Q1 2022 Chico's FAS Inc Earnings Call
Welcome to Chico's Fas first quarter 2022 conference call and webcast.
All participants will be in listen only mode.
Please note this call is being recorded.
I would now like to turn the call over to corporate and for David Oliver Mr. Oliver. Please go ahead, good morning, and welcome to the Chico's Fas first quarter 2022 conference call and webcast for.
For reference the earnings release can be found on our website at <unk>.
Www Dot Chico's Fas Dot com under press releases in the Investor Relations page.
Today's comments will include forward looking statements regarding our current expectations assumptions plans estimates judgments and projections about our business and our industry, which speak only as of today's date you.
You should not unduly rely on these statements.
Important factors that could cause actual results or events to differ materially from those projected or implied by forward. Looking statements are included in today's earnings release, our SEC filings and the comments made on this call.
We disclaim any obligation to update or revise any information discussed on this call except as may be otherwise required by law.
Certain non-GAAP measures may be referenced in today's call.
The non-GAAP reconciliation schedule is included in our earnings presentation posted this morning on the Chico's Fas Investor Relations page.
Now I'll turn the call over to our CEO and President Molly Lincoln Stein.
Thank you David and good morning, everyone fiscal 'twenty two is off to a great start with year over year comparable sales up 41% and 11% over 2019.
Along with EPS that was well above the high end of our guidance.
This strong financial performance and continued momentum and demonstrate that our strategy is working.
We continue to leverage our proven business model and execute against our strategic pillars, and we are seeing the benefits in our results.
After achieving a successful turnaround our team is focused on delivering our three year growth plan and great progress is underway, let me highlight some key accomplishments for the first quarter.
We posted 28 cents diluted EPS driven by the 41% comparable sales growth along with significant gross margin expansion and diligent expense control.
Our strong first quarter sales growth in both our store and digital channels was boosted by key enhancement in product and marketing that drove full price selling and higher average unit retail.
White house Black market with the standout in the quarter with comparable sales growth of 65%.
Driven by the introduction of new fabrics, featuring stretch and versatility supporting her work from anywhere and neat.
White house Black market generated higher AUR.
Elevated full price selling and positive comparable sales to 2019.
Driven by continued diligent inventory discipline with on hand inventory below pre pandemic levels.
Chico's delivered exceptional sales gain for the quarter posting comparable sales growth of 52%.
Customers responded enthusiastically to product innovation and solution featuring fit and comfort.
Chico's delivered sales gains on leaner inventory compared to 2019 achieved higher full price sell through rates and drove increased AUR.
And I'm pleased to report that according to data from market research firm N. P. D. Both white house Black market and Chico's grew faster than the market this past quarter and added meaningful market share.
Soma posted its seventh consecutive quarter of growth over the prior year, achieving a 0.5% sales increase versus last year's first quarter.
So in the core bra and panty business grew 5%.
Driven by the launch of our patent pending Smart cross boarder Fi utilizing first to market technology.
These solid results in our core business were partially offset by a slowdown in the lounge and cozy categories.
Again, referring to N P D data.
Most growth continued to meaningfully outpace the market in non sport bras and panties for the quarter we.
We have a strong position in basic replenishment bra and panty inventory. So we can meet our customers' needs.
We continue to elevate our marketing allocating targeted resources to digital which drove increased traffic and customers to all three brands.
Existing reactivated and new customers were up over the prior year with existing and new customers experiencing growth in the mid teens.
Our total customer count increased nearly 15% over last year's first quarter.
The average age of new customers is also continuing to trend younger across all three brands.
Yeah.
At 40% the first quarter gross margin rate exceeded our outlook by 230 basis points and outperformed last year's first quarter by 730 basis points.
This was driven by higher average unit retail and full price sales combined with occupancy leverage partially offset by elevated raw materials and freight costs.
We demonstrated ongoing cost discipline with SG&A expenses declining to 31, 6% of net sales.
The improvement of 300 basis points from last year's first quarter reflects the impact of sales leverage and ongoing benefit of cost savings initiatives implemented in recent years.
Or clearly defined strategic pillars guided our turnaround and keep us focused to deliver our growth strategy. We are customer led product obsessed digital first and operationally excellent. Let me update you on each.
We are customer led focus on community engagement, and creating exceptional and memorable customer experiences.
Our unique brand portfolio is fueling growth through three powerful commerce channel, creating connection community and collaboration and enabling our customers to interact with us in a seamless manner.
