Good day, ladies and gentlemen, and welcome to the Helen of Troy Limited Fourth Quarter 2019 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 of Corporate Business Development. You may begin.

Thank you, operator. Good morning, everyone, and welcome to Helen of Troy's fourth quarter and fiscal 2019 year earnings conference call. The agenda for the call this morning 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 accomplishments of the year and outline areas of focus for fiscal 2020. Then Mr. Brian Grass, the company's CFO, will review the financials in more detail and comment on the company's outlook for fiscal 2020. 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 defer 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'd like to inform all interested parties that a copy of today's earnings release has been posted to the Investor Relations section of the company's website at www.helenoftroy.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.

Thanks, Jack, and good morning, everyone. Thanks for joining us today. Welcome to our call. My comments today will focus on three areas. First, I will discuss our fourth quarter and full year results. Then I'll share the progress on Helen of Troy’s multi-year transformation strategy as today's release marks the conclusion of Phase 1, which began five years ago in fiscal 2015. Finally, I will provide a few thoughts on Phase 2 of Helen of Troy’s transformation in advance of our upcoming Investor Day on May 21. Brian will then share a deeper view into our financials including our outlook for fiscal 2020. Following that, we'll open up the lines for Q&A. The fourth quarter finished well ahead of expectations. All told, core sales were flat against a particularly difficult comparison in which sales grew 11.3% in the same period last year, a tribute to the strength of our diversified portfolio. Online sales led the way up approximately 36% year-over-year outstanding. We are pleased to report Beauty net sales exceeded our expectations driven by exceptionally strong hair appliance growth. Housewares also overdelivered, up 7.8% climbing over its high year-ago base. This momentum more than offsets the lower sales we expected in our Health & Home segment which faced a tough comparison to last year's, especially robust cough, cold and flu season. Adjusted operating margin improved by 30 basis points and adjusted diluted EPS increased 7.7% even as we continue to make incremental investment behind our Leadership Brands and felt the impact of tariff increases and higher transportation costs. Speaking of tariffs, the pricing matters discussed during our last call are now largely resolved. Brian will speak to this during his remarks. This quarter caps great full year results. Net sales for the full fiscal two-year – for the full…

Thank you, Julien. Good morning, everyone. Before discussing the quarter in more detail, I'd like to start with a few broad points. First, my comments today will be regarding our results from continuing operations for the fourth quarter and full fiscal year 2019 compared to the same period last year, unless otherwise indicated. Second, just a reminder that first quarter of fiscal 2019, we adopted the new revenue recognition accounting standard. As a result, we have reclassified certain expenses from SG&A to reduction of net sales revenue. Corresponding amounts in the prior periods have been reclassified to conform with the current period presentation so that both periods are comparable. Please see the table and footnotes in the press release for further information. Finally, a few comments on tariffs. As highlighted on the third quarter call, the bulk of our pricing actions did not become effective until the end of fiscal 2019 or early fiscal 2020 due to the negotiation in notice periods involved and taking pricing actions with customers. As such, in line with our stated expectations, we absorbed an adverse impact to cost of goods sold in the fourth quarter. In total, the net unmitigated tariff impact that we absorbed during fiscal 2019 was approximately $4 million. We are pleased to report that we have now largely completed pricing action and other mitigation actions with our customers and do not expect any meaningful adverse growth profit dollar impact from tariffs going forward, assuming the status quo remains in effect. Turning to review of the quarter. We achieved strong results with adjusted diluted EPS above our expectations, largely due to stronger-than-expected net sales in Housewares and Beauty as well as overall favorability in SG&A. During the fourth quarter of fiscal 2019, we aligned our Health & Home spending with cough/cold/flu…

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

Good morning. Congratulations on a nice fiscal 2019 and a nice outlook for fiscal 2020 and beyond.

Thanks Bob. Appreciate it. Nice to talk to you. We're very proud of the results.

