Guess’, Inc. (NYSE:GES) Q3 2023 Earnings Call Transcript

So just trying to really take that opportunity to split the benefit that they are experiencing so then our cost becomes a lower number for those areas. So and Dana, we have done that with reasonable success.

Dennis Secor: Just one other point I’d add – make on the cost structure there. Another element that’s been impactful has been freight. Airfreight last year with product delays, we airfreighted a significant amount of inventory just to mitigate those delays and that drove significant cost increases last year. That’s not happening this year because of the strategy to get product in earlier. So that’s working for us. So this year’s airfreight usage is down significantly at an ocean rate versus last year, those had been increasing significantly and that’s been impacting our inventory costs and margins this year, but more recently those rates have been falling. So we’ve contemplated improvement in our outlook. Just keep in mind that doesn’t necessarily results in a big tailwind in margin for this year because it’s got to roll through the inventories so that might be more impactful into next year.

Dana Telsey: Thank you.

Carlos Alberini: Thank you Dana.

Operator: Thank you. And at this time, we have run out of time for further questions. I will now turn the call back over to Carlos for closing comments.

Carlos Alberini: Thank you. Well, thank you everyone for your participation today. We are very excited about the holiday season and we are confident in our long term future for sure. We are managing the business well. We think that we are focusing on what we can control and we are adapting relentlessly to this dynamic environment. It has been super dynamic. We wish you a very nice Thanksgiving and happy holidays to all of you and we look forward to speaking with you again soon. Have a great day and thank you again.

Operator: Thank you. Ladies and gentlemen this concludes today’s conference. Thank you for your participation. You may now disconnect.