Good day and welcome to the Helen of Troy Second Quarter 2018 Earnings Call. Today’s conference is being recorded. At this time, I would like to turn the conference over to Jack Jancin, Senior Vice President Corporate Business Development. You may begin.

Thank you, operator. Good afternoon, everyone and welcome to Helen of Troy’s second quarter fiscal 2018 earnings conference call. The agenda for today’s call is as follows. I’ll begin with a brief discussion of forward-looking statements. Mr. Julien Mininberg, the Company’s CEO, will comment on the financial performance of the quarter and specific progress on our strategic initiatives. Then Mr. Brian Grass, the Company’s CFO, will review the financials in more detail and comment on the Company’s outlook for fiscal 2018. Following this, Mr. Mininberg and Mr. Grass will take questions you have for us today. This conference call may contain certain forward-looking statements that are based on management’s current expectation with respect to future events or financial performance. Generally, the words anticipates, believes, expects, and other words similar are words identifying forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties that could cause anticipated results to differ materially from actual results. This conference call may also include information that may be considered non-GAAP financial information. These non-GAAP measures are not an alternative to GAAP financial information and may be calculated differently than the non-GAAP financial information disclosed by other companies. The Company cautions listeners not to place undue reliance on forward-looking statements or non-GAAP information. Before I turn the call over to Mr. Mininberg, I would like to inform all interested parties that a copy of today’s earnings release has been posted to the Company’s website at www.hotus.com. The earnings release contains tables that reconcile non-GAAP financial measures to their corresponding GAAP-based measures. The release can be obtained by selecting the Investor Relations tab on the Company’s homepage, and then the news tab. I will now turn the conference call over to Mr. Mininberg.

Thank you, Jack, and good afternoon, everyone. Thanks for joining us on our call today. Before discussing our business, I'd like to say how proud I am of the more than 1,600 Helen of Troy people around the world who have stepped up so impressively to the tremendous challenges from the recent series of hard-hitting natural disasters. Hurricanes in the U.S. and the Caribbean, Typhoons in Asia, Earthquakes in Mexico, and Wildfires in the Western United States all big and one right after another. Our hearts go out after the people and communities impacted in the U.S. as well as in the Caribbean, Mexico and Asia. Helen of Troy was very fortunate that all of our employees and their families are safe and our facilities came through with relatively minor damage. In Asia, many of our employees acted swiftly and selflessly to take care of our employees and their families and secure our operations in Macau and Shenzhen. These unsung heroes minimized business disruption following Typhoon Hato which was a direct hit on Macau and struck at the very end of the second quarter. We deeply value and respect the way our Helen of Troy family all over the world has come together including in times of hardship and have contributed their time and resources generously to other parts and others as part of the broader relief efforts. Now moving on to our business discussion. We achieved good results in the second quarter and in the first half of the fiscal year. Our second quarter performance was highlighted by a 2.8% increase in total sales and an increased in adjusted diluted earnings per share of 26%. Sales growth was driven primarily by new product introductions, online customer growth, incremental distribution, and growth in international sales. Our Leadership Brands grew 5.9%…

Thank you, Julien. Good afternoon, everyone. We are pleased to report an increase in adjusted diluted EPS of 26% in the second quarter driven by a solid growth and consolidated sales revenue, disciplined spending, greater operating efficiency, a lower adjusted effective tax rate, and lower diluted shares outstanding. We achieve this growth even as we made incremental year-over-year investments behind our Leadership Brands through increased promotion, marketing, advertising and new product developments. Before I discuss the quarter in more detail, I would like to make some comments on the restructuring plan that we announced this afternoon. We are initiating Project Refuel in an effort to enhance the performance of the Beauty and Nutritional Supplement segments. Refuel will entail a restructuring and realignment of cost intended to right size the organizations and improve the return on investments that are chosen. We are targeting annualized pretax savings of $10 million once the plan has substantially implemented. We expect to begin restructuring and realignment activities in the third and fourth quarters of fiscal 2018 and to complete the plan within 18 months. Subject to adjustments, we may consider as we implement the plan, we expect the timing of activities to result in a high concentration of annualized savings to be realized in fiscal year 2019. Approximately 75% to 85% of the savings is expected to benefit the Beauty segment and the remaining 15% to 25% is expected to benefit the Nutritional Supplement segment. Within the Beauty segment, we expect the activities and savings to be heavily weighted towards the personal care business. The Company expects to incur pretax restructuring charges related to the plan in the range of $4 million to $6 million over the course of the implementation period. Now turning to review of the quarter, consolidated sales revenue was $378.5 million…

