GIII
#Thank you.
<UNK>, it's too early for us to do that.
We've been on sale for parts of the year.
We haven't decided not to size that just yet.
That's an excellent point, <UNK>.
We have done some of that.
We've exited some of the smaller businesses that are space intensive, people intensive, and, really, at the level that we're at and the sights that we've set for ourselves don't rationalize in our business any longer.
There have probably been a half a dozen of those that have been eliminated, things like Sean <UNK> and Jones New York, to a major degree, Nine West, the dress business at Andrew Marc.
There are a lot of elements that make up the portfolio of brands and businesses within G-III and we've exited them.
We're under review with several other pieces of business, some that are mildly profitable and some that contribute to the reduction of our corporate overhead, and some that don't will go away.
I'm not aggressive on opening new stores.
Currently we're committed to several leases for this year.
For Wilsons we have five new stores opening this year whereas last year we had about 15.
So we've tempered the growth until we figure out what the consumer is all about.
We're a little confused.
We don't know if there's long-term instability on outlet centers such as Orlando, Las Vegas, Woodbury Commons, Sawgrass.
These are premium centers for us, premium in the sense that they provide the biggest share of our revenue.
And as I said earlier the traffic is down dramatically.
When you're down in your top stores, it's very hard to redeem it in your local centers.
So we're reviewing what we do with retail.
We have three different models.
They all have different dynamics.
We're finding some wonderful opportunities in Vilebrequin.
We just opened three new locations in Germany.
Those locations weren't available to us in the past.
The locations of Vilebrequin are very small.
The CapEx in these locations is very small, as well.
And they fit into the long-term plan of the business.
We have an unblemished brand that's careful on how we open stores and we will continue to open those.
We flipped a little bit.
Two years ago the strategy was to open more American stores and less European stores.
Today, we flipped it.
Europe is doing better than the states and we have opportunities that we never had in stores.
The third model is the Bass model and that's a little interesting.
I encourage you to walk into a Bass today.
If you were in a Bass store a year ago you'd see a dramatic difference in how the product is presented, the quality of the product, the promotions that are being run throughout the store.
And I will tell you that we're opening an outlet store in Manchester, Vermont and another one, a refit, in Woodbury Commons in late April.
The Woodbury Commons will show you what the future of Bass might look like.
The store's a little bit smaller.
It will be much more intensive on the footwear side of the business.
And we believe that we have a gem in our hands that just needs a little bit more love before it gives us the earnings stream that we think is still attainable.
You're welcome.
Thank you for your question.
What I'm referring to is the full year going forward and the order book really is soft at this point relative to where we've been in the past.
And I think that's retailers really also still trying to figure out and adjust to what their formal plans will be for outerwear next year.
We're generally around 50% complete for the year in total, all categories.
And we're slightly below where we were last year.
No, it's too early to do that math, I think, <UNK>.
We're still anticipating lots of orders to come in on both categories.
So we're not anticipating any future degradation to that book.
We're not seeing it yet.
We are really still experiencing unseasonable weather and actively promoting to move goods where that makes sense.
What gives us confidence at this point is that we really think that this is a very unusual weather pattern that we experienced for this past year.
If you look at the previous few years of Wilson's performance, the performances was much better and we don't see anything fundamentally wrong with our box and our model of what's going on at Wilsons.
We think that in terms of bounce back, we think we will get a bounce back on weather.
In terms of tourism, not sure that, that bounces back quite as quickly or as robustly.
<UNK>, in a follow-up to <UNK>'s answer on our order book, when you have elements of our business that are bought, they're not seasonal, there are multiple buys.
As we build a dress business that delivers many times a year, as we build a sportswear business that delivers many times a year, as we build a footwear business, those orders come in by collection versus the coat business where your orders are in early.
There's an element that you can refer to that includes just the coat business.
But what we've just done is we've put online Tommy Hilfiger, we've put online Karl Lagerfeld, we have Bass sportswear.
All these orders are not in.
They're not in early.
They're bought relative to a collection.
So the anticipation is that relative to our plan, the percentage of our order book would be less.
That's the rationale.
Thank you, operator.
Thank you for joining us this morning.
And hopefully we have results that are more appealing for our next earnings release.
Thank you for staying with us and have a good morning.
