Chico's FAS Inc (CHS) 2019 Q1 法說會逐字稿

Good morning, and welcome to the Chico's FAS First Quarter 2019 Earnings Conference Call. (Operator Instructions) I would now like to turn the conference over to Julie Lorigan, Vice President of Investor Relations. Mr. Lorigan, please go ahead.

早上好，歡迎參加 Chico 的 FAS 2019 年第一季度收益電話會議。（操作員指示）我現在想將會議轉交給投資者關係副總裁 Julie Lorigan。洛里根先生，請繼續。

Thank you, Anita, and good morning, everyone. Welcome to Chico's FAS First Quarter 2019 Earnings Conference Call and Webcast. Joining me today are Bonnie Brooks, our interim CEO and President; and Todd Vogensen, our Chief Financial Officer. Our earnings release issued today can be found on our website at www.chicosfas.com under Investor Relations Press Releases.

謝謝你，安妮塔，大家早上好。歡迎參加 Chico 的 FAS 2019 年第一季度收益電話會議和網絡廣播。今天加入我的是我們的臨時首席執行官兼總裁邦妮·布魯克斯 (Bonnie Brooks)；以及我們的首席財務官托德·沃根森 (Todd Vogensen)。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 today 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, in 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 maybe otherwise required by law.

今天我要提醒您，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。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，除非法律另有要求。

And with that, I will turn the call over to Bonnie.

這樣，我就把電話轉給邦妮。

Thank you, Julie, and good morning, everyone. In the first quarter, we made significant changes to the company's leadership and reset our priorities. We initiated a search for a new CEO, have brought in new talent within the brand, and actions are now underway across the company with a focus on 3 distinct areas that we believe will positively impact our results. On today's call, I will review these new priorities and provide an update on our performance. Following my remarks, I'll turn the call over to Todd for a review of our financial results in more detail and then we will take your questions.

謝謝朱莉，大家早上好。在第一季度，我們對公司領導層進行了重大調整，並重新調整了我們的優先事項。我們開始尋找新的首席執行官，在品牌內引進了新的人才，目前整個公司正在採取行動，重點關注我們認為將對我們的業績產生積極影響的 3 個不同領域。在今天的電話會議上，我將回顧這些新的優先事項並提供我們業績的最新信息。在我的發言之後，我將把電話轉給托德，以更詳細地審查我們的財務業績，然後我們將回答您的問題。

As you know, I stepped in as interim CEO in April after having been a member of the Chico's FAS Board since 2016 and having spent more than 3 decades in the retail apparel industry. Over these past weeks, I have been working directly with our teams to examine product, review our quality and styling and evaluate marketing for all 3 brands. I have also been in the field engaging with customers, partners including new vendors and speaking with other stakeholders.

如您所知，我自 2016 年以來一直是 Chico 的 FAS 董事會成員，並在零售服裝行業工作了 30 多年，之後於 4 月出任臨時首席執行官。在過去的幾周里，我一直與我們的團隊直接合作，檢查產品，審查我們的質量和款式，並評估所有 3 個品牌的營銷。我還一直在該領域與客戶、合作夥伴（包括新供應商）進行交流，並與其他利益相關者進行交談。

This work as interim CEO and my experience in executing successful turnarounds at other major apparel retailers helped us to find 3 new operating priorities which we have implemented internally and are sharing today. These include: First, driving stronger sales through improved product; second, optimizing the customer journey by simplifying, digitizing and extending our unique and personalized service; and third, transforming our sourcing and supply chain operation to increase product speed-to-market and improve quality. Actions are underway in each of these areas. But before I review those actions, let's address our first quarter performance.

作為臨時首席執行官的工作以及我在其他主要服裝零售商成功扭虧為盈的經驗幫助我們找到了 3 個新的運營優先事項，我們已在內部實施並在今天分享這些優先事項。其中包括：第一，通過改進產品推動更強勁的銷售；其次，通過簡化、數字化和擴展我們獨特的個性化服務來優化客戶旅程；第三，轉變我們的採購和供應鏈運營，以加快產品上市速度並提高質量。這些領域中的每一個領域都在採取行動。但在回顧這些行動之前，讓我們先討論一下我們第一季度的業績。

Top and bottom line results were in line with our expectations for the first quarter with performance mixed by brand. Karen McKibbin started as Chico's new brand president on April 1 and the brand has already benefited from her influence. Under her direction, Chico's is elevating both the quality and overall aesthetic. Customers responded favorably to our spring and summer assortments which reflected a more balanced product architecture.

頂線和底線結果符合我們對第一季度的預期，各品牌的業績參差不齊。Karen McKibbin 於 4 月 1 日開始擔任 Chico 的新品牌總裁，該品牌已經從她的影響力中受益。在她的指導下，Chico's 不斷提升品質和整體美感。客戶對我們的春季和夏季產品系列反應良好，這體現了更加平衡的產品架構。

At Soma, we continue to deliver positive results. Successes in our 2 key focus areas of bras and sleepwear helped drive a 3.4% comp sales increase. We saw particular success with our Enbliss range extensions which is on track to be the #1 bra franchise in our portfolio. We also saw excellent momentum with our Cool Nights sleepwear and with our shirt -- our sleep shirts and our customer continuing to buy our mix-and-match separates.

在 Soma，我們繼續取得積極成果。我們在文胸和睡衣這兩個關鍵領域取得的成功幫助推動了同銷量增長 3.4%。我們的 Enbliss 系列擴展產品取得了特別的成功，該產品有望成為我們產品組合中排名第一的文胸系列。我們還看到了 Cool Nights 睡衣和襯衫（我們的睡衣）的強勁勢頭，並且我們的客戶繼續購買我們的混搭單品。

At White House | Black Market, misses in color and print resulted in a first quarter comparable sales decline. However, we took immediate steps to course-correct by bringing in new merchandising and design talent and adjusting future product. I'll talk more about this shortly.

在白宮|黑市、彩色和印刷的缺失導致第一季度可比銷售額下降。然而，我們立即採取措施糾正方針，引入新的營銷和設計人才並調整未來的產品。我很快就會詳細討論這個問題。

I want to emphasize now that even with the improvement at Chico's and the continuing growth at Soma, we know more must be done to improve performance and value creation. We are not standing still. Let me provide additional color on the work underway.

