Q2 2021 Caleres Inc Earnings Call
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Ladies and gentlemen, todays conference is scheduled to begin shortly please continue to stay and buy and thank you for your patience.
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Okay.
Good afternoon, and welcome to the caller Polaris second quarter earnings Conference call. My name is to Wanda and I will be your conference coordinator.
At this time all participants are in a listen only mode.
After the speaker's presentation, there will be a question and answer session to ask a question. During this session you will need to press Star then one on your telephone.
As a reminder, this conference is being recorded.
Yeah.
I would now like to turn the call over to your speaker for today Logan about of course, the Vice President of Investor Relations you may begin.
Good afternoon, I would like to thank you for joining our second quarter 2021 earnings call and webcast.
Yes release with detailed financial tables, as well as our quarterly slide presentation are available at Clarus Dot com. Please be aware today's discussion contains forward looking statements, which are subject to a number of risks and uncertainties actual results may differ materially due to various risk factors, including but not limited to.
The factors disclosed in the company's Form 10-K, and other filings with the U S Securities and Exchange Commission. Please refer to today's press release, and our SEC filings for more information on risk factors and other factors, which could impact forward looking statements copies of these reports are available online the company undertakes no obligation.
I've seen any information discussed on this call at any time.
During today's discussion unless otherwise noted our comparisons will be primarily in relation to the second quarter of 2019.
We believe this to be a more comparable time period for most of our key metrics due to the pandemic related impacts to prevail during the second quarter of 2020.
Joining me on the call today is Diane Sullivan, Chairman and CEO, Ken Hannah Senior Vice President and CFO and Jay Smith, President will begin the call with brief prepared remarks, and thereafter, we'll be happy to take your questions I would now like to turn the call over to Diane Diane Yep. Thanks, Logan and good afternoon, everyone I'm very excited to report.
Short that during the second quarter market trends that emerged in March continued to gain momentum with consumer spending and shopping with intent.
In fact, the consumers' increasing comfort with in person interaction improved visibly around the return to work and school and notably their desire for new and fresh products and styles across categories powered robust demand dynamics.
Our company capitalized on this terrific consumer demand and leveraged our strategic foundation.
There is of course strengthening the power and the reach of our brands and accelerating our digital capabilities leaning into our capabilities and operations and then our strong team really delivered exceptional results in the quarter just ended.
This builds further on the progress made earlier in the year and puts us on track to deliver record annual adjusted earnings per share of between $31.0.50.
Just a few of the highlights in the second quarter, we achieved all time record quarterly operating earnings of $70.0 million and adjusted earnings per share of $20.0
We also exceeded first quarter 2021 sales levels by $37 million.
We generated significantly stronger gross margins, reaching 47, 7%.
And we also made noteworthy progress towards our balance sheet goals and of course continue to focus and engage with our consumers driving deeper and stronger connections with all of our brands.
Overall, our consolidated revenue for the second quarter was 676 million, representing a nearly 6% improvement from the first quarter of 2021 are.
Our adjusted earnings per share for the period reached $20.0 up 59% sequentially and surpassing second quarter 2019 levels by 57 cents and most notably making the highest quarter of adjusted earnings per share in the company's history.
Our gross margins also improved significantly rising 700, and 705 basis points from the second quarter of 2019, as we drove more full price selling as a result of tighter inventory levels due to disruptions and delays across the supply chain.
In addition outstanding trends in our famous footwear business resulted in another quarter of strong cash generation for the enterprise. We once again utilized our free cash to strengthen our balance sheet, reducing our overall debt levels by another 100 million, bringing our total borrowings under our.
Facility to $100 million.
It's worth noting that we have proactively reduced our total leverage by $340 million in just five quarters.
Furthermore, we have recently taken steps to fortify our financial position still further calling a portion of our long term debt and renegotiating the terms of our credit facility Ken.
Ken is going to provide more details around these strategic financial actions in just a couple of minutes.