Yes, no, good stuff. I wanted to start with Personal Care if you can. If you can't, we can skip the question, but if you could give us any sense of kind of process time, your expectations or maybe even like rough sales and margin level, any kind of color around the potential process going on?

Yes, Bob. We're pretty limited on that ability to talk to this one because we're in the exploratory process. I'll turn it over Jack, if he can give any color, but we won't be able to give the kind of detail I know you're asking about.

Yes, exactly, what Julian said, we're in the middle of the process. So we'll have more to say at some point in time in the future about that process. I think from a sales standpoint, we've shared in the past, in our presentation; it's roughly of the Beauty segment and that’s 25% to 30% range. And beyond that we generally don't disclose much more than that. Although we have told you that generally the margins on the business are higher than the elementary average on that particular piece of business.

Got it. Okay. Perfect. I appreciate the color that you can give. Sticking with the Beauty segment; obviously, really strong strength in the appliances last couple of years, but in the quarter in particular. Can you talk about – was there like one kind of event in the quarter that led to the strength because obviously you're still looking for a decline in overall Beauty next year? Was this a sell-in, was this a new product or a little more color and characterize the appliances’ strength and outlook, please?

Yes, I can speak to both parts of it, the appliances and also the year-over-year in the forward looking outlook section. So in the appliances, since we don't break out the sub segments of each division, the appliances, I think have gotten a bit of a bad rep over the last couple of years because the turnaround efforts have been substantial. We've talked about them on many of our calls, but nonetheless at a macro level, what folks see is that the Beauty has been in decline. So, now that we're exploring the potential sale for Personal Care and appliances have put a second consecutive year of growth on the board, I think it's time to shine the light. So we did that and frankly, we expect it to continue in fiscal 2020. So if you look at what's driving it, there's been some pretty fundamental work done. You've been with us a long time, so you probably remember me speaking about a major change and step up in innovation and rebranding in Beauty three or four years ago. That took a while to get into the marketplace. We've had some hits and also a few misses. And over time, we've gotten better and better on the marketing side. We put much more money into it. And over the last two years under the leadership of our new President, things have really stepped up and the acceleration is now showing beautifully. Specifically in Revlon, we have some new products that now combine with a pretty phenomenal digital marketing campaign. The products and sales are just winners, and the blogosphere and social media and other earned media attention has grown explosively. Third-party data shows that our online share has just been growing like a weed over those two years and especially…

But Bob, let me just add that so to directly maybe try to talk about the year-over-year comparison, some of it's coming from Personal Care and the trend that, that we see in that business, and then some of it's coming from the pipeline fill-in related to Hot Tools Signature Series. So there is pipeline fill-in related to that product line that we're not anticipating that the lump of – in fiscal 2020. Those are the two primary components of the year-over-year.

Got it. Okay. Thanks. And then one last one and I'll hop back in queue. Just in terms of – you'll probably expand upon this next month or maybe if you can tease us a little bit with the opportunities for international growth. You've talked about it a bit. Can you talk maybe what you have – you need to do to change? And what is it for all of your Leadership Brands? Are there – are you going to start focusing on individual brands? Or how do you intend to what I think you have been saying is accelerate international growth?

Yes. So it’s a great question. I'll say a little here, we'll have more to say in New York when we do our Investor Day on the 21st of May, and so a little bit here. If you look at Phase 1 of the transformation and, frankly, the history of Helen of Troy, Helen of Troy is not focused as extensively on its international business as it is domestically. We have a nice footprint and Health & Home is our biggest international play, and we have been expanding in the other business units, but not with force. We focused in other areas and that's all the stuff you've heard us talk for the last five years in Phase 1. The work that was done to create the shared services platform and now, the bigger, more unified operating company makes it possible to really double down in places like Europe and Asia, where we have seen growth and the growth has been impressive and the profitability improvement is also and that said, it's coming more in Health & Home in Phase 1 than from the other business units. With the unification at the leadership team level, the cultural stuff that you often hear me talk about and the shared services capability, it's now possible to reorganize and bring a multi-business unit effort across the major geographies outside of the U.S. and that's where that double-down idea comes from. And if you really look at the specifics, the products, the categories, the ability to use the online channel, which has gotten much sharper at Helen of Troy in the last two years and then the underlying compensation system in other unifiers that are in the company, it's just a huge opportunity. So we're ready now. I think if we chosen it, in Phase 1, we wouldn't have been able to eat all that was on the plate and do that too. You just heard in the results that we gave that, that we're proud of what we did do in Phase 1, and we're ready now to add this component. There are two very big projects, active in the company; one in Asia, one in Europe that are designed to walk the talk on what I just said, and over the next couple of years, we'll play those out across the business units, across the regions, and we think we have some pretty good organic growth possibilities before potential for acquisition.

