領先汽車配件 (AAP) 2024 Q2 法說會逐字稿

Welcome to the Advanced Auto Parts second-quarter 2024 conference call. Before we begin, Elisabeth Eisleben, Senior Vice President, Communications and Investor Relations, will make a brief statement concerning forward-looking statements that will be discussed on this call.

歡迎參加先進汽車零件 2024 年第二季電話會議。在我們開始之前，傳播和投資者關係高級副總裁 Elisabeth Eisleben 將就本次電話會議將討論的前瞻性陳述發表簡短聲明。

Good morning, and thank you for joining us today to discuss our second quarter 2024 results. I'm joined today by Shane O'Kelly, President and Chief Executive Officer; and Ryan Grimsland, Executive Vice President and Chief Financial Officer. Following management's prepared remarks, we will take questions.

早安，感謝您今天加入我們討論我們 2024 年第二季的業績。今天，總裁兼執行長 Shane O'Kelly 也加入了我的行列。瑞安·格里姆斯蘭（Ryan Grimsland），執行副總裁兼財務長。在管理層準備好發言後，我們將回答問題。

Before we begin, please be advised that Management's remarks today contain forward-looking statements. All statements other than statements of historical fact are forward-looking statements, including but not limited to, statements regarding a strategic and operational review initiatives, plans, projections, expectations for the future and the anticipated sale of our Worldpac business.

在我們開始之前，請注意，管理層今天的言論包含前瞻性陳述。除歷史事實陳述外的所有陳述均為前瞻性陳述，包括但不限於有關策略和營運審查舉措、計劃、預測、未來預期以及 Worldpac 業務預期出售的陳述。

Actual results could differ materially from those projected or implied by the forward-looking statements. Additional information about forward-looking statements and factors that could cause actual results to differ can be found on the forward-looking statements in our earnings release and risk factors in our most recent Form 10-K and subsequent filings made with the SEC.

實際結果可能與前瞻性陳述中預測或暗示的結果有重大差異。有關前瞻性陳述和可能導致實際結果不同的因素的更多信息，請參閱我們的收益發布中的前瞻性陳述以及我們最近的 10-K 表格和隨後向 SEC 提交的文件中的風險因素。

Now let me turn the call over to Shane O'Kelly. Shane?

現在讓我把電話轉給肖恩·奧凱利。謝恩？

Thank you, Elisabeth, and good morning, everyone. I would like to start by expressing my appreciation for the hard work exhibited by our team members over the past several months. During the second quarter, our frontline team navigated a weak demand environment as consumers continue to feel the weight of an uncertain macro-economic climate.

謝謝你，伊莉莎白，大家早安。首先，我謹對我們的團隊成員在過去幾個月中所表現出的辛勤工作表示讚賞。在第二季度，由於消費者繼續感受到宏觀經濟環境不確定的壓力，我們的第一線團隊在疲軟的需求環境中度過了難關。

Despite the headwinds, our team maintain focus on serving customers and driving progress on our strategic priorities. We ended the second quarter with positive comparable sales growth of 0.4%, led by our Pro business. DIY remain pressured but improved sequentially.

儘管面臨阻力，我們的團隊仍專注於服務客戶並推動我們的策略重點取得進展。在 Pro 業務的帶動下，我們第二季末的可比銷售額成長了 0.4%。 DIY仍面臨壓力，但逐漸有所改善。

Our second quarter comp performance is a step in the right direction. Moreover, the opportunity ahead of us to drive sustainable growth, recapture market share and position advance for long-term value creation remain substantial. Turnarounds take time, but our team is solid and putting in the work. The macro environment is challenging. Retailers are lowering expectations, and we're starting from a lower baseline relative to the industry.

我們第二季的業績表現是朝著正確方向邁出的一步。此外，我們面前推動永續成長、奪回市場份額和提升地位以創造長期價值的機會仍然很大。扭轉局面需要時間，但我們的團隊很紮實，並且正在投入工作。宏觀環境充滿挑戰。零售商正在降低預期，而我們的起點相對於行業來說較低。

On the other hand, we successfully managed through a difficult quarter and navigated a complex M&A process with the successful Worldpac transaction that substantially strengthens our balance sheet. We know what we need to do from here, as you will hear later in this call.

另一方面，我們成功度過了一個困難的季度，並透過成功的 Worldpac 交易完成了複雜的併購流程，大大增強了我們的資產負債表。我們知道我們需要從這裡做什麼，正如您稍後將在本次電話會議中聽到的那樣。

Looking forward, some of our investments are around price. Some are related to supply chain and others on optimizing productivity. All are focused on reigniting growth and improving our margins. The slope of the path will also be determined by a 1,000 smaller decisions made by our team and not merely dictated by a top-down projection.

展望未來，我們的一些投資是圍繞著價格展開的。有些與供應鏈有關，有些則與優化生產力有關。所有這些都集中在重振成長和提高利潤率。路徑的坡度也將由我們團隊做出的 1,000 個較小決策決定，而不僅僅是由自上而下的預測決定。

As a team, we keep in mind that even incremental improvements can yield substantial upside. Selling Worldpac and solidifying our balance sheet, our early any wins, and it is an exciting time to be in Advanced Auto Parts team members.

作為一個團隊，我們牢記即使是漸進式改進也可以帶來巨大的好處。出售 Worldpac 並鞏固我們的資產負債表，這是我們早期的任何勝利，對於成為高級汽車零件團隊成員來說，這是一個激動人心的時刻。

When I joined Advanced last September, we had just initiated a strategic and operational review of the business. We have been executing against decisive actions to simplify our business and return to the fundamentals of selling auto parts. Progress in these actions is setting the stage for a new future for advance.

當我去年九月加入 Advanced 時，我們剛剛啟動了對業務的策略和營運審查。我們一直在採取果斷行動，簡化我們的業務，回歸銷售汽車零件的根本。這些行動的進展正在為新的未來發展奠定基礎。

Let's review that progress and talk about the path ahead for the company.

讓我們回顧一下這一進展並討論公司未來的發展道路。

Number one, the strategic review of Worldpac and the Canadian business. We are pleased to have completed this process, which sharpens our focus on the blended box. Second, reducing our costs to become more competitive while investing in the front line. These investments are energizing the frontline and in particular, our Pro sales teams. Third, making organizational changes to position us for success through our internal promotions and our external hires. We are putting outstanding talent in key roles. Four, consolidating our supply chain, which unlocks better parts, availability and service for our customers, which improves the cost position of the company. And fifth, improving the productivity of all of our assets, which will help narrow our operating margin gap to the industry.

第一，對 Worldpac 和加拿大業務的策略審查。我們很高興完成了這一過程，這使我們更加關注混合盒。其次，在對第一線進行投資的同時，降低成本，提高競爭力。這些投資為第一線人員，特別是我們的專業銷售團隊注入了活力。第三，進行組織變革，透過內部晉升和外部招募使我們成功。我們將傑出人才放在關鍵職位上。第四，鞏固我們的供應鏈，為我們的客戶提供更好的零件、可用性和服務，從而改善公司的成本狀況。第五，提高我們所有資產的生產力，這將有助於縮小我們與產業的營業利潤率差距。

Starting with the first decisive action regarding Worldpac, today, we announced that we have entered into a definitive agreement to sell the Worldpac business for $1.5 billion in cash to The Carlyle Group. The sale process generated strong interest, and we are pleased with the outcome. We plan to use the net proceeds to strengthen our balance sheet and invest in the core business.

從今天對 Worldpac 採取的第一個決定性行動開始，我們宣布已簽訂最終協議，以 15 億美元現金將 Worldpac 業務出售給凱雷投資集團。銷售過程引起了人們的強烈興趣，我們對結果感到滿意。我們計劃利用所得款項淨額來加強我們的資產負債表並投資於核心業務。

The transaction is expected to close before the end of the year. And on behalf of everyone at Advance, I would like to thank the more than 5,000 Worldpac team members for their dedication over the last 10 years.

該交易預計將在今年年底前完成。我謹代表 Advance 的所有人，感謝 5,000 多名 Worldpac 團隊成員在過去 10 年中的奉獻精神。

Reaching an agreement to sell Worldpac is a major milestone for the company. And our vision from here is to further our commitment to the blended box model servicing both pro and DIY customers with our well-established retail footprint augmented by our independents. That's our path forward, and it's a proven service model in the auto parts industry.

達成出售 Worldpac 的協議是該公司的一個重要里程碑。我們的願景是進一步致力於混合盒模型，為專業客戶和 DIY 客戶提供服務，並透過獨立經銷商擴大我們成熟的零售足跡。這是我們前進的道路，也是汽車零件產業經過驗證的服務模式。

The sale of World pact fuels our vision by improving our balance sheet, streamlining our operations and enabling us to focus on one business model. With the Worldpac review now complete, I also want to provide an update on our Canadian assets.

世界公約的出售透過改善我們的資產負債表、簡化我們的營運並使我們能夠專注於一種業務模式來推動我們的願景。隨著 Worldpac 審查現已完成，我還想提供有關我們加拿大資產的最新資訊。

During the second quarter, I traveled to Canada and was impressed by the deep expertise and market knowledge that our long-tenured Canadian team brings to the business. Our business model aligns well with our US operations, and that team has consistently delivered strong performance. As a result, we have made the decision to retain our Canadian operations. I would like to thank our Canadian team for their patience during the review where they maintained an unwavering focus on serving our customers and I look forward to working with this team to grow the business.

第二季度，我去了加拿大，我們長期任職的加拿大團隊為企業帶來的深厚專業知識和市場知識給我留下了深刻的印象。我們的業務模式與我們在美國的業務非常契合，並且團隊始終如一地取得了強勁的業績。因此，我們決定保留加拿大業務。我要感謝我們的加拿大團隊在審核期間的耐心，他們堅定不移地專注於為我們的客戶提供服務，我期待與該團隊合作發展業務。

Moving to our second decisive action, reducing costs and reinvesting in our frontline. We have reduced costs and reinvested a portion of those savings in our frontline team. These investments have been particularly meaningful for our commercial account managers and our commercial parts pros as they are stepping up our Pro business efforts.

轉向我們的第二個決定性行動，降低成本並對我們的前線進行再投資。我們降低了成本，並將部分節省的資金重新投入到我們的第一線團隊中。這些投資對於我們的商業客戶經理和商業零件專業人士來說特別有意義，因為他們正在加強我們的專業業務努力。

During Q2, comp sales to up and down the street Pro's turn positive year-over-year compared with the decline in the first quarter. Our strategic Pro accounts also grew year-over-year, and we remain committed to serving them and growing our share across all pros segments. Along with that, we are igniting the field culture to become more customer focused and are reducing time spent on non-sales tasks, and we are putting greater emphasis on accountability.

第二季度，與第一季的下降相比，Pro 的同城銷售較去年同期轉正。我們的策略專業客戶也逐年成長，我們仍然致力於為他們提供服務並增加我們在所有專業領域的份額。同時，我們正在激發現場文化，變得更加以客戶為中心，並減少花在非銷售任務上的時間，我們更加重視問責制。

As part of this, we are continually seeking feedback from our frontline team members to identify gaps and take swift actions to improve our business. Lastly, we remain on track to deliver $50 million of indirect procurement savings by next year.

