領先汽車配件 (AAP) 2024 Q3 法說會逐字稿

Results.

結果。

After that, Ciena provide an update, then Brian will discuss following manual questions now or casino Kelly chain.

之後，Ciena 提供更新，然後 Brian 將立即討論以下手動問題或賭場凱利鏈。

Morning.

早晨。

Advanced took a big step forward on its journey to operational excellence and value creation.

Advanced 在卓越營運和價值創造的道路上向前邁出了一大步。

Our entire management team is confident for guided today, we will discuss Q3 results, our near-term outlook and our strategic path forward through 2027.

我們整個管理團隊對今天的指導充滿信心，我們將討論第三季的業績、我們的近期前景以及我們到 2027 年的策略路徑。

As you'll note from our earnings release this morning, we have provided you with a lot of information.

正如您從今天早上的財報中註意到的那樣，我們為您提供了很多資訊。

We have outlined the financial position of Advance Auto Parts, RemainCo so that you have a clear and fuller picture of where we are, where we are heading and how we will measure our progress along the way.

我們概述了 Advance Auto Parts 和 RemainCo 的財務狀況，以便您更清楚、更全面地了解我們的現狀、前進方向以及我們將如何衡量一路走來的進展。

It is very satisfying for me to see that with the team effort involved, we now have line of sight to achieve our 2027 outlook, which I'm delighted to share with you today.

我非常滿意地看到，透過團隊的努力，我們現在已經能夠實現 2027 年的展望，今天我很高興與大家分享。

We are laying out of our anticipated adjusted operating margin of approximately 7% by year end 2027.

我們預計到 2027 年底調整後營業利潤率將達到約 7%。

My confidence in achieving these goals stems from approximately 500 basis points of expected improvement that will be driven primarily by factors within our management teams control, all including merchandising excellence, internal supply chain transformation and store efficiency.

我對實現這些目標的信心源於大約 500 個基點的預期改進，這些改進主要由我們管理團隊控制範圍內的因素驅動，所有這些因素包括卓越的銷售、內部供應鏈轉型和商店效率。

Before we get into those details, I would like to express my gratitude to the more than 65,000 hard-working team members that advance whose efforts during the recent has been exceptional.

在我們討論這些細節之前，我想對 65,000 多名辛勤工作的團隊成員表示感謝，他們在最近的努力中取得了非凡的成就。

We are thankful to our many associates who partnered with local communities to bring relief to those impacted with efforts ranging from helping reopening our stores to leading donation drives this quarter came in below our expectations as the sales softness that began in early Q3 persisted throughout the quarter.

我們感謝我們的許多員工與當地社區合作，為受影響的人們提供救濟，從幫助重新開放我們的商店到領導捐款活動等，本季度的結果低於我們的預期，因為第三季度初開始的銷售疲軟在整個季度持續存在。

Macro headwinds and economic uncertainty continues to weigh on the consumer spending.

宏觀不利因素和經濟不確定性持續影響消費者支出。

While our results were also impacted by other events such as hurricanes and the CrowdStrike outage.

我們的結果也受到颶風和 CrowdStrike 中斷等其他事件的影響。

We are pleased to have made progress on our strategic actions include the completion of the sale of Worldpac and a comprehensive productivity rig view of our assets.

我們很高興我們的策略行動取得了進展，包括完成 Worldpac 的出售以及對我們的資產進行全面的生產力鑽機視圖。

This review has identified opportunities to improve our adjusted operating income margin over the next three years through a broad range of actions, including a realignment of our stores and DC portfolio.

此次審查確定了未來三年透過一系列行動（包括重新調整我們的門市和配送中心投資組合）提高調整後營業利潤率的機會。

Over the past year, I have spent a considerable amount of time at our some in our distribution centers meeting with our team members, vendors and customers.

在過去的一年裡，我花了相當多的時間在我們的配送中心與我們的團隊成員、供應商和客戶會面。

Throughout these conversations, one common thread that emerge is advances rich legacy and the important role we play in the industry as of our customers.

在這些對話中，出現的一個共同點是推動豐富的遺產以及我們作為客戶在業界的重要作用。

With that foundation today, we are excited to share our strategic and financial plan for the next three years, but first, let me pass it on to Ryan to discuss our Q3 results, Brian stain, and good morning, everyone.

今天，有了這個基礎，我們很高興分享我們未來三年的戰略和財務計劃，但首先，讓我將其轉交給瑞安，討論我們的第三季度業績，布萊恩染色，大家早上好。

Following the successful sale of Worldpac, we have made certain changes in the presentation of our financial statements.

成功出售 Worldpac 後，我們對財務報表的列報方式進行了某些更改。

First, our results show a breakdown.

首先，我們的結果顯示了細分。

We have discontinued ops related to Worldpac and continuing operations, reflecting results for the advanced became sort of better understanding of performance.

我們已經停止了與 Worldpac 相關的運營並繼續運營，這反映出先進的結果變得對性能有了更好的理解。

We report certain financial measures on an adjusted non-GAAP EPS to exclude the impact of certain items.

我們報告了調整後的非公認會計準則每股收益的某些財務指標，以排除某些項目的影響。

Our guidance and financial plan for the next three years is based on these these adjusted financial measures.

我們未來三年的指導和財務計畫是基於這些調整後的財務措施。

Lastly, our results were also impacted by certain atypical items that are not included in the non-GAAP adjustments, which I will discuss shortly.

最後，我們的結果也受到某些未包含在非公認會計原則調整中的非典型項目的影響，我將很快討論這些項目。

Our view, looking at our reported results through this lens will provide more helpful understanding of our performance.

我們認為，透過這個視角查看我們報告的結果將有助於我們更深入地了解我們的表現。

Now let's turn to reported results for advanced continuing operations.

現在讓我們來看看高階持續營運的報告結果。

Net sales from continuing operations were 2.1 billion, a 3% decrease compared with Q3 last year.

持續經營業務淨銷售額為21億美元，較去年第三季下降3%。

Driven by continued softness in the overall consumer spending environment.

受整體消費者支出環境持續疲軟的推動。

In addition to other Hackett U.S. this quarter, first, our store and service systems were impacted by the global CrowdStrike system outage due to which stores temporarily unable to serve customers and close transactions.

本季除Hackett美國其他地區外，首先，我們的門市和服務系統受到全球CrowdStrike系統中斷的影響，導致門市暫時無法為顧客提供服務並關閉交易。

Second, later in the quarter, hurricane Helene impacted sales at over 300.

其次，本季晚些時候，颶風海倫 (Helene) 影響銷量超過 300 輛。

We STM, but both these events combined accounted for approximately 50 basis point headwind to Q3 comp.

我們 STM，但這兩個事件加起來對第三季度的業績造成了約 50 個基點的逆風。

Without these events, our two-year comparable sales growth would have been about in line with the second quarter and our expectations in terms of channel performance, both pro and DIY decline in the low single digit range with pro forming relatively better.

如果沒有這些事件，我們的兩年可比銷售成長將與第二季和我們對通路業績的預期大致一致，專業和 DIY 的下降幅度都在較低的個位數範圍內，專業形成相對較好。

Importantly, on a two-year basis, our pro comp was positive and accelerated compared with last quarter.

重要的是，在兩年的基礎上，我們的專業競爭是積極的，並且與上季度相比有所加速。

During Q three, transactions declined in the low single digit range, led by a mid-single-digit decline in DIY. transactions, average ticket growth with both channels.

第三季度，交易量在低個位數範圍內下降，其中 DIY 出現中個位數下降。交易量，兩個管道的平均門票增長。

From a category perspective, we saw strength in batteries, filters and Engine Management.

從品類角度來看，我們看到了電池、濾網和引擎管理的優勢。

Sales and discretionary categories were weaker.

銷售和非必需品類均較弱。

Gross profit from operations was 908 million or 42.3% of net sales, an improvement of approximately 540 basis points over the prior year.

營業毛利為 9.08 億歐元，佔淨銷售額的 42.3%，比上年提高約 540 個基點。

As a reminder, in Q3 last year, we had one-time inventory adjustments contributed approximately 525 basis points of the year over year improvement.

提醒一下，去年第三季度，我們的一次性庫存調整貢獻了約 525 個基點的年比改善。

The balances driven by stabilization of product costs, offset by pricing investments from earlier in the year.

產品成本穩定推動的平衡被今年稍早的定價投資所抵銷。

Adjusted SG&A from continuing operate 191 million are about flat year over year.

持續經營調整後的 SG&A 為 1.91 億美元，與去年同期基本持平。

As a percentage of net sales, adjusted SG&A was 41.5% compared with 40.2% with 130 basis point deleverage attributed to lower sales.

調整後的 SG&A 佔淨銷售額的百分比為 41.5%，而由於銷售額下降導致去槓桿化 130 個基點，調整後的 SG&A 為 40.2%。

We incurred higher labor-related expenses to frontline investments, which were offset by our cost-out efforts.

我們在一線投資中產生了較高的勞動力相關費用，但我們的成本支出抵消了這些費用。

Adjusted operating income from continuing operations was 16.7 million, an 80 basis points as a percent of net sales compared to negative 3.3% last year.

持續經營業務調整後營業收入為 1,670 萬歐元，佔淨銷售額的百分比上升 80 個基點，而去年為負 3.3%。

Adjusted diluted loss per share from continuing operations was $0.04 compared with a loss of $1.19 per share in the prior year.

持續經營業務調整後的每股稀釋虧損為 0.04 美元，而上一年每股虧損為 1.19 美元。

We estimate that the loss in sales due to the CrowdStrike outage and hurricane impacts accounted for approximately $0.13 of EPS headwind during the quarter.

我們估計，由於 CrowdStrike 中斷和颶風影響造成的銷售損失約佔本季 EPS 阻力的 0.13 美元。

To conclude my discussion on Q2 results, I would like to provide some additional details of certain atypical items that influenced Q3 results.

為了結束我對第二季結果的討論，我想提供一些影響第三季結果的某些非典型項目的額外細節。

As a reminder, these items are not part of our adjusted non-GAAP results.

提醒一下，這些項目不屬於我們調整後的非 GAAP 績效的一部分。

We believe that explanation of these items is helpful to understand our performance.

我們相信對這些項目的解釋有助於了解我們的表現。

As you can side, we estimate atypical items amounted to 125 basis points of operating margin headwind and approximately $0.34 of EPS headwind during the third quarter.

如您所知，我們估計第三季的非典型項目將導致營運利潤率下降 125 個基點，每股收益下降約 0.34 美元。

While Q3 performance was below our expectations, we believe that we have the right action plan to deliver improved results in the quarters ahead, and I look forward to sharing details of our financial plan later.

雖然第三季的業績低於我們的預期，但我們相信我們有正確的行動計劃，可以在未來幾個季度實現更好的業績，我期待稍後分享我們財務計劃的詳細資訊。

Now let me hand it back to Shane to provide some insights in our strategic path forward.

現在讓我把它交還給肖恩，為我們前進的戰略道路提供一些見解。

Thank you, Ryan and honored to lead this company and work alongside many talented team members.

謝謝瑞安，很榮幸能夠領導這家公司並與許多才華橫溢的團隊成員一起工作。

I am confident in the team's ability to execute our strategic plan and deliver stronger results.

我對團隊執行策略計劃並取得更強勁成果的能力充滿信心。

To that end, I would like to begin by highlighting the key drivers of our turnaround for one.

為此，我想先強調我們扭虧為盈的關鍵驅動因素。

We're a leading player and the more than TWD150 billion auto after three that has strong demand drivers.

我們是領先的參與者，是價值超過新台幣 1500 億的汽車企業，位居第三，具有強大的需求驅動力。

We believe that this plan will position us to grow by serving millions of customers through our extensive store network where we have the right to win.

我們相信，這項計劃將使我們能夠透過我們擁有獲勝權利的廣泛商店網路為數百萬顧客提供服務，從而實現成長。

As a reminder, even incremental improvements in our performance and yield substantial results.

提醒一下，即使是漸進式的績效改善也會產生實質的成果。

Number two, our strategy is centered on getting back to the fundamentals of arts.

第二，我們的策略集中在回歸藝術的基礎。

The slope of our improvement will be determined by the multitude of smaller decisions made by our team, and we are embedding industry best practices in our operations and focusing on executing a clear strategic framework to elevate the performance of the advance blended box.

我們改進的斜率將取決於我們團隊做出的眾多較小決策，我們正在將行業最佳實踐融入我們的營運中，並專​​注於執行清晰的策略框架，以提升先進混合盒的性能。

Number three, our leadership team brings deep automotive experience with broad retail fundamental expertise.

第三，我們的領導團隊擁有深厚的汽車經驗和廣泛的零售基礎專業知識。

In addition, following the World pack sale, we will also have an enhanced Lytton providing incremental capital to execute our plan plan.

此外，在世界包銷售之後，我們還將擁有一個增強的 Lytton，提供增量資本來執行我們的計劃。

Number four, we completed a thorough assessment of operational productivity across our asset base.

第四，我們完成了整個資產基礎營運生產力的全面評估。

Slide opportunities to improve profitability.

滑動提高盈利能力的機會。

We believe our plan, including store footprint optimization, will enable us to narrow our margin gap to the industry.

我們相信，我們的計劃，包括商店佔地面積優化，將使我們能夠縮小與該行業的利潤差距。

And number five, we are now introducing our goal to deliver approximately 7% adjusted operating income margin by the end of fiscal 2027.

第五，我們現在提出的目標是在 2027 財年末實現約 7% 的調整後營業利潤率。

We expect to achieve this by stabilizing the business to the stronger productivity.

我們希望透過穩定業務以提高生產力來實現這一目標。

This will provide a foundation to subsequently deliver value for our shareholders over time.

這將為隨後為我們的股東創造價值奠定基礎。

Now let me discuss each of these drivers on Slide 10.

現在讓我討論投影片 10 上的每一個驅動因素。

Use advanced operates in an attractive sector with strong demand drivers and access to a large addressable market in the US, vehicles in operation continues to grow with over 280 million cars on the road, and nearly 85% of those vehicles are at least four years old.

使用先進的營運方式，在一個具有強大需求驅動力的有吸引力的行業中運營，並進入美國的大型潛在市場，運營中的車輛持續增長，路上行駛的汽車超過2.8 億輛，其中近85%的車輛車齡至少四年。

The average age of these vehicles has continued to grow and is currently at 12.8 years as consumers to hold onto their cars longer.