Great. Thanks very much.

You bet, Bob.

We’ll take our next question from Frank Camma with Sidoti.

Good morning, guys.

Hi, Frank.

Thanks for taking the question. You gave some comments around the tariffs and it sounds like obviously it's definitely not as big of a concern as sort of when we initially flagged it. Can you talk a little more, and I think your comments mostly were around the cost side and the pricing, but can you talk specifically about whether you think it will or has affected consumer demand as far as that pricing increase?

Good. Yes. Thanks for the question and also your assessment, which we concur with which is I believe that while tariffs are important, changes cost of goods, changes margin structures, it changes our approach to our sourcing at times, and it can change pricing in the marketplace. I believe that in the last 90 days, 180 days, the market is greatly overvalued. Those concerns, we said in the last call that we would take pricing, we have. It's largely resolved at this point, even the small bumps that we have. It's very common by the way in price increases that there is some lumpiness in implementation. In fact, I've been doing this for more than 30 years and I've done a lot of pricing in my days and many other people at Helen of Troy and I don't think it's a stress to say that there's always a few bumps as you put pricing into the marketplace, especially across a broad portfolio, lots of customers, lots of categories and lots of channels. I think this one for us was especially well done, and we like where we are. In terms of the impact on consumer shelf prices, which I think is what you're asking about, it's a little too soon to know what impact it will have. We are encouraged by seeing other companies who have also been in the same position to take pricing. We're very pleased with the trade's response to try to contain the shelf prices increases as best as possible through our efficiencies, through their efficiencies, et cetera. And the consumers deserve that. And in terms of the impact it will have, we're not seeing a significant impact today, but it also may still be a little early as this stuff rolls in due to the fact that the trade may still own a little bit of inventory at the old prices and is always that who's going to move first and how much back and forth as that same lumpiness then sorts it itself out on the shelf.

Got it. And moving back to Beauty, and you spent some time on this, but obviously that was one big experience. In just sort of absolute dollar amount the $10 million increase, was there any timing issues there or pull forward from Q1 or things that we should know about like sell-in positively impacted the quarter there, it might not occur year-over-year that we should watch out for?

Yes. I wouldn't be too concerned to Bob's question earlier. It's true that when you launch something new, and it's designed to make an impact then year-over-year you have to anniversary it. So there is that mathematical truth. That said, it also gets new distribution, starts to sell through, so you get replenishment and since the early data is strong, we are encouraged. It's a little soon to know how big those will be and how much extra distribution will get, how fast the replenishment orders will be so to be able to estimate the ability to anniversary the sell-in and grow at X rate, it's hard to give a number. I think that's what you're looking for maybe for modeling purposes.

Yes.

I wouldn't worry about it much, I guess, is the point. And the reason I say it is that the appliances are expected to grow in the year. So if that's true, then no matter what the number is there'll just be more of it, by the time the year is finished. I think the real question is it going to be enough to offset the trend that we're seeing in Personal Care, which is why you see a net small low single-digit downward guidance for the year. Maybe for perspective, we went into fiscal 2019 similarly with a small downward guidance and some other good initiatives in appliances just did well during the year, and we ended up with that plus 0.2 in the core for Beauty that we just reported. I'm not saying that we're going to beat the guidance we just gave, I'm not saying it at all. I'm simply saying that we're working very hard to create the momentum you heard all the drivers of it. That's why I just wouldn't worry too much. In terms of the ability to anniversary, I'm very confident, and we like the traction that it's getting, so that's why I'm telling you the answer this way.