Notably the results we delivered in the second quarter were accomplished despite the disruptions in the supply chain that resulted in approximately 28% less inventory across the company when compared to the second quarter of 2019.
But before we jump into the segment breakout I want to highlight the progress we've made and the plans we have to grow our declares wide digital and direct to consumer business. During the second quarter, we continued to leverage our previous capital investments digital capabilities and up and our upgraded e-commerce platforms.
To drive an approximately 58% increase from our own dot com sites over the second quarter of 19 and that was even as we saw brick and mortar trends accelerate during the period.
As you know our foundation has been built on putting the consumer first and we are known for Curating, a diversified suite of powerful brands that connect and reach a growing number of consumer segments.
And as a result, our total direct to consumer business and sales represented nearly 80% of our total sales.
With that in mind, we have sharpened our focus and are driving forward.
Even more with our digital first strategies to attract new maintain current and reactivate previous consumers across our entire portfolio of brands.
We view, our enterprise wide customer database and file as a strategic differentiator as well as an asset to drive growth. We are at the early stages of harnessing and exploiting this key strength, but are excited about the potential for value creation.
Let's now move to our second quarter segment results, starting with the standout performance at famous footwear, where we achieved a number of financial and strategic milestones, including record results across all of our major financial key financial metrics.
We continue to execute at a very high level during the quarter capitalizing on our competitive our competitive advantages building further on the momentum that began to accelerate in the first quarter of the year and ultimately closing the period with another record setting performance.
Among the highlights for this segment famous.
<unk> generated quarterly sales of approximately $454 million, an 8% improvement over the second quarter of 2019, and the highest level of second quarter sales in the history of the brand.
As consumer demand improved and sales increased we drove record margins, which reached more than 50% in fact margins improved by 671 basis points when compared to the second quarter of 2019, as we drove more full price selling and reduced promotional activity.
Additionally, our return on sales reached nearly 19%, which is 11 full percentage points higher than the comparable period in 2019 and a record for famous.
Finally, we delivered operating earnings of $90.0 million, which was 54 million greater than the second quarter of 2019 and quite remarkably exceeded operating earnings delivered.
For the entire year in 2019.
I should mention that our second quarter success at famous was broad based as we saw sales growth and our gross margin rate improvement across women's and men's and kids and accessories and across style categories, including athletics.
Casual sandals and boots.
In addition, we saw improvement in conversion in AUR is when compared to the second quarter of 2019, both in store and online and.
In fact, our brick and mortar business during the second quarter increased more than 10% over the second quarter of 19, and our online sales were up more than 50% when compared to the second quarter of 2019, the most comparable period with E comm penetration right now at about 11% of total sales.
Notably conversion on famous footwear Dot com was up 61 basis points.
And the gross margin rate on E. Commerce sales was up more than 200 basis points when compared to the second quarter of 2019.
It's worth noting that momentum has continued as we have moved into the third quarter of 2021.
With brick and mortar traffic up in store for store sales up high double digits versus the comparable period of 2020.
In addition, our third quarter 2021 basis point improvement for gross margin is tracking to be consistent with the year over year basis point improvement that occurred in the second quarter of 'twenty one.
From a product perspective of course trends and our iconic brands are continuing to work in the third quarter.
And more specifically seasonal products look good with boots up double digits and kids off to a particularly good start.
Let's turn now to our marketing efforts for a minute, we're constantly trying to strive to optimize our marketing mix expand personalization across the communication channels, and obviously always try to build that strong emotional connection.
To that end, we have continued to support all of the touch points in which our consumer encounters famous including National TV paid search or online platforms, social media and beyond. In addition, we're highly focused on our consumer database and leveraging our leading assortment of brands.
Locations that are so convenient our enhanced online platform and of course, all of our increasingly popular shopping options to grow our famously you rewards members.
In fact.
When we look at our rewards members, we did experience a 16% increase in new rewards members when compared to the second quarter of 19, bringing the total contactable consumers and our consumer file to nearly 42 million customers.
