Bassett Furniture Industries Inc (BSET) 2024 Q2 法說會逐字稿

Hello, and thank you for standing by, and welcome to Bassett Furniture Industries Q2 2024 earnings call. (Operator Instructions)

您好，感謝您的支持，歡迎參加巴塞特家具業 2024 年第二季財報電話會議。 （操作員說明）

I would now like to turn the call over to Mike Daniel, CFO of Bassett Furniture. Sir, you may begin.

我現在想把電話轉給巴塞特家具公司財務長 Mike Daniel。先生，您可以開始了。

Thank you, Twanda, and welcome to Bassett Furniture's earnings call for the second quarter ended June 1, 2024. Joining me today is our Chairman and Chief Executive Officer, Rob Spilman, Junior. We issued our news release yesterday after the market closed and it's available on our website.

謝謝 Twanda，歡迎參加 Bassett Furniture 截至 2024 年 6 月 1 日的第二季財報電話會議。我們昨天在市場收盤後發布了新聞稿，可在我們的網站上查看。

We have updated our reporting format with a fresh look that we believe provides an efficient and easy comparison of important metrics compared to the prior year's second quarter. We're -- offering today's conference call to provide additional information about our business, including the restructuring plan we announced in the release.

我們以全新的面貌更新了報告格式，我們相信與去年第二季相比，可以有效且輕鬆地對重要指標進行比較。我們召開今天的電話會議，提供有關我們業務的更多信息，包括我們在新聞稿中宣布的重組計劃。

We will open the call for a Q&A session after our remarks. In addition, we will post the transcript of the call on our investor site within 48 hours of this call. We believe this process will help enhance how we share our quarterly results with you, and we welcome your feedback.

我們將在發言後召開問答環節。此外，我們將在本次電話會議後 48 小時內將電話會議記錄發佈在我們的投資者網站上。我們相信這項流程將有助於改善我們與您分享季度業績的方式，我們歡迎您提供回饋。

During today's call, certain statements will be made may be considered forward-looking and inherently involve risks and uncertainties that could cause actual results to differ materially from management's present view. These statements are made pursuant to the Safe Harbor provision of the Private Securities Litigation Reform Act of 1995.

在今天的電話會議中，將做出的某些陳述可能被認為是前瞻性的，並且本質上涉及風險和不確定性，可能導致實際結果與管理層目前的觀點有重大差異。這些聲明是根據 1995 年《私人證券訴訟改革法案》的安全港條款作出的。

The company cannot guarantee the accuracy of any forecast or estimate, nor does it undertake any obligation to update such forward-looking statements. For more information, including important cautionary notes, please see the company's annual report on Form 10-K for the fiscal year ended November 25, 2023. Other filings with the SEC describing risks related to our business are available on our corporate website.

該公司不能保證任何預測或估計的準確性，也不承擔更新此類前瞻性陳述的任何義務。如需了解更多信息，包括重要的警示說明，請參閱公司截至2023 年11 月25 日的財年10-K 表格年度報告。的公司網站上找到。

Now I'll turn it over to Rob for comments about our second quarter. Rob?

現在我將把它交給 Rob，徵求對我們第二季的評論。搶？

Thank you, Mike. Good morning, everyone, and thank you for joining us today. The macro-economic pressure currently exerted on the furniture industry continued in the second quarter. Elevated home prices, relatively high mortgage rates and general inflationary tension remain persistent.

謝謝你，麥克。大家早安，感謝您今天加入我們。目前宏觀經濟對家具業帶來的壓力在第二季依然持續。房價上漲、抵押貸款利率相對較高以及普遍的通膨壓力仍然持續存在。

We also know from our own customer data that many are spending more on experiences than they are in their homes, a reversal from what we saw during COVID. Revenue in both our wholesale and retail segments down with greater pressure on our retail business due to the higher level of associated fixed costs.

我們也從自己的客戶資料中得知，許多人在體驗上的花費比在家裡花費的還要多，這與我們在新冠疫情期間看到的情況相反。由於相關固定成本水準較高，我們的批發和零售部門的收入下降，對我們的零售業務造成更大的壓力。

Geographically, sales were stronger in areas where housing is hotter and specifically the Southeast and across to Texas. Excluding the $2.7 million and additional inventory valuation charges that we levy. We were pleased with the strong consolidated gross margin that we recorded in the second quarter coming in at 55.7% compared to last year's 53.6%.

從地理位置來看，房地產較熱的地區的銷售更為強勁，特別是東南部和德克薩斯州。不包括我們徵收的 270 萬美元和額外庫存估價費用。我們對第二季強勁的綜合毛利率感到高興，該毛利率為 55.7%，而去年為 53.6%。

Although inventories have dropped by $28.6 billion or 33% since the end of fiscal 2022. We believe that we can run an even leaner business in the future because certain elements of our assortment are not predictably generating our expected sales -- velocity. Accordingly, this quarter, we elected to record higher reserves on items in anticipation of the sale of more discontinued product, over the course of the next couple of quarters.

儘管自 2022 財年末以來庫存已下降 286 億美元，即 33%。因此，本季度，我們選擇記錄更高的商品儲備，以期在接下來的幾季中銷售更多停產產品。

Our average retail ticket was $3,960 up 9% from last year. Design makeover projects comprise 43% of total retail sales, down slightly from last year. And the current economic environment that I discussed earlier, the big holiday sales events carry even more weight.

我們的平均零售票價為 3,960 美元，比去年增長 9%。設計改造項目佔零售總額的 43%，比去年略有下降。在我之前討論過的當前經濟環境下，大型假日銷售活動的影響力更大。

We are pleased that our three-week Memorial Day promotion slightly exceeded last year's written business. Total additions to our online product catalog, ongoing website optimizations and stronger promotional messaging proved to successively successfully drive consumer engagement during the key holiday period.

我們很高興我們為期三週的陣亡將士紀念日促銷活動略高於去年的書面業務量。事實證明，我們線上產品目錄的全面增加、持續的網站優化和更強大的促銷訊息成功地推動了關鍵假期期間消費者的參與。

Particularly notable over the Memorial Day selling event was the success of the addition of leather to our True Custom Upholstery program. Also, the recently introduced Origin Dining program drove new sales as we reentered the everyday dining category with product designed for kitchen are breakfast areas of the home.

在陣亡將士紀念日銷售活動中特別值得注意的是我們的真正定制內飾計劃中添加皮革的成功。此外，最近推出的 Origin Dining 計劃推動了新的銷售，因為我們重新進入了日常餐飲類別，其產品專為廚房和家庭早餐區設計。

On the wholesale side, we were excited about our showing at the High Point Furniture Show in April for two reasons. First, the showroom debut of our Bassett Design Studio concept, spotlighting, our True Custom Upholstery program. And second, the strategic outreach to the interior design community through our selling space, located in the inner hall area of the international Market Center.

在批發方面，我們對四月高點家具展的展示感到興奮有兩個原因。首先，我們的巴塞特設計工作室概念在展廳首次亮相，重點展示了我們真正的客製化內飾計劃。其次，透過我們位於國際市場中心內廳區域的銷售空間，對室內設計界進行策略性推廣。

We were pleased that we made contact with over 400 interior designers and design firms, and we expect this will yield results well into next year in our news release yesterday, we reported that we are executing a restructuring strategy effective immediately. While we are going through a down period for the industry, we are setting the table for the inevitable rebound in consumer purchases for the homes.