Digital is a first impression of our brand and an efficient platform to teach and inspire our customers about our merchandise.
Our physical stores serve as community centers for both connection and self discovery.
As well as the home for interactions with our stylists and brought experts.
And finally, our social stylus and expertly connect the two.
Each of our brands has fiercely loyal customers and we laid the groundwork last year with the new customer data platform that will fuel our new loyalty program.
Our existing loyalty program already have some of the highest participation rate in retail at over 90%.
We launched our new Soma loyalty program in the fourth quarter last year and plan to launch new loyalty program for our apparel brands in the second quarter of this year.
We know our customer and look forward to further solidify our already strong relationship through these new programs.
And we are product of stuffed delivering distinctive innovative premium best in class good that provide beautiful solution, giving our customer confidence and joy.
At each brand we are focused on driving AUR and full price sales growth.
At White House Black market customers enthusiastically responded to versatile dressing in season with fabrics, including time with tailoring with the introduction of stretch crate and luck stretch knit tailoring, which drove her closet refresh for both return to office and work from home Wardrobes.
Premium denim was strong with the launch of new girlfriend style and inspiring dresses were a huge win for the quarter.
Yeah.
At Chico's, we are reinvigorating growth through fit comfort and wearability.
With products like our no iron shirt franchise, our travelers collection and pants and denim featuring our so slimming bottoms and $3 60 foot paneling.
At both Chico's and White House Black market nearly every category grew significantly over last year, demonstrating the product enhancement and innovation are moving both apparel brands forward.
In fact customers appreciate our elevated quality and are receptive to paying for value across our entire brand portfolio.
At Soma, we continue to make investments in cutting edge product innovation, and comfort solution and panties sleep active and especially broth.
We are the destination for all her broad needs and we have developed six key bra franchises, including our newest game changing smart bra Spotify that includes proprietary technology that adjusts to a women's individual body measurements and they fluctuate throughout the month.
At Soma, we are well positioned with replenishment and basic inventory to drive growth, which is especially critical in the foundations business.
We are digital first leveraging technology to engage and deliver to our customers across channels by strengthening our core platform data driven insights and decision making.
In the quarter, we generated strong year over year double digit growth.
Our proprietary digital tools continued to fuel sales and engagement is growing.
Combined digital tools grew 26% over last year's first quarter.
Customers using these tools like style connect in my closet are more engaged and have higher conversion rates and units per transaction and average order values.
For example customers using my closet have a five times higher conversion rate and a slight average and a significantly higher a L E than those not using the feature.
Multichannel customer spend more than three times single channel customers and this group continues to grow and customer count sales and spend per customer in the first quarter.
All three of our brands have now successfully launched apps and sales from the apps are tracking at two times plan driven by higher average order values.
Sales generated are approximately 15% higher than the site average we are pleased that the apps have garnered a four eight star rating on the Apple App store.
We will continue to invest in technology and talent enhancing AI driven customer engagement and science based marketing our digital evolution continues.
We strive for operational excellence.
During 2021 and continuing into first quarter of 2022 we prudently managed our inventory supply chain expenses and real estate.
We also generated healthy cash flow and delivered a strong bottom line.
All of this shows the alignment and commitment in operating our business to the highest standards.
During the quarter, we had exceptional gross margin performance driven by strength in full price sale higher AUR and improved leverage of occupancy costs on higher sales despite increases in raw material.
We actively manage the production calendar inventory flow and the supply chain challenges to assure good arrived on time, while controlling freight costs.
We are focusing on continually improving our sourcing logistics and operational processes to help drive efficiencies. For example, the decision to extend our production calendar by 10 weeks has allowed us to reduce costly airfreight usage and even reduced year over year inbound logistics.
Cost.
Sales leverage and ongoing cost discipline efforts resulted in our best SG&A rate performance in several years.
Now, let me turn the call over to P. J to update you on our financial performance P. J.
Thank you Molly and good morning, everyone.
Our powerful portfolio of three unique brands continues to outperform with each brand contributing to growth and profitability and fueling continued momentum.
During the first quarter, we achieved 41% comparable sales growth over 2021, and we surpassed 2019 comparable sales by 11%.
This performance was driven by the newness and innovation of our Assortments and enhanced marketing efforts that drove full price selling.
First quarter gross margin was 40% compared to 32, 7% last year.
