Q2 2020 Oxford Industries Inc Earnings Call
Today's call participants with me today, our top Chubb, chairman and CEO and Scott Grassmyer CFO. Thank.
Thank you for your attention and now I'd like to turn the call over to Tom Chubb.
Good afternoon, and thank you for joining us before I start I would like to wish you and your family's my personal best for your health and safety. During these difficult times I'd also like pause just for a moment to thank our incredible people for all they are doing to delight our customers under such.
Difficult circumstances.
Our strategy at Oxford is a simple one tone burdens that make people happy to delight, our customers with memorable experiences and product stayed low.
During 2020, we have faced a myriad of new challenges. Nonetheless everyday we are finding ways to successfully execute this strategy.
In order to do this in the current environment, we believe heavily into our advanced digital capabilities. The investments we've made in our E Commerce channel over the past several years allowed us to capitalize them the accelerated shift to online spend that each of our brand Tommy Bahama Lilly Pulitzer inside.
During the tide positively contributed to the 52% year over year increased in E commerce sales in the second quarter.
Lilly Pulitzer was the standout up an extraordinary 142%.
The Lilly product collection. This summer was very strong in many ways offered exactly what the customer was looking for fun happy easy to where apparel. The collection was highlighted by very effective digital marketing to which we shifted more resources in the quarter.
Our non comp flash sale in June also added to the success of Lilly second quarter results.
Historically, the Lilly website offer sale items only five days a year.
To ensure axle in inventory control an additional two day flash sale was held in the second quarter, which generated $15 million from sales had a solid 40% margin.
Even absent flash sale Lilly Pulitzers E Commerce business grew 74% over last year.
We continue to invest in our digital platforms and evolve our digital capabilities, including upgrade and Redesigns of web sites enhanced search engine optimization and enterprise order management systems, We believe the accelerated shift online shopping brought on by the current virus.
Health crisis is likely to continue.
Bricks and motor will continue to be a key part of our distribution strategy. We believe our E Commerce channel will be stronger bigger and a more critical component to our overall strategy coming out of this crisis.
In contrast to our E commerce business consumer traffic bricks and motor locations was understandably very challenged the quarter driving meaningful revenue decreases in our stores and restaurants. In addition to operating under restricted hours and limited capacity import.
And Mark has which rely heavily on fly in tourists such as Hawaii, Las Vegas, and New York City were press pressured even further.
Despite the temporary headwinds we are currently experiencing we believe our modest physical footprint holds true competitive advantages for us.
All of our brands, we have only 187 full price stores and restaurants with most located in premium off mall locations, such as lifestyle centers iconic resorts and resort pounds and prestigious street fronts, our beautiful stores and restaurants engaged.
Our customers.
Immerse them in our brands and function is an important guest acquisition tool for us.
While we look forward to the time when store traffic improves we are taking advantage of this opportunity to judiciously prune underperforming in non brand enhancing locations by the end of 2020, we will have a prior closed approximately 10 locations including.
Five which closed in the first half.
At the same time, we're also making some exciting additions to the line up this year.
We have already opened a marlin bar at Dania Pointe near Fort Lauderdale, and converted to existing Tommy Bahama locations on Los Angeles Boulevard, and Fort Lauderdale, and St. John's Town Center in Jacksonville into Marlin bars.
In the back half of the here, we plan to open Marlin bars at fashion Valley in San Diego and lot of China on Maui.
During the pandemic car Marlin bars with their casual bar in dining concept and outdoor seating have been a bright spot everyday we are serving existing customers and attracting new customers to the brand. We strongly believe in the Marlin bar strategy and are optimistic about the role that.
Concept will play in our future growth strategy.
Southern tide, which is just again its foray into owned retail now has two stores.
Both in Florida with another opening in the test in area. This fall while it is difficult fully assessed performance under current conditions. The result that we have seen so far are encouraging.
Lilly Pulitzer is done an outstanding job leveraging their bricks and mortar locations by adding a concierge level of service for their customers with private appointments and curbside pickup there talented store associates are also assisting with customer service calls from.
They are blurring the line between our online in store channels.
Our wholesale channel, which we had been strategically pruning prior to the pandemic and represented approximately 30% of our revenue in 2019 has been significantly impacted by current conditions in the consumer marketplace and the weakness of many retailers going in.
Into the Kobin crisis, our wholesale sales in the second quarter were less than half of what they were a year ago.