我們很高興與 400 多家室內設計師和設計公司取得了聯繫，我們預計這將在明年取得成果。雖然我們正在經歷行業的低迷期，但我們正在為消費者購買房屋不可避免的反彈做好準備。

This plan is designed to grow our business and to get the most out of our revenue and our working capital to drive profitability. There are five key points to the plan. Number one, drive organic growth through better branded retail locations, omnichannel capabilities and enhanced customization positioning to expand our dedicated distribution footprint.

該計劃旨在發展我們的業務，並充分利用我們的收入和營運資金來提高盈利能力。該計劃有五個要點。第一，透過更好的品牌零售地點、全通路能力和增強的客製化定位來推動有機成長，以擴大我們的專門分銷足跡。

Number two, rationalize US wood manufacturing from two locations into one primary location, supported by a small satellite operation. Number three, optimize inventory and drop unproductive lines. Number four, improve our overall cost structure and invest capital and refurbishment of current corporate retail locations.

第二，在小型衛星業務的支持下，將美國木材製造從兩個地點合理化為一個主要地點。第三，優化庫存並取消非生產線。第四，改善我們的整體成本結構，並對現有的企業零售地點進行投資和翻新。

And number five, close the know-how eCommerce business. We believe that the depth of our custom furniture manufacturing capabilities and our quick response made in America model. Makes us unique in the industry with our network of company-owned and licensed stores and our organization of highly trained design consultants.

第五，關閉專有電子商務業務。我們相信我們的定製家具製造能力的深度和我們快速響應的美國製造模式。我們的自有和授權商店網路以及訓練有素的設計顧問組織使我們在行業中獨一無二。

We are leveraging people and technology for customer acquisition. Although we are exploring three new markets for store locations, we do not plan any further openings this year. Capital investments are targeted for refurbishments of existing corporate locations, our approach is well suited to offer personalized solutions to the carrier design community to better serve their clients.

我們正在利用人員和技術來獲取客戶。儘管我們正在探索三個新市場的門市選址，但我們今年不計劃進一步開設任何門市。資本投資的目標是翻新現有的公司場所，我們的方法非常適合為航母設計界提供個人化的解決方案，以更好地服務他們的客戶。

And we are excited about showcasing our long proven true custom upholstery offering and the new Bassett Design Studio format introduced earlier this year. Many in the industry now refer to offering more than one fabric on a frame as custom upholstery. Our True Custom program truly represents what custom upholstery really as a choice of frame lenght, arm, back styles, cushion options, multiple fabric and leather options, et cetera.

我們很高興展示我們久經考驗的真正客製化內飾產品以及今年早些時候推出的新巴塞特設計工作室格式。許多業內人士現在將在一個框架上提供不止一種織物作為定制內飾。我們的真正定制計劃真正代表了定制內飾的真正含義，即框架長度、扶手、靠背樣式、坐墊選項、多種織物和皮革選項等的選擇。

Designed for better independent furniture retailers that 1,000 square foot concept is off to a great start. Recall in April, in our first quarter report, we had said 17 new locations. And through May, we are up to 30 for a modest investment in fixtures and displays.

專為更好的獨立家具零售商而設計，1,000 平方英尺的概念是一個很好的開始。回想一下，4 月份，我們在第一季報告中提到了 17 個新地點。到 5 月份，我們對固定裝置和顯示器的適度投資最多可達 30 家。

Our customers receive a quick response set up that Bassett is recognized for and they are giving us very positive feedback. They are happy with the margins and the fact that they can carry lower inventory. We are targeting to have 50 dealers in the fold by year end toward our ultimate goal of at least 100 locations, because we believe we can manufacture the same amount of US made wood furniture that we are currently providing more efficiently and cost effectively.

我們的客戶收到巴塞特認可的快速回應設置，他們給了我們非常積極的回饋。他們對利潤率以及庫存較低這一事實感到滿意。我們的目標是到年底擁有 50 個經銷商，以實現至少 100 個經銷商的最終目標，因為我們相信我們可以更有效率、更經濟地生產與目前提供的同等數量的美國製造木製家具。

We are reconfiguring our domestic wood manufacturing footprint. This action is underway and resulted in a charge of $1.4 million for the second quarter. Our goal is to lower our cost structure. We have completed the initial phase of our retail warehouse consolidation that resulted in the closing of three warehouses during the quarter.

我們正在重新配置我們國內的木材製造足跡。該行動正在進行中，並導致第二季產生 140 萬美元的費用。我們的目標是降低成本結構。我們已經完成了零售倉庫整合的初始階段，導致本季關閉了三個倉庫。

We also plan to move out of a major wholesale distribution center at the end of the third quarter that will result in significant savings and could result in an additional charge of up to $1 billion to be taken. And the third quarter. We made the decision to close Noa Home, the mid-priced e-commerce furniture retailer headquartered in Canada with operations in Canada, Singapore US in the UK.

我們還計劃在第三季末搬出一個主要的批發配送中心，這將帶來大量節省，並可能產生高達 10 億美元的額外費用。還有第三季。我們決定關閉 Noa Home，這是一家中等價格的電子商務家具零售商，總部位於加拿大，在加拿大、新加坡、美國和英國開展業務。

Despite providing not consistently with the working capital that was needed starting in 2022, they were not able to generate sales growth. As a result, we did not feel that additional funding of the operation was Bassett's best interests and have made the decision to wind down their operation by the end of the fiscal year.

儘管提供的營運資金與 2022 年開始所需的營運資金不一致，但他們未能實現銷售成長。因此，我們認為為該業務提供額外資金並不是巴塞特的最佳利益，並決定在本財政年度結束時結束其業務。

Our capital allocation strategy remains to focus on investments in our business like those have outlined and to deliver returns to shareholders through dividends and share repurchase.

我們的資本配置策略仍然專注於我們所概述的業務投資，並透過股利和股票回購為股東帶來回報。

We also announced on Tuesday that the Bassett Board of Directors approved an 11% increase in our quarterly dividends. We're proud to increase our dividend, and this is a sign of confidence and our growth potential and cash flow.

我們也在周二宣布巴塞特董事會批准將我們的季度股息增加 11%。我們很自豪能夠增加股息，這是信心以及我們的成長潛力和現金流的標誌。

Our company has a long history, 122 years and counting of weathering economic cycles from housing to inflation. We believe that our restructuring plan backed by our strong financial position and consistent cash dividend will grow revenue, reduce costs and strengthen operating margins.

我們公司歷史悠久，已有 122 年歷史，並經歷過從房地產到通貨膨脹的經濟週期。我們相信，在我們強勁的財務狀況和持續的現金股利的支持下，我們的重組計劃將增加收入、降低成本並提高營業利潤率。

As we implement this plan, we expect that Bassett, of 2024 will be a reset for our business. We are optimistic that consumer demand will improve and that our unique competitive advantages will allow us to increase market share and deliver long-term shareholder returns.