Okay. And last question just on Housewares and this is not something uncommon, but like your fourth quarter tends to be your lowest, adjusted operating marginally for the last two years, I guess. Why would that be if you're selling, I would have thought you do a lot of – don't you do the club stuff sort of in the first quarter? I'm trying to figure out like why that would tend to be a lower adjusted operating income.

I will say a little and then leave it to Brian. Club moves around, I wouldn't have this idea that club is a Q1 thing. It's true that that happened in fiscal 2019, and that's why Brian went out of his way in his comments about the anniversary for Q1 because it's true that you're right that there was a bunch of club. The channel that we love by the way, if there is certain kinds of shoppers, certain kinds of items that go into club and just do well, big sets, bonus packs, those kind of things that are not necessary the right skews for other channels. And it just so happened there was a big slug event early in fiscal 2019. That's why that compare comment that Brian made. But if you look at club broadly, it can be in any quarter. And in terms of the margin specifics quarter by quarter, Brian, I don't know if you have some color there.

I think – and again, there's no real pattern, I don't think, but it has more to do with our advertising spend in the specific programs and events and roll outs and launches that occur in the segments and what we do to support those. And I would say that the lumpiness or the pattern is probably even less – something less that you would want to try and predict because of digital marketing and our ability to act very quickly and take advantage of opportunities and spend behind strengths and quickly adapt. So, all this is part of the changing environment that we're in and we're trying very hard to adapt in that environment and be very successful. That will mean that we will be very quick and opportunistic with our spending and I don't think you can always point to a certain pattern with that. So, that – I know it's a long answer, but I would say it has a lot to do with the spending, and we took advantage of opportunities in the fourth quarter that we like, and we're trying to get a high return on all of our spend. And sometimes that'll mean it will be in one period one year and a different period the next.

And Frank, last thing I'd say about this is, please remember that in the fourth quarter of fiscal 2018, we had some items that we were putting through closed our channels in Housewares. So it moves things around even more. We're not trying to confuse you and say, well, therefore, you can never predict it. It's frankly the reason why we give annual guidance because things do move around, and then take the seasonality, which does not especially affect Housewares the way it can in Health & Home. But it makes it almost impossible task to get down to the $0.01 by quarter or down to $1 million by – on the EPS side. We're down to $1 million on the revenue. And as Brian said in his comments, we've become very dynamic that the environment is digital, things move fast, consumers make their choices. Our product launches, others, and we would rather be able to respond as nimbly and quickly as we can to the marketplace and do what we think is right for the year, do what we think is right for the strategy and the long-term even if it pushes things around within the quarters.

Got it. Thanks guys.

You bet. Thanks, Frank. Good questions.

We'll take our next question from Chris Carey, Bank of America.

Hey, Chris.

Good morning. How are you?

Yeah, good morning. Thanks. Hope you are well.

Yes, I'm doing well. Thanks. So, just on Housewares, the momentum continues here. So what's the distribution runway on Hydro Flask? So you talked about East Coast, right. But if you just look at the country or indeed the world, how far can this product really go as far as getting into new channels? And just on top of that, when you think about household penetration, right, so how many SKUs are households buying today and where do you think that can go over time?

