- Earnings call transcript Q3 2022

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Operator

Good morning and welcome to the Shoe Carnival’s third 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 a which today’s reflect in and speak

Mark Worden

to quarter and morning XXXX Carnival’s call. welcome Good conference earnings Shoe third

me Kerry and call Financial Officer. Merchandising Chief are Jackson, today’s Scibetta, Chief Officer, Carl Administrative and Joining on

and announced has profit continues of during to As QX versus their months first progressed. volatility, disposable traffic. challenging years press continued on margins continued per customer growth plan American this accelerate environment any double expectations, the to delivered our Shoe QX, a in incomes consensus of Despite and the putting members to customers, and more share XX excellence work. and quarter full like of on each is to year, our than strategic I XXXX their levels the fiscal which nine this for would profitability for to operating of communities households share as expand Throughout and shareholders. company’s double commitment for $X.XX counts thank our our inflationary the macroeconomic year in exceeded accomplishment one. face earnings our of historical earnings pressure operation to per except team nearly our Carnival earnings morning’s $X.XX release, X,XXX

with quarter organization operators we Our profit QX, transformation above has brands This illustrate further in from the were consecutive merchant vendors highest and exceptional our unprofitable growth that was our To QX achieved, resulted results XX-year and company while customer Similar our the the year deliver profit X.X% QX. double the profit to margin during strategic the product QX in seventh the in service. margins of operating close continues assortments the margins customers’ profit promotions, favorite provided period. partnership delivered XX.X% marking the the and operating freshest eliminate encouraged in operating to XX.X%, achieved of QX sequential digits. the prior XX.X% for margin operating

we XXXX throughout in into to XXXX earnings visibility previous operating in lapping The levels. sustainability no of normalized quarters with the quarters. XXXX continue the calls, our provide clear profit stimulus-impacted discussed As more been have stimulus benefits management

XXXX. XXXX. sales of fiscal during stimulus-benefited months to compared nine margins, nearly and customer were achieve guidance operating Carnival and recent underlying first the Shoe prior levels. XX.X% we Overall margin doubling raising such, growth the We years our believe for back COVID-impacted profit at As providing for and way operating historical today to the the these expectations company’s benchmark XX-year to between and is XX.X% best to XXXX XXXX understand sustained to XX.X% are sales

members, multiple XX our time the of For geographies, XX.X%. The the up XX.X our loyal $XXX up across end million of indicator membership new record across across QX, brand count at strongest is first with QX, XX% versus that and for approximately Customer our continued surpassed XX% resonating of of of loyalty XXXX. compared customers growth sales the growth setting customers banners. demographics, achieved over million XXXX million and for a to is

XX.X% by encouragingly, quarter supply high, challenges trends, positions continue be to in XXXX, progressed. versus and category versus sales provide and results driven comprehensive improvements XXXX the at athletic chain non-athletic inventory QX, shortly. Carl as sales Looking a reduced overview customer up will up stabilized X.X% of in

to was month, corporation’s result encouraged share We’re $XXX at in sales the any highest this of surpassed that the sales XX dollar sales earlier billion of we second and quarter QX million mark years. the

sales as XX.X%. in left Compared growth During on during track on inflationary said, our the year XX% their of and only holding and grew of company environment year, nine incomes sales first prior throughout QX to QX, expect weeks traffic. prior the the other result. QX every QX disposable net and pressure $X.XX per surpassing retreated will $X.XX during share achieve months With quarterly that on high said, X.X% are to XXXX, likely face earnings fiscal the sales we achieved over the throughout customers and XX from approximately which With net $X.XX. XXXX, we a XXXX, stimulus-infused our EPS season, put this holiday between historically and of

is of anticipate side the on our such, lower to to lower and annual deliver As we mid of EPS the most our the to likely annual side XXXX on deliver outcome sales guidance guidance.

we our fleet continue on program. progress to an strategic for make modernization plans, our update to significant progress now on first Moving key on

have modernized Our with XX% plan the stores track by on summer of XXXX currently. complete of over to XX% is

Shoe prototype grand Carnival modernized we opening In out and month in Shoe a store both now, the rolling and experience Station modern later are this new openings store Georgia. addition to Alabama

