領先汽車配件 (AAP) 2023 Q1 法說會逐字稿

Welcome to the Advance Auto Parts First Quarter 2023 Conference Call. Before we begin, Elisabeth Eisleben, Senior Vice President of Communications and Investor Relations, will make a brief statement concerning forward-looking statements that will be discussed on this call.

歡迎參加 Advance Auto Parts 2023 年第一季度電話會議。在我們開始之前，傳播和投資者關係高級副總裁伊麗莎白·艾斯萊本 (Elisabeth Eisleben) 將就將在本次電話會議上討論的前瞻性陳述發表簡短聲明。

Good morning, and thank you for joining us to discuss our Q1 2023 results. I'm joined by Tom Greco, President and Chief Executive Officer and Jeff Shepherd, Executive Vice President and Chief Financial Officer. Following their prepared remarks, we will turn our attention to answering your questions.

早上好，感謝您加入我們討論 2023 年第一季度的結果。總裁兼首席執行官 Tom Greco 和執行副總裁兼首席財務官 Jeff Shepherd 也加入了我的行列。在他們準備好的發言之後，我們將把注意力轉向回答您的問題。

Before we begin, please be advised that our remarks today will contain forward-looking statements. All statements, other than statements of historical facts are forward-looking statements, including, but not limited to, statements regarding our initiatives, plans, projections, future performance and leadership transition. Actual results could differ materially from those projected or implied by the forward-looking statements. Additional information about factors that could cause actual results to differ can be found under the captions, Forward-looking Statements and Risk Factors in our most recent Form 10-K and subsequent filings made with the Commission.

在我們開始之前，請注意我們今天的評論將包含前瞻性陳述。除歷史事實陳述外，所有陳述均為前瞻性陳述，包括但不限於有關我們的舉措、計劃、預測、未來業績和領導層交接的陳述。實際結果可能與前瞻性陳述所預測或暗示的結果存在重大差異。有關可能導致實際結果不同的因素的更多信息，請參見我們最新的 10-K 表格以及隨後向委員會提交的文件中的標題、前瞻性陳述和風險因素。

Now let me turn the call over to Tom Greco.

現在讓我把電話轉給 Tom Greco。

Thanks, Elisabeth, and good morning, everyone. I'd like to start by thanking our entire team for their relentless focus on serving our customers. The dedication of our frontline team members has been a hallmark of the company for many years and we're grateful for their ongoing commitment.

謝謝，伊麗莎白，大家早上好。首先，我要感謝我們整個團隊不懈地專注於為我們的客戶提供服務。多年來，我們一線團隊成員的奉獻精神一直是公司的標誌，我們感謝他們一直以來的承諾。

I'll review a couple of themes today and providing an update on our performance in the first quarter and outlook for the balance of the year. First, we're putting the customer and our team members first in every decision we make. While our financial results in the first quarter were well below our expectations, and there is still work to be done, our customer-focused investments in parts availability and price competitiveness resulted in improvements across key relevant performance indicators. We're executing our plan to drive continued improvement in our transactions with pro customers highlighted by increased parts availability, sustaining competitive price targets and improved execution across the board.

我今天將回顧幾個主題，並提供我們第一季度業績的最新情況和今年餘下時間的展望。首先，我們在做出每一個決定時都將客戶和我們的團隊成員放在首位。雖然我們第一季度的財務業績遠低於我們的預期，而且仍有工作要做，但我們以客戶為中心的零件可用性和價格競爭力方面的投資導致了關鍵相關績效指標的改善。我們正在執行我們的計劃，以推動與專業客戶的交易持續改進，這突出體現在增加零件可用性、維持有競爭力的價格目標和全面改進執行力。

Secondly, as we look to the outlook for the balance of the year, we expect the competitive environment in the pro channel to remain very challenging. As you saw in our release, we're reducing our annual guidance based on the shortfall we experienced in Q1 and our updated balance of year outlook. Additionally, we believe it's prudent to enhance financial flexibility, and we've made the difficult decision to reduce our quarterly cash dividend. We remain committed to executing against our key initiatives to drive top line growth and improve operational performance.

其次，當我們展望今年剩餘時間的前景時，我們預計專業頻道的競爭環境仍將充滿挑戰。正如您在我們的新聞稿中看到的那樣，我們正在根據我們在第一季度遇到的短缺和我們更新的年度展望餘額減少我們的年度指導。此外，我們認為提高財務靈活性是明智的，我們做出了減少季度現金股息的艱難決定。我們仍然致力於執行我們的關鍵舉措，以推動收入增長和提高運營績效。

In terms of our top line, Q1 net sales increased 1.3%, while comparable store sales decreased 0.4%. New stores contributed to net sales growth in the quarter, inclusive of the 21 stores and branches we opened in Q1. We saw net sales growth in both DIY omnichannel and DIFM, with DIY omnichannel slightly outperforming DIFM driven by a double-digit sales increase in our e-commerce business.

就我們的收入而言，第一季度淨銷售額增長 1.3%，而可比店面銷售額下降 0.4%。新店為本季度的淨銷售額增長做出了貢獻，其中包括我們在第一季度開設的 21 家門店和分店。我們看到 DIY 全渠道和 DIFM 的淨銷售額增長，其中 DIY 全渠道的表現略好於 DIFM，這是由於我們的電子商務業務實現了兩位數的銷售額增長。

In terms of cadence, we believe that lower tax refunds pressured our business in March. From a category perspective, motor oil and brakes led the way as a milder winter impacted cold weather category sales in some of our geographies, particularly in some of our northern geographies. On a regional basis, our sales growth was led by the West. Overall, both net and comp sales growth were below our expectations for the quarter, driven primarily by our professional business. As I mentioned, we saw improvements in the KPIs we track to measure parts availability. In collaboration with our vendor partners, our supply chain fill rates improved in the quarter. In terms of availability, our on-hand rates improved by approximately 50 basis points in the quarter.

就節奏而言，我們認為 3 月份較低的退稅給我們的業務帶來了壓力。從類別的角度來看，機油和製動器處於領先地位，因為較溫和的冬季影響了我們一些地區的寒冷天氣類別銷售，尤其是在我們的一些北部地區。在區域基礎上，我們的銷售增長由西方引領。總體而言，主要受我們專業業務的推動，淨銷售額和同店銷售額的增長均低於我們對本季度的預期。正如我所提到的，我們看到了我們跟踪的用於衡量零件可用性的 KPI 的改進。通過與我們的供應商合作夥伴合作，我們的供應鏈供應率在本季度有所提高。在可用性方面，本季度我們的庫存率提高了大約 50 個基點。

In terms of competitive pricing, we've talked in the past that based on our research, the most important criteria for an installer to make choices above their parts supplier starts with availability, followed by consistency of delivery and relationship. Pricing has historically been the third or fourth criteria for an installer. However, if the gap between our price and competitors becomes too wide, price becomes a bigger factor. Last year, we saw a relative price position within pro climb to unacceptable levels as a result of changing competitive dynamics surrounding price-related investments. We've done considerable work testing different price points across categories and geographies to determine the best approach to drive increased transactions and growth in our pro business.

在有競爭力的價格方面，我們過去曾談到，根據我們的研究，安裝人員在選擇零件供應商之前做出選擇的最重要標準首先是可用性，其次是交付和關係的一致性。定價歷來是安裝程序的第三或第四標準。但是，如果我們的價格與競爭對手之間的差距變得太大，價格就會成為一個更大的因素。去年，由於圍繞價格相關投資的競爭動態發生變化，我們看到專業人士的相對價格地位攀升至不可接受的水平。我們已經做了大量工作來測試跨類別和地域的不同價格點，以確定推動我們的專業業務增加交易和增長的最佳方法。

This work helped us refine price targets for each category relative to competition, be it a traditional competitor or wholesale distributor. As a result of improved availability, along with the investments we made within pro to achieve competitive price targets by category, we saw improved performance in both transactions and units relative to the fourth quarter. This was more than offset by less year-over-year growth in average selling price relative to the fourth quarter.

這項工作幫助我們改進了每個類別相對於競爭的價格目標，無論是傳統競爭對手還是批發分銷商。由於可用性的提高，以及我們為按類別實現具有競爭力的價格目標而在 pro 內進行的投資，我們看到與第四季度相比，交易和單位的績效都有所改善。這被平均售價相對於第四季度的同比增長放緩所抵消。

In order to sustain our targeted competitive price position in Q1, we had less price realization than plans, which put substantially higher pressure on our product margin rate. Our gross margin rate declined 162 basis points, with the single biggest shortfall versus expectations being less than planned price realization within product margin. Separately, we also experienced a mixed headwind within product margin, which Jeff will explain in more detail shortly. These 2 primary headwinds within gross margins more than offset the benefits we saw from both channel and own brand mix.

為了維持我們在第一季度的目標競爭價格地位，我們實現的價格低於計劃，這給我們的產品利潤率帶來了更大的壓力。我們的毛利率下降了 162 個基點，與預期相比最大的差距是產品利潤率低於計劃價格實現。另外，我們在產品利潤率方面也遇到了喜憂參半的不利因素，Jeff 稍後將對此進行更詳細的解釋。毛利率中的這兩個主要逆風抵消了我們從渠道和自有品牌組合中看到的好處。

In terms of SG&A, we incurred a headwind associated with the prior year adjustment which Jeff will discuss further. The combination of gross margin and SG&A deleverage resulted in an operating margin decline of 339 basis points in the quarter. As we look to the back half of 2023, we're urgently focused on operational improvement. On the top line, we're continuing to drive our DIY omnichannel business behind the strength of DieHard, our Speed Perks loyalty platform and strong growth in our E-commerce business. In terms of pro, we're focused on improving top line sales and driving gross profit dollars. This is highlighted by a back-to-basics approach and a heightened focus on execution across the board.

