases consumers from quarter. due conversion we which QX, or to made didn't say last category end had this year, available that make the ability During with very rates slowed was That it year. down in traffic, the the highs but primarily to their to record last year. We're conversion multiple pleased and

Mitchel Kummetz

Okay. so year first of the sales, The And was three-year quarter. maybe to acceleration in you into run were the in on Mark, would then of when have the due be quarter the inventory where on a you position -- three-year are that sales kind mid-XXs, other of also I are a I today the confidence kind there in sales rate of QX implies which an better an three-year what to that to growth the to you expect growth rate? accelerate sales things Is you the largely your basis, of were contributing XX%. versus going at on are that acceleration kind the what from of kind or that guide you is look point, guess up in the

Mark J. Worden

for go just and the versus… again the multiple factors. comp The largest It's stimulus to is QX had we against

Mitchel Kummetz

basis. I'm about it a on talking three-year

Mark J. Worden

get part consumer were now with digesting. very available We're did get of compared consumer accelerated into pleased that said, line headwind. not to was inflation, Yes. anomaly three a trends significant QX, to very weeks ago. have inflationary to and already a able stage We're XXXX, seeing since captured the deliver guidance. X% share X% QX early we're consumers with three-year truly seeing we in the the into seeing with think, shocks, encouraged more basis, growth few the a growth normal more your the the quarter first or QX. the QX I this are to of challenging being the first normalized weeks growth in funds the mitigate early The seeing and in We're was them discretionary On of in state an with question. these in and years a as and XXXX I

Mitchel Kummetz

That's Got lastly, it performed just sandals, sounds I and guess, encouraged curious it. helpful. then just I'm sandals on the in And about like how kind of you're quarter. they

necessarily that thank maybe weather I subsequent the little quarter. then has Could of quarter the of weren't talk probably about I'm inventories And to ideal, wasn't sandals you. that? you just a for think your good, end lot in the the ideal and bit improved a

Mark J. Worden

Carl elaborate Sure. Thanks, to going I'm Carl. Chief one. on Mitch. Scibetta, to Officer, that ask Merchandising our

Carl N. Scibetta

Hi how Mitch, are you doing.

very as hit in first second quarter our seasonal positioned we categories. the acceptance customers' the in late part Northern warm May, country. and to the weeks unseasonably increase Sandals quarter especially started in the a seeing strong was of of inventory as offerings, Late, from northern started the of standpoint. And an weather look first weather very, the right. two we're -- first a performance weather in significant quarter cool has sandal We're to have to the well You're we slow, middle saw strong. changing sandal

Mitchel Kummetz

thanks the color. Great, guys. Appreciate alright all

Operator

Our next Sam is with Williams question Trading. from Poser

Your line is open.

Samuel Poser

little But have mentioned a good same-day everybody. you you had wondered, brought do have including morning some a these give quarter I could to if fourth of get I'll us DoorDash that have, call improved just I you questions. the few One, on second. stuff on you some a update of on the you your initiatives in Mark, customer-facing to that one? delivery good with Hi, that.

Mark J. Worden

last today. Good and platform, We're more building that excited our omnichannel, the as to gone is with morning shopping us quarter. leading them. back-end new and our make including be to force going systems has the easier throughout platform joining well allow upgrading as just this work We're for to We faster live our couldn't with in Sam. cost us effective experience our sales in pleased entire for to is doing Thanks the enhanced team very system do. what

pleased the very and Additionally, days on specifics, delivery same-day we're early of our with partnerships. services

it of the whatever easiest of and we them. gives that Most come customers to shoppers, for still are more option Our store them find, opportunity most and are as well. Shoe love taking but it the advantage is many -- Carnival into this taking in want store, one experience

capabilities. pleased we're very So the with

Samuel Poser

historically given us you've And the kids, and category Thanks. men's. breakdown athletic, then, adult by women's,

a wonder that I us versus data both could Now year and versus on last XXXX? provide if you

Carl N. Scibetta

continue accelerate. we remarks, Carl. it's Sam, to Hi Versus XXXX, earlier non-athletic in said like the the categories

range, and So XXs was and up mid-XXs. XXXX. versus low the dress athletic very in continue XX:XX was stimulus that and non-athletic to back us the ago, down Kids in the to non-athletic women's breakdown non-athletic a in non-athletic. slightly categories brought sport. outperform Versus XXXX the versus was of the singles our up Men's driven athletic year the really has by money XX% up categories from athletics XXXX, were versus in

Samuel Poser

for you us Can last did as you year gave just what you some for XXXX? and give specifics

Carl N. Scibetta

non-athletic pre-pandemic up total was down takes sort up high business. us at actually was singles, low down children's me right was The back our and adult teens, women's let of athletic to was in athletic that. yes, And men's adult non-athletic breakdown mid-singles, -- Sure, that of -- children's the pull was XX%.