730 basis point improvement in gross margin rate, primarily reflected higher AUR combined with occupancy leverage both of which more than offset elevated raw material and freight costs.
SG&A expenses for the quarter totaled 171 million or 31, 6% of sales compared to 34, 6% of sales in 2021 and was the best first quarter rate in five years.
Higher sales coupled with proactive expense management have enabled us to realize meaningful leverage that will give us more financial flexibility as we continue to grow and invest in all three brands.
For the quarter, we generated $45 million of operating income and posted our highest operating margin in five years at eight 4%. We also generated $57 million of EBITDA nearly a 10 times increase over last year clear evidence of the strength of our operating model, which focus.
It is equally on sales and earnings growth and cash flow.
Shifting to our balance sheet and the strength of our financial position, we ended the quarter with cash of $104 million and capacity on our credit facility of $157 million.
Waiting to total liquidity of over 260 million.
This provides us the flexibility to manage our current business, while making investments to propel future growth.
At the end of the first quarter inventories totaled $326 million compared to $210 million at the end of last year's first quarter to $116 million or 55% increase from last year, primarily reflects on hand inventories to align with higher consumer demand.
And an increase in in transit inventory due to extended transit times, which are currently more than double what we have seen in prior years.
Now.
Looking at sales relative to inventory levels of each brand.
White House Black market on hand inventory was up 46% and well in line with total sales growth of 62, 5%.
Higher in transit is well positioned to ensure a steady flow of newness to meet demand through summer and early fall.
She goes on hand inventory was up 43% and also well in line with total sales growth of 49, 4% in the first quarter.
Interested inventory for Chico's also represents summer and early fall Assortments that we expect to deliver on time to satisfy planned demand for the second quarter and back half of the year.
Total soma inventory, including on hand, and in transit for the first quarter was up just over 40% and 95% comprised of core bras and panties and basic replenishment colors and styles.
In short we believe our inventory is well positioned relative to plan demand for each brand for the balance of the year.
Now, let's shift to real estate.
We continue to actively manage our real estate portfolio to enhance overall store and company profitability. It is important to note that our customers love to engage with our brands and the communities, where they live and our digital sales trend much higher in markets, where we have a physical presence.
We view, our current real estate footprint as a strategic asset and competitive advantage given our prime locations across the U S and.
And we plan to optimize this advantage over the coming years.
At the end of the first quarter, we operated 1264 boutiques compared to 1410 boutiques for the same period in 2019 despite.
Despite this 10% reduction in the store fleet total sales were four 5% above the first quarter of 2019.
Going forward, we plan to open up to 30, almost standalone stores in the back half of this year.
And although we are targeting up to 40 store closures in both Chico's and White House Black market store performance continues to improve and this number will remain a moving target.
Yeah, I will give some color on our outlook for the second quarter and full year.
We expect strong top line growth for the year ahead of our 12, 5% compound annual growth rate target under our current long term plan.
All three brands are well positioned for success with innovative product launches that are resonating with our loyal customer base, while attracting new customers across a wider demographic spectrum.
We see opportunity for continued gross margin expansion through higher AUR and occupancy leverage however supply chain disruptions and inflation are expected to remain a challenge that we are working to navigate as we successfully did in 2021.
We remain highly disciplined unexpected control and have a lean cost structure. Although we are seeing labor inflation in our stores and distribution centers. We view both of these costs as investments that are closely linked to top line growth.
In marketing our second largest expense in extra labor is one that we can adjust as the environment dictates.
We are also excited about the selective investments we were making in e-commerce and marketing platforms that are supporting all three brands and creating a closer more personalized relationship with our customers. This will be key in driving both traffic and conversion across channels to complement higher AUR.
We forecast our cash flow and liquidity will remain strong and provide us with the flexibility to execute on our strategic plan and continue to navigate the current competitive retail landscape.
With that for the second quarter, we expect total sales of 535 to 550 million gross margin rate to be in the $38 seven to 39, 4% range SG&A rate to be in the 31 point to 231, 6% range.
The effective tax rate of approximately 26%.
And diluted EPS of 21 to 26 cents per share.
With our first quarter exceeding expectations, we have raised our full year 2022 outlook and now expect total sales of 2.13 billion to $2. One 6 billion gross margin rate to be in the $38 three to 38, 6% range.
SG&A rate to be in the 32.6 to 32, 9% range.