作為其中的一部分，我們不斷尋求第一線團隊成員的回饋，以找出差距並採取迅速行動來改善我們的業務。最後，我們仍有望在明年之前實現 5,000 萬美元的間接採購節省。

Our third decisive action is related to organizational changes. We welcomed our new Chief Merchandising Officer, Bruce Starnes in the second quarter, and now we've added talented individuals in additional critical merchandising functions. We have hired a new SVP leading assortment, visual merchandising and inventory management.

我們的第三個決定性行動與組織變革有關。我們在第二季度迎來了新任首席行銷長布魯斯·斯塔恩斯 (Bruce Starnes)，現在我們在其他關鍵的行銷職能中增加了才華橫溢的人員。我們聘請了一位新的高級副總裁，負責分類、視覺行銷和庫存管理。

We've added a new SVP for merchandising operations and pricing, and we've added a new VP of e-commerce. We have also realigned our marketing and e-commerce functions to now report into Bruce's organization for stronger collaboration. These leaders are enhancing our capabilities with respect to fundamental retail operations, and I look forward to the value that true merchandising excellence can bring to our business.

我們增加了一位新的銷售營運和定價高級副總裁，並且增加了一位新的電子商務副總裁。我們也重新調整了行銷和電子商務職能，現在向 Bruce 的組織報告，以加強合作。這些領導者正在增強我們在基本零售營運方面的能力，我期待真正的卓越行銷能為我們的業務帶來價值。

Early examples include number one, conducting more frequent and deeper line reviews to ensure that we have the right product, depth, breadth and cost. This year, we are on track to do 130 line reviews. Number two, assessing front and backroom assortments to improve relevancy and availability. And number three, coordinating marketing efforts to deliver great offers for our customers.

早期的例子包括第一，進行更頻繁和更深入的產品線審查，以確保我們擁有合適的產品、深度、廣度和成本。今年，我們預計將進行 130 條線路審核。第二，評估前台和後台的分類以提高相關性和可用性。第三，協調行銷工作，為我們的客戶提供優質的產品。

An example of all three of these things coming together is our recent launch of our break bundled programs. Our merchandising teams work is being augmented by recent pricing actions and the implementation of our new inventory management system. We now have more than 300,000 actively managed SKUs in our new system. We began this effort earlier this year and completed it in July of full six months ahead of our initial goal.

所有這三件事結合在一起的一個例子是我們最近推出的休息捆綁計劃。最近的定價行動和新庫存管理系統的實施增強了我們銷售團隊的工作。現在，我們的新系統中有超過 300,000 個主動管理的 SKU。我們在今年早些時候開始這項工作，並於 7 月完成，比我們最初的目標提前了整整六個月。

Our fourth action consolidation of our supply chain. At completion, our supply chain is expected to feature 14 large DCs operating on a single warehouse management system or WMS. This compares to our previous structure of 38 DCs of varying capacities operating with different systems. We remain on track with our WMS implementation with the recent completion of the Thomson Georgia DC conversion and expect our final DC to be completed by year's end. The 14 DCs will serve as nationwide replenishment nodes, while the remaining DCs will either be closed or converted to market hub.

我們的第四次行動是整合我們的供應鏈。竣工後，我們的供應鏈預計將擁有 14 個在單一倉庫管理系統或 WMS 上運作的大型配送中心。與我們之前的結構相比，我們有 38 個容量不同、運作不同系統的資料中心。隨著最近完成的湯姆森佐治亞 DC 改造，我們的 WMS 實施仍按計劃進行，預計我們的最終 DC 將在年底前完成。 14個配送中心將作為全國補貨節點，其餘配送中心將關閉或轉變為市場中心。

Speaking of market hubs as of mid-August, we have 10 market hubs in operation. We are creating these hubs by converting smaller DCs, updating existing stores or greenfielding new locations. The market hub is new to advance and each market hub has the potential to make an average of 80,000 SKUs available to a supported radius of stores on a same-day basis.

說到市場中心，截至 8 月中旬，我們有 10 個正在營運的市場中心。我們正在透過改造較小的配送中心、更新現有商店或新建新地點來創建這些中心。市場中心是新推進的，每個市場中心有潛力在同一天為支援的商店半徑提供平均 80,000 個 SKU。

We are gaining critical insights on managing hub inventory, along with determining efficient routes and replenishment frequency. We now expect to open at least 17 market hubs by the end of 2024 and believe that this updated schedule will enable us to effectively apply learnings and develop the right operational model for our hub service stores. We still expect to open 60 market hubs by 2026.

我們正在獲得有關管理樞紐庫存以及確定有效路線和補貨頻率的重要見解。我們現在預計到 2024 年底將開設至少 17 個市場中心，並相信更新後的時間表將使我們能夠有效地應用經驗教訓並為我們的中心服務店開發正確的營運模式。我們仍預計 2026 年將開設 60 個市場中心。

Lastly, our last decisive action is improving the productivity of all our assets. As we continue our strategic and operational review, we are amplifying our efforts to improve overall asset productivity. We believe we can reposition the core advance business to generate mid-single digit margins in the next few years.

最後，我們最後的決定性行動是提高我們所有資產的生產力。隨著我們繼續進行策略和營運審查，我們正在加強提高整體資產生產力。我們相信，我們可以重新定位核心先進業務，在未來幾年內產生中位數的利潤率。

And as we consider our long-term margin goals, we believe the following building blocks will help drive our future success. These building blocks include generating sustainable positive comp sales. This is supported by competitive market-based pricing, supported by our energized Funline team and improved inventory availability. Note that sales productivity is our biggest opportunity to close our performance gap relative to the industry.

當我們考慮我們的長期利潤目標時，我們相信以下建置模組將有助於推動我們未來的成功。這些建構模組包括產生可持續的正向補償銷售。這得益於基於市場的競爭性定價、充滿活力的 Funline 團隊和改進的庫存可用性的支援。請注意，銷售生產力是我們縮小與產業績效差距的最大機會。

Our second building block of store footprint. This also contributes to closing the sales productivity gap and now with our stronger combined real estate team, we are assessing our entire store footprint to identify markets where we can rationalize stores as well as where we can open new stores. The team is currently scaling capabilities to put us on a path to open at least 100 new stores per year located in markets of strength.

我們商店佔地面積的第二個組成部分。這也有助於縮小銷售生產力差距，現在憑藉我們更強大的聯合房地產團隊，我們正在評估我們的整個商店足跡，以確定我們可以在哪些市場合理化商店以及可以在哪些市場開設新商店。該團隊目前正在擴大能力，使我們能夠每年在強大的市場開設至少 100 家新店。

The next building block is improving gross margin. As mentioned, there are two primary tenants to unlocking better gross margins and they are merchandising excellence and supply chain. Value is created here from harmonizing first costs, improving DC throughput, optimizing transportation and many other activities.

下一個基石是提高毛利率。如前所述，有兩個主要租戶可以釋放更好的毛利率，他們是卓越的銷售和供應鏈。這裡的價值是透過協調初始成本、提高配送中心吞吐量、優化運輸和許多其他活動來創造的。

Our last building block is realigning our SG&A with our post-Worldpac operating structure. We will continue to invest in the required areas of our business, but at the same time, we are putting greater emphasis with our leaders to manage expenses and create operating leverage for our future.

我們的最後一個組成部分是根據 Worldpac 後的營運結構重新調整 SG&A。我們將繼續投資於我們業務所需的領域，但同時，我們更加重視我們的領導者管理費用並為我們的未來創造營運槓桿。

To conclude, as we look to a post Worldpac advance we are now executing against a clear vision of operating a single business that is poised for success as we revitalize core processes that focus on the fundamentals of selling auto parts. We plan to share more details on our outlook for the remaining business at our next earnings call in November.

總而言之，當我們展望後世界太平洋大會的進展時，我們現在正在執行一個明確的願景，即經營單一業務，隨著我們重振專注於銷售汽車零件基礎知識的核心流程，該業務有望取得成功。我們計劃在 11 月的下一次財報電話會議上分享更多有關剩餘業務前景的細節。

Now let me hand the call over to Ryan to discuss our financial results. Ryan?

現在讓我將電話轉交給瑞安，討論我們的財務表現。瑞安？

Thank you, Shane, and good morning, everyone. I would also like to start by thanking our dedicated team members for their commitment to delivering excellent customer service. Before diving into Q2 results and our revised outlook for the year. I'll provide some additional details related to the Worldpac transaction.

謝謝你，肖恩，大家早安。首先，我還要感謝我們敬業的團隊成員致力於提供卓越的客戶服務。在深入了解第二季業績和我們修訂後的今年前景之前。我將提供一些與 Worldpac 交易相關的其他詳細資訊。

Based on our reported financials over the last 12 months at the end of Q2, Worldpac contributed approximately $2.1 billion to the enterprise revenue and approximately $100 million to enterprise EBITDA. This EBITDA does not account for certain atypical items inter-company margins and some overhead costs related to supporting the Worldpac business.

根據我們在第二季末報告的過去 12 個月的財務數據，Worldpac 為企業收入貢獻了約 21 億美元，為企業 EBITDA 貢獻了約 1 億美元。該 EBITDA 未考慮某些非典型專案公司間利潤以及與支援 Worldpac 業務相關的一些管理費用。

These adjustments account for approximately $30 million of additional EBITDA. The transaction price of $1.5 billion will result in net proceeds of approximately $1.2 billion after taxes and transaction fees. These proceeds will strengthen our balance sheet and provide greater financial flexibility to invest in our business and execute our strategic plan.

這些調整帶來約 3000 萬美元的額外 EBITDA。 15 億美元的交易價格將帶來約 12 億美元的稅後淨收益和交易費用。這些收益將增強我們的資產負債表，並為投資我們的業務和執行我們的策略計劃提供更大的財務靈活性。

As Shane mentioned, we are amplifying our efforts to improve overall asset productivity to determine the most appropriate asset base and expense structure for the business. We are also evaluating investment needs by business function to effectively deploy transaction proceeds to accelerate growth.

正如肖恩所提到的，我們正在加強提高整體資產生產力，以確定最適合業務的資產基礎和費用結構。我們也按業務功能評估投資需求，以有效部署交易收益以加速成長。

The simplification of our enterprise structure will provide further clarity for our frontline and corporate support team. We believe that our strategic plan to prioritize sales productivity, combined with a balanced enterprise cost structure will help deliver margin expansion and earnings growth.

我們企業結構的簡化將為我們的第一線和企業支援團隊提供進一步的清晰度。我們相信，我們優先考慮銷售生產力的策略計劃與平衡的企業成本結構相結合將有助於實現利潤率擴張和獲利成長。

While near-term headwinds have obscured our initial progress. We remain confident in our approach and believe that the actions we are taking will position us well to generate mid-single digit margins in the next few years.