在我們實施這項計劃時，我們預計 2024 年巴塞特將重置我們的業務。我們樂觀地認為消費者需求將會改善，我們獨特的競爭優勢將使我們能夠增加市場份額並實現長期股東回報。

Now I'll turn over things over to Mike for more details on our financials.

現在我將把事情交給麥克，以獲取有關我們財務狀況的更多詳細資訊。

Thanks, Rob. In my commentary, the comparisons I will discuss will be the second quarter of fiscal 2024 compared to the second quarter of fiscal 2023, unless otherwise noted.

謝謝，羅布。在我的評論中，除非另有說明，我將討論 2024 財年第二季與 2023 財年第二季的比較。

Total revenues decreased $17.1 million or 17%. Consolidated gross margins were comparable to the prior year at 52.5% versus 52.6%. Adjusted for the additional and unusual inventory reserves that I'll discuss shortly, consolidated gross margins were 55.7% versus 53.6%. We had a consolidated operating loss of $8.5 million as compared to operating profit of $2.5 million for the second quarter of 2023.

總收入減少 1,710 萬美元，即 17%。綜合毛利率與前一年持平，分別為 52.5% 和 52.6%。根據我稍後討論的額外和異常庫存儲備進行調整後，綜合毛利率分別為 55.7% 和 53.6%。我們的綜合營運虧損為 850 萬美元，而 2023 年第二季的營運利潤為 250 萬美元。

Included in the current quarter were several significant and unusual expenses due to the restructuring plan Rob previously enumerated, including $2.9 million of asset impairment charges associated with retail store tenant improvements and lease right-of-use assets for underperforming stores and warehouse consolidation;

本季度包括由於Rob 先前列舉的重組計劃而產生的幾項重大且不尋常的費用，其中包括與零售店租戶改善以及表現不佳的商店和倉庫整合的租賃使用權資產相關的290 萬美元資產減值費用；

$1.8 million of asset impairment charges and $500,000 of inventory valuation charges associated with the wind down of Nova Home Inc.; $700,000 of asset impairment charges and $700,000 of inventory valuation charges associated with the consolidation of our domestic wood manufacturing operations;

與 Nova Home Inc. 破產相關的 180 萬美元資產減損費用和 50 萬美元庫存評估費用；與我們國內木材製造業務合併相關的 70 萬美元資產減損費用和 70 萬美元庫存評估費用；

and finally, $1.5 million of additional inventory valuation charges in both our wholesale and retail operations in anticipation of the sell-off of more discontinued product over the course of the next couple of quarters. As a result of the restructuring plan and the charges taken, we expect to realize annual cost savings of between $5.5 million and $6.5 million starting with fiscal 2025.

最後，我們的批發和零售業務需要額外支付 150 萬美元的庫存評估費用，因為預計未來幾季將有更多停產產品被拋售。由於重組計劃和所收取的費用，我們預計從 2025 財年開始每年可節省 550 萬至 650 萬美元的成本。

Now, I'll provide information regarding our wholesale operations. Net sales decreased $9.2 million or 15% from the prior-year period, due primarily to a 19% decrease in shipments to the open market, a 16% decrease in shipments to our retail store network, partially offset by a 2% increase in Lane Venture shipments.

現在，我將提供有關我們批發業務的資訊。淨銷售額較上年同期減少920 萬美元，即15%，主要是由於向公開市場的發貨量減少19%，向我們的零售店網絡的發貨量減少16%，部分被Lane 增長2%所抵銷創業出貨。

Gross margins increased 110 basis points over the prior year, primarily due to the expected improvement in the Club Level leather business as this product line is internationally sourced with extended lead times, we receive significant amounts of inventory during the second and third quarters of 2022, just as product demand was weakening due to the market downturn in home furnishings.

毛利率比上年增長 110 個基點，主要是由於俱樂部級皮革業務的預期改善，因為該產品線是國際採購的，交貨時間延長，我們在 2022 年第二和第三季度收到大量庫存，正當家居市場低迷導致產品需求減弱之際。

Also, the ocean freight costs associated with the majority of the product received were at significantly higher costs than we are currently being realized on current product receipts. In addition, we realized a favorable adjustment in our warranty and returns reserve due to improved diligence and efficiency in handling claims.

此外，與收到的大部分產品相關的海運成本遠高於我們目前根據當前產品收據實現的成本。此外，由於處理索賠方面的勤勉程度和效率的提高，我們對保固和退貨準備金進行了有利的調整。

These increases were partially offset by $1.7 million of additional inventory valuation charges previously discussed and decreases in the gross margins for domestic upholstery and wood operations due to deleverage of fixed costs and labor inefficiencies due to the lower sales volumes.

這些增長被先前討論的 170 萬美元額外庫存估價費用以及由於固定成本去槓桿化和銷量下降導致的勞動力效率低下導致國內室內裝飾和木材業務毛利率下降所部分抵消。

SG&A as a percentage of sales increased 170 basis points, primarily due to reduced leverage of fixed costs from decreased sales. Now moving on to our retail store operations. Net sales decreased $10.3 million, or 17% from the prior year period written sales. The value of sales orders taken but not delivered, declined 2.5% from the second quarter of 2023.

SG&A 佔銷售額的百分比增加了 170 個基點，主要是由於銷售額下降導致固定成本槓桿減少。現在繼續我們的零售店營運。淨銷售額減少 1,030 萬美元，比去年同期書面銷售額減少 17%。已接受但未交付的銷售訂單價值較 2023 年第二季下降 2.5%。

Gross margin was flat with the prior period because higher margins on inline goods were offset by lower margins on clearance goods. In addition, we had $500,000 of increased inventory valuation charges previously discussed due to the strategy to be more aggressive in selling clearance goods to better control inventory levels.

毛利率與上期持平，因為內嵌商品的較高利潤被清倉商品的較低利潤所抵銷。此外，由於我們採取了更積極地銷售清倉商品以更好地控制庫存水準的策略，我們之前討論的庫存估價費用增加了 500,000 美元。

SG&A expenses as a percentage of sales increased 570 basis points, again, primarily due to decreased leverage of fixed costs from lower sales volumes. As Rob discussed, we have announced that we will be winding down the operations of Noa Home Inc. As part of that, we recorded a $1.8 million charge to write off the previous recorded intangible asset for the trade name and $500,000 of inventory valuation reserves to prepare for an orderly sell-through of the inventory.

SG&A 費用佔銷售額的百分比再次增加了 570 個基點，這主要是由於銷售下降導致固定成本槓桿率下降。正如Rob 所討論的，我們已經宣布，我們將逐步結束Noa Home Inc 的營運。美元的庫存評估準備金為庫存的有序銷售做好準備。

Finally, let's turn to the balance sheet and capital allocation. We ended the quarter with $60.5 million in cash and short-term investments. We generated $5.8 million of operating cash funding, all of our capital expenditures, dividends and share repurchases for the quarter. Given the current state of business. We have cut back our prior plans for capital expenditures.

最後，我們來看看資產負債表和資本配置。本季結束時，我們擁有 6,050 萬美元的現金和短期投資。我們產生了 580 萬美元的營運現金資金、本季的所有資本支出、股息和股票回購。鑑於目前的業務狀況。我們已經削減了先前的資本支出計劃。

Now we plan to spend an additional $4 million to $5 million over the back half of the year with the majority of that spending on limited retail store remodels. We will also continue to buy back shares opportunistically as the share price warrants. Our financial condition remains solid and provides us with the platform to weather the current economic storm while executing our plans for generating sales growth.

