Caleres Inc (CAL) 2023 Q3 法說會逐字稿

Hello, and welcome to the Caleres third quarter 2023 earnings call. My name is Kevin, and I'll be your conference operator. (Operator Instructions) As a reminder, this conference is being recorded. It's now my pleasure to turn the call over to Logan Bonacorsi, Vice President, Investor Relations. Please go ahead, Logan.

您好，歡迎參加 Caleres 2023 年第三季財報電話會議。我叫凱文，我將擔任您的會議操作員。 （操作員指示）謹此提醒，本次會議正在錄製中。現在我很高興將電話轉給投資者關係副總裁 Logan Bonacorsi。請繼續，洛根。

Good morning. Thank you for joining our third quarter 2023 earnings call and webcast. A press release with detailed financial tables, as well as our quarterly slide presentation, are available at caleres.com.

早安.感謝您參加我們的 2023 年第三季財報電話會議和網路廣播。包含詳細財務表格的新聞稿以及我們的季度幻燈片演示可在 caleres.com 上取得。

Please be aware, today's discussion contains forward-looking statements, which are subject to a number of risks and uncertainties. Actual results may differ materially due to various risk factors including, but not limited to, the factors disclosed in the company's Form 10-K and other filings with the US Securities and Exchange Commission. Please refer to today's press release and our SEC filings for more information on risk factors and other factors which could impact forward looking statements. Copies of these reports are available online. In discussing the results of our operations, we will be providing and referring to certain non-GAAP financial measures. You can find additional information regarding these non-GAAP financial measures, as well as other views in today's earnings release and our presentation, on the investors section of our website. The company undertakes no obligation to update information discussed in this call at any time.

請注意，今天的討論包含前瞻性陳述，這些陳述存在許多風險和不確定性。由於各種風險因素，包括但不限於公司向美國證券交易委員會提交的 10-K 表格和其他文件中揭露的因素，實際結果可能會存在重大差異。請參閱今天的新聞稿和我們向美國證券交易委員會提交的文件，以了解有關風險因素和其他可能影響前瞻性陳述的因素的更多資​​訊。這些報告的副本可在線取得。在討論我們的營運結果時，我們將提供並參考某些非公認會計準則財務指標。您可以在我們網站的投資者部分找到有關這些非公認會計原則財務指標的更多信息，以及今天的收益發布和我們的演示文稿中的其他觀點。該公司沒有義務隨時更新本次電話會議中討論的資訊。

Joining me on the call today are Jay Schmidt, President and CEO; Jack Calandra, Senior Vice President and CFO. We will begin this morning's call with our prepared remarks, and thereafter, we'll be happy to take your questions. I would now like to turn the call over to Jay. Jay?

今天與我一起參加電話會議的是總裁兼執行長傑伊‧施密特 (Jay Schmidt)；傑克‧卡蘭德拉，資深副總裁兼財務長。我們將以準備好的發言開始今天早上的電話會議，隨後我們將很樂意回答您的問題。我現在想把電話轉給傑伊。傑伊？

Thank you, Logan, and good morning, everyone. We are pleased to report earnings per share results above our guidance range. The Caleres team built on our strong first-half results, leveraged our competitive advantages and core competencies, and drove another period of solid operational and financial performance. Our consistent ability to deliver underscores the strength of our brand assets and the power of our operating model.

謝謝洛根，大家早安。我們很高興地報告每股收益高於我們的指導範圍。 Caleres 團隊以我們上半年的強勁業績為基礎，利用我們的競爭優勢和核心能力，推動了另一個穩健的營運和財務業績時期。我們始終如一的交付能力凸顯了我們品牌資產的實力和營運模式的力量。

During the third quarter, we achieved adjusted earnings per share of $1.37, which was above the high end of our guidance range and represented a nearly 20% increase over the third quarter of 2022. Consolidated sales declined 4.6%, slightly below our expectations. However, we saw strong sequential improvement in the sales trend in the brand portfolio, and continued strength in our cornerstone Kids business at Famous Footwear. We achieved these results despite ongoing softness in the demand environment and weak seasonal demand in boots that impacted both segments of our business.

第三季度，我們實現調整後每股收益 1.37 美元，高於我們指導範圍的上限，比 2022 年第三季度增長近 20%。綜合銷售額下降 4.6%，略低於我們的預期。然而，我們看到品牌組合的銷售趨勢出現強勁的連續改善，並且 Famous Footwear 的基石兒童業務持續強勁。儘管需求環境持續疲軟以及靴子的季節性需求疲軟影響了我們的兩個業務部門，但我們還是取得了這些成果。

During the quarter, we generated strong consolidated gross margin of approximately 45%. This was driven by record gross margin in the brand portfolio and solid gross margin at Famous Footwear, as we continued to prioritize profitability over promotional sales. Both segments of our business also delivered a strong operating margin, resulting in a consolidated adjusted operating margin of nearly 9%. The brand portfolio generated record third-quarter operating margin of 12.2%, while Famous Footwear achieved a double-digit operating margin of 10.6%.

本季度，我們實現了約 45% 的強勁綜合毛利率。這是由品牌組合創紀錄的毛利率和 Famous Footwear 穩健的毛利率推動的，因為我們繼續將盈利能力置於促銷銷售之上。我們的兩個業務部門也都實現了強勁的營業利潤率，調整後的綜合營業利潤率接近 9%。該品牌組合第三季營業利潤率創歷史新高，達到 12.2%，而 Famous Footwear 則實現了兩位數的營業利潤率，達到 10.6%。

We saw strong consumer reaction to our brands and for our products, and benefited from our ongoing inventory management. Inventory declined more than 14% year over year as compared with third quarter of 2022, which allowed us to strategically adjust our promotional cadence across our businesses.

我們看到消費者對我們的品牌和產品反應強烈，並從我們持續的庫存管理中受益。與 2022 年第三季相比，庫存年減超過 14%，這使我們能夠策略性地調整整個業務的促銷節奏。

During the quarter, we continued to invest in and accelerate value-driving growth opportunities and made progress on several key initiatives. First, according to Circana, we grew market share in the brand portfolio in women's fashion footwear and increased Famous Footwear's market share in shoe chains and in Kids. Second, we leveraged our leading speed capabilities in the brand portfolio to capture demand in key trends in casual flats, loafers, moccasins, valets, and fashion sneakers, supplementing the weak trending boot category. Third, we further enhanced our marketing ecosystem by partnering with Bluecore to strengthen our ability to utilize our consumer data platform or CDP.

本季度，我們持續投資並加速價值驅動的成長機會，並在多項關鍵措施上取得進展。首先，據 Circana 稱，我們增加了女式時尚鞋類品牌組合的市場份額，並增加了 Famous Footwear 在鞋業連鎖店和童裝市場的市場份額。其次，我們利用品牌組合中領先的速度能力，抓住休閒平底鞋、樂福鞋、鹿皮鞋、代客泊車和時尚運動鞋等主要趨勢的需求，補充弱勢的靴子類別。第三，我們透過與 Bluecore 合作進一步增強了我們的行銷生態系統，以增強我們利用消費者數據平台或 CDP 的能力。

Fourth, we expanded our global presence by opening an additional Sam Edelman store in Asia. We've now opened five stores, fiscal year to date, with three more slated for the fourth quarter. Fifth, we redoubled our commitment to ESG by unveiling our One Planet Standard, which highlights styles in each brand that meet our strictest sustainability standards. In addition, we were recognized by the Women's Forum of New York for our ongoing commitment to gender parity on our Board of Directors. And six, we further strengthened our balance sheet and financial flexibility by reducing the borrowings under our asset-based revolving credit facility by $22 million from second quarter of 2023. This represents a $143 million year-over-year decline in our borrowings.

