Q4 2021 Oxford Industries Inc Earnings Call
Greetings and welcome to the Oxford Industries, Inc. Fourth quarter fiscal 2021 earnings conference call. At this time all participants are in a listen only mode. A question and answer session will follow the presentation. If anyone should require operator assistance. During the conference. Please press star zero on your telephone keypad.
Please note this conference conference is being recorded.
I'll now turn the conference over to your host Joe <unk> you may begin.
Thank you and good afternoon before we begin I would like to remind participants that certain statements made on today's call and in the Q&A session may constitute forward looking statements within the meaning of the federal Securities laws.
Forward looking statements are not guarantees.
Actual results may differ materially from those expressed or implied in the forward looking statements.
Important factors that could cause actual results of operations.
Of our or our financial condition to differ are discussed in our press release issued earlier today and in documents filed by us with the SEC, including the risk factors contained in our Form 10-K .
We undertake no duty to update any forward looking statements.
During this call we will be discussing certain non-GAAP financial measures.
You can find a reconciliation of non-GAAP to GAAP financial measures in our press release issued earlier today, which is posted under the Investor Relations tab of our website at Oxford <unk> Dot com.
Due to the material impact of COVID-19 on our business. In 2020. We will also include comparisons to our 2019 results and now I would like to introduce today's call participants.
With me today are Tom Chubb, Chairman and CEO , Scott <unk>, our CFO and Anne Shoemaker Treasurer.
For your attention and now I would like to turn the call over to Tom Chubb.
Gentlemen, good afternoon, and thank you for joining us we're pleased to be reporting on what was an extraordinary fiscal 2021 year for Oxford and our plans for an even better year in fiscal 2022 Scott.
Scott will provide additional detail in a moment, but here are some of the highlights each of our happy upbeat lifestyle brands, Tommy Bahama Lilly Pulitzer Southern tide, the Buford Bonnet company Duck head had its best year ever in 2021.
<unk> brands posted strong top and Bottomline growth not only over 2020, but also as compared to pre pandemic 2019 levels compared to 2019, excluding Linda your apparel, which we exited in 2021 net sale.
<unk> increased 9% for the full fiscal year and 8% during the fourth quarter.
On an adjusted basis, our consolidated fiscal 2021 gross margin of 63% operating margin of 15% and earnings of $7 99 per share were all records for Oxford.
While a terrific year for all the biggest contributor to our record earnings was the performance of our largest brand Tommy Bahama.
Sales grew 7% versus 2019 to a record $724 million and adjusted operating margin nearly doubled to 16% over the same timeframe.
Our outstanding results are a testament to strong execution of the strategic priorities, we established to drive a recovery out of the pandemic combined with our straightforward formula for success from a branding perspective across all five brands.
Remain true to our happy upbeat brand positioning and then supported the brands with the class three pillars of any great brand, a plus product a plus distribution and a plus communication.
From a product perspective, we delivered innovated and differentiated product that is true to the DNA yet each of our brands while at the same time being relevant to today's marketplace in consumer.
Among the hundreds of new products, we delivered during the year.
Prime examples include our Tommy Bahama Men's Island zone Chip shot short and women's Palm modern swimwear and Lilly Pulitzer, Our Lux Cotton French Terry Harriet dress.
Along with numerous flux letter conditions and in 700 tied our Sunpower capsule collection.
All of these products are on brand and play well with beyond going trends towards casual assays and easy to wear and easy care and the desire for performance inspired product and our customers absolutely love them.
From a distribution perspective, we continue to evolve our premium full price selling platform to ensure that we are making our brands products and services available to our customer when and where she wants them in our view a customer focused modern distribution.
Platform for any fashion brand should include a balance of company owned retail stores and company owned e-commerce complemented by a strategic wholesale business.
Strategic we mean wholesale business that is brand enhancing profitable for us and our wholesale customer and exposes us to a broader base of consumers who might not otherwise be aware of our brands. We also believe it is important for modern brands.