現在，我們計劃在今年下半年額外支出 400 萬至 500 萬美元，其中大部分支出用於有限的零售店改造。我們也將在股價合理的情況下繼續機會主義地回購股票。我們的財務狀況保持穩健，為我們提供了應對當前經濟風暴的平台，同時執行我們的銷售成長計​​劃。

Now, we will open up the line for questions. Twanda, please provide instructions to do so.

現在，我們將開放提問熱線。 Twanda，請提供這樣做的說明。

(Operator Instructions) Anthony Lebiedzinski with Sidoti.

（操作員說明）Anthony Lebiedzinski 和 Sidoti。

Good morning, gentlemen, and thank you for taking the questions. Can you hear me, guys?

早安，先生們，感謝您提出問題。夥計們，你們聽得到我說話嗎？

Yeah, we got you.

是的，我們找到你了。

All right. Thanks for hosting the call and thanks for taking the questions. And first, just a quick comment. Nice job maintaining a strong balance sheet, certainly again, given the state of business nowadays.

好的。感謝您主持此電話會議並感謝您提出問題。首先，簡單評論一下。考慮到當今的商業狀況，保持強勁的資產負債表確實是一件好事。

So, I guess, first, when we look at the components of the restructuring plan, how should we think about the timing and the impact? If you could just kind of parse out the different components of the restructuring plan, what's kind of them low-hanging fruit first and then kind of like maybe walk us through the time line as to the expected benefits.

所以我想，首先，當我們看重組計劃的組成部分時，我們應該如何考慮時間安排和影響？如果你能解析出重組計畫的不同組成部分，先了解哪些是容易達成的成果，然後也許可以帶我們了解預期收益的時間表。

Why don't I take a crack at it, Mike, and you fill in the blanks?

麥克，我為什麼不嘗試一下，然後你來填補空白呢？

Okay.

好的。

Well, as we said, Anthony -- we'll start from the bottom and go up. So, number five was than our Noa Home business. And as Mike just mentioned, we had the intangible goodwill on the balance sheet. And so, we've taken that and can add also some reserve for the remaining inventory that will be winding down over the course of the year.

好吧，正如我們所說，安東尼 - 我們將從底部開始，然後向上。所以，排名第五的是我們的 Noa Home 業務。正如麥克剛才提到的，我們的資產負債表上有無形商譽。因此，我們已經採取了這一點，並且還可以為剩餘庫存添加一些儲備，這些庫存將在今年逐漸減少。

So, we think that all of that's baked into the reported numbers, there will be some severance that takes place over primarily the third quarter. And but we don't really think that's a material number that we had a small amount of employees there. So we've checked with those folks live and not Canada.

因此，我們認為所有這些都已納入報告的數據中，主要是在第三季將發生一些遣散費。但我們並不認為我們在那裡擁有少量員工，這並不是一個重要的數字。因此，我們已經與那些居住在加拿大的人進行了核實。

So we've had to, of course, adhere to the set of laws that govern Canada in regard to us closing the operation. So anyway, for the most part, most of that's done is the point. Moving up to number four, the overall cost structure and invest capital and refurbishment.

因此，我們當然必須遵守加拿大關於關閉業務的一系列法律。所以無論如何，在大多數情況下，大部分工作已經完成就是重點了。上升到第四位，整體成本結構以及投資和翻新。

Of course that again, as Mike mentioned, we have some of this refurbishment is underway. We're actually our Greensboro, North Carolina store is undergoing into refurbishment as we speak. And we plan to take our Concord, North Carolina and Wilmington, Delaware store into that program. As soon as we get the architectural drawings worked out.

當然，正如麥克所提到的，我們正在進行一些翻新工程。事實上，就在我們說話的時候，我們位於北卡羅來納州格林斯博羅的商店正在進行翻新。我們計劃將北卡羅來納州康科德和特拉華州威爾明頓的商店納入該計劃。一旦我們完成了建築圖。

In terms of our overall cost structure, it's just kind of a macro look at what we're doing. There could potentially they some severance costs involved with that, but I don't think it would be again have a material number. So that's kind of been ongoing.

就我們的整體成本結構而言，這只是我們正在做的事情的宏觀觀察。他們可能會因此產生一些遣散費，但我認為不會再有具體的數字。所以一直持續著。

The inventory, again, will be its heavily dispositions over the back half of the year, but we've basically taken that upfront as well. So, there you have it as far as that's concerned. And again, the of the consolidation of the wood operation is also baked into the program, as already announced.

同樣，庫存將是今年下半年的大量配置，但我們基本上也預先考慮了這一點。所以，就這一點而言，你已經了解了。正如已經宣布的那樣，木材業務的整合也被納入該計劃。

I will say, and this could be and number four -- I'm not sure it's number four or number one, but we do have this warehousing operation out in California that we mentioned that we are attempting to sublease and we think that way, if we are successful in that we could have a charge of up to $1 million in the third quarter. We plan to be out of there by the end of the third quarter.

我會說，這可能是第四——我不確定它是第四還是第一，但我們確實在加州有這個倉儲業務，我們提到我們正在嘗試轉租，我們是這樣認為的，如果我們成功的話，第三季的費用可能高達100 萬美元。我們計劃在第三季末之前離開那裡。

We plan to be out of there by the end of third quarter in any event. So that's probably the most significant thing that remains on the restructuring for the rest of the year. So, we plan to consummate all these items by year-end. And, Mike, you can correct me, but there's the severance that I mentioned, which is not really material when this and this looming warehouse charge.

無論如何，我們計劃在第三季末之前退出。因此，這可能是今年剩餘時間重組中最重要的事情。因此，我們計劃在年底前完成所有這些項目。而且，麥克，你可以糾正我，但是我提到了遣散費，當這個和這個迫在眉睫的倉庫收費時，這並不是真正重要的。

Now, am I leaving anything out on that?

現在，我是否遺漏了什麼？

No. And Anthony, I think the goal here is for 2025 to have all the savings baked in. And certainly we'll have some like all the consolidation of the wood furniture plants, we'll still have some cost involved and some inefficiencies in getting that together during the third quarter, but theoretically and hopefully the fourth quarter will be clean with that.

不。其整合在一起，但從理論上講，希望第四季度能夠解決這個問題。

But again, 2025, we do expect to realize $5.5 million to $6.5 million in 2025.

但同樣，到 2025 年，我們預計將在 2025 年實現 550 萬至 650 萬美元的收入。

Sounds good. Okay. And then, if we could just go back to the second quarter, so I guess, if we were to exclude the inventory write-down charge gross margin came in at a very strong, I believe, 55.7%. So what do you attribute that to? And how sustainable do you think that that type of gross margin is?

聽起來不錯。好的。然後，如果我們可以回到第二季度，那麼我想，如果我們排除庫存減記費用，我相信毛利率將達到非常強勁的 55.7%。那麼你將其歸因於什麼呢？您認為這種毛利率的可持續性如何？

On the retail side, we're doing a very good job. I think part of it in that regard. A part of that is pricing that we have worked on for some time. So I would say a more disciplined approach there. Also, Mike mentioned in his remarks about the warranty reserve.