雖然近期的不利因素掩蓋了我們最初的進展。我們對我們的方法仍然充滿信心，並相信我們正在採取的行動將使我們能夠在未來幾年內實現中位數的利潤率。

Moving to our second quarter results. Net sales of $2.7 billion were flat to last year. Comparable store sales increased 0.4%, led by a positive pro com. DIY comps in the negative low single digit range, although improved compared with Q1. The reduction in net sales was largely driven by fewer independent Carquest locations, which largely offset the positive comparable sales performance.

轉向我們的第二季業績。淨銷售額為 27 億美元，與去年持平。在積極的 pro com 帶動下，可比商店銷售額增長了 0.4%。 DIY 比較處於負低個位數範圍內，儘管與第一季相比有所改善。淨銷售額的下降主要是由於獨立的卡奎斯特門市數量減少，這在很大程度上抵消了積極的可比銷售業績。

In terms of cadence for the second quarter, trends started off soft and improved as we moved through the quarter with the benefit of the tailwind from hot weather related sales and our strategic actions to drive growth among the pros. In addition to the strong performance in each of our categories, we continue to see positive results in Fluids & Chemicals & Engine Management.

就第二季的節奏而言，隨著我們整個季度的發展，受益於炎熱天氣相關銷售的順風以及我們推動專業人士成長的策略行動，趨勢開始疲軟並有所改善。除了每個類別的強勁表現外，我們還繼續在流體和化學品及發動機管理領域看到積極的成果。

Looking at our channels more closely, our professional business of positive comparable ticket and transactions in our DIY business, comparable ticket was also positive, although more than offset by decline in transactions.

更仔細地觀察我們的管道，我們的專業業務的可比門票和交易量為正，在我們的 DIY 業務中，可比門票也為正，儘管被交易量的下降所抵消。

Gross profit was $1.1 billion or 41.5% of net sales compared with 42.5% of net sales in Q2 of the prior year. On a year-over-year basis, gross margin was impacted by our strategic pricing investments and higher product costs.

毛利為 11 億美元，佔淨銷售額的 41.5%，而上年第二季佔淨銷售額的 42.5%。與去年同期相比，毛利率受到我們的策略性定價投資和更高的產品成本的影響。

Last quarter, we took initial actions to fix our competitive pricing with an investment of $40 million on an annualized basis. During the second quarter, we identified additional opportunities and expanded our actions more broadly across the assortment, resulting in a cumulative investment of over $100 million. I would note that these 2024 pricing changes are not in response to the challenging market dynamics.

上季度，我們採取了初步行動，以年化投資 4000 萬美元來確定具有競爭力的定價。第二季度，我們發現了更多機會，並在整個品類中更廣泛地擴大了我們的行動，累計投資超過 1 億美元。我要指出的是，2024 年的這些定價變化並不是為了因應充滿挑戰的市場動態。

Rather, we view these changes as necessary adjustments to reposition advance more competitively and to improve our price perception in the industry. Our field team has been driving awareness of these changes with regular customer visits. Initial feedback has been positive, and we believe that these pricing changes should put us in a stronger competitive position as demand begins to recover.

相反，我們認為這些變化是必要的調整，以重新定位更具競爭力並改善我們在行業中的價格認知。我們的現場團隊透過定期拜訪客戶來提高人們對這些變化的認識。最初的回饋是正面的，我們相信，隨著需求開始復甦，這些定價變化應該會讓我們處於更強大的競爭地位。

SG&A was $1 billion as a percentage of net sales SG&A was 38.9%, compared with 37.8% in the same quarter last year. The higher SG&A was driven by an increase in payroll expenses associated with wage investments and training for our frontline team, professional fees related to the strategic and operational review of our business. Costs associated with the remediation of our previously disclosed material weaknesses and other expenses associated with the implementation of our strategic plan.

SG&A 為 10 億美元，SG&A 佔淨銷售額的百分比為 38.9%，去年同期為 37.8%。 SG&A 較高的原因是與我們第一線團隊的薪資投資和培訓相關的薪資支出以及與我們業務的策略和營運審查相關的專業費用的增加。與修復我們先前揭露的重大缺陷相關的成本以及與實施我們的策略計劃相關的其他費用。

Operating margin of 2.7% deleveraged about 200 basis points compared with last year. Diluted earnings per share came in at $0.75 compared with $1.32 in the prior year quarter. And year-to-date, free cash flow was an outflow of $4.6 million compared with an outflow of 3$12 million in the prior year, driven by the timing of payables in the first half of last year.

營業利益率為 2.7%，與去年相比去槓桿化約 200 個基點。稀釋後每股收益為 0.75 美元，去年同期為 1.32 美元。年初至今，受去年上半年應付帳款時間的影響，自由現金流流出 460 萬美元，而前一年為 3,1,200 萬美元。

Moving to an update on our full year 2024 guidance. We have updated our full year outlook for the enterprise, including Worldpac, pending the completion of the sale. Following close, Worldpac reported as discontinued operations. We will update our outlook for advanced blended box business with our third quarter results in November.

接下來是我們 2024 年全年指導的更新。在出售完成之前，我們更新了該企業（包括 Worldpac）的全年展望。收盤後，Worldpac 報告稱已停止營運。我們將在 11 月更新第三季業績，更新我們對先進混合盒業務的展望。

We now expect sales for the full year to range from $11.15 million to $11.25 million, including comparable store sales in the range of negative 1% to flat. Our revised guidance considers our year-to-date performance and expectations for the balance of the year. We expect consumer related headwinds related to maintenance deferrals, lower discretionary spending to impact our trajectory in the short term.

我們現在預計全年銷售額為 1,115 萬美元至 1,125 萬美元，其中可比商店銷售額為負 1% 至持平。我們修訂後的指導考慮了我們今年迄今的業績和對今年剩餘時間的預期。我們預期與維護延期、可自由支配支出減少相關的消費者相關阻力將在短期內影響我們的發展軌跡。

With respect to quarterly trends, both our Pro and DIY businesses have started off weaker, driven by the overarching macro pressure on the consumer, tougher prior-year comparisons and diminishing weather related tailwinds exiting Q2. We have factored this into our guidance for the full year.

就季度趨勢而言，我們的專業和 DIY 業務開局均較疲弱，原因是消費者面臨的總體宏觀壓力、與上年的比較更加嚴峻以及第二季度天氣相關的有利因素減弱。我們已將此納入全年指導。

While we won't speculate on the timing, we are confident the industry will return to growth as conditions normalize, driven by the aging carpark and largely non-discretionary nature of auto maintenance. This provides a supportive backdrop for us to execute against.

雖然我們不會推測具體時間，但我們相信，在停車場老化和汽車維護的非自由裁量性質的推動下，隨著情況正常化，該行業將恢復成長。這為我們的執行提供了支持性背景。

Operating income margin for the full year is now expected to be between 2.1% to 2.5%. The revised margin outlook is being driven by a combination of lower gross margin and higher SG&A deleverage. As indicated earlier, we took additional pricing actions during the second quarter, which will impact gross margin, but we are seeing some green shoots in improving unit velocity. The rate of improvement is slower than we initially anticipated, given the weaker demand landscape. That said, over time, we expect our price investments yield positive net results to increase volume.

目前預計全年營業利益率介於2.1%至2.5%之間。毛利率下降和銷售、管理及行政費用去槓桿化上升共同推動了利潤率前景的調整。如前所述，我們在第二季採取了額外的定價行動，這將影響毛利率，但我們在提高單位速度方面看到了一些萌芽。鑑於需求情況疲軟，改善速度比我們最初預期的要慢。也就是說，隨著時間的推移，我們預期我們的價格投資會產生正面的淨結果，從而增加交易量。

Regarding SG&A, we still expect expenses to be flat to slightly up year-over-year to a meaningful degree, we are adjusting SG&A to address the current demand environment and are continuing to make necessary investments as part of our turnaround.

關於SG&A，我們仍然預計支出將同比持平或略有上升，達到有意義的程度，我們正在調整SG&A以應對當前的需求環境，並繼續進行必要的投資，作為我們扭虧為盈的一部分。

Diluted EPS for the full year is now expected to range from $2 to $2.50. We expect to generate a minimum of $100 million of free cash flow. Our guidance for capital expenditures is unchanged and still expect to be in the $250 million range as we undertake projects to enhance our IT stores and supply chain infrastructure.

目前預計全年稀釋後每股收益為 2 美元至 2.50 美元。我們預計將產生至少 1 億美元的自由現金流。我們的資本支出指引保持不變，預計仍保持在 2.5 億美元的範圍內，因為我們開展了增強 IT 商店和供應鏈基礎設施的專案。

To wrap up I would like to reiterate that, we firmly believe that Advance has a pathway to stronger earnings growth through the productivity review of our assets. We'll have better visibility into the margin trajectory for the blended box. We expect to share more on this in November.

最後，我想重申，我們堅信 Advance 可以透過對我們資產的生產力審查實現更強勁的獲利成長。我們將更了解混合框的邊緣軌跡。我們預計 11 月將就此分享更多資訊。

With that, I will now hand the call back to Shane.

現在，我將把電話轉回給謝恩。

Thank you, Ryan.

謝謝你，瑞安。

In closing, I want to thank all of our team members once again for their commitment to serving our customers. Our industry has historically proven to be resilient and it's demonstrated an ability to recover quickly after periods of macro pressure. Since arriving at Advance, I have been excited by the people and have been excited by the company's purpose. In the wake of selling Worldpac and with our clearer vision, I'm now even more excited for the company's potential.

最後，我要再次感謝我們所有團隊成員對服務客戶的承諾。歷史證明，我們的行業具有彈性，並且在經歷宏觀壓力後能夠快速復甦。自從來到Advance以來，我對這裡的員工感到興奮，也對公司的宗旨感到興奮。出售 Worldpac 後，我們的願景更加清晰，我現在對公司的潛力更加興奮。

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

接下來，讓我們開始提問。操作員？

Thank you. We will now begin today's Q&A session. (Operator Instructions)

謝謝。我們現在開始今天的問答環節。 （操作員說明）

Greg Melich, Evercore ISI.

格雷格·梅里奇，Evercore ISI。

Thank you. I guess, I'd love to follow up really on the guidance, Ryan. Just want to make sure the full year guidance still includes Worldpac because you have it this year or does it exclude it?

謝謝。我想，我很樂意真正跟進指導，瑞安。只是想確保全年指導仍然包括 Worldpac，因為您今年有它，還是排除了它？

Good morning, Greg. Yeah, it includes Worldpac in the guide as soon as we close that transaction. Q3, it will go into disk ops and we'll provide a guide for the RemainCo at the Q3 earnings call.

早安，格雷格。是的，一旦我們完成該交易，它就會將 Worldpac 納入指南中。第三季度，它將進入磁碟操作，我們將在第三季度的財報電話會議上為 RemainCo 提供指南。

And so the just to make sure that minimum of $100 million free cash flow that would include the EBITDA, most of the EBITDA from Worldpac this year. So we're thinking about a base for next year we should be thinking.