Sales first expectations months on XXXX. continues banner Station of nine million surpassed $XX Shoe the during our outperform fronts. all Second, to

year range. and by Station $XXX profits exceed expectations low sales of XX% and profits double operating to expect our million Shoe mid to continue original to single We the full digit

to of timelines. ahead Our banner integration efforts recently our pace of the continue acquired preliminary

realize efficiencies merchandising, and well operations gaining practices to office best back synergies starting We’re marketing. as significant as across and

soft January stores prototype and chain we were the spring enable to stores expect by we assortments. aim Shoe end XXXX the and XXXX during XXXX to the identification XX surpass to the XXXX open the note, XXXX, store throughout of fiscal XX and south store spring to site efforts planned freshest new progress XXX Station stores New approximately the of continue tentatively grow to design to to store openings horizon. to To rollout the openings product two shifted for with new of acquired

deep we our drive able with sales targeted us tools Third, via analytics CRM, digital customers profitable platform capabilities at and communication have a continue without to promotions. highly margins, attractive one-on-one allow reach us to give email, to customers. elevate to These advanced are which our our and text unprofitable marketing and

in to incremental able loyalty. out are now leveraged environment. that program. suburban we advantages for major income our hand, rollout across organization to Shoe sales our to be Perks CRM we’ve for technologies. as is our inflationary core aligns been both Shoe platform is loyalty proving starting Station We into X early the be a the Shoe XXXX are confirm resilient Station extended our the higher customer During the it that integration with demographic have data of and Station and and final completed Shoe stages banners the current that nearing With development QX, of which or loyalty initial new such customer occasions customer Many Two targeted to holiday part wins was million when XXXX. already customers a been for ShoeStation.com adding over as this achieved, acquired, increased expectations program

banners First, earn can customers those our either rewards banner. and either at rewards now points of and across redeem

and XXXX surpassing to enhanced earlier, Shoe over stores stores The on five to approximately the organic digit and XXXX beyond. our and store as we on largest XXXX Based timing XXX to strategic acquired enterprise Second, developments and of provide targeted in we Carnival QX demographic to targeted locations of banner, banner new next of will I deliver date acceleration strategic We highest performance the members, Shoe operate through we real Carl expand a customers aim of locations conclusion, to remainder operating full loyalty years. XXX XX is to year new planning Shoe with availability and our more Station tiers new results, per doubled level customers store track over double shared anticipate counts stores seventh all store the footprint horizon. now the the million in XXXX our see further. to we targeting track then XXXX of banners Fourth, quarter in targets white earnings over can XXXX. product provide million and to shop. conveniently XX.X our that on to With EPS In growth during of introduce Carl? to in prior space ever, geographies, and attractive estate are the climbed M&A for and one activity. pricing against we both marked to in to the and XX Station XXXX consecutive recently horizon fiscal XXXX discuss all of to assortments the more has our opportunity the scale but them share are XX.X with grow said, year and expansion for our XXX-plus to than is ask profits,

Carl Scibetta

Mark. you Thank

results are strong our As highlighted, today’s that Mark is evidence working. strategy

quarter. chain. we inventories are athletic through quarter, Supply positioned demand We experienced points in as with the of inventories improvement inventory take issues to quarter, XX/XX non-athletic fashion chain the early anticipated non-athletic sales category advantage balance. into we to this in in we quarter; basis category in product athletic/non-athletic was line continued This did During however, footwear the deliveries the the to move athletic a see and impact forward the expectations. XXXX. XXX to shift availability consumer a the third sales moved of by fourth compared to this Entering

outstanding in supply looking At with state two continues believe a over to ahead, forward we will for into chain, XXXX. we supply Our dealing continue line and weeks supply to diligently merchants have as quarter to of more move issues end, we normalized chain XXXX. improve team inventory manage the fiscal was years been our of with the

carryover are Importantly, and inventory aged seasonal both line. inventories in

no we glut or As and not do deep goods dump a inventory see the quarter. a provide result, in to discounts have need fourth of

