HIBB
#Sure.
So as <UNK> mentioned, <UNK>, we are in pilot with the Phase 1 of the new POS.
And so it is still early; it has been a week and a half or so, but they are ringing sales in that pilot store and just working through just the normal course of a roll out.
But so far so good.
And so, we are encouraged by just the very early read.
As we kind of look at the remainder of Phase 1 we are still looking, probably in the third quarter is when we will finish that roll out.
The bigger inflexion point we think is the store to home capability where we are able to send an item to a customer's home.
And so, for that capability we are looking for Q4 of this year to bring that to life.
So we are excited about that.
And then next year we are looking to go online with our new digital platform and we are looking at the second half of the year for that launch.
Yes, I think what we have been hampered with really for the last year has been a price/value relationship that has not been there on some of the signature product.
When you look at the price/value that is there from a Curry perspective and a [Ki're] perspective the sales have continued to be very robust.
But on some of the higher-priced Lebron KD product the price/value relationship was not there and it wasn't as trend relevant from a color perspective.
So based off what we have seen coming with the new KD shoe coming in about another month we feel like the price/value relationship will be much more attainable from a customer perspective.
And we will see value in the product at the price and we do believe it is more trend relevant.
So we feel like the basketball business can have some sort of a recovery, but we are very focused on just ensuring we have the right shoes overall no matter what category they are in.
So we do see, again, a balance hopefully in the back half with regard to basketball.
But our focus right now is more on the lifestyle products.
Yes, we got very significant help from our vendors.
I mean the partnership level that we are getting from our vendors is really unprecedented at this point for us.
We are certainly an integral part of their wholesale strategy is where the primary distribution point in a small market.
So very pleased, very happy and very appreciative of the levels of support that we are getting from our vendors.
No, I would think as we go through the second quarter there is definitely a favorable launch calendar as we go throughout the second half of the quarter.
I said we weren't going to give out any guidance before that.
But we feel very good about the products, the way they are lining up for the back half of the second quarter and through back-to-school and holiday.
So feel like we are in good shape.
Not really.
I mean I think the low-single ---+ there are not really many peaks and valleys that we are looking at from a forecast standpoint.
So, there will be some of that but we don't see any major ups and downs.
Yes, I mean, I can start off.
I Mean, it is difficult and I am sure for you guys it is hard to get a read on it, it is for us too because there are so many moving parts out there just based on what is happening in the macro environment, the launch schedules, the tax-free weekends, all of that does cause quite a bit of volatility in our business.
So, we recognize that volatility, but at the same time we try to make sure we are doing what is right for the long-term because that volatility does seem to level out in the long run.
And so, we don't get too really excited about the ups and downs as long as we know that we are doing good things internally for the business.
Yes, we definitely are seeing an uptick in the service level and in-stock levels.
I mean our inventory management group is doing a fantastic job with that.
So, we still see upside there as well as we see very significant upside with our [save the sale] initiatives as we start rolling those out through the balance of this year.
So many, many opportunities still to enhance our conversion at this point.
It is footwear and apparel primarily, but there's opportunities in every category.
We do expect to get the most significant gains from a revenue perspective out of the footwear category, without question.
Yes, that is still what I am seeing, <UNK>.
Next year should be about the same and, if not, a slightly reduced impact.
So that outlook has not changed.
Yes, from our perspective, I think one of the advantages of having less players out there, we become more important with our vendors.
And I think that definitely has helped.
There will be some categories that will get affected a little bit in the second half of the year, that there will be maybe a little bit too much product out there.
But we feel overall it will be a strength to us as we become more important.
Overall lap of going against a lot of those, we don't have that many stores that we would completely compete against.
But it may give us some opportunities as we look at some of our real estate portfolio to expand in some markets in the future.
Thank you.
Yes, sure, <UNK>.
So as we kind of look at our geographies, we really had a lot of strength in kind of the core Southeast states that we do business in.
As I look at the weaker areas, the Southwest did show some weakness.
If you look at Texas, Oklahoma, Louisiana, New Mexico, that was a little bit weaker.
And then kind of the Northern Tier was kind of in the middle.
And I think if you look at the Southwest, it is kind of a continuing trend that we have seen over the last few quarters with the oil patch activity and things like that, I think that does have some effect.
So longer-term I think that will be a very strong region for us as it has been in the past.
I think we just have to lap some of this oil patch activity.
We really saw that decline starting in about midyear last year and that has continued.
Over the last couple quarters we have seen it stabilize, but it is still below our average run rate.
I would say it would be a little bit more than that, especially with [new] investments that we are making.
So it would be a little bit more than that for this second quarter.
Yes, I think from an apparel standpoint I think we are planning a successful formula on the men's side of the business.
Now it is a question of taking that formula and improving the store distribution with that as far as getting to more stores with that correct formula of men's apparel.
So, we do see that getting better quickly as we head into the summer season and back-to-school season.
On the women's side we've been very focused on more of the lifestyle consumer as well, (inaudible) lifestyle product.
And where we put that focus in play we have seen very nice results.
We are still not at a level yet where it is a meaningful part of our assortment.
