領先汽車配件 (AAP) 2024 Q3 法說會逐字稿

Hello, everyone and welcome to the Q3 2024 Advance Auto Parts earnings conference call. My name is Charlie and I'll be coordinating the call today.

大家好，歡迎參加 2024 年第三季 Advance Auto Parts 財報電話會議。我叫查理，今天我將協調通話。

(Operator Instructions)

（操作員說明）

I now like to hand the call over to our host, Lavesh Hemnani, Vice President, Investor Relations, to begin.

現在我想將電話轉交給我們的東道主、投資者關係副總裁 Lavesh Hemnani 來開始。

Lavesh, please go ahead.

拉維斯，請繼續。

Good morning and thank you for participating in today's call. I'm joined by Shane O'Kelly, President and Chief Executive Officer and Ryan Grimsland, Executive Vice President and Chief Financial Officer.

早安，感謝您參加今天的電話會議。總裁兼執行長 Shane O'Kelly 和執行副總裁兼財務長 Ryan Grimsland 與我一起出席。

Before we begin, please be advised that management remarks today will contain forward-looking statements. All statements other than statements of historical facts are forward-looking statements, including but not limited to, statements regarding our strategic and operational review, initiatives, plans, projections, and expectations for the future. Actual results could differ materially from those projected or implied by the forward-looking statements. Additional information about forward-looking statements can be found under forward-looking statements in our earnings release and risk factors in our most recent Form 10-K and subsequent filings made with the SEC.

在我們開始之前，請注意，今天的管理層言論將包含前瞻性陳述。除歷史事實陳述外的所有陳述均為前瞻性陳述，包括但不限於有關我們的策略和營運審查、舉措、計劃、預測和對未來的期望的陳述。實際結果可能與前瞻性陳述中預測或暗示的結果有重大差異。有關前瞻性陳述的更多信息，請參閱我們的收益發布中的前瞻性陳述以及我們最近的 10-K 表格和隨後向 SEC 提交的文件中的風險因素。

During today's call, we will be referencing slides, which are available to view via webcast. A copy of the slides have also been posted to our Investor Relations website. In addition, we have also filed historical financials for the Advance RemainCo that can be accessed on our website.

在今天的電話會議中，我們將引用幻燈片，這些幻燈片可透過網路廣播觀看。幻燈片的副本也已發佈到我們的投資者關係網站上。此外，我們還提交了 Advance RemainCo 的歷史財務數據，可以在我們的網站上存取。

We will begin today's discussion with an overview of our third-quarter 2024 results.

我們將首先概述我們 2024 年第三季的業績。

After that, Shane will provide an update on our strategic path forward.

之後，肖恩將提供我們前進戰略道路的最新資訊。

Then, Ryan will discuss our financial objectives for the next three years.

然後，瑞安將討論我們未來三年的財務目標。

Following management's prepared remarks, we will open the line for questions.

在管理層準備好發言後，我們將開通提問專線。

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

現在讓我把電話轉給肖恩·奧凱利。

Shane?

謝恩？

This morning, Advance took a big step forward on its journey to operational excellence and value creation.

今天早上，Advance 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, focused, and excited.

我們的整個管理團隊充滿信心、專注且興奮。

Today, we will discuss Q3 results, our near-term outlook, and our strategic path forward through 2027.

今天，我們將討論第三季的業績、我們的近期展望以及我們到 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 clearer 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 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這個願景。

We are laying out a plan to deliver anticipated adjusted operating margin of approximately 7% by year-end 2027.

我們正在製定一項計劃，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 team's control, including merchandizing 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，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 at Advance whose efforts during the recent hurricanes has been exceptional.

在我們討論這些細節之前，我想對 Advance 65,000 多名辛勤工作的團隊成員表示感謝，他們在最近的颶風期間做出了非凡的努力。

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.

我們感謝許多員工與當地社區合作，透過幫助重新開業商店和領導捐款活動等努力為受影響的人們提供救濟。

This quarter, results came in below our expectations as the sales softness that began in early Q3 persisted throughout the quarter.

本季的業績低於我們的預期，因為第三季初開始的銷售疲軟在整個季度持續存在。

Macro headwinds and economic uncertainty continued to weigh on the consumer spending while our results were also impacted by other events such as hurricanes and the CrowdStrike outage.

宏觀不利因素和經濟不確定性持續影響消費者支出，而我們的業績也受到颶風和 CrowdStrike 中斷等其他事件的影響。

We are pleased to have made progress on our strategic actions, including the completion of the sale of Worldpac and a comprehensive productivity review 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 的出售以及對我們資產的全面生產力審查。

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.

此次審查確定了在未來三年內透過一系列行動（包括重新調整我們的商店和配送中心投資組合）來提高我們調整後的營業利潤率的機會。

Over the past year, I have spent a considerable amount of time at our stores and 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商店和配送中心，與我們的團隊成員、供應商和客戶會面。

Throughout these conversations, one common thread that emerged is Advance's rich legacy and the important role we play in the industry and in the lives of our customers.

在這些對話中，出現的一個共同點是 Advance 的豐富遺產以及我們在行業和客戶生活中發揮的重要作用。

With that foundation, today, we're excited to share our strategic and financial plan for the next three years.

在此基礎上，今天，我們很高興與大家分享我們未來三年的策略和財務計劃。

But first, let me pass it on to Ryan to discuss our Q3 results.

但首先，讓我將其轉交給 Ryan，討論我們第三季的結果。

Ryan?

瑞安？

Thank you, Shane.

謝謝你，謝恩。

And good morning, everyone.

大家早安。

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 of discontinued operations related to Worldpac and continuing operations, reflecting results for the Advance business.

首先，我們的結果顯示了與 Worldpac 相關的已終止業務和持續經營業務的細目，反映了 Advance 業務的結果。

Second, (technical difficulty) better understanding of our underlying operational performance, we report certain financial measures on an adjusted non-GAAP basis to exclude the impact of certain items.

其次，（技術難度）更了解我們的基本營運業績，我們在調整後的非公認會計準則基礎上報告某些財務指標，以排除某些項目的影響。

Our guidance and financial plan for the next three years is based on these 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非典型項目的影響，這些非典型項目並未包含在我將很快討論的非公認會計準則調整中。

In 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 Advance continuing operations.

現在讓我們來看看 Advance 持續營運的報告結果。

Net sales from continuing operations were $2.1 billion, a (technical difficulty) [3%] decrease compared with Q3 last year driven by continued softness in the overall consumer spending environment.

持續經營業務的淨銷售額為 21 億美元，由於整體消費者支出環境持續疲軟，與去年第三季相比（技術難度）下降了 [3%]。

In addition, two other events impacted us this quarter.

此外，本季還有另外兩件事影響了我們。

First, our store and server systems were impacted by the global CrowdStrike system outage due to which stores were temporarily unable to serve customers and close transactions.

首先，我們的商店和伺服器系統受到全球 CrowdStrike 系統中斷的影響，導致商店暫時無法為客戶提供服務並關閉交易。

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

其次，本季晚些時候，颶風海倫影響了 300 多家商店的銷售。

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

我們估計這兩個事件加起來對第三季業績產生了約 50 個基點的阻力。

Without these events, our two-year comparable sales growth would have been about in line with the second quarter and our expectations.

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的預期大致一致。

In terms of channel performance, both Pro and DIY declined in the low single-digit range with Pro performing relatively better.

通路表現方面，Pro 和 DIY 均出現低個位數下滑，其中 Pro 表現相對較好。

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 Pro 比較是積極的，並且與上季度相比有所加速。

During Q3, transactions declined in the low single-digit range led by a mid single-digit decline in DIY transactions.

第三季度，交易量在低個位數範圍內下降，其中 DIY 交易出現中個位數下降。

Average ticket growth was positive in both channels.

兩個頻道的平均門票成長均呈正值。

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。

Both sales and discretionary categories were weaker.

銷售和非必需品類別均較弱。

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

持續經營業務毛利為 9.08 億美元，佔淨銷售額的 42.3%，較上年提高約 540 個基點。

As a reminder, in Q3 last year, we had one-time inventory adjustments.

提醒一下，去年第三季度，我們進行了一次性庫存調整。

This contributed approximately 525 basis points of the year-over-year improvement.

這為同比改善貢獻了約 525 個基點。

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

這一平衡是由於產品成本的穩定性被今年稍早的定價投資所抵消。

Adjusted SG&A from continuing operations was $891 million or about flat year over year.

持續經營業務調整後的 SG&A 為 8.91 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 a 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%，而由於銷售額下降而去槓桿化了 130 個基點，調整後的 SG&A 為 40.2%。

We incurred higher labor related expenses to the front-line 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，但這些費用被我們的成本支出努力所抵消。

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.

來自持續經營業務的調整後營業收入為 1,670 萬美元，佔淨銷售額的百分比上升了 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 Q3 results, I would like to provide some additional details of certain atypical items that influenced Q3 results.

為了結束對第三季結果的討論，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 see on this slide, we estimate atypical items amounted to 125 basis points of operating margin headwind and approximately $0.34 of EPS headwind during the third quarter.

正如您在這張幻燈片中看到的，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.

謝謝你，瑞安。

It's an honor to lead this company and work alongside so many talented team members.

能夠領導這家公司並與這麼多才華橫溢的團隊成員一起工作是我的榮幸。

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.

為此，我想先強調我們扭虧為盈的關鍵驅動因素。

Number one, we're a leading player in the more than $150-billion auto aftermarket industry that has strong demand drivers.

第一，我們是價值超過 1500 億美元的汽車售後市場行業的領導者，該行業擁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 can yield substantial results.

提醒一下，即使是績效的漸進式改進也能產生實質成果。

Number two, our strategy is centered on getting back to the fundamentals of selling auto parts.

第二，我們的策略集中在回歸汽車零件銷售的基礎。

The slope of our improvement will be determined by the multitude of smaller decisions made by our team.

我們改進的斜率將取決於我們團隊所做的眾多較小決策。

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.

我們正在將產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 Advance 混合盒的效能。

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 Worldpac sale, we will also have an enhanced liquidity position providing incremental capital to execute our plan.

此外，在 Worldpac 出售之後，我們的流動性狀況也將得到增強，為執行我們的計劃提供增量資本。

Number four, we completed a thorough assessment of operational productivity across our asset base and identified opportunities to improve profitability.

第四，我們完成了對整個資產基礎營運生產力的全面評估，並確定了提高獲利能力的機會。

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

我們相信，包括商店佔地面積優化在內的計劃將使我們能夠縮小行業公認會計原則的利潤率。

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 deliver 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 strong 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堅實的基礎。

Now let me discuss each of these drivers.