the the XXs, by XXXX low up in Sales the in XXs. women’s markets Children’s singles in non-athletic non-athletic the up XXX% the Sales XXs in XXs, down By dress non-athletic by high Men’s footwear for mid time men’s for up were up further up up sandals XXXX. high the and Turning men’s department, up to casuals and Sales move we up were was XXXX. which XXs be the up mid athletic low were the were driven in up sport casuals non-athletic athletic and was mid the non-athletic increase Sales the over athletic categories continued categories non-athletic of up footwear Carnival athletic singles the as our the athletic serve. shift reflects in XXXX consumers’ period. over XX%, the mentioned, in mid-XXs non-athletic versus from anticipated and to singles. children’s low in retailer of the Shoe results, were adult the mid XXs. third were sales dress the Children’s versus Men’s in XXXX high the to high in categories in quarter. was back-to-school low children’s for from sales in up up XXs the were in the to up in and infants versus for up to This was the in were mid versus growth up XXXX. non-athletic XXs. in versus in teens mid choice XXs continues and in the teens in versus in were athletic. driven sales sales were compared XXXX. sales footwear boots

and With trends XXXX. are results flow, strong me, the the we anticipate categories the for the of in remainder non-athletic product we fashion XXXX--excuse seeing sales improved

seven quarters, promotional margins. versus deliver As transformational over margins we XXX XXXX product excellent strategy. up and product run basis past to a result we of continue have our continue seen These points the to are

factor through XX these valuable are sales that to key insights provided drive consumers us a effective smart, customer data This CRM best-in-class our our with data this program over customers provides growth. We success in has continue and enables million we into have from engage the us seen margin growth. not margin dilutive. to use promotions and to our utilizing The strategy been loyal

categories As penetration total we non-athletic to sales. the traditionally quarter, move increase the into in fourth

year. Our much inventory is those last in position versus categories improved

financials. Kerry is levels of Kerry? position now inventory last that, for year boot and inventory to than and been review our a throughout seasonal the are Our much athletic freshness strongest the turn XXXX. over better they’ve I our call With will

Kerry Jackson

our highest increase increasing the Carl. increase Carnival QX increased the I’m profile from in million to pre-pandemic previous to QX $XX.X I and the X.X%, resulting to XX.X%. of sustainable history, another you Similar for demonstrates and most or quarterly for compared the year. by store XXXX versus with the Shoe see sales the highest this increase QX surpassed quarters XXXX, store Thank year-to-date year, and by successful excited which quarter transformed quarterly the These as share Net Shoe highlights a comparable financial relevant results and sales sales banner from company. profitability from increasing third start sales the quarter, were only comparable be in the you XX.X% second with store will Station sales period comparing in sales which This QX as the of last banner. million, is comparable the driven sales XX.X% $XXX.X normalized we of this pandemic. a XX.X% prior year was to again the

historical an to third last partially XXX% wages, gross XXXX. QX by year. increase point of double line income in third profit in sales and points margin XXX double operating the the was was to or expense in $XX.X of which of point operating of sales. investments basis are XXXX a to of for XX.X% Shoe of merchandise SG&A was occupancy XXX banner margin was compared margins XX with basis million Net of a annual XX.X% level $XX.X along or the offset distribution of compared share, SG&A quarter Our increase million increase or was expectation is the XX.X%, million per QX due the in in QX the more XX.X% advertising in than increase QX million The XXXX. An Station quarter XXXX. basis of $XX.X the costs. and acquired for or sales of expenses increase our primarily store This third our to was in buying, in run diluted rate. $X.XX with income quarter compared earnings digit $XX.X

stores quarter including XX% quarter share of stimulus-enhanced Station quarter Net earnings the The of which the opened of of fourth of increases up million expectation this the diluted this $XX.X the XXXX. compared inventory highest and the compared inventories. is of highest is XXXX. or inventory increase is inventory in XXXX year. is year our $XXX.X the the the our the XX.X% higher of sales closed increases, in-transit acquired year or XXXX, is history, sales increase in Excluding million, with last XX% We remainder these Approximately of per Shoe and out third in to in supportive increase in end than the for net XXXX. QX of to inventory for

XXXX. $XX.X program, December million. our $X.XX XX, $X.XX Summarizing we During our XX.X% range repurchased year, expires and cost the $XX.X under to for approximately to of share XXXX to available fiscal billion, be million $X.XX we total income guidance, margin repurchase annual however, in to sales quarter, XXXX; billion we is at and third levels. We expect QX QX. our XXX,XXX to which to XX.X%, range lower shares annual gross third Shoe performance of customer are a had profit margins in Implied expected to from range our $X.XX. a the XX.X%, results higher from to quarter sales earnings diluted from pre-pandemic operating QX expectations sales we comfortable store with Carnival In guidance. increase XX% that of range compared our fourth sustainable continuation as our Based mid and with compared our outlook, to XX% are profitability cognizant are on quarter earlier, more mentioned of inflation to between for increasingly this expectations, comparable Mark to year-to-date challenged are closing, per

a term combination in our execute growth year This We and remainder review. for acquisitions. and long concludes through are store to selective of ability financial are confident expansion our and the organic poised the of modernization we