Yes. Love it. These are great questions. So, let's start with the distribution. You probably – I think you know well the history of Hydro Flask. It started out actually in Hawaii, believe it or not, about a decade ago, spread quickly to the West Coast, and it's been making its way East over recent years. Our efforts in the Midwest and Southwest went far during the last couple of years and we've been working on the East. As the brand got a lot of traction, reception from the trade became big and between our push to build the East and a couple of really big customers who themselves leaned in and said, we prefer and want this product across our chains, across the country and including in the East, and things moved very quickly over the last year. We're not finished yet. So, to your point about runway, we believe that there is more. And you can see it on the shelf that there's more items on the shelf, there's more variety. We're bringing new products, which also puts new items on the shelf, and we're getting the support from some big retailers who want it that way. So, this is helping as well. And you can see it in the consumption too. I happen to spend a lot of time on the East Coast. I've got kids of college age on the subway in cities like New York or Boston something like this, there's Hydro Flask popping out of every backpack of young people and I can just tell you two or three years ago, it just wasn't the case. So it's just well loved as was said there, and you can see it in all the outdoor lifestyle kind of behaviors where you go to hike bike…

And you mentioned tangential categories, how is the cooler launch been going?

Yes, it's way too early to know. We just launched – we just launched the spring 2019 collection and there are some cool new cooler products. There's also the new cooler cup, which is very – it's a product that acts as a koozie as well as itself a cup, and its versatility just won that award that we mentioned in the prepared remarks. And so, I'd say, a good start. We are up from basically zero in coolers, we haven't done that much, just the tote and the backpack last year, and we're now bringing new versions and new variety. So I will see how they turn out, Chris, but the idea is to get beyond the bottle, and that's only upside for Hydro Flask.

Got it. And then, just on the M&A front, you continue to talk about used capital and suggest that that will continue to be something that you're going to be focusing on in the coming fiscal year. Is there a reason why you haven't executed the deal yet? Is it a matter of fit you just really want to make sure that you're doing the right thing and if not, there is obviously no reason for that capital to work?

Yes, it's an important area, and it was true in Phase 1, it will be true in Phase 2. The only difference between Phase 2 versus Phase 1 is, we will be even more selective in Phase 2 to make sure that we're bringing the right stuff into Helen of Troy. If there is an acute little tuck-in, that's just right for us or smaller upstart type of business where we think their skills plus our machine is better together scenario, we might buy some smaller things. But on the medium or larger ones, it's not about being so picky that we don't buy or there's something wrong in our process. Frankly we've looked at many. Countless, frankly, in the last couple of years. So you say, well, that's three years of saying no, you must be saying no a lot. But there was hair on the deals that we got far on. And I think you and our shareholders would prefer that we don't buy something that looks good, uses the balance sheet, but nonetheless creates nightmares for us from an ownership standpoint and we end up in a difficult situation where there's impairments, inability to grow, drags on our operations and in our results. And that's not a responsible stewardship of capital. Sometimes we just see the marketplace as well. Take our stock to the cleaners, and it demonstrates to us an opportunity to put the capital to work by eating our own cooking. So we've done that from time to time as well. And then, in terms of prospects, frankly there's couple of good ones right now. And we'll see where they go, but we're going to be very careful on the diligence front. And there's some stuff out there that looks awfully shiny right until you open the hood. And then you get around there in a few weeks that we don't think are right or that the buyer might not acknowledge over there.

Makes sense. Thank you.

Yes. We've been focused on M&A, and people might be frustrated and say, good, then buy something, but something is not a good answer frankly, buy something exceptional, that's what people should be asking us to do.

We will take our next question from Linda Bolton Weiser with D.A. Davidson. Please go ahead.

Hi, Linda.

Hi. So in terms of the potential sale of Personal Care, I mean there's undoubtedly going to be some earnings dilution related to that. Are you thinking you can absorb that into your guidance? Are you going to just kind of reduce guidance later? And then, related to that, there'll be a little bit of unabsorbed overhead related to setting that business out. Do you intend to take some sort of special cost reduction actions to mitigate that? Yeah, that's my first question.

