Empire Company Limited (OTCPK:EMLAF) Q4 2019 Earnings Conference Call June 27, 2019 ET
Katie Brine - Director, IR
Michael Medline - President and CEO
Michael Vels - CFO
Lyne Castonguay - EVP, Store Experience
Pierre St-Laurent - EVP, Merchandising and Quebec
- Katie Brine - IR主任
- Michael Medline - 总裁兼首席执行官
- Michael Vels - 首席财务官
- Lyne Castonguay - EVP，商店体验
- Pierre St-Laurent - 执行副总裁，商品推销和魁北克省
James Durran - Barclays Bank PLC
Michael Van Aelst - TD Securities
Irene Nattel - RBC Capital Markets, LLC
Vishal Shreedhar - National Bank Financial, Inc.
Patricia Baker - Scotiabank Global Banking and Markets
Emily Foo - BMO Capital Markets
Krishna Ruthnum - CIBC Capital Markets
Keith Howlett - Desjardins Securities Inc
- 詹姆斯杜兰 - 巴克莱银行
- TD Van Aelst - 道明证券
- Irene Nattel - RBC Capital Markets，LLC
- Vishal Shreedhar - 国民银行金融公司
- Patricia Baker - 丰业银行全球银行和市场
- Emily Foo - BMO资本市场
- Krishna Ruthnum - CIBC资本市场
- Keith Howlett - Desjardins证券公司
Good morning, ladies and gentlemen, and welcome to the Empire Company Limited Fourth Quarter 2019 Results Conference Call. [Operator Instructions] This call is being recorded on Thursday, June 27, 2019.
And I would now like to turn the conference over to Katie Brine, Director, Investor Relations. Please go ahead.
女士们，先生们，早上好，欢迎来到Empire Company Limited 2019年第四季度业绩电话会议。 [操作员说明]此电话录制于2019年6月27日星期四。
我现在想把会议转交给投资者关系总监Katie Brine。 请继续。
Thank you, Joanna. Good afternoon, and thank you all for joining us for our fourth quarter conference call.
Today, we will provide summary comments on our results and a further update on the pending changes related to the new IFRS 16 leasing standard. We will leave as much time as we can for questions. This call is being recorded, and the audio recording will be available on the company's website at empireco.ca. There is a short summary document outlining the points of our quarter available on our Web site as well.
Joining me on the call this afternoon are Michael Medline, President and Chief Executive Officer; Michael Vels, Chief Financial Officer; and Pierre St-Laurent, Chief Operating Officer, Full Service.
Today's discussion includes forward-looking statements. We caution that such statements are based on management's assumptions and beliefs and are subject to uncertainties and other factors that could cause actual results to differ materially. I refer you to our news release and MD&A for more information on these assumptions and factors.
I will now turn the call over to Michael Medline.
今天下午与我联系的是Michael Medline，总裁兼首席执行官; Michael Vels，首席财务官;和全面服务首席运营官Pierre St-Laurent。
Thanks, Katie, and good afternoon, everyone. I think it's clear to see from our results this quarter and throughout fiscal 2019, Empire is not the same company it was just two years ago. We are stronger, more customer oriented, more innovative and poised for growth.
Our teams strategy and focus on execution have improved across-the-board. Having said that, we realized with the heavy lifting over the past 2 plus years is only the beginning. We’ve much work to do to execute even more effectively and innovate. Our potential thrill our customers grow market share and greatly improve our bottom line is still in its infancy.
We're hard at work on finalizing a strategy detailed roadmap and financial goals for the three year's post Sunrise. Significant customer and financial prices cannot be attained because we have our infrastructure and disciplines more firmly in place.
Robust sales momentum continued in the fourth quarter. Same-store sales were 3.8%, the strongest in a decade. Food same-store sales, which exclude pharmacy and fuel were 4.2%, internal inflation was 2.2% for overall tonnage of 1.6%, our fourth consecutive quarter of positive tonnage and the strongest in almost nine years.
Customer count was up, basket size increased in sales rep in all regions across all banners. In fiscal 2019, we increased sales by almost $1 billion, the majority of the improvement in our sales numbers can be attributed to sharper in-store and marketing execution and the early success of category resets. Farm Boy also played its part contributing about 20% to the sales increase.
These weren't empty calories sales either. Gross margin rate was 25.4%, up 70 basis points from Q4 last year and 120 basis points over Q3. This quarter we continued to see the beginning of the category reset margin improvement fit. This will progressively amp up over the next four quarters.
EPS was $0.46, 2.5x higher than our Q4 fiscal 2017 EPS when we announced Project Sunrise. On top of that, our adjusted EBITDA margin of 4.8% this quarter is up 70 basis points over the prior year. We're closing the gap on our competitors. Most of the current gap to our major competitors is nonstructural and we intend to close that gap significantly going forward. EBITDA margin is now our most closely watched number.
Mike and I have talked a lot with you of our capital allocation. We worked hard to cement a disciplined approach to capital allocation and we are investing in better projects that generate solid returns for you, our shareholders. Last year at this time, we announced a capital target of $425 million and we came in at $427 million excluding Farm Boy's capital expenditures.
We refreshed them for our stores, continued construction of the Voila, CFC in Vaughan, converted three stores to FreshCo with 15 more on the go, open two new Farm Boy stores and 10 new stores across our banners. For fiscal 2020, we will increase our capital spend to $600 million, which includes capital estimates of approximately $70 million related to the expense of the Farm Boy store network in Ontario.
所有横幅的所有地区的客户数量均有所增加，销售代表的篮子数量增加。在2019财年，我们的销售额增加了近10亿美元，我们销售数字的大部分改善可归功于店内和营销执行的更加明确以及类别重置的早期成功。 Farm Boy也发挥了其作用，为销售增长贡献了约20％。
当我们宣布Project Sunrise时，每股收益为0.46美元，比2017财年第四季度每股收益高出2.5倍。最重要的是，本季度我们调整后的EBITDA利润率为4.8％，比上年提高了70个基点。我们正在缩小竞争对手的差距。目前与我们主要竞争对手的差距大多是非结构性的，我们打算在未来大幅缩小差距。 EBITDA利润率现在是我们最受关注的数字。
我们为我们的商店更新了它们，继续建造Voila，在Vaughan建造了CFC，将三家商店改为FreshCo，另外还有15家商店，在我们的横幅上开设了两家新的Farm Boy商店和10家新店。对于2020财年，我们将把资本支出增加到6亿美元，其中包括与安大略省Farm Boy商店网络费用相关的约7000万美元的资本估算。
More and more, our base capital will be deployed to renovate and refresh current stores and invest in advanced technology including data analytics. Mike will walk you through this in more detail.
Our strong results in capital spending discipline in fiscal 2019 have put us in an enviable free cash position. As a company, we have a strong belief in returning the appropriate cash to you, our owners. To that end, we announced a 9% increase in Empire's quarterly dividend per share from $0.11 per share to $0.12 per share commensurate with our strong cash flows and confidence in the business.
Our company also believes that share buybacks are useful additional tool to utilize excess cash. We will file and execute on a normal course issuer bid with the intent to repurchase up to $100 million of Empire shares in fiscal 2020. We expect that share repurchases will be a key part of our capital allocation arsenal over the coming years. We do not expect that the dividend increase nor the share buyback will impact the timing of regaining our investment-grade rating.
Back to the business. We're seeing very good progress on our major strategic initiatives, project Sunrise, FreshCo expansion, Farm Boy and Voila. We are more than two thirds of the way through our Sunrise transformation, and this initiative is progressing better than we originally anticipated. With $200 million Sunrise savings achieved in fiscal year '19, we can now confirm that we expect to exceed our Sunrise savings target off to $500 million, which Mike will discuss further in a few minutes.
Category resets which will drive a large portion of our total Sunrise savings are well underway. Our merchants have nearly completed our negotiations with our supplier partners. In parallel, our teammates in our stores have done a great job realigning our stores, tranche by tranche, ensuring our shelves are stocked with the items customers want most. We are especially cognizant of the customer experience as we realign our aisles. All of our reporting and customer feedback to date indicates that in-store execution of resets has been well received.
In April, we launched our FreshCo banner in the West, opening three stores in British Columbia and two stores in Winnipeg to date. It is still early days, but we are extremely pleased with how the stores are performing and with the customer reaction. Our expansion of FreshCo to the West allows us to participate in the growing discount segment by converting 25% of our poor performing Safeway and Sobeys stores to FreshCo stores and markets that are better suited to discount.
We remain on track to open two [indiscernible] FreshCo stores in British Columbia in July and 11 additional FreshCo stores throughout the remainder of fiscal 2020. Our strategy to grow share in Ontario where we have historically had a low market share continues to progress well. We're announcing stronger results in our existing Sobeys, FreshCo and Foodland banners, and we continue to see improved sales in customer metrics as we convert all FreshCo stores to the new FreshCo 2.0 model.
我们仍有望在7月份在不列颠哥伦比亚省开设两家[音频不清晰] FreshCo商店，并在2020财年剩余时间内开设11家FreshCo商店。我们在安大略省增加市场份额的战略继续保持良好发展。我们在现有的Sobeys，FreshCo和Foodland横幅上宣布了更好的结果，随着我们将所有FreshCo商店转换为新的FreshCo 2.0模型，我们继续看到客户指标的销售额有所改善。
Our acquisition of Farm Boy gives us a winning format that will allow us to accelerate our growth in urban and suburban markets in Ontario. We continue to build on Farm Boy's industry-leading operational and customer metrics and progress against our plan to double the size of the business in the next five years. Much of this growth will be in the heart of Toronto.