因此，只是為了確保至少 1 億美元的自由現金流，其中包括 EBITDA，其中大部分來自 Worldpac 今年的 EBITDA。所以我們正在考慮我們應該考慮的明年的基礎。

Yeah, correct. That's the free cash flow. --

是的，正確。這就是自由現金流。 --

(Multiple speakers) Again on the agreement, for the agreement on the sale, is there any sort of exclusivity of distribution that you have with the buyer where you get to still sell Worldpac product through Advance stores or is it a complete clean break?

（多名發言者）再次關於協議，對於銷售協議，您與買方之間是否有任何形式的排他性分銷權，您仍然可以透過 Advance 商店銷售 Worldpac 產品，還是完全徹底決裂？

No, -- we do have an agreement with them. We will continue to sell Worldpac product through our stores. -- That's a critical piece of our catalog offering for our pros.

不，我們確實與他們達成協議。我們將繼續透過我們的商店銷售 Worldpac 產品。 -- 這是我們為專業人士提供的目錄中的一個重要部分。

As you know, Greg Worldpac provides offer to certain European OEM type products that Advance has sold. So that relationship continues. It's not a huge part of our business, but we wanted to retain that capability. So we can source products to Worldpac and then we would sell them to the customer as Advance.

如您所知，Greg Worldpac 為 Advance 已銷售的某些歐洲 OEM 類型產品提供報價。所以這種關係仍在繼續。這並不是我們業務的重要組成部分，但我們希望保留這種能力。因此，我們可以向 Worldpac 採購產品，然後我們將它們作為 Advance 銷售給客戶。

That's helpful. And then last on the incremental pricing investment. I guess it's an extra $60 million. Is that an annualized figure? And could you give us more detail in terms of what product lines or markets you're really looking to do there?

這很有幫助。最後是增量定價投資。我想這是額外的 6000 萬美元。這是按年計算的數字嗎？您能否向我們提供更多有關您真正希望在那裡開展哪些產品線或市場的詳細資訊？

That is an annualized number. I that's the fully loaded, that doesn't necessarily account for a lift, et cetera, that we would see the offset that we expect to see unit trajectory and lift offset that and some cost out to get to help offset the $100 million investment. But it is annualized. It's broad spread.

這是一個年化數字。這是滿載的情況，不一定會產生升力等等，我們會看到我們期望看到單位軌跡和升力抵消的抵消，以及一些成本來幫助抵消 1 億美元的投資。但它是按年計算的。其傳播範圍很廣。

Our initial, when we went initially at the end of Q1, we had some seasonal categories, quite tilted more towards the DIY front room, but also touch some Pro Categories, but this was more broad spread, but also included more Pro Categories as we tried to get right priced and competitively priced within the Pro area. But it's kind of broad spread across, maybe balances out the price investments across our full skew listing.

我們最初，當我們最初在第一季末開始時，我們有一些季節性類別，更傾向於DIY 前廳，但也觸及一些專業類別，但這是更廣泛的傳播，但也包括更多專業類別，因為我們試圖在專業領域獲得合適的價格和有競爭力的價格。但它的分佈廣泛，也許可以平衡我們整個傾斜清單中的價格投資。

So some color there. I think the first thing to notice is we're not leading the market down. This is as we looked at historically, how we are positioned, we found that we were above the market unnecessarily so. And so this is moving to the market and obviously, customer feedback critical in these circumstances provide a personal anecdote.

所以那裡有一些顏色。我認為首先要注意的是我們並沒有引領市場下跌。這是我們從歷史角度來看的，我們的定位是這樣的，我們發現我們不必要地高於市場。因此，這正在轉向市場，顯然，在這種情況下至關重要的客戶回饋提供了個人軼事。

I saw a pro customer who pulled up on the screen and said, Shane, you guys are out of whack on radiators and so we go back and we look at what our radiator pricing is. And sure enough, we materially higher or sort of $50 higher than where we needed to be and so we made the adjustment and then we start to see pickup in radiator units.

我看到一位專業客戶把車停在螢幕上說，謝恩，你們對散熱器不正常，所以我們回去看看我們的散熱器定價是多少。果然，我們比我們需要的水平高出了 50 美元，所以我們做出了調整，然後我們開始看到散熱器裝置的回升。

So as Ryan said, we've done this broadly, but importantly, it's to just be at the market, and we'll look for customers to now know us as being market based in terms of pricing. And that's part of our growth story going forward.

正如瑞安所說，我們已經廣泛地做到了這一點，但重要的是，這只是在市場上，我們將尋找客戶現在知道我們在定價方面是基於市場的。這是我們未來成長故事的一部分。

Simeon Gutman, Morgan Stanley.

西蒙古特曼，摩根士丹利。

Hey, good morning, everyone. Hey Shane, I want to start asking a more strategic question. There's this undertone of where we're improving the core business, but we're also investing for growth. I wanted to ask how much of priority is growth. I understand you don't want to be left out as the industry keeps growing, but the priority versus sort of triaging fixing the business, bringing it back to sort of normal health versus looking around the corner and still investing for growth in that balance?

嘿，大家早安。嘿謝恩，我想開始問一個更具策略性的問題。我們正在改善核心業務，但我們也在投資以實現成長。我想問一下成長的優先順序有多少？我知道您不想在行業不斷增長的情況下被排除在外，但優先事項與分類修復業務、使其恢復正常健康狀態相比，還是環顧四周並仍然投資於這種平衡的增長？

We have to do both. We don't get the luxury of just focusing on one versus the other. I think inevitably in today's business environment, if you look at the cost of benefits or renter or whatever it is, you'll see escalations. So we want to be a positive comping company.

我們必須兩者都做。我們不能奢侈地只關注其中一個而不是另一個。我認為在當今的商業環境中，如果你看看福利或租戶或其他什麼的成本，你會不可避免地看到升級。所以我們希望成為一家積極競爭的公司。

And so that's where you look at the likes of what we're doing in our sales efforts and up and down the street Pro and rejuvenating team members with investments and focus on our CPPs and CAMS, also to bringing in Bruce Starnes and his merchandising excellence capabilities that he brings from his past experience. We've got a cadre of outstanding leaders now inside of merchandising to help us with availability with pricing and with our PLR process in terms of costing.

因此，這就是我們在銷售工作中所做的事情，以及透過投資和專注於我們的 CPP 和 CAMS 來振興團隊成員的工作，以及引進布魯斯·斯塔恩斯 (Bruce Starnes) 和他的卓越銷售能力他從過去的經驗中獲得的能力。我們現在在銷售部門擁有一群傑出的領導者，他們可以幫助我們提供定價方面的可用性以及成本會計方面的 PLR 流程。

So those are some of the mechanics, but getting to a positive comp is critical for us. We've set the table in many regards as it relates to the underpinnings of how we're competitive on cost and things we want to do. I think, the Worldpac sale process epitomizes that. So with Worldpac as a different business inside of our company, the distraction that creates we're singularly focused now on the blended box. And so look for us operationally to make that more efficient to focus on that supply chain, but also look for a growth perspective, but we need to be delivering a positive comp.

這些是一些機制，但獲得正面的補償對我們來說至關重要。我們在很多方面都制定了標準，因為這關係到我們在成本方面的競爭力和我們想做的事情的基礎。我認為，Worldpac 的銷售流程就是這一點的縮影。因此，隨著 Worldpac 作為我們公司內部的一項不同業務，造成的干擾使我們現在特別關注混合盒。因此，我們需要在營運上提高專注於供應鏈的效率，同時也要尋求成長的前景，但我們需要提供積極的補償。

And then a follow-up. I don't know if you'll comment, but it looks like the run rate of EPS post Worldpac looks like it will be sub $2 and there was this mention of the $30 million of some adjustment to run rate Worldpac EBITDA. Does that mean that it's $30 million that stays with Advance or is that $30 million just not part of, it just goes away?

然後是後續行動。我不知道你是否會發表評論，但看起來 Worldpac 後的 EPS 運行率將低於 2 美元，並且提到了對 Worldpac EBITDA 運行率進行了 3000 萬美元的調整。這是否意味著有 3,000 萬美元留在 Advance 中，或者這 3,000 萬美元只是不屬於其中，而是消失了？

Yeah, so Ryan will unpack it a little bit. But I think your hypothesis that the underlying core business is wanting in terms of performance I think is accurate. But that's exactly why we're creating this focus and that's where there's excitement in terms of turning the page as a company as a blended box Auto Parts retailer. Ryan?

是的，所以瑞安會稍微解開它。但我認為你關於底層核心業務在績效方面缺乏的假設我認為是準確的。但這正是我們創建這一重點的原因，這也是作為一家混合盒汽車零件零售商翻開新頁面的令人興奮的地方。瑞安？

Yes. We won't give specific guidance to the RemainCo until the Q3, but we did provide the EBITDA. The reason we added the $30 million was that is additional EBITDA that is held at the parent company. It's a net of some inner company and costs that are held at the enterprise. So you should look at that as additive to the $100 million that if we were to close the deal on Worldpac think of that as closer to $130 million.

是的。直到第三季我們才會對RemainCo給予具體的指導，但我們確實提供了EBITDA。我們增加 3000 萬美元的原因是母公司持有額外的 EBITDA。它扣除了企業內部的一些費用和成本。因此，您應該將其視為 1 億美元的補充，如果我們要在 Worldpac 上完成交易，則認為該金額接近 1.3 億美元。

Got it.

知道了。

But in Q3 earnings call will come with a full picture of the RemainCo. Yeah

但第三季的財報電話會議將全面介紹留歐公司的情況。是的

Bret Jordan, Jefferies.

布雷特·喬丹，杰弗里斯。

Hey, good morning, guys. Worldpac working capital situation. Hey, good morning. How much of the inventory that you carry is discrete to Worldpac and I guess what's the outlook as far as working capital reduction?

嘿，早上好，夥計們。 Worldpac 營運資金狀況。嘿，早安。你們持有的庫存有多少是獨立於 Worldpac 的，我猜營運資本減少的前景如何？

Yeah, Bret, so it's roughly in the ballpark of $1 million of inventory, sorry, about $1 billion of inventory for Worldpac. Their coverage ratio is a little bit lower. We'll obviously share more what that RemainCo looks like as we disk up them in Q3. But that should give you a ballpark. Their coverage ratio is going to mix us down when they're in the consolidated. It will mix us up a little bit when they're no longer with us. But it's about $1 billion of inventory.

是的，Bret，所以大約是 100 萬美元的庫存，抱歉，Worldpac 的庫存約為 10 億美元。他們的覆蓋率有點低。當我們在第三季盤點它們時，我們顯然會分享更多 RemainCo 的情況。但這應該給你一個大致的了解。當他們納入合併範圍時，他們的覆蓋率將會把我們混在一起。當他們不再和我們在一起時，我們會有點混亂。但這大約是10億美元的庫存。

Okay. And then the proceeds, I guess, you talked about debt reduction and you've got a couple of debt tranches in the high 5%. Can you pay those down or any prepayment penalties, guess, what's the balance sheet can look like post close?