在零售方面，我們做得非常好。我認為在這方面有一部分。其中一部分是我們已經研究了一段時間的定價。所以我想說的是一種更嚴格的方法。此外，麥克在演講中提到了保固儲備金。

Our -- domestic furniture, a lot of which is solid wood. And I would say, we had somewhat of a perception issue sometimes with consumers because they would see a beautiful table inside a store. And then the table that came out didn't exactly match it. And what he would say, well, we can't control how God might the tree.

我們的──家用家具，很多是實木的。我想說，有時我們與消費者之間存在一些認知問題，因為他們會在商店內看到一張漂亮的桌子。然後出來的表並不完全匹配。他會說，好吧，我們無法控制上帝如何影響這棵樹。

And there's nothing wrong with the table. A lot of that was perception, and we've really worked hard on that. It sounds trivial, but it's been kind of a big, big thing for us. And so, our returns and claims have really gone down in the last six months. And this is a company-wide effort, not only from retail but also from the manufacturing guys who have done a great job of that. So, retail is a big piece of it.

而且桌子上沒有任何問題。其中很大一部分是感知，我們在這方面確實付出了巨大的努力。這聽起來微不足道，但對我們來說卻是一件天大的事。因此，我們的退貨和索賠在過去六個月中確實有所下降。這是全公司範圍內的努力，不僅來自零售業，還來自在這方面做得很好的製造人員。因此，零售業是其中的重要組成部分。

Also, we had the Club Level inventory issues that we mentioned last year or in the back half of 2022. And that has righted itself as we moved through that inventory and that that has been a driver on the gross margin. And yes, we do we think that's sustainable we don't know how much higher we can go than where we are because we want to be competitive in the marketplace as well, but we do think it's sustainable.

此外，我們還遇到了去年或 2022 年下半年提到的俱樂部級庫存問題。是的，我們確實認為這是可持續的，我們不知道我們能比現在的水平提高多少，因為我們也希望在市場上具有競爭力，但我們確實認為這是可持續的。

That's great to hear. And then, so obviously, the vast majority of your products are made domestically, but you do import some products like the Club Level. You also import some components. Now we have heard from some companies talking about higher ocean freight costs as some have put in freight charges. Can you comment on that? How should we think about that?

聽到這個消息我很高興。然後，很明顯，你們的絕大多數產品都是在國內製造的，但你們確實進口了一些產品，例如俱樂部層級。您也導入一些元件。現在我們聽到一些公司談論海運費上漲，因為有些公司已經增加了運費。你能對此發表評論嗎？我們該如何思考這個問題？

So we have contracted container rates, of course, like most folks do. And so far with us, it's been a week-to-week kind of things. At some weeks. We'll get our containers. We need at the contracted rates and there's no adverse affect some weeks. We are not and the rates have definitely the spot rates have definitely gone up.

當然，就像大多數人一樣，我們也簽訂了貨櫃費率合約。到目前為止，我們的情況是一周又一周。幾週後。我們會得到我們的容器。我們需要按合約規定的價格進行，並且幾週內不會產生任何不利影響。我們不是，而且利率肯定是即期利率肯定上漲了。

And excuse me, the shipping companies are playing games on all this. Again, of course, there are some macro, some big factors with the Suez Canal, et cetera. We're looking very hard at a surcharge of it we have not enacted one yet, and we're discussing that as we speak. But yes, there the if you can't get at the contract rate, which you can always get, we've seen these rates drip at certain cases.

抱歉，航運公司在這一切上玩弄遊戲。當然，還有一些宏觀的、蘇伊士運河等重大因素。我們正在非常努力地考慮徵收附加費，但我們尚未頒布一項附加費，我們正在討論這個問題。但是，是的，如果您無法獲得合約費率（您總是可以獲得合約費率），我們已經看到這些費率在某些情況下會下降。

So it's kind of day in day out there. A lot of factors behind now that and I think most people on the call probably know about all that, but it's a it is an issue.

所以這就是日復一日的日子。現在背後有很多因素，我認為大多數參加電話會議的人可能都知道這一切，但這是一個問題。

Hey, Anthony, -- let me jump in real quick on what Rob was talking about on the reserves because I know you're asking about modeling questions. I would say for the back half of the year, we might have slightly lower margins because the mix of what we're trying to sell-through.

嘿，安東尼，--讓我快速了解羅佈在預備隊中所說的內容，因為我知道你在問有關建模的問題。我想說，今年下半年，我們的利潤率可能會略低，因為我們試圖銷售的產品組合不同。

The things we took the reserves down. Remember that only brings it up to on zero gross margin, if you will. And so there could be the back half of the year, a little bit less or lower margins. And then on a go forward basis in 2025, again, we should be back to the margins at Rob referring to.

我們把儲備金拿下來的東西。請記住，如果您願意的話，這只會使毛利率為零。因此，今年下半年的利潤率可能會減少或降低。然後在 2025 年，我們應該再次回到 Rob 提到的邊緣。

Thank you for that. And then, my last question before I pass it onto others. So given your focus on True Customer Upholstery, do you plan to change your advertising messaging to better highlight this?

謝謝你。然後是我將其傳遞給其他人之前的最後一個問題。那麼，考慮到您對真正的客戶裝飾的關注，您是否計劃改變您的廣告訊息以更好地強調這一點？

We feature this on the website. We feel like we talk about it a lot, but actually, they turn up true custom and it's new for us. And we did this because frankly, we got tired of seeing all these people talk about custom upholstery when they really in our mind, don't make customer upholstery.

我們在網站上介紹了這一點。我們覺得我們談論了很多，但實際上，他們出現了真正的習慣，這對我們來說是新的。我們這樣做是因為坦白說，我們厭倦了看到所有這些人談論定制內飾，而實際上他們在我們心中，不生產客戶內飾。

They'll put a blue fabric on them on Southwind and red fabric on the seven out of its customer upholstery. Well, in our mind, that's not it when you're doing things by the action, different cushions and bases and backs and not and people really respond to this.

他們將在南風車上鋪上藍色織物，並在七號車上鋪上紅色織物。好吧，在我們看來，當你透過動作來做事時，情況並非如此，不同的坐墊、底座和靠背，而不是人們真正對此做出反應。

This is -- the sales have been good. So I think, yes, we will leverage that thinking into more and overt messaging on what really comprises True Custom Upholstery reverses, they are overworked term customer upholstery that we see in the industry today.

這是——銷售情況很好。所以我認為，是的，我們將利用這種思維更多地公開傳達真正的定制內飾的真正組成部分，它們是我們今天在行業中看到的過度勞累的術語客戶內飾。

Got you. Well, thank you, gentlemen, and best of luck going forward.

明白你了。好的，謝謝你們，先生們，祝你們一切順利。

Thanks, Anthony.

謝謝，安東尼。

Thank you, Anthony.

謝謝你，安東尼。

Budd Bugatch, Water Tower Research.

巴德·布加奇，水塔研究。

Good morning, Rob. Good morning, Mike. And let me add my thanks for the call and they have the information and also for the filing of the Q this morning, which I answered a lot of my questions on in terms of some of the detail.

