Q1 2025 Shoe Carnival Inc Earnings Call

Good morning, and welcome to shoe Carnival's first quarter 'twenty 'twenty four earnings conference call.

Operator: Good morning, and welcome to Shoe Carnival's first quarter 2024 earnings conference call. Today's conference call is being recorded and is also being broadcast via webcast. Any reproduction or rebroadcast of any portion of this call is expressly prohibited. I would now like to introduce Mr. Steve Alexander with Shoe Carnival Investor Relations. Mr. Alexander, please go ahead.

Speaker Change: Today's conference call is being recorded and is also being broadcast via webcast any reproduction or rebroadcast of any portion of this call is expressly prohibited I would now like to introduce Mr. Steve Alexander with shoe Carnival Investor Relations. Mr. Alexander. Please go ahead.

Thank you and good morning, thanks for joining us today.

Steve R. Alexander: Thank you and good morning. Thanks for joining us today.

Steve R. Alexander: Earlier this morning, we issued our earnings press release for the first quarter of 2024. If you need a copy of the release, it is available on our website in the investors section. Joining me on today's call are Mark Worden, President and Chief Executive Officer of Shoe Carnival, Carl Scibetta, Chief Merchandising Officer, and Patrick Edwards, Chief Financial Officer.

Speaker Change: Earlier. This morning, we issued our earnings press release for the first quarter of 2024.

Speaker Change: You need a copy of the release it is available on our website in the investors section.

Speaker Change: Joining me on today's call are Mark Worden, President and Chief Executive Officer of Shoe Carnival crossed your data Chief merchandising Officer, and Patrick Edwards Chief Financial Officer.

Steve R. Alexander: Management's remarks today may contain forward-looking statements that involve a number of risk factors. These risk factors could cause the company's actual results to be materially different from those projected in such statements. Forward-looking statements should also be considered in conjunction with a discussion of risk factors included in the company's SEC filings and today's earnings press release. Investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of today.

Speaker Change: Managements remarks today may contain forward looking statements that involve a number of risk factors. These.

Speaker Change: These risk factors could cause the company's actual results to be materially different from those projected in such statements.

Speaker Change: Forward looking statements should also be considered in conjunction with the discussion of risk factors included in the company's SEC filings and today's earnings press release.

Speaker Change: Investors are cautioned not to place undue reliance on these forward looking statements, which speak only as of today's date.

Steve R. Alexander: The company disclaims any obligation to update any of the risk factors or to publicly announce any revisions to the forward-looking statements discussed on today's conference call or contained in today's press release to reflect future events or developments. Today's call will reference non-GAAP measures. The non-GAAP or adjusted results referenced exclude purchase accounting, merger, integration, and transaction costs related to the acquisition of Rogan's shoes. A reconciliation of GAAP to non-GAAP results is included in this morning's release. And with that, I'll hand the call over to Mark.

Speaker Change: The company disclaims any obligation to update any of the risk factors or to publicly announce any revisions to the forward looking statements discussed on today's conference call or contained in todays press release to reflect future events work developments.

Speaker Change: Today's call will reference non-GAAP measures, the non-GAAP or adjusted results referenced exclude the purchase accounting merger integration and transaction costs related to the acquisition of Rochas shoes are.

Speaker Change: A reconciliation of GAAP to non-GAAP results is included in this morning's release and with that I'll hand, the call over to Mark.

Mark J. Worden: Thank you, Steve, and good morning, everyone. Let me start today by saying that sales momentum is accelerating across the company. We gained significant market share during the quarter, our new digital first marketing plans worked, and we sold a ton of sandals at Shoe Carnival. During the quarter, net sales grew 6.8% to $300.4 million.

Mark J. Worden: Thank you, Steve and good morning, everyone.

Mark J. Worden: Let me start today by saying that sales momentum is accelerating across the company.

Mark J. Worden: Gained significant market share during the quarter, our new digital first marketing plans work and we sold a ton of samples at shoe Carnival.

Mark J. Worden: During the quarter net sales grew six 8% to $304 million or sales growth surpassed the high end of our expectations for the quarter and there are four key drivers I would like to highlight.

Mark J. Worden: Our sales growth surpassed the high end of our expectations for the quarter, and there are four key drivers I would like to highlight. First, ShoeStation net sales grew faster than planned, increasing by low double digits as we entered new markets, engaged new customers, and continued to rapidly grow share in the existing markets we serve. Second, e-commerce sales continued to grow double-digits during the quarter, driven by the relaunch of shoecarnival.com in the third quarter of 2023.

Mark J. Worden: She's station net sales grew faster than planned increasing low double digits as we entered new markets engage new customers and continued to rapidly grow share in the existing markets we serve.

Mark J. Worden: Second E Commerce sales continued to grow double digits during the quarter driven by the relaunch of shoe Carnival Dot com in the third quarter of 2023 that relaunch enhance the customer experience is driving significant gains in customer conversion and ultimately and sales growth <unk>.

Mark J. Worden: That relaunch enhanced the customer experience and is driving significant gains in customer conversion and ultimately in sales growth. Additionally, our launch of shoestation.com in early 2023 continues to drive growth as the platform scales customer acquisition. Third, Rogans, which we acquired during the middle of February 2024, delivered first quarter net sales in line with our expectations.

<unk>, our launch of shoe station Dot Com in early 2023 continues to drive growth as the platform scales up customer acquisition.

Mark J. Worden: Third <unk>, which we acquired during the Middle of February 2024 delivered first quarter net sales in line with our expectation.

Mark J. Worden: The integration is progressing ahead of schedule, and we continue to be on pace to deliver the increased synergies in fiscal 2025 as discussed last quarter. Fourth, and most encouraging to me, during the quarter, trends significantly improved at our Shoe Carnival banner when we kicked off our new Digital First marketing campaign. The customer response to our sample assortment has been outstanding, with total sales growth of 14% in samples during the quarter and accelerated sales growth in April after the Easter holiday period ended. The results are clear.

Mark J. Worden: The integration is progressing ahead of schedule and we continue to be on pace to deliver the increased synergies in fiscal 2025 as discussed last quarter.

Mark J. Worden: Fourth and most encouraging to me during the quarter trend significantly improved at our shoe Carnival banner, when we kicked off our new digital first marketing campaign.

Mark J. Worden: Customer response to our sample assortment has been outstanding with total sales growth of 14% and samples during the quarter and accelerated sales growth in April after the Easter holiday period ended.

Mark J. Worden: Our new digital-first marketing approach and compelling product assortment are working. We launched the new sandal season Easter holiday marketing campaign about a month into Q1, and accelerated investments as spring weather progressed. Prior to the campaign launch, sales were soft in January and February, with a declining sales trend similar to non-event periods in the prior year.

Mark J. Worden: The results are clear, our new digital first marketing approach and compelling product assortment are working with.

Mark J. Worden: We launched the new sandal season, Easter holiday marketing campaign about a month into Q1 and accelerated investments as spring weather progressed.

Mark J. Worden: Prior to the campaign launch sales were soft in January and February with a declining sales trend similar to non event periods in the prior year.

Mark J. Worden: Once we started the new campaign, we saw an immediate improvement in results. During March, sales accelerated to single-digit growth early in the month and continued to accelerate significantly in the days leading up to Easter, with double-digit growth across both the Shoe Station and Shoe Carnival banners. Coming out of the Easter holiday event period, we saw encouraging sandal buying trends, so we continued to engage customers with our marketing campaign focused on social, digital, and targeted CRM activities. While April is not what I would consider a non-event period, due to it being an important seasonal event month for us, it did provide some early insights into customer buying behavior.

Mark J. Worden: Once we start the new campaign, we saw an immediate improvement in results during.

Mark J. Worden: During March sales accelerated to single digit growth early in the month and continue to accelerate significantly in the days, leading up to Easter with double digit growth across both the shoe station and shoe Carnival buyers.

Mark J. Worden: Coming out of the Easter holiday event period, we saw encouraging sandal buying trends. So we continue to engage customers with our marketing campaign focused on social digital and targeted CRM activities.

Mark J. Worden: While April is not what I would consider a non event period due to it being an important seasonal event, but for US. It's it provides some early insights about customer buying behavior.

Mark J. Worden: We need to see this play out over a longer time period to understand that this is a sustainable trend in 2024, but I can share that the customer was far more engaged and motivated to purchase across our banners, across our geographies, and across household income levels in both March and April, as compared to January and February. We will be monitoring this encouraging pattern closely and investing appropriately into trends as they emerge in the future.

Mark J. Worden: We need to see this play out over a longer time period to understand that this is a sustaining trend in 2024, but I can assure that the customer was far more engaged and motivated to purchase across our banners across our geographies and across household income levels in both March and April as compared to <unk>.

Mark J. Worden: January and February we will be monitoring this encouraging patterns closely and investing appropriately into trends as they emerge ahead.

Mark J. Worden: Shifting from our sales growth to financial highlights in the quarter.

Mark J. Worden: Shifting from our sales growth to financial highlights in the quarter, we again delivered sustained margin performance in the quarter, with gross profit margin expanding to 35.6%, representing the 13th consecutive quarter above 35%. Operating income in the quarter increased 7.5%, and pre-tax income increased 8.5% to $23.2 million.

Mark J. Worden: We again delivered sustained margin performance in the quarter with gross profit margin expanding to 35, 6%, representing the 13th consecutive quarter above 35%.

Mark J. Worden: Operating income in the quarter increased seven 5% and pre tax income increased eight 5% to $23 2 million.

Mark J. Worden: Margin expansion over the long term has been a key driver of our profit transformation led by our targeted promotional plans smart buying strategies and growth of our shoe perks CRM membership.

Mark J. Worden: Market expansion over the long term has been a key driver of our profit transformation, led by our targeted promotional plans, smart buying strategies, and growth of our Shoe Purse CRM membership. I'm particularly pleased with the merchandise margin expansion achieved this quarter versus Q1 last year. And at the same time, we were able to grow sales ahead of our expectations.

Mark J. Worden: Im, particularly pleased with the merchandize margin expansion achieved this quarter versus Q1 last year and at the same time, we were able to grow sales ahead of our expectation.