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

Operator

Poser Trading. question Your line William’s the instructions] [Operator Sam comes of with from first

Sam Poser

taking Good Thank for questions. you my morning.

and all, leverage of the BD&O some to you housekeeping. ’XX, Kerry, that of please? Can instead First good. give the margin year-over-year back math is My merch us going not just

Kerry Jackson

basis margin the de-leveraged basis for points. merch XXX and BD&O increased Our we XX points quarter, by

Sam Poser

year? last Versus

Kerry Jackson

’XX. against No,

Sam Poser

us last Can you give versus year, year-over-year?

Kerry Jackson

see, Let’s Sam.

Our merch margin our XX we down XXX was basis basis BD&O points. de-leveraged points, and by

Sam Poser

how sort sales that Thank a of you. what--you you sales, is quarter, Then levels with for little year, annual can year think--what and understand company we on in inventory last inventory but an given how I a we optimum basis? bit total last inventory the about on sort the basis year-over-year the and were down the did do turn a was less lot know, of talk turn,

Mark Worden

the information online we’re business Station You accelerate that that is where know a spotty where Shoe ready our feel planned comfortable achieve store know, today we deliveries. ago and based to We to we’re I with inventory were that know I are give forward don’t Sam, that much--were with on pretty year coming levels the banner goals. openings. going and to how going

Sam Poser

would Okay, just that--could I you some little more brands, of for sport, some--like, guys--everyone but sake me examples of, Carl, you product, category? fall of give which because you idea-- give defines athletic that some competitors, tell your you sport Could into non-athletic us have of you the as oriented, what to it’s those in while what may could sort some the have it your definition, casual non-athletic view believe discuss give is a in if examples, then sport and could differently, some you that move you you us just don’t

Carl Scibetta

you can but it, that can it’s sport work you we Sam, is feel something you it, look it’s area. out into athletic the it the not physical it activity do can If if if area. the can it’s athletic functional, play run, way sport, is--has in, you at in a Yes goes an in

Sam Poser

And would walking how a about--where then? shoe be,

Carl Scibetta

a It depends it technical if true shoe. walking a is shoe walking more on casual of or

Sam Poser

okay. you, Got

that. to We’re little some not idea--like, give was as mentioned us Can Can better. there well? a us that anywhere you dive and some color just bit that somebody get going supply you with into chain more the give getting

Carl Scibetta

Sure Sam.

of of consistent we third all as into seeing fourth product We’re on-time move that deliveries footwear. across was and early more quarter placed categories

on months, tended XX depending to XX back timing it the based whether whether last non-athletic. forth the swing and and on of to production it country athletic, it COVID. was It was and and spotty Over was the category, origin

We’re seeing anymore. that not

seeing the products placed based of We’re all the footwear, categories in being time orders. and on athletic available non-athletic, we way on

Mark Worden

Sam, over from we fuel cost little QX. in expecting and and seeing--in due saw cost we’re quarter, transportation potentially of supply for QX to I’ll healed. our a supply the the in year, see it drop half little a as the past to basis and point, XXX standpoint--the we chain’s that XXX of also seeing This bit are we’re chain was points so costs to first add that, standpoint, the [indiscernible] basis savings over QX,

Sam Poser

there? give I inform done know, it I the know of the guidance, first any the I the or far big--and did is huge tiny but a you and going, guess, you’ve it’s much that couple color up, weeks in it’s coming can so tiny, the provide weeks how how on, it’s color are some amount know just--you can us you quarter, business

Mark Worden

really of us, to expectation to anything quarter not is is that turn big give because seeing it’s any material weeks of right overall really so upon now to this of our out guidance point be. we’re are to ahead hit you to going the hard Sam, sales it what the

Sam Poser

non-athletic well sales? and historically, And in to athletic has as of that percent fourth been, quarter as boots a the within what