第四，我們透過在亞洲開設另一家 Sam Edelman 商店來擴大我們的全球影響力。截至本財年，我們已開設了五家商店，第四季計劃再開設三家商店。第五，我們透過推出「同一個星球」標準，加強了對 ESG 的承諾，該標準強調了每個品牌符合我們最嚴格的永續發展標準的風格。此外，我們因董事會對性別平等的持續承諾而獲得了紐約婦女論壇的認可。第六，我們透過從2023 年第二季開始將基於資產的循環信貸安排下的借款減少2,200 萬美元，進一步增強了我們的資產負債表和財務靈活性。這意味著我們的借款同比減少了1.43億美元。

Now let's turn to our operating segments, starting with the brand portfolio, which remains on track to deliver significantly higher earnings contribution in 2023, as compared with prior years. Already, for the first time in our company's history, the majority of the earnings contribution year to date has come from this segment. During the quarter, the brand portfolio achieved a strong financial performance, delivering record third quarter adjusted operating earnings of $39 million and generating record third-quarter adjusted operating margin of 12.2%. This was driven by a 580-basis-point improvement in gross margin due to higher initial margins, lower freight costs, strong inventory management, and reduced markdowns.

現在讓我們轉向我們的營運部門，從品牌組合開始，與往年相比，該品牌組合仍有望在 2023 年實現顯著更高的獲利貢獻。今年迄今為止，大部分獲利貢獻都來自該部門，這在我們公司歷史上尚屬首次。本季度，該品牌組合實現了強勁的財務業績，第三季調整後營業利潤達到創紀錄的 3,900 萬美元，第三季調整後營業利潤率創歷史新高，達到 12.2%。這是由於較高的初始利潤、較低的貨運成本、強有力的庫存管理和減少的降價，毛利率提高了 580 個基點。

Our lead brands once again represented about half of the brand portfolio sales and nearly 60% of the segment's profitability. We continue to expect the brand portfolio sales and earnings growth to lead the total company's growth over the next three years. As I mentioned, the brand portfolio sales trends improved sequentially in the third quarter, with sales down 0.8% and many of our brands up year over year.

我們的主導品牌再次佔據了品牌組合銷售額的一半左右以及該細分市場近 60% 的盈利能力。我們仍預期未來三年品牌組合的銷售和獲利成長將引領公司整體成長。正如我所提到的，第三季品牌組合銷售趨勢較上季改善，銷售額下降 0.8%，但我們的許多品牌較去年同期成長。

We are particularly proud of the performance of our speed programs, which represented 28% of our production during the quarter, versus just 12% a year ago. Speed is a key differentiator for the Caleres brand portfolio, as we can get back into products in three months or less to align with what the consumer wants to buy. As a result, we were successful in offsetting weakness in boots mostly during the quarter. The consumer continued to gravitate toward newness in non-seasonal categories, including casual flats, loafers, moccasins, valets, and fashion sneakers, which by the way, were up over 30% in the quarter.

我們對速度計劃的表現感到特別自豪，該計劃占我們本季產量的 28%，而一年前僅為 12%。速度是 Caleres 品牌組合的關鍵差異化因素，因為我們可以在三個月或更短的時間內重新推出產品，以滿足消費者想要購買的產品。結果，我們在本季成功地抵消了靴子的疲軟。消費者繼續青睞非季節性品類的新產品，包括休閒平底鞋、樂福鞋、莫卡辛鞋、代客泊車鞋和時尚運動鞋，順便說一句，這些品類在本季度增長了30% 以上。

Looking at our direct to consumer business, our owned e-commerce was a bright spot during the period, up nearly 5% year over year, with strong performances from lead brands, Vionic and Allen Edmonds, as well as portfolio brands, Dr. Scholl's and Franco Sarto. As we look to close the year, we expect further sequential improvement in the brand portfolio, as well as a return to year-over-year sales growth in the fourth quarter. Specifically, we will work to maximize top-selling categories and items, leaning into our speed to market and our Edit to Win strategy to get the consumer what they want.

從我們的直接面向消費者業務來看，我們自有的電子商務是期內的亮點，同比增長近 5%，領先品牌 Vionic 和 Allen Edmonds 以及組合品牌 Dr. Scholl's 表現強勁。和弗蘭科·薩爾托。當我們展望年底時，我們預計品牌組合將進一步改善，第四季度銷售將恢復同比增長。具體來說，我們將努力最大化最暢銷的類別和商品，依靠我們的上市速度和我們的「編輯致勝」策略來滿足消費者的需求。

Now to the performance of our lead brands. As we detailed at our Investor Day presentation in October, these four brands are transformed and readied for accelerated growth, with clear strategies to optimize our ongoing investments. Beginning with Allen Edmonds, the brand achieved its 11th consecutive quarter of growth. The third-quarter year-over-year increase was broad-based, with improvements across all channels and major categories, including casual, dress, and sport. The customer continued to respond to newness in footwear, with our new casual hybrids and sport sneakers leading the way.

現在來看看我們領先品牌的表現。正如我們在 10 月的投資者日演講中詳細介紹的那樣，這四個品牌已經轉型並為加速成長做好了準備，並製定了明確的策略來優化我們正在進行的投資。從 Allen Edmonds 開始，品牌實現了連續 11 個季度的成長。第三季的年成長基礎廣泛，所有通路和主要類別都有所改善，包括休閒、正裝和運動。顧客繼續對鞋類的新穎性做出反應，我們的新型休閒混合鞋和運動運動鞋引領潮流。

During the quarter and in support of our long-term strategic growth plans, we introduced our Port Washington Studio shop-in shops in three more locations, including our new store in Oklahoma City, which opened in October. We now have seven Port Washington Studio stores and continue to see the sales performance of these concept stores comped at twice the rate of the rest of the chain. Also in the quarter, we launched a new Allen Edmonds website to accelerate the growth in Canada for the Allen Edmonds business.

在本季度，為了支持我們的長期策略成長計劃，我們在另外三個地點推出了 Port Washington Studio 店內店，其中包括 10 月在俄克拉荷馬城開業的新店。我們現在擁有七家 Port Washington Studio 商店，並且繼續看到這些概念店的銷售業績是連鎖店其他商店的兩倍。同樣在本季度，我們推出了新的 Allen Edmonds 網站，以加速 Allen Edmonds 業務在加拿大的成長。

Our Vionic brand delivered a strong third quarter, with sales increasing low single digits over the last year, driven primarily by their international and retail segments. Gross profit climbed significantly, increasing across all channels. Our consumers and our wholesale partners are embracing our NorCal rebranding and product newness. In line with the overall market trends, the brand's loafers and flats were the main drivers of the positive performance in the period. The Uptown moc continues to be a consumer favorite and is gaining traction as the most perfectly packable shoe in the marketplace.

