Chico's FAS Inc (CHS) 2018 Q4 法說會逐字稿

Good morning, and welcome to the Chico's FAS Fourth Quarter 2018 Earnings Conference Call. (Operator Instructions)

早上好，歡迎參加 Chico 的 FAS 2018 年第四季度收益電話會議。（操作員說明）

I would now like to turn the conference over to Julie Lorigan, Vice President of Investor Relations, Public Relations and Corporate Communications. Ms. Lorigan, please go ahead.

現在我想將會議交給投資者關係、公共關係和企業傳播副總裁朱莉·洛里根 (Julie Lorigan)。洛里根女士，請繼續。

Thanks, Anita, and good morning, everyone. Welcome to Chico's FAS's fourth quarter 2018 earnings conference call and webcast. Joining me today at our National Store Support Center in Fort Myers are Shelley Broader, our Chief Executive Officer; and Todd Vogensen, our Chief Financial Officer.

謝謝安妮塔，大家早上好。歡迎參加 Chico 的 FAS 2018 年第四季度收益電話會議和網絡廣播。今天與我一起來到位於邁爾斯堡的國家商店支持中心的是我們的首席執行官 Shelley Broader；以及我們的首席財務官托德·沃根森 (Todd Vogensen)。

Our earnings release issued today can be found on our website at www.chicosfas.com under Investor Relations, Press Release.

我們今天發布的收益報告可以在我們的網站 www.chicosfas.com 的“投資者關係、新聞稿”下找到。

Let me caution you that today's comments will include forward-looking statements about our current expectations, assumptions, plans, estimates, judgments and projections about our business and our industry, which speak only as of today's date. You should not unduly rely on forward-looking statements. Important factors that could cause actual results or events to differ materially from those projected or implied by our forward-looking statements are included in our earnings release issued this morning and our SEC filings and in the comments that are made on this call. We disclaim any obligation to update or revise any information discussed in this call, except as may be otherwise required by law.

讓我提醒您，今天的評論將包括有關我們當前對我們的業務和行業的預期、假設、計劃、估計、判斷和預測的前瞻性陳述，這些陳述僅截至今天。您不應過度依賴前瞻性陳述。可能導致實際結果或事件與我們的前瞻性陳述中預測或暗示的結果或事件存在重大差異的重要因素包含在我們今天上午發布的收益報告、我們向 SEC 提交的文件以及本次電話會議中發表的評論中。除非法律另有要求，否則我們不承擔更新或修改本次電話會議中討論的任何信息的義務。

And with that, I'll turn it over to Shelley.

有了這個，我會把它交給雪萊。

Thank you, Julie, and good morning, everyone. Brand performance for the company over the past year was mixed. We achieved strong results at Soma and improved trend at White House Black Market. However, these gains were not enough to offset the challenges we experienced at Chico's in the back half of the year.

謝謝朱莉，大家早上好。過去一年該公司的品牌表現好壞參半。我們在 Soma 取得了強勁成果，並改善了白宮黑市的趨勢。然而，這些成果並不足以抵消我們下半年在奇科經歷的挑戰。

Importantly, however, the improvement plan we put in place at Chico's last quarter is taking hold. And as you saw from our release, we achieved sequential improvement in comparable sales across all 3 of our brands in the fourth quarter. With work continuing across the company and at each of our brands, we believe we are better positioned heading into the new fiscal year.

然而，重要的是，我們在奇科上個季度實施的改進計劃正在落實。正如您從我們的發布中看到的那樣，我們所有 3 個品牌的可比銷售額在第四季度都實現了連續改善。隨著整個公司和每個品牌的工作繼續進行，我們相信我們在進入新財年時處於更好的位置。

This morning, I will review the actions underway at each of our brands and provide an update on the initiatives we are implementing across the company. Our goal is to ensure that we are best positioned to grow our brands and enhance the value as an efficient, effective, agile organization with robust omnichannel capabilities.

今天早上，我將回顧我們每個品牌正在採取的行動，並提供我們在整個公司實施的舉措的最新情況。我們的目標是確保我們作為一個具有強大全渠道能力的高效、有效、敏捷的組織，能夠最好地發展我們的品牌並提高價值。

Starting first with Chico's. We are aggressively working to improve the performance of our Chico's brand. Recent adjustments made to planning and allocation strategies for basics and top key items have improved in-stock availability, which, in combination with repositioned marketing and promotion, helped to drive the sequential increase in comparable sales in the fourth quarter.

首先從 Chico 開始。我們正在積極努力提高 Chico 品牌的表現。最近對基礎商品和最關鍵商品的規劃和分配策略進行的調整提高了庫存供應量，再加上重新定位的營銷和促銷，有助於推動第四季度可比銷售額的環比增長。

In marketing, a key focus is on reactivating lapsed customers, as we rebalance our visuals, in-store presentations and prints messages between fun and colorful or boho and polished classic merchandise. We are targeting and personalizing our messages to the appropriate customer segment.

在營銷方面，重點是重新激活流失的客戶，因為我們在有趣和豐富多彩或波西米亞風和精美的經典商品之間重新平衡我們的視覺效果、店內展示和印刷信息。我們正在針對適當的客戶群來定位和個性化我們的信息。

And in product, we have also adjusted the spring and summer assortment at Chico's to more appropriately balanced merchandise architecture, reduce planned receipts and chase merchandise that is performing well. Strategies to further improve product aesthetic and architecture are well underway for fall deliveries, which we expect to be elevated and trend right for all of our customers.

而在產品上，我們也調整了Chico's的春夏品種，更加合理地平衡商品結構，減少計劃收入，追逐表現好的商品。進一步改善產品美學和架構的策略正在順利進行，秋季交付的產品將得到提升，並適合我們所有客戶的趨勢。

To further advance these efforts, we are pleased to announce this morning that Karen McKibbin will be joining us as Chico's new brand President. Karen is a 30-year veteran in the retail industry. Having spent most of her career at Nordstrom, she knows firsthand how important beautiful product and premier customer service are to building brand loyalty. At Chico's, our service has been our longstanding competitive differentiator. And we look forward to leveraging Karen's expertise and insights as we build our brand position. Karen also brings a reputation for high standards and a record of profitable growth in the stores and operating divisions in which she has led. We expect her experience in merchandising, operations and store planning to significantly contribute to the work underway at Chico's and to be a strong complement to our executive committee.