Looking at each channel we were highly successful through our dotcom site at reactivating previous rewards members, which were up 28% over 19, and retaining rewards members online as well.
Meanwhile, the personal interaction of our store famous store associates also led to an increase of new members that signed up for the program.
So in short famous as strong agile and exceptionally well positioned to take advantage of this dynamic market environment, while disruptions in the supply chain are creating challenges related to our you know our inventory position in the near term.
We're working with our partners to ensure that we have the right product in the right place for our consumers and I really have to make another special call out to the famous team for Justin.
Standing second quarter and in particular, there's so many but I'm going to mention the planning and allocation teams of Nicole and Julian all of those guys that have done a great job of taking this inventory and getting it to the right stores at the right time. So thanks, everybody. Thanks famous for all your great work now, let's turn to the brand portfolio.
The second quarter marked another solid period of progress and the brand portfolio, which achieved a step up in gross margin while sales levels were still recovering.
In fact, the brand portfolio reported earnings from operations in excess of the comparable period of 19, marking a significant milestone in recovering ahead of our expectations, specifically operating earnings improved 306 basis points over the second quarter of 2019 to reach approximately 16.
One 6 million.
This period represented another good example of why a diverse portfolio of brands that reaches a number of different consumer segments and wearing occasions as an advantage.
Leading the way and the solid quarterly performance with Sam Edelman.
Bionic Allen Edmonds and from Blowfish, Malibu, one of our emerging brands.
While responding quickly to consumer preferences is a hallmark of our entire portfolio. These brands are really setting the pace at the moment and continue to exhibit good momentum.
Specifically, both bionic and Sam Edelman turned in strong sales level levels during the period acquiring new customers and their process.
This revenue improvement was driven primarily by their own dotcom sites, which were up 163% and 75% respectively when compared to the same period in 2019.
Furthermore, both brands experienced significant gross margin improvement with Sam Edelman margins, increasing more than 3500 basis points over the second quarter of 19 and at the same times IONICS gross margins increased more than 1400 basis points.
I would be remiss, if I didn't flag in particular, the performance of Allen Edmonds here a.
He was among our hardest hit brands during the worst of the pandemic, but continues to execute our highly effective shift towards a more balanced assortment, reflecting the way the consumers changing and as we've previously mentioned we started to see signs that this improvement in April.
That accelerated as we progressed through the period, notably the brand's E. Commerce sales were in line with the second quarter of 2019 levels.
Are you ours increased as we raised prices and pulled back on promotions and increased traffic in major metropolitan markets have led to improved brick and mortar sales in.
In addition, even as our newer sport and casual styles, which made up nearly 40% of our sales in the quarter continued to resonate with our consumers.
<unk> demand for our core heritage styles actually accelerated on.
On an exciting note Allen Edmonds as the official dress shoe of the U S. Ryder Cup team for this year's event, which is being held in Sheboygan, Wisconsin 45 minutes from our Port Washington Factory wear shoes are made.
The iconic park Avenue style will be worn by the team during the events opening ceremonies and the shoes will be customized with the official Ryder Cup logo and box on the and so if our customers want a piece of history. They can buy this limited edition style as well.
And finally blowfish acted as another strong contributor during the period.
In fact, the brand sales and earnings were up from 2019 levels because of its easy and fresh styling and those things continue to resonate with consumers and particularly with our famous customer.
So a significant part of the performance for the brand portfolio has been in the e-commerce growth as a whole the brand portfolios on own dot com sites were up 64% when compared to the second quarter of 19 with the number of sites experiencing increases in.
Traffic conversion and AUR.
In particular and not surprisingly brand sites that had access to fresh new inventory experienced the biggest increases this improvement highlights and underscores the work that we've been doing to enhance the digital experience spur direct and personal engagement with our consumers and threat and foster deeper connection with our brands.