Mark J. Worden: Compared to five years ago, gross profit margin in the first quarter of 2024 expanded 600 basis points and operating income grew 44% on sales growth of 18%, demonstrating our success in growing the business profitably over the long term. Our vision is to be the nation's leading family footwear retailer, and a core strategy for realizing this vision is profitable M&A activity. We've completed two acquisitions in our company's history. Shoe Station, which we acquired in late 2021, and then most recently Rogans, which we acquired in February 2024. We started with Shoe Station.

Mark J. Worden: And compared to five years ago gross profit margin in first quarter 2024 expanded 600 basis points and operating income grew 44% on sales growth of 18%.

Demonstrating our success to grow the business profitably over the long term.

Mark J. Worden: Our vision is to be the nation's leading family footwear retailer and a core strategy of realizing this vision is profitable M&A activity. We've completed two acquisitions in our company's history shoe station, which we acquired in late 2021, and then most recently <unk>, which we acquired in February 2024.

Mark J. Worden: Starting with Schuh station, we completed the integration about a year ahead of schedule and achieve both the efficiencies and synergies that we expected.

Mark J. Worden: We completed the integration about a year ahead of schedule and achieved both the efficiencies and synergies that we expected. A little over two years later, Shoe Station continues to significantly grow sales ahead of the retail footwear category, grow profit, and expand margin. We have added new stores as part of growing the Shoe Station Banner, and we are well positioned to continue expanding our market reach, engaging with new customers, and continue rapidly expanding the Shoe Station Banner in the years ahead.

Mark J. Worden: A little over two years later shoe station continues to significantly grow sales ahead of the retail footwear category gross profit and expand margins. We have added new stores as part of growing the shoe station banner and we are well positioned to continue expanding our market reach and engage with new customers and continue to rapidly expand.

Mark J. Worden: The shoe station banner in the years ahead.

Mark J. Worden: We also launched the shoestation.com website in early 2023, which is driving e-commerce growth. We've fully integrated ShoeStation into our ShoePerts platform and are leveraging our advanced CRM analytics and capabilities to drive deeper engagement with both new and existing customers. Moving on to Rogans, which we acquired in February 2024.

Mark J. Worden: We also launched the shoe station Dot Com website in early 2023, which is driving e-commerce growth.

We fully integrated shoe station into our shoe perks platform and are leveraging our advanced CRM analytics and capabilities to drive deeper engagement with both new and existing customers.

Mark J. Worden: Moving to <unk>, which we acquired in February 2024 were in the early stages of integration and continue to be encouraged with the progress Robbins delivered first quarter 2020 for sales and profit results in line with our expectation and we continue to expect that it will be accretive to our results in fiscal two.

Mark J. Worden: We're in the early stages of integration and continue to be encouraged with the progress. Rogan's delivered first quarter 2024 sales and profit results in line with our expectations, and we continue to expect that it will be accretive to our results in fiscal 2024. We also continue to expect that the level of accretion will increase meaningfully in fiscal 2025.

Mark J. Worden: <unk> thousand 24.

Mark J. Worden: We also continue to expect that the level of accretion will increase meaningfully in fiscal 2025.

Mark J. Worden: As discussed previously, based on the early pace of progress of the integration, we accelerated the timeline, increased the expected synergy amount to $2.5 million, and accelerated the timing of the synergy capture entirely into fiscal 2025, rather than across fiscal 2025 and 2026. Today, we continue to expect full synergy capture in the amount of $2.5 million, and we continue to expect the entirety of those synergies will be realized in Additionally, we are on pace to have Rogans fully integrated into our Shoe Station growth banner operations in early 2025 and expect that Rogans will be a solid source of accretive profit growth in 2025 and beyond.

Mark J. Worden: As discussed previously based on the early pace of progress of the integration, we accelerated the timeline increase the expected synergy amounts of $2 5 million.

Mark J. Worden: It accelerated the timing of the synergy capture entirely into fiscal 2025, rather than across fiscal 2025 and 2020.

Mark J. Worden: Today, we continue to expect full synergy capture in the amount of $2 5 million and we.

Mark J. Worden: To expect the entirety of those synergies will be realized in fiscal 2025.

Mark J. Worden: Additionally, we are on pace to have rogen is fully integrated into our shoe station growth banner operations in early 2025, and expect that <unk> will be a solid source of accretive profit growth in 2025 and beyond.

Mark J. Worden: In 2025 with Rogen is fully integrated we believe that our shoe station banner will be even better positioned to drive sales and profit growth <unk>.

Mark J. Worden: In 2025, with Rogans fully integrated, we believe that our shoe station banner will be even better positioned to drive sales and profit growth. Including Rogan's, Shoe Station is currently at 59 stores, and we expect to surpass 100 store counts sooner than planned as part of our long-term strategy to surpass 500 total stores in 2028.

Mark J. Worden: Including Rogan shoe station is currently at 59 stores and we expect to surpass 100 store count sooner than planned as part of our long term strategy to surpass 500 total stores in 2028.

Mark J. Worden: <unk> station and Rogue is both demonstrate our successful approach to M&A as a key component of our long term growth strategy.

Mark J. Worden: Shoe Station and Rogan's both demonstrate our successful approach to M&A as a key component of our long-term growth strategy. To date, we've largely focused on acquisitions that provide market leadership in their regions, are profitable, and give us the opportunity to expand our market presence or further penetrate existing markets. Going forward, we are well positioned to continue pursuing M&A as part of our growth strategy. Our balance sheet is strong, and we have zero debt.

Mark J. Worden: Date, we've largely focused on acquisitions that provide market leadership in their regions are profitable and give us the opportunity to expand our market presence or further penetrate existing markets.

Mark J. Worden: Going forward, we are well positioned to continue pursuing M&A as part of our growth strategy.

Mark J. Worden: Our balance sheet is strong and we have zero debt, we have the flexibility to consider using equity or modest debt to the appropriate M&A opportunity, but given our solid cash position funding M&A with cash flow from operations has been our approach just as we did with schuh station and Robbins.

Mark J. Worden: We have the flexibility to consider using equity or modest debt for the appropriate M&A opportunity, but given our solid cash position, funding M&A with cash flow from operations has been our approach, just as we did with Shoe Station and Rope. In addition to M&A, another key component of our growth strategy is to continue leveraging our advanced customer analytics and capabilities. By doing this, we can better identify customer priorities at a market level and drive engagement both in-store and online.

Mark J. Worden: In addition to M&A another key component of our growth strategy is to continue leveraging our advanced customer analytics and capabilities by doing this we can better identify customer priorities at a market level and drive engagement both in store and online.

Mark J. Worden: One of the primary focus areas in this strategy is to evaluate data on community characteristics, purchasing trends, product assortment, and mix. We've gained valuable insights about our Shoe Station customer by doing this analysis and have defined many markets where Shoe Station stores can likely outperform. Specifically, we've identified existing Shoe Carnival locations for the customer and real estate characteristics better aligned with Shoe Station.

Mark J. Worden: One of the primary focus areas in this strategy is to evaluate data on community characteristics purchasing trends product assortment and mix.

Mark J. Worden: We gained valuable insights about our shoe station customer by doing this analysis and has defined many markets where shoe station stores can likely outperform.

Mark J. Worden: Pacifically, we've identified existing shoe carnival locations for the customer and real estate characteristics better align with Schuh station.

Mark J. Worden: We're now in the early test and learn development process of Banner Transition, meaning closing an existing shoe carnival store and opening a shoe station store in the market where customer dynamics better fit our growth pattern. These are very early days in executing the strategy, but I'm excited about what the data indicates regarding the potential for profitable growth in the years ahead. I'll have an in-market test to discuss on our next conference call, so stay tuned. Moving now to thoughts on the balance of fiscal 2024.

Mark J. Worden: We're now in the early test and learn development process, a banner transitions, meaning closing and existing shoe Carnival store and opening a shoe station store in the market where customer dynamics better fit our growth pattern is very early days on executing the strategy, but I am excited about what the data indicates.

Mark J. Worden: Regarding the potential for profitable growth in the years ahead.

Mark J. Worden: We have an in market test to discuss on our next conference call. So stay tuned.

Mark J. Worden: Moving now to thoughts on the balance of fiscal 2024 as I discussed earlier, we are encouraged with the sales growth and profitability, we achieved in the first quarter.

Mark J. Worden: As I discussed earlier, we are encouraged by the sales growth and profitability we achieved in the first quarter. We achieved sales ahead of our expectations and grew operating profit even faster than sales. Patrick will provide additional details in his remarks, but given the solid performance in the quarter, today we are reiterating our entire fiscal 2024 outlook. We are only two weeks into Q2, so I do not have a lot to share about this quarter yet. But I can provide a brief update on a few things we are seeing so far in May.

Mark J. Worden: We achieved sales ahead of our expectation and grow operating profit even faster than sales.

Speaker Change: Patrick will provide additional details in his remarks, but given the solid performance in the quarter today, we are reiterating our entire fiscal 2020 for outlook.

Speaker Change: We are only two weeks into Q2, so I do not have a lot to share about this quarter, yet, but I can provide a brief update on a few things we are seeing so far in may.

Mark J. Worden: First, samples continue to sell very well, with double-digit growth in the first two weeks of May, and this is particularly encouraging as we are now in the peak selling period. Second, product gross margins remain strong and in line with what I would like to see for Q2. Third, we're continuing to see sales trends at the pace where I would like to see them to achieve our annual expectations across our balance. Last, we're now entering a non-event buying period until we get into back to school. It is not yet clear if customers remain as cautious about buying in non-event periods as they were last year.

Speaker Change: First sandals continue to sell very well with double digit growth in the first two weeks of May and this is particularly encouraging as we are now in the peak selling period.

Speaker Change: Second product gross margins remained strong and in line with what I would like to see for Q2.

Speaker Change: Third we are continuing to see sales trends pace, where I would like to see them to achieve our annual expectations across our banners.

Speaker Change: Last we're now entering a non event buying period until we get into back to school.

Speaker Change: It is not yet clear if the customer remains as cautious about buying and non event periods. As they were last year. We will continue to monitor customer buying behavior closely during this period before back to school starts and pivot accordingly.

Mark J. Worden: We will continue to monitor customer buying behavior closely during this period before Back to School starts and pivot accordingly. Before handing it over to Carl to discuss Q1 category level performance, I'd like to share a few summary comments. We are encouraged by the results we achieved in the quarter. We delivered sales, growth, and operating profits higher than our expectations. We again delivered sustained gross profit margin performance exceeding 35% for the 13th consecutive quarter.

