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: Dylan Douglas Carden - William Blair & Company L.L.C., Research Division - Analyst
: I had a separate question, but I wanted to sort of confirm, Dave, did you say the CapEx number over the next 4 years is going to be a cumulative
$280 million? Did I hear that right?
Question: Dylan Douglas Carden - William Blair & Company L.L.C., Research Division - Analyst
: Okay. So that's a good -- bit more than, I guess, we were anticipating. With things like sort of some of the margin pressures you're seeing now that
higher level of spending maybe some marketing increase to support these newer brands. I mean the margin flight path here, would it make sense
that you're going to see more pressure in the more immediate term as it relates to some of that spending, some of those layered in costs, particularly
in the front part of the 4-year outlook?
Question: Dylan Douglas Carden - William Blair & Company L.L.C., Research Division - Analyst
: Okay. So it should be relative -- I mean I'm not going to hold you at any sort of given flight path, but it shouldn't necessarily be a dip down in a dip
up, it could be relatively straightforward linear progression in margins to 2025.
Question: Dylan Douglas Carden - William Blair & Company L.L.C., Research Division - Analyst
: Okay. And then the question I actually did have is, I'm curious, the brand portfolio strategy and the rethinking of the DTC model here, I'm just
curious kind of what the opportunity is as it relates to brand integration the crossover that you have as far as the customer profile in some of these
brands, yielding them up across different brands themselves, marketing efficiencies. And then on stores, how you're thinking about how you
reimagine? It sounds like there's a retrofit as opposed to sort of reimagining the store itself, kind of -- can you just give a little bit more about what
that looks like? And what that looks like, particularly from a branded portfolio? Is it going to be all 4 brands in one location? Is there going to be
sort of different facades? Just anything there to kind of paint the picture would be helpful.
Question: Dylan Douglas Carden - William Blair & Company L.L.C., Research Division - Analyst
: That's helpful. And just on that last point, the sort of the fulfillment infrastructure, just the infrastructure more broadly. I mean, you guys have been
sort of going in and spending in these categories already. What kind of -- if you can give me any sense of what gets layered on incrementally as
opposed to sort of what you already have? That would be helpful.
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