Carl Scibetta

business. total in in XX/XX quarter, the front don’t the XX/XX to the versus business, more the categories about the drop to tend tends non-athletic athletic quarter where Boots run but in of typically of women’s the a non-athletic the number non-athletic for and I of XX% a non-athletic have to business. me, been of children’s we have

Sam Poser

the how what And on you’ve see anticipate direction seen based sort fourth it, that a you overall year? on XX/XX quarter? we into trends, that it in the expect--and Is this from bought you do you’ve non-athletic/athletic this do of could going

Carl Scibetta

by Sam, will weather. determined that be really

colder has we and a be what weather and through As weather see penetration, the we’ll major seems quarter, happens. factor boot move the in to turning

Sam Poser

point, and a that those get or in get I’ll were six bring and the Did weather that other feeling off, good You then trends then seen I’ve they category your eight from heard the over then because cold, or you warm and you or great that, and weeks last weeks, then follow get warm, seen groaning, categories--in up cold, colder we’ve retailers get cold. getting again about it five seeing, were so? kind call feeling of ago the when or weather four better. six rollercoaster they got same the then it’s over last, was have the weeks it they’re Are

Carl Scibetta

a expect Yes you Sam, we think a than categories. we were inventory, have great we’re boot standpoint movement the know factor, always from the in a weather stays seen flip-flopped but delivery the and much holiday bit. at ready a boot have season little it certainly look have better to year this weather, position I it great ago, fully we playing for consistent, from is last once as and a What we we in the we’re and the see year, year weather--and just in we a some weather

Sam Poser

All very right, thanks much.

success. Continued

Operator

with question Research. Seaport comes line Kummetz the The from of Mitch next

Mitch Kummetz

taking for the I missed think year-over-year, my on it. thanks you Kerry, on QX, I a comp don’t Yes, questions. gave unless

on color only the I last quarter? it could for the a it the a played you was how maybe three-year. us just or versus out then and little think year, you months, gave also give months What on more

Kerry Jackson

that over were except X.X% what saw against consistent the increased level we October was at XXXX, average. fairly was Mitch, we and down Yes it

Mitch Kummetz

it first trend into back couple gotten to Okay. question, of from I has that that worse? October Then the small, October know has but November, Sam’s better, weeks continued are

Mark Worden

after point really starting this not to give our typically how Mitch, We right but so or trend from Thanksgiving it’s shy doing don’t negative, positive in is relevant to start it, so relevant to happening, it real that’s know, the day overall, time. information is - when it we on at now the the dollar quarter’s see whether sales will start we the away guidance. really immaterial, when it’s the You

Mitch Kummetz

Sure. an activity margin--or that Can you’re into little high the would XXX, Then talk margin, XXX say which through saying about if merch I’ve the and of quarter? trend of the in I should promotional up, year. be how QX, kind early on improvement think be the been gross of I you’re for a context over range like, backed part three-year, something XX bit has for would fourth the the maybe that’s a year. that, thinking XX% in in you basis what points on the about also

Kerry Jackson

the from you’re way penetration athletic Mitch, quarter, non-athletic higher to about numbers. talked to go we’re margin in so business. non-athletic higher how a it part in of those expect The non-athletic. I correct on drive our we looking is know, the a Carl merchandise it of have at fourth that--you We

slight I so now leverage seeing chain helps we’d come BD&O, overall leverage our and that to low in our as guidance QX, BD&O again into also, end which our of that here of We see mentioned we’re supply our on at the our leverage expect profit costs margin. gross play, earlier,

Mitch Kummetz

helpful. that’s Okay,

the on side to in in for said that athletic quarter. on impact and athletic QX? your you were Carl, year-over-year was, athletic third the business, and how on inventory might the constrained how Can things. XXs how in you it down I a changing Just you maybe like, in QX, that’s for outlook the a speak think last few

Carl Scibetta

we those so big big weeks through Early early bit. us bit as hurt were a weeks, back-to-school product Mitch. late, Sure a getting deliveries the those in in on came quarter scrambling

in there, been into with a to from we shape we As quarter, the good deliveries October standpoint our with consumers our throughout moved our probably pretty that share. lot inventory and in best up that get more holiday, and much has setting last us inventory’s in was freshness, quantity going today, so out fashion the for later a the line year, it of feel we’re