Farm Boy coupled with Voila, our game changing e-commerce solution will position us beautifully to expand our presence in the GTA. Voila is on track to test and soft launch in the GTA about a year from now. In May, we announced that we would be opening our second CFC in Montréal in 2021, which will serve major cities in Québec and the Ottawa area, building on our already successful iga.net home delivery service.
The world is moving quickly and we have the exclusive rights in Canada for the best e-commerce technology in the world. We want to put it to work. But Voila is not the only innovation happening in our business. As we shift from defense to offense, we're focused on positioning the company to innovate for the long-term. Shopping in the grocery store looks pretty well the same today as it did 50 years ago when my mother was pushing me around in a cart and that needs to change. We're putting in place the teams, tools and culture that we need to drive innovation on our business and to win the next generation of grocery retailing.
Empire at its heart is an innovative company and now with much of the heavy lifting of project Sunrise behind us, we were able to focus our attention on innovation. Our vision is to be the most innovative retailer in Canada. This won't happen overnight. We have a focused roadmap to achieve that goal. We are not innovating for innovation sake. We're focusing on a few innovative projects that will drive the most impact for our business and for our customers. At this time we're keeping these projects close to the West for obvious competitive reasons.
I am really proud of my teammates and what they've accomplished in fiscal 2019. I would like to especially congratulate Pierre and Mike on their well-earned new responsibilities. More than ever now, I believe that we’ve the structure, disciplines and team in place to perform at a very high level.
And with that, over to Mike.
我们对Farm Boy的收购为我们提供了一个成功的格式，使我们能够加快安大略省城市和郊区市场的增长。我们继续以Farm Boy业界领先的运营和客户指标为基础，并根据我们的计划在未来五年内将业务规模扩大一倍。这种增长大部分将在多伦多市中心。
Thanks, Michael. Good afternoon, everyone. We are very pleased with our margin performance this quarter. Margin dollars increased due to the strong sales, and just as important our margin rates are up by 70 basis points. The 70 basis point improvement is even better after some mix impact related mostly to higher sales and businesses that have lower structural gross margin such as Québec discounts and wholesale.
Excluding approximately 25 basis points of this mix impact, we were actually up by almost a 100 basis points on our gross margin line. The two most significant drivers of this improvement are Farm Boy, which has a higher margin rate than the rest of the business and impacted the rate by approximately 40 basis points with the remainder accounted for -- by an approximate 60 basis point improvement related to category resets. In conclusion, we grew our sales and banked positive impacts of our category reset project.
The strong sales this quarter pushed our variable SG&A expenses up, mostly in store labor. SG&A as a percent of sales were flat to last year of 22.9%. We accomplished approximately 45 basis points of Sunrise savings in SG&A this quarter, largely through indirect sourcing cost reductions and continued improvements to store operations. This is partly offset by Farm Boy's higher labor cost model impact, increased the same-store and back office incentive expense accruals and some increased investments in marketing expenses.
Combined, we’ve approximately $80 million of savings reflected in our earnings from the quarter just related to Sunrise. For those of you keeping a score in home, you will note that we exceeded our public estimates for the year. I’m pleased to say that on a cumulative basis we’re now ahead of where we thought we would be at this time by approximately $50 million.
Looking forward, we're targeting to earn approximately $250 million of incremental earnings through Sunrise in fiscal 2020. These amounts will be spent roughly evenly across the year as category resets are executed in store and we also continued to reduce our cost base through indirect sourcing and store improvement projects.
Equity earnings contributed strongly compared to last year. This is principally the result of increased earnings from our investment in Crombie. The Crombie results were impacted in the quarter by gains recorded on their disposal of a parcel of assets, Empire share, of which accounted for $8.4 million, of the $12 million increase in equity earnings over the prior year.
Crombie recently announced a further significant sale transaction impact of which will be recorded in our second quarter 2020 results. These gains from Crombie had an approximate $0.04 after tax impact on our earnings per share. Although this was offset by a higher effective tax rate during the quarter. The tax rate of 25.5% was significantly higher than last year accounting for about a $0.04 impact on earnings per share compared to last year, which itself was positively impacted by an internal reorganization that we undertook last year to simplify our corporate structure.
剔除此混合影响的约25个基点，我们的毛利率实际上上升了近100个基点。这一改进的两个最重要的驱动因素是Farm Boy，其利润率高于其他业务，并影响利率约40个基点，其余部分占比 - 与类别相关的改善约60个基点复位。总之，我们增加了销售额，并对我们的类别重置项目产生了积极影响。
For fiscal 2020, excluding the impact of any unusual transactions or differential tax rates on property sales, we are estimating that the effective tax rate for the next year will be between 26% and 28%.
Our cash flow for the quarter and the full-year continues to be strong. During the quarter, increased capital expenditures principally due to timing and the sale of properties to Crombie last year that didn't reoccur, accounted for lower free cash flow compared to last year in the quarter.
For fiscal 2019, excluding Farm Boy, we invested $427 million in capital expenditures, which was in line with our public estimate of $425 million. For next year, we expect to invest approximately $600 million in capital. This estimate includes approximately $70 million for Farm Boy with the rest of the business accounting for the remainder, which we have said should over time maintaining at a level of approximately $500 million.
For the capital spend in fiscal 2020, we expect to accomplish a great deal, including an aggressive store renovation program, spending of approximately $65 million for 13 FreshCo conversions, continued investments in our Voila e-commerce business and increasing investments in information technology and innovation.
In Farm Boy we will be on construction on a number of new stores and one Sobeys Farm Boy conversion with the expectation of three of these stores will open in fiscal 2020 and the remainder early in fiscal 2021.
Looking to future reporting, we have an update on IFRS 16 in our financial statements. Last quarter we gave you an estimate of the expected impact of IFRS 16 and noted at that time that the discount rate was a key assumption and would be finalized on our transition date of May 5. Since that time we updated our discount rate to reflect changes in market discount rates as well as some new leases and lease modifications.
The expected impact on our balance sheet of IFRS 16 is the inclusion of $4.6 billion to $4.8 million of liabilities, which are largely new lease liabilities and $4 billion to $4.2 billion of additional assets primarily right of use assets. Final numbers are expected to be within these tighter ranges and will be recorded in our first quarter.
In the statement of earnings, current rent expense will be replaced by depreciation on the right of use assets and interest expense on the lease liabilities. There will be no change to the amount of cash exchange related to lease transactions, but now these cash amounts will be classified as financing cash flows rather than operating. To help you out, we have disclosed in our MD&A that in fiscal 2019 we paid approximately $500 million of net cash rent. This gives you a sense of the material impact this will have on the calculation of metrics such as EBITDA and free cash flow.
Once again, however, I will stress that these are accounting and measurement changes only and will have no effect on our cash generating ability and we do not expect any material changes related to debt ratings or financing costs. We expected in the short-term DBRS and S&P will monitor the effects on their issuers including us, and continue to use their own metrics in the short-term.
在Farm Boy，我们将在一些新店和一个Sobeys Farm Boy转换中进行建设，预计其中三家将在2020财年开业，剩余部分将在2021财年初开业。
展望未来报告，我们在财务报表中对IFRS 16进行了更新。上个季度，我们给出了对IFRS 16预期影响的估计，并在当时注意到贴现率是一个关键假设，并将在5月5日的过渡日期最终确定。从那时起，我们更新贴现率以反映变化市场贴现率以及一些新的租赁和租赁修改。
Our own assessment is that the effects of IFRS on our statements will align to our credit metrics very close, will align our credit metrics very close to both agencies and we therefore expect little to no impact on their assessment of our credit quality related to these IFRS 16 changes. Regarding the impact of our bottom line continue to estimate that adoption of IFRS 16 will not have a material effect on earnings per share. We will be hosting another very exciting conference call in July to further discuss the impact on the IFRS 16 adoption of Empire.
Lastly, we've several large initiatives happening in fiscal 2020 and we know it's helpful for our shareholders to have a bit more insight into how these initiatives may impact our future earnings. Firstly, FreshCo expansion in the West. We recently announced six Safeway stores that will be closed and converted to FreshCo stores. incurred closing costs and will be charged to earnings in the first quarter and have an impact on that quarter of approximately $12 million before tax or about $0.03 per share after tax. These costs may have up of inventory write-offs, severance and fixed asset write-offs.
We further expected later on in fiscal 2020 we may announced one more tranche of store closures, although we’re not yet ready to fix the timing or the quantum of these right now, but will update our communications and disclosures as these actions are finalized.
As Voila ramps up to a soft launch in Spring 2020, we estimate that there will be a relatively immaterial impact of about $0.01 per quarter impact in fiscal 2020 as the team grows and we incur the cost of putting a new business in place with the potential for increased marketing costs over and above that in the fourth quarter.
In fiscal 2021 with our CFC and GTA launched and beginning to ramp up design and construction of our second CFC in Montréal, we do expect further earnings dilution for fiscal 2021 and we will update our estimates closer to the launch. Our strong top line margin discipline and success in capturing the benefit of Sunrise in the bottom line, coupled with disciplined capital management has created a new level of strong consistent cash flow generation. This has provided us with the flexibility to spent on our growth and innovation agenda, look after our store fleet, fund our growth initiatives and still consider the opportunity of returning cash to our shareholders. In addition to the dividend increase and share repurchase, we will also retire some debt during the year.
With that, I will hand it over to Katie for questions.