With our digital acceleration strategy in place and an energized team pointed in the right direction. We're confident that we can continue to build brand power and inspire our consumers and drive growth and profitability across the portfolio.
We truly do believe that this is an initiative this initiative as a and see it as a central value driving components of our long term strategy going forward.
So overall, while we are pleased with the margin performance in the brand portfolio. There is still work to do.
The brand portfolio sales revenues were down 33% from the second quarter of 2019 due in large part to ongoing challenges in the supply chain and limited the ability to quickly chase product and Phil Reorders as.
As we look out we do anticipate supply chain and logistics challenges.
Specifically ongoing long lead times and significant increases in ocean freight and that will likely put downward pressure on our third quarter sales to the tune of approximately $30 million.
That said, we are actively working with our partners to minimize these disruptions and believe we are well equipped to partially offset some of these cost headwinds.
Although the macro environment remains volatile, we see a strong consumer who knows what they want and is ready to engage further with our diversified set of brands.
So clearly we began in the second half of the year very aware of these ongoing dynamics playing out in the marketplace, but are really strengthened by our recent performance.
From this point on and position I'm really highly confident in our ability to control the variables within our control and build upon our recent strong results at famous continued to improve our sales performance in the brand portfolio and of course enhance long term value for our shareholders.
Overall, I am very enthusiastic about our strategy for ongoing value creation and for the opportunities that lie ahead of us fruitfulness.
And with that I'll turn the call over to Ken.
For financial review Ken.
Diane and good afternoon, everyone.
I would like to start by echoing Dan's comments, we delivered an outstanding second quarter, which reflects the power of our portfolio.
The strength of our strategy and the dedication of our Claris team I'm pleased to report that in addition to another strong operating performance in the quarter. Just ended we also continued to advance our efforts to reinforce our financial Foundation and drive forward with our strategies intended to enhance shareholder value.
As we've previously discussed our top priority for cash flow remains debt reduction and we made tremendous progress toward that objective once again in the second quarter.
In total we paid down an additional $100 million in revolver debt during the period.
Other step toward our goal of zero net debt.
During the course of the past five quarters, we've managed our working capital and utilized our strong cash generation to lower our overall indebtedness by $340 million, creating significant long term value for our equity holders in the process.
In addition to our revolver debt reduction, we elected to call $100 million, where half of our outstanding senior secured notes on August 16th week.
We've shifted this long term debt to a revolving credit facility.
You'll see this reflected on our balance sheet at quarter end as the current portion of long term debt with only $100 million of long term debt remaining.
Furthermore, we have recently entered into discussions to renegotiate and renew the terms of our revolving credit facility.
We expect through these negotiations we will extend the credit facility's maturity date by five years and restores to pre Covid terms. This shift in renewal coupled with the additional revolver debt reduction will reduce our annual interest expense by approximately $9 million.
Looking ahead, we expect to close 2021, with an even stronger balance sheet likely.
Likely ending the fiscal year with total debt of around $200 million, which is on par with the debt levels that prevailed free our bionic acquisition.
At the same time during the second quarter, we continued to invest in our business and return capital to shareholders through our recurring dividend, which as you all will recall we maintained throughout the pandemic. We view this as a strong symbol of our firm commitment to rewarding our shareholders for their ongoing support of our business and their confidence.
And our long term prospects for value creation and growth.
Last week, we announced that our board of directors approved our 394 uninterrupted quarterly dividend.
We paid on October one 2021 to shareholders of record as of September 10th.
Now, let's look at a few of our financial metrics in a bit more detail.
As Diane highlighted for the second quarter, we delivered $680.0 million in sales driven by record second quarter sales at famous footwear.
Our consolidated gross margin was 47, 7% up 705 basis points from the second quarter of 2019.
Footwear delivered gross profit margin of approximately 51% in the second quarter.
The 671 basis point improvement from 2019 was primarily driven by more full price selling and a lower promotional environment.