我現在想強調的是，即使 Chico's 取得了進步，Soma 也持續增長，我們知道還需要做更多工作來提高業績和創造價值。我們並沒有停滯不前。讓我為正在進行的工作提供更多的信息。

First, our priority is to drive stronger sales across our entire portfolio. In the past 6 weeks, we have put the customer at the center of everything we are doing. This means we have taken many projects and distractions that were on the agenda completely off the agenda if they do not relate to the customer and sales. This is a customer that I know well and have built many profitable sales around for decades in apparel. This is a customer that is at the center of the actions we are now taking in our brands.

首先，我們的首要任務是推動整個產品組合的銷售更強勁。在過去的六周里，我們將客戶置於我們所做的一切的中心。這意味著我們已經將議程上的許多項目和乾擾完全排除在議程之外，如果它們與客戶和銷售無關的話。這是我很熟悉的一位客戶，幾十年來，他在服裝領域建立了許多有利可圖的銷售。這是我們目前在品牌中採取的行動的核心客戶。

Job 1 for our business is creating exciting, wanted and affordable fashion in each of the brands. This is what myself and the team leaders have been spending significant time on, assessing the DNA of the brands and aligning that DNA to the customer, the product, the marketing and the stores and online selling tools. We have significant opportunities in product styling, quality, fit and allocation at each of our brands. And we are working to strengthen our market position through more effective digital marketing. I've been intimately involved with our brand presidents to review, revise and distort our product for required depth and designing marketing plans for the back half of the year to ensure we execute and drive sales.

我們業務的首要任務是為每個品牌創造令人興奮、受歡迎且價格實惠的時尚。這就是我和團隊領導花費了大量時間的事情，評估品牌的 DNA，並將該 DNA 與客戶、產品、營銷、商店和在線銷售工具保持一致。我們每個品牌在產品款式、質量、合身性和配置方面都擁有重要的機會。我們正在努力通過更有效的數字營銷來加強我們的市場地位。我一直與我們的品牌總裁密切合作，審查、修改和扭曲我們的產品，以達到所需的深度，並設計下半年的營銷計劃，以確保我們執行和推動銷售。

At Chico's, in addition to Karen, we have recruited new talent in both product and marketing. The team is continuing to elevate the quality, fit and aesthetic of the product and is focused on having a balanced assortment with wardrobe essentials, memorable pieces and thoughtful collections. Key items continue to be an important component of our assortment and we have added category depth and strength. We have also reset the layout of our stores and of our online presentation to reflect these merchandising changes. We are now telling our customers a cohesive story of what we stand for and making our stores more inviting with improved visual impact of new and current products. As to marketing, the team is focused on improving the voice of the customer by increasing our focus on digital.

在奇科，除了凱倫之外，我們還招募了產品和營銷方面的新人才。該團隊不斷提高產品的質量、合身性和美觀性，並致力於平衡衣櫃必需品、令人難忘的單品和貼心的系列。關鍵商品仍然是我們品類的重要組成部分，並且我們增加了品類深度和強度。我們還重置了商店和在線展示的佈局，以反映這些銷售變化。現在，我們向客戶講述我們所代表的連貫故事，並通過新產品和現有產品改善的視覺效果使我們的商店更具吸引力。在營銷方面，團隊致力於通過加強對數字化的關注來提高客戶的聲音。

Next, at White House | Black Market, our colors and prints in the first spring delivery were not aligned to our customer closely enough. However, these are issues that are within our control and we are taking swift actions to adjust our product and brand positions for the fall and holiday season as mentioned earlier. In addition, we have a more rigorous testing capability in place for merchandise approvals and have hired a seasoned expert executive to specifically address print and color throughout the organization. We have adjusted our assortments where possible for Q3 and we anticipate more meaningful visual improvement in the balance of fall and with the holiday deliveries.

接下來，在白宮|黑市，我們在第一個春季交付的顏色和印花與我們的客戶不夠一致。然而，這些問題都在我們的控制範圍內，我們正在迅速採取行動，調整我們前面提到的秋季和假日季節的產品和品牌定位。此外，我們擁有更嚴格的商品審批測試能力，並聘請了一位經驗豐富的專家管理人員來專門解決整個組織的印刷和色彩問題。我們已經在可能的情況下調整了第三季度的產品種類，我們預計秋季和假期交付的平衡會帶來更有意義的視覺改善。

We are also well underway in a search for a new head merchant for our White House | Black Market brand and expect to make an appointment in the near term. During the transition, Kim Roy, who joined our Board in February, is working with the brands and myself during this period to assist with product and merchandising. Kim has more than 30 years of experience in the retail industry, particularly in women's apparel. Most recently, Kim spent 13 years as group president of Ralph Lauren and had both sales and product responsibility. We are pleased to be able to tap into Kim's eye and her expertise.

我們也在為我們的白宮尋找新的首席商人。黑市品牌並預計在短期內進行預約。在過渡期間，金·羅伊 (Kim Roy) 在二月份加入了我們的董事會，在此期間與品牌和我本人合作，協助產品和營銷工作。Kim 在零售行業（尤其是女裝行業）擁有 30 多年的經驗。最近，Kim 擔任 Ralph Lauren 集團總裁 13 年，負責銷售和產品。我們很高興能夠利用 Kim 的眼光和她的專業知識。

At Soma, we are investing in growth. Driven by our focus on innovation and new product launches, we continue to gain traction in bras and sleepwear. We have a major new bra launch in our Vanishing franchise in the back half of the year and additional innovation and new launches planned as we look out to next spring. We are testing new value sets around gifting occasions in sleepwear as well. Our product initiatives are supported with a strong marketing program focused on digital and influencers which is driving growth in new, and reactivated as well, customers.

在 Soma，我們正在投資於增長。在我們對創新和新產品發布的關注的推動下，我們繼續在胸罩和睡衣領域獲得吸引力。今年下半年，我們在 Vanishing 特許經營中推出了一款重要的新文胸，併計劃在明年春天推出更多創新和新產品。我們也在圍繞睡衣送禮場合測試新的價值組合。我們的產品計劃得到了專注於數字和影響者的強大營銷計劃的支持，這推動了新客戶和重新激活客戶的增長。

So next, our second focus area: Optimizing the customer journey to drive sales. We have invested in technology to digitize the customer experience in a way that meets her heightened expectations towards seamless, fast and transparent service. We are now using Style Connect, a newly developed proprietary tool that thinks to the company's legacy clientele program and can drive sales both online and in-store across the network. We have expertise with creating a personal connection with our customers that drives loyalty and further strengthens the connection. And now digital is being enabled for the first time with Style Connect. We are training our sales associates on how to utilize this technology to build wardrobes for our customers. And we are starting to see traction in our test model as customers respond to our messaging, our style boards and fashion advice tailored specifically to their needs. In addition, this summer, we will take the next step in executing our customer journey strategy with the implementation of Buy Online and Pick-up in Store across all banners.