我们自己的评估是，国际财务报告准则对我们的报表的影响将与我们的信用指标非常接近，将使我们的信用指标与两个机构非常接近，因此我们预期对他们对与这些IFRS相关的信用质量的评估几乎没有影响16个变化。关于我们的底线的影响继续估计采用IFRS 16不会对每股收益产生重大影响。我们将在7月举办另一场激动人心的电话会议，进一步讨论IFRS 16采用帝国的影响。
Thank you, Mike. Joanna, you may open the line for questions at this time.
Thank you. [Operator Instructions] And your first question is from Jim Durran from Barclays. Please go ahead.
谢谢。 [操作员说明]您的第一个问题来自巴克莱的Jim Durran。 请继续。
Good morning, afternoon. Sorry about that. Just looking at the fiscal '20 and '21 outlook, it sounds like you remain confident that you can get to a sustainable 5% EBITDA margin through a number of the initiatives. But you’ve also mentioned that you feel confident that with the new programs coming into play over that time frame, you thought you could higher and close the gap versus your competitors. Beyond Farm Boy, which obviously has higher margins, right, what are the kind of initiatives that you could talk about. Do you see driving you towards that successful outcome.
早上好，下午。 对于那个很抱歉。 仅仅看一下'20和'21财年前景，听起来你仍然有信心通过一系列举措可以获得可持续的5％EBITDA利润率。 但是你也提到你有信心在这个时间框架内新的节目发挥作用，你认为你可以更高，并缩小与竞争对手的差距。 超越农场男孩，显然有更高的利润，对，你可以谈论什么类型的举措。 你是否看到了推动你走向成功的结果。
Thanks, Jim. It's Mike. So you’re right. That is the message that you -- we have to bank some more Sunrise savings in 2020. They’re not immaterial. And as we said pretty consistently, our expectation is that the bulk of those should fall to the bottom line and that’s certainly going to help EBITDA margin. But we’ve also said pretty consistently that that's not going to get us all the way there. And we still need to improve our cost base, both cost of goods sold and our SG&A and we think there's continues to be opportunity to do that and we will keep working on it. That's an element of further closing that gap. And we need to improve our top line productivity, of sales productivity and that’s going to come through a variety of initiatives, which we are working through and we will certainly shed some more light on as we complete our strategic CNs and start to think forward to 2021. But those include getting even better at the pricing from our optimization, improving our marketing presentations in the stores, improving our customer experience, we are becoming much more of a destination store etcetera, etcetera. So it's a relatively long list, but realistic when we think about it we just reset our foundation. That's given us a lot of immediate benefits, but the very, very exciting thing about it is it gives us a ton of opportunity going forward and those are some of the items that we are referring to when we conclude that this is not even half over and we have a lot of improvements left.
谢谢，吉姆。这是迈克。所以你是对的。这就是你的信息 - 我们必须在2020年增加一些日出储蓄。它们并不是无关紧要的。正如我们非常一致地说的那样，我们的预期是其中大部分应该落到底线，这肯定会有助于EBITDA利润率。但我们也非常一致地说，这不会让我们一路走来。我们仍然需要提高我们的成本基础，包括销售成本和我们的SG＆A，我们认为仍然有机会这样做，我们将继续努力。这是进一步缩小差距的一个因素。我们需要提高我们的顶线生产力，销售生产力以及我们正在努力完成的各种计划，我们一定会在完成战略性CN并开始思考的过程中更多地了解这些计划。 2021.但其中包括通过我们的优化获得更好的定价，改善我们在商店的营销演示，改善我们的客户体验，我们正变得更像目的地商店等等。所以这是一个相对较长的列表，但是当我们考虑它时，我们只是重置我们的基础。这给了我们很多直接的好处，但非常非常激动人心的是它为我们提供了大量的机会，当我们得出结论认为这甚至没有结束时，这些是我们所指的一些项目。我们还有很多改进。
Okay. On the comp store sales, very strong year, obviously, inflation was in excess, but you had very strong real comp store sales, but we don't have the exact numbers. Certainly some transaction and traffic growth, which I assume resulted in some repatriation of market share that have been lost in the past. You're now going to be entering a year where you are up against some much improved numbers on the top line. I assume that there is some benefit that could be taken from category reset. Was Farm Boy included in comp store sales for this quarter like you plan on reporting it that way over the course of the time?
所以，Matt，正如你所知，在过去的几年里，我们一直在使OpenEdge中的所有增强功能都集中在我们从客户和合作伙伴那里听到他们想要看到的内容。 因此，12大部分都围绕着性能，可用性以及大规模100％正常运行时间的准备就绪或云类型环境的99.999％正常运行时间。 所以我们去年发布了改进的应用服务器。 我们今年发布的12.0发布。 围绕持续可用性的持续努力，所有这些事情都加入了这个和这些家伙都在努力 - 他们是零售商。 他们并没有真正考虑过将我们用于他们的在线状态等等，现在他们基本上都说，嘿，这真的很棒你们所做的。 因此，我们希望回过头来与您共同前进，以及我们如何实现现代化和前进。...
Yes, yes we do it Jim. It was included in this quarter and we are going to continue to do that. We had about a .1% impact on the same store sales number from this quarter.
是的，是的，我们这样做吉姆。 它包括在本季度，我们将继续这样做。 本季度我们对同店销售数量的影响约为0.1％。
Okay. So, again, I guess there is going to be some stuff here you are not willing to talk about, but how should we be thinking about fiscal '20 from a comp store sales standpoint? There is still a belief that I think generally inflation will slow, although the May print head of CPI was strong. How do you feel about continuing to be on the offences Mike mentioned earlier and gaining more volume growth through 2020?
好的。 所以，再说一遍，我想这里有一些你不愿意谈论的东西，但我们应该如何从comp store销售的角度思考20财年？ 尽管五月份CPI的印刷负责人表现强劲，我仍然认为通常通胀会放缓。 你觉得继续参与前面提到的犯罪并且到2020年获得更多的销量增长感觉如何？
I mean, I think we feel pretty good about our experiences that when you have some momentum it tends to carry over, harder to turn the ship when you’re not doing so well. We believe that our execution in all areas of our company and from a supply chain to a marketing in-store, digital, it's so much better that it was even a year-ago and we have plans for all of that. We won't get all the way where we want in the next year, but we are going to get quite forward. Yes, we're going to be trying to stack some good quarters. It's hard to call what inflation is going to be, so our goal is to grow tonnage and grow market share smartly and earn it and still keep it strong margin. And we're very optimistic that we continued the strong path we are on. I would like to see some summer, personally and businesswise, I think. And I would like to sell more popsicles and cold drinks. But that, its first time I ever mentioned weather here at Empire, hopefully the last. But we just keep doing our job and I'm really, really optimistic about our chances to grow that market share.
Mike, upfront you mentioned that invasion, as we think about fiscal 2020 both on branding, positioning of the conventional business, marketing initiatives including digital component. Like should we be expecting a big splash or are these initiatives going to come in spread out over time and so just build towards, we call a new conventional offering?
Yes, I don't -- I mean, I’m not, as I said it's not innovation for innovation sake. I think the biggest change we have made over the last six months is we are gearing up to be able to use data analytics and AI in a way we have never done before and I don't use AI loosely. I think people are using it a bit loosely out there in the business community, I mean, really driving our business to be smarter and test and learn and especially to take -- see more productive as we go forward. We have some initiatives right now underway that we are starting that -- we expect to see by the second half of the year, we will start to see some small impact and growing over time, rather not share that. At the same time, the -- with Sandra leading us in marketing, you're going to see much more personalization, much better use in digital and you're going to see us testing early on in the fiscal year, some things in the store and some things online that we intend if they work which we expect they will to spread across our business. Innovation is a lot big word and people throw it around a lot as I do sometimes, but a lot of it is back of the house. It's using data analytics to serve your customer better and to take extraneous costs out. But in many times too, and that's why I talked about how grocery stores are not that interesting, have not change as much as hard and soft goods. Retail stores in this country there is an opportunity to thrill our customers not only online, which we obviously are going to do, but in our stores as well. And I think we have the team, they are buying into using innovations smart, but in ways that serve our customers better, not just doing it to get a headline here and there.
是的，我不 - 我的意思是，我不是，因为我说这不是创新的创新。我认为我们在过去六个月中所做的最大改变是我们正准备以前所未有的方式使用数据分析和AI，而且我不会松散地使用AI。我认为人们在商业社区中使用它有点松散，我的意思是，真正推动我们的业务变得更聪明，测试和学习，特别是采取 - 在我们前进的过程中看到更高效。我们现在正在采取一些措施，我们正在开始 - 我们预计到今年下半年，我们将开始看到一些小的影响，并随着时间的推移而增长，而不是分享。与此同时，随着桑德拉在市场营销中的领先地位，您将看到更多的个性化，更好地利用数字化，并且您会看到我们在本财年的早期测试，有些事情在我们打算在网上存储一些我们打算工作的东西，我们希望它们会在我们的业务中传播。创新是一个很大的词，人们有时会把它扔得很多，但很多都是回到家里。它使用数据分析来更好地为您的客户服务，并消除额外的成本。但在很多时候，这就是为什么我谈到杂货店不是那么有趣的原因，并没有像硬商品那样改变。这个国家的零售店有机会让我们的客户不仅在网上兴奋，我们显然也会这样做，但在我们的商店也是如此。而且我认为我们拥有团队，他们正在购买智能创新，但是以更好地服务于我们客户的方式，而不仅仅是为了获得标题。
Great, thanks. Thanks, everybody.
Thank you. Your next question is from Michael Van Aelst from TD Securities. Please go ahead.