隨著消費者持有汽車的時間延長，這些車輛的平均車齡持續成長，目前為 12.8 年。

This trend is influenced by factors such as new vehicle acquisition costs and the high cost of insurance.

這一趨勢受到新車購置成本和高保險成本等因素的影響。

Despite volatility in energy prices, miles driven continues to grow, creating the need for regular maintenance.

儘管能源價格波動，但行駛里程仍在持續成長，因此需要定期維護。

These factors are expected to contribute to healthy consumer spending on auto repair and may agents support parts and accessories and creating a strong backdrop for growth in the near term, we are cognizant of the economic uncertainty that is weighing on consumer sentiment, and we are planning our business accordingly to reposition advanced for growth.

這些因素預計將有助於消費者在汽車維修方面的健康支出，代理商可能會支持零件，並為短期內的成長創造強勁的背景，我們認識到經濟的不確定性正在影響消費者的信心，我們正在計劃我們的業務相應地重新定位以促進成長。

We are getting back to the basics, which starts with putting the customer first, when I began this from a year ago, we started work on a cultural change to put greater emphasis on listening to the customer.

我們正在回到基礎，首先把客戶放在第一位，當我一年前開始這樣做時，我們開始致力於文化變革，以更加重視傾聽客戶的意見。

We strongly believe that when we put the customer first and align the rest of the organization meet the customers' needs, we win focus in mind.

我們堅信，當我們將客戶放在第一位並讓組織的其他部門滿足客戶的需求時，我們就能贏得關注。

We have taken several decisive action over the last year.

去年我們採取了幾項決定性行動。

These include refocusing our efforts on the blended box, which drove our decision to sell Worldpac and retain our Canadian business.

其中包括將我們的精力重新集中在混合盒上，這促使我們決定出售 Worldpac 並保留我們的加拿大業務。

We also reduce costs and then invested additional resources in our frontline to help reduce turnover and enable frontline team members to better serve our customers.

我們也降低成本，然後在一線投入更多資源，以幫助減少人員流動，使第一線團隊成員能夠更好地為客戶服務。

Through these efforts.

透過這些努力。

Turnover in four key field rolls has been reduced by nearly 700 basis points over the past year.

去年，四個關鍵領域的成交額減少了近 700 個基點。

We initiated the consolidation of our supply chain, which has been accompanied by the rollout of market hubs to create economies of scale.

我們開始整合供應鏈，同時推出市場中心創造規模經濟。

We are seeing early results that the market hubs and the served by the market hubs are comping better relative to markets without hubs.

我們看到的早期結果表明，市場中心和市場中心所提供的服務相對於沒有中心的市場表現較好。

We also invested in pricing to improve our competitive set position and are seeing improvement in unit sales trends.

我們也投資於定價以提高我們的競爭地位，並看到單位銷售趨勢的改善。

We also add that we've recovered approximately half of the investment of these pricing moves on an annualized basis.

我們還補充說，我們已經收回了這些定價變動的年化投資的大約一半。

From a talent perspective, our new leaders have been rebuilding teams and processes to focus on core retail fundamentals, which is integral to our success during the turnaround.

從人才的角度來看，我們的新領導一直在重建團隊和流程，以專注於核心零售基礎知識，這是我們在轉型期間取得成功不可或缺的一部分。

Next slide.

下一張投影片。

Over the last year, we have refocused the organization's actions on improving efficiency of the blended box, which serves both DIY and Pro customers from the same store.

去年，我們重新將組織的行動重點放在提高混合盒的效率上，該盒為同一家商店的 DIY 和 Pro 客戶提供服務。

In our view, the box focus will enable us to grow our share in the large fragmented market where the top four players account for just under 30% share.

我們認為，專注於盒子將使我們能夠擴大在大型分散市場中的份額，在該市場中，前四大參與者所佔份額略低於 30%。

We are dedicating our efforts to provide Pro and DIY customers with a mix of well-recognized, high-quality, national and private label brands, including our popular Car Quest and Die Hard lines of product.

我們致力於為專業和 DIY 客戶提供一系列廣受認可的高品質民族和自有品牌品牌，包括我們廣受歡迎的 Car Quest 和 Die Hard 系列產品。

We have a loyal base of more than TRY15 million Speed Perks members and tens of thousands of Pro rewards members to support our growth based on industry estimates, Pro is expected to be the primary engine of growth due to shifting consumer preferences, which is in part being driven by increasing parts complexity.

我們擁有超過1500 萬土耳其里拉的Speed Perks 會員和數以萬計的Pro 獎勵會員的忠誠基礎，根據行業估計支持我們的增長。某程度上是受到零件複雜性增加的推動。

We have access to a large vendor community that is fully supportive of our turnaround efforts and our renewed focus on the blended box with our merchandising initiatives, development of effective and supply chain capabilities and changes to our store operating model, we will and there's to serve pros faster.

我們擁有一個大型供應商社區，他們完全支持我們的扭虧為盈，並透過我們的銷售計劃、開發有效的供應鏈能力以及改變我們的商店運營模式重新關注混合盒，我們將竭盡全力為您提供服務專業人士更快。

In our Pro sales team.

在我們的專業銷售團隊中。

We have redesigned incentive structures and increased wages to market levels to improve retention and drive higher product Tivity.

我們重新設計了激勵結構，並將工資提高到市場水平，以提高保留率並推動更高的產品活力。

In our DIY. business.

在我們的DIY中。商業。

We are making investments in stores, team member training and e-commerce capabilities to improve customer experience and conversion.

我們正在對商店、團隊成員培訓和電子商務能力進行投資，以改善客戶體驗和轉換率。

On page 13, you can see that our executive team has nearly 300 years of combined relevant leadership experience.

在第 13 頁上，您可以看到我們的執行團隊擁有近 300 年的全面相關領導經驗。

We have recently brought in talented leaders in finance real estate merchandising who possess fundamental expertise and executing retail operations.

我們最近引進了金融房地產行銷方面的才華橫溢的領導者，他們擁有基本的專業知識和執行零售業務的能力。

Not shown on this page, but important mentioned is ours were leaders, including our field-based regional vice presidents, bring extensive automotive expertise.

本頁未顯示，但重要的是我們的領導者，包括我們的現場區域副總裁，帶來了廣泛的汽車專業知識。

We have augmented functional talent in merchandising and supply chain, and I'm confident that this team's blend of automotive and retail fundamental knowledge.

我們增強了銷售和供應鏈的職能人才，我相信這個團隊融合了汽車和零售基礎知識。

Next slide, last week, we announced the successful completion of the world pack sale, adding 1.5 billion of additional liquidity to our balance sheet.

下一張投影片，上週，我們宣布成功完成全球包銷售，為我們的資產負債表增加了 15 億美元的額外流動性。

As a result, we currently have approximately 2 billion of cash, which exceeds our aggregate.

因此，我們目前擁有約 20 億現金，這超出了我們的總和。

As Ryan will describe in more detail later, we believe the combination of the world pack proceeds and the anticipated improvement in our operating cash flow will provide the requisite liquidity to run our business and fund our investments in the coming years, we are focused on two main priorities.

正如瑞安稍後將更詳細地描述的那樣，我們相信世界包收益和我們營運現金流的預期改善相結合，將為我們的業務運營和未來幾年的投資提供必要的流動性，我們專注於兩個主要優先事項。

The first is investing in activities to improve the business.

首先是投資於改善業務的活動。

And the second is supporting our balance sheet, including repaying debt at or before maturity.

第二是支持我們的資產負債表，包括在到期日或到期前償還債務。

Next slide, in August, we began a comprehensive review of asset productivity.

下一張投影片是八月份，我們開始對資產生產力進行全面檢視。

Our goal is to assess actions already underway and identify additional areas of structural changes that would establish a stronger foundation for our future.

我們的目標是評估已經採取的行動，並確定結構性變革的其他領域，為我們的未來奠定更堅實的基礎。

Following this review, we have anchored our strategic plan on three pillars to put us on the live consistent profitable growth as shown on the slide, starting with our store operations.

經過這次審查，我們將我們的策略計劃固定在三個支柱上，使我們能夠實現持續的獲利成長，如幻燈片所示，從我們的商店營運開始。

As indicated in our release this morning, we made the decision to close certain forming nonstrategic stores in the US to better position our asset base for long-term sustainable growth as we move along our turnaround journey with the revised asset base, we are also redesigning our base store operating model to yield stronger labor productivity.

正如我們今天早上發布的新聞稿中所指出的，我們決定關閉在美國的某些正在形成的非戰略商店，以更好地定位我們的資產基礎，以實現長期可持續增長，隨著我們在調整後的資產基礎上邁向轉型之旅，我們也在重新設計我們的基地商店營運模式可以提高勞動生產力。

The second pillar is merchandising excellence.

第二個支柱是卓越的行銷。

We are taking a fundamentally different approach to negotiating with vendors to lower our direct product.

我們正在採取一種根本不同的方法與供應商談判以降低我們的直接產品。

This involves working with our suppliers to show how a partnership with advanced can drive a mutually profitable growth.

這涉及與我們的供應商合作，展示與先進的合作夥伴關係如何推動互惠互利的成長。

Regarding assortment management, we already have work underway to improve our parts availability by market and to increase the speed of customer service.

關於分類管理，我們已經開展工作，以提高市場上的零件可用性並提高客戶服務速度。

Earlier this year, we also made critical pricing changes to become more competitive while avoiding unnecessary discounting in keeping with our industry's rational pricing practices.

今年早些時候，我們也進行了重要的定價調整，以提高競爭力，同時避免不必要的折扣，以符合我們行業的合理定價做法。

Our review is also revealed opportunities to improve margins by better managing promotions, including reducing unproductive promotions.

我們的審查還揭示了透過更好地管理促銷活動（包括減少無成效的促銷活動）來提高利潤的機會。

And the third is supply chain.

第三是供應鏈。

We continue to make progress in consolidating our distribution centers to operate with a streamlined network of large distribution centers and as a result of closed or converted 10 small DCs, we have opened 18 market hub stores to date and are targeting to open 60 by mid 2027.

我們在整合配送中心方面繼續取得進展，以精簡的大型配送中心網絡運營，由於關閉或改造了 10 個小型配送中心，我們迄今為止已開設 18 家市場中心商店，併計劃到 2027 年中期開設 60 家。

This slightly behind our original expectation of 2026 as we pause the build-out to complete the closure of stores and DCs.

這略低於我們對 2026 年的最初預期，因為我們暫停了擴建工作以完成商店和配送中心的關閉。

And this morning, while we consolidate PCs and build new hubs, we are simultaneously pursuing opportunities to optimize our DC to store transportation routes to reduce costs and increased productivity.

今天早上，當我們整合 PC 並建立新的中心時，我們同時也在尋找機會優化我們的 DC 來儲存運輸路線，以降低成本並提高生產力。

Separately and in conjunction with other operational changes, we have made the difficult decision we made certain positions across the organization to align our structure to current business requirements and the execution of our strategic plan.

單獨並結合其他營運變革，我們做出了艱難的決定，我們在整個組織中確定了某些職位，以使我們的結構適應當前的業務需求和戰略計劃的執行。

We expect this will yield around 50 million in annualized savings.

我們預計這將帶來每年約 5000 萬美元的節省。

In addition to the the SG&A reductions announced last year.

除了去年宣布的銷售管理及行政費用削減之外。

Let me now dig deeper and provide an overview of our strategic actions across each of these pillars.

現在讓我更深入地挖掘並概述我們在每個支柱上的策略行動。

Next slide, a key component of our operational productivity review was evaluating the health of our stores.

在下一張投影片中，我們營運生產力審查的關鍵組成部分是評估我們商店的健康狀況。

During the review, we have made the decision to close more than 500 Advance stores and exit our relationship with more than 200 independent locations.

在審查過程中，我們決定關閉 500 多家 Advance 商店，並退出與 200 多家獨立門市的關係。

This reduction consists of complete market exits in certain Western style rates, coupled with the optimization of our footprint in other markets, including the eastern states where we have higher density.

這種減少包括以某些西式費率完全退出市場，以及優化我們在其他市場的足跡，包括我們密度較高的東部各州。

Further, there are four Western DCs that are included enters.

此外，還有四個西部特區被納入其中。

Our decision does not impact locations in Canada, we consider material during our evaluation process, and I'd like to further discuss three stability, DC productivity.

我們的決定不會影響加拿大的地點，我們在評估過程中會考慮材料，我想進一步討論三個穩定性、DC 生產力。

Let's begin with store profitability.

讓我們從商店盈利能力開始。

We have operating and financial performance of stores across our entire footprint, along with the relative competitive intensity to determine the value viability of each location.

我們擁有整個業務範圍內商店的營運和財務績效，以及相對競爭強度，以確定每個地點的價值可行性。

Second distribution center productivity are for DC.s on the West Coast, sort of a lower concentration of stores, and we would need to allocate significant capital and resources to infill those markets.

第二個配送中心的生產力是針對西海岸的華盛頓特區，商店的集中度較低，我們需要分配大量的資本和資源來填補這些市場。

We do not believe this would be the best of our capital and believe that investing in other core areas, the business will help deliver stronger profitability.

我們不認為這將是我們最好的資本，並相信投資於其他核心領域，該業務將有助於實現更強的獲利能力。

As a result, we decided to close the four DCs and associated corporate stores and independent locations in these less dense markets, resulting in a complete exit of certain markets on the West Coast, and third, establishing a stronger foundation to simplify our execution.

因此，我們決定關閉這些密度較低的市場中的四個配送中心以及相關企業商店和獨立地點，從而完全退出西海岸的某些市場，第三，為簡化我們的執行奠定更堅實的基礎。

Our objective was to improve store concentration in our strongest markets to conserve resources and be better positioned to grow in those markets.

我們的目標是提高我們最強大市場中的商店集中度，以節省資源並更好地在這些市場中實現成長。

Following the Clover 75% of our revised store footprint will be in designate weighted market areas where we will have the number one or number two position based on store density.

繼三葉草之後，我們修改後的商店足跡的 75% 將位於指定的加權市場區域，根據商店密度，我們將在這些區域中佔據第一或第二的位置。

We expect to execute these closures by mid 2025 to 700 locations.

我們預計到 2025 年中期將關閉 700 個地點。

Outline for closure are dilutive to operating income by approximately 60 to $80 million, which we expect to recover.