在 SG&A 方面，我們遇到了與上一年調整相關的逆風，Jeff 將進一步討論。毛利率和 SG&A 去槓桿化的結合導致本季度營業利潤率下降 339 個基點。展望 2023 年下半年，我們迫切關注運營改進。最重要的是，我們將繼續推動我們的 DIY 全渠道業務，以支持 DieHard 的實力、我們的 Speed Perks 忠誠度平台和我們電子商務業務的強勁增長。在專業方面，我們專注於提高頂線銷售額和推動毛利潤。回歸基礎的方法和對全面執行的高度關注突出了這一點。

The first big driver here involves further optimization of our inventory and parts availability to improve on-hand rates. In some cases, we plan to sell through owned inventory at discounted rates to transition to new higher-margin alternatives. The second driver involves our plans to sustain competitive price targets to ensure we close the sale. On the margin front, we've talked about strategic sourcing within category management in the past. We're now taking a much more holistic approach, starting with the latest customer and category insights and updating the role of each category within our business.

這裡的第一個重要驅動因素涉及進一步優化我們的庫存和零件可用性以提高現有率。在某些情況下，我們計劃以折扣價出售自有庫存，以過渡到新的利潤率更高的替代品。第二個驅動因素涉及我們維持有競爭力的價格目標以確保我們完成銷售的計劃。在利潤率方面，我們過去曾討論過品類管理中的戰略採購。我們現在採取更全面的方法，從最新的客戶和類別洞察開始，更新每個類別在我們業務中的作用。

We then apply a very disciplined approach to determine sourcing, distribution, shelf space, pricing and promotion. Our category management process involves the engagement of our strategic suppliers with an overarching goal of accelerating our mutual sales growth and margin expansion. We're addressing opportunities here on a category-by-category basis, with continued work planned balance of year and into 2024. In addition, we also executed a corporate restructuring in the first quarter, which will provide savings balance of the year within SG&A.

然後，我們採用非常嚴格的方法來確定採購、分銷、貨架空間、定價和促銷。我們的品類管理流程涉及戰略供應商的參與，其總體目標是加速我們的共同銷售增長和利潤擴張。我們正在逐個類別地解決這裡的機會，繼續工作計劃到 2024 年。此外，我們還在第一季度執行了公司重組，這將在 SG&A 中提供當年的儲蓄餘額.

In terms of our balance of year outlook, we continue to be mindful of macroeconomic uncertainty and potential pressure on consumers. For our industry, the primary drivers of demand remain positive, including an increase in car park and aging fleet and a modest increase in miles driven compared with 1 year ago. Our overarching goal for the balance of the year remains to improve operational execution to regain top line sales momentum, particularly in the professional sales channel.

就我們對年度展望的平衡而言，我們繼續關注宏觀經濟的不確定性和對消費者的潛在壓力。對於我們的行業，需求的主要驅動因素仍然是積極的，包括停車場和老化車隊的增加以及與一年前相比行駛里程的適度增加。我們今年餘下時間的總體目標仍然是提高運營執行力，以重獲一線銷售勢頭，尤其是在專業銷售渠道。

Regaining our share of wallet with existing customers has been challenging. However, we're elevating our focus on parts availability, sustaining competitive price targets and improving field execution. Jeff will cover more details surrounding our revised guidance later in the call. But given what we've experienced year-to-date, we expect that sustaining our competitive price targets by category will require higher than planned price investments in pro, and we factored this into our full year guide.

重新獲得現有客戶的錢包份額一直具有挑戰性。然而，我們正在提高對零件可用性的關注，維持有競爭力的價格目標並提高現場執行力。 Jeff 將在稍後的電話會議中介紹有關我們修訂後指南的更多細節。但鑑於我們今年迄今的經歷，我們預計維持我們按類別競爭的價格目標將需要高於計劃的專業價格投資，我們將其納入我們的全年指南。

Before turning the call over to Jeff, I want to talk briefly about the newly expanded role of our independent Board Chair, Gene Lee, and provide a quick update on the CEO search process. As you saw in our release this morning, Gene is now serving as interim Executive Chair, and will be providing additional operational oversight and support to our management team during this time. I look forward to working with Gene and continuing to leverage his experience as we work to deliver operational improvement in the business, while helping to ensure a seamless CEO transition.

在將電話轉給 Jeff 之前，我想簡要談談我們的獨立董事會主席 Gene Lee 新近擴大的角色，並提供有關 CEO 搜索過程的快速更新。正如您在今天早上發布的新聞稿中看到的那樣，Gene 現在擔任臨時執行主席，並將在此期間為我們的管理團隊提供額外的運營監督和支持。我期待著與 Gene 合作，並在我們努力改進業務運營的同時繼續利用他的經驗，同時幫助確保 CEO 的無縫過渡。

With respect to the CEO search, following a very thorough vetting and selection process, we've retained a leading independent search firm to assist with this work. Our succession committee is comprised of board members with significant experience in retail, automotive, industrial and multi-unit operations. The committee is evaluating internal and external candidates and remains committed to identifying a candidate who is exceptionally fit for the role.

關於 CEO 搜尋，在經過非常徹底的審查和選擇過程之後，我們聘請了一家領先的獨立搜尋公司來協助這項工作。我們的繼任委員會由在零售、汽車、工業和多部門運營方面具有豐富經驗的董事會成員組成。該委員會正在評估內部和外部候選人，並將繼續致力於確定特別適合該職位的候選人。

With that, I'll now turn the call over to Jeff to review our first quarter financials in more detail and provide our outlook for the full year. Jeff?

有了這個，我現在將電話轉給傑夫，更詳細地審查我們第一季度的財務狀況，並提供我們對全年的展望。傑夫？

Thanks, Tom, and good morning. I want to reiterate our gratitude for our team members and the ongoing commitment to putting our customers first while navigating a difficult quarter. In Q1, net sales of $3.4 billion increased 1.3% compared with Q1 2022, driven by new store openings. Comparable store sales decreased 0.4%. Gross profit margin was 43% compared with 44.6% in Q1 2022. In terms of gross margin, we experienced headwinds associated with targeted price investments, which were above expectations due to the current competitive landscape. It's important to point out that as we remain committed to maintaining the competitive price targets we've established and have now attained in key categories, we were unable to price to cover product costs in the quarter. Product costs were up mid-single digits compared with the prior year, which exceeded our year-over-year price realization. In addition, unfavorable product mix and increased supply chain costs also contributed to gross margin deleverage.

謝謝，湯姆，早上好。我想重申我們對我們的團隊成員的感謝，以及在度過艱難的季度時將客戶放在首位的持續承諾。在新店開業的推動下，第一季度淨銷售額為 34 億美元，與 2022 年第一季度相比增長 1.3%。可比店面銷售額下降 0.4%。毛利率為 43%，而 2022 年第一季度為 44.6%。在毛利率方面，我們遇到了與目標價格投資相關的逆風，由於當前的競爭格局，這高於預期。重要的是要指出，由於我們仍然致力於維持我們已經建立並且現在已經在關鍵類別中實現的有競爭力的價格目標，我們無法在本季度定價以覆蓋產品成本。與上一年相比，產品成本上漲了中個位數，超過了我們的同比價格實現。此外，不利的產品組合和供應鏈成本增加也導致毛利率去槓桿化。

In terms of product mix, we routinely see variations, which can be influenced by several factors, including macroeconomic conditions and weather. As you know, we had a milder winter in the quarter, which impacted battery and wiper sales in Q1. This, coupled with an increase in motor oil, which carries a lower margin rate, had an unfavorable impact on product margin. While we had channel and owned brand mix tailwinds, product mix headwinds more than offset these benefits. The combination of inflationary costs in our new DCs in California and Toronto as well as lower-than-expected sales result in the supply chain deleverage. This more than offset productivity gains from our supply chain initiatives.

在產品組合方面，我們經常會看到變化，這可能會受到多種因素的影響，包括宏觀經濟狀況和天氣。如您所知，本季度的冬季較為溫和，這影響了第一季度的電池和雨刷銷售。這一點，再加上利潤率較低的機油的增加，對產品利潤率產生了不利影響。雖然我們有渠道和自有品牌組合順風，但產品組合逆風抵消了這些好處。我們在加利福尼亞和多倫多的新 DC 的通貨膨脹成本以及低於預期的銷售導致供應鏈去槓桿化。這遠遠抵消了我們供應鏈計劃帶來的生產力提升。

SG&A in the quarter was $1.4 billion compared with $1.3 billion the previous year. As a percent of net sales, Q1 2023 was higher than planned due to the softer top line and was 40.4% compared with 38.6% in the prior year. We incurred approximately $17 million in SG&A costs in the first quarter. As a result of management's review, it was determined these amounts were paid in 2021 and 2022, but not correctly expensed in those years. We've concluded these costs were not material to prior years and therefore, we recognize the adjustment in Q1.