Thank you. [Operator Instructions] We’ll take our first question from Bob Labick with CJS Securities. Please go ahead.

Hi. This is actually Lee Jagoda for Bob. Good afternoon.

Hey, hi, Lee.

Hi, Lee.

So, starting with Housewares and looking at the roughly 300 basis point change in the growth guidance? Can you talk about how much of the revision with Hydro Flask versus OXO? And then just a follow-up on that maybe discuss some of the factors impacting the Outdoor segment in particular?

Sure. I’ll give a start and Brian may have some comments. In general within our segments we don't break out the difference between the different brands, but you can tell from OXO’s historical growth rate that it's more or less on track and yet we are seeing some weakness in the back half that we mentioned – actually for both brands we expect them to slow down just a little bit that those moderation or comments. On Hydro Flask, well, I know you're looking for a specific number on – so what is the back half and the total growth rates, now that we're in the core and [anniversaries in the basin] in one of our segments, if we don't break it out specifically as a brand. Reflecting back on the comments that we made though, despite the moderation that we are seeing in the growth of Hydro Flask, it's still growing handsomely and that's after three consecutive doubles in the prior three years. So to see some moderation up of a base that high frankly make some sense and it's been fairly widely publicized that there is some contraction in general in the category, but as measured by data sets like for sports scan, it does not capture the majority of Hydro Flasks channels and outlet and given the list that we put in international, natural foods et cetera. Hydro Flask is growing in almost all of those and some of them very high rates. So I'm sorry not to give you the exact number that you're looking for, but all that together get to the 300 basis points adjustments and even so the whole sector or segment of the Company will grow 8% to 10% for the fiscal year, even though that's down from the guidance that we originally gave back in April.

Great. And then just one more for me, shifting to Beauty. It's great that you're showing some stability for the second straight quarter, was there anything in this quarter that was extraordinary and can you give us some more detail around why we should expect to see that acceleration of decline for the back half versus the first half of the year?

Yes. It’s a great question. So extraordinary I would not say, but I would say that the product of about two years worth of very hard work almost three now by the Beauty group is continuing to show progress in bits and pieces, especially in appliances. Frankly, we're growing. We're growing in retail. We're growing in professional, and while we're declining in Personal Care, a lot of terrific work has been done in the Personal Care group to mitigate the decline as well as to improve margins even as we have to make cutbacks on the Personal Care side. And then in terms of extraordinary items that the growth in online is meaningful. It’s meaningful in the Company. It's meaningful in the Beauty segment and it’s [impacted] frankly in appliances and it's also in retail and in professional. If you take the biggest customers that we have for retail and professional and look specifically at the online growth, you'll see big numbers there and much bigger than the path and growth rates that are helpful, so that one is a bit extraordinary in a positive way. The new items are also getting significant traction year-over-year and also in particular, you can see it and looking at the online reviews for them, things like the Revlon 360 dryer, the new best-in-class straightening irons where historically Helen of Troy has not been a strong player in straightening irons and yet here we are with products that are getting excellent reviews. If you look online you'll see things like best I've ever seen. Wouldn't trade it for anything else and we will have to pride out of my hands, those kind of comments are coming in from consumers. And that was our goal – was to beat the market so to speak in…

Perfect. Thank you very much.