Speaker Change: Before handing it to Carla to discuss Q1 category level performance I would like to share a few summary comments.

We are encouraged by the results we achieved in the quarter, we delivered sales growth and operating profit higher than our expectations. We again delivered sustained gross profit margin performance exceeding 35% for the 13th consecutive quarter.

Mark J. Worden: Sales growth in the quarter was led by continued strength in our Shoe Station banner, e-commerce, and Rogan's Acquisition. Trends improved sharply at our Shoe Carnival banner during March and April, as we had a strong start to the sandal season. Our digital first marketing strategy is responding to customers, and our assortment of the right brands with the right depth is working. Our strategies to grow sales and increase profitability over the long term have put us in a competitive position of strength to continue growing market share and delivering shareholder value.

Carla: Sales growth in the quarter was led by continued strength in our shoe station banner ecommerce and Rogen acquisition.

Carla: Trends improved sharply at our shoe Carnival banner during March and April as we are having a strong start to the sandal season.

Carla: Our digital first marketing strategy is resonating with customers and our assortment of the right brands with the right staff is working.

Carla: Our strategies to grow sales and increase profitability over the long term have put us in a competitive position of strength to continue growing market share and delivering shareholder value.

Mark J. Worden: Our long-term vision is clear, to be the nation's leading family footwear retailer, and I believe we are very well positioned to continue advancing toward that ambition in 2024 and beyond. Now, I'll hand it over to Carl to provide further color on our category's performance.

Our long term vision is clear to be the nation's leading family footwear retailer and I believe we're very well positioned to continue advancing towards that ambition in 2024 and beyond.

Speaker Change: And now I'll hand, it over to Karl to provide further color on our categories performance Carl.

Karl: Thank you Marc as you discuss sales momentum accelerated across the business during the quarter from a category perspective, both children and adult athletics performed very well and we did sell a lot of sandals and shoe carnival.

Carl N. Scibetta: Thank you, Mark. As you discussed, sales momentum accelerated across the business during the quarter. From a category perspective, both children's and adult athletics performed very well, and we sold a lot of sandals at Shoe Carnival. While competitive intensity remained high during the quarter, we delivered gross profit margin above 35% for the 13th consecutive quarter, and we remain committed to our long-term profit transformation and targeted CRM strategies to continue delivering sustained gross profit margin performance.

Speaker Change: While competitive intensity remained high during the quarter, we delivered gross profit margin above 35% for the 13th consecutive quarter and we remain committed to our long term profit transformation and targeted CRM strategies to continue delivering sustained gross profit margin performance.

Speaker Change: Our merchandise margin in the quarter expanded by 50 basis points versus prior year, primarily due to lower inbound freight and shipping costs.

Carl N. Scibetta: Our merchandise market in the quarter expanded by 50 basis points versus the prior year, primarily due to lower inbound freight and shipping costs. During the first quarter, we continued to further optimize our inventory levels. Inventory at the end of the quarter totaled 411.6 million, an increase of 22.1 million versus the prior year, primarily reflecting the impact of the Rogans acquisition in February 2024. Excluding the impact of Rogans, our merchandise inventory at the end of Q1 was lowered by approximately 6% on a dollar basis versus the prior year, and on a unit basis, merchandise inventory was down approximately 9% versus the prior year.

Speaker Change: During the first quarter, we continued to further optimize our inventory levels inventory at the end of the quarter totaled $411 6 million, an increase of $22 1 million versus prior year, primarily reflecting the impact of the <unk> acquisition in February 2024.

Speaker Change: Excluding the impacts of <unk>, our merchandise inventory at the end of Q1 was lower by approximately 6% on a dollar basis in prior year and on a unit basis merchandise inventory was down approximately 9% versus prior year.

Speaker Change: Excluding the impacts of erosions inventory, we continue to expect fiscal 2020 for year end inventory to be approximately $20 million or 5% lower than fiscal 2023 year end, while maintaining the freshest product assortment for our customers now.

Carl N. Scibetta: Excluding the impacts of Rogan's inventory, we continue to expect fiscal 2024 year-end inventory to be approximately $20 million, or 5% lower than fiscal 2023 year-end, while maintaining the freshest product assortment for our customers. Now moving the cells by category for the quarter.

Speaker Change: Now moving to sales by category for the quarter.

Speaker Change: Total Q1 comp sales were down three 4%, which reflected a very strong performance in sandals combined with growth in athletics.

Carl N. Scibetta: Total Q1 comp sales were down 3.4%, which reflected our very strong performance in sandals combined with growth in athletics. And, as Mark discussed, our comp sales trend strengthened as the quarter progressed. From a category perspective, total adult athletic comp sales increased by low single digits in the quarter. Comp sales in women's adult athletics were up by mid-singles, led by court and basketball. Comp sales in men's adult athletics were down low single-digits, with the decline in running partially offset by strength in training and walking. Children's comp sales were down very low single-digit, with athletic low single-digit and non-athletic down mid single-digit. The strong performance of children's athletics was led by court and running.

Speaker Change: And as Mark discussed our comp sales trends strengthened as the quarter progressed.

Speaker Change: From a category perspective total adult athletic comp sales increased low single digits in the quarter comp sales in women's adult athletics were up by a mid singles led by court in basketball comp sales in men's adult athletics were downloads singles with a decline in loan partially offset by strength in the training and <unk>.

Speaker Change: Children's.

Speaker Change: Children's comp sales were down very low single digits with athletic low single digit and non athletic down mid single digits with strong performance in children's Athletic was led by port in running the childrens non us level performance was primarily due to softness in each interest partially offset by solid growth in sandals.

Carl N. Scibetta: The children's non-athletic performance was primarily due to softness in boots and dresses, partially offset by solid growth in family. In the first quarter, comp sales in women's non-athletic footwear were down high single digits, with boots down low 20. Dress and casual were both down in the high teens, sport was down in the mid-teens, and sandals were very strong in the quarter, growing 14%, with performance trends accelerating during the quarter, led by flat sandals, footbeds, and slides. Men's and Athletic Com sales were down mid-single digits, and dress was down low teens. Boots were down low double-digit, and casual was down low single-digit, and Casual Candidate Casuals were down, partially offset by strong growth in sales.

Speaker Change: <unk>.

Speaker Change: First quarter pump sales in womens non athletic footwear were down high single digits with boots down low twenties dressing and casual were both down high teens sport was down mid teens in sandals were very strong in the quarter growing 14% with performance trends accelerating during the quarter led by flats.

Speaker Change: Sandals flip beds and slides.

Speaker Change: Men's non athletic comp sales were down mid single digit dress was down low teens, each were down low double digit and casual was down low single digit and.

Speaker Change: And casual canvas casuals were down partially offset by strong growth in sandals coming.

Carl N. Scibetta: Coming out of the quarter, our inventory content is clean and in a good position, including sales. We are excited about the fresh new products coming to our stores in 2024. As our back-to-school inventory begins to arrive later this month and build in May and June, we are well-positioned to win back-to-school by growing our children's business just as we did last year, providing the product assortment and mix that our customers need. And with that, I'll turn the call over to Patrick for a review of our financials.

Speaker Change: Coming out of the quarter, our inventory content is clean and in good position, including channels. We're excited about the fresh new products coming into our stores in 2024.

Speaker Change: As our back to school inventory begins to arrive later this month and build in May and June we are well positioned to win back to school by growing our children's business just as we did last year, providing the product assortment and niche that our customers want.

I'll turn the call over to Patrick for a review of our financials Patrick.

Patrick C. Edwards: Thanks Carl. Moving on to our financial results. Starting with Topline, our net sales in Q1 were $300.4 million, an increase of 6.8% versus the prior year. Rogans and continued growth from Shoe Station, combined with strengthening trends at Shoe Carnival, were the key drivers to this strong performance. Going into a little more detail, Shoe Station total sales performed very well with a low double-digit increase versus the prior year on the strength of new stores and share growth in the existing market. Shoe Carnival total sales came in at a low single-digit decline.

Patrick C. Edwards: Thanks, Carl moving onto our financial results.

Patrick C. Edwards: While sales trends were soft early in the quarter, they strengthened as the quarter progressed and demonstrated comparable store sales growth versus the prior year late in the quarter, on the strength of sandals and athletics. Rogen's sales in the quarter approximated 19.6 million. As you will recall, we completed the Rogen acquisition in mid-February of this year, and therefore only a partial month of Rogen cells from February are included in our first-quarter results.

Patrick C. Edwards: Starting with topline our net sales in Q1 were $300 4 million, an increase of six 8% versus prior year.

Patrick C. Edwards: Rogen and continued growth from shoe station combined with strengthening trends at shoe Carnival, where the key drivers to this strong performance.

Patrick C. Edwards: Going into a little more detail shoe station total sales performed very well with a low double digit increase versus prior year on the strength of new stores and share growth in existing markets.

Patrick C. Edwards: <unk> Carnival total sales came in at a low single digit decline.

Patrick C. Edwards: While sales trends were soft early in the quarter, they strengthened as the quarter progressed and demonstrated comparable store sales growth versus prior year late in the quarter on the strength of sandals and athletics.

Rogen sales in the quarter approximated $19 6 million.

Patrick C. Edwards: As you will recall, we completed the <unk> acquisition in mid February of this year and therefore, only a partial month of rogen cells from February are included in our first quarter results.

Patrick C. Edwards: Consistent with previous guidance, we continue to expect full-year 2024 net sales for Rogans to approximate $84 million. As a result of the 53rd week in fiscal 2023 that will not recur in fiscal 2024, the calendar weeks in each quarter shift in 2024 as compared to the prior year, which we discussed on our earnings call in March on a comparable store sale basis, which excludes the impact of this calendar shift. Rogan's sales and other new store growth, net sales declined 3.4% for the first quarter, representing a significant improvement versus comparable store sale trends in late fiscal 2023. As the first quarter progressed and we continued to execute our digital-first marketing campaign, we saw strengthening comparable store sale trends, and those trends turned to low single-digit growth versus prior year late in the quarter.

Patrick C. Edwards: Consistent with previous guidance, we continue to expect full year 2024, net sales for <unk> to approximate $84 million.