本季度的 SG&A 為 14 億美元，而去年同期為 13 億美元。由於收入疲軟，2023 年第一季度占淨銷售額的百分比高於計劃，為 40.4%，而去年同期為 38.6%。我們在第一季度產生了大約 1700 萬美元的 SG&A 成本。根據管理層的審查，確定這些金額是在 2021 年和 2022 年支付的，但在那些年沒有正確計入費用。我們得出的結論是，這些成本與前幾年相比並不重要，因此，我們承認第一季度的調整。

In addition, our SG&A deleverage was also due to inflationary headwinds associated with labor and benefit-related expenses. We incurred costs associated with new store openings, which were partially offset by a reduction in start-up costs we incurred in 2022 related to our California expansion. Our Q1 operating income was $90 million compared with $203.3 million the previous year. On a rate basis, Q1 was 2.6% compared with 6% the previous year. Diluted earnings per share was $0.72 compared with $2.26 in the previous year. Q1 capital expenditures were $85 million compared with $114 million the previous year. The year-over-year reduction was primarily attributable to the completion of certain IT-related investments from the prior year and lower new store and branch openings in Q1 2023. Free cash flow was an outflow of $468 million in the quarter, with the largest contributor being the timing of payables.

此外，我們的 SG&A 去槓桿化也是由於與勞動力和福利相關費用相關的通貨膨脹逆風。我們產生了與新店開業相關的成本，這些成本被我們在 2022 年因加利福尼亞擴張而產生的啟動成本減少部分抵消。我們第一季度的營業收入為 9000 萬美元，而去年同期為 2.033 億美元。按利率計算，第一季度為 2.6%，而去年同期為 6%。每股攤薄收益為 0.72 美元，上一年為 2.26 美元。第一季度的資本支出為 8500 萬美元，而去年同期為 1.14 億美元。同比減少的主要原因是上一年完成了某些與 IT 相關的投資，以及 2023 年第一季度新開的門店和分店數量減少。自由現金流在本季度流出 4.68 億美元，其中流出量最大的是貢獻者是應付賬款的時間。

As you saw in our release this morning, and as Tom mentioned, the Board made the difficult decision to reduce our cash dividend to $0.25 this quarter. Given our recent performance and balance of the year outlook, we believe it's prudent to retain financial flexibility. Given the factors discussed, we are updating our full year guide to include net sales of $11.2 billion to $11.3 billion, comparable store sales of negative 1% to flat, GAAP operating income margin of 5% to 5.3%, income tax rate of 24% to 25%, diluted earnings per share of $6 to $6.50, capital expenditures of $250 million to $300 million, a range of $200 million to $300 million in free cash flow and 40 to 60 new store and branch openings.

正如您在今天早上發布的新聞稿中看到的那樣，正如湯姆提到的那樣，董事會做出了艱難的決定，將本季度的現金股息減少至 0.25 美元。鑑於我們最近的表現和年度展望的平衡，我們認為保持財務靈活性是謹慎的做法。鑑於所討論的因素，我們正在更新我們的全年指南，以包括 112 億美元至 113 億美元的淨銷售額，可比店面銷售額為負 1% 至持平，GAAP 營業利潤率為 5% 至 5.3%，所得稅率為 24%至 25%，每股攤薄收益為 6 至 6.50 美元，資本支出為 2.5 億至 3 億美元，自由現金流為 2 億至 3 億美元，新開店和分店 40 至 60 家。

With that, let's open it up for questions. Operator?

有了這個，讓我們打開它來提問。操作員？

(Operator Instructions) And have our first question is from Elizabeth Suzuki from Bank of America.

（操作員說明）我們的第一個問題來自美國銀行的伊麗莎白鈴木。

Great. Just on the competitive environment, you noted that expect competition in pro to remain challenging. I mean, do you think that competition is mostly coming from the large chains? Or are the smaller independents getting more competitive too as the supply chain leases up and they're able to get more product as well?

偉大的。就競爭環境而言，您指出預計職業比賽仍將充滿挑戰。我的意思是，您認為競爭主要來自大型連鎖店嗎？或者，隨著供應鏈的租賃，規模較小的獨立企業是否也變得更具競爭力並且他們也能夠獲得更多產品？

I think it's a combination of the two. I mean, we measure the relative price indices against the industry. Obviously, we also measure it against our direct to close-in competitors, but we predicate our pricing strategy off of the industry more broadly. So really, those two are both looked at, but the primary driver for us is the industry because, as you know, the pro business is highly fragmented. There's a lot of business out there. It's $100 billion category, so we look at the whole thing.

我認為這是兩者的結合。我的意思是，我們根據行業衡量相對價格指數。顯然，我們也將其與我們的直接競爭對手進行比較，但我們將我們的定價策略從更廣泛的行業中預測出來。所以真的，這兩個都在考慮，但我們的主要驅動力是行業，因為如你所知，專業業務高度分散。那裡有很多生意。這是一個 1000 億美元的類別，所以我們要看整個事情。

Great. And then Tom, you had also mentioned in your prepared remarks that you talked about plans to sell through some of your owned brand inventory to replace with better product. I mean, is the implication there that the owned brands didn't meet the demands of your customers in terms of quality or features? And are you pausing expansion in owned brands?

偉大的。然後湯姆，你在準備好的發言中也提到了你計劃通過一些自有品牌庫存進行銷售，以用更好的產品代替。我的意思是，這是否意味著自有品牌在質量或功能方面無法滿足客戶的需求？您是否正在暫停自有品牌的擴張？

Yes. Let me correct that. We have owned inventory, which is essentially inventory that we've already paid for, it's not necessarily owned brand. We're essentially transitioning from one brand to another in a couple of big categories, and that's what we're talking about here. For the most part, we are actually transitioning into higher-margin owned brands, so I know that's a little confusing. But this is largely about expediting the process to move out of inventory that is essentially moving out of our system and into higher-margin owned brands.

是的。讓我糾正一下。我們擁有庫存，本質上是我們已經支付的庫存，不一定是自有品牌。我們基本上是在幾個大類別中從一個品牌過渡到另一個品牌，這就是我們在這裡談論的內容。在大多數情況下，我們實際上正在過渡到利潤率更高的自有品牌，所以我知道這有點令人困惑。但這主要是為了加快從庫存中移出的過程，這實際上是從我們的系統中移出並進入利潤率更高的自有品牌。

The next question comes from Chris Horvers from JPMorgan.

下一個問題來自摩根大通的 Chris Horvers。

So just at a high level, narrating this, you cut your operating margin by 280 basis points. So is that essentially 250 on the gross margin line and the balance on SG&A given the lower outlook? And then within that gross margin, is that all price investment that's driving that difference?

因此，從高層次上講，您將營業利潤率降低了 280 個基點。那麼，鑑於較低的前景，毛利率和 SG&A 的餘額基本上是 250 嗎？然後在這個毛利率範圍內，是不是所有的價格投資都在推動這種差異？

Yes, Chris, let me give you some context on what happened in the quarter and how we're thinking about balance of the year, and then I'll let Jeff sort of tie it off. In terms of the sales, I mean, DIY was generally in line with our expectations. We were down low single digits in transactions, up mid-single digits in average ticket. We posted a positive comp generally in line.

是的，克里斯，讓我給你介紹一下本季度發生的事情以及我們如何考慮今年的餘額，然後我會讓傑夫把它聯繫起來。在銷售方面，我的意思是，DIY 總體上符合我們的預期。我們的交易量下降了低個位數，平均票數上升了中等個位數。我們發布了一個積極的補償，總體上是一致的。

As you know, in pro, the goal was to invest in inventory and make sure that our competitive price index was in line with where we had targeted. We want to drive our units, we want to drive transactions. We're trying to increase our share of wallet with our existing customers get back to where we were. We're actually making good progress on improving units and transactions. In the quarter, we improved. We were down low single digits in transactions in the quarter, but that was a nice improvement from where we were at the end of last year, so we're getting more jobs with our installers.

如您所知，在 pro 中，目標是投資庫存並確保我們的競爭價格指數與我們的目標一致。我們想要推動我們的單位，我們想要推動交易。我們正在努力增加我們與現有客戶的錢包份額，回到我們原來的位置。我們實際上在改進單位和交易方面取得了良好進展。在本季度，我們有所改善。我們在本季度的交易量下降了個位數，但與去年年底相比有了很大的改善，因此我們的安裝人員獲得了更多工作。

The challenge is twofold. We're not getting enough lift yet, so it is taking longer to recover share of wallet with our existing customers. That's been the biggest issue that we faced so far this year. We're going to stay at it. It is taking longer than we'd like, though. And then in terms of our average ticket in pro, it was up low single digits, which is significantly below how we plan that business. And as we look forward, that's going to be a big P&L headwind for the year, so I'll let Jeff tie it out from there.

挑戰是雙重的。我們還沒有獲得足夠的提升，因此需要更長的時間才能恢復與現有客戶的錢包份額。這是我們今年迄今為止面臨的最大問題。我們將堅持下去。不過，它花費的時間比我們想要的要長。然後就我們在 pro 中的平均票價而言，它上升了低個位數，這大大低於我們計劃該業務的方式。當我們展望未來時，這將成為今年損益的一大逆風，所以我會讓傑夫從那裡開始。

Yes. In terms of the split between margin and SG&A, Chris, the best way to think about it, if you look at the balance of the year, kind of midpoint of the guide of last year, we're expecting deleverage in both gross margin as well as SG&A relatively split. I mean, there could be some variability there, but that's why we're sort of thinking about the balance of the year. And just to put a [bull on that,] we do think the second quarter will be the most deleverage and then we'll see improvement in the back half.