為了進一步推進這些努力，我們今天早上很高興地宣布，Karen McKibbin 將加入我們，擔任 Chico 的新品牌總裁。Karen 是零售行業 30 年的資深人士。她的大部分職業生涯都在 Nordstrom 度過，她親身了解精美的產品和優質的客戶服務對於建立品牌忠誠度有多麼重要。在 Chico's，我們的服務一直是我們的長期競爭優勢。我們期待利用凱倫的專業知識和見解來建立我們的品牌地位。凱倫還為她領導的商店和運營部門帶來了高標準的聲譽和盈利增長的記錄。我們希望她在推銷、運營和商店規劃方面的經驗能夠為 Chico's 正在進行的工作做出重大貢獻，並成為我們執行委員會的有力補充。

Now turning to White House Black Market. We have continued to make progress in refining the brand's polished workwear and polished casual merchandise assortments to better meet customers' expectations. The combination of value and fashion drove stronger traffic in-store and online and contributed to the sequential improvement in sales. What's more, in the fourth quarter, we saw an increase in both new and reactivated customers in our e-commerce business, validating the progress we are making on the brand repositioning work we have underway.

現在轉向白宮黑市。我們在完善該品牌的拋光工作服和拋光休閒商品品種方面不斷取得進展，以更好地滿足客戶的期望。價值與時尚的結合推動了店內和線上的客流量增長，並促進了銷售額的環比改善。更重要的是，在第四季度，我們的電子商務業務中的新客戶和重新激活的客戶都有所增加，驗證了我們正在進行的品牌重新定位工作所取得的進展。

We continue to see our customers respond favorably to fashion, and we have increased penetration in fashion items as part of our overall assortment. For the quarter, we saw strength in our more effective outfits during the holiday season, including velvet and metallic, with our more transitional wear now clothing being received well as we began the new year. As we move forward, we'll continue to diversify our options, both from a trend and price direction and increase our penetration in polished casual to make sure that we reach all White House Black Market customers.

我們繼續看到客戶對時尚的反應良好，並且我們增加了時尚產品的滲透率，作為我們整體產品系列的一部分。在本季度，我們在節日期間看到了更有效的服裝的優勢，包括天鵝絨和金屬色，隨著新年的開始，我們的過渡性服裝受到了好評。隨著我們的前進，我們將繼續使我們的選擇多樣化，無論是趨勢還是價格方向，並提高我們在精緻休閒裝領域的滲透率，以確保我們接觸到所有白宮黑市客戶。

Moving to Soma. We are very pleased with the continued strong performance. Our unique solutions are driving customer enthusiasm and solid growth. Soma reported positive comparable sales of 6.2% in the fourth quarter, the best performance in 15 quarters, ending the year in positive territory. This better-than-expected increase is primarily driven by our innovative solution bras and the holiday performance of sleepwear.

搬到索馬。我們對持續強勁的表現感到非常高興。我們獨特的解決方案正在推動客戶的熱情和穩健的增長。Soma 報告稱，第四季度可比銷售額增長 6.2%，為 15 個季度以來的最佳表現，年終實現正增長。這一好於預期的增長主要是由我們的創新解決方案胸罩和睡衣的假日表現推動的。

In January, the brand successfully launched SOMAINNOFIT, which uses a revolutionary way to help women find their optimal bra fit and curate the Soma assortment through a mobile app. Customers continue to provide positive feedback around this innovative technology, which is modernizing the fit experience, both at home and in our boutiques with a Soma fit expert. This is in line with our emphasis on training and certifying store associates, so that we provide great fit experiences.

一月份，該品牌成功推出了 SOMAINNOFIT，它採用革命性的方式幫助女性找到最合適的胸罩，並通過移動應用程序策劃 Soma 產品系列。客戶不斷對這項創新技術提供積極的反饋，該技術正在通過 Soma 健身專家在家里和我們的精品店實現現代化的健身體驗。這符合我們對店員培訓和認證的重視，以便我們提供出色的合身體驗。

During the quarter, our PJ Bar in-store is performing very well as our customers responded favorably to the mix-and-match options. Given this response, we're planning to do the same thing with our bra and panty assortment. In addition to sending out mailers that demonstrate how many choices we offer to customer, we have an -- we have in-store style boards that show all the colors you can get in any one style. And they're also testing digital screens. As always, we're committed to providing our customers with plenty of options to look and feel her best.

本季度，我們店內的 PJ Bar 表現非常出色，客戶對混搭選項反應良好。鑑於這種反應，我們計劃對我們的胸罩和內褲系列做同樣的事情。除了發送郵件來展示我們為客戶提供的多種選擇外，我們還有店內款式板，可以顯示您可以在任何一種款式中獲得的所有顏色。他們還在測試數字屏幕。一如既往，我們致力於為客戶提供多種選擇，讓他們看起來和感覺最好。

We have a number of products launching in the first quarter. Last week, we introduced 2 new Enbliss style bras and 3 new Enbliss matching panties. We are also rolling out a new marketing campaign called UNDERPOWER, which celebrates diverse women of all sizes and ages feeling powerful in Soma products and returning to TV to broadly share our message. We're investing in our Soma business, enthusiastic about what's on deck and proud of what the team has achieved.

我們在第一季度推出了許多產品。上週，我們推出了 2 款新款 Enbliss 風格文胸和 3 款新款 Enbliss 配套內褲。我們還推出了一項名為“UNDERPOWER”的新營銷活動，旨在慶祝各種身材和年齡的不同女性在 Soma 產品中感受到力量，並重返電視廣泛分享我們的信息。我們正在投資 Soma 業務，對現有業務充滿熱情，並為團隊取得的成就感到自豪。

To deliver sustainable growth and value creation in today's retail environment, we know that we need to be lean, agile and equipped with robust omnichannel capabilities that allow us to serve our customers however, wherever and whenever she wants. With the integration of digital and physical, we have a tremendous opportunity to win, as customers have the resources to shop on their terms.

為了在當今的零售環境中實現可持續增長和價值創造，我們知道我們需要精益、敏捷並配備強大的全渠道能力，以便我們能夠隨時隨地為客戶提供服務。隨著數字和實體的融合，我們有巨大的獲勝機會，因為客戶擁有按照自己的方式購物的資源。

Let me share an update on the actions we're taking in these areas, starting with fleet optimization. As previously announced, we intend to close at least 250 stores in the U.S. over the next 3 years, as we no longer need the same physical store footprint to serve our customers, particularly given the investments we have made in our omni capabilities. In this morning's press release, we announced the number of stores we plan to close by brand. Specifically, we expect to close approximately 100 Chico's stores, 90 White House Black Market stores and 60 Soma locations, with the majority of the closings occurring in years 2 and 3.