You bet. And thanks a lot Lee.

Thank you. And I will take our next question from Jason Gere with KeyBanc Capital Markets.

Hey, good afternoon, guys. Just a couple of questions, I guess I need to clarify something. So I know at the beginning of the year, you’re talking about the $28 million of incremental investment that was $0.90. You're talking now about this $0.40 to $0.50 of incremental. So I'm just trying to make sure I get this right, its $1.30 to $1.40 is of incremental spending this year and kind of on the SG&A side or is it $0.90 and then there's just more of a shift. Can you just first clarify that and then I'll go to my follow-up question with that?

Yes, it was originally $0.90, which if you do the math on the share doesn't equal $28 million and not because one number of pretax and one number of after tax. So the $28 million is pretax and the $0.90 is after tax and that was the original expectation. We are now lowering that down to a range of $0.40 to $0.50 of earning per share, which is equivalent to $14 million to $16 million on a pretax basis.

Okay. So to get it right it was originally $28 million of pretax and now it's only $14 million to $16 million?

Correct.

Okay. Yes…

I just what - I want to make sure you understand that incremental spend year-over-year I mean the total spend as well over 100 million in this area that's just the incremental year-over-year spend.

Absolutely, but from the beginning of the year, the incremental is supposed to be $28 million and now it's only going to be $14 million to $16 million?

Correct. Yes and importantly Jason on that one as Brian mentioned in his comments, we seen some increased efficiency from some of the incremental spending that we did in the first half and that allowed us to just spend a bit less in the first half and you seen us you beat the expectations for earnings in both of the first half quarters and this was one of the drivers along with the other ones that were mentioned on the call, better revenue, in some cases, tax benefits of this kind of thing. And the point is we're getting good bank for – we offer more with less, I think as I Brian put it. Further we've shifted some of the money from the first half to the back half and that's important that's going to support our Leadership Brands in the back half when a lot of our peak season demand falls and will be careful from a prudent to disciplined standpoint to monitor very carefully in the back half as well especially as seasonal demand for example cold and flu plays out as it depends in which market and when you spend your money even possible with some of that would spill into early fiscal 2019 for example if the cold and flu season happens to fall late. Remember that season often runs through March or April, but our fiscal year always ends at the end of February as an example of why that if it’s possible. So you see some money shifting and importantly not a $1.35, but a reduction from the $28 million lower numbers.

Yes. The wording was a little confusing, but with that point I guess what was the spend of that $28 million in the first half of the year? Did you say that and I apologize if I missed it?

No the $28 million was our original guidance for the full fiscal year.

Right. And then but what did you do in the first half of the year? I mean I know its 14 to 16?

No, we spent an incremental $6 million in the first half of the fiscal year and we shifted $3 million into the second half of the fiscal year.

Okay. That’s good. And then I guess the question is that's more on the e-commerce, do you feel that and I know you're at 15% of sales as e-commerce right now. I got to think that healthy directions is probably half of that so the rest of it you guys seem to be maybe a little bit more or less in line with other HPC companies in terms of what percent is online. Do you feel that you still need more investment in some of the e-commerce capabilities out there just as the category shifts and we've seen it with a lot of the numbers right now?