現在讓我逐一討論這些驅動因素。

On slide 10, you see that Advance operates in an attractive sector with strong demand drivers and access to a large addressable market.

在幻燈片 10 中，您可以看到 Advance 在一個有吸引力的行業中運營，該行業具有強大的需求驅動力和進入大型潛在市場的機會。

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.

在美國，營運車輛持續成長，路上行駛的汽車數量已超過 2.8 億輛，其中近 85% 的車輛車齡至少為四年。

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

隨著消費者保有汽車的時間不斷延長，這些車輛的平均車齡持續成長，目前已達到 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 maintenance, supporting demand for parts and accessories, and creating a strong backdrop for growth.

這些因素預計將有助於促進消費者在汽車維修和保養方面的健康支出，支持零件的需求，並創造強勁的成長背景。

In the near term, we are cognizant of the economic uncertainty that is weighing on consumer sentiment and we're planning our business accordingly.

短期內，我們認識到經濟的不確定性正在影響消費者信心，因此我們正在相應地規劃我們的業務。

To reposition Advance for growth, we are getting back to the basics which starts with putting the customer first.

為了重新定位 Advance 以實現成長，我們將回歸基本原則，從客戶至上開始。

When I began this role a year ago, we started working on a cultural change to put greater emphasis on listening to the customer.

當我一年前開始擔任這項職務時，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 to meet the customers' needs, we win.

我們堅信，當我們將客戶放在第一位並協調組織的其他部門來滿足客戶的需求時，我們就會獲勝。

With this focus in mind, we have taken several decisive actions over the last year.

考慮到這一重點，我們在去年採取了幾項果斷行動。

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

其中包括將我們的努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 reduced costs and then invested additional resources in our front line to help reduce turnover and enable front line team members to better serve our customers.

我們也降低了成本，然後在第一線投入了額外的資源，以幫助減少人員流動，並使第一線團隊成員能夠更好地為客戶服務。

Through these efforts turnover in four key field roles has been reduced by nearly 700 basis points over the past year.

透過這些努力，過去一年四個關鍵領域職位的人員流動率減少了近 700 個基點。

We initiated the consolidation of our supply chain which has been accompanied by the rollout of market hubs.

我們開始整合供應鏈，同時推出市場中心。

To create economies of scale, we are seeing early results that the market hubs and the stores served by the market hubs are comping better relative to markets without hubs.

為了創造規模經濟，我們看到了早期的結果，即市場中心和市場中心所服務的商店相對於沒有中心的市場來說競爭更好。

We also invested in pricing to improve our competitive 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 estimate that we've recovered approximately half of the investment of these pricing moves on an annualized basis.

我們還估計，按年化計算，我們已經收回了這些定價變動投資的一半左右。

From a talent perspective, our new leaders have been rebuilding teams and refreshing 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更新流程，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，該混合盒為同一家商店的 DIY 和 Pro 客戶提供服務。

In our view, our blended 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，我們對混合 Box 的關注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 Carquest 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國家品牌和自有品牌，包括我們廣受歡迎的 Carquest 和頑固產品系列。

We have a loyal base of more than 15 million DIY speed perks members and tens of thousands of Pro rewards members to support our growth.

我們擁有超過 1500 萬 DIY 速度福利會員和數萬名專業獎勵會員的忠實基礎，支持我們的發展。

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.

根據產業預測，由於消費者偏好的變化，部分原因是零件複雜性的增加，Pro 預計將成為成長的主要引擎。

We have access to a large vendor community that is fully supportive of our turnaround efforts and our renewed focus on the blended box.

我們可以接觸到一個大型供應商社區，他們完全支持我們的轉型努力以及我們對混合盒的重新關注。

With our merchandizing initiatives, development of effective end-to-end supply chain capabilities and changes to our store operating model, we will enable our stores to serve Pros faster.

透過我們的商品計劃、有效的端到端供應鏈能力的開發以及商店營運模式的改變，我們將使我們的商店能夠更快地為專業人士提供服務。

In our Pro sales team, we have redesigned incentive structures and increased wages to market levels to improve retention and drive higher productivity.

在我們的專業銷售團隊中，我們重新設計了激勵結構，並將薪資提高到市場水平，以提高保留率並提高生產力。

In our DIY business, we are making investments in stores, team member training, and e-commerce capabilities to improve customer experience and conversion.

在我們的 DIY 業務中，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。

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, and merchandizing who possess fundamental expertise in executing retail operations not shown on this page but important to mention is our store team where leaders including our field based regional Vice Presidents bring extensive automotive expertise.

我們最近引進了金融、房地產和銷售方面的才華橫溢的領導者，他們擁有執行零售業務的基本專業知識（本頁未顯示），但值得一提的是我們的商店團隊，其中包括我們的現場區域副總裁在內的領導者帶來了廣泛的汽車專業知識。

We have also augmented functional talent in merchandizing and supply chain and I am confident that this team's blend of automotive and retail fundamental knowledge

我們也增強了商品規劃和供應鏈的職能人才，我相信團隊融合了汽車和零售基礎知識

(technical difficulty)--

（技術難度）——

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

在上週的下一張投影片中，我們宣布成功完成 Worldpac 出售，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 debt position.

因此，我們目前擁有約 20 億美元的現金，超過了我們的債務總額。

As Ryan will describe in more detail later, we believe the combination of the Worldpac proceeds and the anticipated improvement in our operating cash flow will provide the requisite liquidity to run our business and fund our investments.

正如 Ryan 稍後將更詳細描述的那樣，我們相信 Worldpac 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投資提供必要的流動性。

In the coming years, we are focused on two main priorities.

未來幾年，我們將重點放在兩個主要優先事項上。

The first is investing in activities to improve the business and the second is supporting our balance sheet, including repaying debt at or before maturity.

第一個是投資於改善業務的活動，第二個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.

下一張投影片。

In August, we began a comprehensive review of asset productivity.

8月份，我們開始對資產生產力進行全面審查。

Our goal was 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 path to deliver consistent profitable growth as shown on the slide.

經過這次審查，我們將我們的策略計劃固定在三個支柱上，以使我們走上實現持續獲利成長的道路，如幻燈片所示。

Starting with our store operations.

從我們的商店營運開始。

As indicated in our release this morning, we made the decision to close certain non-performing, non-strategic stores in the US to better position our asset base for long-term sustainable growth.

正如我們今天早上發布的新聞稿中所指出的，我們決定關閉美國某些表現不佳、非戰略性的商店，以更好地定位我們的資產基礎，實現長期可持續增長。

As we move along our turnaround journey with a revised asset base, we're also redesigning our basic store operating model to yield stronger labor productivity.

當我們透過調整資產基礎來推進轉型之旅時，我們也在重新設計我們的基本商店營運模式，以提高勞動生產力。

The second pillar is merchandizing 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 costs.

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成本。

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

這涉及與我們的供應商合作，展示與 Advance 的合作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 has 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.

我們在整合配送中心方面不斷取得進展，以精簡的大型配送中心網路進行運作。

And as a result, have closed or converted 10 small DCs.

結果，關閉或改造了 10 個小型 DC。

We have opened 18 market hub stores to date and are targeting to open 60 by mid-2027.

迄今為止，我們已開設 18 家市場中心商店，目標是到 2027 年中期開設 60 家。

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

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，以完成今天早上宣布的商店和配送中心的關閉。

While we consolidate DCs and build new hubs, we are simultaneously pursuing opportunities to optimize our DC to store transportation routes to reduce costs and increase productivity.

在我們整合配送中心和建造新樞紐的同時，我們也在尋求機會優化我們的配送中心以儲存運輸路線，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 to eliminate 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，取消整個組織中的某些職位，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 in addition to the SG&A reductions announced last year.

我們預計，除了去年宣布的 SG&A 削減之外，這還將帶來約 5,000 萬美元的年度節省。

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.

下一張投影片。

A key component of our operational productivity review was evaluating the health of our stores.

我們營運生產力檢討的關鍵組成部分是評估我們商店的健康狀況。

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

經過審查，我們決定關閉 500 多家 Advance 商店，並終止與 200 多家獨立門市的關係。

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

這種減少包括完全退出某些西部州的市場，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州。

Further, there are four Western DCs that are included in the closures.

此外，還有四個西部特區被關閉。

Our decision does not impact locations in Canada.

我們的決定不會影響加拿大的地點。

We considered multiple criteria during our evaluation process and I'd like to further discuss [three] store profitability, DC productivity.

我們在評估過程中考慮了多個標準，我想進一步討論[三]商店盈利能力、DC 生產力。

Let's begin with store profitability.

讓我們從商店盈利能力開始。

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

我們評估了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，以確定每個地點的生存能力。

Second, distribution center productivity.

第二，配送中心生產力。

Our four DCs on the West Coast survey lower concentration of stores and we would need to allocate significant capital and resources to infill those markets.

我們位於西海岸的四個配送中心的商店集中度較低，我們需要分配大量資本和資源來填補這些市場。

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

我們認為這不是我們資本的最佳利用方式，並相信投資於業務的其他核心領域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.

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。

And third, establishing a stronger foundation to simplify operational execution.

第三，為簡化營運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 closures, over 75% of our revised store footprint will be in designated market areas where we will have the number one or number two position based on store density.

關閉後，超過 75% 的修改後的商店足跡將位於指定的市場區域，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.

我們預計將在 2025 年中期關閉這些項目。

The 700 locations outlined for closure are diluted to the annual operating income by approximately $60 million to $80 million which we expect to recover following the closures.

計劃關閉的 700 個地點的年度營業收入將被稀釋約 6,000 萬至 8,000 萬美元，我們預計這些收入將在關閉後收回。

We expect to collaborate with landlords to exit these store locations in a reasonable manner to manage the obligations on our balance sheet.

我們希望與房東合作，以合理的方式退出這些商店地點，以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，我們認為這項行動是謹慎的，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.

本頁提供了我們修改後的商店足跡的財務概覽。

On an aggregate basis, our decision includes closure of approximately 10% of our corporate stores and approximately a 20% reduction in US independent locations.

總體而言，我們的決定包括關閉約 10% 的公司門市，以及減少約 20% 的美國獨立門市。

The higher share of independence is primarily driven by our decision to exit the West coast markets where there is a higher concentration of these locations.

較高的獨立性主要是因為我們決定退出西海岸市場，因為這些地區的集中度較高。

Based on financials over the last 12 months, the reduction of these 700 locations is expected to reduce our net sales by approximately $700 million.