讓我分享一下我們在這些領域採取的行動的最新情況，首先是機隊優化。正如之前宣布的，我們打算在未來 3 年內關閉美國至少 250 家商店，因為我們不再需要相同的實體店足跡來服務我們的客戶，特別是考慮到我們在全方位能力方面進行的投資。在今天早上的新聞稿中，我們按品牌公佈了計劃關閉的商店數量。具體來說，我們預計將關閉約 100 家 Chico's 商店、90 家白宮黑市商店和 60 家 Soma 商店，其中大部分關閉發生在第 2 年和第 3 年。

For Soma, while we are closing underperforming stores, we are also testing new formats in a variety of additional locations that will drive stronger and more profitable sales growth.

對於 Soma 來說，我們在關閉表現不佳的商店的同時，還在多個其他地點測試新的業態，這將推動更強勁、更有利可圖的銷售增長。

In fiscal 2019, we expect approximately 60 to 80 store closings. The closings will be across all of our brands and weighted to the second half of the fiscal year. As a result of this timing, we expect minimal impact on sales and earnings in fiscal 2019. We have a strong track record of absorbing sales from closed stores in other locations and online, and we will continue to build on that. In addition, the full rollout of Style Connect and virtual stylist will also contribute to healthier sales.

2019 財年，我們預計將關閉大約 60 至 80 家商店。關閉將涉及我們所有品牌，並加權到本財年下半年。由於這一時機，我們預計對 2019 財年的銷售和收益影響最小。我們在吸收其他地點和網上已關閉商店的銷售方面擁有良好的記錄，我們將繼續在此基礎上繼續發展。此外，Style Connect和虛擬造型師的全面推出也將有助於更健康的銷售。

To identify additional opportunities to enhance our capabilities and improve effectiveness, we announced an operating review in January. As we fully embrace our omnichannel capabilities, we recognize the need to have the right operating structure in place in order to execute our business at the lowest cost. We are working with outside consultants to help us on this front.

為了尋找更多機會來增強我們的能力和提高效率，我們在一月份宣布了一項運營審查。當我們充分利用我們的全渠道能力時，我們認識到需要建立正確的運營結構，以便以最低的成本執行我們的業務。我們正在與外部顧問合作，在這方面為我們提供幫助。

As part of this work, we have not only identified opportunities for meaningful annualized cost savings, but real ways to be more efficient in sourcing and supply chain. This includes continued rationalization of our vendor base and diversifying our country of origin, building efficiencies in our raw material processes and optimizing our distribution channel and ship from store. Our operating review is well underway, and we are committed to effectively executing to those findings.

作為這項工作的一部分，我們不僅找到了有意義的年度成本節省的機會，而且找到了提高采購和供應鏈效率的真正方法。這包括持續合理化我們的供應商基礎、實現原產國多元化、提高原材料流程效率以及優化我們的分銷渠道和從商店發貨。我們的運營審查正在進行中，我們致力於有效執行這些調查結果。

Other areas under evaluation include marketing, shared services and all customer touch points. In marketing, we're examining personalization, mix and effectiveness of spend. In shared services, we believe there are opportunities for process improvement and in realigning our organizational structure to eliminate overlapping activity. In customer touch point, we are examining how we allocate and compensate our omni sales force in order to drive sales. These multi-year efforts will benefit us beyond the current fiscal year.

其他接受評估的領域包括營銷、共享服務和所有客戶接觸點。在營銷方面，我們正在研究支出的個性化、組合和有效性。在共享服務中，我們相信有機會改進流程並調整我們的組織結構以消除重疊的活動。在客戶接觸點，我們正在研究如何分配和補償我們的全方位銷售人員以推動銷售。這些多年的努力將使我們在本財年之後受益。

Now turning to omnichannel integration. Investing in strong omni capabilities has long been a priority, and our success in this area has enabled us to be confident in our fleet optimization and in our ability to continue delivering a seamless experience for our customers. As we have stated before, over 90% of our customers are in our loyalty program. So in addition to providing her with many options to shop with us, we also want to maintain a personal connection with our customers. To do this, we remain on track to roll out Style Connect, an enhanced platform that provides digitized clienteling tools to all stores in the first quarter of 2019.

現在轉向全渠道整合。長期以來，投資強大的全向能力一直是我們的首要任務，我們在這一領域的成功使我們對機隊優化以及繼續為客戶提供無縫體驗的能力充滿信心。正如我們之前所說，超過 90% 的客戶都加入了我們的忠誠度計劃。因此，除了為她提供多種購物選擇外，我們還希望與客戶保持個人聯繫。為此，我們將繼續推出 Style Connect，這是一個增強的平台，可在 2019 年第一季度向所有商店提供數字化客戶服務工具。

We are also piloting virtual stylists across 8 U.S. markets. Our virtual stylists are working remotely and have been trained on Style Connect and are operating under a customized sales compensation plan. The market selected vary by size, proximity to sister store and are in both urban and rural settings. We will update you on our learnings and plans to roll out this program going forward.

我們還在美國 8 個市場試點虛擬造型師。我們的虛擬造型師正在遠程工作，並接受過 Style Connect 培訓，並根據定制的銷售補償計劃進行操作。所選擇的市場因規模、與姐妹店的距離遠近而異，並且分佈在城市和農村地區。我們將向您通報我們的最新進展以及未來推出該計劃的計劃。

Our implementation plan for BOPIS, buy online and pick up in store, is also progressing nicely, and we're on track to go live with select store locations in the second quarter. The addition of BOPIS closes the loop in our customer journey as we leverage our shared inventory, our locate tool, which enables us to ship in store or directly to the customer and our personalized styling. We continue to invest in technology, and this additional capability strengthens our omni platform with the integration of our physical and digital network to better serve our customers.

我們的 BOPIS 實施計劃（網上購買、店內提貨）也進展順利，我們有望在第二季度在選定的商店地點上線。BOPIS 的加入使我們的客戶旅程形成了閉環，因為我們利用了共享庫存、定位工具（使我們能夠在商店內發貨或直接向客戶發貨）以及我們的個性化造型。我們繼續投資於技術，這種額外的能力通過整合我們的物理和數字網絡來加強我們的全方位平台，以更好地為我們的客戶服務。

Looking forward, we do expect 2019 to be a building year and for performance to ramp accordingly as the year progresses. I'm confident that the actions underway at our brand and at the corporate level will also enable Chico's FAS to compete, succeed and drive value creation over the long term.