關閉計劃將稀釋營業收入約 6,000 至 8,000 萬美元，我們預計將恢復。

Following the closures, we expect to collaborate with landlords to exit leases.

關閉後，我們希望與房東合作退出租約。

Store looks in a reasonable manner to manage the obligations on our balance sheet.

商店希望以合理的方式管理我們資產負債表上的義務。

Making the decision to close such a meaningful percentage of our store base was not an easy one as it affects a significant number of our team members.

做出關閉如此大比例的商店基地的決定並不容易，因為這會影響我們大量的團隊成員。

However, we believe this action is prudent to support the long-term health of the Company.

然而，我們認為此舉是謹慎的，有利於公司的長期健康發展。

Next slide.

下一張投影片。

As we execute our plans with an optimized store footprint, we expect to derive stronger value from our turnaround efforts.

當我們以優化的商店佔地面積執行我們的計劃時，我們期望從我們的周轉努力中獲得更大的價值。

This page provides a financial overview of our revised store footprint on and as our decision includes closure of approximately 10% of our corporate stores and approximately a 20% ROE reduction in U.S.

本頁提供了我們修改後的商店足跡的財務概覽，因為我們的決定包括關閉美國約 10% 的公司商店以及減少約 20% 的 ROE。

Independent of the higher share of independents is primarily driven by our decision to exit the West Coast markets where there is a higher concentration of these locations based on financial as 12 months, the reduction of the 700 locations is expected to reduce our net sales by approximately $700 million from five corporate store footprint base now implies about 4% higher sales per store compared to the store base pre closures.

獨立公司比例較高主要是由於我們決定退出西海岸市場，根據 12 個月的財務數據，這些地點更加集中，預計減少 700 個地點將使我們的淨銷售額減少約現在，五家公司商店足跡基地的7 億美元意味著每家商店的銷售額比關閉前的商店基地高出約4%。

Next slide, this page shows an updated map of our store locations.

下一張投影片，此頁面顯示了我們商店位置的更新地圖。

We believe that our revised store base will enable us to generate higher returns from our turnaround efforts and support them to performance in the future.

我們相信，調整後的門市基地將使我們能夠從扭虧為盈的努力中獲得更高的回報，並支持他們在未來取得業績。

In addition, we will focus new store growth in higher density markets and plan to achieve an annual opening cadence.

此外，我們將把新店成長重點放在密度較高的市場，並計劃實現每年開店的節奏。

Our real estate team has mapping out opportunities in each market, designing a plan to accelerate openings while compressing our opening time line.

我們的房地產團隊已經規劃了每個市場的機會，設計了加速開業的計劃，同時壓縮了開業時間。

Opening new stores is a successful way of growing regional market share and gives vendors the opportunity to grow with us.

開設新店是增加區域市場份額的成功方式，並為供應商提供了與我們一起成長的機會。

Next slide as a next step to activity in our stores, we are redesigning our operating model with an emphasis on quality and speed of service.

下一張投影片作為我們商店活動的下一步，我們正在重新設計我們的營運模式，重點是服務品質和速度。

Let's break this down by DIY and Pro, starting with DI. why we are adopting a data-driven centralized approach to managing team schedules based on DIY. travels, Jay general managers to dedicate is we are only amount of manual paper work that our GMs to.

讓我們從 DI 開始，按 DIY 和 Pro 來分解這個問題。為什麼我們採用數據驅動的集中式方法來管理基於 DIY 的團隊日程。出差，傑伊總經理奉獻的是我們只是我們的總經理所做的大量手工文書工作。

We are providing them with better reporting to expect their performance, and we're also replacing outdated RF scanners with Zebra devices.

我們為他們提供更好的報告以預期他們的表現，我們還用 Zebra 設備替換過時的射頻掃描器。

From a talent perspective, we recently launched centralized recruiting for stores in certain markets to give our key operational flexibility, and we plan to roll this out across all markets.

從人才角度來看，我們最近在某些市場啟動了門市集中招聘，以賦予我們關鍵的營運靈活性，我們計劃將其推廣到所有市場。

Last, so made the decision to sunset or UPS Access Point Program.

最後，所以做出了日落或UPS接入點計劃的決定。

The time devoted to UPS drop-offs in pickups took time away from serving our customers to elevate the quality of our service.

UPS 投遞和取件所花費的時間佔用了我們為客戶提供服務以提高服務品質的時間。

We have launched a mini training series for our team members so that they can build their knowledge faster and be better equipped to guide the customer with their repair and maintenance needs.

我們為團隊成員推出了迷你培訓系列，以便他們能夠更快地累積知識，並更好地指導客戶滿足維修和保養需求。

Moving on to the Pro, we are reallocating resources by sales volume, competitive intensity and customer demand.

轉向專業版，我們正在根據銷售量、競爭強度和客戶需求重新分配資源。

This includes amortization of our driver vehicles schedules and reduction in third-party deliveries and the management of commercial parts pros in stores.

這包括我們的司機車輛時間表的攤銷、第三方交付的減少以及商店中商業零件專業人士的管理。

With regard to driver schedules, we are assembled performance to allocate resources to high volume stores and manage labor costs and lower traffic stores.

在司機調度方面，我們整合績效，將資源分配給高流量商店，並管理勞動成本和低流量商店。

This approach will drive stronger labor productivity, while ultimately our time to service Pro customers to date or time to serve is slower than what we wanted to be.

這種方法將提高勞動生產力，但最終我們迄今為止為專業客戶提供服務的時間或服務時間比我們想要的要慢。

And we are focused on lowering this over time.

我們致力於隨著時間的推移降低這種情況。

Next slide, softer market and enhance our reputation as a destination for high-quality auto-parts, we need to consistently make available thousands of parts for our customers.

下一張投影片，市場疲軟並提高我們作為高品質汽車零件目的地的聲譽，我們需要持續為客戶提供數千種零件。

We have successfully added new leadership with critical expertise to transform our organization and reestablish Advance has a long term growth partner within the vendor community.

我們成功地增加了具有關鍵專業知識的新領導層，以改造我們的組織並在供應商社群中重新建立 Advance 的長期成長合作夥伴。

This starts with changing our philosophy with vendors from what can you do for me, we are undertaking joint business planning with our vendors discussing category strategies, placement first queues and mutually establishing rules to build trust.

首先改變我們與供應商的理念，從你能為我做什麼開始，我們正在與供應商進行聯合業務規劃，討論品類策略、放置優先隊列以及相互建立規則以建立信任。

Our conversations with vendors have been construct.

我們與供應商的對話已經建立。

We've and we look forward to building our dialogue with the aftermarket vendor community at our summit in January.

我們已經並且期待在一月份的峰會上與售後市場供應商社群建立對話。

In addition, we are also focused on improving cross-functional collaboration between our supply chain and merchandising teams to drive higher volumes and reduce costs to effectively serve the aftermarket based on different demand and service expectations.

此外，我們也致力於改善供應鏈和銷售團隊之間的跨職能協作，以提高銷售並降低成本，根據不同的需求和服務期望有效地服務售後市場。

We need to provide Parkinson's of skews at any given time.

我們需要在任何給定時間提供帕金森氏症的偏差。

This begins with product line reviews that help us identify unproductive SKUs, interest, new products, evaluate private versus national brands and assess supplier diversification to improve the speed with which we bring products to the market.

首先是產品線審查，幫助我們識別非生產性的 SKU、興趣、新產品，評估私有品牌與國家品牌，並評估供應商的多元化，以提高我們將產品推向市場的速度。

We expect to undertake between 202 hundred and 50 line reviews this year and and to pick up the pace over the next two years, our ability to bring parts to the market faster.

我們預計今年將進行 20200 至 50 條線路審查，並在未來兩年內加快步伐，提高我們更快地將零件推向市場的能力。

Also, David, at which the parts are set up in our system.

另外，大衛，這些部件是在我們的系統中設定的。

Our goal is to bring this time line down significantly.

我們的目標是大幅縮短這個時間。

By breaking down existing processes and leveraging automation setting it's faster will enable us to capture demand signals faster and results.

透過打破現有流程並利用自動化設置，它將使我們能夠更快地捕捉需求訊號和結果。

In effect, we've skewed to management across the network on assortment.

實際上，我們已經偏重於整個網路的分類管理。

Our goal is to ensure accurate availability of parts in our network.

我們的目標是確保我們網路中零件的準確可用性。

Our assortment is complex and includes more than 90 million unique store skew combinations we are addressing internally identified skew gaps and building competitive intelligence to expand availability for our customers will also support higher layer productivity as our frontline team can reduce time chasing parts from surrounding stores that they do in order to complete in the quarter, we have also started measuring store availability through DC and store in-stock depth.

我們的品種很複雜，包括超過9000 萬種獨特的商店傾斜組合，我們正在解決內部確定的傾斜差距並建立競爭情報以擴大客戶的可用性，這也將支持更高層的生產力，因為我們的一線團隊可以減少從週邊商店追逐零件的時間為了在本季度完成工作，我們也開始透過 DC 和商店庫存深度來衡量商店可用性。

Today.

今天。

This metric sits in the low 90s and we reached a high 90s level over time as we introduce technical capabilities along with bringing parts to market faster, we are reevaluating our promotional and discounting mechanisms to provide relevant offers to our customers and reduce unproductive promotions for our Pro business, our team is designing new category based and customer segmented promotional models alone was stronger technical testing capabilities to understand the impact of promotions.

該指標位於90 年代的低位，隨著時間的推移，我們達到了90 年代的高水平，因為我們引入了技術能力，並更快地將零件推向市場，我們正在重新評估我們的促銷和折扣機制，以便為我們的客戶提供相關優惠，並減少對我們的產品的無效促銷。了解促銷的影響。

These models will consider factors such as customer spending, volume and our speed of service and competitive density.

這些模型將考慮客戶支出、數量以及我們的服務速度和競爭密度等因素。

This data-driven enable us to be more targeted in our campaigns based on market characteristics.

這種數據驅動使我們能夠根據市場特徵更有針對性地開展活動。

In RDS., we plan to run fewer bigger based on our estimates.

在 RDS 中，我們計劃根據我們的估計減少規模。

The number of items sold at a discount on our website is almost two times higher compared to others the ROI on these for been inconsistent.

我們網站上以折扣價出售的商品數量幾乎是其他網站的兩倍，但這些商品的投資報酬率並不一致。

We have also created execution challenges for our teams and made them across multiple simultaneous promotions.

我們還為我們的團隊設定了執行挑戰，並使其跨越多個同時進行的促銷活動。

To optimize this.

為了優化這個。

Our team is focusing on the fundamental goal of driving higher comparable on a year-over-year basis and amplifying our vendor for funded media campaigns to influence traffic.

我們的團隊致力於實現逐年提高可比性的基本目標，並擴大我們資助媒體活動的供應商以影響流量。

Next slide, we are highly focused on optimizing our supply chain with one simple goal of reducing the time in which customers receive parts and doing so in the most economical manner.

在下一張投影片中，我們高度專注於優化我們的供應鏈，其簡單目標就是減少客戶接收零件的時間，並以最經濟的方式做到這一點。

To achieve this, we are consolidating our DC infrastructure to create economies of scale.

為了實現這一目標，我們正在整合我們的資料中心基礎設施以創造規模經濟。

At the beginning of the year, we are priority ATC's of varying sizes.

年初，我們優先考慮不同規模的ATC。

By 2026, we plan to operate 13 DC.s with each averaging about 500,000 square feet.

到 2026 年，我們計劃營運 13 個 DC，每個平均面積約 50 萬平方英尺。

This is a change from our prior expectation of 14 DC.s due to the exit of one large.

由於一個大型公司的退出，這與我們之前預期的 14 個 DC 有所不同。

Do you see on the West Coast related or as asset optimization work, these DCs will operate on a single warehouse management system to establish better skew tracking outbound inventory processes.

您是否看到在西海岸相關或資產優化工作中，這些配送中心將在單一倉庫管理系統上運行，以建立更好的偏差來追蹤出庫庫存流程。

We have successfully completed the conversion of our final DC to the new WMS. system as we consolidate the volume of smaller DCs in the larger ones, we began moving more of volume by a truckload shipments compared to LTL shipments, which lowers our overall freight costs.

我們已成功完成最終 DC 到新 WMS 的轉換。當我們將較小的配送中心的貨量整合到較大的配送中心時，我們開始透過整車運輸比零擔運輸更多的貨物，這降低了我們的整體貨運成本。

For example, in our home state of North Carolina and D.C. consolidation project has resulted in 15% more volume moving by truck load, which is lower freight costs.

例如，在我們的家鄉北卡羅來納州和華盛頓特區，整合項目使卡車裝載量增加了 15%，從而降低了貨運成本。

Operating fewer larger disease also provides an opportunity to optimize and outbound replenishment activities.

減少較大病害的營運也提供了優化和外運補給活動的機會。

We measure DC labor productivity through LPAH. four lines per hour, which shows the number of product lines picked and shipped on an hourly basis.

我們透過 LPAH 衡量華盛頓特區的勞動生產力。每小時 4 條生產線，顯示每小時揀選和出貨的產品線數量。

This KPI. is currently in the mid 20s range and are in interim goal is to improve it by 15.

這個關鍵績效指標。目前處於 20 左右範圍內，中期目標是將其提高 15。

To along with that, we're building a multi Echelon.

同時，我們正在建立一個多梯隊。

Our new market hubs are designed to improve our speed of service by placing 85,000 skews closer to the customer, thereby increasing availability by 70% compared to a hub store and buy more than 200% compared to our regular store.

我們新的市場中心旨在提高我們的服務速度，將85,000 條貨品放置在離客戶更近的位置，從而與中心商店相比，可用性提高了70%，與普通商店相比，購買量提高了200 % 以上。

While still early in our build out, this is a proven model in the industry and we are encouraged with the initial results.

雖然我們仍處於構建初期，但這是業界經過驗證的模型，我們對初步結果感到鼓舞。

On a year-to-date basis, comparable sales growth for a market hub and its network of service stores has been outperforming DMAs with out market hubs.

今年迄今為止，市場中心及其服務店網路的可比銷售成長一直優於沒有市場中心的 DMA。

This network also helps reduce the number of touches per product driving higher labor productivity.

此網路也有助於減少每個產品的接觸次數，從而提高勞動生產力。

For example, instead of a store driver going to multiple stores to fulfill a customer order, the order can be directly sourced from a single hub or market hub.