Our brand portfolio second quarter gross margin of 39, 7% was 498 basis points higher than the second quarter of 2019 as brands pulled back on promotional activity in the wake of the ongoing supply chain disruptions.
Our second quarter SG&A expense was $264.0 million during the period were 38, 4% of net sales.
As expected this included incremental expense related to the additional performance based and share based compensation expense associated with our improved operating performance.
Company generated approximately $65 million of cash from operations in the second quarter and as discussed used that cash to reduce our debt levels further.
All in we ended the quarter with a solid balance sheet, consisting of approximately $55 million in cash lower levels of debt and improved working capital position.
Our inventory at quarter end was down approximately 28% when compared with 2019 second quarter and included an approximately 28% decline in famous footwear and a 30% decline for the brand portfolio.
Clothing, a much higher percentage of our inventory in transit and not yet available to sell.
As we look to the rest of the year and as we can continue to work to align our inventory levels with consumer demand, we expect constraints in the supply chain to persist to that end, we will be hyper focused on minimizing these challenges to the best of our ability.
Optimizing and maximizing our current inventory.
Emphasizing trending brands and brands with trending styles, and taking calculated risk in order to drive our ongoing improvements.
Now turning to the outlook for the third quarter and full year fiscal 2021.
As Dan highlighted earlier, we're encouraged by the momentum we are seeing at famous footwear, so far this quarter and the potential for ongoing sales improvement and the brand portfolio.
And although uncertainties remain we're taking aggressive actions to protect that momentum and mitigate macro challenges.
And are confident in our ability to control the variables within our control with that said for the third quarter of 2021, we expect to deliver adjusted earnings per share of <unk>.
Tween, $11.0, and $26.0 per share.
For the full year, we expect to deliver record adjusted earnings per share of approximately $3.25 to $53.0 per share.
Our famous footwear sales in the back half of 2021 are expected to be at or slightly above 2019 levels and our brand portfolio sales are expected to improve to be down approximately 20% to the same period.
In closing the progress we've made during 2021 is significant.
In the near term, we believe our skilled and dedicated team can leverage the strong foundation and our powerful portfolio as well as quickly adjust to and capitalize on this rapidly evolving marketplace. At the same time, we will prioritize our cash flow and liquidity place a higher degree of focus on our long term strategic.
Objectives.
For future growth and create long term and sustainable value for our shareholders with that I'd like to turn the call over to the operator for questions operator.
Thank you Blake.
Ladies and gentlemen, as a reminder to ask a question you would need to press Star then one on your telephone.
So withdraw your question press the pound key.
Again, Thats star one to ask a question. Please standby, while we compile the Q&A roster.
Our first question comes from a line of Steve Marotta with C. L. K Associates. Your line is open.
Diane and Ken Good evening, and Huawei, very very well done in the second quarter and guidance highest congratulations.
Thank you Steve Thank you Steve.
A couple of quick questions as it relates Diane to back to school can you talk a little bit about how you know.
Few puts and takes aside how normal is this season on a weekly basis is it still skewed significantly because of the pandemic or is it tracking somewhat more normal and it's beginning peak entail.
Yeah, Steve I would say, it's fairly normal and we've looked at it you know through compared to 2019, and 20 and looked at even at even the five year average it's.
It's taking a little bit later.
Maybe by a week, but not much and we are seeing a little more of a peak. This season. This year I should say than we saw last year last year was a little bit more of a flat flat line. This year as we saw peak and really tweak 28, something like that so so yes, I would say its return to somewhat more normal and a little bit later.
Got you.
And Ken how much has been air freighted in the first half incremental to what you would normally airfreight, if any and what is embedded in the guidance for the second half.
Yes, theres been very little air freight.
In the first half as a.
As we mentioned you know theres been delays most of the delays have really been in terms of the time early in transit and we mentioned with the brand portfolio inventory at the end of the second quarter.
It's down 30%, we had over $100 million of that inventory that was setting in transit. So it was on the water on its way and therefore as I tried to characterize was not available to sell and so you know to this point, we've not had a lot of air freight we have a little bit.