好的。然後，我想，你談到了債務削減，並且你在 5% 的高債務部分中得到了一些收益。你能支付這些頭期款或任何預付款罰金嗎？

Yeah, we'll definitely share more specifics around that at a later date. Right now, we're going to take that cash, look at when we close the business, we'll look at bolstering the balance sheet. We'll definitely look at what debt we need to pay down, what we need to invest in the business and what we need for going forward. So we'll probably share a little bit more, but if we do attack debt, you would think that we would attack those higher interest tranches.

是的，我們稍後肯定會分享更多細節。現在，我們將拿走這筆現金，看看我們何時關閉業務，我們將考慮加強資產負債表。我們肯定會考慮我們需要償還哪些債務，我們需要對業務進行哪些投資以及我們未來需要什麼。因此，我們可能會分享更多一點，但如果我們確實攻擊債務，你會認為我們會攻擊那些利率較高的部分。

Yeah, and I'll touch on -- in the prepared remarks. Go ahead. Sorry, Bret

是的，我將在準備好的發言中談到這一點。前進。對不起，布雷特

I said it's repurchased still in the use of proceeds?

我說回購的收益還在用嗎？

Yeah over, I think, a reasonable period of time on that. I think the first priority is going to be the balance sheet and making sure we've got a good balance sheet for growth going forward, invest in our initiatives and then absolutely over a reasonable period of time returning cash to shareholders, excess cash to shareholders is important for us.

是的，我想，這已經是一段合理的時間了。我認為首要任務是資產負債表，確保我們擁有良好的資產負債表以促進未來的成長，投資於我們的舉措，然後絕對在合理的時間內將現金返還給股東，將多餘的現金返還給股東對我們來說很重要。

And on the investment side of the house, three areas, stores. During the prepared remarks, we created a unified real estate team. We didn't have one. We had multiple teams. So we've got a very strong leader running that team and we've been investing in creating a new store opening capability. That's a muscle that had atrophied. So we want to get back to opening 100 stores a year and we're looking at markets where we have a right to win as a way to think about where to put those stores. There's some refresh of existing stores that need a bit of a freshening and then two other areas.

在房子的投資方面，三個區域，商店。在準備發言的過程中，我們創造了一個統一的房地產團隊。我們沒有。我們有多個團隊。因此，我們有一位非常強大的領導者來管理該團隊，並且我們一直在投資創建新店開業能力。那是一塊已經萎縮的肌肉。因此，我們希望回到每年開設 100 家商店的目標，我們正在尋找我們有權利獲勝的市場，以思考將這些商店開在哪裡。現有商店需要進行一些翻新，然後還有另外兩個區域。

On the IT front, we've got two POS systems. We still have a residual legacy POS system that we want to get all of our stores on one POS system. So there's an IT investment there. And then on the supply chain side, we're rolling out the market hubs. We're doing the DC consolidation, but even inside of the existing DCs and think about this in terms of pick mods and conveyor systems, there's investment there, but also in terms of just getting inventory tracking through the system in particular as it goes from a DC to a hub to a customer.

在 IT 方面，我們有兩個 POS 系統。我們仍然有一套遺留的 POS 系統，我們希望所有商店都使用一個 POS 系統。因此，這裡存在 IT 投資。然後在供應鏈方面，我們正在推出市場中心。我們正在進行配送中心整合，但即使在現有的配送中心內部，從揀選模組和輸送機系統的角度考慮這一點，那裡也有投資，而且還包括通過系統進行庫存跟踪，特別是當它從DC 到中心到客戶。

So there's some investment there. So there's a number of fruitful areas where we can put some of the proceeds that will help us on the journey, both in terms of improving our effectiveness or increasing our sales above.

所以那裡有一些投資。因此，我們可以在許多富有成果的領域投入一些收益，以幫助我們踏上這段旅程，無論是在提高我們的效率還是在增加我們的銷售額方面。

Scot Ciccarelli, Truist Securities.

斯科特·西卡雷利 (Scot Ciccarelli)，Truist 證券公司。

Good morning, guys. Can you outline maybe a bridge to your reduction in your EBIT margin? I mean, I know it's only over 150 basis points or so, but it's a pretty sizable percent reduction. So maybe, how much is from the sales change, how much from price investments, how much from strategic investments just to give a better idea of kind of what changed from a couple of months ago?

早安，夥計們。能否概述一下減少息稅前利潤率的橋樑？我的意思是，我知道僅下降了 150 個基點左右，但下降幅度相當大。那麼，也許有多少來自銷售變化，有多少來自價格投資，有多少來自策略性投資，只是為了更了解幾個月前發生的變化？

Yeah, absolutely. So the large portion of that is volume and then the other piece of that is the price investments and the margin rate. Those are really the two big drivers of it. SG&A is coming in pretty much in line with what we expected. While we're pulling back on SG&A relative demand. We're also making sure we continue our investment in supply chain and those key growth initiatives that we have. So SG&A is going to come in about the same place we expected in the guide. The biggest drivers are going to be the volume on the top line and margin rate.

是的，絕對是。因此，其中很大一部分是交易量，另一部分是價格投資和保證金率。這些確實是它的兩個主要驅動因素。 SG&A 的情況與我們的預期基本一致。雖然我們正在減少銷售、管理及行政費用（SG&A）的相對需求。我們也確保繼續對供應鏈和我們現有的關鍵成長計畫進行投資。因此，SG&A 的位置與我們在指南中預期的位置大致相同。最大的驅動因素將是營業額和利潤率。

Yeah. And Scot, you made a good observation there. Based on where we sit, even small changes have outsized impacts. We are definitely seeing the headwind with the consumer and it manifests itself in terms of either deferring the spend or trading down. And you guys know the stats, right? Credit card defaults are at a high 9%. People are getting squeezed on rents and mortgage that's up year-over-year.

是的。史考特，你在那裡做了很好的觀察。根據我們所處的位置，即使很小的變化也會產生巨大的影響。我們肯定看到了消費者的逆風，它表現為推遲支出或降價購買。你們知道統計數據，對嗎？信用卡違約率高達 9%。人們正面臨逐年上漲的租金和抵押貸款的壓力。

And what we're seeing in the cohorts that are relevant for our company and think about that as households making $50,000 or less or even $75,000 or less. Their spend is diminishing or where they spend they're spending less. And so we're sensitive to that. But that downtick hits us and that's something that when you're in a turnaround, we're particularly sensitive to in terms of what that impact is on our bottom line.

我們在與我們公司相關的群體中看到的情況，並將其視為年收入 50,000 美元或更少，甚至 75,000 美元或更少的家庭。他們的支出正在減少，或者說他們花錢的地方減少了。所以我們對此很敏感。但這種下滑對我們造成了打擊，當你處於扭虧為盈時，我們對這種情況對我們利潤的影響特別敏感。

Very helpful. And then just quick follow-up on Worldpac. How much of that 100 -- I guess we're supposed to be using $130 million figure. How much of that is D&A?

非常有幫助。然後在 Worldpac 上進行快速跟進。這 100 中有多少——我想我們應該使用 1.3 億美元的數字。其中有多少是 D&A？

Yeah, we don't give specifically on D&A.

是的，我們不會具體介紹 D&A。

-- Okay. Just can we look at a percent of sales?

- 好的。我們能看一下銷售額的百分比嗎？

Well, the sales of Worldpac was 2.1, EBITDA, we're saying it's closer to $130 million that you would think about. That's EBITDA.

嗯，Worldpac 的銷售額為 2.1，EBITDA，我們說它接近您會想到的 1.3 億美元。這就是息稅折舊攤提前利潤。

I understand. How much of that is the actual depreciation and amortization, though, like. Can we assume if Worldpac was 18% of total sales, enterprise sales, it's about 18% D&A.

我明白。不過，其中有多少是實際的折舊和攤提。我們可以假設，如果 Worldpac 佔企業銷售額總銷售額的 18%，那麼 D&A 大約佔 18%。

We're not giving out specific guidance relative to disk ops or different parts of the business at this time. We'll do that in Q3.

目前，我們不會提供有關磁碟操作或業務不同部分的具體指導。我們將在第三季這樣做。

Michael Lasser, UBS.

麥可拉瑟，瑞銀集團。

Good morning. Thank you so much for taking my question. How should the market think about the long-term competitiveness of core Advance, if it's going to have a mid-single-digit operating margin when its competitors are in the high-teens, low-20% range? Does that put it at a disadvantage if the market becomes more competitive and it just doesn't have as much resource to invest to remain in lockstep with the others?

早安.非常感謝您回答我的問題。如果核心 Advance 公司的營業利潤率只有中個位數，而其競爭對手則處於十幾歲至 20% 的水平，那麼市場應該如何看待其長期競爭力？如果市場競爭變得更加激烈，並且它沒有足夠的資源來投資以與其他公司保持同步，這是否會使其處於不利地位？

Hey, Michael, great question. So we said mid-single-digits and think about that as our next few years horizon. That's not going to be our permanent aspiration in terms of where we can take this company, but I would say that this is a huge market. It's an ocean of Auto Parts, 287 million vehicles aged at 12.7 years. And if you look at the share of the folks that have that higher operating margin, yes, they certainly been growing.

嘿，邁克爾，好問題。所以我們說的是中個位數，並將其視為我們未來幾年的視野。這不會是我們對公司發展的永久願望，但我想說這是一個巨大的市場。這是汽車零件的海洋，有 2.87 億輛車齡為 12.7 年的汽車。如果你看看營業利潤率較高的人所佔的比例，是的，他們確實在成長。

But in aggregate there's still a large swath of the market that they don't touch and that we don't touch. So there's room for us to grow without ever taking $1 or standing toe-to-toe with them and I think that's important.

但總的來說，還是有很大一部分市場他們沒有觸及，我們也沒有觸及。因此，我們有成長的空間，而無需拿走 1 美元或與他們針鋒相對，我認為這很重要。

Secondly, in terms of just sort of bones, in terms of our ability to be out in the market, we have 4,700 retail locations. We work with 1,100 independents. And if you look at where we are, there are many markets where we are the leading player. So structurally, it's not as though to go out and compete with them, we need to actually go have stores and be in markets. We're there. This is a function of tuning our operating model and clearing our focus to be better at those fundamentals.

其次，就我們進入市場的能力而言，我們擁有 4,700 個零售點。我們與 1,100 名獨立人士合作。如果你看看我們所處的位置，你會發現我們在許多市場都是領導者。因此，從結構上來說，我們並不是要出去與他們競爭，而是需要真正去開店並進入市場。我們就在那裡。這是調整我們的營運模式並明確我們的重點以更好地處理這些基礎知識的功能。

And I think in the past perhaps that hadn't been where we were as focused. So I'm really optimistic about where the company can go. And as we move through this very tough phase, which we're doing now, which is in the turnaround and I would call those other players are still out there in that phase. As we go through this, we'll get to our point that we've talked about that mid-single-digits and we'll continue to improve from there.