To provide an experiential element, we provide exceptional guest experiences and our beautiful retail stores and in our very unique Tommy Bahama bars and restaurants, we believe our sales for fiscal 2021 are reflective of a very balanced.
In modern distribution platform with 39% coming from company owned retail 32 per cent for e-commerce , 9% from restaurant and bars and 20% from a wholesale.
From a communication perspective.
As important as ever tab creative content that is compelling and in the modern marketplace.
Specifically tailored to the digital media that dominates the attention of today's consumer.
In addition, it is critical that brands be able to understand and serve the needs and desires of existing customer audiences and identify potential audiences that share those same needs and desires.
<unk> brands need to have the techniques disciplines and skills to effectively and efficiently deliver compelling creative content to those existing and potential consumer audiences in a way that attracts new customers retaining existing customers and encourages all too.
To increase their engagement and spending with the brand.
The measuring stick for our success with these efforts is our customer kpis, where our customer count finished the year at over 2 million active brand customers compared to roughly one 8 million at the end of fiscal 2019.
Our talented highly engaged teams will continue to evolve and update our products and brand messaging to ensure they stay relevant for today's consumer and remain true to each brand's unique DNA.
This has been and will continue to be the key to our success as we deliver long term value to our shareholders.
As terrific as fiscal 2021 was we believe the prospects for 2022 and beyond or even brighter.
The momentum that we created during 2021 has continued into the early part of 2022, and we have outstanding plans to deliver double digit top and bottom line growth on a consolidated basis.
Our focus during 2022 will be on four strategic pillars supported by the foundation of our business our incredible team of people.
First we will grow our brands for the long term.
To do this we have detailed plans to continue improving our clarity on brand positioning and poise.
As stewards of our lifestyle brands, we are in the dream business and ensuring that each brand and inspires optimism and aspirations for happiness is paramount.
<unk> will continue to.
To deliver a plus product.
<unk> distribution and a plus communications.
Second we will continue to enhance our digital and omnichannel capabilities to attract new customers retaining existing customers and drive frequency and spend.
Across the enterprise, we have numerous people processes and technology related initiatives in place, particularly related to unlock and consumer insights and more effective ways and providing amazing seamless customer experiences that will support.
Port and enhance our capabilities in these areas third we will drive operational excellence across the enterprise to better serve our customers and make sure that we are operating as efficiently as possible to support. This initiative, we are focused on topics such as.
<unk> fulfillment and distribution retail real estate strategies.
This has some improvement technology across the enterprise and effectively communicating our ESG initiatives.
Fourth we will continue to manage our portfolio and align our capital structure to drive sustained profitable growth.
Detailed plans include assessment of opportunities to better direct future growth plans refining our brand health metrics to help us better manage our businesses evaluating both organic and acquisition based growth opportunities benchmarking ourselves against <unk>.
Competitors and monitoring our capital allocation strategies over time, including returning capital to shareholders.
Lastly, we have plans to continue to develop our people and our teams to make rewarding careers possible for our people and to ensure the company can execute our strategy now and in the future to do this we are focused on the acquisition and development of exceptional and <unk>.
First talent leadership success in minimizing the impact of the so called great resignation, and maximizing engagement and then effectiveness of remote and hybrid workers.
People are our most important asset and we will continue to invest to ensure that we continue to have the best.
We look forward to updating you on the progress of all these plans as well as our results as this year progresses.
Now turn it over to Scott for more detail about the results from fiscal 2021, and our strong forecast for top line growth and operating margin expansion in fiscal 2022, Scott. Thank.
Thank you Tom.
Our operating groups executed well during 2021 and delivered record performance within each brand as Tom mentioned earlier.
We had a record setting fourth quarter that capped a terrific fiscal 2021, driven by continued strength in e-commerce , greater full price sell through and higher gross and operating margins.
