Helen of Troy Limited

Q2 2022 Earnings Conference Call

10/7/2021

spk_0: you eleanor try ltd second quarter twenty twenty two earnings call at this time all participants are no listed only mode a question and answer session will follow the formal presentation
spk_1: if anyone should require operator systems during the conference please press start zero and your telephone keypad please note this conference conferences being recorded i will now it's in the conference over to jack johnson senior vice president of corporate business development they give you may begin they do operator canoeing everyone who want them to only choice he dove into be burning up and go the for the called this morning his advantage of you can read discussion board the bin ladens if the union limburg the company ceo coming down the financial performance of the quarter and specific programs owners pretty big initiatives then you're dying glass the convent fear though and that authored the company's senior vice president of corporate finance you define your to the more detail and comment on the company thousand and fifteen to twenty two following it you can in a bird with the grab you draw third the questions you have a good today because because they contain certain told that indicated that are based on then concurrent expectation that respect the future events financial performance generally been helping to stage the least expect in other words similar i would have been buying bored looking statements all looking statement of seven to number of risks and uncertainties they can talk a good feeling about to get on purely from the actual about if comic con they all team and intonation that may be considered non gap image in a dimension beat now get measures are not an alternative to get an inch and the nation and then any calculated bin laden the non gap financial the nation which compare the party the company coffee definitely not played on the reliance on board the in a month for nine gap in the nation before i joined all over the familiar i would like company been just calling get a coffee drinker in germany has been posted the relations action of the company website at www dot own toy dot com the earning for the contains table with that reconcile non gap financial measures to their corresponding gabby snatchers and really can be obtained by collecting need better relations tab unaccompanied home page and then the presidency tab and the now from the conference call over in the dark thank you jack good morning everyone in thank you for joining a i'm looking forward to reviewing our second quarter results the dividing perspective on the higher revenue and he be about look at me announced earlier today debating new monarchy or see progress and it is getting several important organizational topics with you before doing so i want to provide a brief update on the pp a matter disgusted our particular call in july and august by our in better be the nation and ak violent as a reminder in july he'd be a modest changes to the laden planes on our existing water filtration packaging which we implemented that the subsequently began shipping minute quantities and lead to report that the shipping volume brought were product products continue to increase the camber return to more normalized shipping level in august we communicated with the he'd be a had a cool changes to our air filtration packaging and we began shipping limited quantities of the impacted product at the end of that month it back to return to normal i'm alive level of shipping activity bar honeywell air filtration photic by the end of my third quarter of the twenty three today our main message on the largely resolve the be a matter that we have the material and labour currently needed to rework be affected inventory and are accelerating that work rapidly you're making good progress on the million been affected packages putting up in a better position deserve our retail customers he thanked them for their patients that appreciate how could be they had worked with us on pure the are turning the tide in the marketplace he had made significant progress on reducing out of stock and earning back market share their party indicated dating show pure out of stock and improved by more than thirty point and market share that by more than ten point in mid august more extensive and complex we work on the air affected beer of the on the air affected purifiers is well underway and a primary focus a lot like to thank the hundreds of helen of troy okay to work tirelessly to resolve the matters and minimize the impact the consumers to retailers into our business it could not be more interest or crowder of the way they blow to the work without the plane they worked together seamlessly often around the block this is helen of troy that's fine and in our culture in action now thirty four second quarter notes overall a quarter exceeded our expectations our diversified portfolio once again delivered a bouncer though the counselor the beauty both rolling over major double digit detailed increases in the second quarter of last year and help him home but earning less than expected during the favorable resolution to the be a nutter our leadership by and outside of help and on had excellent book led by dr are either black and hot to all of which they've had already been a year ago they on the pandemic international at a valid grow in failed in the second call are the online failed or eighteen percent decline in the quarter reflect to pay first a blocking a compared the bit the climate due to the impact of our stopped ship action at he addressed to eat be a matter checking even though cause you in the main path of mine many containers are returning to important shopping compared to the previous year on call the related foreclosures accelerated the larger trend a brick and mortar stale that we're shifting on law eating more about bail been brick and mortar bit cooler online represented twenty two percent of total fail similar to our people get online penetration a bit funny yeah bleacher report any pf the two dollars and fifty five that you to the head of iraq vacation it reflects like an expansion in god profit margin than of are higher margin branch the environment partially offset by more normal i've leveled the battery pencil or to the depressed spending level during the peak of the pandemic in the year ago base he jeffrey vs result of of like the hard work to address the head when in the widespread that inflation affecting nearly all and book cause such as material labor and transportation and one of the was done to blonde that much as possible the impact and significant levels of like a disruption been a nearly every back to the global common getting back to look at the first half about that the year your are to be growing up poor failed and a little flat for jeff in each year compared to the especially difficult than power and when the fire year period he achieved that the fight the eg a matter and bit by bit significant obliging related had been a diversified portfolio played a major role in their called beauty and how for and both significantly over there higher babies in the first half of last year taking a look at both the by chain of challenges our investment in inventory earlier this year have been an important on the on litigation and i are inventory also position that balcony to man and better manage supply chain disruption he believed having more inventory on hand ahead of our baby season and to three and you for the help of meet consumer demand and cancer and meet popular expectations in the back half of bit fifteen year we have made need you to about they negotiated he for a contract the great considerably lower than the current elevated spot market at all of our mitigation band we began to implement tried concrete bump certain brand most of which became effective at the end of the second quarter banking on other brands will big plate and third call that the benefit being the alive in the second half of the year an individual twenty three he a pig it a measure to approach i'm quite in which is designed to protect our market shared by managing sequencing a price on i'm very proud of our global operations team and about the the june it all of whom have worked diligently to contain and biggest pop clean up the oxygen needed to continue to invest in a with hey along with our those people around the world a highly engaged into the attic and dedicated to further jago projectors they are currently building and played additional not mitigation fan according to exploration of further by increasing all to address the inflationary pressures and that the by change disruption that show little sign of abating in the short term we believe that the powerful combination of containment and investment is the exact right formula for drive idol initiative for the balance of are paid to transformation and to create incremental shareholder value oh now like the catch i'm an adult been our business segments for the beck and call awkward like the way hoping that they'll go the point that would ban on top of twenty point three percent bump in the pecking order