Mitch Kummetz

you until how the--or I the also were the in last receipts remind us that things first If recall quarter. Can you actually ship fair quarter? correctly, on there boot didn’t didn’t fourth the you year maybe until a amount challenged of inventory get were

Carl Scibetta

Yes, say quarter the significantly fourth of take really meat quarter. it were the in last inventories down boot of didn’t exactly. during I Boot would inventory the to advantage season. a hit time of

Mitch Kummetz

their if that’s then or any earnings the just the lot and in of some about working through couple some partners of discounts. and a kind you offering retailers deals having just deals. some you’re reporting I’m maybe as on of the last vendors gone cancellations. Okay, and have quarter things. through bringing are impact if in wondering, Carl, last seeing of We’ve which resulted good have so, month excess excess, fourth margins a good some any out has some if inventory about Others in there wholesale them on some are talked talked

Carl Scibetta

and problem see season buys and in either or been in don’t big make no into through from vendors move when overages of the more as of there the inventory. has sense. there’s fall really really opportunistic retailers, are. based first where they activity, having in inventory a take But because promotional the is--it’s but the we the There is presented and a increase people, us increase product are of all it way Mitch, to lot fourth on an both quarter We say would that for we re-flowing those and category, on dump remainder I quarter, to they’re of than of advantage past. opportunities product category

Mitch Kummetz

redeem at can Station what first lastly, Okay, customers the Shoe Shoe other seeing Station of of on like lot all, banner Carnival I’m either Shoe and side think curious the being the see then use that when on curious happen, Shoe as and there. I exactly and the to Station what on I’m said product integrated to are offered and become Carnival customers points seeing, you and now banner. a Mark, loyalty, Shoe of assortment different did that you’re aware you’re

Mark Worden

hand the largely where the that not I the just to more pitch ’XX customers over new and so of have allowing tiers to XX% thrilled, the of anything to two they’re cross-geographies, million QX, they’re a quickly a enter. three from we’ve from compete hope as of learned but Shoe us ’XX to we’re we’re insightful Carnival first, we in to and this, too upward first have to wanted it customers a happened and a just and - leveraging Mitch Yes, coming end early learned stores That’s open long-term Station how all second come years, more a we’re third cross-merchandising, of and for horizon. we to out It’s acquired customer, across they’re from share from shared, banners, have over suburban to this sales first as market now cross-price assortments. of Shoe what really towards Lots XX.X space opportunity lot integration. the million inning getting our across time them a up does XXX at was count, to highly a of cross-banner, mass when lot really that sales, - geographies critical profit store data current aim customer, we we move affluent by now over markets figure to and our

Mitch Kummetz

holiday. All luck right, for thanks guys. Good

Mark Worden

Thank you.

Operator

Hardt. The of Jim with Chartier line Crespi comes from the Monness next question

Jim Chartier

my for questions. morning, Good thanks taking

little lower quarter, end expectations last and First, at color than Shoe be could outlook, the wanted like I now year, XX% Station reduced looks any just ask--you for it the a initial be think above sales to just around your would that, least you at so bit the it there? I know, said low

Mark Worden

guiding widening we’re in operating Yes, changes leverage not to just for we’re mid hi. drive starting supply strong, double time low Profits integration and I account now expected are widening Mark. little, beating any to widened merchandising singles we’ve the It’s this It’s range that right supply during would XX% just and Either $XXX for by higher QX. original to finalizing the in aperture say a beat take million through to so the our of to the way, expectations. minor coming digits, the the chain profit in all lowering. aperture. chain to our really moment still profitability, we’re go insights

Jim Chartier

what’s Then if ecommerce, date have the the for one? sense. you makes Okay, launch

Mark Worden

launch fine-tuning the an we’re still couple that, launch final it holiday what if QX. thrilled time before ensure chain phase. in great side think is we’re flawless this we’re if next and flawless testing the either We we’re very need in ready chain not supply making is launch It ShoeStation.com we the outstanding shape. in on. a in experience it close. Yes, will then we for sure The in turn with supply weeks. we’re the of just seeing customer early months, the experience couple will But to or and next we’re Similarly,

Jim Chartier

your activity to just--you competitors merchandise up know, are color great. industry margins and levels? historical your from on you’re have then can returned holding seeing, provide Okay, promotional promotion your the vantage Any you