我認為過去也許這不是我們關注的焦點。所以我對公司的發展方向非常樂觀。當我們經歷這個非常艱難的階段時，我們現在正在做，這是在轉變中，我認為其他球員仍然在那個階段。當我們討論這個問題時，我們會明白我們已經討論過這個中個位數的問題，並且我們將在此基礎上繼續改進。

Okay. My follow-up question is as you are making these investments either in frontline associates distribution or price. Do you have evidence to see that in those areas where you invest, are investing either on a SKU by SKU basis or a store by store basis that are being connected to these new distribution assets that they are outperforming part of that.

好的。我的後續問題是，您在一線員工的分銷或價格方面進行這些投資。您是否有證據表明，在您投資的那些領域，正在逐個 SKU 或逐個商店進行投資，這些投資與這些新的分銷資產相關，並且它們的表現優於其中的一部分。

It sounds like your ability to get to a mid-single-digit margin is mostly sales dependent. Why are there no other opportunities to grow your margins more significantly, especially considering your gross margin is about 1,000 basis points below the others in the industry. Thank you.

聽起來您獲得中個位數利潤的能力主要取決於銷售額。為什麼沒有其他機會更顯著地提高您的利潤，尤其是考慮到您的毛利率比業內其他公司低約 1,000 個基點。謝謝。

It's another good question. I think there's opportunities in both. We certainly have opportunities as it relates to the margin side. And just think about the supply chain we talked about having 38 DCs on different operating systems. So even without an incremental dollar of sales, we get to the consolidated 14 DC node with the market hubs and that takes out substantial monies.

這是另一個好問題。我認為兩者都有機會。我們當然有機會，因為它涉及利潤方面。想想我們談到的供應鏈，它有 38 個 DC，運行不同的作業系統。因此，即使沒有增加銷售額，我們也可以透過市場中心整合 14 個 DC 節點，這需要大量資金。

That's a good example. We talked about the tech being on different POS systems and the friction that causes. Imagine being a district manager and you go to one store and your team members are trained on one operating system and you go to another store and it's entirely different and we have that in plenty of locations.

這是一個很好的例子。我們討論了不同 POS 系統上的技術以及由此產生的摩擦。想像一下，作為一名地區經理，您去了一家商店，您的團隊成員接受了一種操作系統的培訓，而您去了另一家商店，情況完全不同，我們在很多地方都有這樣的商店。

So there's an efficiency gain in terms of what our team members do. So we certainly will look for operating improvements. PLR is by the way a huge component. We're conducting 130 of them and that's both in terms of making sure we got the right products, the right mix of private brand versus national brand, the right cost position, we're ordering in the right frequencies and quantities.

因此，我們團隊成員的工作效率得到了提升。因此，我們當然會尋求營運方面的改進。順便說一句，PLR 是一個巨大的組件。我們正在進行 130 次，這一切都是為了確保我們獲得正確的產品、自有品牌與國家品牌的正確組合、正確的成本定位，以及我們以正確的頻率和數量訂購。

So a litany of things there that help us in terms of just the margin side without sales. But on those things that you talked about, if you think about frontline investments that helps us reduce turnover, right. There's a lot of hidden costs with turnover. And we've substantially reduced turnover in a number of our key jobs that, that makes a difference.

因此，有一系列的事情可以在沒有銷售額的情況下僅在利潤方面幫助我們。但就您談到的那些事情而言，如果您考慮有助於我們減少營業額的第一線投資，對吧。營業額有許多隱性成本。我們大幅減少了許多關鍵工作的人員流動率，這產生了影響。

In terms of the distribution, right, as that investment comes through helps us with sales because we're able to say yes more frequently to customers. And then on pricing, touched on it earlier. We needed to be where the market is at. And it's very frustrating to have customers tell you, hey, I like Advance. I like your brand. I like your people, but you're out of line as it relates to pricing. So moving to where the market is we thought was really an important action.

就分配而言，是的，因為投資的實現有助於我們的銷售，因為我們能夠更頻繁地對客戶說「是」。然後是關於定價，之前談過。我們需要處於市場所在的位置。如果客戶告訴你，嘿，我喜歡 Advance，這真是令人沮喪。我喜歡你的品牌。我喜歡你們的員工，但你們在定價方面有些不合時宜。因此，轉向我們認為的市場確實是一項重要的行動。

Chris Horvers, JPMorgan.

克里斯霍弗斯，摩根大通。

Hi. Good morning. It's Christian Carlino on for Chris. Thanks for taking our question. Could you speak to how you're approaching these price investments? Advance wasn't known for its systems previously. So is this market and SKU based and peers will price at like a high single digit premium to the WDs on undercar and engine management categories? So are you pricing below the national peers?

你好。早安.克里斯汀·卡利諾 (Christian Carlino) 替補出場。感謝您提出我們的問題。您能談談您是如何進行這些價格投資的嗎？ Advance先前並非因其係統而聞名。那麼，這個市場和 SKU 是否基於該市場，同行的定價是否會比 WD 在車底和引擎管理類別上高出個位數？那麼你們的定價是否低於國內同業？

No, we're not. So that's not our goal to be below national peers. We're just looking to be at the market. We've looked at CPIs where we've been well above I'd mentioned the radiator example before. We looked category and market specifically at where we were.

不，我們不是。因此，我們的目標並不是低於全國同業。我們只是想進入市場。我們已經研究了 CPI，遠高於我之前提到的散熱器範例。我們專門研究了我們所處的類別和市場。

And you mentioned on the system side. We've actually put a lot of emphasis on what our pricing tiers look like and creating the ability for our outside sales team members to be able to do exception pricing. We're warranted. So we've built capabilities. We've benchmarked the markets. We've looked broadly and we've made the adjustments, but it is not to leave the market lower and I think that's an important component.

你提到了系統方面。實際上，我們非常重視我們的定價層級，並為我們的外部銷售團隊成員創造了進行例外定價的能力。我們有保證。所以我們已經建立了能力。我們已經對市場進行了基準測試。我們進行了廣泛的審視並做出了調整，但這並不是讓市場走低，我認為這是一個重要的組成部分。

Got it. That's helpful. Then on getting back to the mid-single-digit margins, I think you've said it hasn't been material. But to what extent could you quantify the impact of grosses from the higher supply chain financing costs that you might get back when you deleveraged? And you're backing out about $25 million of charges for the material weakness and executive recruiting. So what's the remainder of the Worldpac advisory fees that you should get back?

知道了。這很有幫助。然後，回到中個位數的利潤率，我想你已經說過這​​並不重要。但是，您可以在多大程度上量化去槓桿化時可能收回的更高供應鏈融資成本所帶來的總收入影響？您還撤銷了因重大缺陷和高階主管招聘而收取的約 2500 萬美元的費用。那麼，您應該退回的 Worldpac 諮詢費的剩餘部分是多少呢？

Yeah. So we're not ready to give specific details on those items there. I think in Q3 earnings call, we will lay out more specifically how our path to a mid-single-digit OI rate. So we'll come back with more details there and how we get there.

是的。因此，我們還沒有準備好提供有關這些項目的具體細節。我認為在第三季的財報電話會議上，我們將更具體地闡述如何實現中等個位數的 OI 比率。因此，我們將在回來時提供更多詳細資訊以及我們如何實現這一目標。

Obviously, there are investments that we're making this year that might not recur, but we might have investments next year. We'll lay that out. So you can understand our path to that number and where it's coming from. The key thing when we think about our gap and our opportunity, it's really three buckets and that's where we're laying down our investment. It's sales productivity. It's first cost margin and it's our supply chain cost. Those are the three big areas that we are focused on and that's where you're going to see the opportunity as we drive that OI rate improvement

顯然，我們今年進行的一些投資可能不會重複，但明年我們可能會進行投資。我們會把它擺出來。這樣您就可以了解我們獲得該數字的路徑以及它的來源。當我們考慮我們的差距和機會時，關鍵是這實際上是三個方面，這就是我們投資的地方。這是銷售生產力。這是第一成本邊際，也是我們的供應鏈成本。這些是我們重點關注的三大領域，當我們推動 OI 率提高時，您將在這些領域看到機會

Seth Sigman, Barclays.

塞思‧西格曼，巴克萊銀行。

Great. Good morning, everyone. I wanted to just talk about trends over the last several months. Trends improved through the second quarter. Sounds like started off weaker in the third quarter. Can you just dissect that for us a bit more. Is that flow down coming from the pro? Is that DIY? Is it weather? Is it a consumer deferring? Any more perspective on that slowdown that you're seeing and how do you think about that playing out the rest of the year? Thanks.

偉大的。大家早安。我想談談過去幾個月的趨勢。第二季度趨勢有所改善。聽起來第三季開局較弱。您能為我們詳細剖析一下嗎？這是來自專業人士的流量嗎？那是DIY嗎？是天氣嗎？是消費者延後了嗎？對於您所看到的經濟放緩還有什麼更多的看法？謝謝。

Yeah, absolutely. So the slowdown we're seeing is across both categories DIY and pro, probably more on the DIY side. We're just seeing consumers pressured and they're putting off discretionary, some maintenance that you would typically want to see. But it's typical when you see these consumers pressured and Shane spoke to it earlier just the pressure on some low to medium income consumer and that's kind of in our guide as we're expecting those trends that kind of continue through the back half of this year.

是的，絕對是。因此，我們看到 DIY 和專業類別都出現了放緩，可能更多的是 DIY 方面。我們只是看到消費者面臨壓力，他們推遲了一些您通常希望看到的可自由支配的維護。但這是典型的，當你看到這些消費者面臨壓力時，謝恩早些時候談到了一些中低收入消費者面臨的壓力，這在我們的指南中是這樣的，因為我們預計這些趨勢將持續到今年下半年。

We did see nice positive movement through Q2. We ended the quarter higher than we started the quarter and that really was driven by our pro initiative and we're seeing the up and down the street pro continue to outperform the rest of the business. But we did see the trends decelerate recently and we think the large part of that's really the macro overhang and the consumer pressure that we're seeing.

我們確實在第二季度看到了良好的積極變化。我們本季末的業績高於本季初的業績，這確實是由我們的專業人士倡議推動的，我們看到街頭專業人士的表現繼續優於其他業務。但我們最近確實看到趨勢減速，我們認為這很大程度上是我們所看到的宏觀過剩和消費者壓力。

Okay. Got it. And then just my follow-up question. If I back out Worldpac, I think, it confirms the core productivity sales issues that you guys have talked a lot about and you're obviously trying to address. Can you just give us more perspective on what growth has looked like excluding Worldpac at the very least for this quarter, but ideally some perspective on what that's looked like over time?

好的。知道了。然後是我的後續問題。我認為，如果我退出 Worldpac，就證實了你們已經討論過很多次並且顯然正在努力解決的核心生產力銷售問題。您能否讓我們更了解至少在排除 Worldpac 的情況下本季的成長情況，但最好能了解一段時間內的成長情況？

We're not going to give specifics right now. We will in the Q3 earnings, but I'll give you just, we are seeing positive in Q2, the positive pro performance. We're seeing that in the blended box. And so when we talk about the up and down the street initiative, we talk about our pro comp and transaction. We're seeing a lot of that in the Advance blended box and that's where we see some positive momentum there, but we'll be more specific on the different units in the Q3 call, but we like what we're seeing in the blended box and the initiatives that we're rolling out.