接下來，我們的第二個重點領域：優化客戶旅程以推動銷售。我們投資了技術來數字化客戶體驗，以滿足她對無縫、快速和透明服務的更高期望。我們現在使用 Style Connect，這是一種新開發的專有工具，它考慮了公司的傳統客戶計劃，可以通過網絡推動在線和店內銷售。我們擁有與客戶建立個人聯繫的專業知識，可提高忠誠度並進一步加強聯繫。現在，Style Connect 首次啟用了數字化功能。我們正在培訓銷售人員如何利用這項技術為客戶打造衣櫃。隨著客戶對我們的信息、我們的風格板和專門針對他們的需求量身定制的時尚建議做出回應，我們開始看到我們的測試模型的吸引力。此外，今年夏天，我們將採取下一步措施執行客戶旅程戰略，在所有橫幅上實施在線購買和店內提貨服務。

And our third key focus area is sourcing and supply chain transformation. In supply chain, we are working to fully digitize our end-to-end operations to allow for a more seamless integration from vendor to fulfillment to customer. We recently engaged in a full network study to optimize our distribution network and evaluate alternatives.

我們的第三個重點關注領域是採購和供應鏈轉型。在供應鏈中，我們正在努力實現端到端運營的完全數字化，以便實現從供應商到履行到客戶的更無縫集成。我們最近進行了一項全面的網絡研究，以優化我們的分銷網絡並評估替代方案。

To support our focus on elevating product, styling and quality, we are also making changes to our sourcing. We have worked diligently to consolidate our vendor base for both product consistency, speed and volume advantages that we have not had in our business to date. For example, over the last year, we have reduced our vendor base by almost 25%. And through ongoing negotiations with our vendors, we believe there is opportunity for even more consolidation and scale and the benefits that, that brings.

為了支持我們對提升產品、款式和質量的關注，我們還對採購進行了改變。我們一直在努力鞏固我們的供應商基礎，以獲得迄今為止我們的業務中還沒有的產品一致性、速度和數量優勢。例如，去年我們的供應商數量減少了近 25%。通過與供應商的持續談判，我們相信有機會進行更多的整合和規模化以及由此帶來的好處。

At the same time, we continue to reduce our China manufacturing concentration. We are all well aware of the tariffs on product from China. And before moving on, I want to spend a moment providing an update on our sourcing from this country. Over the last year, we have reduced our product manufactured in China by approximately 20% as we continue to diversify our countries of origin and continue to further reduce our penetration there. As for the tariffs, we have had minimal impact to date from the imposed 25% duty on a limited amount of Chinese products. But we anticipate significant impact if the proposed 25% tariff on the fourth tranche of goods announced on May 5 goes into effect. We are working on mitigating strategies, including engaging with our vendors on cost sharing agreements and managing and adjusting our forward buys and product pricing.

與此同時，我們繼續降低中國製造的集中度。我們都清楚對中國產品徵收的關稅。在繼續之前，我想花點時間介紹一下我們從這個國家採購的最新情況。去年，隨著我們繼續實現原產國多元化並繼續進一步降低我們在中國的滲透率，我們已將在中國製造的產品減少了約 20%。至於關稅，到目前為止，我們對有限數量的中國產品徵收 25% 的關稅所造成的影響很小。但我們預計，如果 5 月 5 日宣布的對第四批商品徵收 25% 關稅的提議生效，將會產生重大影響。我們正在製定緩解策略，包括與我們的供應商就成本分攤協議進行合作，以及管理和調整我們的遠期購買和產品定價。

Before I turn the call over to Todd, I'd like to update you on the status of our search for a permanent CEO which began 7 weeks ago. We have been impressed by the caliber of candidates that we are seeing. Importantly, they too believe in the company and in the market opportunity for our brands. The CEO search is proceeding ahead of our expectations and we look forward to keeping you updated.

在將電話轉給托德之前，我想向您介紹我們 7 週前開始尋找永久首席執行官的最新情況。我們看到的候選人的才華給我們留下了深刻的印象。重要的是，他們也相信公司和我們品牌的市場機會。首席執行官搜尋工作的進展超出了我們的預期，我們期待向您通報最新情況。

In summary, we are making important changes across the organization. These improvements will take time to translate into financial results. But having led previous turnarounds, I am confident we are on a better path forward for the company and for our shareholders.

總之，我們正在整個組織內進行重要的變革。這些改進需要時間才能轉化為財務成果。但在經歷了之前的扭虧為盈後，我相信我們正在為公司和股東走上一條更好的前進道路。

Todd?

托德？

Thanks, Bonnie, and good morning, everyone. Before we begin, our comments and discussion of first quarter 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.

謝謝邦妮，大家早上好。在我們開始之前，我們對第一季度財務業績的評論和討論將基於調整後或非公認會計準則的基礎上。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 reported comparable sales for the first quarter down 7%, in line with our previous outlook and reflecting a soft start to the quarter across all of our brands. We did see strength in e-commerce which increased low double digits compared to last year's first quarter. We believe our ongoing investment in our omni platform and customer journey will continue to fuel healthy growth in this channel.

因此，我們報告第一季度的可比銷售額下降了 7%，與我們之前的預期一致，反映出我們所有品牌本季度的軟啟動。我們確實看到了電子商務的強勁勢頭，與去年第一季度相比，增長了兩位數。我們相信，我們對全方位平台和客戶旅程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 first quarter adjusted earnings of $0.05 per diluted share which excludes the accelerated depreciation charges related to our retail fleet optimization program. Merchandise margin was down slightly primarily due to the higher levels of discounts at White House | Black Market to clear through spring product. Merchandise margin at both Chico's and Soma was up compared to the prior year. We exited the quarter with total inventory down 4.5% compared to last year.