Baked in in the back half, where we need to make sure we have goods available for for our digital business and we're working with our suppliers to keep inventory flowing but it's you know lead times have continued to be extended for sure.
Yeah, and I was just going to ask that what is the current delay to the best you can quantity quantify it generally.
Well so theres there are two pieces, let Jay.
He wants to give you some specifics kind of jump in here, but there are two pieces. There's the delays on the water right and you know that had went from 14 days to 21 days to you know as high as an incremental 30 days and then there's the delays where.
There's there's factories that have shut down for periods of time with Covid and had delayed receipts and our.
<unk>. So that's on a case by case basis. So I don't know Jay if there's anything in addition to the SEC.
They can buy case by case.
Excellent and one last question just trying to think a little bit well, it's actually twofold as it pertains to your ordering in the spring for spring and summer deliveries next year.
Are you trying to pull forward goods.
And maybe.
Anticipate deliveries.
30, or 60 or 90 days earlier and if so maybe you can quantify that in order to beat the rush if you will.
Yeah. It's a it's a very good question, Steve you know what I would say is that we really started several months ago to begin to add lead times.
To everything that we've been working on both really on the brand portfolio side and again on the famous side, making sure that you know they were really clear about about their buys.
And then secondly, I'm, particularly on the brand portfolio side, Jay has done a great job of working with the teams to try to be narrowing our assortment and trying to go deeper on you know big items, because those assortments in those breasts are really not.
We're not going to be able to.
To build the business on that kind of breadth, we've gotta get much narrower and deeper so we've been doing a lot of work around that.
And then really again continuing to diversify our supplier base, you know not shifting to too quickly in one direction, but making sure that we're shifting our supplier base and everything from you know who's producing our shoes as well as a container resources and and then continuing to make sure we do a great job two one on.
All the consumer insights that help us make good decisions around that as well so.
Anyway. So there's there's a lot there, but youre right. It really is when I look at where the some of the the focus challenges may come it really may come in Q1, with you know Vietnam and a lot of the issues that people are experiencing out of there, but but that's what we're doing to mitigate it.
That as much as we can.
Sure and then just one last follow up as it pertains to spring and summer deliveries can you give us a little bit of a look into what the order book is like right now say compared to two.
2019 at this time.
I don't see that it would be hard for us to judge at this particular time, we really don't look at the order book that same way because you know growing part of our business is coming on Reorders and replenishment and drop ship and a lot of e-commerce piece, but will take a little look.
See if there is a and indicators are that we could get to that would give.
Give you a sense of all of that.
Sure I'll take the balance offline. Thank you.
Thanks, Steve Thank you Steve.
Thank you.
Our next question comes from the line of Dana Telsey with Telsey Advisory Group. Your line is open.
Good afternoon, and congratulations on the terrific results as you saw the environment through the second quarter any specific categories that you would call out deferring one from another and pricing how you're thinking of pricing going forward are there raw material raw material increases that you're taking pricing.
Thank you yeah, okay. Thanks Dana.
Well first of all you know.
In terms of the trends and what we saw throughout the quarter.
Any of the iconic brands that had been performing you know really throughout the spring season continues as himself and the trends that you've seen whether it's in athletic and sport.
Whether it's you know foot bed sandals and crocs all of those things continue to be terrific, but we did see as the consumer was.
You know much more comfortable and ready to go out and go to social occasions.
That opened up dress and sandal and heels definitely.
There were something that the consumer demand it and actually I can tell you from our Sam Edelman business, we're completely out of stock in core sizes.
And things like the Haynesville and the Euro so that says to me that you know there's definitely some pent up demand demand there so that would be a little bit of a sense of what we see and early reads on boots, while it's extraordinarily early seem to be good as well as it relates to price increases in input costs.
And really all of the all of the costs that are that are going up right now, yes, we have.