In fiscal 2021 consolidated net sales were $1 2 billion.
Excluding lanier apparel sales increased 9% over fiscal 2019 to $1, one $1 7 billion with a continued shift in the composition of our revenue towards full price direct to consumer.
Our full price ecommerce business grew significantly up 58% versus fiscal 2019 with meaningful double digit increases in each of our brands.
When the bricks and mortar front, our retail stores and restaurants saw particular strength in Florida, the southeast and Texas compared to fiscal 2019.
In fiscal 2021, our adjusted gross margin was 63% compared to 57, 6% in fiscal 2019.
This 540 basis point improvement was fueled by strong full price sales a shift in sales mix towards full priced direct to consumer channels and higher I am use, particularly in innovative new performance offerings.
Higher freight cost, including the use of air freight negatively impacted gross margin by 160 basis points for the full year with a 300 basis point impact in the fourth quarter.
For the full year operating margin increased 650 basis points on an adjusted basis to 15% of net sales driven by improvements in gross margin and leverage within SG&A.
I'd now like to walk you through our projections for fiscal year, 2022, which began January 30th.
And so we look to 2022, we expect our business to remain robust our.
E Commerce business is expected to continue to expand driven by enhanced digital capabilities focused on new customer acquisition retention and increase spend our physical locations are seeing traffic continued to improve and we anticipate year over year sales growth in all regions.
Our strategic positioning to emphasize direct to consumer channels, which represent 80% of our business has enhanced our continued ability to execute well within a disrupted supply chain as our talented merchandising teams continue to create compelling assortments on our sites and retail floors as product.
Arise.
Our ability to navigate supply chain challenges along with our product innovation are also driving a robust forward order book and our wholesale channel.
We expect modest gross margin expansion as we can see benefits of higher <unk>, partially offset but what we expect to be a somewhat more promotional environment. We expect modest SG&A leverage despite inflationary cost pressures, including a challenging labor market.
Putting together these dynamics, we expect to deliver double digit top and bottom line growth with operating margin expansion in fiscal 2022.
First quarter sales are expected to increase from 266 million, which included $12 million of linear or apparel.
To a range of $315 million to $335 million reflective of a very strong quarter to date results in both direct and wholesale channels.
Full year sales are expected to increase from $1 2 billion in fiscal 2021, which included $25 million in linear apparel.
To a range of one to four 5 billion to $1 $2 5 billion in fiscal 2022.
Increased sales reflects double digit increases in our direct to consumer business and a healthy wholesale order book.
Our effective tax rate for fiscal 2022 is expected to be between 24 and 25%.
On an adjusted basis, we expect EPS in a range of $2 65.
To $2 85 and.
In the first quarter of fiscal 'twenty, two compared to $1 89 since last year.
For the full fiscal year, we expect adjusted EPS in the range of $8 75.
$2 $9 15.
Compared to $7 99 in fiscal 2021.
Our business is supported by a strong balance sheet here some highlights.
We ended fiscal 2021 with inventory in excellent shape on an as reported LIFO basis inventory decreased to $118 million at the end of the fourth quarter compared to $124 million in the prior year, while on a FIFO basis inventory increased by 12% excluding.
The impact of linear apparel we.
We expect efficiencies gained through our enterprise order management systems will continue to allow us to do more business with lower inventory levels.
Our liquidity position is strong with no debt and $210 million of cash and short term investments at the end of fiscal 2021.
Capital expenditures in 2021 were $32 million.
And we expect capital expenditures to be approximately $50 million in fiscal 2022, reflecting continued investments in information technology initiatives, new store in Marlin bar growth.
And remodeling of certain loan certain existing locations.
I am pleased to share that our board of directors increased our quarterly dividend from <unk> 42 per share to <unk> 55 per share a 31% increase over the prior level.