我們現在不打算透露具體細節。我們會在第三季的收益中公佈，但我會告訴你，我們在第二季度看到了積極的結果，即積極的專業表現。我們在混合框中看到了這一點。因此，當我們談論街頭倡議時，我們談論的是我們的專業補償和交易。我們在高級混合框中看到了很多這樣的內容，這就是我們在那裡看到一些積極勢頭的地方，但我們將在第三季度電話會議中更具體地介紹不同的單位，但我們喜歡在混合中看到的內容框以及我們正在推出的舉措。

Stephen Trent, Citigroup.

史蒂芬‧特倫特，花旗集團。

Great. Good morning. Thanks very much for taking my question. I wanted to follow-up on the price investments. So the last time you spoke to us, you said the price investments that you were doing at that time accounted for about 8% of the SKU count. So this $100 million, what does that translate to SKU count today? And then what gives you confidence that you won't need to take another level of price investments? Just given the comment there that some of these have been slower to catch on with your pro customers?

偉大的。早安.非常感謝您提出我的問題。我想跟進價格投資。所以上次您跟我們交談時，您說您當時所做的價格投資約佔SKU數量的8%。那麼這 1 億美元，換算成今天的 SKU 又意味著什麼呢？那麼是什麼讓您有信心不需要另一水準的價格投資呢？剛剛有評論說其中一些產品在您的專業客戶中的流行速度較慢？

Steven, they are much more broad based. Don't necessarily want to share like with a percentage at this point, but it's definitely more broad based across all categories. We wanted to make sure that we were invested in the right places especially in the pro and seasonal areas.

史蒂文，他們的基礎更廣泛。目前不一定想以百分比來分享，但它肯定在所有類別中具有更廣泛的基礎。我們希望確保我們投資在正確的地方，特別是在專業領域和季節性領域。

As far as incremental investments, we're always going to continue to look and make sure that we are competitively priced. Again, want to reiterate, we're not trying to lead the market here. We're just trying to remain competitively priced, so we have a better chance to say yes to the customer when we have the product. So there might be some additional investments, but from our perspective, the large portion of the investments were pretty much.

就增量投資而言，我們始終會繼續尋找並確保我們的價格具有競爭力。再次重申，我們並不是想引領市場。我們只是想保持價格的競爭力，這樣當我們擁有產品時，我們就有更好的機會向客戶表示「是」。所以可能會有一些額外的投資，但從我們的角度來看，大部分投資都相當多。

Yeah and we talk to our customers regularly and as you know, we've got a large initiative underway with up and down the street pros, and we get the feedback that our pricings in line now. For customers where we're the first call, that's welcome news, and we continue to retain that business. Where we're a second or third call, being in line with pricing provides the opportunity to get the marginal business.

是的，我們定期與客戶交談，如您所知，我們正在與街頭專業人士開展一項大型計劃，我們得到的反饋表明我們的定價現在符合要求。對於我們是第一個致電的客戶來說，這是一個可喜的消息，我們將繼續保留這項業務。當我們第二次或第三次打電話時，與定價保持一致可以提供獲得邊際業務的機會。

I think one of the things that's always good about being in the Auto Parts business is there are so many parts out there that nobody has them all. So inevitably, for even an entrenched, customer who's entrenched with the competitor, there's some product that they don't have or they don't have with the requisite availability. We'll get that call. Now that we've got the price that's lined up, we get the business.

我認為從事汽車零件業務的好處之一就是零件數量如此之多，以至於沒有人擁有全部。因此，不可避免的是，即使對於與競爭對手站在一起的根深蒂固的客戶來說，也不可避免地存在一些他們沒有的產品，或者他們不具備必要的可用性。我們會接到那通電話。現在我們已經確定了價格，我們就得到了生意。

So we think where we need to be, we'll obviously be tuning it. But where we look at customers, we get feedback from customers. Price isn't the objection in terms of why we are or aren't getting the business.

所以我們認為我們需要在哪裡，我們顯然會對其進行調整。但當我們關注客戶時，我們會得到客戶的回饋。價格並不是決定我們能否獲得業務的理由。

And then maybe to follow-up on that, you made the comment earlier that turnarounds take time. And from following this industry, we all know price is just one piece of the factor in that decision to get the business, right. There's also service, parts availability, delivery speed. Can you help us understand how you stack up among those other factors when you're trying to get that customer just to move up the call list? Thanks very much.

然後，也許為了跟進這一點，您早些時候發表了評論，稱扭轉局面需要時間。透過追蹤這個行業，我們都知道價格只是正確獲得業務的決策因素之一。還有服務、零件供應情況、交貨速度。當您試圖讓該客戶在通話清單中向上移動時，您能否幫助我們了解您如何綜合考慮其他因素？非常感謝。

So in terms of where we've got great people, our locations, our products, we do well. And so we're excited by what this represents. We're turning the page as a company to put the focus on our stores and we're seeing the early shoots from those investments. So talk about investing in the front line. We're hearing it from our team members.

因此，就我們擁有優秀人才、我們的地理位置和我們的產品而言，我們做得很好。因此，我們對這所代表的內容感到興奮。作為一家公司，我們正在翻開新的一頁，將重點放在我們的商店上，並且我們看到了這些投資的早期成果。所以說要投資一線。我們從我們的團隊成員那裡聽到了這一點。

I go talk to -- I talked to a GM who said, hey, I was able to raise the wage for one of my team members for $50. That makes a difference for that team member staying around and being part of the company versus potentially leaving for the first opportunity to sell fast food somewhere else. So we're seeing better retention of our team members. We're seeing the energy that invokes.

我去和一位總經理交談，他說，嘿，我能夠將我的一名團隊成員的薪水提高到 50 美元。這對於該團隊成員留下來並成為公司的一部分與可能離開去其他地方銷售快餐的機會有很大不同。因此，我們看到團隊成員的保留率有所提高。我們看到了召喚的能量。

We're seeing it in terms of our product availability. We're seeing it in terms of our PLR impacts. We're seeing it in terms of vendor partnerships. Vendors are reaching out to us and they're saying, hey we're excited by where you guys are going. We want you to succeed. So the vendors are behind us.

我們從產品的可用性方面看到了這一點。我們從 PLR 影響方面看到了這一點。我們在供應商合作夥伴關係方面看到了這一點。供應商正在聯繫我們，他們說，嘿，我們對你們要去的地方感到興奮。我們希望您成功。所以供應商在我們身後。

So at each sort of level of what we're doing, the improvements we're making are starting to get a little bit of traction. Now we still have things that we want to do in places we want to go. So supply chain, we got to finish the consolidation. We got to roll out the market hubs.

因此，在我們正在做的各個層面上，我們所做的改進都開始受到一些關注。現在我們仍然在想去的地方做想做的事情。所以供應鏈，我們必須完成整合。我們必須推出市場中心。

In merchandising, as Bruce gets traction with that team, we expect him to do more things. So there's upside in all the areas we're doing, but there's progress that we're getting back from our own team and from our customers, where people are indicating we're on the track. These are the things that we want to do. And importantly, internally we're getting excitement.

在行銷方面，隨著布魯斯受到團隊的歡迎，我們期望他能做更多的事情。因此，我們正在做的所有領域都有好處，但我們從我們自己的團隊和客戶那裡得到了一些進展，人們表明我們正在走上正軌。這些都是我們想做的事。重要的是，我們內部感到興奮。

Brian Nagel, Oppenheimer.

布萊恩·內格爾，奧本海默。

Hi. Good morning. Thanks for taking my questions. So my first question, I apologize for being repetitive, but I also want to just touch on these price investments. So the question I have, and you're recognizing, as you've said now several times, you're not leading the sector the lower. But the question is, as you've adjusted prices, and I know it's a case-by-case situation, but do you see a competitive reaction to those adjustments you're undertaking on these items?

你好。早安.感謝您回答我的問題。所以我的第一個問題，我為重複而道歉，但我也想談談這些價格投資。所以我的問題是，正如您現在多次說過的那樣，您認識到，您並沒有引領該行業走低。但問題是，正如你們調整了價格一樣，我知道這是具體情況，但你們是否認為你們對這些商品進行的調整會產生競爭反應？

Brian, we haven't seen competitors move on that, because we're really just getting down to be competitive within the ballpark of them, but we haven't seen them move to bring it down lower. It's not kind of driving a race to the bottom here. We've been able to make the adjustments and keep them in place as we monitor that price and the competitive position of that price.

布萊恩，我們還沒有看到競爭對手在這方面採取行動，因為我們實際上只是在他們的範圍內進行競爭，但我們還沒有看到他們採取行動將其降低。這並不是一場逐底競爭。當我們監控該價格和該價格的競爭地位時，我們已經能夠進行調整併保持它們不變。

Got it. My second question with regard to the sale of Worldpac. Again, recognizing you're not giving full details at this point, but as you think about the RemainCo, ex-Worldpac, are there other potential implications for the RemainCo? What I'm referring to specifically is that going forward you'll be a smaller company. Are you less of a scale buyer? Are there other leverage opportunities that you'll be foregoing at least near-term?

知道了。我的第二個問題是關於 Worldpac 的出售。再次強調，您目前尚未提供完整的細節，但當您考慮留歐聯盟（前 Worldpac）時，留歐聯盟是否還有其他潛在影響？我具體指的是，今後你們將成為一家規模較小的公司。您是規模較小的買家嗎？至少在短期內您是否會放棄其他槓桿機會？

I don't see any. I actually see the opposite, which is our vendors are saying, hey, it's great to see that you're getting Advance going. And keep in mind that Worldpac was substantially a separate company. So it's not as though that the procurement between the two entities was consolidated.

我沒有看到任何。我實際上看到了相反的情況，我們的供應商說，嘿，很高興看到您正在推進 Advance。請記住，Worldpac 本質上是一家獨立的公司。因此，這兩個實體之間的採購並沒有被合併。

So the vendors are saying, you guys are focused, you're getting some discipline, you're getting some accountability, you're serious about growing. We want to be part of that, and I think that's a great message. So while we will be marginally smaller, we're still a huge player inside of Auto Parts.

所以供應商說，你們很專注，你們得到了一些紀律，你們得到了一些責任，你們認真看待成長。我們希望成為其中的一部分，我認為這是一個很好的訊息。因此，雖然我們的規模會稍微小一些，但我們仍然是汽車零件領域的重要參與者。

So keep in mind there are so many moms and pops and smaller distributors out there, we're still an absolutely significant player in the industry. We've got the support of the vendors. We're building excitement internally. We're going to start opening stores again. So this is, -- I view today as a watershed moment for this company in terms of selling Worldpac, making the decision to keep Canada and then setting about the trajectory that we're putting forward.