Yes. So a couple things. First, in terms of doing more we do what we feel that we need to do more, but I want to make an important clarification on Nutritional Supplements. Virtually none of the 15% includes healthy directions and that because healthy directions is primarily driven by direct mail, so direct mail we don't consider to be e-commerce even if the consumer ultimately buys off of a website when they buy from us. We do have some e-commerce related sales for example to Amazon that we do sell from healthy directions and that is growing, but it's a single-digit million dollar number and in fact mid single-digit kind of numbers, so it’s not a huge one and it's not a big driver for the 15%. In fact if you took it out completely the number would barely change the 15% for the total company. And in terms of relative to our competition at least based on what we've seen from those that disclose it. We've seen none of our competitors into the double-digits at all and most of them are in the mid or even low single-digits. So I am not sure for benchmarking ourselves correctly, but it's our assessment that we're somewhere between two and three times the average of other customers or other companies in our space with the exclusion of healthy directions are counted in that at all. And in terms of your point about getting more, we strongly concur frankly and you'd be amazed how much is happening in the company in this area. There's a bit of a digital revolution going on in the company and there's a quite a lot of shifting of our spending. In fact, one of the reasons we were able to do more with less in the first half is that we were shifting some money out of some traditional vehicles into more efficient digital one, for example Amazon eight plus pages, videos that we're able to produce at a lower cost to put on major websites of dot com players like ultra.com, amazon.com, Wal-mart.com, target.com et cetera. And these frankly are more efficient spend for us and are getting some pretty significant results. So yes, we can do more, but you'd be amazed how much we are doing and what’s the efficiency that we're getting from it that's why we're already nicely into the double-digit.

Okay. And then I guess the question I was going to ask with that and you're right my math was off today, I thought the healthy directions would have been part of the e-commerce. So yes, 50% is definitely higher.

Let's be clear, it is included in Healthy Directions, it’s a couple million no more.

Okay. That's fair. But I guess the question is that with that incremental spending that you're doing this year 14 million or 16 million. I know the number came down, but with the sales outlook still very good obviously for HPC, but a little bit more modest. Why not take some of that incremental spending if you're getting some good early results and find other things that you could get a good ROI to keep the sales momentum going especially in some of the businesses like Housewares and Home & Health. I'm just kind of curious why not actually even spend more just to get a better return for the sales with the revised guidance?

It's a great question. We are doing that and we are taking a look at opportunistically, which ones we can make that kind of that. We're also very sensitive to the return that we're going to get on that. So while we – it is more efficient, it sometimes doesn't pay to over saturate a vehicle and you get kind of that [indiscernible] past the point of diminishing returns. There are times and you've actually seen us do that in the past when we will spot one of those opportunities and we'll go from it – go for it, I bet you remember last year in Q4, we may have surprised people by saying, hey we’re going to put another 5 million or so into the market even though it won't deliver a result in fiscal 2017, because we saw these kinds of opportunities in PUR and in OXO and we spent into them in Q4 helping to set ourselves up for this fiscal year. And we knew that we were going to put more emphasis in the Leadership Brand. Those are two of our Leadership Brands, OXO and PUR and they were beautiful digital opportunities. We had very attractive ROIs we went for it. So we may get do that towards the end of the fiscal year and yet here we are importantly in reaffirming our guidance, make sure that we need it and secondly careful that how we spend the money, so we don't over saturate and get ahead of ourselves.

Okay. I'll pass on to the next caller. Thank you.

Thanks, Jason.

And we will now take our next question from Chris Carey with Bank of America Merrill Lynch. Please go ahead.

Hi, everyone. Thanks for the question. So I just wanted to follow-up on that and then I will follow-up. I know we're a bit away from fiscal 2019 and obviously you haven't started planning there. So you’re focus on the current fiscal year and you should be, but if you did shift some of that spending into fiscal 2019 as you said, can you talked to what kind of spending has shifted? For example, I know you have some innovation coming. So has spending behind that innovation shifted into fiscal 2019 or was it demand building initiatives and I guess how do you think that sets you up over the next 12 months here? And really what I'm getting at just the confidence level and sustaining the sales given we've been hearing from a number of companies about it is tougher out there and just kind of like sustaining the momentum without some of the brands part behind it? So thanks for that.

Yes, terrific. And first of all Chris welcome first time on one of these calls with us and we're very pleased to have [indiscernible] joined the coverage group. So thank you and welcome.

Yes, thanks.