As part of our plan to focus on only the strongest partners in this channel of distribution, we meaningfully reduced our exposure to department stores, which made up only 11% of our total revenue last year.
We are expecting sales reductions in this channel to continue through the back half of the year and are addressing this trend by very carefully managing our inventory levels.
Across all channels, our sourcing planning and merchandising teams have done an extraordinary job and our inventory levels are in very good shape as is the rest of our balance sheet.
Cash flow was quite strong in the second quarter as we made significant expense reductions related to employment across the enterprise and reductions in occupancy costs. We ended the quarter with a strong liquidity position with over $30 million in net cash and over 200.
$50 million of availability under our credit facility.
In March I outlined our priorities for this year as one the safety of our people in our customers to protecting the integrity of our brands and three preserving liquidity.
These have been the right things to focus on during this crisis, but it is also important to remember that while dealing with the issues at hand, we havent lost sight of our future and what a future we have that Oxford.
With the strength of our brands the resilience of our people an enviable balance C and that competitive advantage as mentioned earlier, we look forward to returning the company to growth and resuming our long term track record and generating increased value for our shareholders.
In 2021 and beyond.
Now turn the call over to Scott with more details on the second quarter and our plans for the back half of 2020 Scott.
Thank you Tom.
As Tom discussed our sales in the second quarter was significantly lower year over year that 36% decrease was driven by lower sales in our retail restaurant in wholesale channels, partially offset by an increase in E commerce.
Gross margin was 55% in the quarter down from 60% into second quarter last year, we were modestly more promotional across our brands, including the addition of sexual Lilly Pulitzer Flash sale, and we took inventory markdowns across all operating groups.
We're pleased with the cost reduction efforts, taking across Oxford, as SGN, a decreased 19% or $28 million.
It's important to note that in the second quarter, we incurred $10 million on an adjusted basis related to credit losses, including the Taylor brands bankruptcy.
Inventory markdowns and fixed asset in operating lease impairments.
Just adjusted loss for the quarter, which included these charges was 38 cents per share.
Managing inventories at critical component of ensuring the health of our brands and we have inventory levels that are appropriate for our plans for the second half of the year, we ended the quarter with inventory, 3% lower than last year. Despite the significant sales decline.
As Tom mentioned preserving a high level liquidity is essential during these uncertain times, we have ample liquidity to meet the ongoing cash requirements, reflecting the strength of our balance sheet entering the pandemic as well as the recent actions we've taken to mitigate the cove in 19 them.
During March 2020, as a proactive measure to bolster cash our cash position, we drew down on our 325 million asset base revolving credit facility with strong cash flow. We ended the second quarter with 65 million of borrowings 97.
1 million of cash.
Unused availability of $257 million.
As we move into the back half of the year, we'll continue to face the challenges and uncertainties created by the pandemic.
In our third quarter, which is typically our smallest quarter of the year, we're expecting the year over year decline in bricks and mortar traffic to be slightly less pronounced than it was in the second quarter.
In addition, our Lilly Pulitzer Flash sale, which has been a bright spot in the third quarter is expected to be significantly smaller at some of the inventory that would have been available for the September event was pulled forward into the noncomp events in June.
As a result of the reduced traffic a smaller last sale and continued softness at wholesale we expect year over year revenue to decline in the third quarter at a rate similar to that of the second quarter.
For the month of August ecommerce continued with strong positive comps, we continued to see year over year decreases in brick and mortar and wholesale with modest sequential improvement.
For the fourth quarter, we don't anticipate significant rebound in bricks and mortar traffic and wholesale we believe we will move closer to breakeven inspect to return to profitability in fiscal 2021.
Our dividend as an important component of our commitment to our shareholders aboard has declared a quarterly dividend of 25 cents per share.
Thank for your time today, and we'll now turn it over for questions Laura.
We will now be next question.
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Our first question comes from the line haul liquid with Citi Research you May proceed with your question.
Hi, This is Tony on the call. Thanks for taking your question.
And dig into inventory a little bit more.
That was down 3%, but it's much less than what you're expecting your sales in the down the back half year Thats. Just wondering if you could talk about how did the inventory notional led to that they carry back down the list how you plan on.
Ending inventory at the end of third quarter and any color by lean and then.
Just secondly can you talk about the order book for.
For the back half the pick this fall and then how that shipping at restraint. Thank you.