移動到底線。我們公佈的第一季度調整後每股攤薄收益為 0.05 美元，其中不包括與我們的零售車隊優化計劃相關的加速折舊費用。商品利潤率略有下降，主要是由於白宮折扣水平較高|黑市通過春季產品清理。Chico's 和 Soma 的商品利潤率比上一年有所上升。本季度結束時，總庫存比去年下降了 4.5%。

Overall, gross margin was down 250 basis points, slightly better than our expectations. The decline primarily was due to costs related to the expansion of our omnichannel programs and deleverage of fixed costs on reduced sales. This also excludes the impact of accelerated depreciation charges related to our fleet optimization program of 100 basis points.

總體而言，毛利率下降了 250 個基點，略好於我們的預期。下降的主要原因是與全渠道計劃擴張相關的成本以及銷售減少導致的固定成本去槓桿化。這還排除了與我們 100 個基點的機隊優化計劃相關的加速折舊費用的影響。

Moving to SG&A expenses. First quarter SG&A was down $1 million compared to last year and was in line with our expectations. Our balance sheet remained strong and we ended the quarter with $168 million in cash and short-term investments and $54 million in debt. We anticipate that we'll generate strong positive free cash flow for the full year.

轉到SG&A 費用。第一季度 SG&A 比去年減少 100 萬美元，符合我們的預期。我們的資產負債表依然強勁，本季度末我們擁有 1.68 億美元的現金和短期投資以及 5,400 萬美元的債務。我們預計全年將產生強勁的正自由現金流。

We continue to focus on our capital expenditures on investments in technology and existing store remodels and refreshes. Consistent with our prior outlook for 2019, our plan for capital expenditures remains at $55 million. We invested $8 million in the first quarter. We closed 8 stores in the first quarter and we're on track to close 60 to 80 stores in fiscal 2019 previously announced as part of our retail fleet optimization plan.

我們繼續專注於技術投資以及現有商店改造和更新的資本支出。與我們之前對 2019 年的展望一致，我們的資本支出計劃仍為 5500 萬美元。我們第一季度投資了 800 萬美元。我們在第一季度關閉了 8 家商店，並有望在 2019 財年關閉 60 至 80 家商店，這是我們之前宣布的零售車隊優化計劃的一部分。

In the first quarter, we returned $10 million to shareholders. In the trailing 4 quarters, we have returned approximately $124 million to shareholders in the form of dividends and share repurchases. We currently have approximately $55 million outstanding under our existing share repurchase authorization.

第一季度，我們向股東返還 1000 萬美元。在過去的 4 個季度中，我們以股息和股票回購的形式向股東返還了約 1.24 億美元。目前，根據我們現有的股票回購授權，我們尚有約 5500 萬美元的未償還資金。

Now turning to our financial outlook for the second quarter and our updated outlook for the full year of 2019. This outlook excludes expected net charges related to the retail fleet optimization plan. For the second quarter of fiscal 2019 compared to last year's second quarter, we expect: A mid-single-digit decline in total net sales and consolidated comparable sales, reflecting a sequential improvement in sales trends in both our Chico's and Soma brands and softer sales in our White House | Black Market brand; gross margin as a percentage of net sales to decline approximately 200 to 250 basis points due primarily to incremental costs associated with our omnichannel programs and deleverage of fixed costs from lower sales; and our SG&A expenses will be approximately flat, reflecting ongoing cost management offset by investments in Soma marketing.

現在轉向我們第二季度的財務展望和 2019 年全年的最新展望。該展望不包括與零售車隊優化計劃相關的預期淨費用。與去年第二季度相比，我們預計 2019 財年第二季度： 總淨銷售額和綜合可比銷售額將出現中個位數下降，反映出我們的 Chico's 和 Soma 品牌的銷售趨勢連續改善以及銷售疲軟在我們的白宮|黑市品牌；毛利率占淨銷售額的百分比將下降約 200 至 250 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 費用將大致持平，反映出持續的成本管理被 Soma 營銷投資所抵消。

For the full year of 2019, compared to last year, we expect a low to mid-single-digit decline in total net sales and consolidated comparable sales versus our previous guidance of a low single-digit decline in total sales and comparable sales. This outlook takes into consideration our first quarter performance and reflects improved sales trends across all brands in the second half of the fiscal year driven by the key priorities and actions that Bonnie outlined earlier.

與去年相比，2019 年全年，我們預計總淨銷售額和綜合可比銷售額將出現低至中個位數的下降，而我們之前的指導是總銷售額和可比銷售額將出現低個位數的下降。這一展望考慮到了我們第一季度的業績，並反映了邦妮之前概述的關鍵優先事項和行動推動的所有品牌在本財年下半年的銷售趨勢的改善。

Gross margin as a percent of net sales will be down 50 to 100 basis points versus our previous guidance of approximately flat to down 50 basis points due to the incremental cost associated with our omnichannel programs and deleverage of fixed costs from lower sales. The improvement in the second half trends for our full year outlook for gross margin is driven by the expected improvement in sales trends across all brands in the second half of the year.

由於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，毛利率占淨銷售額的百分比將下降 50 至 100 個基點，而我們之前的指導大約持平至下降 50 個基點。我們對全年毛利率前景的下半年趨勢的改善是由下半年所有品牌銷售趨勢的預期改善推動的。

SG&A, we expect to be down approximately $10 million versus our previous guidance of approximately flat, reflecting investments in Soma marketing offset by ongoing cost management.

SG&A，我們預計將比之前大約持平的指引減少約 1000 萬美元，反映出對 Soma 營銷的投資被持續的成本管理所抵消。

And lastly, a fiscal 2019 tax rate in the range of 35% to 40% which excludes accelerated depreciation related to our fleet optimization plan. Note that for the second through fourth quarter of fiscal 2019, we anticipate our tax rate to normalize in the range of 25% to 28%.

最後，2019 財年稅率為 35% 至 40%，其中不包括與我們的機隊優化計劃相關的加速折舊。請注意，對於 2019 財年第二至第四季度，我們預計稅率將在 25% 至 28% 的範圍內正常化。

Overall, our bottom line earnings expectations are roughly the same as our prior guidance. We've rebalanced components of our P&L to account for a weaker first half and a stronger second half of the year.

總體而言，我們的盈利預期與我們之前的指導大致相同。我們重新平衡了損益表的組成部分，以應對上半年疲軟和下半年強勁的情況。

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, and I'll turn it back to Anita to begin.

謝謝你，托德。目前，我們很樂意回答您的問題，我會將其轉回給安妮塔開始。

(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。

Nice to see the improvement in the Chico's brand. I was wondering maybe if you could just talk about inventory levels across the brands. I guess will there be the need for additional clearing in second quarter? And then as it relates to gross margin, and I may have missed this, but did you guys say what merch margin was in second quarter? And then if you could talk about your expectations for -- I mean in first quarter, I'm sorry. Merch margin in second quarter and then the back half, too, that would be great.