展望未來，我們確實預計 2019 年將是建設性的一年，業績將隨著這一年的進展而相應提升。我相信，我們的品牌和企業層面正在採取的行動也將使 Chico 的 FAS 能夠長期競爭、取得成功並推動價值創造。

Now I'll turn the call over to Todd to review our financials and our outlook for '19.

現在我將把電話轉給托德，以審查我們的財務狀況和 19 年的前景。

Thanks, Shelley, and good morning, everyone. Before we begin, our comments and discussion of fourth quarter and full year 2018 financial results will be on an adjusted or a non-GAAP basis. You'll find the GAAP to non-GAAP reconciliation schedule included with our press release issued this morning.

謝謝雪萊，大家早上好。在我們開始之前，我們對 2018 年第四季度和全年財務業績的評論和討論將基於調整後或非 GAAP 基礎。您會發現我們今天早上發布的新聞稿中包含了 GAAP 與非 GAAP 調節表。

With that, we recorded comparable sales for the fourth quarter down 3.8%, in line with our outlook provided in January. The sequential improvement in top line sales and comparable sales was driven by strength in e-commerce, which increased mid-double-digits compared to last year's fourth quarter.

因此，我們第四季度的可比銷售額下降了 3.8%，與我們 1 月份提供的預期一致。頂線銷售額和可比銷售額的連續改善是由電子商務的強勁推動的，與去年第四季度相比，電子商務增長了中兩位數。

For the full year, our e-commerce penetration stands at approximately 26%, up from 22% last year. We believe our ongoing investment in our omnichannel platform will continue to fuel healthy growth in this channel.

全年電子商務滲透率約為 26%，高於去年的 22%。我們相信，我們對全渠道平台的持續投資將繼續推動該渠道的健康增長。

Moving to the bottom line. We reported fourth quarter adjusted net loss per share of $0.07, which excludes the impairment and accelerated depreciation charges related to store closures.

移動到底線。我們報告第四季度調整後每股淨虧損為 0.07 美元，其中不包括與關閉商店相關的減值和加速折舊費用。

Merchandise margin in the quarter declined, which moved us off of our positive trend. However, we took a more aggressive posture in promotional activities at the Chico's brand in order to move seasonal goods. We exited the year with clean on-hand inventory down 7% to last year.

本季度的商品利潤率下降，這使我們偏離了積極的趨勢。然而，我們在奇科品牌的促銷活動中採取了更積極的姿態，以轉移季節性商品。今年結束時，我們的現有庫存比去年下降了 7%。

Overall gross margin was down 550 basis points, slightly higher than our expectations. This was primarily due to the impact of clearing additional Chico's brand merchandise, cost related to the expansion of our omnichannel programs and deleverage of occupancy cost.

整體毛利率下降 550 個基點，略高於我們的預期。這主要是由於清算額外的 Chico 品牌商品的影響、與我們的全渠道計劃擴張相關的成本以及佔用成本的去槓桿化。

Moving to SG&A expenses. Fourth quarter SG&A was in line with expectations, down approximately $11 million compared to last year. This reflects approximately $10 million related to the 53rd week in last year's fourth quarter and a decrease in incentive compensation, partially offset by investment in technology and cost related to outside consultants. On a full year basis, SG&A was approximately flat to last year, as expected.

轉到SG&A 費用。第四季度 SG&A 符合預期，比去年減少約 1100 萬美元。這反映出與去年第四季度第 53 週相關的約 1000 萬美元以及激勵薪酬的減少，部分被技術投資和外部顧問相關成本所抵消。從全年來看，SG&A 與去年基本持平，符合預期。

Our balance sheet remained strong, and we ended the quarter with $186 million in cash and short-term investments and $58 million in debt. We continue to generate strong free cash flow, and we ended the year with free cash flow of $104 million. This marks our 10th consecutive year of generating free cash flow of approximately $100 million or more.

我們的資產負債表依然強勁，本季度末我們擁有 1.86 億美元的現金和短期投資以及 5800 萬美元的債務。我們繼續產生強勁的自由現金流，年終自由現金流為 1.04 億美元。這標誌著我們連續第十年產生約 1 億美元或更多的自由現金流。

We continue to focus our capital expenditures on investments in technology and existing store remodels. In 2018, capital expenditures totaled $54 million.

我們繼續將資本支出集中在技術投資和現有商店改造上。2018年，資本支出總額為5400萬美元。

We closed 14 stores in the fourth quarter. And for the full year 2018, we opened 5 new outlets and closed 47 stores. Where possible, we continue to take advantage of our success in negotiating short-term lease extensions in managing our store closings. We will continue that practice in fiscal 2019 with the 60 to 80 planned store closures announced today as part of our retail fleet optimization plan.

第四季度我們關閉了 14 家商店。2018 年全年，我們新開了 5 家門店，關閉了 47 家門店。在可能的情況下，我們繼續利用我們在短期租約延期談判中取得的成功來管理我們的商店關閉。我們將在 2019 財年繼續這一做法，今天宣布計劃關閉 60 至 80 家商店，作為我們零售店優化計劃的一部分。

In the fourth quarter, we returned $61 million to shareholders through share repurchases and dividends. For the year, we returned nearly $124 million to shareholders. We entered 2019 with approximately $55 million outstanding under our existing share repurchase authorization.

第四季度，我們通過股票回購和股息向股東返還 6100 萬美元。今年，我們向股東返還了近 1.24 億美元。進入 2019 年，根據現有的股票回購授權，我們的未償還餘額約為 5500 萬美元。

Announced last week, our Board of Directors declared a 3% increase to our per share quarterly cash dividend. This represents the ninth annual increase since the dividend was established in 2010.

上週，我們的董事會宣布將每股季度現金股息增加 3%。這是自 2010 年設立股息以來第九次年度增長。

Turning now to our financial outlook for first quarter and full year 2019. For the first quarter of fiscal 2019 compared to last year's first quarter, we expect a mid- to high single-digit decline in total sales and consolidated comparable sales, reflecting softness in our business throughout the month of February; gross margin as a percent of sales to decline approximately 300 to 400 basis points due primarily to incremental cost associated with our omnichannel programs and deleverage of fixed cost from lower sales; and our SG&A dollars to be approximately flat, reflecting savings in the Chico's brand, offset by investments in Soma marketing.