last year the waffle and how the black experience valid organic wrong reflecting both domestic and international trade article continued to go overgrown a key brick and mortar retailers as captain fire call we believe the new younger household penetrated during the pandemic and the containers they would become even more familiar with up so exceptional bought the bomb of the better or sticky continue to be the market leader and mentally of the you have pitching get catholic category a compete them after little bit and be aligned made healthy contribution to the quarterly growth long with new product that are gaining traction with consumers the fostering that specialty retailers in part to a surgery wedding about founder and called it after domestic brick and mortar growth in bombay the called all channel at the club after all to earn strong growth internationally especially in india a fire investment and plant long in the works paid off with him to go a possibility in that reach i either black all bizarre blob a strengthened electric brick and mortar written by retailer been creeping orders to replenish been a back to school be them and report expected future the man on top of the current acceleration in pre holiday ordering being healthy inventory retailer replenishment in line with a strong talking alone customers were we have that ability internationally hydropower even faster than early concentrating canada and asia pacific new product introductory beyond the bottle contributed to go in the corner a good thing was pursued more outdoor activities by the home in the current called and divine within our bottom line the new colors devices in the ball collection game either consumers another motivation to add just one month and question their collection more energy that the height of that can continue to be a strong feeling of one high profile example we're very pleased with the mom dial view the have popular new hybrid that you have a bottle of the olympics only the beauty of segment delivered it eleven consecutive quarter of failed brawl between it's remarkable transformation literally that began in the middle of a swamp oh bail for up the whole point eight percent in the quarter finding over thirty four point six percent growth in the second quarter of last year i'm a coordinated which xp be impacted the personal care to admit that me divested in june of if year the repeal the thirteen point nine percent and betancourt a leadership by and guy bar part to lead the boat and beauty is growing consumer demand diving into traffic it broke amount of mourners doors a focus on could be has been tricked innovation and strategy a good better best in beauty of by until he's paying off and you're paying dividends the clock bram region and channel the gone contribution from by by ought to rack long and benefit dr are having a terrific year and making a considerable contribution to fails both and profitability it's gone product innovation be included in the brick and mortar channel expanded distribution and the reopening of belong the brand been a strong growth trajectory they the hundred and twenty two are expected to be ahead of our people with expectation and higher margins are contributing to on next you're delighting consumers the ending of a one that deliver consumer know that will benefit yeah probably the single a clients the ball with your of ultralight dryer and are liquid black butterfly redistribution of popular destination like new openshaw inside target and news for a shop in fact poll divide the opportunity to introduce the brand the more consumers shopping in the mass channel while maintaining drivers for each positioning a guide up to it all to having a great year and a contract to reach record sales level be bit of money to our beard better bet beauty strategy is all but paying off of expansion of hot food and a professional channel too often include week there he launch happy to get your theory in two thousand nine pm between professional quality features and functions to a blogger demographic the get your theory could go on each year think the introduction and the achieving marketshare games ago that the learned it's present and thought of minor financial are want that volume managers and waivers remain strong our investment and social media individual pumpkin continued to elevate the profile of that value managers will be giving users and attracted to one to the franchise one that our mind the you are now over three hundred and fifty thousand at an average of four point six stars on amazon along with eighty percent of those five that the volume my your health of penetration well below conventional a can you believe the franchise that the get a good way to go to new to go to new product innovation and expansion into the geography a major one recent example that read one thoughts which isn't arriving on shelves now ahead of the upcoming holiday see that one plus class features in addition of the betting leaker handle and by a third person they include internal technology that exemplify our consumer centric approach our goal is to keep delivering innovation that maintains are significant market share lead in the volume magic begged me that we created beyond volume view innovate in other parts about beauty portfolio of the labor's on our bed had planned demonstrate that we are continuing to drive the man and share leaning on trent thought of across thought a category he also did well international continuing it's stronger the latin american in with international shared the largely the banding we're investing in the by prospect repeat for further international good to help and home sales declined by thirty three point one percent in a technical primarily as a result of the voluntary back shipments related to the be a matter and a particularly tough comparison to the second quarter last year in would be me to thirty three percent behind calculated thought of people with for bit more perspective a bostick month a bit of money to like few years back and better than show the total bailed for help and homer up and percent compared to the first half of if the twenty even including a piano at the we the breath and the ship a good thing if you were probably affected item yeah labeling i feel bad for the segment for the remainder the year and the main competent in the long term prospects unicorn on the farm strength and federal areas of the help and home portfolio fixes bromley like breeders blood pressure monitor them pulled back the letters and also on honeywell peters on the telephone people over into the second quarter to reduce the impacted before congestion and availability constraints that you containers dropping your case the be or prior investment in developing new help him home particular category the blood pressure sinus and all that matters now that involved in that category and your diversifying help them all into adjacent of there areas of long term potential and thermometer while the overall market with lower in the second quarter compared to the high court date the last year our market rebounded shot are you at the monitor shares now minded pretty pandemic share novel as we fall to the availability of our market leading thought they could be years before if the driven by are get them to improve our supply chain and by hire inventory levels which a draft out of started retailers inventory the channel healthy in laugh and the your shipping line with the bench and want the international he thought balibo than the quarter to round out an outstanding first path doubling down on international an important strategic choice and up a few strategy now happily invade to be the main ahead of the glide path we outlined about two thousand and nineteen and better day to create at least one hundred million dollars of incremental organic bailed out by the like paid by the individual twenty four second corner benefited from the of investment made in the second half of it's funny one to support needed to be shown in continental europe add to their support to are uk businesses an increase of learned the brand that the monitors in asia beauty and how players lead the way he thought drain in both brick and mortar and online man for the monitors remain strong anemia revenue and profitability for beauty and media and latin america all continued their shortly and amy and market years ago that wagner to be achieved international market is the buying the female to continue making that comes with attracted our allies intended to further gallery go about by the united states he stepped back to look at the full bit of your twenty three we are in a position to raise our outlook today on a core just the basis of the high end of our range or outlook indicates go on both the top and bottom line are very pleased to be able to do good considering the elevated be laid down last fiscal year infidelity significant financial inflationary path to victory in fact the be a nap the going to the first cap and i include outlook for the balance the big year allows us to increase out for for that a patient and all to that effect you the and housewares a both expecting to deliver healthy globe in revenue and profitability and papa be elevated days they laid down last year they've been available recognition of the be a narrow our health and home outlook a dolphin while inflation remains an issue we are pleased to get up in your outlook he continued in back to the out we're if the longer term using our path experience overcoming very if adnan the just paris over immigration a global been so good putting together the best florida possible to address the external challenges facing virtually all happens i'd mentioned in our last call you're actively involved and devil i'm in a profit and remain committed to putting our strong balance sheets work to create additional shareholder value by adding attractively bran and of tweeted that it's a math to apply we're you may have been in a lethal patch relief he added a five hundred million dollars yearly for to stop innovation at the end of the quarter getting up in a position to continue to opportunistically report our staff from time to time the boy wrap up by large i would likely to accompanied the any excess and finally consistent with our caught the purpose which is the elevate live before together it was important work and i am pleased with the plot you're making do be captured many affect the that regret that are course