例如，訂單可以直接來自單一中心或市場中心，而不是商店司機前往多個商店來履行客戶訂單。

While the consolidation and build-out continue, we are also putting plans in action to lower fixed transportation costs in our replenishment model.

在繼續整合和擴建的同時，我們也正在實施計劃，以降低補貨模式中的固定運輸成本。

We plan to do this by optimizing routing from DCs to reduce the number of readouts, adding more stops along the route and renegotiating carrier contracts.

我們計劃透過優化從 DC 出發的路線來減少讀數數量、沿路線增加更多站點以及重新協商承運人合約來實現這一目標。

Separately, as part of the optimization, we are building capabilities to improve Bruce DC. service levels for stores to support more sales in high volume stores.

另外，作為優化的一部分，我們正在建立改進 Bruce DC 的功能。商店的服務水平，以支持大批量商店的更多銷售。

We fully recognize that it has a significant operating margin gap to the industry, and we are focused on narrowing that gap.

我們充分認識到它與行業之間存在巨大的營業利潤率差距，我們致力於縮小這一差距。

We strongly believe that with our current improve our ability to generate higher profits more consistently based on cost factors alone loan, we have identified approximately 500 to 7 points of margin opportunity.

我們堅信，隨著我們目前的提高，僅根據貸款成本因素更一致地產生更高利潤的能力，我們已經確定了大約 500 到 7 個點的保證金機會。

This is associated with reducing supply chain and product costs, improving pricing and promotions management and extracting efficiencies.

這與降低供應鏈和產品成本、改善定價和促銷管理以及提高效率有關。

Our largest gap to peers is sales productivity at the store level almost equal in magnitude to the cost factors.

我們與同業最大的差距是商店層面的銷售效率，其程度幾乎與成本因素相當。

As we take actions to improve our direct and indirect expense structure, we expect a greater percentage of our sales dollars to from the line, which will enable us to further narrow the gap.

當我們採取行動改善我們的直接和間接費用結構時，我們預期銷售收入中會有更大的比例來自線上，這將使我們能夠進一步縮小差距。

I would also like to note that on the far right section of the chart, we show structural components within our financial profile that will limit or our ability to fully close the gap in the long term include a higher mix of rented store locations, the relative mix of Pro customers and margin considerations from sales through that locations.

我還想指出的是，在圖表的最右側部分，我們顯示了我們的財務狀況中的結構性組成部分，這些結構性組成部分將限製或我們長期完全縮小差距的能力，包括更多的租賃商店位置組合，相對專業客戶和透過該地點銷售的利潤考慮因素的混合。

That being said, we are confident in our ability to improve margins to attractive levels in the long run.

話雖如此，從長遠來看，我們有信心將利潤率提高到有吸引力的水平。

Our productivity review has identified entities to generate over 500 basis points of margin over the next three years to reach our objective of delivering approximately 7% adjusted operating income margin by the end of fiscal 2027.

我們的生產力審查已確定實體在未來三年內產生超過 500 個基點的利潤率，以實現我們的目標，即在 2027 財年末實現調整後營業利潤率約 7% 的目標。

These margin opportunities stem from actions within the each of our strategic Ryan will share more details on our long-term financial objectives and how we plan to track our progress.

這些利潤機會源自於我們每個策略內部的行動，瑞安將分享更多有關我們長期財務目標以及我們計劃如何追蹤進度的細節。

As I wrap up this section, I would like to reiterate that each activity in our strategic plan reflects an operating philosophy based on core retail fundamentals will remain focused on executing and tracking the success of these actually the performance of the advanced blended box.

在結束本節時，我想重申，我們策略計畫中的每項活動都反映了基於​​核心零售基礎的營運理念，將繼續專注於執行和追蹤這些實際上是先進混合盒的性能的成功。

I will now hand it over to Ryan to describe how actions drive our financial plan.

現在我將把它交給瑞安來描述行動如何推動我們的財務計劃。

Dan O'Brien.

丹·奧布萊恩。

Thank you, Shayne IRR, financial roadmap through fiscal 2027 and plans to deliver value for our shareholders.

謝謝 Shayne IRR，截至 2027 財年的財務路線圖以及為股東創造價值的計劃。

Our financial plan reflects progress on achieving greater operational productivity through our strategic actions as we discuss our financial plan today, both Shannon, I recognize that we need to build a track record of success over the past several months.

我們的財務計劃反映了透過我們的策略行動實現更高營運生產力的進展，當我們今天討論我們的財務計劃時，香農，我認識到我們需要在過去幾個月中建立成功的記錄。

We have dedicated time to diving into understanding the opportunities that lie ahead in building a plan backed by solid fundamental actions.

我們投入了時間來深入了解在製定以堅實的基本行動為支持的計劃時所面臨的機會。

We are focused on four key areas to enhance shareholder returns over the next three years and beyond.

我們將重點放在四個關鍵領域，以提高未來三年及以後的股東回報。

First, we are optimizing our asset portfolio to store closures and SG&A reductions to about a healthy foundation for long-term growth.

首先，我們正在優化我們的資產組合，以關閉商店和減少銷售管理費用，為長期成長奠定健康的基礎。

Second, as Shane mentioned, we have identified over 500 basis points of margin opportunity over the next three years from operational efficiencies and merchandising, supply chain and store initiatives.

其次，正如 Shane 所提到的，我們已經從營運效率和銷售、供應鏈和商店計劃中確定了未來三年利潤率超過 500 個基點的機會。

Importantly, we do not view this as the final destination, but the beginning of our continued operating margin expansion in the future.

重要的是，我們並不認為這是最終目的地，而是我們未來持續擴大營業利潤率的開始。

Third, we have ample liquidity for investment in high return projects across critical areas to support our growth includes building our multinational on network and accelerating new store openings.

第三，我們有充足的流動性來投資關鍵領域的高回報項目，以支持我們的成長，包括建立跨國公司網路和加速新店開業。

And fourth, we anticipate our strategic actions will enable us to improve cash generated from operations, driving an improvement in free cash flow, even as we step up capital expenditures over the next few years.

第四，我們預期我們的策略行動將使我們能夠改善營運產生的現金，推動自由現金流的改善，即使我們在未來幾年增加資本支出。

While we have already begun executing part of our plan this year, the largest portion of the implementation is not expected to begin in full earnest until 2025.

雖然我們今年已經開始執行部分計劃，但預計大部分實施工作要到 2025 年才會全面開始。

As a result, we expect these benefits to start showing progress in 2026 and beyond.

因此，我們預計這些優勢將在 2026 年及以後開始顯現出進展。

During the implementation will be measuring the success of each pillar with clearly defined operational KPIs and hold in our organization accountable to those goals.

在實施過程中，我們將透過明確定義的營運 KPI 來衡量每個支柱的成功，並讓我們的組織對這些目標負責。

To monitor progress on these initiatives, we have set up internal work streams to manage the implementation and allocation of resources to achieve these goals.

為了監控這些措施的進展，我們建立了內部工作流程來管理實現這些目標的實施和資源分配。

We are keenly aware that the initiatives on this slide are frequently used concepts in retail.

我們敏銳地意識到，這張投影片上的舉措是零售業經常使用的概念。

The difference between companies that are successful and those that are not is the quality of FedEx execution as a management team has where we spend most of our time with a focus on getting the basics right before discussing our three-year plan, let me provide some color on our financials.

成功公司與不成功公司之間的區別在於聯邦快遞作為管理團隊的執行質量，在討論我們的三年計劃之前，我們將大部分時間都花在了解基礎知識上，讓我提供一些我們的財務狀況。

Adjusting for the full impact of store closures and the sale of Worldpac.

針對商店關閉和 Worldpac 出售的全面影響進行調整。

Starting with the midpoint of our 2020 for guidance and excluding sports planned for closure, our pro forma revenue is expected to be between 8.2 and 8.41 billion.

從我們 2020 年中期指引開始，不包括計劃關閉的體育賽事，我們的預估收入預計在 8.2 至 84.1 億美元之間。

As previously noted, the store closures reduced our net sales by approximately.

如前所述，商店關閉使我們的淨銷售額減少了約。

However, we are basing our plan around 600 to $800 million reduction.

然而，我們的計劃是減少約 6 億至 8 億美元。

The high end of this range assumes modest levels of sales transfer to locations in markets where we will continue to have a presence.

該範圍的高端假設有適度的銷售轉移到我們將繼續開展業務的市場地點。

The low end of this range, bakes in potential headwinds associated with realignment of our sales team due to the reduction in store footprint.

由於商店佔地面積的減少，該範圍的低端會帶來與我們銷售團隊的重組相關的潛在阻力。

In addition, we show the midpoint of our 2020 for operating income margin guidance as well as added 70 to 90 basis points of savings associated with store closures, about 30 basis points of atypical items.

此外，我們還顯示了 2020 年營業收入利潤率指引的中位數，以及與關閉商店相關的 70 至 90 個基點的節省，非典型項目的節省約為 30 個基點。

Offset over the next few slides, I'll provide an overview of our three-year financial plan with preliminary expectations for two 25.

在接下來的幾張投影片中，我將概述我們的三年財務計畫以及兩個 25 的初步預期。

Starting with net sales for 2025, we expect net sales of approximately 8.4 to 8.6 billion.

從 2025 年淨銷售額開始，我們預計淨銷售額約為 8.4 至 86 億歐元。

We expect to begin closing stores later this year with full completion of this activity by mid 2025.

我們預計將於今年稍晚開始關閉商店，並在 2025 年中期全面完成這項活動。

As a result, our 2025 net sales target includes a partial impact of lost sales.

因此，我們 2025 年的淨銷售目標包括銷售損失的部分影響。

We also plan to open 30 new stores next year and go comparable sales between 50 to 150 basis points, which is an improvement on our current run rate with modest contribution from strategic currently in flight.

我們還計劃明年開設 30 家新店，並將可比銷售額提高 50 至 150 個基點，這比我們目前的運作率有所改善，目前正在進行的策略貢獻不大。

This rate of growth also includes the carryover of pricing actions.

這一增長率也包括定價行為的結轉。

First half of 2010 five over the following two years.

2010年上半年是未來兩年的五年。

We expect our rate of comparable sales growth to improve as we realize the benefits of our store operating model changes, improved parts availability and an overall improvement and customers, including a reduction in our time to serve.

我們預計，隨著我們意識到商店營運模式改變、零件可用性提高以及整體改善和客戶的好處（包括減少服務時間）的好處，我們的可比銷售額成長率將會提高。

While we expect to deliver continuous improvement in our sales trajectory, the timing of the benefits from our initiatives are difficult to predict the results.

雖然我們期望不斷改善我們的銷售軌跡，但我們的措施帶來效益的時間很難預測結果。

Our plan is based on comparable sales growth below industry levels.

我們的計劃基於低於行業水平的可比銷售成長。

We also plan to gradually accelerate our pace of new store openings each year to ultimately achieve our long target of opening 100 new stores post 2027.

我們也計劃每年逐步加快開新店的步伐，最終實現 2027 年後開設 100 家新店的長期目標。

Now looking at adjusted operating margin for the end of 2025, we are planned operating margin between 2% to 3%, implying an expansion of 101 hundred and 50 basis points compared to the midpoint of our RemainCo 2020 for guidance.

現在看看 2025 年底調整後的營業利潤率，我們計劃營業利潤率在 2% 至 3% 之間，這意味著與我們的 2020 年 RemainCo 指導中位數相比擴大了 10100 50 個基點。

As indicated earlier, we expect to say 60 to 80 million in operating costs related to the store closures or about 70 to 90 basis points in margin during 2025.

如前所述，我們預計 2025 年期間與門市關閉相關的營運成本將達到 6,000 至 8,000 萬美元，或利潤率將增加約 70 至 90 個基點。

We expect to recover about half of these savings to the timing of closures.

我們預計到關閉時將收回約一半的節省費用。

A full run rate of operating cost savings is expected in the second half of 2026.

預計 2026 年下半年將全面實現營運成本節省。

The rest of our margin improvement in 2025 is being driven by cost savings from merchandising activities include line reviews and product cost negotiations.

2025 年利潤率的其餘成長是由銷售活動（包括生產線審查和產品成本談判）節省的成本所推動的。

We expect modest SG&A leverage in 2025 from labor, productivity and indirect costs that initiatives offset by normal wage inflation.

我們預計，到 2025 年，勞動力、生產力和間接成本將帶來適度的 SG&A 槓桿，這些措施將被正常的薪資通膨所抵消。

Over the following two years, we expect to increase by another 400 to 500 basis points, which includes the full operational cost savings associated with the store closures, our fiscal 2027 gross margin in the mid 40s range and SG&A below 40%.

在接下來的兩年裡，我們預計將再增加 400 至 500 個基點，其中包括與關閉商店相關的全部營運成本節省、我們 2027 財年的毛利率在 40 多歲左右以及 SG&A 低於 40%。

The gross margin improvement as expense to be driven by three primary factors.

作為費用的毛利率改善受到三個主要因素的推動。

First, strategic vendor negotiations.

首先，戰略供應商談判。

As Shane mentioned, we are conducting joint business planning discussions with our strategic suppliers to grow our business with them and improve the economic outcome for us and our suppliers.

正如肖恩所提到的，我們正在與我們的策略供應商進行聯合業務規劃討論，以與他們一起發展我們的業務，並改善我們和我們的供應商的經濟成果。

Second, DC, productivity and transportation addition, we expect to leverage supply chain costs and drive stronger DC productivity through higher inbound and outbound volumes, but operating fewer large DCs.

其次，在配送中心、生產力和運輸方面，我們預計將利用供應鏈成本，透過增加進出港量來提高配送中心的生產力，但營運較少的大型配送中心。

We also plan to optimize our store replenishment routes based on transaction volume and market needs, and third, promotions.

我們也計劃根據交易量和市場需求優化門市補貨路線，第三，促銷活動。

With the use of targeted promotions, we aim to remove unproductive offers and drive better gross margin returns to a disciplined promotional cadence that will yield higher returns.

透過使用有針對性的促銷活動，我們的目標是消除無效的優惠，並透過嚴格的促銷節奏推動更好的毛利率回報，從而產生更高的回報。

At this, we plan to manage pro customer discounting the new pricing models to increase our wallet share from existing customers.

為此，我們計劃管理專業客戶折扣新的定價模式，以增加現有客戶的錢包份額。

Regarding SG&A, the margin improvement is expected to be driven by increased labor productivity from changes in our store operating model and higher fixed cost leverage.