Hey, Linda, it's Brian. Yes, you're correct that there would be an impact from Personal Care upon divestiture and we would adjust our guidance accordingly if and when that were to occur. I think you've seen us be active in terms of share repurchases, which I would say filled in some of the EPS impact that might occur in the future. And we've been taking significant cost reduction steps in Beauty, as you've seen. So, I don't want to say we did it in advance, because we didn't know definitively that we would be in a divestiture process. But I think we've taken a lot of steps already in terms of share repurchases and cost reduction in an effort to offset any EPS impact. There will be some stranded overhead that we simply won't be able to get out, but I would say it's not hugely meaningful at – especially at a total company level, the amount that will end up absorbing. And we believe even if there is slight EPS dilution in the aggregates that the benefits to our growth rates and our ability to expand margins in the future will improve dramatically. So, we believe that it's worth it to consider the step because even though in the absolute there might be slight EPS decretion or ability to grow and to continue expand margins off of the continuing op base will be much greater.

Okay. And then, can I just ask about the guidance for the next fiscal year in terms of the top line growth? I mean, Housewares, I believe you guided to 4% to 6% growth, that's – I mean that's pretty strong considering that you had – I think you had some shelf space gains in OXO in the past fiscal year and the Hydro Flask distribution gains. I'm having a hard time just getting really comfortable with feeling that you can do that type of growth on top of such good growth that we've just seen, given that maybe distribution gains have happened a lot already in both businesses. And how would the Hydro Flask and OXO growth be like similar for the two businesses or would one be expected to grow faster in FY 2020? Thanks.

Yes. Good question, Linda. So, we just gave the guidance, we do believe in it, and we think the 4% to 6% is correct. We are proud to be able to do what it just said in terms of a challenge, which is, we've been growing strongly. We just put a terrific year on the books for Housewares as well as each of the two brands in it, and to grow over that is no mean feat. That said, we just did it in Q4, so it's not only possible, but it's happening. So we like the momentum. If you look at the building blocks in our forecast for the year, they are strong, and we've listed many of them in the prepared remarks. The digital investment is significant, the distribution and new product stuff that was talked about in response to Chris's question about Hydro Flask is substantial, and OXO is not only an absolute phenomenal, new product development machine, but that marketing pillar that we've been building is substantive in OXO and it is increasingly getting spending behind it as it proves its ROI and demonstrates that it can win. It started out with things like content and video and eight-plus pages on Amazon. This company has gone well beyond this now, and the engine has got room to add a few more cylinders. If you look at OXO distribution, unlike Hydro Flask, OXO is widely distributed. So there's going to be fewer distribution gains in the United States. That said, outside of the United States, that expansion that we've been touching on for a Phase 2, and Bob was asking about earlier in the call is meaningful. And we are putting effort into international not just for Hydro Flask but also for OXO. OXO has an international business, it is growing nicely, in fact it's growing faster than in the U.S., but we'd like to make it bigger and still growing at a good rate, so love smaller numbers but not small. And in terms of both brands, Hydro Flask will grow faster than OXO, and yet OXO has a significant track record of growing somewhere between the mid and the high single digit. So, it's no slouch and yet Hydro Flask has been growing faster, and we expect that to continue for fiscal 2020. Although that's enough to put the 4% to 6% on top of the hell of a year in fiscal 2019, and frankly last couple of years have also been good for those brands. So we like the momentum.

Thank you. That's helpful. And then finally, we've heard about this really rainy weather and flooding in many parts of the country. Does that have any impact at all on your humidifier sales or are yours more health-related rather than environment-related? Thanks.