因此，請記住，有如此多的媽媽、流行音樂和小型分銷商，我們仍然是該行業絕對重要的參與者。我們得到了供應商的支持。我們正在內部營造興奮感。我們將再次開始開店。所以，我認為今天是這家公司出售 Worldpac 的分水嶺，決定保留加拿大，然後制定我們提出的發展軌跡。

Seth Basham, Wedbush.

塞思‧巴沙姆，韋德布希。

Thanks a lot and good morning. My first question is just on the guidance for this year. How much of the EPS guidance would you consider to be one-time transitory items that will not recur next year?

非常感謝，早安。我的第一個問題是關於今年的指導。您認為每股盈餘指引中有多少是明年不會再出現的一次性臨時項目？

That's a smaller portion, not giving specifics on that one, but it's a smaller portion of the overall guidance. The real guide adjustment is driven by margin and margin related to our pricing investments and product cost, but mainly the pricing investments and then the volume on the top line. Those are the real drivers of the EPS, the year-over-year impact of some of those items. And we'll probably lay out more of that on what that means going forward in our Q3 call. But it's not a significant portion.

這是一小部分，沒有給出具體細節，但它是整體指南的一小部分。真正的指導調整是由與我們的定價投資和產品成本相關的利潤和利潤驅動的，但主要是定價投資，然後是營業額。這些是每股收益的真正驅動因素，其中一些項目的同比影響。我們可能會在第三季的電話會議中詳細闡述這意味著什麼。但這並不是一個重要的部分。

And my second question is, post-sale of Worldpac, where do you want to take leverage? How much debt will you pay down to get to that leverage ratio?

我的第二個問題是，Worldpac出售後，你想在哪裡發揮槓桿作用？為了達到這個槓桿率，你需要償還多少債務？

Long-term, we want to be at a 2.5. I mean, obviously that's when we look at it from a RemainCo standpoint. When we close this transaction, we'll be evaluating what that looks like. But ultimately we want to remain investment grade long-term and we want to be at a ratio of about 2.5. So we'll continue to look at what that means from a balance sheet standpoint.

從長遠來看，我們希望達到 2.5。我的意思是，顯然這是我們從留歐派的角度來看的。當我們完成這筆交易時，我們將評估它的情況。但最終我們希望長期保持投資級別，並希望比率保持在 2.5 左右。因此，我們將繼續從資產負債表的角度來看這意味著什麼。

And I'll just say that you think about this in the context of a turnaround. So we pick up $1.5 billion here, got close to $5 million in terms of our internal generation. So strengthening the strengthening the balance sheet is a key step. And as we think about the different potential uses, whether it's with debt or company investments or shareholders, it's exciting to now have that cash infusion to fuel the journey.

我只想說，你要在扭虧為盈的背景下思考這個問題。因此，我們在這裡獲得了 15 億美元，就我們的內部發電而言，獲得了接近 500 萬美元。因此，強化資產負債表是關鍵一步。當我們考慮不同的潛在用途時，無論是債務、公司投資或股東，現在有現金注入來推動這一進程是令人興奮的。

I think, again, -- I want to emphasize for everybody on the call, selling Worldpac and creating a singular focus. If you just look at key activities associated with a turnaround, right, you simplify the business, you create focus on what the company is going to do. You have a strategy that everybody understands and then you set about doing it. And then, by the way, if you have the luxury of a strong balance sheet to help undertake that journey all the better.

我想再次強調，我想向參加電話會議的每個人強調，銷售 Worldpac 並創造一個單一的焦點。如果您只專注於與扭虧為盈相關的關鍵活動，那麼您就可以簡化業務，並將注意力集中在公司將要做什麼。你有一個每個人都理解的策略，然後你就開始實施它。順便說一句，如果您擁有強大的資產負債表，可以更好地完成這趟旅程。

Chris Bottiglieri, BNP Paribas.

克里斯‧波蒂列裡 (Chris Bottiglieri)，法國巴黎銀行。

Hey, guys, thanks for squeezing me in. Just wanted to kind of parse through the store opening plan? -- That seems like something incremental. Hey guys, just wanted to ask about the store opening plan. So I think you're going to spend like I think it would cost about a $1 million to $2 million per box to open a store, free cash for this year is at $100 million. Ex-Worldpac probably breakeven would be my guess.

嘿，夥計們，謝謝你們邀請我。 ——這看起來像是漸進的事情。大家好，想問一下開店計畫。所以我認為你會像我想像的那樣花費大約每盒100萬到200萬美元來開一家商店，今年的自由現金為1億美元。我的猜測是，前 Worldpac 可能會實現盈虧平衡。

But how do you think about funding the store growth? Is it going to come from the proceeds of Worldpac or is it going to be just contingent on improving margins and sales first and then you can kind of return to store growth, trying to see the timeline and the funding going forward?

但您如何看待為商店成長提供資金？它是來自 Worldpac 的收益，還是僅僅取決於利潤率和銷售額的提高，然後你可以回歸商店成長，嘗試了解未來的時間表和資金？

So good question. So it's a little both. So we actually open stores every year, right. But as we go forward, having a robust store opening capability is an important part of creating growth. And in terms of where you pick, where you open and how you open, what we find is, makes all the difference. If you open in a market where you're already known and you have some regional market share, the takeoff of that store tends to be much quicker than if you open in an area where you're the last guy in the market.

好問題。所以兩者都有一點。所以我們實際上每年都會開店，對吧。但隨著我們前進，擁有強大的開店能力是創造成長的重要部分。我們發現，就您選擇的地點、在哪裡打開以及如何打開而言，一切都與眾不同。如果你在一個已經知名的市場開店，並且擁有一定的區域市場份額，那麼該商店的起飛往往會比你在市場上最後一個進入的地區開店要快得多。

So one of the things that we needed was to bolster our real estate team to make that happen. And that's occurred. And you got to think about that in terms of site selection, by the way, whether you're building or whether you're leasing, in terms of how you go about your stocking programs, your kitting and fitting, your grand opening processes. All of those muscles needed to be rejuvenated.

因此，我們需要的事情之一就是加強我們的房地產團隊以實現這一目標。這已經發生了。順便說一句，無論您是在建造還是租賃，您都必須在選址方面考慮這一點，包括如何進行庫存計劃、裝備和裝修以及盛大的開業流程。所有這些肌肉都需要恢復活力。

And they have been, and we've been opening some stores that have put that to practice. So now how do you go accelerate it, right. So one of the things you do is you go to the team and you say, okay, go figure out how many stores we can open. And they come back and say, hey, we can get to opening 100 stores a year and do that sequentially, right. That's an important part of it.

他們已經做到了，我們已經開設了一些商店來實踐這一點。那麼現在你如何加速它，對吧。所以你要做的一件事就是你去找團隊說，好吧，去算一下我們可以開多少家店。他們回來說，嘿，我們可以每年開設 100 家商店，並且按順序進行，對吧。這是其中重要的一部分。

So that's what they've been doing and now they're identifying the markets where we can go do that. So how do you pay for it. I think you offered some numbers as to what those costs look like. So some of it comes from the proceeds, I think, absolutely right. That's a great way to get the engine going.

這就是他們一直在做的事情，現在他們正在確定我們可以這樣做的市場。那麼如何支付呢。我想你提供了一些關於這些成本的數字。所以其中一些來自收益，我認為這是絕對正確的。這是讓引擎運轉的好方法。

Some would come from our traditional CapEx budget that we set aside, and I think Ryan's put us at $200 million to $250 million, right. So there'll be money there. And then if you wanted to further amplify it and maybe you can get to something, even a higher number of new store openings then that comes from some of the growth or the benefit that we're creating from some of these turnaround activities.

有些將來自我們預留的傳統資本支出預算，我認為瑞安給我們的預算是 2 億至 2.5 億美元，對吧。所以那裡會有錢。然後，如果你想進一步擴大它，也許你可以得到一些東西，甚至更多的新店開業，那麼這來自我們從這些週轉活動中創造的一些增長或效益。

Got you. Makes a lot of sense. And that's a good segue to my next question. How do you think about the store closures? Do you have like kind of a is there a way to frame what percentage of stores are for while losing money? How do you kind of balance the need to scale, particularly in a given market, versus store closures? How do you balance like looping the scale from closing stores and what's the opportunity?

明白你了。很有道理。這是我下一個問題的一個很好的延續。您如何看待商店關門事件？您是否有一種方法可以在虧損的情況下確定商店的百分比？您如何平衡擴張的需要（尤其是在特定市場中）與關閉商店之間的關係？您如何平衡關閉商店和循環規模以及機會是什麼？

So, it's sort of the reverse process. So look at markets where we don't have regional market share. Look at markets or individual stores where our performance is unprofitable or below where we want it to be or maybe where the sales productivity isn't coming.

所以，這是一個相反的過程。因此，看看我們沒有區域市場份額的市場。看看我們的業績無利可圖或低於我們期望的水平，或銷售生產力沒有達到的市場或個別商店。

And by the way, the first thing we do is we look at, say, hey, is this a function of we don't have the right management in place, right. Because often you, the GM makes a huge difference in terms of how a store performs or have, what's the outside sales participation or the CPP's performance. We always look at those things first. But you could look at individual stores, we can stack them, and we could say, hey, here's a store where economically, it's not where we want it to be. We don't think it's a function of making a leadership change.

順便說一句，我們做的第一件事是我們看看，嘿，這是否是我們沒有適當的管理的一個功能，對吧。因為通常情況下，總經理會在商店的表現或擁有情況、外部銷售參與或 CPP 的表現方面發揮巨大的作用。我們總是先考慮這些事情。但你可以看看各個商店，我們可以將它們堆疊起來，我們可以說，嘿，這家商店從經濟角度來看，它不是我們想要的地方。我們認為這不是領導層變動的功能。

And so therefore, we'll close it. It could be the physical location of the store based on how easy it is to get in and out of the parking lot. It could be the market conditions in terms of how we're doing generally. And so that's what we'll do. And I think that's an important part of it. And if you close stores that are actually a cash flow drag that's money that then can go to opening a store in a market where it's a cash flow benefit.

因此，我們將關閉它。它可能是商店的實際位置，具體取決於進出停車場的難易程度。這可能是我們整體表現的市場狀況。這就是我們要做的。我認為這是其中重要的一部分。如果你關閉實際上拖累現金流的商店，那麼這些錢就可以用來在有現金流效益的市場開設商店。

Okay. Thank you.

好的。謝謝。

Okay. I think we're at time. I just thank everybody for the call today. We appreciate your questions. Look forward to describing more when we get to the third quarter. And know that on behalf of everybody at Advance, we're excited as we move forward in this next chapter of our journey. One blended box, one Advance with our independents growing in the Auto Parts industry. Thank you

好的。我想我們來得正是時候。我只是感謝大家今天的來電。我們感謝您的提問。期待我們在第三季時描述更多內容。我謹代表 Advance 的每個人，對我們在旅程的下一個篇章中前進感到興奮。一個混合盒，一個前進，我們的獨立公司在汽車零件行業中不斷成長。謝謝

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。現在您可以斷開線路。