An effective tax rate of approximately 26%.
And diluted EPS of <unk> 64 to 74 cents per share.
Our planned capital expenditures for fiscal 2022 are $65 million to $70 million allocated approximately one third for digital investments one third for new Soma stores, and one third for supply chain store upgrades and facilities.
In closing, we remain confident in our ability to take advantage of our existing momentum and deliver on our three year plan, we laid out in March.
Our planned targets over two and a half billion in sales by 2024 and includes more than $1 billion of digital sales we.
We are also planning to reach an annual gross margin of 40% at a minimum operating margin of seven 5%.
And we plan to generate cumulative cash from operations of over 400 million. All this would help support an EPS target growth rate in excess of 15% annually. We look forward to keeping you posted on our progress.
Now I'll turn the call back over to the operator.
Operator.
Thank you at this time, we will be happy to take your questions.
Ask a question you May press Star then one on your Touchtone phone.
We removed yourself from queue. Please press Star then two.
Maybe you can just a primary consideration for others. Please limit yourself to one question.
Today's first question comes from Susan Anderson of B Riley. Please go ahead.
Good morning, Alex on for Susan Thanks for taking my question and nice job on the quarter.
My first question just on the comps. So they were all positive for 2019, but I'm. Just curious if you could talk about the store traffic versus conversion and the ABS and maybe even the traffic of the <unk>.
All stores versus off mall stores.
Absolutely and thank you Alex.
So first of all we are excited about what we're seeing in the business and what we're seeing in the customer behavior as it specifically relates to AUR and a D up we are seeing strong customer demand across the three brands. In fact, if we look at our spend per customer our spend per customer is up 20.
22% year over year, and we are experiencing higher frequency and bigger baskets. We are also exhibiting strong healthy customer when we look at the Q1 customer versus what the rolling 12 are that we are actually seeing stronger behavior in AUR and a D. S.
Perfect. Thanks, and then just a follow up on the gross margins for the year.
I guess, how how big are you modeling in excess freight costs and is there anything we should be mindful of as we enter the back half of this year such as excess freight costs paid in the back half of 2021.
Yeah, Thanks, Alex I'll take that one so for this quarter, we reached 40% and that was which was higher than last year in 2019. It was driven primarily by AUR.
Which drove about 400 basis points that was offset.
By about 340 basis points of raw material and freight costs. However, I would note that the majority of that was raw materials and less so on the.
The freight impact.
For the quarter and for the back half of the year, we are managing our mix of the ocean and air So although we expect continued elevated impact from inflation.
We do expect the growth to slow and even in some respects it would be lower than last year, because where we are using them you know more ocean and less freight and that's a function of us extending our our calendar by 10 weeks.
And just managing the inventory better so you.
AUR is outpacing average unit cost so we're going to continue to manage that.
And again throughout the year.
We do expect elevated cost, but again, we're working through it and manage around it.
Perfect. Thank you best of luck the rest of the year.
Thank you Alec.
Our next question today comes from Dana Telsey Telsey Advisory. Please go ahead, good morning, everyone and nice to see the progress.
Do you think about supply chain and price increases where are you in that journey for each of the brands and I think Molly you had mentioned some of the slowdown in loungewear that with some of the pandemic type clothes clothing, how are you planning that going forward and as space being reallocated. Thank you.
Good morning, Dana and thank you.
Fly chain challenges that we've experienced them all the way through 2021 and they have obviously continued through 'twenty two and we have been nimble in responding to these challenges by taking positions in basics and shifting the calendar to mitigate the extended and transit times, we will continue to respond to these new challenges they arise and we'll keep actively.
Managing our production calendar to avoid the costly airfreight until we see the situation changing and as a P. J alluded to we are seeing a favorable based upon our Mexican ocean and air and we'll continue to manage that from a supply chain standpoint, as it relates to categories and how they are.
They are shifting you know this is something that is just a consistent in our business that there are shifts in the business and staying close to the consumer behavior is how we manage that so the lounge category that you mentioned within Soma, we have shifted to our core categories in bras and panties and.
If you look at for the first quarter. According to NPD data the consumer demand for non sport bras and panties fell while pharma share in these categories continue to grow in fact, we had a double digit spread between the market decline and it's almost growth which is evidence that our strategy is working to continue to drive.
Our core bra, and panty business and for the quarter, even though we posted a 5% increase the core bra and panty business grew 5% over last year based upon our launch of the <unk>, which is one of our six new franchises within bras. So we'll continue to be able to drive those core categories.