Okay on end, the inventory time, Bahamas inventories slightly up year over year and they did not.
Conductive typical ended season clearance event, which is actually move to this weekend. So it's kind of shifted now I think that will help tommys inventory.
Get back below last year levels, and linear close inventory as a little bit higher than we'd like we've taken appropriate markdowns and thats mostly.
Replenishment type inventory so the pipeline cut off our levels are little bit high, but they will work down hi, its inventory with long life and it is replenishing as.
As is our accounts a wholesale accounts move the goods. So we feel good about our inventory and we have taken appropriate.
Mark down so inventory levels, maybe a little bit higher than ideal but.
But properly markdown.
Then.
Lilly will have another September flash, which they always have.
But it will be a bit smaller than last year, because we did the June flash, but that will again move inventory down some but when the sales decrease.
If I think our actions so on minimizing the input of inventory of allowed us to stay a little bit lower than last year versus significantly above last year and while we have taken some markdowns I think unit relatively modest compared to some others can industry.
So I think we're in good shape there.
Just on the order book.
And then the order, but going forward I think that comments that we made about the sales expectations for the third and fourth quarter reflect what we're seeing there beyond that as you get into 2021, I think it's a little early to say.
Yet.
Where that's going to shake out, we'll certainly have more about that in December.
Great. Thank you.
Our next question comes from the line of right now with seven company. You May proceed with your question.
Thank you good afternoon, and hope everyone as well.
Thank you Rick.
Question on ecommerce. So do you believe the acceleration in ecommerce segment represents a permanent change in the way customers are shopping and if that indicate how are you thinking about your store footprint going forward I know, you're moving forward with the Marlin bar strategy, but curious if we should expect even more closures for your.
Other locations beyond this year.
Well Rick we.
Kill very very good about E commerce as you know we've been on that band wagon for a long time.
We've had great growth in E commerce, even pretty co bed.
And it's profitable growth for us as you know our E. Commerce channel is very profitable. So we like seeing growth. There I do think that shift is likely to be long term I don't.
I'd like to use the word permanent because nothing seems to be permanent these days, but I definitely think that's the direction that things are going so as we go into 21, I would expect to E com to be a significantly larger portion of the business than it was.
In 2019, and that's a that's the good thing for us.
We do think that bricks and mortar are still a very important part of the future in our brand.
We'll be very selective about locations and you know what we're really doing now as we're coming up on.
Renewals or other opportunities to exit leases, we're looking very hard Adam and there will be.
I think over the next couple of years, we'll continue to probably trim some here and there.
But we will also add stores has we're doing even now in the right circumstances and in the right locations and as you called out and pointed out I think particularly mirlande bars or something.
That were interested to either in new locations or you know in many cases, we've done a couple of this year.
Could be a conversion of an existing.
Store location into a Marlin bar.
And a question on the outlook for 2020 line. So I appreciate that it makes it impossible to forecast anything with high conviction right now, but just curious about how you're approaching the year.
Do you see it.
At the normal year, like 2019, but perhaps with a bit of conservatism or do you see the potential for a hockey stick like recovery.
Where the business will reach a new high just I'm just curious about what the assumptions are behind expectations for profitability next year.
Thank the way that we're going to play into it and buy into it Rick is we're going to buy into at fairly conservatively and that potentially Gibbs.
Some upside if there is a real sorta hockey stick rebound in the consumer market, but I think it's the smarter way to play at rather in protect against the downside as we've really play this year and particularly the back half of this year that weve.
We're able.
To influence and so.
I would expect us while it's way too early to say a whole lot about 21, I think it's reasonable to assume that it will be smaller than 19.
Right and that we will.
That will.
Believe will be on a on a growth trajectory again, so we'll start from that.
Take a step back and the starting point, but beyond that growth trajectory.
Thank you very much in all the best this fall.
Okay. Thanks, a lot Rick.
Our next question comes from the line of Edwin Roma with Keybanc capital markets. You May proceed with your question.
Good evening, guys and thanks for taking the question I guess first on kind of linear and a longer term get hearing aid.
The charge off that tailored brands and maybe or some even.
Exploration a lot of comes back to attend the weight kidding, you manage that for cash flow. It broadly how do we think about the business.
In the medium term and then as a follow up with Tommy Bahama.
Okay Destiny okay.
Other ways you can pivot the assortment to be maybe more appropriate for the clean environment. Thank you.