Carl Scibetta

it’s retailer, Depending seeing that. on we’re Jim, Hi Carl. some the of

that have done messages. which We’re seeing we value strategy, marketing something from our it is with additional eliminated and global total via really coupons promotions,

Our traffic we this we comfortable are it we’re But the some but and direct with competitors, seeing move that at point, not think the are within nationwide reach seeing we’re quarter. trying where as retailers of it, are margin inventory to for well or of goals much in we’re our big the actually stores. stimulate

Mark Worden

well has second Shoe have and the most QX, we’ve Carnival Mark, Historically get shared, been we’ve weeks so the our add let of year. the operating important off This seventh course sales a the confident during working. the double-digit is profits, XX year, promotion me of was year, history, posting consecutive half one, as none of run quarter buy This quarter of pleased more over point. and our strongest is one year one we’re strategy the in run

other to space we’re While competitors going that what giving best at sustain now we’re enhancements. during other Case product they million can want, point, targeted - and back-to-school, talk just many it by year we a achieving away going half retailers and cheap double-digit to to said our off grow with we we’ve get true in one to people continue punctuated our buy profits operating stayed not round about outdated loyalty XX.X what one, price. in we’re

Carl Scibetta

there, that promotional so planned more into that know to are dilutive, us quarter and make fourth fourth you from and quarter the I’ll for those we of categories activity baked promotions Jim, in all see certain buy promotions sure a promotions add quarter. the not One thing, that is forecast. We run the margin results in is

Jim Chartier

thoughts buybacks the the what’s new Thanks. well kind next as capex year, to requirement store fund and next that capex of what’s remodels, your of view on requirement Kerry, in as growth higher Great. year?

Kerry Jackson

capex by of You number and to know, million we’re doing. little remodels, driven our $XX a that’s we’re modernization do that really in the the of this over stores expecting year, being

leaving We’re next flexibility ourselves some year.

less the and have the to $XX $XX expect in between remodels. between capex expect somewhere store We million between capex We million growth should and new two.

Jim Chartier

big and buybacks? you are going forward, You this quarter, Okay, then thinking how your about on the picture of thoughts kind got marketplace in that? back but

Kerry Jackson

You know, always the same have. as we

deploy is thought first we of growth store opportunities going growth to do to be any that’s the street. focused in we side see we cash we but really if need we to the transition business, when as and and future, do don’t buyback unfavorably to we’re to the by being there and viewed next growth on and primary then that more the there, stock be still focus. think going opportunistic We’ll our we’re year, excess fund continue cash have and then Our dividend, fund build a we how our we’ll later, we are the

Jim Chartier

Great, thank you.

Operator

next question with Sam of the Trading. The from comes Poser William’s line

Sam Poser

so we last it one online, One, like or Carl, one follow-up looked recently, like planned boots. questions. I those a on events, in looked so have It one, around that of recognize, or we that? saw was that brands week the XX/XX two get something that didn’t saw just some buy or they I were

Carl Scibetta

on have they the was we were as promotion Sam. a planned specifically That done past. purchased You are that for correct, in a and select group promotion, of boots,

Sam Poser

and both that QX is said to - and that from from I you a stores Okay, QX Mark Station correct? think Kerry, moved Shoe Mark--or couple

Mark Worden

new out of down into store we January opened end QX and That’s two remodel versus have future. that our the outdated it moved ensure correct, we it so of Sam. them prototype the could have to We with

Sam Poser

So there widening was the no to impact from that, guidance or Shoe de store for change the of minimis Station? impact from that opening

Mark Worden

We Nothing that would material, store the to prototype. with those going said to moving fiscal. just It last meet the had XXX, that being be now going out be count, the we is two open of no. week was the transparent were to XXX shortly

Sam Poser

Got you, okay. Thank you very much.

Mark Worden

Thank you Sam.

Operator

no turn I At to time, back Worden the this like closing questions. over further for remarks. to Mark would are call there

Mark Worden

and holiday. for to joining ahead, I’d all our again QX like forward happy wish We call call. to to a and Thanksgiving thank year-end you all and a at talking our very look you all you safe QX healthy

Operator

This concludes today’s conference.

now You disconnect. may

Shoe Carnival (SCVL) 16 Nov 222022 Q3 Earnings call transcript