In the case of your question, when we – I want to break it up between the brand support and the innovation of the products support because there are two different timing cycles. So on product support in general what we invest in one fiscal year launches either at the end of that year or in the year after. There are some long-term R&D projects that are multi-years, especially in healthcare where it's clinical trials or some native R&D work that requires proving out major new technologies and sensors this kind of thing or software these things take longer. So when we see those kinds of projects that have attractive net present value, which is one of the measures that we use a strong ability to differentiate one of our Leadership Brands or carve out a major competitive position, open a new category. We're not shy to spend on those and several of those of those going on in the Company today that we think are very attractive on some of the biggest brands that we have. So those kinds of things will double down on as the projects demand it or as the opportunity justify from a financial and marketplace standpoint and they almost never launch in the year that we do. So we will feed those as they need it and sometimes opportunistically when we can put more money against them to move them faster. In the case of the brand support it depends a bit on what activity is necessary, I’ll tell PUR is as an example since it’s one I raise and also OXO’s since I raise that one as well and they were important and different. In the case of PUR, PUR was benefiting from a new advertising campaign that we launched in October of…

Got it. Thank you for that. Just one follow-up there, and then I have another question. But did you say relative to the $0.90, what was taken out of the $0.90 versus just what was shifted into next year? Is that makes sense?

Yes, what you mean taken out…?

I suppose how much of the $0.90 is going to continue just not this year?

Yes, it’s hard to say. I would say it’s probably somewhere between $3 million and $5 million that we could see shifting into fiscal year 2019.

Okay.

And then I tried to bucket the other components of what we're doing. We're getting more efficient with our spend and then some of it is just a savings, which I think you're trying to refer to.

Yes, okay. Got it. And then – so as mentioned just the outlook for Housewares came down a little bit and then you did mention kind of brick and mortar and outdoor and the tough comps, which we've known about, but when you think about some of the dynamics there are you seeing kind of like pricing pressure? Is it like a competitive pressure and we've seen those across the entire space, a lot of companies have been talking about those. Is it a full traffic issue? So I wonder if you could just provide some context around the sorts of dynamics that you're seeing relative to your expectations a few months ago.

Yes, absolutely and as we mentioned in the call, we are seeing some moderation in demand, in the water bottles space, even as we broaden into newspapers like the soft coolers that were mentioned as a new item, that’s new in this public call, first time we talk about it that we are winning awards et cetera and that's new as we broaden our Hydro Flask brand. In water bottles or the hydration space, while we are seeing some moderation, we're still seeing growth. And if you measure all that or the comp that Lee was asking as well meaning how much of it is Hydro Flask, how much is OXO, and how does it weigh in rather than break it up specifically. The answer is we did have to take down the total guidance for the year. So that’s the degree of the moderation across Housewares in total for the two brands. And in terms of the competitive activities, plenty of it, you yourself have called that out, and you're correct. There's a lot of promotional activity. There is some price discounting and there's a fair amount of inventory that is now selling through to consumers, but at a slower rate against that moderated demand after the period of time when the trade was buying all they could in a scarcity environment, where there wasn't enough supply to satisfy all the demand. As that now call it rebalances, there is some moderation in our sales, but nonetheless growth all through that period. And we find that impressive after the three years of tripling that the brand can not only continue to grow, but frankly also importantly continue to pick up share and picking up share in a market that is moderating means that you're not only winning, but you're winning disproportionately to your competitors and that's critical. And in the point about the channels, for example referring to the sports scan data, that that 25% or so. There's a lot of channels that we mentioned on the call where Hydro Flask is growing, but are not in those databases and it's important for the market to understand that Hydro Flask growth is not just coming from those sports retailers. And as you look at some of those sport retailers, it's not news that there's been a number of bankruptcies in that space in the last year. Some of that demand might shift to other retailers, some of it might shift online, so I guess we get some of it back in that regard. And that said there's just fewer doors to ship to, there's fewer stores to be on the shelf for from a total inventory and sales standpoint and it competitors are competing for those spaces, so only the big guys are going to have the muscle to survive in that environment and we're clearly one of them otherwise we wouldn't be picking up share and wouldn't be growing.