我們的 Vionic 品牌第三季表現強勁，銷售額較去年增長低個位數，這主要是由國際和零售部門推動的。毛利大幅攀升，各通路均有成長。我們的消費者和批發合作夥伴正在接受我們的 NorCal 品牌重塑和產品新穎性。與整體市場趨勢一致，該品牌的樂福鞋和平底鞋是該期間積極表現的主要推動力。 Uptown moc 繼續受到消費者的喜愛，並作為市場上最完美的可打包鞋而受到關注。

Our Naturalizer brand grew market share during the quarter, climbing one spot to number 11 in women's fashion footwear. The brand continued to make progress on its consumer-focused strategies and attract younger consumers. In September, the brand launched its inaugural loyalty program, Naturalizer INSIDER, to further engage and connect with consumers. Since that launch, more than half of our owned e-commerce sales have been generated by insiders.

我們的 Naturalizer 品牌在本季的市佔率有所成長，在女式時尚鞋類市場中攀升一位至第 11 名。該品牌在以消費者為中心的策略上不斷取得進展，並吸引年輕消費者。 9 月，該品牌推出了首個忠誠度計畫 Naturalizer INSIDER，以進一步與消費者互動和聯繫。自推出以來，我們自有電子商務銷售額的一半以上都是由內部人士創造的。

At Sam Edelman, the brand saw strength in feminine styles, including valets, Mary Janes, and lower heels, as consumers shifted away from heavier boots and lug soles. While the shift put some pressure on average unit retails, the brand's trend-right assortment, including their core styles, resonated with our consumer, and sneakers continued to build momentum. Profitability remains strong for the brand, and the team is busy on a number of fronts.

在 Sam Edelman，隨著消費者不再穿著較重的靴子和凸紋鞋底，該品牌看到了女性風格的優勢，包括代客鞋、瑪麗珍鞋和低跟鞋。雖然這一轉變給平均單位零售量帶來了一些壓力，但該品牌的潮流品種（包括其核心款式）引起了消費者的共鳴，運動鞋繼續保持成長勢頭。該品牌的盈利能力仍然強勁，團隊在多個方面都非常忙碌。

The Sam & Libby brand will relaunch in spring 2024, exclusively at Famous Footwear for the first month, and rolling out more broadly to the market later. The product looks great and will begin shipping in fourth quarter. in addition, I'm pleased to share that Sam and Libby Edelman will receive the Lifetime Achievement Award from Footwear News in December. And the brand is also gearing up to celebrate its 20th anniversary in 2024.

Sam & Libby 品牌將於 2024 年春季重新推出，第一個月僅在 Famous Footwear 獨家發售，隨後將向更廣泛的市場推廣。該產品看起來很棒，將於第四季度開始發貨。此外，我很高興地告訴大家，Sam 和 Libby Edelman 將於 12 月獲得《鞋類新聞》頒發的終身成就獎。該品牌也準備在 2024 年慶祝成立 20 週年。

We were also pleased with the sales trend improvement and strong profitability across our portfolio brands. In particular, Dr. Scholl's, Franco Sarto, and LifeStride grew both sales and operating profit by maximizing styles in line with their consumer preferences.

我們也對投資組合品牌的銷售趨勢改善和強勁盈利能力感到滿意。特別是，Dr. Scholl's、Franco Sarto 和 LifeStride 透過最大限度地根據消費者喜好提供款式，實現了銷售額和營業利潤的成長。

Overall, the brand portfolio performed well in the quarter and is planned to close 2023 strong. We expect ongoing improvement in segment sales trends and a more meaningful contribution to the company's operating performance this year. We are confident the brand portfolio, fueled by its lead brands, is positioned to lead the financial performance of Caleres over the long term.

總體而言，該品牌組合在本季度表現良好，並計劃在 2023 年結束時表現強勁。我們預計今年細分市場銷售趨勢將持續改善，並對公司的經營業績做出更有意義的貢獻。我們相信，在其領導品牌的推動下，品牌組合能夠長期引領 Caleres 的財務表現。

Turning now to Famous Footwear, our comp store sales were down 6.9% in the quarter. However, the brand outperformed its competitive set, gaining 50 basis points of market share in shoe chains and saw continued strength in its Kids business. During the third quarter, Famous experienced some softening demand trends, as families continued to be impacted by inflationary pressures and other macroeconomic concerns. Additionally, a sharp drop-off in boots had an outsized impact on Famous Footwear's results.

現在轉向 Famous Footwear，本季我們的比較店銷售額下降了 6.9%。然而，該品牌的表現超越了其競爭對手，在鞋業連鎖店中獲得了 50 個基點的市場份額，並且其兒童業務持續強勁。第三季度，由於家庭繼續受到通膨壓力和其他宏觀經濟問題的影響，Famous 經歷了一些需求疲軟的趨勢。此外，靴子銷量的急劇下降對 Famous Footwear 的業績產生了巨大影響。

Our Kids business, a key differentiator for Famous, increased 4% over last year, as we distorted our inventory investment behind key trends, brands, and styles heading into back-to-school. And those bigger bets paid off. We increased our Kids market share in shoe chains by nearly 2 percentage points, and we achieved record Kids sales during the 10-week back-to-school season. We believe these results further cement our leadership position as the go-to shoe store for back-to-school, and the go-to shoe store for Kids all year long.

我們的兒童業務是 Famous 的關鍵差異化因素，比去年增長了 4%，因為我們扭曲了返校季關鍵趨勢、品牌和款式背後的庫存投資。這些更大的賭注得到了回報。我們將童鞋連鎖店的市佔率提高了近 2 個百分點，並在為期 10 週的返校季期間實現了創紀錄的童裝銷售額。我們相信這些結果進一步鞏固了我們作為返校首選鞋店和兒童全年首選鞋店的領導地位。

As we detailed, we view Kids as a key component to our growth strategy at Famous and have made investments to support this critical area of our business. Famous owned 27% of the Kids market share in shoe chains through the first nine months of the year. We believe we are well-positioned to grow our share even further, particularly as our Kids dominance in shoe chains increases, and as consumers prioritize Kids purchases in this tough macroenvironment. In addition to the strength in Kids, many demand brands that Famous has been increasingly known for also showed strong increases during the quarter, just not enough to offset declines in seasonal categories.

正如我們所詳述的，我們將兒童視為 Famous 成長策略的關鍵組成部分，並進行了投資來支持我們業務的這一關鍵領域。今年前 9 個月，Famous 佔據鞋業連鎖店童裝市場 27% 的份額。我們相信，我們有能力進一步擴大我們的份額，特別是隨著我們的童裝鞋業在鞋業連鎖店中的主導地位不斷增強，以及消費者在當前嚴峻的宏觀環境下優先購買童裝產品。除了童裝的強勢外，許多日益知名的需求品牌在本季也出現了強勁成長，但不足以抵銷季節性類別的下降。

Famous generated $48 million in adjusted operating earnings, resulting in a return to a double-digit operating margin of nearly 11%. Gross margins were down 50 basis points versus last year, to 44.2%. And overall, we continue to prioritize the health of our business. Our nimble approach to inventory has allowed us to react to soft demand for seasonal goods, mitigate markdown risk, and capitalize on what consumers are buying.