現在轉向我們對 2019 年第一季度和全年的財務展望。與去年第一季度相比，我們預計 2019 財年第一季度的總銷售額和合併可比銷售額將出現中高個位數下降，反映出整個 2 月份我們業務的疲軟；毛利率佔銷售額的百分比將下降約 300 至 400 個基點，這主要是由於與我們的全渠道計劃相關的增量成本以及銷售額下降帶來的固定成本去槓桿化；我們的 SG&A 美元大致持平，反映了 Chico 品牌的節省，被 Soma 營銷的投資所抵消。

For the full year of fiscal 2019 compared to last year, we expect a low single-digit decline in total net sales and consolidated comparable sales; gross margin as a percent of net sales to be approximately flat to down 50 basis points due to incremental omnichannel costs; SG&A dollars to be approximately flat, reflecting investments in Soma marketing, offset by ongoing cost management; a fiscal 2019 tax rate in the range of 30% to 33%; and capital expenditures of approximately $55 million, primarily driven by technology enhancements and targeted store reinvestments.

與去年相比，2019 財年全年，我們預計總淨銷售額和合併可比銷售額將出現低個位數下降；由於全渠道成本增加，毛利率占淨銷售額的百分比大約持平或下降 50 個基點； SG&A 美元大致持平，反映了對 Soma 營銷的投資，但被持續的成本管理所抵消； 2019財年稅率在30%至33%之間；資本支出約為 5500 萬美元，主要由技術改進和有針對性的商店再投資推動。

Before we move to questions, a few comments on our 2019 capital investment strategy. As Shelley mentioned, we will continue to focus on our omni integration. An important aspect of that includes a replatform of our e-commerce website. With the increasing level of expectations from customers, we need to be more engaging, informative and personalized. We also need to ensure that we have the capacity to handle multiple channels. As such, we're moving to a cloud-based e-commerce system that will be more responsive, offer enhanced search optimization, perform faster with added flexibility and reduce cost over the long run. Work has already begun. And while this is a multiyear effort, we'll keep you updated on our progress and expectations for 2019.

在我們開始提問之前，先對我們 2019 年的資本投資策略發表一些評論。正如雪萊提到的，我們將繼續專注於全方位集成。其中一個重要方麵包括我們電子商務網站的平台重建。隨著客戶期望的不斷提高，我們需要更具吸引力、信息更豐富和個性化。我們還需要確保我們有能力處理多個渠道。因此，我們正在轉向基於雲的電子商務系統，該系統響應速度更快，提供增強的搜索優化，執行速度更快，靈活性更高，並且從長遠來看可以降低成本。工作已經開始。雖然這是一項多年的努力，但我們將隨時向您通報我們 2019 年的進展和期望。

Now I'll turn the call back over to Julie for Q&A.

現在我將把電話轉回給朱莉進行問答。

Thank you, Todd. At this time, we'd be happy to take your questions. I'll turn the call back over to Anita to begin.

謝謝你，托德。目前，我們很樂意回答您的問題。我會將電話轉回給安妮塔開始。

(Operator Instructions) The first question today comes from Susan Anderson with B. Riley FBR.

（操作員說明）今天的第一個問題來自 Susan Anderson 和 B. Riley FBR。

I was wondering on the opportunity with the new cost reductions and the fleet optimization, how does the top savings there compared to what's already been announced? And I guess, how much more savings do you expect? And then also maybe if you could just talk about the Chico's products, so far, for spring. Do you feel it's more balanced now going into spring? I know it's probably been tough with the weather, but have you seen any better consumer response? And I guess, would you expect it to be fully rebalanced and season product improvement?

我想知道新的成本削減和機隊優化的機會，與已經宣布的相比，最大的節省效果如何？我想，您預計還能節省多少？然後也許您可以談談到目前為止 Chico 的春季產品。進入春天，您是否感覺更加平衡？我知道天氣可能很艱難，但您是否看到過任何更好的消費者反應？我想，您是否期望它能夠完全重新平衡並改進產品？

Why don't you take the question?

你為什麼不接受這個問題？

Okay. So first question was on our operational review program. So I -- we had done the first stages. We're probably early to start giving out numbers and time frames and so forth. We're really in that final scoping phase right now. It's fair to say our biggest opportunities are in supply chain and sourcing, which, as you know, the overall lead times for those programs are just a little bit longer. We are going through the rest of the opportunities that we talked about right now to scope them and provide a little bit more context, so look forward to that. But again, we're probably just a little bit early right now.

好的。第一個問題是關於我們的運營審查計劃。所以我——我們已經完成了第一階段。我們可能很早就開始給出數字和時間表等。我們現在確實處於最後的範圍界定階段。可以公平地說，我們最大的機會是在供應鍊和採購方面，正如您所知，這些項目的總體交付時間只是稍微長一點。我們正在研究我們現在討論的其餘機會，以確定它們的範圍並提供更多背景信息，因此請期待。但同樣，我們現在可能還早了一點。

And to address the -- yes, thank you, Susan. And to address the Chico's question, as we talked about before, we were readjusting and not just the balance and mix and architecture of the product, but really the aesthetic of the product, and we had shifted pretty far to that boho side. And what you're seeing in store now is a much better balanced already of product, more focused on our core basics and some of our classic products. And we've seen those improvements underway. And that balanced architecture, you're going to see more and more of that for spring and summer. It's been -- traffic has been soft, but conversion has been up. So she's coming in, she's seeing the product and she's converting in store.

並解決這個問題——是的，謝謝你，蘇珊。為了解決 Chico 的問題，正如我們之前談到的，我們正在重新調整，不僅僅是產品的平衡、組合和架構，而是產品的美學，我們已經遠遠地轉向了波西米亞風格。您現在在商店中看到的產品已經更加平衡，更加註重我們的核心基礎知識和一些經典產品。我們已經看到這些改進正在進行中。這種平衡的架構，在春季和夏季你會看到越來越多的這種情況。流量一直疲軟，但轉化率卻有所上升。所以她進來了，她看到了產品，並在商店裡進行了轉化。

The next question comes from Paul Lejuez with Citi.

下一個問題來自花旗銀行的 Paul Lejuez。

It's Tracy filling in for Paul. I was wondering on the fleet optimization, when you look at the store closure if you could talk about what types of real estate those are in versus the fleet of your stores between lifestyle mall and outlet. And then secondly, if you can give us a little bit more detail on some of the changes that you're testing to the Soma format, that would be great.

特蕾西代替保羅。我想知道關於車隊優化的問題，當您查看商店關閉時，您是否可以談談這些房地產的類型與生活方式購物中心和奧特萊斯之間的商店車隊的類型。其次，如果您能為我們提供有關您正在測試的 Soma 格式的一些更改的更多詳細信息，那就太好了。

Thanks, Tracy. So first on the fleet optimization plan, not surprisingly, as we go through it, we do have more mall-based locations that are on our potential closure list. We continue to work with landlords on those. But just given overall traffic patterns, our customers want to -- wants to be able to drive right up to our store, use it as a destination and have easy access. So inherently, that means lifestyle centers and strip centers tend to be great locations for us. As a good news for us, we really do have very few C locations that are left in the overall portfolio, so we're -- we are looking at the better locations and being able to optimize off of a strong base. And we do have a significant portion of our leases, about 2/3 of our leases that come due over the next 3 years, so that does give us a lot of flexibility as well.