Yeah.
Thank you very much and thanks for being on and with respect to linear the first thing I would say if look at we've got a terrific team. There they've worked very very hard and may continue to work.
Very hard and the best in their sector at what they do that said it is a very very challenged segment of the apparel market within the customer base that they serve which is largely department store and big box oriented may you had.
Couple of customers actually three in the last couple of weeks in.
Tailored brands Stein Mart, Lord and Taylor that all filed for bankruptcy.
So I got that challenge and then I'd got their key product category being tailored clothing basically men suits that.
Certainly as big challenges during the Corona virus, but.
Even prior to that had some sort of secular challenges with just the ongoing casualization in the country.
There are challenges are quite big at this time and we're working very very hard with them on what the path forward is for that business, but again I'm glad you remember did and called it out what we've been doing for a number of years now is managing that business for cash.
Cash flow and that will be the priority going forward.
With wouldn't here is really maximizing cash flow from that.
From that business and.
Expect in December we'll be able to tell you some more.
About that but we will continue with that focus on on really cash flow.
And then on Tommy.
And on Tommy Yes, so the.
I think he has a lot of product so we're really really great.
In the current environment and that our were really really well so there.
Performance products that have really come out in the last couple of years and Ed I know that you were personally familiar with them, but I sent example that chip shot.
Short, which has a hybrid shore made out of a quick drying performance with king.
Serial that you can wear and motion and then walk out on the beach and by that time, you get up to the.
You know poolside bar restaurant it will be.
It will be dry and look appropriate to wear and to that restaurant and even though people may not be in resorts.
Is much right now that type of product is really should and what they want right now another great example is the.
Palm Coast Polo, which I believe we introduced about a year or little more than a year ago.
And it quickly evolved to being one of our best selling products stayed there.
Ever since and that's just an absolute winner on we've got some performance wovens coming in both short sleeve and long sleeve that are getting a great.
Reaction from the from the wholesale markets that obscene those those are committed.
Next year.
We recently introduced a really terrific bottom that's.
Similar to some others that you might see in the marketplace from some some big to athleisure providers, but it's called the.
Islands Zone Pant.
That's sort of a again up performance fabric and when you read performance. What you can translate that to is easy to where it and easy care.
And those are things that are really really popular right now.
I think we'll continue to be I don't think we'll go backwards on that really across all of our brands.
We're really lean in yen into those trends hard and.
Tommy Bahama has always been about easy to wear.
Hasn't necessarily always been as much about easy care, but that has come on really strong in the last couple of years and we're going to continue to push in that direction.
In women's for holiday. This year, we've got a whole caps, who will have performed women's performance athleisure type product that I think is going to be a a big winner.
For us so.
I don't think Tommy has any trouble at all translating into that environment and.
You don't we're leaning into at really hard.
And it's working where we've got those products than we got a lot of now they're really checking out.
Great. Thanks, so much better.
Yeah. Thanks, Ed.
Our next question comes from the line ups, Susan Anderson with B. Riley you May proceed with your question.
Hi, good evening, Thanks for taking my question.
If you could talk about the performance across the geography, I guess, Florida, Hawaii, California, and I think you mentioned why New York and I guess were pressured so maybe if you just give us some color on kind of gets it you know that variety of differences in performance is across the geography.
Yes, I'll give you some general timing said it really there's stuff thats kind of all over the place and that's a little bit hard to summarize, but I would say if you look at Hawaii that market's fundamentally shut down.
Right now you know due to travel restrictions tourist can't come in the restrictions on people, but are there. So that market is in the has been fundamentally you shut down.
I'd say, obviously, yet talents in Tommy Bahama in particular, where hawaiis a big stayed for them not to an extra bit away. That's been they're carrying right. Now you know overall, we believe it's a competitive advantage.
To have the strength that we have in Hawaii, but at the moment.
It's an additional burden then you look at California, and they'd currently got a ban on the indoor models being opened them I think we got eight of those.
Roughly.
Stores that fall into that category and so those can't be open at the moment and then of course, New York City is.
Just a very tough situation all the way around them, where we remain closed.
In New York City, then on the flip side, you look at some of that drive too.
Markets and a great example.
For us in the southeast as the best on market, which is down on the Florida Panhandle. The so called.