很高興看到 Chico 品牌的進步。我想知道您是否可以談談各個品牌的庫存水平。我猜二季度還需要額外清算嗎？然後，由於它與毛利率有關，我可能錯過了這一點，但是你們有沒有說過第二季度的商品利潤率是多少？然後，如果你能談談你對——我的意思是第一季度的期望，我很抱歉。第二季度和後半段的商品利潤率也是如此，那就太好了。

Absolutely. So inventory levels across brands. For Chico's and White House, we've been managing inventory really in line with sales and being proactive in how we go about doing that. But it did cost us a little bit of merchandise margin as we went through the first quarter. Nothing terribly significant. We've been managing our inventory pretty tightly.

絕對地。因此各個品牌的庫存水平。對於奇科和白宮來說，我們一直在真正根據銷售情況來管理庫存，並積極主動地做到這一點。但在第一季度，這確實讓我們損失了一點商品利潤。沒什麼特別重要的。我們一直非常嚴格地管理我們的庫存。

And as we go into Q2, I'd say much the same. We've set ourselves up with inventory overall in solid position. Our sales, particularly for the White House, are expected to be lower than we probably would have budgeted but we've also positioned our inventory fairly well. So no significant impact to maintain margin in the second quarter.

當我們進入第二季度時，我也會說同樣的話。我們的庫存總體處於穩固狀態。我們的銷售，特別是白宮的銷售，預計會低於我們的預算，但我們也很好地定位了我們的庫存。因此，對第二季度的利潤率維持沒有重大影響。

Across inventory levels, what I'd tell you is, again, for Chico's and White House, we really are managing those inventory levels in line with our overall sales expectations. And we'll have some areas where, if we see opportunity, we will invest behind those. The bigger opportunity really will be through Soma. And in Soma, with the tailwinds we have, with the programs we have planned, you will see an increase in Soma inventory particularly as we get into the second half.

在庫存水平方面，我想再次告訴您的是，對於 Chico's 和 White House，我們確實根據我們的整體銷售預期來管理這些庫存水平。如果我們看到機會，我們將在某些領域進行投資。更大的機會確實將通過 Soma 實現。在索馬，隨著我們所擁有的順風車和我們計劃的計劃，您將看到索馬庫存的增加，特別是當我們進入下半年時。

Great. That is really helpful. And just wanted to follow up on the improvement in sales in the back half across the brands. Maybe if you could just tend to talk about the drivers there. And I guess for White House specifically, do you feel like you can switch the merchandise up enough to get that inflection in the back half? And I guess for Chico's, I assume it's just kind of continuation of improved performance there.

偉大的。這真的很有幫助。只是想跟進各品牌後半段銷售的改善情況。也許你可以談談那裡的司機。我想特別是對於白宮來說，你覺得你可以改變商品足以在後半部分獲得這種變化嗎？我想對於奇科來說，我認為這只是那裡性能改進的延續。

Good assumption. It's Bonnie. Thanks for your questions. So starting with White House, yes, the White House has our significant attention right now, both my attention, Kim's attention. And in fact, in looking at products and doing product reviews, we're bringing in all of the senior leaders in the company to those product reviews for the first time. So we are actually taking advantage of the merchant expertise we have across all the brands to look at each brand now. And that's a new practice and has resulted in significant changes, I would say, to the White House product, primarily Q4. Q1, I can guarantee will be different product. Q4 is significantly different product and not as much in Q3. In Chico's, the brand is much more elevated for fall than it was and we're very excited about the product in that brand going forward.

好的假設。是邦妮。感謝您的提問。所以從白宮開始，是的，白宮現在引起了我們的極大關注，包括我的關注，金正恩的關注。事實上，在查看產品和進行產品審查時，我們首次邀請公司所有高級領導參與這些產品審查。因此，我們實際上正在利用我們在所有品牌中擁有的商家專業知識來研究每個品牌。我想說，這是一種新的做法，給白宮產品（主要是第四季度）帶來了重大變化。Q1，我可以保證會是不同的產品。第四季度的產品有顯著差異，與第三季度相比差異不大。在 Chico's，該品牌在秋季的售價比以前更高，我們對該品牌未來的產品感到非常興奮。

The next question comes from Kim Greenberger with Morgan Stanley.

下一個問題來自摩根士丹利的 Kim Greenberger。

Todd, I just wanted to start with free cash flow. Could you just remind us how much free cash flow you're expecting here this year? And any other sort of cash management, strategies that you've got.

托德，我只想從自由現金流開始。您能否提醒我們今年您預計有多少自由現金流？以及您擁有的任何其他類型的現金管理和策略。

And then Bonnie, I just wanted to ask. It sounds like you are testing -- or you're working on setting up more rigorous testing of product. And I'm wondering if you got any feedback on the second half product that gives you confidence in that improvement trend? And any other strategies that you've got to try to improve the success of the merchandising effort across the organization.

然後邦妮，我只是想問一下。聽起來你正在測試——或者你正在努力建立更嚴格的產品測試。我想知道您是否收到了有關下半年產品的任何反饋，使您對這種改進趨勢充滿信心？以及您必須嘗試提高整個組織的銷售工作成功率的任何其他策略。

Thanks, Kimberly. I'll go ahead and start on the cash flow question. So you're right, free cash flow has been really a bedrock of some of the successes we've had over the last 10 years. We have had 10 years in a row of about $100 million or more of free cash flow. So going forward, clearly very focused on it. We haven't given an exact amount for this year, but as always, it is a focus. From a strategy perspective, we are looking at capital that's similar to last year. And then within the operating bucket, we continue to look at all of the normal opportunities. So certainly looking at accounts payable leverage as we go forward, buying inventory more in real time with the need for that inventory, which allows us to increase our accounts payable leverage. We had great leverage last year and continue to expect to try to maximize that. And then on the occupancy side with our continued store rationalization plan, that should help our overall rent and in particular on the cash rent side.