谢谢。 您的下一个问题来自道明证券的Michael Van Aelst。 请继续。
Michael Van Aelst
Hi. Thank you. On the inflation, so I think you said 2.2% and CPI was something like 3.5% I think for your period. So can you talk a little bit about what you are seeing in the store, the degree of trading down and the ability to pass through the full cost of goods sold, that kind of thing?
你好。 谢谢。 关于通货膨胀，所以我认为你说2.2％和CPI就像我认为你期间的3.5％。 那么你能谈谈你在商店看到的东西，交易的程度以及通过销售商品的全部成本的能力，那种事情？
I think it's Q4 was a bit higher than Q3. It depends of the category. We need to be extremely cautious on how we are passing cost increase, we need to remain competitive. In same time, the comparison with CPI we need to look at it carefully, because basket is very small and it's changing over time. So, once again, we need to look at metrics, many metrics in the same time to make sure that we pass cuts increase effectively. I think we did it because our margin is much better and we continue to expand and increase same-store sales. So it's an average, the 2.2% in the CPI and the average was small number of items, we monitor it very carefully week after week and that's the average result we have in Q4 versus Q3.
我认为它的Q4比Q3高一点。 这取决于类别。 我们需要对如何通过成本增加保持极为谨慎，我们需要保持竞争力。 同时，与CPI的比较我们需要仔细研究，因为篮子非常小而且随着时间的推移而变化。 因此，我们需要再次考虑指标，同时查看多个指标，以确保我们有效地通过削减。 我认为我们这样做是因为我们的利润率要好得多，我们继续扩大和增加同店销售额。 所以这是一个平均值，CPI的2.2％和平均值是少量的项目，我们一周又一周地非常仔细地监测它，这是我们在第四季度与第三季度的平均结果。
Michael Van Aelst
So are you seeing people trade down or trade out of certain category?
No significant change from over the last four quarter in the customer behavior. Some comment the -- rising faster than other, but no significant change in customer behavior.
与客户行为相比，过去四个季度没有重大变化。 有人评论说 - 比其他人上升得更快，但客户行为没有显着变化。
Michael Van Aelst
Okay. And Ocado, how soon can we expect to hear about commitments for the third and the fourth potential sites? Is there a certain window that you have to commit to or risk losing your turn?
好的。 还有Ocado，我们能多快听到第三和第四个潜在网站的承诺？ 是否有某个窗口需要承诺或有失去转弯的风险？
No, not at all, Michael. So when will you hear about number three, number four, the short answer is I don't know. We are working through Montréal right now and figuring our timing and design for that facility, we are just knocked down the building that was on it. As I think you probably know. So -- and that's really our primary focus at this point. We don't have any deadlines. I think that’s what you're getting at to repay in exclusivity. That's not what drives us here. It's really going to be a very direct business timing for us.
不，不是，迈克尔。 那么你什么时候会听到第三号，第四号，简短的回答是我不知道的。 我们正在通过蒙特利尔工作，并计算我们的设施的时间和设计，我们刚刚打倒了它上面的建筑物。 我想你可能知道。 所以 - 在这一点上，这确实是我们的主要关注点。 我们没有截止日期。 我认为这就是你在独家报道中所获得的回报。 这不是驱使我们在这里的原因。 这对我们来说真的是一个非常直接的营业时间。
Michael Van Aelst
Okay. All right. And then if you look at the -- if you look at your EBITDA performance for the full retail side year-over-year, I think it's up about 30 somewhat -- $30 million, $40 million. You had $200 million in Sunrise savings, but then clearly you had minimum wage headwinds, you had drug reform headwinds, things like that. But there was also some other investment that doesn't account for all of the difference. So what other cost are you seeing that are inflationary that are -- that is holding back more of that $200 million from showing up on the bottom line?
好的。 行。 然后，如果你看一下 - 如果你看一下你的EBITDA在整个零售方面的表现同比增长，我认为它大约有30个--3000万美元，4000万美元。 你有2亿美元的日出储蓄，但显然你有最低工资的不利因素，你有药物改革的阻力，这样的事情。 但也有一些其他投资没有考虑到所有的差异。 那么你看到的其他成本是通货膨胀 - 这是否会阻碍2亿多美元出现在底线？
You’re talking about the full-year, right?
Michael Van Aelst
So we refer to a number of items and certainly, may be Pierre talked about our early trading, but -- so clearly minimum wage what was an impact we had very material freight cost increases that we referred to earlier on in the year. And then a number of inflationary impacts on commodities and currency that we didn’t pass through. I think we are pretty clear about that earlier on in the year as quickly as we wanted to and that resulted in solely for the first half, lower gross margins than we would have anticipated. So those will be the headwinds that can help with the -- with from a trading perspective. I assume in asking a question that you have already accounted for things like the B.C. buyback, FreshCo store closures and that sort of things. So obviously I’m not going to bore you with those details, but that was probably the primary reasons.
所以我们提到了一些项目，当然，可能是皮埃尔谈到我们的早期交易，但是 - 显然最低工资是什么影响我们有非常重大的运费成本增加，我们在今年早些时候提到过。 然后是我们没有通过的对商品和货币的一些通货膨胀影响。 我认为我们在今年早些时候很清楚我们想要的速度，而且仅仅导致上半年毛利率低于我们预期的水平。 因此，从交易的角度来看，这些将是可以帮助的逆风。 我假设在问一个问题，你已经考虑过像B.C.这样的事情。 回购，FreshCo商店关闭和那种东西。 显然，我不打算向你介绍这些细节，但这可能是主要原因。
Michael Van Aelst
So like the freight commodity currency that was there in the first half, I mean are you expecting to be able to recapture all of that or do you think …?
I think that's -- I mean, I think if you look at our progression here, we have done pretty well in terms of maintaining margin of growing sales. And yes, we would hope to continue to expand and make sure that we price for cost increases, but I think I am balanced with the fair to say that we ended up absorbing some of that.
我认为这是 - 我的意思是，我认为，如果你看看我们的进展，我们在保持销售增长率方面做得相当不错。 是的，我们希望继续扩大并确保我们为成本增加定价，但我认为我与博览会保持平衡，说我们最终吸收了其中一些。
Michael Van Aelst
Okay. And just regionally, I know you don't want to get too specific, but it looks like Quebec operations were quite strong, if you just kind of use the noncontrolling interest changes as a bit of a guide. What do you think you are doing in Québec that is really helping you?
好的。 就区域而言，我知道你不想太具体，但看起来魁北克的运作非常强大，如果你只是将非控制性的利益变化作为一个指导。 您认为在魁北克省做什么真的对您有帮助？
Full Service. Yes. Fruition is strong in Quebec, but have been strong also in the rest of the country. When we look at the same-store sales, we got very good Q4 across the country. And I think the things working more and more together and the sharing good practices across our country. So -- and there are good practices in English Canada that Quebec using now. And I think collaboration has been great and category reset project has been a very good powerful project to bring all people together and behave as a one big company. And I think there is more to come, especially in fresh.
全面服务。 是。 魁北克省的果实很强，但在全国其他地区也很强劲。 当我们看到同店销售时，我们在全国范围内获得了非常好的第四季度。 而且我认为事情越来越多，并且在我们国家共享良好实践。 所以 - 魁北克现在使用加拿大英语的良好做法。 我认为协作非常好，类别重置项目是一个非常强大的项目，可以将所有人聚集在一起并表现为一家大公司。 我认为还有更多，特别是新鲜的。
And I think also -- I think Pierre's being a bit modest, his team in Quebec have been very good on -- I think in terms of promotional effectiveness, I think some of the promotions we had out there in the last 4 to 6 months, I think the first statement very effective and he says a replay into move some of those proficiencies across the rest of the country.
而且我认为 - 我认为皮埃尔有点谦虚，他在魁北克的团队非常擅长 - 我认为在促销效果方面，我认为我们在过去4到6个月内进行了一些促销活动 ，我认为第一个声明是非常有效的，他说重播将在全国其他地方转移一些这些熟练程度。
Michael Van Aelst
Right. Thank you.
Thank you. Your next question is from Irene Nattel from RBC. Please go ahead.
谢谢。 您的下一个问题来自RBC的Irene Nattel。 请继续。
Thanks and good morning everyone. Really intrigued by your commentary around post F 21 and beyond and where you want to take the company around innovation. Recognizing that you are not going to tell us what you're going to do, wondering maybe if you could give us an idea of who you do think he's doing in-store innovation in a really good way both in food, but also perhaps another categories or that you might be able to emulate.
谢谢大家早上好。 你对F 21及以后的评论非常感兴趣，并希望公司围绕创新。 认识到你不会告诉我们你将要做什么，想知道你是否可以告诉我们你认为他在食物中以非常好的方式进行店内创新，但也许还有另一个 类别或您可能能够模仿的类别。
I think a lot of people are doing good work in Canada, but I think -- we let this down in the United States looking at retailers in the really good job down there, I'd say that the one that we holding highest team in the United States are Kroger, Wegmans and H-E-B and we're watching a lot of what they are doing. A lot in terms of prepared foods and what they're doing in produce and some of the other areas, but also in terms of -- at Kroger where Kroger has become a very innovative grocer. Not all that’s applicable to us, but I think there is a lot to learn by seeing where they are. And they probably are couple of years ahead of offers in terms of some of the innovation, but I think we can catch up a little bit. We are not a large company, we are not going to invest as much in terms of these projects, we are going to be more selective. You can see that from how we talk in terms of our capital spending and all that. But I think when you see what some of these companies are doing behind-the-scenes, but also customer -- in terms of the customers. In terms of the e-commerce I think we got the best solution what will be the first in North America to have that.