Famous 產生了 4,800 萬美元的調整後營業利潤，營業利潤率恢復到兩位數，接近 11%。毛利率較去年下降 50 個基點，至 44.2%。總體而言，我們繼續優先考慮業務的健康發展。我們靈活的庫存方法使我們能夠應對季節性商品的疲軟需求，降低降價風險，並充分利用消費者的購買需求。

And while we expect the consumer demand and competitive environment for Famous to remain challenged for the balance of the year, we are confident that Famous will continue to capitalize on pockets of demand, including shopping for holiday, gaining market share in key categories, and focusing on profitability by managing inventory and expense levels. Longer term, we are confident Famous Footwear will continue to build on its leadership position with the millennial family, and deliver growth and profitability.

雖然我們預計 Famous 的消費者需求和競爭環境在今年餘下時間仍將面臨挑戰，但我們相信 Famous 將繼續利用部分需求，包括度假購物、在關鍵類別中獲得市場份額以及專注於透過管理庫存和費用水平來提高獲利能力。從長遠來看，我們相信 Famous Footwear 將繼續鞏固其在千禧世代家庭中的領導地位，並實現成長和獲利。

In summary, as we outlined at our Investor Day in October, we have transformed our company, resulting in a step change in the earnings power of the organization. One that supports our baseline earnings of $4 per share. And we have a clear plan and actionable strategies for growth in 2024 and beyond. Our unique structure is an asset that provides scale and stability, and allows us to leverage our capabilities synergistically.

總而言之，正如我們在 10 月的投資者日所概述的那樣，我們對公司進行了轉型，從而使組織的盈利能力發生了階躍變化。它支持我們每股 4 美元的基準收益。我們為 2024 年及以後的成長制定了明確的計劃和可行的策略。我們獨特的結構是一種資產，可以提供規模和穩定性，並使我們能夠協同利用我們的能力。

In 2024, Caleres will return to growth by leveraging our competitive advantages, powerful brands, innovative products, and compelling experiences across channels and geographies. Our successful execution of these operational initiatives will deliver strong financial performance and generate significant value for our shareholders over the long term. And with that, I will now hand it over to Jack for a more detailed view of our financials. Jack?

2024 年，Caleres 將利用我們的競爭優勢、強大的品牌、創新產品以及跨渠道和地理的引人注目的體驗來恢復成長。我們成功執行這些營運計劃將帶來強勁的財務業績，並為我們的股東帶來長期的巨大價值。現在，我將把它交給傑克，讓他更詳細地了解我們的財務狀況。傑克？

Thanks, Jay, and good morning, everyone. In today's call, I'll provide additional details on our third-quarter performance, discuss the progress we've made on our expense reduction initiatives, update you on our capital allocation activities, and share our revised outlook for full-year 2023. My comments will be on an adjusted basis. Please see today's press release for a reconciliation of adjusted results.

謝謝傑伊，大家早安。在今天的電話會議中，我將提供有關我們第三季度業績的更多詳細信息，討論我們在費用削減計劃方面取得的進展，向您介紹我們資本配置活動的最新情況，並分享我們修訂後的2023 年全年展望。評論將在調整的基礎上進行。請參閱今天的新聞稿，以了解調整後的結果的核對錶。

Starting with Q3 results. Consolidated sales were $762 million, down 4.6% versus last year. At Famous, sales were $450 million, down 6.7%. Comparable sales were down 6.9%. The lower sales were driven by softness in seasonal categories, namely boots, which was partially offset by strong performance in Kids.

從第三季的結果開始。綜合銷售額為 7.62 億美元，比去年下降 4.6%。 Famous 的銷售額為 4.5 億美元，下降 6.7%。可比銷售額下降 6.9%。銷售額下降的原因是季節性品類（即靴子）的疲軟，但兒童品類的強勁表現部分抵消了這種影響。

Brand portfolio sales were $321 million, down 0.8%, and reflected a continuation of the sequential year-over-year improvement. Consolidated gross margin increased 210 basis points to 44.7%, with an increase in brand portfolio gross margin and a decrease in Famous gross margin. Brand portfolio gross margin was 43.7%, a 580-basis-point increase versus last year. This gross margin was a record for the third quarter and was due to lower ocean freight costs, higher initial margins, and disciplined inventory management.

品牌組合銷售額為 3.21 億美元，下降 0.8%，反映出年比持續改善。綜合毛利率成長 210 個基點至 44.7%，其中品牌組合毛利率上升，名品毛利率下降。品牌組合毛利率為43.7%，較去年成長580個基點。這一毛利率創下了第三季的紀錄，得益於較低的海運成本、較高的初始利潤以及嚴格的庫存管理。

Famous gross margin was 44.2%, a 50-basis-point decline versus last year. This decline reflects lower initial margins and a more normalized level of clearance pricing, given last year's clean inventory position. That said, our change in promotional strategy, with significantly less BOGO, drove a favorable comparison to 2019.

名譽毛利率為44.2%，較去年下降50個基點。鑑於去年的清潔庫存狀況，這一下降反映了初始利潤率較低和清倉定價更加正常化。也就是說，我們促銷策略的改變，BOGO 顯著減少，與 2019 年相比產生了有利的結果。

SG&A expense for the third quarter was $274 million, or 35.9% of sales. SG&A expense was $9.5 million below last year from lower variable expenses and the benefits of our cost reduction initiative. Operating earnings were $67 million and operating margin was 8.8%. Operating margin was 12.2% at brand portfolio, a record for the third quarter, and 10.6% at Famous.

第三季的銷售、管理及行政費用為 2.74 億美元，佔銷售額的 35.9%。由於可變費用降低以及我們的成本削減計劃帶來的好處，SG&A 費用比去年減少了 950 萬美元。營業利益為 6,700 萬美元，營業利益率為 8.8%。品牌組合的營業利益率為 12.2%，創第三季新高，Famous 的營業利益率為 10.6%。

Net interest expense was $4.5 million, up $0.5 million from last year due to a higher borrowing rate. The weighted average interest rate in Q3 was 6.9% this year versus 4.2% last year. Diluted earnings per share were $1.37, in excess of the high end of our guidance range, and 19% higher than last year. EBITDA for the third quarter was $81 million, or 10.6% of sales.

由於借款利率上升，淨利息支出為 450 萬美元，比去年增加 50 萬美元。今年第三季的加權平均利率為 6.9%，而去年為 4.2%。稀釋後每股收益為 1.37 美元，超出了我們指導範圍的上限，比去年高出 19%。第三季 EBITDA 為 8,100 萬美元，佔銷售額的 10.6%。

Turning now to the balance sheet and cash flow. We ended the third quarter with $222 million in borrowings and no long-term debt. Inventory at the end of Q3 was $556 million, down 14% versus last year, principally in the brand portfolio and reflecting disciplined inventory management across the business. By segment, inventory was down 2% at Famous and down 27% at brand portfolio. In general, we feel good about the composition of inventory, as aged inventory as a percentage of total is lower than last year in both segments.