根據過去 12 個月的財務數據，這 700 個地點的減少預計將使我們的淨銷售額減少約 7 億美元。

Our revised corporate store footprint base now implies about 4% higher sales per store compared to the store base preclosures.

我們修訂後的企業商店足跡基數現在意味著每家商店的銷售額比預先關閉的商店基數高出約 4%。

Next slide.

下一張投影片。

This page shows an updated map of our store locations.

此頁面顯示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 improved financial 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，並支持未來改善財務表現。

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 is mapping out opportunities in each market, designing a plan to accelerate new store openings while compressing our opening timeline.

我們的房地產團隊正在規劃每個市場的機會，設計一項計劃以加速新店開業，同時壓縮開業時間。

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.

下一張投影片。

As a next step to maximizing productivity in our stores, we are redesigning our operating model with an emphasis on quality and speed of service.

作為最大限度提高商店生產力的下一步，我們正在重新設計我們的營運模式，重點關注服務品質和速度。

Let's break this down by DIY and Pro.

讓我們按 DIY 和 Pro 來分解一下。

Starting with DIY, we are adopting a data-driven centralized approach to managing team schedules based on DIY traffic patterns which enables general managers to dedicate more time to selling activities.

從DIY開始，我們採用數據驅動的集中式方法，根據DIY流量模式來管理團隊日程，使總經理能夠將更多時間投入銷售活動。

We are also reducing the amount of manual paperwork that our GMs do.

我們也減少了總經理的手動文書工作量。

We are providing them with better reporting to track 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來追蹤他們的表現，我們還用 Zebra 設備取代過時的射頻掃描器。

From a talent perspective, we recently launched centralized recruiting for stores in certain markets to give our GMs more 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，為總經理提供更大的營運彈性，我們計劃將其推廣到所有市場。

Last month, we also made the decision to sunset our UPS access point program.

上個月，我們也決定取消 UPS 接入點計畫。

The time devoted to UPS drop-offs and pickups took time away from serving our customers.

UPS 投遞和取件所花費的時間佔用了我們為客戶提供服務的時間。

To elevate the quality of our service, 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.

為了提高我們的服務質量，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他們的維修和保養需求。

Moving on to the Pro.

轉向專業版。

We are reallocating resources by sales volume, competitive intensity, and customer demand.

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 a standardization of our driver vehicle schedules, a 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標準化、第三方交付的減少以及商店中商業零件專業人員的管理。

With regard to driver schedules, we're assessing store level performance to allocate resources to high volume stores and manage labor costs in lower traffic stores.

關於司機時間表，我們正在評估商店層級的績效，以便將資源分配給高流量商店並管理低流量商店的勞動力成本。

This approach will drive stronger labor productivity while ultimately lowering our time to service Pro customers.

這種方法將提高勞動生產力，同時最終縮短我們為專業客戶提供服務的時間。

Today, our time to serve is slower than what we want to be and we are focused on lowering this over time.

今天，我們的服務時間比我們想要的要慢，我們致力於隨著時間的推移減少這一時間。

Next slide.

下一張投影片。

To win in the aftermarket and enhance our reputation as a destination for high-quality auto parts, we need to consistently make available thousands of parts for our customers.

為了贏得售後市場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 merchant organization and re-establish Advance as a long-term growth partner within the vendor community.

我們成功地增加了擁有關鍵專業知識的新領導層，以改造我們的商業組織，並將 Advance 重新打造為供應商社群中的長期成長合作夥伴。

This starts with changing our philosophy with vendors from what can you do for me?

首先要改變我們與供應商的理念，也就是你能為我做些什麼？

We are undertaking joint business planning with our vendors discussing category strategies, placement for SKUs, and mutually establishing roles to build trust.

我們正在與供應商進行聯合業務規劃，討論品類策略、SKU 的佈局以及相互建立角色以建立信任。

Our conversations with vendors have been constructive and we look forward to building our dialogue with the aftermarket vendor community at our summit in January.

我們與供應商的對話具有建設性，我們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 merchandizing teams to drive higher volumes and reduce costs.

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，以提高銷售量並降低成本。

To effectively serve the aftermarket based on different demand and service expectations, we need to provide parts coverage for thousands of SKUs at any given time.

為了根據不同的需求和服務期望有效地服務售後市場，我們需要在任何特定時間為數千個 SKU 提供零件覆蓋。

This begins with product line reviews that help us identify unproductive SKUs, introduce 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，幫助我們識別效率低下的 SKU、推出新產品、評估私有品牌與國家品牌，並評估供應商多元化，以提高我們將產品推向市場的速度。

We expect to undertake between 200 and 250 line reviews this year and plan to pick up the pace over the next two years.

我們預計今年將進行 200 至 250 次線路審查，並計劃在未來兩年內加快步伐。

Our ability to bring parts to the market faster also depends on the speed at which the parts are set up in our system.

我們更快地將零件推向市場的能力也取決於零件在我們系統中設定的速度。

Our goal is to bring this timeline down significantly by breaking down existing processes and leveraging automation.

我們的目標是透過打破現有流程並利用自動化來顯著縮短這一時間。

Setting up parts faster will enable us to capture demand signals faster and results in effective SKU management across the network.

更快地設定零件將使我們能夠更快地捕獲需求訊號，並在整個網路中實現有效的 SKU 管理。

On assortment, our goal is to ensure accurate availability of parts in our network.

在分類方面，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 SKU combinations.

我們的品類很複雜，包括超過 9,000 萬個獨特的商店 SKU 組合。

We are addressing internally identified SKU gaps and building competitive intelligence to expand availability for our customers.

我們正在解決內部確定的 SKU 差距並建立競爭情報，以擴大對客戶的可用性。

This will also support higher labor productivity as our front-line team can reduce time chasing parts from surrounding stores that they do in order to complete an order.

這也將支持更高的勞動生產率，因為我們的一線團隊可以減少從周圍商店追逐零件以完成訂單的時間。

We have all started measuring store availability through DC and store in-stock depth.

我們都開始透過 DC 和商店庫存深度來衡量商店的可用性。

Today, this metric sits in the low 90s and we expect it to reach a high 90s level over time as we introduce technical capabilities.

如今，該指標處於 90 年代的低水平，隨著我們引入技術能力，我們預計它會隨著時間的推移達到 90 年代的高水平。

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.

除了更快地將零件推向市場之外，我們正在重新評估我們的促銷和折扣機制，以便為客戶提供相關優惠並減少無效的促銷活動。

For our Pro business, our team is designing new category based and customer segmented promotional models along with stronger technical testing capabilities to understand the impact of promotions.

對於我們的專業業務，我們的團隊正在設計新的基於類別和客戶細分的促銷模型，以及更強大的技術測試能力，以了解促銷的影響。

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

這些模型將考慮客戶支出量、我們的服務速度和競爭密度等因素。

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

這種數據驅動的方法將使我們能夠根據市場特徵更有針對性地開展活動。

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

在我們的 DIY 業務中，我們計劃根據我們的估計減少營運規模，擴大規模。

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

我們網站上打折銷售的商品數量幾乎是其他網站的兩倍，而這些促銷活動的投資報酬率卻不一致。

We have also created execution challenges for our teams in managing SKU depth across multiple simultaneous promotions.

我們也為我們的團隊在管理多個同步促銷活動的 SKU 深度方面提出了執行挑戰。

To optimize this, our team is focusing on the fundamental goal of driving higher comparable margin dollars on a year-over-year basis and amplifying our vendor funded media campaigns to influence traffic.

為了優化這一點，我們的團隊致力於實現逐年提高可比較利潤率的基本目標，並擴大我們的供應商資助的媒體活動以影響流量。

Next slide.

下一張投影片。

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.

我們高度專注於優化我們的供應鏈，只有一個簡單的目標：減少客戶收到零件的時間，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 operated 38 DCs of varying sizes.

今年年初，我們營運了38個不同規模的配送中心。

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

到 2026 年，我們計劃營運 13 個配送中心，每個配送中心平均面積約為 50 萬平方英尺。

This is a change from our prior expectation of 14 DCs due to the exit of one large DC on the west coast related to our asset optimization work.

這與我們之前預期的 14 個資料中心有所變化，因為與我們的資產優化工作相關的西海岸 1 個大型資料中心的退出。

These DCs will operate on a single warehouse management system to establish better SKU tracking and inbound, outbound inventory processes.

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 SKU 追蹤和入庫、出庫庫存流程。

We have successfully completed the conversion of our final DC to the new WMS system.

我們已成功完成最終 DC 到新 WMS 系統的轉換。

As we consolidate the volume of smaller DCs in the larger ones, we begin moving more volume via truckload shipments compared to LTL shipments which lowers our overall freight costs.

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運輸比零擔運輸更多的貨量，這降低了我們的整體貨運成本。

For example, in our home state of North Carolina, our DC consolidation project has resulted in 15% more volume moving by truckload which is lowered freight costs.

例如，在我們的家鄉北卡羅來納州，我們的配送中心整合項目使卡車運輸量增加了 15%，從而降低了貨運成本。

Operating fewer larger DCs also provides an opportunity to optimize our picking and outbound replenishment activities.

經營較少的大型配送中心也提供了優化我們的揀貨和出庫補貨活動的機會。

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

我們透過 LPH 或每小時生產線來衡量 DC 的勞動生產率，它顯示每小時挑选和發貨的產品線數量。

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

該 KPI 目前處於 20 左右的範圍，我們的中期目標是將其提高 15% 到 20%。

Along with the consolidation, we are building a Multi-echelon, our new market hubs are designed to improve our speed of service by placing 85,000 SKUs closer to the customer, thereby increasing availability by 70% compared to a hub store and by more than 200% compared to a regular store.

隨著整合的進行，我們正在建立一個多梯隊，我們的新市場中心旨在透過將85,000 個SKU 放置在離客戶更近的位置來提高我們的服務速度，從而使可用性比中心商店提高70%，並提高200 多個% 與一般商店相比。

While still early in our build out, this is a proven model in the industry and we're 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 without market hubs.

今年迄今，市場中心及其服務店網路的可比銷售成長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 into action to lower fixed transportation costs in our replenishment model.

在繼續整合和擴建的同時，我們也將計劃付諸行動，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 routes, adding more stops along a route and renegotiating carrier contracts.

我們計劃透過優化從配送中心出發的路線來減少路線數量、在路線上增加更多站點以及重新協商承運商合約來實現這一目標。

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

另外，作為優化的一部分，我們正在建立提高商店 DC 服務水準的能力，以支援大批量商店的更多銷售。

We fully recognize that Advance is a significant operating margin gap to the industry and we are focused on narrowing that gap.

