Dave & Buster's Entertainment, Inc. (NASDAQ:PLAY) Q1 2019 Earnings Conference Call Transcript

Jun 11, 2019 • 05:00 pm ET

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Dave & Buster's Entertainment, Inc. (NASDAQ:PLAY) Q1 2019 Earnings Conference Call Transcript

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Q & A
Operator
Operator

(Operator Instructions) And we'll take our first question today from Andrew Barish with Jefferies.

Analyst
Andrew Barish

Hey guys, just wondering on the comp guidance, as we -- and maybe it's a bigger picture question around virtual reality also as you lap the launch coming up. Is it getting you kind of the movement in traffic and interest that you wanted? And are we seeing the second half of the 1Q trends kind of continue here -- at the 2Q? Is that part of the reason why we're seeing the lower guidance overall on same-store sales for the year?

Executive
Brian A. Jenkins

Well, I guess a couple of questions in there. Just in terms of what VR is doing for our business, clearly, we have -- we featured proprietary titles here in Q1. Our comps in amusements were positive, just under 2%. And part of that is due to price, part of that is due to VR itself and obviously, that is an incremental forecast spend for us. And we are seeing some uptick in percent, the percent that VR represents over our overall amusement when we introduced the title here recently. So I think VR still is one of the primary avenues that we have on that platform to introduce proprietary content that we can feature on TV. That said, I don't think that amusements alone can drive the whole bus here. So we're clearly focused on food and bev and trying to drive that attach rate. We need to pull that gap in, and we're working very hard to do that, drive the awareness and build that business back and close the gap. The choppiness of kind of how we -- we actually ended the quarter -- April was a strong month because of spring break and Easter break -- and Easter and spring breaks fell into April. Start of the quarter, May, has been choppy for us, particularly up the Eastern seaboard in particular. And so that gives rise to the guidance change of kind of down 1 point. And we missed fundamentally what we were setting out to achieve in Q1.

Analyst
Andrew Barish

And just can you quantify the Easter spring break shift, and just kind of how you looked at that in the last quarter?

Executive
Brian A. Jenkins

Yeah. As we said, we were kind of -- we were up 1% in the first seven weeks heading into the really big weeks. Week nine was Easter the prior year, a lot of spring breaks. And that pushed back three full weeks into weeks 11 and 12. As we look at sort of -- you kind of have to look at the spring break Easter time and the associated weather during that time. Obviously, we like a rainy spring break. The combination of the two week, we track at about 150 bps of headwind that we had between the two in the quarter.

Analyst
Andrew Barish

Okay. Thank you.

Executive
Brian A. Jenkins

Thank you, Andy.

Operator
Operator

Next, we'll hear from Joshua Long with Piper Jaffray.

Analyst
Joshua Long

Hey, thank you quoting my question. Just curious on the