spk_2: he told him that cup customers and share
spk_1: colors in august retarded walmart project good fun which is intended to help eliminate fate of the the kind of the to emission this key cut in iraq the like are helping combination of a walmart didn't move for the second consecutive year the of older than likely clean air into the as scores from my on tracking age do better than the pinch not shareholder services going back and quarter iota acknowledged that the fgf and by now rating helena george bush's for in the top their fall have been taken pair of to improve and the market what improvements in the bottom twenty percent backing just one year ago i have that retirement it's wanted to also improved markedly over the past year now and attack thirty percent of company big compare a few up in the bottom that file a year ago and governance diet that will help because the remained in the pop get out of the past several years internally our thirtieth enthusiastic with the board and a club as well i imagine i would put our next day including by overall yes to strategy and bet key initiative in the broader base is pretty good transformation plan the tried to all that we do with helen of troy of the popular public the mark the or at our annual meeting of shareholders on august eighth grade level month ago he began acting recruiting to add a new director to our board it would elected had three specific goals bird with the add additional outstanding a decade of experience in the global the democratic industry and top of one hundred plus years already represented on the bullet back in it the ad racial and ethnic diversity and thirty to add even more gender diversity even be bold will deliver on our broader corporate diversity and inclusion initiative as well as the board independent bowl are now blow organization i would like to make a few comments both of you who have been following a multiyear transformation know that we've been building out our organizational capability and leadership team for many years is talented team that we in place now and the powerful country that build have helped drive revenue growth the more than forty percent in the lab for years and adjusted dps go of more than six the percent over that same time period have you look at the back half updating our long term project very yeah ready to add achieve operating officer to a global leadership team the help drive a significant banned can be had for the coming years he had begun with treaty didn't speak english and with reporting in in i'm taking stock of week development of the dealt with area we had decided to those found in a turn to often for are of control worth a heat of january we intend to implement the fame hybrid model we discovered that hope over to go if we believe provide the best balance that the proven benefit the work from home two days a week and the irritate them a power that impose in collaboration provide during the remaining three days each week all along the a by our tag the health and safety the lights are you putting our people first it can block went the boat and walking the talk on our culture before element the proven to be a powerful palm combination during normal time as well join the extreme circumstances go with ninety bought her to call over the blind and i want come again acknowledges significant contribution to the death of our company over the past fifteen years in the transformation good leadership strategic thinking about standing future of our finances that no gimmicky after he didn't invite the friendship will be missed as previously announced that osborne officially stepped into the apple chair on november first loving on all of his drank mac is already demonstrated the business and in the organization of of it that five years of hello joy i look forward to the many valuable contribution she will make in the theater well as we continue to beijing of our transformation and beyond that i will now during the call over to blind becky julian good morning everyone and thank you for joining us make some high level comments before handing it over to mad cool review the second quarter results and a revised outlook for the for fiscal year twenty two in more detail really for you to their second quarter the phone number of are intrinsically chart fails and consumer done and across the house version beauty portfolios and continued expansion of our international business in that country made and product innovation operating efficiently shared sort of and elevating and unifying or people are paying off we believe they're fueling are flywheel for the remainder critical twenty two and beyond or health and home stagnant failed decline primarily due to disruption from alleviate matter but we believe we are cheating that that off while come under the circumstances none of it would be possible without the strength and resilience of operation pain and northern mississippi and it's incredible leaders but i've had the honor of working at during my time here i'm analysts working with you guys can do that soon although we continue to faith unprecedented global supply chain disruption and inflationary cost pressures i'm proud of work we're doing to continue to mitigate be challenging and maintain the momentum for a long term growth trajectory i'm also very pleased that were able to improve our old fiscal twenty two outlook give it a strong results in the second quarter and a more favorable than expected resolution a bp a matter finally a fight like say a final farewell and express my gratitude the julian the board and all the talented people who have the good fortune of working with especially my good friend he mentors tom benson events carson i said the majority of my career helena try and help in shape the company's transformation has been an incredible experience that i wouldn't trade for anything a very crowded what we've accomplished and i believe that the back to get the calm the company is in great hands and what that have been handed over to match to take up to the second quarter and physical twenty two outlook and more detail thank you brian and the top i'll hand off i wanted thank you for all your hard work financial leadership had a mentoring you will the net and we will issue that to blocking a new endeavor as we look at our dog if the tail and to financially all the personal care that much impact he had significantly for the quarter i compared to the limited view of the look at our operation the corps basis which excludes the regard for the entire current don't care but not in all period and provide adaptability between a charcoal and future period accordingly i will be referred to i'm not sure to recalibrate my remarks today now turning to towards second corner cohen and not be fine seven point six percent an early do the ukraine who failed and help and home stagnant as an adult the bp a matter it was partially offset by strong consumer demand and one filled know that brick and mortar and the beauty and housework pregnant a dwellers the favorable comparative impact probably making related to cause your dirty store traffic in the prior year period oh stop it marked increase your point one percentage points to forty four point three percent primarily due to more favorable product next within the been stagnant and it a normal max of more housework and container supply shortages and a less favorable channel max with the an outward segment or as you in a ratio increase five point four percentage points to three point one percent i'm trying to on seven percent in apply year period benefited about significant breeding lovebirds fails to twenty percent and lot lower than normal level the personnel and advertising expensive expanding in the it was restricted due to temporary college related cost with optional michigan and the criterion are also unfavorably impacted by higher