Yes, okay. Thanks very much for that.

You bet Chris.

Yes. Thanks. Again welcome.

Thank you. And we’ll now take our next question from Frank Camma with Sidoti.

Good afternoon, guys.

Hey Frank.

Hey, could you just talk – you called out in the press release and on the call the gross margin, which looks pretty good. But can you just give us sort of some color on the second half here, I mean, there is some puts and takes traditionally you have worse product mix in the second half as the seasonality or may be the healthcare grows. Can you talk about that? And what you're thinking there given like the more emphasis on the Leadership Brands, which have a higher margin?

Hi, Frank. Let me just make sure I understand I think before we answer here. Are you saying that while the gross margin which – I hear you say looks pretty good, I won't judge you number is what it is and it did go up a little bit by the way point one during the quarter. You're saying that the gross margin is going to experience some pressure in the back half or how…

Yes. I'm just to trying to understand like the seasonality factor in the second half given that some of those products traditionally, don't you have a little bit of pressure there like from a gross margin standpoint.

Yes, now I understand. Okay. So let's look broadly and then by segment, broadly a number of the Leadership Brand, these are the biggest ones in the company have their biggest season in the back half. To take for example, Vicks humidifiers, Braun thermometers as two examples in the cold and flu area that are higher margin products for us that do the bulk of their sales in the back half, so that's kind of put that in the good guy column. Similarly, Hydro Flask which have the higher gross margin for us and it is a growth property for us although at a lower rate given the conversation that we just had with Chris and on the subject of the hydration category. That is still growing nicely, in fact, and yet have seasonality and the calendar Q4 with the holiday period is the bigger of the four quarters for Hydro Flask. So there are also good guys, who will mix sweeteners. On the bad guy column, looking at the Leadership Brands OXO and other parts of the Leadership Brand portfolio while they have a lot of strength we'll have a little bit of moderation in the second half and that will balance the other way and in total you'll get a gross margin outcome for the back half. I know Brian has an opinion about the relative weights of the first half versus back half of the gross margin.

Yes, I would say that the total weight of Housewares in the back half maybe slightly lower in the back half than originally expected which would cause the margins to be – the gross profit margin to be down as well as the nutritional – the change in the outlook for Nutritional Supplements they have a very high gross profit margins, so that would also weigh on the gross profit margin in the second half. And then finally I would say that we are starting to see a cost of good sold pressure from a lot of our manufacturing sources due to you both currency impact and commodity impact. Of course, we're trying to offset that as best as we can, but we are seeing pressure there.

What is that biggest on that supply-chain issue that you just mentioned? What are some of the biggest commodity pressures there? I understand FX, but what are some of the biggest drivers?

All the usual suspects for example with oil prices well they're up and down, but up a bit versus year ago the oil related ones. I think you're resins, plastics in the case of copper, you see copper on the right that's a big one we make a lot of stuff with motors in it think fans, heaters, air purifiers, hairdryer things like that that have copper windings in motors they use copper wire and copper is on the rise. And then it gets compounded by foreign exchange, so the Chinese yuan or the RMB has strengthened versus the U.S. dollar, and that makes it hard to negotiate away some of those commodity based increases. And even with our brands which tend to be market leaders in that Leadership Brand portfolio will have more scale than most and maybe even a little more pricing power in the marketplace than most. It's hard to negotiate all that away either with the suppliers or with our customers given all the pressures on the subject to price or promotional spending at retail. And then of course we'll work hard on the subject of offsetting as much of it as possible on productivity improvements. And you often hear me talk about the power of shared services attacking waste and squeezing out extra cost by leveraging our scale et cetera. All those initiatives – several examples of which we gave on the call today that are frankly worth millions after often helping us beat the expectations for earnings in the marketplace. These things are being used to try to offset that. That said, there's some bad guys out there, for example that the truck monitoring devices that are being mandated from a regulatory standpoint, talking about driver. I think there are electronic logging. These types of things has nothing to do with us. This is across the entire industry. These things are being implemented and it just creates cost pressures, fewer drivers, fewer hours driven, and this kind of thing and these are the kinds of things that can drive up our cost of goods or our transportation costs. So it's so important to us to have those on huge corporate initiatives, on the subject of productivity improvements. It's important to us to find ways to reduce our cost, increase our efficiencies or things like the refuel restructuring project that we announced today and importantly to work with our suppliers and use the power of our brands to get our cost of goods, where it should be in our pricing where it should be.