To date, we have repurchased approximately 430000 shares at an average price of $87 per share for a total of $37 million, including $8 million in fiscal 2021. Following the December announcement of our board's new share repurchase authorization, we are pleased to find meaningful.
Ways of returning capital to shareholders.
Thanks for your time today, and we'll now turn the call over for questions sure Molly.
Thank you and at this time, we'll be conducting a question answer session.
I'd like to ask a question. Please press star one on your telephone keypad.
Confirmation tone will indicate your line is in the question queue you.
You May press Star two if you would like to remove your question from the queue.
All participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys.
One moment, please while we poll for questions.
Our first question comes from the line of Susan Anderson with B Riley.
Please proceed with your question.
Hi, good evening, Thanks for taking my question.
Continuing in the business.
Yeah.
I was wondering if maybe you can talk about the pricing that you're expecting for this year.
Last year and then also.
Sanctioning of inventory or are you expecting unit.
Yeah really growth to be driven more by pricing.
Yes, so I'll comment on this a little bit and let Scott provide you a little additional detail on the impact on the financials, but we are taking price increases in a very strategic and selective way some of those have already rolled out.
And there'll be more coming in.
In the second half of the year and again, Scott will elaborate on this but I think those will keep US ahead of the <unk>.
Cost inflation that we're seeing.
So power and from an.
Overall growth standpoint, if you look at the double digit growth that we're projecting that's not just price increases.
Unit growth.
As well so we feel really really good about where the business is Susan.
I think that the momentum that we generated in 2021 was really about actions that we took in 2020 and even prior to 2020, we realized the benefits of those actions in 2021, and we'll continue to see yet in 2020.
Two and beyond and then as we elaborated on we're not done yet we've got great strategic priorities for the year that I walked through in my part of the call that I think we're going to continue to.
Enhance our ability to reach and serve the needs of even more customers.
Scott do you want to elaborate more on the pricing, yes, as Tom mentioned it yes, it's Tom mentioned, it's both pricing and units and it's pretty balanced between the two and our price increases or are there some in for spring, but there'll be more and for some are and even more in for fall resort. So.
Goal was to make sure we're moving price to stay ahead of some of the input cost pressures, we have and I think we I think we will accomplish that and we do expect to expand modestly expand gross margins, even though we might be a little more promotional just having more inventory and I think the whole market will be a little bit more promotional than last year.
And I think we'll still be able to expand gross margins in this environment.
Great.
And then if I could just add one follow up maybe if you could talk about what you're expecting from well by brand for this year and then also just on the Tommy brand Tani.
Tommy Bahama can you talk about the performance.
On one.
And then how youre expecting performance.
Yes.
Yes.
I'll start and then let Scott again elaborate on a few things, but in terms of growth across all of the brands, it's really pretty balanced I mean, they all again are going to have a terrific year at least that's what we're forecasting they all had record years last year incredible top and.
Bottomline growth and we've got more of that across health brands again for this year and then on Tommy men's versus women's.
What I'll tell you Susan hints that men's is incredibly hot and women's is even harder right now it's really just unbelievable to see what's happening in our women's business.
We've had a couple of things that have happened we've had.
I'd tell you, where you simply where we did a million dollars of womens sportswear and our online business.
Which is sort of a milestone that we've never reached before in a single day we've had.
In the month of February for months, most much of the month, our womens business online was actually bigger than our men's business mens was growing very robustly, but women's was growing even faster and again. This is not a fluke Susan these are very.
Liberals markets that have to do with the way that we've set up our sourcing we have completely realigned.
The last several years the way that we're designing product the merchandising of our line. So a couple of years ago, we were kind of upside down and had two thirds fashion one third Spacex now we've flipped that so we've got the predominance of our inventory.
Dollars are in more core type.
Products, which is a much better way to drive the business, we still have fashion.
But we're.
But we're much more balanced in that regard.
And then our marketing and I'm sure you've paid attention to Susan.
Susan we're we're leaning very hard.