現在轉向資產負債表和現金流。截至第三季末，我們的借款為 2.22 億美元，沒有長期債務。第三季末的庫存為 5.56 億美元，比去年下降 14%，主要是品牌組合的庫存，反映出整個企業嚴格的庫存管理。按細分市場劃分，Famous 的庫存下降了 2%，品牌組合的庫存下降了 27%。總體而言，我們對庫存組成感覺良好，因為這兩個細分市場的老化庫存佔總量的百分比都低於去年。

Regarding cash flow from operations, we generated $32 million during the quarter and deployed cash for strategic investments in the business, including the omnichannel experience, marketing technologies and analytics, and international We also paid our quarterly dividend and reduced borrowings on our revolver. Specifically, we spent $20.5 million on capital expenditures and $2.5 million on our quarterly dividend.

關於營運現金流，我們在本季產生了 3,200 萬美元，並將現金用於業務策略投資，包括全通路經驗、行銷技術和分析以及國際化。我們還支付了季度股息並減少了左輪手槍借款。具體來說，我們在資本支出上花費了 2,050 萬美元，在季度股息上花費了 250 萬美元。

With a $22 million paydown in Q3, borrowings are approximately $143 million below third quarter last year and down $86 million year to date. As a result, we are now below 1 times on a debt to trailing 12-month EBITDA basis. Given the volatile consumer environment and higher interest rates, we will continue to focus on reducing debt.

第三季還款 2,200 萬美元，借款比去年第三季減少約 1.43 億美元，今年迄今減少 8,600 萬美元。因此，我們現在的債務與過去 12 個月 EBITDA 的比率低於 1 倍。鑑於消費環境不穩定和利率上升，我們將繼續專注於減少債務。

That said, the achievement of our leverage target and expected free cash flow in Q4 gives us the opportunity to both reduce leverage and buy back shares. We will evaluate these alternatives in light of business performance and market conditions as we proceed through the quarter. We have 5.6 million shares remaining under our current board repurchase authorization.

也就是說，第四季槓桿目標和預期自由現金流的實現使我們有機會降低槓桿併回購股票。在整個季度中，我們將根據業務績效和市場狀況評估這些替代方案。根據董事會目前的回購授權，我們仍有 560 萬股股票。

Turning now to our outlook. Given our performance year to date, coupled with soft consumer demand trends at Famous that accelerated in October and have continued fourth quarter to date, we are tightening our full-year earnings per share range to $4.10 to $4.20. As a result, for the full year, we now anticipate consolidated sales to be down 4.5% to 5.5%, including the impact of the 53rd week. Consolidated operating margin of 7.3% to 7.5%.

現在轉向我們的展望。鑑於我們今年迄今的業績，加上 Famous 的消費者需求疲軟趨勢在 10 月份加速並持續到第四季度至今，我們將全年每股收益範圍收緊至 4.10 美元至 4.20 美元。因此，我們現在預計全年綜合銷售額將下降 4.5% 至 5.5%，其中包括第 53 週的影響。綜合營業利益率為7.3%至7.5%。

We still expect to generate $20 million of in-year savings from our expense management initiatives and have identified additional opportunities for cost savings in 2024. As a result, we are increasing our one-time charge to $7 million and increasing our projected savings on an annualized basis to $35 million to $40 million. We took $4 million of that charge through Q3 and expect to take the remaining amount in the fourth quarter.

我們仍預計透過我們的費用管理計劃在年內節省 2,000 萬美元，並已確定 2024 年節省成本的其他機會。因此，我們將一次性費用增加到 700 萬美元，並將預計節省的費用增加到年化基礎上為3500萬至4000萬美元。我們在第三季收取了 400 萬美元的費用，並預計在第四季度收取剩餘金額。

We expect net interest expense of about $18 million, an effective tax rate of about 25%, capital expenditures of about $50 million, and shares outstanding of approximately 34.3 million, which assumes no additional share repurchases this year. With that, I'd like to turn the call back over to the operator for questions. Operator?

我們預計淨利息支出約為 1,800 萬美元，有效稅率約為 25%，資本支出約為 5,000 萬美元，流通股約為 3,430 萬股（假設今年沒有額外的股票回購）。這樣，我想將電話轉回給接線員詢問問題。操作員？

Thank you. We'll now be conducting a question-and answer-session. (Operator Instructions) Dana Telsey, Telsey Advisory Group.

謝謝。我們現在將進行問答會議。 （操作員指示）Dana Telsey，Telsey 諮詢小組。

Hi, good morning. Nice to see the progress of brand portfolio and also the careful management, as we move through this Famous Footwear -- as we move through the environment. Jay, if you think about the Famous Footwear business, was there any time period, whether it's going back to the GFC, whatever, that was similar to now? And how you plan on merchandising, assorting promo Famous and promo-ing Famous Footwear as we move through into 2024?

早安.很高興看到品牌組合的進展以及精心的管理，當我們穿過這個著名鞋類時——當我們穿過這個環境時。 Jay，如果你想想 Famous Footwear 業務，是否有某個時期，是否會回到全球金融危機時期，無論如何，與現在相似？進入 2024 年，您計劃如何進行商品推銷、分類促銷 Famous 以及促銷 Famous Footwear？

And then on the margins, which were very impressive, how do you think about under the hood on the margins and the puts and takes, whether it's for the remainder of the year and into 2024? And Jack, you mentioned further expense reduction. How much do you think it could be and what would it entail? Thank you.

然後是令人印象深刻的利潤率，您如何看待利潤率和看跌期權的幕後情況，無論是今年剩餘時間還是 2024 年？傑克，您提到進一步削減開支。您認為可能是多少以及需要什麼？謝謝。

Well, I think I'll begin by saying that, as we look at the Famous business and the promotional cadence, it's continually that balance of really, sales and profit that we're really managing very, very closely. So we do not have any return to go back to, what I would say the pre-pandemic levels of what we're doing. So we'd like to think we're competitive where we need to be with the marketplace and not any further.

好吧，我想我首先要說的是，當我們審視著名業務和促銷節奏時，我們真正非常非常密切地管理著銷售和利潤之間的平衡。因此，我們沒有任何回報可以回到我們正在做的事情大流行前的水平。因此，我們認為我們在需要與市場競爭的地方具有競爭力，而不是進一步。

I would say as a result of that, when we do have products that really are not performing, we are using our clearance ability to clear goods and provide value to the consumer. And those would be more in the second and fourth quarter of opportunities, which I think we've said before, coming through.

因此，我想說，當我們確實有確實表現不佳的產品時，我們正在利用我們的清關能力來清關貨物並為消費者提供價值。我想我們之前已經說過，第二和第四季的機會會更多。

Looking forward though, our whole focus with Famous is really on the family and all the inventory and products that the consumers want. Obviously, beginning with Kids and really thinking about this millennial mom as she comes to shop for her family. So I would say our items and our interest is all in there, and we are reacting aggressively to those in the marketplace. And then I'll let Jack fill in on the margin piece of it, which I think was the second part of the question.