我們充分認識到 Advance 與行業相比存在巨大的營業利潤差距，我們致力於縮小這一差距。

We strongly believe that with our current plan, we can improve our ability to generate higher profits more consistently.

我們堅信，透過我們目前的計劃，我們可以提高我們更持續地創造更高利潤的能力。

Based on cost factors alone, we have identified approximately 500 to 700 basis points of margin opportunity.

僅根據成本因素，我們就確定了約 500 至 700 個基點的利潤機會。

This is associated with reducing supply chain and product costs, improving pricing and promotions management, and extracting SG&A 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銷售、管理和管理效率有關。

Our largest gap to peers is sales productivity at the store level which is 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同。

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

當我們採取行動改善直接和間接費用結構時，我們預計更大比例的銷售收入將流向利潤，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 our ability to fully close the gap in the long term.

我還想指出，在圖表的最右側部分，我們顯示了我們財務狀況中的結構性組成部分，這將限制我們長期完全縮小差距的能力。

These include a higher mix of rented store locations, the relative mix of Pro customers, and margin considerations from sales to independent locations.

其中包括租用商店地點的更高組合、專業客戶的相對組合，以及向獨立地點銷售的利潤考量。

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 opportunities 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.

我們的生產力檢討發現，未來三年有機會實現超過 500 個基點的利潤率，以實現到 2027 財年底實現調整後營業利潤率約 7% 的目標。

These margin opportunities stem from actions within each of our strategic pillars.

這些利潤機會源自於我們每個策略支柱內的行動。

Ryan will share more details on our long-term financial objectives and how we plan to track our progress.

瑞安將分享有關我們長期財務目標以及我們計劃如何追蹤進度的更多詳細資訊。

As I wrap up my section, I would like to reiterate that each activity in our strategic plan reflects an operating philosophy based on core retail fundamentals.

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。

We will remain focused on executing and tracking the success of these actions to elevate the performance of the Advance blended box.

我們將繼續專注於執行和追蹤這些行動的成功，以提高 Advance 混合盒的效能。

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

我現在將把它交給瑞安來描述這些策略行動如何推動我們的財務計劃。

Ryan?

瑞安？

Thank you, Shane.

謝謝你，謝恩。

I am excited to share our financial road map through fiscal 2027 and plans to deliver value for our shareholders.

我很高興分享我們在 2027 財政年度的財務路線圖，並計劃為股東創造價值。

Our financial plan reflects progress on achieving greater operational productivity through our strategic actions.

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。

As we discussed our financial plan today, both Shane and I recognize that we need to build a track record of success.

當我們今天討論我們的財務計劃時，我和肖恩都認識到我們需要建立成功的記錄。

Over the past several months, we have dedicated a time to diving into the business, understanding the opportunities that lie ahead, and building a plan backed by solid fundamental actions.

在過去的幾個月裡，我們花了一些時間深入業務，了解未來的機遇，並制定以堅實的基本行動為後盾的計劃。

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

我們專注於四個關鍵領域，以提高未來三年及以後的股東回報。

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

首先，我們正在透過關閉商店和削減銷售管理費用來優化我們的資產組合，為長期成長提供健康的基礎。

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

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

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 believe that we have ample liquidity for investment in high return projects across critical areas to support our growth.

第三，我們相信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。

This includes building our multi Echelon network and accelerating new store openings.

這包括建立我們的多梯隊網絡和加速新店開業。

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，從而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 meaningful 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有意義的進展。

During the implementation, we will be measuring the success of each pillar with clearly defined operational KPIs and holding 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 execution.

成功的公司和不成功的公司之間的差異在於執行的品質。

As a management team that is where we spend most of our time with a focus on getting the basics right.

作為一個管理團隊，我們大部分時間都花在專注於正確的基礎知識。

Before discussing our three-year plan, let me provide some color on our financials, [adjusting] for the full impact of store closures, and the sale of Worldpac.

在討論我們的三年計劃之前，讓我先介紹一下我們的財務狀況，並根據商店關閉和 Worldpac 出售的全面影響進行調整。

Starting with the midpoint of our 2024 guidance and excluding stores planned for closure, our pro forma revenue is expected to be between $8.2 billion and $8.4 billion.

從我們 2024 年指導方針的中點開始，不包括計劃關閉的商店，我們的預計收入預計在 82 億美元至 84 億美元之間。

As previously noted, the store closures reduce our net sales by approximately $700 million.

如前所述，商店關閉使我們的淨銷售額減少了約 7 億美元。

However, we are rebasing our plan around $600 million to $800 million in net sales reduction.

然而，我們正在重新調整計劃，將淨銷售額削減約 6 億至 8 億美元。

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

該範圍的高端假設適度的銷售轉移到我們將繼續開展業務的地點和市場。

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

該範圍的低端是基於由於商店佔地面積減少而與我們的銷售團隊工作重新調整相關的潛在阻力。

In addition, we show the midpoint of our 2024 operating income margin guidance as well as the anticipated 70 to 90 basis points of savings associated with store closures about 30 basis points of atypical items offset.

此外，我們也展示了 2024 年營業收入利潤率指引的中位數，以及與關閉商店相關的預計 70 至 90 個基點的節省，以及約 30 個基點的非典型商品抵銷。

Over the next few slides, I'll provide an overview of our three-year financial plan with preliminary expectations for 2025.

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 2025 年的初步預期。

Starting with net sales.

從淨銷售額開始。

For 2025, we expect net sales of approximately $8.4 billion to $8.6 billion.

2025 年，我們預期淨銷售額約為 84 億至 86 億美元。

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 grow comparable sales between 50 to 150 basis points, which is an improvement on our current run rate with modest contribution from strategic actions currently in flight.

我們還計劃明年開設 30 家新店，並將可比銷售額增長 50 至 150 個基點，這比我們目前的運行率有所改善，目前正在進行的戰略行動的貢獻不大。

This rate of growth also includes the carryover of pricing actions first half of 2025.

這一增長率還包括 2025 年上半年定價行動的結轉。

Over the following two years, we expect our rate of comparable sales growth to improve.

在接下來的兩年裡，我們預計可比銷售額成長率將會提高。

As we realize the benefits of our store operating model changes, improve parts availability, and an overall improvement in customer service including a reduction in our time to serve.

當我們意識到商店營運模式改變、提高零件可用性以及客戶服務的整體改進（包括減少服務時間）的好處時。

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

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。

As a result, our plan is based on comparable sales growth below industry levels.

因此，我們的計劃是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-term 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.

現在來看看調整後的營業利益率。

By the end of 2025, we are planning for adjusted operating margin between 2% to 3%, implying an expansion of 150 to 250 basis points compared to the midpoint of our RemainCo 2024 guidance.

到 2025 年底，我們計劃將調整後的營業利潤率調整為 2% 至 3%，這意味著與我們的 RemainCo 2024 年指導中位數相比擴大 150 至 250 個基點。

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

如前所述，我們預計與關閉商店相關的營運成本將節省約 6,000 萬至 8,000 萬美元，利潤率將節省約 70 至 90 個基點。

During 2025, we expect to recover about half of these savings to the timing of closures.

到 2025 年，我們預計將在關閉時收回大約一半的節省費用。

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

預計營運成本節省將在 2026 年下半年全面實現。

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

到 2025 年，我們的利潤率改善的其餘部分是由銷售活動（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 cost that initiatives offset by normal wage inflation.

我們預計，到 2025 年，勞動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 operating margin to increase by another 400 to 500 basis points, which includes the full operational cost savings associated with the store closures.

在接下來的兩年裡，我們預計營業利潤率將再增加 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。

Our plan assumes fiscal 2027 gross margin in the mid-40s range and SG&A below 40%.

我們的計畫假設 2027 財年的毛利率在 40 多歲左右，SG&A 低於 40%。

The gross margin improvement is expected to be driven by three primary factors.

毛利率的改善預計將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

二、DC生產力與交通

(technical difficulty).

（技術難度）。

We expect to leverage supply chain costs and drive stronger DC productivity through higher inbound and outbound volumes by operating fewer large DCs.

我們期望透過營運更少的大型配送中心來提高進出庫量，從而利用供應鏈成本並提高配送中心的生產力。

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

我們也計劃根據交易量和市場需求優化門市補貨路線。

And third, promotions.

第三，促銷。

With the use of targeted promotions, we aim to remove unproductive offers and drive better gross margin returns through 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，並透過有紀律的促銷節奏來提高毛利率回報，從而產生更高的回報。

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

同時，我們計劃管理專業客戶折扣，即新的定價模式，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 supported by better parts availability.

關於SG&A，利潤率的改善預計將由我們商店營運模式的變化帶來的勞動生產率的提高以及更好的零件可用性支持的更高的固定成本槓桿推動。

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

我們仍致力於在規劃期內保持充足的流動性。

Our balance sheet is strong with approximately $500 million of cash available at the end of Q3.

我們的資產負債表強勁，第三季末可用現金約 5 億美元。

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 related costs associated with the execution of store closures, we are simultaneously evaluating options to unlock value from the closed locations and minimize the cash flow impact.

雖然我們預計會產生與執行商店關閉相關的某些現金相關成本，但我們同時正在評估從關閉的地點釋放價值並盡量減少現金流影響的選項。

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

我剛才描述的這個立場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 will 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 funded through operating cash flow.

到 2025 年，我們預計將花費至少 3 億美元的資本支出，與我們透過營運現金流資助的策略性舉措相關。

As we execute our turnaround and improve the performance of the business, improving our leverage profile remains a key priority.

當我們實施扭虧為盈並提高業務績效時，改善槓桿狀況仍然是關鍵優先事項。

Our objective is to reduce RemainCo leverage ratio from approximately 4 times 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 4 倍降低至約 2.5 倍。

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

我們希望透過在到期日或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 closed stores over the next 12 to 18 months, partially offset by leases for new stores through 2027.

初步預計，在未來 12 至 18 個月內，我們將退出與已關閉商店相關的約 40% 的租賃，並透過 2027 年新商店的租賃來部分抵銷。

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

我想指出的是，無論我們減少這些義務的努力結果如何，我們都預期會達到目標槓桿率。

Regarding supply chain financing, we currently have sufficient and growing capacity on the facility.

在供應鏈融資方面，我們目前的設施能力充足且持續成長。

And our current three-year planning horizon assumes we maintain approximately $2.8 billion of RemainCo payables under financing agreements with our banks.