我想很多人在加拿大都做得很好，但我想 - 我们在美国让这件事情看下来那里真正做得很好的零售商，我会说那个我们拥有最高团队的人美国是Kroger，Wegmans和HEB，我们正在关注他们正在做的很多事情。在准备好的食物方面，以及他们在农产品和其他一些领域所做的事情，以及在克罗格，克罗格已经成为一个非常有创意的杂货店方面。并非所有这些都适用于我们，但我认为通过了解它们的位置可以学到很多东西。就某些创新而言，他们可能比优惠提前几年，但我认为我们可以赶上一点点。我们不是一家大公司，我们不会在这些项目上投入太多，我们将更具选择性。你可以从我们的资本支出和所有这些方面的谈话中看出这一点。但我认为，当你看到这些公司中的一些公司在幕后做的事情，以及客户方面。在电子商务方面，我认为我们得到了最好的解决方案，这将成为北美第一个拥有该解决方案的解决方案。
Understood. And that sort of leads in to my next question which is clearly you are investing in data analytics and capability. What are you adding, where are you adding, what is the magnitude and where do you see the greatest potential impact of that?
了解。 这样就引出了我的下一个问题，显然你正在投资于数据分析和功能。 您在添加什么，在哪里添加，幅度是多少？您认为最大的潜在影响在哪里？
Well, we have done a lot of work as a team and with our Head of Human Resource, he is very strong, Simon Gagne. And we have done a lot of work looking at which companies have done it well and which countries are just spending a lot of money, we believe we need to be extremely prudent and not gear up too quickly. But it is very difficult for any individual company to staff up right away and have the kind of data engineers and analytics that people talk about and the best companies out, they are doing it and many of them are European, build slowly and concentrate on a few key innovation and AI projects at the beginning and ramp up their capabilities there and that they partner. They don’t just have something way off and doing whatever they want. They partner with the operators and the merchants and the market is to make sure its relevant. So I think that as we -- I think we actually have some skill right now. We are doing something especially merchandising there, they are going to pay off for the next year and two and in marketing. But you got to be very careful not just to sort of -- we did a lot of work to become a very efficient -- more efficient company. We have a lot of more work to close that EBITDA margin gap. And throwing money around willy-nilly and doing innovation for innovation's sake is not the strategy we want to pursue. At the same time our goal is to be the most innovative retailer in Canada. But it's not going to be in the next year. We will do it in the right way as we have benchmarked.
好吧，我们作为一个团队和我们的人力资源主管做了很多工作，他非常强大，Simon Gagne。我们已经做了很多工作，看看哪些公司做得很好，哪些国家只是花了很多钱，我们认为我们需要非常谨慎，而不是过快加速。但是，任何一家公司都很难立即组建员工并拥有人们谈论的那种数据工程师和分析以及最好的公司，他们正在这样做，其中很多都是欧洲人，建设缓慢，专注于一开始很少有关键创新和人工智能项目，并在那里提升他们的能力并与他们合作。他们不仅有一些方法可以做任何他们想做的事情。他们与运营商和商家合作，市场是确保其相关性。所以我认为，正如我们 - 我认为我们现在确实有一些技巧。我们正在做一些特别是那里的商品推销，他们将在明年和第二年以及营销方面获得回报。但是你必须要非常小心，不仅仅是为了 - 我们做了很多工作才能成为一个非常高效 - 效率更高的公司。我们还有很多工作可以缩小EBITDA利润差距。并且为了创新而为了创新而投入资金并不是我们想要追求的策略。与此同时，我们的目标是成为加拿大最具创新性的零售商。但它不会在明年。我们将以正确的方式进行基准测试。
Understood. And just one final, against sticking with this whole discussion, certainly as part of the category resets in general, you really raised your game on private label. Would you be willing to talk about where the penetration is, Wire is coming from and how important you see that as you move forward.
了解。 只有一个决赛，反对坚持整个讨论，当然作为一般类别重置的一部分，你真的提出了自己的游戏标签。 您是否愿意谈论渗透的来源，Wire来自哪里以及您在前进中看到的重要性。
I’m going to turn to Pierre who hates to give away any competitive information at all. So let's see what he says.
We know we are under index in private label. Once again, the category reset exercise has been extremely positive to identify specific role for private label. And so for we are seeing very encouraging results on category we executed a store level. So we are expecting having a fastest growth in private label than -- this because we are all under index and just because now in every single category private-label will have a specific role to play and in some category private-label won't play a role, and just because there is no room for private label and so we are very -- category reset was really good exercise to identify this opportunity and so far we catching them and we see positive results. So we are expecting increasing our penetration with private-label going forward.
我们知道我们在私人标签中处于索引状态。 再一次，类别重置练习对于确定私人标签的特定角色非常积极。 因此，我们在类别上看到非常令人鼓舞的结果，我们执行了商店级别。 所以我们期望自有品牌增长最快 - 这是因为我们都在索引之下，只是因为现在每个类别的私人标签都有特定的角色可以发挥作用，而在某些类别中私人标签将不会发挥作用 一个角色，只是因为没有私人标签的空间，所以我们非常 - 类别重置是确定这个机会的非常好的练习，到目前为止我们抓住他们，我们看到积极的结果。 因此，我们期待随着私有品牌的发展而增加我们的渗透率。
That's great. Thank you.
Thank you. Your next question is from Vishal Shreedhar from National Bank. Please go ahead.
谢谢。 您的下一个问题来自国家银行的Vishal Shreedhar。 请继续。
Hi. Thanks for taking my questions and congrats on the quarter. In terms of the new efficiency program, call it, Project Sunrise 2.0, do you anticipate that the efficiencies from that will offset the costs that you have relate to all these growth initiatives that you have going on, or is that something more than, something substantially like what we saw in the first iteration?
你好。 感谢您提出我的问题并祝贺本季度。 就新的效率计划而言，称之为Project Sunrise 2.0，您是否预期效率会抵消与您所进行的所有这些增长计划相关的成本，或者是某些因素， 基本上像我们在第一次迭代中看到的那样？
Well first, I'm going to say it's not going to be called Sunrise 2.0, but that is -- I don’t know how you know it, our working title right now. But it won't be the final title.
首先，我要说它不会被称为Sunrise 2.0，但那就是 - 我不知道你怎么知道它，我们现在的工作头衔。 但它不会是最终的头衔。
Well, I think it would be fair to say that, as we said early days, working through it. We also still have to bank a big number for 2020. That’s what most of our operating people focused on. But as the management team we are focused on aggressively growing our bottom line. So one way or the other where we have point this business as in terms of strategic direction. We have to eat day and grow tomorrow. So I think you’re going to expect that we will have aggressive goals in terms of growing our year-over-year earnings numbers. How that works out in terms of the combinations of dilution will take on a discount expansion versus improvements and promotions etcetera, etcetera. That’s our. Certainly, we are not going to take a vacation from growing our bottom line.
嗯，我认为，正如我们早期所说的，通过它来说，这是公平的。 我们还需要为2020年提供大量资金。这就是我们大多数运营人员关注的问题。 但作为管理团队，我们专注于积极发展我们的底线。 因此，无论从哪方面来看，我们都将这项业务称为战略方向。 我们必须吃一天，明天才能成长。 所以我认为你会期望我们在增加我们的同比收入数字方面会有积极的目标。 如何根据稀释组合进行折扣扩张，而不是改进和促销等等。 那是我们的。 当然，我们不会因为增加我们的底线而休假。
Okay. Thanks for that color. And just in terms of how far you are in terms of identifying the opportunity. Is this something that you'd say your pretty far down the road or is it -- and you mentioned the word early days we still don't know what the opportunities are working out to figure them out.
好的。 谢谢你的颜色。 就你在识别机会方面的程度而言，就目前而言。 这是你要说的很远的东西，或者是它 - 你提到了早期的话，我们仍然不知道有什么机会可以解决它们。
We have some strong perspectives. Our strategy sessions and finalizing these things did happen just sort of in the early fall October, November time frame, that’s when our directors -- Board of Directors will get good looks at it. So as I said, still ways to go. And you can probably expect to see and hear a little more about our thoughts 2021 and beyond as we progress later through 2020.
我们有一些强有力的观点。 我们的战略会议和最终确定这些事情确实发生在十月，十一月初的时间段，那时我们的董事 - 董事会将会很好地看待它。 正如我所说，还有很长的路要走。 随着我们在2020年后期的进展，您可能希望能够更多地了解和了解我们2021年及以后的想法。
Okay. Thank you for that. In terms of in the quarter when implemented these category resets, just an outsider looking in one might imagine that these kinds of initiatives will be very labor-intensive and may have hit you a little on the SG&A line, may be you can give me some color on if that was, in fact, the case? And do you see that cadence, if I'm correct, improving as you move on?
好的。 谢谢你。 在实施这些类别重置的季度中，只有一个局外人可能会想到这些类型的举措将是非常耗费人力的，可能会在SG＆A线上给你一点点，可能你可以给我一些 事实上，如果是这样的颜色呢？ 如果我是正确的话，你会看到那种节奏吗？
Like you mentioned, like resetting the stores.
Right, right. If that impacted your labor costs as you want to …
Oh I see, okay. No, no. The labor cost impact that I referred to is primarily the sales driven. So we didn’t have increases in our sales that -- sorry in our store labor that would merit isolating or discussing in the context of our fourth quarter.
哦，我明白了，好的。 不，不。 我提到的劳动力成本影响主要是销售驱动。 因此，我们的销售额没有增加 - 对于我们的商店劳工而言，这是值得在第四季度的背景下进行隔离或讨论。
Okay. And in terms of the category resets, I believe you mentioned in the script, generally satisfied with them right now. How long does it take you to get a good read if the customers are reacting negatively towards them? Are you -- does it take one quarter, a few months, a year?