是的。就利潤率和 SG&A 之間的分離而言，克里斯，最好的思考方式，如果你看看今年的餘額，去年指南的中點，我們預計毛利率和以及 SG&A 相對拆分。我的意思是，那裡可能會有一些變化，但這就是為什麼我們要考慮今年的餘額。只是為了[看多]，我們確實認為第二季度將是去槓桿化程度最高的，然後我們會看到後半部分有所改善。

And so that's a good segue to the follow-up. So as you think about price and availability, is -- are you -- have the price investments been made and now we're sort of annualizing through that? And is there any LIFO dynamic there? Then on the availability side, you did add a lot of inventory. So is availability where you want it? Or are we also trying to figure out, right? We have the inventory, but is there a question of it's just not in the right location.

因此，這是後續行動的一個很好的轉折點。因此，當您考慮價格和可用性時，您是否已經進行了價格投資，現在我們正在通過它進行年化？那裡有後進先出的動態嗎？然後在可用性方面，你確實增加了很多庫存。那麼可用性是您想要的嗎？或者我們也在努力弄清楚，對吧？我們有庫存，但是否存在庫存不在正確位置的問題。

Sure. Well, first of all, on the -- I'll start with availability because Jeff can connect price a little bit after I talk, but we're always going to want to have improved availability. We are making good progress there. Our on-hand rates are up, our supplier fill rates are up, our fill rates from the DCs to the stores are up, so good progress on availability in terms of our on-hand rates, still room to improve there, but clearly, we're improving there.

當然。好吧，首先，關於——我將從可用性開始，因為 Jeff 可以在我談話後稍微聯繫一下價格，但我們總是希望提高可用性。我們在那裡取得了良好的進展。我們的現有率上升了，我們的供應商填充率上升了，我們從 DC 到商店的填充率上升了，所以我們的現有率在可用性方面取得了良好的進展，仍有改進的空間，但很明顯，我們正在改進那裡。

In terms of price, as I said with the earlier question, we have a targeted price index versus the industry by category. And to answer your question directly, we are where we need to be there. It is resulting in less price realization than we planned, but we are at the targeted index now.

在價格方面，正如我在前面的問題中所說，我們有一個針對行業的目標價格指數。為了直接回答您的問題，我們已經到了我們需要去的地方。這導致價格實現低於我們的計劃，但我們現在處於目標指數。

Right. And we're planning on that being a competitive dynamic through the balance of the year, so that is factored into the revised guidance. In terms of impact from LIFO, we're not anticipating anything significant there. We talked about inflation being up mid-single digits. We're expecting some moderation over the balance of the year. However, the LIFO, we think, will be a slight benefit.

正確的。我們計劃在今年餘下的時間裡將其作為一種競爭動態，因此將其納入修訂後的指南中。就後進先出法的影響而言，我們預計不會有任何重大影響。我們談到通貨膨脹率處於中等個位數。我們預計今年餘下時間會有所緩和。但是，我們認為，後進先出法會略微帶來好處。

Slight benefit for the year, but it was a headwind in 1Q?

全年微利，一季度逆風？

That was a benefit in 1Q, very small, $7 million.

這是第一季度的收益，非常小，只有 700 萬美元。

The next question comes from Simeon Gutman from Morgan Stanley.

下一個問題來自摩根士丹利的 Simeon Gutman。

In the prepared remarks, it somewhat painted a picture of like a very competitive price-driven backdrop. Curious if you can discuss -- it has, especially commercial resorted to, I don't want to say any price war, but it sounds a little different than the way the other competitors described it. Are you seeing price matching? Is it coming from the big chains? Is it coming from the independents? Can you discuss that competitiveness a little more, please?

在準備好的言論中，它在某種程度上描繪了一幅極具競爭力的價格驅動背景圖。好奇你是否可以討論 - 它已經，特別是商業訴諸，我不想說任何價格戰，但它聽起來與其他競爭對手描述它的方式有點不同。你看到價格匹配了嗎？它來自大型連鎖店嗎？它來自獨立人士嗎？你能再多討論一下這種競爭力嗎？

Simeon, I think it's consistent with what I said earlier. I mean, we were establishing our price targets based on what we see every week in the industry in each category, and we react to that. I mean, we've got a very strong team in strategic pricing. They look at our unit lift in each of the categories in terms of how we would perform at different levels, and we've got a very clear idea of where we need to be in order to deliver unit improvement and secure more jobs.

Simeon，我認為這與我之前所說的一致。我的意思是，我們是根據我們每週在行業中看到的每個類別的情況來確定我們的價格目標，我們對此做出反應。我的意思是，我們在戰略定價方面擁有一支非常強大的團隊。他們根據我們在不同級別的表現如何看待我們在每個類別中的單位提升，並且我們非常清楚我們需要在哪裡才能實現單位改進並獲得更多工作。

So they established those targets for each category, and when we see that move, and again, that's at an industry level. We don't measure -- we look at individual competitors that are close in, but it's really more at the industry level that we drive our pricing strategy off of, so I think it's a combination of the two.

因此，他們為每個類別制定了這些目標，當我們再次看到這一舉措時，這是在行業層面。我們不衡量——我們關注的是接近的個別競爭對手，但實際上更多的是在行業層面上我們推動定價策略，所以我認為這是兩者的結合。

And can you give any sense for how much of the gross margin impact is due to the acceleration of moving some lines out of your network versus the price investments?

你能說出有多少毛利率影響是由於加速將一些線路移出你的網絡而不是價格投資？

It's primarily the price investment. I mean that has been the single biggest factor. We aren't able to cover inflation with price, and that was by far the biggest driver.

主要是價格投資。我的意思是，這是最大的單一因素。我們無法用價格來掩蓋通貨膨脹，而這是迄今為止最大的驅動因素。

The next question comes from Bret Jordan from Jefferies.

下一個問題來自 Jefferies 的 Bret Jordan。

Could you talk about the repercussions of the debt-to-EBITDAR now being at 3x? Is this going to require sort of a more funded working capital level? And I guess, what does it do to your, I guess, inventory balances and cost of goods?

您能談談債務對 EBITDAR 的影響現在是 3 倍嗎？這是否需要更多資金的營運資金水平？我想，這對您的庫存餘額和商品成本有何影響？

Yes. I mean, we're looking to make the necessary investments within working capital to ensure we have the right availability. We've made substantial improvement in that in the first quarter. You'll see our free cash flow. When you look at the details, our inventory is up $100 million. We think we have some further investments to go, but we think that will be largely completed by the end of this quarter, so we're confident that we can get those investments in and start producing the cash from making those investments. We watch our ratios very closely. It's elevated, and we believe that to be temporary as the availability improves our transactions, and we improve the cash flow.

是的。我的意思是，我們希望在營運資金中進行必要的投資，以確保我們擁有合適的可用性。我們在第一季度在這方面取得了重大進展。你會看到我們的自由現金流。當您查看詳細信息時，我們的庫存增加了 1 億美元。我們認為我們還有一些進一步的投資，但我們認為這將在本季度末基本完成，因此我們有信心我們可以獲得這些投資並開始從這些投資中產生現金。我們非常密切地關注我們的比率。它有所提高，我們認為這是暫時的，因為可用性會改善我們的交易，並且我們會改善現金流。

Okay. Your accounts payable, I think we're in the 70s as a percentage of inventory. Is that number probably heading lower here as we go into a sort of into sort of -- into this 3-plus debt-to-EBITDAR ratio?

好的。你的應付賬款，我認為我們在 70 年代佔庫存的百分比。當我們進入某種程度的債務與 EBITDAR 比率時，這個數字可能會下降嗎？

No. We think we'll see some slight improvement over the course of the year. We had some sizable, planned payments in the first quarter associated with our payables, so that will start to flatten out over the balance of the year, and so we'll see some slight improvement.

不會。我們認為我們會在這一年中看到一些輕微的改善。我們在第一季度有一些與應付賬款相關的大筆計劃付款，因此這將在今年餘下時間開始趨於平緩，因此我們會看到一些輕微的改善。

Okay and then a question on commercial. I mean, obviously, could you maybe give us some color as to what percent of your commercial business is national accounts? And then obviously, one of your big national accounts did an RFP in the first quarter that I think maybe took some business away from you. How do we reconcile that with this phase of price investment? You think that given the fact that you're calling out lower pricing that RFPs like that would be going towards you as opposed to away?

好的，然後是關於商業的問題。我的意思是，很明顯，您能否給我們一些顏色，說明您的商業業務中有多少是國民賬戶？然後很明顯，你的一個大國民賬戶在第一季度做了一個 RFP，我認為這可能會奪走你的一些業務。我們如何協調這一階段的價格投資？您認為鑑於您要求降低價格這一事實，這樣的 RFP 會走向您而不是遠離您嗎？

Sure. Well, obviously, we look at the different channels within pro, Bret, as you know. So our -- we don't break out exactly how big our majors are, but our strategic accounts are very important to us. We believe we'll see -- to the direct question you mentioned on the RFP, as we get into the back half of 2023, we'll see improvement there just across our national account base in general, for a variety of reasons.