distribution a great example a operating leverage higher share the computation exam and key a compliant car yeah operating income what sixty seven point three million dollars or fourteen point two percent on that grab him on an adjusted baby operating margin decline three point three percentage points to seventeen point one percent i married you to the higher and in a racial and contrary in contact expand and the percentage of income tax of income before packed with nike funny person and thirty nine point six percent for the same period last year the higher than usual tax rate was an army do the shifting in the next compatible income in the company burning tax jurisdictions driven by updates in the second quarter to our for your income forecast the babies are added tax rate is the more normalized fourteen percent broccoli and line would not fall year effective tax rate outlook net income would get the one point three million dollars for two dollars and eleven thanks for the will be chair non gaap adjusted new dps increase twenty nine point seven percent to two dollars and took a fact than an early due to lower jaw it operating income and health and on segment and increasing effective tax rate and higher interest expense partially offset the higher operating income in the given segment and lower weighted average diluted share that thing looking at the first half of our good to hear your very pleased with our not on a coordinated to be have been able to grow and that failed eight point nine percent interest on top of ground could twenty two percent recorded in the first out of his books one one you have all been able to maintain core adjusting p contributor to twenty one which could get to preside over the got one we believe that that help the outcome given the impact of like in britain labor costs a lot to the martin gilda bp matter and the lower spending day mothers' out last year now moving onto a financial position the net cash you that operating at the beach for the first expansion the fiscal year was fifty eight point three million dollars appeared to net cash provided by operating a given me a one hundred eighty six point three million dollars in the prior year a portion of the cash used by our activities like the increase inventory to help mitigate riding supply chain cause and pretty high demand products out of the holiday season a global supply chain remain extrapolated you're are expecting some retailers obama ordered into our is the third quarter in an order to ensure in thought positions before their busy selling been expected readings are in a joint level throughout the third and fourth quarter you entered point you more and more and while we ended up to twenty one as provided by investing activities for the perfect time to the fiscal year with twenty four million dollars do the he team from the tale of the personal care movement partially offset by capital investments in i am an initial construction expenditure associated with i knew two million good education center for the house when segment oh short and long term debt with four hundred and seventy two point two million dollars but the point of decrease from five hundred and eleven million dollars at the end of the first quarter well as defined in our get agreement was one point four time in line with the ratio at the end of the first quarter and compared and at the same time last year or net leverage ratio it's not for cash and cash quinlan would not have any guy was one point four time at the end of the second quarter compared to one point three time at the end of the first quarter now you're having to our own your your outlook for the books one you to we are pleased to be able
spk_3: the increase your outlook for both failed mps for the is year
spk_1: increase was a no doubt look like the combination of stronger than expected second quarter sale and an improvement in our field expectation in the back half of the year increase to our nps dot not largely reflects the higher than expected earnings in the back and core he expected dps to the back half of the year to be someone's got fired for taking and reflect the favorable pocket impact higher than previously expected failed in back half the year off that by continue to increase is the great and labor costs a jolly incremental marketing investment we are making to reenergized category that were impacted by the uk matter our the adama an estimated unfavorable three hundred new impact of seventy five million to one hundred million dollars and an unbeatable adjusted deluded gps impact of for them to seventy five thousand related to be expected lot are volume and earning immediately a matter it reflects an improvement of thirty five million dollars to jail and twenty percent of adjustability peter berg previous that a lot he adjusted the movie dps impact is not of the favorable impact cost reduction actually be taken in the help and home segment the gene pool reduction in personnel marketing and select few park development cause the the goal of preserving the long term health initiatives the knowledge that consolidated fail driving range the to point out to a to point out seven billion dollars which implies will decline of three point five percent to one point five percent the knowledge that coordinate failed revenue in the range of a barrel point five percent of the high end of on the change and includes four point nine percent it's we point seven percent on favorable impact related to the matter not including the impact the bp a matter of court and i filled out love to tide me over your out a three point four that that four point three percent did in that field that want to be own year reply improvement in all three segments with the following expectation alford like you know of nine percent to eleven percent oakland home that fill the decline of twenty percent the innkeeper time including eleven point two percent to eight point four percent of decline related to be to a matter you need met they'll the crowd at seven point five percent nine point five percent and beauty corner net ails grounds of twenty percent to twenty two percent we've tried consolidated dad do it he has a thousand dollars canadian than a dollar in thirty one thing and coordinated dps of seven dollar sixty seven to eight dollars eleven time we expect consolidated not get adjusted deleted each year in the range of eleven dollars and twenty pm to eleven dollars if he keeps them and core adjusted eluded dps in the range and eleven dollars and by ten to eleven dollars to thirty percent which exclude any compliant car as the karma chameleon the structure and johnny cash one share compensation expand in a tangible outfit am relationships them a court of justice deluded e p about what implied ground zero point two percent to two point nine percent which include six point eight percent to four point one percent of unfavorable impact to be eg a matter including including be a matter of hello adjustability eg of our implied you know bring about of seven percent if he feels outlook importantly estimated unfavorable impact of year over year inflation costs pressure and approximately sixty to sixty five nine dollars are particularly to knowledge and boycott them to to die if i can have a job to do you need yes representing an increase of five million dollars from a previous give do the continued inflation afraid and labor costs we believe we have mitigated much because they're combination of improve five max i've been created for buying the or to delay cause impact you know adding preview negotiate shipping contract rate while current market titles and implementing on a caught initiatives to the trunk road comparison encoded related events people on one and the timing of the estimated impact of the shipping restriction related to the anti matter he continue to expect poor consolidated poor that failed proud of the components you can be concentrated entirely in the first call or of the fiscal year the author expect for adjusted deluded eg yes growth group is to twenty two to be concentrated in the first and fourth quarter of a bit a year the second quarter being the most impacted by the eg a matter as well as having the most challenging blog comparison to the pirate with a year he expect a report any for gap extracted tax rate range of twelve point seven percent to thirteen point eight percent and a core adjusted effective tax rate range of ten point four percent to eleven point four percent in touch with pirate occasion he do not expect a meaningful impact i'm currently proposed to tax legislation changing can just got twenty two he continued to state capitol after expenditure of one hundred to one hundred twenty five million dollars for the good twenty two which includes expected initial expenditures related to a new two million square foot distribution the state of the automation without were segment and continue to expect the total cost of the new the sure center and equipment to be in the range of two hundred to two hundred point five million dollars spread over two years trying to and twenty three the assuming construction equipment cause remain a crime levels in summary on