The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Daniel Harriman - Sidoti & Company, LLC - Analyst
: I've just got a couple of questions that I'm going to try to combine if that's okay. But given the weakness you're currently experiencing both from
a macro perspective and also the timing of the initiatives and the headwinds that those bring, could you just, I guess, give us your level of confidence
and how strong of a back half you are going to have. And then with one first quarter sales and the weakness that you expect in the second quarter,
obviously it looks like you're expecting a year-over-year increase in the back half of the year. Do you see any opportunity for additional upside to
what you've already guided and then along those lines, what are the key risks that you see in the second half of the year?
Question: Daniel Harriman - Sidoti & Company, LLC - Analyst
: Okay, I really appreciate it, Jackie and Michael, and best of luck with the rollout next month and the last three quarters of your fiscal year. I really
appreciate it.
Question: Eric Beder - Small Cap Consumer Research, LLC - Analyst
: Good morning. Thank you for the details on Project Restoration.
Question: Eric Beder - Small Cap Consumer Research, LLC - Analyst
: Good morning. When you look at kind of, it's really exciting to see you decide to start growing the store base on both sides. What kind of led you
to decide that, and how do you think about the stores versus online as growth drivers going forward?
Question: Eric Beder - Small Cap Consumer Research, LLC - Analyst
: Great. And let's talk a little bit about the split between full price and outlets in some of the pieces here. So you mentioned leather. I know leather's
done really well for full price stores. So how are you going to take that to the outlet stores and offer, I guess, compelling value at leather at the
same time? And I want to clarify something. You talked about collaborations being in both the full price and the outlets and historically that hasn't
happened at the same time. Is that a change in thought process that you'd want to have some of the collaborations at the same time in the outlet
stores that are in the main line stores?
Question: Eric Beder - Small Cap Consumer Research, LLC - Analyst
: Okay. A question for Michael. Inventory, you've done a great job with the inventories. How are inventories going to shift now that Project Restoration
is starting to go into the stores and go live?
Question: Eric Beder - Small Cap Consumer Research, LLC - Analyst
: Great, congrats and we look forward to seeing the stores in July.
Question: Doug Lane - Water Tower Research LLC - Analyst
: Hi. Good morning, everybody. I want to stay on the channel mix here. You talk in terms of three broad channels, the wholesale, the bricks and
mortar retail, and the digital retail. What is the approximate mix of those three as a percent of your business now, and where do you think it will
be after Project Restoration is fully implemented?
Question: Doug Lane - Water Tower Research LLC - Analyst
: Okay, that's really good color. Thank you for that. And just shifting gears to capital here, you mentioned the CapEx at $12 million to $14 million, up
from just under $4 million last year and even $8 million the year before. So clearly elevated capital spending here. So as I'm looking out, is this a
one year thing with Project Restoration or do you expect elevated spending to continue beyond F25?
Question: Doug Lane - Water Tower Research LLC - Analyst
: Okay, that's very helpful. Thank you, Michael. And just lastly, it begs the question, what are the uses of free cash flow going forward?
Question: Doug Lane - Water Tower Research LLC - Analyst
: Is there any talk of a dividend here?
Question: Doug Lane - Water Tower Research LLC - Analyst
: Okay, fair enough. Good luck this summer with the rollout. Thank you.
| 