好的。 就类别重置而言，我相信你在剧本中提到过，现在对它们总体上很满意。 如果客户对他们做出消极反应，您需要多长时间才能获得良好的阅读？ 你 - 这需要一个季度，几个月，一年吗？
The execution of the category reset should end in October. It started in the beginning of -- end of January, beginning of February last year. Grocery, it's -- I would say 70% of the execution is done. We are in good direction. I mean, grocer will be finished at the end of August and we go aim consciously category by category. There is no big disruption in store, so it's well geared let's say process because it started in January and we learned a lot in every tranches. So there is no disruption, no major disruption, I think. So the process is going really well. And this fall the remaining category will be in fresh. And in many fresh categories, there is no realigning required. So I think that the biggest part of realigning is behind us. There is still some quite a bit ahead of us. But we are confident to complete that without major disruption and without any customer dissatisfaction so far. So we're really pleased about that, that's over our expectation. We did a lot of pre-work led by the merchants to go through every category and understand how customers approach it what they're looking for. We expect a little bit of pushback in terms of some of the realigns -- given the realigning, you’re changing some of the categories. I think we are a little surprised actually, Vishal how well all of this is played out. I was going to say we’ve had de minimis effects. I wouldn’t even say it's de minimis, it's just non-existent in terms of the categories, every single category we have realigned. We are pleased with the changes, from a customer point of view and from a sales point of view, we think the very, very positive growing forward.
类别重置的执行应在10月结束。它始于1月初，去年2月初。 Grocery，它是 - 我会说70％的执行完成了。我们的方向很好。我的意思是，杂货店将在8月底完成，我们有意识地逐个目标。商店没有大的中断，因此它很好地说是因为它从一月开始，我们在每一部分都学到了很多东西。因此，我认为没有中断，没有重大中断。所以这个过程非常顺利。今年秋天剩下的类别将是新鲜的。在许多新的类别中，不需要重新调整。所以我认为重新调整的最大部分就在我们身后。我们还有一些相当多的东西。但我们有信心在没有重大干扰的情况下完成这项工作，并且到目前为止没有任何客户不满意。所以我们真的很高兴，这超出了我们的期望。我们做了很多由商家带领的前期工作来完成每个类别，并了解客户如何处理他们正在寻找的东西。我们预计在一些调整方面会有一些阻力 - 考虑到重新调整，你正在改变一些类别。我认为我们实际上有点惊讶，Vishal所有这一切都发挥得淋漓尽致。我打算说我们已经有了微量的影响。我甚至不会说它是微不足道的，它只是在类别方面不存在，我们已经重新调整了每个类别。我们对这些变化感到满意，从客户的角度来看，从销售的角度来看，我们认为非常非常积极的成长。
Okay. And maybe just a high-level question here. A few years ago, analysts used to ask the question about conventional and its positioning in the Canadian gross replace the traditional conventional grocery store and its positioned and whether it was over stored from that standpoint of the conventional grocer? Wondering if you have an opinion on that? And I know you're growing discount in select markets, but what's your view on just generally conventional grocery and how they have to compete?
好的。 也许这里只是一个高级问题。 几年前，分析师曾经问过传统及其在加拿大的定位问题，取代传统的传统杂货店及其定位，以及是否从传统杂货店的角度来看存储过度？ 想知道你是否对此有意见？ 而且我知道你在特定市场上的折扣越来越大，但你对普通传统杂货的看法是什么以及它们如何竞争呢？
I think reset 2.5 years ago, that there's a big place in Canada for full service. What you call conventional, we call full service grocery. There's a place for discount. Many customers shop both the different times, we at that time saw that the matured in a way that there was a good mix of full service and discount in Central Canada, and I think that's the way it's played out. Two things, I would think to mention one is, you can see from our results over the last year. I think we’ve grown tonnage and same-store sales, strongly more strongly than anyone else in the country. So -- and almost all of that is in full service. So that kind of carries that out and that we thought that there was a real opportunity in Western Canada that owe in some markets to convert to the discount, but the FreshCo 2.0 which is pointing out grey. And we will take advantage of that, but I think you build a store, whether it's discount or it's full-service, or you put up put up Voila and if it's great for the customer, it does great. And I think right now I’m happy with the stores we have. It's our duty to make them even better to real customers and keep drilling them.
我认为重置2.5年前，加拿大有一个很大的地方可以提供全面服务。你称之为传统，我们称之为全方位服务杂货。有折扣的地方。许多顾客在不同的时间购物，我们当时看到成熟的方式在加拿大中部有一个完整的服务和折扣的良好组合，我认为这是它的方式。有两件事，我想提一下，你可以从我们去年的结果中看到。我认为我们的吨位和同店销售额增长强劲，强劲程度超过该国其他任何人。所以 - 几乎所有这些都是全面服务的。因此，我们认为加拿大西部有一个真正的机会可以在一些市场上转换成折扣，而FreshCo 2.0则指出灰色。我们将利用这一点，但我认为你建立了一个商店，无论是折扣还是全方位服务，或者你提出了推出Voila，如果它对客户来说很棒，它确实很棒。我想现在我对我们的商店很满意。我们有责任让他们对真正的客户更好，并继续钻探他们。
Thank you. Your next question is from Patricia Baker from Scotiabank. Please go ahead.
谢谢。 您的下一个问题来自丰业银行的Patricia Baker。 请继续。
Thank you very much. I have two questions. My first one will be for you, Mike. You indicated that you're ahead of plan with Sunrise by about $50 million. Of course, raise the goal from $500 million to $550 million. I'm just curious the extra -- the $50 million where you're ahead of plan, is that primarily related to extra gains that you got from the category resets or is it broader than that?
非常感谢你。 我有两个问题。 迈克，我的第一个将是给你的。 你表示你已经超过了大约5000万美元的日程计划。 当然，将目标从5亿美元提高到5.5亿美元。 我只是好奇额外的 - 你提前计划的5000万美元，主要与你从类别重置获得的额外收益有关，还是比这更广泛？
I think it's broader -- would be the very superficial top line answer. So when we originally set out our expectations, if you think about what as we kind of reformulated this a little, if you sort of think about it maybe in this context. We -- as you can imagine we do drive our internal people to higher numbers because we always worry about missing it. So I think we’ve managed to bank a few of those fresh targets that would be really across the board firstly. And so I wouldn't point anyone particular item or event on that secondly, I think we actually have said it a few times that we actually got going on the negotiations and the category reset work, probably at least the quarter earlier than we had originally set out when we set that $500 million target out. So there is some -- it's a little bit of timing there. And then lastly if you think about what we have said here, where previously we said we would be annualizing $500 million by the end of 2020. If you look at that math, we will be almost fully capturing that $500 million by the end of 2020. So those will be in the things -- probably the things that have caused us maybe to be higher. Its shooting a slightly higher target being a little bit ahead of schedule.
我认为它更广泛 - 将是非常肤浅的顶线答案。因此，当我们最初提出我们的期望时，如果你想一下我们稍微重新制定了什么，如果你想到它可能就是在这种情况下。我们 - 你可以想象我们会把内部人员推向更高的数字，因为我们总是担心错过它。因此，我认为我们已经设法将一些新的目标存入银行，这些目标首先是全面的。所以我不会指出任何特定的项目或事件，我认为我们实际已经说了几次，我们实际上进行了谈判和类别重置工作，可能至少比我们原来的那个季度当我们设定5亿美元的目标时，我们就会着手。所以有一些 - 那里有一点时间。然后，如果你考虑一下我们在这里所说的话，我们之前曾说过，到2020年我们将年化5亿美元。如果你看一下这个数学，到2020年我们几乎可以完全捕获5亿美元所以那些东西也会存在 - 可能是导致我们变得更高的东西。它的射击目标略高于计划。
Okay. Thank you, Mike. That's helpful. And Michael, if I may, I have a question for you. I was very intrigued to hear you in your opening remarks talk about innovation agenda, and I know you've already been asked a few questions about it. Fully understand why you're not going to tell us what the projects are. But I have got sort of three little questions around the innovation agenda. First of all, exactly when in the course of the last year or so did the company turn to being able to have innovation as part of its strategic priority and started doing the work and thinking about this? Then secondly, who is in charge of this, who is spearheading it? And thirdly, echoing back something you said on that analytics and, in fact, that you thought the people who do it right are the ones who take small projects and get their feedback on those but importantly involve the operators and the merchants. So would I be right in assuming that these innovation agenda would be projects, which would involve all kinds of different areas and operators within the company?
Yes. That’s a great question. Thanks, Patricia. I always thought it would take two years to put the infrastructure in place to really be able to go at innovation. 5, 6, months ago that we could -- and without taking too much of attention away from category resets and from all the great work we’re doing and in the stores and the merchandising. You can see the results of that we could start training our mind too. Also its been innovation, but especially data analytics. And so right -- it was almost on schedule that after 2 years I think we felt that way. Innovation has to come from the operator, like the operator, like the operators are merchants. It doesn’t take hold and if it's just CEO and some crew or strategy and innovation people trying to shove down their throats. We’ve been fortunate to -- I’ve been fortunate to inherit and now grow the team to include people who not only are really tough on execution, really good at it but they embrace innovation. If they see that innovation is better for the customer and better from the bottom line. And so, we are going to bring in a head of innovation, we are going to announce that pretty soon. And that person though I have to be someone who can collaborate at work and coordinate across our businesses, because that person on their own can't do much at all without working across the businesses, but I am very, very optimistic about the type of person we are going to bringing into that role and even more excited about the security team we have here to lead innovation. I'm sorry, what was your third question?