就SG&A而言，利潤率的改善預計將由我們商店營運模式的變化和更高的固定成本槓桿所帶來的勞動生產力的提高所推動。

Separate parts availability.

單獨的零件供應。

We remain committed to maintaining sufficient liquidity of our planning horizon.

我們仍致力於在規劃範圍內保持充足的流動性。

Our balance sheet is strong with approximately 500 million of cash available inventory.

我們的資產負債表穩健，可用現金庫存約 5 億。

The sale of Worldpac added approximately $1.2 billion of incremental cash to support our strategic plans.

Worldpac 的出售增加了約 12 億美元的增量現金，以支持我們的策略計劃。

While we expect to incur certain cash weighted cost of the execution of store closures, we are simultaneously evaluating options to from the closed locations to minimize the cash flow impact.

雖然我們預計關閉商店會產生一定的現金加權成本，但我們同時正在評估關閉商店的選擇，以盡量減少現金流影響。

Even after reflecting these costs, we expect we would have over 1 billion in cash on our balance sheet.

即使反映了這些成本，我們預計資產負債表上仍將有超過 10 億美元的現金。

This I've just described does not take into account our revolving credit facility, which is currently undrawn.

我剛才描述的這一點沒有考慮到我們目前尚未提取的循環信貸額度。

Our financial plans assume we'll be able to generate strong operating cash flow to fund higher CapEx, which in turn would help deliver higher free cash flow.

我們的財務計畫假設我們將能夠產生強勁的營運現金流來為更高的資本支出提供資金，這反過來又有助於提供更高的自由現金流。

In 2025, we anticipate spending at least $300 million in capital expenditure related to our strategic initiatives.

到 2025 年，我們預計將至少花費 3 億美元用於與我們的策略性舉措相關的資本支出。

Fundraising cash flow as we execute our turnaround and improve the performance of the business.

在我們實現扭虧為盈並提高業務績效的過程中籌集現金流。

Improving our leverage profile remains a key priority.

改善我們的槓桿狀況仍然是關鍵優先事項。

Our objective is to reduce RemainCo leverage ratio from approximately force at the end of Q3 to approximately 2.5 times no later than the end of 2027.

我們的目標是不遲於 2027 年底將 RemainCo 槓桿率從第三季末的約 2.5 倍降低至約 2.5 倍。

We expect to reach this target by repaying our debt obligations at our before maturity, along with the reduction in our lease obligations.

我們希望透過在到期前償還債務以及減少租賃義務來實現這一目標。

On a preliminary basis, we expect to exit approximately 40% of these leases tied to close stores over the next 12 to 18 months, partially off set by leases for new stores through 2027.

初步預計，在未來 12 至 18 個月內，我們將退出約 40% 與關閉門市相關的租賃，部分被 2027 年新店租賃所抵銷。

I would like to note we anticipate target leverage ratio regardless of outcomes from our efforts to reduce lease obligations.

我想指出的是，無論我們減少租賃義務的努力結果如何，我們都預期目標槓桿率。

Regarding supply chain financing, we currently have sufficient and growing capacity on the facility, and our current three year planning horizon assumes we maintain a 2.8 billion of RemainCo payables under financing agreements with our banks separately, as it pertains to inventory, our payables coverage ratio has improved by approximately 300 basis points following the sale of Worldpac.

關於供應鏈融資，我們目前擁有充足且不斷增長的融資能力，我們目前的三年規劃期限假設我們根據與銀行的融資協議分別維持28 億的RemainCo 應付帳款，因為它與庫存、應付帳款覆蓋率有關出售 Worldpac 後，該公司的股價提高了約 300 個基點。

Our three-year financial plan assumes we maintain our current payables ratio.

我們的三年財務計畫假設我們維持目前的應付帳款比率。

We as we execute our merchandising strategies, enhanced relationships.

我們在執行行銷策略時，加強了關係。

This implies approximately 3.5% of net sales over our planning horizon.

這意味著在我們的規劃期間約佔淨銷售額的 3.5%。

We are allocating impacts to support our ongoing business needs, accelerate new store growth and invest in strategic initiatives to stabilize and grow the business.

我們正在分配影響力來支持我們持續的業務需求，加速新店的成長，並投資於策略性舉措以穩定和發展業務。

We will continue to spend with the build-out of our multinational on supply chain and other merchandising projects to improve inventory availability.

我們將繼續投資建造跨國公司的供應鏈和其他銷售項目，以提高庫存可用性。

Additionally, a portion of capital will be allocated to store and technology debt.

此外，一部分資本將分配給儲存和技術債。

These expenditures were primarily on the key maintenance items such as Asia, roofing, H. back or technologies systems.

這些支出主要用於關鍵維護項目，如亞洲、屋頂、H. back 或技術系統。

In summary, we believe we have the right strategy centered on core retail fundamentals to deliver our financial objective for 2027.

總之，我們相信我們擁有以核心零售基本面為中心的正確策略，可以實現 2027 年的財務目標。

Shane and I are confident in this plan and the team's ability to execute this turnaround.

肖恩和我對這個計劃以及團隊執行這項轉變的能力充滿信心。

We are focusing on execution and holding the entire organization accountable to delivering progress on our KPI as we solidify our foundation and work to achieve these targets in 2027, we believe we have further upside potential to narrow the gap, the industry and to exceed 7% adjusted operating margin beyond 2027.

我們專注於執行力，讓整個組織負責在 KPI 上取得進展，鞏固基礎並努力在 2027 年實現這些目標，我們相信我們有進一步的上升潛力，可以縮小與行業的差距並超過 7% 2027 年後調整後的營業利潤率。

Moving to an update on our full year 2020 for guidance before moving to Q&A.

在進入問答環節之前，我們將先介紹 2020 年全年的最新情況以獲取指導。

Our guidance is presented on an adjusted non-GAAP basis for the advanced RemainCo net sales.

我們的指引是根據調整後的非公認會計原則 (non-GAAP) 基礎上針對先期 RemainCo 淨銷售額提出的。

We now expect net sales for the full year to come in approximately 9 billion, including comparable store sales of approximately negative 1% quarter to date.

我們目前預計全年淨銷售額約為 90 億美元，其中本季迄今可比商店銷售額約為負 1%。

Our trends are in line with Q2 three, and our guidance assumes we continue at the same trend for the end of the quarter.

我們的趨勢與第二季第三季一致，我們的指導假設我們在本季末繼續保持相同的趨勢。

The impact of store closures is now expected to be meaningful to fourth quarter comp trends due to timing of closures, we expect adjusted operating income margin for the full year to be between positive 25 basis points and 75 basis points.

由於關閉時間，目前預計關閉商店的影響將對第四季度的比較趨勢產生重大影響，我們預計全年調整後的營業利潤率將在 25 個基點至 75 個基點之間。

Adjusted diluted EPS for the full year is now expected to be in the range of a loss of $0.6 to flat.

目前預計全年調整後攤薄每股收益將虧損 0.6 美元至持平。

We expect free cash flow of approximately flat at the end of the year, which includes cash outflow associated with the execution of store closures.

我們預計年底自由現金流大致持平，其中包括與執行商店關閉相關的現金流出。

Our guidance for capital expenditures expected between 175 to 225 million as we can objects to enhance our IT and supply chain infrastructure.

我們的資本支出指引預計在 1.75 至 2.25 億之間，因為我們可以反對增強我們的 IT 和供應鏈基礎架構。

Understanding this is the first time we are providing RemainCo guidance.

了解這一點是我們第一次提供留歐指導。

Let me share my thoughts on fourth quarter based on our guidance.

讓我根據我們的指導分享我對第四季的看法。

Fourth quarter adjusted operating margin is expected to be negative.

第四季調整後營業利潤率預計為負值。

We expect gross margin to be up year over year, although due to the lower sales expenses.

儘管由於銷售費用下降，我們預計毛利率將同比上升。

Q4 is traditionally the lowest gross margin rate of the year, and I would expect that to continue on SG&A, we expect to be sequentially lower, although higher here through the lapping of certain favorable annual true-ups, which is expected to drive deleverage on lower sales.

傳統上，第四季的毛利率是一年中最低的，我預計，SG&A 的毛利率將繼續下降，儘管由於某些有利的年度調整而出現較高的毛利率，預計這將推動去槓桿化銷售量較低。

I would also like to note that our Q4 expectation assumes a temporary reprioritization to execute store closures that could potentially impact our day-to-day operations.

我還想指出，我們對第四季度的預期假設暫時重新確定優先順序以執行關閉商店的操作，這可能會影響我們的日常營運。

We believe these strategic actions are the right path forward to establish a stronger foundation for future growth.

我們相信這些策略行動是為未來成長奠定更堅實基礎的正確道路。

In summary, I would like to thank our entire team for their commitment to the turnaround and helping shape our strategy for the long term.

總之，我要感謝我們整個團隊對扭虧為盈的承諾，並幫助制定我們的長期策略。

We have a rich legacy and a trusted brand needs along with an extensive network of stores to capitalize on strong drivers for our growth.

我們擁有豐富的傳統和值得信賴的品牌需求，以及廣泛的商店網絡，可以利用強大的動力推動我們的成長。

Our strategic plan is focused on getting the basics right every day.

我們的策略計劃的重點是每天做好基礎工作。

We have a strong leadership team and talented frontline workforce to serve our customers.

我們擁有強大的領導團隊和才華橫溢的前線員工來服務我們的客戶。

We have a solid balance sheet to support our investment needs.

我們擁有穩健的資產負債表來支持我們的投資需求。

We now have a clear pathway to narrow our margin gap to the industry and create value for our shareholders.

我們現在有一個明確的途徑來縮小我們與產業的利潤差距並為股東創造價值。

I look forward to sharing more about our progress in the future.

我期待著分享更多有關我們未來進展的資訊。

With that.

就這樣。

Thank you, Ryan.

謝謝你，瑞安。

In closing, I want to thank everybody for joining our call today.

最後，我要感謝大家今天加入我們的電話會議。

We hope today's presentation provided a clear view of our path forward, and our opportunities for growth in our organization is committed to delivering against our three year plan.

我們希望今天的演講能讓我們清楚地了解我們的前進道路，並且我們組織的成長機會致力於實現我們的三年計劃。

I would like to thank our team members once again for their continued dedication to serving our customers while we take the recourse to fuel the improvement and long term growth of the Company.

我要再次感謝我們的團隊成員在我們推動公司進步和長期發展的同時，繼續致力於為客戶提供服務。

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

接下來，讓我們開始提問。

Operator?

操作員？

Thank you.

謝謝。

If you'd like to ask a question, please press star followed by one on your telephone keypad.

如果您想提問，請按下電話鍵盤上的星號，然後再按一個。

If you'd like to withdraw your question, please press by to prepare to ask a question.

如果您想撤回問題，請按一下以準備提問。

Please show your usage locally.

請顯示您在本地的使用情況。

We ask that you please limit yourself to one question and follow-up before returning to the queue.

我們要求您在返回隊列之前將自己限制在一個問題上並進行跟進。

Our first question comes from Michael Lasser of UBS.

我們的第一個問題來自瑞銀集團的麥可·拉塞爾。

Michael, your line is open.

邁克爾，您的線路已開通。

Please go ahead.

請繼續。

Good morning.

早安.

Thank you so much for taking.

非常感謝您的採納。

My question is on the outlook.

我的問題是關於前景。

How much really in that segment had you assuming that you will need to make from the cost savings to the business over the next couple of years?

您認為在未來幾年內您需要從該細分市場中節省多少成本來為業務帶來多少收益？

And it's part of that help you assuming that you will be able to maintain your banking program as it currently stands for moving forward.

這是幫助您假設您將能夠維持您的銀行計劃的一部分，因為它目前代表著前進。

Thank you very much.

非常感謝。

Thanks, Michael.

謝謝，麥可。

The up on the supply chain finance space, yes, we are factoring in.

是的，我們正在考慮供應鏈金融領域的發展。

We're maintaining the ability of the 2.8 is roughly where we're targeting them by fluctuate, but we're targeting to a new target that we will have the capacity to support the to a going forward.

我們維持 2.8 的能力大致上是我們透過波動設定的目標，但我們的目標是一個新的目標，我們將有能力支持未來的發展。

But from a reinvestment standpoint, we feel like we're at a good SG&A level will have obviously some inflation going forward.

但從再投資的角度來看，我們認為我們處於良好的銷售、一般管理費用水平，未來顯然會出現一些通膨。

But I think in our factored in in incremental CapEx, that will be part of that investment.

但我認為，當我們考慮增量資本支出時，這將成為投資的一部分。

So the moving up to 300 million on average per year, that might fluctuate a little bit depending on the timing of some of those initiatives, but that's the reinvestment making more on the CapEx side.

因此，平均每年增加到 3 億美元，這可能會根據其中一些舉措的時間表而略有波動，但這是再投資在資本支出方面帶來的更多收益。

On the cost-saving side, we're bringing a lot of those cost savings.

在節省成本方面，我們節省了大量成本。

So the bottom line of business somewhat offset by inflation.

因此，企業的利潤在一定程度上被通貨膨脹所抵銷。

Going forward, we've factored into our guide.

展望未來，我們已將其納入我們的指南中。

Final question is, philosophically is the plan to say, hey, that David's auto can compete effectively in the marketplace as a leaner, more nimble, more regional type of organization.

最後一個問題是，從哲學上講，這個計劃是說，嘿，大衛的汽車可以作為一個更精簡、更靈活、更具區域性的組織類型在市場上有效競爭。

And there's evidence to support that from the fact there are a strong regional players in the market already because closing out a market would suggest that the store growth, the ability to be a national retailer is going to be eliminated over time.

有證據表明，市場上已經存在強大的區域參與者，因為關閉市場意味著商店的成長以及成為全國性零售商的能力將隨著時間的推移而消除。

If you could just give us a sense of what the long-term vision on how advanced is expecting that.

您能否讓我們了解一下我們的長期願景是如何先進的？

Hey, Michael, it's Shane and good morning.

嘿，邁克爾，我是謝恩，早安。

Thank you for the questions.

謝謝你的提問。

We have no doubt that we can compete and that evidence strongly exists today.

我們毫不懷疑我們可以競爭，並且今天有充分的證據存在。

We don't need to look at regional players.

我們不需要關注區域參與者。

We just look internally at our Company and where we have density we perform and we see that in numerous markets.