謝謝，特雷西。因此，首先在車隊優化計劃上，毫不奇怪，當我們經歷它時，我們確實有更多基於購物中心的地點在我們的潛在關閉名單上。我們將繼續與房東就這些問題進行合作。但鑑於總體流量模式，我們的客戶希望能夠直接開車前往我們的商店，將其作為目的地並輕鬆訪問。從本質上講，這意味著生活方式中心和脫衣舞中心往往是我們的絕佳地點。對我們來說，一個好消息是，我們的整體投資組合中確實只剩下很少的 C 位置，所以我們正在尋找更好的位置，並能夠在強大的基礎上進行優化。我們確實有很大一部分租約，大約 2/3 的租約將在未來 3 年內到期，因此這也給我們帶來了很大的靈活性。

And how about the outlet centers?

直銷中心怎麼樣？

Yes, for outlets, we -- I -- well, you saw that we added 5 new stores. And really, outlets are on a good trajectory for us, so we're going to be very careful on the outlets and how many we close there. And most of our closures are frontline-dominant.

是的，對於折扣店，我們——我——嗯，你看到我們增加了 5 家新商店。事實上，我們的門店發展勢頭良好，因此我們將非常謹慎地對待門店以及關閉門店的數量。我們的大部分關閉都是在前線進行的。

And on the Soma question, as you know, with all 3 brands, we have the opportunity to use each of the brands to sort of test fundamental ideas that may work in all of our brands. And so we're excited with some of the things that we're doing in Soma, some of the ways that we're using in-store merchandising and some ways to mimic what we've done online. We had a very successful mix-and-match PJ Bar digitally online. And we found that, that digital expression of pajamas allowed people to linger much longer on that website. And so we thought, let's do that same thing and let's have a fully integrated plan and mirror that in store. So we're now testing that pajama bar more of a mix-and-match visual for customers in some test stores. We're trying that as well with panties. And we're also working digitally. As you know, we really believe that it's that intersection of digital and physical, having unbelievable, most amazing personal service that enhance digitally, both for our customers' benefits and for our associates' benefits. And you're starting to see some digital assortment screens in some of our Soma stores as well.

關於 Soma 問題，如您所知，對於所有 3 個品牌，我們有機會使用每個品牌來測試可能適用於我們所有品牌的基本想法。因此，我們對在 Soma 所做的一些事情、我們使用店內銷售的一些方式以及模仿我們在網上所做的一些方式感到興奮。我們在網上舉辦了一個非常成功的混合搭配 PJ 酒吧。我們發現，睡衣的數字表達可以讓人們在該網站上停留更長時間。所以我們想，讓我們做同樣的事情，讓我們有一個完全集成的計劃並在商店中反映出來。因此，我們現在正在一些測試商店中為顧客測試這款睡衣，它更像是一種混合搭配的視覺效果。我們在內褲上也嘗試過這一點。我們也在數字化工作。如您所知，我們堅信，正是數字化與實體化的交匯，提供令人難以置信、最令人驚嘆的個人服務，以數字化方式增強，既為我們的客戶帶來了利益，也為我們的員工帶來了利益。您也開始在我們的一些 Soma 商店中看到一些數字分類屏幕。

The next question comes from Lorraine Hutchinson with Bank of America.

下一個問題來自美國銀行的洛林·哈欽森 (Lorraine Hutchinson)。

I had a question on merchandise margin. I know there are still some omnichannel investments going to the gross margin line, but can you talk a little bit about how you're planning merchandise margin as the year progresses?

我有一個關於商品保證金的問題。我知道仍有一些全渠道投資進入毛利率線，但您能否談談隨著時間的推移，您如何規劃商品利潤率？

Sure. So we've had a lot of good momentum on our merchandise margins. We're optimizing promotions and have been getting good cost savings out of some of the sourcing and in working with our vendor partners. As we look forward into 2019, we're really trying to take a very balanced approach. We had moved through most of that cost savings we had identified before that $30 million to $40 million of sourcing savings, and we're able to achieve that last year. So moving forward, it really will be more focused on promotional intensity. And so it depends a little bit how the year progresses. Obviously, we're very focused on growing sales this year, so that means, from a merchandise margin perspective, we'll be looking for overall flattish to finding areas that we can invest in to drive those sales.

當然。因此，我們的商品利潤率表現強勁。我們正在優化促銷活動，並通過一些採購以及與供應商合作夥伴的合作，節省了大量成本。當我們展望 2019 年時，我們確實在努力採取一種非常平衡的方法。我們已經完成了之前確定的 3000 萬至 4000 萬美元採購節省的大部分成本節約，去年我們就實現了這一目標。因此，展望未來，它確實會更加註重促銷力度。因此，這在一定程度上取決於這一年的進展情況。顯然，我們今年非常注重銷售增長，因此，從商品利潤率的角度來看，我們將尋求整體持平，以尋找可以投資來推動銷售的領域。

And do you feel that your sourcing organization is now optimized?

您認為您的採購組織現在是否得到了優化？

When we look at our review of operations that we're doing, our operating effectiveness review, I think there's ongoing benefit from working with our vendors and sourcing and supply chain. If I look at it, I'm -- I would view that as an area that's never fully done. And so working a lot with how we can frame that up and want to provide a little more detail from -- for you. We'll just update early on what that looks like.

當我們審視我們正在進行的運營審查、運營有效性審查時，我認為與我們的供應商、採購和供應鏈合作會帶來持續的好處。如果我看一下它，我會認為這是一個從未完全完成的領域。因此，我們正在努力研究如何構建這一框架，並希望為您提供更多細節。我們會儘早更新它的樣子。

Yes. I think that's a very exciting area of the business. And one of the things that we've been very clear about, as we talked about this operating review, this is not just a pure cost-cutting effort. This is about capabilities enhancement. So where do we sit today and benchmark our own sourcing performance, our own distribution and logistics performance, our own merchandising performance compared to our peers? And then what would be world-class? What's that gap? And do we need to get there? And then is that -- how is that best done? And so we've seen so much pressure from the consumer on buy now, wear now. We've seen so much change to shared inventory and how we want to move inventory across our system. But I think the idea of continuing to evolve and create great opportunities for our business through supply chain and sourcing is just something that is forever ongoing and really a necessity in this omni environment.