Offset on what what happened in and lounge.
Got it and then just as you think about planning inventory as we go through the year, how do you look at the cadence of it.
Inventory is up 55% now how do you think about that cadence of growth going forward.
We believe our inventories are appropriately assorted and well positioned for growth in each brand in particular, if you look at the apparel inventories were down 6% compared to the first quarter of fiscal 2019, and the total soma inventory, including on hand, and in transit was up 40%.
Over last year, but if you look at the composition of that Dana you can see that 95% of that inventory is comprised of core bras and panties and basic replenishment colors and styles are marked down inventory is actually down double digits compared to last year. So anything that we had in the law.
<unk> categories that we in the first quarter has been liquidated. So are our inventory position that is over is in core panties and bra, which are not a liability.
Yes.
Thank you.
Our next question today comes from Marni Shapiro with retail tracker. Please go ahead.
Hey, guys, congratulations on a great quarter, and really beautiful assortment P. J if you could just.
Walk through quickly again, I think you said you're going to open up up to 30 Soma has closed 40, each white house Black market. If you just can confirm that and are you opening up any white house, our chico's and then them. All if you could just talk about kind of following up on what David was saying.
Spring summers feels like the peak event wedding period White houses dresses have been absolutely beautiful chico's as well. So how are you thinking about the mix of kind of dress up to more wear to work in the back half of the year or do you feel well positioned for that.
So thanks, Marty so on the store openings, so with regards to sum up we're planning to open up to 30 in the back half of this year. We've identified 28 were working on potentially two more.
So and then going forward, we do expect to continue to to open so Ms pursuant to our three year plan with regards to the White House and she goes we're targeting actually closing up to 40 mm Hmm are mall based chico's and White house, we're not contemplating opening additional stores.
But again managing our fleet as you know is an ongoing you know.
Exercise.
But that's the cadence that's in the plan right now for the fleet.
Yeah.
And good morning, as it relates to our spring summer mix and dress up in the back half of the year. We are we're feeling very good about the position of our inventory we have been very prudent about remaining lean I any in the apparel categories are actually in the fashion and fashion categories as it's probably the best way to say it.
We spent a tremendous amount of time looking at new fabrications to launch and both of the apparel brands and those are not unique to us season, but really are things that have a lot of stretch. So that they can last for any type of occasion, whether she is at home working or whether he is.
Is in the office or even versatility in our dresses and in particular, if you look at the new category that we've launched for the second quarter in Chico's, our dresses have a tremendous amount of versatility and can take you anywhere. So we're very focused on versatility to be able to manage them Talbot.
Customer is is dressing and a much more broad manner. We believe that this is not only a customer change and how she wants to to draft, but we believe this is really just a sea change on how we need to respond to the consumer so add that spring summer mix, we're very pleased with where inventory levels are today.
And as we look at the back half of this year, we have a balance of a basic categories along with fashion. We have some new things that are in the pipeline as well and we just launched shoes in Chico's. We also have a new line in our fabrication that we just launched that we're excited about we also have something new that's coming in White House in July and also in.
We also continue that innovation pipeline as well, we launched a new modified gunning and we also have some new online things that are coming later on this quarter. So we're going to continue driving that innovation pipeline to be able to drive consumer demand and also maintain higher AUR.
Past, especially like through summer. Thank you Mani thank you.
Next question comes from Janet Kloppenburg with jurisdiction Research Associates. Please go ahead.
Well good morning, everyone and let me add my congratulations.
I wanted to just follow up a little bit on online be clear that the lounge.
Lounge, and what other category Molly that softened up.
Did you expect that and not be inventories for the back half plan.
Down or do you see the category bouncing as we go.
Into the remainder of the year.
And in terms of Chico's and White House Black market I was just wondering.
What level of price increases you've taken what any more in on that.
And how.
How much you're thinking about that.
Potential for the promotional environment to.
Heat up as we go through the rest of the year with with perhaps other competitors, having too much inventory in and maybe not inventory that as appropriate as yours.
Inventory that may not be resonating. Thanks, so much yes. Thank you Janet as regards to the health of the inventory we've taken the mountain cozy categories that we needed to that we saw are really at the the change in in Q1, where we see opportunity is in the core categories and in the back half of the year.