早安，羅布。早上好，麥克。讓我對這次電話表示感謝，他們提供了信息，也感謝今天早上提交的問題，我在一些細節方面回答了很多問題。

I want also on just comment I've been doing this for a long time. And I don't remember seeing the time and it's not a pleasant time in the industry where you've seen the company address forthrightly, it's charges that it needed to take and done business and come up with a stronger balance sheet and at the same time, raise a dividend.

我也想發表評論，我已經這樣做很久了。我不記得看到過什麼時間，這在行業中不是一個令人愉快的時期，你看到該公司直率地發表講話，它被指控需要接受並完成業務並拿出更強大的資產負債表，同時時間，提高股利。

That's really a remarkable and shows a tremendous confidence and the commitment to your shareholders. So, thank you for that. And --

這確實是一件了不起的事，顯示了對股東的巨大信心和承諾。非常感謝你的幫忙。和 -

Thank you, Budd.

謝謝你，巴德。

Let me go into some of my questions. And I'm going to also ask about True Custom, because I think you're right, you have some different features in your customer post to program that make it unique and really significantly different than others. And you've got you said I think you said you have 30 new dealers since market, 17 at market and 13 additional, and you want to get the [50], how is the pipeline look?

讓我談談我的一些問題。我還將詢問真正的定制，因為我認為你是對的，你的客戶帖子中有一些不同的功能可以編程，使其獨一無二，並且與其他產品有很大不同。你說過，我想你說過自上市以來你有 30 個新經銷商，17 個在市場上，還有 13 個額外經銷商，你想獲得 [50] 個，管道看起來怎麼樣？

Well, we've got one last week at in California. And our guys are energized about this. When I say our guys, I mean our sales management and our field representatives and that number that we included in the release, it said 50 by year-end. We feel good about that, but we don't want to get too far ahead of ourselves.

嗯，我們上週在加州舉辦了一場活動。我們的員工對此充滿活力。當我說我們的人員時，我指的是我們的銷售管理層和現場代表，以及我們在發布中包含的人數，它說到年底將有 50 人。我們對此感覺良好，但我們不想太過超前。

But this really is an inexpensive way for the retailer to take advantage of the breadth of our options that the technology that we provide. The best-in-class speed of delivery of all of these things that characterize the program we've gotten to where now we're getting this thing down to a science, which sounds like a little bank but it's kind of a big bank because in the end, in the past, when we've done these programs to the point of purchase material and some of the furniture trickles in and then the furniture trickles in and all of this.

但這對零售商來說確實是一種廉價的方式，可以利用我們提供的技術的廣泛選擇。所有這些東西的交付速度都是一流的，這些東西是我們已經達到的項目的特點，現在我們正在把它歸結為一門科學，這聽起來像一家小銀行，但它是一家大銀行，因為最後，在過去，當我們完成這些計劃以購買材料時，一些家具慢慢流入，然後家具慢慢流入，所有這些。

And we actually make the furniture faster than the fixture guys can make the fixtures. And so now we're inventory and all that stuff. We're palletizing all the support material. And the furniture and all of that arrive on the same truck. And then, our representative goes in there set up training the sales force.

事實上，我們製造家具的速度比固定裝置人員製造固定裝置的速度還要快。所以現在我們有庫存和所有這些東西。我們正在對所有支撐材料進行堆疊。家具和所有這些東西都用同一輛卡車到達。然後，我們的代表進去對銷售人員進行培訓。

And so you really have a great kick-off with this thing. And it's a tough time, it's been exciting internally for our whole team to use this as a rallying cry to take our best program and spread the word.

所以你確實在這件事上有了一個很好的開始。這是一個艱難的時刻，我們整個團隊內部都感到興奮，以此作為戰鬥口號，採取我們最好的計劃並傳播訊息。

And of the 30, are all there are some of them installed already? And if not, and get it up, then when will it be done?

30 個中，有些已經全部安裝了嗎？如果沒有，那麼什麼時候能完成呢？

I would say the -- I should know this, but I would say the majority of those guys are up and running, yes.

我想說的是——我應該知道這一點，但我想說的是，這些人中的大多數都已經啟動並運行，是的。

And -- early results in terms of delta sales?

還有——增量銷售方面的早期結果？

Well, we get a report on that every Monday and we have a yes, good results we're -- this thing works as a good thing about it because really that in our design centers in our stores for years, this has been going on. And then, also in our bigger gallery program, it's kind of the epicenter of that as well. So, this is yes, we're getting good results.

好吧，我們每週一都會收到一份關於這方面的報告，我們得到了一個好的結果——這件事是一件好事，因為實際上，在我們商店的設計中心多年來，這種情況一直在發生。然後，在我們更大的畫廊項目中，它也是其中的中心。所以，這是肯定的，我們正在取得良好的結果。

That's great. I mean, I when I was in the retail business, this would have been a program that would have been a no brainer for retail. So, whenever I could use your capital to do why on my sales up, it's always a good idea. For the last several quarters, I've noticed that the change in orders at retail are significantly less bad than the change in deliveries. And are we the backlog now is up sequentially from last quarter.

那太棒了。我的意思是，當我從事零售業務時，這對零售業來說是一個理所當然的計劃。因此，每當我可以利用您的資金來提高我的銷售額時，這總是一個好主意。在過去的幾個季度中，我注意到零售訂單的變化明顯沒有交貨變化那麼糟糕。我們現在的積壓訂單比上季連續增加。

Are we starting to see at a point where we start to see positive orders at retail? And maybe how did it how did it progress during the second quarter, I know you said the Memorial Day was an important period, so that would have some impact. But what were you seeing month on month?

我們是否已經開始看到零售業的積極訂單了？也許第二季的進展如何，我知道你說陣亡將士紀念日是一個重要的時期，所以這會產生一些影響。但你每個月都看到了什麼？

Let's two of us try to take a stab at this. I would say one thing that and Mike can kind of walk you through it. I think, well, definitely the backlog took a while I mean, the backlog got up to $100 million. Tam is huge, and now it's $20 million. So you have the one thing that I don't think JD Bassett in 1902 was contemplating this, but the way he set up the fiscal year just happens day quarters and on the big holiday weekends.

讓我們兩個人嘗試這個問題。我想說一件事，麥克可以引導你完成它。我想，好吧，積壓的訂單確實花了一段時間，我的意思是，積壓的訂單已達 1 億美元。 Tam 規模很大，現在已經有 2000 萬美元了。所以有一件事我認為 1902 年的 JD Bassett 並沒有考慮到這一點，但他設定財政年度的方式只是在每個季度和重要的假日週末發生。

And so, the first quarter ends at Presidents' Day the second quarter. It's more of a in the third quarter and at Labor Day. And so we get a kind of a boost because those are the big selling periods, and Mike can walk you through that.

因此，第一季在第二季的總統日結束。這更多是在第三季和勞動節。因此，我們得到了某種推動，因為這是大銷售時期，麥克可以引導您度過這段時期。

I think one thing I do want to say is, though it's kind of the big picture and our retail sales were down 2%, 2.5%, I think, for the quarter. So in our top line was down 17%. So we're starting to finally, it hit bottom here and now we're going to obviously spring up this this number. But Memorial Day, we were, as I mentioned in my remarks, we were up versus last year for the three-week period.

