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: Paul Kearney - Barclays - Analyst
: Hi, everyone. Thanks for taking my questions. Just two quick ones. So can you further elaborate on the opportunity you see for the Converse license
and how should we think about future license additions from here versus the current (inaudible) brands?
Then second, inventories for the quarter remain incredibly clean. Can you talk about maybe the composition of that for owned versus licensed and
how should we think about inventories through the back half? Thank you.
Question: Paul Kearney - Barclays - Analyst
: Thank you very much. Best of luck.
Question: Chandana Madaka - KeyBanc Capital Markets - Analyst
: Hi, everyone. Thanks for taking my question today. This is Chandana Madaka on for Ashley. So taking in results and guides for 3Q, there's a step up
that's expected in the 4Q. Just wanting to see if you could speak more around what's driving the confidence. I think, I mean, you've mentioned
Champion and Halston have hit the floors, order book in a good position, digging in further there? Also, if you could call out any categories that
have outperformed, that would be very helpful. Thank you.
Question: Chandana Madaka - KeyBanc Capital Markets - Analyst
: Thank you. I appreciate it.
Question: Will Gaertner - Wells Fargo - Analyst
: Hey, guys. Thanks. Thanks for taking my question. So it looks like SG&A down in 2Q from a growth perspective, how do we think about SG&A spend
into the second half of the year? And then how to think about this sort of heavy investment cycle that you're undergoing here to invest in the own
brands and the marketing campaigns? How to think about that into next year? Is that going to continue and how long will it go for?
Question: Will Gaertner - Wells Fargo - Analyst
: Just, can I squeeze in one more? Just on the visibility into your order book, US versus Europe, can you maybe just frame up what you're seeing in
both regions and how the order book is shaping up?
Question: Will Gaertner - Wells Fargo - Analyst
: Understood, thank you, I'll pass the line.
Question: Mauricio Serna - UBS - Analyst
: Great. Good morning and thanks for taking my questions. A couple of questions to start. Maybe, can you give us an idea of given the success that
you've seen with Donna Karen so far, like how should we think about that size of a business expected for this year?
And just to make sure I understand this, on the guidance update on the EPS, it seems you beat the quarter Q2 by $0.25 and you're racing by $0.37
at the midpoint. So that $0.12, just to understand, is just mostly lower interest expenses and the impact of the buybacks, or is there any changes
in terms of the margin outlook that we should be considering?
Question: Mauricio Serna - UBS - Analyst
: Got it. I think the guidance is $22 million for interest expenses for the year. Is that right?
Question: Mauricio Serna - UBS - Analyst
: Great. And then just one last one if I can squeeze this in. Maybe could you just give us a sense of how to dimensionalize, Converse, roll out over
time in terms of the distribution, the retail partners that you would be distributing the brand to. And again, in a way, what kind of size do you think
that business could reach in the long run?
Question: Mauricio Serna - UBS - Analyst
: Great, thanks so much, and congratulations on the results.
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Question: Dana Telsey - Telsey Advisory Group - Analyst
: Thank you. Good morning, everyone, and nice to see the progress. Morris, if you look at the opportunities for the licensed brands, certainly the
success of Donna Karen with more to come and now Converse. How do you think about the distribution expansion, where the growth comes from,
categories, distribution channels, regional, international versus the US? Is there anything of each of the brands that would be more the standout
as we go through the rest of `24 and into `25?
And then Neal, anything to mention on freight costs and what you're seeing in terms of supply chain and lead times? Thank you.
Question: Dana Telsey - Telsey Advisory Group - Analyst
: Thank you.
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