Patrick C. Edwards: As a result of the 50 <unk> week in fiscal 2023 that will not recur in fiscal 2020 for the calendar weeks in each quarter shift in 2024 as compared to prior year, which we discussed on our earnings call in March.

On a comparable store sale basis, which excludes the impact of this calendar shift rogen sales and other new store growth net sales declined three 4% for first quarter.

Patrick C. Edwards: Representing a significant improvement versus comparable store sale trends in late fiscal 2023.

Patrick C. Edwards: As the first quarter progressed, and we continue to execute our digital first marketing campaign, we saw strengthening comparable store sale trends and those trends turn to low single digit growth versus prior year late in the quarter.

Patrick C. Edwards: Q1, gross profit margin expanded to 35, 6%.

Patrick C. Edwards: Q1 gross profit margin expanded to 35.6%, marking the 13th consecutive quarter that our gross profit margin has exceeded 35 percent. Compared to Q1 2023, gross profit margin increased approximately 60 basis points, with merchandise margins increasing approximately 50 basis points, led by stable product margins and lower incoming freight and e-commerce shipping costs during the quarter. Buying, distribution, and occupancy costs were higher in the quarter, primarily due to increased rent associated with operating more stores.

Patrick C. Edwards: Marking the 13th consecutive quarter that our gross profit margin has exceeded 35%.

Patrick C. Edwards: Compared to Q1 2023 gross profit margin increased approximately 60 basis points with merchandise margins, increasing approximately 50 basis points.

Patrick C. Edwards: Led by stable product margins and lower incoming freight and ecommerce shipping costs during the quarter.

Patrick C. Edwards: Buying distribution and occupancy costs were higher in the quarter, primarily due to increased rent associated with operating more stores.

Patrick C. Edwards: Despite these higher overall costs in the quarter, BD&O leveraged approximately 10 basis points on the higher sales delivery versus the prior year. SG&A expense in Q1 was $84.3 million, representing an increase of $6.7 million versus Q1 2023. Q1 SG&A increased on higher marketing investments that drove our strong sales performance in the quarter and higher selling expenses associated with Rogan. As a percentage of net cells, our SG&A was 28.1%.

Patrick C. Edwards: Despite these higher overall costs in the quarter Bdnf leveraged approximately 10 basis points on the higher sales delivery versus the prior year.

Patrick C. Edwards: SG&A expense in Q1.

Patrick C. Edwards: Was $84 3 million representing.

Patrick C. Edwards: <unk>, an increase of $6 7 million.

Patrick C. Edwards: Versus Q1 2023.

Patrick C. Edwards: Q1, SG&A increased on higher marketing investments that drove our strong sales performance in the quarter and higher selling expenses associated with <unk>.

Patrick C. Edwards: As a percentage of net sales our SG&A was 28, 1%. We continue to expect synergies from the <unk> acquisition into 2025, and we expect those synergies to lower our SG&A as a percentage of sales as they are achieved.

Patrick C. Edwards: We continue to expect synergies from the Rogen acquisition into 2025, and we expect those synergies to lower our sGNA as a percentage of cells as they are achieved. Operating income in the quarter totaled $22.5 million, an increase of 7.5% versus the prior year on a gap basis and 9.8% on an adjusted basis. We were pleased that our operating income grew faster than net sales in the quarter. On a gap basis, operating income included approximately $500,000 of expenses from the Rogans acquisition.

Patrick C. Edwards: Operating income in the quarter totaled $22 5 million, an increase of seven 5% versus prior year on a GAAP basis and nine 8% on an adjusted basis. We were pleased that our operating income grew faster than net sales in the quarter.

Patrick C. Edwards: On a GAAP basis operating income included approximately $500000 of expenses from the Rogen is acquisition.

Patrick C. Edwards: Our income tax rate in the quarter was 25, 4% versus 22, 6% in the prior year, resulting in a headwind to EPS of approximately <unk> <unk> per share. This higher rate primarily reflects a lower benefit in fiscal 2024 from share settled.

Patrick C. Edwards: Our income tax rate in the quarter was 25.4% versus 22.6% in the prior year, resulting in a headwind to EPS of approximately $0.02 per share. This higher rate primarily reflects a lower benefit in fiscal 2024 from share-settled equity awards.

Patrick C. Edwards: Equity Awards.

Patrick C. Edwards: On a GAAP basis, net income for the first quarter of 2024 was $17.3 million, or $0.63 per diluted share. On a non-GAAP basis, excluding the Rogans-related costs, adjusted net income for the first quarter was $17.7 million, or $0.64 per diluted share. At the end of the quarter, we had total cash, cash equivalents, and marketable securities of approximately $69 million. Cash and cash equivalents increased by over $24 million versus first quarter 2023, and cash flow from operations in the quarter increased by approximately $15 million. The 2023 fiscal year-end marked the 19th consecutive year the company ended a year with no debt.

Patrick C. Edwards: On a GAAP basis net income for first quarter 2024 was $17 3 million or <unk> 63 per diluted share on a non-GAAP basis, excluding the rogen related costs adjusted net income for the first quarter was $17 7 million or <unk> 64.

<unk> per diluted share.

At the end of the quarter, we had total cash cash equivalents and marketable securities of approximately $69 million.

Patrick C. Edwards: Cash and cash equivalents increased over $24 million versus first quarter 2023, and cash flow from operations in the quarter increased approximately $15 million.

Patrick C. Edwards: 2023 fiscal year and marked the 19th consecutive year. The company ended the year with no debt.

Patrick C. Edwards: And through the first quarter of 2024, we have continued to fund our operations and growth investments, including the acquisition of Rogans in February 2024 from operating cash flow and without debt. During the quarter, we did not repurchase any shares and have $50 million available under our current share repurchase program. Inventory at the end of the quarter totaled $412 million, an increase of approximately $22 million versus the prior year. The increase reflected Rogan's acquired inventory and the timing of purchase, partially offset by continued efficiencies from our ongoing inventory optimization improvement plan. As Carl discussed, we continue to expect inventory will be lower by approximately $20 million in our business, excluding Rogan's, by the end of the year.

Patrick C. Edwards: And through the first quarter of 2024, we have continued to fund our operations and growth investments, including the acquisition of <unk> in February 2024 from operating cash flow and without that.

Patrick C. Edwards: During the quarter, we did not repurchase any shares and have $50 million available under our current share repurchase program.

Patrick C. Edwards: Inventory at the end of the quarter totaled $412 million, an increase of approximately $22 million versus prior year. The.

Patrick C. Edwards: The increase reflected brogan acquired inventory and the timing of purchases, partially offset by continued efficiencies from our ongoing inventory optimization improvement plan as.

Patrick C. Edwards: As Karl discussed we continue to expect inventory will be lower by approximately $20 million on our business, excluding <unk> by the end of the year.

Speaker Change: Moving on to our 2020 for outlook.

Patrick C. Edwards: Moving on to our 2024 outlook. Based on first quarter results today, we reiterated our entire full year 2024 outlook, including net sales growth in a range of 4% to 6% versus fiscal 2023 and full year fiscal adjusted EPS in a range of $2.55 to $2.75. The phasing of our Q2 and Q3 quarterly results versus the prior year will be significantly impacted by the retail calendar shift. For example, one of our highest volume back-to-school weeks will move out of Q3 and into Q2.

Speaker Change: Based on first quarter results today, we reiterated our entire full year 2024 outlook, including net sales growth in a range of 4% to 6% versus fiscal 2023 and full year fiscal adjusted EPS in a range of $2 50.

Speaker Change: Five.

Speaker Change: To $2 75.

Speaker Change: The phasing of our Q2 and Q3 quarterly results versus the prior year will be significantly impacted by the retail calendar shift one of our highest volume back to school weeks will move out of Q3 and into Q2.

Patrick C. Edwards: As a result, we are providing additional information on our expected second quarter net sales and second quarter EPS. We expect net sales for the second quarter to be about $330 million, compared to $295 million in the prior year. This would be an increase in net sales of about 12% versus last year. This increase includes a benefit of approximately $20 million in the quarter as a result of the retail calendar shift. We expect a similar increase in our EPS, which would put EPS at about $0.80 in the quarter compared to $0.71 earned in last year's second quarter.

Speaker Change: As a result, we are providing additional information on our expected second quarter net sales in second quarter EPS.

Speaker Change: We expect net sales for the second quarter to be about $330 million compared to $295 million in the prior year. This would be an increase in net sales of about 12% versus last year.

Speaker Change: This increase includes a benefit of approximately $20 million in the quarter as a result of the retail calendar shift.

Speaker Change: We expect a similar increase in our EPS, which would put EPS at about 80 in the quarter compared with 71 earned in last year's second quarter.

Patrick C. Edwards: We continue to expect the combined total of Q2 and Q3 sales growth in 2024 versus the prior year to be in line with our full year outlook of 4% to 6% net sales growth. To close, in the first quarter, we delivered net sales growth of 6.8% and operating income growth of nearly 10% on an adjusted basis. Our strong balance sheet and cash flow continue to position us to fund internal growth, execute on desirable M&A opportunities, and continue to deliver long-term shareholder returns.

Speaker Change: We continue to expect the combined total of Q2 and Q3 sales growth in 2024 versus prior year to be in line.

Speaker Change: Our full year outlook of 4% to 6% net sales growth.

Speaker Change: To close in the first quarter, we delivered net sales growth of six 8% and operating income growth of nearly 10% on an adjusted basis, our strong balance sheet and cash flow continue to position us to fund internal growth execute undesirable M&A opportunities in the <unk>.

Speaker Change: Continued ability to deliver long term shareholder return.

Patrick C. Edwards: As previously announced, we will hold our annual meeting of shareholders on June 25, 2024 at 9 a.m. Eastern Time. The distribution of information to shareholders for the annual meeting began on May 14. This concludes our financial review. Now we would like to open the call to questions. Operator?

Speaker Change: As previously announced we will hold our annual meeting of shareholders on June 25, 2024 at nine a M. Eastern time, the distribution of information to shareholders for the annual meeting began on may 14th.

Speaker Change: This concludes our financial review now we would like to open the call up for questions operator.

Operator: Thank you. If you have a question, please press star 1 on your telephone keypad. If you wish to remove yourself from the queue, simply press star 1 again.

Speaker Change: Thank you if you have a question. Please press star one on your telephone keypad, if you wish to remove yourself from the queue simply press star one again.