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維持約 28 億美元的 RemainCo 應付帳款。

Separately as it pertains to inventory, our payables coverage ratio has improved by approximately 300 basis points following the sale of Worldpac.

另外，就庫存而言，在出售 Worldpac 後，我們的應付帳款覆蓋率提高了約 300 個基點。

Our three-year financial plan assumes we maintain our current payables ratio as we execute our merchandizing strategies and enhance vendor relationships.

我們的三年財務計畫假設我們在執行銷售策略和加強供應商關係時維持目前的應付帳款比率。

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 incremental CapEx to support our ongoing business needs, accelerate new store growth, and invest in strategic initiatives to stabilize and grow the business.

我們正在分配增量資本支出來支持我們持續的業務需求，加速新店成長，並投資於策略性舉措以穩定和發展業務。

We will continue to spend to the build out of our multi Echelon supply chain and other merchandizing projects to improve inventory availability.

我們將繼續投資建造多梯隊供應鏈和其他商品銷售項目，以提高庫存可用性。

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

此外，一部分資本將用於儲存和技術債。

These expenditures will be targeted primarily on the key maintenance items such as [age roofing], HVAC, or technology systems.

這些支出將主要用於關鍵維護項目，例如[舊屋頂]、暖通空調或技術系統。

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 KPIs.

我們專注於執行，並讓整個組織對實現關鍵績效指標 (KPI) 的進展負責。

As we solidify our foundation and work to achieve these targets in 2027, we believe we have further upside potential to narrow our gap to the industry and to exceed 7% adjusted operating margin beyond 2027.

隨著我們鞏固基礎並努力在 2027 年實現這些目標，我們相信我們還有進一步的上升潛力，可以縮小與行業的差距，並在 2027 年後調整後營業利潤率超過 7%。

Moving to an update on our full-year 2024 guidance before moving to Q&A.

在進行問答之前，先介紹我們 2024 年全年指引的最新情況。

Our guidance is presented on an adjusted non-GAAP basis for the Advance RemainCo.

我們的指引是根據調整後的非公認會計原則 (non-GAAP) 基礎上提出的。

Net sales, we now expect net sales for the full year to come in approximately $9 billion, including comparable store sales of approximately negative 1%.

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

Quarter to date, our trends are tracking about in line with Q3 and our guidance assumes we continue at the same trend to the end of the quarter.

本季迄今為止，我們的趨勢與第三季度基本一致，我們的指導假設我們將繼續保持相同的趨勢到本季末。

The impact of store closures is not expected to be meaningful to fourth quarter comp trends due to timing of closures.

由於關閉時間的原因，預計關閉商店的影響對第四季度的比較趨勢沒有意義。

We expect adjusted operating income margin for the full year to be between positive 25 basis points and 75 basis points.

我們預計全年調整後營業利益率將介於正 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 $0.60 to flat.

目前預計全年調整後攤薄每股收益將虧損 0.60 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 is now expected between $175 million to $225 million as we continue to undertake projects to enhance our IT, stores, and supply chain infrastructure.

隨著我們繼續開展增強 IT、商店和供應鏈基礎設施的項目，我們的資本支出指導目前預計在 1.75 億至 2.25 億美元之間。

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

這是我們第一次提供留歐指導。

Let me share my thoughts on the fourth quarter.

我來談談我對第四季的看法。

Based on our guidance, fourth-quarter adjusted operating margin is expected to be negative.

根據我們的指引，第四季調整後營業利潤率預計為負。

We expect gross margin to be up year over year although due to the lower sales expenses, Q4 is traditionally the lowest gross margin rate of the year and I would expect that to continue on SG&A we expect dollars to be sequentially lower although higher compared to last year through the lapping of certain favorable annual troops which is expected to drive [de-leverage] on lower sales.

我們預計毛利率將同比上升，儘管由於銷售費用較低，第四季度傳統上是今年毛利率最低的，我預計銷售及管理費用將繼續下降，我們預計美元將環比下降，儘管與去年相比較高透過某些有利的年度部隊的磨合，預計將在銷售額下降的情況下推動[去槓桿化]。

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 name along with an extensive network of stores to capitalize on strong industry drivers for our growth.

我們擁有豐富的傳統、值得信賴的品牌名稱以及廣泛的商店網絡，可以利用強大的行業驅動力來推動我們的成長。

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

有了那個

(technical difficulty)

（技術難度）

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 clearer view of our path forward and our opportunities for growth.

我們希望今天的演講能讓我們更清楚地了解我們的前進道路和成長機會。

Each leader in our organization is committed to delivering against our three-year plan.

我們組織中的每位領導者都致力於實現我們的三年計畫。

I would like to thank our team members once again for their continued dedication to serving our customers while we take the required actions 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採取必要行動推動公司改進和長期發展的同時，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？

(Operator Instructions)

（操作員說明）

Michael Lasser, UBS.

麥可拉瑟，瑞銀集團。

It's on the long-term outlook.

這是長遠的展望。

How much reinvestment have you assumed that you would need to make from the cost savings into the business over the next couple of years?

您認為未來幾年您需要從節省的成本中對業務進行多少再投資？

And as part of that, have you assumed that you will be able to maintain your vendor financing program as it currently stands moving forward?

作為其中的一部分，您是否認為您將能夠維持目前的供應商融資計劃？

Thank you very much.

非常感謝。

Unidentified Company Representative

身份不明的公司代表

On the supply chain finance piece, yeah, we are factoring in.

在供應鏈金融方面，是的，我們正在考慮這個因素。

We're maintaining the ability of the [$2.8 billion] is roughly where we're targeting that might fluctuate.

我們維持 [28 億美元] 的能力大致是我們的目標，但可能會出現波動。

But we're targeting the $2.8 billion, targeting that we will have the capacity to support the $2.8 billion going forward.

但我們的目標是 28 億美元，目標是我們有能力支持未來的 28 億美元。

From a reinvestment standpoint, we feel like we're at a good SG&A level.

從再投資的角度來看，我們感覺我們處於良好的銷售、管理及行政費用水準。

We'll have obviously some inflation going forward.

顯然，未來將會出現一些通貨膨脹。

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

但我認為在我們的指南中，我們考慮了增量資本支出，這將成為投資的一部分。

So moving up to $300 million on average per year that might fluctuate a little bit depending on the timing of some of those initiatives.

因此，平均每年高達 3 億美元，具體金額可能會略有波動，具體取決於其中一些措施的實施時間。

But that's the reinvestment, we're making more on the CapEx side.

但這就是再投資，我們在資本支出方面賺得更多。

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

在節省成本方面，我們將大量成本節省帶到了底線。

And that's somewhat offset by inflation going forward, but factored into our guide.

這在一定程度上被未來的通貨膨脹所抵消，但已納入我們的指南中。

My question is philosophically is the plan to say, hey Advance Auto can compete effectively in the marketplace as a leaner, more nimble, more regional type of organization.

我的問題是從哲學角度來說，計劃說，嘿 Advance Auto 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 that there are strong regional players in the market already.

市場上已經存在強大的區域參與者，這一事實有證據支持這一點。

Because closing stores getting out of market would suggest that the store growth, the ability to be a national retailer is going to be limited over time.

因為關閉商店退出市場意味著商店的成長，隨著時間的推移，成為全國性零售商的能力將受到限制。

So if you could just give us a sense of what the long-term vision on how Advance is expecting to

因此，您能否讓我們了解 Advance 的長期願景是什麼？

(technical difficulty)--

（技術難度）——

Hey, Michael, it's Shane.

嘿，邁克爾，我是謝恩。

Good morning.

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.

我們只專注於我們公司的內部，在我們有密度的地方，我們表現出色，我們在許多市場上都看到了這一點。

And if you look at how we'll be post-store closing will be number one or number two in terms of density in 75% of our markets.

如果你看看我們在關店後將如何在 75% 的市場中實現密度第一或第二的目標。

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

因此，當你對我們的商店業績進行鐘形曲線分析時，我們會發現在很多地方我們不僅可以競爭，還可以蓬勃發展，甚至可以獲勝。

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

因此，我們的想法是集中精力，重新獲勝，提供我們今天描述的經濟數據。

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

在此過程中，我們恢復成長，其中包括開設新店。

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

所以我不會從國家或非國家的角度來考慮。

We think about it in terms of where we can win, where we can grow

我們思考我們可以在哪裡獲勝、在哪裡可以成長

(technical difficulty).

（技術難度）。

Chris Horvers, JP Morgan.

克里斯霍弗斯，摩根大通。

So my first question is understanding that you do have less sales in the fourth quarter and you're going to de-leverage.

因此，我的第一個問題是了解第四季度的銷售額確實有所減少，並且您將去槓桿化。

But it seems like you're implying a down 5% operating margin.

但您似乎是在暗示營業利潤率下降 5%。

So I guess the question is, are there one-time costs that are included in 4Q non-GAAP that aren't per se recurring or continuing?

所以我想問題是，第四季非公認會計原則中包含的一次性成本是否本身不會重複發生或持續？

So related to that on slide 7, it seems like you're saying that the 0.8% adjusted operating margin in 3Q included like 125 basis points of what things that won't necessarily repeat next year.

因此，與投影片 7 中的內容相關，您似乎在說，第三季調整後的 0.8% 的營業利潤率包括大約 125 個基點，而這些情況明年不一定會重複。

Yeah, thanks, Chris.

是的，謝謝，克里斯。

Yeah, you're doing the math right.

是的，你計算得對。

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

第四季會有點接近你所說的。

It's more of -- we're cycling a couple of things that happened last year.

更多的是——我們正在回顧去年發生的幾件事。

We're factoring in some disruption given the turnaround right now.

鑑於目前的情況好轉，我們正在考慮一些幹擾因素。

You'll see some disruption sales and our gross profit rate in Q4 is traditionally the lowest gross profit rate in the year.

你會看到一些銷售中斷，我們第四季的毛利率傳統上是一年中最低的毛利率。

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

有幾件事會影響毛利率，但沒有什麼是——我們正在調整策略舉措，所以這不在指南之內。

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

但我們只考慮了第四季度的一點風險調整，相對於我們在這次扭虧為盈和商店關閉中的優先順序。

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

但傳統上第四季的毛利其實是較低的，這也是其推動因素。

Slide 7, that 3Q had 125 basis points of stuff that you're putting in the adjusted.

第 7 張投影片，第三季有 125 個基點，您要對其進行調整。

But you're saying won't necessarily recur next year.