謝謝，金伯利。我將繼續討論現金流量問題。所以你是對的，自由現金流確實是我們過去 10 年取得的一些成功的基石。我們連續 10 年擁有約 1 億美元或更多的自由現金流。因此，展望未來，顯然非常關注它。我們還沒有給出今年的確切金額，但一如既往，這是一個焦點。從戰略角度來看，我們正在尋找與去年類似的資本。然後在運營範圍內，我們繼續關注所有正常機會。因此，在我們前進的過程中，當然會考慮應付賬款槓桿，根據庫存需求更多地實時購買庫存，這使我們能夠增加應付賬款槓桿。去年我們擁有很大的影響力，並希望繼續努力最大化這一影響力。然後，在入住方面，我們持續進行商店合理化計劃，這應該有助於我們的整體租金，特別是現金租金方面。

Okay. Thanks, Todd. So in terms of testing, thank you for the question, Kimberly. I would say that what we really have developed recently is a much more rigorous criteria for product. So we've actually developed a methodology for scoring products and scoring the attributes and ranking the attributes of each product in terms of what is its purpose? How does it rank on color, print, styling, et cetera, et cetera? And we're giving each garment a score. And that's quite important because we actually then take that back to analyzing the bestsellers. So we are ensuring that the team maintains its institutional knowledge around items. What we have found in the first quarter, particularly at White House, was that they had veered off the product model and the rigorous testing.

好的。謝謝，托德。因此，就測試而言，謝謝金伯利提出的問題。我想說的是，我們最近真正制定的是更加嚴格的產品標準。因此，我們實際上開發了一種對產品進行評分、對屬性進行評分並根據每個產品的用途對屬性進行排名的方法？它在顏色、印花、款式等方面排名如何？我們給每件衣服打分。這非常重要，因為我們實際上會回過頭來分析暢銷書。因此，我們確保團隊保持其圍繞項目的機構知識。我們在第一季度發現，特別是在白宮，他們偏離了產品模型和嚴格的測試。

So these are all in place now. And as well, I would say that we are all looking at all of the product and spending an inordinate amount of time with the actual merchant team. We are working directly with all the merchandise managers as well. So it's a shared effort to drive an elevated taste level particularly in print, colors and actual styling. Does that answer your question, Kimberly?

所以現在這些都已經到位了。而且，我想說的是，我們都在關注所有產品，並在實際的商家團隊上花費了大量的時間。我們也直接與所有商品經理合作。因此，要共同努力提高品味水平，特別是在印刷、色彩和實際造型方面。金伯利，這能回答你的問題嗎？

Yes.

是的。

The next question comes from Simeon Siegel from Nomura Instinet.

下一個問題來自 Nomura Instinet 的 Simeon Siegel。

This is [David] on for Simeon. Could you provide any color on traffic trends you saw throughout the quarter by brand? And then separately, was there any notable difference between full priced stores and outlets across the concepts?

這是西蒙的[大衛]。您能否提供有關您在整個季度中按品牌看到的流量趨勢的任何信息？那麼，在不同的概念中，全價商店和奧特萊斯之間是否有任何顯著差異？

In terms of traffic trends across the quarter, generally, I would say our store traffic trends were in line with what you would expect. For White House | Black Market, with the comps being what they were, that clearly was a little bit lower than what the other brands would have been seeing. In terms of outlets versus frontline, outlets continue to drive traffic. They've done a very good job on their overall assortments. And in those centers, we continue to see a good flow of customers. So our outlet centers have been a positive spot for us on traffic.

就本季度的客流量趨勢而言，總的來說，我認為我們的商店客流量趨勢符合您的預期。對於白宮|黑市的比較是這樣的，這顯然比其他品牌所看到的要低一些。就網點與一線而言，網點繼續帶動客流量。他們在整體品種上做得非常好。在這些中心，我們繼續看到大量的客流。因此，我們的直銷中心對我們來說是一個有利的交通點。

The next question comes from Janine Stichter with Jefferies.

下一個問題來自 Jefferies 的 Janine Stichter。

A question for Bonnie. You mentioned taking some products off the agenda that weren't directly improving the customer expense. Can you maybe touch on some of these projects that you opted to walk away from? And then if you could give some more color on which projects this has allowed the company to refocus its attention on?

問邦妮一個問題。您提到將一些不會直接改善客戶費用的產品從議程中刪除。您能否談談您選擇放棄的一些項目？那麼您是否可以進一步說明這使得公司能夠重新將注意力集中在哪些項目上？

Okay. I think -- thanks for the question, Janine. I think what happens in a lot of companies is that we go a lot of -- list of projects, and that list can get quite excessive. We took a look 6 weeks ago at all of the projects on our agenda and actually removed more than half of them because those are things that may have been valid yesterday in the business but they're not valid today. And what I mean by that is we made a significant effort to concentrate only on sales-driving areas of the business which I maybe mentioned earlier in my notes.

好的。我想——謝謝你的提問，珍妮。我認為在很多公司中發生的情況是，我們列出了很多項目清單，而這個清單可能會變得相當過多。六週前，我們查看了議程上的所有項目，實際上刪除了其中一半以上，因為這些項目昨天可能在業務中有效，但今天卻無效了。我的意思是，我們付出了巨大的努力，只專注於業務的銷售驅動領域，我可能在前面的筆記中提到過這一點。

But the point of that is that anything that isn't driving sales, improving product, focused on the customer and focused on marketing to that customer and the sales tools that we have for fall that are new, maximizing those sales tools is off the agenda. Now some of those projects are valid going forward in the longer term, but they are not where we need to focus and concentrate today. We have a real rigor around making sure that every meeting and every senior leader is aligned to our 3 priorities. And I can tell you, it's very easy for people to drift away and we have to continually remind them in the meetings that we're not actually going to be talking about that today, we are only focused on the 3 areas that we've mentioned. So product, sales and marketing, and of course, the supply chain and sourcing. You have to make choices.

但重點是，任何不推動銷售、改進產品、以客戶為中心、以客戶為中心的營銷以及我們秋季擁有的新銷售工具、最大化這些銷售工具的事情都不會被列入議程。現在，其中一些項目從長遠來看是有效的，但它們不是我們今天需要關注和集中的地方。我們非常嚴格地確保每次會議和每位高級領導都與我們的 3 個優先事項保持一致。我可以告訴你，人們很容易走神，我們必須在會議中不斷提醒他們，我們今天實際上不會討論這個問題，我們只關注我們已經討論過的三個領域提及。因此，產品、銷售和營銷，當然還有供應鍊和採購。你必須做出選擇。

The next question comes from Roxanne Meyer with MKM Partners.