是的。我認為這是一個非常令人興奮的業務領域。當我們談論這次運營審查時，我們非常清楚的一件事是，這不僅僅是純粹的成本削減工作。這是關於能力的提升。那麼，與同行相比，我們今天應該如何衡量我們自己的採購績效、我們自己的分銷和物流績效、我們自己的銷售績效呢？那麼什麼才是世界級的呢？那差距是什麼？我們需要到達那裡嗎？那麼如何最好地做到這一點呢？因此，我們看到消費者對“即買即穿”施加了巨大的壓力。我們已經看到共享庫存以及我們希望如何在系統中移動庫存的巨大變化。但我認為通過供應鍊和採購繼續發展並為我們的業務創造巨大機會的想法是永遠持續的，並且在這個全方位環境中確實是必要的。

(Operator Instructions) The next question comes from Roxanne Meyer with MKM Partners.

（操作員說明）下一個問題來自 MKM Partners 的 Roxanne Meyer。

I just want to follow up first on the store closing program, particularly for Soma. Of your 3 brands, it's obviously your smallest and performing very well. I guess, I was surprised to hear you're closing 60 stores, which is almost 1/4 of your fleet. So just wanted to get a little bit of perspective as to the decision to close so many and how you're thinking about what is the optimal size of that chain longer term.

我只想先跟進商店關閉計劃，特別是 Soma 的關閉計劃。在你們的 3 個品牌中，它顯然是最小的，而且表現非常好。我想，聽到你們要關閉 60 家商店，這幾乎是你們門店數量的 1/4，我感到很驚訝。因此，我只是想了解一下關閉這麼多連鎖店的決定，以及您如何考慮該連鎖店的長期最佳規模是多少。

Thanks for asking, Roxanne. So yes, Soma is growing very well. We're seeing great response to new merchandise at Soma. What we're -- what we've ended up with Soma over time is a chain that grew very fast and in a very low-cost way, in a lot of cases. So in a lot of those locations, we're not where we ultimately want to be. So what we're doing with Soma is testing a lot of different formats. So you could see different sizes, different product, whatever. And we want to make sure that we get that overall format set and have the ability to have flexibility around that before we go forward with it. And what that means in the short term is we are going to optimize out of some of those locations that are not where we want to be before we refocus on the locations that we do want to be.

謝謝你的提問，羅克珊。所以，是的，Soma 成長得非常好。我們看到 Soma 的新商品反響熱烈。隨著時間的推移，我們最終得到的 Soma 是一家在很多情況下以非常低成本的方式快速增長的連鎖店。因此，在很多地方，我們並沒有達到我們最終想要的目標。因此，我們正在與 Soma 一起測試許多不同的格式。所以你可以看到不同的尺寸、不同的產品等等。我們希望確保我們獲得整體格式集，並能夠在繼續進行之前保持靈活性。這意味著在短期內，我們將優化一些不屬於我們想要的位置，然後再重新關注我們確實想要的位置。

I think one way to think about Soma, too, and I know that seems a little bit like too diametrically opposing directions, is that this great growth brand and we're announcing the closure of stores. But if you think about the genesis of Soma, in many ways, it was just a demising wall in part of Chico's. So some of those stores are -- the location and the size and the access, in some cases, they were pop-up stores that we made permanent because they were successful. And so it's just not a fleet that we might have a lot of density in one single market and very little in another. So it's a fleet that just requires optimization. And then, as you know, in the world of omnichannel retailing, probably, the fastest-growing segment and one of the most accepted by consumers is the intimate apparel segment online. And so we can continue to grow that business with a healthy mix of physical and digital.

我認為思考 Soma 的一種方式也是如此，我知道這似乎有點完全相反的方向，那就是這個偉大的增長品牌和我們宣布關閉商店。但如果你考慮一下 Soma 的起源，從很多方面來看，它只是 Chico 的一部分即將消亡的牆。因此，其中一些商店的位置、規模和訪問權限，在某些情況下，它們是快閃店，我們將其永久化，因為它們很成功。因此，我們可能不會在一個市場上擁有很高的密度，而在另一個市場上卻密度很小。所以這是一支只需要優化的車隊。然後，如您所知，在全渠道零售領域，增長最快且最受消費者接受的細分市場之一可能是在線內衣細分市場。因此，我們可以通過實體和數字的健康結合來繼續發展該業務。

That was helpful. And just one follow-up is, are you going to quantify or give us some parameters around what we should expect in 2020 from the lost sales of both the 2019 closings as well as 2020?

這很有幫助。唯一的一個後續問題是，您是否打算量化或給我們一些參數，以了解 2020 年我們對 2019 年成交額和 2020 年成交額損失的預期？

The store closing impact on sales is something that, obviously, will be a bigger impact as we get further into the program. Our closures are more weighted towards year 2 and 3. What we're working on right now is programs where we can recapture some of those sales more effectively. We already have a very high recapture rate, but working on omnichannel programs, where we can have a remote associate that reaches out to customers and maintains the engagement or alternative formats that can help to ensure we keep a presence in those markets. So it's a little bit early to give that exact number because we would hope we can mitigate some of those sales with these other programs.

顯然，隨著我們進一步深入該計劃，商店關閉對銷售的影響將會更大。我們的關閉更多地集中在第二年和第三年。我們現在正在開展的項目是我們可以更有效地重新獲得部分銷售額的計劃。我們已經擁有非常高的重新捕獲率，但正在開展全渠道計劃，我們可以有一個遠程助理來接觸客戶並保持參與或替代格式，這有助於確保我們在這些市場中保持存在。因此，現在給出確切的數字還為時過早，因為我們希望能夠通過這些其他計劃來減少部分銷售。

I do think we are positioned uniquely to do that. I mean, with well over 90% of our customers and transactions going through our loyalty program, the fact that our associates are used to that kind of one-to-one reach-out that we've spent the dollars and emphasis on personalizing our marketing and messaging to customers, and now we've got remote stylists in market using our Style Connect technology, we think we're really uniquely positioned to be very successful in markets where we don't have a physical presence. And we're going to continue to invest and push that envelope and are anxious to share the results of our test markets with you.