a coordinators excluding impacted the eg matter or provide for your outlook but net sales know a three point four percent to four point three percent slightly ahead of our long term growth target my reply to your outlook for the outward segment important that you know ground nine percent to eleven percent and pop of thirteen point five percent growth in the prior year i've used to my poor jail now one i've met jump out of twenty percent twenty two percent on top of thirty percent growth in the prior year and i'll know how within the helgen home segment is forecasted you haven't met the decline of twenty percent eighteen percent including the impact of eg matter it grew twenty nine point nine percent in the prior year on a corby to excluding the impact of the p a matter of revived for your outlook for just a deluded each year implied growth and seven percent on top of got to twenty six point five percent invisible twenty one different only slightly below or long term know target of a person and include the adverse impact of inflationary cause and approximately twenty three percentage point year over year even including the adverse impact to inflationary costs and eg a matter of we still expect to be able to maintain are slightly and consolidated adjusted i dollars more been to the kids to year he believed that without what it quite an accomplishment in light of the had eighteen to twenty one is significantly higher income cause any impact and a matter of the twenty two in closing i am proud of how the entire organization have rallied in a significant challenges to overcome temporary of people make further progress on our growth strategy and helen of troy article continued to south beach to the a strong foundation and market leading brands with a global good friend and many opportunities
spk_0: for growth as well and withdrawn balance sheet that given us the ability to deploy capital the drives you're older return i believe we are welcome addition to learn can be value for consumers you customer community and shareholders and with that i'd like to turn it back to the operator for question thank you if he would like to ask a question please fresh dar one and you can get question they kill every artist a cheesy speaker equipment
spk_1: please pick up the handset day for a pressing the star keys
spk_4: our first question is from bad the back let's see j s security is please proceed
spk_1: good morning and i want to get before not offer congratulations to both brian and to map really excited for both of you and your future endeavors it it absolutely great so on it obviously give us kinds of details appreciated trying to get a sense of the queue to impact from the a p a in book revenue and dps i guess and and therefore how much is left in your you've got into the year in the back half and if if if you said that earlier paul drives night don't captured the cute you impact and then i guess it's just a finish that off few expect any lingering impacts in fiscal twenty three from the impede it for me if he a shoes or do you make up their hit that you took this year so you could actually get a little better growth as a result yeah can i can pick yeah yeah man why don't you please handler q two to three and i can give an article on fiscal twenty three care about it in your but we didn't disclose it in a deck numbers you know we talk that that to to be the the major impact on of the a matter of you know think about what we had come out with in terms of how the by categories were being impacted by the stop shit you know we had during to to palm you know basically all of the categories more starship and we've been ramping up since then so we didn't give an exact numbers of i had the can you give you an overall had kids and about two thirds him of a impacting and queue to and maybe a one third impact that still lingering the que three as we get our hair or category ramped up turn to for shipping gregory that's how know and i'm in fact it casually my back to have a high at and and the on the bissell twenty three stuff i think it on the call a male have the same question about so that the p a thing have a dumb ongoing impact i think our main message or i know i'm a message is that the working there hard to make sure that we retain the long term business on fewer were much further along simply because the uk resolution came sooner and the changes were simpler and in the case of pure you and looking like do and i can't imagine that we would have long term impacts on always have to keep learning our business in the case so air it's a bit soon to tell
spk_4: and yet were highly optimistic the vast majority of customers are beginning to support a key market leader that they have been doing this with for decades now we know them they trust us and products are exceptional and consumers need them so highly optimistic and that said it just remains to be seen until were consistently shipping em i met gonna be the most important thing for them to have complex to maintain the longterm distribution
spk_1: got it okay that makes sense thank you and then as relates to the ability to mitigate inflation you've obviously done a very good job and you mentioned i think that inflationary pressures are are ramping up a little bit vs even last time you spoke with us and you give us a sense of how much has been mitigated or how much as for through to the t and now i'm and then just talk about you know maybe second half impacts and and then back the same kind of question without quantifying it how are you set up banned for fiscal twenty three answer relates that inflationary pressures yeah only the start on that one bottle and in the julian the preacher to jump then united as we like a bit here we've and you know we came into the him and or into the year with with good levels of inventory and in we've talked about that as as a way to the for some of the higher a cough that we were seeing as young rates and fragrance been particular been increasing during the year so yeah there's there's been an impact on the first half of the year by it's gonna be more impact us as the second in the second half of the year you know and we talked about fact that we've put in price increases and on price increases are are largely are in place now problem and will help off that that as we move through the second half of the year but in yet a high level and mean i'm i'm expecting that gross profit will will be on paper down and compared to last year and second half of the year because more people call said everything that's coming with with price increases are a little bit of gross profit erosion i think you to it by he had he said we were doing a lot of the thing to try and ah said the total impact for the year very will impact the margins and second half in for fiscal twenty three the they can buy your question bomb i if it's up world out there every day the front page of pretty much any him at they did business newspaper speculate on the long term nature the inflation and how high things go a long as they say you're gonna look like a lumber curve where it at a bomb that also splat are already gonna look alike and something permanent what we're assuming that the and speculation is not going to be transitory and were positioning ourselves accordingly so like match talking about the price increases are important working hard and our supply chain that that under productivity initiatives at the risking our delay for buying working against pair of explosions i think everyone on a call knows that the us trade representative announce for the night and ministrations opening another potential around a terroristic explosions rules for that had not been said get so we don't know that it will qualify that and we will work hard to get of many of our products as possible included especially those essential to human life like the monitors as an example and now and others frankly and in a case of the playboy the comet we've been here before they can we just put more than two and a half dollars worth of cost behind us and raised our guidance so there's some credibility i think in that statement and it's not just what we've done with inflation will we work in the parents when they came and we like everybody else where to coded am a tough one
spk_4: not gonna be beaten down by this and so that's our plan and we'll see how it plays out for fiscal twenty three just to be clear the two and a half cent store sorry two dollars and fifty cents for the full fiscal year it's not totally behind us in the first half beer that's what we're digesting for the for is clear yeah thanks brian and the only point of of measuring is not at all the chest and a brutal out there in that environment or that is simply
spk_5: say that said if people on his call thought that the company good raise it's guidance with two and a half dollars a full year cost inflation coming at us unexpectedly during the fiscal people probably would not have counted on that and yet that's that since into his bedroom