Third coast down there that's a popular drive to beach destination, that's driven primarily by rental houses not so much by hotels and boy. That's what people want right now they want to be able to load up the family in the suburban.
Go down to a nice how somewhere and just.
Camp out for the week better.
And that markets has been terrific for us another one that's been really interesting is palm springs.
Where we have a marlin bar and people drive over from.
Hey in other parts of southern California normally this time of year, they would quit doing habit until October so.
But this year they got nothing better to do that are not flying anywhere. So we're seeing really good.
Results there on Jupiter, Florida is another one that's been a really strong market and I think that's allowed us snowbirds from the northeast that just never.
When I hope, we got a new Marlin bar that opened in Jacksonville, Florida, The St. John's Town Center, which is kind of where you go. If you were staying in that part of the drug you wanted to get out shopping for the day in that Marlin bar open maybe two or three months been announced junior.
Yeah June and it's just been.
I mean, they are knocking the cover off the ball there it's been fun to watch that one so it's really those drive to kind of vacation.
Estimations and places where.
People, who are fleeing from some of the.
Other parts of the country, you have sort of set up shop, where we're really thriving right now.
Great. That's really helpful and yes, I guess I wanted to get your Thats, how you're thinking about fourth quarter here.
I think typically you would have the reason why now and obviously consumers would be thinking about going on vacation or going someplace, where especially in the colder northern states, which may not happen. This year, particularly in a consumer may not get on a plane. So I guess how are you thinking about your product lineup are you changing it out all four.
Fourth quarter.
I guess, it just getting back to kind of more normalized sales do we need at least investing two or intend to kind of come back I guess.
Well I think for fourth quarter, we definitely adjusted the merchandise mix a good bit I think in all the brands and have shifted to you know we haven't totally abandon our normal approach that we've shifted more heavily till the types of products that.
People like right now in.
What's been selling over the last couple of months as you would expect or things like.
Shorts T shirts polo shirts.
Maybe some like sweaters, a lot of Bath leisure.
Type product swims been doing really well during the summer time.
Beach chairs, we have not been able to keep in stock in Tommy Bahama, and I think a lot of that people buying them for the back yard.
So there are lot of things that work and we've made adjustments to the assortment to.
Comedy Bad in the fourth quarter on the assumption that people still will not be.
Traveling quite as much as they were and then as you know things normalize and you're seeing a lot of it now.
Again, I can't underscore how strong it is in some of these markets flight test and where I think you know people that in the past summers would have been taking.
Trip to Italy, or something or pro bonds and instead, they're staying at home and then just driving.
To be each location. It's the same in the you know a lot of the new England beach areas or not.
This similar.
So there you know I think there are plenty of avenues for us too.
To play into this not think we've been.
Doing a.
Good job of it and again, the habit adjusted or fourth quarter plans.
To the sorta assumption that people will not be traveling and as much.
Great. That's helpful. And then I guess lastly, just on the it sounds like you're still maybe.
Inventory that you'll need that create during third quarter. How are you thinking about just the promotional environment in third quarter across the brands. That's the second question.
Well Lilly will have a little bit smaller flash sale than they normally you have because they actually did part of it early in the were a whole variety of reasons that they did that but they pulled a bunch of AD inventory early into second quarter had a very successful flash sale there.
I will be one at some point during the third quarter, we're not going to called the name out yet or the date out yet, but it'll be a good bit smaller than in past years, and then Tommy is Scott I think mentioned in his.
Comment ordinarily does a pretty significant online clearance and aimed in stores in June July.
That's been pushed out.
Into the third quarter, so I guess, a lesson lilly and a bit more and Tommy and.
And then overall, we're not really planning to be a lot more promotional.
We're shifting some things around a little bit doing things a little bit differently, but we.
We've tried to manage the inventories so, but we don't have to be highly promotional.
Great. That's helpful. Thanks, so much but that's okay. Thanks.
Our next question comes from the line of Steve Marotta with CL King You May proceed with your question.
Good afternoon, everybody, Tom considering that your customers can't come to you and Hawaii and other destinations.
I'm, assuming you're trying to go to them from a digital marketing standpoint, you talk a little bit about how you're engaging the customer and keeping the brand to top of mind for them and converting digitally.
Yes, so to see Saar E commerce results in the quarter were really really strong with 52%.
Your every year growth Lilly was the strongest in I think that's because they.
Have you have been strong in digital marketing.