Operator: In the interest of time, we ask that you please limit yourself to one question and one follow-up question. If you have any additional questions, you may rejoin the... One moment for your first question. And your first question comes from the line of Sam Poser with Williams Trading. Please go ahead.

Speaker Change: In the interest of time, we ask that you. Please limit yourself to one question and one follow up question.

Speaker Change: If you have any additional questions you may rejoin the queue.

One moment for your first question.

Speaker Change: And your first question comes from the line of Sam Poser with Williams trading. Please go ahead.

Samuel Marc Poser: Good morning, everybody. Thank you for taking my question. Just a follow-up on the calendar shift stuff for the second quarter. I believe on the first quarter call, or on the fourth quarter call, you inferred that it was going to be about $25 million per quarter, Maneuver versus the 20 you just said. What? I want to make sure I got that right, but what changed if I did?

Good morning, everybody. Thank you for taking my question.

Speaker Change: Just a follow up on the calendar shifts stuff in the second quarter.

Speaker Change: I believe on the first quarter call on the fourth quarter call you inferred that it was going to be about a $25 million per quarter.

Speaker Change: Maneuver versus the 'twenty you just said.

Speaker Change: What I want.

Speaker Change: To make sure I got that right, but what changed if I did.

Patrick C. Edwards: Hey Sam, this is Patrick. Great question. Appreciate you asking it. The $25 million versus the $20 million is the amount of benefit that existed in the first quarter that shifted into there, which is about 2%.

Patrick C. Edwards: Hey, Sam this is Patrick Great question.

Speaker Change: I appreciate you asking it.

Speaker Change: $25 million versus the $20 million and the difference is the amount of benefit that exists in the first quarter that shifted into there which is about 2%.

Samuel Marc Poser: So you, so till I get this right, you, you're losing, you're gaining a $25 million week, and you're losing a $5 million week just at the beginning of it. You lost $5 million in one week at the beginning of the quarter. But so my question on Q3 then is: Theoretically, in Q3, you wouldn't lose as much because I believe the last week in with a shift, the shift in in Q3 is bigger than the shift out in Q1, historically, and so how should we do it? You're losing You're getting 20 in queue, you're getting 20 in queue. You're dating 20 in Q2, and you're going to, what, lose about 18 in Q3 or something like that?

Samuel Marc Poser: So just so I get this right.

Speaker Change: Yeah.

Speaker Change: Youre, losing youre, gaining a 25 million dollar weekend youre, losing a 5 million dollar weak just at the beginning of a loss of $5 million a week at the beginning of the quarter, but so my question on Q3 that is.

Speaker Change: Theoretically in Q3, you wouldn't lose as much because I believe the last.

Speaker Change: Weak.

With the shift the shift in.

Speaker Change: In Q3 is bigger than this shifts out in Q1.

Speaker Change: Thats correctly that.

Speaker Change: And so how should.

Speaker Change: So so you're losing.

Speaker Change: 20 in Q Youre getting 20 in Q.

Lou: Indicating slightly in Q2, and you'll get what Lou is about 18% in Q3 or something like that.

Patrick C. Edwards: I'll try to just reiterate what we said here one more time, and then, if necessary, we can We can go a little bit deeper on it, but our Q2 net sales are going to be up 12% with $20 million of that caused by the shift, and as you said, $25 million coming in from Q3, and $5 million coming out of Q1. Q2 and Q3 combined are going to be about flat, leaving us with growth of 4-6% over both those periods. And then, you're right, Q4 has this more significant material impact where we just completely lose that 53rd week in its entirety, which is about $15 million.

Lou: I'll try to just reiterate what we said here one more time.

Speaker Change: If necessary we can we can we can go a little bit deeper on it but our Q2 net sales are going to be up 12% with $20 million of that caused by the shift and as you said $25 million coming in from Q3 $5 million coming out.

Speaker Change: Into Q1.

Hugh.

Speaker Change: Q2, and Q3 combined.

Speaker Change: Are going to be about flat, leaving us with growth of 4% to 6% over both those periods.

Speaker Change: And then you're right Q4.

Speaker Change: Has is more significant and material impacts where we just completely lose the 50 <unk> week in its entirety, which is about $15 million.

Speaker Change: Which.

Patrick C. Edwards: Which is going to be offset by, what, about $35 million from Rogan. So you lose 15, you gain 25. Yeah, I mean, it's like, yeah. So Sam, we.

Speaker Change: Which is going to be offset by what about $35 million from rogen.

Speaker Change: So you lose Sidoti indicate yes.

Patrick C. Edwards: So, Sam, we know we've tried to give a lot of increased color around this because of the complexity that you're dealing with right now and the complexity that most retailers are dealing with right now. So our goal is to provide a range around that $330 million in our EPS, and as we move through the year, we'll continue to do that, but the other elements of our growth and of our drivers, we're just not prepared yet to give that for Q2 or any other quarter. But for the full year, we're still expecting revenue growth of 4% to 6% on that unshifted basis and a cost decline of somewhere between down 3% to up 1% on a shifted basis.

Speaker Change: Yes.

And we know we've tried to for Q2, we've tried to give a lot of increased color around this because of the complexity that youre that youre dealing with horizon on the complexity that the.

Speaker Change: Most retailers are dealing with right now so.

Speaker Change: Our goal is to provide a range around that $330 million and our EPS and <unk>.

Speaker Change: As we move through the year, we will continue to do that at the other elements of our growth in all of our drivers were just not prepared yet to give that for Q2 or any other quarter, but for the full year, we're still expecting revenue growth of 4% to 6% on the unshifted basis.

Speaker Change: Cost decline of somewhere between down three to up one on a shifted basis.

Samuel Marc Poser: Okay, thank you very much. I appreciate it, and I may get back in, but thank you.

Speaker Change: Okay. Thank you very much.

Speaker Change: I appreciate it.

Speaker Change: I may get pick it thank you.

Operator: Your next question comes from the line of Mitch Kummetz with C-Corp Research. Please go ahead.

Speaker Change: Your next question comes from the line of Mitch comments with CCAR Research. Please go ahead.

Mitchel John Kummetz: Yes, thanks for taking my questions. And I did kind of lose connection there for a few minutes. I apologize if you've already addressed something that I ask. I just wanna start, just, again. I wanna get a little bit more color on the guide.

Speaker Change: Hi, yes, thanks for taking my questions and I did kind of lose connection there for a few minutes. So I apologize if you've already addressed something that I ask.

Speaker Change: I just wanted to start just again want to get a little bit more color on the on the guide so for Q2.

Mitchel John Kummetz: So for 2Q, you've given us the sales. Can you say what the cost is and what Rogan's contribution is embedded in that sales number?

Speaker Change: You've given us the sales can you say what comp.

Speaker Change: What rogen contribution are embedded in that sales number.

Patrick C. Edwards: Hey Mitch, it's Patrick. We are, again, trying to prepare a North Star for everyone for the second quarter in the range of $330 million on the top line. We're not prepared to provide the individual with any other key drivers other than the impact of the shift, which is about $20 million.

Patrick C. Edwards: Hey, Mitch it's Patrick.

Speaker Change: We are again trying to prepare a north star for everyone for the second quarter in the range of $330 million on the top line.

Speaker Change: We're not prepared to provide the individual other key drivers other than the impact of the shift which is about $20 million.

Speaker Change: Can you say how much of the so you said 80 cents of earnings.

Speaker Change: And I know you said that obviously the earnings benefit from the sales shift but is there any way you can sort of isolate how much earnings are shifting from <unk> from <unk>.

Speaker Change: Right. So we have a well.

Speaker Change: What we're providing is a.

Speaker Change: 12%.

Speaker Change: Overall increase in our net sales and then what we're seeing is as an overall increase in EPS at the same about 12%.

Speaker Change: In between the.

Speaker Change: As Mark mentioned, what we're seeing so far into Q2.

Speaker Change: Stable stable margins some increased selling expenses.

Speaker Change: And as I said at a higher tax rate if.

Speaker Change: If you think about our tax rate in Q2 of last year that number was about 22, 3%.

This year it will be more like 26% in line with our annual guidance.

Speaker Change: And that creates a fairly sizable headwind to EPS in the quarter. So.

Speaker Change: That.

Speaker Change: This is why we provided that sort of 12% topline and in at about 12% bottom line sort of the point of view on growth in the quarter.

Speaker Change: Okay and then.

Speaker Change: You are starting to talk about.

Speaker Change: I think some of the the <unk>.

Speaker Change: <unk> sales trend when I kind of lost my connection so again maybe.

Speaker Change: For us this but.

Speaker Change: Can you walk us through.

Speaker Change: Maybe some months.

Speaker Change: <unk> Q and then kind of how thats progressed in Q early.

Speaker Change: <unk> like maybe the comp by month.

Speaker Change: What youre seeing through the first two weeks of May.

Mitchel John Kummetz: Can you say how much of the, so you said 80 cents of burning. And I know you said that obviously the earnings benefit from the sales shift, but is there any way you can sort of isolate how much earnings are shifting from 3Q to 2Q?

Sure Mitch good morning, Thanks for joining.

Patrick C. Edwards: Right, so we have a 12% overall increase in our net sales, and then what we're seeing is an overall increase in EPS of the same, about 12%. In between the, as Mark mentioned, what we're seeing so far in Q2, stable margins, some increased selling expenses, and, as I said, a higher tax rate. If you think about our tax rate in Q2 of last year, that number was about 22.3%.

Patrick C. Edwards: This year it will be more like 26% in line with our annual guidance. And that creates a fairly sizable headwind to EPS in the quarter, so that is why we provided that sort of 12% top line and ended with about 12% bottom line sort of point of view on growth in the quarter.

Speaker Change: We're really pleased with the progression of the quarter one.

Speaker Change: February was slow.

Speaker Change: And as we talked in the year and we were just kicking off our new digital campaign as we were heading into tax Smith and the sandal season as soon as we did that along with karl's team's outstanding sandal assortment. We saw the consumer respond immediately started again February.

Mitchel John Kummetz: Okay. And then, Mark, you were starting to talk about... I think some of the improved sales trends when I kind of lost my connection. So, again, maybe you can address this, but can you walk us through it?