下一個問題來自 MKM Partners 的 Roxanne Meyer。

First, I want to say how refreshing it is to see the focus being on sales as your really top priority. I was wondering what your -- what you see as kind of the low-hanging fruit for both Chico's and White House | Black Market in terms of returning to that sales growth and how you're thinking about your strategy for customer acquisition.

首先，我想說的是，看到將銷售作為你真正的首要任務是多麼令人耳目一新。我想知道您認為對於奇科和白宮來說，什麼是唾手可得的成果？黑市涉及銷售增長的回歸以及您如何考慮客戶獲取策略。

And then secondly, on White House | Black Market, it feels like every few years, the pendulum swings between having too much color, not having enough color. How are you thinking about the balance of being at your core white and black versus layering in that color?

其次，關於白宮|黑市，感覺每隔幾年，鐘擺就會在顏色太多和顏色不足之間擺動。您如何看待核心白色和黑色與該顏色的分層之間的平衡？

Okay. Lots of questions in there. Thanks. It's fascinating. We are having a renewed emphasis in the business on product and putting the customer at the core. And when we have been hearing from potential candidates for CEO, it's very interesting to hear their thoughts and how they absolutely align with the Board's thoughts, my thoughts and Kim Roy's thoughts on the business opportunities.

好的。裡面有很多問題。謝謝。這很有趣。我們在業務上重新強調產品並以客戶為核心。當我們聽取潛在首席執行官候選人的意見時，聽到他們的想法以及他們如何與董事會的想法、我的想法和 Kim Roy 對商業機會的想法完全一致是非常有趣的。

So when you talk about low-hanging fruit, there are significant opportunities in our business. We are analyzing the business category by category as you would expect and really looking at what is the purpose of the category? What are the strengths and weaknesses in the category? And how can that category be beefed up immediately?

因此，當您談論唾手可得的成果時，我們的業務中存在著巨大的機遇。正如您所期望的那樣，我們正在逐個類別地分析業務類別，並真正了解該類別的目的是什麼？該類別的優勢和劣勢是什麼？如何立即加強該類別？

We have already made significant changes to each category, particularly in Chico's. And with Karen leading that team and coming from Nordstrom, I think one of the benefits of having team leaders who are apparel experts is the recognition of this specific customer group and what sells to that customer and having a wider lens on what the opportunities are to sell to that customer. Karen's been selling to that customer for 30 years, as I have, so we have a much different approach to categories, to item development, to all of the key factors that drives a brand and its product mix. So there's the low hanging fruit, 100%. Are we after it? Absolutely.

我們已經對每個類別進行了重大更改，特別是 Chico's。來自諾德斯特龍 (Nordstrom) 的凱倫 (Karen) 領導該團隊，我認為擁有服裝專家團隊領導者的好處之一是認可這個特定的客戶群體以及向該客戶銷售的產品，並對機會有更廣泛的了解。賣給該客戶。凱倫和我一樣，已經向該客戶銷售了 30 年，因此我們對品類、產品開發以及推動品牌及其產品組合的所有關鍵因素採取了截然不同的方法。所以這是一個容易實現的目標，100%。我們在追尋它嗎？絕對地。

In terms of White House and your comment about color and black-and-white. Actually if you're going to stores right now, you will not see very much black and white, which is a little issue -- not a little issue, a major issue. And the colors need to be perfect, and that's the rigor and discipline that we're putting into place in White House, is to establish the parameters around which we will not deviate in merchandise. And also, White House has incredible category development opportunities.

就白宮以及您對彩色和黑白的評論而言。事實上，如果你現在去商店，你不會看到太多黑白的，這是一個小問題——不是一個小問題，而是一個大問題。顏色需要完美，這就是我們在白宮實施的嚴格性和紀律，旨在建立我們在商品中不會偏離的參數。而且，白宮擁有令人難以置信的品類發展機會。

So we see a lot of low-hanging fruit, so do the potential CEO candidates. Their comments, as I said earlier, dovetail with our own. So we're very excited about the opportunities, and so are the candidates. And that's terrific because people understand our white space. They understand the white space we have in the White House | Black Market and they understand the white space that we have in Chico's, both. And of course Soma is on a trajectory, so that's quite exciting. [With that.]

因此，我們看到了很多容易實現的目標，潛在的首席執行官候選人也是如此。正如我之前所說，他們的評論與我們的評論相符。因此，我們對這些機會感到非常興奮，候選人也是如此。這太棒了，因為人們了解我們的空白。他們了解白宮的空白區域 |黑市和他們都了解奇科的空白。當然，Soma 正在走上正軌，所以這非常令人興奮。[接著就，隨即。]

(Operator Instructions) The next question comes from Janet Kloppenburg from JJK Research.

（操作員說明）下一個問題來自 JJK Research 的 Janet Kloppenburg。

I wanted to ask probably a couple of questions about White House | Black Market. I understand that color and print are an issue. I'm wondering if there are other issues that you could talk about, perhaps across category or pricing imbalances that could be corrected in the near term.

我想問幾個關於白宮的問題 |黑市。我知道顏色和印刷是一個問題。我想知道您是否還有其他問題可以討論，也許是跨類別或定價失衡的問題，這些問題可以在短期內得到糾正。

And then with respect to Chico's, I know there had been an inadequate level of basics in the assortment, the balance was out of whack between basics and fashion. And I'm wondering if that's been restored and/or how long it will take to get there.

然後就 Chico 而言，我知道其分類中的基本款水平不夠，基本款和時尚之間的平衡不平衡。我想知道是否已恢復和/或需要多長時間才能到達那裡。

And then you talked about the assortments for the back half being elevated, and I wondered what that meant in terms of styling and perhaps pricing. And if there's a new direction for Chico's that we'll see as the fall season opens up.

然後你談到後半部分的品種被提升，我想知道這對造型和定價意味著什麼。如果奇科有一個新的方向，我們將在秋季開始時看到。

Okay. Let's pack into that question. Maybe I'll start at the final part of your question which is the direction of Chico's -- she talked about Chico's, sorry, yes, the new direction in terms of elevation and your question around what does that mean.

好的。讓我們來回答這個問題。也許我會從你問題的最後一部分開始，即奇科的方向——她談到了奇科的方向，抱歉，是的，海拔方面的新方向以及你關於這意味著什麼的問題。

So it is our belief that the product over the last couple of years at Chico's has been a bit more mass market than it was at the height of its significance in sales and importance to the customer. So to that end, the product itself is being elevated. And what that means is more sophisticated prints, more sophisticated styling and shapes. The knits have a huge opportunity for improvement in hand, quality, fit, and again in shape. We have a really amazing opportunity ahead of us to create more of a price-value relationship. And so is it our intent to increase prices? No. But is it our intent to increase the product quality and elevate the taste level? Absolutely.