我們只關注我們公司的內部，以及我們在哪些地方表現出密度，我們在許多市場中都看到了這一點。

And if you look at how will be closed, store closing will be number one or number two in terms of density and 75% of our markets.

如果您考慮如何關閉商店，就密度和占我們 75% 的市場而言，商店關閉將是第一或第二。

So when you do a bell curve of our store performance, we see plenty of is where we not only compete and thrive, we win.

因此，當你繪製我們商店業績的鐘形曲線時，我們會發現，我們不僅可以競爭、蓬勃發展，而且可以獲勝。

And so the idea is to focus at get back to winning, deliver the economic numbers that we've depicted today.

因此，我們的想法是專注於重新獲勝，提供我們今天描述的經濟數據。

And during that journey, we we returned to growth, which includes opening new stores.

在那段旅程中，我們恢復了成長，其中包括開設新店。

So I don't think about it in terms of national or not.

所以我不會從國家與否的角度來考慮。

We just because we think about it in terms of where we can win where we can grow.

我們只是因為我們考慮的是我們可以在哪裡贏得勝利，在哪裡可以成長。

Thank you.

謝謝。

Our next question comes from Chris Horvers of JPMorgan.

我們的下一個問題來自摩根大通的克里斯霍弗斯。

Chris, your line is open.

克里斯，您的線路已開通。

Please proceed.

請繼續。

Thanks.

謝謝。

Good morning, everybody, and thanks for the presentation.

大家早安，感謝您的演講。

So my first question is from understanding that you do have less sales in the fourth quarter and you're going to deleverage, but it seems like you're implying that down 5% operating margin.

所以我的第一個問題是，您第四季的銷售額確實減少了，而且您將去槓桿化，但您似乎暗示營業利潤率會下降 5%。

So I guess my question is, are there one-time costs that are included in 4Q to 4Q number per se are occurring at on slide 7?

所以我想我的問題是，投影片 7 上的第 4 季到第 4 季的數字本身是否包含一次性成本？

It seems like you're saying that these 0.0 0.8% adjusted operating margin in 3Q in 3Q included like 125 basis points of what things that that's necessarily repeat next year.

您似乎是在說，第三季調整後的 0.0 0.8% 營業利潤率包括明年必然會重複的 125 個基點。

Thanks, Chris.

謝謝，克里斯。

Yes, 88 year are doing the math right?

是的，88年的數學算對了​​嗎？

Q4 is going to be a little bit down job growth, close to what you're saying.

第四季就業成長將略有下降，接近你所說的情況。

There is more of we're cycling a couple of things that happened last year.

我們也回顧了去年發生的一些事情。

Fizzle.

嘶嘶作響。

We're factoring in some disruption given right now, decision to sell some sales in our gross profit rate in Q4 is traditionally the lowest gross profit rate in the US.

我們考慮到目前出現的一些幹擾因素，第四季毛利率中的部分銷售決定是美國傳統上最低的毛利率。

There's a couple of things impacting that gross profit rate, but nothing that's the word out the strategic initiatives so that out of that guide.

有幾個因素會影響毛利率，但戰略舉措中並沒有提到這一點，因此指南中沒有提到這一點。

But we're factoring that in just a little bit of risk adjustment in Q4 relative to us being prioritized in this turnaround in the store closures.

但我們將第四季度的一些風險調整考慮在內，相對於我們在商店關閉的轉變中被優先考慮的情況。

But the really the gross profit in Q4 is lower, a lower rate that's driving it as well.

但第四季的毛利實際上較低，也是較低的利率推動的。

Slide 7 that 3Q at 125 basis points of stuff that you're putting in the agenda here saying won't necessarily recur next year.

投影片 7 表示，第三季利率為 125 個基點，您在此議程中提到的內容明年不一定會再次出現。

And as you think about the bridge to 25, you're modeling 200 basis points of margin expansion, sort of midpoint to midpoint.

當你考慮到 25 的橋樑時，你正在對利潤率擴張 200 個基點進行建模，有點像中點到中點。

How much of that that expansion would you say is discrete lapse, one-time costs, one-time impacts there as to whether that gets you to that level of expansion year over year?

您認為這種擴張有多少是離散失效、一次性成本、一次性影響，是否能讓您逐年達到這種擴張水準？

Yes.

是的。

The 125 basis points is just kind of those things that pop up during the year like the hurricane CrowdStrike impact on our system there, other items in there, so they can atypical items that are missing part of the normal on the business.

125 個基點只是一年中突然出現的事情，例如颶風 CrowdStrike 對我們系統的影響，還有其他項目，因此它們可以是業務正常情況下缺失部分的非典型項目。

That's 125 that we're calling out.

我們撥打的是 125。

Now I'd like to touch.

現在我想觸摸一下。

That doesn't mean it does.

但這並不意味著它確實如此。

Yes.

是的。

And then how much is or how much of that 200 mat next year is sort of execution for a, i.e., there are unique cost and unique disruption this year that may be put into the adjusted results.

然後明年的 200 塊墊子中有多少是某種執行，也就是說，今年有獨特的成本和獨特的中斷，可以將其納入調整後的結果中。

But you know, we have clear line of sight of getting those costs back next year.

但你知道，我們有明確的目標是明年再收回這些成本。

Yes, that exteriors, just we have got a store closures that are coming in, and that's a that's a reasonable.

是的，就外觀而言，我們即將關閉一家商店，這是合理的。

We're executing those.

我們正在執行這些。

Those are popping in our margin improvements that we're seeing as we partner with our vendors to Hunter's clear line of sight on our business actions and objectives of that's really what's driving all the increase next year.

當我們與供應商合作時，我們看到這些利潤率的提高，亨特對我們的業務行動和目標有清晰的認識，這才是明年所有成長的真正推動因素。

Understood.

明白了。

Thanks very much.

非常感謝。

Book.

書。

Thank you.

謝謝。

Our next question comes from Scot Ciccarelli of Truist.

我們的下一個問題來自 Truist 的 Scot Ciccarelli。

Scott, your line is open.

斯科特，你的線路已開通。

Please go ahead.

請繼續。

Morning guys.

早安各位。

So it looks like COGS is supposed to be the biggest driver of your expected EBIT improvement both in 25 as well as for your three year plan.

因此，看來銷貨成本應該是 25 年以及三年計畫中預期息稅前利潤改善的最大動力。

Can you guys break it down a little bit more for us?

你們能為我們詳細解釋一下嗎？

Anything, how much of that improvements those come from supply chain, how much from better promotional management just silicon understand the I know that what's really going to drive that improvement?

任何事情，其中​​有多少改進來自供應鏈，有多少來自更好的促銷管理只是矽了解我知道什麼真正會推動這種改進？

The COGS banks?

銷貨成本銀行？

Yes.

是的。

Scott answer the question.

斯科特回答問題。

Well, I'll give you some general themes that we won't get specific ones, but we are excited about where we're going to cause improvement of bit broken down between both installed cost first, cause as we partner with our vendors.

好吧，我會給你一些一般性的主題，我們不會得到具體的主題，但我們很高興我們將在哪裡改善安裝成本之間的位元分解，因為我們與供應商合作。

There's pricing and promotional improvement in there as well.

其中也有定價和促銷方面的改進。

We know we have work to do it to him, prove the effectiveness of our promotional cadence, the scale, the size of those effectiveness of them for pricing.

我們知道我們有工作要做，向他證明我們的促銷節奏、規模、定價成效的大小。

And it's zero to our Pros and making sure that we've got the right pricing structure for PROS supply chain is a portion of that the supply chain can continue to consolidate.

對於我們的專業人士來說，這是零，確保我們為專業人士供應鏈提供正確的定價結構是供應鏈可以繼續整合的一部分。

Our DC leaves our market hubs.

我們的配送中心離開了我們的市場中心。

That is a longer tail than say, by the merchandise in face of this.

面對這種情況，這是一個比所說的更長的尾巴。

So if you're looking at the COGS improvement of a larger portion of that goes in Tony's comment on the merchandising excellence portion, how would you guys kind of rate or rank your confidence and the ability to drive that gross margin improvement?

因此，如果您看到托尼對銷售卓越部分的評論中大部分的銷貨成本改善，你們會如何評價或排名您的信心以及推動毛利率改善的能力？

Because obviously, like this year hasn't necessarily played out maybe the way you originally anticipated that.

因為顯然，今年的情況可能並不像你最初預期的那樣。

So just trying to understand, again a little bit better on confidence levels of gross margin improvement going forward.

因此，我只是想再次了解一下，對未來毛利率改善的信心水準。

Big data sharing.

大數據共享。

Great question.

很好的問題。

Thanks for asking that.

謝謝你這麼問。

I'm very confident and that starts with leadership.

我非常有信心，這一切從領導力開始。

So what we're now starting to see is the impact of the changes we've made with key leaders.

因此，我們現在開始看到的是我們與主要領導者所做的改變所產生的影響。

So Bruce storage has joined us from target.

所以 Bruce storage 已經從 Target 加入我們了。

Keith started to build an outstanding team.

基斯開始組建一支優秀的團隊。

And I saw this as we were out in Apex meeting with vendors, both in terms of discussions with existing vendors and working collaboratively to develop plans that support what we're trying to do.

我在與供應商舉行 Apex 會議時看到了這一點，無論是與現有供應商的討論還是協作制定支持我們正在努力做的事情的計劃。

So from vendors, we haven't worked with who've mouse that, hey, how do we how do we think about working with advance?

因此，對於供應商來說，我們還沒有與誰合作過，嘿，我們如何考慮提前合作？

It's so he's digging in on a on a number of retail fundamentals that PLR process being one, it availability being another and goes through those.

因此，他深入研究了許多零售基礎知識，其中 PLR 流程是其中之一，可用性是另一項，並進行了研究。

What I would consider a tried and true merchandising activities that gives his previous company will be known for.

我認為這是一項經過考驗的、真正的推銷活動，使他以前的公司聞名。

Thank you.

謝謝。

Our next question comes from Simeon Gutman of Morgan Stanley.

我們的下一個問題來自摩根士丹利的西蒙·古特曼。

Simeon, your line is open.

西蒙，您的線路已開通。

Please go ahead.

請繼續。

Hi, this is Zack on for Sam and thanks for taking our questions.

大家好，我是 Sam 的 Zack，感謝您回答我們的問題。

Chain really by the company is completely different than oh five and even 10 years ago, as you know, they're always been margin goals, much higher in the future, and margins are only contracted over time.

該公司的連鎖店與五年前甚至十年前完全不同，如您所知，它們始終是利潤目標，未來會更高，而利潤只會隨著時間的推移而收縮。

So why is this time and different?

那為什麼這次會不同呢？

And kind of touching upon the earlier question, sort of what gives you confidence on the target you set out?

觸及先前的問題，是什麼讓您對設定的目標充滿信心？

Yes.

是的。

Thanks, Zach.

謝謝，扎克。

Appreciate the question.

感謝這個問題。

I can't speak to the past in terms of different decisions and promises made for this management team.

我無法談論過去為這個管理團隊做出的不同決定和承諾。

We want to improve our say-do ratio.

我們希望提高我們的說做比。

We're confident in what we're doing.

我們對我們正在做的事情充滿信心。

And I think about that in terms of the tail that take so fit here a year so placed.

我認為，就尾巴而言，一年如此貼合。

Let's let's just review briefly what's transpired came onboard, depicted that we reduced decisive actions, started a strategic review said, Hey, we'll investigate the sale of Worldpac.

讓我們簡單回顧一下船上發生的事情，描述了我們減少了果斷行動，開始了戰略審查，說，嘿，我們將調查 Worldpac 的出售。

We sold Worldpac.

我們出售了 Worldpac。

We picked up a 1.5 billion for that.

我們為此籌集了 15 億美元。

We've shored up our balance sheet.

我們已經支撐了我們的資產負債表。

We looked at Canada.

我們看看加拿大。

We like, Ken, that we're keeping Canada.

肯，我們喜歡保留加拿大。

We invested in the supply chain.

我們投資了供應鏈。

We looked at it and said, hey, we've got disparate supply chains.

我們看了之後說，嘿，我們有不同的供應鏈。

Let's move to a consolidated supply chain.

讓我們轉向整合的供應鏈。

We've made that action.

我們已經採取了這項行動。

We looked at our frontline said, what are the roles?

我們看著前線說，角色是什麼？

What's the compensation?

補償是多少？

What's the training?

培訓內容是什麼？

We made, those changes.

我們做出了這些改變。

We looked at our leaders and said, where do we need key leaders in key areas?

我們看著我們的領導者說，我們在關鍵領域哪裡需要關鍵領導者？

We've made a number of those changes.

我們已經做出了一些改變。

And now as we go forward, we looked at the store base because it went across every store in the network across depicted three criteria.

現在，當我們前進時，我們查看了商店基礎，因為它跨越了網路中的每家商店，並符合三個標準。

We actually had a broader list.

我們實際上有一個更廣泛的清單。

We evaluated every one of our locations.

我們評估了我們的每一個地點。

We made an incredibly difficult decision to close 500 Company stores, 200 independents were willing to do the things that we need to do to be successful.

我們做出了一個極其艱難的決定，關閉 500 家公司商店，200 名獨立人士願意做我們需要做的事情才能取得成功。

And by the way, in the lens that we put on each of these days is what does it take if you're going to be an auto parts retailer, focusing on a blended box, what are the activities?

順便說一句，在我們每天的鏡頭中，如果你要成為汽車零件零售商，專注於混合盒，需要做什麼，有哪些活動？

What are the fundamentals that, that type of company needs to do?

這類公司需要做的基本原則是什麼？

And that's what we do.

這就是我們所做的。

And if it doesn't fit in that construct, we don't do it.

如果它不符合這個結構，我們就不會這麼做。

So it gives me confidence.

所以它給了我信心。

It's a lawsuit depict the that we have been appropriately reflective and slow before we put out the 7%.

這是一場訴訟，表明我們在推出 7% 之前已經進行了適當的反思和緩慢的行動。

So Ryan and I have spent a lot a lot of time thinking about when is the right time to come to the way, here's something that we believe that we have conviction in that way.

因此，瑞安和我花了很多時間思考什麼時候才是採取這種方式的最佳時機，我們相信我們對此有信心。

We'll hit.

我們會打。

And so we've put out the 7% in 2027 people have been asking people asked last quarter the quarter for high.

因此，我們列出了 2027 年人們一直在問上個季度的 7% 的高收入。

How come you guys won't give us more than once today to be about really showing you showing the Street showing everyone you are.