Speaker Change: Larry was down similar to non event periods last year. So we got into early March started growing low singles got towards Easter, we were growing double digit across banners, which was very encouraging to see it drive results at Carnival end station and then as we got into April that was going to.

Mark J. Worden: ... maybe the month in one cue and then kind of how that's progressed into early two cue, like maybe the comp by month and then what you're seeing through the first two weeks of May? Sure.

Mark J. Worden: Sure, Mitch. Good morning.

Mark J. Worden: Thanks for joining us. Really pleased with the progression as the quarter went. February was slow, and as we talked at year-end, we were just kicking off our new digital campaign as we were heading into tax myths and the sandal season. And as soon as we did that, along with Carl's team's outstanding sandal assortment, we saw the consumer respond immediately.

Mark J. Worden: We started again, February was down, similar to the non-event period last year. We got into early March, started growing low singles, got towards Easter, and we were growing double-digit across banners, which was very encouraging to see it drive results at Carnival End Station. And then as we got into April, that was going to be our first big unknown. As I said earlier, it's not really a non-event period because it's Sand

Speaker Change: Our first big unknown.

Speaker Change: <unk> earlier, it's not really a non event period, because its sandals core season kicking in but nonetheless, we werent sure April was going to look more like January or last year's non events more of it.

Mark J. Worden: But nonetheless, we weren't sure if April was going to look more like January or last year's non-events, or if it would sustain trends. So we invested, and we continue to invest, like I said in the last call, in this marketing campaign, and it worked. We accelerated Sandals after Easter, our sales results accelerated across the company after Easter, and, in fact, as Patrick mentioned, comp sales grew after Easter.

Speaker Change: Sustained trends so.

Speaker Change: So we invested and we continue to invest like I said in the last call in this marketing campaign and it worked we accelerated samples after Easter our sales results accelerated across the company after Easter and in fact, as Patrick mentioned comp sales grew after Easter.

Mark J. Worden: Flipping into May, it looks very similar, right? We're kind of wrapping up. And I'd say May is still giving us very encouraging results. I'm pleased with the margins. I'm really pleased with the sales across banners. Look to be able to deliver what we said. And the campaign is working, and we're keeping on going with it. I want to call out the one thing, though, that I did say.

Speaker Change: Flipping into May is looks very similar.

Speaker Change: We're kind of wrapping up and I'd say may still is giving us very encouraging results I am pleased with the margins I'm really pleased with the sales across banners look to be able to deliver what we said.

Speaker Change: The campaign is working and we're keeping ongoing with it.

Speaker Change: I want to call. The one thing that I did say, we just don't know fully yet of what a non event periods going to look like.

Mark J. Worden: We just don't know fully yet what a non-event period is going to look like, and we're in that now until late July, when back to school kicks in. I'm encouraged by what I've seen, you know, in the last 10 days or so, which are really non-events. But nonetheless, we're going into about a two-month extended period where we're going to learn a lot about the customer's behavior.

Speaker Change: And we're in that now until late July when back to school kicks in.

Speaker Change: I'm encouraged with what I've seen in the last 10 days or so which are really non event, but nonetheless, we're going into about two months extended period, where we're going to learn a lot about the customers' behavior.

Mitchel John Kummetz: And just as a follow-up to that, Mark, because I know you're somewhat hesitant to, you know, make any sort of projections on the business through these non-event periods, but I think what you said was that, you know, sort of April and early May are kind of an event, not an event. Like, it's maybe an event because it's Sandals.

Speaker Change: And then just as a follow up to that Mark.

Speaker Change: Because I know youre somewhat it hasn't been too.

Speaker Change: You know make any sort of projections on the business through these non event periods, but.

Speaker Change: I think what you said was the sort of April and early may.

Speaker Change: Or kind of event amount of that.

It may be an event because it's sandals.

Mark J. Worden: But it's not really an event because you don't have the kind of holidays like you did maybe in March with Easter. So, are there any learnings, and actually, I think June historically is your biggest handle month. So maybe you could kind of call June an event. I don't know, but are there any sort of learnings that you kind of when you reflect on it? April and early May, as relates to sort of the digital first marketing campaign that really suggests that this is, you know, something that is working.

Speaker Change: But it's not really an event because you don't have kind of a holiday like you did maybe in March with Easter.

Speaker Change: So are there any learnings and actually I think June historically as your biggest sandal months. So maybe you could kind of call. It June I don't know, but there are there any learnings that you <unk>.

Speaker Change: Kind of when you reflect on it.

Speaker Change: April and early May.

Speaker Change: As it relates to sort of a digital first marketing campaign that really suggest that this is.

Speaker Change: Something that is working.

Speaker Change: Working.

Mark J. Worden: Yes, I mean, the results... to get the cop broke. Post Easter was very encouraging when we continued on with this digital social influencer work. We weren't originally going to do that, but we saw trends were strong with samples coming out of EASTER. We saw people were still responding, so we made the decision to increase investments, and it continued to work in April and will continue to work in early May. I think the insight's too early to call, but I think what I'm most pleased about, as I said in the call, we're seeing improved trends across all geographies.

Speaker Change: Yes, I mean the results.

To get the comp growth.

Speaker Change: Post Easter was very encouraging when we continued on with this digital social Influencer work.

Speaker Change: We werent originally going to do that but we saw trends were strong with samples coming out of Easter. We saw people. We're still responding so we made the decision to.

Speaker Change: Increased investments and it continues to work in April and continues to work in early May.

Speaker Change: I think the insights too early to call, but I think what I'm. Most pleased about I said in the call. We're seeing improved trends across all geographies, we're seeing improved trends across all demographics and across all banners, we didn't see that last year and so I think that's a big change of the campaigns working the product is fresher.

Mark J. Worden: We're seeing improved trends across all demographics and across all banners. We didn't see that last year, and so I think that's a big change, that the campaign's working, the product is fresher, and the product's really responding, particularly in samples that Carl brought in. So I really encourage Mitch, again, I think the next six to eight weeks are, we would call them really, the most non-event of non-events. Sandals just become incredibly important, to your point, it's peak season. But there's no real spike in an event until we get to BTS. So we're going to learn a lot, but I like what I'm seeing very much these first couple weeks of May.

Speaker Change: And approximately resonating with that.

Speaker Change: Particularly in samples by Karl brought in.

Speaker Change: So really encourage metro again I think the next six to eight weeks, we would call them really to the most non event of non events San Francis becomes incredibly important to your point, it's peak season, but theres no real spike in an event and so we get to BCS. So we're going to learn a lot, but I like what I'm seeing very much. These first couple of weeks of May.

Mitchel John Kummetz: And then last one for me, for Carl, I just want to drill down on Sandal a bit more, because it sounds like you had a lot of success there. My sense is that early March was good weather wise, and the rest of the quarter was a little more inconsistent, and yet you guys had good Sandal performance throughout. In fact, it sounds like it actually accelerated. So maybe Carl, you know, when you look at Sandal, You know, can you parse out how much is weather, how much is product, how much is inventory, how much is, you know, the digital marketing campaign behind the sandals, like, and again, going into really peak sandal season, you know, how much can we look at what's happened to sandal season to date and have that be, you know, a read through to kind of the balance of the sandal season?

Speaker Change: And then last one for me.

Speaker Change: Laurel.

Laurel: Just wanted to drill down sandals, but more because it sounded like you had a lot of success there.

Laurel: My sense is that.

Speaker Change: Early March was good weather wise in the rest of the quarter was a little more inconsistent and yet you guys. Good sandal performance throughout in fact, it sounds like it actually accelerated so maybe Carl.

Speaker Change: When you look at the sandals.

Speaker Change: Can you parse out how much is weather how much is product how much.

Speaker Change: Inventory.

Speaker Change: Much.

Speaker Change: The digital marketing campaign behind the sandal and again going into really peak.

Speaker Change: And all season.

Speaker Change: How much can we look at what's happened to sandal season to date and have that be a <unk>.

Speaker Change: Read through to kind of the balance of the sandal season.

Carl N. Scibetta: Wow, sure, Mitch. First of all, early on, I would say we did get some benefit early on from the weather, that it was a little bit, from a cold weather standpoint, a little better than a year ago. But, however, as we continue to move through April and early May, it's not as much of a factor. In fact, weather may not be. Thank you.

Mitch: While sure Mitch.

Speaker Change: First of all early on I would say, we did get some benefit early on from weather that weather was a little bit from a cold.

Speaker Change: Weather standpoint, a little better than a year ago.

Speaker Change: But however, as we continue to move through April and early May.

Speaker Change: It's not as much of a factor in fact weather may not be a.

Carl N. Scibetta: It's a cold issue, but with the amount of storms and things coming through the heart of our business, weather certainly would have played an effect on traffic. That said, our sandal business continues to perform well. I think by category, the categories that we invested in are performing quite well. It has taken the sandal business; it's taken over other categories on the. We feel good about where we are, we're focused, we've made the big items and categories bigger, and we do think there's some sustainability as we move forward in that category to continued output.

Speaker Change: A cold issue, but with the amount of storms of things coming through the <unk>.

Speaker Change: Part of our business, whether certainly would have played of effect on traffic.

Speaker Change: That said, our sandal business continues to perform well I think.

Speaker Change: By category and the categories that we invested in are performing quite well.

Speaker Change: And it has taken the sandal business has taken over other categories.

Speaker Change: <unk>.

Speaker Change: Of the footwear business as I talked about on our prepared remarks. So we feel good about where we are we're focused.

Speaker Change: We've made the big items and categories bigger.

Speaker Change: And we do think there is some sustainability as we move forward in that category to continue to outperform.

Mitchel John Kummetz: All right, that's very helpful. Thanks, guys.

Speaker Change: Alright, that's very helpful. Thanks, guys.

Speaker Change: Okay.

Operator: Your next question comes from the line by James Chartier with Mona's Crispy Heart.

Speaker Change: Your next question comes from the line of Jim Chartier with Chris.

Speaker Change: Crespi Hart.

Speaker Change: Please go ahead.

James Andrew Chartier: Hi, good morning. Thanks for taking my question. Given the success of digital marketing, how have your plans changed for the rest of the year from a marketing standpoint? And then what can you do to minimize this non-event low that you're expecting or facing potentially in June and early July?

James Andrew Chartier: Hi, good morning, Thanks for taking my questions.

Sounds.

Speaker Change: I guess given kind of the success of the digital marketing how have your plans changed for the rest of the year.