spk_1: got it okay thank you and then it back lash out or of get back and you i promise obviously housework had another a terrific quarter and that the know off of super i comps the guidance is footprint problems relatively flat for the second half and there's obviously lots of puts and takes with that the and you know him as i said really high cops maybe could just talk us to the forces the underlying growth drivers and expectations excluding the kind of crazy comps for housewares going forward and and where you see that once we get that kind of them one on last level
spk_6: yeah are happy to do so at ripples not your taskbar did not the beauty on a core basis which means is doing that personal care both in the base and that current and the future and it beauty just
spk_1: the fourteen point to grow on top of it's high from last quarter a year ago go to jail or and both just lifted their gadgets for the full year severe point about housewares couple of things of for and we mention them in a prepared remarks to have the basic habits that we've seen in the will be a things have abated that the sticking his the brand has not and in so think of penetrating more households are the rabbit effect that that we discussed many times which is one third one or two households that items awful items in a household or they tend to multiply because people recognize the excellence of the products whether they like the grips with design the sharpness the materials the durability of has the feel of it as as exceptional
spk_7: formative so as a sticky or there's also other troops which is there's a lot of weddings that were delayed the fiscal of a calendar twenty or into calendar twenty one and that fact that continues ah there's also a lot more international push on our side we mention and are prepared remarks that your is doing especially well for housewares that is true
spk_1: we're projecting that to continue and we have some meaningful initiatives now that the profitability for housebuyers in europe is greatly improve it would invest into that growth and turn the flywheel against the higher our ally that we're now getting for those investments and there's a positive circle there when it comes to new products and housewares is a
spk_6: a famously productive machine and it's it's not just on opposite but it's also true on on hydro flat taking a look and height of last kind of that is the opposite situation it's actually anniversary weaker comps and it's doing beautifully it's up to calmly on this was banned by brand but i can say it's winning or it's also
spk_7: making significant progress and not just year over year but in our mixed from a margin standpoints own it it's our second most profitable land behind only dry bar so it it's good for the next for housewares answers of the international expansion for page of that that's a big deal as are all the other things that we do on hydra flask whether it's be the bottle where we are going hard and a new collections and i bottles etc and inescapable trans or back to school was our friend year over year for housewares especially good last year there wasn't any back to smoke and in the case of
spk_5: than other favorable trends or the fact that the kids and families are out in about a lot more despite for on a virus domain with as the all these things are good for hydro flask so are we like our plans are we also like where we stand with the major customers and so on the go and housewares and and they didn't ask about beauty but there's a said
spk_8: generally positive story for beauty be able to anniversary of space and grow from there and that's also reflected in our guy it's not just a volume as restoring the the loan waivers our doing beautifully in media and also in latin america and beauty canada as also going well and so it gives us a lot to invest into there's a ton of often the bottom coming out and beauty like the but one plus on the new dry bar product that i just mentioned on all of the things are are positive for the beauty to
spk_1: super okay thank you very much the up our next question and fan repass are a up at hammer and company please proceed to morning thanks for get my question so i guess just going back to elementary to conduct a accommodate i eat i lost called outdoor arena two and a half to three now percent organic sales growth and just eat just got to release a person i dig the next to
spk_7: fifth graders on average just giving out that you have a higher base of your is guys do still feel compelled to his targets and yeah i know there's also more cause for should others i'm not sure if he can provide any update on there it is more you're talking up for the future years right with as that's correct the next year just grows up
spk_1: yeah it's certainly our goal and we did commit to it in our base to plans and we're not moving off with those commitments are that said the hill to climb to get through the cost inflation that we were just talking about has gotten higher i'm actually not only talking about this fiscal year
spk_7: but remember against as higher cost low because they flown to future periods and that causes inflation to persist even if that by to come down in the short term and so there are challenging happier with the prices persist in the short term it just make the hill are higher decline about said higher prices if we raise our prices for
spk_1: another are good for our top line so it helps to do some of the that and yet where consumer centric so we're extremely sensitive to the needs of our consumers to price points to competition and the government in my was not living is much direct stimulus not think of two thousand dollars with jackson people bank accounts like they were before he
spk_5: even though the better minutes talking up spending by lot of money it's over a long period of time and in the cage said
spk_9: mitigation the play ball that is being worked hard right now in fact we have our strategic of use next week that we do every year at this time such not be neat to fiscal twenty three or the front and center is how to exercise their playbook the fiscal twenty three and make sure that we can find our way to grow on top of the organic stoppages were those goals tom
spk_10: as if you are balance sheet is our i one point four times leverage at one point three an english major you use and you get the idea that there's plenty of room for us to work acquisition we've also signaled pretty hard that me are involved in several acquisition our prospects and and we'll see how those land that the above and beyond the the
spk_1: base case either gives us a chance to find ways to grow weed artist get grain and i yeah i guess now we are moving further pass the stimulus or the thing significance the most are you seen earlier this year and no wonder that while we toss out there that that on called out some challenges i just read it in a covered sites and sorry markets are just years of the you guys like a your dead inside you as a move past a seamless have you seen any notable changes in ca
spk_5: you were behavior
spk_7: not not yet people are returning to the workforce in general have a slower than everybody expected and even after the government stops with the another another checks anyone talking about the extended unemployment benefits others people are no longer paid more to to i'm stay home but they are so concerned about her on a virus and there's a lot on gop shipping going on me days so this creates some turning me employment based on
spk_1: i believe is that the economy will still continue to generate met jobs and therefore that's a positive the just won't make those jobs as supplemented by the debt repayments wages are also higher and at the moment there the wage inflation is higher than that good inflation so people net have more money in a pocket he taxes had not been raised yeah although the elements talking about this and that possible the government will take some of that money out of pocket of have some people depending how all that stuff shakes out of that were concerned thankfully that there's gonna be enough drain on consumers that it'll it'll slow them down so hopefully the government will strike the right balance are we meanwhile we'll keep on working on providing massive value to consumers with exceptional products that are meaningless meaningfully differentiated from the competition and that's been our playbook for fifty years to drive or market share so that that's how we'll get through this one then turns of attacking the costs
spk_5: alba just gonna keep at it with with all that the playbook items that we talked about until the inflation is done
spk_8: during navy one thing i just that on to that you know repair she asked about consumer behavior and i thank you you seen this kind of macro trend where with a lot of the supply chain disruption that still persisting in the market i think retailers are making more bets and trying to make sure that they're not without goods and the