為什麼你們今天不給我們不只一次的機會來真正向我們展示你們在街上向每個人展示你們的樣子。

This is what we're going to do, and this is a result of where we're going.

這就是我們要做的事情，也是我們前進的結果。

That's helpful.

這很有幫助。

Thank you.

謝謝。

And then just as a follow up.

然後作為後續行動。

So with the business comping down low single digits, is this an industry weakness or share loss in our mix a little bit of both that?

那麼，隨著業務的下滑，這是一個行業弱點還是我們的組合中的份額損失兩者兼而有之？

And can you help us think about us back to positive territory rate moving forward?

您能否幫助我們考慮一下我們將恢復到正的領土利率？

Yes.

是的。

So the weakness we've seen recently is a little bit on the DIY side.

所以我們最近看到的弱點是在 DIY 方面。

We do see the consumer being pressured.

我們確實看到消費者受到壓力。

Where we are excited about is on a two-year basis.

我們感到興奮的是兩年的時間。

Our Pro comp trend actually accelerated in Q three.

我們的專業比賽趨勢實際上在第三季度加速了。

It's just more on the comparable side of it.

只是更具可比性。

So there is a little bit of pressure on the consumer right now.

所以現在消費者面臨一些壓力。

I know this industry resilient in these times.

我知道這個行業在這個時期具有彈性。

I mean, at some point, the stop start stop your car.

我的意思是，在某個時刻，停止開始停止你的車。

And so the push off of discretionary purchases of an impact here, it's more short term in nature.

因此，取消可自由支配的購買在這裡產生的影響，本質上是短期的。

So we've got a good industry backdrop, but there is a little bit of press Essure more recently on the consumer, and that's from the DIY comps.

因此，我們有一個很好的行業背景，但最近有一些關於消費者的新聞 Essure，這是來自 DIY 比較的。

Our next question comes from Seth Basham of Wedbush Sachs.

我們的下一個問題來自 Wedbush Sachs 的 Seth Basham。

Your line is open.

您的線路已開通。

Please go ahead.

請繼續。

Thanks a lot and good morning.

非常感謝，早安。

Thank you for the presentation.

謝謝您的介紹。

Our first test, some clarifying questions regarding the guidance for 2025 at first adjusted EPS basis, aiming for there to help us kind of sensitive that below the operating margin line and moving basis?

我們的第一次測試，澄清了一些關於 2025 年指導方針的問題，首先調整了每股收益基礎，旨在幫助我們對低於營業利潤線和移動基礎的敏感問題？

Good question.

好問題。

We are going to come back in Q4 by give more details on EPSI. will refine the guidance for 25.

我們將在第四季度提供有關 EPSI 的更多詳細資訊。將完善25的指導。

So we gave the operating income of 2% to 3%.

所以我們給了營業收入2%到3%。

I would expect low single digit share dilution.

我預計股票稀釋度會低至個位數。

So if you think of that for next year, low single digit share dilution, you should be able to get to a decent EPS range based on the.

因此，如果你考慮明年的低個位數股票稀釋，你應該可以根據以下情況達到一個不錯的每股盈餘範圍。

Okay.

好的。

And relatedly, regarding free cash flow in 2025, inclusive SINA's restructuring efforts and are you aiming for in that area?

與此相關，關於2025年的自由現金流，包括新浪的重組工作以及您在這方面的目標是什麼？

And then just lastly, bigger picture question that a lot of change that you guys have in your plan, managing that change at executing as critical factor.

最後，更大的問題是你們的計劃中有很多變化，在執行時管理這些變化是關鍵因素。

As you mentioned in chain, you have a capability target.

正如您在鏈中提到的，您有一個能力目標。

You have team set up where if you go wrong, you think are the various risks to execution?

你的團隊設定在哪裡，如果你出了問題，你認為執行的各種風險是什麼？

Yes.

是的。

So any time you're executing broad-based plans need to make sure you're appropriately copper and make sure you're communicating thoroughly need to make sure that a resource that correctly.

因此，每當您執行廣泛的計劃時，都需要確保您有適當的銅，並確保您進行徹底的溝通，並確保資源正確。

And so we know that blunting the existing business and executing this simultaneously does present degrees of risks, and we need to execute against that.

因此，我們知道，削弱現有業務並同時執行此操作確實會帶來一定程度的風險，我們需要針對這一點進行執行。

So we brought in support Alvarez and Marcel is working with the company and has been helpful in terms of how we think about this and how will go against the closure cadence.

因此，我們為阿爾瓦雷斯和馬塞爾提供了支持，他們正在與該公司合作，並在我們如何思考這個問題以及如何反對關閉節奏方面提供了幫助。

We've got additional support as it relates to negotiating with landlords on different pieces as we're bringing in support as it relates to how we think about moving inventory in terms of whether we sell it in place, whether we decide to relocated.

我們獲得了額外的支持，因為這涉及到與房東就不同的事宜進行談判，因為我們提供的支持涉及到我們如何考慮轉移庫存，無論我們是否就地出售，是否決定搬遷。

And so that's a that's a key dimension of it, but we're confident in terms of our ability to do it.

所以這是它的一個關鍵維度，但我們對我們做到這一點的能力充滿信心。

And it's consistent with how we've been running the company since I've been here and we'll go through it and continue to focus on the fundamentals, the remaining terms of where we're located and how we'll operate, you'll see an ability for us to execute those three pillars.

這與我來到這裡以來我們經營公司的方式是一致的，我們將仔細研究並繼續關注基本面、我們所在地的剩餘條款以及我們將如何運營，您我們將看到我們執行這三大支柱的能力。

So in terms of the store operations, in terms of merchandising excellence, terms that continuation of the supply chain consolidation.

因此，就商店營運而言，就卓越的商品陳列而言，就供應鏈整合的延續而言。

Thank you, Alex.

謝謝你，亞歷克斯。

Question comes from Steven Zaccone a oh six group.

問題來自 oh 6 小組的 Steven Zaccone。

Steven, your line is open.

史蒂文，您的線路已開通。

Please go ahead.

請繼續。

Great.

偉大的。

Good morning.

早安.

Thanks for all the detail today and appreciate taking Mike.

感謝今天提供的所有詳細信息，並感謝邁克。

I wanted to shift back to the top line discussions.

我想回到最重要的討論。

Could you just help us understand in the fourth quarter comp sounds like it's going to be down.

您能幫我們了解一下第四季的業績聽起來會下降嗎？

You gave some quarter to date comment that it's running in line with the third quarter.

您給出了一些季度至今的評論，稱其運行情況與第三季度一致。

Is that excluding the hurricane impact and the CrowdStrike?

這是否排除了颶風影響和 CrowdStrike？

And then, um, if we look forward, right, you've given this preliminary outlook for 25 and then what you think 2027 will be, how do you think about growth rate for next year?

然後，嗯，如果我們展望未來，對吧，您已經給出了 25 年的初步展望，然後您認為 2027 年會是什麼，您如何看待明年的成長率？

And then maybe as you think about your ability to take market share, where is the bigger opportunity is on the process side?

然後，也許當您考慮自己獲得市場份額的能力時，流程方面更大的機會在哪裡？

Or is it on this?

或者說是在這上面嗎？

They're getting better?

他們好起來了嗎？

Yes.

是的。

So David, I'll take the first part of that, the first point.

大衛，我將討論第一部分，第一點。

So we did back out the hurricane impact to say the trends from Q3 to Q4 in line.

因此，我們確實排除了颶風的影響，認為第三季到第四季的趨勢是一致的。

So you would adjust for the hurricane CrowdStrike impact.

因此，您需要針對颶風 CrowdStrike 的影響進行調整。

Yes, I'll start.

是的，我要開始了。

Let me talk about the market for next year in terms of how we return to positive comps, it will have progress in both arenas.

讓我談談明年的市場，我們如何回歸積極的競爭，這兩個領域都會取得進展。

On the DIY side, Brian touched on it.

在 DIY 方面，Brian 談到了這一點。

The consumers definitely had a bit of a hangover coming out of COVID.

消費者肯定對新冠疫情感到有些後遺症。

I think election jitters.

我認為選舉令人不安。

So and in the in the low cohort, familial spend categories of 50 k., 75 k. family groups that that group has been deferring wherever possible.

因此，在低群體中，家庭支出類別為 5 萬、7.5 萬。該團體一直盡可能推遲的家庭團體。

So we'll look for that market to return.

因此，我們將尋找該市場的回歸。

And so we'll participate in.

所以我們會參與。

But we're also very excited about what we're doing in the Pro arena.

但我們也對我們在職業競技場所做的事情感到非常興奮。

So between our outside sales team members, where we route rejuvenated comp sensation plans, we've also created focus in terms of which accounts they call on.

因此，在我們的外部銷售團隊成員之間，我們制定了重新煥發活力的競爭感覺計劃，我們也專注於他們所拜訪的客戶。

And there's a significant effort around what we call up and down the street Pro.

圍繞著我們所說的“街頭專業”，人們付出了巨大的努力。

These are these are small shops to Bay three shops that that we're catering are offering them to better penetrate.

這些是小商店到灣區的三家商店，我們正在為他們提供服務，以便他們更好地滲透。

So that activities underway also with our CPP.s, where we looked at what their compensation plans look like, these are our commercial parts of our stores and which accounts that they're calling on.

因此，我們的 CPP 也在開展活動，我們研究了他們的薪酬計劃，這些是我們商店的商業部分以及他們正在調用哪些帳戶。

So there's a lot of effort on the pro side, and that's augmented by two other things, parts availability and parts in market faster.

因此，在專業方面付出了很多努力，並且還透過其他兩件事來增強，即零件可用性和零件更快地上市。

And then secondly, where and how we allocate drivers in our stores.

其次，我們在商店中分配司機的位置和方式。

So we've got a better sort of data oriented way of which story vehicles to make sure that we're lining up with where the growth is.

因此，我們有一種更好的以數據為導向的方式來講述故事，以確保我們與成長保持一致。

So those are all a number of the dimensions and where we look for growth in Pro.

這些都是我們在 Pro 中尋求成長的一些維度。

I go back to the free cash flow discussion.

我回到自由現金流的討論。

Just to correctly, did you provide preliminary outlook for free cash flow in 25?

準確地說，您是否提供了 25 年自由現金流的初步前景？

And maybe if if the top line plan or the margin execution comes a little bit weaker than expected next year?

也許明年的頂線計劃或利潤執行會比預期的要弱一些？

What could be that our strategy here to protect profitability and protect the cash flow.

我們保護獲利能力和現金流的策略可能是什麼？

So we didn't provide a free cash flow forecast.

所以我們沒有提供自由現金流預測。

We just said we expect to fund the CapEx with operating cash flows of next year.

我們剛剛說過，我們預計用明年的營運現金流為資本支出提供資金。

So free cash flow should be able to fund the investments we're making going forward.

因此，自由現金流應該能夠為我們未來的投資提供資金。

And indeed, it has been in the second question there.

事實上，它已經出現在第二個問題中了。

So you get a follow-up on that one just giving.

這樣你就可以得到關於剛剛給予的後續行動。

Yes, given the balance sheet here, are you still have the debt, right?

是的，考慮到這裡的資產負債表，你還有債務嗎？

And clearly you're not using the proceeds to pay down debt.

顯然，你並沒有用收益來償還債務。

If the top line comes in weaker than expected rate of some of this cost execution does not plan out as expected.

如果收入低於預期，則部分成本執行計劃不會如預期進行。

Can you just help us think there's some additional levers to ought to protect flow?

您能否幫助我們思考應該採取一些額外的手段來保護流量？

Yes.

是的。

We have levers within the organization that will pull on.

我們在組織內擁有可以發揮作用的槓桿。

Absolutely.

絕對地。

We think we've got the liquidity to manage through the downside.

我們認為我們有足夠的流動性來應對下行趨勢。

If there is additional downside to this, we feel like the numbers are putting out there.

如果這還有其他負面影響的話，我們覺得這些數字已經公佈了。

If we think about the store closures being 70 and 90 basis points going into next year or work, we have already data and started our merchandising excellence program as we feel pretty confident in our ability to achieve the 2% to 3% next year on a very modest top line, the 50 to 150 basis points and market's going to be low single digit.

如果我們考慮到明年或上班時商店關門率將達到 70 和 90 個基點，我們已經掌握了數據並開始了我們的銷售卓越計劃，因為我們對明年實現 2% 到 3% 的目標非常有信心。溫和的頂線，50 到150 個基點，市場將是低個位數。

That's so yes, there's risk there's levers we can pull along the way.

是的，存在風險，我們可以在過程中使用槓桿。

But from a liquidity standpoint, we feel like our balance sheet of I wouldn't say that we're not paying down some debt.

但從流動性的角度來看，我們覺得我們的資產負債表並不是說我們沒有償還一些債務。

We will plan to pay down any of that maturity or before maturity as we work and execute this turnaround plan.

我們將計劃在我們工作和執行此週轉計劃時償還任何到期或到期前的債務。

Our goal is to get the 2.5.

我們的目標是達到 2.5。

So some of that cash eventually will be used to pay down debt along the way.

因此，其中一些現金最終將用於償還債務。

Just to add in terms of managing the business, fewer relevant metrics related to the performance of the business are now being tracked the review cycle with the leaders around those metrics to create accountability to create ownership.

需要補充的是，在管理業務方面，現在與業務績效相關的相關指標越來越少，領導者圍繞這些指標進行審查週期的跟踪，以建立問責制，從而建立所有權。

So that's how we're running.

這就是我們跑步的方式。

The company is different and directly related.

公司不同且直接相關。

So the things that contribute to the performance numbers we're putting out.

因此，對我們發布的性能數據有貢獻的因素。

So look for that scrutiny to assist that just I don't think about in terms of protecting the downside, but in terms of creating the conditions to deliver against what we're saying.

因此，尋求這種審查來提供幫助，只是我不考慮保護不利因素，而是考慮創造條件來兌現我們所說的話。

Thank you.

謝謝。

Our next question comes from Seth Sigman of Barclays.

我們的下一個問題來自巴克萊銀行的塞思‧西格曼。

Your line is open.

您的線路已開通。

Please go ahead.

請繼續。

Hey, good morning, everyone.

嘿，大家早安。

And I wanted to focus on store closings.

我想把重點放在商店關閉。

Can you just elaborate on what you identified that's different in those stores in those markets relative to the rest of the go-forward store base and also just the decision to exit certain states step?