但展望未來，我們對 Famous 的全部關注點實際上是家庭以及消費者想要的所有庫存和產品。顯然，從孩子開始，當這位千禧世代的媽媽為家人購物時，她會真正想到她。所以我想說，我們的產品和我們的興趣都在那裡，我們正在對市場上的產品做出積極的反應。然後我會讓傑克填寫它的空白部分，我認為這是問題的第二部分。

Yeah, Dana, thanks for the question. So for margins, as you know, we continue to see really nice gross margin improvement in brand portfolio. I would say just in terms of the order of those improvements, ocean freight is clearly driving the largest piece of that, followed by fewer markdowns associated with our better inventory management, and then some of the higher initial margins and prices. And I would say we expect similar improvement in brand portfolio gross margin in Q4, in what we've seen in Q3.

是的，達納，謝謝你的提問。因此，就利潤率而言，如您所知，我們繼續看到品牌組合的毛利率確實有很好的改善。我想說的是，就這些改進的順序而言，海運顯然是其中最大的推動因素，其次是與我們更好的庫存管理相關的降價減少，然後是一些更高的初始利潤和價格。我想說的是，我們預計第四季品牌組合毛利率將出現類似的改善，就像我們在第三季看到的那樣。

And then on Famous, as you noted, we were down 50 basis points. In that case, we had lower initial margins. I would say some increase in shrink, nothing to the extent that some of the other retailers have talked about, we've probably certainly seen that rate tick up. And then the inventory that we're managing in terms of we've got a little more clearance than we had last year, and we're taking that clearance prices down a little bit. So that's really driving the margin in Famous. And then I think your third --

然後，正如您所指出的，在 Famous 上，我們下跌了 50 個基點。在這種情況下，我們的初始利潤率較低。我想說的是，收縮率增加，沒有達到其他一些零售商所談論的程度，我們可能肯定會看到收縮率上升。然後，我們管理的庫存比去年多了一點清倉，我們正在將清倉價格稍微降低一點。所以這確實推動了 Famous 的利潤率。然後我想你的第三個——

Thank you. Yeah, go on.

謝謝。是的，繼續。

Yeah, your third question was on expense reduction. And as we continue to look for opportunities to streamline the organization and eliminate costs, we have, as we've done our work, found further consolidation opportunities in some of our smaller brands in the brand portfolio, as well as some additional opportunities in corporate infrastructure. And those changes are really driving up the annualized savings, about $5 million from the range we communicated previously.

是的，你的第三個問題是關於減少開支。當我們繼續尋找精簡組織和消除成本的機會時，正如我們所做的工作一樣，我們在品牌組合中的一些較小品牌中發現了進一步整合的機會，以及在企業中的一些額外機會。基礎設施。這些變化確實推動了年化節省，比我們之前溝通的範圍增加了約 500 萬美元。

Thank you.

謝謝。

Thank you, Dana.

謝謝你，達納。

Abby Zvejnieks, Piper Sandler.

艾比·茲維涅克斯，派珀·桑德勒。

Great. Thanks for taking my question. Can you just give us some color on how trends have evolved, maybe both at Famous and the brand portfolio since we last spoke at Analyst Day? And then how are you planning inventory buys for Famous engaging what demand will look like for at least the first half of '24? Thanks.

偉大的。感謝您提出我的問題。您能否為我們介紹一下自我們上次在分析師日發言以來趨勢如何演變的情況，也許是 Famous 和品牌組合的演變？然後，您如何規劃 Famous 的庫存購買，以了解至少 24 年上半年的需求？謝謝。

Yeah, I'll start, Abby, with the Famous piece. So what I would say is over the course of Q3, we saw comp sales lower each month of the quarter. So October was worse than September, September was worse than August. I would say the first couple weeks of November continued that trend, although we've seen improvement now, November month to date, and I would say more noticeable improvements in the past few days. And as we think about Q4, basically, our guidance assumes that the Q3 comp, back down 6.9%, is pretty much the midpoint of what we've modeled for Q4. So we feel pretty good about that. Did you want to talk about, Jay, how we're thinking about inventory for next year?

是的，艾比，我將從著名的作品開始。所以我想說的是，在第三季中，我們看到該季度每個月的公司銷售額都在下降。所以十月比九月更糟，九月又比八月更糟。我想說 11 月的前幾週延續了這一趨勢，儘管我們現在已經看到了 11 月至今的改善，而且我想說過去幾天有更明顯的改善。當我們考慮第四季時，基本上，我們的指導假設第三季的比較下降 6.9%，幾乎是我們為第四季建模的中點。所以我們對此感覺很好。傑伊，您想談談我們如何考慮明年的庫存嗎？

Yeah, so in Famous Footwear, obviously, like many retailers, we're going to continue to be very fluid and, I think, agile in reacting to market trends. We have good positions in some of the key brands that have been trending all the way through this year and we'll continue to model that very closely. But I think the inventory management has always been very strong and conservative right now. So we're going to continue that posture as we go into there. and keep looking at opportunities and working with our key strategic partners to do that.

是的，所以在 Famous Footwear 中，顯然，像許多零售商一樣，我們將繼續非常靈活，我認為，對市場趨勢做出靈活的反應。我們在一些今年一直流行的主要品牌中擁有良好的地位，我們將繼續密切關注這些品牌。但我認為目前的庫存管理一直非常強大和保守。因此，當我們進入那裡時，我們將繼續保持這種姿勢。並繼續尋找機會並與我們的主要策略合作夥伴合作來實現這一目標。

Yeah, and just to add to that, as we've started to look at our plans for 2024, we are certainly going to be looking for the continuation of turn improvement in inventory. And so we will look for that to be, again, a nice opportunity to manage working capital and unlock some cash.

是的，補充一點，當我們開始考慮 2024 年的計劃時，我們肯定會尋求庫存週轉持續改善。因此，我們將再次尋找一個管理營運資金和釋放一些現金的好機會。

Got it, makes sense. And just one more for me, if you can. Just on the brand portfolio, top-line trends sequentially improving. What gives you confidence, I guess, in 2024 growth of the brand portfolio? And what are the main drivers there? Thanks.

明白了，有道理。如果可以的話，再給我一份。僅就品牌組合而言，營收趨勢逐年改善。我想是什麼讓您對 2024 年品牌組合的成長充滿信心？那裡的主要驅動因素是什麼？謝謝。

Yeah, I think coming out of Investor Day, really, it's our focus on our lead brands. We think all of them are poised for growth and they have specific opportunities by brand that range from more international and -- our Sam & Libby growth, in our Sam Edelman brand. In Allen Edmonds, they have a specific wholesale opportunity. And I think all of them, along the way, have a big digital opportunity as we go forward. So we're looking at all those vectors to stimulate growth as we go into 2024.

是的，我認為投資者日結束後，我們真的把重點放在了我們的領先品牌上。我們認為他們都準備好成長，並且他們在品牌上有特定的機會，從更國際化的品牌到我們的 Sam & Libby 的成長，在我們的 Sam Edelman 品牌中。在 Allen Edmonds，他們擁有特定的批發機會。我認為，隨著我們的前進，他們所有人都擁有巨大的數位機會。因此，進入 2024 年，我們正在尋找所有這些手段來刺激成長。

In our brand portfolio, our net sales were down negative 0.8%. And that improved sequentially, where we were down 7% in the second quarter, and even more in the first quarter. So we really are starting to see a very -- move to a new normal here, and I think a place where we can really start to grow again. And I'm impressed, Abby, by the brands' ability to take market share in this environment. And that'll be a continued focus as we go forward.