我想我確實想說的一件事是，儘管這是一個大局，但我認為本季我們的零售額下降了 2%、2.5%。所以我們的收入下降了 17%。所以我們終於開始了，它在這裡觸底，現在我們顯然要增加這個數字。但是，正如我在演講中提到的，陣亡將士紀念日，我們在三週期間的表現比去年有所提高。

And I will say, if I can say this, July 4, can I say this -- July 4, was up versus last year. And it was it was a good event. So these days, these kind of tent-pole events are of outsized significance in this environment than they've had in the past, at least for us.

我會說，如果我可以這樣說，7 月 4 日，我可以這樣說嗎 - 7 月 4 日比去年有所上升。這是一件好事。因此，如今，在這種環境下，這類重大事件比過去具有更大的意義，至少對我們來說是如此。

So, Mike, you've got.

所以，麥克，你做到了。

Yeah. And to tag along here, since you're comparing that 17% down compared to Q2 of last year, we were so still selling through backlog and you can see that if you go back to Q1 of 2023, our retail backlog was $42 million at Q2 of '23, the next quarter, it was down to $33 million, and it's been pretty consistent since then.

是的。在此標記一下，由於您比較的是與去年第二季度相比下降了17%，因此我們仍然透過積壓進行銷售，您可以看到，如果您回到2023 年第一季度，我們的零售積壓為4,200 萬美元2023 年第二季度，即下一個季度，該數字下降至 3,300 萬美元，此後一直保持穩定。

So I think that's a way of saying it feels like we've hit the bottom. I guess it would be as we said, we were down 2.5% written for the quarter, but down 17% because we were selling really through the backlog.

所以我認為這是一種表達我們已經觸底的方式。我想正如我們所說，本季我們的業績下降了 2.5%，但下降了 17%，因為我們實際上是透過積壓銷售的。

And that's the way the math works from the stuff you disclosed in the Q. So, that's what I think. I mean, it looks like you're bouncing along the bottom here that at this point in time, because you've shrunk that delta now for the last couple of quarters on.

這就是您在問題中披露的內容的數學計算方式。我的意思是，現在看起來你正沿著底部反彈，因為在過去的幾個季度你已經縮小了三角洲。

My next question is, on the math on the income statement in terms of the tax, the tax shield is over 11% that I know you report GAAP and in respect that you don't adjust, but we've got two significant items in this particular period that I think may have different tax treatments, the inventory valuation, additional inventory valuation charge and asset write-downs.

我的下一個問題是，根據稅收方面的損益表計算，稅盾超過 11%，我知道您報告了 GAAP，而且您沒有進行調整，但我們有兩個重要項目我認為這個特定時期可能會有不同的稅務處理、存貨估價、額外存貨估價費用和資產減記。

Can you kind of parse out with the tax consequences of those items are?

您能分析一下這些項目的稅務後果嗎？

Yes, I'll take this one, Rob.

是的，我想要這個，羅布。

Good.

好的。

So two things. Let me first say the two charges associated with no $1.8 million and the $500,000, I take no tax benefit on that. So that's the first thing to consider. Then, in turn to the other, there's really no difference in the tax treatment on the other, the other restructuring charges.

所以有兩件事。首先我要說的是與 180 萬美元和 50 萬美元相關的兩項費用，我對此沒有任何稅收優惠。所以這是首先要考慮的事情。然後，反過來，其他重組費用的稅收待遇實際上沒有區別。

And the other and the inventory charges. That's just baked into the to the year-end right now, given where we are with our permanent differences and being in a lot of things your normal, you would expect 25%, 26% blended rate. It just doesn't all work out in that fashion. So, I don't know that answers your question, but --

其他還有庫存費用。考慮到我們之間的永久差異以及許多事情都是正常的，你會期望 25%、26% 的混合利率，現在這個數字剛剛被考慮到了年底。但事情並沒有全部以這種方式進行。所以，我不知道這能回答你的問題，但是——

It certainly bring some assets into better alignment on the that 25%, 26% is assuming a 21% federal and then the balance between state and other kinds of correct read items?

它肯定會讓一些資產更好地與 25%、26% 假設聯邦 21% 以及州和其他類型的正確閱讀項目之間的平衡保持一致？

Correct.

正確的。

And so, what would be with the losses? Is it still in that -- low-20%s or mid-20%s kind of range? Is that about where it works out?

那麼，損失會怎樣呢？是否仍處於 20% 低或 20% 中的範圍內？這就是它的作用嗎？

You have to back out the losses associated with Noa, which we don't give you.

你必須償還與諾亞相關的損失，但我們不會給你。

$2.3 million --

230萬美元——

We don't give we don't give you the actual loss generated by Noa. It's buried in the corporate and other.

我們不會給您諾亞產生的實際損失。它被埋藏在公司和其他地方。

I got --

我有 -

-- So, you really can't do the math because we don't give you the numbers of the actual loss that's generated by Noa.

——所以，你真的無法計算，因為我們沒有給你諾亞造成的實際損失的數字。

But if we take the $2.3 million and take that out of the tax equation, it gets kind of percentages to come as somewhat more into alignment.

但如果我們將 230 萬美元從稅收等式中剔除，就會得到一些百分比，從而更加一致。

Right. But then you'd also have to back out the losses from Noa outside of the charges taken.

正確的。但這樣一來，除了所收取的費用之外，您還必須抵銷諾亞造成的損失。

Got you. Okay. Well, we're going to we'll take a stab at it and we'll see a quick hit what commentary in general that at that point in time for the bank or the benefit that you see next year in fiscal '25 and 5.5% to 6.5%. does that come in ratably over the years that come in quarter-by-quarter about the same level?

明白你了。好的。好吧，我們將對此進行嘗試，我們將看到當時對銀行的整體評論或您明年在 25 財年和 5.5 財年看到的好處%至6.5%。多年來，這一比例是否與每季的水平大致相同？

Or do you see it build during the year?

或者你認為它會在年內建成嗎？

Well, the idea is that you would be starting the -- December 1, which is our first day of the 2025 calendar fiscal year. So, really starting with the first quarter.

好吧，我們的想法是從 12 月 1 日開始，這是我們 2025 日曆財年的第一天。所以，真正從第一季開始。

Okay. And a couple of other just quickies. I know that. Noa, I didn't live up to expectations, but hopefully there were some learnings in there that, Rob, you might want to chat about.

好的。還有其他一些只是快速的。我知道。諾亞，我沒有達到期望，但希望其中有一些教訓，羅布，你可能想談談。

And is there any is there any residual that you can glean from Noa in terms of sales domestically or even in Canada somehow with the e-comm?

您是否可以透過電子商務從 Noa 收集到國內甚至加拿大的銷售情況？

Good question that you have. One thing we learned is a pure-play e-commerce and furniture is a tough business for venture event. And the in that we put in a new website at Bassett last year, we talked about that quite a bit. We are seeing some green shoots of that effort. I mean, we think we have a much better platform and navigation and all that and we're starting to see some nice results.