當然。好吧，很明顯，正如你所知，布雷特，我們會關注專業人士的不同渠道。所以我們——我們並沒有具體說明我們的專業有多大，但我們的戰略客戶對我們非常重要。我們相信我們會看到 - 對於您在 RFP 中提到的直接問題，當我們進入 2023 年下半年時，由於各種原因，我們將看到我們的國民賬戶基礎總體上有所改善。

Most of the progress we've made so far has come up and down the street, which I'm pleased about. So we're going to continue to drive our up and down the street business, secure more jobs, increase our share of wallet, our field team is highly focused on driving execution in the field and got a pretty simple play block. We're going to make progress on availability and we're going to sustain our CPI. And with that, we expect to improve transactions, units and drive share of wallet, so as we get into the back half on pro, we expect improvement on the strategic side and also a continued progress up and down the street.

到目前為止，我們取得的大部分進展都在街上出現，我對此感到很高興。因此，我們將繼續推動我們的街頭業務，獲得更多工作，增加我們的錢包份額，我們的現場團隊高度專注於推動現場執行，並獲得了一個非常簡單的遊戲塊。我們將在可用性方面取得進展，我們將維持我們的 CPI。有了這個，我們希望改善交易、單位和推動錢包份額，所以當我們進入 pro 的後半部分時，我們希望在戰略方面有所改進，並在街上繼續取得進展。

Okay. A part of that first question, on the payables and free cash. I guess your free cash guide, given the fact that we're probably have to fund a bit more working capital, is your confidence in that guidance tied to lower CapEx or store opening expense? I guess you look at the puts and takes of cash flow.

好的。第一個問題的一部分，關於應付賬款和自由現金。我猜你的免費現金指南，考慮到我們可能需要為更多的營運資金提供資金這一事實，你對該指南的信心是否與降低資本支出或開店費用有關？我猜你看的是現金流量的賣出和賣出。

Yes, we took a comprehensive look at all of that, and you'll see we did reduce the number of planned new store openings this year. We've reduced our estimate for capital expenditures, so all of that has been contemplated, and we're going to continue to assess that throughout the year.

是的，我們全面審視了所有這些，您會發現我們確實減少了今年計劃開設的新店數量。我們已經減少了對資本支出的估計，所以所有這些都已經考慮在內，我們將在全年繼續評估。

The next question comes from Greg Melich from Evercore ISI.

下一個問題來自 Evercore ISI 的 Greg Melich。

I wanted to just quantify a little bit more on inflation, what it was in the first quarter in both DIY and pro? It sounds like it was low single digit, maybe mid-single, and then what's your expectation for the rest of the year, the cadence of that?

我只想對通貨膨脹進行更多量化，第一季度 DIY 和專業版的情況如何？這聽起來像是低個位數，也許是中個位數，然後你對今年餘下時間的預期是什麼，節奏是什麼？

You're talking about costs, Greg? Or are you talking about...

你是在談論成本，格雷格？或者你在說...

I am talking top line (inaudible)

我說的是頂線（聽不清）

Topline that's what I thought. Yes. So yes, we saw mid-single digits on DIY in terms of average ticket and we saw low single digits on pro, which the pro number was well below how we planned it, so that's kind of where it came in.

這就是我的想法。是的。所以是的，我們在 DIY 上看到了中個位數的平均票價，而我們在 pro 上看到了低個位數，pro 數字遠低於我們的計劃，所以這就是它的來源。

And then the guidance, the cadence for the rest of the year, should we expect that to go all to low single digits or near flat?

然後是指導，今年剩餘時間的節奏，我們是否應該期望它全部達到低個位數或接近持平？

Guidance would be near flat.

指導將接近持平。

Yes. I mean, we're anticipating that the competitive environment in pro is similar for the balance of the year, and that's why we're making the single biggest driver of our guidance revision is that.

是的。我的意思是，我們預計 pro 的競爭環境在今年餘下的時間裡是相似的，這就是為什麼我們正在製定指導修訂的最大驅動力。

Got it. Okay. And then just the follow-up is, are we -- I know you're bringing inventory back and get fill rates back is still a key primary way to get back share. Is inventory now, I guess, was up 5% year-on-year? Is that back where it wants to be? Or do you still need to have some inventory investment?

知道了。好的。然後只是後續行動，我們 - 我知道你正在帶回庫存並恢復填充率仍然是恢復份額的關鍵主要方式。我猜現在的庫存是同比增長了 5% 嗎？那是回到它想要的地方嗎？還是還需要有一些存貨投資？

We're largely there. We've got -- we have a little bit more investment we think we need to make that we believe will be completed in the second quarter and at that point, we think the working capital or inventory investments will be largely completed.

我們基本上在那裡。我們已經 - 我們認為我們需要進行更多投資，我們認為這些投資將在第二季度完成，屆時，我們認為營運資金或庫存投資將基本完成。

Got it. And then my last follow-up was just a little more color on the SG&A in terms of -- I know there were up -- you have the $17 million but the other drivers you said wage inflation. Could you just give us a little more color on those and how they're trending?

知道了。然後我的最後一次跟進只是在 SG&A 方面多了一點色彩——我知道有上升——你有 1700 萬美元，但你說的其他驅動因素是工資通脹。你能給我們更多關於這些的顏色以及它們的趨勢嗎？

Yes. Wage inflation was the biggest factor, again, mid-single digits, so couple that with the top line and that's pretty difficult to get leverage there. We also did see deleverage in our newly opened stores, where we're moving through these phases of last year's preopening costs. Now we're moving into open stores, and we get natural deleverage there as we build the revenue, we're still seeing deleverage. That was offset by preopening costs that we had last year, so it's sort of shifting that, but those were the big drivers.

是的。工資通脹是最大的因素，同樣是中等個位數，因此將其與頂線結合起來，很難在那裡獲得槓桿作用。我們也確實看到我們新開的商店去槓桿化，我們正在經歷去年開業前成本的這些階段。現在我們正在進入開店，隨著我們增加收入，我們會自然地去槓桿化，我們仍然看到去槓桿化。這被我們去年的開業前成本所抵消，所以它有點改變了，但那些是主要的驅動因素。

The next question comes from Scot Ciccarelli from Truist.

下一個問題來自 Truist 的 Scot Ciccarelli。

A follow-up question on the balance sheet. So I know you mentioned there were some timing issues, but vendors in this industry are well known for being very sensitive to the performance of their customers. And so I guess the question is, are some of your vendors starting to change terms or maybe are your payment terms on private goods different than or shorter than branded goods? Because if we just had timing differences, I guess I would think the AP ratio would improve a little bit more than what you suggested.

資產負債表上的後續問題。所以我知道你提到有一些時間問題，但眾所周知，這個行業的供應商對客戶的表現非常敏感。所以我想問題是，您的一些供應商是否開始更改條款，或者您對私人商品的付款條件是否不同於或短於品牌商品？因為如果我們只是有時間上的差異，我想我會認為 AP 比率會比你建議的提高一點點。

No, there hasn't been any significant changes in terms. Really, the timing is associated with the investments we started to make in the back half of the year, and those invoices are coming due in the first quarter, and we largely anticipated that. So it wasn't a significant surprise to us and as I said, it will even out over the balance of the year, and we'll see improvement in the AP ratio as the year goes on.

不，條款沒有任何重大變化。實際上，時間與我們在今年下半年開始進行的投資有關，這些發票將在第一季度到期，我們在很大程度上預料到了這一點。所以這對我們來說並不是什麼大驚喜，正如我所說，它會在今年餘下的時間裡保持平衡，隨著時間的推移，我們會看到 AP 比率有所改善。

So if inventory is going to continue to go up then you would expect AP to increase more than whatever increase is still happening on the inventory side?

因此，如果庫存將繼續上升，那麼您會期望 AP 的增長超過庫存方面仍在發生的任何增長嗎？

Yes. Well, ideally, we start to sell through that inventory, and that will also help our AP ratio, but yes, that's the way to think about it.

是的。好吧，理想情況下，我們開始通過該庫存進行銷售，這也將有助於我們的 AP 比率，但是，是的，這就是考慮它的方式。

The next question comes from Steven Forbes from Guggenheim Partners.

下一個問題來自 Guggenheim Partners 的 Steven Forbes。

Good morning. Maybe just to start with a quick follow-up on a prior comment. As I think you mentioned you expect the most deleverage on EBIT margin in the second quarter, so can you just expand on what's driving that? Is it comp compares? Or is there something in the margin profile that we should be aware of that you're cycling as well?

早上好。也許只是從快速跟進之前的評論開始。正如我認為你提到的那樣，你預計第二季度的息稅前利潤率去槓桿化程度最高，那麼你能否擴大驅動因素？它是comp比較嗎？或者在保證金概況中有什麼我們應該知道你也在騎自行車嗎？

Yes. I mean part of it is inflation in terms of we expect that to moderate more in the back half than in the first half, so we're dealing with that. And then it's really just finishing up the availability once we get that availability where we wanted. More improvement in sales in the back half than as compared to the second quarter.

是的。我的意思是，部分原因是通貨膨脹，我們預計下半年的通貨膨脹會比上半年更緩和，所以我們正在處理這個問題。一旦我們在我們想要的地方獲得可用性，它就真的完成了可用性。與第二季度相比，下半年的銷售情況有所改善。

And then just a quick follow-up. If we think back to the Analyst Day, the transformation margin expansion time line exhibit and so forth, can you just talk about whether we're sort of progressing against that time line or if any of these changes in the capital expenditure profile of the business or investment agenda has impacted that time line for the supply chain transformation in any such way?