因此，我們相信，奇科的產品在過去幾年中比其在銷售和對客戶的重要性達到頂峰時更加大眾化。為此，產品本身正在得到提升。這意味著更精緻的印花、更精緻的造型和形狀。針織品在手感、質量、合身性和形狀方面都有巨大的改進機會。我們面臨著一個非常好的機會來創造更多的價格與價值關係。那麼我們的意圖是提高價格嗎？不。但我們的目的是為了提高產品質量、提升品味嗎？絕對地。

You had a question about basics. And yes, balancing the basic assortments. And also, we believe that making our basics not-so basic, making them more interesting than the competitive basics is really the way to go for Chico's.

您有一個關於基礎知識的問題。是的，平衡基本品種。而且，我們相信，讓我們的基礎知識變得不那麼基礎，讓它們比競爭性的基礎知識更有趣，這確實是 Chico's 的出路。

In terms of White House -- sorry, you were discussing the prints, right? And the...

就白宮而言——抱歉，您正在討論這些印刷品，對吧？還有...

Anything beyond print and color.

除了印刷和顏色之外的任何東西。

Beyond the print and color. Oh, is there any other issues in terms of risk? Was that the question? Right?

超越印刷和顏色。噢，還有其他風險方面的問題嗎？是這個問題嗎？正確的？

Yes.

是的。

No, I think our major issue at White House is relevance of the product, a little -- a couple of fit issues, but that's related to quality of fabrication. Our new specialist that we brought in, he's a real expert on print and color and fabric, is a major addition to the overall team. And we need a guiding, steady hand in that role and we have one now. She's just recently joined so we're very excited about that.

不，我認為我們在白宮的主要問題是產品的相關性，一些適合的問題，但這與製造質量有關。我們引進的新專家是印刷、色彩和麵料方面的真正專家，他是整個團隊的重要補充。我們需要一隻穩定的指導手來擔任這一角色，而我們現在就有了這樣一隻手。她最近剛剛加入，所以我們對此感到非常興奮。

The next question comes from Paul Trussell with Deutsche Bank.

下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 I understand the line between the stores and online channel continues to blur. But was just wondering if you could discuss online trends versus what you saw in stores.

我是蓋比·卡本 (Gabby Carbone) 替保羅發言。所以我理解商店和在線渠道之間的界限繼續模糊。但只是想知道您是否可以討論在線趨勢與您在商店中看到的趨勢。

So clearly online sales trended very well during the quarter, ending up with a low double-digit increase. And so that was certainly something that was -- is something we're proud of. We are getting a lot more of our initiatives that cross over between the 2. So right now, we have Buy Online Ships from Store. So with that initiative, you can find product that's online and to the extent it is available in store and maybe not in our distribution center, we can ship it to you. All those types of things are going to make it harder and harder to say just definitively, is something an online sale or a store sale? But as an overall comment for you, what I can say is that traffic online has been increasing at a strong rate, much stronger than what you would expect in stores. And I think that's very common across retail right now.

顯然，本季度在線銷售趨勢非常好，最終實現了兩位數的低增長。所以這當然是我們引以為傲的事情。我們正在採取更多跨這兩者的舉措。所以現在，我們有從商店購買在線發貨。因此，通過這一舉措，您可以在網上找到產品，只要它在商店中有售（也許不在我們的配送中心），我們就可以將其運送給您。所有這些類型的事情都會讓我們越來越難明確地說，某件事是在線銷售還是商店銷售？但作為對您的總體評論，我可以說的是，在線流量一直在以強勁的速度增長，比您對商店的預期要強得多。我認為這現在在零售業很常見。

Just a quick follow-up. From a top line perspective, just wondering how we're thinking about the Amazon partnership and the QVC you've done in the past with Soma. And just what have you seen from a customer perspective with the launch of TellTale?

只是快速跟進。從頂線的角度來看，只是想知道我們如何看待亞馬遜的合作夥伴關係以及您過去與 Soma 所做的 QVC。從客戶的角度來看，您對 TellTale 的推出有何看法？

Sure. So I would say for QVC and Amazon and some of our third-party relationships, we are seeing successes right in line with what we have planned. As we have talked about before, those are not going to be material businesses this year, but sales are sales. And we are seeing good sales, we are seeing good new customer flow coming out of those, which is encouraging.

當然。因此，我想說，對於 QVC 和亞馬遜以及我們的一些第三方關係，我們所看到的成功與我們的計劃完全一致。正如我們之前談到的，這些今年不會成為實質性業務，但銷售額就是銷售額。我們看到了良好的銷售，我們看到了良好的新客戶流，這是令人鼓舞的。

In terms of TellTale, I would say we have seen good initial customer traffic flow for those businesses. It is early, it is very early, particularly for a brand that was launched just online only, so I wouldn't want to get too far ahead of ourselves in terms of results or anything else that would indicate overall financial results right now. So more to come on that one.

就 TellTale 而言，我想說我們已經看到這些企業的初始客戶流量良好。現在還早，非常早，特別是對於一個僅在網上推出的品牌來說，所以我不想在業績或任何其他能表明目前整體財務業績的事情上走得太遠。所以還有更多關於這一點的內容。

This concludes our question-and-answer session. I will now like to turn the conference back over to Bonnie Brooks for any closing remarks.

我們的問答環節到此結束。現在我想將會議轉回給邦妮·布魯克斯（Bonnie Brooks）發表閉幕詞。

Thank you very much, Anita. Okay. Well, thank you for all of your questions. In conclusion, I hope you have gathered from our comments and our discussion that it is not business as usual. We know this company can do much better, and we are committed to taking all of the required and appropriate steps to enhance our growth and value for our shareholders.

非常感謝你，安妮塔。好的。好的，謝謝您提出的所有問題。總之，我希望您從我們的評論和討論中了解到，現在的情況並非一如往常。我們知道這家公司可以做得更好，我們致力於採取所有必要和適當的措施來促進我們的增長和為股東創造價值。

So thank you for joining us and for your time today. We really appreciate it.

感謝您今天接受我們的採訪。我們真的很感激。

This conference has 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。