For years, that's been a one of that really there I guess arguably the primary marketing vehicle has been digital marketing and.
There are quite at that and add at leaned into at a lot of its social media driven.
With a lot a page social this year.
What we've been doing and it's worked for them.
Tommy historically has.
Has depended a lot more heavily in the really good at this they do a great job abusing the stores not only to sell.
Hi, guys in the stores, but is a big customer acquisition vehicle, but ultimately helps.
Fuel E Commerce, and obviously that's been.
Challenged.
A bit this year with stores closed for a while or more than a bit that's been challenged this year with close stores closed for eight weeks or so and then a gradual reopening in traffic still way down so.
Timings pivoting towards digital.
And I think doing a good job bribing in that direction, but there you know there.
That has not been their primary method in the past and the way that it is in Lilly and then in the smaller brands I think there.
I've probably.
Somewhere in between.
And doing a great job.
As well and then across all brands of course, we're sharing all the.
Marketing techniques and all in helping them to old learn from each other.
That's helpful and my follow up question is Scott as far as the expense reductions go in the second quarter can you talk a little bit about whats permanent.
And I guess theoretically what could potentially flex as you.
As you recoup some sale, but thinking about the permanency of some of these introductions would be helpful.
And also in the second quarter again in May the stores were in essence shutdown. So you had a lot more rollout employees, but we think we'll be at least 10% lower year over year in SGN in Q3 in Q4, So yes, I think thats more the permanent.
Piece of it so about 10% down in Q3, and four maybe a little higher than that but in that general range.
Thank you that's helpful.
Our next question comes from the line of Donna Telsey.
Advisory Group you May proceed with your question.
As you think about the E commerce business and I think it was around 23% of sales last year. When do you see that going and how do you see that even for next year and we've talked about ecommerce being profitable growth with shipping costs. What we're hearing now potentially surcharges for the fourth quarter how.
Are you thinking is that blend of profitability how much if any impact on earnings. Thank you.
Okay, I'm going to let Scott handle the second part of that question in a minute I'll take the first part and it's hard for me to quantify exactly how big I think ecommerce is going to be next year.
But I'm very confident in say and it'll be a much bigger piece of the pie in 21 than it was 19, hopefully it will be smaller than it is and 20, because that's really been the primary channel for long time, but I think you look 19 to 21.
See a big step up and longer term you know in my mind, it's not hard at all I don't know exactly how many years, but for it to be half our business is done online doesn't.
Strain my imagination that at all in we think Thats a good thing. We're you know we're thrilled about that.
I'll, let Scott talk a little bit about some of the unit that profitability profile in the impact of shipping charges, yes, yes, inc. ecommerce the gross margins do end up being a little bit lower because you do have the.
The freight cost in the picking packing costs. So it doesn't have being up little bit lower margins to start with however, you kind of growth rates would get out there, which you're going to grow that way in stores you'd be opening additional retail units and we're kind of getting this growth on a platform and yet you have to continue to.
Best into platform, but with our average ticket value in our high gross margins, it's still very very profitable business to us and I think it can continue to be very promising future.
Is there any difference by brand.
On the.
He got a huge difference the average tickets are pretty similar in the gross margin is servers for similar.
And you just you know for every box you're sending out you've got a lot of gross margin dollars. There. So if shipping costs you. Another couple of box, it's going to dilute your gross margin a little bit, but it doesn't really move it.
A huge amount, it's very different than somebody that Scott.
Average.
20 dollar ticket in a box and then 50% gross margin a.
A couple of Bucks kills them, if we're at 150 and a high price or mid Seventys gross margin.
Yes, a lot of dollars to work with better.
And can you remind us how big was the Lilly flash sales for the third quarter last year, how much it did it contribute to the topline.
Yes.
It was about $31 million.
So it was a huge sales so we'll still have a heavy still be very nice, but we did 15 million in.
Second quarter so.
Some of it so we did.
Still a little bit from the third quarter sale will still have a meaningful sale, but just won't be at that 31 million level.
Thank you.
Ladies and gentlemen, we have reached <unk> and the todays question answer session I would like to turn the call back over to Mr. Han shop for closing remarks.
Okay. Thank you Laura and thanks, all of you for your interest in your continued support.
Stay safe and we look forward to talking to you again in December.
Thank you for joining US today. This concludes today's conference you may disconnect. Your lines at this time. Thank you for participation have a great day.
Okay.