是。这是一个很好的问题。谢谢，帕特里夏。我一直认为需要两年时间才能建立基础设施才能真正实现创新。 5,6，几个月前，我们可以 - 并且不会过多地关注类别重置以及我们正在做的所有伟大工作以及商店和商品推销。你可以看到我们可以开始训练我们的思想的结果。它也是创新，尤其是数据分析。这是正确的 - 几乎按计划在2年之后，我认为我们就是这样。创新必须来自运营商，如运营商，就像运营商是商家一样。它没有成功，如果它只是首席执行官和一些工作人员或战略和创新人们试图推翻他们的喉咙。我们很幸运 - 我很幸运地继承并且现在成长为团队成员，他们不仅在执行方面非常强硬，而且非常擅长，但他们拥抱创新。如果他们发现创新对客户更好，从底线更好。因此，我们将引入一个创新的领导者，我们将很快宣布。而那个人虽然我必须是一个可以在工作中协作并协调我们的业务的人，因为如果没有在整个企业中工作，那个人本身就无法做很多事情，但我对这种类型非常非常乐观。我们将加入这个角色的人，甚至对我们在这里领导创新的安全团队感到更加兴奋。对不起，你的第三个问题是什么？
I think it -- it was when, who and the breadth. And I think you've answered all of those questions.
我认为 - 这是何时，谁和广度。 而且我认为你已经回答了所有这些问题。
Okay, good. I’m glad.
Well, I appreciate that. I look forward to hearing about the newer higher.
It's important to note, a lot of people talk about innovation, I talk about a lot. But it's kind of be part of the business, it's got to be plant. Innovation without process, without discipline just coming up with crazy ideas don't do anything, just spends a lot of money and throws you off what you're trying to do. We are building this into -- the three-year plan is going to be about execution, innovation and then many ways that’s going to be [indiscernible] and that much of the efficiency, not only the sales growth and the customer satisfaction you’re going to see is going to be from innovating new ways of doing things. Well, I can tell you peer is becoming quite the expert on AI right now among other things. So that gets me excited and that I know we will have real tangible effort rather than just as I said getting some headlines, something which doesn't do anything for us.
值得注意的是，很多人谈论创新，我谈了很多。 但它有点属于业务，它必须是工厂。 没有过程的创新，没有纪律，只是提出疯狂的想法，什么都不做，只是花了很多钱，并把你扔掉你想要做的事情。 我们正在构建这个 - 三年计划将是关于执行，创新，然后是许多方式[音频不清晰]和大部分效率，而不仅仅是销售增长和客户满意度 将要看到的是创新的新方式。 好吧，我可以告诉你，同行现在正成为人工智能的专家。 所以这让我很兴奋，而且我知道我们会有真正的实际努力，而不仅仅是因为我说了一些头条新闻，这对我们没有任何帮助。
Just Michael or I don't know who will answer this question, but on sticking with the topic of innovation but not talking about product innovation, I noticed that at the beginning of the season, you guys -- Sobeys kind of led with the beyond meat burger on the front page of the flyer for the holiday weekend. Just curious if you could tell me how that went?
只是迈克尔或我不知道谁会回答这个问题，但是坚持创新的主题而不是谈论产品创新，我注意到在赛季初，你们 - Sobeys有点超越了领导 假日周末传单的首页上的肉汉堡。 只是好奇你能告诉我那是怎么回事吗？
We made many changes in the structure when we did Sunrise and we brought in our team new ideas, new teammates, beyond merchandiser with the combination of experienced people. And you know what, our young people are very fan of that type of product and the sound that it was a huge opportunity to thrill customer. And we approached that company as 1 or the other for some it was our first launch coast-to-coast and we have been attractive for that supplier to enter those -- the only product in Canada. And that's just the beginning and the power of working together and we have been able to do that statement in our flyer because we made a good deal with the supplier. and the supplier was happy to do that and with that so that's beginning of a great partnership with suppliers going forward and our expectation is to become the best retailer to work with for supplier by having good partnership and promoting their product when we think that it's relevant to customers.
当我们做Sunrise时，我们在结构上做了很多改变，我们带来了团队的新想法，新的队友，超越了商人和经验丰富的人的组合。 而且你知道吗，我们的年轻人非常喜欢这种类型的产品，而且声音是一个激动客户的巨大机会。 我们以1或者其他方式与该公司接洽，这是我们首次在海岸到海岸的推出，我们对该供应商进入那些 - 加拿大唯一的产品 - 很有吸引力。 这只是开始和合作的力量，我们已经能够在我们的传单中做出这样的陈述，因为我们与供应商达成了很好的协议。 供应商很乐意这样做，因此开始与供应商建立良好的合作伙伴关系，我们期望通过建立良好的合作伙伴关系并在我们认为与产品相关时推广他们的产品，成为与供应商合作的最佳零售商 给客户。
Thank you very much, Pierre.
Thank you. Your next question is from Peter Sklar from BMO Capital Markets. Please go ahead.
谢谢。 您的下一个问题来自BMO Capital Markets的Peter Sklar。 请继续。
Hi. Its Emily Foo for Peter Sklar. Just a question on the benefits that you're getting in fiscal 2020 from Sunrise, the $250 million, how much of that would be in that category resets or vendor [indiscernible]? And along the same line of vendor negotiations, like how are those going and are they still ongoing?
你好。 它的Emily Foo为Peter Sklar。 关于您在2020财年从Sunrise获得的收益的问题，2.5亿美元，该类别中的多少将重置或供应商[音频不清晰]？ 并且沿着供应商谈判的同一行，就像那些如何进行并且它们仍然在进行中？
A high percentage, more than [indiscernible] of that would be in -- related to the work we are doing of category resets and vendors. To -- as to the second question, in terms of how far along are we? I think Pierre mostly covered that when he said we are probably about 70% way through in terms of negotiations. Grocery negotiations pretty well done. Now we enter execution and some fresh negotiations along the table for 2020. So I think it would be fair to say that that estimate for 2020 is based on some very high visibility we have, having completed a very material, in fact almost the majority of the negotiations that really count.
与我们在类别重置和供应商方面所做的工作相比，这个百分比很高，超过[音频不清晰]。 至于 - 关于第二个问题，就我们有多远而言？ 我认为皮埃尔大多报道说，他说我们在谈判方面可能只有70％左右。 杂货谈判做得很好。 现在我们进入执行和2020年的一些新的谈判。所以我认为可以公平地说，2020年的估计是基于我们拥有的一些非常高的知名度，完成了非常重要，实际上几乎占大多数 真正重要的谈判。
Okay, great. Thanks. And on to FreshCo 2.0, so it seems like the launch was a success and we’re just wondering what in particular resonating with the customers there? You've had any lessons and if you've seen any response from any competitors in the regions?
好，太棒了。 谢谢。 而对于FreshCo 2.0，似乎推出是成功的，我们只是想知道特别是那里的客户产生什么共鸣？ 您有过任何课程，如果您看到过该地区任何竞争对手的任何回应？
Yes, its Michael. Let me -- I'll give a bit of an overview and I'll answer your question. So stores -- the stores we’ve opened today are doing great. We’ve five open, we saw strong opening sales and very positive customer reaction. As we totally expected, as we take -- as we go in and take market share from people, they don't like that. And they’ve felt our arrival when they’re reacting to it. So -- and that’s totally expected, that’s what I would do too. But we are going to aggressively compete out there full on to thrill our customers and take away competitive market share. So all is going according to plan and be better than planned. We can't wait to get these FreshCo stores open. I think there's just a need -- there was a need that we identified two years ago for a store of that size and that caliber to enter these markets and to bring discount prices to markets that for the most part we are getting. And I think in this case -- if I maybe so bold that before when we would open something, whether it would be FreshCo in Ontario or Price Chopper, we weren't aggressive enough in terms of our marketing. We have put together a great marketing program to introduce this brand to these communities and awareness is extremely high. And we are -- when people come to do it they’re being thrilled. And we just -- more and more we just have process and discipline behind things that we do, and we are not just opening the open store, we are making sure before we open these stores that everything including supply chain is ready to go. I would say that I’ve been very, very, very impressed with our FreshCo team led by Mike Venton. Mike's a solid experienced discount retailer and I think that combined with the talent we already had here has really made a difference. And so we have a great strategy, we are doing the right thing and we are making customers happy and so we can't wait to get those all 65 opened.
是的，它的迈克尔。让我 - 我会给出一些概述，我会回答你的问题。所以商店 - 我们今天开设的商店都很棒。我们有五个开放，我们看到了强劲的开放销售和非常积极的客户反应。正如我们所预期的那样 - 当我们进入并从人们那里获取市场份额时，他们并不喜欢这样。当他们对此做出反应时，他们已经感受到了我们的到来。所以 - 这完全是预期的，这也是我会做的。但我们将积极参与竞争，以激励我们的客户，并夺走竞争性的市场份额。所有这一切都按照计划进行，并且比计划更好。我们迫不及待地想让这些FreshCo商店开放。我认为这只是一种需求 - 我们需要在两年前确定这样规模的商店和能够进入这些市场的商店，并将折扣价格带到我们大部分时间都能获得的市场。而且我认为在这种情况下 - 如果我可能那么大胆以至于在我们开设东西之前，无论是安大略省的FreshCo还是Price Chopper，我们在营销方面都不够积极。我们已经制定了一个很好的营销计划，将这个品牌介绍给这些社区，并且意识非常高。我们是 - 当人们来这么做时，他们会很激动。我们只是 - 越来越多的我们只是在我们所做的事情背后有流程和纪律，而且我们不只是打开开放式商店，我们在开设这些商店之前确保包括供应链在内的所有商品都已准备就绪。我会说我对Mike Venton领导的FreshCo团队印象非常非常深刻。迈克是一个经验丰富的折扣零售商，我认为结合我们已经拥有的人才真的有所作为。因此，我们有一个很好的策略，我们正在做正确的事情，我们正在让客户满意，所以我们迫不及待地想让所有65人都开放。
Great. And lastly on Farm Boy. It -- has it been to your expectations?