在我們的品牌組合中，我們的淨銷售額下降了 0.8%。這種情況隨後有所改善，第二季下降了 7%，第一季下降幅度更大。因此，我們確實開始看到這裡進入了一種新常態，我認為我們可以真正開始再次成長。艾比，這些品牌在這種環境下佔據市場份額的能力給我留下了深刻的印象。這將是我們前進過程中持續關注的焦點。

Awesome, very helpful. Thank you.

太棒了，非常有幫助。謝謝。

Thanks, Abby.

謝謝，艾比。

(Operator Instructions) Mitchel Kummetz, Seaport Research.

（操作員指令）Mitchel Kummetz，海港研究中心。

Yes, thanks for taking my questions. I guess, at first, just wanted to better understand how to think about, like, Famous Footwear comp holistically. Because it sounds like in the third quarter, back-to-school was good, that's a peak shopping period. And then September and October were difficult, some of that being due to the seasonal side of the business. And then for 4Q, it sounds like it started, we just gotten better.

是的，感謝您回答我的問題。我想，一開始只是想更好地理解如何整體思考 Famous Footwear comp 等。因為聽起來第三季返校情況不錯，那是購物高峰期。然後九月和十月就很困難，部分原因是業務的季節性因素。然後到了第四季度，聽起來好像開始了，我們變得更好了。

So are you thinking that, like, similar to 3Q, that your business at Famous will be pretty good around holiday because it's a must need shopping period, but then, like, once we get through that, in January, you'll be soft again because you're post-peak shopping. Is that how holistically we think about the business? People showing up during these key periods, but then, given the macro challenges, business in between is pretty tough?

那麼，您是否認為，與 3Q 類似，您在 Famous 的生意在假期期間會非常好，因為這是必須需要的購物期，但是，一旦我們度過了這個時期，一月份，您就會變得軟弱再次因為您是在高峰期後購物。這就是我們對業務的整體思考嗎？人們在這些關鍵時期出現，但考慮到宏觀挑戰，這段期間的生意相當艱難？

Yeah, I think, Mitch -- hi, it's Jay, I think you've got it mostly right. I think that's basically how we -- how third quarter played out and how we feel about fourth quarter. We were reacting to and did react to all of the key trending products that really were identified by the consumer as being really important to them and are in good position on them on an item and SKU strength. So that's really been our focus as we go into fourth quarter. And then we'll see about January. The one thing I will say is that this is continually on a changing environment, we're watching it very much in real time. But I would say that's pretty much how we see it.

是的，我想，米奇——嗨，我是傑伊，我想你說得基本上正確。我認為這基本上就是我們第三季的表現以及我們對第四季的感受。我們正在對所有主要趨勢產品做出反應，並且確實對這些產品做出了反應，這些產品確實被消費者認為對他們來說非常重要，並且在商品和 SKU 強度方面處於有利位置。因此，當我們進入第四季度時，這確實是我們的重點。然後我們再看看一月份的情況。我要說的一件事是，這是在不斷變化的環境中，我們正在即時觀察它。但我想說，我們就是這麼看的。

And then on brand portfolio. We just came out of vendor earnings season last month, and a lot of the vendor-specific companies talked about challenges around reorders and spring order books, and there was a lot of guidance that was taken down. That's a very different story than what you guys are telling on BP.

然後是品牌組合。上個月我們剛結束供應商財報季，許多特定供應商的公司都談到了有關重新訂購和春季訂單的挑戰，並且有很多指導被取消。這與你們在 BP 上講述的故事截然不同。

So maybe just elaborate on, like, why are you guys seeing such strength? It sounds like you're taking market share. Why do you think you're taking share? Is it that you guys are in some favorable categories? Or is some of it the competitive advantage of the speed program? Like, why is it that your brands are holding up better than what, at least my impression was, coming out of vendor earnings season, where numbers were coming down and there was a lot of negativity around replenishment, [that one], and future orders, things like that?

所以也許只是詳細說明一下，例如，為什麼你們看到如此強大的力量？聽起來你正在搶佔市場。你認為為什麼要分享份額？難道你們屬於某些有利的類別嗎？或者其中一部分是速度計劃的競爭優勢？例如，為什麼你們的品牌比供應商財報季結束後的表現更好，至少在我的印像中，數字下降，補貨、[那個]和未來存在很多負面情緒命令之類的？

So I think, for myself, I'll begin, I think our speed to market, which was outlined, really allowed us to capitalize on key market trends. And as I reported last second quarter and into Investor Day, we saw, really, the fashion sneaker business really take off, as it was going from early spring to late spring. And we really positioned ourselves, going into third quarter, with a big play there. And that did work across our portfolio really nicely and gave us a nice lift.

因此，我認為，就我自己而言，我將開始，我認為我們所概述的上市速度確實使我們能夠利用關鍵的市場趨勢。正如我在去年第二季度和投資者日報道的那樣，我們確實看到，時尚運動鞋業務真正起飛，因為它從早春到晚春。進入第三季度，我們確實定位了自己，並在那裡發揮了重要作用。這確實在我們的投資組合中發揮了很好的作用，為我們帶來了很大的提升。

We're going to see similar trends, I believe, as we look at the key categories of these casual flats, new low heel dress, and other items as we go into first quarter. And those are all on reorder for that time period. So I would say, in a broad-based way, Mitch, it really is this really -- staying very close to a consumer, utilizing our speed program. And also, the really strong inventory management has allowed us to maintain our flexibility and agility in really going after this and feeding it. I think the brand work that people have done has been really strong and the lead brands are continuing to perform there.

我相信，當我們在進入第一季時審視這些休閒平底鞋、新低跟連身裙和其他商品的關鍵類別時，我們將看到類似的趨勢。這些都在該時間段內重新訂購。所以我想說，米奇，從廣義上講，這確實是這樣——利用我們的速度計劃，與消費者保持非常密切的關係。而且，真正強大的庫存管理使我們能夠保持我們的靈活性和敏捷性，真正追求這一點並提供它。我認為人們所做的品牌工作非常強大，領先品牌將繼續在那裡發揮作用。

And then the last thing I would say is just that so much of our business -- really, it's close to 50%, is really in what I would call this dynamic model. So between our dropship ability, our own DTC, and our replenishment programs, we're really seeing some really nice return there in working all the way through on that. And that goes across the portfolio. So we're staying really close to consumer trends, really working well with everybody. But again, our model is fluid, and I think it's benefiting us in this time that we're in.