Definitely taken a look at all of that and are raising prices.
Going into the latter part of the fourth quarter inches and for spring of.
2022.
Jay I think you said, maybe comment a little bit on that in terms of what you're seeing with respect to pricing and maybe a little bit around you know on average what that might look like.
I think our.
First of all our AUR for the brand side.
8% in the second quarter, which.
Was good if we're going to see that I think build as we get into fall I'm really going into the 10% mode. So.
So that's that.
That's where we're going on the AUR front, and we have seen material costs going up as well so that's really aided toward them.
Okay. So I think that Ken anything else on that on that question.
Okay.
Congratulations thanks Dana.
Thank you.
I'm showing no further questions in the queue I would now like to turn the call back over to MS. Diane Sullivan for closing remarks.
Alright, we don't have to.
Uh huh.
We do have one that came up I'm, sorry would you like to take a great fantastic.
It is from Susan Anderson with B Riley.
Great.
Hi, good evening nice job on the quarter and I guess, just a follow up on the back to school question I'm kind of curious are.
It sounds like it's a little bit more normal but are you still expecting it to be a little bit more drawn out versus say 2019 and containing continuing into October.
And then I'm curious just how youre thinking about holiday two it may be a little bit early but as we look into holiday last year. You know its hard very early are you expecting that also to be more drawn out as we saw last year.
Yes, great question, Susan so back to on the on the back to school now I'm looking at the data here right now and I would say, it's it's you know it's elevated for sure over the 2019 levels. The overall volume, but but it's in a fairly similar pattern you know, we'll see how the next couple of weeks play out.
But I would say you know pretty pretty consistent with what with what we had expected and what we've experienced in the past a little bit later, but not not much to show yet and then as we look.
To holiday I think it's a great question. We do think at the same thing that the consumer is going to be excited and thrilled again to be celebrating holidays. We hope like we hope in the in a more normal way so that you know the.
The opportunity that we have during that time period should be you know should be terrific and again with a consistent flow of inventory and making sure. We're trying to supply new items all the time.
You know really helping that we engage her and everyone in terms of looking at our you know our assortments and as fresh and new you know on a much more consistent basis. So I think we're feeling overall you know quite quite good as indicated in kind of our guidance for famous being you know somewhat somewhat.
That just slightly up to 19 so.
Great Great and then I'm just curious I liked the Ryder Cup partnership for Allen Edmonds sounds interesting I'm curious if there's been any reads on the new casual product you have out for the brand or the new updated merchandising and marketing.
Yeah, So I'll turn I'll, let Jay answer that one for about two days into it. So I think it's some very short, but so far we've seen it's our most traffic part of our website at all and it's gotten the biggest hits of anything we've seen so far so we'll.
Ryder Cup cheese.
And then as a specific call out so we're very excited about that and we'll have more to communicate on that very soon and then the casual side is up to 40% right casual and sport.
The casual the sneaker pieces.
I look back to 19, it's almost triple where we were so as a penetration to total so it all feels like we're going in the right direction there and.
And really doing a lot of great things for the brand to change your outcome.
Great that sounds good well good luck in the back half.
Thank you Susan Thank you.
Thank you.
I'll turn it back the call back over to you for closing remarks, okay. Thanks, so much.
Thanks again for joining us on today's call and for your interest and your ongoing support and.
In summary, I think you can tell for all of our comments, we really believe we are well positioned to capitalize on improving consumer sentiment.
All these great new purchasing habits to finish the year in a record breaking manner.
We also believe we are poised to maintain this momentum into 'twenty, two and beyond given the powerful one two punch that we have of our expansive direct to consumer network anchored by famous footwear and our exceptional portfolio valued writing brands in our view are multifaceted platform for engaging consumers is a significant.
And differentiating strengths one that greatly enhances our overall value proposition.
Thank you again and look forward to seeing you on the next call.
Ladies and gentlemen, this concludes today's conference call. Thank you for your participation you may now disconnect.
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