spk_1: had into their out if you don't we talked about this and and sometimes i'll i'll prepare remarks by adding retailers are making bigger bed earlier i'm buying inventory and pulling that little bit bored and they're buying patterns and they would have been a quote unquote normal year make sure that they're you know now without cada side neighbor you know that something that well we'll see has that as the trend defense more start to do that we could impact kind of the ship to revenue and ninety three and cube or and then it would be months the retailers have damn to your point once consumer behavior during holidays in and out of than sellout go okay to read that or help a collar and i mean maybe just one last in i'm not sure whether you're in an answer to this point but i get rid if you look to next fiscal year and clearly costs well have caught titles are accelerating you guys are kitchen pryde the archers more could come and eat or you look at this year you guys are on pace that actually expand operating margins with all the had went out there and you know if you look at all the different dynamics are knowledge is that do i speak out and lover say expand opry margin and you let your next year or is it to really disappointed
spk_11: to get equal to early is the best way where we're just laying out that guy to decrease guidance for fiscal twenty two we're we're not yet given guidance other than abroad long term strokes of a do with this for twenty three twenty four and were acknowledging the headwinds winter there were also at hopefully getting across very clearly that we have no intention
spk_12: being stopped by them or that said we've got to play it out and that the market is changing every single day in terms of the margin expansion i think it's just too soon to say whether we'll be able to do that or are key priority in an environment like the one that everyone is looking at for fiscal twenty three is to keep the flywheel turning so that that flywheel does a lot better and
spk_0: lower gears and it doesn't a reverse gear and so it's much better to be in a position where we can keep investing in the stuff that we know by brings in our ever higher gross margin new revenues and that provides the opposite gender to invest in all the initiative that keep on improving the transformation that that the
spk_1: planned the question is can we make the maps work with the higher costs and and that's what we're looking at night okay great thank you he that would bet our next question as from anthony at it says he would sit down the and company please proceed a bit more than for taking the questions or yes a lot of hi julie in an interview that's a nice working with you brian and the best of luck on forward and look forward to walk and with you that i'm so he ages just that he questioned so either talked about price increases can you give us an expectation as though
spk_7: are actually dishes with that he just talk about the lot of let the level of price increase the you have taken and i to do so basically just so we can have a better understanding
spk_1: as far as the guidance for the back half of the air for else sale of from lung cells in terms of pricing vs volumes
spk_7: yeah turkey one we've already taken i i would feel comfortable speaking about it but for competitive reasons i would not feel comfortable speaking about future price increases an in terms of wanting already taken it it depends a bit brand by brand products by products are competitive situation sprightly get price point is well above the
spk_1: are generally in the mid to high single digits in some case a civil and low double digit on those price increase in it depends a lot where and what situation and i mention on they have stuck on it's not easy for trade customers it's super hard to accept a price increase and that said it's even huh airtel are not to have the market leading bans on the shelf and and do some other nine at the cost inflation with there because everyone knows that it is and then for consumers it's costs against the mentors or not
spk_7: in alaska and and therefore it's classic that a challenge valued when you raise prices of there's a a tight rope that needs to be locked and those are more or the numbers that were working for future ones i will see how it goes the better on the consumer in the future that we just spoke about would be better but i could be real and we don't want a price ourselves out the market we don't want to discuss that consumers like a trade customers will find an advantage that data thanks for that colors so he comes of the eighty eight be impacted product said what has been the least and sell through at retail earth and and he gave some comments about plus so i just did it safe to say that pure you cheating better sell through than some of the others business you could just just maybe get us additional call another be helpful
spk_1: yeah and that is the important question and i'm that if people might think it's sort of an academic exercise of if the trade had less inventory because we had low shipments or even know shipments during establish a period than it's just academic decided that the place all the inventory but other products back on the shelf and the mark
spk_7: two chairs instantly be captured at one hundred cents on the bother are the real world is is a little sticky or than that messier than that and so what it really takes his to knock back the of that one by one store by store you heard it on my prepared remarks that we've added thirty pointed out of stock improvement to pure or in the last six weeks long since we made the
spk_1: august announcement or that for shock over a proud of that and a trade customers been phenomenal about working on that with as they want their shells for all we want our soft back and consumers prefer our products and for that reason our market shares on pure have increased by ten points in the same sex with and this was very positive for us in the case of air
spk_13: at it behind pure in terms of time so that story has yet to be written that were hoping for other relatively similar situations but back the added stops at quickly and and then know that market share comes with it lawful costs money to restart the engine and as as matt talked about it has prepared remarks at we are putting the right investments
spk_1: the back half of our forecast it's included in the outlook to be crystal clear how to make sure that we're fans center for consumers as they make divine choices with as a back on the shelf and be with the products that they want but if you're not that the mind and any by something else and don't want that and that's our plan on air purifiers abby the it all comes as the as the product or to and people on the call may not notice by like to mature gets into the record the talking about more than four million pieces of rework between made significant progress getting through them on pure you've heard the story air that is happening now and then the customers at the a possible then we go to the i was back when we go to the market share and be investment to keep our our products a case of an entrance of the got and instead the if he a compliance costs that she has an eight that the second half of the year is that going to be all in the third quarter or will idea that spill over into the fourth quarter or that is believed to be get knocked i get thanks join yeah anthony i would say front eg compliance costs switch i can be in the ad back that were doing this because to kind of rework that there will be caught in the back half of year as julien said it's kalmar four million pieces to rework and we think that that will actually right now tpp into three and probably into for as well as we located in i'm working known some of the tax rate it should just wondering if he didn't give us some senses stadium and give us guidance for this fiscal year but beyond the school twenty two
spk_14: obviously the other excluding any potential impact on on what happens a martian candidates a given what we know now the how should i even think about the tax rate for fiscal twenty three and beyond
spk_0: yeah i mean if if if we say located in the same state that were operating today with no changes that think you the you know looking at a similar type of tax rate i think the taking drivers and what happens with our tax rate is what will happen here in washington and you know what may come out of that and
spk_15: globally your domestically though the be the have to take drivers are you know future tax rate whether that even end up being in next year i mean i think it is
spk_16: you know that those kind of gangs who getting resolved put in place and affected can take time and sell you know i would say excluding any of that kind of legislative change muenchen similar very consistent tax rate in the next year
spk_15: that it's i'll thank you very much and best a going forward and again our next question is from linda are and why they're the a davis and please proceed yes hi how are you know
spk_17: they're good hi linda and hear from you
spk_1: you know i guess what i'm a little bit interested in is in the house at home segment ah
spk_7: you would i guess you didn't clarify exactly the impact of the a key issue but it looks like if you exclude that it still looks like organic sales or what kind of down