Samuel Poser

late, because late, And late you're how what so just of and wondering just with thinking the was last seeing balance for there how the eyes year and the of versus timings this year? that the that about much do late, delivery all of business, the them, athletic stimulus athletic late, we're the year a from you lot hearing of you're like think

Carl N. Scibetta

really the accelerates A is stimulus in or our marketplace, big when athletic significantly. stimulus part money whether it's of money tax business refunds

in that had in that continue non-athletic, issues it which to to going some we very effect. athletic, see been deliveries now is obviously were -- of do frankly let's going where great back the Vietnam. which say believe ignore the XXXX two to have Not XX:XX going that breakdown goods With was to coming we we able We're for the market to fact our out strength last not aggressive continue slippage of is but to the are year that formula. amount money we manage it there, in and almost have there But just we with years. of manufactured been do we're -- through

So we're confident we'll get what we need.

Samuel Poser

And to your then seeing benefit some -- of that of starting bit some when or from that? lastly, when you decision anticipate that do quite a the eliminate you distribution, the to you of is do of anticipate something largest seeing benefits are vendor' now that see

Mark J. Worden

broadly season year, to get we've years market accelerate we to with seeing back can the the on and grow been confident We right to as this the growth we're lay share to we're strategic set, of continue share. that expect now. the for and Well, continue land, of world's And our going slate in across into a we've based multiple holiday brands. got broad best speaking, to the athletic school diverse market relationships our partners,

Samuel Poser

is you XX% what at a sorry, CRM more give shoestation.com, -- number of $XXX that as anything with the us thing about Shoe Just the a can -- changed you guided originally revenue margin, Op by had in to Station on has color getting up seeing and within there? anything to Shoe within revenue, and your with any guidance there that on just more one Station, the do will you I'm or potentially give you're that earlier facilitate can some million us

Mark J. Worden

There's signed and this us and We're very that We're towards the so growth coming get and our confident going is with to integrations this again the Sam, capture smoothly with an to of early guidance early end some leases delivering there's our for dotcom opportunity Sure holiday. results. year. before pleased in Mark. start of that outperforming the opportunity an starting online with to

to have set we up and think the we're delivering as rapidly to to expectations opportunity next place. confident we in into beat. those reiterate, very and fiscal Importantly, grow have get original in we're But pieces our all year an

Samuel Poser

you like then prior stores like into seven eight said open you get and accelerate were year, from And, seven there this did from around I it that or -- XXXX. going -- that call? stores, sounds Is right

Carl N. Scibetta

to committed to We're get XXX.

very we end down and hard we'll it stores availability So this to the how happens enterprise But a get fiscal make can. fast those XXX come the close into going going or fiscal that we store QX. of at We're real get finding double-digit accelerate to estate the making a We're We're XXXX deals. as It's into X. as towards growth as that's estate, attractive XXXX. clear, real XXX is we're of to real just accelerate matter it working again above XXXX. number we'll trying roughly the we can if as yes, right. year in surpass for in QX to minimum in following a is But quick

Samuel Poser

so thank much Well, you great. Okay, success. and continued

Mark J. Worden

Sam. Thank you

Operator

from Crespi, is Hardt. Jim question next with Our Chartier Monness,

Your open. line is

James Chartier

taking Good Thanks for morning. questions. my

expected believe sales half flat last comfortable still be first First, see to if with that up to expectation? wanted X%. I you you said just quarter to you're I

W. Kerry Jackson

we're compare are. We really we that had past and happy expected. expect as increases and Like in We're to is get we QX we're in before QX, QX we stimulus line the of be said with some the But of average year. the last on year still our still the the lower there. because of for QX residual benefits to comp comp the originally to QX expectations of from expecting remainder side

James Chartier

Shoe accrual the bit than incremental came against that a first given there mentioned any SG&A from expense. Station to plan in would for then big then that your little rest you When comping kind have the higher I expense year. for And higher the benefit Great. integrate quarter? last advertising your of Were incentive And and the costs of the advertising what's expected then in year? expected comp was

W. Kerry Jackson

as a wages in. invest one with came SG&A to spend when the -- and our so -- as drag that that other have done advertising, needing level digital we sales. to drive effective line customers experience to our We're store utilizing we've our store positive We be And expectations. analytics our in come margin CRM good in before to our was more

that the typically. bit to those in compensation was last was than quarter, first in breakout because a little such we incentive line, our average remember it year last was we're if higher had SG&A compared offsetting the year, So thing lower a you unusual

Mark J. Worden

what want to now good that Jim, cost build working includes $XX employees we've Carnival that, believe above. we full-time a And today. guidance to have living the to structure for wage. I year, compensated Hey annual years employee share which it's built is morning all are base, raised Mark. on our and And been proud have at have Shoe many or that, just our we we've achieved the very that strong we quarter, also we're strongest at into this

James Chartier

you repurchases to That's of how much that a there more great. and the going to historical. forward? share your change And do aggressive are think approach been repurchases about then than share kind Has