我要說的最後一件事是，我們的大部分業務——實際上，接近 50%，實際上是在我所說的動態模型中。因此，在我們的直運能力、我們自己的 DTC 和我們的補貨計劃之間，我們確實看到了一些非常好的回報，因為我們一直在努力。這貫穿整個投資組合。因此，我們非常貼近消費者趨勢，與每個人都很好地合作。但同樣，我們的模型是流動的，我認為它在我們所處的時代使我們受益。

And then I guess the last one for me, you mentioned a return to growth in 2024. Can you just provide me with some more color? I know you're not giving 2024 guidance, but a little color as to what exactly that means. Does that mean top-line growth for both Famous and BP? It sounds like there's an opportunity on the expense side, like -- and then maybe on the margins. I don't know, Jack, like, you guys are definitely benefiting from freight right now. I don't know when that -- year anniversary of that, and it runs out as a tailwind.

然後我想對我來說最後一個問題是，您提到 2024 年將恢復增長。您能給我更多的資訊嗎？我知道您並沒有給出 2024 年的指導，只是稍微說明一下這到底意味著什麼。這是否意味著 Famous 和 BP 的營收都會成長？聽起來好像在費用方面有機會，例如——然後可能是在利潤方面。我不知道，傑克，你們現在肯定從貨運中受益。我不知道那一年是什麼時候，它就像順風一樣消失了。

Well, I think first of all, going back to our Investor Day model, we did say that more growth was going to come out of our lead brands as we move into 2024. And that, I think, continues with some of the key strategies that were outlined there. And then going forward, we do see a return to more moderate growth as we lean into a lot of the things that are working right now, and what we're doing with Kids and Famous and the family and other places. But that growth will be more moderate. So that's -- I think we're still very, very focused on that whole part of the play.

好吧，我認為首先，回到我們的投資者日模型，我們確實說過，隨著我們進入 2024 年，我們的領先品牌將會實現更多成長。我認為，一些關鍵策略將繼續在那裡概述了這些內容。然後展望未來，隨著我們專注於許多目前正在發揮作用的事情，以及我們在兒童、名人、家庭和其他地方所做的事情，我們確實會看到經濟恢復到更溫和的成長。但這種成長將更加溫和。所以我認為我們仍然非常非常專注於整部劇。

And then the piece on, really, margin, too, is that we really are -- when we looked at it, we're seeing a nice benefit from our internal -- our initial margins and the flow through all the way coming out of that from really great management, straight through the business. So we do see a lot of that returning. And then the last part is that as we continue to grow the lead brands out of our portfolio, we're going to see a lot of that margin come out more strongly as the mix shifts.

然後，實際上，關於利潤率的部分是，我們確實 - 當我們看到它時，我們看到我們的內部帶來了很好的好處 - 我們的初始利潤率和一路走來的流量這來自於真正優秀的管理，直接貫穿業務。所以我們確實看到很多這樣的人回來了。最後一部分是，隨著我們繼續將領先品牌從我們的產品組合中發展出來，我們將看到隨著組合的變化，許多利潤會變得更加強勁。

Yeah, and just to just add to Jay's comments, I think, also, we have the continued inventory management. We're looking for improved turns that drives oftentimes lower markdown expense, which improves margin. And then just the mix of channels as well, with DTC growing faster. Certainly, in the brand portfolio business, DTC is a higher margin business than our traditional wholesale business.

是的，只是補充傑伊的評論，我認為我們還有持續的庫存管理。我們正在尋找改進的周轉，通常可以降低降價費用，從而提高利潤率。然後就是通路的混合，DTC 成長得更快。當然，在品牌組合業務中，DTC是比我們傳統批發業務利潤率更高的業務。

Alright, thanks. Good luck for holidays.

好的，謝謝。祝假期好運。

Thanks, you too.

也謝謝你。

Laura Champine, Loop Capital Markets.

勞拉·尚平 (Laura Champine)，Loop 資本市場。

Thanks for taking my question. I wanted to get a little more color on how Nike is performing inside Famous Footwear. And also, how your owned brands are performing inside Famous Footwear.

感謝您提出我的問題。我想多了解 Nike 在 Famous Footwear 的表現。此外，您的自有品牌在 Famous Footwear 的表現如何。

Hi, Laura, it's Jay. As far as Nike, we see, in our total business, it pretty much was similar to how Famous did perform in the quarter. What we did see is strength out of Nike in those retro and court-inspired sport shoes. Our Kids business was very strong. Our Performance business was a little on the softer side, and particularly in the Men's part of Performance. So that's how I would say that summed up there. And then some we did see, again, all the -- that kind of retro sport-type of product continue to perform from all of the key athletic brands.

嗨，蘿拉，我是傑伊。就 Nike 而言，我們看到，在我們的整體業務中，它與 Famous 在本季度的表現非常相似。我們確實看到了耐吉在這些復古和球場風格運動鞋中的實力。我們的兒童業務非常強勁。我們的表演業務有點疲軟，特別是在男子表演部分。這就是我想說的總結。然後，我們確實再次看到，所有主要運動品牌都繼續表現出這種復古運動型產品的表現。

Over to our Caleres brands, we saw them actually perform better than the total Famous performance. And that's really come from a key focus on that area and really working there. We did put someone in charge of that entire buying responsibility at Famous, who came from the brand portfolio, knows it very well. So we're seeing some of that start through. Again, it's a small part toward total right now, but that growth trajectory that we outlined at Investor Day, going from 6% to 10%, seems to be well on track right now.

至於我們的 Caleres 品牌，我們發現它們的表現實際上比 Famous 的整體表現更好。這確實來自於對該領域的重點關注並在那裡進行了真正的工作。我們確實在 Famous 安排了專人負責整個採購職責，他來自品牌組合，非常了解這一點。所以我們看到其中一些已經開始。再說一遍，目前這只是總量的一小部分，但我們在投資者日概述的成長軌跡（從 6% 到 10%）目前似乎已步入正軌。

Got it, thank you.

收到了。謝謝。

Thank you.

謝謝。

Thank you. We have reached the end of our question-and-answer session. I'd like to turn the floor back over to Jay for any further or closing comments.

謝謝。我們的問答環節已經結束。我想將發言權交還給傑伊，以徵求進一步的意見或結束意見。

Hi, before we close today, I'd like to thank the talented Caleres team for their focus, their hard work, and their dedication. We remain confident in our ability to close 2023 in a strong position, poised to execute on our long-term strategies.

大家好，在今天結束之前，我要感謝才華橫溢的 Caleres 團隊的專注、辛勤工作和奉獻精神。我們對在 2023 年結束時保持強勢地位充滿信心，並準備好執行我們的長期策略。

As we look ahead, we believe the stage is set for us to continue to create exceptional product, to exceed our consumers' expectations in this dynamic marketplace, and to drive significant value for our shareholders. Thank you for your interest in Caleres and best wishes on a happy, healthy, and safe holiday season. We look forward to seeing many of you at the ICR Conference in January.

展望未來，我們相信我們已經做好了準備，繼續創造卓越的產品，在這個充滿活力的市場中超越消費者的期望，並為股東創造巨大的價值。感謝您對卡萊雷斯的關注，並祝您節日快樂、健康、安全。我們期待在一月份的 ICR 會議上見到你們。

Thank you. That does conclude today's teleconference and webcast. You may disconnect your line at this time and have a wonderful day. We thank you for your participation today.

謝謝。今天的電話會議和網路廣播到此結束。此時您可以斷開線路並度過美好的一天。我們感謝您今天的參與。