JOANN Inc. (NASDAQ:JOAN) Q3 2023 Earnings Call Transcript

Scott Sekella: Yes, I mean a lot of the Focus, Simplify Grow impacts SG&A will be more in fiscal ’24 than Q4. I do — I expect Q4 SG&A to be a little bit in line with how Q3 progressed. Q3 was up year-over-year, as we mentioned with the new distribution center. The other piece is where we are lapping some favorable incentive comp, and then we had to change our stock-based compensation due to a change in retirement policy. I expect overall incentive comp to be slightly favorable in Q4 versus a year ago as we lap some of the items there.

David Lantz: Got it. Thanks.

Operator: And our next question is from John Nusbaum with 400 Capital. Please go ahead.

John Nusbaum: Hi. Thanks for taking the questions. With regard to the $200 million in cost savings, did you say already what the cost or the expense of achieving the $200 million will be over the 18-month period?

Scott Sekella: So — hi, John, it’s Scott. So at this point, we are not planning or anticipating restructuring charges or anything like that. There could be some as we get into it, but nothing that we’ve identified at this point. But as Wade said, as we go through the program, we will keep you updated. And if we do incur some, we will obviously let you know.

John Nusbaum: Thank you very much.

Operator: Ladies and gentlemen, this concludes our question-and-answer session. I would like to turn the conference back over to management for any closing remarks.

Wade Miquelon: I would just like to thank all of you for your generous listening and dialing in today. We work hard every day all of our constituents and we will keep doing it. I think we’ve got a great opportunity here. It’s ours to go get and we are after it. Thank you.

Operator: And — thank you. The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.