Last question from me. As far as is that 100% of AR bounce prepositions that you raised down to zero?

Yes, that’s correct and also accounted for estimated liabilities that could occur through the bankruptcy.

Okay. Great, thanks guys.

You bet.

Thank you, Frank.

Thank you. We’ll now take our final question from Steven Marotta with C.L. King & Associates. Please go ahead.

Good evening everybody. Just have a one quick question. Most of my questions were asked and answered. Inventory was up relatively in line with the sales growth. Are there any issues underlying from managed inventory standpoint and just as a follow-up to that as sales growth is expected to moderate a bit in the second half? Are there inventory plans in line for that moderation or can we see inventory grow maybe a little bit quicker than sales in the back half? Thanks.

Good question. We have no issues or concerns with our inventory. I would say that we are slightly higher than we would like to be and that's just because we have initiative within the Company, where we're trying to improve turns throughout all our businesses and we are slightly higher as you said in line with sales. I appreciate that, but I would say that from our target, we are higher than we want to be, but we’ll have no concerns about the quality of inventory either now or expect in the future even with slightly lower expected sales.

And remember our sales are a bit back half weighted, so it's natural at this point. It depends on seasonality. If there's a big cold and flu season, inventory comes down fast, and faster than if there is a slower one. Brian mentioned on the call that we took on some inventory in our warehouses to manage seasonal demand. It's often true that – or historically true that our biggest retailer will take some of that inventory on themselves earlier in the year through direct import orders out of our Asia factory base and that inventory will be in their shop rather than ours. It just happens to be that this year more of it is in our shop and they'll order on a – to demand basis or order to demand and it's very important for us not to be out of stock, imagine for a moment your family with a sick child need a humidifier or a thermometer as an example. You're probably not going to wait two days even for it to come from Amazon Prime kind of situation. You might and people do that by the way. We're very happy to support it, on the one hand. On the other hand, you need it now and now means like go out and get one and that's important to – very important not to be out of stock. And on a corner drugstore, there's so little holding – shelf holding space in those places that we want to be nimble. So we will take on a little bit more inventory in anticipation of that demand. And I also want to say Steve, welcome as well to you. We're thrilled to have C.L. King and you also join the Helen of Troy analyst group and between you and BAML and our other long time and very capable analysts were thrilled to see more coverage for Helen of Troy. Helen of Troy is generally under followed. We continue to believe there's a lot of value and upside. Here we're very pleased that most of you have seen that too and we're eager to help your client base learn about it and frankly deliver results for them. So that we can earn positive progress in shareholders, so thank you and welcome.

It’s very kind. Thank you. End of Q&A

Thank you. And that does conclude the question-and-answer session for today's conference. I'd like to turn the conference back over to Mr. Mininberg for closing remarks.

Great, well thanks. We're thrilled to report to you our Q2 results and here we are at the halfway point for the year. We're very pleased with where we are. Plenty of challenges ahead, especially in this environment, but I hope that we're demonstrating that we find ways to do well even in difficult environments and we're proud of that on the one hand that we’re quite humble about all of the pressures that are out there and we work hard everyday to deliver value. So we look forward to speaking to many of you in the coming weeks and also updating you on our progress when we report our results next in early January. So thank you very much and we’ll say, good night.

Thank you. That does conclude today's conference. Thank you all for your participation. You may now disconnect.