Dansko Update 07/30/2020

Thanks to all of you who participated in the small group meetings and completed the follow-up survey.

Below is a response from Jim Fox on some of the survey feedback. There will be additional questions covered in next week’s update:

 

Plans for a return to a regular 5-day a week workweek

The most frequently asked question from employees is regarding Dansko’s return to a regular 5-day a week workweek. I greatly appreciate everyone’s patience and understanding regarding this situation. I understand how frustrating and difficult it is to not have clarity regarding a specific date or event that would allow us to return to a normal schedule. At the same time, we have to balance providing employment, compensation, and benefits for as many employees as possible while managing for the long term and maintaining flexibility for Dansko in a time of enormous uncertainty.

While the goal is to return full-time employees to a regular schedule as soon as possible, there is not a one-size fits all response or timeline. Every individual provides an important, but different, contribution to Dansko’s business. In the best of circumstances, work does not break down perfectly into 37.5 hours per week consistently for every individual throughout the year. Customer service, for example, is driven by activity from retailers and consumers, the distribution center is driven by orders, incoming containers, and returns, IT is driven by ongoing support and projects, and every department differs in terms of business requirements. Under normal circumstances, there is room to flex and the ability to make small adjustments from month to month and season to season without significant changes in staffing or drastic adjustments to schedules. Unfortunately, these are not normal circumstances – not just for Dansko, but for the entire economy. The relationship between business needs and work requirements is more complex than $X revenue equals Y hours of work for every individual.

Dansko remains on track for our revised 2020 financial targets, but we are not yet guaranteed to meet or exceed those targets. To take only one example from the current headlines, the Federal Reserve noted on Wednesday that the economy is well below pre-pandemic levels. Most retailers that have reopened are not at the same level of traffic or revenue as a year ago, and many are at risk of closing again. Consumer confidence has yet to return to levels to support a thriving economy.

Long term, I am very optimistic given the strength of the Dansko brand, the importance of our product to consumers, and the dedication of our employee-owners. I could go on for pages with specific examples of each. Short term, however, we have to be flexible to manage through a period of unprecedented disruption and uncertainty. For those who need more specifics, I encourage you to speak to your manager, speak to HR, or contact me personally. Our goal is to get full-time employees back to a full-time schedule as soon as possible, but I cannot in good faith provide a specific timeline or trigger under the circumstances. We understand that work schedules are of critical importance and are reviewed on a continual basis.

As employee-owners we are all making sacrifices to get Dansko through a once in a century event. The hardship is greater for some than others, but everyone is contributing to ensure that Dansko comes out as strong as possible when we get to the other side. Thank you very much for your continued dedication and perseverance.

Plans for those working from home to return to working from 33 Federal

Until there is a more effective treatment, an available vaccine, or other change in recommendation from Pennsylvania or the CDC, I would expect those who can work from home will continue to do so. Again, I understand the desire for clarity in a very uncertain world. What I can tell you is that we will not bring those working from home back to the office without reasonable notice. Those working regularly from home will continue to do so through at least October 2^nd. My expectation is that people will be working from home beyond that date, and we will continue to review and update on a regular basis. The goal would be to provide at least two to four weeks notice before confirming a date for a return to regularly working from the office.

Thanks for providing the feedback and please let us know if you have additional questions.

Jim