但你說明年不一定會再發生。

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

當您考慮橋樑「25」時，您正在對營業利潤率擴張中點到中點的 200 個基點進行建模。

How much of that expansion would you say is discrete lapse like one-time cost, one-time impacts whether that gets you to that level of expansion year over year.

你會說，這種擴張有多少是離散的，例如一次性成本，一次性影響是否能讓你逐年達到擴張水準。

Yeah, the 125 basis points is just those things that pop up during the year like the hurricane, the CrowdStrike impact on our system.

是的，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。

There are other items in there, so they're atypical items that aren't necessarily part of the normal on the business.

那裡還有其他項目，因此它們是非典型項目，不一定是正常業務的一部分。

So that's 125 that we're calling out.

我們撥打的是 125。

Not how much

不是多少

(multiple speakers)--

（多位發言者）——

--(multiple speakers)

——（多位發言者）

Yeah.

是的。

And then how much is there -- how much of that 200 next year is execution free, i.e., there were unique cost and unique disruptions this year that maybe put into results -- adjusted results.

然後有多少——明年這 200 個中有多少是免費執行的，也就是說，今年有獨特的成本和獨特的中斷，可能會轉化為結果——調整後的結果。

But you have a clear line of site of getting those costs back next year.

但你有明確的路線可以在明年收回這些成本。

Yeah, the 200 going to next year is just you've got the store closures that are coming in.

是的，明年的 200 家商店即將關閉。

That's the easy one.

這是最簡單的一個。

We're executing those.

我們正在執行這些。

Those are popping in.

那些正在突然出現。

Margin improvements that we're seeing as we partner with our vendors.

當我們與供應商合作時，我們看到利潤率有所提高。

The 200 is clear line of sight on our business actions and objectives, that's really what's driving the increase next year.

200 強是我們業務行動和目標的清晰視線，這才是明年成長的真正推動力。

Understood.

明白了。

Thanks very much.

非常感謝。

Scot Ciccarelli, Truist Securities.

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

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？

Meaning, how much of that improvement is supposed to come from supply chain?

意思是，這種改進有多少應該來自供應鏈？

How much from better promotional management?

更好的促銷管理有多少？

Just so we can understand what's really going to drive that improvement in COGS.

這樣我們就可以了解真正推動銷貨成本改善的因素。

Thanks.

謝謝。

Yeah, Scott.

是的，斯科特。

Thanks for the question.

謝謝你的提問。

I'll give you some general themes.

我會給你一些一般性的主題。

We won't -- we're not going to give specific ones, but we are excited about where we're going with the COGS improvement.

我們不會——我們不會給出具體的信息，但我們對銷貨成本的改善感到興奮。

It's broken down between both improved costs, first cost as we partner with our vendors.

它分為改善成本和我們與供應商合作時的第一成本。

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 to improve the effectiveness of our promotional cadence, the scale, the size of those, the effectiveness of them, and then our pricing and where we're pricing and it's mainly to our Pros and making sure that we've got the right pricing structure for our Pros.

我們知道我們還有很多工作要做，以提高促銷節奏的有效性、促銷的規模、促銷的規模、促銷的有效性，然後是我們的定價以及我們的定價地點，這主要是針對我們的專業人士，並確保我們為我們的專業人士提供了正確的定價結構。

Supply chain is a portion of that.

供應鏈是其中的一部分。

The supply chain as we can continue to consolidate our DC in our market hubs, that is a longer tail than say, probably the merchandizing piece of this.

供應鏈，因為我們可以繼續在我們的市場中心整合我們的配送中心，這比說的更長，可能是其中的商品化部分。

So if you're looking at the COGS improvement, probably a larger portion of that COGS improvement is coming from the merchandizing excellence portion.

因此，如果您專注於銷貨成本的改善，那麼銷貨成本的改善可能很大一部分來自於卓越的銷售部分。

How would you guys rate or rank your confidence and the ability to drive that gross margin improvement?

你們如何評價或排名你的信心和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.

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 the gross margin improvement going forward.

因此，我只是想再次更了解未來毛利率改善的信心水準。

Hey, Scott, it's Shane.

嘿，史考特，我是謝恩。

Great question.

很好的問題。

Thanks for asking.

謝謝你的詢問。

I'm very confident and the reason starts with leadership.

我非常有信心，原因始於領導力。

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 Starnes has joined us from Target.

布魯斯·斯塔恩斯 (Bruce Starnes) 從塔吉特 (Target) 加盟我們。

He's started to build an outstanding team.

他已經開始組建一支優秀的團隊。

And I saw this is 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.

我看到這一點是因為我們在與供應商舉行的最高會議上，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。

Also, from vendors we haven't worked with who now said, hey, how do we think about working with Advance?

另外，一些尚未與我們合作的供應商現在表示，嘿，我們如何考慮與 Advance 合作？

So he's digging in on a number of retail fundamentals PLR process being one, availability being another.

因此，他正在深入研究一些零售基礎知識，PLR 流程是其中之一，可用性是另一項。

And so as he goes through those what I would consider tried and true merchandizing activities that his previous company would be known for

因此，當他經歷那些我認為是經過嘗試的、真正的推銷活動時，他以前的公司將因這些活動而聞名

(technical difficulty)--

（技術難度）——

Simeon Gutman, Morgan Stanley.

西蒙古特曼，摩根士丹利。

Hi, this is [Zach] on for Simeon.

大家好，我是西蒙的[扎克]。

Thanks for taking our questions.

感謝您回答我們的問題。

Shane, realized the company is completely different than ['25] and even 10 years ago.

Shane 意識到公司與 ['25] 甚至 10 年前完全不同。

As you know, there have always been margin goals much higher in the future and margins have only contracted over time.

如您所知，未來的利潤目標總是更高，而利潤只會隨著時間的推移而收縮。

So why is this time different?

那為什麼這次會不同呢？

And touching upon the earlier question what gives you confidence on the target you set out?

談到之前的問題，是什麼讓您對設定的目標充滿信心？

Yeah.

是的。

Hey, thanks, Zach.

嘿，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.

我無法用不同的決定和承諾來談論過去。

For this management team, we want to improve our say-do ratio.

對於這個管理團隊，我們希望提高我們的說做比率。

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 of the tape.

我從磁帶尾部的角度來思考這一點。

So been here a year and so play -- let's just review briefly what's transpired.

已經在這裡一年了，所以玩吧——讓我們簡單回顧一下所發生的事情。

Came on board, depicted that we would do decisive actions.

上船後，表明我們將採取果斷行動。

Started a strategic review.

開始戰略審查。

Said, hey, we'll investigate the sale of Worldpac.

說，嘿，我們將調查 Worldpac 的出售情況。

We sold Worldpac.

我們出售了 Worldpac。

We picked up $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 Canada.

我們喜歡加拿大。

We're keeping Canada.

我們保留加拿大。

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 front line.

我們看著我們的前線。

Said, what are the roles?

你說，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, not easy.

現在，當我們繼續前進時，我們看著商店基地，這並不容易。

We went across every store in the network across -- we depicted three criteria.

我們走訪了網路中的每家商店——我們描述了三個標準。

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.

我們做出了一個極其艱難的決定，關閉 500 家公司商店和 200 家獨立商店。

We're willing to do the things that we need to do to be successful.

我們願意做我們需要做的事情才能成功。

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

順便說一句，如果您要成為汽車零件零售商，專注於混合包裝盒，那麼我們在每個方面的鏡頭中都需要做些什麼。

What are the activities?

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功是什麼？

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。

And so that's what gives me confidence.

這就是給我信心的原因。

I'll also depict that we have been appropriately reflective and slow before we put out the 7%.

我還將描述，在我們推出 7% 之前，我們已經進行了適當的反思和緩慢的行動。

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

因此，瑞安和我花了很多時間思考什麼時候是進入市場的正確時機，並說，我們相信，我們有信念，我們會實現這一目標。

And so we put out the 7% in 2027.

所以我們在 2027 年推出了 7%。

People have been asking.

人們一直在問。

People asked last quarter, the quarter before.

人們在上個季度、前一個季度問過。

Hey, how come you guys won't give us more definitive numbers.

嘿，你們為什麼不給我們更明確的數字。

We want today to be about really showing you, showing the street, showing everyone.

我們今天想要真正向您展示，向街道展示，向所有人展示。

This is who we are.

這就是我們。

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

這就是我們要做的事情，這就是我們要去的地方的結果。

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 industry weakness or share loss and or maybe a little bit of both and can you help us think about the path back to positive territory moving forward?

因此，隨著業務下降到低個位數，這個行業的弱點或份額損失，或者可能兩者兼而有之，你能幫助我們思考回到積極領域的道路前進嗎？

Yeah, it's so the weakness that we've seen recently is a little bit on the DIY side.

是的，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。

What we are excited about is on a two-year basis, our Pro comp trend actually accelerated in Q3.

令我們興奮的是，以兩年為基礎，我們的專業競爭趨勢實際上在第三季加速了。

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。

This industry is pretty resilient in these times.

這個行業在這個時代非常有彈性。

I mean, at some point, you still have to start -- stop your car.

我的意思是，在某些時候，你仍然必須啟動——停下你的車。

And so the push off of discretionary purchases, less of an impact here.

因此，推遲可自由支配的購買，這裡的影響較小。

It's more short term in nature.

它本質上是更短期的。

So we've got a good strong industry backdrop, but if there's a little bit of pressure more recently on the consumer and that's showing up in the DIY comps.

因此，我們擁有強大的行業背景，但如果最近消費者面臨一點壓力，這就會在 DIY 比較中反映出來。

Seth Basham, Wedbush.

塞思‧巴沙姆，韋德布希。

First, just some clarifying questions regarding the guidance for 2025.

首先，澄清一些有關 2025 年指導的問題。

First on just the EPS basis.

首先僅以每股收益為基礎。

What are you aiming for there to help us get a sense of the below the operating margin line moving pieces?

您的目標是什麼，以幫助我們了解營業利潤線以下的變動情況？

Good question.

好問題。

We are going to come back in Q4.

我們將在第四季回來。

We'll probably give more details on EPS and we'll refine the guidance for '25.

我們可能會提供有關 EPS 的更多詳細信息，並且我們將完善 '25 的指導。

So we give the operating income 2% to 3%.

所以我們給營業收入2%到3%。

I would expect low single-digit share dilution.

我預計股票稀釋度會低個位數。

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

因此，如果您正在做數學計算，只需考慮一下明年的低個位數股票稀釋，您應該能夠在此基礎上獲得一個不錯的每股收益範圍。

Okay.