我確實認為我們具有獨特的優勢來做到這一點。我的意思是，我們 90% 以上的客戶和交易都是通過我們的忠誠度計劃進行的，事實上，我們的員工已經習慣了我們花費金錢進行的一對一聯繫，並強調個性化我們的服務。向客戶進行營銷和消息傳遞，現在我們在市場上有遠程造型師使用我們的 Style Connect 技術，我們認為我們確實處於獨特的地位，可以在我們沒有實體存在的市場中取得非常成功。我們將繼續投資並突破這一極限，並渴望與您分享我們測試市場的結果。

The last question today comes from Paul Trussell with Deutsche Bank.

今天的最後一個問題來自德意志銀行的保羅·特魯塞爾。

This is Gabby Carbone on for Paul. So you mentioned e-commerce penetration is at 26%. I don't believe you've provided that metric for some time. So just wondering if you can talk about the drivers of that, especially from the prior year and then kind of maybe where you see penetration going over time.

我是蓋比·卡本 (Gabby Carbone) 替保羅發言。所以你提到電子商務滲透率為 26%。我相信您已經有一段時間沒有提供該指標了。因此，我想知道您是否可以談談其驅動因素，尤其是前一年的情況，然後您可能會看到滲透率隨著時間的推移會發生什麼變化。

Thanks, Gabby. So historically, we've tried to provide that once a year or so. And what we've seen over time, almost reliably, is our penetration has been going up by about 2% a year. This was a really strong year for our e-commerce growth, going from 22% to 26% penetration. And so there's a number of programs that we have initiated along the way for our overall digital presence from buy online, ship from store; enhancing our client book to be able to reach out to customers remotely and more consistently; and just going to be an area as we go forward that will continue to be a focus. And it's really, for us, a matter of where she's wanting to shop and when she's going to shop.

謝謝，加比。從歷史上看，我們嘗試每年左右提供一次。隨著時間的推移，我們幾乎可以肯定地看到，我們的滲透率每年增長約 2%。今年對於我們的電子商務增長來說是非常強勁的一年，滲透率從 22% 上升到 26%。因此，我們在整個數字化進程中啟動了許多計劃，從在線購買到商店發貨；增強我們的客戶名錄，以便能夠更一致地遠程聯繫客戶；隨著我們的前進，這將繼續成為我們關注的一個領域。對我們來說，這實際上是她想去哪裡購物以及何時購物的問題。

And Gabby, one other piece that's difficult is it's getting harder and harder to tell. I don't know another way to describe it, but we have so many digitally enhanced sales and so many sales that start in-store and then end up digital or start with a search online and then end up being purchased in-store. And that's why, sort of our aspect of having that shared inventory ability, our ability to source product from all of our boutiques, our ability to locate that product anywhere within our system. And now we've got buy online and pick up in store as well. To me, it's very exciting. And we're very, very focused on not just growing that channel, but growing profitable sales. And we're finding that so many of our sales are digitally enhanced or digitally caused, even our in-store sales. And so not to mention that we've also got our alternative channel strategy, which is also driving sales. So it's hard to tell whether that Amazon sale or QVC sale or soon-to-be airport sale started digitally ended up in-store. And it's a great diversification for us as well.

嘉比（Gabby），另一件困難的事情是它變得越來越難說。我不知道用另一種方​​式來描述它，但我們有如此多的數字化增強銷售，以及如此多的銷售從店內開始，然後以數字方式結束，或者從在線搜索開始，然後最終在店內購買。這就是為什麼我們擁有共享庫存能力，我們從所有精品店採購產品的能力，我們在系統內任何地方找到該產品的能力。現在我們也可以在線購買並在商店提貨。對我來說，這非常令人興奮。我們非常非常關注的不僅是發展該渠道，而且是增加可盈利的銷售。我們發現，我們的許多銷售都是數字化增強或數字化促成的，甚至是我們的店內銷售。更不用說我們還有替代渠道策略，這也推動了銷售。因此，很難判斷亞馬遜促銷、QVC 促銷或即將推出的機場促銷是否以數字方式開始並最終在店內進行。這對我們來說也是一個巨大的多元化。

Great. And just a quick follow-up. Just wondering about the 1Q gross margin guidance. It's part of the reason that it's supposed to be down to 300 to 400 basis points. Do you still have more Chico's merchandise to clear through? Is that kind of what you're expecting in the first quarter? Or is that kind of what's done in the fourth quarter?

偉大的。只是快速跟進。只是想知道第一季度的毛利率指導。這是其應下調至 300 至 400 個基點的部分原因。您還有更多 Chico 的商品需要清理嗎？這是您對第一季度的預期嗎？或者說這就是第四季度所做的事情嗎？

So exiting the fourth quarter, we were in good shape. We had clean inventory. We're looking at much less markdown inventory than historically. It is fair to say that we -- February has been tough for everybody in retail and so that's reset our expectations and has given us the need to be a little bit more aggressive in the short term, not a lot. Luckily, we had been buying our inventory in line with expectations, so that impacts it a little bit. And then the other areas, just plain deleverage on fixed cost based on that outlook.

因此，第四季度結束時，我們的狀態良好。我們有乾淨的庫存。我們看到的降價庫存比歷史上要少得多。可以公平地說，二月份對零售業的每個人來說都是艱難的，因此這重新調整了我們的預期，並讓我們需要在短期內更加激進一點，而不是太多。幸運的是，我們一直按照預期購買庫存，因此這對其產生了一些影響。然後是其他領域，只是基於這種前景對固定成本進行簡單的去槓桿化。

This concludes our question-and-answer session. I would like to turn the conference back over to Shelley Broader for any closing remarks.

我們的問答環節到此結束。我想將會議轉回給雪萊·布羅德 (Shelley Broader) 發表閉幕詞。

Thank you very much. In conclusion, we remain steadfast in our conviction to drive -- in driving stronger sales, strengthen our execution and deliver improved performance across our business. We are committed to executing the turnaround of the Chico's brand; investing in Soma to drive stronger growth; completing the brand repositioning of White House Black Market and delivering positive sales growth; investing to strengthen and expand our omni capabilities; optimizing our fleet to improve profitability; and increasing our overall operating effectiveness. Thank you so much for joining us, and have a great day.

非常感謝。總之，我們仍然堅信我們的信念：推動更強勁的銷售、加強我們的執行力並提高整個業務的績效。我們致力於實現 Chico 品牌的轉型；投資 Soma 以推動更強勁的增長；完成白宮黑市的品牌重新定位並實現積極的銷售增長；投資以加強和擴展我們的全方位能力；優化我們的機隊以提高盈利能力；並提高我們的整體運營效率。非常感謝您加入我們，祝您有美好的一天。

This conference is now concluded. Thank you for attending today's presentation. You may now disconnect.

本次會議現已結束。感謝您參加今天的演講。您現在可以斷開連接。