然後只是快速跟進。如果我們回想一下分析師日、轉型利潤率擴張時間表等等，您能否談談我們是否正在按照該時間表取得進展，或者企業的資本支出狀況是否發生了這些變化或投資議程是否以任何此類方式影響了供應鏈轉型的時間表？

Sure. Well, first of all, a lot's changed since the day we made that presentation, and the biggest thing is the competitive environment in pro. And so our objective is to regain momentum in our professional business, that's our largest business. It's vitally important for the company. We are getting back on our front foot on the top line in pro. We're going to improve our availability. We've got to be where we need to be on the pricing and raising the bar on execution. So relative to what we discussed there, we are continuing to execute all of the margin expansion initiatives that we laid out. This is a new dynamic that we're dealing with, and we're going to address it directly.

當然。好吧，首先，自從我們做了那個演講那天以來，發生了很多變化，最重要的是職業比賽的競爭環境。因此，我們的目標是重振我們專業業務的勢頭，這是我們最大的業務。這對公司來說至關重要。我們正在重新站在職業選手的前列。我們將提高我們的可用性。我們必須在定價和提高執行標準方面處於我們需要的位置。因此，相對於我們在那裡討論的內容，我們將繼續執行我們制定的所有利潤擴張計劃。這是我們正在處理的新動態，我們將直接解決它。

The next question comes from Henry (inaudible) From UBS.

下一個問題來自瑞銀集團的 Henry（聽不清）。

This is Michael Lasser from UBS. Tom, so you're well into the transformation that you started many years ago. And yet, it does seem like everything is taking a step back between margins, free cash flow generation, you needed to cut the guidance, cut CapEx. Why is this all happening now? Is it something that's internally catalyzed or more externally catalyzed?

我是來自瑞銀的 Michael Lasser。湯姆，所以你很好地進入了你多年前開始的轉變。然而，似乎一切都在利潤率、自由現金流生成之間倒退，你需要削減指導，削減資本支出。為什麼現在會發生這一切？它是內部催化的還是外部催化的？

Yes. I think it's similar to the last question, Mike. I think it is external. I mean, obviously, the dynamic has changed on the pro side. You would say that, that's probably been ongoing here for the last 1.5 years anyway, and that's a fair comment. We are addressing that competitive dynamic.

是的。我認為這與上一個問題類似，邁克。我認為是外在的。我的意思是，很明顯，動態已經在專業方面發生了變化。你會說，不管怎麼說，過去 1.5 年來這可能一直在進行，這是一個公平的評論。我們正在應對這種競爭動態。

I think I've got very strong resilient team here at Advance. We've built a great team, both in the corporate office and in the field. We faced adversity before, and we've overcome and I've no doubt that we'll overcome the challenges we face today. But we've got to address what's in front of us right now, and that's about driving operational improvement and regaining share of wallet with our pro customers. Now we are going to continue to execute against the things that we believe will continue to improve our business that were part of the transformation time lines that we've discussed.

我認為我在 Advance 擁有非常強大的彈性團隊。我們在公司辦公室和現場都建立了一支優秀的團隊。我們以前遇到過逆境，我們已經克服了，而且我堅信我們將克服今天面臨的挑戰。但我們必須解決現在擺在我們面前的問題，那就是推動運營改進並重新獲得我們專業客戶的錢包份額。現在，我們將繼續執行我們認為將繼續改善我們業務的事情，這些事情是我們討論過的轉型時間表的一部分。

And Tom, are you seeing the challenges in your pro business across both the legacy Advance and Carquest businesses as well as Worldpac, maybe a way to address that question, is can you give us a sense for how Worldpac performed in the quarter?

湯姆，你是否看到了傳統 Advance 和 Carquest 業務以及 Worldpac 的專業業務面臨的挑戰，也許是解決這個問題的一種方式，你能告訴我們 Worldpac 在本季度的表現嗎？

Yes. Worldpac is doing fine. I mean the multiyear stacks on Worldpac look terrific, so we continue to perform very well at Worldpac. Our challenges on pro are isolated largely to the Advance Pro business.

是的。 Worldpac 做得很好。我的意思是 Worldpac 的多年堆棧看起來很棒，所以我們繼續在 Worldpac 上表現出色。我們在 pro 方面的挑戰主要與 Advance Pro 業務隔離。

The next question comes from Bobby Griffin from Raymond James.

下一個問題來自 Raymond James 的 Bobby Griffin。

This is Mitch Ingles for Bobby. My first question is, if the competitive landscape in the pro segment continues to be challenging and passing through price increases is not an option, what strategies or actions do you have or need to implement in order to rebuild and improve the gross margin in your pro business?

這是鮑比的米奇英格爾斯。我的第一個問題是，如果專業領域的競爭格局繼續充滿挑戰並且通過價格上漲不是一種選擇，那麼您有或需要實施哪些策略或行動以重建和提高您的專業領域的毛利率商業？

It's -- we talked a little bit about in the script about our category management process. I think that's the single biggest opportunity that we have. It involves a pretty comprehensive approach siege category, where we're essentially looking at sourcing shelf space, all of the things that are part of category management and will work collaboratively with our supplier partners to mutually drive sales and profit. I mean I think it's really important that both of us benefit from it, but that would be the single biggest driver. Supply chain remains an opportunity. Our new Chief Supply Chain Officer, is getting really good momentum with his team. There'll still be further opportunities there as well.

它是 - 我們在腳本中談到了一些關於我們的類別管理流程。我認為這是我們擁有的最大的機會。它涉及一個相當全面的方法圍攻類別，我們基本上是在尋找採購貨架空間，所有這些都是類別管理的一部分，並將與我們的供應商合作夥伴合作，共同推動銷售和利潤。我的意思是我認為我們雙方都從中受益非常重要，但這將是最大的驅動力。供應鏈仍然是一個機會。我們的新任首席供應鏈官與他的團隊取得了良好的勢頭。那裡也會有更多的機會。

Got it. And on that subject, can you elaborate on what the supply chain headwinds were in the quarter that led to the deleverage? And what steps are taken to mitigate these going forward? And you previously mentioned on the last call about some of the consolidation opportunities in the supply chain, so any updates there?

知道了。關於這個主題，您能否詳細說明導致去槓桿化的季度供應鏈逆風是什麼？未來採取了哪些措施來緩解這些問題？你之前在上次電話會議上提到過供應鏈中的一些整合機會，那麼有什麼更新嗎？

Yes. I mean the primary deleverage point was the wage inflation that we saw for our labor in the distribution centers. We also had some deleverage of our newer DCs as we get them up to capacity, so we'll naturally get improvement there as we get the distribution centers serving a full slate of stores. It's a bit of an iterative process where you bring a number of stores online. It starts at a lower number until it works up to its full capacity. And once it does that, we'll get much better leverage there, but those are the 2 big ones. And I'll turn it over to Tom on the consolidation part of your question.

是的。我的意思是，主要的去槓桿化點是我們在配送中心看到的勞動力工資上漲。我們還對較新的 DC 進行了一些去槓桿化，因為我們讓它們達到了容量，因此當我們讓配送中心為所有商店提供服務時，我們自然會在那裡得到改進。這是一個迭代過程，您將許多商店帶到網上。它從一個較低的數字開始，直到它達到它的全部容量。一旦它做到了這一點，我們就會在那裡獲得更好的槓桿作用，但那些是兩個大的。關於你問題的整合部分，我會把它交給湯姆。

Yes. So what we talked about is that our long-term vision for pro is really to leverage the entirety of our enterprise assets and provide a superior customer experience. As you know, the pro margins are lower than the DIY margins, which results in a natural channel mix headwind, so we're testing variations of how we might better leverage the entirety of our enterprise assets. We talked about Toronto in our last call. We're seeing good progress up there, and we see that as an opportunity. There's still work to be done to optimize it, but we believe there's potential to go further there. And the end-state goal is pretty simple, superior customer experience, accelerate the pro growth while expanding margins and potentially reduce inventory, so more to come there.

是的。所以我們談到的是，我們對 pro 的長期願景實際上是利用我們的全部企業資產並提供卓越的客戶體驗。如您所知，專業利潤率低於 DIY 利潤率，這導致自然的渠道組合逆風，因此我們正在測試如何更好地利用整個企業資產的變化。我們在上次通話中談到了多倫多。我們在那裡看到了良好的進展，我們認為這是一個機會。優化它還有很多工作要做，但我們相信有可能在這方面走得更遠。最終狀態的目標非常簡單，卓越的客戶體驗，加速專業增長，同時擴大利潤率並可能減少庫存，因此會有更多。

The next question comes from Seth Sigman from Barclays.

下一個問題來自巴克萊銀行的 Seth Sigman。

So my question is mainly on investments. It does seem like there is more of a message today of investing to drive higher sales productivity, which I think is still the biggest gap versus your peers, and I think that's both a retail issue and a professional issue. So the question is really beyond just price, are there other areas that you may still need to lean into incrementally from an investment perspective thinking about store investments, labor, et cetera? And could those investments potentially extend into next year?