To our great women swim business.
As a way to really introduce women and get them to look at the brand.
So.
You've noticed online we've done a lot of marketing with that and it helps bring women. In then they would come in they see everything thats in the line and they love it they buy it.
And it's just it's a really really great story so.
The total business is super strong men's is very very strong and growing rapidly, but women's is even stronger right now and we'd love to see that it's just a great story all the way around.
Great.
Let me now.
Full.
It was a little over 32% in our full price.
Retail and E com business and that was up from about just over 30% and 19.
It was around 29% in 'twenty.
But 19 it was a little over 30 now we're little over 32. So we gained two points of share in 'twenty, one and as Tom mentioned, we're on pace to gain again in 'twenty two and Thats.
With men's growing so to getting two points in women's when you're at 30%.
Men's is growing you understand how the math works, you've really got to be doing well and it's just it's great to see.
Yeah, that's great. Thanks, so much you guys. Good luck.
Thank you Susan.
Our next question comes from the line of Steve Marotta with CL King <unk> Associates. Please proceed with your question.
Good evening, Tom Scott and congratulations as well on a terrific fourth quarter, Tom can you talk a little bit about supply.
Supply chain at this moment what flow of goods looks like right now what do you expect that to look like say three to six months from now and maybe what you expect it to look like by the end of the year.
Yes, no no question about it we are seeing some supply chain had a slide everybody else.
And the industry is I would tell you that.
I'll start with saying that I think our teams have done just a phenomenal job.
Managing those supply chain issues, being very agile and nimble and mitigating the impact of them, but we've got sort of delays in the factories with COVID-19 issues and they're not having full workforces <unk> happened.
The.
Shut down for some period of days.
We've got delays in the <unk>.
Inbound shipping we've got delays in the ports in the United States.
Same things that you're reading about everywhere all in Thats, probably lengthened out our product cycle time by somewhere in the 6% to 12 week range.
We've compensated for that by buying <unk>.
Significantly earlier than we did in the past and Thats.
One of the things that we're doing and then on the receiving end and Steve you've heard of this heard this from us before but we're being very nimble and agile about.
Putting out on the floor the product that we have in some cases things end up being late.
Just sort of re merchandise the line and work with what we have and then when the stuff comes in.
Right.
Merchandise it into the floor at that point and I've really been very successful and that's been a great learning for us.
In some ways. It's one of those lessons that you would hate to have to have learned.
What we've learned is that we can do that and still make the consumer very happy and with our business being so direct to consumer.
Driven we've got the ability to do that with it being 80% direct to consumer we can we have our destiny in our own hands.
But to do that and.
While we would prefer things to get back to a more normalized situation and they will.
<unk> I think we're doing a great job of handling it and as you can see.
It's really not hurting our results.
And then as the year progresses do you see it getting any easier or are you still see a six week delay three to six months from now and maybe towards the end of the year as well, yes, I think some of the freight issue so start to alleviate somewhat as the year progresses.
<unk> side and delays at the factory I, certainly hope so but I.
I don't know that we're in a position to prognosticate on that too much.
And I think what we'll do is we'll keep hoping it gets better and keep dealing with the situation as it unfolds.
I am very confident in our ability to handle it I think it proved over anything over the last two years is that we can deal.
With the delays and other supply chain issues.
Sure I understand that.
Yes go ahead.
So with our price points in margin structure, when we do have to airfreight, yes. It does its a little headwind to gross margin, but we still have a lot of margin. So we are we're still air freighting, when we need to a little bit less than we were in the third and fourth quarter right now, but if we need to.
There is an interruption and we need to put goods on a plane, we can still do that.
Yeah.
That's helpful and Scott there looked like there was a step function and royalties in the fourth quarter can you talk a little bit about why that was and if that's expected to occur in the current fiscal year, yes.
Yes.
We had a couple in royalties and other the $33 million number for the year had about $15 million.