您能否詳細說明您認為這些市場中的商店相對於其他未來商店基礎的不同之處，以及退出某些州步驟的決定？

Thank you, Seth.

謝謝你，賽斯。

I'll stop or was that question, Ryan, can can chime in areas of criteria that we put against all of the stores in the network.

我會停下來，或者這個問題，瑞安，可以與我們針對網路中所有商店制定的標準領域相呼應。

And by the way, we're geographically agnostic in terms of what state opened and what closed.

順便說一句，我們在地理上不知道哪些州開放、哪些州關閉。

And so there wasn't an eye towards particular entire state exits.

因此，沒有關注特定的整個州出口。

That's just what occurred as a result of the analysis, some of those metrics, store profitability.

這正是分析的結果，其中一些指標是商店獲利能力。

So if the stores fundamentally unprofitable that the key metric for us, we look at say what is the Horizon two, which we think we can make it profitable?

因此，如果商店根本上不盈利，這對我們來說是關鍵指標，那麼我們看看地平線二號是什麼，我們認為我們可以使其盈利？

Or how long has it been or has there been a managerial component?

或者已經有多久了或已經有管理部分了？

And so that's that was one dimension.

這就是一個維度。

Another one is the DC productivity, and this did influence how we thought about buckets.

另一個是 DC 生產力，確實影響了我們對儲存桶的看法。

So when you have a DC infrastructure in place to support stores, typically there's a number of stores that Creel for DC operations.

因此，當您擁有支援商店的配送中心基礎架構時，通常會有許多商店需要 Creel 進行配送中心營運。

And we don't have the density of stores to support that.

我們沒有足夠的商店密度來支持這一點。

It ends up impacting the profitability.

它最終會影響盈利能力。

And what we found with the Western markets is that for us to get to the scale for the DC operations to run where we run, we'd have to infill over a period of years and put a significant amount of CapEx to then get the baseline level of profitability occurring or we didn't think that the US, first of all of our capital to bring that about and the time horizon to make that happen, Tom, I was a good use of how we're thinking about the future.

我們在西方市場發現，要達到我們所經營的 DC 業務的規模，我們必須在幾年內進行填充並投入大量資本支出，然後才能獲得基線盈利水平發生，或者我們不認為美國，首先是我們的資本來實現這一目標，以及實現這一目標的時間範圍，湯姆，我很好地利用了我們對未來的思考方式。

So that's a that's how the Western markets came about.

西方市場就是這樣產生的。

Other metrics you talked about operations, but lots of other ones will physically, whereas the store located in the real estate market, how much do we pay in rent?

您談到了營運的其他指標，但許多其他指標將在物理上進行，而商店位於房地產市場，我們需要支付多少租金？

What's the horizon?

地平線是什麼？

So.

所以。

So this was a very thorough review, not taken lightly, obviously, when you're when you're closing a store, both in terms of the permanent.

所以這是一次非常徹底的審查，顯然，當你要關閉一家商店時，無論是在永久性方面，都不會掉以輕心。

So that activity in terms of the Company's ability to garner future revenues for this, but also the human side.

因此，這項活動不僅關係到公司為此獲得未來收入的能力，而且還關係到人的一面。

And the other side of that, anytime that you're making, these moves team members now don't get to continue the journey with them.

另一方面，無論您何時進行，這些行動團隊成員現在都無法與他們一起繼續旅程。

Company.

公司。

Nobody feels good about that.

沒有人對此感覺良好。

Got it.

知道了。

Okay.

好的。

That's all helpful.

這很有幫助。

If you sort of assume that you've laid out a plan today that I think it's clear for the next few years, but still and there's a lot of improvement ahead from all of these initiatives were getting from the question you're getting the question and a number of ways.

如果你假設你今天已經制定了一個計劃，我認為未來幾年的計劃是明確的，但從你所得到的問題中得到的所有這些舉措仍然有很多改進以及多種方式。

What gives you confidence that this is fixable that if not structural, are there specific data point share on the early wins or maybe how cohorts are performing, you start to roll out some of the hub stores?

是什麼讓你相信這個問題是可以解決的，如果不是結構性的，是否有關於早期勝利的具體數據點份額，或者隊列的表現如何，你開始推出一些中心商店？

Are there examples there you can give or you've had pricing actions?

您可以舉出一些例子或您已經採取過定價行動嗎？

I know there have been a number of early initiative.

我知道早期已經有一些倡議。

Any specific data points you can share to help instill that competence?

您可以分享任何具體數據點來幫助灌輸這種能力嗎？

Thanks so much.

非常感謝。

Yes.

是的。

So you talked about the huts.

所以你談到了小屋。

That's certainly what as we look at other key metrics where we do things around our store activities and we say, hey, if we move vehicles to store opportunity for pro-growth, how do they do, they get more pro-business.

這當然是當我們考慮圍繞商店活動開展工作的其他關鍵指標時，我們說，嘿，如果我們將車輛轉移到商店有利於增長的機會，他們會如何做，他們會變得更有利於業務。

If you look at it, merchandising, we say, hey, if we do a better job around parts availability and we pilot that, how does the sales to or we do better in terms of sales, if you look at how we're structuring some of our relationships with our vendors, can we can create constructs that that deliver better economics.

如果你看看銷售，我們會說，嘿，如果我們在零件供應方面做得更好，並且我們進行試點，那麼銷售如何，或者我們在銷售方面做得更好，如果你看看我們的結構如何透過我們與供應商的一些關係，我們可以創造出能夠帶來更好經濟效益的結構。

And so we're seeing those.

所以我們看到了這些。

But I think that the more important picture, if you come up to 50,000 feet, we're going to do our items under management's control.

但我認為更重要的是，如果你到達 50,000 英尺，我們將在管理層的控制下完成我們的專案。

So these are predominantly cost-related actions doesn't mean necessarily, but these are management controlled item is that if we can put good plans in place and focus on executing those the numbers followed, we have a streamlined supply chain.

因此，這些主要與成本相關的行動並不意味著必然，但這些是管理控制項目，如果我們能夠制定良好的計劃並專注於執行隨後的數字，我們就會擁有精簡的供應鏈。

The numbers follow if we have availability consistent with to what you'd see typically the numbers follow.

如果我們的可用性與您通常看到的數字一致，則數字如下。

So so this isn't predicated on outsized above market sales growth, for example.

因此，這並不是基於超出市場銷售成長等因素。

And so the idea that this is under our controllable doesn't require us to take share that data.

因此，「這是我們可控的」這個想法並不要求我們分享這些數據。

What gives me confidence in particular, as I see the plans that are coming from the different leaders as they see the leaders in their respective seats, that's where I feel very good about it from the U.S., it's a zero at the things that we are executing just the last few weeks.

尤其讓我有信心的是，當我看到不同領導人制定的計劃時，他們看到各自席位上的領導人，這就是我對美國感到非常滿意的地方，我們所做的事情為零僅在最近幾週執行。

We've seen store availability pump significantly as we started focusing on the right metrics in there.

當我們開始關注正確的指標時，我們發現商店的可用性顯著增加。

Thus management system now in all of our DCs and no lines for our improving across all of that at these metrics are coming in as we continue on the specific metrics of pricing actions in a we've solved for half of that pricing actions already in an environment where the idea why consumers pressure.

因此，現在我們所有的資料中心都有管理系統，隨著我們繼續研究定價行為的具體指標，我們已經解決了一半的定價行為，因此我們在這些指標上的所有改進都沒有路線。為何帶給消費者壓力。

And so we're seeing here, it's starting to come come through.

所以我們在這裡看到，它開始出現。

It's going to start to realize over the course of next year, we will be sharing these key metrics that we talked about, the progress of those every single quarter.

明年我們將開始意識到，我們將分享我們討論過的這些關鍵指標，以及每季的進展。

So you can get an update on a quarterly basis of these key operational KPI eyes, then we'll share those every quarter.

因此，您可以每季度獲取這些關鍵運營 KPI 指標的更新信息，然後我們將每個季度分享這些內容。

So you can get a feel for how it going to we understand this and it's side.

這樣你就可以了解我們如何理解這一點及其側面。

We've built a track record of financial things hit yet, but we are these decisive actions we're taking.

我們已經建立了尚未發生的金融事件的記錄，但我們正在採取這些果斷行動。

You're seeing that start to happen.

你正在看到這種情況開始發生。

We went from 38 days down to 28 DCs.

我們將 DC 時間從 38 天減少到 28 天。

We are taking actions.

我們正在採取行動。

Some of these KPIs are starting to convert.

其中一些 KPI 開始轉變。

Thank you.

謝謝。

Our final question today comes from Zach Fadem of Wells.

我們今天的最後一個問題來自威爾斯的紮克法德姆。

For those that your line is open.

對於那些您的線路已開通的人。

Please go ahead.

請繼續。

Thanks for all the details today.

感謝您今天提供的所有詳細資訊。

So as you think about the path from sub 1% operating margins today, that 2.5 next year and 7% down the road, how would you characterize that 25 and 2070 margin expectations if comps were So said differently, how much of that 2025 in 2027 margin expectation are predicated on higher comps?

因此，當你思考從今天低於1% 的營業利潤率到明年2.5% 以及未來7% 的路徑時，如果比較結果是2025 年到2027 年的利潤率預期，你會如何描述25 年和2070 年的利潤率預期？

Yes, it's little because we're not we're not going to beat the market where our assumptions going forward are mainly on what we control these actions.

是的，這很小，因為我們不會打敗市場，我們未來的假設主要取決於我們控制這些行為。

We're taking not on top line, significant top line growth.

我們不考慮營收的顯著成長。

So do we are focused on and preserve store availability, our supply chain costs and if they're all these things are things we control.

因此，我們是否關注並維持商店可用性、我們的供應鏈成本，以及是否所有這些都是我們可以控制的。

So the top line is not the driver of this growth and margin expansion on you saw in our walk that the sales per store is a big chunk of it.

因此，收入並不是這種成長和利潤擴張的驅動力，您在我們的訪談中看到，每家商店的銷售額佔其中的很大一部分。

That's not the big part of the driver of this solved.

這並不是解決此問題的主要驅動因素。

So if if we improve that and that goes, that's just upside potential for us.

因此，如果我們改進這一點並且繼續下去，這對我們來說就是上行潛力。

Now via Black Ops, there's a little bit of pressure from inflation.

現在透過《黑色行動》，通膨帶來了一些壓力。

I have 2% to 3% cost inflation that will be there.

我預計會有 2% 到 3% 的成本通膨。

But for the most part, we're assuming low single digit over the next three years.

但在大多數情況下，我們假設未來三年的成長率將低於個位數。

Zach's.

札克的。

James, thanks for the question.

詹姆斯，謝謝你的提問。

You see the comp expectations we put out, which are pretty modest.

您會看到我們提出的補償預期相當溫和。

The idea that we can grow at market rates are above market rates.

我們能夠以市場速度成長的想法高於市場速度。

That's the second bite of the apple for where we can improve bottom line of the company.

這是我們可以提高公司利潤的第二口蘋果。

What we're depicting for you today are the things that are cost-oriented that management has line of sight to executing it against that plans are in place and in many cases, activities underway that we've got the metrics involved with that.

我們今天為您描述的是那些以成本為導向的事情，管理層有視線根據計劃執行它，並且在許多情況下，我們已經獲得了與之相關的指標的活動正在進行。

We have confidence in achieving when we get those and hit those in stride.

當我們獲得這些目標並大踏步地實現這些目標時，我們就有信心實現目標。

That's where I think we have the follow-on discussions on the 1.2 billion in cash from world back.

我認為這就是我們對來自世界各地的 12 億現金進行後續討論的地方。

You've talked about reinvesting a chunk of that, but for the remaining 1 billion or so, can you walk us through just the decision making process around how to how to deploy the 1 billion, maybe share some thoughts around the decision not to pay down debt?

您談到了對其中很大一部分進行再投資，但對於剩下的 10 億美元左右，您能否向我們介紹如何部署這 10 億美元的決策過程，也許可以分享一些關於不支付決定的想法減少債務？

Right.

正確的。

Right away.

馬上。

And then how you think this decision or the decision you made could impact your credit rating one way or the other?

那麼您認為這個決定或您所做的決定會如何影響您的信用評級？

Yes.

是的。

So on the we haven't made the full decision not to pay down debt.

因此，我們還沒有做出不償還債務的完整決定。

We are managing our liquidity as we go through this restructuring during that we have the right to strengthen our balance sheet as we go through it.

我們在進行重組時正在管理我們的流動性，在此期間我們有權加強我們的資產負債表。

We are looking at the market today and making sure when when does it make the most financial sense for us to delever and pay down some of that debt on.

我們正在關註今天的市場，並確定何時去槓桿化和償還部分債務對我們來說最具財務意義。

So we are leaving it open right now.

所以我們現在讓它保持開放狀態。

You pay down debt at maturity or before maturity, but especially in the early stages of this turnaround industry structuring, um, we're leaving that flexibility out there for us.

您可以在到期時或到期前償還債務，但特別是在這種週轉行業結構的早期階段，嗯，我們將這種靈活性留給我們。

But that doesn't mean that we won't pay down debt before maturity.

但這並不意味著我們不會在到期前償還債務。

Thanks, Zach.

謝謝，扎克。

Thank you, Beth.

謝謝你，貝絲。

Will this does conclude today's Q&A session.

今天的問答環節到此結束嗎？

I would now like to turn the call back over to Steve Steinour.

我現在想把電話轉回史蒂夫·斯坦諾。

Kelly's any further or closing remarks.

凱利還有什麼進一步的或結束語嗎？

Today, we have depicted our future in terms of where we're going over the next three years.

今天，我們已經根據未來三年的發展方向描繪了我們的未來。

We'll gratitude to all the team members on the front line who work hard every day.

我們要感謝所有每天辛勤工作在一線的團隊成員。

We appreciate you taking the time to spend with us to go through each of those actions.

我們感謝您花時間與我們一起完成每項操作。

We will update you on our job, Arnie, as it unfolds we appreciations.

阿尼，我們將向您通報我們的工作最新情況，我們對此表示讚賞。

Let's go advance.

我們先走吧。

Thank you.

謝謝。

This concludes today's call.

今天的電話會議到此結束。

Thank you for joining.

感謝您的加入。

You may now disconnect your lines.

現在您可以斷開線路。

This is Howie.

這是豪伊。