你的問題問得好。我們了解到的一件事是，對於創投來說，純粹的電子商務和家具業務是一項艱難的業務。去年我們在巴塞特建立了一個新網站，我們對此進行了許多討論。我們正在看到這項努力的一些萌芽。我的意思是，我們認為我們擁有更好的平台和導航以及所有這些，我們開始看到一些不錯的結果。

We're not anywhere near where we want to be on the e-commerce side, but that's good. And a couple of I know folks have helped us with that. And one, it's likely for a period of time for sure to remain in the mix. And he has quite a bit of experience and e-commerce dating back before, Noa. So yes, from that perspective, we see some ongoing benefit.

在電子商務方面，我們距離我們想要的目標還差得很遠，但這很好。我認識的一些人在這方面幫助了我們。第一，它很可能在一段時間內肯定會留在混合中。諾亞，他之前就有相當多的電子商務經驗。所以，是的，從這個角度來看，我們看到了一些持續的好處。

And -- also potentially in and out of that, we've explored. And out of that, we haven't decided but they did have a brand up there. And so furniture in Canada more than that we sell. So, could we go forward with, I Noa site with Bassett product as an entry-level offering up there maybe, but we're really more focused on the balance sheet now, and they were requiring cash contributions from the mothership. And we did not see the value in continuing at that level. So we're still talking about what could happen down the future -- the future in that regard.

而且——我們也對此進行了探索。因此，我們還沒有決定，但他們確實有一個品牌。因此，加拿大的家具比我們銷售的還要多。所以，我們可以繼續前進，我諾亞網站可能會將巴塞特產品作為入門級產品，但我們現在更關注資產負債表，他們需要母艦提供現金捐助。我們沒有看到繼續保持這個水準的價值。所以我們仍在談論未來可能發生的事情——這方面的未來。

Okay. As I said, just a few more regional more details are that there's a difference between the $2.7 billion valuation charge to inventory that you showed. I think that affected the income statement on the gross margin ended $3.8 million showing on the cash flow is additional inventory valuation. What accounts for that difference?

好的。正如我所說，更多的地區性細節是，您所顯示的 27 億美元的庫存估值費用之間存在差異。我認為影響損益表的毛利率為 380 萬美元，現金流量顯示的是額外的庫存估值。造成這種差異的原因是什麼？

Well, so we take a charge every month, a regular charge to put stuff into our reserve and that delta that you're referring to go $2.7 million versus $3.8 million. That's kind of a $500,000 a quarter run rate and you can kind of compare that to last year where we say $2.5 million or $2.475 million.

嗯，所以我們每個月都會收取一筆費用，這是一項定期費用，用於將物品存入我們的儲備金中，而您提到的增量為270 萬美元，而您所說的增量為380 萬美元。這相當於每季 50 萬美元的運行費用，您可以將其與去年的 250 萬美元或 247.5 萬美元進行比較。

Within that $2.475 million was another $1 million extra charge. We didn't talk about it, at least we did talk about it, but we didn't give you that number last year and we didn't provide an adjusted gross margin last year. But in the press release, you saw that back table that shows how we reconcile and $1 million charge.

在這 247.5 萬美元中，還有 100 萬美元的額外費用。我們沒有談論過它，至少我們確實談論過它，但去年我們沒有給你這個數字，去年我們也沒有提供調整後的毛利率。但在新聞稿中，您看到了後台表格，其中顯示了我們如何協調和 100 萬美元的收費。

Normally it's $500,000, roughly a quarter and that's what for both years. That's what the normal charge was.

通常是 50 萬美元，大約是四分之一，這是兩年的情況。正常收費就是這樣。

Yeah. I don't think we normally see that reserve additional charge, at least I have to go back and look --

是的。我認為我們通常不會看到預留額外費用，至少我得回去看看——

On an basis, you wouldn't have seen it there because the magnitude of what we just did and they have retired what we called it out in addition to that was our normal quarterly charge that we do to, I guess, inventory.

基本上，你不會在那裡看到它，因為我們剛剛所做的事情的規模很大，而且他們已經取消了我們所說的除此之外我們對庫存所做的正常季度費用。

I think we broke it out in the 10-K last year at the end of the year, but yes, that's you're right. We don't normally break that out.

我想我們在去年年底的 10-K 比賽中取得了突破，但是，是的，你是對的。我們通常不會打破這一點。

Within the quarters. Yes, that's it, whereas our will call and last for me is you talked about you're looking at some other sites and that would be exciting to see of and other markets for the retail of when do you think you'll make a decision? I know nothing for this year but are they can you talk a little bit about what the processes and when the decision might be made on that?

宿舍內。是的，就是這樣，而我們將打電話給我，最後一次是您談到您正在查看其他一些網站，看到這些網站和其他零售市場將會令人興奮，您認為您何時會做出決定？我對今年的情況一無所知，但是您能談談流程是什麼以及何時可能做出決定嗎？

We've got some travel set in July to look at the sites. It takes us. It takes a long time to once you make the decision to make these things happen in some cases, depending on what the actual situation is. But I think these would be decisions that we would be making the next 90 days out surmise and something that would happen in 2025 as far as a timetable goes.

我們安排了七月的旅行去參觀這些地點。這需要我們。有些情況下，一旦你做出決定，要讓這些事情發生需要很長時間，這取決於實際情況。但我認為這些決定是我們在未來 90 天內做出的推測，並且按照時間表，將在 2025 年發生。

Okay. Well, again, thank you for taking my questions. Thank you for the call and best of luck in the second half of '24 and beyond.

好的。好吧，再次感謝您回答我的問題。感謝您的來電，祝您 24 年下半年及以後一切順利。

Thanks, Budd.

謝謝，巴德。

Thank you.

謝謝。

Thank you. Ladies and gentlemen, I'm showing no further questions in the queue. I would now like to turn the call back to Spilman for closing remarks.

謝謝。女士們先生們，我不會在隊列中顯示任何其他問題。現在我想將電話轉回給斯皮爾曼，讓其致閉幕詞。

All right. Well, I just I'd just like to wrap it up by saying we appreciate the interest and Bassett and your questions. Third quarter is underway and the environment for home furnishings remains challenging, but as we said earlier, we've got a long history of weathering economic cycles, making the right decisions to remain an industry leader.

好的。好吧，我只是想在結束時說，我們感謝您的興趣、巴塞特和您的問題。第三季即將到來，家居環境仍然充滿挑戰，但正如我們之前所說，我們有著長期經受經濟週期考驗的歷史，並做出了正確的決定以保持行業領先地位。

We're confident that through our restructuring plan. We can continue to provide exceptional customer service with a leaner, more efficient operation. And that's that was the basis for the restructuring charges and they have the 11% increase in our quarterly dividend that our Board of Directors approved on Tuesday is a further indication of our focus on delivering additional shareholder value.

透過我們的重組計劃，我們對此充滿信心。我們可以繼續以更精簡、更有效率的營運方式提供卓越的客戶服務。這就是重組費用的基礎，董事會週二批准的季度股息增加了 11%，這進一步表明我們專注於提供額外的股東價值。

Thank you for your time and thank you, operator.

感謝您的寶貴時間，也謝謝您，接線生。

You're welcome. Ladies and gentlemen, this concludes today's conference call. Thank you for your participation. You may now disconnect.

不客氣。女士們、先生們，今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。