Gains that we adjusted out in our adjusted earnings.
And so <unk> 15 of that was we would get to adjusted earnings we have taken that out.
And that was.
The sale of our minority interest in the sale of a distribution center.
Gotcha rebate when they are apparel, so those are nonrecurring type.
The distribution center hopefully be nonrecurring.
Yeah.
And then the rest was just we had good growth in just most of our licensees also on even after you adjust.
That $15 million out.
So I.
I think as our business has been strong some of our licensees business has been strong.
That's helpful. If I could just slip one more in and I think I know the answer to this but I also just wanted to.
Make sure given your demographic I doubt that the stimulus actions last year really helped but did it help at all on the margin. There are quite a few consumer soft goods companies that are talking about a relatively difficult comparison from sort of late March to early may given that bump up in <unk>.
Activity in the year ago period, I'm wondering how you felt that and your results last year during that timeframe and if those expectations are built into your guidance. This year. Thanks.
We certainly don't think that's what fueled our business last year, and we don't really expect much of an impact this year at all.
There was a step up as we got into.
Early February is a little soft last year, it got better, but we don't think it was stimulus oriented and we don't know.
Sure.
We don't know our business is really good right now and we expect it to continue to be strong.
And no doubt seen all of the macro stat, some the level of.
Demand deposits in the United States, and I think there's two and a half trillion dollars more in checking accounts demand deposit accounts.
More than there was at this point in 2019, there is a lot.
A lot of cash out there and we just haven't seen any indication today that people are slowing down in their spending.
Sure very helpful. Thank you.
Okay.
And our next question. Thank you.
<unk>.
Alright next question comes from the line of Dana Telsey with Telsey Advisory Group. Please proceed with your question.
Good afternoon, and so nice to see the progress.
As you think about it.
As you think about the shaping of the first quarter, obviously $2 65 to $2 85 to guide it seems like the highest first quarter. We have had and typically second quarter is the best quarter of the year.
We should be watching on the shaping of the year in terms of the nuances that that that are out there and I just have a <unk>.
Your point that the first quarter of year over year, we would expect to be our strongest year over year compare but we still with us.
Spect is always Q2 should.
A little bit bigger in Q1, and then Q3 is always our softest quarter. So we expect that cadence to be somewhat similar but just not the year over year.
Growth in the out quarters that we'll see in Q.
And thats not a slowdown.
Last year first quarter, we didn't was not as strong as the remaining three quarters. If you remember it was a good first quarter, but it wasn't anything like as good as the other quarters were relatively speaking you on that.
The business Didnt really wake up until about mid March last year. So we were halfway through the quarter before things really started to perk up and I think thats, just everything to do with where the country in People's Mindsets were with respect to Covid.
Yes.
And then regionally, Florida, Texas, Hawaii, what are you seeing regionally how's that doing and what was impressive. So impressive is that with Lilly Pulitzer obviously, the flash sale.
Clearance with higher margin and exiting the linear sales sales from the existing brands actually were higher than made up for it so the opportunity for sales growth going forward.
Going to have better than expected in 2022, but it's more likely come from the sales from the margin side in your perspective.
Okay.
Probably the sales.
I think the margins are really quite robust and there are.
There are some pressures out there on margin with all of the inflationary stuff going on.
And then the fact that probably the market will get a little bit more promotional this year. So there are some margin pressures. We don't think we're going to go backwards. We think we're going to gain a little more but we certainly won't have anything like the gain we had last year and I think the upside would be with the with the sales really.
And then regionally Dana.
Strong regions from last year continued to be really strong so Florida, Texas the southeast.
Those traditional sort of Sunshine markets, but we are starting to see some really great signs of life.
Some of the markets that really didn't wake up that much last year in the northeast mid Atlantic and Midwest.
They're starting to.
Improve there, which is just more opportunity for us frankly.
Okay.