好的。

And relatedly regarding free cash flow in 2025 inclusive of some of these restructuring efforts.

與此相關的是 2025 年的自由現金流，包括其中一些重組工作。

What are you aiming for in that area?

您在該領域的目標是什麼？

(technical difficulty) Okay.

（技術難度）好的。

And then just lastly bigger picture question, there's a lot of change that you guys have in your plan, managing that change and executing on is critical factor.

最後一個更大的問題是，你們的計劃中有很多變化，管理這些變化並執行是關鍵因素。

As you mentioned, Shane, you have accountability targets, you have teams set up.

正如你所提到的，肖恩，你有責任目標，你已經建立了一個團隊。

Where if you go wrong, do you think are the biggest risks to execution?

如果你出錯了，你認為執行上最大的風險是什麼？

Yeah.

是的。

So any time you're executing broad based plans, you need to make sure you're appropriately comprehensive, you need to make sure you're communicating thoroughly, need to make sure that you've resourced it correctly.

因此，每當你執行基礎廣泛的計劃時，你都需要確保你的計劃足夠全面，你需要確保你進行了徹底的溝通，需要確保你已經正確地配置了資源。

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

因此，我們知道，經營現有業務並同時執行此操作確實會帶來一定程度的風險，我們需要針對該風險進行執行。

We brought in support.

我們帶來了支持。

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

阿爾瓦雷斯和馬塞爾正在與該公司合作，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 leases.

我們在與房東就不同租約進行談判時獲得了額外的支持。

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 relocate it.

我們正在提供支持，因為這關係到我們如何考慮轉移庫存，即我們是否就地出售，是否決定重新安置。

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

所以這是它的一個關鍵方面，但我們對我們做到這一點的能力充滿信心，這與我來到這裡以來我們經營公司的方式是一致的，我們將經歷它並繼續專注於基礎知識。

The remaining company in terms of where we're located and how we'll operate, you'll see an ability for us to execute those three pillars.

剩下的公司就我們的所在地和運作方式而言，您將看到我們執行這三個支柱的能力。

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

因此，就商店營運而言，就卓越的商品銷售而言，就供應鏈整合的持續性而言。

Steven Zaccone, Citigroup.

史蒂文‧扎科內，花旗集團。

Thanks for all the detail today and I appreciate you taking my question.

感謝您今天提供的所有詳細信息，也感謝您提出我的問題。

I wanted to shift back to the top-line discussion.

我想回到最重要的討論。

Could you just help us understand 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 like the hurricane impact and the CrowdStrike?

這是否排除了颶風影響和 CrowdStrike 等影響？

And then, if we look forward, right, you've given this preliminary outlook for '25 and then what you think 2027 will be.

然後，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 年會是什麼樣子。

How do you think about the market growth rate for next year?

您如何看待明年的市場成長率？

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

然後，也許當您考慮自己佔據市場份額的能力時，更大的機會在哪裡？

Is it on the Pro side or is it on this DIY getting better?

是在 Pro 方面還是在 DIY 方面變得更好？

Yeah.

是的。

So I'll take the first part of that -- the first part.

所以我將討論第一部分——第一部分。

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

(technical difficulty)--

（技術難度）——

Yeah, I'll start, let me talk about the market for next year in terms of how we return to positive comps.

是的，我首先要談談明年的市場，以及我們如何恢復積極的競爭。

I think will have progress in both arenas.

我認為這兩個領域都會取得進展。

On the DIY side, Ryan touched on it.

在 DIY 方面，Ryan 談到了這一點。

The consumers definitely had a bit of a hangover coming out of COVID, I think election jitters.

我認為消費者肯定對新冠疫情感到有些後遺症，因為選舉產生了緊張情緒。

So in the low cohort familial spend category, so [50K, 75K] family groups that group has been deferring wherever possible.

因此，在低群體家庭支出類別中，[50K, 75K] 家庭群體一直在盡可能延後。

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 that spend, but we're also very excited about what we're doing in the Pro arena.

因此，我們將參與這筆支出，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 rejuvenated compensation plans.

因此，在我們的外部銷售團隊成員之間，我們重新制定了薪酬計劃。

We've also created focus in terms of which accounts they call on.

我們還重點關注了他們調用的帳戶。

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 small shops, two-bay, three-bay, four-bay shops that we're catering are offering to better penetrate, so that activity is underway.

這些是小商店，兩開間、三開間、四開間的商店，我們正在提供餐飲服務，以便更好地滲透，以便活動正在進行中。

Also with our CPPs, where we looked at what their compensation plans look like.

另外，對於我們的 CPP，我們研究了他們的薪酬計劃。

These are our commercial parts Pros inside of our stores.

這些是我們商店內的商業零件專業人士。

And which accounts that they're calling on.

以及他們正在調用哪些帳戶。

So there's a lot of effort on the Pro side.

所以在Pro方面下了很多功夫。

And that's augmented by two other things, parts availability and being able to get parts in market faster.

另外還有兩件事增強了這一點：零件的可用性以及能夠更快地將零件推向市場。

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 data-oriented way of which stores get how many 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確定哪些商店可以獲得多少車輛，以確保我們與成長保持一致。

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

這些就是我們在 Pro 中尋求成長的一些維度。

Go back to the free cash flow discussion.

回到自由現金流的討論。

Just to understand that correctly.

只是為了正確理解這一點。

Did you provide preliminary outlook for free cash flow in '25?

您是否提供了 25 年自由現金流的初步展望？

And maybe if the top-line plan or the margin execution comes a little bit weaker than expected next year, what could be another strategy here to protect profitability and protect the cash flow?

也許如果明年的營收計畫或利潤執行比預期稍弱，那麼保護獲利能力和現金流的另一種策略是什麼？

Yeah, so we didn't provide a free cash flow forecast.

是的，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 next year.

我們剛剛說過，我們預計明年將用營運現金流為資本支出提供資金。

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

因此，營運現金流應該能夠為我們未來的投資提供資金。

And do you mind repeating the second question there?

您介意重複第二個問題嗎？

You had a follow up on that one.

你對此進行了跟進。

Given the balance sheet here where you still have the debt, right?

考慮到這裡的資產負債表，你仍然有債務，對嗎？

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, right?

如果營收低於預期，對吧？

If some of this cost execution does not plan out as expected, can you just help us think through some additional levers to protect cash flow.

如果其中一些成本執行沒有按預期計劃，您能否幫助我們考慮一些額外的槓桿來保護現金流。

Yeah, have levers within the organization that will pull on.

是的，組織內有可以發揮作用的槓桿。

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

當然，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 with the numbers we're putting out there.

如果這還有其他缺點，我們覺得我們公佈的數字是這樣的。

If you think about the store closures being 70, 90 basis points going into next year, the work we've already done and started on merchandise and excellence programs, we feel pretty confident in our ability to achieve the 2% to 3% next year on a very modest top line 50 to 150 basis points when markets going to be low-single digits.

如果你考慮到明年商店的關閉量會減少 70、90 個基點，我們已經完成並開始實施商品和卓越計劃，那麼我們對明年實現 2% 到 3% 的目標非常有信心當市場處於低個位數水平時，收入將非常溫和地上升50 至150 個基點。

So yes, there's risk, there's leverage we can't pull along the way.

所以，是的，存在風險，存在著我們無法一路拉動的槓桿。

But from a liquidity standpoint, we feel like our balance sheet is really strong.

但從流動性的角度來看，我們覺得我們的資產負債表非常強勁。

I wouldn't say that we're not paying down debt.

我不會說我們沒有償還債務。

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

在我們工作和執行這一周轉計劃時，我們將計劃償還到期日或到期前的債務。

Our goal is to get the 2.5. So some of that cash eventually will be used to pay down debt along the way.

我們的目標是達到 2.5。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.

就業務管理而言，現在追蹤的與業務績效相關的相關指標越來越少。

The review cycle with the leaders around those metrics to create accountability, to create ownership.

領導者圍繞這些指標進行審查週期，以建立問責制，建立所有權。

So the rhythm of how we're running the company is different and directly related to the things that contribute to the performance numbers we're putting out.

因此，我們經營公司的節奏是不同的，並且與我們公佈的業績數據的貢獻直接相關。

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

因此，尋求這種審查的幫助，我不只是從保護負面影響的角度考慮它，而是從創造條件來兌現我們所說的那樣的角度考慮。

Seth Sigman Barclays.

塞斯·西格曼·巴克萊銀行。

I wanted to focus on store closings.

我想把重點放在商店關門上。

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 maybe also just the decision to exit certain states.

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地的不同之處，也許只是退出某些州的決定。

Yeah.

是的。

Thank you, Seth.

謝謝你，賽斯。

I'll start with that question.

我將從這個問題開始。

Ryan can chime in.

瑞安可以插話。

We had a series of criteria that we put against all of the stores in the network.

我們針對網路中的所有商店制定了一系列標準。

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

順便說一句，我們在地理上不知道哪些州開放，哪些州封閉。

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.

這正是分析的結果。

Some of those metrics store profitability.

其中一些指標存儲盈利能力。

So if the store is fundamentally unprofitable, that's a key metric for us, we'd look at say, what is the horizon to which we think we can make it profitable?

因此，如果商店基本上無利可圖，這對我們來說是一個關鍵指標，我們會考慮，我們認為可以使其盈利的範圍是多少？

Or how long has it been unprofitable?

或者說已經有多久沒有獲利了？

Has there been a managerial component?

是否有管理成分？

And so that was one dimension.

這就是一個維度。

Another one is the DC productivity.

另一個是 DC 生產力。

And this did influence how we thought about the Western markets.

這確實影響了我們對西方市場的看法。

So when you have a DC infrastructure in place to support stores, typically there's a number of stores that creates the scale for DC operations and we don't have the density of stores to support that, it ends up impacting the profitability.

因此，當您擁有支援商店的配送中心基礎設施時，通常會有許多商店為配送中心的營運創造規模，而我們沒有足夠的商店密度來支持這一點，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 need them to run.

我們在西方市場發現，我們需要達到 DC 業務規模才能在我們需要的地方運作。

We'd have to infill over a period of years and put a significant amount of CapEx to then get to a baseline level of profitability occurring or we didn't think that the use of all of our capital to bring that about and the time horizon to make that happen was a good use of how we're thinking about the future.

我們必須在幾年內進行填充並投入大量資本支出，然後才能達到盈利的基準水平，否則我們認為不會使用我們所有的資本來實現這一目標和時間範圍為了實現這一目標，我們很好地利用了我們對未來的思考方式。

So that's how the Western markets came about.