Speaker Change: From a marketing standpoint, and then what can you do to kind of minimize this non event long.

Speaker Change: Expecting her.

Speaker Change: Facing potentially in June and early July.

Mark J. Worden: Hi Jim, it's Mark. Good morning. Two things. First, we're going to continue the campaign investment between now and back to school. We liked the response to the campaign in the first two weeks of May. We loved it in April, so we're going to keep on testing to see if this investing in a non-event can continue to drive comps within the higher side of that range that we have for the year. Second, for back to school, we're fully committed to this approach.

Mark J. Worden: Hi, Jim its mark good morning, two things first we're going to continue the campaign investments between now and back to school. We liked the response to the campaign in the first two weeks of May we lumped. It in April so if we're going to keep on testing to see if this investing in a non event can continue to drive.

Speaker Change: Comps.

Speaker Change: Within the higher side of that range that we have for the year second for back to school. We are fully committed to this approach their works to grow kids' business last year and work to grow our holiday business in total last year. Their work now again to drive growth beyond our expectations in Q1.

Mark J. Worden: It worked to grow kids' business last year. It worked to grow our holiday business in total last year. It worked now again to drive growth beyond our expectations in Q1, so expect the entirety of back to school. We will be on this campaign approach, and we will probably be accelerating investments, and we're ready to increase SG&A as appropriately responding as profitable margin gets thrown off and share keeps growing.

Speaker Change: So expect the entirety of back to school, we will be on this campaign approach and we will probably be accelerating investments.

Speaker Change: We are ready to increase SG&A as appropriately responding as profitable margin gets thrown off and share keeps growing.

Mark J. Worden: Great. And then for Rogans, can you give us any idea of what the comp trends there look like? Is it more similar to Shoe Station or Shoe Carnival?

Speaker Change: Great and then for road games.

Speaker Change: Can you give us any color on what comp trends. There look like is it more similar to Houston Asian or shoe Carnival.

Mark J. Worden: Sure, we don't really have comp trends. I think we'll go comp-free until next year.

Speaker Change: Sure. We don't really have comp trends right. Then we will go comp till next year I can say its a consistent business is what we're learning in this first quarter, where it's really not like shoe carnival that spikes with events, we're seeing a much more stable enrolling into us about a quarter and thats what were seeing in early days and very stable.

Mark J. Worden: I can say it's a consistent business is what we're learning in this first quarter, where it's really not like Shoe Carnival that spikes with events. We're seeing a much more stable business. Again, we're only into about a quarter, and that's what we're seeing in the early days. It's very stable. It's not as volatile towards economic activity. It has a more affluent customer that doesn't seem to react to inflation as much, which we like. It's a very balanced, predictable business.

Speaker Change: It doesn't it's not as volatile towards economic activity. It has a more affluent customer that doesn't seem to react to inflation as much which we like a very balanced predictable business delivered right. What we wanted to for the quarter and we think we are squarely on target to be delivering that annual number.

Mark J. Worden: It delivered exactly what we wanted for the quarter, and we think we're squarely on target to be delivering that annual number that we put out there already. Good start, really good start, and I love that the integration's faster than we thought, and we really believe in full increased synergy capture. I've got a good line of sight to bringing that in in 2025.

Speaker Change: That we've put out there already so good start really good start and I love that the integrations faster than we thought and we really believe that fall increased synergy capture I got a good line of sight to bringing that in in 2025.

James Andrew Chartier: Right. And then Patrick, I think you said, you know, non-rogue inventory was down 6% in dollars but 9% in units. What did ASPs look like in the first quarter, and does it look like kind of a 3% ASP growth for kind of going forward? Is that the right way to look at it?

Speaker Change: And then Patrick I think you said.

Speaker Change: <unk> inventory was down 6% in dollars, but 9% in units.

Speaker Change: What did <unk> look like in first quarter and does it look like kind of a 3% ASP growth for kind of going forward is that right.

Speaker Change: Without it.

Carl N. Scibetta: Hey Jim, it's Carl. I'll tell you the you're pretty close. The ASPs for the first quarter were up about mid-single digits.

Carl: Hey, Jim it's Carl.

Speaker Change: I will tell you the.

Speaker Change: You're pretty close.

Speaker Change: Asp's for first quarter.

Speaker Change: Up.

By mid single digits.

Speaker Change: Okay.

Carl N. Scibetta: Okay, and is that sustainable? Is that kind of, you know, what you're seeing for the rest of the year? Yeah.

Speaker Change: Okay.

Speaker Change: Sustainable is that kind of what you're seeing for the rest of the year.

James Andrew Chartier: Yes, I believe it is sustainable, and it's a reflection of some of the athletic inventory that's performing at a higher retail than the brown shoe side of the business.

Speaker Change: Yes, I believe it is sustainable and it's a reflection of.

Speaker Change: Some of the.

Speaker Change: Atlantic inventory that's performing.

At a higher retail than the brown shoe side of the business.

James Andrew Chartier: Alright, thanks, and best of luck.

Speaker Change: Okay.

Speaker Change: Alright, Thanks, and best of luck.

Speaker Change: Sure.

Operator: Your next question comes from the line of Sam Poser with Williams Trading. Go ahead.

Speaker Change: Your next question comes from the line of Sam Poser with Williams trading go ahead.

Samuel Marc Poser: Thank you. Just to follow up on Rogan's business, can you talk, now that you have it, about what categories and so on you're really seeing the strength in and where you see the opportunities initially?

Samuel Marc Poser: Thank you just to follow up on the Rogen business.

Samuel Marc Poser: Can you talk now that you have it can you talk about what categories and so on you're really seeing the strength in and where you see the opportunities initially.

Mark J. Worden: Sure, Sam. Hey, it's Mark.

Marc: Yes, sure Sam it's Marc I'm really excited about the work business in particular that Robin's bearings.

Mark J. Worden: I'm really excited about the work business, in particular that Robins brings. We knew that they were a leader in that category. They've got great breadth, great strength of brands, a really wide range that meets the Wisconsin and Upper Midwest consumers' needs. So we think there's a lot to mine there and learn from and grow in the future. We also really like, as we think about them becoming part of the Shoe Station operations in early 2025, I really like the similarities between performance running and the high-end performance brands that Rogan's customers love.

Speaker Change: We knew that they were a leader in that category that are great for us great strengths and brands really wide range that meets Wisconsin and upper Midwest consumers work needs. So we think there is a lot to mine there and learn.

Speaker Change: To grow in the future. We also really like as we think about them, becoming part of the shoe station operations in early 2025 really likes the similarities in performance running in the high end performance brands Erosions customers Love really synchronizing right with Schuh station and we're going to really be able to lean into that is.

Mark J. Worden: It really syncs great with Shoe Station, and we're going to be able to lean into that as well. And then I'll give you an opportunity, you didn't ask it, but their kids' business doesn't keep pace with the exceptional Shoe Carnival kids' business. So I think Carl and his team are really excited about how we can take our strength and market leadership in kids from Shoe Carnival and build that as we get into 25, 26 under the Rogans banner.

Speaker Change: Well.

Speaker Change: And then I'll give you an opportunity to you didn't ask it but their their kids business doesn't keep pace with the exceptional shoe Carnival kids business. So I think Karl and team are really excited about how we can take our strength and market leadership in kids from shoe Carnival and build that as we get into 'twenty five 'twenty six at the <unk> banner.

Samuel Marc Poser: Thank you. And then, Carl, I have two things for you.

Speaker Change: Thank you and then call out two things for you one.

Speaker Change: How much have you narrowed the mix on there.

Speaker Change: Throw in deeper on key items year over year end too.

Carl N. Scibetta: One, how much have you narrowed the mix, like narrow and deeper on key items year over year? And two, Are you finding, and the confidence you have in the ASPs, which I understand is athletic, but it's also probably selling more regular price product or product at higher prices than you did a year ago? Do you have more product now that people are coming in and asking for, like, within sandals or other categories? They just say, "I want this particular shoe versus looking for a shoe and milling about to find it, or Brams, for that matter."

Speaker Change: Are you finding and the confidence you have in the Asps, which I understand is athletic, but it's also probably selling more regular priced product or product at higher prices than you did a year ago.

Speaker Change: Do you have more product now that people are coming in and asking for like within sandals or other categories. They just say I want this particular shoe versus.

Speaker Change: Looking for a shoe in billing about to find that.

Speaker Change: Or brands for that matter.

Carl N. Scibetta: Okay, I will tell you on the first part, Sam. We continue to constantly attempt to optimize our assortment and squeeze down and focus in on categories and or items. We try to target percentage numbers, I would say, as a percent.

Speaker Change: Okay I will tell you on the first part Sam we continue to constantly attempt to optimize our assortment and squeezed down and focus in on categories <unk> items.

Speaker Change: We try to target.

Percentage numbers.

Speaker Change: I would say as a percent.

Carl N. Scibetta: Anywhere from, The second part of your question, definitely Sam, the consumer that we're finding right now is brand shopping. And they're coming in, and they're looking for the hot brand in the category. And they have faith in the styling and quality of that brand. So most definitely, the key brands, the key iconic brands by category that we carry are performing very, very well. And then beyond that, we use, as you're aware, we have somewhat of a private label business that we use to drive those big items, and it's an item-driven business. But first and foremost, brands are on the customer's mind, as they're a little bit stressed with their economic dollar; they have faith in the quality and fit of the brand.

Speaker Change: Anywhere from.

Speaker Change: High singles to low teens percent every year and style count.

Speaker Change: Sometimes that vary throughout the season, but in a major focus of ours is tightening the assortment, making big items bigger.

The second part of your question definitely Sam the consumer that we're finding right now is brand sharpie.

Samuel Marc Poser: What are those strong brands?

Speaker Change: And they are coming in and they're looking for the hot brand in the category and they have face and the styling and quality of that brand.

Speaker Change: So most definitely the key brands the key iconic brands by category that we carry.

Speaker Change: Are performing very very well.

Speaker Change: And then.

Speaker Change: Beyond that.

Speaker Change: We use as Youre aware, we have somewhat of a private label business that we used to drive those big those big items and it should item driven business, but first and foremost brands are on the customer's mind.

Speaker Change: Is there a little bit a little bit stretched with their economic dollar that have faced and the quality instead of the brands.