And the uptick in Capex, the $15 million from the 32, how would you bucket that.
Technology.
Ology is probably 60% to 65% of our spend we've got some pretty major systems initiatives going on but the Lilly in Tommy.
Do have some new stores, even in our smaller brands Southern tide ended the year with four stores, we got three leases signed and hopefully we will get another one beef upon it which opened their first store very late in the year or they've got another lease on and Theyre looking for others, and then Lilly and Tommy will open locations.
Harlan bar pipeline is still we're still trying to fill it up so right now we've only got one Marlin bar.
And the numbers for 'twenty, two and we want to get back to that say four to six a year pace and we're working hard to get that pipeline for 'twenty. Three 'twenty. Two there is such a long tail on those that I don't think we'll get more than one opened in 'twenty two.
<unk> technology being we've got some pretty a lot of Remodels also we always keep our model.
Our model when we need to we've got a fair amount of money going there, but technologies big data and the biggest piece within the technology space broadly define as data or excuse me digital and omnichannel sort of capabilities that were.
Really trying to step on the gas, we like what we have but we want to.
Keep our foot on the gas there.
Okay, great. Thank you.
Thank you Dana.
And our last question comes from the line of Paul.
<unk> with Citigroup. Please proceed with your question. Thanks.
Thanks, It's Tracy Kogan for Paul I had a follow.
Up on the questions about freight and supply chain.
Before.
I think you guys said youre expecting it to get better as the year progresses, and I think you said it was 300 basis points of pressure in the fourth quarter I'm just wondering what your guidance.
<unk> four.
Actual freight pressure for the year and then I have a follow up thanks, yes.
We were 100 for the whole year were 160 basis points, but it was very heavy second half oriented. This year. We've got some pressure in the first half for the year, we would expect it to get a little bit better in the second half and for the year, we had a little bit less than the 160 basis points pressure for the year.
Thank you and then I wanted to ask about your.
Customer counts I was wondering how your customer counts have grown.
Since 2019 at both Tommy and Lilly and then I was also wondering I think you have a rewards program for the Tommy restaurant business, but was wondering about.
Loyalty programs at Lilly and Tommy in EMEA apparel. Thanks.
Yes, so I'll start with the.
The loyalty programs and we do have loyalty programs in our smaller brands.
Working one on one and wood pellets or and I suspect at some point that will have one and.
Tommy Bahama as well, but what we wanted to Tracy has made sure that we've got.
Differentiated loyalty programs that really make sense for us.
Customer values.
It's an opportunity for us going forward.
<unk> did about what we've got coming in Lilly and we're excited about what we've got going in the three smaller brands and then on the customer count.
Question as we mentioned in the prepared remarks.
In aggregate our active customer.
Brand customer count.
From 2019 to 2021 increased from one 8 million.
$2 million I will tell you that that was across all five brands all time had.
Significant increases in their customer accounts.
From the end of 2019 to the end of 2021, which we think is.
Sure.
Great in the case of the strength of our brand and products and our ability to define and reach the appropriate audiences connect with them with compelling creative content and get them to come visit us engage with us.
Keep our existing customers and add new customers and I think the proof is in the pudding I think the numbers back up.
That we've delivered on that.
What do you guys define as an active customer.
That's somebody that shopped within the last 12 months. So those are trailing 12 month numbers.
So if somebody bought 18 months ago, They don't show up in that count.
And that's something that we.
We're continuing to look at and study a lot of those people probably consider themselves.
Loyal customers that just haven't been in a while.
But the way that we're counting that for purposes of this reporting is trailing 12 months.
Thanks very much.
Absolutely.
And we have reached the end of the question and answer session and I will now turn the call back over to Tom.
Alright. Thank you very much symbolic we appreciate all your interest today.
Stay safe and we look forward to talking to you again in June .
Yeah.
And this concludes today's conference and you may disconnect. Your lines at this time. Thank you for your participation.
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