W. Kerry Jackson

aggressively. buy pressure opportunistic Jim, quarter that, in we that the on utilize to our a first we saw and some shares are little back more typically stock and under

James Chartier

inventory any then your where Great, areas is itself? constraining for last question,

Carl N. Scibetta

Inventory Jim, door XXXX as we are versus just Carl. up this about Shoe and reported. Carnival basis up our sales Not XX% that point. this see per X%, Kerry at Hi over is the on comp is

a a the for that of We're -- we going for back-to-school. in preparing efficient second good is season have. warmed up ratio for really selling use as the weather we think making great and inventory well a positioned the that So, good and seasonal quarter

James Chartier

the best year. the luck Great, for of of rest

Operator

Seaport Mitch is Research. The with Instructions]. Kummetz next from [Operator question

Your line is open.

Mitchel Kummetz

just growth right you've gross quick any margin just One, outsized so that going I athletic. margin, of to couple of a in versus penetration up? got on follow-ups. Yeah, have that this the Are now of non-athletic implications terms there

Carl N. Scibetta

built the Yes, than that the slightly our do, on we Typically, for Mitch again. and areas areas the it's athletic into higher balance of Carl margin year. a have non-athletic the plan

Mitchel Kummetz

positioned good your current thoughts year. bullish of competition? And feel are of there of are the out an particularly maybe then, in share like the are of as just maybe made for have of sounds on areas on lack those versus how casual take of the kind your commitments what sure those the maybe like of maybe given do to you some you is dress guys a it in balance you've the what competition year, you over the some there's Carl, pretty by your those based sense to market to kind commitment categories, balance and opportunity I'm reads a seasonal Okay. areas,

Carl N. Scibetta

those of reflow an picked but were after go have talked to as or where might alarm to the the XXXX. I I seeing opportunity, the an guess, it non-athletic our frankly, Well, really of headed We say, And started categories that about I categories, categories. up XXXX. competition, took April we in should we

of we the balance that We it believe we're continue we've that the of believe market ahead on in see We We those a throughout has in aggressively, XXXX. XXXX curve and position continuing. ourselves areas, and that. for share taken

Mitchel Kummetz

folks. again, all Thanks that’s good luck. Okay,

Operator

from The question Trading. is Poser with next Williams Sam

Your line open. is

Samuel Poser

more within perfect, probably say, foresee plans of environment then do the your benefit we account into take versus members into foresee growth about products, for us from? almost Mark. you loyalty the Kerry, them? some the built your on do Carl, or mix I you you're last a they of coming XXXX, talked broad in your you And to sense, I was see mean getting -- so promotional business do give the as plans, how of us But from you how are where data some was can share how how could versus growth let's you to that? the wondering, and mix product, give XXXX, low much And year share lastly,

Mark J. Worden

take that Sam, expected. it's continues I'll Sure, We It we our than advanced first. Mark. to faster grow talked through capabilities. CRM

early of most total members dilute margin valuable were enhanced effective talk game. basis the how so We per products, baseball over the new I is now game. prior our personalize That's We're talk that we best There's that XX we efficiently We're that we're going customers lot engage vehicles and or XX engagement. consumer hitting know points best As about. with total strength absolutely for enhanced important watermark. sustained encouraged as messages trailing growth still by versus the promoting because the our QX That's QX. brands as and pair the is. both profit see Effectively, million both the that well our -- approximately a -- the gold and play that up over end reported, XX% cost-effective nearly upside digital with more said, of to can for offers. [indiscernible] Ultimately, We technology, always where during parlaying a We be as via that to our real where very couldn't puts year. XXX innings. there. more though. membership members, XX% grew to excitement to our That having without members encouraged

many, this all more years in have derive growth can We innings we are but the the ahead. many from of tools, there

Samuel Poser

does members your versus -- now percent are versus that and last of year XXXX? let's sales from say, that What changed, loyalty coming how has those now how

Mark J. Worden

can and move ahead, that and as the that what we still the phases, on up year-over-year. investment Yes. And XX% think efficiency from revenue, ahead, that years for to the lot the the Sam. that gain need. low high all upgrading cost we XXs we quarter, said, to still in the We've We're or effectiveness truly is We hovering significantly thirds the the I a over runway years and XXs believe, I have potential and available platform upside or given just for of get best to any it our completed in between said range best-in-class. is we reach of two believe continue

Samuel Poser

you. Thank

Mark J. Worden

you. Thank

Operator

further questions turn no time. any the back for at to I'll remarks. We have presenters it closing this

Mark J. Worden

thank I'd the in QX quarter. day. our to for great next a us you look in again like all to Have talking joining forward to call, we you and

Operator

webcast. Ladies today's and Thank call participating. this for concludes and you conference gentlemen,

may You disconnect. now

Shoe Carnival (SCVL) 18 May 222022 Q1 Earnings call transcript