Yes, Glen's question came up because it's an opportunity to help in a couple of ways. One specifically and then to your question more broadly. The specific to your question is we don't think that rainy weather will sell more humidifiers. Sometimes the humidifiers become interesting, but frankly it's not a big business for us, and I think you might have mentioned that in one of your reports about the dehums. Humidifiers for us are seasonal, but more related to cold and flu. Vicks has an outright leadership position by a large margin in pharmacy where you're talking about things like cough, cold, congestion, all that kind of stuff, and that's where it's seasonally exposed. The Honeywell humidifiers and, to some extent, the Vicks ones tend to be more for the home environment, so not when you're sick. And those tend to be driven more by dry skin, dry weather, plants furniture to comfort in your breathing passages and people get bloody noses just from dry heat, this kind of thing, and that sells a lot of humidifiers. Relative humidity levels between 40% and 60% are just kind of good for the human life form and a lot of houses are not at that humidity level. And so, the humidifier sell in that regard. On the broader point, this idea that Health & Home is somehow driven by huge events, whether it's tornado, flood, fire, cold flu, famine, pestilence, all this kind of stuff. It's really just a good solid business that's response to the basic needs of people in each of our categories. And then, when there is some sort of events like a forest fire that comes close to a large populated area with the smoke blows into the major cities where we are seeing in places like China, this market finds its way everywhere. That does tend to help. If you see super cold weather, people get cold and they buy things like space heaters and we are a big player in space heaters. So those things do help. But the basic human needs is what drives those categories. And every now and then something spikes, whether it's cold flu or polar vortex or like the big whether you're talking about in the Southeast right now, hales or something like this. And people pay attention, but it has to extend itself and prolong itself for it to become a big, big driver of the seasonality. Other than that, it's just kind of pokes along and rides with the seasons, and we try to kick some butt in those categories with better marketing, better products, better branding.

Okay, Julien. Thanks a lot.

Yes, sure. Appreciate it, Linda. Thank you.

And we'll take our final question from Steve Marotta with CL King & Associates.

Hey, Steve.

Good morning, Julien, Brian and Jack. Please allow me my congrats as well on the fourth quarter. I have a couple of questions, but I want to limit to one, I'll take the rest offline. I know we're running late. Just to put a finer point on it, there was a mention that the pricing actions associated with tariffs are now in the rearview mirror. And again, just to put a finer point on it, on the previous conference call, you cited one or two customers that offered significant push back and so much so that it affected their guidance for the entire fiscal year last year. Can you speak specifically to that dynamic?

Yes. So yes, but largely resolved on the pricing action. And in terms of the comments from the last call, just for clarity, one customer and only two categories, and we work with tens and hundreds of customers and across like a dozen categories. So you're talking about de minimis percentage. The only reason we disclosed it at all last call was because it happened to affect the outlook for the fourth quarter. And frankly we put a $5 million size on it. We saw the market takes pretty big bite out of us of over $5 million on roughly a $400 million quarter, it's kind of a 1% number, we were stunned to be honest. And we said on the call and in our webcast remarks from the ICR Conference just a couple of days later that we thought that that was not only overblown but wrong and that the result was that we were pretty good shape. And you heard me say, earlier the pricing just happens to have a little lumpiness as it gets executed and we were at that stage. The market somehow got the idea that we got it to a big tussle with our biggest customers across the board or something. It just wasn't ever true and we kept saying so. In the case of the current status, one of the categories is resolved entirely with that customer. And the other one is on its way, not fully done it, but we just said, it's largely resolved and we see some ways to get through even this one very small part that's left. So we're not especially worried about it. And even if you did the math on it, you have to get pretty far to the right of the decimal point to find the impact.

That's very helpful. Congrats on getting that behind you. Thank you for the clarity. And I will take the balance of the questions offline. Thanks again.

You bet.

And ladies and gentlemen, this concludes today's question-and-answer session. I would like to turn it back to the speakers for any additional or closing remarks.

Yes. Thank you, operator. We appreciate your support. All of our investors and our analysts and we're very proud of the quarter, the year and all the progress on Phase 1. I can assure you we are hard at work executing our plans that we believe will drive another successful year in fiscal 2020 and for the beginning of Phase 2. We also look forward to sharing more detail on Phase 2 with you at our Investor Day on May 21 in New York City, which is the same day that we will be ringing the NASDAQ opening bell to celebrate our 50th anniversary. So with that, I'd say thank you very much, and appreciate you being with us today.

Ladies and gentlemen, this concludes today's question-and-answer session. Excuse me, ladies and gentlemen, this concludes today's conference. So we appreciate your participation.