spk_1: he had a very hard to care said a comparison remains really hard and the next quarter kill so i'm just trying to get a sense for a kind of whether you're growing are not against the hard comparisons it on the thermometer as i think you said last quarter term amateur fails were flat but you said they were down just quarter so i guess i'm wondering what changed their mama
spk_7: earth and i'll fall on their plants are on earth a pos data actually shown and i know it doesn't tell the whole story but it shows that pos is actually growing really well for you and thermometers so i'm just wondering what's the disconnect between your cell and and maybe your pos that stronger can you explain what's going on like with with them
spk_1: amateur thank you
spk_7: sure so you get the monitors and in the broader question about where affect how of them home growing are shrinking actually be a so as to start with the commander think that there may be some confusion in the audience and we we tried to get the clear i'm not prepared remarks the overall category in the last few months has been down i'm not talking about how employees the monitors are gonna go to this i'm talking about the category but the monitors in the planet earth and and that is is generally it down up down situation our sales have held up reasonably well now they are down in the united states but not nearly down as much of the category and as a result our market share as much as rebound
spk_1: but as we said in are prepared remarks rebounding sharply i know you've seen the shares and you put out the iraq years and you can see it in the numbers with regard to the disconnect a pos i actually don't know in a short term and frankly don't worry about in the short term i think the easiest way to think about is just a look at the full year guidance and ask where
spk_3: will help and home be and we've answered that in our our outlook we got the said exactly how much in the a p a r will affect the year and we gave up an improved number in the guy of he put out today said you just to crack the to look we'll see how health them home again for the year over year and a
spk_1: if the numbers are there in terms of the two years back it may be very help of his fiscal health and how is at roughly ten percent over where it was pre cold it said he takes just all the noise of the ups and downs out the answers is it
spk_7: being doing better or worse the answer is ten percent better so far it is clear on a two years back pages to look at it for the total year week if he didn't help you with of numbers that they're
spk_1: probably the in the public records on a few years back just in case anyone is is i'm not aware that we don't use that term normally i'm we did put in a press release a package right in the beginning and we talk about our we learned this quarter vs year ago and vs two years ago that is back and we did the same thing on a six month basis where we were at this corner and where we were at him the first half vs last year and the year before and it's also in the highlights section of our press release on on all the key measures of hope to the hope everyone see whether things are growing a shrinking and spoiler alert that they're both and in the case of the in health and home projection for the year x eighty eight and nappy one of the provide a little color there just to help make sure the math comes up suspect yeah to tell ya and a bunch of fun and touch our julian mention then there's a couple and you think that our earnings release he wanted to mention we tried to provide some and to your stack cable
spk_15: i am not an executive summary arabia we think that's how helpful and you're looking at the first half year and a quarter and especially in know we talked about core comparison now that personal care is out of the actual results starting unrelated quarter pounders core comparisons will be come more important year over year and so we wanted to thailand some of as the other thing we did added within our earnings release is a raid a couple of cables that talk about are consolidated core and non core business results excluding the impact of bp a matter you know there's a lot of moving parts of the to be sales and volume profit related impact sweet we put dollars in a in the back and forth by and back on page twenty four but that something that's new for the quarter we just wanted an error that the lot a number goddamn wanted you guys the to have all the numbers in terms of your specific question i'm linda on health and home and the decline of year
spk_1: what we said in the releases and we expect can be down twenty that eighteen percent including an eleven point two to eight point four decline can he be a matter of so now still down double digits ah excluding the p a matter their which reflects you know that the uk okay q and then i'll charges live
spk_7: the question and the beauty this as
spk_1: so
spk_7: the certainly very strong ah i'm just curious on the volume either it seems like all the competitors out there have similar products and yet you're still growing really wow and seemingly maintaining or even growing market share some so how are you doing that i mean know you just coming up with more expensive products and i might are there other new things that are out
spk_15: that how are you managing to do so well i'm beauty with all the competitors following so quickly
spk_18: yeah they have been following is not news that the competitors have been nipping at the years of i imagine for about a year now and your point there's there's even more in the market on the what we're doing it is just the classics of consumer product marketing on which is being first constantly innovating
spk_0: expanding geographically putting out new versions at higher price points with more features and penetrating new channels and in the marketing efforts have been significant and because been first and we humbly the best of the social media aspect is significant
spk_1: the put a problem meet points on those bombs on that the number of reviews on amazon alone as we talked about in are prepared the mattered now three hundred and fifty thousand for our volume my your franchises and that eighty percent of those are five star hotel was badly for on six far so that's the point about first and best and in the case of the price point where keeping them sharp and i'm new products like the red lump last that we just talked about not prepared remarks that with inferior or features were also in a situation where we're expanding significant internationally is broken up a gerber much about latin america and europe i also mentioned canada and the queue and a number or growing and those areas and a new distribution channels are people on the call will remember we put some money into our the end of last fiscal year to expand distribution continent continental europe and into stores planes as an example and that new distribution is generating a cell for the now now we purchase so we have a positive cycle long and then we're putting out on a new products they are that are looking to asia next and we like our prospects so all of this is that keeping us going and it's not just the i might as i mentioned in the prepared remarks the waivers on bed head is another example of winning and the hot tools signature series is doing particularly well when the case of of dry bar we have the volume as your title products and even higher price points with even better features and we have been in liquids and all of this adds up to i keep the gone and beauty a coupon share
spk_6: great thank you very much
spk_1: yeah i pleasure
spk_8: and our final question his friend steve marotta with see our king and associates please proceed
spk_1: it morning i truly and brian matt and jack actually i know them were bumping up against times or limits or one question juliana last call you intimated maybe even tangentially that the a p a to be negatively impacting some competitors in the industry as well i know that for
spk_0: freedom's probably don't want to be completely forthcoming with that are their market share opportunities they did on applications competitors might be having with the piano at this time thanks
spk_1: the or it in theory there are but frankly we don't look at it that way and were a highly principled ethical and and proper up with a that competitor in the industry were respected for this or by consumers by institutions and and retailers as well on but we wanted for everybody to play that rules or bp a has made these rules and fact that we expect them to enforce them are just like they did when i looked at as as a lot of changes were fairly minor for as with no disrespect to any of our competitors and some of them makes a pretty strong statements and i'm sure that you be able do the right thing in the case of what that means to our business if it creates opportunities and we're happy to participate that with we're not looking at it that way we're looking at a
spk_0: principled ethical industry deserves consumers are expecting the regulators to be even handed and them and and system and if it creates situations where the consumers should have her our products and gives us opportunity we will take it you probably have a gothic about offline thanks
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