所以我的問題主要是關於投資。今天似乎有更多關於投資以提高銷售效率的信息，我認為這仍然是與同行最大的差距，我認為這既是零售問題，也是專業問題。所以問題真的不僅僅是價格，從投資的角度考慮商店投資、勞動力等，是否還有其他領域你可能仍然需要逐步傾斜？這些投資是否有可能延續到明年？

Yes. Good question, Seth. And you're absolutely right. I mean the single biggest difference between our peers and ourselves is that. They have significantly higher throughput in their boxes, so we believe we're making -- we're obviously talking about availability. That's an inventory investment and making sure we get more parts closer to the customer, but beyond that, we've already made substantial investments in our people through our field of frontline stock ownership program, so that's a big one that we've already made.

是的。好問題，賽斯。你是絕對正確的。我的意思是我們的同齡人和我們自己之間最大的區別就是這一點。他們在他們的盒子裡有更高的吞吐量，所以我們相信我們正在製造——我們顯然是在談論可用性。這是一項庫存投資，可確保我們將更多零件更貼近客戶，但除此之外，我們已經通過我們的前線持股計劃領域對我們的員工進行了大量投資，因此這是我們已經做出的一項重大投資.

We're going to continue to look for ways to drive our E-commerce business, which has been very successful. In terms of DIY, we're actually pleased with our performance there and our relative performance. We've really got to get this pro business and share of wallet within our pro business back to where it needs to be. And from there, obviously, we'll drive our sales per store and obviously, profit per store.

我們將繼續尋找方法來推動我們非常成功的電子商務業務。在 DIY 方面，我們實際上對我們在那裡的表現以及我們的相對錶現感到滿意。我們真的必須讓這項專業業務和我們專業業務中的錢包份額回到需要的位置。從那裡，顯然，我們將推動每家商店的銷售額，顯然，每家商店的利潤。

Okay. And then just to follow up on the price investments specifically. Can you help us frame how off your pricing has been relative to peers and perhaps the scope of the changes that you're making, looking at the percent of the assortment, maybe the depth of the changes? And then stepping back, if you think about how some of your competitors have sharpened prices over the last 2 years, that's also been combined with other improvements, right, in stock availability, service, some of which you've already talked about. But I guess, ultimately, what gives you the confidence today? I understand the gap in performance, but what gives you the confidence today to make those big changes?

好的。然後專門跟進價格投資。您能否幫助我們確定您的定價相對於同行的偏離程度，以及您所做的更改的範圍，查看分類的百分比，也許是更改的深度？然後退一步，如果你想想你的一些競爭對手在過去兩年裡是如何提高價格的，那也與其他改進相結合，正確的，在庫存可用性、服務方面，你已經談到了其中的一些。但我想，最終，是什麼給了你今天的信心？我理解性能差距，但今天是什麼讓您有信心做出這些重大改變？

Yes. We've seen really good progress in many of our stores and many of our categories with the actions we're taking. We got to just continue to do what we've been talking about on the call, which is a kind of a back-to-basics approach of improving our availability, making sure our competitive price indices are there and raising the bar on execution. So where we have that in place Seth, we're seeing really, really strong performance, and we just need to replicate that further across the chain.

是的。通過我們正在採取的行動，我們已經在我們的許多商店和我們的許多類別中看到了非常好的進展。我們必須繼續做我們在電話會議上一直在談論的事情，這是一種回歸基本的方法來提高我們的可用性，確保我們有競爭力的價格指數並提高執行標準。因此，在我們擁有 Seth 的地方，我們看到了非常非常強大的性能，我們只需要在整個鏈中進一步複製它。

Can you just help us with the scope of the changes, maybe looking at how much of the assortment you're actually changing?

您能否幫助我們了解更改的範圍，也許看看您實際更改了多少分類？

Well, we're not changing the assortment. We're improving availability, right? I mean, we're increasing what we call our assortment rates and our on-hand rates. So what is designed to go into a store, 22,000 SKUs in an autoparts store, what do we want in the back room, so we're improving the quality and composition of the assortment in the back room. And when we do that, we see significant improvement in our sales.

好吧，我們不會改變分類。我們正在提高可用性，對嗎？我的意思是，我們正在提高我們所謂的分類率和現有率。那麼什麼是設計進入商店，汽車配件商店的 22,000 個 SKU，我們想要在後台的什麼，所以我們正在改善後台的分類質量和組成。當我們這樣做時，我們看到銷售額有了顯著提高。

I mean the most important thing in our business, as you hear from all of us, is availability, so that's the #1 driver. And of course, you mentioned the investments from others, that's happened over the last 2 years, so we've had to essentially replicate that investment this year in terms of making sure that we're in line with where we need to be on competitive price by category.

我的意思是，正如您從我們所有人那裡聽到的那樣，我們業務中最重要的事情是可用性，因此這是排名第一的驅動程序。當然，你提到了其他人的投資，這是過去兩年發生的事情，所以我們今年必須從根本上複製這項投資，以確保我們符合我們需要的競爭優勢按類別定價。

The next question comes from Zack Fadem from Wells Fargo.

下一個問題來自富國銀行的 Zack Fadem。

Tom, following up on the last question, comparing you to your peers, curious if you could talk to the structural or infrastructure differences that you believe may be having an impact that drives the lower throughput and thus the need for higher investment? And then specifically looking at your commercial business, curious to what extent the execution improvement can narrow the gap versus just having a structural difference?

湯姆，跟進最後一個問題，將您與同行進行比較，想知道您是否可以談談您認為可能會產生影響的結構或基礎設施差異，從而導致吞吐量降低，從而需要更高的投資？然後專門查看您的商業業務，好奇執行改進與僅具有結構差異相比可以在多大程度上縮小差距？

Yes. I mean I think infrastructure-wise, we have the assets we need to compete. I mean we've got, obviously, a large pro business. It is different than our peers, given that we have the Worldpac business, which is fully integrated. We've got the Advance business. You put all of the large buildings that we can have auto parts in, we have over 500 of those, so we're doing a much better job leveraging the entirety of the enterprise assets and there's still room for improvement in that area.

是的。我的意思是，我認為在基礎設施方面，我們擁有競爭所需的資產。我的意思是，很明顯，我們有一個大型專業企業。它不同於我們的同行，因為我們擁有完全整合的 Worldpac 業務。我們有 Advance 業務。你把我們可以擁有汽車零部件的所有大型建築都放在裡面，我們有 500 多座這樣的建築，所以我們在利用整個企業資產方面做得更好，並且在該領域仍有改進的空間。

In terms of execution, we're going to continue to make sure that we're building the relationships that we have with our pro customers. We're making the number of sales calls we need to make with our account managers that are out there. Bob Cushing has terrific relationships with the large strategic accounts that are going to continue to grow at outsized rates over the next several years, so we have a lot of things that we can leverage on the pro side of the house to drive growth going forward.

在執行方面，我們將繼續確保我們正在與我們的專業客戶建立關係。我們正在與我們的客戶經理進行必要的銷售電話數量。 Bob Cushing 與大型戰略客戶有著良好的關係，這些客戶將在未來幾年繼續以超快​​的速度增長，因此我們可以利用很多東西來推動未來的增長。

Got it. And then, Jeff, a 2-part question for you. First one, following up on the Q2 commentary, is there any guidepost that you can give us on magnitude with respect to Q2 comps where you're tracking today and maybe gross margin versus SG&A? And then second, you mentioned doing a corporate restructuring in Q1. Can you help us understand the cost impact in Q1 and then expected savings and productivity for the rest of the year?

知道了。然後，Jeff，給你一個由兩部分組成的問題。第一個，跟進第二季度的評論，您是否可以就您今天跟踪的第二季度比較以及毛利率與 SG&A 的規模向我們提供任何指導？其次，你提到在第一季度進行公司重組。您能否幫助我們了解第一季度的成本影響以及今年剩餘時間的預期節約和生產力？

Yes, I'll start with the second one first. The cost in the quarter was relatively low. It was low single-digit millions, so it was not a significant investment. We haven't broken out the savings in the balance of the year, but we -- it is sizable, and we factored that into the revised guidance. It's something we can quite easily track. And so far, we're measuring up against our expectations. So from that standpoint, we feel pretty good.

是的，我先從第二個開始。本季度的成本相對較低。這是幾百萬的低個位數，因此這不是一項重大投資。我們沒有在今年的餘額中打破儲蓄，但我們 - 這是相當大的，我們將其納入修訂後的指導方針。這是我們可以很容易追踪的東西。到目前為止，我們正在衡量我們的預期。所以從這個角度來看，我們感覺很好。

In terms of second quarter, again, we expect deleverage both in gross margin and SG&A, probably be more in gross margin than it will SG&A, but we do expect it to be a fairly significant deleverage in the second quarter.

就第二季度而言，我們再次預計毛利率和 SG&A 的去槓桿化，毛利率可能比 SG&A 更高，但我們確實預計第二季度將是相當顯著的去槓桿化。

The next question comes from David Bellinger from ROTH Capital Partners.

下一個問題來自 ROTH Capital Partners 的 David Bellinger。

Going back to the DIFM price gaps, so with the changes you've now made, are those gaps largely closed versus your direct competitors? Are you going even further and taking price below other market participants in order to recapture some of the share that's been lost over the past year or so?