非常好。 最后是农场男孩。 它 - 它符合你的期望吗？
Yes, we are right on. This is the well run machine. This is run by a fantastic and small and efficient team that cares so much about the customers. For the most part of my job is not to get in their way. To give them all the help that a large company can give including real estate without in any way changing their offering to the customer or the brand. I think we’ve more than accomplished that, although at the same time I believe that they brought value to us in their knowledge of -- customers, brand but especially in terms of setting up a store to meet customers' needs in an urban market. So I would say -- I was going to say right on, but I would say it's better than right on since we’ve purchased, it's a great outfit and that's why we went after it so aggressively.
是的，我们是对的。 这是运行良好的机器。 这是由一个非常小而高效的团队运作，关注客户。 我工作的大部分时间都不是妨碍他们。 为他们提供大公司可以提供的所有帮助，包括房地产，而不以任何方式改变他们向客户或品牌的产品。 我认为我们不仅仅取得了成就，尽管我同时认为他们在客户，品牌知识方面为我们带来了价值，尤其是在建立商店以满足客户在城市市场的需求方面。 所以我会说 - 我会说正确的，但我会说它比我们购买的更好，这是一个很好的装备，这就是为什么我们如此积极地追求它。
That's great. Thanks for your comments.
Thank you. [Operator Instructions] And your next question is from Mark Petrie from CIBC. Please go ahead.
谢谢。 [操作员说明]您的下一个问题来自CIBC的Mark Petrie。 请继续。
Hi. This is actually Krishna Ruthnum on for Mark. I wanted to come back to an earlier question that was asked on the benefits of project Sunrise is flowing down to the bottom line. But given that we've lapped many of the headwinds that you faced in this past fiscal year sort of looking ahead to the $250 million in savings to be harvested in 2020 -- fiscal 2020. How do you think about your ability to trickle those savings down all the way to EBITDA?
你好。 这实际上是Krishna Ruthnum对Mark的看法。 我想回到之前提出的关于项目的好处的问题日出正在向底线发展。 但考虑到我们已经在上一财年中遇到了许多不利因素，那就是期待2020年到2020财年将节省2.5亿美元的储蓄。您如何看待这种节省能源的能力 一直到EBITDA？
We think about it the same way as we did beginning 2019 really. Our goal will be to record as much of that on bottom-line as we can and frankly, our senior management is in fact incentivized to do that. The success of doing that is obviously dependent on a number of things, internal execution, market factors and to some extent some really investments and things like marketing and other things just a little bit of this quarter. So it's our expectation that the vast majority of it will end up on the bottom line in our earnings.
我们的思考方式与2019年开始时的方式相同。 我们的目标是尽可能多地记录底线，坦率地说，我们的高级管理层实际上是鼓励这样做的。 这样做的成功显然取决于许多事情，内部执行，市场因素以及在某种程度上一些真正的投资和诸如营销和其他事情这样的事情本季度的一点点。 所以我们的期望是，绝大部分都会在我们的收益中占据最底线。
Okay. Just moving onto SG&A, so I mean, it grew fairly significantly this fiscal year. I just wanted to know if you can elaborate more on the piece of SG&A growth or maybe just give us some guidance on how you see that evolving from the first half to the second half of the year?
好的。 刚刚进入SG＆A，我的意思是，它在本财年的增长相当显着。 我只是想知道你是否可以详细说明SG＆A增长的一部分，或者只是给我们一些关于你如何看待从上半年到下半年发展的指导？
From the first half of 2020 to the second of 2020?
Probably not guidance. I mean, clearly, we have some more work to do and a lot of and a lot of that Sunrise target for 2020 will be in the SG&A line. So at the same time we do anticipate Farm Boy -- full-year Farm Boy to have an inflationary impact if you recall that on the SG&A line because their service model and their in-store model is more expensive than ours and comes with a higher store labor rate than our full-service or our discount stores. But it is a goal ex Farm Boy and ex the impact of higher sales, does drive higher installed labor. It is our intention to continue to reduce that SG&A line as a percent of sales. So that's our intention. At the same time, we do have some intentions to invest more in innovation marketing at this stage it will be finished we don't have a total fixed on the number. And that’s something as it occurs, if it occurs, we'll certainly disclose it.
可能不是指导。 我的意思是，很明显，我们还有更多的工作要做，而且2020年的Sunrise目标很多都将在SG＆A系列中。 因此，与此同时，我们预计农场男孩 - 全年农场男孩会因为他们的服务模式和他们的店内模式比我们的服务模式更昂贵并且具有更高的价格而在SG＆A线上产生通货膨胀影响 存储人工费比我们的全方位服务或我们的折扣店。 但这是农场男孩的目标，并且除了更高的销售额的影响，确实推动更高的安装劳动力。 我们打算继续减少SG＆A产品线占销售额的百分比。 这就是我们的意图。 与此同时，我们确实有一些意图在这个阶段投入更多的创新营销，它将完成我们没有完全固定的数量。 这就是它发生的事情，如果它发生，我们肯定会披露它。
Okay. Moving onto CapEx, so just considering the $600 million number aside from the $70 million set aside for Farm Boy. Can you give us a sense of how that splits out between Voila GTA, Voila in Quebec and then the FreshCo rollout at West?
好的。 转移到资本支出，所以只考虑6亿美元的数字，而不是为农场男孩预留的7000万美元。 你能不能让我们了解一下Voila GTA，魁北克的Voila和西部的FreshCo推广之间的区别？
I think I gave the FreshCo number in my comments, which was $65 million. That would be an element of it. The largest element of the remainder of the spend is store renovations which is going to be a very significant focus for us in this year. And the completion of -- as you said of the Voila, GTA warehouse and Montréal will be another component. We're not in a position to put numbers to that yet. We are still working on Montréal and timing of the design and construction as we get closer to that we will be a little more had going about -- disclosing and talking about those numbers.
我想我在评论中给出了FreshCo号码，这是6500万美元。 这将是它的一个要素。 剩余花费中最大的元素是商店装修，这将是我们今年非常重要的一个重点。 完成 - 如你所说的Voila，GTA仓库和蒙特利尔将是另一个组成部分。 我们还不能把数字放在那里。 我们仍然致力于蒙特利尔和设计与施工的时间安排，因为我们接近我们将会更多地进行 - 披露和讨论这些数字。
Thank you. We have time for one last question from Keith Howlett at Desjardins. Please go ahead.
谢谢。 我们有时间为Desjardins的Keith Howlett提出最后一个问题。 请继续。
Yes. So I want to ask about the store renovation budget, if you can quantify that and how many stores you're intending to touch and sort of what the nature of the projects you have in mind?
We are not disclosing that that number at this point, Keith, but some color on it is -- we have isolated our fleet into probably -- and segmented it into a program that's going to take 5 plus years. So this is a long-term and a consistent program that we anticipate to invest in over the year -- over the coming years, because it's a very important part of our brand strength. Some of these are fairly light touch renovations. We are finishing up the FreshCo 2.0 packages in Ontario and there are some heavy ones where we're redoing significant elements of the store. So the cost of each of them is materially different and how we impact the store is different as well. It will be fair to say that if you had to say where is most of the spend occurring, significant amount in Quebec that will be consistent with prior years. We will be doing more in the West in 2020 than we have before. So a commensurate decline in Ontario in the East. And of course we have the conversions as I talked about in the FreshCo stores.
我们现在还没有透露这个数字，Keith，但是它的一些颜色是 - 我们已经将我们的船队分离出来 - 并将其分割成一个需要5年多的程序。因此，这是一个长期和一致的计划，我们预计在未来几年内投资一年，因为它是我们品牌实力的重要组成部分。其中一些是相当轻微的触摸装修。我们正在完成安大略省的FreshCo 2.0套餐，还有一些重要的套餐，我们正在重做商店的重要元素。因此，每种产品的成本都有很大差异，我们对商店的影响也不同。可以公平地说，如果你不得不说出大部分花费在哪里，魁北克的大量金额将与前几年保持一致。我们将在2020年在西方开展比以往更多的工作。因此东部安大略省相应下降。当然，正如我在FreshCo商店中所谈到的那样，我们有转换。
Thank you. That concludes the Q&A. I will now turn it back over to Katie Brine for closing remarks.
谢谢。 问答结束了。 我现在将其转回Katie Brine的闭幕词。
Thank you, Joanna. Ladies and gentlemen, we appreciate your continued interest in Empire. If there are any unanswered questions, please contact me by phone or email. We look forward to having you join us for our first quarter fiscal 2020 conference call on September 12. Talk soon.
谢谢你，乔安娜。 女士们，先生们，我们感谢您对帝国的持续兴趣。 如果有任何未解答的问题，请通过电话或电子邮件与我联系。 我们期待着您加入我们，参加9月12日召开的2020财年第一季度电话会议。
Ladies and gentlemen, this concludes your conference call for today. We thank you for participating and we ask that you please disconnect your lines.
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