What are those strong brands.

Carl N. Scibetta: Well, I can't go into that, but I'm sure you know who they are.

Speaker Change: Can't go into that.

Speaker Change: I'm sure you know who they are.

Speaker Change: Alright, guys. Thank you very much continued success.

Samuel Marc Poser: Thanks Sam.

Carl N. Scibetta: [inaudible]

Speaker Change: We have another question from the line of Mitch comments. Please go ahead.

Operator: We have another question from the line of Mitch Kummetz. Please go ahead.

Speaker Change: Yeah, I've got a couple of follow ups.

Speaker Change: Mark you talked on <unk> mentioned the benefit of customer acquisition can you maybe elaborate on that are these are these shoe carnival customers that are kind of migrating over or are these entirely new to the organization.

Mitchel John Kummetz: Yeah, I've got a couple follow-ups. Mark, you talked about customer acquisition on Shoe Station. You mentioned the benefit of customer acquisition. Can you maybe elaborate on that? Are these shoe carnival customers that are kind of migrating over, or are they entirely new to the organization? And, you know, maybe you can say about them or how you're picking them up.

Speaker Change: Maybe you can say about them or how you are picking them up.

Mark J. Worden: Sure Mitch, two things. We're gaining new customers in our existing markets, not from Shoe Carnival. We're taking market share in the existing legacy markets, Alabama, Mississippi, Florida, and rural Georgia. We're gaining significant market share and continue to, quarter after quarter, second, with Shoe Station fully integrated into Shoe Perks and shoestation.com fully launched, we're able to now reach other customers even beyond that footprint. And it's giving us a customer base in the states that we don't have current store bases in for us to allow them to mine and understand these new markets outside of where we have stores are looking very appealing for future So it's coming up in both market share growth as well as new markets where we don't currently have it.

Speaker Change: Sure two things, we're gaining new customers in our existing markets not from shoe Carnival.

Speaker Change: <unk> market share in the existing legacy markets, Alabama, Mississippi, and Florida, and our rural Georgia, We gained significant market share and continue to quarter after quarter.

Speaker Change: With.

Speaker Change: Sue station fully integrated into shoe FERC and the shoe station Dot com fully launched we're able to now reach other customers, even beyond that footprint and it's giving us the customer base in the states that we don't have a current store basis for us to allow a mind and understand.

Speaker Change: These new markets outside of where we have stores are looking very appealing for future growth.

Speaker Change: Yes.

Speaker Change: Both market share growth as well as new markets, where we don't have current.

Speaker Change: Stores.

Mitchel John Kummetz: And then, in your prepared remarks, you briefly discussed this potential transition of some shoe carnival stores to shoe station stores. I know it's probably too early for me to ask, you know, what that might do in terms of the kind of P&L, but can you at least say, you know, how many stores you think might make sense for such a transition? I mean, is it 10 stores? Is it 50 stores? I mean, can you give us sort of a rough idea as to how meaningful this might be?

Speaker Change: And then on.

Speaker Change #100: In your prepared remarks, you briefly discussed.

Speaker Change #100: Potential transition of some shoe carnival stores this new station stores.

Speaker Change #101: I know, it's probably too early for me to ask.

Speaker Change #101: What that might do in terms of kind of the P&L, but can you can you at least say how many stores you think my.

Speaker Change #102: Makes sense for such a transition I mean is it 10 stores 50 stores I mean can you give us a rough idea of how meaningful this might be.

Mark J. Worden: What I can say is we're looking at our 34 million customer base in Shoe Perks now, and we see a lot of locations where a shoe station store seems to fit the customer profile very well. We're not ready to give a range or a number at this moment in time, because we're just getting deep into the data, and the data shows a lot of profitable growth opportunities ahead. And so, like I said in my prepared remarks, I'll have an in-market test that I can share next quarter, and we can, you know, give some insight as to, well, where we tried this, and how it is looking in terms of, you know, revenue upside as well as profit. But it's too early to give any feedback at this moment, Mitch, so stay tuned. I am very excited about the data.

But what I can say is we're looking at are 34 million customer base and shoe perks now and we see a lot of locations, where a shoe station store seems to fit the customer profile very well.

Speaker Change #102: We're not ready to give a range or a number at this moment of time, because we're just getting deep into the data and the data shows a lot of profitable growth opportunities ahead, and so like I said in my prepared remarks, I'll have our in market test that I can share at the next quarter and we can give some insight out of awareness we try this in.

Speaker Change #103: How is it looking in terms of.

Mitch: Revenue upside as well as profit, but too early to give any feedback at this moment Mitch.

Mitch: They tuned very excited about the data.

Mitchel John Kummetz: And then maybe one last thing, and it sounds like you guys are ahead of schedule on the Rogan's integration. Just looking at the website there, I don't get the sense that it's plugged into Shoe Perks yet. Maybe it is. I'm just not seeing it.

Speaker Change #104: And then maybe one last thing it sounds like you guys are ahead of schedule on the rogen.

Mitch: Integration.

Mitch: Just looking at the website there.

Speaker Change #105: Don't get the sense that it's plugged into shoe perks, yet maybe it is but I'm just not seeing it but.

Mitchel John Kummetz: But talk about some of those things in terms of like getting it on board with the CRM, loyalty, you know, any adjustments to the product assortment, like in terms of maybe bringing in some new brands. I know that you were able to kind of leverage your relationships with brands on Shoe Carnival to maybe do some things on Shoe Station. I don't know what you're looking to do at Rogans, but how quickly there and then? Is there a digital marketing opportunity for Rogans for back to school like there is with the other banners?

Speaker Change #105: Talking about some of those things in terms of like getting an onboard with the CRM loyalty.

Speaker Change #105: The adjustments to the product assortments like in terms of maybe bringing in some new brands I know that you were able to kind of.

Speaker Change #105: Leverage.

Speaker Change #106: Your relationships with brands on shoe Carnival to maybe do some things on Schuh station I don't know what you are looking to do at at Rogen, but how quickly there and then like is there a digital marketing opportunity for Rogen for back to school like there is with the other banners.

Mark J. Worden: Hi, it's Mark again. Thanks, Mitch.

Speaker Change #106: It's Mark again, Thanks, Mitch you are correct. When you say it is not integrated at all from a consumer standpoint, it's not in the horizon over the next few months our focus in the 18 month integration plan is to have the business fully integrated by early 2025 and that will include <unk>.

Mark J. Worden: You're correct when you say it is not integrated at all from a consumer standpoint; it's not in the horizon over the next few months. Our focus in the 18-month integration plan is to have the business fully integrated by early 2025, and that will include becoming part of the Shoe Station operations. That will include being part of the Shoestation.com experience for the customer, as well as being part of the Shoe Perks loyalty program.

Speaker Change #106: And part of the shoe station operations that will include being part of the shoe station Dot com experience for the customer as well as being part of the shoe perks.

Mark J. Worden: But we expect all of that by early 2025, as we get into the new fiscal year. Our focus right now is on blocking and tackling, getting really the back office integration done, getting operations and customer service done. And that's progressing very smoothly. Really pleased with that. But the customer-facing benefits we would see happening in 2025, early 2025, along with the full synergy capture.

Speaker Change #106: LP program, but we expect all of that by early 2025, and as we get into the new fiscal our focus right now is on the blocking and tackling getting really the back office integrations done getting operations and customer service done and Thats progressing very smooth really pleased with that but the customer facing.

Speaker Change #106: <unk>, we would see happening in 2025.

Speaker Change #106: Early 2025, along with the full synergy capture.

Mitchel John Kummetz: Okay, thanks again. Good luck.

Speaker Change #108: Okay. Thanks, again and good luck.

Speaker Change #107: Thank you.

Operator: We have another question coming from the line of Sam Poser. Please go ahead. Just one last thing.

Speaker Change #109: We have another question coming from the line of Sam Poser. Please go ahead.

Samuel Marc Poser: Just one last thing. What is the difference? I would assume that your average selling price at Shoe Carnival is lower than it is at Shoe Station and Rogans. So, how many basis points higher is it relative to Shoe Carnival in Shoe Station and Rose Sam? Good question. I would say the...

Samuel Marc Poser: Just one last thing what is the difference I would assume that your average selling price at shoe Carnival is lower than it is the chiefs nation and rogen.

Speaker Change #109: Okay.

Samuel Marc Poser: Like how many basis points higher is the.

Speaker Change #109: Okay.

Speaker Change #109: Average selling price within.

Speaker Change #109: Relative to shoe Carnival.

Speaker Change #109: And shoe station and Robbins.

Mark J. Worden: Sam, good question. I would say the average transaction. We want to look at it that way, and today at Shoe Station, it's about 20% higher than Shoe Carnival, and Rogan's is about... 15% higher than Shoe Station. It's Average Transaction, not A.S.

Samuel Marc Poser: Sam Good question I would say the average transaction.

Samuel Marc Poser: We want to look at it that way.

Samuel Marc Poser: Today in Q.

Samuel Marc Poser: <unk> is about.

Samuel Marc Poser: 20% higher than shoe Carnival, and Rogen is about <unk>.

Samuel Marc Poser: 15% higher than shoe station.

Samuel Marc Poser: Average transaction not ASB.

Speaker Change #110: Thank you.

Steve R. Alexander: At this time, there are no other questions, so I will hand the call back over to Steve Alexander for closing remarks.

Speaker Change #111: At this time there are no other questions. So I will hand, the call back over to Steve Alexander for closing remarks.

Steve R. Alexander: We're available all day, so please feel free to reach out with any follow-up questions. Regarding Q2 results, we intend to report in early September after Labor Day, including an update on back to school, which will essentially be complete at that time. So thanks again to everyone for joining the call today.

Steve R. Alexander: Thank you.

Speaker Change #113: Billable all day. So please feel free to reach out with any follow up questions regarding Q2 results. We intend to report in early September after labor day, including an update on back to school, which will essentially be complete at that time. So thanks again to everyone for joining the call today. Thank you.

Operator: Ladies and gentlemen, that concludes today's call. Thank you all for joining us. You may now disconnect.

Speaker Change #114: Ladies and gentlemen that concludes today's call. Thank you all for joining you may now disconnect.

Speaker Change #113: Okay.

Speaker Change #113: Okay.

Speaker Change #113:

Speaker Change #113: Yeah.