So as we go through the year we will see that become more meaningful and get that into additional stores as well.
And our kid's business seems to be a little bit more impacted and trends similarly to the team sports business.
So we still have some work to do in kid's on developing more of these lifestyle relevant assortments.
But overall I definitely feel like we are making progress, I definitely feel like we are finding the successful formulas.
Now it is just to get those formulas into additional stores where we can really take advantage of it.
No, we are absolutely shifting to the casual lifestyle piece and have been for the last few at least 12-month period.
We continue to see very significant opportunity there.
We are hopeful that pieces of the basketball business that aren't performing have an opportunity to get better.
But we are looking at both of them and needing both of them to continue to improve and to continue to grow to offset the running business.
That is our most challenging category currently in looking (technical difficulty) influencer the product that is there in the core running business is not resonating with that consumer.
So, we do feel like there is some improved product coming throughout this year that could help us a little bit in running.
But we absolutely are investing in the casual lifestyle and just trying to ensure that we have the coolest shoes across our different store types.
I mean, it is very possible.
I think right now that there is a lot of strong sneakers that are selling across all categories (technical difficulty) and just ensure we have the ones that the consumers are asking for no matter what category that they fall into.
So, I think currently there are, without question, more cool sneakers that are coming out of that casual lifestyle area.
And definitely see that continuing.
But there are also very cool sneakers coming out at the basketball category.
So we see that as well.
So, our focus is just to ensure that we have got the coolest sneakers in as many stores as we can.
I think if we continue to execute to that no matter what category they fall in we should see nice growth.
We are still seeing the ASPs grow on the footwear side.
And while the signature basketball piece may not be as relevant or as robust as it was, it was not at the levels of our overall business where it impacts the total.
We still have significant AUR growth opportunities across all other categories that will offset it.
Yes, <UNK>, this is <UNK>.
First and foremost the priorities for the cash will be to build new stores and remodel existing stores, invest in our major initiatives including the omni-channel initiative and then after that free cash flow will be targeted towards stock buybacks.
Last year we finished the year at about $32 million in cash.
We should be at or slightly above that number for this year.
So, we still have quite a bit of a availability under our authorization and our cash flow to execute a significant buyback for the year.
Keep in mind that the first quarter typically is our high water mark in cash.
But I would totally expect a fairly sizable buyback for the total year.
<UNK>, really that real estate out in the marketplace, there is plenty of markets to go.
We still feel that we are going to hit net 40 to 50 new stores.
There is a lot of markets still out there, there is still a lot of small towns that we can put stores in.
So still getting the same type deals.
Sometimes a little bit less, sometimes a little bit more.
But we still see that there is a lot of space out there for us to grow for a significant number of years.
As we look to the West, California is a state that we are looking at that is a huge state, has lots of small towns that fit in exactly what we are doing, especially as <UNK> talks about that 17-year-old customer and the lifestyle and that it fits right up to what we are doing.
And we see that there is some opportunity as we continue to look West.
Yes, <UNK> (technical difficulty) somewhere October/November time period to start putting stores out there.
Correct, <UNK>.
It is the performance business.
Yes, <UNK>, definitely.
Bill Quinn came on board and the has really hit the ground running.
And so he is giving us the opportunity to move it up a bit.
It is ---+.
Yes, it is, and we will definitely have more color on the next call as we go forward.
I think, <UNK>, the way you have to look at it, that millennial customer has really kind of shifted on priorities.
They are not really ---+ they like to go to a gym, they like to do CrossFit they are not running like the traditional runners.
And I think more and more of our customers want a shoe that looks trend right and that they could use for multiple purposes.
They could wear it out or they could wear it to the gym.
So, I think you are seeing more of that because people aren't running long distances.
Most of these kids today, they want to go to a gym, be done in 30 to 45 minutes or go do some CrossFit.
So, I think that performance running piece right now, I think that is what you are starting to see a lot more of.
And it is really about having trend right running looking shoes so the kids can use them for multi purposes.
I think it is a combination of things all of which we are working on.
From a merchandising standpoint, as we have talked we feel like we are making very good traction there, markdown optimization starting to provide some benefits later this year as we look to go store to home.
As we have said, that will significantly help our conversion rate for existing customers coming in.
Then we get into our digital online business.
So we have a lot of things that we are working on right now and in the near future that we think will help us get back on that trend.
And <UNK>, for us, all these investment, I know the last couple years has really built a great foundation.
And as we have been able to utilize the DC, utilize markdown optimization, be able to send stuff to the customer's home, we should be able to get back there with all the tools.
We were just fighting sometimes with one hand behind our back in not having those tools.
And we are about to embark on having all the tools.
So, we feel very good about where we sit today.
And I mean we feel like investments that we are making does cause a temporary dip, but definitely an investment for a better future as we kind of look at our strategy and starting with the store's first, enabling them to fulfill product once we get online.
One of the reasons we are doing that is just from a customer experience standpoint.
But as we scale up that online business that will give us very good leverage on a fixed cost base that will help us in the out years.
Yes, I want to thank everyone for being on the call today.
We look forward to having you join us again at the end of the second quarter, but we appreciate all your support.