For Soma, we will continue to focus on our core categories of bras, and panties and sleep and and that's where we're focused and we believe that we have a inventory and receipts that are aligned to the demand that we see in the back half of the year that P. J mentioned in the outlook as it relates to apparel and price increases and.
What we've taken in in terms of ticket the biggest thing that we've focused on odd Janet is actually newness in the assortment and not just taking like for like items up in prices and so it's been very important that we stayed focused on the innovation pipeline that we're offering new fit features in our bottoms were.
A friend new bodies, and we're offering new fabrications, and even new categories I and in.
In our apparel brands, so that even in even in the bottom by launching Soma. So that we are able to demonstrate to customers that this is what the product does this is why it's extra value and we are not seeing any customers that are having a challenge with a better quality garments that we're giving them and that day.
We are paying for that price point and that is evidenced in our units being up our AUR being up and our a D S being up and also spend per customer being up double digits across the board. In addition to our customer count being up in all three brands. So we believe we have taken the necessary steps there.
It relates to promotions, we have we believe that lean inventories in particular and fashion categories are the key to not going backwards on promotion.
We have actually taken more promotion out of the calendar in Q1 versus last year and are remaining to stay focused on better product better storytelling to be able to manage that and so we are going to remain vigilant.
We are also going to stay very close to the customer behavior and currently what we have not seen and we have not seen a change in the customer behavior.
Well that's great.
Thank you P J.
I was unclear about whether U.
Uh-huh, what you said about the play and the Ocean and all that but I was just wondering.
Does that mean that you have a tailwind on gross margin because of lower because of lower trading.
Trade expense going into the back.
Back half and does that help compensate for some of the raw material question Youre facing right now.
Yeah, John So the back half you know, there's still limited visibility and its always fluid, but what what we can say is because we're managing our our ocean and air better we are seeing lower year over year, our inbound freight costs in the first quarter, which as you know we will accrue to.
Was you know going into the second quarter.
So you know it can work managing that that mix and so there's a little bit of a tailwind right now but.
But you know it's volatile so subtle.
Object to change, but we budgeted.
For higher supply chain.
Costs in the back half.
We remain cautious there.
But even though you are seeing them come down you put it in at a higher level, just because things could change is that how I should read what you just said.
Yeah, we've we've.
Planned in the back half a little bit more conservatively just given you know that the you know the.
How the landscape has changed rapidly so so yes.
You know again, we we had a benefit.
In Q1, we expected benefit in Q2.
Mhm, and we'll continue to to to monitor it.
And what about we seek timely mass is it getting better or are you starting to have.
They have shorter delays.
That's right and I just have one more question on real estate after that thank you yeah, absolutely Janet we believed that it was a key decision to move our production calendar 10 weeks and that has allowed us to be able to have an on time deliveries and also that more favorable mix between ocean and air freight so.
That decision has allowed us to be able to have on time deliveries in fact, our on time deliveries.
We're well over 80, 80% for.
For the for the quarter and the few things that were a little a little later than we had expected work, we're not massively delayed we're only talking about maybe a week and a change in the in a difference of what we had expected so all manageable.
Okay, good and just on the store closing of Chico's and White House Black market.
Could you perhaps be negotiating lease terms P. J that would make the stores P&L more viable and some open.
Yeah, Janet we'd say, we are doing that and in many respects stores that were slated or at risk of a close have come off that that list. So you.
You know we targeted closing 40 to 50 stores last year, we closed you know less than 40, so so yeah. We.
We constantly evaluate the portfolio and negotiating the best deals we can at the same time.
We're seeing productivity at the stores and improve.
So.
That level of store closure could slow.
Thank you very much.
Thank you Janet.
Hello, Ladies and gentlemen, this concludes our question and answer session.
So all of those blocks are available we want going forward for any closing remarks.
Thank you our resolve and continued momentum demonstrates that our strategy is working we are a company with three powerful brands each with a clear path for profitable growth and our pillars of customer led product obsessed digital first and operational excellence continue to guide us.
After achieving a successful turnaround we are now focused on delivering on our three year growth plan and we are off to a great start I want to thank the Chico's Fas team for continuing to deliver these great results and positioning us for an even better future.
Thank you for your interest and confidence in Chico's Fas and we look forward to speaking with you again during our second quarter call in August .
Thank you. This concludes today's conference call. Thank you.
You all for attending today's presentation. You may now disconnect your lines and have a wonderful day.