回到 DIFM 的價格差距，那麼隨著您現在所做的改變，這些差距與您的直接競爭對手相比是否在很大程度上縮小了？您是否會走得更遠，將價格低於其他市場參與者，以重新奪回過去一年左右失去的部分份額？

Well, first of all, David, we are where we need to be. Obviously, it is market by market, so we look at high share market, low share market. Those types of things will influence where we target by market. But in general, we are where we need to be. And that's what's factored into the full year guide because that -- where we need to be is significantly lower than we had planned from a price realization standpoint, so that's where we are.

好吧，首先，大衛，我們到了我們需要去的地方。顯然，這是一個市場一個市場，所以我們看高份額市場，低份額市場。這些類型的事情將影響我們按市場定位的位置。但總的來說，我們在我們需要去的地方。這就是全年指南中考慮的因素，因為從價格實現的角度來看，我們需要達到的水平大大低於我們的計劃，所以這就是我們所在的位置。

Okay. And then a follow-up in regard to professional sales in general. There's been some concern around certain end customers shifting suppliers. Can you help us understand the breakdown of, I believe, it was a flattish pro sales comp this quarter. Maybe you can talk about average spend per customer in light of the inflation benefit versus any customer losses that occurred within the Q1 period?

好的。然後是一般專業銷售方面的跟進。人們對某些最終客戶轉移供應商感到擔憂。你能幫助我們理解這個季度的細分嗎？我相信這是一個持平的專業銷售公司。也許您可以根據通貨膨脹收益與第一季度內發生的任何客戶損失來談談每個客戶的平均支出？

We are seeing growth in average spend per customer, which is good. It's not where we'd like it to be. We want it to be higher because we want to recover. The biggest challenge we faced last year was share of wallet with existing customers. I mean we're now growing customers. The share of wallet is the opportunity that we're driving at, and we are growing average sales per customer, but it's not where we like it to be.

我們看到每個客戶的平均支出有所增長，這很好。這不是我們想要的地方。我們希望它更高，因為我們想要恢復。我們去年面臨的最大挑戰是與現有客戶分享錢包。我的意思是我們現在正在增加客戶。錢包的份額是我們正在推動的機會，我們正在增加每個客戶的平均銷售額，但這不是我們喜歡的地方。

The next question is from Seth Basham from Wedbush.

下一個問題來自 Wedbush 的 Seth Basham。

My question is also around the pricing environment. As you forecast improved performance on sales for the balance of the year, are you anticipating any competitive reaction pricing-wise?

我的問題也與定價環境有關。當您預測今年餘下時間的銷售業績會有所改善時，您是否預計會在定價方面產生任何競爭性反應？

Yes. We've obviously considered different scenarios, Seth. We do expect it to be very competitive, so Jeff mentioned essentially flat on price realization, which is well below our plan. If that changes to the positive or the negative, we will respond.

是的。賽斯，我們顯然已經考慮過不同的情況。我們確實預計它會非常有競爭力，因此 Jeff 提到價格實現基本持平，這遠低於我們的計劃。如果這改變為正面或負面，我們將作出回應。

Got it. Understood. And my follow-up question is around private label brands performance. Can you give us some more color on the overall performance for private label brands? You mentioned that you're still moving in the direction of private label brand or are you having pockets where you're having to roll back some of that new products because of underperformance?

知道了。明白了。我的後續問題是關於自有品牌的表現。你能給我們更多關於自有品牌整體表現的顏色嗎？你提到你仍在朝著自有品牌的方向發展，或者你是否有錢因為表現不佳而不得不撤回一些新產品？

On the contrary, I've been in a lot of stores over the last several weeks. I've met with a lot of customers. People like the quality of our Carquest branded product that we've moved to. So we're very pleased with the products, and we're continuing to improve the assortment rates in the stores and availability of those products. But clearly, we've got a winner in terms of the product quality itself. The return rates are much lower. The manufacturers we have chosen are OE suppliers, so very pleased with that.

相反，過去幾週我去過很多商店。我遇到過很多客戶。人們喜歡我們已經轉向的 Carquest 品牌產品的質量。所以我們對這些產品非常滿意，我們將繼續提高商店的分類率和這些產品的可用性。但很明顯，就產品質量本身而言，我們贏了。退貨率要低得多。我們選擇的製造商是 OE 供應商，對此非常滿意。

And just to add to that, we're seeing a benefit in the P&L from owned brand in terms of both dollars and rate, so it's executing well. We want to continue to push that product through because it's a benefit to the P&L as well.

更重要的是，我們看到自有品牌在美元和利率方面都有好處，所以它執行得很好。我們希望繼續推出該產品，因為它對損益表也有好處。

The next question is from Michael Baker from D.A. Davidson.

下一個問題來自 D.A. 的 Michael Baker。戴維森。

Okay. So it sounds like you got to where you needed to be in terms of price within the first quarter. Did you see any improvement in your sales trends as you did that or even I think we're, what, 4, 5 weeks, at least into the second quarter, are customers reacting at all to your -- getting closer to the other guys in price? Or if not, how long does that typically take, particularly in an industry where, as everyone said, it's not really driven by price?

好的。所以聽起來你在第一季度就達到了你需要的價格。當你這樣做時，你是否看到你的銷售趨勢有任何改善，甚至我認為我們是，至少在第二季度的 4、5 週內，客戶對你的反應有任何反應 - 與其他人的關係越來越近在價格？或者，如果不是，那通常需要多長時間，尤其是在一個正如每個人所說的那樣不是真正受價格驅動的行業中？

We are. Our customers are definitely responding. We moved -- I mentioned earlier, we were down mid-single digits on transactions in the fourth quarter. We were down low single digits on transactions in the first quarter, and we expect that to continue to improve. What's being offset there, if you talk about sales and comp is the average ticket is coming down with that as we continue to drive our units and transactions, we're seeing average ticket come down.

我們是。我們的客戶肯定會做出回應。我們搬家了——我之前提到過，我們在第四季度的交易量下降了中個位數。我們在第一季度的交易量下降了個位數，我們預計這種情況會繼續改善。那裡被抵消的是什麼，如果你談論銷售和補償，隨著我們繼續推動我們的單位和交易，平均票價正在下降，我們看到平均票價下降了。

And so even with that still coming down, you're not -- it sounds like you're not going to invest any more in price, at least unless others respond, so how do you intend to then win back share if the pricing is now where you think it needs to be?

因此，即使價格仍在下降，你也不會 - 聽起來你不會再投資價格，至少除非其他人做出回應，所以如果定價是，你打算如何贏回份額現在你認為它需要在哪裡？

We feel we are -- we will win back share because we are seeing improvement as time goes on, on units and transactions. So as our assortment rate and availability improves, we're seeing improvements there, so we do believe that will continue as the year goes on.

我們覺得我們是——我們將贏回份額，因為隨著時間的推移，我們在單位和交易方面看到了改善。因此，隨著我們的分類率和可用性的提高，我們看到了那裡的改進，所以我們相信隨著時間的推移，這種情況將繼續下去。

The next question comes from Brian Nagel from Oppenheimer.

下一個問題來自 Oppenheimer 的 Brian Nagel。

This is William Dossett on for Brian Nagel. So you mentioned that the structural underpinnings of the sector remained positive in your view. You highlighted the aging fleet, an improving miles driven. Just wanted to ask, have there been any changes to your view of near-term demand trends in the industry at all?

這是 William Dossett 代替 Brian Nagel。因此，您提到該行業的結構性支撐在您看來仍然是積極的。您強調了老化的車隊，以及不斷改進的行駛里程。只是想問一下，您對行業近期需求趨勢的看法是否有任何變化？

Not really. I mean, if you look -- I mean I know there's been things written over the last several weeks or so about that. I mean we still see the industry growth at 3% to 5% this year. Based on those, as you said, underlying primary drivers of demand all continuing to improve, you're still seeing pressure on new car sales. You're seeing people keeping their vehicles longer. That's typically been very good for our industry, so we see 3% to 5% growth this year.

並不真地。我的意思是，如果你看 - 我的意思是我知道在過去幾週左右的時間裡已經寫了一些關於它的東西。我的意思是我們今年仍然看到行業增長 3% 到 5%。正如您所說，基於這些，需求的潛在主要驅動因素都在持續改善，您仍然看到新車銷售面臨壓力。你看到人們將他們的車輛保持更長的時間。這通常對我們的行業非常有利，因此我們預計今年將增長 3% 至 5%。

We have no further questions, so I'll hand the call back to Tom Greco for any concluding remarks.

我們沒有其他問題了，所以我會把電話轉回給 Tom Greco，聽取任何總結性意見。

Well, thanks again for joining us this morning. As I shared at the outset of the call, Q1 was challenging and our financial results were well below expectations. We know there's work to do, and we remain focused on increasing parts availability, sustaining our competitive price targets and improving our field execution. We're committed to executing our long-term strategy to overcome our recent challenges and ensure that Advance is positioned for future success. We look forward to sharing more in August.

好吧，再次感謝您今天早上加入我們。正如我在電話會議開始時分享的那樣，第一季度充滿挑戰，我們的財務業績遠低於預期。我們知道還有很多工作要做，我們仍然專注於提高零件可用性、維持我們有競爭力的價格目標並改進我們的現場執行力。我們致力於執行我們的長期戰略，以克服我們最近的挑戰，並確保 Advance 為未來的成功做好準備。我們期待在八月分享更多。

This concludes today's call. Thank you very much for your attendance. You may now disconnect your lines.

今天的電話會議到此結束。非常感謝您的出席。您現在可以斷開線路。