西方市場就是這樣產生的。

All the metrics we talked about operations.

我們談論的所有指標都是關於營運的。

By the way, lots of other ones.

順便說一句，還有很多其他的。

Physically, where is the store located?

從物理上來說，商店位於哪裡？

Is it in the real estate market?

是在房地產市場嗎？

How much do we pay in rent?

我們支付多少租金？

What's the horizon?

地平線是什麼？

So this was a very thorough review.

所以這是一次非常徹底的審查。

Not taken lightly.

沒有掉以輕心。

Obviously, when you're closing a store, both in terms of the permanence of that activity, in terms of the company's ability to garner future revenues, but also the human side.

顯然，當你關閉一家商店時，無論是從該活動的持久性方面，還是從公司獲得未來收入的能力方面，以及人的方面方面。

And I don't want to lose sight of that.

我不想忽視這一點。

Any time that you're making these moves and team members now don't get to continue the journey with the company, nobody feels good about that.

每當你採取這些措施而團隊成員現在無法繼續與公司合作時，沒有人會對此感到滿意。

Got it.

知道了。

Okay.

好的。

That's all helpful.

這很有幫助。

If you zoom back, you've laid out a plan today that I think is clear for the next few years, but still embeds a lot of improvement ahead from all of these initiatives.

如果你回顧過去，你今天已經制定了一個我認為未來幾年清晰的計劃，但仍然包含了所有這些舉措的大量改進。

We're getting the question.

我們收到問題了。

You're getting the question in a number of ways.

你可以透過多種方式得到這個問題。

What gives you confidence that this is fixable, that it's not structural?

是什麼讓您相信這是可以修復的，而不是結構性的？

Are there specific data points you can share on the early wins?

您可以分享有關早期勝利的具體數據點嗎？

Maybe how different store cohorts are performing.

也許不同的商店群體的表現如何。

You started to roll out some of the hub stores.

您開始推出一些中心商店。

Are there examples there you can give?

您可以舉一些例子嗎？

Or you've had pricing actions?

或是你有過定價行動嗎？

I know there have been a number of early initiatives.

我知道已經有一些早期舉措。

Any specific data points you can share to help instill that confidence.

您可以分享任何具體數據點來幫助灌輸這種信心。

Thanks so much.

非常感謝。

Yeah.

是的。

So you talked about the hub stores.

所以你談到了中心商店。

That's certainly what (technical difficulty) as we look at other key metrics where we do things around our store activities.

當我們考慮圍繞商店活動開展工作的其他關鍵指標時，這肯定是（技術難度）。

And we say, hey, if we move vehicles to stores that have the opportunity for Pro growth, how do they do.

我們說，嘿，如果我們將車輛轉移到有機會實現專業成長的商店，他們會怎麼做。

They get more Pro business.

他們獲得了更多專業業務。

If you look at merchandizing, we say, hey, if we do a better job around parts availability and we pilot that, how did the sales do?

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，並進行試點，那麼銷售情況如何？

We do better in terms of sales.

我們在銷售方面做得更好。

And if you look how we're structuring some of our relationships with our vendors, can we create constructs that deliver better economics.

如果你看看我們如何建構與供應商的一些關係，我們是否可以創造提供更好經濟效益的結構。

And so we're seeing those things.

所以我們看到了這些事情。

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

但我認為，如果你到達 50,000 英尺的高度，更重要的情況是我們計劃在管理層的控制下完成我們的專案。

So these are predominantly cost related actions.

因此，這些主要是與成本相關的行動。

Doesn't mean they're necessarily all easy, but these are management-controlled items that if we can put good plans in place and focus on executing those, the numbers follow.

這並不意味著它們一定都很容易，但這些都是管理層控制的項目，如果我們能夠制定良好的計劃並專注於執行這些計劃，那麼數字就會隨之而來。

We have a streamlined supply chain the numbers follow.

我們擁有精簡的供應鏈，數字如下。

If we have availability consistent with what you see typically, the numbers follow.

如果我們的可用性與您通常看到的一致，則數字如下。

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 control, doesn't require us to take share.

因此，認為這一切在我們的控制之下，並不需要我們分享。

That's what gives me confidence.

這給了我信心。

In particular as I see the plans that are coming from the different leaders as I see the leaders in the respective seats, that's where I feel very good about it.

特別是當我看到來自不同領導人的計劃時，當我看到領導人坐在各自的座位上時，我對此感覺非常好。

Ryan?

瑞安？

The things that we are executing just in the last few weeks, we've seen store availability pop significantly as we started focusing on the right metrics in there.

我們在過去幾週執行的事情中，隨著我們開始關注正確的指標，我們已經看到商店可用性顯著增加。

The warehouse management system now in all of our DC and the lines per hour improving across all of that.

現在我們所有配送中心的倉庫管理系統和每小時生產線都在改善。

These metrics are coming in as we continue to focus on these specific metrics.

當我們繼續關注這些具體指標時，這些指標就會出現。

The pricing actions -- we've solved for half of that pricing actions already in an environment where the DIY consumer is pressured.

定價行為－我們已經解決了 DIY 消費者面臨壓力的環境中一半的定價行為。

And so we're seeing it here.

所以我們在這裡看到了它。

It's starting to come through.

它開始出現了。

It's going to start to realize over the course of the next year.

這將在明年開始實現。

And we will be sharing these key metrics that we talked about and the progress of those every single quarter, so you can get an update on a quarterly basis of these key operational KPIs and we'll share those every quarter.

我們將分享我們討論過的這些關鍵指標以及每季的進展情況，這樣您就可以每季獲得這些關鍵營運 KPI 的更新，我們將每季分享這些指標。

So you can get a feel for how it's going.

這樣您就可以了解事情的進展。

We understand.

我們明白。

Listen, (technical difficulty) we've built a track record of the financial things hitting yet.

聽著，（技術難度）我們已經建立了迄今為止發生的金融事件的追蹤記錄。

But we are these decisive actions we're taking; you're seeing that start to happen.

但我們正在採取這些果斷行動；你會看到這種情況開始發生。

We went from 38 DCs down to 28 DCs.

我們從 38 個 DC 減少到 28 個 DC。

We are taking action.

我們正在採取行動。

Some of these KPIs are starting to come through.

其中一些 KPI 已開始實現。

Zach Fadem, Wells Fargo.

札克法德姆，富國銀行。

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 to 2.5% next year and 7% down the road, how would you characterize the '25 and '27 margin expectations if comps were.

因此，當您考慮從今天低於 1% 的營業利潤率到明年 2.5% 以及未來 7% 的路徑時，您會如何描述 25 年和 27 年的利潤率預期（如果比較的話）。

So said differently, how much of the 2025 and 2027 margin expectation are predicated on higher comps?

換句話說，2025 年和 2027 年的利潤率預期有多少是基於較高的比較？

Yeah, it's little because we're not expecting to beat the market -- there are assumptions going forward are mainly on what we control these actions we're taking, not on top line -- significant top line growth.

是的，這很小，因為我們並不期望能夠擊敗市場——未來的假設主要是我們控制我們正在採取的這些行動，而不是營收——顯著的營收成長。

So we are focused on improving time to serve store availability.

因此，我們致力於縮短商店可用性的服務時間。

Our supply chain costs and infrastructure.

我們的供應鏈成本和基礎設施。

All these things are things we control.

所有這些事情都是我們可以控制的。

So the top line is not the driver of this growth and margin expansion.

因此，營收並不是這種成長和利潤擴張的驅動力。

You saw in our walk that sales per store is a big chunk of and that's not the big part of the driver of this solve.

您在我們的行走中看到，每家商店的銷售額佔很大一部分，但這並不是此解決方案的主要驅動因素。

So 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，那麼這對我們來說就是上升的潛力。

Now, if you have flat comps, there's a little bit of pressure from inflation, right?

現在，如果你的薪資持平，那麼就會有一點來自通貨膨脹的壓力，對嗎？

2% to 3% cost inflation, that'll be there.

2%到3%的成本通膨，那是必然的。

But for the most part, we're assuming a 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為低個位數。

Zach, Shane.

札克、謝恩.

Thanks for the question.

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 or above market rates, that's the second bite of the apple for where we can improve the bottom line of the company.

我們可以以市場速度或高於市場速度成長的想法，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 against that plans are in place and in many cases, activities underway that we've got metrics involved with that we have confidence in achieving.

我們今天向您描述的是以成本為導向的事情，管理層有視線執行計劃，並且在許多情況下，正在進行的活動，我們有信心參與其中的指標實現。

When we get those and hit those in stride, that's where I think we have the follow-on discussions

當我們得到這些並大步實現這些目標時，我認為這就是我們進行後續討論的地方

(technical difficulty)--

（技術難度）——

-- on the $1.2 billion in cash from Worldpac, 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 deploy the $1 billion.

——關於 Worldpac 提供的 12 億美元現金，您談到了將其中很大一部分進行再投資，但對於剩餘的 10 億美元左右，您能否向我們介紹一下如何部署這 10 億美元的決策過程。

Maybe share some thoughts around the decision not to pay down debt right away.

也許可以分享一些關於不立即償還債務的決定的想法。

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？

Yeah.

是的。

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

所以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 and ensuring that we have the right strength in our balance sheet as we go through it.

在進行重組時，我們正在管理我們的流動性，並確保我們的資產負債表在重組時擁有適當的實力。

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

我們正在關註今天的市場，並確定什麼時候對我們來說去槓桿化並償還部分債務最具有財務意義。

So we are leaving it open right now to pay down debt at maturity or before maturity.

因此，我們現在就將其開放，以便在到期時或到期前償還債務。

But especially in the early stages of this turnaround.

但尤其是在這轉變的早期階段。

And this restructuring, we're leaving that flexibility out there for us, but that doesn't mean that we won't pay down debt before maturity.

在這次重組中，我們保留了靈活性，但這並不意味著我們不會在到期前償還債務。

Thank you.

謝謝。

Therefore, this does conclude today's Q&A session.

因此，今天的問答環節到此結束。

I'd now like to turn the call back over to Shane O'Kelly for any further or closing remarks.

我現在想將電話轉回給肖恩·奧凱利 (Shane O'Kelly)，以便他作進一步的演講或結束語。

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

今天，我們描述了未來三年的發展方向。

We owe 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 journey as it unfolds.

隨著旅程的展開，我們將向您通報最新情況。

We appreciate your questions.

我們感謝您的提問。

Let's go Advance.

我們去前進吧。

Thank you.

謝謝。

Ladies and gentlemen, this concludes today's call.

女士們、先生們，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。